1 T he change at Travelodge was conducted in order to meet business targets and the business...

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1 T he change at Travelodge was conducted in order to meet business targets and the business was sold following the changes. To what extent do you think the changes can be regarded as organisation development? In 2003 the hotel chain Travelodge was experiencing some difficulties. In a survey, whilst nine out of 10 people recognised the brand, they regarded it as ‘cold, masculine and stuck in the 1980s’ (Hope, 2005: 16). The company was bought by venture capitalist Permira Investment Fund Managers and embarked on significant change. The aim was rapid expansion, with a new hotel opening every 10 days in 2005 and a doubling of size being the target for 2011. This would involve the creation of 4,500 new jobs.

Significant investment was put into the buildings, both existing and new build. Rooms were redecorated and updated with the aim of producing a warm and inviting experience for customers. However, achieving such a customer experience is also down to the skills and attitudes of staff. HR Director Angus Stewart (quoted in Hope, 2005: 16) said: ‘People want a welcoming smile. Our staff need to be customer-

focused, warm, natural people who like to give good service . . . if we don’t get the people aspect right then we don’t have a business.’

However, in some locations staff turnover was as high as 80 per cent, so that ensuring knowledgeable, high-

quality customer service was not an easy task. In addition, at the time of the acquisition, staff were uncertain about the future.

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