International Business: Palace of Golden Horses Market Analysis Report

This report examines the potential of the Spanish market for the Palace of Golden Horses, a Malaysian business. It begins with an overview of the company's services, including Palace Cruise, Healthcare & Wellness, Wedding packages, Golf, Meeting facilities, Dining options, and various Rooms and Suites. The report then delves into market analysis, covering target market segmentation (geographical, demographic, and benefit), the economic and political environment of Spain, including its regulatory efficiency and open market, and cultural aspects such as architecture, language, and religion. It also assesses the hotel market performance in Spain, including tourist arrivals and foreign investment, while identifying key competitors. Finally, the report concludes with a recommendation for market entry strategy into Spain, proposing a detailed plan for successful international business expansion. The report provides a comprehensive analysis of the Spanish market and offers valuable insights for the Palace of Golden Horses to make informed decisions.

SUBJECT: INTERNATIONAL BUSINESS
COURSE CODE: BAGB2023
TOPIC: GOING GLOBAL (INVESTING MARKET IN FOREIGN
COUNTRY)
GROUP MEMBERS NAME AND MATRIC ID SEMESTER
MARVINRAJ NADAR (MC200110397) BBA – SEMESTER 2
THIVIYA D/O VIJAYASEGAR (MC200110433) BBA – SEMESTER 2
MOHANARAJAN S/O VIVEKANANTHAN (MC190909792) BBA – SEMESTER 3
VAASHINI D/O LETCHUMANAN (MC190909800) BBA – SEMESTER 3
SUBMISSION DATE: 27/06/2020
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Table of Contents
1.0 Introduction 4
2.0 Product and Business 5
2.1 Palace Cruise 5
2.2 Healthcare & Wellness 6
2.3 Wedding 7
2.4 Golf 7
2.5 Meeting 7
2.6 Dining 8
2.7 Rooms and Suites 8
3.0 Target Market 10
3.1 Geographical Segmentation 10
3.2 Demographic Segmentation 10
3.3 Benefit Segmentation 10
4.0 International Markets 10
4.1 Economic of Spain 10
4.2 Background of Spain 11
4.3 Rule of law 11
4.4 Government of size 12
4.5 Regulatory efficiency 12
4.6 Open Market 12
4.7 State focus in the country 12
5.0 Ideology of Spain 13
5.1 Government and Society 13
5.2 Local government 14
5.3 Justice 14
6.0 Cultures 15
6.1 Architecture 15
6.2 Language 15
6.3 Religion 15
7.0 Hotel Market Performance of Spain. 16
7.1 Tourist Arrivals and Demand 16
7.2 Foreign investors in Spain. 16
7.2.1 Investing in Spain 17
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8.0 Competitors in Spain. 17
8.1 Sheraton Hotel. 17
8.2 Spanish on holidaying. 17
8.3 Average amount of spending in Spain.18
9.0 Conclusion 18
10.0 Recommendation 18
10.1 Market entry strategy 18
11.0 Conclusion 19
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1.0 Introduction
The report was assigned for us to do research about is attractiveness of a foreign location as
a market for a Malaysian product/service and propose to how to enter the market. In
Malaysia, there has many businesses to approach in foreign country.
2.0 Product and Business
Palace of Golden Horses has many services to provide with customers. Overall, they have
six services can provided and how it producing in manner of attracting the customer. Golden
Horse Palace Berhad was first incorporated on 11 July 1992 and is the subsidiary of Country
Heights Holding Berhad, a public company of limited liability incorporated in Malaysia. Over
500 employees are working in the hotel and its chain hotel owned by Mines Wellness City.
2.1 Palace Cruise
One of the key highlights of Palace of the Golden Horses is the convenience of its Palace
Cruise service which links the entire integrated city by water. Customer will enjoy the
tranquility of the lakes, feast the eyes view of customer on the lush surroundings and steep
in history as to find out more about the fascinating history of the MINES lake.
Palace Cruise also offers other activities such as the DME Cruise, Sunset Dining Cruise,
Sightseeing Cruise, Shuttle Services, Wa Wa Splash and Fish & Co This luxurious double-
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decked beauty offers customers an exciting full-range of fun-filled activities while the meet,
dine and entertain on-board. As the host customer private function in luxurious and
comfortable settings, be mesmerized by the panoramic and breathtaking view of The Mines.
• DME Cruise: Dining Meeting Entertainment (DME) Cruise
This luxurious double-decked beauty offers an exciting full-range of fun-filled activities, dine
and entertain on-board. As the host customer’s private function in luxurious and comfortable
settings, be mesmerized by the panoramic and breathtaking view of The Mines. On DME,
the guests are assured of a memorable time while cruising on the waters of The Mines. Step
up to this double-decked Beauty, with an open-air upper deck for a pleasant breeze of fresh
air, and to the air-conditioned lower deck, for a private function with a special touch.
