Case studies

After completion of the case study, the participants would be able to understand the challenges in building a sustainable homestay tourism business; develop a positioning statement for La Pinekonez which builds a unique competitive advantage; and outline elements of the business strategy to profitably sustain and grow a sustainable tourism homestay in terms of service offering, pricing, marketing and operations.

La Pinekonez Homestay, located in the beautiful region of Himachal Pradesh, India, is the subject of this case study, which explores both its successes and its difficulties. In August 2022, Arvind, the dedicated sole proprietor of La Pinekonez, grappled with multifaceted challenges, the first being the foray of established hotel chains into the homestay business. As the protagonist, was is in dilemma of preserving La Pinekonez’s unique identity amidst corporate competitors, particularly with regards to differentiating from the expanding hotel chains. The clash between customer expectations for hotel-like amenities and the homestay’s commitment to sustainable tourism presented a crucial challenge. Negative reviews questioning the authenticity of La Pinekonez’s green initiatives heightened the complexity. Adding to Arvind’s predicament were the seasonal fluctuations in tourist inflow and his aspiration to embrace immersive tourism trends. This case study facilitates exploration of strategic positioning, sustainability management and marketing strategies in the dynamic and competitive hospitality industry. It also offers insights into the complexities of balancing differentiation, customer satisfaction and sustainability while navigating the evolving landscape of tourism trends.

This case study is suitable for students of tourism and hospitality management at postgraduate level. The case study can be discussed once the basic concepts of hospitality management and service dimensions are covered.

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CCS 12: Tourism and hospitality.

This case study provides in-depth, practical knowledge to develop business strategies for the management program. After reading this case study, the students will be able to learn about the challenges and problems that service firms face during a crisis, the drastic changes in the market environment due to a crisis and the analysis tools that can be used when analyzing the shifted market environment. By analyzing this case study, students will be trained for the decision-making that arises in the process of crisis management in the hotel industry.

Nam Nghi Resort, situated on the picturesque Phu Quoc Island in Vietnam, experienced the tumultuous period of the COVID-19 pandemic. Before the pandemic, Nam Nghi was a thriving five-star resort, deeply rooted in Vietnamese culture and renowned for its luxurious amenities and breathtaking location. However, the onset of COVID-19 brought unprecedented challenges to the hospitality industry, leading to a sharp decline in tourism and revenue. Despite the adversity, Nam Nghi implemented risk management practices successfully and displayed resilience and adaptability. Through rigorous cost minimization, strategic facility upgrades and targeted marketing efforts, Nam Nghi managed to navigate the crisis and gradually rebuild its business as travel restrictions eased. As the industry began to show signs of recovery, the general manager faced new challenges in restoring the resort’s prepandemic vitality. The challenge remained of understanding changing consumer values and market dynamics.

This case study can be used as class material for Master of Business Administration (MBA) students. In particular, MBA students in the hospitality industry such as hotels, resorts, travel agencies and restaurants are the target audience.

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The learning outcomes of this study are to recall the fundamental concept of revenue management in the hotel industry (remembering); explain the various performance measures used to evaluate room revenue in hotels (understanding); use revenue management strategies to improve room revenue in hotel operations (applying); and examine and evaluate the optimal solution for revenue enhancement, considering factors such as capacity management, duration control and differential pricing (analyzing).

This case study delves into the challenges faced by Hotel King’s Cross, a business hotel located in Pune, Maharashtra, in the year 2022. A week before Christmas Eve, Soham Dande, the hotel’s revenue manager, sought a meeting with Rohan Chopra, the director of sales and marketing, to discuss “revenue optimization for the hotel.”

During their meeting, Dande mentioned that the hotel had fallen behind its budgeted room sales targets for 2022 across various metrics, such as room booking nights, occupancy percentage, average room rate and revenue per available room. Furthermore, the hotel was trailing behind its competitors. The situation was compounded by the management’s decision to raise the targets for 2023 by 5%–7%, factoring in upcoming events, competitive performance and pandemic-related losses over the past two years. Chopra faced the dilemma of formulating an action plan to achieve the ambitious 2023 targets and establish Hotel King’s Cross as a market leader.

