Brahmin's son

Final International Hospitality Project

Abdallah Albalushi

California State University-Long Beach

Instructor’s Name

Date

Final International Hospitality Project

History

InterContinental Hotels is a famous British multinational hospitality company with 12 branches of hotels and resorts around the world. Under InterContinental name, there are more than 5,000 hotels and about 744,000 rooms in over 100 different countries. The hotels have a very good reputation for good hospitality and services worldwide (IHG, 2019). With the establishment of Bass Brewery in Burton-upon-Trent in 1777, the origin of InterContinental Hotel and Resorts was at that time as well. In 1989 the British government detained the number of inns that were directly owned by Brewers, pushing Bass to take advantage and invest more in the expansion of the hospitality business (IHG, 2019). As a result, the shareholders sold the Holiday Inn International.

InterContinental Hotel was founded in 1946 by Juan Trippe as an associate of the Pan American World Airways with the first and original Hotel opened in Belem, Brazil (IHG, 2019). In 1981, Grand Metropolitant purchase the Inter-Continental Hotels Corporation. During 1988, Grand Metropolitant focused its main operations in foodservice especially the fast-food business by purchasing Burger King and selling Inter-Continental Hotels Corporation to Japanese-based Saison Group where it got purchased by Bass later in 1998 (IHG, 2019). The business was focusing mainly on hotels and it got renamed as Six Continents. Six Continents PLC had a cooperation business between them and the soft drink business. In 2002, they announced their separation from the soft drink business and become an individual company. Finally, in the year of 2003, the company got its InterContinental Hotels Group. InterContinental Hotels Group become the leading hospitality business in the world where they offer an excellent hospitality service to everyone worldwide. The company’s distinct portfolio of distinguished brands is well known and appreciated by millions of consumers around the world (IHG, 2019).

The Past and Current Problems at InterContinental Hotels

InterContinental Hotels is well-known for its existence worldwide and excellent hospitality services. This helped the company to expand everywhere in more than 100 countries. With great businesses comes great responsibility where the mangers had to encounter a lot of problems and concerns.

Religion

           Based on some recent reports, InterContinental Hotels has faced multiple problems regarding the religious concern. Due to the demand for high-class services and its popularity around the world, it is normal for the company to face some problems. People with different faith would require different treatment when it comes to services and especially the food services such as the type of food, the way it serves, and the time. Being the company deal with a lot of the rich and high-class people, they need to be perfect, creative, and precise. By the year 2009, the company was sued by Pete LaBarbera and AFTAH. The lawsuit was against the well-known hotel chain known as Holiday Inn for discrimination against him and his association. The association had a reservation to do fundraising in the hotel, but six weeks before the event the hotel canceled the event. The reason behind that is the group’s religious beliefs on homosexuality and their rights to be open about that. On the other hand, the hotel was concerned that hosting this event will raise several negative publicities. Furthermore, there was also a rumor about the existence of evil spirits in some of the hotel chambers. People being arguing that some of the deaths reported from hotel rooms are linked with an evil spirit. Moreover, people have been complaining about some hotels that allow brothels business in their rooms. In many countries, this kind of business is against their religious beliefs.

           Solutions- In order to resolve this issue, the company should strictly follow the law in the country that they have their establishment in. This way they are not ding anything wrong. Furthermore, the company could set up a campaign to show to the people their perspective on the issue and point out that the information given out by some people is not true. This the best solution which is positive communication.

           Impact and Improvement- Throughout the campaign, the company could get back the customers' trust and show people that they are open to anything and they have nothing wrong. Also, they could show to people that they want all the success to their establishment without breaking any law or disrespecting and religious. As a result, this would improve the customers' confidence and repair the company reputation, thus increase the number of customers. This the right way of doing any business which is building a great reputation no matter what the costs are.  

  The Human Resources

           Logically, all jobs that been offered by big companies are in high demand due to the fact that big companies pay more and give a lot of privileges. However, most of these companies would require the applicants to do a series of tests in order to pick the best. They require skilled employees who can provide a high-quality service for their high-class customers. They only hire people who will be excellent service providers and dedicated to the job. However, there have been concerns regarding the low payment that workers get compare to the big job they do. Furthermore, there were some employees who described their mangers as harsh and hostile people. Also, the managers do not acknowledge the big role and the effect that the employee contributes to the company’s success.

           Solution- The company could fix their payment status such as offering a good compensation program to the employees in order to make them feel how valuable is their contribution to the company’s success. They should adjust and improve the wages, benefits, bonuses, and perks that the employees get. Employee’s satisfaction is very important, so the company should adopt an organization that takes care of employees related issue at work. They should tarin the mangers and supervisors to achieve better satisfaction from both customers and employees. 

