Shangrila Hotels and Resorts - Case Study Example

Report for Shangri-La Table of Contents Question 3 Question 2 4 Question 3 6 Question4 8 References 11 Question In this age of tough competition and economic rivalry, survival is the most essential requirement of any concern, operating in any segment. This is because; it might help an organization of to amplify its profitability and brand image in the market among other rival players. Apart from this, sustainability might help an organization to amplify its dominance thereby reducing its fear for new entrants. However, it might be possible only if the organization undergoes varied types of planning and scheduling of ides to cope-up with varied types of challenges. Similar scenario might be observed in case of Shangri_la hotels and resorts, at the time of expansion to the regional markets outside Asia. It also had to face varied types of challenges that reduced its prosperity and brand image to a significant extent among many other rival players. Some of these challenges are described below: a) In order to offer value-added services to its customers, the organizational management of Shangri_la decided to implement varied types of task-related training programmes within the organization. As a result of which, all the staffs of the organization including front-line, middle-level and senior-level managers acquired varied types of inventive skills and knowledge that improved the reputation and brand-value of the organization. Along with this, the dedication power of the employees of the organization of Shangri_la also enhanced significantly thereby amplifying their level of performance and productivity of the organization (Franklin, 2003, pp. 212-242). Moreover, due to improved services of the staffs, the level of loyalty and reliability of the customers enhanced that proved extremely effective for the organization of Shangri_la among other existing players. b) Recruitment of skilled and qualified staffs is also extremely essential to retain the customers for the longer period of time. Otherwise, due to high-level of switchover costs of the customers, the rate of profitability and popularity of the organization of Shangri_la might get declined resulting in reduction of the brand identity and market-share of the organization of Shangri_la. Along with this, proper delegation of the duties is also another essential aspect of success. Otherwise, the organization may not prosper effectively in the markets of outside Asia. c) The organization of Shangri_la also had to face the problem to present high wages to its employees in the regions of Europe and North America. As a result, the level of profitability and total revenue structure of the organization of Shangri_la declined that hampered its effectiveness to a certain extent. Along with this, the level of liability for the organization of Shangri_la enhanced that might offer negative impacts over its value in long run. d) As the front-line employees of the organization of Shangri_la failed to take proper decisions, so it had to face varied types of operational problems. As a result of which, the organization had to face varied types of dilemmas and challenging situations thereby hampering the prosperity and reputation in long run. Not only this, the profit margin and efficiency of the organization might also get hindered thereby reducing the brand equity to a certain extent. Thus, in order to retain its effectiveness and supremacy in the markets outside Asia, the organizational management of Shangri_la decided to delegate the authority to take appropriate decisions related to operations or finance to the front-line managers. This proved extremely effective thereby paving its path for success (Franklin, 2003, pp. 326-345). Therefore, from these above mentioned points, the challenges that the organization of Shangri_la faced might be clearly depicted. Question 2 In this age of globalization and industrialization, the path of success became extremely challenging and tricky. Similarly, the organization of Shangri_la also had to face varied types of challenges at the time of expansion of its operations within the regions of Asia. As a result of which, the brand identity and supremacy of the organization reduced that declined its prosperity and popularity as well. Moreover, due to the presence of various challenges as mentioned below, the profitability of the organization also reduced. a) The great economic downturn acted as a curse for the organization of Shangri_la thereby hindering its brand image and reputation to a certain extent among many other rival players. As a result of which, the market share and market size of the organization reduced that hampered its effectiveness in the markets of Asia. b) Apart from the above mentioned problem, another significant problem faced by the organization of Shangri_la is to offer qualitative services blended with local cultural symptoms as well as exotic art. However, adapting such a culture is quite difficult for any executive of the organization of Shangri_la. As a result of which, varied types of conflicts arises within the executives thereby hindering the reputation of the organization. Along with this, as the organization failed to offer finest quality of