Table of contents Title o o o o o o o Page Overview 1 2

Board of Director

Shangri-La Culture 3 Philosophy Vision 3 Mission 4 4 5 3

Guiding principle

Product and Services Company Analysis 6 SWOT analysis Location analysis Forecasting 7 Competitor 9 Current issue 10 6 6

Recommendation 12 Conclusion 12

References 13

Overview Shangri-La Hotels and Resorts is the worlds largest Asia-based luxury hotel group, welcomes business and leisure travelers with award winning Asian hospitality. Shangri-La Hotel and Resorts began in year 1971 with the first deluxe hotel in

Singapore. The group now has 52 deluxe hotels and resorts located in Asia and Middle East cities. There are new properties under development in Europe and North America.

Shangri-La Hotels and Resorts group has several brands name, Shangri-La City Hotels Shangri-La Resorts Traders Hotels Chi, The Spa at Shangri-La

Besides this, the group also provides services at two of the Asias most well known clubs, the Aberdeen Marina Club in Hong Kong and the Xili Golf and Country Club in Shenzhen, China.

Shangri-La Traders Hotel, Penang is one of Traders Hotel of the group in Malaysia. Shangri-La Traders Hotel, Penang is located in the heart of the Georgetown. Shangri-La Trader Hotel supported by superb meeting facilities, a modern business center and a fully equipped fitness center. The rooms and suites offer a complete range of amenities that one would expect from a 5 star hotel.

Shangri-La Traders Hotel, Penang is one of the topnotch award winning traders hotels.

Board of Director Recognizing that a passion for excellence cascades from the upper levels of an organization, Shangri-La Hotels and Resorts has carefully selected the members of it executive team [2]. This shows that high level manager need to have a very good conceptual skill, and able to forecast things will go to happen in the future. This will lead the company to a better future.

The members of executive team are Mr. Angelini, Giovanni - chief Executive Officer and Managing Director

Mr. Rao, Madhu Chief Financial Officer Mr. Ng, Alan S.F. Senior Group Director of Projects Mr. Waechter, Martin F Chief Marketing Officer Mr. Bridle, Symon Chief Operating Officer Mr. Jin, Jian Ping Executive Vice President Mr. Sekerciogle, Cetin Vice President Ms. DeMotte, Elizabeth A. Vice President, Public Relations Mr. Tan, Eng Leong Group Director of Human Resources Mr. Offe, Jean Michel Group Director of Food and Beverage Mr. Rao, Anand Chief Information Officer Mr. Wikinson, Jim Vice President, Procurement Ms. Cheah, Caroline Group Director of Rooms Mr. Fankhanel, Max Group Director of Engineering Mr. Ram, S. S. Mohan Vice President, Finance Mr. Kuok, Khoon Tsen Group Director of Projects Mr. Hediger, Marc Senior Vice President Development Mr. Inns, Brendan Quality Assurance Ms. Angeles, Peggy Vice President Marketing Ms. Chen, Sarah Vice President Marketing, Projects Mr. Paw, Sunny Vice President Sales & Marketing Mr. Frost, Austin Vice President, International Sales

Shangri-La Culture Philosophy Shangri-La hospitality from caring people [1]

From the philosophy of the Shangri-La Hotel, it shows that they want provide warm services to their customers. Mostly, people will stay in hotel is due to they are away from their home from other state, or from overseas. Having this philosophy, so that the services provided will let the customer feel like being home but the feeling of a stranger in a strange land.

Vision The first choice for customers, employees, shareholders and business partners [1]

Vision is the ability to foresee what a company wants to do and what they want to be. For the Shangri-La Hotels vision that stated above, shows that they want to be the first choice for their customers. As we know, every business is depending on customers. None of the business will survive without customers. When they able to attract more customers, it makes them to earn more in their business. Besides this, the reputation of the company will be increase as well, due to it able to provide excellent services to customers.

Employees mostly will stay in one company is due to the company has a good management, a lot benefit to them, provide them space for innovation, a good environment for them to achieve their career goal. This kind of environment will able to attract more talented, professional workers to work with them. Having good colleagues is a great advantage for a company. Its able to make the company business grow.

