Business management · 2014 · Paper 1 · HLSL · Case study

2214-5001 ; 8814-5001 7 pages M&N14/3/BUSMT/HP1/ENG/TZ0/XX/CS For use in May and November 2014 BUSINESS AND MANAGEMENT CASE STUDY: THE IMPERIAL INSTRUCTIONS TO CaNdIda TES • Case study booklet required for Higher Level Paper 1 and Standard Level Paper 1 Business and Management examinations. © International Baccalaureate Organization 2014 2214-5001 ; 8814-5001 – 2 – M&N14/3/BUSMT/BP1/ENG/TZ0/XX/CS The Imperial 5 10 15 20 25 30 35 The Imperial is a seaside hotel in Mombasa, Kenya. It was founded in 1906 by Roger Williams, a citizen of the United Kingdom (UK) who had made a large fortune in the primary sector of British East Africa. Identifying a market opportunity and wanting to diversify his investments, Roger founded The Imperial. The Imperial initially had some financial problems, especially regarding cash flow and liquidity management. Roger operated the hotel as a sole trader. By 1920, The Imperial was the most famous seaside hotel in Mombasa: it had a very positive corporate image and a well-deserved reputation for its grandiose architecture, its high-quality service and its elegant décor. It held that reputation for several decades, until the 1950s. The 1950s were a turbulent time in Kenya. Following the Second World War, independence movements emerged throughout the British Empire. Fearing that the situation would turn violent, in 1959 Roger’s son and heir Jeff Williams, decided to sell all the family properties in Kenya, including The Imperial. In the decades that followed, The Imperial was bought and sold several times: between 1959 and 1989, The Imperial had five different owners. Investors were often interested in the hotel, as it was an attractive 200-room property with a private beach and easy access to Mombasa airport.