Shangri-La Case Study Solution

1a) The gap identified with regards to the employee management is communication gap, which means that there is a gap between service delivery (i.e. how Shangri-La treats its internal customers), and Shangri-La’s external communications to potential internal customers in the recruitment process. For this question, customers refer to internal customers (employees). There is a clear ineffective management of customer expectations, where the communications by Shangri-La is not only missing the mark of consumer’s expectations in terms of pay level, but also, by not educating customers about the exact requirements of the job description and specifications, there was a mismatch of skills when it came down to employee selection.

External communication to the masses brands Shangri-La to be a premium brand. There are two factors that might wrongly frame potential customers, namely the very fact that

With Shangri-La being the first Asian hotel to enter Istanbul, consumers may have the lack of an accurate reference price, as its competitors are mainly local or western, and therefore results in a less accurate benchmark for them to compare prices. Also, affluent consumers are more likely to be sensitive to nonmonetary prices, and are more concerned about the ease of access and service they are getting in return, which leads them to use the price of the service as a benchmark to the quality of service they will be getting from the experience. Therefore, by using demand-based pricing, Shangri-La will then set prices in accordance to customer perceptions of value, where prices are based on what customers will pay for the services provided. In addition, with demand-based pricing, Shangri-La Bosphorus can adjust prices in accordance to the low, shoulder and high season, as consumers would be willing to pay more during peak periods, and may not be willing to pay an exorbitant price premium in low