OBEROI GROUP Understanding Strategy and Design of the Organization An “Organizational Dynamics” Job by – Group 5 (Section G) Parth Krishnan Mannadiar (12HR-018) Priyanshi Kejriwal (12DM-104) Atharv Tilak (12DM-042) Ritu Kapse (12HR-024) Siddharth Venkataraman (12DM-143) Lov Loothra (12FN-068) Puneeth C (12IB-062) Table of Contents Sr. No . | Heading| Site No .
| 1 . | Introduction| 3| 2 . | Growth and Strategy| several , 4| 3. | Structure| 4| 4. | Culture| 5| 5. | The People| 5| 6th. | Technology| 6| several. | Size and Organization Life-Cycle| 6 , 7| 8. | Complexity-Stability Model| 7|. | Conclusion| 7-8| 10. | Exhibits| 9-12| 11. | References| 13| Introduction The Oberoi Group, founded in 1934, employs regarding 13000 people worldwide and owns and manages about thirty hotels and five luxury cruisers as of 2012. The company was incorporated back in 1949 by Rai Bahadur M. H. Oberoi to perform “Oberoi Group of hotels”. The group of companies, affiliated through common control interest, can give first class luxury hotels, airline wedding caterers, airport pubs and restaurants, corporate atmosphere charters, travel around consultancy, limo services and project administration.
With accommodations being disseminate in Mumbai, Delhi, Calcutta, Chennai and so forth, we can see that covers nearly the entire span of the country. It also offers properties overseas in places such as Cairo and Aswan in Egypt, Bali and Lombok in Indonesia, Mauritius, Medina in Saudi Arabia and a new home coming up in Dubai in UAE. EIH, the flagship company with the Oberoi Group is generally recommended by business travellers due to its consistent and high quality service across diverse locations. Demonstrate 1 exhibits some reviews posted by customers who may have had the pleasure of staying at an Oberoi hotel.
As can be seen from their reviews, the key highlights of their stay were the ambience/facilities and highly motivated and well trained staff who give exceptionally attentive, personalised and warm assistance. Such a holistic experience can be achieved by a company through regular efforts. Hence the purpose of this kind of report is to understand these types of efforts which will Oberoi has synergized and use it to study effective organization strategy and tradition. Growth and Strategy “Rai Bahadur Mohan Singh Oberoi was born in 15th Aug, 1898 in erstwhile undivided Punjab, which can be now in Pakistan.
He was only six months old when his daddy died. Achievement and fortune did not, consequently , come quickly to him. Initiative, resourcefulness and hard work, combined with the capability to face and overcome the most overwhelming possibilities can ideal characterise this kind of phenomenal businessperson. ” These words about the owner, speak of the qualities he employed to make the Oberoi group reach the pinnacle it is by. When M S Oberoi first come to Shimla, he took up act as the workplace clerk on the Cecil motel. Today, the hotel is usually owned by Oberoi Group and is called The Oberoi Cecil.
The then manager of the resort was pleased with the work put in by Mohan Singh and asked him to assist him running one other hotel he acquired, Clarkes hotel. With this first hand experience of operating a hotel, Mohan Singh set out on his entrepreneurial enterprise. In 1934, he obtained two hotels, The Clarkes Hotel in Shimla and Delhi simply by mortgaging his wife’s jewellery and all his assets. The corporation was integrated as a open public limited business in India on dua puluh enam May 49 and its first business activity was since the lessee and user of The Oberoi Palace Hotel in Srinagar, Kashmir.
It had been in 1965 that they built their very own first motel, The Oberoi Intercontinental, now The Oberoi, New Delhi. It provided facilities that no additional hotel near your vicinity could meet and was India’s 1st luxury motel. In 1966, The Oberoi School of Hotel Managing later has been renowned the Oberoi Centre for Learning and Development was created. It presented high Quality specialist training in food management. The whole list of occasions that shaped Oberoi’s expansion is given in Exhibit installment payments on your Mr Oberoi was the initially Indian to work in association with intercontinental chains to woo worldwide travellers to India.
