Research Topics: External And Internal Environment

San Miguel Brewery Hong Kong Limited Case Study

San Miguel Brewery Hong Kong Limited Executive Summary             The major problem of San Miguel Brewery Hong Kong Limited is the sudden change of the preferences and tastes of the Hong Kongers with regards to the beer. It had been affected by the major force which is the culture change due to the improvement of living in the said country. The said change had affected the overall image of the product, therefore had affected the sales and demands of the said brand. The said event had also affected the position of the company and the brand name in the industry as the leading brand and the most popular beer in the Hong Kong beer industry.             One of the primary solution that can be done by the company in order to save the image of the brand name as well as to improve the position of the product in the market is to improve their market research about the needs and preferences of their target customers as well as to improve the quality of their product. Another important aspect is to improve the cheap image of San Miguel beer in the market by means of innovation. It will be better if they will change the packaging as well as the presentation of their product, together with the different marketing strategy that will help them to build and change the image of the product.             It is also important to introduce something new about the product in frequently manners in order to catch and gain the attention of the customers, eventually; it will help to gain sales of the product. But it is not necessarily means that the company will have to drop down their cheap image. They must consider the social status of their customers as their primary market segmentation, and this must be considered in the target market strategy of the company.   Table of Contents   Chapter 1. 3 1 Introduction.. 3 1.1       Company History and Background. 3 1.2       Vision and Mission.. 5 Chapter 2. 6 2      Internal and External Environment 6 2.1       Consumer Buying Behavior 6 2.2       Market Segmentation.. 8 2.3       Target Market Strategy. 8 2.4       Positioning. 9 Chapter 3. 10 3      Formation.. 10 3.1       External Audit 11 3.2       Internal Audit 12 Chapter 4. 13 4      Implementation.. 13 4.1       Management 14 4.2       Operation.. 15 4.3       Marketing. 18 4.4       Finance/Account 19 4.5       Research and Development 20 5      Evaluation.. 21 Chapter 5. 21 6      Conclusion.. 21 Chapter 6. 23 7      Recommendation.. 23 Reference. 25                 Chapter 1 1 Introduction             There are many aspects inside the company that can affect the overall performance as well as transaction of the company. Primarily, those factors focus on the behavior and participation of different stakeholders in the company in terms of sales, financial flow as well as the flow of information.             In addition to the said information, the environment is also an additional factor because it serves as the major element that can affect the overall performance of the company. Internal environment, or the environment inside the company or the workplace; and the external environment which pertains to the different political, technological, economical as well as social factors outside the working environment that has a direct as well as an indirect effects to the performance of the company.             In general, management, marketing, operation and finance activities and plans of the company are also important aspect that helps the company to pursue their visions, missions as well as their goals. 1.1  Company History and Background San Miguel Brewery Hong Kong Limited belongs to the industry of food and beverages and involved in brewers as its sub industry (WrightReports 2007). It is a brewer and a non-wholly owned subsidiary of San Miguel Corporation of the Philippines. It is a franchise of the said corporation that gives them the right to manufacture as well as sell San Miguel Beer in different part of the world such as Hong Kong, Macao and provinces in mainland China, such as Hainan. The company headquartered in Shatin New Territories in Hong Kong (Datamonitor 2007). The company employs 168 employees (Business Week 2008) San Miguel Beer has been exported from the company’s main headquarters in Manila to Shanghai, Hong Kong as well as Guam. The company had become one of the pioneers in Asia for establishing its brewery in Hong Kong in 1948, and it has been considered as the first local brewer in the crown colony (San Miguel Corporation 2008).       The company is involved in manufacturing as well as distributing bottled, canned and draught beers. It is also into investments and other property holdings. Currently, the company is handling its different major brands such as San Miguel Pale Pilsen, San Miguel Light, San Miguel Dark, Lowenbrau, Blue Ice Beer and the Valor (WrightReports 2007).       Aside from Hong Kong, the company is also carrying out their operations in British Islands as well as the People’s Republic of China (WrightReports 2007). The brewhouse of the company can produce a total of 1,200,000 cans of beer in on a daily basis (Datamonitor 2007).        As of now, San Miguel has been described as the most famous beer in Hong Kong and being enjoyed by different generations of drinkers ever since the brand was brought to the country (Sun Lik Beer n.d.). In addition to that, San Miguel Beer is also considered as the best selling beers along with the top 20 beer brands in the world (San Miguel Corporation 2008).   1.2  Vision and Mission San Miguel Brewery Hong Kong Limited follows the same vision and mission of the San Miguel Corporation. The vision and mission of the company focuses on its core values: their passion for their success; their teamwork; their respect for their people or employees; their focus to their customers; their innovations; their integrity; and their social responsibility (San Miguel Corporation 2008).  One of the most important core values of the company is their passion for success. The said core value pertains to the mission and vision of the company as a whole. It serves as their motivator to do their best. It also focuses on being practical or positive as well as entrepreneurial that is driven by sense of importance, competitiveness as well as total commitment to the result (San Miguel Corporation 2008).  The company also gives focus on the team work or the presence of trust and respect for each and every individual or employees inside the company that will result to harmony through common goals and objectives, exceeding limitations along functional and organizational lines (San Miguel Corporation 2008). The company is also into human resource management. The company is committed in nurturing and encouraging the capabilities and skills of their employees. The said mission can be done by uplifting the dignity of labor and supporting them to be the best people in their field. The company also focuses on the creation of a better working environment by implementing open communication, companionship as well as professionalism (San Miguel Corporation 2008).  The next most important aspect of the company is their customers; the company will apply their innovativeness as well as their integrity in order to gain the attention and maintain the loyalty of their customers to their products and maintain their position in the industry (San Miguel Corporation 2008). Last, but not the least, is their social responsibility. Social responsibility is considered as one of the most effective marketing strategy of many corporations and companies. This is due to the fact that it has a great impact or appeal to the customers. It also helps the company to become committed in improving the lives of the people in their communities in which they live and work (San Miguel Corporation 2008). Chapter 2 2      Internal and External Environment Beer has been considered as the alcohol for masses in Hong Kong. It is considered as the choice of alcohol drink that does not carry class stigma, it is readily affordable. In addition to that, different brands signify different symbols in terms of social life. There are some drinkers who believe that beer has a health benefits. 