Mandarin Oriental Hotel Group - Mission and Vision - Essay Example

? Mandarin Oriental History Mandarin Oriental Hotel Group is a medal endearing operator as well as an owner ofrenowned lavish hotels. The lodge headquarters is in Hong Kong and has numerous branches around the world. According to Travel and Tourism Industry News, the initial name for the hotel was Oriental. The Hotel was renamed to Mandarin Oriental in 2007. In Singapore, the hotel first opened in the year 1987. However, after a multibillion dollar renovation, the hotel was reopened in 2004. The Mandarin Oriental Hotel Group is part of Jardine Matheson Holdings limited (Kotler & Bowen 2006). The company begun when it is opened its flagship property in Hong Kong in 1963. The property was known as The Mandarin and developed into a luxurious and reputable hotel. The Mandarin International hotels were formed in 1974. The group intended to spread to the entire Asia (Kotler & Bowen 2006). The strategy was to maintain or expand the standards that had been set by the pioneer branch at Hong Kong (Smith 2010). The company expanded further and acquired property in Bangkok. The Oriental property, which was already a legendary property, was acquired from Bangkok. The management had to facilitate the merger of two strong brands to come up with Mandarin Oriental in the year 1985. From 1990, the company expanded globally and now operation in many countries (Kotler & Bowen 2006). When MOHG was launched the company publicly in Hong Kong stock exchange, there was a need for the company come up with a symbol that represented the image of the company’s elegance (Smith 2010). The elegance of the symbol would become crucial in representing the image and the charm of the group (Hiebing &Cooper 2004). The company came up with a logo through a recognized design house called Pentagram (Thompson & Martin 2005). The logo took the design of a fan. It is one of the most recognized logos in the world when it comes to the tourism industry (Thompson & Martin 2005). The company encourages all the Mandarin Oriental hotels to come up with their own unique fans to reflect their own individuality (Dobson & Starkey 1993). Each hotel is adjusted to the environment it is located and represents the goals of the company in the local environment. The company places value in originality and is keen to ensure that each branch established a connection with its local market (Smith 2010). Mission and vision The company has a vision of attaining acknowledgement as the world’s most excellent lodge grouping. It has an intention of satisfying and delight their customers (Kotler & Bowen 2006). According to Ettdgui, the company aims at escalating the operational accommodation to 10,001. The company is committed to making difference continually (Kotler & Bowen 2006). The company aims at improving to maintain its market share and revenues. According to Mandarin Oriental Hotel Group (2009), the company is committed to making a difference through employee development programs. The mission demonstrates the uniqueness of the company in terms of its approach to the target market and to remain competitive. Objectives and the Future of MOHGs The company is targeting to understand the guest’s needs by paying attention to their requests and responding with accuracy and precision (Smith 2010). MOHG hopes to be able to deliver products and services that meet the customer expectations (Thompson & Martin 2005). The company is emphasizing on accountability and sharing of responsibility in order to achieve its goals in an atmosphere of teamwork (Dobson & Starkey 1993). The future of the company as indicated its goals is to remain a market leader through training and career development (Hiebing &Cooper 2004). The company has an interest in surpassing the customer expectation through creating an experience (Dobson & Starkey 1993). The company has singled out creativity and innovation as prerequisites to remaining at the helm of the hotel and tourism industry in the world (Thompson & Martin 2005). Therefore, the company has a preference for high quality supplies who deliver quality products in time. The company is committed to increasing the shareholders value and creating a good working relationship with all stakeholders. Internal and external environment MOHG is said to have strong financial resources and intangibles. These have given the company an edge in the tourism and hotel industry (Dobson & Starkey 1993). Mandarin Oriental has a good reputation in and has built a strong brand over the years (Hiebing &Cooper 2004). According to Dobson and Starkey, goodwill and a strong brand name is necessary for the success of a hotel and tourism industry. The assets of the company rose from US $22 million to US $230 million over a period of six years (Spillman2010). According to MOHG, the intangible assets have been on the rise due to professional management and high class infrastructure and renovation (Thompson & Martin 2005). The company has a vision of providing experiences to customers and rearing loyalty through attractive offers (Hiebing &Cooper 2004). The company has accurately identified its strengths and weaknesses (Smith 2010). This was influential coming up with strategies to achieve the goals of Mandarin Oriental. Global strategy In Asia, the company has 17 hotels. The company has 10 in North Africa and Europe while, in the Americas, they are 14. The company has 13 residences in over 25 countries (Thompson & Martin 2005). The company is constantly seeking business opportunities for globalization (Fox 2010). The company adheres to corporate