Four Season Hotel Analysis

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Amy Huboi
TIP-Four Seasons Resorts and Hotels

The company that I have chosen for the theory in practice report is the Four Seasons Resorts and Hotels. The company is dually listed on the New York Stock Exchange under the ticker symbol FS and it is listed on the Toronto Stock Exchange under the ticker symbol FSH. The company originated in Toronto, Canada over forty years ago when owner and CEO, Isadore Sharp, opened up the first Four Seasons hotel. His concept was to create a chain of luxury hotels that offered excellence in service and amenities. The hotel currently has sixty-four properties in twenty-nine countries. The majority of properties are held under the Four Seasons and Regent hotel brands. The company has also established branded share ownership properties and private residences. My personal interest in this company is a result of my husband’s employment at the Four Seasons Aviara over the last nine years. I have seen first hand how this company takes immense pride in their staff and their well-being. The company also has extensive training for employees and provides many benefits, such as promotions and management training programs. The company has been extremely successful throughout the years because of their strong focus on specific market segments and their needs. The company has utilized successful strategies, which have aided in their financial success and stability when other competitors have failed or taken a loss.

Chapter 1

Mission Statement and Values

The Four Season’s has created a mission and values statement that encompasses the company’s goals, beliefs and principles. The mission statement has been developed to serve as a starting point for the company’s overall business strategy. It is also meant to be a source of guidance for Four Season’s employees. Their mission statement incorporates four important attributes of the company; “who we are,” “what we believe,” “how we behave,” and “how we succeed[1].”

The Four Seasons main purpose is to provide the finest luxury accommodations to their guests. The company’s goal is to be regarded as the best in hotel and resort management. The Four Seasons believes their employees are their most vital assets. The quality of the employees is paramount for the company in their achievement of organizational objectives. Four Seasons believes it takes a unified and cooperative employee effort to satisfy the guests’ needs and to achieve success in the industry[2].

The company has developed the philosophy that individuals (employees and guests) should be treated fairly, ethically, and respectfully. Four Seasons has adopted the “Golden Rule,” which states: “Do unto others as you would have others do unto you[3].” This has become the underlying foundation for the Four Seasons company culture. Although the Four Seasons wants to be known as the leader in the luxury hospitality industry, they have a strong belief that the pursuit of this objective should not overshadow their high ethical standards. The overall financial goal of the company is to earn “a fair and reasonable profit” in order to protect the investments of all stakeholders[4]. Four Seasons also focuses on long-term strategies, which ensures profitable growth.

Chapter 2

Porter’s Five Forces Model

Risk of Entry by Potential Competitors: Low

The companies in this specific industry offer customers a highly differentiated product. The luxury hotel industry has high brand loyalty among their customers. This can be justified by the premium price customers are willing to pay for a hotel room. According to Karl Huboi: “Once a guest experiences luxury hospitality they will never settle for anything less[5]. The existence of strong brand loyalty is difficult for new entrants to break unless they offer a superior service, which can be quite costly.

It is difficult for new entrants to gain access to the capital requirements needed to...
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