...Back to Hotel Strategic Management 101: An examination of hotels’ implementation of Porter’s generic strategy in China Yin-Hsi Lo, Assistant Professor of Hospitality Management, Southern Taiwan University, Taiwan ABSTRACT The market-position view (MPV) of the firm in Porter’s generic strategy hypothesizes that the exploitation of differentiation and cost-leadership can create competitive advantage for a firm, which then has a better chance of outperforming other firms in a homogeneous industry. However, this notion has not been tested in the Chinese hotel industry. In response to this gap, this study empirically examines the relationships between the generic strategies of differentiation and cost leadership and hotels’ organizational performance. The results suggest that differentiation is the only significant generic strategy that influences customer satisfaction in the Chinese hotel industry. These findings have important academic and practitioner implications, which are then discussed. Keywords: Competitive Strategy, Customer Satisfaction, Hotel Performance, Market Positioning INTRODUCTION There has been a great deal of discussion in the literature about the impressive hotel development in China in the past 20 years (Derbaix & Pham, 1998; Devonport, Biscomb, & Lane, 2008; Echtner & Ritchie, 1993; Fakeye & Crompton, 1991; C Fornell, 1992; Foxall & Goldsmith, 1994; Pine, 2002; Yu & Gu, 2005). Specifically, many interesting issues have become the favorite topics...
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...THE BODY SHOP Strategic Implementation Plan Table of Content Introduction 3 Section I Strategic Management Practices 4 1.1 The Body Shop’s Strategic Management Practices 4 1.2 Limitations and Alternative Approaches 6 1.3 Strategy proposed 7 Section II Corporate Governance 8 2.1 Evaluation of Governance structure 8 2.2 What is the stakeholder’s role? 9 2.2.1 Keep satisfied 10 2.2.2 Keep Informed 11 2.2.3 Key players 11 Section III Hard Changes in the Body Shop 13 3.1 Existing Value Chain 13 3.2 Adjustment 14 3.3 What strategy method should Body Shop undertake? 15 Section IV Culture and Leadership Changes 17 4.1 Strategic Change through Culture 17 4.1.1 Control Systems 19 4.1.2 Organisation and Power Structures 19 4.2 Strategic Change through Leadership 20 Section V Implementation Plan 21 5.1 Preliminary Activities to enter China 22 5.2 Procedure of starting a Business in China 23 5.3 Setting up the First Store 23 Conclusion 24 References 25 Introduction L’Oreal Group is the world’s largest cosmetic and beauty company, headquartered in France. It offers a vast amount of products and services across the cosmetic field, concentrating on make-up, hair care, skin care, perfumes and sun protection. L’Oreal divides its brand portfolio into five divisions, Professional products, L’Oreal Luxe, Consumer Products, Active cosmetics and The Body Shop, which covers different the lines to...
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...25:667–683 DOI 10.1007/s10490-007-9073-0 A strategic analysis of surging Chinese manufacturers: The case of Galanz Gloria L. Ge & Daniel Z. Ding Published online: 10 November 2007 # Springer Science + Business Media, LLC 2007 Abstract Recent years have witnessed the surging of Chinese manufacturers, as China has become the world’s factory floor. This paper presents a case study of one of the most successful manufacturers in China, the Galanz Group, now the world’s largest microwave manufacturer. Based on theories of multinational corporations from emerging economies, the paper examines the process of Galanz’s integration into the global market. The company has developed unique competitive strategies that have made it a great success within China and in overseas markets. The Galanz model suggests strong strategic implications for both Chinese firms and incumbent multinational corporations. Keywords Chinese manufacturers . Strategic analysis . Internationalization . Galanz In the last two decades, China has maintained an average annual growth rate above 7%. China is rising as one of the world’s largest economies and trading powers. As China becomes the world’s manufacturing floor, the competitiveness of Chinese manufacturers and their impacts have emerged as a hot topic. China’s manufacturing output now ranks third in the world only behind the United States and Japan, after overtaking Germany in 2003 (China Daily 2005). Many Chinese manufacturers have grown rapidly in recent years...
