Wyndham Grand Hotels and Resorts

Running head: Wyndham Grand Hotels and Resorts 1
Wyndham Grand Hotels and Resorts
Wyndham Grand Hotels and Resorts 2
Executive Summary
Wyndham is one of the most profound 5-star hotels in the entire world. The organization
is prominently known for providing a range of products and services related to the travelling and
hospitality. This is a research paper that will analyze Wyndham strategies and competencies.
This will be achieved through increased speculation on several aspects that are within the
external and internal environment of the firm. Also, this thesis will speculate the company
initiative that safeguards its reputation around the globe. This analysis will include the
speculation of the human research department, technological implementation, philosophies,
culture, marketing strategies, and organization structure. This will be helpful in strategizing the
company administration and priorities. This thesis will identify loopholes and provide the
necessary remedies for most of the identified problems. Analyzing these aspects will enable the
thesis to present new strategies that can help improve the masterpiece.
More importantly, this thesis will determine the level of ethical obligation in the company
either to the community, employees or suppliers. This will help in creating better
interrelationship between the company, employees, business partners, and suppliers. It is clear
that this thesis will speculate all the significant information concerning the running and
development of Wyndham Hotels and Resorts.
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Table of Contents
Personally, this project is very interesting since it provides a diverse basis for study and it
also provides a real life experience. However, handling this project might not be as easy as it
seems due to numerous challenges especially in collecting quality and accurate information.
Such an enormous company tends to be rigid in presenting information due to competitors.
Therefore, the unavailability of information makes it cumbersome to collect the actual data and
evidence. However, I was able to obtain information easily without major difficulties. This thesis
is about analyzing firm competencies, structures, cultures, and strategies hence it is very
important to me in providing real life skills for future ventures. Analyzing these aspects will
enable me to have enough ideas of running and developing an enormous company in terms of
assets, human capital and customers. I did this project due to my future ambition of venturing
into the tourism industry. Since Wyndham has been able to capture a wide chunk of the global
market, then analyzing this firm will help me gain skills for a probable career. The greatest
challenge I encountered was organizing information according to the outline given without
excluding some minor details. I had to review the given outline several times and adhere to the
ethical principles of conducting research simultaneously. At last, I was able to organize the
information proficiently to include the main ideas and exclude redundancy. Also, I kept the
sensitive information confidential to avoid unethical behavior occurring in the entire process.
There are so many people who inspired me to take this project and acknowledged my
work. Among these people include my academic adviser and my parent. I have to acknowledge
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the effort of my classmates for challenging me to take the project. I am sincerely grateful to these
persons for believing that I can positively complete this project.
Background Information
In the contemporary tourism and hospitality industry, Wyndham has become a global
leader in the issuance of high quality services and products. The company has evolved from an
American confined company to a global giant with numerous subsidiaries in five continents and
50 countries. Wyndham has its headquarter in Parsippany located in Jersey. The firm brand can
be categorized into Wyndham Hotel Group, Wyndham Rentals and Exchange and Wyndham
Vacation Ownership. Each category deals with various issues regarding several companies and
brands that are within their civil liberties. However, the company main brand is managed by the
Hotel Group since the company has over 7,200 franchised firms. These franchises are found in
the Northern & Southern America, Europe, Asia, and some parts of Africa. It is important to note
that Wyndham is the global leader in providing quality and exceptional hotel services due to its
ability to develop and customize its brand. The company was founded in 1981 by Trammel crow,
but its prominence came about in 2009. Since 2009, the company has experienced enormous
growth in terms of expansion, reputation and profits. Moreover, the company is well known for
its social obligation to the community. This is the main sustainability strategy that has been
applied by the firm in securing its position in the market.
After its founding, the firm realized the importance of acquisition in developing its
reputation, products and services. The company acquired so many companies in 1988 and ended
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up incurring huge debts from investors. These debts paralyzed the development process and the
management had to restructure the company wholly. In 2005, the company brand was bought by
the Cendant Corporation, but this did not improve the conditions on the ground. The company
persevered tough conditions until 2009 when the CEO, Stephen Holmes, instigated the
formulation of a Business Code of Conduct and Compliance Programs. This code consisted of
numerous obligations of each employee, expectations, ethical requirements, required
commitment, and the interrelationship between the firm, employees, the management, and
administration. This was the main change that had taken place in so many years.
Research Structure and Contexts
Given the background information above, this firm forms a very interesting topic of
study. This thesis will take up the structure of a research paper so that all ideas and concepts to
be comprehensively discussed and analyzed. This paper mainly discusses the main frameworks
of Wyndham Hotels and Resorts. In the process, the paper will analyze the external environment
and the internal environment of the business so as to determine the firm potential and current
position in the industry. Each of the crucial subjects or issues will be discussed under the
stipulated topics and subtopics independently. The conclusion will summarize all the ideas and
concepts in the case and arrive at conclusive remarks. Also, the conclusion will relate all the
concepts so as to provide recommendations that are specific to the problems identified. This
thesis will then determine whether critical purposes of this dissertation have been achieved.
