North American and European branded hotel chains in their efforts to maximize shareholder wealth recently shed ownership of assets and free up capital to focus on their core businesses with tight contracts. The ensuing pursuit of further business development to accelerate the process of internationalization and new business models franchise brand / value proposition in the international field has evolved. Globally accepted brand promise global quality. It is widely believed that Western brands to deliver greater value than brands from developing countries, such that they can charge world prices for its global clients. Denial of service delivery are often found in homes and food services industry. Such failures can serve as an important criterion for evaluating effectiveness. Managers learn how to recover from the failure of service delivery and address the issues of loyalty of existing customers. They are afraid to lose them as the cost of acquiring new customers can exceed the cost of maintaining existing customers. The case illustrates how a globally branded North American hotel chain included the basic principles of maintaining global brand promise to ignore the common North American standards of customer service, could not provoke a delivery failure recovery and debt company specific opportunities to maximize shareholder wealth. The reaction of the local bar, the response to cancel the imbalance in the following business relationships and adapting the value proposition from the perspective of vacationing couple who survived a diluted brand firsthand. "Hide
by Jim Kayalar Source: Richard Ivey School of Business Foundation 11 pages. Publication Date: March 13, 2012. Prod. #: W12792-PDF-ENG