Rosewood Case Study

 

According to the Rosewood case study, moving to a corporate brand from an individual brand is expected to improve customer lifetime value (CLV). Use the Rosewood excel file Rosewood_students V4.xlsx. ( also available in files menu) to calculate the impact of the new brand strategy on customer lifetime value.

Please note that there are items in the spreadsheet to be included in the analysis that are not mentioned in the case study that will impact lifetime value. The assumed of 115,000 guests has been increased to 125,000 guests as a result of an inflight adverting campaign with business class customers of Delta airlines.

After determining the increase in CLV resulting from the changes, use it to estimate the additional sales to be targeted (see lower left of the spreadsheet).

Please submit your spread sheet with the analysis (in Excel format) along with a word file (single-spaced not more then 1/2 page):

(a)explaining your analysis, and

(b) suggesting some possible reasons for the reduction in customer acquisition cost from $150 to $125 with the new brand strategy.

Sample Solution

In this essay I will discuss the connections between leadership, motivation and teamwork theories, how they connect to practice in organisations and their limitations, offering solutions where impracticalities arise. The essay aims to draw conclusions on the suitability of Fiedler’s Contingency Theory of Leadership, Tuckman’s Model of Group Development, Belbin’s Team Theory, and Herzberg’s Two Factor Theory in practice, and how complexities like power and influence shape how they can be applied to best suit the situation a leader faces.

Leadership
Contingency based theories of leadership suggest that there is no correct or best way to lead a group, or organisation, due to the significant number of constraints on a situation (Flinsch-Rodriguez, 2019). Fiedler, in his Contingency Theory of Leadership (Fiedler, 1967), suggests that the effectiveness of a group is dependent on the leadership styles of the leader and their favourability to the situation. Much of the theory is established around the least preferred co-worker scale (LPC). The LPC aims to quantify a potential leaders approach to a task on a scale of relationship motivated to task motivated, where the leader fits on the scale allows their most favourable situation to be deduced, and thus allows the identification of suitable leaders for tasks. The favourableness of the situation depends on three characteristics: leader-member relations, the support and trust the leader as from the group; task structure, the clarity of the task to the leader; and positional power, the authority the leader has to assess a groups performance and give rewards and punishments (Fiedler, 1967). If the leaders approach matches what is required from the situation then success is predicted for the group.
Fiedler’s contingency model offers a very austere categorisation of leadership, clearly defining which situations will and will not result in success for a potential leader. At the senior management level of a hierarchal structure within an organisation the theory can be applied freely, firstly due to the ease at which persons can be replaced if their LPC score does not match that required of the situation (Pettinger, 2007). Secondly, and most importantly, is to ensure that the senior management are best equipped to lead the organisation successfully. However, further down the hierarchy Fielder’s contingency theory begins to hold much less relevance, it becomes impractical from a organisational perspective due to the number of people at this level of leadership. The logistics of matching the leader with their least preferred co-worker is impossible to consistently achieve, so a more continuum based approach is required.

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