Essays on Strategic Management Assignment

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Analysis This is a case study of Shangri La Hotel, one of the biggest chain resort hotels of Asia started by Malaysian-Chinese tycoon Robert Kuok in 1971. He adopted the name Shangri-La from the Hilton’s legendry novel Lost Horizon. Meaning of Shangri La means “eternal youth, peace and tranquility”. (Campbell & Kazan, 2008: 1) He started its first hotel, Shangri La Hotel in Singapore with a mission, “delight customers each and every time”. (Campbell & Kazan, 2008: 3). From there Shangri spread its wings into almost whole of Asian Pacific region.

1.1 Summary of Macro- environment1.11 Political. . Political will of the Chinese government to increase the influx of foreign tourists into its lands increases the enthusiastic hotel entrepreneurs from all over the world to establish their brands into the soil of China with Shangri La as no exception. In 1999 the Central Government in China promoted travel as a method to give its economy a push giving three weeklong national holidays ultimately increasing the demand for hotel rooms. (Shen, 2008:online). Its open door policy with improvement in the legal system, bringing reforms and liberalizing restrictions in foreign investments and increase in the rights and privileges of foreign investors China saw influx of 31-million tourists who spent US 16.2 billion.

(Pine, Ray, 2002: online). Along with China, other nations too relaxed their restrictions after the economic slow down in Asia to increase tourism industry.    1.12 EconomicShangri La’s strategy of opening its hotels in China saved them from severe economic crises that had engulfed Asia during 1997-98. Though economic crises severely hit many of the Asian nations but saved China due to their robust economic strategies.

By 2005, company greatly profited from great travel demands in Hong Kong and China to earn revenues of 842 million dollars. (Campbell & Kazan, 2008: 3) By 2006, China became most favourite spot for the tourists, accounting for more than half of the new projects in the region. Among all the 386 hotels, all over Asia in 2006, 188 were already established in China, and among these 134 were rated four or five star hotels. (Campbell & Kazan, 2008: 8)1.13 Social / culturalSocial and culture factors of a nation or state is a contributing factor to bring in the unforgettable experience of local culture, art and beautiful serene surroundings.

Shangri hotels have now become one of the world’s best hotel management companies while providing best quality room services with luxurious rooms adopting and developing local culture and adhering to the standards of customer-employee relationship. For e. g. in Thailand, it is very important for a service employee to provide tea or coffee on one knee, but in Philippines and in other Asian nations approach is straightforward, employees would simply enter the room, serve the refreshments and would turn their backs and Japanese would serve and walk out of the rooms facing guests.

(Campbell & Kazan, 2008: 3). Shanghri-La’s chain of hotels adopted the social and culture of the place where they have established to give feeling at home to the local tourists and also give an essence of local culture to the foreign tourists. 1.14 TechnologyWith t he globalization and high technological development in every social, economic and political sphere, hospitality industry is also not far behind.

Shangri La adopted latest and scientific technological developments imparting highest standard of excellence in hospitality and customer servicing. It used networking and started online services for bookings. In fact scientific technology is also used in their cooking processes and several other services.

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