Organizational Analysis of Ritz-Carlton Bahrain: A Case Study Report

This report presents a comprehensive analysis of the Ritz-Carlton Hotel Company, focusing on its Bahrain location. It begins with an overview of the company and its operational environment, followed by an in-depth examination of its internal and external factors using assessment tools such as PESTLE, SWOT, 7S, Balance Scorecard, Business Priority Matrix, and online questionnaires. The analysis identifies strengths like high brand equity and employee empowerment, along with weaknesses such as cultural incompetence and economic vulnerabilities. Opportunities including government tourism expansion and threats such as increasing competition and security concerns are also discussed. The report provides recommendations for organizational structure changes, business target adjustments, and the incorporation of new tools like Gallup's metrics to enhance change management and overall performance. The report concludes with a call for improved strategic alliances and marketing efforts to maintain and grow the company's market position.

Running head: ORGANIZATIONAL BEHAVIOR
Organizational Behavior
Name of the Student
Name of the University
Author Note

1ORGANIZATIONAL BEHAVIOR
Abstract
In this report the current external as well as internal environment of a company has been
analyzed and evaluated with the help of several assessment tools. This analysis will be done
to access the loopholes of the organization that needs to be eradicated. In order to suggest the
required changes, recommendations along with a revised organizational structure will be
provided in this report. The Ritz–Carlton Hotel Company has been selected as the case study.
In internal and external business operation and controlling Ritz–Carlton Hotel Company uses
the PESTLE analysis tool, SWOT analysis tool, Balance Score Card or BSC, Business
Priority Matrix or BPM and Online Assessment Questionnaires. Along with these existing
strategic tools for business operations Ritz–Carlton Hotel Company can also incorporate new
tools namely Gallup’s Employee Engagement Metrics, Line Up Tooland Gallup’s Customers
Engagement Metrics. It has been found that Ritz–Carlton Hotel Company should improve
their change management operation and organization structure to handle the situational
alteration as per the suggested recovery model.

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Table of Content
Introduction................................................................................................................................3
Discussion of Assessment Tools................................................................................................4
Assessment of external and internal environment of the Ritz–Cariton Hotel........................4
PESTEL Analysis...................................................................................................................5
SWOT....................................................................................................................................7
7S..........................................................................................................................................10
Balance Score Card (BSC):..................................................................................................12
Business priority matrix.......................................................................................................14
Online assessment questionnaire..........................................................................................16
Recommendations:...................................................................................................................17
Change in organizational structure:.....................................................................................17
Change in business Target:..................................................................................................19
New tools to be added:.........................................................................................................20
Managing Change:...............................................................................................................22
Conclusion:..............................................................................................................................23
Reference list............................................................................................................................25

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Introduction
The Ritz–Carlton Hotel Company is an American organization which operates the
globally renowned luxury hotel chain popularly known as Ritz-Cariton. The organization
owns 91 resorts as well as luxury hotels in more than 30 developed and developing countries
and has a huge work force of about 40000 employees ( ritzcarlton.com 2018). The
organization has evidenced a gradual increase in revenue due to commendable leadership
provided by the managers and executives. Considering the fact that the western hostility
industry is highly saturated, the management of the organization had chosen Bahrain as a
target market which has the potential to enhance the revenue of the company. Due to its high
quality of products as well as services, Ritz-Cartion is one of the most popular hotels across
Bahrain. Like any other organization, the leadership of the executives plays a major role
behind the success of the company. The company is best known for its highly luxurious
residences (Alsabbagh and Ahmad, 2013). Since direct interaction and services are provided
by the employees of the hotel, the management of Ritz-Carlton considers the staffs to be most
vital part of the organization. With the emergence of globalization, more international
companies have established their branches in Bahrain which in turn has impose an adverse
impact on the monopoly of the company. In this report the current external as well as internal
environment of the company has been analyzed and evaluated with the help of several
assessment tools. This analysis will be done to access the loopholes of the organization that
needs to be eradicated. In order to suggest the required changes, recommendations along with
a revised organizational structure will be provided in this report.
The current organizational structure of the Ritz–Cariton Hotel Company is as follows:

