The Raffles–Swissotel Group M&A of 2001 (B): Integration Issues By Wee Beng Geok & Ivy Buche

Publisher Ref No:	ABCC-2007-010B	Pub/Rev Date:	2007
Industry:	Hospitality & Tourism	Case Length:	8 pages
Teaching Note Ref:	-	Teaching Note:	-
Organisation:	Raffles Hotels & Resorts; Swissotel Hotels & Resorts	Period Covered:	2001
Country:	Singapore, Europe	Level:	Undergraduate/ Postgraduate

Publisher:

The Asian Business Case Centre, Nanyang Technological University

Abstract

On 5 June 2001, Singapore-based hotel group, Raffles Holdings Limited, owner of Raffles Hotels and Resorts, announced that it had completed the purchase of Swissotel Hotels and Resorts. As the merger moved into the integration planning and implementation stage, the immediate challenge for Raffles' management was the integration of over 6,000 employees of the Swissotel group into the new organisation.

For the merger to achieve its strategic potential, Raffles' management had to examine the strengths of both hotel chains, to maximise synergies and secure specific areas of cost-savings and revenue enhancement. Over a six-month period, Raffles' management strived to achieve a balance between the desired pace of strategy implementation and that of human resource integration, given the human dynamics confronting the post-merger situation.

Instructors may wish to follow this case with "Evaluating the Worth of Human Capital: The Raffles-Swissotel Merger and Acquisition of 2001 (A)". Case (A) explores key human capital issues to be addressed as part of the Raffles-Swissotel M&A due diligence exercise.

Issues: Integration planning and implementation, achieving balance between strategy implementation and HR integration

About the Authors