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The Ritz-Carlton Hotel Company Case Study Solution


            The Ritz-Carlton Hotel Company is one of the best recognized management company in the world. It highly The Ritz-Carlton Hotel Company Case Study Solutiondeals with resorts and hotels. It is best known for its service delivery which has made it to attain a lot of fame. In relation to the grand hotels of the world, The Ritz-Carlton Hotel Company stands out to be the best and is well known for spectacular surroundings, legendary service and luxury. The company has been committed to delivering the best services (Chung, 2000). According to Thomas, (2010) the Ritz-Carlton Hotel origin is traced to be in 1983 after buying the rights to The Ritz-Carlton name and The Ritz-Carlton, Boston by William B. Johnson. In 1927, Edward N. Wyner, a local Boston real estate developer, was asked to build a world-class hotel and he agreed for he knew The Ritz-Carlton name would secure immediate success. In 1961 however Edward Wyner died and Charles Ritz took over. In 1983, after the death of Charles Blakely sold the hotel and its rights to William B. Johnson, and this marked the rise of The Ritz-Carlton Hotel Company. Several of these hotels are historic landmarks, following a commitment of The Ritz-Carlton Hotel Company to preserving architecturally important buildings.

Statement of the Challenges faced by The Ritz-Carlton Hotel Company

Challenges are one sure way to determine the performance of a business, the Ritz company is faced by some challenges that threaten its performance unless acted upon and correctly. Some of the challenges that the company faces includes the following; the method of recruiting candidates is expensive. Secondly, to entice their guest they use expansive method in order to ensure a perfect hotel and resorts experience and the last challenge faced by the company is related to the management and is strictness

            In accordance to (Chung, 2000) a lot of resources and plenty time is allocated in order to ensure perfect training and orientation of the new and current workers. Ritz-Carlton makes use of Talent+ Recruitment Firm strategy for employment purpose in order to ensure that it only hires candidates who are highly qualified in their position. Training is highly conducted for the employees to ensure that they are competent in their field. A team of highly qualifies managers is selected weekly to evaluate the performance of the employees. Goals are set yearly and every employee is motivated and geared towards achieving the goals. In case one of the employee is not performing in accordance to the company’s expectation, an immediate training is conducted and he is encouraged on better service delivery. Motivation of the employees through rewarding is a key point in the performance evaluation of The Ritz-Carlton Hotel Company Employees


Cause of the Problem and what should be done

            The legacy which is highly drives the Ritz Carlton hotel has of late been shaking due to some of the problems that it is facing unlike in 1992 where it won the top excellent industry prize for its services and qualities. The demand of values by customers is high. This is calling for a rapid improvement in order to meet the high customers demand. Externally, competition is rapidly growing which is threatening to see the Ritz Carlton Company downgraded. However, there are some measures that the company has taken in order to be outstanding. In that it is employing qualified workers however this is through an expensive method that should be rectified. In the employment process let the hotel company conduct cheap employment process and education services. This will save a lot of cash that could be used for the expansion of the company

Decision criteria and alternative solutions

In order for the Ritz Company to solve the managerial challenges that it is facing, it can do the following.

  • Reduce the recruitment capital
  • Increase the employees’ salaries
  • Increase the level of employees training
  • Provide better working conditions

Implementation and Recommendation

In order for the Ritz Company to continue being the best, new plans should be strategically set and every member of the board and the works shown the importance of adhering to them. For instance, the recruitment process involves wastage of money and resources therefore new amends to see less use of money and resources should be put across. Despite rewarding the employees as a motivation and encouragement to work hard, the company should also see that that employees need the company and the customers need the company and the employees too therefore make the employees feel as if it is their business they are managing. The salaries of the employees should be increased from time to time. This will create good and conducive working environment since they will be able to coincide with the organizations revenues. The targeted market by the employees under hospitality is tourism. To enhance better education and service delivery of the employees, the teaching and training programs should be adjusted in that they be flexible. This will enable the workers to use extra knowledge which they will have acquired (Kandampully, 2007).