2.1  Consumer Buying Behavior In 1970s the demand of the Hong Kongers towards beer had grew forcefully. That is due to the fact of the import of the labor from the mainland China. Unfortunately, by 1980s, the economy of Hong Kong had begun to succeed and helped the Hong Kongers to become more educated as well as wealthy; eventually it had helped to drop the ration of the blue-collar workers.  The said event had affected the beer industry in Hong Kong, that had lead to a slow and no growth at all (cited in Speece & Kawahara 1994, p. 10). The per capita consumption of beer of the Hong Kongers is comparatively low when compares to the standards of the Western people (see appendix 1 for the comparison). In 1992, the average consumption of beer of the Hong Kongers has reached 29.8 liters. The said demand for beer had decrease compare to its demand from 1990 that ranges from 28 to 35 liters (cited in Speece & Kawahara 1994, p. 11). The buying behavior of the customers towards beer depends on occasions as well as to the brand of the beer. Tsingtao beer is considered as the lowest of them all, tourists are just availing the said beer in order to feel and experience the real China. On the other hand Carlberg that is made in Denmark is considered as the beer of the bar as well as the beer of the night. It is belong to the social rank that is higher from San Miguel (Matthews & Lui 2001, p. 122). San Miguel Beer is considered as the mediocre beer, meaning it does not belong to the lowest social status, or the upper class. Beer is considered as part of the life of the Hong Kongers. It generally perceived as the cheap brand. Primarily, it can be said that San Miguel is one of the most affected beer brand in Hong Kong, by the affluence of the Hong Kongers. It had slowly but steadily lost its market share in Hong Kong (cited in Speece & Kawahara 1994, p. 11). According to the study that was conducted by Speece & Kawahara (1994), the blue-collar respondents are the one who drinks most per in a month. Unfortunately, it also had showed that their average of 12.5 bottles or can per month is not sufficient to stand for high consumption. In addition to that, it had also showed that the professionals or those respondents who are from the upper management had resported to consume about 9.4 bottles or cans in a month, 7.9 for the white collars or those clericals and 4.1 for the students (p. 13). 2.2  Market Segmentation The market segmentation of San Miguel Beer in Hong Kong is divided into the demographic variables: age and gender. With accordance to the age, due to the fact that beer is categorize as liquor or alcoholic drink, the age of their consumer start from the age of 18, as the legal age. With relation to market segmentation in terms of gender, it is divided between male and female customers. This is due to the fact that the said two categories have two different preferences when it comes to beer. Another matter is that women Hong Kongers are not into alcoholic drinks than the man. 2.3  Target Market Strategy Due to the fact that Hong Kong economy had been thriving and flourishing and the citizens had become affluent and professional, it had affected their taste when it comes to any product, more particularly to their beer consumption. Together with this, most of the consumers are now starting to look up to the brand name than to the taste or the price of the beer. Beer has become a symbol of the social status. San Miguel had been tagged as the beer for construction workers (Matthews & Lui 2001, p. 123). In order to maintain their position in the market, the company had begun to brew the German Löwenbräu under the license in 1980. In order to improve their line of products, they had signed a license about the production agreement with the Kirin, a Japanese brewer. The said strategy had been done in order to defend the product from other imported beers, specially the Carlberg (cited in Speece & Kawahara 1994, p. 11). Unfortunately, the said strategy had not been successful due to the fact that the brand Löwenbräu is still mainly viewed as German, and Kirin as Japanese, and not local (Speece & Kawahara 1994, p. 11). In addition to that, the company is still targeting their customers by means of the traditional culture of the country. The commercial of the products pertains to the local and familiar settings that evolved in the culture of the Hong Kongers. In addition to that, it also uses clear narrative storylines (Matthews & Lui 2001, p. 123). 2.4  Positioning During the 1980s, San Miguel Beer had been considered as the most popular brand of beer in the entire Hong Kong. The said beer is originally based in the Philippines, but due to its acting local approach, where in the company had used different TV commercials that shows the rich culture and rewarding life in Hong Kong. The said approach had made a great appeal for the Hong Kongers to accept the brand and embrace it as if it’s their local product (Matthews & Lui 2001, p. 123). Compare to other European brands of beer, San Miguel beer had always been considered as the brand for the masses or the ordinary people. The said event brings San Miguel as the leading beer brand in Hong Kong. Unfortunately, 1990s the brands of beer in Hong Kong had been change and become a multi-level hierarchy. It had made San Miguel as the most popular beer in Hong Kong during the 1970s, to become less popular beer during the 1980s. The position of the said beer had been replaced by Heineken (Matthews & Lui 2001, p. 123). San Miguel is considered as the mediocre beer, after Carlsberg. In terms of social ranking, the next to the ranking of the first two said brand are the Heineken, Budweiser, Corona, Col and Guinness (Matthews & Lui 2001,p. 124) (see appendix B for the complete details of the social ranking of beers in Hong Kong). Chapter 3 3      Formation In order to make sure that the officers and different entities who are involved in the important decision-making activities of the company, a compliance system had been implemented. This is to make sure that they are protecting the interest of the company as a whole as well as those employees who are into the lower level of management as well as to protect the integrity of the company for the sake of their customers. In addition to that, the company also focuses on creating their audit committee that will assist the board of the Company in order to accomplish it corporate governance as well as to prevent different flaws and mistakes with connection to the responsibilities in financial reporting, internal control structure, the risk management system as well as the internal and external audit functions (sanmiguel.com.hk 2007). 3.1  External Audit External audit is important safeguard in the stewardship of public money. It is used in order to deliver via carrying out the different reviews that are designed to test the sufficiency of the authority’s financial system, as well as the provision that will help to avoid as well as to become aware of different activities that will lead to fraud and corruption (Finance 2005). In order to make sure that the integrity of the internal audit of the company will be maintained, they have created a position that will handle the different processes of the external audit. The external auditor will handle the different issues of the company that pertains to the maintenance of good corporate governance that eventually reflect to the financial records as well as the reports of the company. In addition to that, the external auditor will be selected as well as appointed by the company’s stockholders via the recommendation of the Audit Committee (San Miguel Corporation 2008). The company appointed KPMG as the External Auditors. They are the one to report about what is going on about the external audit of the company. The company had allocated a total of .3 million from the 2005 financial statements of the San Miguel together with its subsidiaries for the KPMG’s 2005 legal audit services. The quantity that was paid by the company for other non-audit services provided by KPMG for the Company and its subsidiaries during the year under review such as taxation computation review as well as corporate governance review was .4 million (San Miguel Brewery Hong Kong Ltd. 2005, p. 24). Furthermore in order to help the external auditors to manage the external audit of the company, the audit committee will be responsible in monitoring the independence of the auditor as well as the effectiveness and objectiveness of the auditing process with accordance to the standards and rules that governs the company as a whole. 