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WATERFRONT

OUR MOTTO: EXCELLENT SERVICE BEGINS WITH MEBeing the building blocks of the service and hospitality culture of Waterfront Hotels and Casinos, every employee is placed in the forefront of the service chain. As the link of the organization to its customers, employees are guided to perform vital roles in realizing common yet critical and multifaceted goals and objectives for the purpose of achieving customer satisfaction which is critical to the overall business success of the organization. The motto "Excellent Service Begins With Me" embodies the call for every employee to take a personal initiative to render quality service at every opportunity of customer contact THE 10 WATERFRONT WAYS The Ten Waterfront Ways, being a culture building program sets the tone in preparing the employees vigorously to respond to the needs to cope, survive and excel in the hospitality industry. It nurtures the groundwork for the organization to be relevant amidst changing business climate, grow, and excel in the service and hospitality industry. This program achieves to accomplish the overall objective of the mission and vision of Waterfront Hotels and Casinos, "To be the premiere entertainment and business Hotel destination committed to provide excellent Filipino Hospitality to ensure total guest satisfaction." CUSTOMER SATISFACTION IS A CORPORATE PRIORITY: For the objective of achieving customer satisfaction, management and employees of the Waterfront Hotels and Casinos are enjoined towards strategic and collaborative efforts in maintaining the organization in competitive shape. The Waterfront Ways Program sets the framework of service and hospitality culture in the Property Hotel through which management and employees take a participatory stance in mapping out a strategic and collaborative effort to be competitive in the hospitality industry. Launching of the Waterfront Ways Program officially starts the process of shaping the service and hospitality culture of Waterfront Hotels and Casinos in a Property Hotel. The program is maintained and distributed through the Waterfront Ways Leaflets which bears the mission statement of Waterfront Hotels and Casinos, slogan and the featured "Waterfront Way" or "Ways to Go" featured for the day and the Waterfront Ways Posters, designed to capture

thoughts, images and ideas conveyed by the Waterfront Ways Program. These are displayed in areas where these are highly visible to employees for their awareness about the Waterfront Ways Program to be reinforced constantly and be reminded all the time of the call to collaborative actions. 1. THINK PLEASANT, LOOK PLEASANTEvery Waterfront Peer extends a facial gesture of pleasantry to connote sincere and warm Filipino hospitality to guests, peers, community, suppliers and investors by greeting everyone with a smile. He/She compliments their peers sincerely and shows gratitude to their peers or guests for whatever assistance they have received from them. 2. TAKE THAT EXTRA STEP TO ENSURE GUEST SATISFACTIONEvery Waterfront Peer extends the gesture of service by taking extra effort than usual in ensuring the satisfaction of guests, peers, investors, suppliers and the community. To be positive about the comments and feedbacks of customers by taking extra effort in making attitudinal and organizational improvements toward achieving guest satisfaction. Most importantly, offers assistance to customers in any given opportunity that we encounter. 3. BE PRO-ACTIVEA Waterfront Peer takes the initiative to make things happen. He/She anticipate customer needs and expectations and immediately take measures to prevent customer complaints. Further, every Waterfront peer is encouraged to be open in learning new skills all the time. 4. ACT PROMPTLY & WISELYA Waterfront Peer takes conscious and collaborative efforts to be prompt and ontime in the delivery of services to ensure the satisfaction of guests, peers, suppliers, investors and the community as a whole. To be always prompt and smart in handling any given service-related interactions customers is top priority. 5. WEAR PROPER UNIFORMEvery Waterfront Peer takes pride in projecting the image of the Hotel by wearing the uniform complete with all official accessories such as belt, nameplate, head gear, etc. 6. BE A TEAM PLAYERA Waterfront Peer is always aware that a team is a group of individuals enjoined to work together in achieving a common goal. As a team member, he/she takes conscious effort to be cohesive and cooperative in pursuing the common goals and objectives of the team.

7. TAKE THE BLAMEA Waterfront Peer listens and always gives the customer its undivided attention. Remembering that most of the time, guests simply wants to be heard. To do something to resolve a problem or customer complaint on hand, regardless if it directly concerns him or not by listening intently, apologizing sincerely, coordinating and relaying issues accurately. To further appease the customer by giving him feedback about the action taken the soonest possible time. 8. CLEAN AS YOU GO, CONSERVE COSTEvery Waterfront Peer is responsible in attaining uncompromising levels of cleanliness and in making maximum use of company resources at all times by observing the 5S practices to ensure that its working area kept clean, organized, safe and systematic, recycling office supplies and other resources whenever possible. 9. COMMUNICATE! COMMUNICATE! COMMUNICATE!A Waterfront Peer takes the responsibility of keeping communication lines open and ensure the clear and accurate exchange of relevant information and feedback at all times. Know that developing proper sharing of correct information to establish coordination between departments is always paramount to the success of any undertaking, to never assume. ASK. It is always best to clarify things, confirm and give and request for feedback to concerned parties rather than to spend time undoing a mistake. 10. OBEY RULES & REGULATIONSA Waterfront Peer is a conscientious employee by being aware and respectful of the rules and regulations of the Hotel. We take time to read and understand communication materials about the rules and regulations of the Hotel and procedures observed by the department. Being diligent in observing proper and acceptable business decorum while inside the premises of the Hotel gives an efficient working environment. Cooperation with co-peers and superiors is a way of contributing toward developing a harmonious working relationship among peers. 4 Ways to Go 1, KEEP IT SHUT SAFELYSupporting the practices related to Waterfront Way # 8 (Clean As You Go), KISS (Keep It Shut Safely was established through rendering assistance in ensuring that all service and exit doors are kept closed at all times.

