Case Studies in Aboriginal Business

Transcription

1 Case Studies in Aboriginal Business Amaguk Inn Danielle Pottle

2 The Purdy Crawford Chair in Aboriginal Business Studies was established at Cape Breton University in 2010 in response to Aboriginal community leaders expression of the need for entrepreneurship, business investment, and corporate skills training for the purpose of creating a model of self-reliance. Purdy Crawford Chair in Aboriginal Business Studies Shannon School of Business Cape Breton University 1250 Grand Lake Rd, Box 5300 Sydney, NS B1P 6L Named in honour of Canadian lawyer and corporate boardroom leader, the late Mr. Purdy Crawford, the Chair aims to promote interest among Canada s Aboriginal people in the study of business at the post-secondary level. The Purdy Crawford Chair in Aboriginal Business Studies focuses its work in four areas: Research on what drives success in Aboriginal Business National student recruitment in the area of post-secondary Aboriginal business education Enhancement of the post-secondary Aboriginal business curriculum Mentorship at high school and post-secondary levels Meaningful self-government and economic self-sufficiency provide the cornerstone of sustainable communities. My wish is to enhance First Nations post-secondary education and research to allow for the promotion and development of national Aboriginal business practices and enterprises. Purdy Crawford, C. C. ( )

3 AMAGUK INN BACKGROUND The Amaguk Inn is located in Hopedale, Labrador. It is owned and operated by Patty Pottle, an Inuit woman who was raised in Hopedale. The hotel is equipped with 18 guest rooms, a dining room, and a lounge. When the hotel first opened in 1998 there were 6 employees and today there are about 15. All of the hotel s employees are Aboriginal and residents of Hopedale. Most of the hotels business comes from companies that provide services for the community, including various construction groups, government officials and employees, and Provincial Court officials. A very small percentage of guests are tourists. The busiest time of the year for the Amaguk Inn is from June to November. This is construction season for the community of Hopedale. The hotel provides dining services to both the hotel guests and the community. A banquet service is available groups can book the lounge to hold various events. Take out services are also available. Amaguk is an Inuttitut word meaning wolf. The name of the company was chosen because the owner, Patty, wanted an Inuttitut word that was relatively easy to spell and pronounce. She picked an animal that was common in the area and could be used to create a theme for the business. Throughout the establishment, the wolf is present in the hotel rooms, dining room, lounge, and front desk. It is shown through various forms of art, such as, photos, paintings, and wall décor. CONTEXT Hopedale is a small, isolated town, located on the North Coast of Labrador. About 650 people live in Hopedale and during the winter months the only way in and out of Hopedale is by plane. Patty Pottle had always dreamed of opening her own business in her home town. She left Hopedale to pursue a Bachelor of Education Degree at Memorial University, specializing in Native and Northern education. After receiving her degree, Patty went back to Hopedale to teach. In 1995, she opened a gift shop in Hopedale, which she still owns and operates today. Before the Amaguk Inn was established, there was another hotel in Hopedale. When it was sold and renovated into office space, there was still a need for a hotel in the community. Recognizing the opportunity, Patty started construction of a new hotel in the fall of 1997 and the hotel was ready for business in May of Amaguk Inn by Danielle Pottle 1

4 Because Hopedale is an isolated community, getting supplies and inventory is not as simple as waiting for a weekly shipment. The hotel must order enough supplies and inventory during the fall to last all winter, including cleaning supplies, amenities for guests rooms, kitchen goods (frozen and dry), and beverages. Because the hotel must stock up for months on end, the company must also factor in that it needs extra space to store these goods, adding another expense to the business. The owner must also take into consideration the financial responsibility of ordering goods for so many months, which means financially planning out the year differently than most hotels. Another annual occurrence is running out of goods and supplies before the next shipping season. The shipping season depends on ice conditions, and this varies every year, so determining the amount of each supply to bring in is very difficult. If the company runs out of supplies, it is forced to have them brought in by airplane, which is very costly. SITUATION A major challenge the Amaguk Inn faces is staffing. Employees at the hotel have little or no formal training in the hospitality industry. Those who have training have not had any refresher training in some time. Hotel employees receive training in housekeeping, waitressing, and front-end tasks. Most of the employees have not been exposed to other hotels to see how they are run. At the Amaguk Inn, employees sometimes have to take on multiple tasks. This means, while an employee may be hired as a waiter or waitress, he or she may also have to complete housekeeping tasks on some days. One of the obstacles the hotel faces in terms of training is related to its geographic location. It is very difficult to find someone who is willing to come in to an isolated community to provide training courses and the costs are greater as well. Not only does the hotel face lack of trained staff, it also faces a high turnover rate. This means management could invest money into having employees trained, only for them to leave their position shortly thereafter. Staff shortages are often a problem at the Amaguk Inn, where little or no notice is given for the absence of an employee. QUESTIONS FOR DISCUSSION 1. What could the owner do to reduce the turnover rate of her employees? 2. What are some other ways management could deliver education and training to its employees, besides bringing someone in? 3. How could the hotel ensure training of its employees will be worth the time and monetary investment? 2 Purdy Crawford Chair in Aboriginal Business Studies

5 EXHIBIT 1 Amaguk Inn Amaguk Inn by Danielle Pottle 3

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