Shangri-La Hotel Case Study

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1 B (ii) Interpret and comment on the performance of the three companies Gross Profit Margin The gross profit margin of Shangri-LA Hotel is 16.58%, Pan Malaysia Holding is -7.15% and Grand Central is -20.87%. Shangri-LA Hotel has the highest gross profit margin compare with Pan Malaysia Holding and Grand Central. This mean that Shangri-LA Hotel controlled its cost of goods sold very well and can make a higher gross profit. Return on Equity The return on equity of Shangri-LA Hotel is 7.25%, Pan Malaysia Holding is -1.64% and Grand Central is -2.39%. Shangri-LA Hotel get the highest net profit margin that is 7.25% compare with Pan Malaysia Holding is -1.64% and Grand Central is -2.39%. Shangri-LA Hotel is effectiveness on using its equity…show more content…
According to the information, Grand Central is more liquidity than Pan Malaysia Holding and Shangri-LA Hotel. It mean that Grand Central are able to pay short-term obligation by using current assets, thus minimize the risk of experiencing financial stress or encountering bankruptcy. Quick Ratio The Quick ratio of Shangri-LA Hotel 0.684 times, Pan Malaysia Holding is 10.979 times and Grand Central is 13.14 times. Based on the ratio Grand Central get the highest compare with other two companies. It mean that Grand Central are able to pay the short-term debt and without depend on the inventory sold. Inventory Turnover The inventory turnover of Shangri-LA Hotel 28.38 times, Pan Malaysia Holding is 27.21 times and Grand Central is 8.63 times. The highest inventory turnover is Shangri-LA Hotel 28.38 times. It means that the company has more frequently to replace the inventory as compared with others. This is may be due to the company does not overspend in purchasing too much inventories or storing non-saleable inventory that can cause a waste of resources. Account Receivable…show more content…
The project committed each hotel to a 5-10-year partnership with a chosen beneficiary working on children’s health or education programmes. It is a school, health center or orphanage; the entity must require resources that the hotel can very ably deliver on. These include infrastructure support, fundraising, life skills training and even hotel apprenticeships. Yearly goals and targets are defined for a period of 10-15 years, seeing children through until they would have finished their higher education and are capable of caring for themselves and finding employment based on their own merits. Whenever possible, hotels are encouraged to look at performing hotel skills training with the goal of offering students a sustainable career, whether in or outside the hotel. Pan Malaysia
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