Dusit International
Assignment III
ICTM 401 Strategic Management for Travel Industry
Amica Rangnoktai
ID- 5080579
Sumandeep Thakral
ID- 5180657
Naval Thakral
ID- 5180658
Vethida Sithichaiudom
ID- 5180832
Shivanshai Sethichaiyen ID- 5280510
Table of Contents
1. Strategic Acquisition and Restructuring
1.2 Mergers and Acquisitions
Mergers
 DusitSindhorn Co., Ltd. with Kempinski Hotels
At first seemed unlikely match,Dusit Sindhorn Co., Ltd., connected to the Dusit Thani Public
Company, Limited and owner of Dusit Hotels and Resorts has taken over German Based
Kempinski Hotels. The Kempinski is in 12 different countries own 18 branches of prime
hotels. After all the fuss of closing down the German headquarters was over and opening new
hotels. They immerged as Dusit-Kempinski. This strategy was implemented as an access to
other markets as hotels from Japan and Hong Kong were proving to be a threat(Institutional
Investor, 1995). This so-called acquisition happened in late 1994. Dusit Thani senior vice
president KhampiSuwanarat said after the merger.
“We plan to have 35 deluxe hotels under Dusit-Kempinski by the end of next year. Also, they
feel that, to make the company viable, they must
have 50 hotels. The target is to accomplish this
within three years.”
However later during the year that A Kempinski spokeswoman said.
“Dusit Thani and the Siam Commercial Bank each owned 50% of the Bangkok-based Siam
Sindhorn company, which owns 83% percent of Kempinski Hotels. Kempinski operates the
Campton Place Hotel in San Francisco as well as hotels in Argentina, Bulgaria, Canada,
China, France, Germany, Hungary, India, Japan, Russia, Switzerland and Turkey. Dusit
Hotels and Resorts operate 13 hotels.”
Dusit Thani has been meaning to sell the Kempinski shares since the Kempinski spokesmen
said that Dusit International is not willing to fund the expansion of Kempinski. This shows
that the acquisition was not as successful as expected.
 Dusit Hotels and Resorts Co., Ltd. and Royal Princess PCL.
Dusit Thani Hotels and Resorts Company Limited
completed the merger with Royal Princess Public
Company Limited. They passed this resolution on 29th
of April in 2008, transferring all their operation licenses
of such subsidiary to this new merger calling it Dusit
Princess. Dusit princess was created with a meeting
between the two company’s shareholders agreeing to merge to enhance their power against
competitors as well as creating a corporate level strategy. This merger was created to assist
each other in recourses management as well as knowledge and guests information sharing to
compete on the corporate level. Royal Princess gains the strong Brand Name of Dusit Thani
as well as the affiliation with their training center like Dusit Thani College and La- Cordon
bluer to enhance their staff abilities. The Dusit Thani reputation will help them draw in
customers. Dusit Thani on the other hand will benefit from more resources and save cost
from opening and reconstructing a brand new hotel as far as diversity is concerned they can
achieve it through this merger. (Merger, 2008)
Acquisition
Dusit Thani Laguna Phuket
For the past 23 years Dusit Thani has been managing one of their most successful Branches
in Phuket. Dusit Thani announced that branch over 2 decades ago that seem to show
promise on its performance after the acquisition. Laguna Resorts & Hotels Public Limited
Company, part of the Banyan Tree Group, previously owned this. Now as Dusit Thani
acquired it and it is now called Dusit Thani Laguna
Phuket.
Dusit Thani emerged supreme as the highest bidder and
was delighted to beat their competitions to achieve this
acquisition. “Dusit Thani Laguna Phuket has been one of
our best managed hotels for over two decades, and has
never dropped its performance, even despite the many challenges over this period.” The
destination was eyed and studies by Dusit International for a while before the decision to
bid on it. They believe in diversity of having a resort as they believe in the charm of
Laguna’s destination and brand. By acquiring the resort Dusit Thani learned more about
the operations of the resort and with their strength in staff management they are able to
deliver service quality and maintain their standards. Dusit Thani also shows appreciation of
their affiliations with Banyan Tree and Laguna Resorts & Hotels by still keeping the brand
name “Laguna”. The brand relationships strengthen as this proves to enhance the growth
curve of their Phuket customers as well as their performance. Dusit Thani has faith in this
resort in its potential to yield profit for their company in the future. This acquisition will
prove a greater strength in Dusit Thani’s variety to guests and enhancement of company’s
assets, shifting them to a greater position in the market at they are growing rapidly
internationally. Another purpose of this acquisition is also to enhance their presence in
Thailand. This is one of the strategies Dusit Thani use as a means of expansion in Thailand;
by searching for potential deals in acquiring key strategic destinations in Thailand as
assistance to their brand growth. The latest report STR Global on Strong Recovery in
Southeast Asia identified Phuket as one of the most prosperous cities in South East Asia
with a RevPAR growth of up to 36.7% for 2010 and 2009; this ranked them as the second
highest in South East Asia. The Latest Dusit Thani’s Laguna Phuket’s RevPAR amounted
up to 16% growth compared to the competition’s average of just around 9%.
Dusit Thani Laguna Phuket is also well known in an award winning environmental project
in Bang Tao Bay, Phuket. Dusit Thani Laguna Phuket has also built its reputation to be one
of the leading specialists in the MICE events providing excellent conventional as well as
conference facilities. The Latitude venue in Dusit Thani Laguna that can accommodate
1,000 guests in a theatre style setting with 226 rooms and suites, 6 Pool Villas, and 22
Laguna Pool Villas (Dusit Successfully Acquire Laguna Phuket, n.d.).
Hotel Nikko Manila, Philippines
Dusit International purchased shares in the holding company of Philippine Hoteliers Inc.
(PHI) from Japan Airlines Development Company Limited and JAL Trading Inc. This led
them to acquire Hotel Nikko Manila in 1995. They were renamed as Dusit Thani Nikko,
Manila. This acquisition was on the bases of expansion by acquisition. The main purpose
was to move into Philippines initially. This was also to introduce the Dusit Thani Thai
hospitality and standard of service to impose them in the Philippines Market. The reason
was that it would cost lesser than creating a new business from scratch as well as by
acquiring a hotel locally they can still gain control of the operations in the organization.
Several years later in 2008 they underwent a major renovation to enhance their existence.
They renamed as Dusit Thani, Manila in April 2008. They now are one of the most
technologically advanced of Dusit Thani hotel chains.
1.3 Restructuring
Joint ventures
Bird group
Bird Hospitality Services or BHS is a subsidiary of the Bird Group has launched its first
project with Dusit Hotels and Resort one of Thailand’s most famous hotel companies.
Under such joint venture Bird Hospitality Services are on
their way to develop six, 4 to 5 star hotels in India. This
provides Dusit Thani to franchise their branches across one
of the up and coming BRIC Countries like India. The first’s
three hotels were said to be launching within 2010 but due
to some financial difficulties due to the 2008 economical
crisis it hasn’t fall in to place. The targeted sites are Delhi, Goa and Rishikesh in 2010 and
Pune, Amritsar and Jaipur in 2013 respectively. The Bird Hospitality Services has invested
up to 200 million U.S. Dollars in this project(Deimezi, 2007). The Bird Group has been a
strong entity in the travel industry for more than forty years. Due to the stupendous demand
and promising growth in the tourism industry the Bird Group had deemed it logical to join
the Tourism and Hospitality industry (Deimezi, 2007). India is experiencing an exceptional
growth in inbound travellers rising up to 4.43 Million people in 2006 alone. The Bird
Group is thrilled to work with one of the most well-known brand of Thai hotels as a joint
venture to enhance their business. Claiming that the number of tourists will grow by double
the size within 2020.
Le Cordon Bleu Dusit Culinary School
Le Cordon Bleu Dusit Culinary School was established
in 2007 as a joint venture between Le Cordon Bleu
International and Dusit International one of the leading
Thai Hotel Brands. This famous culinary school is
located in Silom district. This is located adjacent to the
Dusit Thani Hotel for convenience of management as well as training. It is also easily
accessible by MRT subway as well as the BTS sky train, which are only a few blocks
away. Both these brands have high reputation as they joint together to assist each other in
their prospers. The School is a modern and made up of state of the art training facilities and
programs as well as the brand standard Chefs to train the trainees in both Le Cordon Bleu
style menus as well as Thai Cuisines which are unique to the brand with Dusit. All classes
are thought in English. Le Cordon Bleu Dusit accepts students both locally as well as
internationally. This special joint culinary training course is established to enhance their
students as well as potential staffs to be a master of food both locally and international with
high standard. This is also a diversification as they move to provision of education rather
than Hotel operation.
2. Re –Branding
Recently in 2007 Dusit International had started processing Re-Branding of their Hotels.
Creating new trademarks that would show more depth in their provision of services and
thus redefining their brand standard to become more divers in order to compete with their
competitors at both Business as well as corporate level. They also try to ensure the standard
of satisfaction level after the introduction of Le Cordon Bleu Dusit Culinary School and the
Dusit Thani College. The aim is to add value to their brand that spells “the Truly
Contemporary Thai” with excellence in service that will exceed customers’ expectations
will be advertise and their public relations through the year 2008. (An International
Marketing Strategy analysis, n.d.) Dusit Thani’s sub brands have their own trademark as of
this moment to enhance the variety as well as the differentiation and uniqueness of each of
their brands. They have registered 5 main trademarks, which are Dusit Thani, Dusit
Princess, D2, Dusit Devarana and Dusit Residence. Each trademark has different
shareholders.
3. Down Scoping
Due to changes like expansion, acquisitions and mergers Dusit International needed to
down scope through restructurings. By expanding their sales office to monitor company
maintenance in Shang-hai, China and Dubai, UAE. They also had to implement changes in
their regional sales offices in Singapore and Hong Kong by hiring sales team from Dusit
International company instead of having their own local sales team to maintain standards of
Dusit Thani due to lack of performance. They had to go as far as down scoping their
national sales office as well. This was due to the decrease in standards to achieve
satisfactory objectives. For this reason Staffs who had lesser experience are switched to be
supervised within the hotels in Dusit group and those who hold higher reputation to the
sales offices (Product and Service Supplies, 2011).
4. Other restructuring
Dusit Princess Branches terminated.
Dusit Thani Koh Chang and Dusit princess Dubai were terminated due to slow performance
and failure to draw in customers plus the high expenses in accordance to the Dubai soil and
its cost of living with leasing the land. Dusit International now has only few Dusit Princess in
existence, namely areDusit princess Srinakarin Bangkok and Dusit princess Korat. Royal
princess LarnLuang, Royal princess Chiangmai, Grand China princess China town and
Belaire princess sukhumvit(under Dusit International management team).
Expansion of Global Sales Offices
As one of the leading Asian hospitality groups Dusit International has issued an order of
consolidation of the regional sales offices in Germany and United Kingdom to form a large
European based sales headquarters and to further boost their sales operations in the key
emerging markets in Asia Pacific.
Due to such changes that are modified to improve sales management and performance
specializations were needed. For this Dusit International as included two new positions
within the Global Sales office in Bangkok. One of them include the newly formed Director of
sales through Russia and Commonwealth of Independent States – CIS they also made an
unusual move in contradiction of their philosophy of hiring internally from Dusit. Instead
they appointed a Korean senior sales manager to provide treatment for such important
markets. To add to their restructuring movements Dusit Thani has appointed Hotel
Representation Australia or HRA to operate their regional sales activities in Australia.
Australia with New Zealand and Oceana together has shown promising growth with 10%
year on year increase in arrivals to Thailand in the first half of the year 2012. They also
showed 23% growth in arrivals to Maldives over the same period. By the forth quarter of
2012 Dusit International opened a regional sales office in Tokyo, Japan, as Japanese are one
of the most important business travellers to Thailand as well as a well-known business
destination itself and is expected to boom with recovery after the Nuclear incident. They
currently generate 11% of revenue for Dusit Group worldwide. Dusit International has also
made their move to operate regional sales office in China by appointing their own Director of
Sales overseas to northern China. The base is located in Shanghai. In addition the Hong Kong
Sales Branch will employ another sales manager to coordinate deeper coverage for the
southern part of china as well as Taiwan. Dusit Thani decided to hire local sales directors due
to their own country familiarity and experience to extinguish language barriers and ease their
operations abroad by hiring minds that are knowledgeable in those regions.
New Sub Branches
Dusit International has announced their merger with Birdgroup as an initiation of their
project to fast track expansion into India in 2013. Through this they will make their moves
into New Delhi, Jaipur, Rishikesh and Goa by the end of this respective year. Through this
expansion they plan to launch their first ever Dusit Devarana. This is said to be a
differentiation, as they will blend Indian architecture with Thai hospitality services creating
the most luxurious brand of Dusit International. This project will also land the first D2
oversees. Dusit Devarana New Delhi was first scheduled to open in May 2010 however due
to political problems as well as the economical shockwave in 2008 it was postponed. It will
be the first Dusit Luxury Hotel in India. As far as location is concern it will be located in
the center of New Delhi. This will be the fifth sub brand in the Dusit International Empire
after the rebranding of their branches. Dusit
Devarana, which means, “Garden in Heaven” in
Sanskrit. This will be a multi-domestic strategy as
they use the Indian architecture as a link to the local
cultural taste of atmosphere for comfort to maintain
the image of staying in India. Through this to
maintain their global standard they will provide Thai style Hospitality of their brand. “The
brand culture will be manifested through its people; a devoted group of professionals
inspired to understand the needs of each guest, delivering highly personalized experiences
and create the elusive DusitDevarana to be the world of one between Indian and Thai”. The
opening of the first Dusit D2 outside Thailand will follow this. DusitD2 New Delhi,
DusitDevarana Jaipur, Dusit DevaranaRishikesh, and the Goa project (Dynamic Expansion
into India, n.d.).
2. Global Strategy
Global strategy as defined in business terms is an organization's strategic guide to
globalization.'Global Strategy' basically covers three areas: global, multinational and
international strategies. Essentially, these three areas refer to those strategies designed to
enable an organization to achieve its objective of international expansion (Lynch, 2012).
Implications of the three definitions within global strategy:
1. International strategy: the organization’s objectives relate primarily to the home
market. However, we have some objectives with regard to overseas activity and therefore
need an international strategy. Importantly, the competitive advantage - important in
strategy development - is developed mainly for the home market.
2. Multinational strategy: the organization is involved in a number of markets beyond its
home country. But it needs distinctive strategies for each of these markets because
customer demand and, perhaps competition, are different in each country. Importantly,
competitive advantage is determined separately for each country.
3. Global strategy: the organization treats the world as largely one market and one source
of supply with little local variation. Importantly, competitive advantage is developed
largely on a global basis.
During the last half of the twentieth century, many barriers to international trade fell and a