Students undertaking executive development programs and graduate-level courses in non-profit hospitality and tourism management, as well as revenue management courses in the executive MBA, management development and graduate MBA programs, may all benefit from this case study.

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This case study aims to stimulate the students’ thoughts about the introduction of sustainability and its importance in the travel and tourism industry and introduce the concept of resilience and building of dynamic capability of a venture from the perspective of an entrepreneur.

Established in 2009, India Someday was a fledgling travel company based in Mumbai, India. The team comprised passionate travellers who provided planning assistance for those willing to explore India independently. The company offered customised, personalised and tailor-made trips to create a memorable travel experience for travellers with differing budgets and age groups. Upon the launch of Asia Someday, an extension of the travel venture India Someday, Mr Asif Munshi shared a moment of relief as he shook hands with his co-founder, Mr Harsh Shirodkar. The pandemic significantly impacted the tourism industry, yet it fortified their entrepreneurial spirit and inspired them to bounce back with a dynamic and vigorous comeback and further strengthened the foundation of the endeavour. The expansion of their entrepreneurial venture marked the initiation of the second innings of their enterprise. Although the company had managed to stay afloat because of savings, it was soon depleted. But the withdrawal of the no-fly list and the gradual opening of borders brought a ray of hope for India Someday. Munshi was preoccupied with his thoughts about the future steps of his dream venture. With emails from his previous clients regarding travel plans to India, he could see that the prior impact of India Someday had not gone in vain. Although relieved with the commencement of people travelling, the future was uncertain and the founders knew that they had to be prepared to successfully operate their venture.

Tourism and hospitality courses/entrepreneur courses

Beginner

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The learning outcomes are as follows: to use advanced frameworks and tools to convey complex ideas related to strategy and sustainable business practices; apply relevant concepts and theories of corporate social responsibility and governance to a practical situation while making decisions; demonstrate understanding of the importance of stakeholders when developing socially responsible thinking; and analyze the different strengths and weaknesses of the organization when making a decision that would affect the company strategy.

Claire Humphry was the General Manager at the renowned The Nacre Hotel in Penang, Malaysia. Claire had a very busy job as she had many people who reported to her, and the hotel was always full of guests. One of the things Claire also managed was the restaurant OceanSound that was owned and operated by her hotel. OceanSound was a very thematic restaurant that specialized in making sculptures of food for special events. On the New Year’s Day in 2023, Claire came to work ready to tackle what was sure to be a long and busy day. However, Claire had not anticipated exactly how taxing the day would end up being. During Claire’s talks with her colleagues throughout the day, her conversation with her friend, the head chef of OceanSound, Poh, would nag at her head for the rest of the day based on the events that followed. The New Year’s special sculpture at OceanSound was to be a large rabbit made of cake to commemorate 2023 being the year of the rabbit according to Chinese zodiac. This is usually kept secret until the sculpture is revealed; but somehow this information had been leaked. This led to The Nacre Hotel and OceanSound being in the spotlight for bad reasons as this sparked a debate online regarding food wastage. This escalated quickly and even led to a famous food influencer commenting on this using specifically The Nacre’s name. Activists also quickly emerged in front of the hotel to protest the creation of sculptures and the food wastage in Malaysian hospitality industry, seeking to make an example out of The Nacre Hotel. The online criticism died down and was eventually replaced by praise for the sculpture. The activists were also eventually asked by the hotel security to leave, which led to the rest of the day to go as expected for a New Year’s Day at The Nacre. However, Claire’s nagging suspicion that they were not out of the woods led her to start looking into food wastage in the hospitality industry in Malaysia to educate herself and bring it up in a future meeting. Two days after this incident, on January 3, 2023, Claire found The Nacre Hotel posted on the newspaper headlines, dissecting the food wastage associated with the hotel now. After getting an urgent phone call from the Regional Manager, who was pressured by the board and shareholders, Claire decided the time to address this issue could not be delayed any longer. She wrote an email to her strategy team to come up with some ideas for possible solutions to the issue and to present them in a group meeting within a week’s time. At the conclusion of the meeting, Claire was contemplating about the decision that she had to make if she wanted The Nacre Hotel to continue operating successfully in Malaysia’s hospitality industry.

