Professional Documents
Culture Documents
Kimpton Hotel Case - Group 4
Kimpton Hotel Case - Group 4
Group 4
• Agnes Joshua (17PT2-04)
• Pulkit Agarwal ( 17PT2-27 )
• Less water & energy consumption • Employee motivation • Reduction in usage of non toxic
• Waste reduction • Customer loyalty materials
• Recycling of products • Feeling of contribution for social • Responsible usage of scare natural
• Reuse of linens and Laundry and environmental cause. resources and Commons
• Sustainable business practices • Health benefits of Non VC paints
• Contribution to Bottom line and less toxic cleaning supplies on
employee and Customer
• Increase Brand awareness through
PR from media
• Helps in generating new business
Benefit would be tangible and Intangible spread across time frame ( Short Term and Long Term )
Q1 Cost of Initiatives
• Upfront High replacement /switching cost of organic products.
• Slower payback or lower rate of return on investment.
• Performance risk of replacement products
• Some water saving shower heads and energy-saving light bulbs could lower
hotel’s diamond rating
• Unfair advantage to company who are not investing in these
initiatives
• Intangible impact on customer perception
• Organic cotton and non VC paint have no direct perceptible benefits
Q.2 Benefits & Justification of Earth care
Program to Management- Business case
• Hotel industry is resource Intensive Industry
• Cost of resources such as energy, water and waste
Opex Saving disposal are high.
New Business • New business from recognize green initiatives : Green Lodging program
of California State $ 70 Million
Generation • Many states mandated to select hotel only from Green Lodging program
Risk Management • Helps firm in doing business in Ecological sensitive areas and saves them
from undue activism of NGO and social groups
Q3. Earthcare Program: Challenge & Ways to
overcome
Resistance by General managers to centralized imperatives
Make General Managers key stakeholders
Give them freedom to customize program as per their needs
Intercompany competition/awards to promote faster adoption
Resistance by hotel staff to new products and procedures
Include initiative and their importance in regular training programs
Reward and recognition system for employee adherence to initiatives
Slower payback period
These initiatives are strategic and cost benefit analysis should be done from
long term benefit like enhanced customer perception and brand equity
perspective
Q3 Continued..
Intangible benefits
Increasing the customer awareness about initiatives
Aggressive marketing campaign
Difference in regulatory requirement in states
Prioritize roll out in high regulated Areas
Company is doing it as it is the right thing to do
Q4: Further Steps to Institutionalize the
environmental commitments