Identification of organization's strategy at the corporate, business, and functional levels

Caravelle Saigon Hotel has implemented strategies for development and expansion at three
levels: corporate, business, and functional levels. Corporate-level strategy refers to the approach
or plan used by the senior management to manage and steer the entire organization (Menz et al.
2021). Caravelle Saigon wants to strengthen its business by expanding operations, so it follows
diversification as a growth strategy, which attempts to grow the organization's business by
entering new markets and products (IIhan & Durmaz 2015). The hotel opens new restaurants to
offer new dishes from a wide range of cuisines that have never appeared in SaiGon before. For
instance, the tapas restaurant offers little dishes that would have been unheard of in Saigon
decades ago. With its quarterly seasonal menus that source new things from all around the world,
the Reflections restaurant aims to create a balance between comfort food and originality
(Saigoneer 2019). Caravelle expands its operation through new restaurants and new menus that
are also distinguished among many menus in the city’s restaurants.

Business-level strategy includes the coordinated set of moves and activities made with the goals
of providing consumers with value and creating a competitive edge for the company in the
specific product or service market by utilizing its core capabilities (Nandakumar et al. 2010). At
this level, Caravelle focuses on being a differentiator in providing services that are competitive
and unique. In addition to regular and popular services, such as corporate parties, the hotel
provides such services as art auctions with renowned local illustrator Richie Fawcett. Long-
running events like the annual Christmas party have been more recently joined by live Swinger
Club band performances on Wednesdays, as well as six-night-a-week live music played by a
Living Cuba (Saigoneer 2019). Notably, Caravelle became the first art auction house in Vietnam
when holding different art auctions in its venue (Tuoi Tre News 2017). This makes the hotel
different from other hotels, creating new values and competitive edges for Caravelle.

A functional-level strategy means actions and objectives delegated to various departments to

support business level plan and corporate level strategy (Njogu & Simon 2022). At this level,
Caravelle concentrates on product and hotel function improvement. It remodeled the hotel
appearance, which mostly preserved the aesthetics. Colonial shutters and wooden fans continue
to transport guests back in time, but structural changes made staff members' jobs more
productive. The menu was changed concurrently to stay up with Saigon's cutting-edge bar scene
(Saigoneer 2019). These changes assist the implementation of new services, such as art auctions,
and attract customers to the hotel.

Menz et al. 2021, ‘Corporate Strategy and the Theory of the Firm in the Digital Age’, Journal of
Management Studies, vol. 58 no. 7, pp. 1695-1720. https://doi.org/10.1111/joms.12760

Iihan, A & Durmaz, Y 2015, ‘Growth Strategies in Busınesses and A Theoretical Approach’,
International Journal of Business and Management, vol. 10 no.4, pp. 210-214.

Njogu, K & Simon, KSC 2022, ‘Functional Strategies and Performance: Empirical Evidence
from Commercial Banks in Nakuru County in Kenya’, International Journal of Business and
Management Review, vol. 10 no. 4, pp. 17-36.

Tuoi Tre News 2017, Vietnam’s first commercial auction house opened in Ho Chi Minh City,
Tuoi Tre News, viewed 2 September 2023, <
https://tuoitrenews.vn/news/audio/20170104/vietnam%E2%80%99s-first-commercial-auction-
house-opened-in-ho-chi-minh-city/37887.html>

Saigoneer 2019, How the Storied Caravelle Balances History and Modernity, Saigoneer, viewed
2 September 2023, < https://saigoneer.com/sponsored-listings/247-hotels/17897-how-the-storied-
caravelle-balances-history-and-modernity>

Nandakumar, MK, Ghobadian, A, & O’Regan, N 2010, ‘Business-level strategy and

performance: The moderating effects of environment and structure', Management Decision, vol.
48 no. 6, pp. 907-939. DOI:10.1108/00251741011053460