Disinvestment of ITDC Hotels


Disinvestment of ITDC Hotels
Case Code: BSTR480
Case Length: 14 Pages
Period: 1997-2015
Pub Date: 2015
Teaching Note: Available
 Price: Rs.500
Organization: India Tourism Development Corporation (ITDC)
Industry: Tourism
Countries: India
Themes: Tourism Marketing, Crisis Management, Strategic Planning
Disinvestment of ITDC Hotels
Abstract Case Intro 1 Case Intro 2 Excerpts

Abstract

This case is about the disinvestment of Indian Tourism Development Corporation (ITDC)-owned hotels and the reasons behind the move. Founded in 1966, ITDC is involved in the development, promotion, and expansion of tourism in the country. However, ITDC ran into losses between 1997 and 2001. The case describes the problems faced by the ITDC run hotels and the factors which led to their disinvestment. Lack of leadership, heavy employment costs, rise in availability of overall room supply compared to demand, and a weak global economy were some of the reasons to which the downfall of the group can be attributed. The case also discusses the post disinvestment issues such as resistance from employees, litigation issues, and lack of consensus among officials over disinvestment. The case concludes with a discussion on the future challenges and prospects of the hotel group and the possibility of divestment of the remaining ITDC hotels if efforts to revive them prove futile.

Issues

The case is structured to achieve the following teaching objectives:

  • Understand the problems associated with disinvestment of PSUs
  • Understand the role of macro-environmental factors in an organization
  • Study the problems faced by ITDC-owned hotels
  • Understand the need to privatise loss-making PSUs
  • Understand issues relating to the disinvestment of ITDC-owned hotels
  • Analyze the importance of strategic thinking in business planning

Contents

Keywords

Tourism Marketing, Crisis Management, Disinvestment, India Tourism Development Corporation (ITDC), Tourism Industry, ITDC Hotels, Disinvestment Policy, Privatization, Public Sector Units, Strategic Planning

Buy this case study (Please select any one of the payment options)

Price: Rs.500
 Price: Rs.500
 PayPal (11 USD)

Custom Search