Cross-Cultural and Global Management in Thailand Hospitality Report

This report examines cross-cultural and global management within Thailand's hospitality sector, focusing on 'The Rosevine' hotel. It begins by analyzing the impacts of internationalization and globalization on Thailand's tourism industry, highlighting both positive and negative effects. A PESTLE analysis assesses the political, economic, social, technological, environmental, and legal factors influencing the sector, providing insights for potential investments. The report also explores relevant cultural dimensions of Thailand, emphasizing the importance of understanding local customs and traditions. Furthermore, a SWOT analysis evaluates the strengths, weaknesses, opportunities, and threats facing the hospitality industry in Thailand. The report concludes with a summary of the key findings, offering a comprehensive overview of the challenges and opportunities in managing a hotel business in Thailand.

Cross-Cultural and
Global Management in
Hospitality

Table of Contents
INTRODUCTION...........................................................................................................................1
TASKS.............................................................................................................................................1
Analysing internationalisation and globalisation impacting on Thailand ..................................1
A PESTLE analysis of the hospitality sector in Thailand...........................................................2
Relevant cultural dimensions of Thailand...................................................................................4
Threats, Opportunities, Weaknesses and Strengths of Thailand.................................................5
CONCLUSION................................................................................................................................6

INTRODUCTION
A cross cultural nation comprises of those civilians who are of different cultural
backgrounds. All of them have variant values and thoughts on specific subject or matter.
Thailand can be best example of this cross culture country wherein people having diverse
traditions and philosophies are living together happily. In this nation, there are so many beautiful
places that is attracting large number of tourists from all over the world towards their beauty
(Moran, Abramson and Moran, 2014). In order to manage all tourism related activities,
government of Thailand are performing so many tasks for maintaining decorum of cross - culture
and global management in hospitality. The present report is based on 'The Rosevine', a four star
hotel present in United Kingdom. In this project, PESTLE analysis is going to be done in order
to find the impacts of macro environment on the given firm. In addition to this, swot analysis is
also performed so that this venture can explore its strength, weaknesses, threats and opportunities
as well.
TASKS
Analysing internationalisation and globalisation impacting on Thailand
Globalisation can be simply defined as a process by which different businesses or other
companies develop global influence or begin operating on world wide level. It is nothing but the
increase in interaction of citizens, states, or nations via the growth of inter - nationalistic flow of
revenue, cultures and ideas. It is mainly considered as an economic procedure of integration that
has societal and cultural prospects. It offers free transferring of capitals, products and services in
all over national frontiers. Therefore, it minimises the decrement of the export and import
limitations and allows firms for exchanging their goods or services without any restrictions for
the same. Thailand is a good example as it experiences both negative as well as positive effects
of globalisation in last 20 years (Adekola and Sergi, 2016). The sum of foreign direct investment
into Thailand skyrocketed in the second half of 1980s, and as a result, the economic condition of
this nation grew at an unprecedentedly higher rate. Even so, currency and financial crisis in 1997
altered those trends drastically. Due to this, value or price of real estate and stocks declined and
numerous of banks and commercial enterprises went bankrupt. But after some years, this
scenario changes and situations in Thailand becomes better in terms of economy. This has been
recognised that it comprises of progressively high FDI due to tour and travel industry.
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Coming to internationalisation, it is a process of enhancing development of companies in
international markets. There has been observed so many positive consequences of this
phenomenon. In Thailand, tourism sector receives tremendous improvement since various
enterprises of different countries started to invest in this sector , having a motive to earn large
sum of profitability (Torres, Fu and Lehto, 2014). Thus, a fruitful outcome, this nation began
developing in terms of economy, technology , education, diversity as well as tourism. Now,
Thailand is known as hub of tour and travel places as companies existing here are providing
cheap tourism services. Due to this reason, large number of investors desire to spend their money
in this country and in turn it becomes a cross - cultural place as people of different cultures start
establishing there.
A PESTLE analysis of the hospitality sector in Thailand
As 'The Rosevine' wishes to invest its revenue in a new country so that they can earn high
amount of profits. For this, it can be said that Thailand is a best nation whereby entrepreneurs
can do investment in travel and tour sector. But before, doing this, management of Rosevine
needs to examine the impacts of external factors such as legal system, technological aspect,
social prospects, economy and many more components existing in business environment of
Thailand on their own business of hotel. In order to perform the same , company requires to
conduct PESTLE analysis which is stated below :
 Political factors : Political factors of Thailand is highlighting on domestic political
tensions which is between tow big groups that is Yellow – shirt and red – Shirt. The
major issue is arisen from the contrasting believes in politics of Thai civilians. Red – shirt
have been observed protested at the East Asia Summit which was occurred in Pattaya.
Furthermore, this group was seen struggling with Thai army where in actions of
aggression including bombed and firing to department stores happened (Liu and et. al.,
2014). On the other hand, yellow shirt have also demonstrated and found closed to the
Suvarnabhumi Airport that is considered as main international airport in Thailand.