This caused numerous international travellers to offer their particular patronage. The other occupancy increased to a healthful level of 85%. Mr M S Oberoi had great vision and imagination. This individual converted dilapidated palaces and buildings into magnificent hotels. Some of these will be the Windsor nationwide, Mena Property Oberoi in Cairo and Oberoi Grand in Kolkata. The Oberoi Cecil in Shimla, built in the early twentieth century, reopened in April 1997 following extensive and meticulous reconstruction. Strategy: As a result the Oberoi Group’s strategy under Mister M S i9000 Oberoi’s leadership was very clear.
Since the begin, they have focused on expansion of their operations simply by catering to newer market segments. The decision to supply world class accommodations to Intercontinental travellers was the mind of an ambitious entrepreneur looking to broaden his giving. Also variable location existence helped lessen concentration risk. It is this kind of for this foreign image that foreign houses were bought and assimilated into the extravagance and the best quality services via Oberoi. The search for newer markets was responsible for bringing out its second brand of hotels, ‘Trident’. Trident hotels are five-star accommodations that have stablished a popularity for offering the best in excellence included with an affordable price tag. Therefore catering to the middle profits segment and company clientele was the strategy. With this new manufacturer, spread around nine places in India, Oberoi at this point had a major share of the hotel market. Exhibit a couple of also describes the tactical partnership with Hilton pertaining to the worldwide marketing and managing of concerns of the “Trident” hotels. The hotels, as part of this partnership, were to be re-branded “Trident Hilton”. However with Hilton trying to create its own Back garden Inn accommodations in direct competition with Trident triggered Oberoi matter.
Thus it abandoned the arrangement with Hilton and re-marketed it is hotels under the name Trident by itself. The Oberoi Group, along with its subsidiaries and other brands, stands among the most embellished hotel chains in the world numerous of it is group accommodations bagging numerous awards and accolades via Travel+Leisure, Conde Nast Tourist, Forbes and Galileo. While the business strategy and overall aggression in expansion is a key to this kind of success, it requires to have been supported inside though a resilient culture and dedicated human capital.
Let us today try to reveal some crucial aspects of The Oberoi Group’s culture and workforce. Framework As features grow in size, hotel or lodging managers find the requirement to group specific jobs in in an attempt to ensure successful coordination and operational control. While departments may be grouped as front side of the house (having guest contact) and back of the house (employees with no guest contact), Oberoi follows the practice of separating departments by function. Exhibit 5 shows the structure of a typical full support Oberoi motel.
Even though such a structure is normally followed by a hotel with size over 500 rooms, the sheer scale some of the Oberoi properties need such an complex structure. The divisional structure followed by Oberoi is in series with its tradition and its goals. The useful division encourages specialization. This kind of specialization in turn increases member of staff productivity and efficiency. Lifestyle The primary values with the Oberoi Group are articulated through their very own dharma, which has been developed by their particular employees. Their very own dharma articulates their commitment to display core values through their action and behaviour.
Elements of the dharma consist of Conduct in the highest moral standards, a Focus on teamwork and common trust, Preserving excellence in guest services, Protecting the safety, security, health and environment of guests and other. The Dharma has more aspects too which with each other apply to almost all aspects of the group’s business (Exhibit 3). The employee is definitely expected to produce all decisions and all relationships based on the organization Dharma. By placing solid mechanisms and communicating particular conduct expected from every employee, the business has made it possible that will put this Dharma into action.
Oberoi would not believe it is available of resorts, instead it claims being in the business of memories. The organization empowers it is employees to think – “I don’t merely work here. This is my own hotel. ” The Power of truck – Virtually any employee in the hotel can provide anything at a cost value of INR 1500 without seeking prior approval, any number of times, to the number of friends – zero questions asked. The objective is always to create guest delight. Friends who have received the power of 1500 have been pleased with the support they received.
