Consur Case Study 2.0 PDF

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CONSUR CASE STUDY. Consur case study

3º ADE + RRII Antonio Iturmendi 7 October 2019 Natalie Coolidge Carolina Minaya Gwen Vrenken

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INDEX

● 1. Which are the problems ? ○ Which was the previous company’s strategy and which is the new one ?

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Is the personal policy matching the new strategy?

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which internal and external changes have happened?

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is the new strategy in line with these changes?

2. Criteria to solve the problems

● 3. Alternatives. ● 4. Recommendation.

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CASE STUDY; CONSUR S.A,

1. Which are the problems? A. Which was the previous company’s strategy and which is the new one ? Originally, CONSUR, S.A. was a traditional hotel that operated at a middle class level. The place had normal facilities and moderate prices. The hotel most likely operated on about a 2 or 3 star level. The article claims that the management policies were successful prior to TURNA’s acquisition of shares. This means that the management style must have been in line with the type of hotel they were operating.

The policies of the hotel were most likely in the Human Resources and Human Capital Management category. With this, employees are able to solve issues by negotiating their working conditions. Management also focuses on following the laws and improving the life of employees.

When TURNA took over the hotel, they made many changes. TURNA invested a lot into the hotel by modernizing the facilities, installing two luxury restaurants, creating a sailing school, and increasing the services that are offered. With these changes, the hotel became one of the most modern holiday centers in the country. At first this worked great. The hotel got a lot of publicity and was successful. However, this success did not last long. The hotel has been in a crisis for three years. The investments made to the hotel took it from 2 or 3 stars to a 5 star hotel. However, with all these investments, there is one area TURNA neglected to advance: the staff.

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B. Is the personal policy matching the new strategy? The type of facility that a company is aiming to run dictates the management style that they must use to be successful. TURNA upgraded from a middle class to a high class hotel, however, they did not upgrade their training or management style. The hotel could not modernized its facilities and make additions without improving the quality of service offered by the staff. When people pay higher prices, as they probably did after the company upgraded, they expect higher quality service. The employees can not operate on the same level as they did before the upgrades and still be successful.

C. which internal and external changes have happened? When the company TURNA bought shares of the CONSUR group, it decided to completely change the image of the hotel. The main external changes that affected the hotel were: heavy investments were made to modernize the hotel facilities, a sailing school, restaurants, room decorations, etcetera. This helped to give the hotel a more luxurious and higher quality approach. Another external change that we can analyze is the target market of the renovated hotel. At first, the clients to whom the hotel was directed were those with an average purchasing power; it was also directed towards a local market. Reforming the hotel also increased the quality, in doing so, the new target market is people with higher financial capabilities (people who most likely have a higher income). Competitiveness is another external change to analyze. Increasing capacities from the company also caused the range of competitors to grow. At this time, the company should have adapted to the change in competitors, however, this shift was not addressed. An internal change that we can analyze would be the way in which the hotel is run, as it went from being a traditional hotel to being a luxury hotel and the measures that this entails. In this case, we could say that there have been hardly any internal changes since the hotel maintenance policies have remained the same. As for the hotel staff, there have been internal changes but on a very small scale.

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The staff is the same as always but those people who have been working in the hotel for years have been named responsible. The collaboration and the sense of identity with the company was lost in the transition. Reorganization is necessary when a group is faced with a new way of working.

Therefore, we could say that the main root of the hotel crisis is that the internal changes that have taken place have not been well managed. Mismanagement of personnel leads to the creation of conflicts, an environment of malice in the company, etcetera. This does not mean that in a company there should be no conflicts. What is important is that the management and employees know how to deal with them properly when they arise. Companies not only have to address differences among people, but they also have to make sure all employees are capable of adapting cohesively to the new environment.