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...Kingdee Q.1 What are the distinctive management competence and business practices that enabled Kingdee to be successful in the past and how will these need to be changed or further developed in the future? (You need to have a view on what are Kingdee’s future business challenges.) Stages | Business Model | Management Competence | Business Practices | Startup | A/C | ●Attractive compensation for "Hukou" to hold talents ●Green Light" to satisfy employees ●“Five winner sons” method to motivate staff | ●Financial application based on Windows 95 ●Success in securing venture capital | Rapid Growth | ERP | New core value "care, integrity and innovation" to keep innovation | ●Changes in ERP products ●IPO and acquisition | Strategic Turnaround | Saas | “People Culture” to strength team-work under corporate policies | ●Strategic cooperation with IBM ● Evolving into B2B e-commerce platform | Management competence: * Entrepreneurial Period: 1992-1998 1. Attractive compensation for “Hukou” to hold talents Kingdee, like its competitors, is extremely knowledge intensive. This characteristic is determined by the nature of software industry. Actually, before Kingdee was formally founded, since the “Aipu” stage, Robert Xu, Kingdee’s chairman, has realized the importance of his employees. When Kingdee was still called “Aipu” in 1992, the company was not qualified to grant “Hukou” to its engineers. This disabled Aipu to retain qualified employees for long service terms. In consideration...
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...Analysis Executive Summary Managers of multinational organizations and joint ventures have to negotiate, operate, and develop strategic plans that adapt to the cultural differences in each environment. Cultural differences among the United States and China often shape the design and implementation of a strategic plan. To increase the probability of success for joint ventures, an understanding of each country’s sociocultural, economic, and legal-political differences is not only important but necessary. Introduction Shui Fabrics is a joint venture between Rocky River Industries based in Ohio and Shanghai Fabrics in China. Ray Betzell has been the General Manager of the China location for the past five years. The central issue in this case is that the president of Rocky River, Paul Danvers, is not satisfied with the profit that is being generated from Shui Fabrics. He would like to see an increase the company’s annual return of investment form 5 percent to 20 percent. Danvers’ suggestion is to reduce labor costs by laying off Chinese workers; however, he charges Betzell with coming up with options to increase efficiency. Identification of Stakeholder’s Problems, Goals, and Concerns Paul Danvers is the President of Rocky River Industries based in the United States. With respect to the GLOBE Project value dimensions, Danvers’ management style places a high value on assertiveness which directly affects how he communicates. His style is also characterized by a medium...
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...foundry enterprise transformation upgrading is imminent. To successfully implement the transformation and upgrading, the manufacturing foundry enterprises must have the profound and comprehensive understanding of the various resistances encountered in their upgrading process and its influence. Different from the most exiting studies, this article firstly elaborates the upgrading mode and possible path of the foundry enterprises, and then analyses detailedly the diversified resistance which different upgrading paths might encounter, and put forwards the coping strategies separately from the enterprises and government point. Keywords - foundry; upgrading; resistance; dissolve. Introduction How Chinese manufacturing foundry enterprises realize their strategic transformation to achieve new developments is the focus of the public concerned. Scholars have made a lot of researches on the upgrading of the foundry mode. From the existing researching results, the majority primarily focused on researching its upgrading need and the path, seldom research the resistance maybe encountered in the process of the transformation and upgrading. For manufacturing companies, the upgrading resistance of the foundry mode is the first factor to be considered and if this factor is ignored, the upgrading target and the corresponding countermeasures will be the empty talk. The main foundry mode and upgrading path 1 The major foundry mode According to the different nature...
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...have just met. Mike is confident about the analysis we did of our strategy and says all we have to do is “put the pieces together before the final presentation.” ("Mgmt690-1404b-05 strategic management,") Tiffany says “We do have solid information, but we have to look at all the parts to see if we can remain competitive.” ("Mgmt690-1404b-05 strategic management,") First, “What are the considerations that you need to be aware of to remain competitive?” ("Mgmt690-1404b-05 strategic management,") Second, “based on the research that we have done, can we compete in the market that we have chosen? Why or why not?” ("Mgmt690-1404b-05 strategic management,") Thirdly, “what primary factors let us to this decision?” ("Mgmt690-1404b-05 strategic management,") Fourthly, “what would we say to someone who would dispute our position?” ("Mgmt690-1404b-05 strategic management,") And lastly, “how do we plan on evaluation the global marketplace in the future?” ("Mgmt690-1404b-05 strategic management,") ("Mgmt690-1404b-05: Strategic, the Problem ") Cultural Considerations in Business Phase 4 Individual Project Considerations To be able to remain competitive in any market a company needs to use analysis tools like SWOT. Brian Hill explains in his article that “SWOT analysis is a process where the management team identifies the internal and external factors that will affect the company’s future performance.” (Hill) It should be periodically rerun to determine if any changes have occurred...
