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Station Resort
Author: Reuben GAN, Communication Consultant
Authorizer: Harvey SPECTRE, Settlement Expert
Completed: Monday, September 21, 2015
Executive Summary
Wandjina Station Resort has requested an investigation of their
organization. The purpose of this report is to examine the
communication and ethical issues that have affected Wandjina
Station Resort, and identify what issues have led to its overall
decrease in ratings, cattle exports and profitability. The overall
decrease began several years ago, with the Board taking action in
2013 and hiring a new GM.
This report has come to find that the new GM Wolfgang Wolfie
Schmidt is the main cause of Wandjina Stations continued decline.
Relationships were not formed early on with employees, due to both
a lack of interest and empathy on the part of Schmidt. Constant
miscommunication occurred due to his unconscious cultural
incompetence. His autocratic leadership style leaned towards task
focus and less on discussion. Choices were made without consulting
other senior management and these decisions often had negative
consequences.
Schmidt also engaged in some highly unethical behavior in order to
address the falling profitability of the cattle business. Bribes were
paid to foreign official and illegal drugs were imported into Australia
to hide evidence of sickness amongst the cattle heard.
Wandjina has been recommended to terminate its contract with
Schmidt and set its focus on re-establishing quality of the resort
before regaining profit. They should also rehire wrongfully
terminated staff and re-introduce both the corporate uniform as well
as the horse riding tours.
Table of Contents
Executive Summary...........................................................2
Table of Contents..............................................................3
1. Introduction..................................................................4
2. Issues in Communication...............................................5
2.1
2.2
2.3
2.4
2.5
2.6
3. Issues in Ethics.............................................................7
3.1 Corporate Social Responsibility..........................................7
3.2 International Dealings.......................................................7
3.3 Wrongful Termination........................................................7
4. Conclusion....................................................................8
5. Recommendations.........................................................9
5.1 New Leadership................................................................9
5.2 Quality Vs. Cost Cutting.....................................................9
5.2.1 Rehiring of Staff...........................................................................9
5.2.2 Re-introduce Identity...................................................................9
5.3 Under-the-table dealings...................................................9
5.4 Cattle Control...................................................................9
6. References..................................................................10
1. Introduction
Over the past several years the Wandjina Station Resort of East
Kimberley, North Western Australia has seen a worrying decline.
This decline has been two fold, in both public perception, as well as
overall profitability. In 2013, its International Ranking as a Resort
dropped from 9th to 18th, and its rating on Trip Advisor decreased
from 5 to 4 stars. Not only that, its joint cattle breeding operation
saw a 40% decrease in trade and the companys publicly listed
shares saw a price drop of 12% to $18 per share. This prompted
action by the Board to dismiss and replace the then General
Manager in hopes of returning Wandjina Station to its former status.
This unfortunately has not been achieved, as in 2015 the resort has
slipped further down international rankings to 21 st and is now rated
only 3 stars on Trip Advisor. The share price is now only $16.50 per
share. With the resort offering such a unique value proposition of top
tier luxury resort accommodation, combined with the rugged
landscape and many adventure activities, alongside a fully
operational cattle breeding station, the question remains as to how
and why Wandjina Station has declined in such a manor.
This report examines the organizational structure of Wandjina
Station, the actions and dynamics between employees. The purpose
of which is to identify any communication or ethical issues, which
may be contributing to the problems at hand. This report will focus
on several ranking individuals in the organization, namely General
Manager Wolfgang Wolfie Schmidt, Resort Operations Director
Jessica Wong, Executive Housekeeper Anthony Abbott, and Cattle
Station Operations Director Adam Gooridgee. The sources of data
used for this report are mainly secondary, with a detailed
observation of Wandjina having been compiled by Ray Durham,
UNSW.
2. Issues in Communication
In trying to understand the problems that exist for Wandjina Station,
the communication within the organization has been examined. The
inability to communicate effectively with one another can be
detrimental in the running of a company. As the points below will
suggest, the main issue at hand is a general lack of rich and
coherent communication between Schmidt and his staff, as well as a
general unawareness of other view points than his own.
3. Issues in Ethics
This section discusses the ethical underpinnings of decisions made
by Schmidt, and argues that these decisions are not beneficial to
Wandjina Station in the long run; particularly in relation to his efforts
in addressing the decline in the cattle export trade.
4. Conclusion
The hiring of Wolfgang Wolfie Schmidt as GM at Wandjina Station
resort was meant to steer the resort back in the right direction to
regain its status as an elite holiday destination, and return
profitability to its cattle breeding business. Not only has Schmidt
failed to do this, he is the main reason that Wandjina Station has
continued to decline on all fronts.
His autocratic leadership style, focused on tasks and discussion has
led to no meaningful relationships being established with his
employees. His loud narcissistic tendencies often offend individuals
and cause miscommunication to take place between him and those
from higher context cultures. The numerous decisions made without
the council of others such as the replacement of Gooridgees horse
riding tour and corporate uniform have both had negative
consequences on both guests and staff. Cost cutting measures such
as reducing the staff have negatively impacted the teams involved
in housekeeping, as well as cattle breeding.
He has also engaged in various illicit activities during his tenure.
These highly unethical actions include bribing government officials,
importing an illegal drug into Australia in order to disguise sick
cattle, and wrongfully terminating Adam Gooridgee for refusing to
compromise his moral principles. Not only are these actions illegal,
but they could permanently tarnish Wandjinas Reputation as a
Responsible Corporate Entity.
5. Recommendations
5.1 New Leadership
It is recommended that Wolfgang Schmidt be released from his 3year contract with Wandjina Station and terminated as soon as
possible. Wandjina should take steps to search for a suitable
replacement, an individual with less of an autocratic leadership
style.
6. References
Crossman, Bordia & Mills, 2010, cited in MBC, 2013, Ch 4.
Hall, E. T. (1976). Beyond Culture. New York: Dubleday Dell
Publishing.
Locker. K, Kaczmarek. S (2004). Business Communication: Building
Critical Skills Front Cover. New York: Mc-Graw Hill. 46.
Derber, C. (2000). The pursuit of attention: Power and individualism
in everyday life. Oxford University Press.
Villaume. A, Bodie. G. (2007). Discovering the Listener Within Us:
The Impact of Trait-Like Personality Variables and Communicator
Styles on Preferences for Listening Style. International Journal of
Listening. 21 (2), p102-123.
Conrad. C, Poole. M. S. (2005). Strategic organizational
communication in a global economy. Belmont:
Thompson/Wadsworth.