3.2  Internal Audit In order to maintain the integrity of the internal audit of the company, the company had decided to have a position or place for an independent internal audit that will be performed by internal auditor or group of internal auditor. With accordance to the said responsibility, it is the role of the senior management as well as the stockholders to provide the reasonable assurance to the organization that the internal auditor will be able to control the different procedure of the company in efficient, suitable as well as compiled manner (San Miguel Corporation 2008). The audit committee will be the one to handle and monitor the reports of the internal auditors. The least amount of the internal control mechanisms for the overall operational responsibility of the management will focus on the CEO, due to fact that he or she is the primary person or authority who is accountable for the organizational controls and procedural controls of the corporation (San Miguel Corporation 2008). Above all, the different scope as well as the details about the system that is characterized by effective organizational and procedural controls are all based on the standardized factors such as: the nature and the density of the business, together with the culture of the business; the level, size as well as the difficulty of different transactions; the level of the different risks; the level of the centralization as well as the allocation of power; the point and the efficiency of the information technology or IT; and the point of the regulatory compliance (San Miguel Corporation 2008). Chapter 4 4      Implementation The implementation process involves the most important actual processes and transactions that have a direct connection with the company. This are the most essential aspect or part of the company that deals with the competitive advantage of the company and can help to increase the sales as well as to improve the image of the company, together with the brand name. It can also help the company to maintain its position in the industry.   4.1  Management Management can be considered as one of the vastest activities inside the organization. It is composed of different activities such as planning, organizing, leading or directing as well as the process of controlling. It is important for the company because it serve as the connection between the different internal entities of the company such as the employees, the stockholders, the suppliers and company itself or the upper management. In order to make sure that each and every member of the company or the stakeholders of the company are following the goals as well as benefiting from the management of the company, the corporate governance had been made. It is the long standing commitment of the company to the good corporate governance practices that takes the leadership role in processes of instituting as well as maintaining the different practices that will provide a significant framework within that will make sure that the Board, together with the Directors and the management can follow the different strategic plan and activities of the company and will eventually make sure that the company will meet the long-term vitality for the sake of the stockholders (San Miguel Corporation 2008). In addition to that, the company is also focusing on its Human Resources as one of the major strategies that will help them to maintain and improve their position in the industry. The company is investing money for their people. The company is implementing different training as well as capable support from their coworkers and focuses on the spirit of team work in order to achieve the goal and aim result in the highly competitive business environment (San Miguel Brewery Hong Kong Ltd 2005, p. 9). Above all, the company believes that their human resource is the key for their competitive advantage that is why they are doing some programs and plans that will focus on the benefits and sake of their employees in order to maintain their loyalty and will motivates them to work at their best. The company offers their fringe benefit that is consists of medical and insurance coverage as well as the retirement benefits for each and every employee (San Miguel Brewery Hong Kong Ltd 2005, p. 9). 4.2  Operation The operation of the company can be said as one of the most important aspect of the implementation activity of the company. This is due to the fact that the industry of beer in Hong Kong had been weak during the past few years of the company’s operation. As a matter of fact, in 2005, the total volume of the industry has decrease by 1% from the past year. In addition to that, the company is also facing the challenges of changes in the preferences of the customers from the low or cheap price and high quality beer, to economy-priced brands. This is according to the retail audit, where in shows that the segment share of the economy brands had raised from 2004, having 37.3% to 2005, gaining the 40.7% share (San Miguel Brewery Hong Kong Ltd 2005, p. 8).  In addition to the said statistics, the sales of the company had declined in 2005 by 0.8%. In order to develop as well as maintain the position of the brand in the market, the company had set and implemented different strategies. The said strategic programs aim to reinforce the connection of the brand to the consumers (San Miguel Brewery Hong Kong Ltd 2005, p. 8). As part of the company’s operation, it had launched their new marketing campaign for the brand that focuses on the theme Our City Our Beer. The said campaign had been implemented via the use of different television commercials and advertisements, different point of sales visibility blitz, online communications, together with the public relation programs. Different independent marketing research had showed that the said campaign of the company was received well by the consumers of the brand (San Miguel Brewery Hong Kong Ltd 2005, p. 8). In addition to that, the company also focuses its operation in their San Miguel WildDayOut that has been successful for two years straight in 2005. The said operation has been done in order to target or communicate with the younger segment of their target customers (San Miguel Brewery Hong Kong Ltd 2005, p. 8). The said program has been done by sponsoring series of shows and at the end of the year, the company had also launched their grand concert that are held with the appearance of different popular local as well as international artists. The entire invited cast of artist had helped to build the image of San Miguel Beer (San Miguel Brewery Hong Kong Ltd 2005, p. 8). Due to the continuous effort of the company by reaching their customers as well as their effort to give their customers their best, the company is still the major player in the beer industry in Hong Kong. In 2005, the company is still the largest player in the said category. In addition to that, the company also focuses on the re-visitation of their product cost that will help the company to maintain the profitability of the company regardless of the volume mix change (San Miguel Brewery Hong Kong Ltd 2005, p. 8). The export volume of the company had grown to 61% compare to the last year (San Miguel Brewery Hong Kong Ltd 2005, p. 8). Part of the operation of the company is to share their blessings to the society of Hong Kong. San Miguel is considered as good corporate citizen in Hong Kong. It is because the company is continuing its activities in contributing to the Hong Kong economy as well as the citizens of the said country, together with South China (San Miguel Brewery Hong Kong Ltd 2005, p. 8). Corporate responsibility is considered nowadays, as one of the most important aspect of many businesses, this is due to the fact that it gives many benefits such as building the image of the products. The company is giving their regular donations to different charities as well as non-profitable organizations or NGOs. In 2005, the company had been able to participate in different events in the community of Hong Kong (San Miguel Brewery Hong Kong Ltd 2005, p. 8). Another important aspect of the corporate social responsibility of the company is their concern with the nature or the environment. The company is implementing different standards and rules that handle the environmental friendly manufacturing processes (San Miguel Brewery Hong Kong Ltd 2005, p. 8). 