The companys employee base, including those that work for the companys franchises has reached 130,000 by 1998.
In 1998, Radissons president Brian Stage, and executive vice president Maureen OHanion, has been contemplating major change in the companys operations in order to gain competitive edge. The two executives think of adopting a different brand strategy which promises higher quality of service across all Radisson hotels. Commitment to improving the service quality and achieving higher customer satisfaction is something that the two executives see that Radisson needs in order to secure its position in the industry.
The companys service guarantee should be defined in the following manner: “let us know if there is a problem and well have it fixed; otherwise, your accommodation is free.” This shows the companys strong commitment to provide excellent service that if the customer is not satisfied, then the service becomes free. This guarantee does not serve to reward picky and troublesome customers, but to convince the customers about the message the company is trying to convey with regard to its commitment to improving service quality, similar to the following manner: “the company will try to do its best to please you, and if you are not pleased then well shoulder the fees, as part of the cost of your dissatisfaction.”
In order to implement this, the company has to gain the support of the different stakeholders such as owners, managers and front-line employees. By knowing that a dissatisfied customer costs a lot to the company and may affect their interests being stakeholders of the company, commitment to customer satisfaction can be strengthened.
Improving the companys service quality cannot be cost-effective without information technology. As stated in the case (Schroeder 458), the two information systems are key to