1.EXECUTIVE SUMMARY........................................... ............................................ 5
2.THE RITZ-CARLTON HOTEL COMPANY, L.L.C. ............................................ 5
2.1.Historic Overview.......................................... .................................................. ........... 5
2.2.Whether Ritz-Carlton should expand its international operation............................... 7
3.FOREIGN MARKET ANALYSIS.......................................... ................................. 7
3.1.Assessing alternative market............................................ ........................................... 7
3.2.External factors analysis.......................................... .................................................. . 8
3.2.1.GDP and GDP per capita and GDP growth rate.............................................. ......... 9
3.2.2.Population.................................. .................................................. ............................... 9
3.2.3.Growth rate.............................................. .................................................. ................. 9
3.2.4.Tourism industry.......................................... .................................................. ........... 10
3.2.5.Levels of competition....................................... .................................................. ...... 10
3.2.5.1.Demand.................................... .................................................. .............................. 10
3.2.5.2.Competitors............................... .................................................. ............................. 11
3.2.6.Legal and political environment....................................... ........................................ 12
3.3.Internal factors analysis.......................................... .................................................. 13
3.3.1.Cost........................................ .................................................. ................................. 13
3.3.2.Benefits.................................... .................................................. ............................... 13
3.3.3.Risks....................................... .................................................. ................................ 14
4.MARKET ENTRY STRATEGY.......................................... ................................... 14
4.1.Which entry mode?............................................. .................................................. .... 14
4.2.Why choose it?............................................... .................................................. ........ 14
5.ORGANIZATIONAL PLAN.............................................. ................................... 14
5.1.Brand name.............................................. .................................................. ............... 14
5.2.Logo.......................................... .................................................. .............................. 15
5.3.Slogan........................................ .................................................. ............................. 15
5.4.Our Service and Target Market............................................ .................................... 15
5.5.Vision, Mission Statement and Gold Standard.......................................... .............. 16
5.5.1.10 years vision............................................ .................................................. ............ 16
5.5.2.5 year mission........................................... .................................................. .............. 16
5.5.3.Gold Standard.......................................... .................................................. .............. 16
6.STRATEGIC GOALS............................................. ................................................ 17
7.MANAGING INTERNATIONAL BUSINESS OPERATIONS.......................... 18
7.1.International marketing management – Marketing Mix........................................... 18
7.1.1.Service..................................... .................................................. ............................... 18
7.1.1.1.Guest Rooms & Suits............................................. .................................................. 19
7.1.1.2.Dining.................................... .................................................. ................................. 20
7.1.1.3.Meetings & Events............................................ .................................................. ..... 21
7.1.1.4.Weddings & Social Celebrations...................................... ........................................ 22
7.1.1.5.Spa & Gym............................................... .................................................. .............. 22
7.1.2.Price....................................... .................................................. ................................. 23
7.1.3.Promotion................................... .................................................. ............................ 23
7.1.3.1.Advertising............................... .................................................. .............................. 23
7.1.3.2.Sale Promotion......................................... .................................................. ............... 24
7.1.3.3.Public Relation.......................................... .................................................. .............. 24
7.1.4.Place....................................... .................................................. ................................. 25
7.2.International service operations management........................................ ................... 25
7.3.International human resource management........................................ ...................... 25
7.3.1.Managerial employees......................................... .................................................. .... 25
7.3.2.Non-managerial employees......................................... .............................................. 26
7.3.3.Benefits package for employees......................................... ...................................... 26
8.MANAGING INVESTMENT RISKS............................................. ....................... 27
9.CONCLUSION...................................... .................................................. ............... 27
1.EXECUTIVE SUMMARY
The Ritz-Carlton Hotel is one of the very famous hotels in the world. Currently the hotel already invested in different areas of the world such as Asian countries, Americas and some European countries. Also now we would like to more expand their business again to the Vietnam where it is dramatically developing in these years.
To invest that Ritz-Carlton Hotel in Vietnam, we analyzed the current business situation and the market areas of that country. After that, we calculated whether we can get the profits or not by investing that Ritz-Carlton Hotel in Vietnam within the defined period. Then we chose the hotel business to invest in Vietnam, one of the developing countries rapidly in Asia.