4.3  Marketing Marketing had been one of the most important factor in any companies and organization in the world. It serves as the primary transaction and process that connects and bonds the customers and the company. The primary marketing strategy that has been applied by the company to their relationship with their customer is their ability to act as local, where in the customers had been able to feel that the company has originated or owned by their country. Another important thing is that the company also uses the settings and the culture of the Hong Kongers in creating and implementing their different marketing strategies such as their advertisement. The company had been able to had famous people or personalities to represent their brand, for example is the hilarious television advertisement of Stephen Chow that shows the sensuality of a girl, at the same time, bringing out the sense of humor of Stephen Chow (See appendix C for the preview of the TV ad). In addition to that, the company had also included Jet Li to the list of their endorser, together with the boxing icons Manny Pacquiao and Erik Morales. It shows the movements of Jet Li that woo a gorgeous and stunning woman using the bottle of San Miguel (Yin 2007). The campaign had been launched via the way of print, outdoor, the direct marketing as well as the activation executions (Yin 2007). The company had also changed their tagline from Come Together With San Miguel Beer to Camaraderie like No Other (Yin 2007). In addition to the said strategy, the company is also into sponsorship and other related strategy. They are engaging into different gigs and celebration in order to show or the represent their products to their customers. Another important marketing technique of the company is their pricing. San Miguel beer is considered as one of the cheapest brands of beer in Hong Kong. It had been a great help for the company since it can be availed by those consumers who are into blue-collar job or those who belong to the lower level of management. Unfortunately, the said strategy had caused the company some disadvantages, and that is due to the fact that price of beer had caused to create a social status division among the brands of the beer. It had affected the image of the brand, due to the major change of the standard of living in Hong Kong. 4.4  Finance/Account Finance or account is considered as the blood of the company. It is the life of the company due to the fact that it is the primary concerned of the upper management whether to continue or not their plans. The production, processing as well as the marketing of the products, together with the monetary issues of all the activities of the company is somewhat connected with the parent company or the San Miguel Corporation that is located in the Philippines (p. 7). In addition to that, the company had also implemented their different accounting policies and principles, in order to make sure that the company is maintaining their integrity in terms of monetary flow. 4.5  Research and Development Research and development pertains to the innovation and improvement of the company. It is one of the most important activities because it focuses on the improvement and development of the company as a whole. One of the primary focuses of the research and development activity of the company is the environment friendliness of their manufacturing and processing activities. The company is focusing on improving the safeness of their different manufacturing activities and processes against the environment. One of its primary concerns is the consumption of different energies that are spent in major machineries for their manufacturing process. It has been done in order to help to prevent global warming. The bottle is also another factor, due to the fact that it can help to manage the waste in the country. With connection to the development of the company, they are also focusing on connecting with their customers by deploying their own market research that can help them to ensure the competitive advantage. In addition to that, the company is also focusing their research and development in connecting to their young or youth customers. Another factor is that the company is also focusing in developing or launching new products that will serve as the counter part of the upper social class brand of beer in the industry. The said strategy is to make sure that the brand name of company will maintain its position in the market.   5      Evaluation Based on the data and information that has been gathered with connection to the company and the different aspects or activities that are important to the company, the primary problem of the company is the negative impact of their image to their consumers, together with the sudden change of the standard of living and culture of the Hong Kongers that had affected their preferences as well as taste in beer. The said change in the standard of living of the Hong Kongers had affected the image of the product in negative way. Another important thing is that, the marketing strategies as well as the research and development activities of the companies is somewhat not enough to handle the current problem of the company that causes for their sales to fall. All of the said factors can affect the position of the company in the industry.   Chapter 5 6      Conclusion San Miguel has been considered as the most popular beer in the history of Hong Kong, as a matter of fact, the said brand is also available in different part of the world. San Miguel had become the leading brand of beer in Hong Kong from its launching. It is considered as the most successful multinational companies in Hong Kong beer industry. Unfortunately, the company had become a victim of globalization and the change of the preferences and standard of living of their target market. Due to globalization, their competitors in the beer industry had grown and affected their sales and position in the market. San Miguel beer had been considered as the beer for the mass, it can even be tagged as the national beer of Hong Kong, this is due to the fact that San Miguel beer is cheap and it has a high quality. The said brand had been part of the life of the Hong Kongers. Another important strategy of the company is that they had been able to build or establish their own brewery in Hong Kong; it gives the Hong Kongers the feeling that the company is their own or considered the company as local. The said success of the company had continued until the economy and the financial status of Hong Kong in the world change. The said change had made Hong Kong as one of the central market in Asia; therefore it had affected the social status of the citizens. The Hong Kongers had become more educated, more professional and eventually became wealthy and affluent. The said major change in the social status of the country as a whole had affected the demand of the people to the product. The Hong Kongers had become more conscious with the brand name, especially those beers that are from Europe and America. The image of the San Miguel had become cheap. The said event had affected the sales of the company due to the fact that some of the Hong Kongers prefer to buy beers that are included in the upper class of beer brand. The said event happen because, the image of the brand had been labeled as beer for the poor or for the blue-collar job. Another important thing is that, although the Hong Kongers prefer the taste of San Miguel beer, there are some occasions where in they prefer to have other brand, such as for their visitors and other important occasions.  