Mba Portman

CASE ANALYSIS

THE PORTMAN HOTEL COMPANY

PROBLEM STATEMENT

In what ways Portman higher management could reformulate their HR strategy and thereby leverage its human resource towards fulfillment of the organizational objective of providing a personalized experience in the American luxury hotel industry.

PESTC ANALYSIS OF THE INDUSTRY:

y y Political: Not Applicable Economic:  Portman aimed at bringing Asian standards of hospitality in the U.S. which was labor intensive and involved high labor costs. The Personal Valet approach involved the labor cost which was three times as compared to Asia. Hence Portman Hotel Company would require more capital to hire labor.  Because of cheap labor, Asian hotels could afford three employees for every guest whereas America could manage only a 1:1 ratio. Hence Portman had to stay near this ratio to be cost effective. y Social:  The target consumers comprised of the luxury segment which needed customized service.  Customers were not accustomed to the culture of paying tips, when same was asked for.  Portman Hotel wanted to ensure a comfortable, convenient and personalized experience to its American customers.  Labor unions were not allowed to grow by the Portman management.  Employees were made to sign contract, which gave the employee due rights. y y Technological: NA Cultural:  The American culture revolves around the philosophy of self service and hence customer visit to hotels do not involve expectations on grounds of personal communication, service and extraordinary treatment. Whereas Asian culture is such which involves personal and customized treatment by the employees to give the guests a pleasant and memorable experience of their stay in the hotel. The Personal Valet would take care of all the needs and requests of the guests and ensure that they are taken care of well. Hence introducing the Asian culture of hospitality into America and implementing was a challenge for Portman.

SWOT Analysis:

INTERNAL...