• Sightseeing Cruise: Explore the history of the largest open cast tin mine in the world.
Sail past gorgeous landscapes of Mines Resort & Golf Course and the white sandy
beaches of Philea Mines Beach Resort.
Type of cruises in Sightseeing Cruise:
• Water Taxi – Greenery Cruise @ South Lake: 13 Person maximum capacity per
water taxi
 Adult: RM25 | Child: RM18
• Discovery Cruise @ North Lake: 13 Person maximum capacity per water taxi
 Adult: RM30 | Child: RM20
• Amazing Cruise @ North & South Lake: 13 Person maximum capacity per water taxi
 Adult: RM40 | Child: RM25
• Shuttle Service @ North Lake: 13 Person maximum capacity per water taxi
 RM12/Pax per way (min 5pax)
• Wawa Splash Tour: The 1st amphibious tour in Malaysia. Discover the Mines
Wellness City on a unique 30-minute sightseeing adventure onboard the splash boat.
Hop on this amphibious craft now for a sightseeing tour which covers both land and
lake.
 Minimum 15 & 48 persons maximum and price for Adult: RM30 | Child:
RM20
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• Cruise Charter: The cruise boat is ideal for just any type of functions from birthday
celebrations to friends’ reunion and/or farewell, family outing etc. Accommodating up
to 8 persons maximum, this cruise boat is a perfect choice for small themed parties.
It’s provided boat charter service and/or all-inclusive package.
• Sunset Dining Cruise: This for a romantic place surrounded by stunning lake views
from a magnificent cruise with a touch of privacy dinner for couple persons. Make to
enjoy finest in gourmet cuisine as take in the breathtaking view at sunset in the
middle of the MINES Lake. The option can personalize arrangements, tailoring the
event to suit customer needs.
 Cruise Duration: 1 Hour 30 Minutes
 Dinner Time: 6pm onwards (Daily Departure)
2.2 Healthcare & Wellness
GHHS Healthcare, Chinese Medical Centre and Wellness Centre is the first in Malaysia to
offer professional and comprehensive preventive healthcare approaches amidst and idyllic
resort setting. With professional expertise and highly sophisticated diagnostic equipment,
they are able to provide all members with the very best care and technology available. With
a level of service comparable to any 5-star hotel, surrounded by health, tranquility and
relaxation, that experience will be anything but cold or clinical. These results are interpreted
by professional consultants and medical officers to provide with the best diagnosis and
medical plans. The lifestyle modification plans empower with the knowledge and tools to
keep customer’s health at its peak.
 GHHS Healthcare (Health Screening): such as Medical Laboratory Centre, Medical
Imaging, Diagnostic & Nursing Centre (D&N), Health & Dietetic and Juice & Healthy
Meal Bar
 Preventive Clinic: ENT Specialist, Heart Clinic, Internal Medicine Physician,
Metabolic Syndrome & Obesity Clinic, Eye Care Clinic and Longevity & Age
Management Clinic
 Genetic Screening: Discover Risks for Genetic Illnesses Early, Understand Rare
Genetic Disorders and Get More Effective Medicine
 TCM – Traditional Chinese Medicine: RM 160 for 60 minutes.
2.3 Wedding
Exquisite landscaped gardens, set against an immense 150-acre lake, form the backdrop for
the grandiose Palace of the Golden Horses. With its distinctive Moorish-Malaysian
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architecture reminiscent of mythical and magical lands, this luxury hotel provides couples
with the ideal setting for their very own fairy-tale wedding.
 Package available:
 Malay Wedding Package: Rajawali 1 @ RM1,388nett per table of 10pax,
Rajawali 2 @ RM1,488nett per table of 10pax, Rajawali 3 @ RM1,588nett
per table of 10pax.
 Chinese Wedding Package: Peony 1 @ RM1,688nett per table of 10 pax,
Peony 2 @ RM1,980nett per table of 10pax, Peony 3 @ RM2,588nett per
table of 10pax
 Indian Wedding Package: Maharaja 1 @ RM1,388nett per table of 10pax,
Maharaja 2 @ RM1,488nett per table of 10pax, Maharaja 3 @ RM1,588nett
per table of 10pax
 International Wedding Package: The Royals 1 @ RM138nett per person,
The Royals 2 @ RM158nett per person, The Royals 3 @ RM178nett per
person.
2.4 Golf
Mines Resort & Golf Club: Mines Resort & Golf Club has always distinguished itself by
raising the bar of excellence in the quality of its championship golf course, service culture,
and the sportsmanship and professionalism exemplified by its members, guests and service
staff. The course is a 18-hole course with facilities such as driving range, putting greens,
rental carts and trolleys with caddies and a Pro Shop to enhance gaming proficiency.
