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Roaring Dragon Hotel

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1. What mistakes did the HI team make?

a) HI team ignored the Guanxi practices that RDH had been maintaining for so long and which is also one of the main reason of their success. Consequently it resulted in loss of critical industrial contact

b) Employing staff more than needed in the name of modernization.

c) Rather than making a smooth transition, HI team changed the management into strict and demanding environment. Any employee who fails to meet the demand had to leave. They did not think about any other alternatives.

d) They totally ignored Nu Fu travel agency that in the past provided many customers and banquet regarding them cheap to think about. They did not thought about the relation that RDH had with Nu Fu travel agency which consequently resulted in loss of business when the competition was at peak.

e) Fang, one of the oldest member of Chinese management team left taking share and industrial contacts with her and the HI team just let her go.

f) They did not care about the Chinese culture, the emotions of staff members who had worked there for long time.

g) They behaved rudely and showed no respect when they asked all the disqualified staff to collect they their payroll and leave all of a sudden. Nor did they thank them for their loyal service for so many years.

h) The hotel was not making money but the HI team didn't care. But instead they presented budget report for more expense.

i) Fortune lied to himself by admitting each day was a struggle but the progress was being made.

j) Despite of all their effort, nothing was coming out of it. There was depression in the air. But still, HI did not wanted to admit.

k) The HI team knows that they really don't have budget but still making expenses for things like computers on credit.

2. How could the communication between the international managers and hotel employees have been enhanced?

While taking over RDH, the HI team could have done a detail study of not only the management of the hotel but also the Chinese culture and their way of viewing things. They could have done some workshop with the employees of RDH and try to know them better. They could have trained them. They could have utilized their knowledge and experience. They could have given a second thought on firing all the unfitted staff members but rather work with them together. Changing things are not easy . So they could have taken some extra time to study the overall personality of the staff members.There were a lot of older employees working in RDH. Hence HI team could have treated them



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