A CASE STUDY ONWEST INDIES YACHT CLUB RESORT: WHEN CULTURES COLLIDEPRESENTED BY MD. RAJIB HOSSAIN (MBA-090302) HOSSAIN AHMAD (MBA-090310) MD. SAIFUL ISLAM (MBA-090311)

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SITUATIONAL OVERVIEWHead office located in chicagoCompetitive advantage largest boat fleetThe resort is in highly competitive virgin islandStaff comprised of expatriate management and local employeesDifficulties in cross cutural communications has caused strained performance

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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

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BRITISH VIRGIN ISLANDS TOURISM MARKET36 islands- 16 inhabitedArea 59 sq milePlanned and restricted growth ensured by governmentBareboat chartering introduced in 1970Main attractions - rich natural beauty and intrigueing history

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UPSCALE HOTELS IN BRITISH VIRGIN ISLANDSPiter Island Yacht Club50 rooms.$395-$525

Tortola

Jost Van Dyke

St. John(USVI)

Norman Island

Peter Island

VirginGorda

Sir Francis Drake Channel

Salt Island

Cooper Island

Ginger Island

Beef Island

Guana Island

Little Jost Van Dyke Island

Great Camanoe Island

Great Thatch

Little Camanoe

Necker Island

MosquitoIsland

The Dogs

Fallen Jerusalem

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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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Exhibit 1Map of the British Virgin Islands and location of luxury hotels and resorts

North Sound Express Ferry route

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34 rooms$395-$695One restaurant.3 tennis courtA 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)

Prickly PearIsland

MosquitoIsland

Drakes AnchorageResort

BirasCreekResort

West IndiesYacht ClubResort

Little DixBay Resort

Spanish Town

The Baths

Gorda PeakNational Park

NorthSound

SouthSound

SavannahBay

One nautical Mile

Exhibit 2Virgin Gorda and its luxury hotels

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BVI Labor Market Laws and Regulation and its Impact on Success of WIYCRFirst, 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 positionSecond, organizations are not permitted to lay off staff during slow seasons.

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BVI Labor Market Laws and Regulation and its Impact on Success of WIYCRThird, policies restricting the conditions under which an employee could be fired severely limited an organizations ability to retain only the best workers and Finally, organizations were under extreme pressure to promote BVI locals into management positions whenever possible

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The organization in the eye of different employeesDave PickeringFake Compensation SystemNot interested in tipsDifficult to convey message to top managementHard to make relationship with locals

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The organization in the eye of different employeesKent MawhinneyWorst problem: Getting plans to be executedEmployees not motivated by advancementThey know- local employment law guaranteed jobsThey dont prefer added responsibility

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The organization in the eye of different employeesSteve LucasNo planningNo commitmentNo enthusiasm

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The organization in the eye of different employeesKristin SingiserMismanagementOverbooking by Chicago OfficeDeclaration of telling guest to stay on boardChildren and parents in opposite extremeContinuous mismanagement

StaffsLocal staffs are not motivated by money or advancement

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Dowds ObservationLocals are motivated by personal relationshipSome employees hide from work for lack of proper guideline Staffs are not courteousMumbles to answer queries of the guestsHigh turnover made locals reluctant to make friendship with expatriates

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High Expatriate Turnover

Expatriates find it difficult to adopt to local cultureIncreased stress and tensionLow Motivation of EmployeesTask not completed wellUnable to meet expectationsQuit Job

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Rising tension between Expatriate and Local StaffGrowing gap between Local and Expatriate Staff

Causes:Lacking direct managementManagement style does not suit local Communication problem

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Low employee motivationSenior staff are as lazy as the junior staffTips are not attractiveOnly serve close customers sincerely

Cultural difference:Foreign staff: AchievementLocal staff: Nurturing

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Rising Number of Guest ComplaintsThere 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

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Analyzing Opportunities and Threats

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Analyzing Opportunities and Threats

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SolutionsShort TermOrganize a holiday party prior to the peak week Partner with Commisionary, the local barEncourage 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

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Solutions Long TermEstablish 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

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Building Strong LeadershipIt should be controlled and employees should be motivated by a authority figure present in the resort

Managers should delegate authority to subordinates

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Increased Communication- Building BrustManagers and employeesManagers should have cultural trainingMix private and business lifeFormal meeting and informal gathering

Resort and headquartersRegular meeting to discuss progress, concerns and promotions

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Improving the teamRetain employees in groupsMotivation DirectionIntensity PersistenceImplementing job rotationIncrease job satisfaction

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Effective performance measuresMotivation-Pay for performance and collective achievementHave informal reviews-Group meetingEmphasize on win-win relationship

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

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Alternative SolutionReplace existing team and management with locals Replace existing team and management with expatriatesChange the mindset- create new organizational culture

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Thanks

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