ADMS 4900 Chapter 2: Case 2

• School: York University
• Department: Administrative Studies
• Course: ADMS 4900
• Professor: Jung- Chin Shen

Document Summary

Majestica deemed ultimate luxury as derived not from furnishings but from personal service which was comprehensive and highly personalized. Challenge in majestica"s global expansion was how to export its service culture to new locations, which it handled with these two policies: majestica was careful about the pace of adding hotels. Attracted by the construction boom, a growing middle class, increases in passenger miles and an expanding economy, major hotels rapidly opened properties in asia. Majestica had not entered asia in the late 1980s because it was not convinced that the political situation was stable and that a service culture existed there. Majestica using a partner reduced concerns of the political risk in china and ensured a long-term commitment to the city and support of shanghai"s municipal government. Majestica"s financial performance and reputation in the luxury hotel industry convinced. Cps it had the capability to provide the expected rate of return to cps"s investment.