Imperial Hotel London: Case Study Analysis and Improvement Plan

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Running head: CASE STUDY ANALYSIS AND PLANNING
Case Study Analysis and Planning
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1CASE STUDY ANALYSIS AND PLANNING
Table of Contents
Introduction................................................................................................................................2
Overview of the current scenario...............................................................................................2
Major challenges........................................................................................................................3
1. Poor customers’ satisfaction:..........................................................................................3
2. Voluntary turnover of staffs:...........................................................................................3
3. Negative work culture:....................................................................................................4
4. Poor team management and IT infrastructure.................................................................4
5. Issues regarding in house staffs.......................................................................................5
Recommendation........................................................................................................................5
Conclusion..................................................................................................................................6
References..................................................................................................................................7

2CASE STUDY ANALYSIS AND PLANNING
Introduction
The purpose of this following report is to discuss the case study of Imperial Hotel,
London in order to identify, analyze and provide solutions to their ongoing internal issues.
The location of the Hotel, in the West End is a hub well marketed as an international tourism.
In order to fulfil the expectations of international tourists, although Imperial has tried so
many policies yet with the association of 450 staffs and six departmental heads even; the
hotel has failed to maintain the standard of the service. Addressing the turbulent environment,
the higher management has recruited a new general manager, Peter Farnsworth to carry out
necessary procedures in order to gain back the competitive advantage again. The report will
elaborate the issues and discuss it with the theories and principals of management and
operations. Following a brief discussion over company’s current operational sphere, the
report will analyze each issue and present a three point plan which can resolve existing
problems to improve quality of services, sense of responsibility among staffs, productivity
along with operational and managerial efficiency.
Overview of the current scenario
According to the previous general manager, as supported by Boon and Kalshoven
(2014), there was a tendency of voluntary turnover among staffs of all the departments which
has indicated poor employee morale due to which guests are consistently complaining against
inefficient services. As a result the grade of the hotel has lowered in market in terms of guest
satisfaction. To cope with the negative environment they have revised their price chart which
has contributed to improved sales gradually. However, as per the theories described in
Manhas and Tukamushaba (2015), a negative impact of unsatisfied customers’ experience
has already been working over profitability and brand image of Imperial Hotel.
According to Ali, Murphy and Nadkarni (2014), it has been understood that a
business which is older than 100 years needs contemporary touch and managerial procedures
to sustain within competition driven current business environment. Nearly eight years ago,
the hotel was gone through a restoration process yet according to the current situation if
necessary steps towards renovation and redecoration have not taken seriously, a major
portion of the hotel will become unable to use for the good. However, for renovation
purposes the service could have been stooped for a considerable amount of time period. The

3CASE STUDY ANALYSIS AND PLANNING
manager is not sure whether they should spend money for renovation while keeping at least
60 rooms out of service at once or wait for the other issues to come in control and till the
income increase to an impressive level based on low pricing strategy.
Major challenges
1. Poor customers’ satisfaction:
After being recruited, the new general manager spotted that the grade has declined for
decreased customers’ satisfaction entirely. As per the study of Urbach, Ahlemann and Arbi
(2014), the company mechanism of Guest Satisfaction Survey helps to produce a summary of
feedbacks collected from customers from major business fields. While filling up the feedback
form the clients have graded all the facilities below their expectation level. Based on the
assessment, they have complained mostly about room and service quality. There are
complaints regarding staffs’ behavior, incorrect charge rates while billing and delayed
response from the management. Although, as described as per theories, Sánchez-Ollero,
García-Pozo and Marchante-Mera, (2014), people are enjoying low pricing of strategy; poor
staff efficiency and faulty room amenities cannot be handled with casualness. As described in
Vasquez (2014), customer service theories are models are attracting customers and retain
throughout the business cycles. However, poor managerial and operational features are
enough to damage such marketing as managing customers’ experience and providing them
services according to the promise is equivalent to well managed system. Developing a
relationship of trust, flexibility of working expertise and a warm atmosphere is what
necessary for overcoming poor customers’ satisfaction yet these are not present within
Imperial.
2. Voluntary turnover of staffs:
According to Cohen, Blake and Goodman (2016), high staff turnover is indicates their
insecurity while serving the guests under the brand name of Imperial. As discussed in
Benavides-Chicón and Ortega (2014), apart from monetary resources, skills and
efficiency of the human resource is the central driver for serving quality service to the
customers. It has been perceived that faulty work culture, poor employee morale,
unhealthy work atmosphere and lack of training and development sessions are responsible
for providing least employee security regrading personal growth. Managerial
miscommunication, poor handling of staff and above all lower wages are responsible for