wave of firms began pursuing global strategies to gain a competitive advantage. However,
some industries benefit more from globalization than do others, and some nations have a
comparative advantage over other nations in certain industries. To create a successful global
strategy, managers first must understand the nature of global industries and the dynamics of
global competition.
Sources of Competitive Advantage from a Global Strategy
A well-designed global strategy can help a firm to gain a competitive advantage. This
advantage can arise from the flowing sources:
 Efficiency
-
Economies of scale from access to more customers and markets
-
Exploit another country’s resources in terms of labor, raw materials
-
Extend the product life cycle- older products can be sold in lesser developed
countries
-
Operational flexibility that is the shift in production such as costs, exchange rates,
changes over time.
 Strategic
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First mover advantage and only provider of a product to a market
-
Cross subsidization between countries
-
Transfer price
 Risk
-
Diversify macroeconomics risks (business cycles not perfectly correlated among
countries)
-
Diversify operational risks (labor problems, earthquakes, wars)
 Learning
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Broaden learning opportunities due to diversity of operating environments
 Reputation
-
Crossover customers between markets in terms of reputation and brand
identification.
However, this is a framework comprising of three categories of strategic objectives and three
sources of advantage that can be used to achieve them.
2.1 Domestic Market
Domestic marketing basically means selling within one's own country. Typically, this is
the first area where companies seek to market their goods or services. Because the market,
customer needs, tastes, geography, demographics, and distribution methods are likely
familiar, it's often the easiest place for companies to launch a product. The four P's of
marketing - product, price, place and promotion - are often easier for companies to determine
within the domestic market. In addition, it is the supply and demand for a good, service, or
security in a particular country. Many companies cater to the domestic market because they
know applicable laws and regulations the best. There also may be a unique demand for a
certain product in the domestic market. For example, an American flag supplier will likely
sell more flags in the United States than in Canada. The size of the domestic market is
calculated in the gross domestic product (Grunert, 2013).
Dusit Thani uses domestic strategy only for its hotels in Thailand. By using the
domestic strategy, it give the company a more specific and accurate details on how to reach
their target customers most effectively at a specific region.
 Dusit Thani College
Dusit Thani College was established in June 1993. Students from this college will
receive extensive theoretical and practical training from Asia’s newest and most advanced
educational institute. In addition, Dusit Thani College sustainably develops and offers high
quality education with highly competent graduates who acquire first-rate professional skills,
creativity and innovative outlook. Dusit Thani College provides education, covering
Bachelor’s Degree Programmes, which consisted of five major programmes in both Thai and
International Programme Moreover, the college is also set up to educate for bachelor’s degree
and master’s degree in culinary arts, tourism, hotel management, and other modules related to
hotel business such as MICE and Event business. The purpose of the college is to produce
human resources who are good at hotel business so as to work for Dusit and support the
industry’s growth in Thailand. Students from Dusit Thani College will not only have skills,
but also have a truly understanding about Dusit Company. As they believe that human talents
are the fundamental elements of hospitality services, and it is the college priority to develop
their talents in order to help the company strive for achieving excellence (Dusit International,
2013). From these courses provided to the students which will enable them to have a strong
foundation and knowledge about Dusit culture and organizational structure and to keep
themselves and the company competitive.
 Strategies to stimulate travel business in Thailand
Thailand used to be one of the world’s most famous holiday destinations, but recently
tourists have been hesitant to enter the kingdom of Thailand resulting from the devastation of
yellow and red shirt riots which is political unrest and due to flood crisis which have led to
tremendous losses to the travel and tourism industry and the economy as a whole. As a result,
travellers lost confidence due to safety and security reason (Travel and Tourism, 2012).
Therefore, in order to regain back the confidence and to draw tourist back in Thailand
Tourism and Hospitality Industry, Dusit Thani has launched a marketing campaign under the
name of “Dusit Together for Thailand”. In other words, as for the company’s rebuilding
strategy to stimulate Thailand’s tourism, Dusit International has launched ‘Dusit Together for
Thailand’ as part of its sales and marketing strategy to restore confidence and bring back the
dynamic market environment for tourism. Additionally, with support and encouragement
from all around the world, Dusit International, announces Dusit Together for Thailand. All
Dusit International’s hotels and resorts from around
the country are joining together to help restore
confidence in Thailand’s hotel industry. Under
‘Dusit Together for Thailand’, Dusit Sales teams
visit over 300 Bangkok-based companies in order to
show appreciation to their clients and business
partners for the continued support for Dusit and all
Thais. The mission of ‘Dusit Together for Thailand
is to show that if we work together, we can restore confidence and bring back the dynamic
market environment for tourism in Thailand (Mok, 2010). Also, the activity will be extended
to Hong Kong and Singapore in the coming few months. Dusit is continuing its active Public
Relations programmes with domestic and international media throughout the year. Dusit
International which is one of Asia’s leading hotel
groups introduces"Dusit Take 2" offering special
privileges for guests to enhance their summer
experience with extra value at all Dusit's hotels and
resorts (Dusit International, n.d.). Furthermore,
Dusit International continues its rebuilding strategy
under ‘Dusit Together for Thailand’ by launching
Dusit’s Appreciation Gift Voucher for all dining
guests With every THB 1,000 spent at any Dusit’s restaurants throughout the month of June
and July, and guests will receive a THB 500 accomodations gift voucher to spend and enjoy
their getaway at any of our participating hotels and resorts across Thailand (Dusit
International, 2013).
The ‘Dusit Together for Thailand’ programme will also help to
encourage our guests to travel in Thailand, and stimulate domestic tourism during summer
months. Dusit also released its first TV advertising for Dusit Thani Bangkok and Dusit Thani
Pattaya on BBC and Star Channels (Kasemsuk, n.d.).
2.2 Global Market
Global marketing is a firm’s ability to offer one’s goods or services worldwide. Most
companies begin marketing their goods or services within their country, and expand to the
global market to capture greater market share and open up new avenues for sales. With
extensive reach, the need for a firm's product or services is established. The global firm
retains the capability, reach, knowledge, staff, skills, insights, and expertise to deliver value
to customers worldwide. The firm understands the requirement to service customers locally
with global standard solutions or products, and localizes that product as required to maintain
an optimal balance of cost, efficiency, customization and localization in a controlcustomization range to best meet local, national and global requirements to position itself
against or with competitors, partners, alliances, substitutes and defend against new global and
local market entrants per country, region or city.The firm will price its products appropriately
worldwide, nationally and locally, and promote, deliver access and information to its
customers in the most cost-effective way. The firm also needs to understand, research,
measure and develop loyalty for its brand and global brand equity (stay on brand) for the long
term (Grunert, 2013).
Global market is concerning on what strategy does Dusit Thani apply to its hotels, both in
Thailand and overseas unlike domestic market.
 Branding
In the increasingly competitive hotel industry, recent trends indicate that brand is fast
becoming the most important ingredient for success. In other words, hotel branding is an
important aspect in business especially in terms of generating revenues. It is a process that
helps a product stand apart from others that have similar physical features. In the world of
competition, different companies of the same product/service try to lure the same prey you
are luring. The only thing that sets you apart is the branding you have done for your business
so that customers remember you the next time they need to book a reservation (Ira, 2010).
Likewise, Dusit Thani International has its own brand as one of the main marketing
strategies.This strategy is being applied to all of Dusit’s branches. The company can use its
brand name for marketing purposes which is the same as selling the reputation. Even though
there are some people who have never experienced staying with Dusit, but the reason they
choose to stay at Dusit is because they have heard about the brand name and, therefore, the
purpose of branding is to help ensure customers will return again and even recommend your
business to others. In short brand has something known as “equity”. Brand equity is when
customers associate that brand with positive and favorable feelings. A brand’s reputation and
goodwill adds value to the company (Shoemaker, 2012). Alike other hotels, Dusit will be
striving to ensure that the experience of staying at the hotel and the interaction with the staff
is of the highest possible standard so that the next time they would most likely choose to stay
at Dusit. Consequently, if customers have a pleasant experience during their stay at Dusit,
this could lead them to spread positive word of mouth about their great experience at Dusit to
others which definitely could bring in new customers to Dusit. Thus, this can create brand
loyalty. Brand loyalty is when a consumer insists on continuously buying one particular
brand of a product. They stick with that brand for a long period of time and will choose it
over any other similar brands even if the unknown brand cost less. As a result, this helps
Dusit to generate revenue for the company and hence profitability. However, Dusit is trying
to sell its Thai hospitality which is quite cultural, therefore, expanding the brand into another
country can be sensitive. In such case, the hotel must be really careful about how to present
the product in order to match with certain cultures as in some places culture can be very
sensitive (Vickers, 2012). Thus it can be extremely difficult in terms of maintaining the same
standard for managing the brand in many other countries.
 Spa
Devarana Spa is owned by Dusit Thani and it excites the senses and makes guests feel
truly special, luxurious pampering and healing treatments are offered in a soothing stress-
relieving environment. The name has a special meaning, “Garden in Heaven”. The
contemporary Thai design and décor invites guests to transcend the everyday world and
provides a relaxing and welcoming atmosphere in which to enjoy premium spa treatments
with traditional Thai service and hospitality. Additionally, Devarana Spa is one of the
products are being known and popular for Dusit Thani loyal customers. Since Thai spa has
been recognized as one of the top five services in the world. However, Devarana Spa is
considered as global market because it has its branches in Manila and Maldives, therefore,
expanding Devarana Spa to the overseas could be an effective tool to present Thainess and at
the same time representing excellence service of Dusit Thani. As a result, Thailand has a
good reputation when it comes to spa service (Dusit Thani, 2010).
 Entry Strategy
For any business, before entering new market the firm needs to analyze the market
carefully in order to know its potential. Likewise, Dusit conduct research and analyze the
market in order to know who will be their target customers which will also involve dividing a
broad target market into subsets of consumers who have common needs and desires as well
as common applications for the relevant goods and services which is called market
segmentation. Once Dusit know about their target customers then the company need to
analyze further in depth to find out about their needs, wants, their lifestyles, expectation,
preferences etc. Therefore, market research is imperative for Dusit to know what type of
products or services would be profitable to introduce in the market. Also with respect to its
existing products in the market, good market research enables a company to know if it has
been able to satisfy customer needs and whether any changes need to be made in terms of
delivery of services to customer, the way staff present themselves in front of customers etc.
This enables a company to formulate a viable marketing plan or measure the success of its
existing plan. In order to minimize risk and seek for more opportunities, these areas such as
HR, financial, culture clash and legal issues should be taken into consideration before
entering the new markets (Day, 2005).
 Alliance
Dusit Thani has become alliance with many of the organizations in a number of countries all
around the world and not only in Thailand. Some of Dusit major alliances are Ringzero
Network Thailand,Bird Group, Le Cordon Bleu, Preferred Hotel Group, Ecole Hoteliere
Lausanne, GHA, AHA and Ruyi Company Limited. Consequently, these major alliances
could help Dusit to differentiate the products and services, strengthen Dusit’s capability,
create competitive advantage and generate trust as all of the mentioned organizations are very
well-known in their work field. For example, Ringzero network is expertise in IT, therefore,
Ringzero create a new fantastic website for Dusit Group. As a result, the new website
renovated by Ringzero can meet the customer’s needs and wants (Ringzero Network, n.d.).
 Loyalty Programs
In the hotel industry, all the major hotel companies have created their own version of
the hotel loyalty program and are constantly striving to present their program as offering the
best value. Throughout the travel and retail industries, consumers have been bombarded with
countless loyalty programs, the aim to which is to retain customers and increase their loyalty
to a specific brand or company (Hotel Marketing.com, 2009). Likewise, Dusit Thani provides
a list of loyalty programs for their customers to offer privilege and exclusive promotions and
services. This strategy is used to show appreciation to customers for choosing to stay at Dusit
as their preferred hotel. It is also used to attract customers to frequently stay with Dusit
Thani. There are various types of loyalty programs which are provided for customers which
are Dusit Gold Card, Dusit Wine & Dine, DTCPF Prestige and Frequent Flyer. However,
these programs can be used at any of Dusit hotels all around the world (Dusit International,
n.d.).
2.3 International Strategy
An International strategy is a strategy through which the firm sells its good or services
outside its domestic market. One of the primary reasons for implanting an international
strategy is that international markets yield potential new opportunities. Firm can derive four
basic benefits from using international strategies which are increased market size, greater
returns on major capital investments or on investments in new products and processes, greater
economies of scale, scope or learning and a competitive advantage through location.
However, Dusit Thani International implements the transnational strategy, which is
the combination of multidomestic and global strategy.
 Multidomestic strategy:
A multidomestic strategy is a type of marketing approach that seeks to focus attention
on the needs of a local market rather than taking a more universal or global approach to the
advertising effort. This means that companies employing this marketing strategy will seek to
understand the culture of various local markets and tailor their entry into those markets based
on the demographics of that area. With this approach, a great deal of effort is made to adapt
advertising and presentation to appeal to local sensibilities, rather than using a mass market
approach. In order for a multidomestic strategy to be successful, is it important to invest a
great deal of research into the various localities where the products are actively marketed.
This can often provide valuable insights into the nuances of the prevailing culture in an area,
which leads to inspiration on how to present the products to best advantage (Clark, 2013).
The sub-brands under the Dusit umbrella has been expanded to the overseas markets
consisting of India (opened 2013), China, Egypt, Maldives and Philippine (coming projects).

