Strategic Analysis of Mandarin Oriental Hotel Group & HR Approach

This report provides a detailed analysis of the Mandarin Oriental Hotel Group, a luxury hotel and resort management company. It examines the company's organizational structure and HRM approaches, emphasizing a strategic approach to people management. The analysis includes an evaluation of the external environment using PESTEL and Porter's Five Forces, assessing political, economic, social, technological, environmental, and legal factors, as well as industry competition, the threat of new entrants, the power of suppliers and buyers, and the threat of substitute products. The internal environment is scrutinized using VRIO analysis and the BCG Matrix, identifying the company's value, rarity, imitability, and organization, along with its stars, question marks, cash cows, and dogs. The report concludes with recommendations for improving the company's processes and functions. Desklib offers this and many other solved assignments for students.

Mandarin Oriental Hotel
Group

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Introduction of the business, organizational structure and HRM approach................................3
Analysis of external environment with appropriate analytical tools...........................................4
Analysing the internal environment and human resource with appropriate analytical tools......6
Strategic position and strategies, including HR..........................................................................7
Srategic response and evaluation of strategies............................................................................9
Recommendations.....................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Mandarin Oriental Hotel Group is the management and hotel group which focuses on
providing the luxury to the customers worldwide such as luxurious residences and resorts (Chew,
2018).
The report will analyse organizational structure and the HRM approaches which will be used
by Mandarin Oriental Hotel Group. Further, external environmental analysis will be analysed
and described in detail with elaboration of PESTEL and Five Force Model. Moreover, internal
environment analysis will be discussed with the current strategic position of the company. And
then finally, recommendations will be provided for the changes and modifications needed within
the company processes and functions effectively and appropriately.
MAIN BODY
Introduction of the business, organizational structure and HRM approach
The Mandarin Oriental Hotel Group (MOHG) is Hong Kong Hotel management and hotel
group which focuses on providing luxury hotels, residences and resorts worldwide. The
Mandarin Oriental Hotel Group helps in providing the customers best of their services and
products along with the five star facilities.
The organizational structure of Mandarin Oriental Hotel Group focuses on how the structure
of organization is framed for the employees to work effectively and deliver positive results at
large scale within the business environment (Ferreira, Mueller and Papa, 2018).
Vision – To be recognized as the best hotel groups in the world.
Mission – To delight the guests and satisfy them with the services which helps in distinguishing
in the eyes of customers (Giné, Mansuri and Shrestha, 2020).
There are certain HRM approach which are analysed and identified at for Mandarin Oriental
Hotel Group are defined as –
Strategic Approach – This approach which is strategic focuses on people management.
Organizational development inventions are analysed at large scale which helps in creating value
for the organizational fits and the aspects which helps in knowing that employees add value for
the organization. Mandarin Oriental Hotel Group follows soft approach.

Recent Developments of Mandarin Oriental Hotel Group – The organization has announced
that it will manage a luxury hotel in Dallas, Texas (Chutivongs and Gerdsri, 2019). Therefore,
these are some of the important information which is being analysed and provided for the proper
evaluation of how the Mandarin Oriental Hotel Group is working effectively and efficiently
(Bohne, 2021).
Analysis of external environment with appropriate analytical tools
The PESTEL is explained as follows –
Political – Mandarin Oriental Hotel Group is influenced by the infrastructure of the country. The
political aspects such as employment laws, tax policy, environment regulations, political stability
and reforms have been the major points for consideration (Pan, Chen and Zhan, 2019). UK
government has reduced new rule by 5% on 8th July 2020 which has increased the cost of doing
the business for Mandarin Oriental Hotel Group. There has been political stability which has
encouraged the aspects as to how the transformation is done in an appropriate and enlarged
manner at large scale.
Economic – This factor involves interest rates, inflation, working hours, exchange rates. All
these factors impact the aspects as to how the changes are being observed at large scale within
organization. Covid has impacted on the business of Mandarin Oriental Hotel Group as there are
less numbers of customers which are engaged in travelling and this has restricted them to utilize
the facilities of Mandarin Oriental Hotel Group.
Social – There are certain social influential factors which affects the growth of the Mandarin
Oriental Hotel Group and denotes that the company is facing major changes due to the social
factors in the society in the country.
Technological - Mandarin Oriental Hotel Group becomes competitive in the market which helps
in understanding the aspects as to how effectively and in appropriate manner the changes are
being driven (Nurmi and Niemelä, 2018).
Environmental – The awareness of seasonal and climate change helps in understanding that
what impact it has on the organization. The environmental factor influences the working of the
organization.

