Ritz-Carlton Hotel Management: A Strategic Analysis Report

This report provides a comprehensive analysis of the Ritz-Carlton Hotel's management practices, focusing on human resource management (HRM), talent management, organizational performance, and competitive advantage. The report begins with an executive summary and table of contents, followed by a project outline that includes research background, rationale, and justification. A literature review explores the role of HRM practices on talent management, organizational performance, and competitive advantage. The analysis examines the Ritz-Carlton's mission, vision, and values, highlighting its commitment to providing exceptional service and employee satisfaction. The report investigates the company's transnational strategy and its ability to manage global talent to sustain a competitive edge. Key success factors, such as customer loyalty and employee empowerment, are discussed, along with the challenges of global expansion. The six principles of the talent management wheel are applied to assess Ritz-Carlton's strategies. Finally, the report provides conclusions and recommendations, offering insights into how the company can maintain its success. The report also analyzes the training and development of employees along with talent management, and provides recommendations on how to address issues in a more effective manner.

Running head: MANAGEMENT OF RITZ CARLTON HOTEL
MANAGEMENT OF RITZ CARLTON HOTEL
Name of the student:
Name of the University:
Author Note:

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Executive Summary:
The report is focused on the management of the Ritz Carlton hotel. The organization has a
separate culture which should be maintained as it encourages strong employee relations. In
collaboration with the different hiring managers of the company, the HR department helps in
providing the training related to leadership, teamwork management as well as scheduling
assistance which will be beneficial for the success of the different companies. It can be
concluded that Ritz Carlton hotels are present in some of the best locations across the world.
The positions of their hotels are allocated based on research of where guests who prefer to
avail luxury accommodation and want to stay.

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Table of Contents
MANAGEMENT OF RITZ CARLTON HOTEL.................................................................0
1.Project Outline........................................................................................................................3
1.1 Research background - Ritz Carlton Hotel......................................................................3
1.2 The rationale for the Project and Justification.................................................................3
2. Literature Review...................................................................................................................6
2.1 Role of The HRM Practices on Talent Management, Organisation Performance and
Competitive Advantage..........................................................................................................6
2.2 Case study questions........................................................................................................9
3. Conclusion:..........................................................................................................................18
4. The main findings and recommendations:...........................................................................18
5. References.........................................................................................................................20

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1.Project Outline
1.1 Research background - Ritz Carlton Hotel
In the respective project, the organization which has been taken into consideration is
Ritz Carlton Hotel in which the different kinds of success related factors and gaining
competitive advantage in comparison to the other competitors present in the market. The
mission of the company is the Credo as Ritz Carlton is the place wherein the comfort and
genuine care are the two utmost important aspects which should be followed by them which
will be increasing the growth prospects of the company. The company has taken pledge for
providing finest personal kind of services as well as facilities for the guests who are capable
of enjoying the relaxed, warm as well as refined type of ambience.
On the other hand, the vision and values of Ritz Carlton is to take care of the different
employees working with them as they are considered to be the major asset of the company
and they need to be treated well which will be satisfying the growth of the company suitably.
From the mission and vision of the company, it can be analyzed that Ritz Carlton is one of
the most successful hotels in comparison to the other hotels which are the major competitors
and it will be suitable for attracting large number of customers in the market.
1.2 The rationale for the Project and Justification
The report throws light on analyzing along with reviewing the role of the different
current practices related to human resource management on talent management, performance
of the companies as well as competitive advantage at Ritz-Carlton. In addition, proper
recommendations are required to be provided to the Ritz-Carlton Company which will be
helpful for them in generating continued success and it will be enhancing the growth of the
company in the near future.
From the case study, it can be seen that the company has adopted the transnational
strategy which is the think and act in the global manner for meeting the different needs of the
employees along with serving the guests in an appropriate manner which will be showcasing
the fact that they are working towards the success of the company in efficiently. In addition,
to become a more sustainable organization in the market in comparison to the other
competitors, it can be seen that Ritz-Carlton has been able to provide the different employees
with the different kinds of feedback along with managing the general morale of the
employees working in the organization which will be enhancing the overall effectiveness of