4ORGANIZATIONAL BEHAVIOR
Figure 1: Organization Structure of Ritz-Cariton Hotel
Source: (created by author)
Discussion of Assessment Tools
Assessment of external and internal environment of the Ritz–Cariton Hotel
The term external environment can be defined as the outside influences that impose
an impact on the operation of a business. Assessing the external environment is highly crucial
for an organization since it impose immense impact on the revenue of the company (Hensens
2015). In order to keep up with the flow of operation, the management of Ritz–Cariton Hotel
needs to keep accordance to external environment of the organization. The internal
environment of the Ritz-Cariton Hotel is composed of elements within the company like

5ORGANIZATIONAL BEHAVIOR
current management, employees and corporate culture which defines the behavior of the
employees. In order to access both the external and internal environments of the Ritz-Cariton
Hotel the following tools have been used.
PESTEL Analysis
PEST analysis is a tool that is designed to assess the external environment of an
organization. The 6 external factors that are assessed through PESTLE analysis has the
potential to influence the marketing and relationships that an organization has worked hard to
develop. In order to assess the external factors that have imposed impact on the Ritz-Cariton
Hotel, PESTLE Analysis of the Ritz-Cariton Hotel, Bahrain has been conducted below.
.Political
 The political system of Bahrain is Constitutional monarchy headed by the king.
 The political condition of the country is unstable and violation of human right and
press restriction is frequent. Political instability does impose negative impact on the
hospitability industry of Bahrain (DOBAI 2016).
 Bahrain has small but equipped deference which is known as the Bahrain deference
force. Moreover, the corruption rate is much lower in Bahrain compared to any other
developed country. Since this factors ensures security of the consumers from
unwanted terrorist attacks, it impose positive impact on the hotel industry of Bahrain.
 The government of Bahrain facilitates the hospitality industry in order to enhance the
revenue of the country.
Economic
 The economy of Bahrain is oil dependent. Currently, the government is giving priority
to other industries to make Bahrain oil-dependent.

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 Considering the fact that in the year 2017, the total revenue obtained from the
hospitality industry is 16 percent more than what was expected, the Bahrainian
government is providing more opportunities for the development of the Bahrainian
hospitality industry (Zalengera et al. 2014).
 The GDP of Bahrain has got reduced by 2.1 percent due to global financial turmoil.
This has imposed a negative impact on the hospitality industry since it has reduced the
number of consumers of the same.
Socio-Cultural
 The country is governed by Islamic laws and regulation. The society of Bahrain lacks
cultural diversity and there prevails a cultural incompetence in the society. Since hotel
industry involves visitors from all over the world, lack off cultural competence in the
citizen imposes negative impact on the hospitality industry.
 The workforce of Bahrain is growing. However, there prevails lack o cultural
competence amongst the employees of the hospitality industry (Bharwani and
Mathews 2012).
 The hospitality industry of Bahrain suffers substantial decline in business during
Ramadan.
Technological
 Bahrain is a technologically advanced country. The well connected transportation
network of Bahrain enhances the effectiveness of both inbound and outbound logistic
of the hotel industry.
 The 24*7 access to the internet and round the clock electricity helps hotels in Bahrain
to ameliorate the ease of doing business (Aithal 2017).

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Legal
 Bahrain does not have federal system. The Egyptian law and French law influence the
legal system of Bahrain.
 Bahrain has a national constitution and the laws are codified.
 Certain business activities are reserved even for Bahraini nationals and companies.
 The Commercial Companies Law allows incorporation of 100% foreign capital for
foreign companies (Najjar 2012).
Environmental
 Scarcity of fresh water, desertification, and pollution from oil production are the
major environmental problems in Bahrain.
 The industrial development and population growth in Bahrain is reducing the
agricultural land and lowered the water level (Coccia 2014).
SWOT
SWOT analysis is considered to be a highly useful tool that helps the management of
an organization to assess the internal environment of an organization by detecting it s
strengths and weaknesses and identifying both opportunities and threat faced y the same. In
the following paragraph, SWOT analysis of the Ritz-Carlton hotel has been performed.
Strengths
 High brand equity: Ritz Carlton is one of the most renewed luxurious hotel chains
across the world.
 Employee empowerment: The company has major training operation in its Ritz –
Carlton learning Institute along with Ritz-Carlton Leadership center. In both the

