Strategic Management Hospitality Organization-Samples for Students

Questions: 1.Make an analytical Comparison between two hospitality Organisations Banyan Tree and Shangri-la in terms of their strategical approaches. 2.Select a destination city of your choice and discuss the overall strategy that would help to enhance the success of the Shangri-la Hotels. Answers: The Below mentioned article has concentrated on strategic management of two hospitality organization: Banyan Tree and Shangri-la. The article has presented a comparison between the organizational structures of these two organizations. Therefore, the report has articulated some recommendations by which the organization can enhance organizational success. These two hotel and resorts has achieved desired position in the hospitality industry by its unique style of performance. The report has presented some comparison between these two organizations. 1.Shangri La is one of the renowned names in the hospitality industry. The organizational management has concentrated on expanding their business in Europe, North America. It is one of the well-planned organizations of all the time (shangri-la.com, 2017). The organizational management of Shangri La has focused on China market for global expansion, as China is capable of drawing the attention of tourists from the various parts of the world. The number of tourists is growing high day by day. The organization has adopted all the modern facilities and techniques to grab the attention of the tourists. The organizational management provides training to their staffs for providing quality service to their guests. As leaders aim at providing quality service to the local people, the organization provides cultural training to their global and local staffs, so they can easily adopt the local culture. According to the organizational management of Shangri La, employees are the key component of the organizational structure, they believe in investing on employees. According to the organizational authority, employees are the face of the organization. By investing heavily on the employees, they want to make their employee efficient so they can serve their organization with efficient performance. The organization has left no stone unturned to meet the expectation level of the consumers. Due to the rise of various rival hospitality organization though the organization is facing various challenges in the global market, the organization has adapted all such modern techniques that can be utilized to beat the competitors. The organization has not only focused on China, they want to promote their brand in the western countries as well. The motive of the organizational head is to expand their business in all parts of the world within a short span of time. The organization has promoted their brand in the potential target market in an appropriate manner which has led the organization to e arn the desired position in the industry. According to the organizational leader of Shangri la, the main objective of the organization is to provide high quality service. They ensure that the service quality remain same while expanding their business. The organizational management is aware of the competitive nature of the market and they have designed their organizational structure accordingly. It has led the organization to become one of the highest revenue earning hospitality organization. As the organization is moving towards the western market the organization may face various issues due to the high labor market, the organization pays close attention to the fact and constructed their organizational structure according to this manner (Kandampully, Zhang and Bilgihan 2015). On the other hand Banyan Tree resort has not paid that much attention to improve the performance of the employees. The organization is mainly run by the leaders and the management (banyantree.com, 2017). The organization mainly focuses on the consumers who are looking for luxurious holiday, unlike Shangri La. They also want to provide quality service to their consumers. The organization has made its mark by taking various CSR initiatives and maintaining organizational culture. This has helped the organization to promote its brand name among the potential consumers. The organization provides spa facility to its guests which works as a major strength of the organization. The organizational management has mainly focused on Singapore market unlike Shangri La. The organizational management of Banyan tree is promoting the local art and crafts to their guests which has helped the organization to grab the attention at large scale. The design of the interior of the organization is lucrative a nd responsible for the high cost of the service. On the other hand the service rate of the Shangri La is affordable for people from all income groups. The organization has faced various barriers in the market due to the arrival of the various competitors. The main challenge that is being faced by the organizational management of Banyan Tree is the rate of the hotel and services. Due to the high price it has faced various issues every now and then (Solnet, Kralj and Baum 2015). Banyan tree mainly faces competition by the local hotel and resorts, as the organization has mainly based in the local market. This has distinguished Banyan Tree from Shangri La. The decision making process of these two organization is different from each other. While Shangri La has concentrated on global market, Banyan Tree is looking for opportunities in the local market. Shangri La considers employees as the key elements of organization and they invest greatly on their employees, on the other hand Banyan Tree leaders are mainly concentrated on the design and services of the organization. They are providing modern facilities like spa, gym. They believe, they will be able to reach to the large number of consumers by providing modern facilities to them. They have invested a huge amount of money for designing their hotels and resorts in a unique manner. By taking this unique initiative to train employees for providing high quality performance, the organizational management of Shangri La is giving tough competition to Banyan Tree. 2.Australia can be another destination on which Shangri La can concentrate to extend their business. It will be beneficial for the organization to earn long-term goal. Australia, being one of the stable and peaceful parts of the world is always preferred by many tourists from the various corners of the world (eri?, Gil-Saura and Ruiz-Molina 2014). There are various reasons based on which Australia can be chosen by the organizational management of Shangri La as the next destination for expanding business, some