Business Transformation of Moevenpick Hotels and Resorts - Essay Example

 Mövenpick Hotels and Resorts AG manages 70 hotels of a total of 17,646 rooms in 24 countries in the market of upscale business hotels, holiday resorts, and residences. Business hotels are 57% of the company’s managed hotels; resorts are 32% of the company’s managed hotels and 11% cruises.
Mövenpick Hotels and Resorts AG has five regional offices in; Zurich acting as the corporate office for Mövenpick Hotels and Resorts AG and managing the region of Europe, Thailand, managing the region of Asia Pacific, United Arab Emirates, managing the region of the Middle East, and India, Shanghai, Managing the region of China and Cairo, Managing the region of Africa.
Mövenpick Hotels and Resorts AG Vision statement
“To be the preferred and most enjoyable, upscale hotel management company for guests, employees, hotel owners and shareholders”
Guest type breakdown
Africa, 71% leisure and 29% business, Asia, 70% leisure and 30% business. Europe, 33% leisure and 67% business. The Middle East, 63% leisure and 37% business. Total, 55% leisure, and 45% business.
The VRINE Model

It is an analytical framework suggesting that an organization with resources and capabilities which are Valuable, Rare, Inimitable, Non-substitutable, and Exploitable will gain a competitive advantage in the market. (Quizlet, 2012). It is, however, critical to understand what actually resources and capabilities are and how they can actually provide a firm its overall competitive advantage over other firms in the industry.

Barney (Cited in Peng and South-Western, 2008:3) defined the resources as ‘The tangible and intangible assets a firm uses to choose and implement its strategies’ while capability is a firm’s ability to make use of its resources in a highly productive way. (Santiago, 2003)

Resources can be either tangible such as land and unskilled labor or intangible such as patents, trademarks, installed customer care, the reputation of the firm, and brand. (QuickMBA, 2010). Capabilities are embedded in the routines of the firm thus they are difficult for competitors to replicate. Resources in Mövenpick that I will study such as properties, management, reputation, standards, special products (Mövenpick Coffee and Mövenpick Ice Cream) brand, and customer care system (Mystery Shopper and online guest feedback). While the capabilities are using and dealing with the standards, making use of the customer care system analytically yearly departmental audits and usage of such reports and financial reports and its analysis.