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Ritz-Carlton is a brand of luxury resorts and hotels with various properties located in 24 different countries worldwide. It is among the best known hotels in the world for its quality service to the customers. This has been aided by their management strategies they adopted to satisfy customers. Horse Schulze is among the best managers that won the company the first national quality award in the year 1992. By this, management basically refers to the act and attitude of being in charge of responsibilities of controlling other people or activities. Management comprises of planning, organizing, staffing, directing and controlling an organization with the aim of accomplishing a set of common goals. Management can also be expressed as an activity that controls and monitors workers in any organization with the target of achieving some desired goals set by the firm. As time passed by, management has also evolved. This is in result of decentralization in the model of the organization where management has evolved with some alterations in their duties (Heding, Knudtzen & Bjerre, 2009). Nowadays, management mainly focuses on facilitating the activities of the workers rather than controlling them, as was the norm in earlier days. The proper management is the best tool to ensure productivity in a company.
A good and successful leader should be decisive in his entire decision making process. This goes hand in hand with self confidence even in the most difficult situations. This helps to instill confidence in the subordinates even when things are tough. A leader should also exercise humility and should occasionally take some time to socialize with his followers in order to maintain a good working relationship with them. He should be able to work well under the pressure, because showing any signs of weakness to his competitors would negatively influence the progress of the firm. A good leader will have some interest in the happenings both inside and outside, so that they could effectively analyze the competition. In any organization, there are leaders who are incorporated in the management of the firm. They have the responsibility to carry out the managerial functions effectively and efficiently. They should be in a position to implement their leadership skills while performing their duties and responsibilities. Leadership and management may appear to have the same meaning, but this is not the case. For the effective management, one requires leadership skills in order to gain confidence and trust from the people served. As the saying goes, “unity is strength,” the same applies to people working together in achieving the same goal.
In the entire process of running or managing a business, manager in charge should be capable of giving rules and regulations that will ensure that the business flourishes and gives profitable returns that will ensure that the organization or business company is able to be more competitive than the other business enterprises in the region. The aspect of management and quality leadership in any organization simply implies to the manner in which the members of the organization cooperate. Ethics stewardship should be enhanced in any organization. Competent leaders conform to business ethics and other moral values and, hence, are viewed as ethical stewards. Ethic stewardship is achieved through the leaders of an organization. It has also been noted that successful team leaders are those who are ethical stewards. This is because leaders have a great impact on the direction and general perception of the team members or followers (Michael & Rutherford, 2010).
Having been located in 24 countries, Ritz-Carlton has the knowledge and skills to deal with people of various cultures. The corporate world has been growing fast over the past few years. This has led to an increased competition among the market players. The main reason for the increased competition has been the utmost realization that the available resources are scarce and enterprises ought to do their best in ensuring that they attain a competitive advantage. This is because profit maximization is the key goal for every organization. Moreover, attainment of this optimum goal is directly dependent on the market share of any player in the market. This relationship is such that the larger the markets share the larger amount of expected profits. The growing competition in the corporate world necessitates the implementation of strategic measures to ensure that a business survives in the market. This calls for the need to keep up with the available information in the market. It also implies that consumer's satisfaction levels must be retained as high as possible.
This will lead to increment of the market share that a business is able to serve. The business must also be able to encompass the new trends in its operations. With the advancement of globalization, the businesses must be able to adapt to the upcoming social networks. This will enable such businesses to conform to the requirements of these new trends. Over the years, globalization has reshaped the strategies that enterprises were choosing to implement in the organizations. It has widened the market that enterprises' marketing departments were able to reach out in a specific span of time. Various strategies have risen up due to the existence of globalization (Hellriegel & Slocum, 2007). One of the most implemented strategies is using the social networks to extend to the market at large. International business has been scaling high, because businesses are implementing this cost effective method of marketing. Social networking ensures that an organization is able to reach out to their consumers wherever they are located.
