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West Indies Yatch Club Cultural analysis
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Page 1
WEST INDIES YACHT CLUB RESORT: WHEN CULTURES COLLIDE
Abhishek – 14PGPIM02
Divyansh – 14PGPIM12
Dhrunav – 14PGPIM14
Mohit – 14PGPIM18
Prerna – 14PGPIM25
Vaibhav – 14PGPIM31
Page 2
BRITISH VIRGIN ISLAND’S TOURISM MARKET
36 islands- 16 inhabited
Area 59 sq mile
Planned and restricted growth ensured by
government
Bareboat chartering introduced in 1970
Main attractions - rich natural beauty and intrigueing
history
Page 3
UPSCALE HOTELS IN BRITISH VIRGIN ISLANDS
Tortola
Jost Van Dyke
St. John(USVI)
Norman Island
Peter Island
VirginGorda
Salt Island
Cooper Island
Ginger Island
Beef Island
Guana Island
Little JostVan Dyke Island
Great CamanoeIsland
Great Thatch
Little Camanoe
Necker Island
MosquitoIsland
The Dogs
Fallen Jerusalem
1
2
3
4
5
Key:Peter Island Yacht Club
Little Dix Bay Resort
Drakes Anchorage Resort
Biras Creek Resort
West Indies Yacht Club Resort
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2
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Exhibit 1Map of the British Virgin Islands
and location of luxury hotels and resorts
Piter Island Yacht Club50 rooms.$395-$525
Page 4
SITUATIONAL OVERVIEW
Head office located in chicago
Competitive advantage – largest boat fleet
The resort is in highly competitive virgin island
Staff comprised of expatriate management and local employees
Difficulties in cross cutural communications has caused strained performance
Page 5
Problems
High expatriate turnover
Rising tension between expatriate and local staff
making the organization experience cultural
myopia
Rising number of guest complaints and Low
employee motivation
Page 6
BVI Labor Market Laws and Regulation and its Impact on Success of WIYCR
First, expatriate work permits are granted only on the basis of the total number of employees working at a resort and the availability of locals who possessed these skills requisite for the position
Second, organizations are not permitted to lay off staff during slow seasons
Third, policies restricting the conditions under which an employee could be fired severely limited an organization’s ability to retain only the best workers and
Finally, organizations were under extreme pressure to promote BVI locals into management positions whenever possible
Page 7
To combat regulations on foreign employees, organizations often paid foreign staff through their offshore corporate headquators and restricted the amount of time they spent at the site
Organization offered attractive vacation components to their employee contracts enabling them to pay lower wages and reduce excess labor
Staff retention was offset by lower wages, avoidance of costs associated with training a new employee and extra staff during peak season
Sending promising young staff to service training programs in the Bahamas and Bermuda
Overcoming the Challenges of BVI Labor Market Laws and Regulation
Page 8
High Expatriate Turnover
Expatriates find it difficult to adopt to local culture
Increased stress and tension
Low Motivation of Employees
Low Motivation of Employees
Task not completed
well
Task not completed
well
Unable to meet
expectations
Unable to meet
expectations
Quit JobQuit Job
Page 9
Rising tension between Expatriate and Local Staff
Growing gap between Local and Expatriate Staff
Causes:
Lacking direct management
Management style does not suit local
Communication problem
Page 10
Low employee motivation
Senior staff are as lazy as the junior staff
Tips are not attractive
Only serve close customers sincerely
Cultural difference:
Foreign staff:Achievement
Local staff:Nurturing
Page 11
Rising Number of Guest Complaints
There is a decline in the service provided to guests by the West Indies Yacht Club Resort
Causes:
Lack of training
Lack of communication
Lack of motivation
Local culture
Page 12
Solutions
Short Term
Organize a holiday party prior to the peak week
Partner with Commisionary, the local bar
Encourage staff to become friends and to respect each other as people and to look outside titles
Create a slogan or pamphlet to hand out to guests upon arrival, in which local culture is explained as well as embraced
Page 13
Solutions
Long Term
Establish a WIYCR management training program
encourage employees and managers to have an open dialogue
In the off season, establish a social interaction committee
Implement a self service food and beverage sector
Develop evaluations based on a cross cultural training program
Page 14
Building Strong Leadership
It should be controlled and employees should be motivated by a authority figure present in the resort
Managers should delegate authority to subordinates
Page 15
Increased Communication- Building Brust
Managers and employees
Managers should have cultural training
Mix private and business life
Formal meeting and informal gathering
Resort and headquarters
Regular meeting to discuss progress, concerns and promotions
Page 16
Effective performance measures
Motivation-Pay for performance and collective achievement
Have informal reviews-Group meeting
Emphasize on win-win relationship
Page 17
Wrap Up
By improving the organizational culture WIYCR can concentrate on its core competencies and work to regain industry leadership status
Page 18
Alternative Solution
Replace existing team and management with locals
Replace existing team and management with expatriates
Change the mindset- create new organizational culture
Page 19
Thanks………