D. Is the new strategy in line with these changes?

The personnel policy is not in line with the new strategy of the company. The surface of the hotel may have changed, however, the structure and operations have not. The image of the hotel has been transformed, as it is now a more luxurious setting, but the look of the hotel is not everything, it is just one component. There are many other aspects that must also be addressed. Apart from this obvious situation, we see in the different questions asked to the employees about the new maintenance of the hotel that many complaints have been received from the clients about the quality of the products. Here we see again that the changes made with what customers expect from the hotel do not match. Therefore, the main mistake that the hotel has made is not to renew and invest in the personnel that set in motion the different services of the hotel. That is why the company must work to align the new strategy for operating the employees of the hotel with the changes made. Overall, we could say that companies are open systems with a series of interrelated elements, these elements are affected by the environment. If managed properly, an asset that can cope with the external and internal changes to the environment are people. Therefore, they must be given the necessary skills, training, support, leadership, and resources so that there is no resistance to change.

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2. Criteria to solve the problems. There are several criteria at which the organization must take into account. The organization should create a strategic plan. From here, the mission, vision and strategy can be made. The organization must have clear once again why they exist, what they want (what sort of customers) and the approach above. This requires looking at the aspects of money, time and how many staff are needed. The alignment between the strategic / tactical management and operational management should be good. The mission, vision and strategy should also be translated throughout the entire organization. Overall, good collaboration is needed. Another criteria which the organization must take care of to solve the problem is the staff. The organization's focus will be on development. They must make changes in this area as well. It is important to look at the amount of staff that is needed. This requires consideration of: efficiency, culture of the staff, flexibility and skill level of the employees. The last criteria is money and time. To change the vision of the company, money and time are needed. It is important to consider changes that can be made to the financial situation as well. A plan (strategy) must be made to estimate how much money it will cost and the amount of time needed for this.

3. Alternatives. Alternatives to solve the issue would be to fire the current staff and hire all new employees. This would still require a time and financial commitment in order to train those employees. The hotel could also evaluate each position in the organization to determine the necessary skills for each job. Management could then evaluate each employee to determine their strengths and weaknesses. This would help management to assign each person to the job that is a best fit. Another very important point would be to analyze in detail who is the best qualified person to run the hotel, since the current director is the same as 30 years ago. This creates a big problem by changing the focus and vision of the new hotel. However, this would be a time consuming process.

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4. Recommendation. Luckily, there are ways to fix these issues so that the company will be profitable again. First, the company needs to retrain it’s employees. Before the hotel upgraded it’s facilities and amenities, the employees were successful. They operated at an average level to match the moderately priced hotel. They were given the opportunity to negotiate and have say in the operations to an extent. However, it seems that when the company moved to five stars, the employees were not informed about how this shift would affect their positions as well. A high end hotel must also have a high end staff. This means they must always be working efficiently. Management should evaluate each job in the hotel in order to determine the most efficient way each job can be done. Then they must teach the employee the best method for completing their required tasks. This will make sure all jobs are operating at the highest level. Moreover, since guests will be paying more to stay at the hotel, they will also be expecting more. Not only improved physical features and amenities, but also from the people working at the hotel. Therefore, the staff must be trained to provide exceptional service. All employees must be very polite, attentive, and cater to the guest’s needs. Training guests in this area will be highly beneficial in making the guests feel more welcomed and improving the overall guest experience. The article claims that there was a lack of collaboration amongst employees and the organization. This is the opposite of what should have happened. When upgrading to 5 stars, the hotel should have worked to increase collaboration, rather than letting it decline. Employees must not only implement these individual changes, but they must also learn to work together effectively as well. When becoming a top level organization, collaboration is essential. Employees must learn to work together effectively; this requires constant communication between departments as well as individuals. Management should encourage employees to work together on tasks, and share ideas. When operating on a high level, workers should innovate and work to improve or find new solutions to any problems that arise. This will help the company to expand and grow even more.

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The shifts that must occur are not only in the conduct of the employees, but in the management style as well. When transitioning to a 5 star hotel, management takes on even more of a leadership role. Managers must set an example for the employees by working alongside them in order to guide them correctly. They must also motivate the employees to perform their best and empower then to handle conflicts.

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