marketing standards and guidelines (Spillman2010). The company sets reasonable terminology and goals for all its branches around the world paying attention to the unique needs of the local markets (Fox 2010). The marketing strategy of the group includes the individual operations of the branches (Spillman2010). As a result, the company has developed a policy that unites the company as a team. This has given MOHG a consistent set of marketing directions (Fox 2010). Brand consistency can be seen from one branch to another (Thompson & Martin 2005). According to Westwood, brand consistency is a vital ingredient for the success of the hotel industry. The guests expect similar treatment at the brands sister companies (Dobson & Starkey 1993). The top management organ makes decisions that work for the sister companies across the globe (Mandarin Oriental International Limited 2009). Effective communication in the MOHG is one of its strengths. The company discusses and comes up with joint decisions that are acceptable in all sister companies. The company comes up with a plan on how each branch is supposed to be differentiated from other competing brands in the market (Thompson & Martin 2005). Market positioning remains one of the main goals of the company (Smith 2010). The strategy is communicated to the marketing teams for implementation (Spillman2010). The same decision is communicated to suppliers and public relation firms (Eisen 2006). The company believes that all these groups are party to the success of the company’s sales and marketing strategy. According to Dobson & Starkey (1993), they must know and understand the intended position of the company. Corporate Social Responsibility Mandarin oriental believes that one of the ways of satisfying guests is being responsible to the society. The company has is involved in improving the environment (Fox 2010). The company is committed to researching practical methods for conservation (Dobson & Starkey 1993). The company’s sister companies have energy conservation methods (Eisen 2006). The company is involved in improving efficiency in light saving, cleaning water and heating (Smith 2010). The individual hotels follow guidelines that benchmark and improve their performance and commitment to the environment (Spillman2010). The Mandarin Oriental Hotel group is sensitive to the environment of the locals and minimizes negative impact on the environment (Smith 2010). The company also gives back to the community through charity organizations (Fox 2010). The charitable contributions from Mandarin Oriental, New York, and last year alone amounted to $175,000. General Managers in the company are charged with the responsibility of overseeing the CSR plans is executes effectively (Spillman2010). The company has been targeting celebrities to raise donations through the company’s international advertising campaign (Mandarin Oriental International Limited 2009). The celebrities are also urged by the company to choose a charity for the company to make a donation (Fox 2010). The campaign was launched in 2001 and has seen the MOHG contribute over $250,000 globally. In 2005, the company established a foundation in the United States of America which facilitates the exchange of cultural values with Asia (Kotler & Bowen 2006). The company gave out $50,000 to show its support for Smithsonian institution during their 2007 exhibit. The company has launched the Mandarin Oriental Hotel Group Fellowship which is responsible cultural preservation and conservation (Kotler & Bowen 2006). The company believes in creating a good rapport with the society (Brotherton 2003). Arguably, Brotherton says that the company supports scholars and scientists involved in research work, in the United States of America (Kotler & Bowen 2006). MOHG supports artists from other countries in Asia who are involved in preservation and conservation efforts through the ACC MOHG fellowship (Kotler & Bowen 2006). This has caused the company to come up with modern property in France with is environment friendly. In narrow and noisy streets, MOHG equips its facilities with noise reduction material (Knowles 1996). The waste collection plan in the hotels is crafted in such a way to reduce guest disruptions. The waste collection areas have been designed with easy access (Dobson & Starkey 1993). Performance indicators are discussed on weekly bases. The consumption of electricity and water is closely monitored to avoid wastage (Smith 2010). SWOT Strengths The hotel has made a strong reputation in exquisite facilities and legendary services. The brand is recognized and has a massive customer base (Eisen 2006). The hotels always achieve awards from United States of America and United Kingdom companies. The same case applies to the majority of its sister companies (Eisen 2006). The Mandarin Oriental Hotel group facilities are strategically positioned in areas that guarantee security and marvelous views of a city or ocean (Smith 2010). This is coupled with the regular upgrades the company undergoes. A telling example is the newly constructed MOHG in Paris France. The company is known for consistency and diligence in delivery of service. Weaknesses The organization has a complex management system (Smith 2010). The group operates through chain management (Kotler & Bowen 2006). Decisions must be passed from top management to the sister companies before they can be implemented (Dobson & Starkey 1993). The chain of authority is hierarchical and high. This makes the organization bureaucratic and decision making takes a lot of time. The sister companies are required to follow the