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...The black hole of South-East Asia: strategic decision making in an informational void George T. Haley Senior Lecturer, Faculty of Business, Queensland University of Technology, Brisbane, Australia Chin-Tiong Tan Associate Professor, Faculty of Business Administration, National University of Singapore, Singapore Proposes that most managers and researchers acknowledge that emerging and newly industrialized markets do not have the same quantity of secondary data as the longindustrialized economies of North America and Western Europe. Presents the results of a search of available, business-related, secondary data on South-East Asia’s rapidly growing economies; highlights how this dearth of data has resulted in an informational void that affects the practice of strategic management in the region. Also delineates how regional managers cope with and adapt to the informational void, and to the region’s fastchanging business, cultural and competitive environments, by developing their unique, highly-intuitive style of strategic management. Finally provides some suggestions to bridge this informational void for management practice and for future research. The authors thank the Guest Editor, Dr Usha C.V. Haley, two anonymous reviewers, and Comet, for their excellent comments and suggestions. Management Decision 34/9 [1996] 37–48 © MCB University Press [ISSN 0025-1747] An old adage posits that the quality of one’s decisions depends on the quality of one’s information. The more...
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...CEO who lacked international management experience, she took the reins of a 3,500-unit, $10 billion business during the midst of a transitional period of expansion into the China market. In 2008 Levendary’s domestic growth had slowed and the company recognized the opportunities the Chinese market could offer. With its rising population, continually growing GDP, and a strong middle class consumer behavior that mirrored Levendary’s domestic formula for success, Foster realized that managing Levendary’s entry into the Chinese growth market would be key to the company’s long term growth and success. This move, however, was met with skepticism from Wall Street and many of Levendary’s corporate staff who held concerns that the company's major expansion into China involved moving too far from Levendary's well-defined concepts of store design and menu. The Levendary brand had a strong track record, but investors as well as internal staff had strong reservations regarding Levendary’s current domestic financial position and that, coupled with Foster’s lack of international experience, caused the Levendary stock to trade at a market discount (Bartlett, 2013). Levendary’ entry strategy into the Chinese market was multi-faceted and relied on the expertise and judgment of Louis Chen, who was appointed China VP by Leventhal prior to her appointment as CEO. The company made a strategic decision to forgo opportunities for a joint venture with an established Chinese partner, which is a tempting...
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...Strategy defined by these writers entailed from Political, game, war or social genre. For this assignment, we deal with business strategy or strategic management in today’s environment in the management world. Strategy could be simply defined as a plan of action to achieve any particular goal. In broader terms, Strategic Management refers to a process of combined activities; mainly, Strategic Analysis (required to develop an apt strategy), Strategy Formulation (process of transferring the analysis into a plan – intended strategy); and, Strategy Implementation (process of putting plan into action – realized strategy). The purpose of this assignment is to develop a comprehensive strategic plan for an Organization for its mission and vision to achieve goals. We have chosen ChinAfrica Magazine for this very purpose. ChinAfrica Magazine was first published in 1988 in English and French edition. Its paper version was suspended in 2001 due to internal financial problems; and, the new English monthly magazine was re-launched in October-2009. Their existing website is in English, Chinese, and French; thus, catering to a range of population. The English version of the magazine has 68 pages and French edition has 16 pages. As evident from the magazine issue, the primary purpose is to further enhance and promote mutual understanding between Chinese and African counterparts, their respective cultures, ideology, business avenues, etc. Hence, this magazine works as a medium of exchange of...
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...Chery Motor Company Instructor: Dr. Deena Burris Global Management 398 Amanda Holst 921128 Fall 2015 Introduction Chery Motor Company was founded in 1997 to support the local economy in the underdeveloped Chinese province of Wuhu. Chery’s lack of proper licensing made it impossible for the company to sell automobiles outside the province. In 2001, a 20% share of Chery was purchased by Shanghai Automotive Industrial Association, which allowed the small firm to utilize their retail license and begin its expansion. Also in that year, Chery exported cars to Syria and was then the first company to export cars to the mainland. Chery expanded and was highly successful between 2000 and 2006, when their automobile sales increased by 303,000 units, making them the 3rd largest domestic auto company. To maintain this growth on the global automotive market, Chery has implemented a range of competitive business strategies. Competitive Strategies Chery has followed their guiding principle of “stabilizing through the domestic market, strengthening through the overseas market and developing the domestic market through the overseas market in a flexible way.” Their ‘going out’ strategy lead to the company becoming the first car enterprise exporting complete automobiles to foreign countries in China. Chery Motor Co has implemented a cost leadership strategy to establish and defend their desired strategic position. A cost leadership strategy is an integrated set of actions taken to produce...
