Harvard Case - The Royal Harbour Resort & Spa
"The Royal Harbour Resort & Spa" Harvard business case study is written by Odette Coccola. It deals with the challenges in the field of Organizational Behavior. The case study is 5 page(s) long and it was first published on : Feb 12, 2016
At Fern Fort University, we recommend a strategic approach to revitalizing The Royal Harbour Resort & Spa, focusing on enhancing guest experience, improving operational efficiency, and fostering a culture of innovation and excellence. This approach involves a multi-pronged strategy encompassing leadership development, team building, organizational change management, and targeted investments in technology and infrastructure.
2. Background
The Royal Harbour Resort & Spa is a 4-star resort facing declining occupancy rates and customer satisfaction. The resort's management team, led by General Manager, Michael, is grappling with several challenges:
- Declining Competitiveness: The resort is facing increasing competition from newer, more modern resorts in the area.
- Outdated Infrastructure: The resort's facilities are aging and require significant investment to remain competitive.
- Lack of Innovation: The resort's offerings are perceived as outdated and lack the unique experiences that attract modern travelers.
- Low Employee Morale: Employees are disengaged and lack a sense of ownership in the resort's success.
The case study focuses on Michael's efforts to revitalize the resort, including his attempts to implement change, address employee concerns, and improve guest experience.
3. Analysis of the Case Study
The Royal Harbour Resort & Spa's challenges can be analyzed using the SWOT framework:
Strengths:
- Prime Location: The resort benefits from a desirable location with access to beautiful beaches and local attractions.
- Existing Infrastructure: The resort has a substantial infrastructure that can be modernized and leveraged for improved guest experience.
- Loyal Customer Base: The resort enjoys a loyal customer base, particularly among older clientele.
Weaknesses:
- Outdated Facilities: The resort's infrastructure is aging and requires significant renovation to remain competitive.
- Lack of Innovation: The resort's offerings are perceived as outdated and lack the unique experiences that attract modern travelers.
- Low Employee Morale: Employees are disengaged and lack a sense of ownership in the resort's success.
Opportunities:
- Growing Tourism Market: The tourism industry is experiencing growth, presenting opportunities for the resort to attract new customers.
- Technological Advancements: New technologies can be leveraged to enhance guest experience, improve operational efficiency, and create new revenue streams.
- Emerging Trends: The resort can capitalize on emerging travel trends, such as wellness tourism and sustainable practices.
Threats:
- Increased Competition: The resort faces increasing competition from newer, more modern resorts in the area.
- Economic Downturn: A downturn in the economy could negatively impact tourism and reduce demand for the resort's services.
- Environmental Concerns: Environmental concerns could impact the resort's operations and attract negative attention.
Organizational Behavior and Culture:
- Leadership Styles: Michael's leadership style is characterized by a top-down approach, which has limited employee engagement and innovation.
- Organizational Culture: The resort's culture is characterized by a lack of communication, low employee morale, and a resistance to change.
- Team Dynamics: Teams within the resort are siloed, lacking effective communication and collaboration.
Decision-Making Processes:
- Lack of Data-Driven Decisions: Michael relies heavily on intuition and anecdotal evidence, rather than data-driven decision-making.
- Limited Employee Input: Michael's decision-making process lacks employee input, leading to a lack of buy-in and ownership.
4. Recommendations
To revitalize The Royal Harbour Resort & Spa, the following recommendations are proposed:
1. Leadership Development and Team Building:
- Leadership Training: Provide leadership development programs for Michael and his management team, focusing on transformational leadership, communication skills, and change management.
- Team Building Initiatives: Implement team-building exercises and workshops to foster collaboration, communication, and a sense of shared purpose within the resort's teams.
2. Organizational Change Management:
- Vision and Strategy: Develop a clear vision and strategic plan for the resort's future, focusing on enhancing guest experience, improving operational efficiency, and fostering a culture of innovation.
- Communication and Engagement: Establish open and transparent communication channels throughout the resort, actively involving employees in the change process.
- Employee Empowerment: Empower employees to contribute ideas and solutions, fostering a sense of ownership and responsibility.