The main objective of the company has always been satisfying their customers by proving quality services. By this, they keep increasing their competitiveness, and as a result, remain on top in terms of the market share. In addition to this, consumers are in a position to give their feedbacks in relation to the products that they receive from the organization. Social networks ensure that the consumer needs are effectively understood by the management. The largest advantage in relation to the implementation of social networks as a marketing strategy is the fact that it is cost-effective. This is because social networking is totally free. Also, the marketing department is able to reach out as many consumers as they can, since there is no limitation in the amount of people that one can reach out in the course of social networking. Due to the rising need to upgrade the strategic measures that businesses are implementing in their marketing, this has created the need to establish the effects of social networking on business returns (Kapferer, 1997).
Just like other companies, Ritz-Carlton has its strengths and weaknesses. To begin with, Ritz-Carlton has always invested in their customers’ satisfaction, and has been successful in achieving their goal. Moreover, they have faced a couple of challenges, such as terrorist bombings. This has made them loose most of their customers because of the perception that terrorists are targeting their company. Apart from this, they have also encountered huge losses of not only money, but also their entrusted employees. In result, the company has adopted models in order to deal with their weaknesses (Griffin, 2010). A business model is a strategy implemented by an organization in order to achieve a desired value. This value could range from economic value to social value, or any other form of value. The business model is important as it indicates the organization’s methods of value creation, delivery of their products and capture mechanisms. Generally, a business model aims at delivering value to the customers, persuading them to pay for the value, receiving the payments and converting these payments into the desired profits. This is based on the fact that the central objective of any organization is to maximize profits. Business models are especially important to the managers who make use of these models in the determination of any future developments.
Business models are designed on the basis of the strategy level of an enterprise. This implies that in coming up with a successful business model, a company’s manager needs to consider the other strategies of the firm so that they were compatible. The strategies that are implemented are those that have a competitive advantage in the industry. In order to achieve the optimum goal of an organization, the customers’ needs must be adequately met. This means that the business model developed for an enterprise should be able to determine the needs of the consumer, which customer groups attend to, and how the needs are to be satisfied.
The most important person in the market is the consumer. Therefore, the management must come up with a business model that strives to meet the customers’ needs. However, the manager ought to keep in mind that there are competitors in the market. This means that their products need to be appealing to the consumers so that the enterprise enjoyed a relatively large market share. In order to achieve this, the enterprise must implement the product differentiation concept. Product differentiation refers to designing of the products that an enterprise deals with so that they met consumer needs in a way that other competing products do not. Product differentiation is one of the ways in which consumers are able to make choices of products to consume (Griffin, 2010).
A competitive business model is one which differentiates its products and prices based on the available demand in the market and the level of overall competition in the industry. This implies that the products that the enterprise chooses to supply are based on the availability of demand. It is also based on the cost structure, such that the costs incurred are the least costs possible. The manager must, therefore, come up with strategies to reduce the costs as much as possible. Product differentiation aims at appealing to large market share. Once the products are differentiated, the manager also needs to study the market and its segmentation. There are different approaches to market segmentation and the managers are able to choose the approach that suits the enterprise best. This is then included in the business model. Any manager’s aim is to ensure that the needs of the consumer are met. This means that they must devise appropriate strategies to implement in order to come up with the best methods of product differentiation and market segmentation. This is because they must also take into consideration the cost structure. The costs must be minimized if profits are to be maximized.
In Ritz-Carlton, the target market is a mass market. This is enabled by the segmentation approach so as to serve many segments of the market. This leads to gaining a large share of the market. Serving a large market and, hence, numerous segments in the markets is based on the sophisticated inventory system. This ensures that all the information about each segment is readily available. There is also the national satellite system that enables the flow of information. The model also contains the strategies for efficiency in the store operations. This is achieved through implementation of good return policy. This means that the goals of the enterprise will be easily achieved. In order to be able to serve all the market segments, the model also has regional distribution centers. This will ensure that the products are reachable with ease and, hence, sales are made (Kapferer, 1997).
To conclude, it is evident that Ritz-Carlton has managed to remain on top in the previous years. This has been made possible by its competent management that keeps changing their strategies with the change of peoples’ lifestyle. However, Ritz-Carlton is an example of a firm business venture that endures the toughest challenges, and still remains on top of the market share.