Hospitalitynet.org, adhering to local norms to generate high investment return “…may be something as relatively simple as issues of scalability or interna-tional languages, or something as complex as accounting for different regula-tions and working practices in different countries” (McIndoe, 2013).•Finally although Carlson remains a privately held entity, they can still generate enough revenue to move forward with some of their riskier ambitions, thus far. For 75 years they have been able to expand their brands without succumbing to industry pressures to go public to generate capital. This is one of the company’s signature accomplishments and if history is any indication they will continue to hold the firm as a privately held corporation. In fact, many of the initiatives that have been mentioned above represent the company positioning itself to ensure that they remain viable in its current iteration. Examples include its increase in marketing expenditures and its drive to become an emerging mar-ket leader.Study
Questions
1. What in your view does Carlson contribute, or not contribute, to the industry that assists in keeping hospitality-related companies an employment leader in the U.S.?
2. When studying Carlson’s Ambition 2015 initiative, name two specific areas where you would focus attention for property development.
3. How can new technologies assist Carlson Wagonlit Travel with securing the business of potential customers who are more used to traditional methods of making business travel arrangements? What would you consider to be the technology that will be most used in the coming years and how should Carlson ensure that they are prepared for more widespread adoption of this technology?
4. Why do you think hospitality rewards programs are so important? What are some of the challenges that a hospitality company faces when creating and marketing a rewards program to the consumer? How would you advise Carl-son to market their program in order to reach their near term goals?
5. You are a hotel franchisee looking to open a property in a major city. Based on factors identified within the case study (brand standards, possible future renovation requirements, marketing concerns, etc.), would you have any reservations about choosing Carlson as your franchise company? What would your expectations be from the parent company to help your business grow? Name some specific things Carlson could do that would help entice travelers to choose your property over your leading competitors.
6. When looking at the hotel industry and the current economic landscape, in which area would you suggest Carlson tailor its focus so that it can improve its overall revenue stream? Improved guest satisfaction? Better marketing initiatives for its franchisees? Price parity within the hotel market? Would a combination of such initiatives work best? What should Carlson expect when implementing such strategies and which, if any, would you caution against?
8 Strategic Management for Hospitality & Travel: Today and Tomorrow
7. Apply each of the strategic tools discussed above to Carlson: Porter’s Model, Ansoff ’s Model, and the SWOT analysis. Provide real world examples for each of the models.8. Overall how would you rate Carlson’s potential for future success? In your own words, what should Carlson be most concerned with, and provide a blueprint for how they can overcome this concern.
