Syuen Corporation is company that started off as a little building company and so invested in hotel line concern and construct Syuen Hotel. Syuen Hotel operates in service industry which gives client service satisfaction in the hotel. This organisation has been established for the past 19 old ages. Mr. Yan, the proprietor of the hotel usage to be a seamster and most of his mark market was large shootings. Most of the clients of Mr. Yan were the politicians ; concern adult male and people link to royalty blood. As his concern grew he started off a little building concern with the contact and influence of his web with the politicians and concern people. Then he started to make lodging undertaking and development in a little graduated table and so developed to large building development Company. Syuen Hotel was billed by his ain building company and that ‘s where he started his hotel line concern.
As Mr. Yan ‘s concern grew, he started to put in other states by purchasing lands and edifice hotels. Mr. Yan opened the 2nd hotel in Laos and started to develop the state to a better and more civilised state. As times passed by Mr. Yan besides invested in lumber concern and tea plantations. Mr.Yan left the direction to Miss Maggie Ong to pull off Syuen Hotel. Miss Maggie is the manager of this hotel and she used all her expertness, web and accomplishments to convey up the criterion of the hotel. Now Syuen Hotel is besides known as the best metropolis hotel in Ipoh.
Laos is a single-party socialist democracy. The capital metropolis is Vientiane. Other big metropoliss include LuangHYPERLINK “ hypertext transfer protocol: //en.wikipedia.org/wiki/Luang_Prabang ” HYPERLINK “ hypertext transfer protocol: //en.wikipedia.org/wiki/Luang_Prabang ” Prabang, Savannakhet, and Pakse. The official linguistic communication is Lao. Laos is a multi-ethnic state with the politically and culturally dominant Lao people doing up about 60 per centum of the population, largely in the Lowlandss. Assorted Mon-Khmer groups, the Hmong, and other autochthonal hill folks, accounting for 40 per centum of the population, live in the foothills and mountains. Laos ‘ “ scheme for development is based on bring forthing electricity from its rivers and selling the power to its neighbors ” , viz. Thailand, China, and Vietnam. Laos is practically a low cost state as is non that civilized and developed comparison to other states in this epoch. Their state development is manner far behind so compare to other states. Laos is the lone landlocked state in Southeast Asia, and its thickly forested landscape consists largely of rugged mountains. The highest of which is PhouHYPERLINK “ hypertext transfer protocol: //en.wikipedia.org/wiki/Phou_Bia ” HYPERLINK “ hypertext transfer protocol: //en.wikipedia.org/wiki/Phou_Bia ” Bia at 2,818 metres ( 9,245A foot ) , with some fields and tableland. Local tradition holds that there are three seasons ( rainy, cold and hot ) as the latter two months of the climatologically defined dry season are perceptibly hotter than the earlier four months. Laos has a really good quality dirt that really helps on agribusiness activities. Subsistence agribusiness still accounts for half of the GDP and provides 80 % of employment. Merely 4.01 % of the state is cultivable land, and a mere 0.34 % used as lasting harvest land. The lowest per centum in the Greater Mekong Sub part and rice dominates agribusiness, with approximately 80 % of the cultivable land country used for turning rice. Subsistence agribusiness is self-sufficiency agriculture in which the husbandmans focus on turning adequate nutrient to feed themselves and their households. The typical subsistence farm has a scope of harvests and animate beings needed by the household to feed and dress themselves during the twelvemonth. The labour cost at Laos is really inexpensive as most of the people do n’t mind making any difficult occupation to gain money and survive at that place.