The real power of this program is the fact because of the flexibility employees have, guest receive an incentive to invest more, they come back and talk about their positive experience simply by word of mouth. This kind of directly affects the company’s important thing. It’s these types of small ideological differences which make a difference in sustaining the culture after some time and across borders. Those The Oberoi Group takes pride in obtaining the best services professionals in the market. Throughout the year, the organization stimulates and rewards extraordinary performance that best displays outstanding service.
Some of these awards are i) Outstanding Functionality Award, ii) Employee in Spotlight, iii) Peer Acknowledgement Program, iv) Star with the Month and so forth Oberoi provides employees whom continue to enjoy a long period with the company, in some cases over 30 years. Many of their employees include completed their particular certification from the Oberoi Center for Learning and Expansion (OCLD) and also have built powerful careers up to the general manager level and in some cases senior exec positions together with the corporate business office. In mid-management positions, their very own average tenure is around half a dozen years.
Because the conflict for ability continues throughout many sectors, their retention strategy encompasses a variety of diverse elements. That they undertake regular employee thoughts and opinions surveys to understand employees’ requires. Their research reveal that although compensation remains to be an important element for people, they are increasingly aimed at clear career plans, use of “best in class” learning and building a work-life balance. By catering to these requirements, they have been successful in rendering the best encounter to their customers through a determined and interested workforce. Technology
In the hospitality sector, making sure the comfort of your guests is very important. However , in today’s increasingly requiring consumer marketplace, meeting that require could be a real challenge. This is especially true intended for Oberoi Resorts, a luxury band of hotels preferred by government officials and business vacationers. Not only does the hotel have to cater for well-heeled makers who would like to make use of features such as online TV, IPTV and wireless networking, in addition, it has to fulfill the stringent secureness requirements of business users who want to make sure that whatever data they get during their stay will remain secure.
In addition to this, it has to ensure that their fire security, car parking and networking facilities meet the requiring safety requirements required by simply government officials and high-quality business people. Reacting the hotel installed a very available and highly secure network that might enable this to deliver the security and functionality required by simply its guests. In terms of rewarding the social networking demands from the business on its own, the solution gives a solid, dependable platform to get running all of the hotel’s vital applications – including reservations, billing, inner accounting, and digital signage.
Size and Organization Cycle Size: Pertaining to the Economical Year finished on 31st March, 2012, the Company’s Total Revenue was Rs 1147. 33 crores. The company published a net profit after tax of Rs 122. 42 crores against Rs 64. 54 crores through the previous season, which is a fifth 89. 68% expansion or Rs 57. 88 Crores above YTD Drive 2011. It can be one of Asia’s leading hospitality companies. Even though the company provides multinational presence, there is a lots of decentralization in decision making in the lowest rung. As mentioned above, procedures such as “power of 1500” enable employees to physical exercise a fair sum of decision.
This is on account of being within a business centred on customer satisfaction. This amount of leeway translates to great customer knowledge directly elevating repeat business and word of mouth publicity. The formalization can be well established. A company functioning on the weighing machines of Oberoi needs to have well-structured and standardized operations. Although overall topics and products may differ the rules and procedures are well defined for each use to enable him to operate synergy with all the Oberoi Dharma. Life Circuit: In the pioneeringup-and-coming stage, Mister Oberoi don’t have to commit a lot of time to produce a product or perhaps service.
His experience in managing the operations of Clarkes Motel already provided him enough knowhow on the business of running a motel. Thus this individual could give you the strong command that was required to propel the company. Inside the collectivity level, again it absolutely was Mr Oberoi’s well well guided leadership which in turn kept the sails traveling by air high. We were holding focussed in expansion, yet took the required time to mobilise resources. There was clearly enough distance between 1934 when he acquired the 1st hotel and once the company acquired incorporated in 1949.
