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Regal Carnation Hotel

Case Study

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Regal Carnation Hotel

Student’s Name




Regal Carnation Hotel

Task 4.1

The management of Regal Carnation in Guam should stop trying to associate with the success of other hotels and start to reinvent the brand based on honesty and commitment to the customers. Besides, it is important to apologize to the client, Steve McKenzie, reimburse a portion of the money he had paid, and embark on a serious overhaul of the hotel facilities. Clients often seek flexible and high-quality services in the market. When McKenzie selected the hotel, he envisioned staying in a comfortable room he has seen on the Regal Carnation website. McKenzie was disappointed by the poor facilities, wrong representation of the amenities, and the exorbitant pricing. The Regal Carnation Hotel owners should strive to offer high-quality services to increase their competitiveness in the market.

Even though, management of Regal Carnation used appealing pictures and messages to promote the hotel, after arriving McKenzie instantly noted the old furniture and unkempt lounges. According to his observations, the entire hotel was poorly organized and the services were of a much lower standard than he expected. Ethically, corporations are supposed to adhere to the principles of fair marketing and pricing. Nonetheless, the desire to maximize return on investments while minimizing the expenses might prompt businesses to invest in substandard equipment. In the end, the company can disappoint its clients and this mishap may lead to low sales and a negative public image. At the same time, customers should perform a thorough background check about the hotel before booking. McKenzie’s negative experience shows that he never researched about Regal Carnation. However, future visitors may do a better job than McKenzie, so the management of the hotel should focus on quality improvement including furnishing the hotel in order to meet the clients’ standards, if they don’t want to lose all the clientele and run out of business in several years at best.

Task 4.2

New information on Regal Carnation room prices will completely change my analysis of the case and perception of the hotel’s marketing strategy. Initially, I believed that the management of the hotel misinformed McKenzie to convince him to make the booking. I also thought that the Regal Carnation Hotel tried to benefit from the accomplishments of other establishments in the region. Nonetheless, as it stands, it is possible to deduce that McKenzie knowingly made the decision to go to the hotel, where the room prices were among the lowest on the island. If we consider this new information, it becomes obvious that it was quite unfair for McKenzie to complain about the poor service for this kind of money. He also had the option of requesting a refund from the management and seeking an alternative service provider in the region.

Prior to visiting a destination or booking a hotel, customers tend to compare the costs and services to guide the decision-making process. And the fact that the charges were low implied that McKenzie went for a cheaper option. However, it is irrational to spend less than average and to expect high-quality services. I would argue that Regal Carnation furniture, equipment, and rooms matched the hotel’s prices.

The hotel industry is highly competitive and business managers endeavor to attract new clients as well as maintain the loyalty of the existing ones by offering high-quality services. However, the preferences and tastes of the clients vary, and so it is impossible for a facility to satisfy all of the needs of every customer, since some go for the higher prices and better services and some look for options that cost less. However, it is mandatory for business managers to provide accurate information about the products and services. I would argue the claim that Regal Carnation never complied with the marketing ethics that require firms to provide truthful data on the range of products and services. The principal objective of a business is to maximize profit while offering the services or commodities to the willing buyer. And McKenzie chose Regal Carnation Hotel without any coercion. Probably, he took into account several factors, for instance, cost, proximity to the beach, and the architectural design to select the hotel instead of conducting a visit to have a look at the facility.

Task 4.3

The knowledge about business case study analysis is an integral skill that learners and future business leaders should aim to advance. I have identified the following skills as critical in conducting comprehensive research.

  • Critical thinking. Critical thinking is the ability to assess a problem by giving a multifaceted approach to form a sound judgment, for example, looking at issues from the perspective of the clients, entrepreneurs, or legal and ethical requirements. The skill has been appropriate in the examination of all the case studies, especially McKenzie’s negative experience and subsequent complaints about Regal Carnation Hotel.
  • Research skills. Research and investigative skills help when examining the corporation’s history and growth trends. These skills are important in assessing the overall idea, structure, marketing plans, and critical incidents. 
  • Skill to determine the corporate level strategies. This aspect relates to the ability to scrutinize the goals, mission, and vision in order to document the corporate strategy. This helps in determining the line of business as well as the advantages and disadvantages of the marketing strategies.
  • Analytical skills. The ability to read and assess data to suggest practical solutions to the emerging business challenges. It is important to provide critical evidence based on company objectives for every change proposal.

Problem-solving skills. This skill is important when summarizing the key points and providing solutions relevant for every particular business. Regal Carnation case study required a significant level of concentration and ability to investigate and understand each side of the conflict of interests, i.e. the client and the

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