Case Solution for Majestica Hotel in Shanghai?

Complete Case details are given below :

Case Name :      Majestica Hotel in Shanghai?
Authors :           Paul W. Beamish, Jane Lu
Source :             Ivey Publishing
Case ID :            905M35
Discipline :        Service Management
Case Length :    17 pages
Solution Sample availability : YES
Plagiarism : NO (100% Original work)
Description for case is given below :
Majestica Hotels Inc., a leading European operator of luxury hotels, was trying to reach an agreement with Commercial Properties of Shanghai regarding the management contract for a new hotel in Shanghai. A series of issues require resolution for the deal to proceed, including length of contract term, name, and staffing. Majestica was reluctant to make further concessions for fear that doing so might jeopardize its service culture, arguably the key success factor in this industry. At issue was whether Majestica should adopt a contingency approach and relax its operating philosophy or stick to its principles, even if it meant not entering a lucrative market.
 
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