4CASE STUDY ANALYSIS AND PLANNING
staff turnover. HR practices are not contemporary enough to modify policies according to
employee needs. Hotel schedules are not regular, therefore issues has occurred as
Imperial is not capable of providing drop for female employees even in odd working
hours at night. Consequently, due to new recruitment policies their basic training cost is
getting too high to control entire HR department. Therefore, due to poor job satisfaction
level workers are leaving jobs developing a culture of turnover. Absence of recognition,
benefits and personal growth are making the staffs to walk out from organization or
serving inefficient services.
3. Negative work culture:
Negative work culture is a result of poor handling of HR policies and its application over
the workforce. The performance of the employees has been deteriorating just because of
such wrong application of HR policies. Due to the presence of managers’ bonus scheme
instead of reduction of controlling costs it has been increasing in a state of losing sales.
As per guests’ perception, as discussed in Butler, Kwantes and Boglarsky (2014), they are
not being able to perform due to poor employee management system. Employees have
developed a tendency of taking frequent sick leaves and such poor attendance has showed
how badly pressurized they are due to problem of inadequate staff. Moreover, the new
manager has realized the relationship of previous general manager with employees was to
some extent toxic. Lack of communication and sense of responsibility were the basic
reason behind it. Management is dependent upon dictatorship style which is not
acceptable on behalf of the workforce, still without addressing the factors or simplifying
hierarchical structure they are consistently being harsh to employees which are more
harmful for business.
4. Poor team management and IT infrastructure
In order to develop a hospitality system as big as Imperial IT infrastructure must be that
strong which is capable of synchronizing all the service departments together. Due to
faulty systems, it is a normal phenomenon to get into a fight among workers. As stated in
Einarsen et al. (2018), miscommunication and confusion are some of the daily conflicts
faced by the management. According to Nazmudeen, Wan, and Buhari (2016), the
management system runs on property management calculation which analyses real time
data, however due to faulty practices of IT workers fights over petty issues and

5CASE STUDY ANALYSIS AND PLANNING
miscalculations. Poor team agenda and random allocation of work is important which is
being efficiently done here.
5. Issues regarding in house staffs
It has been perceived that Spanish workers are expensive and efficient. However, they
want to keep the work process going together. Due to different cultural background it has
become difficult to address the issues among them. The concern is guests are not able to
deliver their concern to people who are culturally different. Besides, they lack
motivational level due to poor managerial skills as well. Staff accommodation is
increasing more than 60% a year.
Recommendation
 Improving communication skills: As supported by Ghosh et al. (2015), improving
communication skills among workers and between management and employees is
required to maintain operational efficiency. It is required to develop an improved IT
structure to make the communication process easier across entire business. Though
which employees can have confusion, error and glitch free information system.
Flawless information can help to increase productivity. Another factor is the practice
of directorship is making the process critical for communication. A simple, amicable
atmosphere can help to get through the confusions and instruction in more simple
way.
 Right implication of HR policies: It has been perceived that faulty HR policies
practices is making the scenario critical as job satisfaction of employees has been
decreasing day by day due to bad relationship with general manager, poor wages.
According to the operational theories and principals, as supported by Bedarkar and
Pandita (2014), poor work satisfaction can lead workers to develop negative work
morale and become less motivated towards work. To serve the guests with efficient
services, management must satisfy employee interest first. Investing more on
employee training will make them believe organization’s initiative towards increasing
their personal growth. Flexible working environment can make the employees balance
their work and life which would help to reduce rates of sick leaves. Prioritizing
security over profitability is a different approach towards increased sale and business.
 Addressing different cultural background: As it has been understood that the Hotel is
located at a location where tourists from different background come in search for