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the company in the future. Ritz Carlton is one of the luxury hotels which has their presence in
more than twenty countries and therefore, there is huge pressure on the company to maintain
the strong brand image that can be helpful for them in improving the presence and it will be
attracting more customers in the market in the positive and appropriate manner (Ritz Carlton
2014).
As commented by Stone et. al.(2015), the different companies need to analyze the
success related factors which will be based on the service quality excellence and it helped in
maintaining their effectiveness in a suitable manner. In the present scenario, there are 38000
employees working in the organization and they have been able to maintain their reputation
in a positive manner (Ritz Carlton 2014). The exceptional kind of services which are being
provided by the hotel has helped them in the overall growth aspects of the company and it has
enhanced the overall reputation of the company in a suitable manner as well. Additionally,
the different kinds of activities which are being performed by the Ritz Carlton Hotel has
assisted them in managing the growth and it has been helpful in enhancing the overall growth
of the company in a positive manner.
From the respective case study of Ritz Carlton, there are different kinds of factors
such as introducing the different technological advancements that will be suitable for the
growth of the business related to hotel industry. The main aim and purpose of the case study
is to showcase the different formulation of strategies which will be beneficial in satisfying the
needs of the clients and serve them with the different amenities which can be helpful for
maintaining the strong brand image along with satisfying the requirements of the clients. The
loyalty of the stakeholders is the key element which should be managed by the different
hotels as it will be helpful in understanding and managing the different needs and the same
can be evaluated with the help of the dedication which will be shown from the respective
perspective.
In addition, the customer focused results play a vital role in making the business more
effective both internally and externally. In case of the respective Ritz Carlton case study, it
can be showcased that Ritz help in creating the type of work environment which will be
providing skilled and empowered workforce which will be enhancing the overall growth of
the company and enhances the satisfaction of employees and customers in a positive manner.
Ritz Carlton tried to effectively make the intangible into tangible aspects and through the
hard work and respect, the company has been able to improve the overall expectations of the

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company in a positive manner. The company or the hotel takes the entire time in earning the
trust of the different individuals through generating the excellent service and state of art of
the infrastructure which will be helpful in making the overall environment competitive in
nature. In the respective case study, the different kinds of key success factors are required to
be identified and analyzed which will be helpful in generating the marketing excellence and it
will be showcasing the different talents in a positive manner (Albrecht et al. 2015).
There have been different issues which have affected the growth of the firm and due
to the same, it affected the overall effectiveness of the firm in the last few years; however, it
helps in improving the experience of the different employees and it helped them in improving
their excellence factors in a positive manner. In the past, present and future, the main aim and
purpose of Ritz Carlton Hotel was to provide the customers with proper satisfaction and
provide the different employees with the different amenities which will satisfy the experience
and showcase skills in improving the growth of the firm positively.
Moreover, the six wheels of the talent management process are required to be
analyzed and implemented by the company which will be beneficial for them in
understanding the success and the growth of the company will be analyzed in a better manner
as well. The training and development of the employees along with talent management are
the key aspects which have been considered in case of Ritz Carlton Hotel which helps them
in improving the overall procedure of becoming more competitive in comparison to the other
competitors present in the market. Through the proper usage of the SWOT and PESTEL
analysis, the different opportunities, strengths, weaknesses along with understanding the
different kinds of factors from PESTEL analysis are required to be addressed which will be
enhancing the success and competitive advantage of the company in comparison to the
competitors which are present in the market.
Moreover, in case of the global expansion of the company in different other countries,
there can be different loopholes which can be faced by them that can affect the overall growth
of the firm and it can be ineffective for the overall efficiency of the company in a negative
manner. In such scenario, there can be different strategies which can be implemented by the
company which will be beneficial for enhancement of the company and it will be essential for
overall development of the company in a positive manner as well. The strategy related to
diversification is required to be identified which will be enhancing the success of the
company and there can be different suggestions which can be provided that will helpful in

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increasing the employee engagement practices in a positive manner. Proper integration of the
feedback from the employees is one of the main aspects which should be analyzed as it will
be beneficial for the strong brand image of the firm and it will help them in introducing the
other techniques which will be beneficial in improving the success growth of the company.
In the present scenario, the exceptional kind of customer service plays a major role in
different kinds of organizations as the customers play a pivotal role in managing the
profitability of the company in a positive manner. However, in case of Ritz Carlton Hotel, it
can be seen that there are different kinds of pros and cons in the training process which has
been conducted for the employees and it affects the overall profitability and revenue
generation of the firm in a negative manner. In managing such kind of scenario, proper
recommendations are required to be provided to the respective organization which will be
helpful for them in dealing with such issues in a more effective manner and it will be
providing the justified solutions that will be enhancing the growth of the firm in a positive
manner which will be beneficial in retaining the loyal customers and the employees will be
satisfied with such kind of services in comparison to the other competitors which can be a
huge threat for the Ritz Carlton Hotel.
2. Literature Review
2.1 Role of The HRM Practices on Talent Management, Organisation Performance and
Competitive Advantage
According to Paillé et al. (2014), the different companies are being made of the
different individuals and these are the individuals who make or mar the Organization. In the
current complex business environment there are different changes which includes changes in
pricing strategies, changes in the technology along with changes in labor law has become a
huge challenge to use properly by the different managers for gaining competitive advantage
in the market. As opined by Noe et. al. (2017), the human resource is the crucial element for
the companies in terms of the turnover of the labor, financial growth and productivity of the
company. in a positive or negative manner. In addition, as opined by Messersmith and Wales
(2013), the good human resource management practices play a crucial role in the retention of
the different employees and the productivity will be increasing to a great extent.