Again there was practically a 15 year gab before which in turn Oberoi group set up their own hotel. These timelines provided enough time for the new workforce to grow combined with the values of the founder and the organization. This kind of also helped in the formalization to the elaboration stage. The guidelines and techniques which performed get set up were based on the lifestyle of the corporation. This resulted in the different real estate established across the country or obtained world over, can inculcate the same culture all over without delete word too much red tape.
Decisions including setting up their particular printing press to maintain large standards around in letter head are an example of how stringent procedures or standards were maintained whilst causing concerns within the internal management. The management in several hotels would not need to synchronize now with each other for acquiring same quality of stationary. Presently the Oberoi group is in the elaboration stage, with different subsidiaries managing their different businesses. They are structured similarly and with different controlling interests, Oberoi now is in a secure position in the sector.
It is plans entail expansion and other ventures and partners to collaborate with. Complexity-Stability Model The habits and events occurring inside the environment can be described along the two significant dimensions. These are generally the Simple-Complex and Stable-Unstable dimensions. Difficulty: The Oberoi Group, interacting majorly in hospitality, can be subjected to Complex environmental elements since the hospitality industry has many players and must cope with several dynamic governmental regulations, competition for quality employees, new trends and so forth
Thus it is affected by quite a few diverse external elements. Balance: The Stable-Unstable dimension identifies whether factors in the environment are active. A domain is stable if this remains similar over a period of a few months or years, whereas underneath unstable circumstances, environmental factors shift easily. As mentioned above, presently there areas number of dynamic factors which affect the hospitality industry. With budget hotels likewise eating within their share by offering value for money and the economy in recession, corporates are taking their very own patronage to relatively more environmentally friendly pastures.
Therefore the food industry and Oberoi group face complicated, unstable environments. The Competition The domestic rivals of the Oberoi Group of Resorts are Taj Group, ITC, De-Meligan and Leela Group of Hotels. This presents a difficult competition to Oberoi as in the luxury section, supply is greater than demand in several cities, as per an evaluation in EIH Ltd’s twelve-monthly report. India has generally been cited as one of the most lucrative albeit difficult markets to produce properties within a long development cycle of three-five years, adding to the cost.
Apart from the household competitors, the Oberoi group faces immediate concerns with major international brands, which are growing their presence in India. Some of these brands are The IHG group, Wyndham Hotels, Marriott International and Hilton Throughout the world. These international hotel stores are not only targeting the luxury and high quality segment, but also the upscale, mid-scale, budget and upper price range segments. An additional to these stores is that Foreign travellers are accustomed with these foreign chains and thus it is very tough for American indian chains to be able to the linked loyalty.
Yet , to deal with competition, Oberoi and its home-based competitors such as The Taj Group are looking to add newer real estate, ranging from the budget category to luxury. Display 4 – lists out the existing resorts of Intercontinental chains and the upcoming ones with their designed dates and categories. This shows just how International Resort chains will be gaining floor in India and are high on their India expansion strategies, giving lots of competition to home-grown biggies. Bottom line We have just gone through the organizational style of The Oberoi Group.
We now have studied the strategy, it is culture and individuals, the competition and business environment it operates in. So what precisely does the corporation do directly to cater to all of these external elements and still appear as one of the leading hospitality firms in Asia and the universe? Strategy is one important factor that affects organization style. Oberoi group’s strategy happens to be one of expanding markets through targeting distinct income sectors, acquiring new properties and setting up resorts in different countries.
This strategy the lot of impression if we consider the frequently changing environment of the food industry while discussed in the Complexity-Stability Model. By changing the target part along with the industry trends, the organization has been capable of keep up its high requirements with the customers. Its present size and elaborative level in its life-cycle also enable it to follow this development strategy. Because of the brand benefit it garners, additional opportunities will also always reap in operation despite the competition. Another point to make note of from the unstable-complex environment of hospitality market is the framework of the business.
