REPORT ON ORGANISATIONAL

STRUCTURE
Rayi. Navya Sri 2213052
Samriddhi Jain 2213054
COMPANY PROFILE
Shangri-La Hotels and Resorts is a multinational hospitality company, founded in 1971 by
tycoon Robert Kuok. It is a subsidiary of Kerry Properties, the company has over 100 luxury
hotels and resorts with over 40,000 rooms in Africa, Asia, Europe, the Middle East, North
America and Oceania. The first hotel of the luxury Shangri-La Hotels and Resorts Group was
the Shangri-La Hotel Singapore, opened on 23 April 1971. The brand takes its name from the
fictional utopia "Shangri-La" described in James Hilton's novel "Lost Horizon," symbolizing
an ideal haven of peace and tranquillity.
Vision
Shangri-La wants to be the first choice for visitors, coworkers, investors, and business
associates. They aim to set the standard for Asian hospitality worldwide.
Mission
Shangri-La’s mission is to delight their guests every time by creating engaging experiences
straight from their hearts. They strive to provide exceptional service, comfort, and memorable
moments for their guests.
Products and Services
1. Shangri-La hotels
2. Shangri-La Resorts
3. Luxury Stays
4. Jen Hotels
5. Kerry Hotels
6. Express check-in and checkout
7. Postal/ courier service
Core Values
1. Humility
2. Respect
3. Courtesy
4. Helpfulness
5. Selflessness
6. Sincerity
These are virtues deep-seated in the Asian culture, which is a core element of the Shangri-
La brand identity. The brand’s logo is in the shape of an “S” which resembles uniquely
Asian architectural forms, suggestive of majestic mountains reflected in the waters of a
tranquil lake.
“To treat a stranger as one of our own” characterizes the hospitality experience that
customers can expect from the Shangri-La brand. All across the world, the Shangri-La
brand ensures that its customers receive a consistent level of world-class service, amidst
tranquil surroundings decked in inspirational architecture and design. The group believes
that the element which makes each guest’s stay memorable is hospitality from the heart,
and this is reflected across all of its brands and properties.

SWOT ANALYSIS
1. Strengths
o Shangri-La is a well-established luxury hospitality brand known for
pioneering Asian hospitality. This strong brand recognition is a significant
asset, attracting new and returning guests seeking the quality and service for
which Shangri La is renowned.
o The group’s portfolio includes a variety of brands like Shangri La, Hotel
Jen, Kerry Hotels and Traders catering to different market segments.
o Shangri-La is always committed to its quality and service often going above
to its guest’s needs.
o Shangri la has embraced technology to enhance guest experiences, such as
deploying robot butlers in its JEN hotels in Singapore. Such innovations
keep the brand at the forefront of the hospitality industry.

2. Weaknesses
o Shangri-La’s performance is closely tied to the global travel and tourism
industry, which can be highly volatile and affected by various factors such
as economic downturns, pandemics, and geopolitical tensions.
o The rise of alternative accommodation options like Airbnb and boutique
hotels has intensified competition, offering travelers diverse experiences and
often at lower prices.
o Ensuring consistent service and quality across over 100 properties
worldwide can be challenging
o Balancing luxury offerings with ecological sustainability can be challenging
and requires ongoing investment and innovation.

3. Opportunities
o Embracing digital innovations can enable Shangri-La to offer more
personalized and enhanced guest experiences. Utilizing data analytics for
personalized marketing, mobile apps for seamless service, and intelligent
room technologies can significantly improve customer satisfaction and
loyalty.
o Travelers increasingly seek sustainable and environmentally friendly
accommodation options. Shangri-La can capitalize on this trend by
intensifying its sustainability efforts
o Shangri-la can explore diversifying its offerings beyond traditional hotel
services to include wellness retreats, culinary experiences, and cultural
immersion activities
o Collaborating with luxury brands, cultural institutions, or local artisans can
provide guests exclusive experiences and strengthen brand’s positioning as a
purveyor of unique luxury experiences.
 4. Threats
o Economic instability in critical markets can lead to decreased occupancy
rates and revenues for Shangri-La.
o New entries and alternative accommodation options like Airbnb are also
intensifying the competition.
o Hotels must continuously innovate and invest in technology to enhance the
guest experience and streamline operations.
o Geopolitical tensions, security threats, and travel advisories can deter
travellers from visiting specific destinations, impacting hotels in affected
regions.
o The COVID-19 pandemic has highlighted the vulnerability of the hospitality
sector to global health crises, leading to travel restrictions, lockdowns, and a
significant drop in international tourism. Future health crises pose a similar
threat.