6CASE STUDY ANALYSIS AND PLANNING
accommodation. Workers must be competent enough to cope with various cultural
aspects and lingual differences. According to requirements, staffs can be altered and
assigned to work according to their cultural competence. According to management
principals within a multi-cultural scenario if people cannot handle differences with
capability people cannot get through the competition which is necessary for sustaining
in global hospitality business scenario.
Conclusion
It has been understood that to conduct a restoration process, the hotel has to work both
on improving customers’ and employee satisfaction. As a new general manager he can revise
the employee policies along with simplifying the hierarchical structure, improving IT
infrastructure is necessary to gain back the trust. After a considerable amount of time, when
the hotel can actually can work under the same brand image it will be simple for the hotel to
manage expense of restoration. The problem will be simpler while the services are partly
close if financially and in terms of work force it is strong. Being a part of hospitality industry
a good market presentation is important but not more than satisfying customers.

7CASE STUDY ANALYSIS AND PLANNING
References
Ali, A., Murphy, H.C. and Nadkarni, S., 2014. Hospitality students’ perceptions of digital
tools for learning and sustainable development. Journal of Hospitality, Leisure, Sport &
Tourism Education, 15, pp.1-10.
Bedarkar, M. and Pandita, D., 2014. A study on the drivers of employee engagement
impacting employee performance. Procedia-Social and Behavioral Sciences, 133, pp.106-
115.
Benavides-Chicón, C.G. and Ortega, B., 2014. The impact of quality management on
productivity in the hospitality sector. International Journal of Hospitality Management, 42,
pp.165-173.
Boon, C. and Kalshoven, K., 2014. how high‐commitment HRM relates to engagement and
commitment: The moderating role of task proficiency. Human Resource Management, 53(3),
pp.403-420.
Butler, A.M., Kwantes, C.T. and Boglarsky, C.A., 2014. The effects of self-awareness on
perceptions of leadership effectiveness in the hospitality industry: A cross cultural
investigation. International Journal of Intercultural Relations, 40, pp.87-98.
Cohen, G., Blake, R.S. and Goodman, D., 2016. Does turnover intention matter? Evaluating
the usefulness of turnover intention rate as a predictor of actual turnover rate. Review of
Public Personnel Administration, 36(3), pp.240-263.
Einarsen, S., Skogstad, A., Rørvik, E., Lande, Å.B. and Nielsen, M.B., 2018. Climate for
conflict management, exposure to workplace bullying and work engagement: a moderated
mediation analysis. The International Journal of Human Resource Management, 29(3),
pp.549-570.
Ghosh, A., Paranthaman, V.V., Mapp, G., Gemikonakli, O. and Loo, J., 2015. Enabling
seamless V2I communications: toward developing cooperative automotive applications in
VANET systems. IEEE Communications Magazine, 53(12), pp.80-86.

8CASE STUDY ANALYSIS AND PLANNING
Manhas, P.S. and Tukamushaba, E.K., 2015. Understanding service experience and its impact
on brand image in hospitality sector. International Journal of Hospitality Management, 45,
pp.77-87.
Nazmudeen, M.S.H., Wan, A.T. and Buhari, S.M., 2016, September. Improved throughput
for power line communication (plc) for smart meters using fog computing based data
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Sánchez-Ollero, J.L., García-Pozo, A. and Marchante-Mera, A., 2014. How does respect for
the environment affect final prices in the hospitality sector? A hedonic pricing
approach. Cornell Hospitality Quarterly, 55(1), pp.31-39.
Urbach, N., Ahlemann, F. and El Arbi, F., 2014. Towards a Design Theory for Customer
Satisfaction-Oriented IT Vendor Management.
Vasquez, D., 2014. Employee retention for economic stabilization: A qualitative
phenomenological study in the hospitality sector. International Journal of Management,
Economics and Social Sciences, 3(1), pp.1-17.