...S w 9B05M035 MAJESTICA HOTEL IN SHANGHAI? Jane Lu prepared this case under the supervision of Professor Paul W. Beamish solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. Ivey Management Services prohibits any form of reproduction, storage or transmittal without its written permission. This material is not covered under authorization from CanCopy or any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Management Services, c/o Richard Ivey School of Business, The University of Western Ontario, London, Ontario, Canada, N6A 3K7; phone (519) 661-3208; fax (519) 661-3882; e-mail cases@ivey.uwo.ca. Copyright © 2005, Ivey Management Services Version: (A) 2005-12-02 On March 20, 2005, Richard Roy, executive vice-president of Majestica Hotels Inc., was in China, for negotiations with Commercial Properties of Shanghai Limited (CPS). They were discussing a possible management contract under which Majestica would be the operator of a new luxury hotel there owned by Shanghai Industrial Holdings. Majestica Hotels Inc. was one of the world’s leading operators of luxury hotels. The expansion into mainland China had been on management’s agenda since 1999. The opportunity emerged in late 2003 when a close...
Words: 6351 - Pages: 26
...Executive Summary This report is talk about the marketing mix for the 5-start hotel Four Seasons. The purpose of this report is to develop a new kind of marketing mix for the Four Seasons to meet the demand of different guests. The thesis statement of this report is the Four Seasons may gain more popularity if they adopt the new kind of marketing mix. The research and the interview have been done as for the original sources, and the key finding is his competitor biggest advantage is the cheap price. In conclusion, the Four Seasons will be better if they have developed the new kind of accommodation which has the acceptable price, then Four Seasons hotel will be more competitive because of his services, facility, and the proce. 1.0 Introduction The objectives of this research are analyzing the accommodation market, and creating a marketing mix for a famous 5-start hotel Four Seasons. The reason that the company was chosen is it have high quality of the services and is well-known around the world. The guests for the Four Seasons who are in the group of high social-economics most are travelers for entertainment or business. “Nation of customization” is the key for the success in those country, also the core philosophy “loyal to the guest” gain the popularity for them (Clampet 2014). Design in different style for the customers to give the best experience all around the world is the meaning of “Nation of customization”. This company tries their best to meet the demand of the guests...
Words: 2116 - Pages: 9
...MAJESTICA HOTEL IN SHANGHAI? On March 20, 2005, Richard Roy, executive vicepresident of Majestica Hotels Inc., was in China, for negotiations with Commercial Properties of Shanghai Limited (CPS). They were discussing a possible management contract under which Majestica would be the operator of a new luxury hotel there owned by Shanghai Industrial Holdings. Majestica Hotels Inc. was one of the world’s leading operators of luxury hotels. The expansion into mainland China had been on management’s agenda since 1999. The opportunity emerged in late 2003 when a close friend of Majestica’s chief executive officer (CEO) revealed that CPS was looking for an operator for its new luxury hotel under construction in Shanghai. Majestica immediately sent representatives to Shanghai to explore the possibility of becoming the operator. Majestica’s proposal was welcomed by CPS, and a letter of intent was signed on August 20, 2004. However, in discussions regarding the management contract, the two parties had reached a deadlock. The key issues to be resolved were the contract term, and the responsibilities and rights of Majestica as the operator, and CPS as the owner, of the hotel. This Shanghai deal was important for Majestica’s global expansion. It would not only provide Majestica with the opportunity to enter the China market but could also set a precedent for Majestica’s future expansion in other emerging markets. MAJESTICA HOTELS INC. Majestica was founded in 1970 in Western...
Words: 5235 - Pages: 21
...Marketing analysis of five-star hotels in Suzhou city, Jiangsu province. I. Introduction “Oriental Venice” or “Paradise on Earth” that is how Suzhou usually called in travel directories. Suzhou was previously named the tourist city with the "most quintessential Chinese style" and a "Top 10 city of leisure in China" (1). Amazing places of interest as well as unique traditional festivals and local nature attract more and more international and domestic tourists every year. Obviously, this trend requires simultaneous development of the hotel industry. However, it is essential to keep the balance between growing supply and demand in the region as a main condition for a profitable hotel business. II. Suzhou general information. Suzhou is one of the key cities in Yangtze Delta which is renowned world-wide as a cultural, historic, industrial and tourism center. 1. Location 1.1 Geographical position and climate. The city is located in the South of Jiangsu province, boarding Shanghai on the East, the Taihu Lake on the west, Zhejiang province on the south and the Yangtze River on the north. Situated at the temperate zone and with subtropical oceanic monsoon climate, Suzhou enjoys four distinctive seasons, mild temperature and abundant rainfall. Since 42% area of the city is covered by water, including a vast number of ponds and streams, Suzhou is praised as the 'Oriental Venice'. Together with its mild climate, making it an available destination all year round, fertile...
