Shangri La

Topics: Strategic management, Hotel chains, Hotel Pages: 8 (2482 words) Published: November 20, 2012
In this project I intend to analyze the complex case of Shangri-La hotel chain a company mainly situated in the Asia pacific but also in some regions of Europe, North America and Australia. I will explain its business strategy making an external analysis about the macro environment, the industry environment and the competitors. I will then try to find some ways to improve the company’s financial and strategic performance and its contribution to a sustainable competitive environment. To continue I will perform an internal environmental analysis finding the strengths and weaknesses of this organization, prepare and evaluate alternative strategies and decide on the best strategies for achievement. I will generate action plans for strategy implementation and execution taking into consideration resource allocation and control. Finally I will indentify the issues that need immediate action and try to solve the problems and propose alternatives for the company.

Company Profile

The Shangri-La hotels are a deluxe Asian hotel chain founded in 1971 in Singapore by Robert Kuok. Shangri-La gets its name from James Hilton's classic "Lost Horizon" where it is described as a paradise on earth and empowers the hotels services. The first hotel of the chain was placed in Singapore and immediately stood out from the other competitive hotels and was established as one of the most hospital and peaceful business hotels in the Asian Pacific. It has earned many rewards and recognitions from imposing publications and engineering associates. At the year 2006 Shangri-La had managed to include four key business segments: hotel ownership and operations, property development and hotel management services to group-owned and third party hotels and spas. In the 1980s Shangri-La was quickly expanded in Asia achieving to build 29 hotels in a decade. Throughout the 1990s the hotel chain was prospering following the economic flourish of Asia’s economy. As of 2006 Shangri-La was established as the largest Asian based deluxe hotel group in Southern Asia. Shangri La also decided to focus in Chinas economic advancement and invest in expanding its hotel chain in this region. China in 2006 had developed into the world’s fourth biggest economy and one of the world’s most attractive destination for tourists which meant significant opportunities for hotel development. It achieved by 2008 to expand its hotels in China from 17 to over 30. The company didn’t have China as its only focus; it also expanded to the west launching hotels after the 2000s in Australia, North America and Europe. The key executives of Shangri-La chain are the following. Khoon-Ean Kuok which is Chairman, Chief Executive Officer, Chairman of Nomination Committee, Chairman of Executive Committee and Member of Remuneration Committee. Madhu Rama Chandra Rao which has the title of Chief Financial Officer, Executive Director, Member of Executive Committee and Member of Nomination Committee. Gregory Allan Dogan as a Chief Operating Officer, Executive Director, Chief Executive Officer of Shangri-La International Hotel Management Limited and President of Shangri-La International Hotel Management Limited. Last we have the Michael Cottan and Mark Decocinis as executive vice presidents.

Company Direction

Shangri-La’s philosophy is for its guest to feel Hospitality from a Caring Family. Its vision is to be the first preference for visitors, shareholders and business associates. Its mission is to pleasure its guests every time by creating interesting experiences. The core service values respect: politeness, kindness and authenticity. Shangri-La has also some guiding principles. First it has to make certain that leadership seeks for results and to make visitors devotion a key driver of Shangri-La’s business. Also it has to facilitate decision-making for the guests and to be committed to the financial success of the company’s unity. What is more is has to generate a background...
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