Organisational Leadership
Shangri-La Hotels enjoys visionary leadership that is people-centred based on the
catchphrase “treat your employees exactly as you want them to treat your best customers”.
This approach to leadership has created a culture where people work towards achieving goals
for the ultimate success of the organization. The management uses this principle to inspire,
instruct, and guide behaviours across all its operational areas to create a culture that promotes
excellence.
All employees undergo the Shangri-La Care training program where they learn various
aspects involved in running the organization including its core values, mission and vision
statements, culinary arts, service provision, front office management, and housekeeping
operations among others. This approach has helped the company remain competitive and
perform exemplary in the marketplace.

Strategic Positioning
Strategic positioning means the ways through which a business differentiates itself from its
competition to deliver value to its customers. Shangri-La Hotels has distinguished itself as a
luxury destination, thus creating a niche market targeting high-end clients. Additionally, the
organization focuses on quality service provision through intense training of its workforce in
ways that align with its core values, vision, and mission.

Organisational Structure
1. Divisional Manager
2. Departmental Manager
3. Sectional Manager
4. Front-Line Supervisors
5. Front-Line Employees Source
The decision comes from the upper level of the structure.
Target Market
Shangri-La Group is associated with luxury and a wide range of services for its
customers. Therefore, the customer base of hotels consists of people of the upper class. ,
the management of Shangri-La focused on tourists who have higher financial and
consumer skills. The marketplace for Trader Hotel mostly contains business travellers and
the ones who come from the upper-class sets of society. Business travellers are able to
acquire services from high-quality hotels as their expenditures are accommodated by their
companies.

McKinsey 7s Model

Shangri-La Hotels and Resorts makes use of the McKinsey 7s model to regularly enhance
its performance, and implement successful change management processes. Shangri-La
Hotels and Resorts Achieving Service Leadership focuses on the 7 elements identified in
the model to ensure that its performance levels are consistently maintained, and improved
for the offerings.
1. Strategy
The overall business strategy of Shangri-La is achieving the best service leadership,
which is also important in helping the business guide employee, staff and stakeholder
behaviour.
2. Structure
The company has fewer managerial levels in between and more access to the senior
management and leadership, the employees feel more secure and confident and also
have higher access to information.
3. Systems
The systems at Shangri-La Hotels and Resorts Achieving Service Leadership are
largely departmental and include, Human resources, Finance, Marketing, Operations,
Sales, PR management, and Strategic leadership.
4. Shared Values
Shangri-La Hotels and Resorts ensures that all its job tasks and roles are aligned with
the core values that the company propagates. This means that all activities, tactics,
and strategic tactics employed by Shangri-La Hotels and Resorts Achieving Service
Leadership will reflect its core values, and will not deviate away from these.
5. Style
Shangri-La has a participative leadership Style. Through this Shangri-La can engage
and involve its employees in the decision-making process and managerial decisions.
 6. Staff
Employees for different job roles and positions are hired internally as well as
externally – depending on the urgency and the skill levels required.
7. Skills
The company ensures that all its job requirements are met and that employees have
sufficient skills to perform their respective jobs according to the values and culture as
well as the business goals and strategy.
It pays particular attention to enhancing the skills and capacities of its employees. It
arranges regular training and workshops – internally as well as externally managed- to
provide growth and development opportunities for its employees.

Conclusion
Leadership and strategic positioning are two crucial factors that define an organization's
success or failure. Many external factors that the hospitality industry must deal with,
such as political, economic, social, technological, and environmental challenges, have
an impact on the successful administration of hotels. This report explores how Shangri-
La Hotels' leadership has helped the business create an exceptional culture by
adopting a strategic orientation that sets it apart from its competitors.