Legal – There are certain laws and regulations which are being addressed at large scale and this
helps in knowing that Mandarin Oriental Hotel Group needs to follow all the legal rules and
regulations effectively (Madse and Grønseth, 2022).
Another model which is being taken for external environment analysis is Five Force
Model which is explained as –
Competition in the Industry – There is higher level of competition in the industry which helps in
analysing that how effectively Mandarin Oriental Hotel Group is competing with the rivalries in
the market (Çitilci and Akbalık, 2020). Mandarin Oriental Hotel Group has to follow some major
strategies which helps in achieving and competing with the competitors.
Potential of New Entrants – There is higher risk of new entrants in the market which increases
the competition at large scale. Also, the new entrants may have some profitable values which
may decrease the value of Mandarin Oriental Hotel Group. Mandarin Oriental Hotel Group
should also be aware of the new entrants in the market as there are lot of changes which have
been going on within the structure of Mandarin Oriental Hotel Group.
Power of Suppliers – It is the major aspect in which the Mandarin Oriental Hotel Group is taking
concern of how effectively and in appropriate manner the suppliers are in the stage of gaining
more profits for the company. Hence, the suppliers raise the prices and reduce the availability of
the services and products there are many concerns which are essential for the company at large
scale.
Power of Buyers – The power of buyers or customers in the market is high for the products and
services of Mandarin Oriental Hotel Group (Bruijl, 2018). The products and facilities of
Mandarin Oriental Hotel Group have been compared to many other brands but the impact of the
customers is much higher and at large scale.
Threat of Substitute Products – There is large threat of substitute products through which the
Mandarin Oriental Hotel Group products can be replaced. This makes the threat to the scales of
profitability for the organization (Hole, Snehal and Bhaskar, 2019). The substitute products of
Mandarin Oriental Hotel Group are Four Seasons Hotel, Fairmount Hotel and Resorts.
Competition in the Industry – There is
higher level of competition in the industry
which helps in analysing that how
effectively Mandarin Oriental Hotel
Group is competing with the rivalries in
the market (Çitilci and Akbalık, 2020).

.
Potential of New Entrants – There is
higher risk of new entrants in the
market which increases the
competition at large scale. Also, the
new entrants may have some
profitable values which may decrease
the value of Mandarin Oriental Hotel
Group. Higher level of investment is
required and this helps in addressing
that the potential of new entrants helps
in competing in the market.
Power of Suppliers – It is the
major aspect in which the
Mandarin Oriental Hotel
Group is taking concern of
how effectively and in
appropriate manner the
suppliers are in the stage of
gaining more profits for the
company.
Yes, this affects the business
model which is being taken
and explained effectively.
Power of Buyers – The power
of buyers or customers in the
market is high for the
products and services of
Mandarin Oriental Hotel
Group (Bruijl, 2018).
There will be no damage to
the brand as there will be high
demand of products in market
of the organization.
Threat of Substitute Products –
There is large threat of substitute
products through which the
Mandarin Oriental Hotel Group
products can be replaced. This
makes the threat to the scales of
profitability for the organization
(Hole, Snehal and Bhaskar, 2019).
This is addressed as the threat
which the substitute product is
having.