Therefore, Rosevine has to focus on such issues and should prepare themselves for
tacking these in advance.
 Economical factor : In previous years, financial crises were reported in mentioned
nation. But after time passes, economy of Thailand starts recovering since large number
of firms have been investing at this place. In turn, economic conditions is being
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controlled by service sectors that are giving around 55.9 % to the overall GDP in the year
of 2016. Apart from this Thailand's government is also concentrating or working for
increasing their investment funds and are spending them for accomplishing numerous of
projects. This would assist furthermore in the development of several sectors like
medical, infrastructure, biofuels and digital hub (Dredge, Airey and Gross, 2014). Thus,
if cited firm will set up their hotel business , then they achieves various types of benefits
and could maintain a strong position there. Apart from this, government of Thailand also
promote newly developed companies as they are providing employment to large number
of unemployed people. So, it is proved to be very profitable for Rosevine.
 Social factor : This comprises of all matters related with society such as their living style,
health conditions, taste and preferences of citizens surviving in a specific country. People
in Thailand are of diverse culture, so their standard of living are variant in nature. Thus,
company has to conduct a survey for this in order to identify as well as understand the
culture or beliefs of such people. After this, they need to recruit skilled workers for
delivering best quality services such as accommodation, healthy as well as tasty food
stuffs, transportation facilities and so on. Additionally, they should also consider
emergence of foreign travellers and should offer them services as per their needs or
demands as well. This is to be noted that target group of tourism in entire segment of
Thailand has been categorized into three sectors named as Asian, European and America
market. Hence, firm should arrange their goods or services in accordance to this.
 Technological factor : Technological factors in this nation is also so improved which
would aids Rosevine in running its commercial operations adequately in very less time
(Barak, 2016). This has recognised that Thailand's Government are focussing on
development of information technology in order to upgrade and enhance their
capabilities. Reosvine should also concentrate utilising numerous of modern technologies
such as online booking , internet banking and many more for doing their business in
effective manner.
 Environmental factor : The climatic situations in mentioned country (Thailand) is
tropical in nature having a mean annual temperature of 28°C and high level of humidity.
There are usually three distinct period of time – the hot season that is from March to
May, the cool season which occurs from November to February and the rainy season that
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emerges from about June to October. Thus, a variety of weather can be seen here and this
is a plus point for Rosevine as they could formulate their services and deliverables as per
the specific climate conditions. By this way, they can seek attention of large number of
travellers towards them and earn higher profitability (Wood and St. Peters, 2014). The
best time to stay there is between November and March when the weather of this place is
optimum as customers can be able to attain full benefit of beaches of Thailand. This has
been examined that November to March is also considered as primary period of national
and territorial festivals of this nation. Therefore, corporation can achieve a large number
of opportunities to attract more and more tourists.
 Legal factor : This comprises of government policies and norms that is being designed
by legal bodies of Thailand in order to deal with terrorism, working system, corruption,
etc. Any firm which is going to set up their business there have to follow those
regulations. Therefore, Rosevine also has to perform their hotel business in accordance to
governance of that nation. For example, they need to adopt all such rules for running their
operations in organised and ethical manner.
Relevant cultural dimensions of Thailand
Prior to start any business, it is eminent task to get familiar with the cultural aspects of
that place where investors are going to spend their money. Hence, ' The Rosevine ' should also
understand about the culture of Thailand so that they can meet demands or necessities of people
living their as they are interesting in setting a hotel at that place. Thailand is suited between
Myanmar, Cambodia and Laos, with the Gulf of Thailand to its south. Thus, it can be said that its
tradition is considered as mixture of strong Chinese culture, Indian influences and components
that are uniquely Thai (Tjosvold, 2017). They are having diverse geographic, friendly people and
beautiful scene. Hence, it is famous as the “Land of a Thousand Smiles “ and every one should
visit this destination.
Thereby Rosevine should design their hotel and its accommodation facilities as per the
culture of this location so that people feel surprising and happy. In addition to this, they should
also consider their food traditions. Rice is investigated as essential foodstuff at all meal for
almost entire civilians. Additionally, people surviving here love to eat spicy dishes with gravy,
soup, side dishes and salads. On the other hand, in southern and central Thailand, citizens usually
consume white rice. At the same time, north and north east population used to intake sticky rice.
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Besides this, shellfish and different other varieties of fish is very famed and they love to eat this
also. Apart from this, several other food are liked by people such as curries, noddles, cuisine,
sweets, papaya salad, etc. Therefore, Rosevine needs to focus on such food items and should
offer them same in order to meet their desires appropriately (Oh and Hsu, 2014). They also need
to consider the festivals seasons of this place and plan their business in accordance to that. This
will help them in making more and more customers and earning high amount of turnover every
year.
