Strategic Management and Leadership of Multinational businesses: The Hong Kong and Shanghai Hotels Group – Page 1

In the field of multinational business with respect to the hotel industry, there are notable game player. In the Asian sector, a key player in this category is with no doubt The Hong Kong and Shanghai Hotels Group. Little writings are there about it, in books, but this fact remains (Enz, 2009, p. 83). Since the start of its operations to present day, a number of things have happened that guarantee the fact that this company’s business venture has been a successful one. It has put together all the necessary inputs it has garnered overtime to achieve this success (Wilson, 2006, p. 134). This company has a good reputation in Asia as well as in other key areas in which it has established its facilities such as some European and American cities: Manila, Chicago, New York, and Beverly Hills. The Hong Kong and Shanghai Hotels Group owns a number of diversified portfolios. These varied activities have helped to increase the turnover of the business as a whole. As a multinational from the last generation, it has already set out its market share value (Doole & Lowe, 2008, p. 215). The leadership structure of this company is exemplary in the way that it carries out its operations. With all its branches and differently oriented portfolios, the management has had success in monitoring and ensuring profit maximization. As a multinational, this company has so many employees, many operations, and thus many challenges (Schneier, Shaw, Beatty, & Baird, 1995, p. 341). The leadership by the management ensures strategic measures to enhance high motivation indices amongst all workers. From a non-biased point of view, it is worth respecting the fact that The Hong Kong and Shanghai Hotels Group is reputably successful in its operations. It owes this credit to the strategic management team that carries out its operations, and to the general public who wholeheartedly embrace all its efforts to remain a key operator in the multinational hotel and residential property management business.


As a prominent trend in the world trade scene since the end of the Word War II, multinational operations are a day-to-day venture in all major fields of business. Taking a strong stand in this trade set up is the hotel industry. Most hotels in the multinational business often integrate the primary hotel services with additional, though closely related by way of operation, services such as travel agencies, tour operators and tourist based businesses. Multinational hotel businesses play a major role in international tourism especially in the developing countries. It is through their endeavors that international tourism in today’s world can boast of development and continuity. Just like in other fields in which multinational business prevails, the multinational hotel industry has a number of significant players; some newcomers and others veterans. However, in this work I will focus on one group of hotels, which has its operations in the multinational level with its roots in Asia. The Hong Kong and Shanghai Hotels Group is a world widely recognized company that runs the hotel business in various countries under prestigious conditions and has successfully observed positive and admirable growth over the years.

Success in The Hong Kong and Shanghai Hotels Group

It is no doubt that The Hong Kong and Shanghai Hotels Group is a success. That explains why it has received so many prestigious awards (Travel Guide China, 2009). Consequently, it is in the multinational hotel industry limelight (Business Information Agency, 2011, p. 268). I can in many ways elaborate why I take the stand of classifying The Hong Kong and Shanghai Hotels Group as a successful venture. There are many measures to this (W.Fairlie & M.Robb, 2008, p. 51). To start with, it is a multinational operator with a very long history. The existence of The Hong Kong and Shanghai Hotels Group dates back to late nineteenth century. According to (The Hong Kong and Shanghai Hotels, Limited, 2013), its listing and registration as a public company trading in the Stock Exchange of Hong Kong dates back to 1866. It has survived all the conflicts between then and now: the World War I and II, the Great Economic Depression of 1930s and other global issues. Such an effort depicts a great deal of success.

Still in the pursuit of elaborating the aspect of success of The Hong Kong and Shanghai Hotels Group, I focus on the growth that characterizes the working spirit of this company. The same year this company featured in the stock exchange market, 1866, it made its very first move to demonstrate it goal to grow. It made its very first acquisition of another hotel facility (Fookien Times, 1982, p. 213). For the next 150 years and over, it has continued in that spirit. Its main methods of growth include complete buyouts of other hotels and the purchase of a controlling stake in others. In addition, there are instances where in the verge of expanding, this company builds new facilities from scratch. Going multinational has very lucrative benefits that lead t ultimate success (Zhang, Pine, & Lam, 2005, p. 201). Still important to note is that it started with only two branches in Hong Kong. However, today it enjoys a hotel portfolio that includes excellent hotels in ten major tourist and business cities across Asia, Europe, and the US. During the establishment period of this company, its only involvement in business solely consisted of nothing more than basic hotel activities of food and accommodation. Today though, in addition to that, The Hong Kong and Shanghai Hotels Group indulges in more diversified business which include the management of different commercial properties, clubs and availing the services in such properties. Increased number of business portfolios naturally indicates the growth of success (Mulsow, 2012, p. 44). This overwhelming expansion, which now enables the company to serve many times as more customers as it initially did, indicates an extent of growth that is too significant not to include as an indicator of success (DNA India, 2013).

As much as people are interested in the current trends and fashions of today’s world, there is still a part in them that yearns to keep that which seems as out of date. Essentially, most people are dynamic and they relate positively to changes in their environments. In contrast, there is still a part in them that is remotely conservative in nature. In a business like this undertaken by The Hong Kong and Shanghai Hotels Group, it is very important to apply both aspects simultaneously. In the light of the above, this company’s success depends on the fact that it is has figured out how to bring about both aspects, thus suiting, as may customers as possible though in different manner: market segmentation (Czinkota & Ronkainen, 2007, p. 199). The kind of service and facilities differ from one branch to another. The Hong Kong and Shanghai Hotels Group takes into consideration that satisfaction is not universal (Morschett, Schramm-Klein, & Zentes, 2010, p. 366). It is in respect to this that it has no record of any one-time experience in prolonged poor performance. The Hong Kong and Shanghai Hotels Group updates its facilities frequently involving renovations and additions in the verge of upholding customer satisfaction. It has established an effective customer information platform. It uses data from this platform to implement the changes it requires thus remaining competitive. This kind of endeavor also qualifies as a measure of the success reaped by The Hong Kong and Shanghai Hotels Group.

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