As we have seen above, the composition is highly differentiated and is remarkably organic. The differentiation can be accompanied with large integration too. The decentralized decision making in the operation level is required to include a participative workforce functioning towards client satisfaction. Seasonality, monetary upheavals and so forth requires a wide range of forecasting and the decentralized atmosphere allows the mandatory high speed response. Lastly, the culture from the organization which can be centred within the Oberoi “Dharma” is also in sync having its structure and design. Formalization is excessive at Oberoi.
The rules and procedures are well defined which implies every single employee is usually well aware of his tasks. Thus he can exercise his discretion with complete liberty while producing decisions. As well this official structure allows standardization throughout its resorts across the world. As a result we can see which the design of the business fits their workflow in a complementary manner. This has helped Oberoi keep its brain above its competitors and maintain itself effectively for over 75 years. The strong command has led it with smart give attention to targeting segments that offer new opportunities.
Therefore we can see that Oberoi is a superb example of a business that has utilized its framework and strategy to forward the business and remain effective. Exhibit you Customer Testimonials About “The Oberoi, Fresh Delhi” About “Mena Residence Oberoi Resort, Giza, Egypt” Exhibit two Major situations in the history of the Company Year| Major Events| 1949| The Company was offered and incorporated by Reflet Bahadur Mohan Singh Oberoi and Oberoi Hotels (India) Limited, in May 1949. | 1956| The equity stocks and shares of the Organization were first listed on the BSE.
Took the Maharaja’s palace in Srinagar, Kashmir upon lease and converted this into The Oberoi Palace Motel. | 1957| Started the flight solutions business. | 1965| Commenced operations at The Oberoi Motel, New Delhi. | 1968| By a scheme of merger approved by the Calcutta High Court, The Associated Accommodations of India Limited and Hotels (1938) Private Limited merged in the Company. Due to the merger, the Company attained The Oberoi Grand, Kolkata, Maidens Motel, Delhi, Palm Beach, Gopalpur-on-sea (operation suspended), The Oberoi Cecil, Shimla, The Install Everest, Darjeeling (operation suspended). 1973| Commenced operations on the Oberoi Podiums, Mumbai. | 1974| Founded a producing press in Delhi mostly for you can actually in-house demands. | 1979| Bonus concern of 1, 337, 745 fresh equity shares of the Firm of Rs. 10 every in the proportion of one new equity shares for every five equity shares held by the shareholders. | 1984| Reward issue of 4, 953, 131 new equity stocks and shares of the Firm of Rs. 10 each in the percentage of two new equity shares for each and every five equity shares held by the shareholders. 1986| Made a foray into the airport services business by getting into a eight year agreement with the International Airport’s Power to operate every one of the snack bars and eating places at the home and worldwide terminals in Mumbai. | 1992| Benefit issue of 4, 720, 704 new equity shares of the Business of Rs. 10 every in the percentage of one fresh equity shares for every five equity stocks held by the shareholders. | 1994| Set of GDRs for the London Stock market. | 1996| Change of name with the Company in the East India Hotels Restricted to EIH Limited. Bonus issue of 18, 464, 299 new Equity shares in the Company of Rs. 0 each in the ratio of 1 new value shares for every two value shares placed by the investors. | 1997| Commenced operations at The Oberoi Rajvilas in Jaipur, the first luxury leisure hotel in India. | 2004| The Company entered into a strategic cha?non for worldwide marketing with Hilton International. All the “Trident” Hotels had been re-branded as “Trident Hilton”, and the Oberoi Towers in Mumbai was re-branded because the Hilton Towers. | 2006| Sub-division of the confront value of equity stocks from Rs. 10 to Equity Stocks and shares of Rs. 2 . Reward issue of 130, 984, 657 new equity shares of the Organization of Rs. each inside the ratio of 1 new collateral share for each two equity shares kept by the Value Shareholders. The corporation acquired a 66. 67% equity stake in Mercury Car Rentals Limited, a partnership with Avis sur la question Europe pertaining to car rental organization. | | The producing press structured on the Company in 1974 was granted authorization by the Indian Banks’ Association to produce security stationery for banks. | 2008| The bijou with Hilton International ended and “Trident Hilton” as well as the Hilton Systems Hotels were renamed “Trident” Hotels. Establishment of EIH Flight Companies Limited, Mauritius as a wholly owned part of the Organization.