of them are as follows: Australia is known for its political stability. It is one of the most politically stable country on the earth. This can work as the major strength for the organization to draw the attention of the consumers. It is often evident that, tourists often dislike those countries which are suffering from any kind of political turmoil. The organizational management of Shangri La can concentrate on this aspect for expanding their business in the Australian market. Such environment is highly beneficial for the business organization to operate their organizational function. Business organizations, especially the tourism companies and the hospitality organizations look for such market that is politically stable as it puts a positive impact on the consumers behavior (Unsworth and Fielding 2014). Australia is one of the economically stable countries of the world. The economic infrastructure of the country is well-established and progressive (Buhalis and Crotts 2013). This is one of the major reasons for the Shangri La management to settle their business in the Australian market. Ever business organizations are now a days facing various issues due to the financial instability in the market. Thus, the organizational management can use this as a great opportunity for establishing a better future for the organization. It is important for every business organization to consider the price rates of the products, service, tariff rates and tax rates of a country while extending their business into that particular country. Thus, the tax rates of the Australian market is comparatively low than many other market. Due to reasonable price and strong financial structure of the country, Australia can be chosen by the leaders of Shangri La. It will draw the attention of the large number of gu ests (Fenna 2015). Australia is known for its literacy rate and the high standard of living. As the literacy rate of the country is higher than many other countries, the income level of the country is also high which is beneficial for the growth of any business organization (Shani et al. 2014). Thus, the organizational management of Shangri La needs to consider this factor while designing their organizational structure. It is often evident that business organizations face various kinds of social barriers. However, business organizations that are established in Australia hardly face this kind of situation. The actual reason is educated citizens of Australia and their high quality standard of living. Local community plays a vital role in the development of the every business organization. They need to maintain healthy relation with the local society to run the business organization successfully. Thus, the leaders of Shangri La must consider the fact (Barker Gale, Rogers and Willis 2015). Due to a modern and progressive society, the organizational management of Shangri La will be able to adapt modern techniques into their organization in the Australian country. Australia is one of the technologically sound countries of the world which will put a positive impact on the organizational growth of the organization (McManus 2013). All leading business organization is incorporating modern technologies to match the satisfaction level of the consumers. This has increased the competitive nature of the market. As the country always embraces innovative techniques and technologies, it will influence the growth of Shangri La (Dwyer et al. 2013). The organizational management must consider the fact that Australia is one of the preferred destinations by the tourists from various parts of the world. The scenic beauty of Australia is capable of drawing attention of large number of travel explorers which is highly beneficial for the growth of the hospitality organizations in Australia. Apart from the natural disasters of Australia, it attracts a large number of tourists from various parts of the world every year. It has provided a great opportunity to the hotel and resorts owners of Australia to expand their business and increase the profit margin. Thus, the organizational leaders of Shangri La will be able to put a strong footprint in the hospitality industry by expanding their business in Australia. Travel lovers often choose for their short and relaxing holiday. According to the reports, 3.0% of total Australian GDP depends on the tourism business. It is important for the hospitality organizations to choose a place which is ca pable to catch the attention of large number of tourists. Thus, it will be beneficial for the organizational leaders of Shangri La to earn desired position in the market (Ruhanen and Shakeela 2013). Due to educated and financially stable society, Shangri La can provide its service to the local consumers as well. It has provided a great opportunity to the organization to enhance their profit margin by providing quality service to the local natives. The organizational management of Shangri La needs to concentrate on this aspect to expand their business in Australia (Mistilis, Buhalis and Gretzel 2014). Due to high population rate in Australia, Shangri La can easily appoint skilled and well-trained employee in the organization who can contribute for establishing a better future for the organization. As the organization pays close attention to the performance and skills of the employees, it can become one of the major reasons for the organizational leaders to extend their wings in the Australian market. The organizational management will be able to meet the expectation level of the consumers by appointing educated and skilled employees in the organization (Pham et al. 2013). The rules and regulations of Australian government is beneficial to run any business. It is important to have flexible rules and regulations in the country to operate any business organization successfully. Due to transparent government policy, Australia is often preferred by various business organizations. Thus, it will be helpful for the owners of Shangri to run their business in the Australian market and maintain the profit margin of the organization (Morrison and Pickering 2013). As per the previous discussion, it can be concluded that Shangri La has made its mark by adopting many innovative strategies and investing heavily on the employees, as the employees are the key elements of the organization. This has distinguished it from Banyan Tree hotel and resorts. While Banyan Tree has implemented modern facilities in the organization to provide luxury holidays to their consumers, the organizational leaders of Shangri La has aimed at providing quality service with a touch of local culture to the guests. 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