Shangrila Hotel Singapore - Assignment Example

Shangrila Hotel Singapore Introduction Strategic Business Unit (SBU) is a future in business corporations that focuses on market segmentation and products and services offering. Business organizations take the responsibiliry of their own budgeting plans, change management in both macro and micro environment, and market performances where SBU operates (Cormier, D., & Onge 2001). Shangrila Hotel in Singapore has developed a perfect SBU that takes control of all marketsegmentation and products and services offering. The high degree of autonomy provided expressed by the hotel management has seen it succeed in its business strategies. The discussion below covers Shangrila Hotel SBU in regard to the major changes and trends that have occured. In addition, the discussion covers a summary of significant changes and trends through PESTEL analysis. Finally, an analyses of market performance where the Hotel SBU operates is discussed. Relevant Changes in the Shangrila Hotel Lixurios hotels were only visited by designated group of people in a given class. Shangrila Hotel has evolved into the most viable and profitable hotel in Singapore due to the presence of major changes in the hotel management. Shangrila Hotel has provided services available to people in all classes irrespective of income levels. In 2009, Shangrila Hotel acquired several hotels in Malasyia a step that made the organization increase the number of customers. In addition, the hotel management owned 80% of hotel in Puteri Harbour, Johor a strategy thta allowed Shangrila Hotel to increase its share stakes by 20% (Yeap 2013). Secondly, Shangrila Hotel had a significant chnage with her managerial roles. According to Tracy (2008), the hotel industry is undergoing rapid change in management through hiring technologically advanced and social responsible managers. In an effort to cope with the global competition, Shangrila Hotel hired new managers who wer proficient and competent in the hotel industry. In addition, the organization hired managers in charge of finance, marketing, and human resources in order to ensure accountability of all employees and company revenues (Shangri-La Group 2013). Thirdly, Shangrila Hotel has changed in the way of attending to customers. Customers are the source of profit for an industry, which means their environment should be well viewed at carefully to avoid certain incidences, which might be of risk to them. In the present environment, hotel customers seek humble and human places where people have respect for visitors irrespective of backgrounds (Kotler and Armstrong 2011). The hotel has practiced a strong corporate culture and personnel that ensured visitors from all corners of the earth receive quality treatment irrespective of culture, race, or denomination. Holding a strong corporate cultural responsibility has increased Shangrila Hotel competence through contributing to the high achievement. Shangrila Hotel is ranked among the top hotels in Hong Kong for quality hospitality. Moroever, the hotel has undetaken employees training programs to educate them about corporate culture and how to maintain loyalty towards customers. Relevant changes and trends in the macroenvironment (PESTEL Analysis) Organizations undergo significant changes and trends in the macroenvironment that assist in wining the competitive advantage. The following changes have taken place in Shangrila Hotel macroenvironment. Political The hotel has changed from the older strategies and adapted the newly acceptable methods in line with Singapore constitution. In addition, Shangrila Hotel has many tributary hotels aroung the globe and the management ensures every hotel operates accoring to the country’s political requirements. Economical Shangrila Hotel has changed its economic climate has changed into a more economic methods of operations. The company has a group of economic experts who provide the necessary information on the expected risks in the economic world. The hotle managment has resulted into a new method of ordering where food is only prepared after a customer’s order to minimize wastage. Social All efforts and activities in a business should have unity and focus on giving customers what they demand. Shangrila Hotel has introduced new clasification of visitors depending on culture and income levels. Initially, the company welcomed customers depending on the stars. Rich people could be accomodated in 1 star rooms while those with less money accomondated in low class areas. The new changes ensures that every one enjoys the comfort of the hotel irrespective of financial posistion. Low class rooms contain all necessary services as those of first class rooms. Technological Most hotels currently face communication problems due to poor technology, or the lack of modern communication channels. Shangrila has introduced new and modern communication methods through using the internet. The hotel has developed a website where potential customers can view and their meals online and get free home delivery services. Moroever, all Shangrila Hotel are connected with internet and customers enjoy free intenet services while enjoying their stay in within the hotel premises. The hotel management has also open several social communication sites like Twitter, Facebook, and Skype where customers post and comment about the hotel products and services (Ghemawat and Altman 2012). Environmental Shangrila Hotel has changed into an environment conservation centre in order to maintain the city of Singapore clean. The hotel follows environmement protection laws governing the disposal of waste product, and noise management. The hotel management in collaboration with the national environment management authority has dedicated days where they offer free town clean up. In addition, the hotel has changed into using environmentally friendly forms of energy like solar and windf energy for carrying out several processes. Legal Shangrila Hotels ensure they operate in accordance to the federal state rules and regulations. Shangrila Hotel management ensures all hotels within Singapore and outside the country ahve valid licences all year round. In addition, the hotel management ensures protection of corporate resposibility. Analyse Market Performance According to Weaver & Lawton (2010), organizations working under the Destination Marketing Organization should establish strategies that ensure they give high quality services to their customers needs through offering competitive prices, attracting investments in the industry, and increasing tourism operations. Singapore’s hotel industry is one of the fastest developing businesses in the world. Market Segmentation Competition is one of the factors that affect the development of all business industries (Armstrong & Kotler 2008). Shangrila Hotels has a perfectly managed market segmentation including strategic plans on cost of production and sales. Figure 1 shows the annual income data for Shangrila Hotel. From the data, the hotelm income has been on the rising level since 2007. The hotel has high profit projection in the year 2015 of more than 2,500 million U.S. dollars. The hotel management achieves the high profits through a strategic and unique marketing plan. The hotel has introduced new customer attraction techniques by holding couple and family dinners. the presence of candle lit dinners and a prevailing outside environment encourage many lovers to take their spouses out at the hotel. Conclusion Shangrila Hotel has made a lot of effort to acquire the biggest share in the sector due the increasing competition in the hotel industry. The following observable changes have created a significant impact by promoting growth and development of the hotel. In addition, the management is on the process of introducing other changes in order to prepare for future business environment chnages. References list Armstrong, G, & Kotler, P. 2008, Principles of Marketing. Pearson/Prentice Hall. Cormier, D., & Onge, S. 2001, Profit-sharing in strategic business units: a tool for performance management. Montréal: Université du Québec à Montréal, Centre de recherche en gestion. Ghemawat, P. and Altman, A. Steven. 2012, Strategies for Global Connectedness. Retrieved from: http://www.strategy-business.com/article/00139?gko=b44f7 Kotler, P. and Armstrong, G. 2011, Principles of Marketing, the Fourteenth edition. Prentice Hall. Shangri-La Group. 2013, Shangri-La Group. Retrieved from: http://www.ir.shangri-la.com/ir/en/ Tracy A. Jones, (2008) "Changes in hotel industry budgetary practice", International Journal of Contemporary Hospitality Management, Vol. 20 Iss: 4, pp.428 - 444 Weaver, D. B., & Lawton, L. 2010, Tourism management, Fourth Edition. Milton, Old, John Wiley & Sons Australia, pp. 25-30 Yeap. C. 2013, #Highlight* Changes at Shangri-La? Retrieved from: http://sg.finance.yahoo.com/news/highlight-changes-shangri-la-011105179.html Read More