INDIA
Dusit International took this opportunity to announce Dusit Devarana New Delhi
India, which is planned to open this year in 2013.The Devarana brand reflects the ultimate in
luxury and refinement, providing an enriching experience through intellectual and artistic
touch points, and a modern yet timeless aesthetic (Dusit International, 2012). With
personalized discreet, flawless service, Dusit Devarana provides an escape from the everyday
world which is a sense of renewal, a renaissance of the mind. Additionally, the architecture of
the hotel will reflect to the Indian culture since the hotel will be located in India. Dusit
Devarana leverages Dusit International's rich cultural heritage and history of service
excellence to offer an intimacy sanctuary experience. In addition, the hotel also provides the
signature service, which is the Spa treatment under the Devarana Spa (Dusit Devarana: New
Delhi, n.d). Moreover, Dusit International has appointed Mrs Mahema Bhutia as its new
Director of Sales & Marketing for Dusit Devarana New Delhi, the first hotel to appear under
its nascent Dusit Devarana brand. In her new role, Mrs Bhutia is responsible for the
efficiency of the Sales and Marketing Department in terms of sales, profitability and image.
Therefore, with her great professional experience who had worked in many big hotels
likeDirector of Sales & Marketing for Hyatt Regency Pune; Associate Director of Sales at
Hyatt Regency Mumbai; Senior Sales Manager for Marriott Executive Apartment and
Renaissance Mumbai Hotel and Convention Center; and Manager of Banquet Sales for the
Oberoi Group in Mumbai. Since Mrs Mahema Bhutia is very skilful and is an Indian, the
hotel has appointed her to work in this position and thus she must already be familiar with the
Indian culture (Director of Sales & Marketing, 2012).This can show that the hotel tried to
adapt into new environment and culture in order to be part of them. As a result, The Dusit
Devarana New Delhi is the first of many properties to open in India under the joint venture
agreement with India based Bird Hospitality Services and Dusit International.

