Ritz Carlton Strategic Planing

The Ritz Carlton is synonymous with luxury. The strategic planning throughout all aspects of it experience has contributed to their reputation as a world-class luxury hotel. Ritz Carlton’s ability to remain so successful has not been by accident or luck but by implementing a business plan that “has reevaluated its service design processes in order to deliver more experientially based employee and customer engagement. ”(Nixon & Rieple, 2010) The management team of Ritz-Carlton built a business plan that puts its focus on who their customers are and what their definition of luxury is.

The Ritz-Carlton no longer sees its self as a hotel company; it now considers itself an experience and memory creator. ”(Nixon & Rieple, 2010) This shift has proven successful for Ritz-Carlton. With this new definition of what they want to provide, the management team has established its objectives and goals. By identifying whom their customer’s are they can implement standard operating procedures to allow self-analysis of their individual locations.

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The self-analysis that is preformed at every level of the Ritz-Carlton’s business plan has provided the critical feedback that a management team needs to customize each of their locations. The “scenography uses sense-of-place design and subtle aesthetic cues to arrive at its theme. ”(Nixon & Rieple) The use of this, is pivotal to every Ritz-Carlton location. Using the cultural and environmental sources of each location provides the ambience and theme for each property. Individual locations now have the capabilities to provide a unique experience to their customer.

The framework set up by the management team is in place at every Ritz-Carlton property. The use of a lineup, scenography, mystique and discrepancy reports all provide the feedback to anticipate the customers needs. The line up technique is having a staff meeting before work with the employees to discuss successes and failures with customer interactions. Mystique is a database that logs observation and preferences of guest. (Nixon & Rieple, 2010) These processes have been implemented to anticipate the customer’s needs.

The ability to standardize the each locations management plan to account for regional differences is the reason for the Ritz-Carlton’s success. The success of adapting to each location’s unique attribute has produced a better experience for the Ritz-Carlton’s guest. Their business plan has been designed to identify their target customer and what they value as luxury. The management team has identified the critical process that every location has to implement. This standardization provides the structure for the property manager to focus on the experiences of the customer.

By using these different elements to gather feedback for problems and solutions, they are developing the key process to anticipate a customer’s needs. The “collection, analysis and distribution of information, including output and quality reports on a company’s process” (Brown, Curry, Jeffery & Edmund, 2003 Pg 100) is exactly what the Ritz-Carlton management team has implemented. Their ability to anticipate their customer’s wants and needs has set them apart from their competition regardless of location and workforce.

Reference.

Nixon, N. W., & Rieple, A. (2010). Luxury Redesigned: How The Ritz-Carlton Uses Experiential Service Design to Position Abundance in Times of Scarcity. Design Management Journal, 5(1), 40-49. doi:10.1111/j.1948-7177.2010.00015.x

Brown, R. L., & Gutterman, A. S. (2003). A short course in international business plans, charting a strategy for success in global commerce. World Trade Pr. Retrieved from http://books.google.com/books?id=qIK4Nif4gkEC&printsec=frontcover&dq=Short Course in International Business Plans&hl=en&sa=X&ei=F4nuTvb4AcKrsQLkyJTlCQ&ved=0CEkQ6AEwAA

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