After detecting all the pros and cons of Laos, Mr.Yan decided to put at Laos and use his hotel line concern and use the advantages in Laos. Mr Yan practically used all the expertness and recourses that he have from Malaysia and import to Laos to develop the concern in Laos. He focused on chiefly on hotel line concern and so he invested besides invested on tea, herbs, bird nest and wood trade furniture. Syuen Corporation established another corporation name called Dansavanh hotel group stand foring Syuen Corporation in Malaysia. In 1997 the Malayan Syuen Corporation started to develop Laos ‘s largest resort on more than 18000 hectar of national park land on island in the reservoir behind the Nam Ngum dam.One of the company ‘s first act is to put up a proverb factory to treat the lumber logged from the development country ( Dhirendra K. , 2001 ) . Then they build the first hotel called the Nam Ngum Resort and so followed by the Vientiane Hotel. Syuen Corporation signed master understanding with the Laos ‘s authorities on 6 January 2006 and unfastened Nam Ngum Resort which is the first eco touristry resort. These hotels improved the touristry of Laos as it attracted people from other states which finally increased the currency exchange. Besides that, Syuen Corporation opened tea fabricating company and lumber fabrication company over the old ages. The thought is to fabricate good quality tea and wood trade furniture with low labour cost and export to states like Malaysia, Thailand, Cambodia and Vietnam with good monetary value. This helped the company to gain good net income as they export choice stuff with a better monetary value so other rivals.
It may sound general, but it is undeniable as this is one of the chief grounds for company to put to another state. The Syuen Corporation proprietor senses the chances presented in the state, therefore moved early to come in the market. Back in 1997, the company already started to develop the largest resort in Laos ( Dhirendra K. , 2001 ) . Fast forward to today, the return are stupefying, the corporation now own a resort with golf nine and casino, a 4-star hotel and two more hotels in building ( Dansavanh Hotel, n.d. ) . The rise in figure of tourer in Laos in recent old ages has boosted the touristry industry in the state, particularly hospitality industry.
The hotel line concern in Laos benefited greatly from the growing of touristry as the hotels are aiming upscale travelers, which are 12 % from 1000000s of traveler to Laos. Furthermore, the hotel besides offer touristry bundle at their hotel as add-on to their growth gross and capitalise on the touristry tendency in Laos, where the authorities announced 2012 to be Visit Laos Year. Apart from that, the corporation hotel in Malaysia besides provide touristry bundle that finish are traveling to Laos which include adjustment in their ain hotel. The move to put in another state gained the company diverseness in their concern and besides growing in term of figure market served.
Low labour cost
Laos remain as one of the state that the labour cost are comparatively low. Syuen Corporation ventured into the state and enjoys low cost in term of rewards, and allows them to hold higher net income border. The low cost status non merely benefited the hotel concern line, but besides the Corporation ‘s tea plantation and wood trade furniture concern. despite the low cost of labour in the state, Syuen Corporation still face small competition as the menace of new entryway are really low, as Laos ranked 163 overall in “ Ease of Doing Business ” rank out of 185 economic systems ( The World Bank, 2012 ) . The company addition benefit of the first mover advantage as they are one of the most early company to put up sawmill and furniture fabrication in the state. They besides remain as few of the company from Malaysia to bask the low cost advantages.
Synergy from diverse concern
The low labour cost besides encouraged the company to venture into different industries, other than their chief hotel line concern, as mentioned in the debut portion of this assignment. Most of their concern in other industries synergized good with their chief concern. For an blink of an eye, the Corporation engagements in tea plantation and wood trade furniture industry in the state besides contribute to their hotel concerns. High quality tea are produced to be used in the hotel and besides export, this cut down the cost of acquiring tea therefore increases the net income border of the Corporation. Similarly, the most of the furniture in the hotel are wood trade furniture of their ain. This in bend saves the cost of puting up hotels in Laos, and the tea and furniture gain free exposure and advertisement to tourist. Furthermore, the tea and furniture are besides exported to Malaysia, and the Corporation hotel can acquire in a low monetary value compared to the market monetary value. The synergism created is good to their concerns.
