Rosewood Managerial Accounting Case Study

The case write-up should be a maximum of two single-spaced pages with font-size 11.5 points or larger and standard margins (1" all around). You are allowed an additional four pages of exhibits. Less is more. Keep in mind that exhibits should not be used simply as an extension of textual material. For each case follow the directions given.

Here is additional information from the syllabus:

Formatting

1. Your case write-up should begin with an executive summary that highlights the major issue in the case and clearly states your recommendation(s) based on your thorough analysis of the aforementioned key issues (this should be one short paragraph).  The remainder of the case write-up should present, in greater the detail, the analyses which support your conclusions.
2. The role of the discussion questions is to highlight some of the key aspects of the case.  You should also identify other factors that you feel are relevant to the situation at hand that may not be explicitly listed in the case and be prepared to include or discuss those factors in your analysis.
3. The questions are designed to get you to think about certain issues.  The issues that you identify as the major issues in the case are the ones that you should focus on in your write-up. So, don't answer the questions on a question-by-question basis. Rather, in analyzing and writing up the case, adopt the perspective of a consultant who has been hired by the company to advise it on the problem at hand. Stitch together the arguments in a smooth way in your write-up. Make sure you evaluate alternative strategies before arriving at your recommendation.
4. Be sure to use the data in the case when appropriate. Write-ups which ignore relevant data are incomplete. However, note that just because some data is presented in the case, it does not necessarily mean that the data is crucial or relevant to the solution you propose. Good managers know what data to use, and how that data must be used.

Effective case writing

Some general guidelines for preparing an effective write-up are:

• Provide a coherent, well-organized analysis, not simply a set of notes pieced together. Redraft and proofread the report.
• Be concise. Keep the sections short, and provide a strong logical flow for your recommendations. Cut all the fat from your paper: for every sentence, ask yourself "does this specific phrase advance my argument?" If the answer is no, remove it. Write crisply and avoid details of the case that are not relevant to your recommendations. Do not simply restate data from the case. The CEO is already familiar with the business! On the other hand, take every opportunity to support your arguments with case data.
• Make your assumptions explicit whenever necessary.
• Recommendations should be cost-effective and appropriate to the timing (short-term or long-term) of the problem at hand.
• Be sure you have considered the appropriate tradeoffs when formulating your recommendation. It is not acceptable to recommend that a company should attempt to have the: 1) highest quality, 2) lowest price, and 3) highest service.
• Tie your exhibits to the text of the report by explicit reference (“see Exhibit X”).

Additional Tips/Comments:

• Keep the headings, but the italicized text can be deleted. This should give you plenty of space to write.
• When calculating CLV with the spreadsheet method and the formula, your numbers should be similar.

Kenan-Flagler Business School        Justin Rogers

Marketing 741        

Executive Summary

Rosewood has historically employed individual branding, however given the increase in  competition and potential to increase the value of the company, we believe Rosewood should adopt a corporate brand strategy. Top priorities through this adoption  strategy should include:

• Creating an emotional connection between Rosewood and its current repeat guests
• Not alienating current guests
• Increasing the marketing investment to customers targeted in the luxury hotel segment. 

Understanding a Rosewood Customer

Rosewood’s individual brand/collection strategy currently operates in the luxury hotel segment. More specifically, Rosewood operates within a sub-segment consisting of sophisticated customers placing who  place value on exclusive collection hotels. These customer stay at both corporate branded and individual branded hotels. These are typically wealthy customers traveling for pleasure or on vacation. These indivdivuals place significant value on unique experiences and exclusivity. Current customers value “A sense of place” (Table 1). They do not mind paying a premium for a unique and more personalized experience (Table 1). By leaving the indivual branding sub-segment  and entering the corporate branded sub-sgment Rosewood will likely shift towards a broader set of customers who are looking for consistency and exceptional quality. There are potential risks to this strategy, including

• Alienating current customers expecting an exclusive experience
• Customers not recognizing the Rosoewood brand

Market Assessment (Competition)

Rosewood’s collection of ultra-luxury hotels make it a unique player in the luxury hotel segment. The hotels are tailored to the culture in which the property is located, providing an experience that is representative of that location. That said, customers experience a similar level of exceptional hospitality across all hotels. A unique strength Rosewood possesses is its central reservation system (CRS), which will allow the company to create specific guest preference profiles for multiple personas across the entire brand. Rosewood’s major weakness compared to corporate branded hotels is its lack of brand awareness and brand loyalty among customers. Rosewood will be a unique player in the luxury hotel market by switching to corporate branding. It will have the ability to both curate each guest’s experience to that of the local culture and retain the resources (economies of scale, CRS) available to its competitors in  the corporate branded properties segment (Table 2). This will be a more competitive market, primarily due to the number of competitors in the space, however, Rosewood offers significant differentaiton.