Analysing the internal environment and human resource with appropriate analytical tools
The internal environment and human resource for Mandarin Oriental Hotel Group is
explained by applying VRIO Analysis –
VRIO Analysis – VRIO analysis is the technique which helps in analysing the company’s
resources and along with that the competitive advantage. There are four initial analysis aspects
which are mentioned as –
Value – The value of the Mandarin Oriental Hotel Group helps in analysing that there are certain
factors which are valuable for the company at large scale (Nel, 2018).
Rare – This aspect analysis that there are certain factors which are rare in the organization and
this helps in knowing that they are rare.
Imitate - Mandarin Oriental Hotel Group has imitable actions which are represented in the
market. It outlines the factors which are similar to other organizations. This helps in developing
competitive edge in the market (Buzatu, Pleșea, Iulian and et.al., 2019).
Organization – It includes functions and resources so that the value of Mandarin Oriental Hotel
Group is maintained. It helps in understanding that what are the essential things which are to be
included.
With the help of BCG Matrix analysis, the internal environment can be explained more
appropriately and effectively (Buzatu, Pleșea, Iulian and et.al., 2019).
STARS
Leads to high amount of cash
consumption and requires heavy
investment to maintain large market
share for the market analysis of
Mandarin Oriental Hotel Group. Yes,
stars factors is being possessed in
company due to competitive profound
working.
Yes, it offers high amount of
financial services.
QUESTION MARK
Understands products and services of Mandarin Oriental
Hotel Group have high growth but the products are not
fully eligible in the market and thus have low market
share.
Mandarin Oriental Hotel Group

CASH COW
Generate more cash than required and
extract the profits by investing largely
for the Mandarin Oriental Hotel
Group.
DOGS
Low growth and low market share which is being
created at large scale. In this stage the business of
Mandarin Oriental Hotel Group may decline.
Specific things which comes under star and dog are –
Star (High Growth, High Market Share) – Product in high growth markets with high market
share is being described in the star factor within BCG model matrix. The growth rate of the
product is being explained in the star aspect which helps in understanding the product in the
market with specific details mentioned. Example – The services of Mandarin Oriental Hotel
Group are the star aspect for the BCG matrix.
Dog (Low Growth, Low Market Share) – These are the products which have low growth or low
market share. This is the specific thing which is included in the dog factor within BCG matrix.
This is the stage which declines the products and services of the company Mandarin Oriental
Hotel Group. Example – The strategy of providing the services and products to the customers
comes under dog aspect of BCG matrix (Torquati, Scarpa, Petrosillo and et.al., 2018).
Question (High Growth, Low Market Share) – These are the products or business unit with a
low market share but in high growth market. The product has an opportunity to increase the
market share and help in dominating the market by providing it to the customers’ at large scale.
Example - Hence, the services and facilities of Mandarin Oriental Hotel Group are in the
question mark unit of BCG matrix.
Cash Cow (Low Growth, High Market Share) – Cash cows are the part of the industries which
are slow growing and they have large scale of market share which helps in requiring minimal
investment to thrive. This is the major concern which has been analysed and taken into concern.
Example - The supply strategy of Mandarin Oriental Hotel Group lies in the cash cow as the
products and services have high market but low growth rate (Torquati, Scarpa, Petrosillo and
et.al., 2018).

Strategic position and strategies, including HR
VRIO analysis will enable to pertain strategic position, functional extended business
goals and derive untapped parameters worked on actively.
 Value: Mandarin oriental hotel hospitality services are highly valuable, authentic and
competitively advanced for improved on towards gaining customers goodwill. There is
value attached, systematic and also authentic towards bringing extended derived
benchmarks based on quality oriented domains. Value of business services are diversely
strong as its one of the top ranked hotel, and possess crucial customer goodwill
(Nanayakkara, Wickremasinghe and Samarasinghe, 2022).
 Rarity: The rarity factor is missing, where Mandarin Oriental Hotel services are not rare
at present due to increased competitive business benchmarks rising within industry.
Customers preferences are also increasing where this signifies that rarity factor is less
vitally present, in favor for company. Rarity factor holds importance, which explains that
Mandarin Oriental Hotel services are not rare at present as competitive diversity is rising. Imitability: As per imitability analysis, Mandarin services within hospitality can be
imitated and are not unique due to huge new innovation coming up within hospitality
industry paradigms. Hospitality services are imitable at present, and need to further
advance up scope on business services for developing competitive growth goals within
longer run.
 Opportunity: New innovation opportunities within digital transformation is there for Mandarin
Oriental Hotel, as extensive business expansion has to be worked on for retaining untapped
growth (Nanayakkara, Wickremasinghe and Samarasinghe, 2022).
HR strategies analysis:
Mandarin Oriental offers some exciting hotel dining in world within hospitality industry, where
aim is to create memorable dining experiences for all customers. With total of 25 Michelin Stars
in 2021, there is list across global portfolio of 35 hotels globally which has enabled company to
diversify extended benchmarks. There are 12,000 employees working in Mnadarian Oriental
Hotel where there are extensive career opportunities to learn and experience within business in
hotel. HR at Company is diversely wide to fucntionally enhance employees learning experience,
diversify extensive determined long term goals for optimum wellness (Schühly, 2022).

