A case study on West Indies Yacht Club Resort

WELCOME TO THE PRESENTATION

A CASE STUDY ON

WEST INDIES YACHT CLUB RESORT: WHEN CULTURES COLLIDE

PRESENTED BY MD. RAJIB HOSSAIN (MBA-090302) HOSSAIN AHMAD (MBA-090310)MD. SAIFUL ISLAM (MBA-090311)

SITUATIONAL OVERVIEW

Head office located in chicagoCompetitive advantage – largest boat fleetThe resort is in highly competitive virgin islandStaff comprised of expatriate management and local employees

Difficulties in cross cutural communications has caused strained performance

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

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

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

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2

3

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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

3

4

5

Exhibit 1Map of the British Virgin Islands

and location of luxury hotels and resorts

Piter Island Yacht Club50 rooms.$395-$525

Prickly PearIsland

MosquitoIsland

Drake’s Anchorage

Resort

BirasCreekResort

West IndiesYacht Club

Resort

Little DixBay Resort

Spanish Town

The Baths

Gorda PeakNational Park

NorthSound

SouthSoundSavannah

Bay

One nautical Mile

Exhibit 2Virgin Gorda and its luxury hotels

34 rooms$395-$695

One restaurant.3 tennis court

A private beach with a bar.A small marina.

Several miles of natural trails.

12 roomsA beachfront restaurantA protected anchorage

for charter boat.Sandy beach.$400-$600

98 rooms.$480-$1000A fine-dining restaurant.Small boats(Sunfish,Lasers)Waretskiing ,day excursionsDiving sites for guests.

95 rooms.$390-$595

(with meal & access to all water sports equipment)

PresidentJoe KimballChicago, IL

Chicago OfficeChief Financial Officer

and approximately 7 peoplein reservations, marketing,

and accounting

Marketing and SpecialPromotions Director

Tom FitchExpatriate – U.S.Greenwich, CT

General Manager Jim Johnson

Expatriate – U.S.Virgin Gorda, BVI/Miami, FL

Property ManagerKent MawhinneyExpatriate – U.S.

Virgin Gorda, BVI

Rooms Division Manager

Kristin SingiserExpatriate – U.S.

Location: Virgin Gorda, BVI

Watersports DirectorEnrik Harrigan

Expatriate - DominicanVirgin Gorda, BVI

Approx. 15 employees

Food & Beverage Director

Steve LucasExpatriate – U.S.

Virgin Gorda, BVI

Marina DirectorNick Smith

Expatriate – U.S.Virgin Gorda, BVI

Approx. 7 employees

Front DeskApprox. 10 employees

HousekeepingApprox. 80 employees

Engineering DepartmentApprox. 25 employees

Two restaurants andCommissary

Approx. 90 employees

Exhibit 4West Indies Yacht Club Resort Organizational Chart

Waterfront DirectorPosition vacant

Virgin Gorda, BVI

Operations levelAccounting & Finance

Virgin Gorda, BVIApprox. 7 employees

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

BVI Labor Market Laws and Regulation and its Impact on Success of WIYCR

The organization in the eye of different employees

Dave Pickering

Fake Compensation System

Not interested in tips

Difficult to convey message to top management

Hard to make relationship with locals


Kent Mawhinney

Worst problem: Getting plans to be executed

Employees not motivated by advancement

They know- local employment law guaranteed jobs

They don’t prefer added responsibility


Steve Lucas

No planning

No commitment

No enthusiasm


Kristin SingiserMismanagement

Overbooking by Chicago Office

Declaration of telling guest to stay on board

Children and parents in opposite extreme

Continuous mismanagement

Staffs

Local staffs are not motivated by money or advancement

Dowd’s Observation

Locals are motivated by personal relationship

Some employees hide from work for lack of proper guideline

Staffs are not courteous

Mumbles to answer queries of the guests

High turnover made locals reluctant to make friendship with expatriates

High Expatriate Turnover

Expatriates find it difficult to adopt to local culture

Increased stress and tension

Low Motivation of Employees

Task not completed

well

Unable to meet

expectations

Quit Job

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

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

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 trainingLack of communicationLack of motivationLocal culture

Analyzing Opportunities and Threats

Opportunities Threats

Political Strict Government regulation ensure local jobs

Strict Government regulation dissuaded developers

Economical Established Industry provides job security

Lack of proper transportation hinders growth

Social Cultural diversity promoted Cultural difference may tap vast to cope with

Competition/ Consumer

Targeting families and catering to their needs

Extensive water-sport facilities

Declining customer service may decline standard of service

Analyzing Opportunities and Threats

Opportunities Threats

Marketing Strong marketing director, successful recent campaign

Demographics are changing

Management Seeks professional help

Division between HO and resort management

Accounting Lower wages for local employees

Hourly salary-costs are variable

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

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

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

Increased Communication- Building Brust

Managers and employeesManagers should have cultural trainingMix private and business lifeFormal meeting and informal gathering

Resort and headquartersRegular meeting to discuss progress, concerns and promotions

Improving the team

Retain employees in groups

Motivation

Direction

Intensity

PersistenceImplementing job rotation

Increase job satisfaction

Effective performance measures

Motivation-Pay for performance and collective achievement

Have informal reviews-Group meeting

Emphasize on win-win relationship

Wrap Up

By improving the organizational culture WIYCR can concentrate on its core competencies and work to regain industry leadership status

Alternative Solution

Replace existing team and management with locals

Replace existing team and management with expatriates

Change the mindset- create new organizational culture

Thanks………

A case study on West Indies Yacht Club Resort

Education

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