decision made by the main company (Smith 2010). The gap between to organizational leaders and employees is immense (Kotler & Bowen 2006). The company faces the threat of disunity fragmentation in terms of vision and purpose. The house keeping and front office are expected to be close (Smith 2010). However, in humongous organizations, department tend to be independent (Kotler & Bowen 2006). Poor communications between departments can be expensive in terms of operations (Dobson & Starkey 1993). The company comes under intense financial pressure during the low occupancy period (Smith 2010). This is because revenue dips and, but the expenses are and fixed costs remains constant. According to Knowles, five star hotels are capital intensive and require fixed equipments in order to offer high quality services. The global economic crisis is putting pressure to the on, the food and beverages department, and the prices of food comedies continues to escalate (Eisen 2006). Opportunities The hotel has a variety of cuisine from Asian to European and American. This enhances their modern flair. The services offered by the hotel attract both in-house and outdoor guests (Kotler & Bowen 2006). This diversification has been a tremendous strength in the growth of Mandarin Oriental hotel Group. The hotel facilities and modernized rooms can accommodate many gets attracting enormous profits for the hotel (Kotler & Bowen 2006). The hotel has superb conference facilities and can host multiple events leading to increased revenues (Spillman2010). The emerging new opportunities are expected to be a boost to the hotel. According to Chon, the emerging target market includes female business travelers and children in the family market. Mandarin Oriental Hotel group is expected to come up with products that target this emerging market. Students are increasingly becoming interested in the hotel and tourism industry (Eisen 2006). This is paving the way for increased specialization and professionals in the hotel industry. Consequently, Mandarin Oriental Hotel Group easily gets qualified personnel and specialists. This has facilitated the expansion plans for the hotel (Smith 2010). The productivity of the hotel is set to rise (Dobson & Starkey 1993). The hotel has the chance to increase its revenues by expanding to new market like Africa and South America. Technology has provided guests with the opportunity of making online bookings leading to increased effectiveness (Kotler & Bowen 2006). The hotel has a vibrant marketing team on social media, thanks to globalization and emerging technology. Threats: The MOHG revenues are subjective to the behavior of the consumers. When guest fail to select the facility, the revenues are affected (Eisen 2006). The hotel is compelled to create unforgettable experiences with the customers. The hotel companies are coerced to advertise intensely (Eisen 2006). This becomes an extra-expense to the company. A slight mistake may prove to be costly to the hotel. The revenue for Mandarin Oriental Hotel Group depends on reputation (Kotler & Bowen 2006). The hotel and tourism industry is growing, and this is creating intense competition for the market place (Kotler & Bowen 2006). The hotel is surrounded by strong brands, which offer attractive offers. Stiff competition causes the supply to exceed demand leading to losses. It takes time to build quality facilities and customers (Dobson & Starkey 1993). The capital base is enormous in the hotel industry, yet the revenue generation is gradual. According to Mandarin Oriental International Limited (2008), the occupancy in the year 2008 was low by 9 per cent in comparison to 2007. The threat of global terrorism has impacted the hotel industry negatively with travel advisories being imposed in some local markets leading to low revenues (Kotler & Bowen 2006). The Hotel has also been forced to invest heavily in the security of its guests. The European economic crises that is shared with the American economic crunch has poses a threat to the successful Hotel group (Kotler & Bowen 2006). The purchasing power of the guests has been significantly reduced. Strategy of the future According to research, targeting the family market is likely to attract visitors who travel with friends and relatives. Trends show that women are more economically empowered than in the past (Kotler & Bowen 2006). Female guests need exclusive treatments, which can be backed through promotional campaigns (Mandarin Oriental International Limited 2009). The hotel can introduce programs like spa which are friendly to female guests at a reduced cost (Dobson & Starkey 1993). Focus should be placed on short term family breaks that include children (Kotler & Bowen 2006). According to a report from Family Travel Forum, hoteliers need to focus on new target markets. The satisfaction of children is vital in the family target market. Studies show that when children are not satisfied, none is happy in the facility. Hoteliers have to diversify into just for kids amenities. Market penetration: Mandarin Oriental Hotel group needs to come up with new market penetration strategies (Kotler & Bowen 2006). The group needs to venture in places that can attract guests with affordable prices (Dobson & Starkey 1993). The hotel can develop facilities that befit the economic status of the domestic markets in many parts of the world (Smith 2010). Innovation and technology have redefined Strengths Nice views Reputable brand Prize winning Good scene Weaknesses Resources -demanding industry Difficulty in coordination and communication Price fluctuations Opportunities There are