Shangri-La
Table of Contents
Table of Contents 2
Executive Summary 3
Identification 4 Past and Current Strategies 4 Problem Identification 4
Analysis and Evaluation 5 External Analysis 5 Key Industry Factors 6 Five Forces Analysis 6 Internal Analysis 8 Financial Analysis 9 SWOT Analysis 9 Corporate and Functional Strategies 11
Alternatives 13 Decision Criteria: 13 Alternatives 13 Alternative 1 – Forming Alliances or Partnerships with International Brands in New Countries 13 Alternative 2 – Expand Culture and Training Programs to Ensure Cultural Compatibility 14 Alternative 3 – Aggressive Marketing Campaign and Staff Recruitment and Retention Program 15
Recommendation and Action Plan 15 Recommendation 15 Action plan 16 Contingency Plan 18 References 19 Appendices 20 Appendix A: Five-Forces Model of Competition 20
Executive Summary
Symon Bridle, CEO must determine if the current strategy Shangri-La has in place could maintain their unique brand of Shangri-La Hospitality as they moved into tighter labour markets. As they battle with high-end Western hotel chains at home and abroad they need to overcome wages and cultural issues with their hotels world wide. To ensure Shangri-La maintains its service model during their expansion a consistent platform and service quality needs to be maintained. The following alternatives are to be considered:
1. Forming alliances or partnerships with international hotel brands in new countries
2. Expand current culture and training Programs to ensure cultural compatibility and consistently trained employees
3. Implement an aggressive global marketing campaign and staff recruitment and retention program
It is recommended Bridle present a combination of alternative two and three to the executives. The plan will ensure that Shangri-La will be able to maintain their service model that is their competitive advantage. Marketing their differentiating
Table of Contents 2
Executive Summary 3
Identification 4 Past and Current Strategies 4 Problem Identification 4
Analysis and Evaluation 5 External Analysis 5 Key Industry Factors 6 Five Forces Analysis 6 Internal Analysis 8 Financial Analysis 9 SWOT Analysis 9 Corporate and Functional Strategies 11
Alternatives 13 Decision Criteria: 13 Alternatives 13 Alternative 1 – Forming Alliances or Partnerships with International Brands in New Countries 13 Alternative 2 – Expand Culture and Training Programs to Ensure Cultural Compatibility 14 Alternative 3 – Aggressive Marketing Campaign and Staff Recruitment and Retention Program 15
Recommendation and Action Plan 15 Recommendation 15 Action plan 16 Contingency Plan 18 References 19 Appendices 20 Appendix A: Five-Forces Model of Competition 20
Executive Summary
Symon Bridle, CEO must determine if the current strategy Shangri-La has in place could maintain their unique brand of Shangri-La Hospitality as they moved into tighter labour markets. As they battle with high-end Western hotel chains at home and abroad they need to overcome wages and cultural issues with their hotels world wide. To ensure Shangri-La maintains its service model during their expansion a consistent platform and service quality needs to be maintained. The following alternatives are to be considered:
1. Forming alliances or partnerships with international hotel brands in new countries
2. Expand current culture and training Programs to ensure cultural compatibility and consistently trained employees
3. Implement an aggressive global marketing campaign and staff recruitment and retention program
It is recommended Bridle present a combination of alternative two and three to the executives. The plan will ensure that Shangri-La will be able to maintain their service model that is their competitive advantage. Marketing their differentiating
References: 1. Thompson, Arthur A., A. J. Strickland, and John Gamble. Crafting and Executing Strategy: the Quest for Competitive Advantage : Concepts and Cases. 17th ed. Boston: McGraw-Hill/Irwin, 2010. Print. Appendices Appendix A: Five-Forces Model of Competition