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8/9/2019 Brunt Hotels
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Brunt Hotels, PLC, owns more than 60 hotels throughout the United Kingdom. They
recently acquired a small hotel chain headquartered in rance. Brunt!s chie"
e#ecuti$e decided that hal" o" the new hotels in rance would %e retained and
re%randed as &art o" the Brunt Hotels 'rou&( the other hal" will %e sold. This will
su&&ort Brunt!s strategic o%)ecti$e o" growing the organi*ation slowly to ma+e sure
that new $entures are well su&&orted and o&ened on time and on %udget.Brunt!s hotels are considered %udget accommodations( they are "unctional, clean
and reasona%ly &riced.
ost guests stay "or one to three nights and are a com%ination o" %usiness and
leisure tra$elers. The hotels are ty&ically situated in downtown locations that are
easily accessi%le %y mass transit. Tourists are attracted to these hotels in &o&ular
$isitor destinations where the many local attractions mean that they will not %e
s&ending much time in their hotel rooms.
The organi*ation has decided to use an ethnocentric a&&roach and send some o"
their e#isting UK-%ased managers to rance to lead the changeo$er o" the new
hotels and then manage them a"ter they re-o&en. " this new o$erseas $enture issuccess"ul, Brunt may decide to acquire other small hotel grou&s in other /uro&ean
countries. The organi*ation would li+e to own 10 hotels in the ne#t 2$e years. Their
0-year &lan is to own 300 hotels across /uro&e. This is an am%itious target, so it is
im&ortant that the organi*ation 2nds an e4ecti$e "ormula to o&erate success"ully in
other countries.
The organi*ation has ne$er owned hotels outside the UK %e"ore, and has hired a
team o" inde&endent management consultants to ad$ise them on how to &roceed.
They &ro$ided the consultants the "ollowing in"ormation during their initial meeting5
ma)ority o" their e#isting managers said they would li+e a chance to wor+ a%road.
7one o" their e#isting managers s&ea+ rench 8uently.
They will allow "our wee+s to re%rand the hotels. The new hotels must %e ready to
o&en a"ter that time.
They e#&ect to recruit a large num%er o" sta4 "or the new rench hotels, %ecause
more than 90 &ercent o" the em&loyees "rom the acquired organi*ation le"t.
They will require their managers to %e 8e#i%le and mo$e %etween countries i" any
&ro%lems arise.
Brunt management decided that %ecause this is their 2rst $enture into a country
outside the UK, they want to use PC7s to set u& the new hotels and that onlyinternal candidates should %e considered. They thin+ that this is im&ortant so they
can incor&orate the organi*ation!s $alues. Howe$er, they %elie$e that once the
hotels are u& and running, HC7s could %e hired. The management $acancies must
%e 2lled as soon as &ossi%le.
n their com&any literature, the organi*ation states that their core $alues are to5
Pro$ide e#cellent le$els o" customer ser$ice to all guests.
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Pro$ide a clean and com"orta%le en$ironment "or guests and sta4.
:ecruit and retain e#cellent sta4.
;u&&ort and de$elo& sta4 so they can reach their "ull &otential.
Continuously stri$e to im&ro$e all as&ects o" the %usiness.
/nsure that all hotel %uildings, 2#tures and 2ttings are well-maintained in a
&roacti$e manner.
t is im&ortant that the management consultants "or this &ro)ect ta+e these core
$alues into account when ma+ing their recommendations.
The management team li+ed your recruitment ad$ertisement, %ut reali*ed that they
did not consider the salary "or these new &ositions< ;ince the organi*ation has
ne$er hired managers to wor+ outside the UK %e"ore, they do not +now how to start
determining the com&ensation. They &ro$ide you with the "ollowing in"ormation that
they "ound on the nternet5
/#isting salary "or managers is =30,000 >?1,000 /uros@ &lus %onuses.
;ur$eys show that the a$erage salary "or hotel managers in rance is 60,000 /uros
with no o&&ortunity to earn %onuses.
The directors want to ha$e a consistent a&&roach as to how they com&ensate
e#&atriates %ecause they e#&ect their o$erseas %usiness to e#&and in the "uture.
They also want e#isting em&loyees to %e enticed into wor+ing a%road and want to
ha$e a good range o" incenti$es.
The management e$entually a&&ro$es the ad$ertisement and the com&ensation
&ac+age and distri%utes %oth internally. nterested candidates are as+ed to write a
letter to the C/A to e#&lain why they thin+ they are the %est &erson "or the )o%.Thirty managers a&&ly "or one o" the new &ositions >there are 0 &ositions
a$aila%le@, which means there will %e 0 unsuccess"ul candidates still wor+ing "or
the organi*ation.
The management team ac+nowledges that the a&&lication letters were not hel&"ul
with ma+ing decisions and that they need a more ro%ust selection &rocess. There
must %e a strong sense o" "airness in the selection &rocess %ecause they do not
want to de-moti$ate any o" these e#isting em&loyees. They want to select the right
candidates %ecause it is essential that the new hotels are success"ul and u& and
running quic+ly and e"2ciently. The senior managers +now all o" the candidates
quite well >&ersonally and &ro"essionally@. They would li+e you, as inde&endentconsultants, to design an a&&ro&riate selection methodology.
The management team ad$ises you that they do not want to ta+e into account the
marital or "amily situation o" the e#&atriate candidates( they are concerned that this
may "all a"oul o" UK equal o&&ortunities legislation.
The management hires si# candidates to wor+ o$erseas %ecause they did not "eel
that the other candidates were quali2ed. They "eel con2dent that these si# can
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success"ully o&en the new hotels. The success o" these managers is $ital to the
success o" setting u& the new %usiness, so management wants to ensure they
&ro$ide e4ecti$e su&&ort "or them in terms o" training and de$elo&ment. They
%elie$e that the %est o&tion is to di$ide training into two &arts5 &re-de&arture
training and on-the-)o% training in the new country. ;ince the organi*ation has ne$er
sent em&loyees a%road %e"ore, they are not sure a%out what should %e included inthese training &rograms. The only mandatory area that must %e included is an
introductory language section >including %asic %usiness rench@ so that the
managers ha$e a %asic gras& o" the rench language %y the time they o&en the new
hotels. Howe$er, they ho&e that the managers will en)oy their introductory language
course and will continue to attend more ad$anced language classes when the new
hotels are o&en. The management team decides to select only one o" the three
&ro&osed training &rograms, con2dent that it will %e use"ul and in"ormati$e "or the
new e#&atriates. Howe$er, they would also li+e to &ro$ide e#ternal su&&ort "or the
new e#&atriates to ma+e their transition to a new country as smooth as &ossi%le.
They are aware o" some o" the ser$ices that can %e o4ered to su&&ort em&loyees on
%oth a &ersonal and &ro"essional le$el, %ut do not ha$e a com&rehensi$e o$er$iew.