           Impact and Improvement- By providing better compensation packages and make the workplace a better place would improve the established reputation among people. It will motivate employees to work harder and give their best because they are happy with what the get. Furthermore, by adjusting compensation packages and benefits will attract and retain more talented people to work with the company. It is very important to motivate employees in order to keep the business in the best condition and maintain its reputation between people. 

Culture

           InterContinental Hotels is known for its priority to satisfied both customers and employees around the globe. The company is frequently devoted to making sure that they meet the numerous changing requirements of customers worldwide. It operates in every aspect of the company to ensure its function effectively. Nevertheless, some changes that they have made did not work in the company’s favor and it coasts them a lot of money to make the new project implemented.

           Solution- The company could manage their expenses in many areas in order to fix others. They should continue improving their service quality by depending less on the capital investment and use the rest to another key area.

           Impact and Improvement -This move would help the company to save more funds that can be targeted to developing other sectors of the business. Making new changes and adapting new technology features are the kind of stuff they could adapt.

Government Regulations, Legal and Ethical Problems

           Occupational Safety and Health Administration (OSHA) is one of the important agencies of the USA department of labor that concerned about safety and health at the workplace. OSHA monitor all kind of business to ensure that the company reduces job-related injuries, accidents, deaths, and illnesses. OSHA helps all kinds of companies’ success by protecting their employees as a result reduce the sum of illnesses, deaths, and injuries that may occur (MacLaury 1984). The different rules and regulations in different countries might affect the business, with some government imposing a large amount of taxes and loads of paperwork that might take a very long time. 

           Solution- The best solution for companies, in this case, would be complying with the rule and regulation. OSHA is there to protect the company’s success and ensure the safety of the employees which is very important. Complying with OSHA will avoid all companies and the chance of lawsuit litigation. 

Impact and Improvement- By complying with OSHA the death, illness, and injury cases will decrease making people want to work for the company and motivate them as well. No manpower means no products means to profit for the company. A low rate of injury, death, and illness will maintain a good reputation between people. 

Furthermore, when the employees are safe and healthy in the workplace the company will reduce their workers’ benefits and insurance costs along with medical and reduce coast for them to return to work. 

Customer Service Management

           all business around the globe aimed to provide the best to the customers and never stop providing the best of services with keeping up with the future. This was the same goal for InterContinental Hotels since it started in 1946. Nevertheless, the company faced a number of problems that have seemed to reduce the customers' trust in the company’s safety and services. During 2016, InterContinental Adelaide served around 70 customers salmonella food poisoning with about 21 of them was taken to the hospital for further treatment (ABC News, 2016). Additionally, by the year of 2017, a customer rights group accused InterContinental Beijing Sanlitun of bad hygienic requirements. The rights group did stop there where they did an undercover operation inside the establishment. They labeled toilets and bed linen with unseen stamps and then they came back later and found out the marks of the stamp. This meant that the stamped places were never cleaned. A cleaning tissue is a very serious issue where it could lead to close down the business.

           Solution- IHC should take these complaints into consideration and take immediate action. They should develop a complaint handling procedure where they have to communicate with both sides of the issue and generate a solution. They should also make an organization at the company that checks the quality of their workers' jobs and efficiency. The organization should mainly handle the safety and cleaning aspects of the company.

           Improvement and Impact- problems like food poisoning and hygiene are very serious and people by nature are very sacred and concern about their health. By solving the problem and ensuring that it will not happen again will rebuild the customers' trust in the company and by enhanced it day by day. Customer satisfaction is very important for all business and their success. Building a worried free customer is very essential, where most customers want to stay at a place where they are confident of its excellent job in cleaning and food services. A good reputation will attract more people, thus more profit to the company and that’s what all companies desired.    

References

ABC News (2016) Eggs blamed for salmonella outbreak at Adelaide's InterContinental. Retrieved from https://www.abc.net.au/news/2016-08-15/eggs-blamed-for-salmonella-at-adelaide-intercontinental/7736492

IHG (2019) Company Overview https://www.ihgplc.com/

MacLaury, Judson (1984). The Occupational Safety & Health Administration: A History of its First Thirteen Years, 1971-1984. Department of Labor. Washington, D.C.: U.S.

Plog, S. (2005). The Problems and Challenges of Working in International Settings. A Special Topic Issue of the Cornell Quarterly , 116 - 123.

The Straitstimes (2017) Video sparks hygiene concerns in Beijing hotels. Retrieved from https://www.straitstimes.com/asia/east-asia/video-sparks-hygiene-concerns-in-beijing-hotels