2.5 Meeting
Experience the famed professionalism when the host will be memorable moments at the
venue. Having hosted countless world-class meetings & conferences, not forgetting
weddings and receptions.
 M.I.C.E: Having garnered awards after awards for our MICE facilities and services,
our accolades speak of our expertise in organizing events.
 Package Available: Half Day Meeting Package (from RM78 per person per day),
Full Day Meeting Package (from RM108 per person per day).
2.6 Dining
The hotel has a total of six (6) F&B outlets for our guests to indulge in local and international
cuisines, prepared by award-winning chefs and served by teams of dedicated staff.
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 Polo Lounge and Karaoke: Palace of the Golden Horses offers an escape to a
whole new world of enjoyment and relieves. Discover the challenge of the
magnificent Karaoke arena and enjoy the hit of superb collection of wine, beers and
delectable snacks selection.
 Carousel International Coffeehouse: The largest restaurant is an all-day dining
restaurant with a fairground setting offering à la carte and buffet for breakfast and
dinner.
 Grand Salon Lobby Lounge: With a majestically designed architecture overlooking
the MINES scenic lake, the picturesque Grand Salon offers a cozy atmosphere
where customers can enjoy light music while sampling afternoon tea or evening
cocktails.
 Kim Ma Chinese Restaurant: An exquisite yet relaxing dining place where guests
are fêted to gastronomic delights of that fusion Chinese cuisine.
 Kin No Uma Japanese Restaurant: Offering only the freshest and most premium
ingredients, Kin No Uma seeks perfection in every roll of sushi. Famed for its Sashimi
and Bento boxes, the masterful chefs take pride in every slice of salmon and every
mold of wasabi that leaves the kitchen. Customer peak seat by choosing either the
traditional tatami floor sitting room or the modern chair sitting and bask in the
contemporary Japanese atmosphere.
 Unicorn Café: For the finest cakes and pastries, this is the place to be more
delightful for pastry lovers. Further, the place is small and well divine atmosphere.
2.7 Rooms and Suites
 Deluxe Room: With a total of 400 rooms, the Deluxe Room has a comfortable
dimension of 40 sq.m. Guests are entitled to a choice of a King or Twin bed with a
serene garden view or the calming lake view.
 The Deluxe twin room price will be will be RM 180 Monday to Thursday and RM
200 will be for Friday to Sunday
 Long Stay Package price will be RM 200 per day with daily breakfast for single
and couple. Minimum 30 days stays and Daily Health Screening at GHHS
Medical Health Kiosk
 Premium Long Stay Package is a Deluxe Twin Room with Breakfast and the
price will be RM 250 per day. Included with Set dinner, lunch, buffer breakfast,
Daily Health Screening and daily 3 times laundry.
 Deluxe King Room with included 2 king size bed and the price will be RM 180
will be Monday to Thursday and RM 200 will be for Friday to Sunday.
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 Executive Suite
 Sit back, unwind and enjoy a tete-a-tete session with a potential client in this
spacious 55 sq.m. suite. Suited for the executives out there, these 21 suites are
carefully designed with a touch of modernism in mind. Further the price will be
RM 350 for Monday to Thursday and for Friday to Sunday will be RM 400.
 Her Majesty Queen Azizah Suite
 This room is Golden type suite. A three-floor suite for customer to live like a
royalty, literally. Be part of the elite, with the likes of HM Queen of Great
Britain, HM Crown Prince of Dubai, HE President of China, HM King of
Morocco and many other royalties who have graced this suite during their visit
to Malaysia. Be charmed with authentic Tudor interior that is tastefully
furnished to make it a true royal living. The price will be RM 900 for Monday
to Thursday and for Friday to Sunday will be RM 1,200.
 Head of State Suite
 With a space of 132 sq.m., this suite offers the comfort and lifestyle of a cozy
and warm home. Tastefully built with elegance as priority, there are only 20
rooms of such stature. The price will be exactly as Her Majesty Queen Azizah
Suite price.
 Host of Nation Suite
 One suite, one theme with 185 sq.m. of spaciousness, be adorned with old-
fashioned colonial British interiors in this suite, perfect for a family or a
business trip. Have meetings in the suite’s private room-with-a-view or just
lounge in the spacious living area.
 Minister Suite
 With the lounge area separated from the bedroom, this suite offers privacy for
the more intimate guests built with the dimensions of 85 sq.m. with a touch of
colonial interiors, the Minister’s Suite is perfect for the long-staying guests.
The price will RM 700 per day.