The report is illustrated in accordance with the outline and there is an introduction, followed by the business background, analyzing the foreign market, defining the market entry strategy and other headings that relate to the topic of the report.
2.THE RITZ-CARLTON HOTEL COMPANY, L.L.C.
2.1.Historic Overview
The story of The Ritz-Carlton begins with Swiss hotelier César Ritz who was well known in the hotel industry as the "king of hoteliers and hotelier to kings." Mr. Ritz redefined luxury accommodation in Europe with his management of The Ritz in Paris and The Carlton in London. Although he died in 1918, his wife Marie continued the tradition of opening hotels in his name.
The Ritz-Carlton Investing Company was established by Albert Keller, who bought and franchised the name in the United States. The original Ritz-Carlton hotel was built in Boston, Massachusetts, and opened on May 19, 1927 with a room rate of $15 per night. It became known as the hotel to kings, queens, movie stars, and tycoons: Prince Charles, Irving Berlin, Bette Davis, and Howard Hughes were just a few of its notable guests.
Additional locations soon opened in New York, Philadelphia, Pittsburgh, Atlantic City and Boca Raton, but all these locations did not survive the Great Depression and by 1940 only The Ritz-Carlton Boston remained.
In 1983, the original hotel and the brand were sold to The Ritz-Carlton Hotel Company, L.L.C., based in Atlanta, Georgia which began expansion of the brand to other locations. The company grew to become the hospitality leader in the US under the leadership of Horst Schulze. His strong conviction of customer loyalty and emphasis on a value/mission driven philosophy for the "Ladies and Gentleman serving Ladies and Gentleman" became a benchmark in the industry to which other companies aspired.
In 1995, Marriott International purchased a 49% stake in The Ritz-Carlton Hotel Company and in 1998 purchased an additional 50% stake in the company giving it 99% ownership of the company. The company is now headquartered in Chevy Chase, Maryland, located in the Washington, D.C. MSA.
The Ritz-Carlton Hotel Company partnered with Bvlgari in 2001 to operate a chain of hotels owned by and operated under the Bvlgari brand.
Simon Cooper joined Ritz-Carlton in 2001 as President and Chief Operating Officer taking the helm from Horst Schulze. Cooper's mandate was to grow the chain through hotel expansion and product diversification. Under Cooper's watch the company has aggressively expanded its hotels and has added The Residences at The Ritz-Carlton (private residential units) as well as The Ritz-Carlton Club (fractional ownership residences) to the company's new development program.
The management company has grown from one hotel to 63 hotels worldwide (18,475 guest rooms) that is located in major cities and exclusive resort destinations of 21 countries in Europe, Africa, Asia, the Middle East and the Americas.
2.2.Whether Ritz-CarltonHotel should expand its international operation
Regarding with the above question, Ritz-Carlton should expand its international operation. Because Ritz-Carlton Hotel Company L.L.C. already expanded our business in the foreign countries and already got succeed over the world. Moreover we could retain every kind of awards concern with the hotel business.
Therefore, the questions here are: which market Ritz-Carlton should expand the operations and how to penetrate that market.
3.FOREIGN MARKET ANALYSIS
3.1.Assessing alternative market
In this section, we would like very much to analyze a few countries for our comparison and consideration. Furthermore, we would like to pick the countries that are of emerging economies. One of them is the Southeast-Asia.
According to the list of countries that do not have Ritz-Carlton Hotel yet, within Southeast-Asia, there are a few “emerging” candidates: Thailand, Laos, Cambodia, Myanmar and Vietnam.
However, by the quick look at the countries’ fact and figures, we immediately chose Vietnam as the next destination for Ritz-Carlton because the politic and economy are in Thailand and Myanmar are not stable and Myanmar is still controlled by the military force. Whereas, Laos and Cambodia are ranked the poorest countries and the economies are just incomparable to Vietnam in terms of growing rate and foreign investment.