services to its customers so their level of reliability and trust also started reducing day by day. As a result of which, the switchover costs enhanced that proved extremely worsed for the organization of Shangri_la in the market of Asia among many other rival players. c) As the staffs failed to communicate effectively with the customers, so the reputation and reliability of the organization of Shangri_la reduced significantly among other rival players. As a result of which, the level of hospitability services of the customers reduced thereby hindering the supremacy of the organization in the markets among others. And so the level of profit margin and revenues reduced that affected the organizational growth to a certain extent. d) Apart from this, adoption of all the core values to hospitality such as respect, courtesy, helpfulness, sincerity and proper communication is extremely difficult for an individual of different culture and creed. And so, he or she gets failed to offer effective services to its customers. As a result, the organization fails a wide array of customers thereby reducing its identity and distinctiveness in the market of Asia among many others. e) In order to enhance the inner skills and talents of the employees, the organization decided to implement varied types of on-job trainings. As a result of which, the level of dedication of the employees enhanced thereby amplifying the rate of retention. And along with this, the ratio of attrition also reduced. It is extremely beneficial for the organization as retention of experienced employees might prove effective in implementing varied types of inventive ideas and information. This might help the organization in enhancing its portfolio and reputation to a significant extent as compared to many other rival players of the market of Asia (Goeldner & Ritchie, 2009, pp. 567-589). f) In order to make the employees, highly knowledgeable and skilled, huge amount of investments is also made by the management of Shangri_la. This is also a great challenge for the organization in this age of economic downturn and tough competition. Still, the organizational management of Shangri_la became convinced to implement varied types of training programmes so as to offer qualitative and value-added services to its customers. As customers is the prime strength of an organization, irrespective of segments in this age of competitiveness and extreme rivalry. Moreover, customer loyalty and reliability might help an organization to survive and prosper in this age among many other rival players. Therefore, after minimizing all the above mentioned challenges, the organization of Shangri_la became able to position itself as one of the leading and popular hospitality service players in the Asian markets among many other existing contenders. And as a result of which, the level of opportunities of the organization enhanced thereby reducing the threats to a certain extent (Ivanovic, 2008, pp. 467-489). Question 3 In this age, uniformity and consistency are the prime aspects of an organization’s sustainability, operating in hospitality segment. This is extremely essential in enhancing the brand image and popularity of an organization in the market among many other rival players. It might also help the organization to enhance its rate of supremacy and distinctiveness in the market. However this might be possible only if the organizational management or chief operating officer (Symon Bridle) desires to delegate the duties and responsibilities in an effective way among all its employees. This might help in proper management and execution of the duties and responsibilities that might reduce the level of conflicts thereby amplifying uniqueness and harmony within the organization environment. Along with this, the level of dedication and commitment of the employees might also get enhanced thereby improving the rate of productivity of the organization of Shangri_la among many other rival players. Other than this, by delegating the authority of decision-making to the respective managers of different departments, the standards of performance, coordination and integration with the employees might also be enhanced to a significant extent as compared to many other contenders, operating successfully in the market. And due to effective decision-making process, the goals and objectives of the organization might also become fulfilled in an effective way thereby amplifying its reputation in the market. Apart from this, change is the most essential requirement of survival. In order to do so, an organizational management need to implement the change in an effective way among all the departments. Similarly, decision-making is the most inherent requirement of any manager or higher authority, so they need to change such visions, by delegating it to respective departmental heads (Mitchell & Caroline, 2010, pp. 432-456). By doing so, varied types of departmental problems might get easily solved after analysing it effectively. As a result of which, the brand image and supremacy of the organization of Shangri_la might be enhanced thereby amplifying its popularity in the market. This might also help the organization in amplifying the sustainability and competitive advantage in this age of