Case Name :      Regal Carnation Hotel, Guam

Authors :           Jim Kayalar

Source :             Ivey Publishing

Case ID :            908M70

Discipline :        Operations Management

Case Length :    13 pages

Solution Sample availability : YES

Plagiarism : NO (100% Original work)

In the spring of 2007, a vacationer is upset by the poor hotel experience he has had on the island of Guam. At the onset, the reasons for the bad experience seem to point to seemingly minor issues: bad management, poor service and old rooms. The value of the case lies in the analysis of the symptoms and arriving at the root causes of the problem, particularly the profit maximization strategy of the hotel’s owners in a mature industry. The case uses a different method of analysis, starting with micro indicators and moving to macro indicators: the analysis of symptoms, arriving at root causes, determining company strategy and finally assessing the company’s position using the Product Life Cycle Model.