This Waterfront Way-to-Go takes part in protecting the confidentiality of all information relating and exclusive to the company. 2. 5 FEET RULETo Reinforce Waterfront Way 1 (Smile) & 2 (Take That Extra Step To Ensure Guest Satisfaction), the 5 Feet Rule was made which is exemplified by taking an extra mile in guiding guests, peers, suppliers, investors and the community by acknowledging a customer who is 5 feet away from where you are standing. When a guest is at least 5 feet away from you, show a pleasant gesture that would recognize the presence of the customer and would express for you to extend a helping hand. 3. SUNSET RULEBefore ending the days work, be sure to have submitted or released documents that are due for the day. Make productive and efficient use of working hours by addressing within 24 hours all concerns and correspondences that reaches your attention. To Never procrastinate to avoid causing delays in the service delivery chain. 4. NEVER SAY NEVERThis exemplifies the belief of the company that each Waterfront Employee be persistent and creative in finding a solution to any given problem. Think. There is always a better way. Always keep an open mind and respond positively to the expectations of customers and superiors.

The Hyatt
Brand Marketing Hyatts marketing strategy is designed to secure and build brand value and awareness while meeting the specific business needs of hotel operations. Building and differentiating the brand position of Hyatt and our sub-brands is fundamental to increasing Hyatts brand preference and demand, rate premium and related business imperatives. Hyatt is focused on targeting the distinct customer segments that each of our brands serves and supporting the needs of the hotels by thorough analysis and application of data and analytics.

There is a coordinated and integrated communication strategy for the Hyatt master brand and each of the sub-brands across every distribution channel. Analytics We intend to retain and maximize the potential revenue of our existing customers and expand the number of new guests through a marketing approach powered by data and analytics. Sophisticated, quantitative strategic analytics and predictive modeling identify the most profitable customers, enabling Hyatt to leverage preference in all facets of marketing. The model is currently being utilized to enhance the value of our most loyal guests, our Gold Passport members, and within three years, it will be activated throughout the enterprise. Coordinated Marketing Hyatts coordinated marketing initiatives benefit a sub-set of hotels and resorts, as well as regional programs. Cost allocation is based on the proportionate share of actualized room revenue for trailing 12 months of participating hotels in the targeted business segment. Examples include Summer Weekend Leisure and Hyatts of Florida Group Marketing.

Field Marketing The Corporate Marketing group assigns a hotel marketing manager to each hotel to help market their individual property. The hotel marketing manager then assesses the propertys business needs, issues and revenue objectives and assists in the development of the brand and promotional marketing programs.

HOTEL H2O
Hotel H20, the country's only marine-themed urban resort hotel, celebrates its second anniversary in style today by launching an array of projects, promotions and initiatives that mark it out as one of the most dynamic properties in the metro. "Though the property has been around for a couple of years, we didn't make much noise as we methodically made sure that everything turned out the way we envisioned the property to be," said General Manager Lily Santos Adrid. "Today, Hotel H20 is ready to make a splash. This is our coming-out event." From a nondescript boutique hotel when it opened on April 10, 2010, Hotel H20 has come a long way in just two years, blossoming into one of the most popular properties in the Manila Bay area, due mainly to its strategic location within the Manila Ocean Park complex. That partnership will be cemented today with the formal designation of Hotel H20 as the "official residence" of Manila Ocean Park.

The Hilton Hotel


1.New Products and services Hilton Hotel Corporation won the 'Best Customer Focus' award in November 2005 from the prestigious UK National Business Award. In a speech given by Hilton International Senior Vice President Of Marketing , Mike Ashton said that the reward recognised the new customer brand promise to 'put back a little of what life takes out' and the philosophy of 'Equilibrium' which influenced how the hotels look, how they develop their products and services and the way they behave, both with each other and with their customer. Equilibrium had been the inspiration for many of Hilton 's new products and services its team member development program such as Esprit and Hilton University exciting new bars and restaurants industry leading web based communication and the industry 's leading recognition and reward program. To enhance the overall product offering and to achieve differentiation, some new specific product development was undertaken. This included new children 's club and entertainment a new family breakfast experience, including a children 's buffet table a personalized welcome and farewell experience and the creation of discreet experiences like romance holidays and spa experiences. 2.Consistent staff training Hilton commissioned extensive research to establish that there existed a growing demand among high-spending travellers for the resort experience. Integral to the overall marketing strategy was the delivery of consistent staff training , so a resort-training program was developed which all key staff members staff members would undertake. The training program that philippagould (product development director) and mike ashton( senior V.P . of marketing for Hilton international) designed was an integrated multi-faceted package that featured a mix of workshops, videos, training on new standards, and included clearly set-out objectives. This unique approach to training facilitated the avoidance of 'one-size-fits-all' philosophy, which often proves ideal when creating a global brand, but for theresort it was vital for each to preserve elements of individuality. The training addressed every aspect of the customer journey over the 18-month development period. The service delivery was overhauled and consistency was introduced. 3.Customer satisfaction There are various ways to know whether a customer has been satisfied by the services and goods you are offering them, the purpose of

this findings is to ensure that that those customers will visit again them next time and also to see that customers feedback are positiveat all times. Customer's example tourists and government officials who visit various countries have been accommodated by Hilton hotels. Various dignitaries including presidents, ambassadors, have developed the tendency of making sure that they are booked to Hilton hotels wherever they go, they shows that they have been getting satisfaction in the process of being the guest of the hotels. Human resources department in all the Hilton hotel resorts have trained their employees to ensure they treat their guests by way of ensuring that they are handled with care right from the time they show up at the reception with their luggage's being taken care of by attendants, and the hotels have a policy of ensuring that each guest is assigned to a particular hospitable staff who attends to his or her need during the time period the customer stays at the hotel. If the Hilton hotel employee makes sure that their guests are extremely impressed with the services offered at the hotel, this will ensures that the customer are satisfied with the services. The hotel staff also package foods in accordance with the customer's needs,for instance if a customer from Asia books a hotel in another region example Africa, staff of that hotel ensure that they have all the ingredients of preparing the meal in Asian style once the customer checks in, the customer is therefore made to feel at home at all times during the stay at the hotel. 4.Innovation Hilton hotels is an international company with excellent employees who have a keen eyeto innovation, they come up with strategies that ensure that hotel stays on top, and some of the innovations include furnishing the rooms in a modern way making sure that the customer's needs are achieve. Innovative employees of the Hilton hotels are rewarded or given opportunities to further their innovation through education in institutions that offer hospitality course, innovative means that employee are given opportunities to meet and exchange ideas with other employees from resorts. Innovation assist the hotels to keep in line with the requirements of the customers keep on changing and can only be met by innovative and creative employees, the employees can be maintained by being handled with gratitude and further