Lao Government Forest Policy
Harmonizing to J & A ; C Expat Service, if want to get down a concern in Laos can be really ambitious because Laos is considered one of the most hard states in the universe in get downing a concern ( J & A ; C, 2012 ) . Therefore, Syuen Corporation is confronting few defects when come ining Laos to spread out their concern. First and first, the geographical location of Laos is covered by many mountains, fields and tableland. There are over 70 % of Laos consists of rain forests ( Globalaware.org ) . Therefore, deforestation is the major impact on Laos which besides indirectly affect Syuen Corporation concern at Laos particularly the lumber and sawmill concern. Syuen Corporation set up sawmills to treat the lumber logged from the development country ( World Rainforest Movement and Forest Monitor 1998, 53 ) . The environmental jobs that encountered by Laos particularly deforestation is acquiring more serious as spread outing commercial development of the forest and programs for extra hydroelectric installations. Therefore, in order to continue valuable hardwoods for commercial extraction and to protect the forest environment, Lao authorities decided to put quota logging. Besides, the determination of puting the sum of quotas is complex and no transparence. Initially, the state will subject a figure to the Ministry of Agriculture and Forestry ( MAF ) . The figures will be go throughing through many ministries and the determination is made without any audience with functionaries from the Division of Inventory and Planning in the Department of Forestry ( Vajpeyi, 2001 ; Southavilay and Castren 1999 ) . Then, MAF will portion the quota between the states and most of the states will acquire quota far below the lumber processing capacity in that state ( Vajpeyi, 2001 ) . Consequently, Syuen Corporation ‘s sawmills concern will be affected the most due to the quota logging set by the Lao authorities.
Laos is an developing state, the hapless entree, short of substructure and many undeveloped finish are curtailing the growing of the hotel and touristry industry in the metropolis. There are merely 5 air hoses serve the Wattay International Airport, from regional metropoliss such as Bangkok, Hanoi, Kuala Lumpur and Phnom Penh. ( Horwathhtl.com, 2011 ) Therefore, to entree to the metropolis of Laos is really limited. Therefore, the incommodiousness of entree ability in Laos will impact the cordial reception concern of Syuen Corporation. Furthermore, Laos is confronting the obstructions of set uping Internet connectivity due to the deficiency of accomplishments and resources. The Internet connectivity in Laos is a slow procedure which indicated by the low degrees of Personal computer incursion and hapless telecommunications web ( Thongvilu and Houphanh, 1996 ) . Although major towns are connected in Laos, puting a call between towns is frequently hard. Such incommodiousness and deficiency of substructure might impact the public presentation of Syuen Corporation concern in Laos particularly hotel concern of Syuen. As the Internet connectivity service is low, the managerial section of Syuen Corporation at Laos will be affected and diminish the efficiency of the employees. In add-on, clients might hold bad experience with the WiFi service provided by the Syuen Corporation hotels in Laos.
Education degree and wellness service low
The instruction degree at Laos is non every bit high as other developed states, the standard quality of the post-secondary school non high so they lack of professionalism and skill labour. This will impact employees ‘ public presentation of Syuen Corporation. Besides, the medical services at Laos really limited and low criterion, doing the happening of morbidity is high and this will led to the reluctant of tourers come to Lao. Harmonizing to Prof. Dr. Somboune Phomtavong, Prof. Dr. Kongsap Akkhavong and Dr. Somchanh Xaisida ( 2005 ) the deficiency of clean H2O, hapless sanitation, unequal nutrition and limited entree wellness services are worsening factors, which influence morbidity, peculiarly in rural countries. Furthermore, low quality local wise mans, pedagogues and trainers in public wellness direction plans. Furthermore, the geting scientific discipline and engineering accomplishments are restricted due to the low degree of the basic instruction and foreign linguistic communication cognition. Other than that, Lao Government requires that a company may hold up to 10 % of its employees as aliens if those aliens are unskilled, or up to 20 % if they are skilled. In all instances, they must acquire blessing from authorities in their employment. The company must obtain permission from authorities in order to increase the per centum of foreign workers it employs ( Jclao.com, 2012 ) .