When come to the shareholders, they play a big role in a company capital. A company issue shares, is due to they want to increase the company capital, so that they able to expand their business. To have business partners, it makes the company business grow as well.

Mission Delighting customers each and every time [1]

Mission is defined as a specific task that a company decided to do and also tell that why the company exists. By accomplish the mission will lead the company to achieve the companys vision. As can see the mission of Shangri-La is to delight customers each and every time. Once they able to achieve this mission automatically will attract more customers. All those that discuss in the previous title, vision, will be achieved, once able to attract more customers.

Guiding principles [1] Ensure leadership drives for results Make customer loyalty a key driver of business Enable decision making at the customer contact point Be committed to the financial success of own unit and of company

Create an environment where colleagues may achieve their personal and career goals. Demonstrate honesty, care and integrity in all relationships Ensure policies and processes are customer and employee friendly

Be environmentally conscientious and provide safety and security for customers and colleagues

Those guiding principles that show above are guideline for the whole company to follow. This will lead them to achieve the companys mission and vision.

Product and Services Shangri-La Hotels and Resorts group is in service business. They provide different kind of services to meet the customers requirement. As mention before, the group has four kinds of hotel and resort. They are as below,

Shangri-La Hotels Shangri-La Hotels is mainly target to those busy travelers. It is a five star luxury hotel in premier city addresses across Asia and the Middle East.

Shangri-La Resorts It is a place that allows travelers and families to relax, renew. It located in some of the worlds most exotic destinations. It also allows their customer to choose from a range of vibrant cultural experiences, recreation activities and dining option.

Traders Hotels It is to target those value conscious travelers. It provides high quality accommodations with value for money. Traders Hotels is located in major business centers in Asia and the Middle East.

Chi, The Spa at Shangri-La Chi, The Spa is where the traveler allows relaxing and restoring balance and harmony to mind and body. The private spa suite tat includes a changing area, spa shower, bath and steam.

Those brand name hotels that mentioned above provide more choices for the customers. Customer able to base on their needs, expectation, and value to choose which type of hotels or resorts they want to stay in.

Company Analysis SWOT analysis The strengths that make Shangri-La Hotels and Resorts be one of the top of the list of hotel are due to the leadership and management skills. Besides this, Shangri-La has won more than 120 awards till year 2006. These awards build up the Shangri-La reputation in hotel field. And this good reputation becomes one of the strengths that able to compete with their competitor. Besides this, Shangri-La strategically located their hotels and resorts in the world famous city, tourism destination, and worlds most exotic destinations. This gives them great advantage to attract more customers. Best MICE Facilities and Service Hotel, Travel Weekly, this is one of the awards won by Shangri-La. This proved that they provide excellent services to their customer.

Strengths are not the only thing that Shangri-La has, they also good in holding opportunities. They start their business in those growing market like in Beijing. The hotel that expanding in North America, that at the heart of the city and near to downtown offices, shopping mall, restaurants, theatres, convention centre, and world famous Stanly Park. Spa is one of the culture that getting famous in Malaysia. So that, they come out the Shangri-Las Rasa Sayang Resort and Spa in Penang, Malaysia, to let the customer to enjoy the spa.

Compare with other hotel which at the same level, others may have a cheaper price compare with Shangri-La. But this will not become the threats to Shangri-La. This is due to their reputation and awards winning that promise customers will have the best services and the best facilities provided.

Location analysis As mention before, location of a company is very important. For hotel industry, it is a very important criterion that a hotel must consider. By using Shangri-La Hotel Penang as an example,

In West Coast of Malaysia, Penang is famed for its mix of exotic cultures. Penang is known as the Pearl of the Orient, Penang boasts grand colonial architecture alongside Chinese, Indian and Malay styles, and with its unique blend of backgrounds, enchants tourists and business travelers. Penang also has a thriving commercial district together with palm-fringed beaches and mountain.

