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How would you describe the corporate culture of Rotana and how is it aligned with the Rotana company values? Justify your answer with examples
According to the case study, the corporate culture at Rotana is focused on the retention of its workforce. President and CEO of Rotana stated: “people are the ones who bring flair in a hotel and are directly associated with the success of a place or company.” This statement can be seen as being true to the values of the company and how it addressed the issues caused by the 2008 financial crisis. Instead of focusing on downsizing, the company made sure that all the action plans include the maintenance of employee morale and that no job losses were permitted.
The corporation also made sure to centralize its recruitment and expanded its pool of employees by 150 percent to accommodate hotels that were slated to open by 2012. Employees were considered to be a valuable resource for the company that needed protection during an economically difficult time in history. Management of Rotana made sure to do everything in its power to prevent job loss by focusing on lean practices like creating unpaid days off during times when hotels are not used as much.
Would you consider that the financial crisis had a positive impact on Rotana?
While the 2008 financial crisis had a significantly negative effect on almost every country and industry, it could be said that the company experienced some positive outcomes due to this experience. While not much is stated about the history of Rotana, it is possible that not all the employees were certain about the company’s commitment to its values. This could be seen in the way that some employees attempted to safeguard their jobs, including Dr. Olga Kampaxi, when the news of the crisis reached them.
However, the way the management of Rotana implemented Operation Swordfish to safeguard the positions of all employees demonstrated their commitment more than anything else could. The management of the company has shown that even during times of crisis, they abide by the values of employee retention and continuity. The company also focused on more lean methods of operation that were likely to ensure its sustainability after the effects of the crisis become less prominent.
If you were to take action during this critical period, what would you have done differently and why? Base you answer on findings from the market situation of the Middle East region during this period
The reaction of the Rotana management during the 2008 financial crisis can be considered exemplary because they have not only avoided the negative effects of employee layoffs such as loss of image and service quality but also allowed the company to switch to more efficient work processes. During this period, hotel occupancy rates in the UAE have declined by up to 16%. The flow of tourists has increased during the summer of 2009 but only due to local families choosing to vacation in the country, rather than internationally.
It is possible that I would try to corner this market by focusing more on domestic tourism. While I would also focus on keeping the workflow lean, the expansion plans would have to be reconsidered because the number of international tourists coming into the country has shown to be low in 2008 and 2009. The market seemed to reduce, and I would not risk building more hotels when the occupancy of the current ones was lowering. However, employee continuity can play a big role in the success of a company which would make me focus on it, even if the approach would be specifically based on current employees rather than new ones.
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