Another important factor that affected the sales of the said beer is that many bars or the likes prefer to sell the upper class of beer brand rather than San Miguel. This is because they see San Miguel beer as the beer in street occasions or street parties rather than in the bar.   Chapter 6 7      Recommendation The primary problem of the company focuses on the image and the preferences of their customers or their consumers. With accordance to their problem, the company can continue their partnership with different International companies that will help them to expand or extend their brand names. With connection to the said strategy, it is also important to maintain the old image of San Miguel as cheap but high quality beer. This will serve as their marketing strategy as a part of their market segment. The said strategy will handle the lower income segment of their customers. By maintaining the said strategy, it helps the company to reach the masses as well as to maintain its strategy of acting local. The company must also focus on their professional or their upper management customers. This is due to the fact that it can affect to the overall sales and performance of the company. It will be helpful if they will be able to launch new product that will meet the demand and taste of the customers. New packaging style will help the company to rebuild their image. It will also help if they will expand their brand name by engaging into expansion of product such as soft drinks. This will help the company to maintain and improve their sales. It will also help the company to resolve their problem regarding the health consciousness of the Hong Kongers. With regards to their marketing strategy, the company must continue their campaigns that use big stars and celebrities. It will help them to lift up the image of their brand. Their communication and connection with the youth is also important matter, it will be helpful if they will continue to plan different gatherings that will be sponsored by the company. In that case it will be helpful to create a community of the customers that will eventually help them to use the word-of-mouth strategy. In terms of their marketing campaign, using different usable items such as T-Shirt, cups, beer mugs as well as bottle opener will help the company to spread the goal of the company to their customers, therefore building more strong connection with them. It will be a great help to the major advertisement of the company such as billboards and television advertisements. Above all, it will be helpful if the company will be able to bring their product in other part of the world, that is outside Asia, like for example America and Europe. If they will continue to pursue their position in the beer industry of the said countries, it will serve as a big publicity for the brand and it will eventually affect the global image of the brand.         Reference   Annual Report 2005 (2005), San Miguel Brewery Hong Kong Ltd.. Retrieved March 25, 2008, from http://info.sanmiguel.com.hk/GS_Share_Object/Ann ual_Report/SMBHK2005AR.pdf   External Audits, Finance, Retrieved March 25, 2008, from http://worcestershir e.whub.org.uk/home/wcc-finance-external-audit.html   Matthews, G. & Lui, T. (2001). Consuming Hong Kong, Hong Kong: Hong Kong University Press   Our History: Proud Beginnings 2008, San Miguel Corporation, Retrieved March 24, 2008, from http://www.sanmiguel.com.ph/Content.aspx?MID=0&coi d=1&navID=13   San Miguel Brewery Hong Kong Limited (2007, September 28). Datamonitor, Retrieved March 24, 2008, from http://www.datamonitor.com/companies /company/?pid=76B993F4-E4A6-4D47-AE56-84E8600DD763   San Miguel Brewery Hong Kong Limited – Company Profile Snapshot (2007). WrightReports. Retrieved March 24, 2008, from http://wrightreports .ecnext.com/coms2/reportdesc_COMPANY_C344AR220   San Miguel Brewery Hong Kong Ltd. (0236: Stock Exchange of Hong Kong Limited). Business Week, Retrieved March 25, 2008, from http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?capId=874762   San Miguel and Hong Kong. Sun Lik Beer, Retrieved March 24, 2008, from http://www.sunlikbeer.co.uk/history_and_heritage/index.html   Speece, M., Kawahara, Y. & Stella, L. M. (1994). Imported Beer in the Hong Kong Market, British Food Journal, 96, 1, pp. 10-18   Terms of Reference of the Audit Committee (2007, May 09). sanmiguel.com.hk, Retrieved March 25, 2008, from http://info.sanmiguel.com.hk/Eng_Corpor ateGovernance/CG_AuditCommittee_Frame.htm   Tsoi, B.C. F. & Wong, W. Y. V. Design for Environment Final Report. San Miguel Brewery Hong Kong Ltd. Environment and Business, Retrieved March 26, 2008, from http://teaching.ust.hk/~sosc217/SampleReport4.pdf   U.S. Beer Sales Step Up in Hong Kong (1997, January). AgExporter. FindArticles.com. Retrieved March 25, 2008, from http://findarticles.co m/p/article s/mi_m3723/is_n1_v9/ai_19364029   Yin, S (2007, August 22). Brand Republic, Media Asia, Retrieved March 25, 2008, from http://www.brandrepublic.com/News/732764/Jet-Li-backs-San-Miguel/                     Credit:ivythesis.typepad.com

San Miguel Brewery Hong Kong Limited Case Study

San Miguel Brewery Hong Kong Limited Executive Summary The major problem of San Miguel Brewery Hong Kong Limited is the sudd...

Research proposal on Analysis of key factors influencing motivation of employees within an organisation

Analysis of key factors influencing motivation of employees within an organisation   Introduction The employees are a group within the organization that is undeniably one of the most significant factions that contributes to its success. A business cannot exist without financial capital, but it also can never exist without human capital (Davis, C. 2003). It is the employees who work for the firm, performs the necessary tasks to make the firm function, and are responsible for the profit and growth of the firm (Ellis, 2000). With such great roles and responsibilities tasked to the staff/employees, they are being kept by the firm through strategic motivation approach along with efficient leadership skills. Making employees give their best on their job and tasks is perhaps one of the most challenging endeavors that the firm should perform. Employees can do many things during work that may disrupt or support the attempts of the firm to earn money. Firm should always give the effort to motivate their employees. Motivating employees means empowering them to lead the firm into the path of competitiveness (Bridges, 2001). Motivation or empowerment of employees through efficient leadership is significant to give the employees enough reason to stay in the firm and work their best in the company (Ellis, and Lindsay Lowell 1999). Primarily, the goal of this paper is to analyse the factors affecting motivation of employees within an organisation   RESEARCH PURPOSE The aim of this study is to determine the factors influencing motivation in an organization specifically, the aims are: ·         To identify the factors that affects motivation in staff motivation. ·         To identify the factors which enable management to improve their motivation ·         To identify the internal and external environment influence for management to improve staff motivation.   5.1       Brief description This part of the paper discusses the methods that will be used for this research.  This detailed the steps the researcher should consider in order to accomplish the study.  The said steps then include the collection procedure of the data that is required in the delivery and completion of the research.  It also presents the manner in which these data will be utilised and integrated in the study and at the same time, detail how the research proceed to answer the aims and objectives in order to reach to the conclusion. In this manner, this part of the paper justifies the means in which the study will be performed.  