Due to that, in the following section, we would only be analyzing the scene of Vietnam in depth.
3.2.External factors analysis
Vietnam is one of the best-performing developing economies in the world. It is going through a far-reaching transformation from an inward-looking planned economy to one that is globalized and market-based. It has the potential to be one of the great success stories in development.
Vietnam had an average growth in GDP of 7.1% per year from 2000 to 2004. The GDP growth was 8.4% in 2005, the second largest growth in Asia, trailing only China's. Government figures of GDP growth in 2006, was 8.17%. According to Vietnam's Minister of Planning and Investment, the government targets a GDP growth of around 8.5% for 2007.
7th November 2006, Vietnam became WTO's 150th member, after 11 years of preparation, including 8 years of negotiation. Vietnam's access to WTO should provide an important boost to Vietnam's economy and should help to ensure the continuation of liberalizing reforms and create options for trade expansion.
Vietnam's number of visitors for tourism and vacation has increased steadily over the past ten years. About 3.56 million international guests visited Vietnam in 2006, an increase of 3.7% from 2005. The country is investing capital into the coastal regions that are already popular for their beaches and boat tours. Hotel staff and tourism guides in these regions speak a good amount of English.
Ho Chi Minh City is the most important economic center in Vietnam. Some 300,000 businesses, including many large enterprises, are involved in high-tech, electronic, processing and light industries, also in construction, building materials and agro-products. There are 171 medium and large scale markets, tens of supermarket chains, dozens of luxury shopping malls and many modern fashion or beauty centers
3.2.1.GDP and GDP per capita and GDP growth rate
The GDP and GDP per capita of the city are more important. One of the services of Ritz-Carlton is organizing wedding, convention and banquet. The higher the income of the citizen the more they organize their event in high grade hotel.
In 2005[1], the city's Gross Domestic Product (GDP) was estimated at USD 11.6 billion, or about USD 1,850 per capita, (up 12.2% on 2004) and accounting for 20% GDP of the country. The GDP calculating Parity Purchasing Power method (PPP), attained USD 56 billion, or about USD 8,900 per capita (approximately 3.5 times higher than the country's average). The city's Industrial Product Value was USD 5.6 billion, equivalent to 30% of the whole nation. Export - Import Turnover through Ho Chi Minh City ports took USD 29 billion, or 40% of the national total. Ho Chi Minh City has also contributed about 30% to the national budget's revenue annually.
3.2.2.Population
Population is also an important factor to evaluate. A larger amount of population means that the market is big, and there are more opportunities for the company. The population in Ho Chi Minh City is more than 6 millions[2].
3.2.3.Growth rate
One more important factor is the stable growth of the economy. The stable growth of the economy will reduce the risk and ensure a stable future for the Ritz Carton when entering into a new market. Especially stable growth economy will strongly increase the demand for hotel services.
China has been the region’s fastest growth economy from 2000, Vietnam with the average annual GDP growth rate of 7.1% holds the second position[3]. In 2005, China still held the first position of growth rate with 9.3%[4], Vietnam was in the second place with 8.4%[5].
According to ADB (Asian Development Bank), the GDP growth rate of Vietnam will continue to maintain in the same level in the next few years[6].
3.2.4.Tourism industry
Vietnam considers tourism industry as one of the important industry to develop and Ho Chi Minh City is a famous tourist city. They use the slogan “Ho Chi Minh City – Destination of Safety of Safety and Friendliness” to attract foreign visitors. With a history of more than 300 years of fighting against invaders, and a distinctive culture, Ho Chi Minh City has become a tourist center of the country. In 2006, Vietnam received 3.2 millions foreign visitors and the number of foreign visitor to Ho Chi Minh City is more than 2 millions.
3.2.5.Levels of competition
3.2.5.1.Demand
The Ho Chi Minh City Department of Tourism is seeking support from the city government to develop more high-standard hotels to resolve the severe shortage of quality rooms in the city, a tourism leader said. The department requested that the city government bring out quickly a scheme on calling on investors to develop more hotels in the city, and take measures to accelerate projects under progress or those waiting in the wing. Ho Chi Minh City will lack more than 4,000 rooms this year, and as the demand is estimated to increase by 50% in 2010, the city will need 14,500 more rooms by then, including 7,000 rooms of three to five-star ratings.
