Shangri-La Hotel and Resort

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Prepared By:

Yee Shan (Sarah) CHUNG,

Yan Sin (Jessy) LI,

Kim Sang (Anson) HO,

Kit Yat (Donald) TAI

Table of Contents
1. Introduction3

2. Summary of Macro Environment4

3. Summary of Industry Analysis8

4. Summary of Internal Analysis12

5. Gap Analysis14

6. Recommendations22

7. Appendices26

8. References52

1. Introduction

Since the parent company, the Kuok Group, is established in 1949 and until 1979 the home-grown Shangri-La Hotel, Singapore, was opened its doors in 1971 and it was opened under the management of Western International Hotels. However, Shangri-La International Hotel Management Ltd was founded in 1982 and from that time until now, Shangri- La endeavoured through countless challenged from the Asian financial crisis to the outbreak of SARS in 2003 and a lot of other challenges, Shangri- La Hotels and Resorts (SLHR) recently was announced and located its properties premier city addresses and some of the world's most exotic destinations across Asia, Middle East, North America and Europe.

As of 2006, SLHR was the largest Asian – based deluxe hotel group in Southeast Asia. The company managed a total of 50 hotels under three brands: the five-star Shangri-La, the four-star Traders and Kerry - with total inventory of over 23000 rooms across 39 locations. Furthermore, SLHR also join the stock market of Hong Kong, Malaysia and Thailand. As of SLHR’ mission statement “To delight our guests every time by creating engaging experiences straight from our heart”, SLHR also produce new product differentiation such as Chinese theory spas which named the “Chi” in most of its organization.

The success of SLHR does not stop there expanding its market or increase their inventory, but the management always concern its competitors who can bring the better product and service base on SLHR’s ones. SLHR management also requires having strategies for long term running the organization.

The aim of this strategic analysis report is to create vision for organization in future; by identifying and analysing the major macro-environmental trends which believe the major issues affect to the future growth of SLHR. The report also quickly examines the five forces within the industry analysis to rough idea the current effectiveness of the industry and also based on evidences to expect the future profitability of SLHR. Besides, to create the advantage competitive of SLHR, all of internal operations in term of resources and capabilities could inspect. Moreover, to have an overall the difference between the desired situation and the actual situation of SLHR, a gap analysis will be point out for bringing all analysis together and base on this analysis gap, organization will have an overall difference. Lastly, it is definitely not absent in this report will be a list of recommendations which help formulating for SLHR in relation to achieve to greater its position in all markets in the future.

2. Summary of Macro Environment

Macro environment or PESTE analysis is the first step in creating the Environmental Analysis. The macro environment examines the general business climate as it relates to the organisation, but the organisation has nothing to do with it. It has an impact to influence Shangri-La Hotels by four different factors, such as Political or Legal, Economic, Socio-cultural, Technology and Environmental. These four factors had been analysed in the Appendix 1, which is based on the Shangri-La over the world.

The Global economic has more negative factors that impact the Hotels, Global Financial Crisis nowadays is one of the big issues for most of the industries around the world, as it leads recession which will affect the finance of the countries or industries. Because of the Global Financial Crisis, the unemployment rate of some countries is still increasing in the beginning of 2012, such as Euro Area...
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