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Dragon Hotel Case Study Summary

964 Words4 Pages

Nowadays, making business abroad is a big challenge which can, if it is done correctly regarding the culture, yield a huge profit. The atmosphere within the SOE Dragon Hotel was pretty “cool” and the profitability was globally good but it didn’t exploit all the opportunity it had. The provincial government decided to fix that by letting Erhi T take control of the company in order to improve the yield of the company. It didn’t work as they expected. Cultural Insensitivity, Poor Planning and Strategy Development, Poor Communication Poor Change Management, and Lack of Strong Working Relationships … There was the problem.
Chinese people work in a special manner led by their culture and one of the main elements of their culture in business is the “Guanxi”; the Relationships "Personal and friendly" without which nothing is possible in China. It can be translated by “networking”. Within the administration, with clients, suppliers... They are …show more content…

The unfreezing step, which consist in preparing and motivating employees for change. Tian Wen would have been used for this step because he is the one who had skills in management, in the Chinese culture and in Mandarin language; the transmitted information would have been clear and precise for the employees. The information by managers toward employees about this change was weak and practically non-existent. Then, the transition step arrives. It involves making the actual change, train the employees in order to make them cope with the change. They did that step before informing correctly the staff about the changes. The last step is the Refreezing: make the changes to be the norm in the organization by cementing them into the organization’s culture. This is done by building the change into the formal structures and the organizations social

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