International Business Strategy of Shangri-La Asia - Case Study Example

?A: Although culture is oftentimes the discounted with regards to the overall impact it has upon the profitability and ultimate success that a given firm/entity can achieve, the fact of the matter is that culture within such an entity is one of the primal determinants to its success. In short, the level of integration and needs fulfillment that a firm is able to exhibit with regards to its customers can be defined in both the external and in internal analysis; both of which culture has a direct level of impact upon. From the internal dynamic, it is readily able to be determined that culture impact upon the way in which being business services are determined and ultimate products are rendered. As a direct result of this factor, businesses/organizations and entities rise or fall based upon the overall level of and effective culture that they are able to create within their respective divisions. Similarly, the external representation of culture is what impacts upon the consumers and in product/service users. As one can easily understand, and effective culture will create a positive feeling and likely generate a degree of returning consumers whereas negative aspects of culture will reduce overall sales and profitability and discourage repeat buyers of goods or services from integrating with a given company/organization within the future. As a means of understanding and defining the impact of culture plays upon a business entity, the following analysis will seek to understand the case of Shangri-La hotel group; an Asian hospitality chain that has sought to integrate its products and services into a more global market within the past several years. Firstly, due to the overall level of success that Shangri-La has been able to experience over the past several years, the reader/analyst can and should come to a unique understanding of the fact that the culture of this entity is ultimately a powerful positive motivator in determining the success that it has had in the past and will likely seek to continue to generate into the future. In short, it can be understood that the role of culture within Shangri-La holds a vitally important role in helping the firm to achieve the runaway success that it has within the broader markets of Asia. Before seeking to analyze the role in which culture has played in furthering and promoting the profitability and success of Shangri-La, this analysis will seek to briefly analyze and discuss some of the key cultural aspects that this author has selected to determine and define the level of service and success that of the far been realized. Although the following will not be an exhaustive list, it is the understanding of this particular analyst that these factors are of the utmost importance and have contributed greatly to the success and profitability that had been realized within the past several years. More importantly, as a result of a discussion and analysis of these factors, the reader can come to an understanding that in order for the firm to continue to display such a level of success and profitability, regardless of the particular market that they wish to integrate with, it is necessary for the business entity to continue to put forward these “best practices”. The term “Shangri-La” itself has come to mean a great many things throughout the world culture. However, the term is most basically understood as some type of ethereal paradise in which the eternal youth and happiness can be achieved. At an even more basic definition, within Asian cultures, Shangri-La means “eternal youth, peace, and tranquility”. Although will not be the purpose of this brief analysis to explain the means by which a name brand can promote a particular identity with regards to the consumer, as well as with regards to the derivation and promotion of a particular culture, these aspects must nonetheless be appreciated. In seeking to promote this idea of a paradise and tranquil place in which weary travelers can set their worries aside and enjoy and appreciate the solace that the hotel chain provides, the culture itself has integrated heavily with such an understanding and interpretation. In such a way, the serenity of service, reputation for calm, relaxing, and professionalism defines the culture of the brand. Moreover, as a direct result of this effective integration of culture, this particular hotel chain has been able to stand out from the remainder of a very vocal and intense group of competition and win a number of international awards based upon this model of service presentation (Shangri-La Asia Limited SWOT Analysis, 2012). However, regardless of the accolades that Shangri-La has thus far been able to accrue, it faces a very difficult and daunting challenge within the next several years. As was described in the case study, the hotel group is seeking to expand outside the confines of Asia; market in which it has achieved such a widespread level of success. Naturally, such a progression is reasonable and expected; especially due to the fact that the business model which has herein been described has resonated so well with the consumers that it has integrated with. However, the stakeholders and decision-makers of Shangri-La are faced with the daunting challenge with respect to the way in which this culture can be transmitted and presented to an entirely different group of stakeholders in entirely different geographic regions. The fact of the matter is that this particular culture might not integrate with the needs and demands of international clients in the same way that it is integrated with the needs and demands of the Asian market. Although it is possible that this may be the case, it is not guaranteed. However, deviating to greatly from the model of success and runaway profitability that the firm has been able to derive as a result of utilizing this culture would also be detrimental. Accordingly, it is the recommendation of this particular author that a great degree of market research and consumer interest be engaged prior to a firm determination being made with regards to the projection of this culture within the different markets to be integrated with. B: Tying directly and