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WEST INDIES YACHT CLUB RESORT: WHEN CULTURES COLLIDE

Abhishek – 14PGPIM02

Divyansh – 14PGPIM12

Dhrunav – 14PGPIM14

Mohit – 14PGPIM18

Prerna – 14PGPIM25

Vaibhav – 14PGPIM31

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BRITISH VIRGIN ISLAND’S TOURISM MARKET

36 islands- 16 inhabited

Area 59 sq mile

Planned and restricted growth ensured by

government

Bareboat chartering introduced in 1970

Main attractions - rich natural beauty and intrigueing

history

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UPSCALE HOTELS IN BRITISH VIRGIN ISLANDS

Tortola

Jost Van Dyke

St. John(USVI)

Norman Island

Peter Island

VirginGorda

Salt Island

Cooper Island

Ginger Island

Beef Island

Guana Island

Little JostVan Dyke Island

Great CamanoeIsland

Great Thatch

Little Camanoe

Necker Island

MosquitoIsland

The Dogs

Fallen Jerusalem

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Key:Peter Island Yacht Club

Little Dix Bay Resort

Drakes Anchorage Resort

Biras Creek Resort

West Indies Yacht Club Resort

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Exhibit 1Map of the British Virgin Islands

and location of luxury hotels and resorts

Piter Island Yacht Club50 rooms.$395-$525

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SITUATIONAL OVERVIEW

Head office located in chicago

Competitive advantage – largest boat fleet

The resort is in highly competitive virgin island

Staff comprised of expatriate management and local employees

Difficulties in cross cutural communications has caused strained performance

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Problems

High expatriate turnover

Rising tension between expatriate and local staff

making the organization experience cultural

myopia

Rising number of guest complaints and Low

employee motivation

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BVI Labor Market Laws and Regulation and its Impact on Success of WIYCR

First, expatriate work permits are granted only on the basis of the total number of employees working at a resort and the availability of locals who possessed these skills requisite for the position

Second, organizations are not permitted to lay off staff during slow seasons

Third, policies restricting the conditions under which an employee could be fired severely limited an organization’s ability to retain only the best workers and

Finally, organizations were under extreme pressure to promote BVI locals into management positions whenever possible

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To combat regulations on foreign employees, organizations often paid foreign staff through their offshore corporate headquators and restricted the amount of time they spent at the site

Organization offered attractive vacation components to their employee contracts enabling them to pay lower wages and reduce excess labor

Staff retention was offset by lower wages, avoidance of costs associated with training a new employee and extra staff during peak season

Sending promising young staff to service training programs in the Bahamas and Bermuda

Overcoming the Challenges of BVI Labor Market Laws and Regulation

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High Expatriate Turnover

Expatriates find it difficult to adopt to local culture

Increased stress and tension

Low Motivation of Employees

Low Motivation of Employees

Task not completed

well

Task not completed

well

Unable to meet

expectations

Unable to meet

expectations

Quit JobQuit Job

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Rising tension between Expatriate and Local Staff

Growing gap between Local and Expatriate Staff

Causes:

Lacking direct management

Management style does not suit local

Communication problem

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Low employee motivation

Senior staff are as lazy as the junior staff

Tips are not attractive

Only serve close customers sincerely

Cultural difference:

Foreign staff:Achievement

Local staff:Nurturing

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Rising Number of Guest Complaints

There is a decline in the service provided to guests by the West Indies Yacht Club Resort

Causes:

Lack of training

Lack of communication

Lack of motivation

Local culture

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Solutions

Short Term

Organize a holiday party prior to the peak week

Partner with Commisionary, the local bar

Encourage staff to become friends and to respect each other as people and to look outside titles

Create a slogan or pamphlet to hand out to guests upon arrival, in which local culture is explained as well as embraced

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Solutions

Long Term

Establish a WIYCR management training program

encourage employees and managers to have an open dialogue

In the off season, establish a social interaction committee

Implement a self service food and beverage sector

Develop evaluations based on a cross cultural training program

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Building Strong Leadership

It should be controlled and employees should be motivated by a authority figure present in the resort

Managers should delegate authority to subordinates

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Increased Communication- Building Brust

Managers and employees

Managers should have cultural training

Mix private and business life

Formal meeting and informal gathering

Resort and headquarters

Regular meeting to discuss progress, concerns and promotions

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Effective performance measures

Motivation-Pay for performance and collective achievement

Have informal reviews-Group meeting

Emphasize on win-win relationship

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Wrap Up

By improving the organizational culture WIYCR can concentrate on its core competencies and work to regain industry leadership status

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Alternative Solution

Replace existing team and management with locals

Replace existing team and management with expatriates

Change the mindset- create new organizational culture

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Thanks………