Shangri-La Hotel Penang is located in the heart of city, Georgetown, Penang. It located ideally right in the historical city where it turns out to be a heaven for busy executives and travelers. The award-winning city hotel allows visitors easy access to the historical inner city as well as the business and commercial districts. The hotel is strategically located in the commercial hub of the city and its convenient to access to famous tourism destination such as the Penang Museum and Art Gallery, St. George's Church, Fort Cornwallis and other famous destination. Other than that, customers do not have problem in access to public transportation, due to the bus and taxi terminal are situated behind the hotel. This proves to be a competitive advantage for the hotel as customers can easily get access to everywhere they wanted by using public transportation.

Shangri-La Hotel also has direct access to one of the biggest shopping malls in Penang. The Komtar shopping complex which is one of the main attractions in Penang is located right beside the hotel. Prangin Mall shopping complex and Parkson shopping centre is also a walk away from the hotel. There is sufficient labor force as the hotel is located in the densely populated Georgetown. Therefore, shortcoming on labor force wont be a problem as the availability of labor is high.

Forecasting Forecasting is a statement about future value of a variable of interest. It helps the managers of Shangri-la Hotel enable their planning, which includes strategic planning, tactical planning and operational planning. By using forecast it also able to help managers take advantage of future opportunities and reduce potential risk. Before a manager starts forecasting, he or she must take note of a few important elements in forecasting. These elements includes timely forecast, accurate, reliable, had meaningful units, a written forecast, understandable, useful and a good forecast must also be cost effective.

Shangri-La Hotels forecasting includes forecasting the growth in tourism in Penang, forecasting the growth in transportation, forecasting the climate, and forecasting the growth in the countrys economy. These forecasting leads to one important forecast, which the demand of the hotel rooms is. The management of Shangri-La Hotel uses several methods to forecast the demand of hotel rooms. These include forecasts based on judgment and opinion, forecasting using the naive method, moving average forecast, exponential smoothing forecast, and forecasting using seasonal variations.

The forecast based on judgment and opinion relies on analysis of subjective inputs obtained from various sources such as managers and executives and through consumer surveys. The naive method is a forecast that using a single previous value of a time series as the basis of a forecast. Moving average forecast uses the number of the most recent actual data values to do forecast. The characteristics of a moving average forecast includes a number of observations in making a forecast, inexpensive and easy to understand, and it gives equal weight to all observations. Exponential smoothing is a sophisticated weighted averaging method that is also relatively easy to use and easy to understand. If the different techniques produced approximately the same result, it would definitely increase the managers confidence.

Competitor In Malaysia alone, there are about 281 hotels in this country, such as Cititel Hotel, Bayview Hotel Georgetown, Evergreen Laurel Hotel, Bayview Beach Resort, Lone Pine Hotel, Hydro Majestic Hotel, Holiday Inn Hotel, Golden Sands Resort, Sunway Hotel, Mutiara Beach Resort and much more. All these hotels compete to each other to gain more customers and be the leader in the hotel industry.

Shangri-La Hotels and Resorts will compete against its competitor as well. In order to be the first choice of the customer, it needs to have excellent service and more variety choices for customer. Because of this, Shangri-La having the mission is to delight customer each and every time, so that the worker will bear in mind that they need to provide the best services to the customer. Shangri-La also comes out four brand names of hotel and resort to target different level of people in this society. Those four brand names of hotel and resort is shown and discussed in previous title.

Current Issue Shangri-La Hotels and Resorts seem like does not facing any major problem in it business. However Shangri-La Hotels and Resorts is now expanding it business in North America. Below is the article that gets from the South Pacific Tourism Organization weekly newsletter.

Shangri-La Hotels and Resorts Expand into North America Asia Pacifics leading luxury hotel group, Shangri-La Hotels and Resorts, reinforces its expansion outside Asia Pacific with a management agreement for a five-star deluxe hotel in Vancouver, Canada in early 2008. The hotel is being jointly developed by Vancouver based Peterson Investment Group and Westbank Projects. The deluxe Shangri-La Hotel, Vancouver will be strategically located one block from the citys premier business address at Burrard and West Georgia Streets. Set in the heart of the city, the hotel is an easy walk to all downtown offices, shopping, restaurants, theatres, the convention centre, the world-famous Stanley Park, and a half a block from the popular shopping district on Robson Street. The hotel will occupy fifteen floors of a new 60-story landmark building, the tallest in Vancouver with cutting edge architectural design. The entire multi purpose complex will