.
SWOT model:
 Strengths: Mandarin Oriental company hospitality strategies are stringently wide and
innovative for serving patients with best extended innovation, to pertain towards
extensive scale benchmarks. Brand goodwill among customers is strong, and there is
wide scope for brand innovation and optimized structural wellness (Campos and et.al,
2022). Mandarin Oriental company hospitality standards are widely advanced, for
bringing customers best services which has increased rapid scale competent goodwill.
 Weaknesses: There is high competition within hospitality industry, where innovation
demands are huge for extensive scale to be worked on for Mandarin Oriental company.
 Opportunities: There is wide scale opportunity, for company to further vitally develop new
range of hospitality standards within business among customers. With new development
coming up in business opportunities, Mandarin Oriental hotel hospitality services can be
further diversified Biswa and Akroyd, 2022). Threats: With varied competition factors rising, threat of rapid fluctuations within
external business grounds is also increasing for company to optimize new extended
services in hospitality. Threat of competitive business, and increased demands among
varied ranging customer preferences has significant impact among customer’s
preferences.
Strengths:
Strong brand identity into global
business environment.
Best hospitality services.
Opportunities:
New international expansion
opportunities.
New investments into digital
technologies
Weaknesses:
High competition within hospitality
industry.
Changing customer’s preferences
Threats:
Rapid fluctuations in
international business
grounds

Strengths
 Strong brand identity into global
business environment.
 Best hospitality services.
 Extended innovation
 Advanced customer services in
Mandarin Oriental Hotel Group.
Weaknesses
 High competition within hospitality
industry.
 New customer demand rising.
Opportunities
 New range of hospitality standards
within business among customers.
 New brand opportunities to expand
commercial goals.
Threats
 Varied competition in Mandarin
Oriental Hotel Group.
 Rapid fluctuations within external
business.
 Threat of competitive business.

Strategic response and evaluation of strategies
 Suitability: The degree of suitability, in correlation to Mandarin Oriental enables to analyze
that company services within hospitality industry has various alternatives. There is
competitive functional diversity for company to develop on for extensive scale growth, and
retain extensive expansion. Suitability factor holds importance, for business to determine
rapid scale growth and generate technical competitive goodwill (Schühly, 2022). Accessibility: There is also significant accessibility factor, where business goals
formulated by Mandarin Oriental company are accessible easily through digital
platforms. There is extended performance growth, for improved on functional goals to
improvise wider scale benchmarks. Accessibility factor further opens up scope for
company, to optimize best services availability and generate optimum records effectively.
 Feasibility: The feasibility factor further opens up scope for company to use new
advanced resourceful growth resources and develop rapid growth in various customer
goodwill paradigms. However, there is still scope for company to work on towards
delivering extended expansion within feasible goals (Cruz-Ruiz and et.al, 2022).
Recommendations
New strategic investments to be undertaken: Strategic investment increase, will enable
Mandarin Oriental Company to widely expand new scale hospitality services functionally within
longer time period. Better strategic management into training for workforce, will enable
company to extensively enhance new scale growth domains (Back, Park and LaTour, 2022).
Kinds of investments - virtual hospitality training sessions for workforce, and
develop rapid advancement for determined potential growth on varied determinants.
 Competitive international expansion: Mandarin Oriental Company has to further
advance on scope for providing best hospitality management delivery, and optimize
wider scale functional growth within customer’s services for brand goodwill rise.
Expanding into untapped international places, will enable hotel to expand best business
services.
The suggestion regarding the location is international; expansion to the specific
places such as Australia, Sydney, US and many other locations.
 Adopting digital automation services within virtual services: Mandarin Oriental hotel
also has scope to innovatively expand commercial benchmarks, and generate virtual