IntroductionDuring 1950s, The Roaring Dragon hotel (RDH), a state owned enterprise (SOE), was one of the three-star hotels in south-west china. In 2001, due to decreasing potentiality of RDH hotel, provincial government decided to modernize it. On basis of international reputation, brand name and credentials, Hotel International (HI) organization was selected. (Grainger, 2008)BackgroundIn August 2002, HI took over management of RDH hotel. Paul Fortune, GM appointed by HI had a vision that his team would be able to bring service skills and professionalism of Chinese employees up to HIs world-class standard. (Grainger, 2008)Problem1. RDH management wasnt actively putting planning strategy to come over economic crisis and customer satisfaction policy which led to losing customers.2. Guanxi policy which was considered important part of Chinese business culture was strengthened under RI management. 3. RI Managers lacking skills of developing effective relationship with hotel Chinese employees.Opportunities & Recommendation1. RI management should apply Win/Win philosophy which means that (Agreements or Solutions are mutually benecial, mutually satisfying). With a Win/Win solution, all parties feel good about the decision and feel committed to the action plan. (Wilkinson & Thomas, 2009)2. In Chinese business environment, Guanxi can assist in, a) Obtaining source of information and resourcesb) Increasing business opportunities along with building corporate reputation, enlarging market shares.c) Employee motivation.ConclusionIf above recommendation are applied then potential demands of RDH hotel will definitely increase.ReferencesFang, Y. (2011) The Importance of Guanxi to Multinational Companies in China. Asian Social Science, 7(7), 163-168.Grainger, S. (2008) Roaring Dragon Hotel.Ivey Management Services, 9B08M004, 1-7.Wilkinson, T. J., Thomas, A. R., & Hawes, J. M. (2009) Managing Relationships With Chinese Joint Venture Partners. Journal Of Global Marketing, 22(2), 109-120. doi:10.1080/08911760902765908Yi-Feng, N., Tjosvold, D., & Peiguan, W. (2008) Effects of Relationship Values and Goal Interdependence on Guanxi Between Foreign Managers and Chinese Employees. Journal Of Applied Social Psychology, 38(10), 2440-2468. doi:10.1111/j.15591816.2008.00399.x