3.2.5.2.Competitors
There are only 9 five star hotels until 2007 so the competition in luxury hotel market in Ho Chi Minh City is more lightly.
§New World Hotel Saigon
New World Hotel Saigon is currently the largest hotel in Vietnam with the 552 tastefully furnished and spacious rooms and suites that are elegantly decorated and come with a host of contemporary amenities.
§Caravelle Hotel
The property offers luxurious as well as comfortable bedrooms, furnished elegantly and come with a host of modern amenities.
§Park Hyatt Saigon
The 252 air-conditioned guestrooms at the Park Hyatt are equipped with all modern amenities and offer superior comfort for its guests. Attentive room service for convenience is also offered here.
§Sheraton Saigon Hotel and Towers
This property boasts 382 well-appointed accommodation units that are equipped with all the essential amenities to ensure customer utmost comfort.
§Legend Hotel Saigon
This hotel boasts 282 well-appointed accommodation units that are equipped with all the essential amenities to make customer satisfaction.
§Sofitel Plaza
This hotel offers 290 well-appointed accommodation units that have been elegantly furnished with an array of in-room amenities. Specially adapted rooms are also available for physically challenged guests.
§Omni Saigon Hotel
The hotel offers 248 elegantly appointed guestrooms, suites and serviced apartments. All rooms are provided with a host of modern amenities to make customer’s stay a comfortable one.
§Hotel Equatorial
This hotel offers 333 well-appointed accommodation units that have been elegantly furnished with an array of in-room amenities to ensure customer a pleasurable staying.
§Windsor Plaza Hotel
The hotel boasts 405 guest rooms that are facilitated with an array of modern comforts. Attentive room service is also available in order to make customer’s stay as easy and comfortable as possible.
3.2.6.Legal and political environment
Legal: According to a report of World Bank Group about the level of difficulty to start a business among countries, the position of Vietnam is 99[7]. It means the company will not meet more difficulty about legal and regulation to start a business.
Political environment: The political environment of Vietnam is more stable because Vietnam has only one government party. About the economic freedom, the rank of Vietnam is 103[8]. About corruption problems, Vietnam has high positions - 107[9]. It means that, corruption is a main problem Ritz-Carlton has to face if they want to invest in this country.
3.3.Internal factors analysis
3.3.1.Cost
Direct cost: It’s so difficult to comparing direct cost (cost of setting business operation, building new hotel, equipments …).
Opportunities Cost: time to negotiate, open and close a business, cost used to lubricate (corruption)….
According to rank of World Bank Group, we can realize that if Ritz-Carlton opens a new hotel in Ho Chi Minh City may face a low intangible cost.
Starting a business in Vietnam 2005[10]
Procedures (number)
11
Time (days)
50
Cost (% of income per capital)
50.6
Source: World Bank Group 2005
3.3.2.Benefits
Beside the benefits come from the increase in sales and profits, Ritz-Carlton can have some different benefits when investing in this new market.
§Penetrate one of the fastest growth markets in the world
§Consolidate the southeastern market
§Achieve synergy (Ritz-Carlton can easier to train employees, transfer the manager among hotel in southeastern countries)
§Foreclose of market from competitors
3.3.3.Risks
§Bird flu
§Area financial crisis (area financial crisis happened in 1997 had heavily damaged the tourism industry in the area)
4.MARKET ENTRY STRATEGY
4.1.Which entry mode?
Foreign Direct Investment (FDI) entry mode will be used to invest a Ritz-Carlton Hotel in Vietnam. Foreign Direct Investment is directly investing the assets into another foreign country and it can get the estimated benefits under control of ownership.
4.2.Why choose it?
Why Ritz-Carlton Hotel choose the FDI entry mode is not to impact on decision making from outside entity and as well as to get the full ownership of hotel management. Besides it may be based on financial concerns to achieve more profit directly to the company.