It also emphasises its credibility by making mention of widely accepted scientific methodologies. Through the methods mentioned in this paper, a plausible conclusion will be obtained. Looking back to the aims and objectives of the study, the study intends to determine the impact of leadership to staff motivation. In order to identify the opinions of such staff, the study’s methodology was focused on collecting both primary and secondary data through related literature research and the survey and interview materials. As the research intends to discover the general consensus of staff in the firm with regards to motivation and efficiency of the leader, the immediate research methodology in mind is the descriptive research design.  The research are taken from various data sources that is integral in identifying issues with regards to leadership, employee motivation and the status of their performance in the firm.   Reference Bass, B.M. (1990) Bass and Stogdill’s Handbook of Leadership: New York: Free Pres Beam, B.T. & McFadden, J. (2000) Employee Benefits, Dearborn Trade Publishing.   Bridges, L. (2001) ‘Keep Talent on your Turf’ eWeek. Vol. 18, No. 18. pp. 12-20.   Butkus, R. & Green, T. (1999). Motivation, Beliefs and Organisational Transformation. Connecticut: Quorum Books.   Marshall, C. & Rossman, G.B. (1999). Designing Qualitative Research. 3rd Edition. Thousand Oaks, CA: Sage.                                                                                                       Part 1.  Profile of Respondent Direction: Please fill up in all the necessary information about yourself. Don’t leave any item unanswered.   A.   For the Employees                                                                                                    a.            Age_____________________   b.            Gender Male ( ) Female ( )   c.            Position in the Company _________________________ d.            Length of Stay in the Company   Part 2: Perception of Respondents Direction:      Check the number corresponding to your answer                         1          -           Strongly Agree                         2          -           Agree                         3          -           Uncertain                                          4          -           Disagree                                                 5          -           Strongly Disagree   <li class="MsoNormal" style="color: black; text-align: justify; line-height: 200%; margin-bottom: 6.0pt"> Why is there a need to motivate employees?</li> Table 1 Statements 1 2 3 4 5 1. One of the factors that affects motivation in organisation is  the aspect of giving value to their employees who have shown efficient accomplishment of works throughout the years.           2. One of the factors that affects is the aspect of boosting and enhancing their skills .           3. Cost of motivating employee can also influence motivation in organisation..           4.   Leadership styles used can affecs management training. .               Credit:ivythesis.typepad.com

Research proposal on Analysis of key factors influencing motivation of employees within an organisation

Analysis of key factors influencing motivation of employees within an organisation Introduction The employees are a group within...

Strategic Management of Hotel SO Christchurch

Introduction The service hospitality sector is mostly fragmented in many small units where location and the spatial distribution of accommodation are important factors determining the degree of competition (Sinclair & Stabler, 1997). The hospitality/ accommodation industry is one of the most successful industries in the global economy. The accommodation sector can be a source of a profitable business. This industry has business that includes hotels, casinos, tourism and food services. This paper will concentrate on the hotel business. The competition on the hotel industry is based on the desire of each hotel owners and managers to provide the best service to clients (Hall & Tucker, 2004).  Countries rely on the hospitality industry and the business within it to assist in the countries goal to have a good economy.  The competition on the hotel industry is based on the desire of each hotel owners and managers to provide the best service to clients. Hotel chains have a long history of operating beyond national borders. Some of them started international operations more than a hundred years ago. Certain hotel chains are extremely global. Others are not (Aharoni & Nachum, 2000). Hotels provide paid lodging on a short or long term basis. It provides accommodations to various kinds of clients who may be are tourists, business people or people who want to experience the hotel service. Hotels are ranked depending on their capability and the kind of service they provide. Hotels help countries to improve its image to the tourists that visit the state. This paper will focus on Hotel SO Christchurch. The paper will conduct a strategic external analysis for the opening of a Hotel SO Christchurch in Auckland city. Main body Background of the hotel and vision/mission Global economic restructuring and development are the most pertinent factors in the study of globalization. Economic globalization is reflected in footloose capital and the growth of less nationally regulated industrial, banking and commercial sectors, a process that is also clearly represented in the global tourism industry’s principal economic sectors with mergers and buyouts between international airlines and hotels (Mowforth & Munt, 2003). Hotel SO Christchurch prides itself on its innovativeness and prestige. It is on the verge of reaching newer markets and eventually reaches global market standards. The hotel’s philosophy is focused on the notion that unique designs, groundbreaking technology and effective/efficient service should be available to everyone at a great price. Each room in the hotel has features appropriate to diverse clients. The room features free wireless broadband, flat screen entertainment system, and controllable mood lighting.  The company has teams that hire people from diverse industries that include property development, hotel management, marketing and advertising. The hotel’s mission and vision includes: <li class="MsoNormal" style="color: black; text-align: justify; line-height: 200%"> Establish itself not only in the local but global market.</li> <li class="MsoNormal" style="color: black; text-align: justify; line-height: 200%"> Analyze the environment and determine the major problems in the internal and external market.</li> <li class="MsoNormal" style="color: black; text-align: justify; line-height: 200%"> Determine strategies to enter into the market of Auckland City, New Zealand</li> <li class="MsoNormal" style="color: black; text-align: justify; line-height: 200%"> Determine the barriers in maintaining operations in the new market. </li> The general environment New Zealand has, for a long time, promoted itself as a tourist destination which offers open spaces, a clean environment and unique, fresh and green scenery. There is validity in these promotional images used by the New Zealand Tourism Board. The Department of Conservation (DoC) is intimately involved with tourism in New Zealand wherein many photographs used by the New Zealand Tourism Board in promotional literature show scenery from the conservation estate (Faulkner, Laws & Moscardo, 1998). New Zealand’s tourism industry is very aware of the problems caused by tourism. It is far too soon to argue that tourist businesses in New Zealand promote forms of tourism that are economically, socially and environmentally sustainable, but undeniably there is an increased awareness of these issues. Like other places around the world, New Zealand is subject to concerns and debate about tourism and its impacts (Hall & Richards, 2000).   The tourism industry serves as one of New Zealand’s export earner.  It brings about millions of finances from various tourists that come to the country every year. The tourism industry of New Zealand makes use of the country’s natural resources to attract people who have various purposes and thoughts of leisure in coming to their country. Although tourism is primarily a good thing, there are some organizations that worry for the effect of tourism to their natural resources (Sheller & Urry, 2004).   