Strategy and Longevity in Business: Hotel Avenida, Cancun, Mexico Case Study

Abstract

This case study is intended for undergraduate students. We aim to have students analyze and propose alternative models for decision making regarding the implementation of administrative and management strategies in a business hotel. Information is presented on a hotel that has 53 rooms and a traditional approach to administration. It was established in 2002, in the city of Cancun, Mexico. Students are given information about: the history of the hotel; key figures involved in the business decision-making; evolution of the management model; and, the current management model within the traditional approach to administration. The hotel has a constant 87% annual occupation rate.

The case study asks students to evaluate strategies for the following dilemma:

a) modernize the management model; or,

b) improve the existing model, based on the performance of the business and the ever-changing context of the tourism industry.

Students can suggest alternative courses of action and can assume the role of external consultants. Students should ideally work in teams. Knowledge in administration, management and marketing is necessary. This case study can be developed in a two-hour class and should include a presentation of the results and a discussion at the close of the class.

Keywords: Tourism, Business Performance, Leadership, Strategy

JEL Classification: M14, M15, M31