Regency Hotel Case Study

The Regency Hotel is a beautiful five star hotel that is located in Bangkok. This hotel was established by a local group of investors and was operated by a Thai general manger at the beginning. This Regency Hotel was one of the country’s most prestigious hotels. The employee count for the hotel was around 700 and the moral of the employees was very high. They hotel offered very good employee benefits, above average salaries, plus job security. They also included a great yearend bonus that was not based on the hotels overall performance.
After some time the hotel was sold to a very large American hotel chain, after finding out the general manager decided it was time to take an early retirement because of the
The managers were still bothering Becker to the point that he had to tell them to only come to him if the “hotel was on fire”. Soon the overall performance of the hotel was deteriorating. The turnover rate was at an all-time high and the work environment became cut throat.
The Hotel fell apart for a lot of reasons, from small things like stress to bigger things like the major culture differences that were just ignored from the beginning. The culture factors were the biggest thing that should have been addressed at the beginning. I understand the want to have an American general manger in an American owned company but the company itself should have made sure that Beck was coming in very educated to the differences in the culture compared to the Americans that he was used to working with. Becker should have done more listening to what the mangers wanted to do. First off they have been there the longest and all the employees are going to trust what they say and not some new person that is not even a native in their country. Second, since they have been there the longest odds are that they will have a better idea of how the company will work.
If Becker would have come in with a more open mind he would have probably been informed that this preset business strategy might not be the best for the