SHERATON Brand, JOINT VENTURE with Notovel Danang in Vietnam
Group Assessment – Report
You are the International Business Development Team for a Multinational 5 Star Hotel Management Group based in Australia and your team has been requested to produce a Strategy Justification Report for approval by the Board of Directors for the opening of a new hotel property overseas.
The “Strategy Justification” involves taking over a large size hotel or resort, currently owned or managed by another hotel group along with some of its suppliers.
• Firstly you will need to justify why you have proposed this particular destination.
Your Business Development Team must also justify that it is:
• the right strategic choice for this corporate integration.
• and how to strategically manage the new hotel from time of take over.
You team will need to propose the branding of your new hotel and also whether your company will take out a (1) franchise agreement (2) management agreement or (3) have a joint venture and how many stars will it be.
To embark on this assignment, it is suggested that student groups pretend to represent a certain 5 star hotel group and research to base their case study on an actual hotel or resort scenario that they would like to take over somewhere overseas. Assuming that the initial situational analyses have all been approved, you are to proceed to prove that various strategic choices have been seriously considered and that it is a good business decision for the hotel group to proceed.
Demonstrate your understanding of the following concepts and diagrams in this assignment. Link these theories, diagrams and concepts to the strategic choices that your team is proposing.
1. Strategic Choices Diagram and Concept
2. Horizontal and Vertical Integration
3. Game Theory and Prisoner’s Dilemma
4. The Strategy Clock Diagram
5. BCG Model
6. Parenting Matrix
7. Historical, Structural and Cultural considerations
Please insert the actual diagrams and frameworks below into the appropriate sections in your report and then interpret how you would link these concepts to your actual hotel justification scenario. Including the framework diagrams will help you scaffold your extrapolations in a more meaningful and focused manner as well as help you read around the relevant topics in the weeks we covered them in class.
** We choosing SHERATON Brand, JOINT VENTURE with Notovel Danang in Vietnam
1.0 Brand (which brand is we choosing and brief introduction about the brand). (200 words)
-SHERATON
2.0 Type of agreement (definition of what we choose, brief explain and reason why it will suitable for this market and The parenting matrix) (500-600)
– JOINT VENTURE with Notovel Danang
3.0 Destination analysis (introduction about the country and destination, Porter’s 5 forces, porter’s diamond theory, first conclusion why we choose the destination) (1000-1200 words)
– DANANG
4.0 Generic strategies and Interactive strategies (target market analysis) (1500 words)
– Strategy clock links with choise of brand.
– Competitors based on the strategy clock
– Will strategic lock-in work (with airlines and cruise ships)
5.0 Game theory and prisoner’s dilema (Find major rival and how it can influce our business strategy) (1000-1200 words)
– Competitors are Hyatt at Danang and IHG at Danang
– Compare with local and one comepar with international