MGMT-121: Plaza Inn Group Case Study - Strategic Management Analysis

This case study analyzes the Plaza Inn Group, focusing on operational and behavioral issues that arose after a change in General Manager. The analysis identifies problems such as lack of effective management, communication breakdowns, and inefficient organizational structure. Recommendations include enhancing the organizational structure, improving communication strategies, and implementing directive management techniques. A decision matrix is used to evaluate potential solutions, concluding that improvements in the organizational structure are most critical. The solution emphasizes the importance of strategic recruitment, open communication, and employee motivation to enhance overall organizational performance. Desklib provides access to this and many other solved assignments and past papers for students.

The Plaza Inn-
Group Case Study
Instructor-Launa Linaker
MGMT-121 SB01 (1)
Group Members:
Navroop Kaur Sidhu (3028457)
Gurleen Brar(3021890)
Avneet Kaur (3028787)
Nature Kaur Bhinder (3028058)
Arshpreet Singh Grewal (3025891)

Company Overview
• Owned by renowned entrepreneurs of Quebec City,
Tim Boyle and Andre Bertrand, the Plaza Inn had its
establishment in the year 1920 with a classic Victorian
theme.
• Got featured on the top 10 best Inns by Travel
Magazine.
• The company has undergone significant transitions
with the inclusion of new General Manager, David
Bart.
• Such unprompted alterations developed certain
significant areas of concern among the workforce of
the company.

Major Areas Of Concern
• Operational Symptoms:
 Plaza Inn has been
experiencing immense
shortage of employees that
led to a rapid decline of the
growth in the company’s
sales revenues and profits
 Unorganized operational
system such as deficit of
effective communication
ability and dysfunctional
administrative employee
base is incapable to produce
desired efficiency level.

Major Areas Of Concern
• Behavioural Symptoms:
 Plaza Inn started to receive criticisms from marketing
analysts because of immense work load and pressure
on its staffs.

Causes
Reports reveal the incompetence and ineffective decision
making ability of David Bart which has been reducing
reduced rate of efficiency and delay in room reservations
or other customer services
Following reasons accountable for declined rate of
company’s progress:
 Increased rate of miscommunication and lack of
mutual understanding between GM and former Front
Desk Receptionist, Laura (Robbins & Coulter, 2005)
 Causes behind the increased rate of inefficiency in
functioning of Plaza Inn

Causes
Unexpected replacement of managers within the very
short period
 Abruptly opened several branches of Plaza Inn
without any prior and accurate strategically
implemented approach
Product sale at very reasonable price led to the decline
of Plaza Inn’s brand recognition and customer loyalty
Lack of employee accessibility
Bart’s lack of knowledge and awareness of hospitality
managerial responsibilities have led to the rapid
decline of the company’s growth

PROBLEMS OCCURRING IN PLAZA INN
1. Lack of effective management and supervision
throughout the plaza has led to severe degree of
ineptitude and inefficiency on four significant
management functional areas: planning, organizing,
leading and controlling
2. The business enterprise has been showing high
degree of incompetence in accomplishing
organizational standards and anticipated aims and
objectives
3. Front office being operated single-handedly thus
hampering the smooth functioning of Plaza Inn

PROBLEMS OCCURRING IN PLAZA INN
4. Front office facing further challenges in
providing proper customer services
specifically in room booking services,
attending important calls and important
guests.
5. Thus, resulting to the significant decline of
the hotel’s demand and sales profitability
level
6. Varied spans of supervision within the
organizational structure of the company, thus
leading to severe inconsistency with the
standards and principles of Plaza Inn

RECOMMENDATION
Benefits
• Proper division of work facilitates
the productivity level and reduce
pressure on employees.
• Proper systematic organization will
perform with utmost excellence
without any workload and technical
and managerial errors.
• Cost-effective implementation.
Limitations
• Lack of feasibility.
• Result in ineffectiveness
and lack of assistance
and collaboration.
1. Enhanced Organizational Structure
General Manager, David Bart must take into consideration
 Factors associated to work specialization, chain of command, and span
of control (Directive Management)
 Proper allocation of tasks with suitable and effective techniques

RECOMMENDATION
Benefits
• Enhance the competence level
of manager to supervise
employee performance
• Development of knowledge and
awareness among employees
with rapid decision making
procedures
• Increased rate of opportunities
among employees
Limitations
• Costly to purchase
required equipment and
mechanism
• Time consuming
procedure to provide
inductions to employee
base
Improved communication
 Enhance the level of communication and further improve
the chances of organizational success
 Technological advancement and social media have
immense significance in the process of communication
between various departments of Plaza Inn

RECOMMENDATION
Benefits
• Employees will show intense
rate of motivation and
enthusiasm
• Consistent working
environment
• Useful for managing
employee conflict and
disputes
Limitations
• Lack of proficiency
• Improved level of direction
needed at the time of crisis
• Involves risk taking as not all
the decisions
Directive Management:
 It provides rapid response and increase rate of motivation
among employees by risks and discipline
 Immensely useful for David Bart to implement such
management style