Shangri-La Hotel — Strategic Analysis Introduction Shangri-La Hotels and Resorts have emerged as one of the most appreciable brands in the international hotel industry. The Company has garnered its reputation based on its commitment to provide a world class service. Even though the hotel was running successfully during the s it had not evolved any core values or long-term strategic planning. This has led to the implementation of "Shangri-La " strategic plan.
The first hotel of the group was founded in in Singapore by the Malaysian-Chinese tycoon Robert Kuok. The name encapsulates the serenity and service for which the hotel and resorts are renowned worldwide.
With its opening, the hotel scored a stunning success and a world-class reputation, and throughout the years it became one of the finest hotel management companies. It achieved these satisfying results owing to the fact that it quickly differentiated itself from the competition while providing distinctive Asian standards of hospitality and service.
Originally regionally focused, from the company started an aggressive expansion.
Until this moment it owns 83 hotels, 3 brands and operates in 4 main business segments: However, the major sector in which Shangri-La is developing is Tourism and Hospitality and it is placed in the category Hotel and Resorts.
Position of Shangri-La on the globe The company operates on a global market. It is a leading player in the luxury hotel industry in Asia and a major competitor of the biggest brands in premier city addresses in Europe, more precisely in London, Paris and Vienna; in North America: Vancouver; Sydney Australia ; Dubai and Oman.
In response to the constantly increasing tourist sector and the rising demand for travelling due to various purposes, Shangri-La not only chooses the most sought-after leisure destinations around the globe, but expands its brands.
The segments that the Shangri-La hotels are serving occupy leisure travelers, business travelers and families. More specifically, their target group is the upper middle and upper class person. Challenges that the company faces coming from the external environment The company always performs on top level, despite the few hardly observable differences related to the number of stars between its brands.
It sticks to service excellence and unforgettable experience blending local cultures and exotic art. Throughout the years Shangri-La has learnt to treat all its customers equally, to show respect and take an immediate responsibility because it has realized that without customer satisfaction it would not achieve pleasing financial results.
Since Shangri-La strictly follows its rapid expansion strategy, it is not a surprise that it faces some organizational issues that in turn start appearing as present challenges for it.
There are three major issues at hand: The company is expanding into high-wage economies in Europe and North America; The countries in Europe and North America which Shangri-La targeted for its expansion have specific features, they cannot be easily compared with the Asian ones.
One of their characteristic features is the more expensive labor markets which prevents the hotel from maintaining high staff-to-guest ratio, which has never been a problem before. The challenges for Shangri-La here are to adapt to the new markets, to ensure its guests superior customer service, to train local people into its distinctive Asian culture and to ensure them a proper payment, and to preserve its own signature, in other words, to translate Shangri-La quality and service standards to new hotels in new markets.
These challenges are two-fold. On the one hand they result from the external factors, which are the new cultures and economic situation of the countries, and on the other hand they stem from factors depending entirely on the company itself.
The Chinese employees appeared uncomfortable making decisions, especially if they involve small monetary issues. Although they were fully authorized to address issues of various kinds on their own, they continued hesitating.
This problem stems from the unique Chinese culture and traditions. The Chinese people are very hardworking, organized, strict and punctual.About Shangri-La Hotels and Resorts Hong Kong-based Shangri-La Hotels and Resorts, one of the world’s premier hotel companies, currently manages 98 hotels under the .
In addition to key functional competencies, learners take up the inter-relations between Front Office’s different sections, emphasizing teamwork and collaboration.
This programme, the first “blended” model in the company, combines online and face-to-face learning. Essential Resources 1. Context-Based Values 1. targeting approach. This means that even with increased liabilities. since the increase in revenue is greater than the increase in costs.
Customer Base Essential Competencies Core Competencies 1. Although..
Shangri-la has been able to take control of its finances through disciplined disbursement.1/5(2). Shangri-La Hotels and Resorts (Shangri-La) was a leading player in the luxury hotel industry with a signature standard of “Shangri-La Hospitality”.
a service model based on traditional Asian hospitality.1/5(2). The Core Competences and Strategic Management of Raffles — A Case Study of Singapore Hotel Industry competencies to allow hotel gain competitive advantage over Shangri-La installed a S$ million computerized hotel management system; Ritz-Carlton first.
The role involves leveraging the scale and core competencies of Shangri-La’s “Sustainability” program in order to drive long-term positive impact in local communities in accordance with the Shangri-La philosophy, policies and standards and will include key responsibilities such as.