Company Analysis
This is the most important segment of the entire study since it contains industrial
analysis, company culture, marketing strategies, and significant details.
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The Company Type
The company operates in the hospitality and tourism industry especially in providing
travelling services, lodging, vacation centers, event and conferencing facilities, and indoor
sporting activities. The company hotel chain is the most profitable due to availability of
franchises in over 50 countries.
Company Culture
As stated earlier in the introduction, the company had embraced acquisition as business
development strategy, but it experienced numerous poor results. The company revived itself by
embracing a new culture that concentrates on the development of employees and capturing the
imagination and expectation of customers. The corporate culture is centered on the wellness of
the employees. The employees are provided with numerous development and motivational
opportunities as it will be discussed later. Nonetheless, the company culture has been built
around diversification, increasing performance per employee, increasing loyalty, and developing
The business code of conduct requires every employee to be socially responsible to
customers and the society. However, so as to make corporate social obligation profitable the firm
has embraced the triple bottom line business tactic. This approach is crucial in capturing people,
financial benefits and the environment. These aspects make is easy for the business to take a
holistic business approach and finally create value through interacting with society.
The company has a philosophy that ensures employees and the management do not forget
their obligation to the society. The philosophy urges employees to maintain social obligations as
a way of working, improving competencies and facilitating the central values, principles and
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visions of the company. This encourages employees to get involved in the company development
hence implant respect, integrity, support, and unity. The implementation of this philosophy
allows each employee to play his or her role in the development of the company.
Sustainability in the company is fostered by selling eco-friendly products that reduce the
consumption of energy and allow conservation of the environment. This sustainability initiative
is meant to influence the external and internal stakeholders and save money through preserving
energy and water. The company also devotes a fraction of its resources in enhancing compliance
and commitment. Employees who are devoted and ready to listen facilitate a high level of
flexibility. The company is also able to form a worldwide team of workers which is responsible
for cross-functioning of the company’s subsidiaries. This is what enables the company to run all
its subsidiaries around the world effectively and efficiently.
Marketing Mix
The company marketing strategies are centered on satisfying customers’ needs and
necessities. In each franchise, the company target different kind of customers. This is evident in
the global portfolio of Wyndham. This portfolio has the Northern American and the International
segments. These segments have different facilities offering dissimilar services and products. The
Northern American segments include the Upper Upscale, Upscale, Mid-scale, and Economy. The
most superior products and services with regard to the magnitude and customization follow the
order stated above. On the other hand, the international brand follows the order of luxury, first
class, mid-market, and budget. These classifications are critical in ensuring that the marketing
mix is considerate of income and social class of people in the market.
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Wyndham has set some customer value proposition so as to create an effective marketing
mix. This proposition consists factors such as brand strength, brand development, financial
viability, and efficiencies. These aspects help the firm to realize the most significant component
of the marketing mix to apply in a certain market. Therefore, the company has all the tools and
capabilities to join new markets.
The marketing mix of companies in the tourism and hospitality industry involves the
product-service mix, the communication mix and the presentation mix. The product-service mix
includes the price and service or product. The given segments above provide different products
and services to customers under different prices depending on the income and welfare of
customers. The communication mix consists interactions between the company and existing or
potential customers. This mix takes into account all aspects needed in the external environment
which involve legal obligation, social responsibilities, economic conditions, and competitiveness
in the market. These mixes integrate customers, employees, suppliers, and other stakeholders and
enable them to contribute in developing products and services. Lastly, the presentation mix is the
most significance mix since it presents potential markets for profitable ventures. This mix
decides the place for establishing new subsidiaries, availability of labor, availability of materials,
and existence of potential customers. The implementation of this marketing mixes leads to the
realization of business opportunities, market niches, and probable long term investment. Most
importantly, the firm has embraced the customization of the marketing mix, which allows it, to
provide specific products, services and facilities to specific markets.
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Technological Audit
Technology is the nerve of the company continuity, effectiveness and efficiency. The
company selected a technology officer, Venkey Rangachari, to take care of all digital initiative
that can facilitate the company development. The company is closely linked to a technology
solution firm that offers digital solutions on demand, Jacent technologies. This company can
program softwares to monitor the market in a very short time hence creating flexibility. The
company can order new technology for new purposes efficiently and effectively. The company
has a by request technology that allows them to recognize the preferences of customers as they
enter the hotel. However, this IT infrastructure is effective if the customer is a regular at the hotel
or when the customer is assigned a membership number.
