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LOGOStrategicManagementinHospitalityIndustryShanghaiPudongShangri-laHotelContentsBackground&BriefIntroduction1External&InternalEnvironmentAnalysisoftheHotel2SWOTAnalysis3Three-LevelStrategiesModel4Issues&Problems5Recommendations6Background&BriefIntroductionPudongShangri-la:Foundedin1998andrestructuredby2005.Mission:TotheworldisalltheShangri-lapeople’svisionIntheLujiazuiFinanceandTradeZoneofShanghai.ItenjoyseasyaccesstobothHongqiaoandPudonginternationalairportsandisalsoclosetothesubwayconnectingPudongtoPuxi(WestShanghai).ProminentlysitedalongthefamousHuangpuRiver,theHotelhasbreathtakingviewsofShanghai'slegendaryriverfront-theBundandtheOrientalPearlTVTower.ExternalEnvironmentAnalysisAnalysisofexternalstakeholdersandthebroadenvironmentIdentificationofopportunitiesandthreatsEstablishastrategicdirectionanddevelopandimplementstrategies.Porter’sFiveForcesModelBargainingpowerofbuyersIntensityofrivalryintheindustryThreatofsubstitutesRiskofentrybypotentialcompetitorsBargainingpowerofsuppliersPorter’sFiveForcesModelIntensityofrivalryintheindustry•Resource•ThecustomergroupsRiskofentrybypotentialcompetitors•Lowentrybarriers•Styleintheirprice,serviceorqualityBargainingpowerofsuppliers•Differentiatedtheirproductstoswitchsuppliers.•ThePowerfulsupplierscaneasilyintegrateforwardBargainingpowerofbuyers•Inshortsupply•TheriseoftherentThreatofsubstitutes•Thehigherpriceitwillbe,themoreguestswillbeinatthesubstitutehotel.STEEPAnalysis1.Socio-demographicinfluences•Culture,valueandattitudeinfluencepeopletodosomethinganditwillimpactthehotel•Theage,sex,andlocation2.Technologicalinfluences•Thedevelopmentoftransportmakeitconveniencefortourists•Thehi-techinformationsystem3.Economicfactor•TheeconomicgrowthratesofChinaare=moredisposableincomeformoreconsumption•GetmorefromtheforeignerswiththeRMBexchangeratesgrowingSTEEPAnalysis4.Environmentalfactor•Paymoreattentiontothesustainabledevelopment5.Politicalfactor•Cooperationwithlocalgovernmentswhowillsetsomepoliciestoencouragethedevelopmentorregulateandcontrolthemisunderstanding.InternalEnvironmentAnalysisCorecompetenciesResourcesCapabilityResourcesTangibleresources1.StaffafterShangri-La'shospitalityoftrainingwithinsixmonths.2.ThefirstHACCPhonoredcertificationofthehotelinmainlandChina3.OwnPujiangbuildingsandhotelbuildingsconsistingofZijinbuildingResourcesIntangibleresourcesGoodbrandreputationRanksin46thplaceintheworldGoodtrainingsystemandlowstaffturnoverBetterintegrationofculturewiththehotelemployeesandemployertogrowbetter.SalaryandbenefitsarecompetitiveShangri-La'sGoldenCircle--GoldenCirclePartnershipswithmajorairlinesallovertheworldandsalesofficesinmajorcitiesCapabilityEfficiententerprisemodeofoperationsuchasHACCPcertificationandFidelioOperacentralreservationsystem.ResourcesandwealthfromShangri-laHotelManagementGroupHighemployeeloyaltyandcorporateWithCornellnetworkinstituteinonlineremotetrainingShangri-laHotel’significantcapabilityValueChain1Humanresourcemanagement3Technologyandsystemdevelopment2ProductandservicedevelopmentSupportactivitiesinfrastructure4ProcurementValueChain1Transportation3Marketingandsales2On-siteservicePrimaryactivities4RetaildistributionSWOTSWOTStrengthWeaknessThreatsLeadpositionintheAsia-pacificmarketConcentratedontheAsia-pacificmarketOldequipmentwithhighercostsLackofdiversityintheproductAgoodlocationandtransportinLujiazui16five-starhotels\inLujiazuisharethesamecustomerThebreakdownofthemarketexpansion.OpportunityHaveagrouprunsbusinesstrade,realestateandbeverageAgoodreputation(topfouramongChina'stop20hotelgroup)GoodeconomicenvironmentandthediversificationofthetourismmarketFrequentjob-hoppingandnon-loyalemployeesSWTOChina’sTop20HotelGroup1.Jinjianginternationalhotelmanagementcompany2.SixstateshotelCo.,LTD3.MarriottInternational4.Shangri-lahotelsandresorts5.ThefoundingoftheinternationalhotelmanagementCo.,LTD6.AccorGroupofhotels7.StarwoodhotelsresortsmanagementCo.,LTD8.OrientalhotelmanagementCo.,LTD9.NewAsiahotelmanagementCo.,LTD10.GloriainternationalhotelsCo.,LTDThree-LevelStrategiesModelCorporate-LevelStrategiesBusiness-LevelStrategiesFunctional-LevelStrategiesSuperiorEfficiencySuperiorQualitySuperiorInnovationSuperiorCustomerResponsivenessFocuseddifferentiationShangri-lahotelusethefocusdifferentiationstrategic.Eg.ShanghaipudongjialihotelThree-LevelStrategiesModelSuperiorEfficiencyMostadvancedreservationtechnology•leadstolowermanagementcostsandhigherprofit.Rapidlyexpansion•thenewlyopened31hotelsin2006to2010intheworld,and14hotelsopenedinChinaAperfecttrainingofemployee•aperfectemployeetrainingplanfromtheemployeestoseniormanagersestablishtalentpoolThree-LevelStrategiesModelSuperiorQualityRigoroustrainingsystemModerninternetserviceimproving•ChinesewebsiteandtheJapanesewebsite•expandedtheCHItheSPAhydrotherapy,specialhomepagesuchasthedestinationinformation.SafetyproductsystemProfessionalSPAtrainingcenter•ProfessionalspatrainingcenterprovideprofessionalemployeesThree-LevelStrategiesModelSuperiorInnovationInnovativemarketingadvertisement•producedacakewith80,and10