training just in the same way the Hilton hotels through human resource strategy has been doing. 5.Expansion Expansion of a business is a good sign that business is operate well, when that business happens to be a hotel business which apparently is very delicate business then it can only be concluded that the management of the business is doing an unbelievable job. Hotel business is a business that is faced with so many risk , such risk include terrorism, bad weather mainly for those are located near oceans and political instability are the eyesore of any business, if the political class do not conduct themselves with a careful and a coherent mind may scare away tourists who are the backbone of the hotel business. Whenever the hotel strategizes to expand by opening resorts outside the country, then credit can only be given to the management of the mother hotel, Hilton hotel has expanded in a tremendous way. The human resources strategy of the giant hotel has been careful as to expand in areas where there is not only good business but also potential talented workers who assist in the running and flourishing of the business. Whenever locals find that international companies has not imported talent, then they identify with it by visiting and making good use of its facilities . This is an excellent strategy that the Hilton hotels has implemented over the years and therefore ensures that employees are from the same country they invest. 6.Technology Technology is indeed imperative in running of any business today. Businesses that want to stay top of things have to embrace technology. Hilton hotels have indeed taken in many technological inventions to see to it that they lessen the workload on their employees, example Customers wishing to visit any of the hotels have the leeway to make their bookings online, this makes it easier for the customer who before the embracing of technology had to write letters or make calls to make their bookings, some of the letters or calls never got through greatly inconveniencing the potential clients and making the hotels lose a lot of money. Hilton hotels have also adapted a way of hiring their employees through the internet which they refer to as Web based Solution, any potential employee has to have to meet the standards set out in the web. This saves a lot of money and time for the hotels in recruiting new workers.

7.Increasing Sales and Turnover The Hilton hotel is one group of hotels that has never had a problem with making profits. Hilton hotels has been making good business through several strategies that were recognized included reducing expenses incurring as result of incompetent employees who sometimes are a disgrace in business. Hilton has been hiring employees who are competent and this reduces expenses associated with incompetent employees, the hotel also employs employees who are loyal and those who do not engage in unethical behaviors that consume the expected profits. The Hilton Hotels has been making profits all the time , this indicates that the strategies put in place Human resource strategies have been effective and have assisted the resorts in increasing their sales and turnover and eventually higher profits.

Market Needs The Riverview Hotel offers value and benefits to our clients, over and above the standard of our facilities and affordable rates. We seek to provide our guests with an exemplary personalservice, and level of recognition that they have come to rely upon. We provide our guest witha luxurious, relaxed environment within which to conduct their business.An environment which they cannot find at our larger, more impersonal competitors. Ourguests need to know that they can develop a relationship with the hotel that will ensureefficiency, value for their money and reliability in supplying them with the support they need,when they need it. The Riverview Hotel operates in a city with a very strong sense of community, and we want to stay an integral part of that community 3.0 Marketing Strategy Our marketing strategy's objective is to communicate the unique set of services that we offerto discerning hotel guests. We attempt to direct the focus of our guests to the issues of qualityand value for the money as opposed to simply the bottom line costs associated with their stay.Our marketing strategy will allow us to communicate our brand values, develop close workingrelationships with our customers and suppliers and to identify the needs of our guests in aneffective

manner. Continued differentiation and growth are two goals we have set forourselves. Growth will take place by targeting new areas of business within both local andnational communities. 3.1 Value Proposition Riverview Hotel offers the best, most personalized service for the corporate traveler. Weinclude business essentials in every room, such as a nice desk, internet connection, wirelessaccess, and provide easy to access meeting rooms with all audio-visual and technology needsas well as catering for longer meetings. 3.2 Critical Issues We have many strengths including our differentiation strategy, our flat structure and highlyskilled and well trained staff. Our weaknesses involve the need to communicate our strategymore clearly in the external environment, our high staff turnover and training requirementsdue to seasonal fluctuations.Although there is a low to medium threat of a competitive brand entering the market, thereare also opportunities as regards the high level of dependency of our guests for our particularservice and our strong position within the community with both customers and suppliers.Critical issues for the Riverview include: Continuing to differentiate from our competition and offering added value to ourguests. Retaining our current levels of repeat business and developing further customer loyaltyin a competitive market. Attract new market sectors such as the Notown University -based business sector. Continue to be perceived as a supportive member of the Notown community.

Kabayan Hotel
Beyond Practicality Sensible accommodations don't just end with comfortable lodgings. It should extend outside the walls of every guestroom and reflect each aspect of your stay. Save more than just your money with Kabayan Hotel Pasay in Pasay City, Philippines, a property owned and managed by the Legend Hotels International Corportation. In addition to refreshing and cozy rooms, feel the warmth of a leisurely visit as our staff attends to you with a touch of famed Filipino hospitality. Avoid the hassles of being away from home as our facilities and location in the corner of EDSA Rotonda and Zamora Street bring every need and diversion within your reach. Dont settle for anything less and experience true value at Kabayan Hotel Pasay.