with the discussion which is Artie been approached, it must be understood that the role of training, staff development, advancement, and other factors are necessary in providing a further level of strategic implementation of whatever plan is engaged. In effect, it can be noted, outside of this particular case study, that a great and number of multinational firms seeking to differentiate themselves in different markets have seen their strategies collapse and fail as a result of improper and/or incorrect implementation of training, staff development, or advancement of key personnel. Although it is vitally important to ensure that a degree of emphasis is paid to each and every aspect of business development, it is also vitally important for the firm to realize that without their human resources, the culture which is already been defined and discussed, and emphasizing the role that the vast support mechanism that provides this profitability plays in furthering the goals and success of the entity will ultimately result in failure. Within such an understanding, this particular analysis will seek to focus upon the means by which training, staff development and advancement play with respect to the successful strategic implementation upon both a micro and macro level. One of the first and most important reasons for the primacy of training and staff development within such an entity is with regards to level of cultural transmission that can be achieved through such an end. When one stops to consider the fact that culture is transmitted not only through process but also through training and development, it can be readily understood why it is necessary for such an entity such as Shangri-La to promote such a level of training and staff development as something that is paramount to its future survival and success. As has been discussed previously, far too many firms minimize the level of importance the training of staff development has with regards to promoting a vision and shared ideal with regards to how the firm/entity should develop with the future. Without such metrics and expense spent upon seeking to engage stakeholders with this shared ideal, culture, and vision, the overall level of strategic implementation that will be seen will be greatly minimized, if it even exists at all. However, beyond just a one-dimensional view of the importance of these aspects, the question itself seeks to answer not only the role of training of staff development but also the role that advancement ways with regards to his particular publication. Due to the fact that Shangri-La is a hospitality brand, it employs a large number of minimum and low-wage employees. This factor in and of itself is not necessarily a bad thing. However, the fact of the matter is that the employment of so many low wage earners necessarily creates a potential situation in which a high level of turnover can be realized in the eventuality that there is not a degree of advancement or promotion available to the stakeholders involved. As a means of promoting a culture or seeking to achieve any level of strategic implementation, it will be necessary to engage any and all stakeholders with the understanding and belief that given the right amount of inputs and dedication, they too can advance through the ranks and better themselves within the firm. Ultimately, the hospitality industry is plagued by a situation in which stakeholders are continually and perennially shifting employment and seeking to leverage a higher salary from a competitor. Although it might not be a possibility for Shangri-La to continually compete with the other market leaders with regards to salary and benefits, seeking to create a system whereby stakeholders can realize a degree of professional and personal advancement within the firm is vital and paramount in continuing to ensure that the goals and strategies of strategic of limitation continue to be realized into the future. Finally, from perspective of future growth and development, training and development of staff capabilities, culture, and knowledge is a vital tool in helping Shangri-La to continue to develop and react to the market. Even a cursory review of the current business situation integrates an understanding of the fact that business decisions have to be made at the margins and instantaneous change within the market can portend ultimate success or failure for the brand/entity in question. Within such an understanding, the reader can come to the appreciation of the fact that training is an invaluable tool that helps to ameliorate such a risk by providing stakeholders with up-to-the-minute information and intelligence with regards to the way in which certain activities and behaviors should be carried out. Although it is true that all service industries ultimately aim to provide satisfaction among the clients that they serve, the hospitality industry is perhaps one of the fastest moving and most competitive of the service industries. Within such a way, seeking to perennially engage market desires and improve upon the quality and aspects of services rendered plays a valuable part in making indices such as Shangri-La relevant within the current system. As has been stated, many firms and entities have sought, at their own peril, to reduce the overall level of funding and time spent on such activities; thinking that in so doing they can maximize the overall level of profitability that they can otherwise achieved. However, what has been noticed in the long run, through a litany of different investigations and evaluations of such an approach, is the fact that a diminishing level of overall returns is evidence as a result of the fact that the workforce becomes increasingly detached and unengaged with regards to market pressures and realities of business the current world. Likewise, it is in the best interests of Shangri-La to seek to engage these stakeholders in an actionable manner so that training, development of skills, and advancement of these individuals can all work together towards promoting a more responsive and dynamic level of service generation within the current economy. Reference Shangri-La Asia Limited SWOT Analysis. (2012). Shangri-La Asia, Ltd. SWOT Analysis, 1-6. Read More