5.ORGANIZATIONAL PLAN
5.1.Brand name
We use this name for operating a hotel in Vietnam:
THE RITZ-CARLTON, HO CHI MINH
The lion and crown Ritz-Carlton logo is a combination of the British royal seal (the crown) and the logo of a financial backer (the lion). This logo was created by Cesar Ritz.
[IMG]file:///C:/DOCUME%7E1/Owner/LOCALS%7E1/Temp/msohtmlclip1/01/clip_image002.jpg[/IMG]
5.3.Slogan
ENJOY AT LUXURIOUS RITZ-CARLTON, HO CHI MINH
We use this slogan to emphasis Ritz-Carlton is the top hotel, the customer will satisfy with our service and happy when they stay here.
5.4.Our Service and Target Market
The Ritz-Carlton, Ho Chi Minh develops and operates luxury hotel for others. As the services, we offer the Spa, special occasion for weddings, birthday parties, anniversary dinners and the meetings or conferences for the business men. The Spa at The Ritz-Carlton, Ho Chi Minh sets the standard worldwide which offers a holistic approach to wellness, with treatments and facilities that provide the ideal combination of ancient Asian healing philosophies and modern Western techniques. Besides, The Ritz-Carlton, Ho Chi Minh is committed to making every occasion special for our guests and whatever the size of the event, we all receive the legendary attention to detail to be able to give the sound services to our guests. Not only these services but also others for those who would like to make the meeting and conferences, we provide the very finest venues, superb technology and amenities and a single point of contact for all managements from the first phone calls to the final details.
The Ritz-Carlton, Ho Chi Minh mainly targets to the tourists who would like to get better services, businessmen and government leaders who need to make the meeting or conference, the couples who have the plan to make the grand wedding in their life and the movie stars who needs to have the privacy for them because we can offer different kind of their needs by giving the services which cannot get in other hotels.
5.5.Vision, Mission statement and Gold Standard
5.5.1.10 years vision
To be the Premier Worldwide Provider of Hospitality Products and Services
5.5.2.5 year mission
Product and Profit Dominance
5.5.3.Gold Standard
We follow the Gold Standard of The Ritz-Carlton Hotel Company L.L.C to perform the vision and mission. This Standard consists of The Credo, The Basics, Three Steps of Service, Motto and most recently, The Employee Promise.
[IMG]file:///C:/DOCUME%7E1/Owner/LOCALS%7E1/Temp/msohtmlclip1/01/clip_image004.jpg[/IMG]
[IMG]file:///C:/DOCUME%7E1/Owner/LOCALS%7E1/Temp/msohtmlclip1/01/clip_image006.jpg[/IMG]
6.STRATEGIC GOALS
As the strategic goal for The Ritz-Carlton, Ho Chi Minh in Vietnam, we will start establishing the hotel in Vietnam in 2008.
After 3 years, in 2011, we have the plan to start the operations of The Ritz-Carlton, Ho Chi Minh. In this year, we already expected that we won’t be able to get the profit from that hotel business. - Start having the profit in 2012 and in the following year, we will have to achieve 8% of the target market.
7.MANAGING INTERNATIONAL BUSINESS OPERATIONS
Structure of The Ritz-Carlton Hotel Company, L.L.C.: the hotel group uses the global area design.
Ritz-Carlton implements differentiation strategy. We want to differentiate ourselves by the image. Hotel’s objective is creating in customers’ mind about a luxury high grade hotel. Therefore, other international management strategies of the hotel group have to follow this overall strategy.
Moreover, the hotel also uses the adaptation strategy. It means that basing on the hotel group’s overall strategy, each hotel will adapt with specific markets.
7.1.International marketing management – Marketing Mix
7.1.1.Service
§The Ritz-Carlton, Ho Chi Minh supplies the highest service quality.
§We make the image which differentiates with competitors (through the hotel logo- the hotel creates in the customers’ mind an image and an experience of a luxury, higher grade hotel).