showcase innovative residential living, a sculpture galleria curated by the Vancouver Art Gallery, high end retail shopping, innovative live/work condominiums, unique restaurants and the Shangri-La Hotel, all in all the best of cosmopolitan West Coast life. Commenting on the new hotel, Shangri-Las Chief Executive Officer and Managing Director, Giovanni Angelini said, It is a wonderful opportunity for Shangri-La to enter the North American market with this landmark hotel and our dedicated partners. It is an important step in the groups expansion plans outside Asia Pacific to develop Shangri-La hotels in international gateway cities around the world, targeting the prime North American market plus the fastgrowing outbound traffic from China and the rest of Asia. Ian Gillespie, President of Westbank Projects added, We selected Shangri-La to manage the hotel due to the strength of their award-winning brand and its reputation for service excellence and Asian hospitality. The group will introduce our hotel to its loyal guests including its rapidly growing Golden Circle membership and via its network of hotels and worldwide sales offices. The appointment of Shangri-La reflects our focus on becoming a major force in the hospitality industry. Peterson Investment Group and Westbank Projects have developed over $2 billion in projects consisting of over 3.8 million square feet of retail, mixed use, residential and office developments. The group is one of the most active integrated development companies on the westcoast of North America. The product mix includes luxury condominiums, urban infill housing, class A office space, neighbourhoold grocery anchored shopping centres, rental apartments and hotels. [4]

From the article above, it shows that Shangri-La Hotels and Resorts business is still growing. It also shows that Shangri-La does not simply start their business in an unknown land. They choose the location properly so they able to reach their customer easily. The hotel they set up in North America is set in the heart of the city; the hotel is just a walk away from downtown offices, shopping mall, restaurants, theatres, convention centre, and world famous Stanly Park. It makes this hotel become the first choice of traveler to North America. Business partners, as mentioned before, it is very important in a company. Once have business partner, a company business can be easily expand and gain more profit. In this case, the business partner for Shangri-La is Westbank Projects. Ian Gillespie, the president of Westbank Projects said that the reason they choose Shangri-La to manage the hotel is due to their strength of award winning brand and its reputation for excellence service and Asian hospitality. This shows that award winning is very important in one company; it will build up the company reputation rapidly.

Economy of one country also is a reason for global companies or multinational companies expand their business in that country. Once a country economy is increasing, automatically the population will be increase as well. Besides this, the daily expend of the people will be increase simultaneously. No doubt, the businesses that start here will be gaining more profit.

Recommendation Since recently Shangri-La Hotels and Resorts does not facing any problem, it proved that the management of Shangri-La is well planned. Shangri-La should stick with their current management, and have change while it necessary. By having partnership with other companies to rise up some event will help to attract more customers.

Conclusion Shangri-La Hotels and Resorts is one the large and well known hotel in the world. It consists of a big organization that plays many functions. A well planned operation management is needed to enable the organization to run effectively and efficiently. A well planned operation management approach includes getting accurate and reliable forecasting results develop a well-designed service systems, effective capacity planning, facility layout planning, location planning and quality control. Shangri-La Hotel uses these approaches to operate their hotel. This will allow them to have smoothly operated work system and help them in gaining competitive advantages as a well manage organization will gain employees involvement and satisfaction. In the mean time, it will also gain customers trust, loyalty and satisfaction. Besides that, a well systematize operation will help the organization in reducing cost and improving productivity. All these factors will determine how well the organization will turn out to be and plays an important part in ensuring organization success.

References 1. http://www.shangri-la.com/en/corporate/aboutus/mission (Shangri-La Culture) 2. http://www.shangri-la.com/en/corporate/aboutus/management (Shangri-La Management)

3. http://www.tamu-commerce.edu/mktmgt/faculty/odom/mgt307/forecast.htm (Texas A&M University Commerce) 4. http://www.spto.org/spto/export/sites/spto/news/press/newsletter26_04.shtml (South Pacific Tourism Organization weekly newsletter)