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institutes more than 50,000 executives from different branches of the company across
the world are trained in the Ritz-Carlton principle of services (Idris and Abdul Wahab
2015).
 Consumer good will: Well trained employees provide high quality of services and
products to the consumers. Moreover, in depth sharing of data base of the consumers
for creating an effective consumer-employee relationship acts as a competitive
advantage for the mentioned organization.
Weaknesses
 Low competitive competence of the residence of Bahrain can be considered as a
major weakness of Ritz-Carlton Bahrain.
 The brand name of the company comes with the perception of being expensive and
thus is avoided by the middle class and upper middle class population of Bahrain.
 The current economic turmoil of Bahrain imposes a negative impact on the spending
of the company.
 The declining bottom line and high employee turnover of the mentioned hotel can be
considered as another major weakness of the country.
 The incident of suicide bombing that took place in the year 2009, 17th July has raised
a doubt about the security provided by the management in the consumer’s mind (Seal
2016).
Opportunities
 The company can enhance its consumer base through increased cooperate tie ups and
through special packages
 Considering the fact that the government of Bahrain is working upon the expansion of
global tourism, the market of the mentioned will get enhanced.

9ORGANIZATIONAL BEHAVIOR
 Opening new hotels in developing countries in the eastern region and targeting asian
market in order to gain competitive advantages.
 The management can improve as well as promote the security arrangement of the
hotel in order to regain its potential consumers.
 In order to enhance the good will of the consumers, the management can undertake
crucial social responsibilities (Fazli and Farooq 2018).
 For promotional purpose, Ritz-Carlton, Bahrain can sponsor popular events .
Threats
 Increasing costs for operations in Bahrain has indirectly affected the rate of the
service provided by the Ritz-Carlton Hotel
 Another major threat of the mentioned hotel is the emergence of new luxury hotels
like, Hyatt, Starwood hotel and resort and Hilton in Bahrain. Intense completion from
global as well as local we recognized hotels can impose an adverse impact on the
revenue of the country (DOBAI 2016).
 The declining tourism industry due to terrorist activities and natural disaster can be
considered as another threat to the hotel chain.
 The rescission that took place across the world may decrease the number of
international visitors in Bahrain. This will adversely affect the Ritz-Carlton hotel,
Bahrain.
 The new innovate ideas of the new entrances are attracting people.
 Security threat due to recent terrorism in Bahrain is another major threat faced by the
mentioned company.

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7S
McKinsey’s 7S model is referred to a assessment tool that analyzes the organizational
design of an institution by analyzing the 7 key internal elements that includes strategy,
structure, system, shared values, style, staff and skills of that organization (Kohtamäki et al.
2012). This tool is used to identify if all the seven factors are effectively aligned so that the
organization can achieve success. In the following paragraph, 7S analysis of the Ritz-Carton
Company has been conducted
1. Strategy:
 Establishing strategic alliance
 The Hr department of Ritz-Carlton Hotel, Bahrain is implementing strategy to
educate its employees about the negative impact of cultural incompetence.
 The company is focusing on international marketing as well as re-branding of
hotels (Mishrif and Al Balushi 2017).
2. Structure:
 The company is currently following a top to bottom, vertical organizational
structure.
3. System:
 Lodging management system: this system includes various modules including
front office, guest history, group sales, travel agencies, accounts receivable and
yield management.
 Easy reservation input
 Maintaining waiting lists
 The company provides optimal return on rooms along with maximum room
occupancy and flexible room concession (Fazli and Farooq 2018).

11ORGANIZATIONAL BEHAVIOR
 The company provides pre-printed registration cards along with confirmation
letters.
4. Shared values:
 The aim of the company is to gain the top position in the hotel industry
 The company is cautious about its role in the in the community. The management
is involved in supporting various social requirements and ensuring employment
with the local community of Bahrain.
5. Skills:
 Ritz-Carlton, Bahrain, is committed to ensure the satisfaction of the consumers.
 The management provides special training to the executives for critical, analytical
as well as problem solving skills that have been developed through researching,
evaluating and presenting data and arguments.
 The management of the hotel have recruited employees with it skills in order to
collect, organize and present information in spreadsheet or database.
 However, lack of negation and team working spirit has been observed in the team.
6. Style:
 The management of the organization follows too bottom up style.
 Major decision about recruitment and other policies and procedures are taken in
top down fashion while decision about pricing and consumers arew taken in the
bottom up fashion.
7. Staff:
 The company provides effective training to its employees.
 Two major training institutes have been constructed to train all the employees
under the same roof (Mishrif and Al Balushi 2017)