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WELCOME TO THE PRESENTATION

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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 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

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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 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

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UPSCALE HOTELS IN BRITISH VIRGIN ISLANDS

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

Necker Island

Mosquito
Island
3
Great Camanoe
Island
5
Guana Island
The Dogs
4
Little Camanoe
rou te
Jost Van Dyke Little Jost
Van Dyke Island n d Ex
press
Ferry
2 Virgin
h Sou
Nort
Gorda
e l
Tortola Beef Islandn n
a
C h
PiterkIsland
e Yacht Club Fallen Jerusalem
r a
Great Thatch
D50 rooms.
s
n c i $395-$525Cooper Island
a
F r Ginger Island
r
S i
1 Salt Island Key:
1 Peter Island Yacht Club
St. John Peter Island
(USVI) 2 Little Dix Bay Resort
3 Drakes Anchorage Resort
4 Biras Creek Resort
Norman Island 5 West Indies Yacht Club Resort

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95 rooms.
Exhibit 2
$390-$595
Virgin Gorda and its luxury hotels
(with meal &
12 rooms access to all water
A beachfront restaurant
sports equipment)
A protected anchorage
Drake’s for charter boat.
Anchorage Sandy beach.
Mosquito Resort $400-$600
Island Prickly Pear West Indies
Island Yacht Club
North Resort
Sound
98 rooms .
$480-$1000
A fine-dining restaurant. Gorda Peak
Small boats(Sunfish,Lasers) National Park
Waretskiing ,day excursions Biras
Diving sites for guests. Creek
South Resort
Savannah Sound
Little Dix Bay 34 rooms
Bay Resort $395-$695
One restaurant.
3 tennis court
One nautical Mile A private beach with a bar.
A small marina.
Spanish Town Several miles of natural
trails.

The Baths
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Exhibit 4
West Indies Yacht Club Resort Organizational Chart

Chicago Office Marketing and Special


Chief Financial Officer President Promotions Director
and approximately 7 people Joe Kimball Tom Fitch
in reservations, marketing, Chicago, IL Expatriate – U.S.
and accounting Greenwich, CT
General Manager
Jim Johnson
Expatriate – U.S.
Virgin Gorda, BVI/Miami, FL

Property Manager Operations level


Kent Mawhinney Accounting & Finance
Expatriate – U.S. Virgin Gorda, BVI
Virgin Gorda, BVI Approx. 7 employees

Rooms Division Food & Beverage Marina Director


Waterfront Director Engineering
Manager Director Nick Smith
Position vacant Department
Kristin Singiser Steve Lucas Expatriate – U.S.
Virgin Gorda, BVI Approx. 25
Expatriate – U.S. Expatriate – U.S. Virgin Gorda, BVI
employees
Location: Virgin Gorda, BVI Virgin Gorda, BVI Approx. 7 employees

Watersports Director
Two restaurants and Enrik Harrigan
Front Desk Housekeeping
Commissary Expatriate - Dominican
Approx. 10 employees Approx. 80 employees
Approx. 90 employees Virgin Gorda, BVI
Approx. 15 employees
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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.

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

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

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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

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The organization in the eye of different employees

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

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The organization in the eye of different employees

Steve Lucas
No planning
No commitment
No enthusiasm

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The organization in the eye of different employees
Kristin Singiser
Mismanagement
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
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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

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High Expatriate Turnover

Low Task not Unable to


Motivation of completed meet
Employees well expectations

Quit Job

Expatriates find it difficult to adopt to local culture


Increased stress and tension

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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

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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: Local staff:


Achievement Nurturing

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Rising Number of Guest Complaints

There is a decline in the service provided to guests by


the West Indies Yacht Club Resort

Causes:
oLack of training
oLack of communication
oLack of motivation
oLocal culture

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Analyzing Opportunities and Threats

Opportunities Threats

Political Strict Government regulation Strict Government


ensure local jobs regulation dissuaded
developers

Economical Established Industry Lack of proper


provides job security transportation hinders
growth

Social Cultural diversity promoted Cultural difference may


tap vast to cope with

Competition/ Targeting families and Declining customer


Consumer catering to their needs service may decline
standard of service
Extensive water-sport
facilities
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Analyzing Opportunities and Threats

Opportunities Threats

Marketing Strong marketing Demographics are


director, successful changing
recent campaign

Management Seeks professional Division between HO and


help resort management

Accounting Lower wages for Hourly salary-costs are


local employees variable

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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

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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

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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

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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

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Improving the team

Retain employees in groups


Motivation
o Direction
o Intensity
o Persistence
Implementing job rotation
Increase job satisfaction

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Effective performance measures

Motivation-Pay for performance and collective


achievement
Have informal reviews-Group meeting
Emphasize on win-win relationship

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Wrap Up

By improving the organizational culture WIYCR can


concentrate on its core competencies and work to
regain industry leadership status

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Alternative Solution

Replace existing team and management with locals


Replace existing team and management with
expatriates
Change the mindset- create new organizational
culture

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Thanks………
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