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In many scenarios, as commented by Kehoe and Wright (2013), there are different
kinds of reasons wherein the different employees feel frustrated and they cannot render the
maximum outcome which will be suitable for the growth of the company. Additionally, as
stated by Jackson, Schuler and Jiang (2014), the human resource practices improve the
bottom line of the organization with the knowledge on how the human capital affects the
success of the company. In such scenario, as opined by Alfes et al. (2013), the leaders with
the expertise in the HR strategic management can participate in the corporate decision-
making procedures which will be suitable for generating the huge positive effect on the
overall productivity of the company.
Moreover, as stated by Albrecht et al. (2015), the employee relations are the other
major aspects which should be incorporated by the companies as it will be enhancing the
growth of the company which will be enhancing the company’s effectiveness. Through
creation and adopting the different kinds of training and development procedures, the
company can be beneficial in supporting the fair employment practices as well as
development of the different employees for preparing the aspiring leaders for the
management and supervisory roles. According to Stone et al. (2015), the proper analysis of
the benefits is the other aspect which should be managed by the different leaders working in
the company as it enhances the exposure of the employees in performance of the companies
which will be suitable for effectiveness.
According to Stone et al. (2015), each and every organization has a separate culture
which should be maintained as it encourages the strong employee relations. In collaboration
with the different hiring managers of the company, the HR department helps in providing the
training related to leadership, teamwork management as well as scheduling assistance which
will be beneficial for the success of the different companies. As commented by Paillé et al.
(2014), proper development of the standardized as well as fair strategic compensation plan is
the most suitable aspect which should be managed by the company as it will be suitable for
managing the different needs and demands of the employees effectively.
As commented by Paillé et al. (2014), there should be different recommendations
which can be incorporated by the organizations for the suitable and appropriate functioning
of the different companies suitably which will be effective for the growth of the employees
working in the companies. In the current scenario of the economic downturn, it can be seen
that there is high level of demand for the talents and it has been highly difficult for the

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different companies to attract, develop or deploy the different employees. The talent
management is one of the major aspects which need to be adopted by the organizations for
improving the scenario and gain competitive advantage. As opined by Stone et al. (2015), all
the companies need to adopt the talent management related practices that will be suitable for
achieving the strategic business objectives. However, in the recent years, it has been seen that
the concept of talent management has been successful in attracting most of the attention of
different researchers that helped them in competing with the other companies in the market
and improve the scenario of the company suitably.
In addition, the primary function of the talent management in companies is to improve
engagement of the employees which will be effective in retaining the essential talents
working in the companies. The talent management is the fundamental element for deciding to
reduce the costs and focus on the different competencies as to become leaner. There are
various companies in the global business environment, they have tried to invest in the long
term strategies to hire as well as develop management skills and in addition, implement
integrated talent management development strategies (Stone et al. 2015). Hence, in such
scenario, the well-planned strategy can be suitable for overcoming the difficulties and boost
the success of the business. In the new competitive business environment, the different
companies not only need to be clear relating to the balanced number of talents to flourish but
need to able to effectively manage the talent. As opined by Messersmith and Wales (2013),
these kind of dual initiatives are the most critical issue which can determine the success or the
failure of the company.
Proper deployment of the talents is the major aspect which will be suitable for
implementing the strategic plans. The strategic kind of deployment will be beneficial in
growing more effectiveness in managing and taking the different decisions which are vital for
the success of the companies and growth of the employees. There can be usage of SMART
objectives that can be incorporated by the companies as it will be providing them with the
development of the talents as it can be individualizing the different development
opportunities which are suitable for gaining success in the market and achieve the
effectiveness in comparison to the other competitors present in the market and the employees
will be becoming loyal towards the company.
Firstly, as opined by Messersmith and Wales (2013) there should be inclusion of the
active workplace environment which is complete with events, celebrations along with team