Sofitel
Sofitel Luxury Hotels reveals its ambitious strategic plan to elevate the brand into the premium-end of the international luxury hotel market. The brand aims to become a new global reference in international luxury hotels between now and 2010, and will become the first European luxury hotel brand. The new Sofitel creates unique contemporary luxury hotels and resorts in the worlds most attractive destinations, by the artful blending of its French origins and the very best of local cultures. Sofitel Luxury Hotels will broaden its luxury offer with the creation of two sister brands to address niche segments in the luxury market: Sofitel Legend, a collection of unique legendary properties with exclusive services, destined for travellers seeking the ultimate luxury experience; and So by Sofitel, a creative, edgy and stylish offer dedicated to a new generation of guests. Redefining The Product, And Reshaping The Network Sofitel has worked relentlessly to redefine each element of the brand, with a special focus on new luxury service standards, the food and beverage offering, innovation and design along with developing unique spas. This will mean significant investment in staff training in order to upgrade service levels. Yann Caillre, CEO Sofitel, and Member of the Accor Executive Committee, commented, The Sofitel network is being completely reviewed through a robust program to reshape our current network and to upgrade each of our hotels through extensive renovation and refurbishment. We have launched a vast new development program, and aim to improve our presence in North America, Europe, Russia, North Africa, Middle East and Asia. By 2010, we will have a very consistent network of 139 business and resort hotels in prime locations around three distinctive and clear offers to address the specific needs and expectations of luxury guests. We have a mid-term objective of 250 hotels in total. Examples of the new Sofitel Luxury Hotels include the recently launched Sofitel Wanda Beijing, the first hotel that illustrates the brands new ambitions, with outstanding design features, the Pr Lentre restaurant and a beautiful spa and swimming pool. Other recent openings include the Sofitel El Gezirah in Cairo, Egypt, and the Sofitel The Palace The Old Town, Dubai, both superbly located properties.

The pace of this revamp program will now be stepped up in order to accelerate the repositioning of the brand, and put Sofitel on the path to profitable and sustainable growth. Sofitels Unique Positioning In The International Hotel Industry The worlds wealthy population continues to grow. In value, 55% of the hospitality market offer is in the upscale to luxury segment. We can see a trend where luxury is shifting from material possession to experience. Consumers want unique sensations and pleasures, and increasingly memorable experiences. We believe that we can deliver inspired moments, and create a harmonious balance between the pleasure of feeling at home and the exquisite feeling of being elsewhere. Yann Caillre added: France is renowned the world over for its leadership in luxury and is admired for its art de recevoir. We plan to capitalize on this unique expertise and tradition, setting us apart from other international players, and firmly establish Sofitels leadership in luxury hotels. We plan to take cosmopolitan and discerning travelers to an even higher level of excellence, played through with a French touch. Human Relations At The Heart Of Sofitel Luxury Relations are at the heart of this vision and it is here that the art de recevoir will interweave intangible links between the senses and emotions of Sofitel guests. The Sofitel art de recevoir will be translated into six dimensions: an atmosphere of well-being and sensorialit; personalized service; French mise en scne with the best of local cultures; French rituals for food & wine; designed technology to uplift experience; and places where life is magnifique. Each Sofitel hotel will feature a stylish faade, an iconic lobby, inspired French Style Dcor, well-being bedrooms, inspired meeting rooms and a wellness area, with unique spas. The Ultimate Luxury Experience With Sofitel Legend Sofitel Legends will regroup legendary luxury properties, combining heritage and modernity. These prestigious hotels, already the treasures of the Sofitel network, are full of local history. Each of them is among the best in the destination, where guests will be indulged in luxury-class service such as personal Butler Services and the best chefs, ptissiers and sommeliers in the world. Each Sofitel Legend will be resplendent in atmosphere and will be distinguished by rich dcor and surroundings, fine dining restaurants, legendary bars, iconic spas and exceptional

suites. Approximately seven Sofitel hotels will become Sofitel Legend properties over the next two years: the Grand in Amsterdam, Netherlands; the Palais Jama in Fes, Morocco; the Winter Palace in Luxor, Egypt; the Old Cataract in Aswan, Egypt; the Santa Clara in Cartagena, Colombia; the Hua Hin resort in Thailand; and the Metropole in Hano, Vietnam, which will be the first hotel to open under the Sofitel Legend ensign in mid-2008. So By Sofitel, A Blend Of Style And Soul So by Sofitel is a re-interpretation of boutique hotels, with style and soul. They will reconcile design and pleasure for trend conscious consumers. Each property will be of intimate size (80 to 200 rooms) with a strong expression of the destination, a signature from renowned designers or artists and a clear focus on a highly trendy bar. The first So by Sofitel will open its doors in 2009 in Paris, replacing the current Sofitel Arc de Triomphe property, followed by So Berlin, which will replace the existing Sofitel Am Gendarmenmarkt. Each hotel will be a chapter of a global story - So Paris, So London, So Shanghai with an overall objective of 15 to 20 hotels. Creation Of A Seperate Business Unit Within The Accor Group, A New Management Team, And The Appointment Of A New Chief Operating Officer (COO) Sofitel will become a separate business within the Accor Group in order to stimulate change and ensure the successful implementation of the strategic plan. Seasoned hotelier Robert Gaymer-Jones has joined Sofitel as COO to lead a newly formed management team. In order to create a true luxury culture within the Accor Group, I wished for Sofitel to become a separate business unit, which can leverage the resources of the Group in order to best develop the brand. With this in mind, I am delighted to welcome Robert Gaymer-Jones, commented Gilles Plisson, Director and Chief Executive Officer of Accor. Marketing And Communications To Support The Brand Repositioning Marketing and communications will strongly support the brand repositioning. Already, the brand has redefined its new visual identity, clearly illustrating its vision that human relations are at the heart of luxury. Sofitel has created a symbol - the link - connecting worlds, countries and people. The new logo

embodies the new Sofitel using a contemporary, pure and simple typography. An advertising campaign will be launched during the second quarter 2008 around Sofitels new credo Life is magnifique. The roll out of the new visual identity has begun with newly opened properties, and is expected to be completed by the end of 2008. Sofitel: Re-Inventing French Elegance In Luxury Hotels Sofitel creates unique luxury hotels in the worlds most attractive destinations, by the artful blending of its French origins with the very best of local cultures. Sofitel forges a privileged bond between its staff of devoted service professionals and its cosmopolitan guests who expect and appreciate beauty, quality and excellence. Sofitel offers the best of French elegance, from food and wine rituals to bedding, design and personal care products. Hotels where life can be savored, shared with others, lived in harmony with oneself; transforming every stay into a unique and unforgettable experience. The Sofitel brand portfolio will offer clear and attractive options adapted to todays more demanding and more versatile consumers. Sofitel Legend: a collection of legendary luxury properties, defining a renewed way of living heritage and palace hotels for inner luxury driven travelers. Sofitel: World-class hotels, with French elegance, blending relationships and pleasures for todays discerning travelers in the upper-upscale segment. So by Sofitel: a new kind of boutique hotel, with style and soul, reconciling design and pleasure for trend conscious consumers.

