Americana (A) - The Case Centre

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Case

Reference no. 9-687-016

Subject category: Case Method and Specialist Management Disciplines

Authors: Christopher W Hart (Harvard Business School)

Published by: Harvard Business Publishing

Originally published in: 1986

Version: 23 June 1988

Length: 19 pages

Data source: Field research

Topics: Business government relations; Capacity planning; Hotels and motels; International operations; Marketing strategy; Operations management; Services

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Abstract

Americana Hotels decides to lease a resort hotel on Jamaica''s north coast from the Jamaican government. Management must decide whether to operate it as a traditional resort, or as an all-inclusive, club-type resort, similar to those operated by Club Med. The traditional resort appears to be a low-risk, solidly profitable opportunity. The all-inclusive option, on the other hand, has enormous profit potential, but the company has no experience operating this type of resort - and there are major differences in its operational characteristics.

Location:

Jamaica

Industry:

Hotel

Size:

Mid-size, USD250 million sales

Other setting(s):

1985