Subject: Business and Management
Language: English (U.S.)
Pages: 2
Evaluate the Riz Carlton case, and respond to each question that follows the case using both theory and practical managerial thinking.

Riz Carlton Case Study

Matching up to Competitive Hotels

The Ritz- Carlton hotel has been in the mainstream hotelier luxury business since the early 20th century. Throughout the years, the company has been able to attain the highest standards of customer service in the entire industry. It is the only company in the country that has managed to win the Malcolm Baldridge National Quality Award more than once (Reiss (2009). Training Magazine has also lauded the company as the best company countrywide in terms of employee training.

Its success relies heavily on its focus in meeting the exact needs and desires of its customers. The company believes in going an extra mile to leave every customer satisfied with the services provided. The company’s motto, ‘We are ladies and gentlemen serving ladies and gentlemen’ exemplifies the respect and commitment that the company has towards its customers and also its employees.

Furthermore, the company allows each employ to spend $2000 in making a guest feel more satisfied. The practice of giving the employees money is inspiring to both the customers and the employees. The customers feel that they are appreciated and that their luxury is of the utmost importance to the employees of the hotel. Once customers feel this way, it is very difficult for them to shift their loyalty to other companies in the same industry.

On the other hand, the employees have room to make creative and authoritative decisions about how to increase their customers’ satisfaction. Having a say in how the customer is treated inspires the employees to be more creative in handling the customers. The abundant creativity in the hotel is what sets the company apart in the market.

The company revolutionized the way that American travellers experienced customer service in a hotel. It created a whole niche by offering unparalleled customer service and ultimate luxury to its customers. For instance, it was the first hotel to provide a private bath in each guest room, fresh flowers all over the hotel, as well as well-groomed staff members who were dressed in formal white.

Importance of ‘wow stories’

The ‘wow’ stories are important as they serve as the means through which the 12 service values can be taught to the employees. The stories are a way of ensuring that everyone working in a Riz Carlton hotel across the globe is on the same page. Every day, in each hotel branch, a ‘lineup’ takes about 15 minutes. The most important part of the lineup is the ‘wow story’ of the day (Gallo, 2008).

These are stories about how an employee has gone an extra mile in meeting the customer’s expectations of the service in the hotel. The stories serve as a motivational tool for the employees in several ways. For starters, it provides intrinsic rewards for the employees who are being recognized in these stories. For such employees it is no longer about the money but about delivering the best quality service. Recognition for one’s effort is the biggest motivational factor for any employee (Gallo, 2008).

Secondly, the ‘wow stories’ foster healthy competition among the employees. The staff members will see their colleagues being recognized and be motivated to achieve the same (Kotler & Keller, 2012). Thus, they will work harder in identifying and meeting the specific unmet desires of the customer. They do this with the hopes that their colleagues will give them a pat on the back for their efforts or even that the management will recognize their superior customer service skills. 


Gallo, C. (2008, Feb 29). Employee motivation the Ritz-Carlton Way. BloombergBusiness. Retrieved on 5/3/2016 from

Kotler, P., & Keller, K.L. (2012). Marketing management (14th Ed). Retrieved from

Reiss, R. (2009, Oct10). How Ritz-Carlton Stays at the Top. Forbes. Retrieved on 5/3/2016 from