Shangri-La

1.   Introduction
Shangri-La Hotels and Resorts is a deluxe Asian hotel chain.   It was founded in 1971 in Singapore by tycoon Robert Kuok.   It focused on offering Asian standards of hospitality and service.   In the 1980’s, the company went through a stage of rapid expansion and by 2006 it had become the largest and most prestigious Asian-based hotel entity in Asia.   Shangri-La’s business segments consist of hotel ownership and operations, commercial buildings and services, apartments, spas, and more.

2.   Root cause of the strategic problem or issue;   "The strategic problem/issue is. . ."

The strategic issue for Shangri-La is to maintain its level of service quality standards in the hotel industry as it expands into new markets.

3.   External Environmental Analysis

Macro Economic Factors:

General economic conditions

Relaxation of travel restrictions in China has led to an increase in tourism and has had a positive effect on the economy.

China is experiencing an economic boom due to government relaxation of foreign investment regulations, investment in industrial production, increased productivity and encouragement of private businesses.

China has low labor costs.   This is an enticement to businesses attracted to the potential of higher profits.

Legislation and regulation

Some countries do not have high concern for privacy. Pressure could be put on companies from the government to permit eavesdropping for economic or political reasons.

Population demographics

Baby boomers are entering the retirement age and many of them plan to travel the world. They may spend more money enjoying this once in a lifetime experience.

Technology

People are more connected than ever before and need to have access to many modes of communications. To hold meetings with clients, more organizations are incorporating software such as Skype.

Social Values and Lifestyle

Rising Asian incomes has led to rise in the popularity of travel as a... [continues]

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