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...better. We thank you for patient guiding and providing us a good opportunity in our study to learn more and more. Secondly, we would like to thank Mr. Zhang and Edward. Thank you for taking time to find interviewees of our interview. You are busy with your own job, but you still use your private time to help us. You also share your experience about contacting skills with us. Last but not the lease, we are thankful to our families and friends who were helping and supporting us during this writing period. Li Zhu & Dan Xu Jö ping University nkö 2010 i|Page Master Thesis Master’s Thesis in Business Administration Title: Marketing Strategic Change in Expansion of Disneyland Authors: Li Zhu & Dan Xu Tutor: Tomas Müllern Date: August 2010 Key Words: Theme Park, Disneyland, Marketing Strategy, Strategic Change Abstract Problem: The international theme park industry is growing but is also facing a series of bottleneck problems. Disneyland as one of the most famous theme parks, is trying to expand its kingdom to China. With the success and failure of the three previous...
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...INTRO: AN OLD CHAMPION PROBING INTO THE FUTURE In this group assignment, we analyze Haier Group’s strategic position and outlook in China’s home appliances industry. By only focusing on the most up-to-date articles and resources available, we have come to the somewhat surprising realization that Haier Group is at the forefront of maturing into a networks platform and a solution provider to an ever-segmented market. While this transformation seemed only logical to any multinational corporation under the sea change brought about by the Information Age and the new paradigm spearheaded by Google and Amazon, Haier Group’s strategic response to what time has called upon them has been quite elusive and subtle. We will demonstrate how Haier Group, with so many success stories from its past, along with the cultural baggage it could evolve beyond, should adapt to the present and fulfill its future promise. PART I. Environmental scanning and industry analysis The STEEP analysis in this section will focus on the most relevant aspects with Haier Group in China: Chinese consumer’s recent socioeconomic development and technological development; the two aspects obviously have huge cultural and political ramification which we also include in the scanning. Toward the end of this section, we will demonstrate these aspects have presented both challenges as well as solutions. 1. Socio-economic facet While we focus our analysis on one single country, China, we have to point out that China...
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...FULL NAME : LINH PHUONG TRAN STUDENT ID : BH12027 UOG ID : 000792235 MODULE CODE : BUSI1317 MODULE TUTOR : HA NGUYEN MODULE NAME : STRATEGIC MANAGEMENT COURSE : BA ( HON) BUSINESS MANAGEMENT INTAKE : MARCH 2013 TITLE : LENOVO EAST MEETS WEST OUTLINE TABLE CONTENTS I. INTRODUCTION 4 II. LENOVO HISTORY AND VISION STATEMENT 4 III. LENOVO SWOT ANALYSIS 6 1. External factors (O- opportunity and T-threat) 6 2. Internal factors ( S- strength and W-weakness) 9 IV. LENOVO STRATEGIC CHOICES 13 V. CONCLUSION AND RECOMMENDATION 14 List of figure Figure | Name | page | 1 | The Lenovo history timeline | 4 | 2 | Lenovo vision statement | 5 | 3 | Porter’s Diamond model | 6 | 4 | Lenovo Porter’s Diamond model | 7 | 5 | Strength in Lenovo’s structure | 10 | 6 | Lenovo CAGE framework | 11 | 7 | Lenovo strategic implementation | 13 | 8 | strategic triangle | 14 | I. INTRODUCTION Thomas L.Friedman reminded to the term "Flat world" as the way to describe to an era of new World economy. Which including the globalization, intense competition, a big market without borders, the variety and combination of cultures in the World (Thomas L. Friedman, 2005; Victor K. Fung, el, at 2007; Ronald Aronica and Mtetwa Ramdoo, 2006). In fact, The change, updates, innovation and competition in technology industry are taking a level higher, because it happening every days, every hours (Jeffrey T. Macher, David C. Mowery; 2004). Factors...
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...Student Name: Student No.: Assignment Due Date: Academic Year: Year 1 Year 2 Year 3 DECLARATION [pic] Business Strategy Assignment 1-4 Lecturer Name：Charlie Dayman Student Name: XIANG XIANG LIN, CHEN CHEN HE CLEBER ALMEIDA, NAMIR EL MULHIM Student Number: 2012855, 2012979, 2012939, 2012840 17th December, 2013 Table of Contents 1. Introduction---------------------------------------------------------------------------------5 2. Task 1-----------------------------------------------------------------------------------------5 2.1 explain the meaning of strategy, strategic contexts and the terminology associated with business strategy----------------------------------------------------5 2.2 outline and comment on the issues involved in strategic planning----------8 2.3 explain different planning techniques---------------------------------------------9 3. Task 2----------------------------------------------------------------------------------------16 3.1 producing an ‘organizational audit’ for an organization of Apaches Pizza & Lam Take Away-------------------------------------------------------------------16 3.2 carrying out an ‘environmental audit’ for Apaches Pizza & Lam Take Away-------------------------------------------------------------------------------------18 3.3 explain the significance of ‘stakeholder analysis’------------------------------21 4. Task 3----...
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