This case study focuses on the strategic leadership of innovation. It centers on a unique, one-of-a-kind company in the world: ILUNION, incorporated within the ONCE Group. The National Organization for Blind Spaniards (Organización Nacional de Ciegos Españoles, ONCE) was created in 1938. In 1988, it launched the ONCE Foundation, whose aim is to help ensure the full social inclusion of people with all types of disabilities by promoting their training, employment, and universal access. In 2014, ONCE created the ILUNION Group, with ONCE maintaining 47.51% of the group’s shares and ONCE Foundation controlling the remaining 52.49%. Alejandro Oñoro was named the CEO of the ILUNION Group at that time. This case study specifically examines the ILUNION Group’s strategic decision to acquire or lease a building in
order to open a new 5-star hotel in 2013 as part of the Group’s expansion in the hospitality industry. However, this caused some friction between ILUNION’s business practices and values and those of the real estate firm, Sattle (fictitious name). The key protagonists of this case are Alejandro Oñoro, ILUNION CEO, and José Ángel Preciados, ILUNION Hotels CEO. Before making a decision, the case highlights the strategic, social, and operational innovation and transformation of the “hospitality” concept from 2014 to 2022 based on the key issue of incorporating people with disabilities (PwD).
In this sense, we believe that this case study would be suitable for use in executive management subjects due to its analysis of executive committee decision-making, as well as in MBA and EMBA programs in terms of making decisions to promote innovation within higher organizational levels and operating structures. The first part of the case study describes the decisions ILUNION’s executive committee made to keep the hotel chain within the group. Oñoro believed that, above any economic and operational concerns, the Group had to stand by its guiding ethos. The case details how Oñoro convinced the executive committee to trust José Ángel Preciados as ILUNION Hotels CEO to transfer the essence of ONCE’s social commitment to the hotel chain, “eliminating physical and mental barriers” and integrating people with disabilities. The second part centers on the operational process Preciados and his PwD team adopted when deciding to innovate the organization by: 1) creating mentoring networks; 2) promoting key personnel; 3) transforming the basic product into smart rooms; and 4) digitalizing its reservation and client management processes. The case study begins and ends with Oñoro and Preciados looking to the future and reflecting on the strategic move to acquire or lease a five-star hotel from a chain that didn’t share ILUNION’s values, but which would be essential to firmly position ILUNION Hotels in the five-star league.
More info