Threats, Opportunities, Weaknesses and Strengths of Thailand
In order to establish do global hotel investment in mentioned nation, it is very important
to know about the strengths, weaknesses, opportunities as well as threats this place. For doing
this, it is essential to conduct SWOT analysis of Thailand which is discussed as follow :
Strength :
 Thailand is one of the powerful country that is comprising of large number of beautiful
and cultural location that draws attention of numerous of people towards their natural
beauty. In this place, there is availability of qualified work - forces , hence Riosevine can
start its commercial activities as they can easily found skilled employees.
 This has been observed that there is very low cost of production. Hence, company can
manufacture its goods and services at extremely low prices.
 It consist of abilities for working in authentic partnerships and engross stakeholders at
national, local and regional levels (Ersoy, 2014). Thus, emerging firm can build effective
partners and expand their business accordingly which is proved to be very advantageous
for them. It also comprises of varieties of seasons that occurs at particular time interval. Thereby
enterprise can draw attention of large number of visitors by offering them suitable
services in accordance with the respected weather situations.
Weaknesses :
 Thailand has lower level of investment in research and development field. As a result, it
comprises of inadequate scientific infrastructure. So, cited firm should focus on this area
so that they do not make feel unsatisfied to their clients.
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 Apart from this, in Thailand there is insufficient educational quality, thus Rosevine has to
think about it and should arrange trainers in advance so that they do not face any kind of
problem after doing investment (Li, 2014). This country faces financial crises few years ago , so there is possibility of same action in
upcoming days.
Threats :
 Numerous of companies are wishing to start their tourism business in Thailand. So, this
would create high level of competition that impacts adversely on performance of
Rosevine.
 There are so many legal rules and regulations that is being imposed by government
bodies. Hence , enterprise has to focus more on governance.
 This has been observed that there exist scarcity of natural resources like water, energy,
soil, food, etc. Additionally, quality of such assets is also very poor. This will impact
adversely on the health of people.
 Changes of climate are is dynamic in nature, hence, it alters randomly. Therefore, if
company will invest here then they would face several issues in terms of their business. Besides this, large number of ageing social group are existing in same nation. This would
lowers the production and innovative ideas in context to tour and travel industry.
Opportunities :
 Large number of firms are going to begin their business in Thailand. Thus, this will
improve its current economic or financial situation and helps it in becoming a developed
country (Stephenson, 2014).
 In addition to this, this nation is gaining vast popularity since it is being connected with
different other continents or regions.
 Thailand is consisting of cross – cultural population thus, it is encouraging different
groups to invest their money regarding business as it will be beneficial for them and this
nation as well.
CONCLUSION
From the above based report, it can be concluded that Thailand can considered as best
example of cross cultural nation where in citizenry are having divers customs and philosophies
are surviving jointly happily. In this country, there are numerous of beauteous places that is
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seeking attention of large number of traveller from all over the world towards their beauty. So,
Rosevine can choose Thailand as a place for starting their new business effectively. But before
this, they need to understand or look after their macro environment factors such as situation of
governance, technology, economy, environment, legal norms and regulations, etc. of that
location. For this, they need to conduct PESTLE analysis which has been covered in this report.
In addition to this, Rosevine also requires to explore or know about their strength, weak factors,
threats and opportunities as well so that they can understand their potential and take appropriate
actions after this. For doing the same, it is essential to carry out SWOT analysis that has also
been discussed in this assignment.
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REFERENCES
Books and journals
Moran, R. T., Abramson, N. R. and Moran, S. V., 2014. Managing cultural differences.
Routledge.
Adekola, A. and Sergi, B. S., 2016. Global business management: A cross-cultural perspective.
Routledge.
Torres, E.N., Fu, X. and Lehto, X., 2014. Examining key drivers of customer delight in a hotel
experience: A cross-cultural perspective. International Journal of Hospitality
Management. 36. pp.255-262.
Liu, W. and et. al., 2014. Globalization or localization of consumer preferences: The case of
hotel room booking. Tourism Management. 41. pp.148-157.
Dredge, D., Airey, D. and Gross, M. J. eds., 2014. The Routledge handbook of tourism and
hospitality education. Routledge.
Barak, M. E. M., 2016. Managing diversity: Toward a globally inclusive workplace. Sage
Publications.
Wood, E. D. and St. Peters, H. Y., 2014. Short-term cross-cultural study tours: impact on cultural
intelligence. The International Journal of Human Resource Management. 25(4). pp.558-
570.
Tjosvold, D., 2017. Cross-cultural management: foundations and future. Routledge.
Oh, H. and Hsu, C. H., 2014. Assessing equivalence of hotel brand equity measures in cross-
cultural contexts. International Journal of Hospitality Management. 36. pp.156-166.
Ersoy, A., 2014. The Role of Cultural Intelligence in Cross-Cultural Leadership Effectiveness: A
Qualitative Study in the Hospitality Industry. Journal of Yasar University. 35(9).
Li, M., 2014. Cross-cultural tourist research: A meta-analysis. Journal of Hospitality & Tourism
Research. 38(1). pp.40-77.
Stephenson, M. L., 2014. Deciphering ‘Islamic hospitality’: Developments, challenges and
opportunities. Tourism Management. 40. pp.155-164.
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