Mariott Hotel We have worked with Marriott on several projects. The brand needs no introduction. With over 2600 properties around the world, they maintain a tight, consistent control over their brand. From hotel guest experience to marketing material. We have worked with Vancouver and Victoria BC hotels to help them communicate with different markets including leisure, convention and corporate clients. Our work has spanned multiple platforms including trade show material, print magazine ads, email campaigns and interactive work.

Shangri-La Hotel
I. Introduction The hospitality industry constitutes an economic sector with the fastest growth worldwide. At present, the industry continues to receive recognition as a profitable and progressive industry. The hospitality industry offers diverse opportunities for employees and varied services and features to customers. This means that overall industry actual and potential provisions are unlimited, which accounts for continuous shifts or adjustments contributing to industry viability. Diversity in employment and service offerings of the international hospitality industry has resulted to the higher number of people employed in the hospitality industry more than in manufacturing firms. (1998) Due to the profitability and viability of the industry, it has also evolved into one of the most competitive economic sectors ( 2000). Heightened competitiveness in the industry could draw out the untapped capabilities of hospitality firms. On a firm level, hotel managers face the challenges of shifts in its target consumer segments coinciding with changes in consumer demands, issues of liquidity, and intense failure percentage within the industry (1999). To survive, hospitality firms need to deal with all these multifaceted issues by understanding these problems and implementing appropriate strategies. To understand how well firms in the hospitality industry ensure the competitiveness of the firm, a strategic analysis of Shangri-la hotel in Hong Kong is the case in point. Shangri-la constitutes one of the top and long-standing international hotels and brands.

II. Analytical Discussion

A. Introduction to Shangri-la

Shangri-la constitutes an investment holding company focusing on the establishment and operation of hotels together with associated real estate properties as well as providing hotel management or related services. The company primarily engage in operating hotels and leasing spaces for commercial, residential and other purposes. Shangri-la was incorporated in Bermuda but its main headquarters is located in Hong Kong. At present, Shangri-la has been in operating in the industry for 36 years, which makes the company a stable and strong industry player. In Hong Kong, there are two Shangri-la hotels, Island Shangri-la and Kowloon Shangri-la. 1. Physical Resources Shangri-la carries a long-term perspective by acquiring or holding majority control over the land upon which it constructs its hotels. Kowloon Shangri-la is 100 percent owned while Island Shangri-la is 80 percent owned. Although, purchasing land is more costly relative to leasing in the short-term, the one-time acquisition cost becomes nil when spread in the long-term and when weighed against the profit derived by the company. In line with its long-term perspective, the lands acquired by Shangri-la in Hong Kong are strategically located to bring its hotels as close as possible to the target market. Island Shangri-la is located in the central business district to cater to clients engaged in business or tourists interested in scouring through the shopping district. Kowloon Shangri-la is located in the eastern district to cater to clients interested in shopping and entertainment. This hotel is also contiguous to the various forms of transportation such as the airport, trains and buses to provide greater mobility to clients. Although the hotel buildings were built decades ago, the structures were upgraded. In fact, Island Shangri-la fits with the modern buildings in the central business district while Kowloon Shangri-la is also modern but with a creative twist to fit its market environment. Both hotels are strategically located to provide a view of the Victoria Harbour to clients. The view adds value to the hotel services. Capacity is adjusted for peak and lean seasons. Island Shangri-la has a maximum capacity of 565 rooms while Kowloon Shangri-la offers 700 rooms. Based on the operations statistics for the two Shangri-la hotels in Hong Kong, the decision of Shangri-la over the capacity adjustment is more or less accurate to the market demand trends. During the regular lean-peak cycle, the actual capacity of the two hotels is at 68 percent while its actual capacity can reach as high as 82 percent during the peak season. Although, the hotels do not reach full

capacity during the regular annual cycle, the difference allows the hotel to compensate sudden surges in tourist flow during special events. Shangri-la hotels in Hong Kong are in top shape and compliant with energy and environmental regulations. As early as 1997, Island Shangri-la already received a certificate of merit for achieving high levels of building efficiency and environmental conservation. Part of the upgrading of Shangri-la hotels in Hong Kong are improvements in the technology features of the building and rooms including automation features and Internet connectivity. With the strategic utilization and integration of all the aggregate physical resources of Shangri-la hotels in Hong Kong, the hotel should be able to optimize its gains relative to the costs of upgrades and maintenance to surpass competitors. Shangri-la increased the value of its real estate assets by 5 percent in 2006 through upgrades and maintenance. 2) Human Resources Shangri-la hotels and resorts is the second largest employer among the top international hotel groups. Its 23 hotels and resorts employ around 14,885 people and by 2008, its new 12 structures would open 9,923 more jobs. The company selects its employees carefully for qualifications to match the various organizational departments and then trained for career development positions. The purpose of training, especially for executives and managers is the recognition that the competence and efficiency of lower-ranked employees depends upon the excellence of its leaders in these two aspects. This adds to the competitive advantage of this hospitality company because it is able to integrate organizational management to achieve cohesiveness within the organization. With a unified organization, strategic direction becomes easier to achieve. Shangri-las human resource has been organized into nine centres including rooms, food and beverage, other revenue areas, engineering and maintenance, accounting, marketing, human resource and security. Each of these centres is tied through collaborative relations supported by communications involving the sharing of information, airing of concerns, and resolution of issues. Although intra-organizational communication is a commonly recognized tool in business management, a number of firms in the hotel industry remain weak in communications even with international operations. Shangri-la builds its competitive advantage through the recognition of the importance of