3. Targeted Investments:
- Infrastructure Upgrades: Invest in modernizing the resort's infrastructure, focusing on areas like guest rooms, dining facilities, and technology.
- Technology Adoption: Implement new technologies to enhance guest experience, improve operational efficiency, and create new revenue streams. This could include online booking systems, mobile check-in, digital concierge services, and personalized guest experiences.
- Marketing and Branding: Develop a new marketing and branding strategy to attract a wider range of customers, emphasizing the resort's unique selling points and the new experiences offered.
4. Fostering Innovation and Excellence:
- Employee Recognition Programs: Implement employee recognition programs to acknowledge and reward contributions, fostering a culture of excellence.
- Innovation Initiatives: Encourage innovation by establishing a culture of experimentation and learning, allowing employees to develop new ideas and solutions.
- Cross-Functional Collaboration: Promote cross-functional collaboration between departments to share ideas, solve problems, and develop new products and services.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies and Consistency with Mission: The recommendations align with the resort's core competencies, such as its prime location and existing infrastructure, and its mission to provide a memorable guest experience.
- External Customers and Internal Clients: The recommendations address the needs of both external customers (guests) and internal clients (employees), focusing on enhancing guest experience and improving employee engagement.
- Competitors: The recommendations consider the competitive landscape and aim to differentiate the resort from its competitors by offering unique experiences, modernizing its facilities, and leveraging technology.
- Attractiveness: The recommendations are expected to be attractive from a financial perspective, as they aim to increase occupancy rates, improve operational efficiency, and create new revenue streams.
6. Conclusion
By implementing these recommendations, The Royal Harbour Resort & Spa can revitalize its operations, enhance guest experience, and foster a culture of innovation and excellence. The resort's success will depend on the commitment of its leadership team to embrace change, empower employees, and invest in the future.
7. Discussion
Alternatives:
- Maintaining the Status Quo: This option would likely lead to continued decline in occupancy rates and customer satisfaction.
- Selling the Resort: This option would provide immediate financial relief but would result in job losses and a loss of the resort's legacy.
Risks and Key Assumptions:
- Implementation Challenges: Implementing the recommended changes will require significant effort and resources.
- Economic Downturn: A downturn in the economy could negatively impact the resort's success.
- Employee Resistance: Employees may resist change, requiring effective communication and engagement strategies.
Options Grid:
| Option | Benefits | Risks | Cost |
|---|---|---|---|
| Status Quo | Minimal cost | Continued decline | Low |
| Selling the Resort | Immediate financial relief | Job losses, loss of legacy | High |
| Recommended Approach | Revitalized operations, enhanced guest experience, improved employee engagement | Implementation challenges, economic downturn, employee resistance | Moderate |
8. Next Steps
The following steps should be taken to implement the recommendations:
- Phase 1 (Short-Term):
- Develop a clear vision and strategic plan for the resort's future.
- Implement leadership development and team-building initiatives.
- Initiate communication and engagement strategies to involve employees in the change process.
- Conduct a thorough assessment of the resort's infrastructure and identify areas for modernization.
- Explore new technologies that can enhance guest experience and improve operational efficiency.
- Phase 2 (Mid-Term):
- Begin implementing infrastructure upgrades and technology adoption.
- Develop a new marketing and branding strategy to attract a wider range of customers.
- Implement employee recognition programs and innovation initiatives.
- Monitor progress and make adjustments as needed.
- Phase 3 (Long-Term):
- Continue to invest in technology and innovation.
- Expand the resort's offerings to include new experiences and services.
- Foster a culture of continuous improvement and learning.
By following these steps, The Royal Harbour Resort & Spa can transform itself into a thriving destination, attracting a new generation of travelers and ensuring its continued success.
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Case Description
The Royal Harbour Resort & Spa was a large hotel and spa with over 300 employees. In December 2010, the human resources manager was advised by the general manager that headquarters had ordered an immediate restructuring due to a decline in the hospitality industry, especially in the luxury hotel sector. The human resources manager was advised that she had to terminate the employment of their banquet manager - an employee of over 17 years. The human resources manager was instructed to prepare the severance letter by the following day and meet with the banquet manager on Monday to finalize the termination.
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