China
Dusit International has confirmed that Dusit Devarana Hainan will be open in China
by this year which is 2013. The resort is located on the ZhiangShui bay. The resort will
feature more than a dozen crafted spring-water bathing pools of varying sizes and
temperatures. The hotel has blended Thai and China art together in building the hotels
featuring Devarana Spa. Dusit Devarana Hainan is being designed as a low-rise complex of
villas and deluxe rooms. The resort will offer a choice of two restaurants including Western
and Chinese cuisines while a natural mountain river cuts through the complex, adding
aesthetic appeal (Dusit Devarana Hainan, 2012). Moreover, Mr. Dennis is the director of sale
who is the Hong-Kong citizen. Thus this can benefits the hotel since he would be familiar
with the culture and easily help the hotel to survive in the long run and also to be able to
compete against other hotel in the particular area (Dusit Thani International Showcase:
China, 2012).

Egypt
The Dusit Thani Lakeview at Egypt is strategically located at the new Cairo district
where the landscape and design of the hotel make it a real oasis in the heart of the developing
district of New Cairo. Also, they came up with a great idea by featuring two fabulous outdoor
swimming pools in a serene surrounding of lavish greenery. The roofs of the building are
triangle in shape, which also represent the pyramids. Therefore, this is the great way to create
uniqueness for the hotel. Additionally, there are varieties of dining options at Dusit Thani
Lakeview Cairo which includes Ruen Thai the hotel Thai Restaurant, the international all day
dining Branzino Restaurant and the Blue Rose Lounge which are set to delight every Dusit
guest culinary desire (Dusit Thani, 2010).

