Case Study: Hilton Tokyo: Make Or Buy Strategy

In Bangkok, Thailand, a group of financial investors invested in a hotel called The Regency Grand Hotel. This hotel is the most cherished hotel in town, where the employees and guests enjoy spending time at this five-star hotel. This place hosts approximate 700 employees that give fantastic benefits, year-end bonuses and ensures job security.

In the year 2000, The Ritz-Carlton Hotel Company paired with luxury real estate developer Millennium Partners to build a $225 million hospitality complex in the heart of Washington DC. This 300-room hotel was set to be the first out of a six-hotel deal between these two companies. The structure of the deal was that Millennium Partners would be the owners of the properties and The Ritz-Carlton would manage them.

BCH already had been working with two different costing methods. i.e. RCC (ratio of cost to charges) method and RVU (relative value units) methods. In pursuit of developing a better value driven costing method Meara and Waters started working on TDABC (time driven activity based costing)

Hilton Hotel is founded by Conrad Hilton, they started their operation since 1919 and since then, they become one of the well-respected premier hospitality organizations with diverse employees worldwide. Currently, they have more than 4,600 owned and franchised hotels and resort chain in 100 countries. It has more than 200,000 rooms to accommodate guests from different parts of the world. It has more than 400,000 employees and team members to answers the needs of their guests (Hiltonhotelworldwide.com, 2016). In most of their branches their organizational structure is simple, with managers and supervisors from a different department, including admin, marketing, finance, human resource, concierge, food and beverages, housekeeping and etc.

The uniqueness of products and services offered by Holiday inn are important hence the supplier can drive the prices and their input too is important to success of service , for example Holiday inn can supply local tourists by lowering customer’s price sensitivity. The supplier can gain a competitive advantage provided they have resources and capabilities.

• Evaluating all current and future purchasing policies and practices across the brands to ensure that the range of products placed in hotels not only enhance the guest experience but drive value for owners while supporting the company's overall

The main objective of the company is not only to attract but also to retain staff who are interested to work in the hotel business for the five-star level of high service, taking into account the wishes of clients, and which offers an innovative, dynamic environment and reflects the culture of the local country. To achieve this, Hyatt strives to be a company listening to well-informed and concerned people. Hyatt provides plenty of opportunities at all levels for their employees, which are accompanied by numerous development

Hilton Hotels Corporation – Hilton was founded in 1946 and headquartered in Beverly Hills, California. It has 2,838 hotels worldwide under the brands Conrad, Doubletree, Embassy Suites etc. HTL operates upscale full-service and limited service hotels in urban, airport, resort and suburban locations. It ranks third in the number of employees (105,000) and revenues ($8.6 billion) but second in net income of $552 million.

Hilton Hotels is one of the biggest players in the hospitality industry with over 2900 (as of September 2007) hotels worldwide consisting of numerous brands and products. The hospitality industry is service centered and highly competitive. The challenge for Hilton is to create and deliver value better than its competitors. Hilton understand that it is important to improve customer experience and build strong relationships with the customers. Hilton Hotels adopted a Customer Really Matter (CRM) strategy out of necessity to cater for

1. Why might Bollenbach have opened his bidding for ITT at $55 per share? What was his likely strategy?

It consists of weighting and combining the weights of the ten factors and to evaluate implementing ABC. The potential benefits of ABC can be analyzed in advance along two separate dimensions. And there are ten mediating factors (Pricing Diversity, Support Diversity, Common Processes, Cost Allocation, Growth of Indirect Costs, Pricing Freedom, Fixed Expense Ratio, Strategic Considerations, Cost Reduction Effort, Analysis Frequency) can guide management in determining the answers. The fist five factors (PD, SD, CP, CA, FG) based on the probability. The second dimension of the model seeks to establish decisions. lY axis potential for ABC due to cost distortion---PD.SD.CP.CA.FG lX axis proclivity to use cost information in decision---PF.FE.SC.CR.AF To start management must analyze and responses to two key questions: 1. For a given organization, is it likely that ABC will produce costs that are significantly different from those that are generated with conventional accounting, and does it seem likely that those costs will be "better"? 2. If information that is considered "better" is generated by the system, will the new information change the dependent decisions made by the management? After finish these questions managers of company can discuses the ten factors that support or reject implementation. Finally, the combined weighted scores are plotted as a point on one of the four quadrants of a graph.Plotting the Answers--- Use Contingency Grid Method The steps in the

Having been in the hospitality business for more than 25 years, the Kimpton Hotels Corporation is a national and global company, which had been widely recognized all over as an industry leader in the boutique brand hotel with a tradition of innovative hospitality. According to the Kimpton Hotel Corporation, “Our mission is to be the best-loved hotel and restaurant company by our employees, guests, owners, and communities and to genuinely support our co-workers, provide heartfelt care and comfort for our guests, and deliver superior financial returns to our investors.” Being immensely focused on this mission, the hotel’s primary goal is to be the most preferred boutique hotel brand in the industry.

Hilton was established nearly 100 years ago in Cisco, Texas (USA) in 1919 by Conrad Hilton and has since continued to grow and remained a leader in the hotel industry. Hilton has expanded its hotel family brand in 1997 by acquiring the Promus Corporation which added the Doubletree, Embassy Suites, Hampton Inn and Homewood Suites (Hilton, n.d.). Hiltons Brand, now either through direct ownership, or franchises is

Hotel Chain as showing to us practice is the most effective way of integration to hospitality business. The main advantage of such integration it is immediately creating customer base and bigger potential market of customers, cost reduction due to general management, logistics, marketing; common quality standards; centralized training and, as a consequence of all

In this case, Elite Hotel is planning to employs a total of 300 full-time staff across 7 departments for locals are cheaper than their foreign counterparts. It is good news to the hotel owners and also forces hotel management companies to think carefully when staffing a hotel. As Tim Williams (2013) addressed, "Do not hire expats as Resident Manager, Rooms or F&B Director unless you think they have the potential to push through to GM."