Sufficient amount is set aside by the company to see the hiring process of candidates. Better training is carried out in order to enable the candidates offer the best services and to empower them in realization of the company’s goals, missions and aim. This has highly ensured the success of the company. Chances of promotions are always available on this has encouraged the workers better their level of education. The working conditions is favorable and this has enabled the employees to understand their roles in the company. This has also created a certain perception in the mind of the workers that they are not only working for the company for money or for certain duties but to better their lives and enhance their skills (Chung, 2000).


Business are highly involved in making decisions which are based on facts and evidences. This evidences enables the company to move ahead in making further decisions. Below is a case study of The Ritz-Carlton Hotel Company. The foundation of the hotel is traced back in 1983 by Cesar-Ritz in Atlanta after United States trademark and Ritz Boston where sold. The company has expanded dramatically to over 26 countries. Their mission has been one appealing in that they provide the best services to their customers and for the works is to enhance oneness and also to appreciate the company’s development. According to Nikheel Advani, initially the business grew rapidly and under the management of James. Nikheel further refers James as a talented in how he manages the business ( The Ritz-Carlton Washington, 2001).

            However, the culture of the Ritz Company has been a challenge especially to the workers. The management is strict and this has made most candidates fear working with the organization. The expensive process of recruitment and a costly method which are used to entice the guests in the effort of making sure that they have the most memorable experience in the hotels is a tactic that despite being expensive has seen the company perform best. The recruitment process which involves high wastage of money and resources should therefore be amended in order to see less resources and money usage. In accordance to (Sucher, 2001), Ritz-Carlton’s process of recruitment is professionally done by a board of highly skilled personnel and the applicants with the highest qualifications in the sector of hospitality are highly absorbed since they got they possess quality and have acquired the best skills that can only be as good as the staff and for the company to attain the Gold Standards. Therefore the company is determined to see that it employs the best and right kind of employees. The company later equips its employees them with the necessary input such as training through seminars and workshops. Recruitment of the new candidates is specially done through some methods such as a prolonged observation of the candidates on their ability to learn and service delivery. Besides, the working environment is best with luxury and comfort facilities. This has enabled the employees to understand their responsibility and instills a perception that they are not in the company to play certain roles only and this has made the Ritz Company to outstand as a world’s best hotel company ( Kandampully, 2007).

  • Chung, K. Y. (2000). Hotel management curriculum reform based on required competencies of hotel employees and career success in the hotel industry. Tourism management, 21(5), 473-487.
  • Dev, C. S., Thomas, J. H., Buschman, J., & Anderson, E. (2010). Brand rights and hotel management agreements: Lessons from Ritz-Carlton Bali’s lawsuit against the Ritz- Carlton Hotel Company. Cornell Hospitality Quarterly, 51(2), 215-230.
  • Devi Juwaheer, T., & Lee Ross, D. (2003). A study of hotel guest perceptions in Mauritius. International Journal of Contemporary Hospitality Management, 15(2), 105-115.
  • James J. Eyster, “Hotel Management Contracts in the U.S.: The Revolution Continues,” Cornell Hotel and Restaurant
  • Kandampully, J., & Hu, H. H. (2007). Do hoteliers need to manage image to retain loyal customers?. International Journal of Contemporary Hospitality Management, 19(6), 435-443.
  • Rutherford, D. G., & O’Fallon, M. J. (2007). Hotel management and operations. John Wiley & Sons.
  • Sucher, S. J., & McManus, S. E. (2001). The Ritz-Carlton Hotel Company. Harvard Business School.
  •  The Mystique: The Ritz-Carlton Hotel Company, L.L.C. Employee Newsletter, Winter 2000.
  • The Ritz-Carlton Washington, D.C., 2001 First-Year Monthly Budget Summary


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