Though the company IT structures are not adequately organized, Wyndham has the most
critical technologies such as guest recognition systems, Property Management Systems (PMS),
Loyalty programs. Customers rooms have phones that are codeless so that they can call anyone
at any place around the globe. These rooms also have high speed internet connections hence
enabling busy clients to deals with their businesses or personal issues while at the hotel.
It is very clear that the company lacks technologies that can instigate innovations and
new products and services. The company needs to adopt new technologies that can help it to
design its facilities suitably, guarantee customer security and arrive at innovative strategies.
The Human Resource
The company success solely depends on the effort, integrity and commitment of
employees. Therefore, the company must address their needs and welfare when fabricating the
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organization structure, policies, principles and values. Failure to recognize and reward
employees results in huge losses due to lack of motivation and negative implications. However,
Wyndham is known for retaining its employees due to its welfare programs and employee value
proposition. This will all be discussed in this sector.
The Organization Structure
The organization structure simply refers to sharing of responsibilities and the level of
hierarchy in the company. The following structure shows the hierarchy of authority in
Wyndham. The diagram will be used to explain sharing of authorities, profits, and
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Public Shareholders
The Board of Directors
The Executive Manager
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The above structure shows how the chain moves from the public to the employees. Each
of these categories in the structure has a responsibility in ensuring that the company continues
performing excellently in the market. The public shares are mostly used to fund the company
operations. For instance, in 2009 the company was forced to sell more shares so that it can revive
its dying operations. The company had incurred a $.36 billion loss hence it could have died if it
did not sell some of its properties. People who buy shares of the company do not have any
obligation towards the development of the firm. On the other hand, investors are rather
independent of any task unless they want to engage in the company operations, mostly decision
making and establishment of new ventures. However, they are the main guarantors hence ensure
continuity and development. Wyndham has numerous partners owning different brands of the
same company. Most partners are involved in decision making and analyzing the firm progress
in a single or multiple financial years. These partners have to choose leaders in the most
significant ranks of the company. They are also responsible for finding potential investors that
can help the firm develop. These responsibilities are also similar to those of the board of
The CEO is in charge of all meetings and approves the decisions made by the board. He
or she is responsible for sending this information to investors or employees and managers in the
Wyndham Grand Hotels and Resorts 13
lower rank. The executive manager is the overall manager of all departments in the organization.
He or she passes the information to the departmental manager for dissemination. The executive
manager appoints departmental managers and continuously assesses their performance in relation
to the company objectives and values. The departmental managers are in charge of all operations
that occur within their branch of the organization. Also, these managers closely speculate
employees work and determine their effectiveness.
Lastly, despite being on the lower level, employees are the most significant persons in an
organization. This is because they are the ones who implement change and ensure the company
values and objectives are reflected in their work. However, so as to allow employees to
contribute in the decision making process, the company practices a selective decentralized
method of leadership. This method allows managers to select individuals who are competent,
eloquent, active, and focused in making decisions. This method makes it easier for the company
to reduce irrelevancy and time wastage.
In the contemporary world, organizations have realized that the human resource
department is central to any development in the organization. Inappropriate positioning of
employees forms a lot of confusion, disorganized work, inefficiencies, and time wastage.
Therefore, the model selected should be accurate in recruiting employees, planning distribution
of work, structuring employee welfare, career development, and performance appraisal.
Reviewing the rewarding systems, the level of integration and compliance in the HRM
department, it can easily be noted that Wyndham implements the Harvard Model of HRM. The
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models govern all the operations, systems, practices, policies, and objectives of the HRM
The Harvard model enables departmental managers to accept more obligations especially
in ensuring that the competitive edges are aligned with personal goals and corporate goals. On
the other hand, employees are allowed to formulate policies that direct their daily routines in
their respective place of work. The model identifies employees as significant members of the
stakeholders. The main policies that govern the implementation of this model include;
a. Increasing the employee influence in the organization mostly achieved through
delegating obligation, authority and power sharing.
b. Increasing the efficacy of the HRM practices including the recruitment process, selection,
performance appraisal, selection, and termination.
c. Developing performance based rewarding systems that identify team or individual
efforts. Rewards should be diversified so as to foster motivation, commitment and hard
d. Work systems are designed to increase comfort, minimal stress, efficiency, and
Other than these policies, the model is governed by the four c’s; cost effectiveness,
competence, congruence, and commitment. The following is a depiction consisting the main
concepts of the model and its interrelationship;
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Significance Stakeholders
The administration
The management
The government
Long term
Achievement and
Human Resource
Cost benefit
Workers influence
Human Resource
Rewarding systems
HRM practices
Working systems
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Strengths and Improvements
The company has three main strengths related to managing the human resource
a. The company has very coherent human resource strategies and systems. These
systems ensure that the firm goals and objectives are understood and achieved by the
b. The firm has well strategized systems due to the availability of welfare programs
hence enable employees to work at optimum conditions. This enables employees to
work comfortably and facilitate high productivity.
c. The firm policies and philosophies are profound hence they provide a working theme
and enable employees acquire core competencies.