The main theoretical concepts illustrated in the case include corporate governance approaches, types of corporate social responsibility, stakeholders’ prioritization, organizational culture, organizational structure, industry analysis and strategic choices. Therefore, this case study can be used in a upper-level undergraduate business courses in the field of Strategic Management and Corporate Social Responsibility. The case study can be successfully used in a capstone course on Business Policy and Strategy, when tackling the concepts of corporate social responsibility, environmental sustainability strategy and corporate governance. Under this scenario, the usage of conceptual frameworks from Chapters 2 and 3 of the textbook titled “Concepts in Strategic Management and Business Policy: Toward Global Sustainability” by Wheelen and Hunger would be required. This case study can also be successfully applied to MBA level courses on Strategic Management in a Globalized World. In this case, the latest edition of the textbook titled “Exploring Strategy” by Whittington et al., could be used (particularly, the material from Chapters 2–9, 11, 14 and 15). Additionally, the case could also be used in courses related to Tourism and Hospitality, especially in schools which have specialized programs in this field.

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CCS 12: Tourism and Hospitality.

At the end of the case, a successful learner will be able to:▪ develop sound criteria to guide investors entering into hotel management agreements (HMAs);▪ reconcile principal and agent disputes through the lens of an agency framework; and▪ evaluate the impact of the work environment on employee and organisational outcomes.

Muyiwa, Chairman of Fara Ltd., signed a HMA with Aytello Hotel Group to operate his hotel in Nigeria, the Mélange Abuja. Aytello was an international hotel management company based in the USA. It was a renowned operator with several brands in its portfolio. The Mélange brand was contemporary, upscale and targeted young business guests with an appetite for adventure. It was the first Mélange to have opened in West Africa. A management agreement was signed in August 2016, which meant that Aytello was now responsible for operating the hotel on behalf of its Owner, Muyiwa. On his part, Muyiwa provided the funds needed to run the hotel profitably. However, soon after the opening, the operator and owner showed signs of conflict. Muyiwa began to distrust the operator and intervened directly in operations. The frequent clashes between Muyiwa and the operator soon led to an impasse that made productive dialogue difficult. As relationships soured, Muyiwa needed to make a decision soon. This case study is designed to teach agency relationships in organisational behaviour.

This case study is designed for business leaders on executive programmes and postgraduate students.

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After reading and discussing this short case, the instructor should do the following: to enable the students to select and evaluate the main strength (sustainable competitive advantage) of an evolving brand whose leading manager needs to appreciate how it can be used to achieve the strategic objective of franchising it despite its challenges; to guide the students in choosing the most appropriate brand name that will sustainably reflect the parent organization’s identity and also retain its growing attractiveness to more event sponsors and other key partners in an environment of conflicting interests; to facilitate the students in choosing the appropriate strategy for strengthening the readiness to franchise and adapt a similar teaching and examining (annual event’s) model in a related course unit from among any of the target audience’s master and bachelor degree at another university elsewhere.

This short case shows how the annual Makerere University Business School (MUBS) hospitality day has evolved into a potential event franchise, which is attracting more VIPs, the media and demand to also be held in the country’s Vision 2040 cities where the respective campuses are located.

Bachelor (BA, BBA, BSc) and MBA/master degree level.

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Identify the types of innovation that Gastón Acurio’s proposal has created. Understand the key strategies developed to grown and consolidate Peruvian food as a category internationally and as part of Acurio’s business. Identify elements of the business model using the business model canvas. Explain how elements of a business model are related, reinforce each other and drive results. Evaluate strengths, opportunities, weaknesses and threats to a business model. Analyze changes to the model that can capitalize upon or mitigate these factors based on evidence.