new target markets The organization is labor intensive Growth in university hospitality courses Threats The supply exceeds demands The interdependency of the hotel accommodation Mandarin corporate and business strategy According to Mac Joseph, a senior manager at the mandarin hotel group, the social media helps the company to connect with customers closely. The company used relay on advertisement and direct marketing (Thompson & Martin 2005). The company used to respond directly to customers who needed the services of the company’s property (Knowles 1996). According to Knowles, the company has increased the touch points with an infinite number of real time channels due to technology (Kotler & Bowen 2006). This has led to increased revenues (Smith 2010). The company has forged strong ties with audiences through the social media (Eisen 2006). The guests can access the hotel through the social media and give feedback (Thompson & Martin 2005). This has improved the image of the hotel. Mandarin oriental hotel group has increased its digital footprint of its brand with the help of technology (Thompson & Martin 2005). The company has made deliberate attempts to increase the interconnection of brands and confluence. This causes the property to operate as a unit (Mandarin Oriental International Limited 2009). Technology has brought al the departments of the hotel group under one umbrella. The company tries to demonstrate its uniqueness through the digital platform (Thompson & Martin 2005). The information technology department of Mandarin Oriental Hotel group has a different face book pages with unique features (Bowen 2002). It is possible to start the booking process through the social media. The hotel is keen to create a unique brand and expand its influence through the use of technology. Success factors for future and strategic choices Mandarin Oriental Hotel Group has embarked on a campaign to empower the manpower and talent with an aim of executing its global development strategy (Kotler & Bowen 2006). The company is planning on developing exceptional facilities and investing in its employees (Kirby 2010). Mandarin Oriental Hotel Group is investing in long-term share value and maximizing on profitability (Kotler & Bowen 2006). The legendary services offered by the hotel receive regular international recognition through awards (Thompson & Martin 2005). The hotel is considering expanding its repertoire of mobile services (Hiebing &Cooper 2004). This is supposed to increase its effectiveness in communicating with guests directly (Kotler & Bowen 2006). The luxury brands have to keep up with rapidly expanding technology world (Dobson & Starkey 1993). However, the company has been investing in marketing through mobile devices, which are mostly hand held. According to Mandarin Oriental Executive, the use of handheld devices is becoming a requirement for survival in the marketing of the company. The company has developed a mobile website and iPhone application. According to Mandarin Oriental’s e-commerce manager, the hotel has developed a large content management system. The data is streamed through different platforms (Dobson & Starkey 1993). The company has reuses the most relevant content in the digital platforms. This has made easy for the content to be consistent and has averted any mix up. The main constraint has been the assumption that the marketing theories (Kotler & Bowen 2006). The company strategic team acknowledges that it is indispensable to consider what other luxury hotels are doing. However, the most appropriate direction is research based (Thompson & Martin 2005). Different markets have different needs (Thompson & Martin 2005). The company is known to follow up customers using a personalized approach. The marketing department’s uses personalized written responses to every card (Kotler & Bowen 2006). When the department receives letters, the department responds to customer concerns with urgency and precision. Mandarin oriental hotel group phones customers as a follow up service (Kirby 2010). The company leaves no doubts in making guests know that they are fully appeared by the management of the company (Hiebing &Cooper 2004). The company builds on the comments of the guests to improve on the services they offer. This aims at satisfying the customers and giving them a memorable experience. Mandarin oriental hotel group explains to the guests the changes that they effect if they find it necessary (Mandarin Oriental International Limited 2009). The mandarin Oriental Hotel Group has embarked on an expansion program (Gray &Liguori 1990). The hotel has announced the opening of new branches in China (Thompson & Martin 2005). The company has several branches in China. They include Beijing, Shanghai, and Guangzhou over a period of eighteen months. The company has embarked on a mainland branch at Chengdu by the year 2015. According to Hobson, the company is on a mission to be a Mega hotel chain. This should not compromise the quality of service offered by the hotel. The company is using the new strategy to assert its influence on the international market (Kotler & Bowen 2006). The Mandarin Shanya is a well know holiday resort. It is on an island and is a keen destination in the Chinese marketing hub. The Mandarin Oriental Hotel group in China is building in populated places (Thompson & Martin 2005). The hotel has over two hundred and ten residences with are not far from the Shanghai stock exchange (Dobson & Starkey 1993). The hospitality industry in china has come under intense pressure due to an accident during a fireworks show. This happened