Maldives
Dusit Thani Maldives blends graceful Thai hospitality with the unparalleled luxury
setting of destination Maldives. Dusit Thani Maldives is said to blend Maldivian architecture
with Thai artistry. The resorts also features Dusit’s signature Devarana Spa. Moreover, the
hotel provides great dining experience for all its guests which include Benjarong serving Thai
and Maldivian food mostly are grill-seafood (Dusit Thani Maldives, 2012).

Philippine
Dusit Thani Manila which is situated in the heart of the Philippines’s premiere
financial district offers luxurious sights and sprawling urban hubs that offer reliable access to
city splendours, historic sites, meeting and convention centres. Additionally, for repainting
the state –of-art monochromatic beige-colored façade to reflect the Philippine culture, Dusit
Thani in Manila has invested around US$20 on the renovation the management continues to
endeavour in creating new reinventions for its guests. Moreover, the hotel provides variety of
cuisine such as Thai, Italian, Japanese and Philippine. Also, Dusit Thani Manila hotel offers
two of Asia’s best recreational activities that both represent internationally-renowned brands
which are Devarana Spa and DFit Fitness Centre that are provided for customers.
Furthermore, the hotel held the event on the Celebration of 112th independence so as to
become part of the Philippine culture. The event was about the Philippine culinary art, which
the hotel had brought a good chef to create the exceptional Philippine dishes. This shows that
the company want to become part of the country (Dusit Thani Manila, 2010).