Send for preparation and implement preparation plans
One of the defects that operating concern in Laos is the instruction degree of this state is low. Most of the Laos people are non adept and knowing. They are lack of cognition to manage the extremely skill undertakings. So Syuen Corporation can direct the unskilled workers and workers who lack of experience to the Syuen Corporation hotel in Laos ( Vientiane Hotel and Nam Ngum Resort ) in order to larn how to execute all the undertakings. For illustration, larn how to clean the invitee suites, how to pass on decently with invitees, how to cover with the reserve and 1 on 1 concern phone calls. After the Laos workers learnt how to execute the undertakings, they can better their public presentation. Besides that, the company besides can supply some preparation plans for those unskilled Laos workers. One of the illustrations can be English Language preparation plan. The Syuen Corporation can offer English linguistic communication developing plan to do certain that all the workers can understand and talking the English linguistic communication fluently. This plan is of import for the workers because most of the hotel income addition is from the foreign tourers. So it is of import for the workers to understand and talk English linguistic communication fluently due to English linguistic communication is the International Language. After their English accomplishments improved, their public presentation besides can be improved. The workers can improved in ability to react to inquiries or petitions and offer aid in English or ability to take part in 1-on-1 concern phone calls in English. Once the employees ‘ public presentation was improved, the client satisfaction will follow to better. And it will impact the company repute and net incomes. Finally it can keep and beef up the company competitory advantages.
There has a successful instance that an organisation can better its public presentation by implemented the English linguistic communication developing plan. The organisation is Hilton International Incorporate. With a mostly English-speaking client base that demands the highest degree of quality and service, Hilton needed a planetary scheme for constructing the concern English communicating accomplishments of its employees to assist present on its trade name promise. After careful rating, Hilton implemented the GlobalEnglish Corporate Learning Servicea„? ( presently known as GlobalEnglish Edgea„? ) on a world-wide footing and has realized important productiveness and public presentation betterments ( GlobalEnglish, 2011 ) . Furthermore, there besides a successful instance that the company sends the employee for preparation can better the employee public presentation. SCA Company let the worker to go to a 2 hebdomad preparation plan at one of SCA ‘s European offices in Gothenburg, Sweden. The plan was filled up with meetings and installation Tourss with squads from merchandise classs, R & A ; D, sourcing and provider development. The employee said that she was able to rapidly larn about SCA ‘s concerns, merchandises and markets around the universe, and aline itself with the planetary platforms and patterns within a short clip ( Vivian B. , 2009 ) .
Joint venture with Airline Company
By holding a hotel in an developing state with short of resources and substructure, it makes tourers holding troubles in turn uping the hotel itself, every bit mentioned before, there are merely five air hoses that serve the Wattay Airport, happening the manner to the hotel from the airdrome itself can be slippery and inconvenient to most of the foreign tourers, non to state researching the metropolis without any aid and counsel from a trusted beginning can be worrying. By holding above job, Syuen is suggested to see an agreement of joint venture with one of the air hoses in order to fulfill client more by supplying a bundle of services to them, starts from the air hoses, allow clients to wing to Laos, and picking up invitees from the airdromes and into the hotel and return, it can be a joint ventures of the hotel itself or develop a whole new set or bundle of services and offer it to the tourers, supplying all transit and circuit guiding services which they able to bask one time they disembark from their planes and arrive Laos. With the aid from the air hoses spouse, this action able to foster satisfy more visitants, guaranting they have a safer journey within the period they spent in Laos, allowing them to hold a more convenient and comfy journey. On the other manus, by holding this set of services, it able to convert and pull more possible clients, by introduce the services to them, as sing an undeveloped state is ever perceived as insecure and hazardous by most of the aliens, a safe and comfy journey is ever the chief concern in traveling.
