7 Days Inn, a prominent hotel group in China, was created in 2005 and was recorded in 2009 on the New York Stock Exchange. It has greater than 30 million customers in its membership club. Registered recently, it manages more than 1,000 hotels in 168 major Chinese cities.
Its success is mainly due to the advanced business model and operations strategy, which includes designing product services with the perpendicular cutting approach, enhancing customer loyalty through a membership system and direct sales, handling a hotel chain with different governance structures and expanding a hotel chain with an innovative franchised-and-managed model. In particular, the case introduces the shepherd direction doctrine of the company. Nonetheless, as the company expands, it is now hard for headquarters to manage and supervise all of the hotels. Additionally, the acknowledgment rate of hotel managers has moved out up to 30 per cent in the previous few years. What should 7 Days Inn do to deal with these confrontations? Does the organization need to sever the rules and innovate operating model or its business model, operations strategy -
PUBLICATION DATE: December 06, 2012 PRODUCT #: W12372-PDF-ENG
This is just an excerpt. This case is about INNOVATION & ENTREPRENEURSHIP
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