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Case study HID managers

 

 

 

Dave Collins, president of H.l.D., sat down at the conference table with his management team members, Karen Setz, Tony Briggs, Dave King, and Art Johnson. H.I.D. owns ten Holiday Inns in Georgia, eight hotels of different types in Canada, and one property in the Caribbean. It also owns two Quality Inns in Georgia. Dave Collins and his managers got together to define their mission, goals, and objectives and to set strategic plans. As they began their strategic planning session, the consultant they had hired suggested that each describe what he or she wanted for the company’s domestic operations in the next ten years—how many hotels it should own, where to locate them, and who the target market was. Another question he asked them to consider was what the driving force of the company should be—that is, the single characteristic that would separate H.l.D. from other companies.
The team members wrote their answers on flip-charts, and the consultant summarized the results. Dave Collins’ goal included 50 hotels in ten years, with the number increasing to 26 or 27 in five years. All the other members saw no more than 20 hotels in ten years and a maximum of 15 or 16 within five years. Clearly there was disagreement among the top managers about long-term goals and desirable growth rate.
With the consultant’s direction, the team members began to critique their growth objectives. Dave King, director of operations and development, observed, “We just can’t build that many hotels in that time period, certainly not given our current staffing, or any reasonable staffing we could afford. I don’t see how we could achieve that goal.” Art Johnson, the accountant, agreed. Karen Setz then asked, “Could we build them all in Georgia? You know we’ve centered on the medium-priced hotel in smaller towns. Do we need to move to bigger towns now, such as Jacksonville, or add another to the one we have in Atlanta?” Dave Collins responded, “We have an opportunity out in California, we may have one in New Jersey, and we are looking at the possibility of going to Jacksonville.”
The consultant attempted to refocus the discussion:
“Well, how does this all fit with your mission? Where are you willing to locate geographically? Most of your operation is in Georgia. Can you adequately support a national building effort?”
Tony Briggs responded, “Well, you know we have always looked at the smaller-town hotels as being our niche, although we deviated* from that for the hotel in Atlanta. But we generally stay in smaller towns where we don’t have much competition. Now we are talking about an expensive hotel in California.”
Dave Collins suggested, “Maybe it’s time we changed our target market, changed our pricing strategy, and went for larger hotels in urban areas across the whole country. Maybe we need to change a lot of factors about our company.”

II. Discuss the following questions:

1. What is H.I.D.’s mission at the present time? How may this mission change?
2. What do you think H.I.D.’s mission, strategic goals, and strategic plans are likely to be at the end of this planning session? Why?
3. What goal-setting behavior is being used here to reach agreement among H.I.D.’s managers? Do managers typically disagree about the direction of the organization?

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