Gastón Acurio is a successful Peruvian chef and restauranteur who was key in shaping the country’s gastronomic industry. His innovative business model distinguished him from other Peruvian restauranteurs and allowed him to grow and take advantage of opportunities in Peru and internationally. His success and growth attracted US$52m in investment funding. However, his model’s challenges surfaced during a difficult restaurant launch exacerbated by a harsh review in the New York Times. Students must identify and analyze the key elements of Acurio’s business model to evaluate and propose changes to better take advantage of its strengths and opportunities, as well as to mitigate weaknesses and threats.

Master’s or MBA.

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Identificar el tipo de innovación que ha generado la propuesta de Gastón Acurio. Ya que si bien desarrolla productos nuevos su principal innovación es en el modelo de negocio. Comprender las principales estrategias desarrolladas para el crecimiento y consolidación de la comida peruana como categoría a nivel mundial y del grupo Acurio. Identificar los elementos de un modelo de negocio usando un Business Model Canvas. Explicar cómo los elementos de un modelo de negocio se relacionan y refuerzan entre sí y cómo son driver de buen desempeño. Evaluar las fortalezas, oportunidades, debilidades y amenazas a un modelo de negocio. Analizar los cambios al modelo que podrían capitalizar o mitigar estos factores, sustentado con evidencia.

Gastón Acurio es un exitoso chef y empresario Peruano que ha sido clave en la formación de la industria gastronómica nacional. Se distingue de otros empresarios del rubro por su innovador modelo de negocio que le ha permitido crecer y aprovechar nuevas oportunidades a nivel local como internacional. Su éxito y crecimiento atrajeron US $52 millones en capital de dos fondos de inversión. Sin embargo, los desafíos del modelo quedan en evidencia durante una difícil apertura de un local en el extranjero exacerbado por una dura crítica del New York Times. Los estudiantes deben identificar y analizar los elementos clave del modelo de negocio desarrollado por Acurio para evaluar y proponer cambios que podrían mejor aprovechar sus fortalezas y oportunidades, así como mitigar sus debilidades y amenazas.

Maestría o MBA

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Desarrollar un plan de negocios integral para una empresa nueva. Entender el ambiente de negocios. Prepare un análisis DAFO. Desarrollar planes funcionales (de mercadeo, finanzas, recursos humanos, operaciones, etc.). Entender las oportunidades y desafíos del proceso de desarrollo de un nuevo producto.

Este estudio de caso traza el desarrollo de un plan de negocios para Ch’ulel Mendoza, un complejo de villas ubicado en la Cordillera de los Andes en Argentina, en donde los huéspedes disfrutan de lujosos tratamientos de spa basados en el uso de vino. El plan de negocios debe ser integral, pues se convertirá en la base de un proyecto completamente establecido para posibles inversionistas. Ch’ulel Mendoza está rodeado por los exuberantes viñedos de algunas de las fincas vinícolas más famosas de Argentina. El spa, las instalaciones y los servicios rinden homenaje al patrimonio vitivinícola de la región, promoviendo el vino entre sus huéspedes como algo placentero para consumir y propicio para llevar una vida saludable. El diseño arquitectónico es un guiño directo a la vid: el spa cubierto de tierra es donde los huéspedes absorben los nutrientes curativos de los tratamientos de vinoterapia y de agua, de la misma manera en la que las raíces se nutren de los elementos y el agua provenientes de la tierra; el área del resort aprovecha el espacio al aire libre con terrazas, patios abiertos y piscinas en las que los huéspedes pueden tomar el sol y disfrutar de otros elementos naturales, tal y como lo hacen las plantas de uva. Cuando entre en operación, Ch’ulel Mendoza simbolizará bienestar, recreación y el encanto de la cultura latinoamericana.

Nivel de pregrado y posgrado

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