Four Seasons Minghu: Organizational Resilience and the Path to Recovery
(7 pages of text)
Before 2013, Shandong Four Seasons Minghu Hotel Co. Ltd. was a high-end restaurant and food service company. In December 2012, the Chinese government implemented the Eight-Point Regulation that prohibited government officials from indulging in luxury banquets and high-end meals. The new government policy had a negative effect on many companies across the high-end food service industry, whose customer base consisted mainly of government officials. In response to the new government policy, Shandong Four Seasons Minghu Hotel Co. Ltd. made some strategic changes that eventually led the company to recover and survive. However, fierce competition created many challenges. The company had to determine whether to explore other markets and how to better satisfy the needs of consumers.
This case is suitable for strategic management and general management courses at the graduate, postgraduate, and executive levels. Through discussion of this case, students can understand the practices and theories of companies in the Chinese high-end food service industry. Students can also become familiar with the concept of organizational resilience as well as methods of recovering from a sudden change in policy. Organizational resilience is vital for companies confronted with sudden disruptions. After completion of this case, students will be able to
- understand the definition of organizational resilience as well as the triggers and contexts of resilience;
- analyze the measures that companies experiencing adversity take to survive and even thrive; and
- learn the effective response modes that lead to a successful recovery.
Accommodation & Food Services
China, Medium, 2017
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