communication in creating a strong, unified and unique value from its business organization that result to high levels of efficiency. Shangri-la adheres applies the market-driven perspective by adhering to the principle that having satisfied employees translate into satisfied customers. This means that the value accorded by the company to its human resources translates into service values that add to the satisfaction of consumers. Satisfied consumers eventually make-up the market base of the company. Having a stable pool of consumers constitutes a representation of competitive advantage, when considered relative to other market players. Shangri-la is able to set the company as a competitive firm in the hospitality industry by relying on the value contributions of its employees supported by motivations for efficiency and minimized turnover rates. 3) Financial Resources Shangri-la has a well-managed financial system. It funds its operations through share offerings, loans and its revolving cash. According to its 2006 annual report, it increased its asset value from 2,630.2 million US dollars to 2,975.3 US dollars by issuing new shares worth more than 33 US dollars together with sales of convertible bonds amounting to more than 147 million US dollars. The company offers two kinds of shares depending upon the preferred payment and other terms preferred by investors. Shangri-la manages its asset value by maintaining its brand value to draw the interests of shareholders. Investors find motivation to purchase shares based on the industry standing of a company and since Shangri-la was able to gain huge shareholder investments, this means that it is able to establish brand value and at the same time investors recognize its ability to sustain or enhance this value at least in the medium term. Investments into a company reflect the competitive advantage of Shangri-la. By using its equity assets in expansion and development projects, it was able to gain 2.1 percent giving the firm .8 million in dividend income. Since Shangri-la has twelve projects targeted for completion in 2008, the company obtained six unsecured corporate loans to fund these projects. The firm manages its debt by selecting loan arrangements with the least possible interest maturing in the medium-term to ensure immediate payment. This means that the company has to complete its projects on time and operate based on the expected cost to revenue ratio in order to meet its debt obligations. This entails

disciplined and target-directed finance management and hotel operations. Shangri-la also closely evaluates the firms loan portfolio relative to new offers and exchange rate shifts to support refinancing decision. The competitiveness of Shangri-la finds expression in its ability to obtain the trust of investors through shareholdings and convertible bonds. This means that the company has a good industry standing and it is expected to have the capability of returning the amount invested by maintaining or increasing share value in the future. Since Shangri-la was able to obtain six unsecured loans, this means that it is in good standing in the banking and finance industry as a firm that should be able to meet its loan obligations by relying upon its brand value. 4) Intangible Resources In 2002, Shangri-la Group invested 130 million US dollars to build its brand as a top international company. This value was allocated to building upgrades to develop Shangri-la hotels as rich or contemporary and marketing activities. Although, Shangri-la is an internationally known brand the company has not been able to focus on the point of difference (2007), which is the value message that sets the hotel apart from its competitors. In its China hotels, brand value is reflected by the luxury hotel message but in other hotels, it is a people hotel or bottom-line hotel. Failure to establish a unique point of difference for its hotel brand constitutes a weakness in its internationalization efforts even if points of difference stand in the particular business contexts. B. Internal Part of the Company

Shangri-la is able to achieve competitive advantage to take the position as a top player in the Hong Kong hospitality industry by building on its support activities. As mentioned earlier, the company has a cohesive organization by valuing intra- organizational communications. The company also translates this into its inter-organizational networking with local suppliers. Shangri-la collaborates with individuals and businesses that add value to its services and networking is achieved through communications in the context of the local domestic business environment. Even if networking occurs based on business context, every hotel is able to integrate with its international counterparts by

applying uniform standards for inbound and outbound logistics. By having satisfied employees, Shangri-la is able achieve high levels of efficiency in its hotels that positively influence operations as well as marketing and sales. Satisfied employees willingly contribute value more than what was expected of them, aggregate value contributions then enhance the perception of consumers on hotel value. Shangri-la also constantly upgrades its technological capability. By automating its hotel services and security operations, it was able to add value to operations and service offering. In engaging in networking, Shangri-la was abele to tap into online marketing and sales channel as well as connect to its supply networks to improve outbound and inbound logistics. C. Firm Competencies 1. Corporate Culture and Personnel Shangri-la has a strong corporate culture that revolves around the customer-based approach. This constitutes a firm competency because this greatly contributes to the Shangri-las achievement of a top position in the Hong Kong hospitality industry. By valuing its human resources, the company was able to ensure the value of contributions of organization members considering that the industry is highly reliant upon human resources. Training of employees not only ensures efficiency in service delivery but also maintain the loyalty of its employees through career development programs. 2. Operations Shangri-la operates on a target achievement basis. The company sets its short and long-term targets for completion. It then practices discipline and experience-based foresight in evaluating its level of performance and task completion. This gives the firm control towards the success of operations. 3. Marketing Shangri-la has been able to influence successfully a positive market perception of the company through consumer responsiveness. Through its market-based approach, the company is able to meet exactly the needs of the target consumers as well as add to service value. Positive reviews from regulatory bodies and independent survey companies also reinforce the positive reputation of Shangri-la in Hong Kong. It was also able to tap into all revenue-

generating marketing channels, particularly online sales to support its internationalization. 4. Capability Analysis Shangri-la has developed a number of essential and unique resources as well as essential and core competencies. The company has been able to achieve competitive advantage by developing a positive reputation in the market relative to its competitors together with the establishment of a stable consumer base. Competitive advantage also accrues to the company by developing its organizational values, particularly its customer-based and context-based operations. To remain competitive, the company relies upon its unique resources such as cohesiveness of its working units and satisfied employees while using its core competencies in maximizing service or brand value and employing targetbased approach to ensure the achievement of business objectives. Essential Resources 1. Reputation 2. Customer Base Essential Competencies Unique Resources 1. Organizational Cohesiveness 2. Satisfied Employees Core Competencies

