Feeds:
Posts
Comments

The Roaring Dragon Hotel

  The Roaring Dragon Hotel is a three-star hotel that is located in the southwest part of China.  Since the 1980’s the state-owned-enterprise has enjoyed a long colorful history and reputation as on of the regions premium hotels.  The General Manager Tian Wen is not an assertive manager.  Many times he will be at the office which is in another city.  On average Mr. Wen shows up at the hotel once a month.  In 2002 he decided that it was time to expand their hotel and make the jump to a five star hotel.  Wen hired a consulting company to conduct an evaluation of his hotel from top to bottom.  Everything from the service to the procedures was included in the evaluation.  He also wanted to make sure that his employees would be able to make the jump to a premium hotel.  The results of the evaluation were shocking to Mr. Wen.  The results showed that his staff was lazy and incompetent.  There was no way that he would be able to make the transition to a five star hotel without firing most of the six-hundred employees or spending a large amount on re-training the existing ones.  It was found that employees were reading newspapers, drinking tea, conducting personal business and even leaving the premises while on the clock.

 The article I read is asking how can these things happen without anybody noticing?

 I think this happened because of several reasons.  Firstly, I believe that their culture over there has a lot to do with it.  While I don’t agree with the employee’s behaviour, I realize that their culture has a lot more relaxed approach.  I assume that this had a snowball effect towards the employee’s work ethic and habits.  Secondly, I believe that there was not enough direct supervision for the employees.  It said in the article that there were approximately two supervisors for ever one-hundred employees.  It also said that employees could go days and even weeks without seeing their supervisor.  With that much unsupervised time the temptation is too great to slack off and not accomplish the task at hand.  Lastly, I believe that there was no motivation for the employees.  Because the hotel was government funded there was no motivation for the employees to perform in order for the company to succeed.  No matter how the hotel did the government would keep throwing money at them.

  In the summer of 2008 the Nashville Predators management team decided that they were losing too much money in the location they were in.  The Nashville Predators are a hockey team which entered the NHL in 1995.  Since then, their on ice performance has not met the expectations of the team.  They have had some success, however their attendance is always near the bottom of the league and as a result they are losing more and more money year after year.

 The article I read suggested that the team move to Las Vegas.  I completely disagree with this move and I believe that the move would be a complete disaster.  Las Vegas has two minor league sports teams already (Wranglers – ECHL hockey team and Outlaws – GBL baseball team).  Both of these teams have been very successful in their respective sports, however they have both failed to draw fans and are losing money because of it.  Why haven’t they been able to draw fans?  Most teams make a majority of their profits on season ticket holders.  They can be counted on for ticket sales year after year and teams build these guaranteed profits into their budgets for the year.  Unfortunately, I the city that never sleeps, a large portion of the population work during the night which is when most of the games would be played.  Also, most people are not thinking of sports, unless they want to bet, when they go to Law Vegas.  There are just too many other activities that the hockey team would have to compete with in order to convince people to come watch them play instead of seeing a show or gambling.  I believe that if this move was made they would be making a huge mistake.  Nashville cannot stay where they are currently.  If they want to make money they should move to a Canadian city.  It’s our game so why not give us another team!

The Starbucks Decline

Now while we still see a Starbucks on every street corner, the fact is that Starbucks is changing and losing market share to their competitors.  In Canada, their main competitors are Tim Hortons and McDonalds, and in the US their main competitor is Duncan Donuts.  Starbucks is losing market share because their products of high quality-high price is being overshadowed by the fact that we are in a recession.  They are finding that people would rather go to Tim Hortons or McDonalds because they are cheaper.

The article I read is asking the question of whether or not Starbucks should introduce a low-priced product line.

While I am not a heavy Starbucks supporter myself, I do not believe that they should introduce a low-priced product line.  I believe that this would stretch their product line too thin.  I already believe that they sell more than they should.  They have gotten away from their original plan of selling premium drinks.  Now you can buy coffee machines, mugs, gum, CD’s, Christmas ordainments, ect…  I believe that they should stick to marketing themselves as a premium beverage company.  If they were to sell a low priced product then they would be putting themselves in direct competition with their competitors.  Instead, they should focus on brand image and cater to their loyal customers.  These are the customers that come in and get a premium drink because they like the ability to customize their own drink.  Nowhere else can you get a non fat, extra hot, chai tea latte, with no foam, chocolate sprinkles, a dash of cinnamon and a hint of hazelnut.  Currently, it seems like their target market is unclear.  They are trying to do a little bit of everything and while they may feel like they are hitting every market, they are really just bringing in more competitors.

Dell Computers New Direction

 

In 1983 Michael Dell founded Dell computers which focused on selling desktop computers.  Over the next two decades Dell became one of the world’s leading suppliers of computers.  Dell used a direct model which allowed customers to customize and order computers directly from their website.  By cutting out the “middleman”, which in this case was the retailer, Dell was able to cur costs and offer their products at a lower cost.  In 2004 Michael Dell stepped down as the CEO making way for Kevin Rollins to come in and take his place.  Right away Kevin expanded the company into foreign markets.  In 2006 Dell started to lose market share as its competitors started imitating their innovations.

 It is 2010 now and the article I read is trying to figure out where they went wrong and what direction they should take in the future?

 I look at the Dell company and it seems to me like they did not have a long term plan.  When they first entered the market their plan of using a direct sales model worked brilliantly.  However, they seem to have failed to come up with a plan for step two.  They based their marketing plan on low costs but when other companies developed the same idea, Dell stood there like a deer in the headlights.  I also think they stretched their product line too thin.  In the future I would recommend that Dell revise their product line to focus on a simple, effective, low cost computer for the average computer user.  They should push their marketing towards students who are on a budget but are still looking for a reliable and simple computer which they can perform their school work on.  I believe by doing this that they will be able to narrow down a target market that will never become depleted.

Introduction

The task I have given myself is to write a blog on business topics. I plan to take the approach of trying to find real life examples, either in Business Magazine, TV, or newspapers. My goal is to be able to analyze the articles and then be able to give my opinion on the situation from a business point of view.  Since I am a business student at Camosun College, I hope that this blog will help me in analyzing situations and problems which have occured in the business world.   

While you may or may not agree with my posts, I am hoping to shed light on situations in the business world that might not be fully understood. Your comments and questions are welcome.

Follow

Get every new post delivered to your Inbox.