Words: 1358 - Pages: 6
...ZEN HOTEL INC. SOM 354 Ting Gu, Liyan Jin, Shuyi Chen, Jiawei Cheng, Yuchen Wu Table of Contents Executive Summary Introduction/Overview of Zen Hotel Inc. (Liyan Jin) The Culture of Our Target Market (Liyan Jin) Motives of entering the Chinese markets (Shuyi Chen) The method of the Entry The Timing of the Entry The Scope of the Entry The Marketing Mix (Ting Gu) Human Resource strategy (Ting Gu) Executive Summary Introduction/Overview of Zen Hotel Inc. Our company Zen hotel Inc. offers exclusive boutique hotel experience to consumers who expect a luxurious service at an affordable price point. Our hotel is currently located at the East Village, in New York City. Like other boutique hotels, our company is an intimate size hotel that contains approximately 100 rooms. We offer hotel rooms with trendy décor installation, personalized service, mini bars, friendly ambience and many more. The trend of boutique hotels are getting more upscale, and high tech to meet the demands of modern travelers who are food-oriented and style-conscious. According to Brown, who is the founder of Boutique Hotel News, these are the top 10 features of what’s going to be hot in 2013 for Boutique hotels. (Brown, 2013) Among our services, predictive personalization is one of the most important one. Hoteliers are increasingly able...
Words: 3034 - Pages: 13
...Shanghai Disneyland I only hope that we don't lose sight of one thing - that it was all started by a mouse. -Walt Disney On a beautiful March day in Orlando, Andy Berst strolled down Main Street at the Magic Kingdom contemplating a new project proposal. Andy, the Director of Finance for Hong Kong Disneyland, had spent the last four years developing and preparing for the launch of Disney’s newest park on Lantau Island in 2005. It was now 2003, and as he prepared to move to his new office in Hong Kong, he received a call from CEO Michael Eisner’s office to discuss the possibility of a new venture in Shanghai. Berst, like many higher managers with the company, knew that Disney was interested in breaking into mainland China for several years. On the other hand, he also knew that Disney had never built a park in a communist country, or what could be considered an emerging market. However, with the recent announcement from rival Universal-Vivendi confirming their intentions to build a Universal Shanghai to open approximately the same time as Hong Kong Disneyland, Disney executives were anxious for their own counter-strike in the mainland. As he walked towards Cinderella’s Castle, Andy’s mind began to work out the details of a Shanghai Disneyland. The Walt Disney Company’s Theme Park and Resorts Division Disneyland will never be completed. It will continue to grow as long as there is imagination left in the world. -Walt Disney History In 1955, Walt Disney...
Words: 2675 - Pages: 11
...Shanghai Disneyland I only hope that we don't lose sight of one thing - that it was all started by a mouse. -Walt Disney On a beautiful March day in Orlando, Andy Berst strolled down Main Street at the Magic Kingdom contemplating a new project proposal. Andy, the Director of Finance for Hong Kong Disneyland, had spent the last four years developing and preparing for the launch of Disney’s newest park on Lantau Island in 2005. It was now 2003, and as he prepared to move to his new office in Hong Kong, he received a call from CEO Michael Eisner’s office to discuss the possibility of a new venture in Shanghai. Berst, like many higher managers with the company, knew that Disney was interested in breaking into mainland China for several years. On the other hand, he also knew that Disney had never built a park in a communist country, or what could be considered an emerging market. However, with the recent announcement from rival Universal-Vivendi confirming their intentions to build a Universal Shanghai to open approximately the same time as Hong Kong Disneyland, Disney executives were anxious for their own counter-strike in the mainland. As he walked towards Cinderella’s Castle, Andy’s mind began to work out the details of a Shanghai Disneyland. The Walt Disney Company’s Theme Park and Resorts Division Disneyland will never be completed. It will continue to grow as long as there is imagination left in the world. -Walt Disney History In 1955, Walt Disney...