Global Strategy
Facilities/ Services
Firstly, Dusit Thani and Dusit Devarana are the only two brands under Dusit
International that provides the signature services which is the Devarana Spa that promises a
revitalizing experience giving guests a new lease of life right at heaven gate. Additionally,
Dusit Thani has expanded its branches in a number of countries like India, China and
Philippines. However, all of Dusit branches still maintain the same standard of offering
outstanding spa services to all its guests. Moreover, all the branches of Dusit Thani
International need to provide D-Fit which is the fitness center to its entire guest as one of the
facilities or services in the hotel. The equipment’s within the center are full-options ranging
from weights to running machines For example, Dusit Thani Manila have the DFit Fitness
Centre which provides a 973-square meter of cutting edge fitness facilities. Therefore,
customers can seek a variety of new experiences for staying there. The last facilities that all
the branches of Dusit International should provide is extensive pool of the hotel like Dusit
Thani Manila that provides a 750 square meter swimming pool which is the largest in
Maldives.
Secondly, the official webpage of Dusit International is created for both local and
international. For example, Dusit Thani website is designed in a very Thai traditional way
where the guests can see on the Dusit Thani homepage is the Thai traditional dressing worn
by Dusit staff which gives customers a sense of Thai culture. Dusit Thani tends to remove all
language barriers for all the people. Therefore, when entering Dusit website there are five
main languages which are provided for the people which are Arabic, English, Thai, Chinese
and Japanese. Each language is well translated and therefore makes it easy for the foreign
people to read and understand the information provided on the website and those who are
interested in staying or using the hotel services. To illustrate, usually Chinese people face
difficulty and cannot communicate and read well in English and thus they are languages for
Chinese people as well as after changing to Chinese language, every title such as
accomodations or services will be in Chinese fonts and thus these people will find it much
easier and comfortable to read and also they are chances they will stay at Dusit (Dusit
International, n.d.).
Thirdly, as we have already mentioned early that Dusit also has Frequent Flyer
Programs. Dusit Thani has alliance with more than five airlines such as Japan Airlines,
American Airlines, Alaska Airlines, Thai Airways, Bangkok Airways, Jet Airways and
Singapore Airlines etc. Customers will receive award miles per qualified stay after
participating with any of the branches of Dusit International which include local and oversea.
For example, customers will receive 500 miles per stay at Dusit International hotels and
resorts. Consequently, the program from the hotel can create guest satisfaction since
customers can easily gain the benefits from being hotel guests in local or overseas branches
(Dusit International 2013).
Lastly, for the service part, customers that receive a Dusit Gold Card can be
recognizes as one of our most valued guests that are entitled to Dusit Golden Privileges and
Benefits. Customers are able to use the Gold card with 20 hotels and resorts of Dusit
International in both local (Thailand) and overseas. The guest will receive priority including
best room rate, services discount or the complimentary. This give privileges for the guests as
whenever they stay with the Dusit International, they are able to get 10% percent discount for
the accommodation. The card can also be used for the all the restaurants under Dusit, which
is for 10% off. Moreover, the hotel see the importance of creating the Dusit Thani Gold card,
which can lead to customer loyalty and once customers become loyal this can create retained
customers and hence generate revenue for the company. Also, fitness lovers can enjoy the
high promotion, if they are interested in DFIT. Thus, being a gold card holder will give him
privileges to choose when he would like to use the Dusit International services in Thailand or
overseas(Dusit Gold Benefits, 2012)
 International Entry Mode
1. Licensing
Licensing is an increasingly common form of organizational network, particularly
among smaller firms. A licensing arrangement follows a foreign country to purchase the right
to manufacture and sell the firm’s products within a host country or set of countries. The
licensor is normally paid a royalty on each unit produced and sold. The licensee takes the
risks and makes the monetary investments in facilities for manufacturing, marketing, and
distributing the goods or services. As a result licensing is possibly the least costly form of
international expansion. In addition, licensing is also a way to expand returns based on prior
innovations. Even if product life cycles are short, licensing may be a useful tool. On the other
hand, licensing also has disadvantages. For example, it gives the firm little control over the
manufacture and marketing of its products in other countries. Thus, license deals must be
structured properly. Moreover, licensing provides the least potential returns, because returns
must be shared between the licensor and the licensee. Also, the international firm may learn
the technology and produce and sell a similar competitive product after the license expires.
To illustrate like most global hotel chains, Starwood Hotels & Resorts Worldwide uses a
franchise licensing arrangement and does not own most of its hotels. While focusing on other
brands, it has let its Sheraton brand slip in quality. Given the current economic downturn, it is
going to be difficult to get the owners to incest in needed design improvements and upgrades,
especially given the owner differences in varying geographic markets. Thus licensing can
also lead to inflexibilities, and as such it is important that a firm think ahead and consider the
consequences of each entry, especially in international markets (Cockburn, n.d).
However, for Dusit to bring in new knowledge so as to improve the products and
processes of the company, Dusit has Sign licensing agreement. Dusit has mostly signed the
agreement in terms of its educational business that is aiming to improve the curriculum of its
courses and enhancing the future growth of the company.
 Tsuji culinary institution Osaka, Japan
In 2013, Dusit International has made an agreement with Japan’s most prestigious
culinary institute; the Tsuji Culinary institute of Osaka has offered an ‘Authentic Japanese
Cuisine Courses” to the general public and its students. Additionally, the Japanese Cuisine
Courses has been designed by a professional chef from the Tsuji Culinary Institute who is
originally from Japan. Also, the brand new suitable kitchen facilities, designed exclusively
for preparing Japanese Cuisine have been carefully designed in order to cater to the market
needs in Thailand (Bangkok Post, 2013).
Analysis
Dusit International and also Dusit Thani College could result in various positive
impacts after being partner with Tsuji Culinary Institution, this is because students and other
staffs will have the chance to learn and acquire new knowledge as well as to take a journey
into the heart of great Japanese culinary traditions and explore various cooking techniques.
Moreover, Dusit can gain a lot of benefits from this program especially for the kitchen
department as they will be given a great opportunity to learn and develop new Japanese
cooking skills. Consequently, once they are developed and improved on their cooking skills,
the taste, texture, smell at the same time will be improves as well which could definitely lead
to guest satisfaction. Hence if the guests are satisfied with the quality of food, they tend to be
retained customers and help hotel generate revenue even more than before.
 Ecole Hoteliere Lausanne
In 2012, Dusit International’s subsidiary, Dusit Thani College has signed an
agreement with Ecole Hôtelière de Lausanne (EHL) which is first successful and leading
hospitality school in Switzerland, located in Lausanne. Dusit Thani College and Ecole
Hôtelière de Lausannetogether has launched a new international Bachelor programme
(B.B.A.) on Hotel and Resort Management. Additionally, both Thai and foreign students will
be accepted in the programme and courses will be conducted in English. This partnership is
in line with Dusit International’s preparations to further develop hospitality talent in the wake
of the Asean Economic Community (AEC) in 2015 (Dusit Thani, 2012).
Analysis
From signing an agreement with ECL, the hotel as well as Dusit Thani College can
gain benefits in terms of developing its human assets. This is because people can be more
productivity in management skills, and thus when they are productive, they tend to work
harder and faster and thus this can lead to the growth of the hotel. Hence this program will be
suitable for the management since the course will provide both Thai and Switzerland
hospitality value and management. For Dusit to be more competitive in the hotel industry, the
company can easily learn and adopt more about the strengths of EHL.
 Lyceum University in Philippines
On December 3, 2008, Dusit Thani Public Limited Company has signed a licensing
and consults agreement with Lyceum University in Philippines University so as to offer Dusit
Thani College's popular curriculum in Hospitality Management at the 4 campuses of LPU
located in Manila, Batangas, Laguna and Cavite and also to obtain academic cooperation and
provide a course for bachelor’s degree by using the courses of Dusit Thani College which
include (i) hotel management (ii) cooking and restaurant management arts and (iii) tourism.
Moreover, Dusit Thani hotels also have a branch in Philippines, so the company allowed
trainees from LPU to do internship there as well.
Analysis
From having this agreement Dusit could get various positive impacts. Dusit can
reduce its expense in terms of training and recruitment process as the company is able to
produce its manpower working in the future properties in other branches of Dusit. Moreover,
Dusit can enhance its brand awareness among Philippines market and, therefore, make it
easier for future investment in the country.
2. Strategic alliance
Strategic alliances have become a popular means of international expansion. Strategic
alliances allow firms to share the risks and resources required to enter international markets.
Moreover, strategic alliances can facilitate the development of new core competencies that
contribute to the firm’s future strategic competitiveness. Additionally, each partner in an
alliance brings knowledge or resources to the partnership. Indeed, partners often enter an
alliance with the purpose of learning new capabilities. Common among these desired
capabilities are technological skills. However, for technological knowledge to be transferred
in an alliance usually requires trust between the partners. Managing these expectations can
facilitate improved performance. However, not all alliance is successful, in fact many has
fail. The primary reasons for failure include incompatible partners and conflict between the
partners. International strategic alliances are especially difficult to manage. Several factors
may cause a relationship to sour. Trust between the partners is critical and is affected by at
least four fundamental issues: the initial condition of the relationship, the negotiation process
to arrive at an agreement, partner interactions and external events. Trust is also influenced by
the country cultures involved in the alliance (Strategic alliances, n.d.).
For hotel industry company to enter into an international market, having strategic
alliance is one of the most significant strategies. Therefore, for Dusit International to achieve
its goals, it has found this strategy to be an important tool so the company has joined with
various groups which are related to its business. There are four mains strategic alliances of
Dusit which are as follows:
 Le Cordon Bleu
Dusit and Le Cordon Bleu, one of the world’s largest culinary arts institutes, have set
up a joint venture to offer a comprehensive range of quality culinary arts education courses in
order to establish academy of World Cuisines which will be located at Dusit Thani Bangkok
hotel. Also, they are offering degree in Business Administration in Professional Chef and
Restaurant Management at Dusit Thani College. Moreover, it is modern state-of-the-art
facility offering all the standard of Le Cordon Bleu programmes as well as a Professional
Thai Cuisine programme unique to Le Cordon Bleu Dusit. All classes are taught in English
and they accept both Thai and international students from all over the world since 2007 (Asia
Travel Tip.com, 2013).
Analysis
Le Cordon Bleu company has help Dusit to better manage the school by sharing some
of its essential resources and by creating recipe for the company. An example is sharing in
terms of human resources such as equipment’s, uniform and instructors. As a result, the brand