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building related activities which will be suitable for the effectiveness of the company. HR
should be able to actively and effectively manage and engage the different employees which
helps them in keeping happy which will increase their morale and it will create huge impact
on the work which is performed by them in a positive manner.
Secondly, as commented by Messersmith and Wales (2013), the HR department or
team needs to be proactive in terms of the resolving the different issues or conflict within the
respective company for mapping out the most effective approach for enhancing the work
productivity in the workplace which will be suitable for growth of employees and the
company positively. As commented by Kehoe and Wright (2013), the conflicts are the major
part of the healthy and robust workplace and the effective working conditions will be playing
a suitable role in managing the morale of employees and the HR can help by knowing players
and taking the necessary role of coaching the different employees effectively that will be
enhancing growth of the companies.
From the different recommendations, it can be seen that there are different kinds of
aspects such as streamlining of the workplace processes as well as systems are important to
produce an effective workplace strategy which will be required by the company in the real-
time and it will be suitable for the success of the company. Moreover, according to Albrecht
et al. (2015), the human resource management is handled in a strategic manner, it will be
flowing steadily from the mission and vision of the company and it in turn, enables the
employees to see where the employees fits within the company.
Through motivating the different employees, it will be helpful for the company to
gain competitive advantage and it will be beneficial in the enhancement of the success of the
company that will be generating the overall effectiveness of the company in a positive
manner. As opined by Albrecht et al. (2015), when the human resource management practices
are suitable, it will be enabling the different employees to participate in the direction of the
company. From the strategic perspective, the effective talent management system helps the
employees in achieving the goals suitably, and they will be the ones who can take part in the
bigger aspects of the jobs than the ones in which they are presently engaged.
2.2 Case study questions
Answer 1.
Main reasons for Ritz-Carlton success:

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 Customer Service: Customer service is an essential part of the hotel industry. In Ritz-
Carlton hotel front desk staffs or receptionist serves as a security officer of the hotel.
This front desk staff provides the visitor’s first and last impression (Dzhandzhugazova
et al. 2016). Thus Ritz-Carlton hotels achieve huge success by ensuring their
employees is capable of resolving any critical problems that arise, experienced,
intelligent and courteous. Ritz-Carlton Hotel providing high quality services also
marked the names and preferences of repeat customers and giving feedback about
attraction and other factors(Molina-Azorín et al.2015).
 Cost Control: The crucial factor in the Ritz-Carlton Hotel’s success is Managing cost.
Most of the hotels increase their price in pick seasons. Also, establish hotel’s faith and
trust for the repeat customers to providing lower rates while charging high rates for
other visitors (Buil, Martínez, and Matute 2016). Computer programs also help
managers of Ritz-Carlton Hotel to recognise the visitors most willing to pay out
money. The manager proposed directly to the person before offering packages, other
incentives and upgrades. Ritz-Carlton Hotel achieves their success because they
adjust the cost of staffs beverages, food, electricity, wages and also maintained
amenities, food- beverages, gift shop and deriving gain from booked rooms, facilities,
gift shops and food and beverages(Wan 2015).
 Advertising: Successful hotels like Ritz-Carlton Hotel target particular customers and
will offer their price rate, facilities and advertising strategies. For example, Ritz-
Carlton Hotel advertises for business franchise by offering corporate discounts and
coupons in an ideal location. Ritz-Carlton hotel also promotes their brand as a venue
for business conference, displaying their magazines in the corner of the meeting room.
Customer prefers Ritz-Carlton Hotel for their interior decoration, luxurious rooms,
facilities, room service and bargain price(Peng 2014).
 Location and position: Location and place of the Ritz-Carlton Hotel is an essential
factor and good impact on the hotel sector because the ideas regarding where to

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establish a hotel require close to the tourism spots. It is the business strategy defined
by Ritz-Carlton Hotel that will determine whether they locate their business on beside
the sea beach, in hill station to take advantage of the snowfall, historical places such
as statue, or in historical cities, near airports, ports, etc (Lee et al.2014)
Answer 2.
Primary sources of Ritz-Carlton success:
 Shoot for the heart:
The Ritz-Carlton Hotel concern about the selection and recruitment process of
“world-class ladies and gentlemen”. They advise others in the technical skills for a
role, but they can’t train others to have a serious, caring attitude for others. Mainly for
customer-related roles and front desk positions, management of the Ritz-Carlton
Hotel searching for someone who has serviced mentality.
 Implement rewards and recognition programs for employees to sustain the expected
performance in relation to service components:
The Ritz-Carlton Hotel preferred building awards and recognition components
to mark the variety of guest service behaviours that their organization looks for staffs
demonstrate. If a Ritz-Carlton Hotel’s staff is noticed doing something right, he or she
can get a First-Class Card as a form of compliment and recognition. This First-Class
Card also gives staffs opportunities to got incentives, bonus and free coupons like a
free dinner or movie ticket. The Ritz-Carlton’s “Five Star” award function provides
cashback rewards for those employees who proved internal or external both services
with perfection on different programs.
 Train and develop employees to be able to sustain high standards for service:
In the 19th century, when the hotels and restaurant size were small, the
managers organized all the activities personally, including quality management. But
when the hotel enlarges their business, hotel size and organizing them was beyond the