Entered into a joint venture arrangement with 26% equity involvement in L, Capital t Bangalore Air-port Hotel Limited for a resort project nearby the Bangalore airport terminal. Terrorist strike at the Trident, Nariman Stage and The Oberoi, Mumbai in November, 2008 resulting in interruption in business and closure of both the resorts. The Trident Mumbai re-opened on twenty one December, 08, after the terrorist attack. | 2009| Entered into a joint venture agreement with 16% fairness interest in Gold Jubilee Hotels Limited for the suggested Oberoi and Trident Resorts in Hyderabad. 2010| The Oberoi, Mumbai re-opens following full remodelling subsequent to the terrorist episodes in 2008. EIH International Ltd, a completely owned supplementary of the Organization completed a great acquisition of roughly 46% from the equity desire for its intercontinental hotels partnership company EIH Holdings Limited. Pursuant to the acquisition, EIH Holdings Ltd is now a completely owned subsidiary of EIH International Limited. | Origin: Information provided at site of EIH Ltd, an auxilliary brand of Oberoi Group (http://www. eihltd. com/about_eih/milestones. asp) Display 3 – Dharma: Primary code of conduct
Display 4 – Department Framework Exhibit a few – International Hotel restaurants in India GAINING SURFACE International resort chains will be bullish issues India growth plans, giving tough competition to home-grown biggies| Group| Existing hotels| Prepared hotels** (in Rs)| By when| Category| Planned fresh brands| IHG*| 12| 150| 2020| Mid-market| Holiday Resort Express| Wyndham Hotels| 14| 60-70| 2017| Mid-market| Howard Johnson| Marriott International| 18| 80-100| 2015| Across segments| Fairfield, Ritz| Hilton Worldwide| 8| 50-60| 2016| Luxury/ premium| Hilton, Double Tree, Hilton Yard Inn, mid-market Hampton
Conrad and Waldorf Astoria| Accor| 13| 90-100| 2015| High-class, mid-scale and budget| F1, Sofitel and Pullman| Decision Hotels International| 27| 100| 2017-19| Mid-market| Sleep Inn, Cambria Suites, Econo Lodge| Best American International| 34| 66| 2017| 3/ some and 5 star| Best Premier| Starwood Hotels| 33| 50-60| 2015| Across segments| St . Regis, W| Carlson| 46| 100| 2015| Mid-market and premium| Regent| Hyatt Hotels Corporation| 8| 50| -| Premium| Hyatt Place, Hyatt House| *InterContinental Resorts Group, ** Estimate Resource: Industry and ICRA estimates|
References Oberoi Hotels, Resorts. (2012). [online]. Seen 2012 March 15. Offered: http://www. oberoihotels. com/ The Oberoi Group. (2012). Occupations at The Oberoi Group. [online]. Seen 2012 March 19. Available: http://www. oberoigroup. com/careers/index. htm SHRM India. (28/06/2012). The Oberoi Selection of Hotels–Translating Dharma into Best Practices in HUMAN RESOURCES. [online]. Viewed March 22. Availaible: http://www. shrmindia. rg/oberoi-group-hotels%E2%80%93translating-dharma-best-practices-hr P Mullick, 2012, ‘Oberoi Group: Social media significantly important as recruiting tool’, Hindustan Times, Oct 18 H Baggonkar, 2012, ‘Taj, Oberoi under pressure coming from foreign hotel chains’, Organization Standard, July 17 Meters Kaushik, 2010, ‘Guest Superstar: The Oberoi’, Business Today, September five Audited Monetary Report intended for EIH Ltd. for the year 2011-12 Oberoi Hotels and Resorts. (2012). [online]. Viewed August 22. Available: http://en. wikipedia. org/wiki/Oberoi_Hotels_%26_Resorts