However, the system requires a lot of development and improvement due to increasingly
changing business environment. The following are recommendations for building competent
human resource body;
a. The firm should embrace new technologies that monitor and facilitate change in the
organization. This will enable the company to embrace new trends in the market
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b. The firm should facilitate the fabrication of long term and short term goals so as to
remain relevant and focused. Therefore, employees should set objectives to be achieved
in a week, month and yearly.
c. Lastly, the firm needs to place consistent performance appraisal systems for facilitating
the short term goals achievement, as well as, long term goals. This is critical in evaluating
the firm progress over a given period. This is also significant in realizing weaknesses and
deficiencies in the system.
Comparing Three Articles from two Books
The books selected contain several models and theoretical concepts relating to the
Harvard model. The books selected are the Human Resource Management in Practice: With
300 Models, Techniques and Tools By Srinivas R. Kandula page 2 to 6 and HUMAN
Resource Management by Biswajeet Pattanayak page 5 to 8.
The two books agree on the major concept of the Harvard HRM model since they
articulate that the model is based on firm interests being goals, objectives, mission, and
strategies. However, the two writers place different information regarding the same models.
For instance, Kandula offers three insights regarding the model. Kandula articulates that the
model should consider the influences of the business environmental factors in formulating
policies (KANDULA, 2003, pp. 2-6). Most importantly, the model should be based on the
concerns of the stakeholders. He terms Harvard model as soft due to increased concerns from
On the other hand, Pattanayak articulate that the model should be entirely based on a
central philosophy hence employees need to have mutual goals. This is contrary to the given
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information regarding the formulation of personal goals and objectives. The writer identifies
strategic integration as the main booster of the Harvard model. Lastly, Pattanayak has
included several concepts that are not discussed by Kandula. Among these concepts include
the managerial behavior, the use of general managers and functional flexibility
(PATTANAYAK, 2005, p. 6).
Cultural Diversity
Cultural Diversity and Its Disadvantages and Advantages in Wyndham
Wyndham is prominently known for creating a comprehensive working environment
consisting of different races, origins, tribes, traditions, and cultural differences. This inclusive
strategy is the core to the operation and success in the five continents. The firm has subsidiaries
in over 50 countries around the globe hence cultural diversity is necessary in enriching the firm
with new ideas and sharing experience. Wyndham administration value fairness and complete
exclusion discrimination. All persons of different sexual orientations and disabled people are
offered similar chances and growth opportunities.
The company perceives diversity as a developmental process that will continue to take
place in the long run. Therefore, Wyndham has placed numerous programs to foster diversity as
a way of living. These programs are educative in nature since they create awareness for cultural
events such as rituals, customs and celebrations. The company Associate Business Groups is
responsible for researching common rituals, events, celebration, and customs. This segment of
the company investigates factors relating to a way of life and enhances sharing of ideas and
Wyndham Grand Hotels and Resorts 19
experiences. The organization objective is to create the best working place for all workers with
personal, background, sexual orientation, gender, and race differences.
Cultural diversity is very significant to the development of the organization, and it is also
lethal to some developments. One of the most advantages of embracing cultural diversity is the
enrichment of the working environment and the reputation achieved in the process. A company's
reputation can grow rapidly due to the recognition of special traditions and values of a certain
community. Culture cultivates new experiences, concepts, backgrounds, and perspectives. This
indicates that traditions and culture provide room for innovation and realization of new
opportunities. Diversity is essential in increasing the firm performance since employees are
selected on the basis of competency. The company is able to embrace new ways of increasing
shareholders’ values through recognition of the basic needs and preferences. Diversity forms the
basis for the formation of corporate values, cultures and principles. It is also important in
enabling the firm to prioritize on certain products or service that is of importance to the
However, diversity has some negative impacts on the company and employees. The
company incurs increased expenses in developing and ensuring the continuity of diversity
programs. For instance, the firm spent $153 million in 2011 on the supplier diversity program.
This value increased immensely to $182 million in 2012. This is some unnecessary costs that can
be avoided if the company did not value diversity as much. Cultural diversity can inhibit change
due to the existence of rigid traditions. Convincing some communities to try new products can be
difficult due to rigidity. Therefore, the company will waste a lot of time in researching and
gaining marketing ground. This firm also faces stiff competition from traditional firms offering
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similar services. Therefore, getting to the level of diversity and differentiation required might be
more difficult than anticipated.
Generally, it can be said that the advantages of cultural diversity surpass its
disadvantages. Cultural diversity should be embraced and continuously improved since it is the
easiest strategy of entering new markets.
Kindly note that this is the first part of this research paper and the paper will be
concluded after this part has been approved.
Wyndham Grand Hotels and Resorts 21
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