Environmental influences on Shangri-La Manila

Question

What are two internal environment factors Shangri la Manila focus on, as well as two external forces that the company utilises to keep the company thriving

Answer

Environmental analysis is a primary strategic component of any organisation operating in a competitive industry. Almeida et al (2016) highlight that an effective environmental analysis allows a firm to develop a strategic path for both long and short term growth. The hospitality industry is one of the most lucrative yet challenging markets in the world. Almeida et al (2016) states that the hotel industry is a difficult market to work in as continuous improvement as well as rapid change adaptation are the key to success in this industry. Shangri-La Manila, is an organisation that is an iconic hotel in the heart of Manila, Philippines. In order to continuously improve the organisation’s service quality, the main focus from an internal analysis perspective is to focus on the core strengths of the business. Shangrila-La Resorts Annual Report (2015) highlights that internally, the management of Shangri-La Manila focuses on immaculate hospitality by development innovative ways to improve service quality which includes regular trainings as well as development paths for all employees. The organisation also focuses on its weaknesses and conducts a monthly internal audit to highlight any loopholes that may impact the service delivery, this is due to the fact that the firm operates in the high end of the market. From an external force perspective, the launch of alternates such as Airbnb pose a significant threat to the firm (Philippine Government). This further means that the bargaining power of buyers has also increased significantly, indicating that from an external point of view, threat of new entrants and bargaining power of buyers are the key challenges for the business.

References

Shangri-La Resorts Annual Report (2014) http://www.shangri-la.com/corporate/about-us/corporate-social-responsibility/sustainability/reports/ Philippine Government (2015) Industry Statistics, https://psa.gov.ph/statistics/survey/business-and-industry/index-by-industry/Hotels%20and%20Restaurants Almeida, M. Llach, J. and Bremser, K. (2016)