Shangri-La Case Study

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Shangri-La Hotels Shangri-La Hotels and Resorts is a deluxe Asian hotel chain and was founded in 1971 in Singapore by the Malaysian-Chinese tycoon Robert Kuok. The name Shangri-La means “eternal youth, peace and tranquility” and embodied the serenity and service for which the hotel chain was renowned throughout the world. As of 2006, Shangri-La had four main business segments: hotel ownership and operations, property development including commercial buildings and serviced apartments, hotel management services to group-owned and third-party hotels and spas. The company has three major issues at hand: (1) the company was expanding into high-wage economies in Europe and North America; (2) the company was expanding its presence in China-a…show more content…
These programs were taught with work situation scenarios with emphasis on common mistakes and best practices so trainees would learn to examine the way things were done at Shangri-La. Employees were also well compensated. They invested heavily in employee development making their employees very valuable. They had a three-tier compensation system; general managers were paid a base salary and a bonus based on the hotel’s overall performance. Compensation for level 2 and 3 employees was a base salary and a bonus pay that were linked to customer loyalty and employee satisfaction scores. Employees at levels 4 and 5 were offered incentives linked to property overall performance, but not to individual goals. Management Approach: as previously stated, Shangri-La used a 5-level organizational design to achieve exceptional customer service. They used this delegation of authority to ensure every aspect of the customer’s needs was met. Management was responsible for fostering the growth and confidence of its employees in order to build a more self-managing workforce. Challenges: Shangri-La faced many challenges in the implementation of its strategy. First, certain service principles meant different things to different customers. Within each country they had to adapt to the local requirements, little things that you need to pick up from each culture. It
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