Words: 2674 - Pages: 11
...research paper objective is to present on subject “Hotel Accounting” about Four Seasons Hotel and Resort. The goal of creating this report is to study on the structure of hotels. This report presented guideline to Four Seasons hotel and Resort. Each resort and hotel in Four Seasons has different uniqueness and variation, so we provided only best branch from overall branches around the world. The branches that we bring in the project are mostly in Thailand, because the writer comes from Thailand and we want to promote the traveling industry in Thailand. Most of our research comes from internet sources and some in magazine and journals. We also appreciate Four Seasons Hotel and Resort that provided us useful information and advice. So, we hope that you will find a lot of useful information and trivia from our report and use those information in the future. History of Four Seasons Hotel 1961, The first Four Seasons hotel on an unlikely downtown site in Toronto, Canada. 1963, Four Seasons opened its second hotel, Toronto’s Inn on the Park. 1970, Inn on the Park London (later renamed Four Seasons Hotel London) opened, right at the start of the transatlantic jet-travel boom. 1972, Over its history, Four Seasons would make four strategic decisions that formed the pillars of its business platform. The first was about quality. 1976, The second key strategic decision that formed the business platform was about service. 1976, Four Seasons entered the US market with its first management...
Words: 3623 - Pages: 15
...in making a decision to purchase a product or service. The razzmatazz, pace and creativity of some promotional activities are almost alien to normal business activities. The cost associated with promotion or advertising goods and services often represents a sizeable proportion of the overall cost of producing an item. However, successful promotion increases sales so that advertising and other costs are spread over a larger output. Though increased promotional activity is often a sign of a response to a problem such as competitive activity, it enables an organisation to develop and build up a succession of messages and can be extremely cost-effective. The importance of a marketing mix is to make businesses or organizations meet the needs of customers and to satisfy them. The marketing mix is made up of four P's which are promotion, price, product and place. This means the goods...
Words: 4863 - Pages: 20
...Section 1 Chengdu, is the provincial capital of Sichuan province in Southwest China, as well as a major city in Western China. It has 14,047,625 inhabitants: 7,123,697 within the municipality's nine urban districts and 6,730,749 in the surrounding suburbs and rural area. According to the 2010 census, Chengdu is the fourth most populous city in mainland China, and most populous among prefecture-level cities as well. Chengdu is one of the most important economic, transportation, and communication centers in Western China. According to the 2007 Public Appraisal for Best Chinese Cities for Investment, Chengdu was chosen as one of the top ten cities to invest in out of a total of 280 urban centers in China. Tourism of Chengdu mainly promotes four travel brands-the hometown of the giant panda, the capital of delicious food, the capital of leisure culture and the exhibition city. First, the Qingcheng Mountain and Dujiangyan, The Wuhou Temple, DuFu Thatched Cottage, Jinsha Ruins and the habitat of giant panda, represent the world heritage brand. Second, the Sichuan cuisine, six famous brands of alcohol, Sichuan tea culture represent the capital of delicious food. Third, the Huan Alley and Zhai Alley, Jinli roads and historical remains of city in Qing dynasty represent the capital of leisure culture. Fourth, the Chengdu International Intangible cultural heritage Festival, the China International Gourmet and tourism Festival, the Taoist Cultural...
Words: 3068 - Pages: 13
...BOWEN op yo CARIN-ISABEL KNOOP Four Seasons Goes to Paris: “53 Properties, 24 Countries, 1 Philosophy” Europe is different from North America, and Paris is very different. I did not say difficult. I said different. — A senior Four Seasons manager In 2002, Four Seasons Hotels and Resorts was arguably the world’s leading operator of luxury hotels, managing 53 properties in 24 countries and delivering what observers called “consistently exceptional service.” For Four Seasons, that meant providing high-quality, truly personalized service to enable guests to maximize the value of their time, however the guest defined doing so. No tC In 1999, Four Seasons opened the Four Seasons Hotel George V Paris (hereafter, “F. S. George V”), its first French property, by renovating and operating the Hotel George V, a historic Parisian landmark. Doing so was, according to John Young, executive vice president, human resources, “one of our great challenges and triumphs.” Young mused on what Four Seasons had learned from opening a hotel in France, wondering what lessons would be applicable to other openings given the firm’s growth plans, which suggested that new opportunities would be largely outside North America. (Exhibit 1 illustrates property locations in 2002.) Performance Do Four Seasons generally operated (as opposed to owned) midsized luxury hotels and resorts. From 1996 through 2000 (inclusive), Four Seasons revenues increased at a compound rate of...