near Mandarin Oriental Hotel Beijing. However, the management of the hotel insists that the intense focus will not deter their expansion strategy in China (Kotler & Bowen 2006). The company is keen is offering bespoke services (Kirby 2010). The company is keen to offer customized services to the Chinese guests just like in the Mandarin Oriental Hotel Paris. The company is keen to win Chinese speaking guests (Thompson & Martin 2005). The hotel is offers services that are geared towards the preferences of the local market (Dobson & Starkey 1993). The hotel offers a variety that has earned the admiration of the international market (Kirby 2010). The hotel has a large market share in many parts of the world. This has been attributed to the ability of the company to operate as a group of companies (Gray &Liguori 1990). Each sister company has a unique product that endears the premises to the guests . The company is keen on training the workers to enhance their skills and ability to deliver quality services at all times (Thompson & Martin 2005). The human resource departments of the Mandarin Oriental Hotel group are careful to hire professionals who are experienced in the hospitality industry (Kirby 2010). This has earned the hotel strong liking among guests. The company strives to give guests an experience during every visit (Gray &Liguori 1990). The company’s follow up team is working hand in hand with the information department to ensure that mobile marketing has been maximized. The company is keen to develop an application of iPods that is supposed to market the hotel to guests at a personal level (Kotler & Bowen 2006). This is in line with the wide strategy on Mandarin Oriental Hotel group to expand mobile marketing. According to a manager in the hotel, the future of the company depends of digital marketing. The company is, therefore, investing in the information technology (Kotler & Bowen 2006). The management has announced a move to revamp its current website and make it interactive (Gray &Liguori 1990). This shall consolidate the company in its quest to be the best luxury hotel group. The company is targeting many resorts and working on expanding the group of hotels (Kirby 2010). The company believes in offering personalized services to each guest. This has been profitable in the Chinese market (Thompson & Martin 2005). The company selects the designs for the hotels professionally. According to the company’s strategic plan, the public outlook of the company is crucial if the company is to have an impact in the global market place. According to Michael Hobson, the marketing officer at Mandarin Oriental Group, the priority of the company is to offer quality not quantity. The company has been co-working with celebrities with an aim to promote its corporate social responsibility. The move has made it swift for the company to enter in new markets (Gray &Liguori 1990). According Gray & Liguori, the company trains local celebrities in local markets and the assist in introducing the hotel brand in to new markets. The company conducts researches before entering into new markets (Hiebing &Cooper 2004). Kirby urges that the marketing managers perform annual assessment of the organization. According to Bowen, the process of marketing is intensively thought through before execution (Gray &Liguori 1990). The marketing team in Mandarin Oriental is trained to work as a team. Through the team approach in marketing, the marketers have developed dynamic strategies from their peers (Kirby 2010). According to Kirbly, the hotel has incentives that make the employees serve their clients with the satisfaction (Gray &Liguori 1990). The incentives include paying well and giving excellent treatment to the workers at all level (Hiebing &Cooper 2004). The human resource department of the hotel believes in talent management and reward system to the best employees. These employees are able to develop their career with working with this award endearing lodge grouping (Thompson & Martin 2005). The MOGH has grown to be an acreditable brand in the luxury industry. This has earned the hotel customer confidence and led to increased profits. The rapidly changing market place and new market entrants have caused the hotel management to diversity its strategies to remain a destination of choice (Hiebing &Cooper 2004). The new focus on the Chinese market aims to boost the revenues of the company by the year 2016. The company believes the Chinese market is likely to usher new growth and add the company’s new market achievements. In conclusion, the Mandarin Oriental Hotel Group has been aiming at redefining the hotel industry. The company closely monitors its competitors and is strategic on which direction to take. The hotel has an intensive plan to monitor and control the internal and external factors that affect the profitability of the hotel. The company has diversified its products and is keen on maintaining its market share through excellence in offering services. The hotel has made strides in the information technology investment. The company is spreading into new market places and developing state of the art facilities. The hotel has a strong corporate social responsibility programs that incorporates celebrities. The hotel is committed to environmental protection. A telling example is the Mandarin Oriental Hotel group facility in France. The company has invested room entertainment and cutting edge technology. The company has facilities situates in attractive places. The guests enjoy quality services and a feeling of status. 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