In 1984 when the company opened its first hotel in the eastern coast of China, the intentions of the management were clear; they wanted to take the concept of luxury hotels to the regions which had great potential but were neglected by other hotel chains. This gave the company a competitive edge on others and enabled the hotel chain to establish and maintain a reputable position in these areas. The corporate strategies of Shangri-La include functional strategies of human resource, technology and renovations while the business strategies include marketing, management and focus (Clarke and Chen 2007).
The Shangri-La hotels and resorts rely heavily on the human resources of the host countries to adapt to the local environment and there are extensive training programs to enhance the quality of service provided by the hotel in various countries. The training programs of the company include leadership development programs and advanced hospitality management programs. The company also incorporates technology into hotels to enhance the level of service and it has a state of the art reservations and information system. The company follows rigorous renovation programs to ensure that the condition of the hotels remains excellent and pleasurable. Globally the company managements’ goal is to expand further into the North American and Middle East markets while increasing business in China which accounts for a major share of the company’s hotel and resort portfolio.
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