extreme rivalry. However, to do so, it’s extremely essential to recruit experienced and talented staffs and managers within the organization, who might effectively utilise the decision-making power among all other juniors’ level staffs of the organization of Shangri_la. Only then, the process of decision-making might prove effective for the organization thereby presenting positive results in current and future era (Page & Connell, 2006, pp. 235-254). Thus, it might be clearly revealed that, decision-making power acts as a weapon with the help of which, an individual or a manager might resolve varied types of confusions or conflicts in an effective way (Lennon & Foley, 2000, pp. 267-284). As a result of which, the profitability and brand value of the organization might also get enhanced thereby amplifying its prosperity and brand equity significantly. Question4 a) In this age of competitiveness, employees are the prime strengths of an organization. This is because; with the help of experienced and talented staffs, the future goals and objectives of the organization might get fulfilled thereby amplifying its position in the market among others. Not only this, it is the employees, who help an organization in presenting effective services thereby amplifying the inner morale and desires of the customers. As a result, the level of loyalty gets enhanced that offers significant impact over the profit margin of the organization. However, it might be possible only if the organizational management become successful in fulfilling both primary and secondary desires of the employees. Then their inner confidence and self-esteem might get fulfilled thereby amplifying the rate of retention to a significant extent among others. Similarly in case of Shangri_la, Mr. Bridle needs to maintain the current wage structure as well as staffing levels. As it is extremely essential to offer exact job responsibilities to exact individual, then only effective results might be attained. However, in order to enhance the level of satisfaction and motivation of the employees, Mr. Bridle need to offer varied types of fridge benefits such as mediclaim facilities, transportation charges, incentives, bonuses and many others. Only then, the organization of Shangri_la might retain the employees for longer period of time as well as save them from varied types of poaching by the competing players in the markets of China. b) In order to save the employees of the organization of Shangri_la, Mr. Bridle might enhance the amount of wages. This might help in amplification of the level of inspiration and inner confidence of the employees thereby enhancing their level of performance and productivity of the organization. Along with this, it might enhance the retention power of the employees thereby reducing the attrition ratio, which is extremely worthy for an organization. Therefore, such a decision of the chief operating officer, Mr. Bridle to save the employees of Shangri_la from varied types of poaching by diverse competitors in the market of China. And it might also help the organization of Shangri_la to amplify its position and popularity to a certain extent that improved its competitive advantage as well (Cooper, 2005, pp. 313-343). c) In order to retain the reputation and dominance in the market, it’s extremely essential for the organization of Shangri_la to manage and control its employees in an effective way. This might be possible, only if the managers or leaders of the organization of Shangri_la enhanced the amount of wages of the employees on the basis of their performances. By doing so, the inner esteem and confidence of the employees might get enhanced thereby improving their level of efficiency and productivity. Along with this, the level of conflicts within the employees and higher authorities of the organization of Shangri_la may get reduced thereby amplifying uniformity and harmony among all. However, the level of staffing needs to be maintained in exact manner so as to fulfil all sorts of responsibilities in an effective way. This might help the organization to enhance its brand integrity and differentiation thereby amplifying its market share and demand in the market among many other rival players. Apart from this, the chances of expansion to various new markets might also get enhanced, which is extremely effective for the organization of Shangri_la in this age of stiff competitiveness (Buhalis & Darcy, 2010, pp.213-233). Thus, competitiveness and supremacy might be maintained only by retention of experienced and talented employees within the organization. References Buhalis, D. & Darcy, S. 2010. Accessible Tourism: Concepts and Issues. New York: Oxford University Press. Cooper, C. 2005. Tourism: Principles and Practice. London: Sage. Franklin, A. 2003. Tourism: An Introduction. London: McFarland. Goeldner, C. R. & Ritchie, B. J. R. 2009. Tourism: Principles, Practices, Philosophies. Germany: JohnWiley & Sons. Ivanovic, M. 2008. Cultural Tourism. New York: Springer. Lennon, J. J. & Foley, M. 2000. Dark Tourism. New York: Springer. Mitchell, J. & Caroline, A. 2010. Tourism and Poverty Reduction: Pathways to Prosperity. New York: Springer. Page, S. & Connell, J. 2006. Tourism: A Modern Synthesis. New York: Springer. Read More