Ivey Publishing
Majestica Hotel in Shanghai?
Product Number:
9B05M035
Publication Date:
04/11/2005
Revised Date:
09/21/2011
Length:
14 pages (10 pages of text)
Product Type:
Case (Gen Exp)
Source:
Ivey
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, staffing and many other control issues. 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.
Issues:
Disciplines:
General Management/Strategy,  International
Industries:
Accommodation & Food Services
Setting:
China, Large, 2005
Intended Audience:
Undergraduate/MBA
Price:
$5.30 CAD / $5.00 USD Printed Copy
$4.50 CAD / $4.25 USD Permissions
$4.50 CAD / $4.25 USD Digital Download
Associated Materials
Translations: Simplified Chinese (13 pages)
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