Shang-Rila Hotel Strategic Plan Analysis
Introduction: Prominence, Adversity, the Plan
Shangri-La Hotels and Resorts, as one of the most distinguished brands in the hotel industry worldwide, has earned its reputation with its dedication to high quality service. In spite of enjoying some appreciable profits and rapid development of the scale of the company in the early 1990s, there was no common core value among all the hotels. It was this concern that led to the introduction of the "Shangri-La 2000" strategic plan. In this essay, the changes in the company brought about by the plan will first be discussed, then the existence and cause of subcultures as well as the ideal way to manage these subcultures will be analyzed. The essay will end with suggestions on how the Kowloon Shangri-La hotel could succeed in becoming the dominant force in Hong Kong.
A Brief Picture of Shangri-La
Well known for its eccentric name and guaranteed quality whenever you pay for its service, Shangri-La Hotels and Resorts (SLA) is a deluxe hotel chain setting its sites in Asia founded by the Malaysian-Chinese tycoon Robert Kuok in 1971. It took 28 years for the company to expand from being started with just one hotel in Singapore to having 37 branches located in major cities and popular tourist destinations in Asia. During this period, the company saw the recognition of its excellence ever climbing and reaching its peak in 1997 when Island Shangri-La, located in Hong Kong, became the first hotel in Asia Pacific to obtain ISO14001 certification to go along with the numerous rewards the company received then and the year after.
The Environment in Asia: From Prosperity to the Asian Economic Crisis
When the first Shangri-La hotel was founded in 1971, the whole Asia was in a period of rapid economic growth and the tourism industries in the countries benefited hugely from it. The expansion of SLA was greatly facilitated by the blooming economies in the area to reach such a large scale, and the profit of the company increased
Shangri-La Hotels and Resorts, as one of the most distinguished brands in the hotel industry worldwide, has earned its reputation with its dedication to high quality service. In spite of enjoying some appreciable profits and rapid development of the scale of the company in the early 1990s, there was no common core value among all the hotels. It was this concern that led to the introduction of the "Shangri-La 2000" strategic plan. In this essay, the changes in the company brought about by the plan will first be discussed, then the existence and cause of subcultures as well as the ideal way to manage these subcultures will be analyzed. The essay will end with suggestions on how the Kowloon Shangri-La hotel could succeed in becoming the dominant force in Hong Kong.
A Brief Picture of Shangri-La
Well known for its eccentric name and guaranteed quality whenever you pay for its service, Shangri-La Hotels and Resorts (SLA) is a deluxe hotel chain setting its sites in Asia founded by the Malaysian-Chinese tycoon Robert Kuok in 1971. It took 28 years for the company to expand from being started with just one hotel in Singapore to having 37 branches located in major cities and popular tourist destinations in Asia. During this period, the company saw the recognition of its excellence ever climbing and reaching its peak in 1997 when Island Shangri-La, located in Hong Kong, became the first hotel in Asia Pacific to obtain ISO14001 certification to go along with the numerous rewards the company received then and the year after.
The Environment in Asia: From Prosperity to the Asian Economic Crisis
When the first Shangri-La hotel was founded in 1971, the whole Asia was in a period of rapid economic growth and the tourism industries in the countries benefited hugely from it. The expansion of SLA was greatly facilitated by the blooming economies in the area to reach such a large scale, and the profit of the company increased
References: Stephen P. Robbins & Mary Coulter, Management (8th edition) Centre for Asian Business Cases, Shangri-La Hotels and Resorts – Achieving Service Leadership