Roaring Dragon

CASE STUDY ROARING DRAGON HOTEL

ABSTRACT:

This paper introduces the concept based on guanxi neglect through takeover of a formerly Chinese managed hotel by a western based international hotel management company. It mainly covers the cultural conflict that has occurred for employees trying to adapt from the former Chinese relationship based planned methods of hotel management to that of the more market oriented, Management Company. The conclusions mainly highlight cultural characteristics and issues that companies are taking over SOEs, are advised to be aware of.

“Roaring Dragon Hotel” is a three-star hotel that is located in the southwest part of china. In this case we mainly focus on the challenge involved with redundancy, communication, cultural sensitivity, strategic planning and developing strategy. In the second half of 1999 and international management company set about transforming the culture within the hotel from a Chinese hotel that was relationship based environment to a modern market oriented organization.

Methodology:

From May to December 1999, June to July, 2001, and November to December 2002, research on guanxi was carried out at four-star hotel (i.e. is Roaring Dragon Hotel).The hotel has employed more than 670 people. Interviews were recorded with 35 middle and senior managers from the hotel and a group of 11 officials, businessmen from this environment. 15 participants were interviewed on more than one occasion across the three research periods. Un-attributed, direct quotes used throughout this manuscript are taken from verbal transcripts of these interviewees.

Moreover, a 65-item written survey was conducted with hotel staff the week before the takeover and again three months after the takeover. 439 completed the first survey and 144 the second. Some findings from this survey are acknowledged in the following.

The Roaring Dragon Hotel has been the first four star hotel in the city and since the early 1960’s has enjoyed as the...