They frequently see to it that the tourists will be educated on how important it is for them to conserve the natural resources they use. The different groups also help the tourist to develop a concern for the environment. From its early beginnings with explorers and mountaineers, and some package tours, New Zealand tourist entered the modern era with the arrival of jet engine aircraft in the late 1950s and the subsequent breaking of distance barriers to major markets. Growth in international tourist demand has averaged 9 per cent over much of the past two decades, ahead of both Pacific regional and world tourism trends. Australians, Japanese, North Americans and United Kingdom residents comprise about 60 per cent of all arrivals; one-half of these originate from Australia. There is strong contemporary growth from emerging Asian economies (Jafari, 2000).The New Zealand tourism board is the main agency responsible for tourism in the country and its policies. The tourism policy of New Zealand makes sure that although they use their natural resources they still find ways to protect it for future generations. The tourism policy of New Zealand provides appropriate and acceptable tourist facilities.  The tourism policy of New Zealand ensures that although they promote their culture and heritage it will still be treated with appropriate respect and reverence. One area in New Zealand is Auckland City. It is the most populated city in the country. Together with neighboring cities they form the Greater Auckland area. The term Auckland may refer to the local authority alone, to the whole metropolitan area, or even to the broader region.  The city boasts of breathtaking scenery, beautiful beaches, invigorating walks, idyllic holiday islands, outstanding food and wine, great shopping and exciting nightlife. These attractions help the city attract tourists coming from other parts of New Zealand. Macro environment analysis PEST Political Hotel SO Christchurch made sure that they were aware of the political situation of every country they have operated in and the company has made sure that it has a reasonable position with regards to political issues Hotel SO Christchurch is continuously prepared for any problems concerning the political sector. Any political noise is irrelevant to the company. Unless the political environment will change rules that relate to their operations, Hotel SO Christchurch prefers to stay away from such subject. The political environment has allowed the liberation of the market, liberation of the market paved the way for improvement of services. The laws of Auckland City will not be a hindrance to the growth of the company. It will provide the much needed help in making sure that the company will achieve its goals. The laws of Auckland City will give guidance to the organization so that the company can achieve its goals without major issues from the government.   Economic Hotel SO Christchurch can be said to be economically stable for the past years. Its economic stature is doing well that’s why they try to improve their products to give the best to their clients. It is not only the internal economic situation of the company should be taken note of but also the economy of the country. Hotel SO Christchurch checks first the economic status of the country they are operating in before making decisions if they will have a branch in that area and since Auckland City has been doing well economically then there is no reason for Hotel SO Christchurch to abort entering that market. The economic forces can dictate the actions of Hotel SO Christchurch, if the economy is doing well then Hotel SO Christchurch can offer new services but if the economy is in a worse state then Hotel SO Christchurch have to reduce unnecessary expenditures and un important actions.  The economy of New Zealand and Auckland City has given opportunities to hotel businesses. The status of the economy has paved the way for various hospitality and hotel businesses to prosper in the region and help in proving that New Zealand and Auckland City is one the premier region that houses the industry.   Social The socio cultural force serves as the conscience to Hotel SO Christchurch. This force ensures that Hotel SO Christchurch will not do things they know can ruin Hotel SO Christchurch’s reputation with the society. This force ensures that both companies will consider first its environment before making any decisions. Hotel SO Christchurch makes sure that the services they offer will be accepted by the public. Hotel SO Christchurch does not authorize the delivery of some services they know will cause outbursts or complains from different groups in the society Hotel SO Christchurch also engages in social activities that tend to develop a better relationship between them, the clients and the society they are operating in. Technological Hotel SO Christchurch offered new innovations in its technological aspect and introduced new concepts with regards to its industry. Hotel SO Christchurch makes use of highly advanced register systems. It also makes use of better security systems to rooms, hallways and other vital places.  Since technology rapidly changes. Hotel SO Christchurch makes sure they are updated to what is happening and they can adjust to these changes.  If other companies use new technologies to provide services, Hotel SO Christchurch has the technology capable of competing with such technologies.  The technological forces dictate the trends in the hospitality industry, these forces is the one that determine what should be used to provide a service. Hotel SO Christchurch relies on the products created by the technological forces; the products of these forces are the ones that can give Hotel SO Christchurch advantage over their rivals and success in their field.  It provides the company the means to serve the clients in the best way possible,   Porter’s five forces Potential Entrants             Hotel SO Christchurch has been around for a quite some time and the company is not greatly affected by the new entrants. The influence of potential entrants to the company is weak.  Any new entrant will have difficulty in gaining clients not unless they can provide innovative strategies that can thwart Hotel SO Christchurch from its position and get the company’s clients. The services offered by Hotel SO Christchurch is unique in terms of appearance if any new entrant want to compete with Hotel SO Christchurch’s standard of service they need to have a huge investment to create services that have the same caliber as the services of Hotel SO Christchurch.  They also need to make use of better strategies that will give them an instant brand identity.   Competitive rivalry             Competitive rivalry has a low influence on Hotel SO Christchurch. The company has lower concerns on its competitors since there are limited competitors in their industry.  The competitors cannot give much problem to the company since it already acquired a good percentage of the buying public.  But due to the plan to enter a new market, competitive rivalry is becoming a concern to the company. Hotel SO Christchurch needs to make sure that it makes cautious decisions in Auckland’s market.   Substitutes Substitutes give high influence to Hotel SO Christchurch and its different branches since substitutes can make a company lose the clients it has. The substitutes can be in the form of online or actual stores. This kind of business is continuously growing and continuously changing strategies. Substitutes come in the form of motels and hostels. Hotel SO Christchurch makes sure that the substitutes won’t give them much problem. They do this by proving that the service they offer and the technologies they use to provide the service are the best quality and are better than substitutes or any other company. Bargaining power of buyers . The bargaining power of buyers highly influences the hospitality industry and Hotel SO Christchurch. It shows how the industry tries to create good relationships with clients. As much as possible the company maintains reasonable prices for their services. They also have promos that intend to make the clients have second thoughts on purchasing products from other companies.  