of Le Cordon Bleu can strengthen the education business of Dusit Thani.
 Preferred Hotel Group
Preferred Hotel Group is an international hospitality company which provides sales,
marketing, and technological solutions. Its services include integrated marketing and
communications, loyalty programs, tradeshows and events, sales support, quality assurance,
group purchasing and a solution for reservation management that connects various
reservation channels. In 2009, Dusit Thani was announced to do partnership with Preferred
Hotel Group. Under this agreement, Preferred Hotel Group will provide Dusit International
with access to its established sales network, global marketing program and leading-edge
distribution system. However, this partnership marks the beginning of a new business
strategy for Preferred Hotel Group (Preferred Hotel Group, 2009).
Analysis
Dusit International will benefits from having global partnerships with members of
Preferred Hotel Group as it will allow Dusit International to maintain its properties brand
identity while benefiting from Preferred Hotel Group’s 28 worldwide sales offices,
preferential global partnerships with key travel management companies and MICE planners,
select marketing programs, airline flyer partnerships and distribution networks. Also, it can
help Dusit to extend its network in many regions as the company has desired and to become
global player in hospitality industry around the world.
 Bird Group
Bird Group is India’s fastest growing business conglomerates with interests in Travel
Technology, Aviation Services, Hospitality, Luxury Retail and Education. Also, bird group is
one of India’s most trusted brands as such this trust extends to a series of products and
services that cover diverse businesses from service industry to cutting-edge technology
solutions. Today Bird Group’s core business includes Travel Technology, Aviation Services,
Hospitality, Luxury Retail and Education. Bird Hospitality Services (BHS) is the subsidiary
owned by Bird Group. Additionally, in March 2007, Bird Hospitality Services (BHS) and
Dusit Hotels & Resorts are joint venture as they began to do hospitality business with Dusit
Hotels and Resorts. Moreover, Bird Hospitality Services is committed to develop six, 4 to 5
star hotels, which will provide Dusit the possibility to manage or franchise several hotels in
India (Deimezi, 2007). Presently, there is only one Dusit Devarana in New Delhi India.
According to Sunil Mathur, Regional Vice President said that Dusit Devarana will ‘stand out’
not only for its unique architectural designs, but also for its ‘high level of genuine Asian
hospitality’. “In a crowded market place like Delhi where there is hardly any ‘differentiator’
in terms of product design or offerings, Dusit Devarana will stand out for its world class
design and genuine caring service (Kumar, 2007). However, other four properties which are
DusitD2 New Delhi India, DusitD2 Goa India, Dusit Devarana Rishikesh India, and Dusit
Devarana Jaipur India are under development which will be opened in the next few years.
Analysis:
Dusit could get various positive impacts from the joint venture with Bird Group. This
is because India is the potential market for Dusit Thani especially in Rishikesh, Delhi and
Goa as India is now witnessing a tremendous boom with inbound travel of 4.43 million in
2006 with a double digit growth forecast year on year till 2020. As Rishikesh is growing on
demand of leisure and MICE segment, Delhi is already facing in short supply of business and
leisure hotels and Goa has demand of in leisure both domestic and oversea segment. As a
result, in order to give India hotels and resorts to redefine the standards of hospitality in the
country, the hospitality expertise of Dusit International and local knowledge and network of
Bird Hospitality will be combined together.
 Asia Hotel Alliance (AHA) and Global Hotel Alliance (GHA)
Dusit and other four leading hotels in Asia has joined together to form AHA including
Landis Hotels & Resorts in Taiwan, the Marco Polo Hotel Group in Hong Kong, Meritus
Hotels & Resorts in Singapore and New Otani Hotels in Japan. This powerful marketing
association is being established so as to better serve existing clients and future customers of
the over 70 AHA affiliated hotels. The group’s main aim is to expand its market
internationally by creating efficient distribution channel system through the group. However,
in January 2007, the Asian Hotels Alliance (AHA) will merge withGHA, immediately
bringing Dusit Hotels & Resorts, Landis Hotels & Resorts andMarco Polo Hotels as new
members of GHA, while Meritus Hotels & Resorts. GHA thus further consolidates its
position as the world’s largest hotel alliance of independentand individual brands. The Global
Hotel Alliance (GHA) partners Kempinski,Omni, Pan Pacific and Rydges are delighted to
welcome three new Members tothe GHA. Furthermore, GHA today launches its new web-site
(www.globalhotelalliance.com), the gateway to a truly global travel experience. The new site
offers not only attractive prices and ease of booking at all GHA hotels, but also enables
customers and travel agents to book flights Lastly, GHA is also partner with many airlines
such as Air France, British Airways, Emirates, and Thai Airways (Hsyndicate, 2012).
Analysis
Dusit would have a great opportunity to take a step of international hotel company as
by forming an alliance will help strengthen the power of Dusit to compete with other big
hotel chains such as Accor and Starwood. Moreover, AHA and GHA will allow customers to
easily search for room availability and confirm room reservations and thus it enhance the
sales volume of Dusit. Dusit would be able to diversify its market size around the world by
promoting distribution channel through AHA and GHA. Especially, the hotels who are
members of GHA can get benefit to expand market in other regions.
3. Acquisition
Acquisitions can provide quick access to a new market. Acquisitions often provide the
fastest and the largest initial international expansion of any of the alternatives. Thus, entry is
much quicker than by other modes. Additionally, as free trade has continued to expand in
global markets, cross-border acquisitions have also been increasing significantly. Although
acquisitions have become a popular mode of entering international markets they are not
without costs. International acquisitions carry some of the disadvantages of domestic
acquisitions. Moreover, they can be expensive and also often require debt financing, which
carries an extra cost. International negotiations for acquisitions can be exceedingly complex
and are generally more complicated than domestic acquisitions.
 Dusit Thani Laguna Phuket
Dusit International announces the acquisition of one of its most successful properties
which it has managed for the past 23 years, and one of the best performing hotels is in
Phuket- Dusit Thani Laguna Phuket, which was previously owned by Laguna Resorts &
Hotels Public Limited Company. Dusit Thani Laguna Phuket has been one of our best
managed hotels for over two decades, and has never dropped its performance, even despite
the many challenges over this period. However, for this acquisition, Dusit has spent THB
2.62 BILLION (USD82 million) (Dusit International, 2013).
Analysis:
This successful acquisition will put Dusit in an even stronger position in the market,
as well as strengthening its existing portfolio of hotel assets as the hotel continues to grow
internationally. Additionally, the company will continue to enhance their presence in
Thailand, and will consider some of the high potential deals in the key strategic destinations
in Thailand to expand its portfolio. The latest report from STR Global on the “Strong
Recovery in Southeast Asia’, Phuket is identified with a RevPAR growth of 36.7% for the
first half of 2010 versus 2009, ranked second in Southeast Asia, which shows it’s
phenomenal potential. Furthermore, Dusit Thani Laguna Phuket has shown growth in
RevPAR over the last 12 months of 16.5%versus the market average of luxury and upscale
properties in Phuket, which averages just 9.8% (Dusit International, 2013).
 The hotel Nikko Manila
In 1995, Dusit International has acquired the Hotel Nikko Manila by purchasing
shares in the holding company, Philippine Hoteliers Inc. (PHI), from Japan Airlines
Development Company Limited and JAL Trading Inc. In addition, the Hotel Nikko Manila
came under the management of Dusit Thani Hotels & Resorts, and was renamed the Dusit
Hotel Nikko, Manila. Moreover, in April 2008, the Manila hotel also underwent a major
renovation programme and became Dusit Thani Manila in order to meet the high Dusit
standards (Ollie Quiniquini, 2008).
Analysis
Dusit is able to enter into the new market easier which is the Philippines market as it
has acquired the Nikko Manila. This is a fastest and the best way to emerge into the country.
As a result, Dusit is able to develop various projects in the destination and also it has become
better well-known in Philippines.
4. New Wholly Owned Subsidiary
The establishment of a new wholly owned subsidiary is referred to as a Greenfield
venture. The process of creating such ventures is often complex and potentially costly, but it
affords maximum control to the firm and has the most potential to provide above-average
returns. This potential is especially true of firms with strong intangible capabilities that might
be leveraged through a greenfield venture. A firm maintains full control of its operation with
a greenfield venture. More control is especially advantageous if the firm has proprietary
technology. Research also suggests that “wholly owned subsidiaries and expatriate staff are
preferred’’ in service industries where “close contacts with end customers” and “high levels
of professional skills, specialized know-how, and customization” are required. Additionally,
the risks are also high, however, because of the costs of establishing a new business operation
in a new country. The firm may have to acquire the knowledge and expertise of the existing
market by hiring either host-country nationals, possibly from competitors, or through
consultants, which can be costly. Still, the firm maintains control over the technology,
marketing, and distribution of its products. Moreover, the company must build new
manufacturing facilities, establish distribution networks, and learn and implement appropriate
marketing strategies to compete in the new market. Furthermore, research suggests that when
the country risk is high, firm prefer to enter with joint ventures instead of Greenfield
investments in order to manage the risk. However, if they have previous experience in a
country, they prefer to use a wholly owned Greenfield venture rather than a joint venture.
Presently, Dusit is now aiming to expand even more in global markets, thus it has
been coming up with new projects in different countries. However, not all projects are started
from scratch. The following is the property that is wholly owned by Dusit and just open last
year in 2012.
 Dusit Thani Maldive
Dusit Thani Maldive is the second foreign property after the Philippines and is wholly
owned by company. Dusit has spent for 2.5 Billion Baht to invest in 100-villa resort melds
Thai and Maldivian architecture and services. In addition, Dusit aim is to expand its business
and thus it mainly focuses is on seeking more opportunities outside the country. The reason
that Dusit want to expand its business is to diversify risk, build a global brand, and increase
awareness of the brand in the international market amongst people and to boost up its
revenue. Moreover, the company spent at least three years looking for the right location and
then it acquired a hotel on Mudhdhoo Island on Baa Atoll, near the country's first Unesco
World Biosphere Reserve which is a home to marine life in order to operate at its best, even
though Dusit took a lot of time to expand its branch to Maldives compared to any other Thai
hotel operators such as Minor and Central (Dusit Thani Maldives, 2010).
Analysis
Since Dusit Thani Maldive is wholly owned by Dusit International, the company can manage
independently resulting in flexible for restructuring management. The company can gain
maximum control and can protect commercial secrets in order to avoid losing to the
competitors. They put higher investment and can get highest potential returns. However, the
company could have a chance to learn and gain new experience from scratch so as to adapt
the lesson learnt for future investment in order to avoid high risk and high cost. We cannot
yet see Dusit Thani Maldive whether the company will succeed from its investment as the
hotel just open last year in 2012. Consequently, Dusit need more time to proof itself whether
it can succeed from its investments and that it is the leading Asian’s hotels company in
Maldives.
There are many upcoming projects of Dusit which will be opened this year in 2013
and in the next few years. The company will have to make decisions on the projects whether
it will be joint venture with another company or the company will wholly own project.
Therefore, to conclude its strategic plan we have limited information.