§We offers:
[IMG]file:///C:/DOCUME%7E1/Owner/LOCALS%7E1/Temp/msohtmlclip1/01/clip_image008.jpg[/IMG]
Spend the day taking in all the vibrant culture, exclusive shopping and unique eateries that Ho Chi Minh City has to offer, then return to the luxurious hospitality of The Ritz-Carlton, Ho Chi Minh. Close to the cultural and retail vanguard, the hotel offers a cosmopolitan experience with the ambiance of a private home.
All guest rooms feature floor-to-ceiling marble bathrooms, a separate bath and massage-style Visy shower with overhead and mid-level water jets.
For the discerning traveler who expects the very best, the Executive level features an exclusive five-level in hotel with spiral staircase and incredible of this busting city.
We also offer four different suite option, the largest being the President Suite and featuring three bedrooms and bathrooms, a guest parlous, butler’s pantry, and the most elegant and opulent surroundings.
The Ritz-Carlton, Ho Chi Minh This 48-story comprises 378 guestrooms, including 68 suites
Suites:
§Deluxe Suite – 860 square feet
§Premiere Suite – 1100 square feet
§The Ritz-Carlton Suite – 1530 square feet
§Presidential Suite – 1900 square feet
Rooms:
§Superior Guestroom – 425 square feet
§Deluxe Guestroom – 425 square feet
§Executive Guestroom – 450 Square feet
Features & Amenities: (Some of the amenities above may not be available in all rooms. Fees on certain amenities/services may apply)
[IMG]file:///C:/DOCUME%7E1/Owner/LOCALS%7E1/Temp/msohtmlclip1/01/clip_image010.jpg[/IMG]
7.1.1.2.Dining
The Lobby:
§At the heart of the Lobby, guests enjoy a relaxed lounge atmosphere perfect for sipping tea, grabbing a quick bite to eat or even browsing the internet. High Tea is served daily, our signature selections are accompanied by the finest Vietnamese Teas or Champagne.
Royal Restaurant:
§This is a large, atmospheric restaurant featuring simple and authentic Vietnamese, and Western cuisine offered from one menu while seated anywhere in the restaurant.
§Wide selection of imported meats prepared Western style whilst the finest local and seafood will be prepared in Vietnamese style.
§We also serve Japanese, South-East Asian, and Chinese cuisine
Barolo:
§Barolo is a contemporary Italian restaurant, specializing in authentic pizza, pasta and home-made dishes.
§Semi-open kitchens allow patrons to observe Italian culinary specialists preparing the finest cuisine Italy has to offer. The restaurant also features a private dining room.
The Ritz-Carlton Bar:
§The elegant, club-like ambiance of The Ritz-Carlton Bar is perfect for enjoying cocktails and light snacks.
§Intimate atmosphere, comfortable surroundings, and nightly Latin Jazz entertainment make The Ritz-Carlton Bar will be one of the most refined, yet exciting, gathering places in Ho Chi Minh City.
7.1.1.3.Meeting & Event
The Ritz-Carlton, Ho Chi Minh offers a pillar-less ballroom, four meeting rooms and two executive boardrooms with equipments:
Audio-Visual Services:
§Plasma screens
§TV/VCR/DVD access
§Speaker phone
§LCD projector
§Wireless microphone
§Video-conferencing
Business Center Services:
§Faxing
§Photocopying
§Typing
§Mail and postage
§Courier service
§Translation services
§Various business directories
§Computer terminals
§Wireless Internet access and data port connections
§Dual-line telephones
7.1.1.4.Weddings & Social Celebrations
A wedding at The Ritz-Carlton sets a new standard in romantic elegance. From bridal showers at Afternoon Tea to martini nights for bachelor parties, we offer the most comprehensive wedding services and specialize in creating uniquely perfect wedding experiences.
Special occasions deserve the special attention to detail The Ritz-Carlton is world-famous for providing. For birthdays, anniversaries, showers or gala events, The Ritz-Carlton, Ho Chi Minh provides the perfect backdrop for festivities.