1. Customer-Based Values 1. Value Maximization 2. Context-Based Values 2. Target-Based Values

5. Financial Plan

As mentioned earlier, Shangri-la has been able to take control of its finances through disciplined disbursement, targeting approach, and performance evaluation. This is expressed through the achievement of the company of increase in both its current and non-current assets between 2005 and 2006. The companys capital reserves and equity earnings also increased due to the ability of the firm to draw investments by relying upon its positive reputation. Although,

Shangri-la also incurred increased liabilities by obtaining loans, assets less liabilities resulted to a positive amount. This means that even with increased liabilities, its assets remains bigger than its liabilities. This further implies the viability of the company since it has the assets to cover its liabilities. In the next three years, it is expected that the Shangri-la should be able to accomplish its projects and operate its new hotels as well as well meet its liabilities. During the third year, the company should be able to concentrate on profitability after the full operations of its new hotels and the payment of all its obligations. Based on the firms consolidated income statement covering the financial periods 2005 and 2006, the company has been able to increase its revenue generation and costs. However, since the increase in revenue is greater than the increase in costs, the company earned higher profit allocated to dividend payments and operating profit. This supports the continuing profitability of the company. In the next three years, especially during the third year when the new hotels are able to operate fully, the company should increase its profitability by at least thirty percent. During the second and third years, the operating profit of the company together with external funding should support the further expansion and development of Shangri-la hotels.

III. Conclusion Shangri-la has achieved competitive advantage in the Hong Kong market due to its essential and unique resources and it continues to maintain its competitiveness through its essential and unique competencies. Since its competitiveness hinges on its ability to implement a holistic approach, it needs to focus on its weakness, which is the lack of a strong and clear point of difference that would propel the company as an industry leader.

Mandarin Hotel
The face of business in Asia is changing faster than one can blink ones eyes. Asian companies that used to be back-end workhorses, manufacturing consumer goods cheaply for Western companies, are slowly realizing the benefits of branding. In a market where competition implies slashing prices on their unbranded products, Asian businesses are slowly becoming more attentive to the power of branding in capturing consumers and returning larger profits on their investments. Firms are realizing that whereas they were wearing themselves down on razor-thin margins to compete with the next supplier, they could increase returns by investing in their brands. This then is the shift in thinking that is pushing boardrooms in Asia toward creating strong brands to differentiate themselves and consequently realize greater profits. Branding is an investment that must be perceived as such and is required to deliver ROI and shareholder value like any other feasible business activity. Many Asian companies traditionally focused on asset-intensive industries. But it has been demonstrated that the most profitable Asian companies focus on intangibles such as human capital, exploiting network effects, and creating synergies based on brands or reputation, rather than investing in tangible assets. Only a few Asian corporations have successfully built and sustained global brands with Asian roots. Mandarin Oriental is one of them the firm has built a world-class hospitality brand based on Asian culture and service-orientation. Brand History Mandarin Oriental is one of the leading luxury hotel groups in the world and operates 41 luxury hotels in different countries across the globe. The hotel has over 10.000 rooms in 25 countries. It is at the same time one of the most iconic and well-managed hospitality brands from the Asian region. The Mandarin Oriental brand was started in 1963 in Hong Kong and was born out of collaboration between The Mandarin of Hong Kong and The Oriental of Thailand. Both these hotel brands were landmarks and had a reputation for offering excellent service. In 1985, these two hotels were merged into a single organization and brand under the name Mandarin Oriental Hotel Group. Brand Equity A strong brand is characterized by a unique brand promise (the customer focus) and an outstanding brand delivery (the organizational system and performance behind the promise). The brand promise and the brand delivery must be consistently balanced in order to build and sustain strong brand equity. The modern brand-driven organization is characterized by three distinct characteristics which set it apart from less brand-focused organizations:

The right boardroom mindset toward and beliefs about branding The right skill sets to build and manage brands The right allocation of organizational and financial resources to achieve the various business objectives and build sustainable brand equity
Mandarin Oriental has built its brand on service excellence with a stated mission to delight the customers. The core of the Mandarin brand is steeped in offering customers an unforgettable experience by blending local cultures, exotic art, lively ambience and breathtaking vacations. Every hotel under the group offers the unique oriental feel and ambience including the taste, smell and the friendly service. The brand equity of Mandarin Oriental was built by creating a very strong and distinct personality in line with the organizations philosophy. The management team has ensured a continuous investment in all aspects of the brand to ensure consistent delivery of all the brand promises. The fact that Conde Nast Traveler several times has rated Mandarin Oriental Hotel Group the number one hotel in many categories is a testament to the hotel brand's success of delivering Asian service - even in the Western world. Fan Campaign Mandarin Oriental has been running a consistent and long-term global advertising campaign based on top-notch celebrities endorsing the brand. It is not easy to get celebrity endorsement right. Before any brand signs on a celebrity, they should consider three main aspects: Attractiveness of the celebrity: This principle states that an attractive endorser will have a positive impact on the endorsement. The endorser should be attractive to the target audience in certain aspects like physical appearance, intellectual capabilities, athletic competence, and lifestyle. It has been proved that an endorser that appears attractive as defined above has a grater chance of enhancing the memory of the brand that he/she endorses. Credibility of the celebrity: This principle states that for any brand-celebrity collaboration to be successful, the personal credibility of the celebrity is crucial. Credibility is defined here as the celebrities perceived expertise and trustworthiness. As celebrity endorsements act as an external cue that enable consumers to sift through the tremendous brand clutter in the market, the credibility factor of the celebrity greatly influences the acceptance with consumers. Meaning transfer between the celebrity and the brand: This principle states that the success of the brand-celebrity collaboration heavily depends on the compatibility between the brand and the celebrity in terms of identity, personality, positioning in the market vis--vis competitors, and lifestyle. When a brand signs on a celebrity, these are some of the compatibility factors that have to exist for the brand to leverage the maximum from that collaboration.

