This exercise gives you an opportunity to design structures for a new resort.

Design: You are establishing a new luxury resort business on a small Caribbean island.

Construction of the 200-room resort is under way, and it is scheduled to open a year from now. You decide it is time to draw up an organizational chart for this new venture. Your initial workforce will consist of 150 employees. Draw your organization chart and briefl y discuss the rationale for your company structure. Don’t forget to include your corporate as well as hotel staff. Keep in mind your differentiation strategy

(it is a luxury property) and the jobs you will need to have covered. What services will you provide? What recreation activities?

Redesign: You are into your tenth year of operation. The company is wildly successful. You and your partners own 30 resorts (all fewer than 200 rooms) in a variety of locations in South America, Central America, North America, the Caribbean, and the South Pacifi

c, and the total number of employees is more than 4,000. Draw an up-todate organization chart focusing on the top two to three levels (corporate structure), and briefl y discuss the rationale for your new structure. Keep in mind some of the likely problems you have faced when expanding from one to 30 resorts. Be sure your new structure deals with these growth issues.

Redesign Again: Ten more years have passed. The resorts are now in 50 warm climate locations (not in Alaska or the Far East), and you operate fi ve cruise ships. The fl eet of ships offers seven-day cruises to the Caribbean, Alaska, and the Far East. Ships include casinos, live music, dancing, nightclubs, and multiple dining room options. Food is available around the clock in the main dining rooms. A recent customer profi le shows that almost 50 percent of the cruise ship customers also stay at one of your resorts.

High-rate hotel bookings have been down over the past several seasons as the cruise customer and the luxury resort customer do not always want the same on-land experience. You believe that better coordination is necessary between the cruise and resort businesses. Draw an up-to-date organization chart again focusing on the top two to three levels, but also draw an organization chart for the cruise business level. Be sure your reorganization addresses the coordination challenges you are facing. Be sure to draw both corporate and cruise business-level structures.