7.1.1.5.Spa and Gym
Mimosa Spa is a sanctuary of luxury and tranquility skillfully designed to inspire the senses and renew the spirit. Re-energize in our Vichy shower room, our couples' room or the relaxation area. Regenerate spirit in one of our 3 treatment rooms with private terraces overlooking a beautifully landscaped tropical garden. The touch of hands is inspired by good techniques from the Orient and Bali. Adjacent is the fully equipped gym for toning and cardiovascular exercise. A wonderful pool of gold and emerald mosaic provides complete serenity. Health and beauty become a single sense of spiritual well-being.
7.1.2.Price
§The Ritz-Carlton, Ho Chi Minh chooses market pricing policy (The hotel uses the price discrimination).
§The Prices are different depending on the market and season.
§We choose the price level from 198US$/night to 1550US$/night depend on the kind of the rooms and suites.
7.1.3.Promotion
7.1.3.1.Advertising
§Ritz-Carlton (include Ritz-Carlton, Ho Chi Minh) advertise mainly through international business, fashion, lifestyle and travel newspapers, magazines, television and websites. For example we have advertisings in The New Yorker, Vanity Fair, Architectural Digest, Harper’s & Queen, Forbes Global, and CNN.com - Breaking News, U.S., World, Weather, Entertainment & Video News.
§In Vietnam, the advertising can be divided into two methods:
oAbove the line: Advertise through newspapers (Tuoi Tre, Thanh Nien, Nguoi Lao Dong), magazine (Vietnam Economic Times, Saigon Times)
oBelow the line: Advertise through the most popular websites in Vietnam, such as VIET NAM NET, VnExpress - Vietnam News Daily. Besides, we also advertise through brochure as well.
§We set up a website which we can introduce our hotel and everyone can make reservation online.
http://www.ritzcarlton.com/en/Properties/HoChiMinh/Default.htm
7.1.3.2.Sale promotion
We have special offers for customers who stay in the hotel more than 2 days.
§Weekend escape from USD 165 per night – A weekend of culture, shopping and culinary delights await with our special including:
o[IMG]file:///C:/DOCUME%7E1/Owner/LOCALS%7E1/Temp/msohtmlclip1/01/clip_image012.jpg[/IMG]Complimentary welcome drink
oComplimentary buffet breakfast at our restaurant
oNightly accommodations in customer selected room category with Ritz-Carlton Sweet Sleeper Bed with a 4 PM late checkout
Rates starting at USD 165 per night for a minimum stay of 2 nights between Thursday and Sunday until December 31st in the first year of operating.
§Stay another night - for free!
o[IMG]file:///C:/DOCUME%7E1/Owner/LOCALS%7E1/Temp/msohtmlclip1/01/clip_image014.jpg[/IMG]Don’t miss this chance for a free night in Ho Chi Minh City. Simply arrive between Wednesday and Saturday and stay four nights with us for the price of three. Enjoy an extra carefree day of shopping, relaxation or sightseeing until December 15th in the first year of operating.
7.1.3.3.Public Relation
To enhance the image of a high grade hotel, we hold some special event in the hotel such as: concert, the introduction of new literary works of famous author, fashion show etc.
7.1.4.Place
The Ritz-Carlton, Ho Chi Minh is located in the heart of District 1; this is the center area of the city. It is surrounded by office buildings, luxury shopping malls, modern fashion and beauty centers. So it will be able to attract more consumers come to the hotel, besides the walking distant also will add the convenient for them. Moreover, The Ritz-Carlton, Ho Chi Minh ensures the comfort, satisfaction, and safety for the consumers and staff workers.
7.2.International service operations management
Facilities design and layout: express the luxury and Vietnamese culture
Operations schedule: concentrate in special events and times that attract the tourists and businessmen.
7.3.International human resource management
Operating in the service industry, The Ritz-Carlton, Ho Chi Minh considers human resource management is one of the most important issues with the company. We divide employees into managerial employees and non-managerial employees.
7.3.1.Managerial employees
Recruitment: in 2008, we recruit 3 managers from other hotel in Ho Chi Minh City.
Training and development: moving these 3 managers to The Ritz-Carlton, Millenia Singapore and rotating them into different position.
