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Case Study - The Imperial

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Brian Ramirez

on 15 February 2015

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Transcript of Case Study - The Imperial

The Imperial is a seaside hotel in Mombasa, Kenya
It was founded in 1906
It was managed by a single trader
Its reputation quickly grew and stayed that way up to the 1950's
Case Study - The Imperial
Due to continuous political unrest in the region, the hotel has changed hands many times, since investors would panic and sell the hotel.
Ownership Problems
In 1989, GP ( an international investment group) purchased the hotel. Since GP was thought of as a symbol of modern business at the time, the company was in a good public light.

The company resolved to place an on-site manager to deal with daily business and report annually on profits.
Global Properties Purchase
GP selected Martin Kimathi as manager of the hotel. His heritage and Westernization appeared to be an excellent mix; precisely what the company wanted. However, Martin's selection proved to bring problems, aside from the state of the hotel itself.
New Management
The long-term problem in the Imperial was that bookings were steadily decreasing due to new, better hotels appearing.

On a short-term basis, the company was having problems managing its monthly budgets due to lack of accuracy in calculating costs and stock.
Problems in the Imperial
Martin has a problem with other employees, specifically with Susan Chapman, who resented not having received the management post. Her actions were causing problems amongst the employees, who went on strike.
Human Resource issues
Martin was forced to make a decision. He had to decide on what would be the next step for Imperial long term decisions.
The Options
Total rebuild of the facilities, for being more competitive to the new luxury hotel.
Option 1
Brian A. Ramirez
Carlos Cerdeira
Option 3
Go for a strategic alliance with the famous safari KenSafar, which would offer a conjoint vacations, including facilities from the hotel and the safari.
IB Questions
1. Compare Martin's and Susan's Leadership styles and:
a) suggest how Susan can use flexible working practices to better her relationship with other employees
b) Suggest ways in which Martin can pacify the employees with incentives.

2. Analyze the circumstances of Susan's rejection and suggest whether fair recruiting practices were used or not.

3. Discuss whether GP's hands-off style of management could cause more problems in the future (due to GP not knowing what is going on until the annual report arrives.
Option 2

Change the nature of the hotel transforming the hotel rooms into self-contained apartments, with small kitchens.
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