When the clients try to dictate lower prices Hotel SO Christchurch tries to know whether it is reasonable. Hotel SO Christchurch sees to it that a big part of decisions on prices will be based on suggestions of the clients. For Hotel SO Christchurch the bargaining power of its buyer is gradually increasing as they are more and more similar types of products and services available in the market.   Bargaining power of sellers The bargaining power of sellers highly influences Hotel SO Christchurch. The company makes sure that their suppliers have high bargaining power through helping them show their importance in the industry.  Hotel SO Christchurch makes sure that the price being asked for a material has the same value as the same materials’ quality. This will ensure that budgets will not be wasted.  Hotel SO Christchurch has to be aware of its partnership with its services partners. Hotel SO Christchurch has to make sure that every part of the agreement with the partners will be followed. Any adverse changes or violations in the partnership agreement will incur a certain amount of risk to Hotel SO Christchurch. Competitive analysis Taking the time to look critically at and understand competitive advertising and positioning strategies has been among the most effective ways to leverage means-end research into an effective communications strategy that builds on strength, stresses defensible points of distinction, and reframes the consumer decision-making process in a way that creates competitive advantage. Segmentation divides a heterogeneous marketplace into smaller and more manageable homogenous components. These smaller market segments can be targeted with more personally relevant positioning strategies that have greater appeal to individuals within the group (Reynolds & Olson, 2001). Today’s winning companies have been among the first to accentuate their distinctiveness by adopting customer-based marketing and positioning strategies. Such strategies help managers deal with their growing uncertainty regarding how to position a product and develop an action plan that will retain and cultivate established customers, and in some cases, attract whole new market segments (Paley, 2006).There are many probable competitors for Hotel SO Christchurch in the Auckland market, they include the Quadrant; Rendezvous Hotel Auckland; The Langham, Auckland; The Westin Auckland; Castle Spencer; Hyatt Regency Auckland and many others.  To achieve the goals of entering the Auckland City market, Hotel SO Christchurch should strengthen its competitive advantage of being able to offer affordable prices for their services and room rates. The company should see if their prices can compete with the prices by competitors in the Auckland City market. Opportunities and Threats of the external environment Opportunities An opportunity for Hotel SO Christchurch is to find out more ways to give a distinctive look and features to the hotel. By doing this the company will have competitive advantage over other firms. It will attract clients who have various tastes. This will help the company have unique identity in the new market amidst their competitors. An opportunity for the company is to improve the features of the website they currently have. By doing this it can attract more markets and it will help them attract tourists that will come to Auckland.   Threats The main threat to the Hotel SO Christchurch is the competitors. The competitors like The Langham, Auckland and The Westin Auckland try various tactics to make it difficult for Hotel SO Christchurch to enter the Auckland markets. The threat to the company includes the laws in the country they want to operate in. There are some laws in Auckland City that differs from other parts of New Zealand this will force Hotel SO Christchurch to change some of their strategies. Another threat to the company is the tariffs and taxes that the company has in the Auckland market, each countries has its own rate of taxes and tariff that creates additional expenses for the company. Lastly a threat to the company is the culture of some clients in the Auckland market. Some people may not be used to the new culture that will be brought by Hotel SO Christchurch and its expansion into newer markets.  Market Entry Strategy Entry market strategies depend on the situation in the internal and external environment.  The entry market strategies adjust on the kind of situation in the environment. In the company’s goal of entry into the new market it needs to make use of selection criteria for control, commitment and resources. The selection criteria include: The suppliers of the resources should be reputable; the place of selling should be in an acceptable and marketable location; the price of any competitors can be countered by the company’s prices; the personnel available should have proper training; the perspective personnel should have an idea about the company and the things they do.  When the company already has selection criteria it then needs to do research before it can enter the market. The research can help the company gather information it needs. The information needed includes the buying behavior of the clients, the economic situation in the industry, the laws on entry of a foreign business, how Hotel SO Christchurch’s services would succeed and the rules of competition in that market.  This information will be useful in assisting the company in its entry in the new market.  The entry strategy for Hotel SO Christchurch will be focusing on making sure that through the internet advertisements, fliers, banners and TV commercials the people will know of the newly built hotel. The internet advertisements, fliers, banners and TV commercials will be used to inform the residents and non residents of Auckland city that Hotel SO Christchurch has opened a new branch In Auckland.  The internet advertisements, fliers, banners and TV commercials will contain information about the services offered by the hotel. Conclusion Hotel SO Christchurch prides itself on its innovativeness and prestige. It is on the verge of reaching newer markets and eventually reaches global market standards. The hotel’s philosophy is focused on the notion that unique designs, groundbreaking technology and effective/efficient service should be available to everyone at a great price.  The entry into the Auckland market will be a success if the company will make us of the strategies it has in its original market.   Hotel SO Christchurch should make sure that it will use the strategies it had when it attained its competitive position in the original market.  The competitive position in the original market can be used as a basis on how Hotel SO Christchurch will grow and develop in the Auckland market.   References Aharoni, Y. & Nachum, L. (Eds.). (2000). Globalization of services: Some implications for theory and practice. London: Routledge.   Faulkner, B., Laws, E. & Moscardo, G. (1998). Embracing and Managing change in tourism: International case studies. London: Routledge.   Hall M. & Tucker, H. (Eds.) (2004). Tourism and post Colonialism: contested discourses, identities and representations. New York: Routledge.   Hall, D. & Richards, G. (Eds.). (2000). Tourism and sustainable community development. London: Routledge.   Jafari, J. (Eds.). (2000). Encyclopedia of tourism. London: Routledge.   Mowforth, M. & Munt, I. (2003). Tourism & sustainability: development and tourism in the third world. New York: Routledge.   Paley, N. (2006). The Manager’s guide to competitive marketing strategies. London: Thorogood.   Reynolds, T.J. & Olson, J.C. (Eds.). (2001). Understanding consumer decision making: The means-end approach to marketing and advertising strategy. Mahwah, NJ: Lawrence Erlbaum Associates.   Sheller, M. & Urry, J. (Eds.). (2004). Tourism mobilities:    Places to play, Places in play. London: Routledge.   Sinclair, M.T. & Stabler, M. (1997). The economics of tourism. London: Routledge.     Credit:ivythesis.typepad.com

Strategic Management of Hotel SO Christchurch

Introduction The service hospitality sector is mostly fragmented in many small units where location and the spatial distribution of acco...