Even though these three major principles must be adhered to by any successful brand, practically it might be difficult to find celebrities that satisfy all these three conditions. Depending on the nature of the brand and the kind of product being used, companies can selectively emphasize one factor over the other. However, Mandarin Oriental has been very successful in carefully selecting and utilizing topnotch celebrities to build and sustain their global brand celebrity endorsements have been a main vehicle. The global campaign, which launched in 2000, continues to gather exposure and attracts fans from around the world. The campaign connects the Mandarin Orientals well-recognized symbol the fan - with international celebrities who regularly stay at the hotels and are true fans of the hotel brand. In 2006, Mary McCartney was appointed as the official photographer of the Mandarin Oriental Groups award-winning international advertising campaign, replacing the late Patrick Lichfield. Mary McCartney has established a strong reputation for portrait photography and advertising campaigns for luxury brands internationally. She has recently completed a new portrait for the Group, of renowned actor Sigourney Weaver. The 18 current fans include Sigourney Weaver, Dennis Hooper, Liam Neeson, Darcey Bussell, Helen Mirren, Maggie Cheung, Vivienne Tam, Takada Kenzo, I M Pei, Bryan Ferry, Lance Armstrong, Michelle Yeoh, Jane Seymour, Jerry Hall, Vanessa Mae, Dame Edna Everage, Frederick Forsyth and David Tang. Prior to Ms McCartneys appointment, many of the current celebrities were photographed by world-famous photographer and British Royal, the late Patrick Lichfield, in a location of their choice which, for them, best represents the feeling of well-being. In appreciation of their support, the Mandarin Oriental Group makes a donation to each celebritys individual choice of charity. Future of the Mandarin Oriental Brand Branding enhances shareholder value, it can become a catalyst for better leadership, it enables to drive a shared vision throughout the organization, and it can help to balance shortand long-term perspectives and performance. The Mandarin Oriental has successfully demonstrated that strong Asian brands can be created and sustained on a global basis. As Peter Drucker said, the only two functions of any organization are innovation and marketing. Irrespective how innovative a company is, how committed the employees are, and competent the top management is, unless the company connects with the customer, success will be elusive. The top management should constantly evaluate their strategic decision in the context of customer feedback and how the customers can help the company in co-creating value. Innovation is therefore a key factor to the future of the Mandarin Oriental brand. Think of Singapore Airlines which is the leading global airline brand and one of them most

profitable airlines. They decided on a fully branded product/service differentiation strategy from the very beginning. Innovation, best technology, genuine quality and excellent customer service were to become the major drivers of the Singapore Airlines brand. Competition is intensifying across Asia, and in the upper end of the hospitality sector. More and more Asian hotel groups such as Aman Resorts, Banyan Tree, Shangri-La and other brands expand successfully around the world. What will earn these hotels the loyalty of customers and sustained profitability is a sustained and consistent adherence to the brand promises of service and quality. Therefore, it is important for Mandarin Oriental to keep innovate and build new tangible differentiators. The strong brand equity of Mandarin Oriental is one of the most valuable assets for the company and its market position. The hotel is a leading business case from Asia demonstrating the importance of strategic branding, and Mandarin Oriental can easily serve as great inspiration for other Asian firms trying to build and manage their own brands.

Intercontinental Hotel
With a portfolio of preferred brands in the best developed and emerging markets, our talented people are focused on delivering Great Hotels Guests Love and executing a clear set of priorities to achieve our Vision of becoming one of the great companies of the world.

Our business model has a clear focus on franchising and managing hotels, rather than owning them outright, enabling us to grow at an accelerated pace with limited capital investment. Furthermore, IHG benefits from the reduced volatility of fee-based income streams, as compared with the ownership of assets. A key characteristic of the franchised and managed business is that it generates more cash than is required for investment in the business, with a high return on capital employed. Currently 84% of operating profit* is derived from franchised and managed operations. Where necessary we actively support our brands by employing our own capital to showcase best-in-class operations through flagship assets. Our business model creates opportunities to build relationships with independent hotel owners and generate revenues by offering access to our global demand delivery systems, where guests can book their hotels through IHG booking channels, including branded websites and call centres. The latest example is our strategic relationship with Summit Hotel Properties Inc., a US hotel investment company focused on branded hotels. On any unbranded hotel bought by Summit, we now have first rights to give the hotel an IHG brand and earn fee revenues through generating demand for that hotel.

The key features of our business model are represented in the following table and charts. With a portfolio of great brands, in the best developed and emerging markets, we are using our size, scale, people and expertise to realise our Vision of becoming one of the world's great companies. This strategy is measured by a series of key performance indicators around 'Where we compete' and 'How we win'. IHG's strategy has ensured that we remain the largest hotel company in the world, by number of rooms. By grounding our operations and growth in Great Hotels Guests Love, we use elements of our strategy, such as the business model of thirdparty ownership, to grow faster than our global competitors.

Great Eatern Hotel


The latest modern landmark of Quezon City, Metro Manila-centrally located and classically styled, elegantly scaled and vibrantly urban, the Great Eastern Hotel provides a home away from home with world class amenities in the business, shopping, and government centers of the capital of the Philippines. Old timers would remember the genteel time when the Great Eastern Hotel opened in 1934 on Echague Street to be one of only three luxury hotels in Manila. Sadly, World War II caused the denouement of the old hotel. In 1995, the same operators brought the hotel back to life and today, the Great Eastern Hotel has been the only first-class hotel in Quezon City for the past six years. Like that hotel of yesteryear, we bring to you the same warm and gracious Filipino hospitality. We have certainly kept to our standard of luxury as we are proud to continue the historic tradition of service established by the original Great Eastern Hotel at the height of its glory days before the war.