The scenario of a joint venture understanding between an air hose and a hotel can be seen in the Shanghai International Airport Hotel, as it is a joint venture endeavor by Chinese Eastern Air, which they provides a free bird coach to and from Shanghai Pudong International Airport and the Shanghai International Airport hotel mentioned. While in the hotel anteroom and all the guestrooms, the flight activity will be show through a proctor for every invitee to maintain path of their flight information. And the Shanghai International Airport hotel besides provides air ticket engagement services and multiple location flight check-in services in the anteroom ( Sinohotel, n.d. ) .
However, it is still suggested that Syuen Hotel should offer more services in footings of transit, guiding, compared to Shanghai International Airport Hotel, and put clients safety at the first topographic point as the hotel is located in Laos which normally perceived as undeveloped and insecure by the foreigners, to guarantee all the invitees have a pleasant journey, and procuring Syuen ‘s competitory advantages. While the labour cost in Laos is comparatively low as mentioned earlier, Syuen is expected to be able to carry on this program with easiness while basking low cost advantage.
Enhance Relationship with Laos Government
From antecedently discussed, Syuen Corporation ‘s sawmills concern had been affected due to the quota logging set by the Laos Government. In order to cover with this menace, it is important for Syuen Corporation ‘s to keep a good or positive relationship with the Laos Government senior functionaries such as forces from “ Kong kouat ka Sapha-nyakone Pa Mai ” every bit known as Forest Inspection Department ( FID ) in order to hold more quotas on logging the forests and recommend the senior functionaries to strike the illegal logging activities inside the state. However, it is hard for Syuen Corporation ‘s to make so because Laos Government senior functionaries do non ever swear on the logging companies due to the hazard of losing of import administrative places for unsuitably to O.K.ing logging operations as has happened to some senior authorities functionaries in the past. Therefore, Syuen Corporation ‘s can near senior functionaries together with the other sure authorities functionaries, 1s who can move as surety or give confidence that nil improper will happen in order to derive confident and trust from the Laos Government senior functionaries. Furthermore, Syuen Corporation ‘s can offer profit sharing based on the frequenter client relation to the Laos Government may in term of pecuniary or others to demo the earnestnesss and truenesss of the company toward the Laos Government.
Search for logging quota option
Besides of normal logging quota, Syuen Corporation ‘s can seek for particular logging quotas that offer by the Laos Government as option. One of the illustrations of the particular logging quotas can be use by the Syuen Corporation ‘s is deadwood logging quotas ( quota mai leep lunar excursion module ) which allow Syuen Corporation ‘s to roll up trees which are already dead such as standing dead tree ( Deadwood ) from wherever country they can be found in wood without limitation ( Baird, 2010 ) . This will let Syuen Corporation ‘s have more forests and stuff to back up the company sawmill ‘s concern besides of normal logging quota. In twelvemonth 2007, a logging quota of “ deadwood ” was issued by the Champasak Province in southwesterly Laos to Development of Agriculture and Forestry Industries Company ( DAFI ) for the rosewood and the quota did non stipulate the measure to be cut and the logging site ( Baird, 2010 ) .
A few old ages back, Syuen Corporation chief concern is in Malaysia hotel industry, as they continue to turn, their venture into Laos have gained them market portion in 2 different states. Their first mover advantages in Laos are still steadfast, as the state remain a difficult topographic point to travel for new venture. Furthermore, their investing in Laos including the tea plantation and sawmill concern synergized good with their chief concern. However there remain some defects in Laos, such as the authorities wood policy which limit the growing of sawmill concern of Syuen Corporation, and besides low substructure degree, instruction degree and medical service.
Therefore, we have come out with 4 recommendations to counter the defect and better the company competitory advantages. We recommended workers to be Send for preparation and implement preparation plans, joint venture with Airline Company, enhance relationship with Laos ‘s authorities, and in conclusion hunt for logging quota alternate. As the option are proven to be practical, as they are either applied by other company or support by diary articles, we hope that the recommendation will be implemented and assist the company.