Words: 11020 - Pages: 45
...factors that stems from wrong marketing decisions and lack of research. The following are the said factors: Euro Disney * Location – While the demographics presented by the European government about the number of tourists that comes to Paris is true, Euro Disney failed to make further research on the reasons for this large number. Most tourists go to Paris to visit and wander in the streets of the city and not to visit theme parks. Moreover, the climate in Paris is unsuitable for a theme park thus the off-season attendance was way below target. The French government offered Euro Disney generous incentives that they chose to overlook cultural and weather barriers. * Pricing – Unlike the Japanese, Europeans are not willing to spend much to enjoy the attractions in the park. Euro Disney was confident that Europeans would come flocking to the park despite the premium price. * Euro Disney Marketing Strategy – Euro Disney’s advertising focused on the size of the park rather than the Disney experience. They were trying to sell an alluring bit of American which the European do not particularly like. Europeans do not care that the theme park had cost over $4 billion or that it is 4,800 acres wide. They should have emphasized the benefit one could get from visiting the park. * Over-confidence – Overwhelmed by the success of Tokyo Disney Land, Euro Disney overlooked many factors like culture and the weather. They thought that their marketing strategy in other countries would...
Words: 4060 - Pages: 17
...Volume 7 Issue 2 May 2009 Export of American Fantasy World to the Chinese Case prepared by Professors Susan H. C. TAI and Lorett B. Y. LAU1 Introduction The 80-year-old Disneyland in the United States now appeals only to families, as Mickey Mouse is no longer an attraction for young Americans (October 20, 2005, Kyodo News International, Tokyo). The Walt Disney Company has also opened parks in Paris and Tokyo on the assumption that family values are relevant to any part of the world. Disney, however, has a mixed record of walking the cultural tightrope. It was criticized for ignoring French culture when it built Euro Disney in Paris, but Tokyo Disneyland has been well received by the Japanese (June 16, 2005, The Wall Street Journal). Since 1983, people in Japan and around the world have enjoyed the dreams and magic of Tokyo Disneyland, the first Disney theme park to be built outside the United States. Tokyo Disneyland did not try to adapt to the culture in which it was built. It worked because of the Japanese attachment to Disney characters and the ultimate US entertainment experience (Amine, 2005). Euro Disney, opened in 1992, lost almost $1 billion in its first 18 months of operation and quickly developed into one of the most costly mistakes in the company‟s history. The French perceived Euro Disney as a symbol of American influence (Spencer, 1995) and many Europeans would not visit the theme park because they believed the real Disney experience was in the US (Marsh,...
Words: 7230 - Pages: 29
...managerial findings are developed. r 2007 Elsevier Ltd. All rights reserved. Keywords: Chinese Mainland tourists; Individual visit scheme; Tourism; Shopping behavior 1. Introduction Since the Chinese abrogation of tour group quotas in 2002 and the introduction of Individual Visit Scheme (IVS) in July 2003, there is a rapid growth in numbers of Chinese Mainland (CM) visitors to Hong Kong which directly led to a rise in the total tourism expenditure associated with inbound tourism. Amongst the 30 CM cities where IVS was launched, residents from Guangzhou, Shenzhen, Shanghai and Beijing were the major visitors traveled to Hong Kong and a key motivation for their visit is shopping (Zhang & Lam, 1999). To the best of our knowledge, there is little published research done to identify IVS tourists’ shopping preferences and behaviors. In this study, we focus on the shopping behaviors of IVS tourists from Guangzhou, Shenzhen, Shanghai and Beijing for fashion products during their trips to Hong Kong. In the literature, tourism and its relationship with...
Words: 3284 - Pages: 14
...French Accent - How to Turn Customer Satisfaction into Profits and Growth by Vincent Grimaldi de Puget January 13, 2003 There are reasons to believe that the cause of the backlash against capitalism-as-we-know-it is deeper than the robber baron scandals that have occupied the front pages in recent months. There is growing evidence that we are witnessing a shift away from blind consumerism, and marketers can do something to smooth the transition. The bottom-line pressure of always delivering more earnings – more than the previous quarter and year – can lead to misallocation of resources in the long term. Seeking to grow is fundamentally a good objective if the underlying economics can support it -- meaning productivity improvements and technological breakthroughs -- and if the expectations of customers, as human beings, keep being satisfied. Unfortunately, it is not always the case. In some markets, such as the US and the UK, the pharmacy, restaurant, and video store businesses, for instance, have largely consolidated from mom-and-pop shops to large standardized chains. Economically, consolidation seems to make sense since it initially brought customers a broader choice at lower prices thanks to economies of scale; and sometimes a predictably good customer experience, e.g., McDonald's and Burger King, Barnes & Noble and Borders, and Starbucks. Too often, however, consolidation meant that unmotivated, low-wage workers replaced devoted shop-owners; ignorance replaced knowledge...
Words: 4164 - Pages: 17
