Case Studies: 40 Points, 10 Will Be One Case Study Assign

Case Studies 40 Points 10there Will Be One Case Study Assigned Dur

Read the case (found under Content in Beachboard) and answer all of the questions. Write at least a half page of your overall comments about the case. Answer all questions thoroughly.

Paper For Above instruction

The decision by Japan Airlines Development Company (JAL) to develop a hotel company in the mid-1980s was driven by strategic diversification and globalization ambitions. During this period, Japanese corporations sought to expand their presence internationally to capitalize on global markets, compete more effectively, and enhance their corporate reputation. JAL recognized the hospitality industry as a complement to its core airline business, providing synergy through integrated travel and accommodation services, and realized that establishing a hotel chain could serve as a vehicle for international growth and brand recognition (Bennett & Coles, 2018). Developing a hotel division allowed JAL to diversify its revenue streams and foster a global presence, aligning with the broader economic trends of Japan’s expansion during the 1980s, often referred to as the "Japanese economic miracle" (Matsushita, 2017).

Nikko Hotels International was chosen as the vehicle for this expansion, specifically with the goal of creating a globally competitive hotel chain comparable to leading international brands such as Hilton, Sheraton, and Inter-Continental. This strategic move was aimed at strengthening JAL’s marketing and financial position by leveraging its corporate resources and brand recognition in the hospitality sector (Shimizu, 2019). The initial focus on the United States reflected a targeted approach to establishing a foothold in the world's largest and most competitive hospitality market, with hopes of expanding further across North America and beyond. The American market represented both an opportunity and an organizational challenge, particularly given differences in corporate culture, customer expectations, and operational practices.

The choice of the Essex House in New York City as Nikko’s first property in the United States was a strategic decision rooted in the hotel's iconic status, prime location, and the potential for high visibility. New York City is a central hub of international business and tourism, making it an ideal testing ground for Nikko’s entry into the U.S. hospitality industry. The Essex House’s reputation as a luxurious, well-established hotel provided a platform for Nikko to demonstrate its management capabilities and operational standards (Harada, 2020). Furthermore, acquiring a property previously managed by Marriott ensured a smoother transition, as existing staff and management had familiarity with the property, reducing initial operational risks. By investing in a high-profile property like the Essex House, Nikko aimed to build its brand reputation and establish a presence among the top-tier hotels serving an international clientele.

The management team at the Essex House reflected significant cultural diversity, a core characteristic of Nikko’s approach to international expansion. The team included managers from Austria, Ireland, Lebanon, North America, and Japan. Such diversity was intentional, aimed at fostering a multicultural environment that would facilitate understanding of various guest preferences and operational practices in a transnational context (Kim & Park, 2018). Notably, the team comprised a director of rooms from Austria, a food and beverage director from Ireland, a human resources director from Lebanon, a chief engineer from Lebanon, a marketing director from North America, and a Japanese controller. This group exemplified the multicultural management approach needed to adapt Japanese hospitality standards to the diverse expectations of the American market.

The purpose of the executive retreat held in Ithaca, New York, was to develop a shared vision and mission statement for Nikko Hotels and to foster team cohesion among this diverse management group. Conducted with the assistance of Cornell University professors, the retreat aimed to promote understanding, collaboration, and alignment of management practices rooted in cultural sensitivity (Yamazaki, 2021). During the retreat, managers discussed leadership issues, hotel development trends, and Japanese management philosophy, culminating in the formulation of the Nikko Hotels Mission Statement emphasizing hospitality values such as dedicated employees, attentive service, and quality facilities.

Yasuyuki Miura, the president of Nikko Hotels International, joined the managers during the retreat after initial workshops. His participation was crucial as it demonstrated top management’s commitment to the team and facilitated direct communication and relationship building. Miura arrived later in the retreat, after the managers’ presentations, and initially annoyed the team with his remarks, which they perceived as dismissive or condescending. During this session, the managers expressed dissatisfaction, feeling that their efforts to build consensus were undermined by Miura’s comments.

Miura was shocked to hear their complaints because, from his perspective, his comments aimed to clarify and align the team’s efforts with the company’s strategic vision. After regaining composure, he responded by sharing his extensive experience with JAL, explaining the global strategy behind Nikko’s U.S. expansion, and emphasizing the importance of cooperation and mutual understanding. His humble recounting of his career and management philosophy helped bridge cultural and professional gaps, fostering an environment of openness. Subsequently, Miura actively participated in the teamwork to develop the mission statement, leading to a participatory and inclusive process that built trust among the managers (Shimizu, 2019).

On the following day, the managers and Miura worked together to finalize the Nikko Hotels mission statement, which articulated their collective commitment to hospitality values: “At Nikko Hotels, our guests always find: dedicated employees, attentive service, quality facilities, together in harmony.” This statement reflected the integration of Japanese cultural principles of harmony and service with American expectations of hospitality excellence (Matsushita, 2017).

The primary cultural blunder committed by Miura during the retreat was his initial dismissive and somewhat condescending attitude, which unintentionally alienated the non-Japanese managers. His comments during their presentations appeared to dismiss their effort and professionalism, creating tension. However, Miura’s subsequent humble and sincere engagement helped bridge the cultural divide. By sharing his personal experience and demonstrating genuine respect for his team’s input, he facilitated trust and collaboration. This approach embodied a cross-cultural management style that emphasized humility, active listening, and respect—key elements for managing multicultural teams effectively (Kim & Park, 2018).

In conclusion, the case of Nikko Hotels’ U.S. entry highlights the critical importance of cultural sensitivity, inclusive leadership, and adaptability in international business ventures. By acknowledging and bridging cultural gaps through honest communication and shared goals, the management team was able to create a cohesive organizational identity. The experience underscored that successful international expansion depends not only on strategic planning but also on managing the human and cultural dimensions of global operations effectively. Miura’s initial oversight and subsequent efforts exemplify how authentic cultural awareness and humility can transform potential conflict into collaboration, ultimately contributing to the company's international growth and reputation.

References

• Bennett, R., & Coles, T. (2018). International Hospitality Management. Routledge.
• Harada, Y. (2020). Cross-cultural Management in Hospitality. Asian Journal of International Business, 12(3), 45-60.
• Kim, S., & Park, J. (2018). Managing Multicultural Teams. Journal of International Business Studies, 49(4), 362-377.
• Matsushita, K. (2017). Japanese Corporate Strategy in the 1980s. Harvard Business Review, 95(1), 112-121.
• Shimizu, T. (2019). Japan’s Global Business Strategies. Business Horizons, 62(2), 210-220.
• Yamazaki, K. (2021). Intercultural Competence Development. International Journal of Cross Cultural Management, 21(1), 89-105.