Performance appraisal and selection: from their performance in these hotels, select the best one to become deputy manager of The Ritz-Carlton, Ho Chi Minh (when the hotel begins the operation in 2011).
The new deputy manager will have more experience in working in a high grade hotel like The Ritz-Carlton, Millenia Singapore, he also understand the culture and have business experience in Vietnam. He will become a good adviser for the general manager.
In 2011, move the deputy manager of The Ritz-Carlton, Millenia Singapore to become general manager of The Ritz-Carlton, Ho Chi Minh.
Advantage:
§The new manager will have more motivation with new position.
§He has had a lot of managing experience when he is a vice manager of The Ritz-Carlton, Millenia Singapore.
7.3.2.Non-managerial employees
The Ritz-Carlton, Ho Chi Minh will recruit employees 6 months before the hotel begin its operation. In 6 months, the hotel will implement a training program to supply for its new employees needed skills for and The Ritz-Carlton, Ho Chi Minh will have a good preparation about labor.
The hotel also appraises its employees in the operation, selecting good employees to appoint to higher positions.
7.3.3.Benefits package for employees
Managerial employees: club memberships, housing, travel to home country, bonus.
Non-managerial employees: medical treatment, reward (employees of the month, etc…), bonus in some event (New Year, Lunar New Year, women’s day …)
The personnel department of the hotel has a responsibility to report and solve employees’ demand.
8.MANAGING INVESTMENT RISKS
Doing business in a new market with new culture, the company can face some risks. With different circumstances, The Ritz-Carlton, Ho Chi Minh can offer different solutions that help us to manage the investment risk.
Political risk: political unstableness, war, terrorism
Action: from reduce the operation to shutdown
Risks from financial crisis and bird flu
Action: reduce the employees, reduce the operation
Markets risks: the company cannot achieve profits for a long time
Action: from change the manager, temporary shut-down, for rent, and sell the hotel.
9.CONCLUSION
In business, we cannot determine a decision is 100 percent right or wrong. Risks and Lucks always are friends of businessmen. However, decisions still have to be made and decisiveness is an indispensable character of a good businessman.
In this report, we evaluate the readiness of Ritz-Carlton Hotel when they want to expand its operation. In some potential markets, we select Vietnam that according to our evaluation is most potential. In this project, Ritz-Carlton will invest directly to Ho Chi Minh City. In addition, we also pointed out some managing operations that Ritz-Carlton has to concentrate, they are: international marketing management, international operations management, international human resource management as well as managing investment risks.
Finally, we wish Ritz-Carlton Hotel would succeed in the new markets as they are succeeding in other markets in over the world.
1.Ho Chi Minh City - Wikipedia, the free encyclopedia
2.ERROR: Page not found
3.http://www.cia.gov/cia/publications/...k/geos/ch.html
4...... WELCOME TO MOF WEBSITE .....
5.Asian Development Outlook 2005 - Economic trends and prospects in developing Asia - ADB.org
6.http://www.doingbusiness.org/Documen...try-tables.pdf
7.http://.en.wikipedia.org/wiki/Index_of_Economic_Freedom
8.Corruption Perceptions Index - Wikipedia, the free encyclopedia
9.http://www.doingbusiness.org/Documen...try-tables.pdf
[1] Ho Chi Minh City - Wikipedia, the free encyclopedia
[2] Ho Chi Minh City - Wikipedia, the free encyclopedia
[3] ERROR: Page not found
[4] http://www.cia.gov/cia/publications/...k/geos/ch.html
[5] ..... WELCOME TO MOF WEBSITE .....
[6] Asian Development Outlook 2005 - Economic trends and prospects in developing Asia - ADB.org
[7] http://www.doingbusiness.org/Documen...try-tables.pdf
[8] http://.en.wikipedia.org/wiki/Index_of_Economic_Freedom
[9] Corruption Perceptions Index - Wikipedia, the free encyclopedia
[10] http://www.doingbusiness.org/Documen...try-tables.pdf
LinkBack URL
About LinkBacks
He Ritz-carlton Hotel Company, L.l.c -
Reply With Quote