A Case Study of Shangri-La Hotels Essay Example | Topics and Well Written Essays - 4500 words

A Case Study of Shangri-La Hotels - Essay Example Terrorism is a major threat for Shangri-La operations. 1.2 Economical China's economic environment is experiencing growth. The country's growth is due to the success of Beijing's stimulus package. Government relaxation of travel restrictions and the rising urban incomes makes the country an attractive market for the hotel industry. Chinese domestic and outbound travel has increased in Europe and the US economy is experiencing financial crisis and economic downturn. Unemployment is high and people are tightening their belts. Fiscal stimulus package which was recently approved is needed to contain the deteriorating public finances. Performance of the auto industry, which is the country's major employer, is currently experiencing setbacks. An economic recession and high unemployment state will greatly affect the performance of Shangri-La hotels in the region. 1.3 Social/ Cultural The Beijing Olympics of 2008 is a major influence of the country's foreign relations. It creates camaraderie among nations and puts China in the centre of event. The Olympics boosts the culture the Chinese people as well as opens up the country to the rest of the world. Although the standard of living in China is not equal between rural and urban regions, investments in the cityscapes have created urban migration and rising income. Residents in Europe enjoy a standard of living comparable to most develop countries which is due to decades of solid economic growth. The economic growth is funnelled into the development of a stable social structure. Governments are addressing the challenges posed by an aging population. The establishment of European Union creates a single market that brings in younger, working age population. US citizens have a high standard of living and greater... This essay discusses the success of Shangri-La in Asia, that can be an effective formula for successful ventures in different parts of the world. As a company that aims at competing at a global scale, Shangri-La can be a leading rival of major players in the industry. The company has more opportunities to create a diverse range of products and services. The Spa business can become more profitable as the population of develop countries age and as people become more health conscious. The researcher aims to provide a comprehensive analysis of various business, marketing and human resourcement strategies, that led Shangri-La business to success and provide some recommendations on the topic. As for the corporate level, it is recommended by the researcher that the company would exploit the growing market of China through additional projects on regions with high economic activity and tourist traffic. China is expected to grow in the years to come and the demand for hotels would also grow. T he European and American market is experiencing economic downturn. It is not recommended to focus the organisation’s expansion in these areas because of its economic uncertainty and lack of attractiveness. The researcher then concluds that a market presence can be the primary aim for projects existing in the area. It is also recommended that the company would consider backward integration strategies that would acquire travel agencies in order to boost the company’s capabilities of attracting more guests.