Case Study 14.1 Hiltons Transformation

Travelers are looking for more information than ever before

Today's travelers have more research and booking options than ever. To search for a hotel, they will typically visit a variety of sites to compare rates, photos, reviews, availability, and other variables. At the same time, they want the ability to efficiently search and shop for hotels. They expect this information at their fingertips to help guide decision making and let them immediately book the hotel once their mind is made up, no matter which device they are using.

While travelers are inundated with information and choices, hospitality companies, such as Hilton, need to stay relevant and represented in this expansive market.

"Consumer expectations are only going to increase," says Geraldine Calpin, senior vice president and global head of digital, Hilton Worldwide. "Specifically with the explosion of the different devices, we've seen that our guests are looking for relevant content quickly when they visit us on our website, mobile site, or via our app."

Relevant information establishes seamless path to booking

With the expanding number of websites that travelers use to make their hotel decisions comes the need to be present at just the right time—when travelers are ready to book. To help meet this challenge, Hilton turned to Google Hotel Ads to help drive high-quality leads and fuel bookings.

 

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Case Study 14.1 – Hilton’s TransformaƟonQ1. Contrast Hilton’s earlier corporate culture with the emerging set of cultural values.a.Earlier Corporate Culture

-Inward Focused-Employees treated as family-Autonomy-Job security-EnƟtlement/Comfort-Few Cost Controls-“Outside” or “Hard” municipal service focus – road building, uƟlity construcƟon and maintenance, fire and policeprotecƟon, recreaƟonal faciliƟes, and land use control-Expansion-“Inside Workers” (taxaƟon, community service, ect) given less priority-Inside Hires

b.Emerging Corporate Culture

-Outward Focused-Customer/CiƟzen friendly for ciƟzens/business owners-“SoŌ” municipal service focus – libraries, social acƟviƟes, community services-Save money-Employees treated as employees-Hire the best people for the job regardless of background or whether they are in the company or not

Q2. Considering the difficulty in changing organizaƟonal culture, why does Hilton’s management seem to be successfulat this transformaƟon?

By replacing the top management with people whose backgrounds are congruent with the new corporate culture they arepracƟcing “drasƟc unlearning” a form of cultural change known as coercion (OB page 362). By cuƫng out the driving forcebehind the old values the management team has new room to expand and change the old culture to fit their desiredoutcome. In essence the managers are pracƟcing “deculturaƟon” (OB pg 347) oŌen seen in mergers to change the cultureof a company that has been acquired. The company’s new view is focused on creaƟng an “AdapƟve culture” (OB pg 340)where their focus is on the people of the city. This “ciƟzens needs first” approach is one that will help the companyconƟnue to build and grow because it is the ciƟzens opinions and needs that will direct their change.

Other Possible Topics To Cover:

AƩracƟng, SelecƟng and Socializing employees (ASA Theory pg 343)Social IdenƟty Theory (pg 35)Why employees resist change (page 356) – direct costs, fear of the unknown, and breaking rouƟnes.

Q3. IdenƟfy two other strategies that the city might consider to reinforce the new set of corporate values.

Two other strategies that the city might consider to reinforce the new set of corporate values are:1.Team Building-Team Building (page 193)-Team Cohesion (page 196) – see PPT slides2.Increased Employee Involvement/ FlaƩened OrganizaƟonal Structure-Employee Involvement (page 164)-Employee Engagement (page 106)-Power (page 236)-Tall and Flat OrganizaƟonal Structure (page 311)

Chapter 14 Case 1

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