 Palace Luxury Collection “Themed Suite”
 Palace of the Golden Horses is a hotel with a history of hosting royalties,
heads of states, world-class sporting heroes, and pop culture icons. From
Queen Elizabeth, Nelson Mandela, Kofi Annan, King Abdullah Abdul Aziz,
former President Jiang Zemin to David Beckham, the entire Brazilian football
team, Tiger Woods, Jackie Chan, Shah Rukh Khan, Rajinikanth to name a
few.
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3.0 Target Market
3.1 Geographical Segmentation
 Geographic segmentation involves targeting specific consumer groups according to
their geographic locations in national and international levels. Golden Horses
Palaces geographic segmentation strategy mainly focuses on building hotels on
locations popular with the target customer segment. For example, in foreign countries
such India, Nepal, Singapore and more in Asian continent countries.
3.2 Demographic Segmentation
 Mainly focuses on professionals, middle age persons, powerful persons across the
world, persons seek for first class medical wellness facility and persons wanted to
celebrate functions to be fun. This demographic which they really focus shows they
all most probably have high income to spend over.
3.3 Benefit Segmentation
 Perceived and real benefits offered by Palace of the Golden Horses to potential and
existing customers include sense of fun, great atmosphere, fabulous and
achievement.
4.0 International Markets
Spain is a country whose development arouses particular interest in
the world because of the huge increase in Spanish-speaking
populations, as well as its economic successes and location
between Africa and Europe as well as it rich historical tapestry.
4.1 Economic of Spain
Spain’s economic freedom score is 66.9, making its economy the 58th freest in the 2020
Index. Its overall score has increased by 1.2 points, due primarily to a higher fiscal health
score. Spain is ranked 31st among 45 countries in the Europe region, and its overall score is
slightly below the regional average and well above the world average.
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The Spanish economy has been rated moderately free for nine years. GDP growth has
decelerated in the past two years as private consumption growth has slowed slightly and
external demand has softened more significantly.
The principal obstacles to greater economic freedom in Spain are the lack of labor freedom
and, especially, the size and the cost in the country. If government spending and related
sovereign borrowing were reduced, a liberated private sector could boost growth and
employment. Unfortunately, the socialist government has proposed an ambitious plan for
new spending programs as well as rollbacks of the last center-right government’s labor code
reforms.
4.2 Background of Spain
Since returning to democracy in 1975, Spain has become the Eurozone’s fourth-largest
economy. The government in Madrid removed a rogue regional government in Catalonia
after an illegal 2017 independence referendum, but the December 2018 regional elections
resulted in the installation of another pro-independence cabinet. A November 2019 snap
election resulted in an even more fragmented parliament, with the conservative Vox party
surging to third place at the expense of the main center-right People’s Party. Prime Minister
Pedro Sánchez’s ruling center-left Spanish Socialist Workers’ Party was forced to form an
unstable minority coalition government with the radical left Podemos party. Spain’s
diversified economy includes manufacturing, financial services, pharmaceuticals, textiles and
apparel, footwear, chemicals, and a booming tourism industry.
4.3 Rule of law
Spanish law protects property rights. There generally are
no restrictions on foreign ownership of real estate. The
land registration system is rigid but functions efficiently.
The judicial system is open and transparent but
sometimes slow-moving. Judges are in charge of
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prosecutions and criminal investigations. The government enforces anticorruption laws on a
generally uniform basis. Concerns about official corruption often centres on campaign
financing.
4.4 Government of size
The top individual income tax rate is 45 percent, and the top
corporate tax rate is 25 percent. Other taxes include a value-added
tax. The overall tax burden equals 33.7 percent of total domestic
income. Government spending has amounted to 41.5 percent of the
country’s output (GDP) over the past three years, and budget deficits
have averaged 3.4 percent of GDP. Public debt is equivalent to 97.0
percent of GDP.
4.5 Regulatory efficiency
The overall regulatory environment remains burdensome, but
bankruptcy laws, which were reformed in 2014, are fair and
transparent. Labor-market reform is urgently needed both to
facilitate hiring and job growth and to bring more workers into
the formal economy. The government has stepped up efforts
to subsidize purchases of electric cars, light-commercial
vehicles, and motorcycles
4.6 Open Market
The total value of exports and imports of goods and services
equals 66.6 percent of GDP. The average trade-weighted applied
tariff rate (common among EU members) is 1.8 percent, with 637
EU-mandated nontariff measures reportedly in force. Nearly all
sectors are open to foreign investment, and approval procedures
have been streamlined. The financial sector has regained its
stability, and the number of nonperforming loans continues to
decline. There are 12 banking groups.
4.7 State focus in the country
In Spain, there has beautiful places such Barcelona, Granada, Seville and etc. But definitely
the place most tourist comes and visit the capital of Spain called so Madrid. It is the second-
largest city in the European Union (EU), surpassed only by Berlin, and its monocentric
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