Dusit Thani Abudabi (2013)

Dusit Devarana Hainan China (2013)

dusitD2 Pasadena, California, USA (2013)

Dusit Thani Dilmunia Bahrain (2013)

Dusit Thani Jeddah (2014)
However, all properties in India is owned by Dusit Bird Hotel under the management
contract which is a joint venture between Dusit and Bird Group and are not wholly owned
subsidiaries of Dusit. Moreover, Bird Group is devoted to establish six hotels and resorts in
India under the JV agreement. The followings are the coming projects in India, which will be
opened soon.

dusitD2 New Delhi India (opened 2013)

dusitD2 Goa India (opened 2013)

Dusit Devarana Rishikesh India (2014)

Dusit Devarana Jaipur India (2014)

Dusit Devarana New Delhi
3.1 Type of Cooperative Strategy
Strategic alliances

Joint Venture
-
Bird group
Bird Group is India's fastest growing company with interests in Travel Technology, Aviation
Services, Hospitality, Luxury Retail as well as Education. This company is one of India's
most trusted brands and this trust extends to a series of products and services that cover other
numerous businesses. Bird Group has pioneered many innovations in the areas of IT, GDS
and BPO services and presently, Bird Group's core business includes Travel Technology,
Aviation Services, Hospitality, Retail and Education. In March 2007, Bird Hospitality
Services (BHS), began to do hospitality businesses with Dusit Hotels and Resorts. Under this
joint venture, Bird Hospitality Services is committed to develop six 4 - 5 star hotels, which
will provide Dusit with the opportunity to manage or franchise several hotels in India. The
first three properties, which opened in 2010, are in Delhi, Goa and Rishikesh. The next three
which will be open by 2013 will be in Pune, Amritsar and Jaipur. Dusit Bird hotel private
company limited manages Dusit Thani Goa, Dusit D2 Goa, Dusit D2 New Delhi, Dusit
Devarana New Delhi, Dusit Devarana Jaipur and Dusit Devarana Rishikesh. The total
investment in the hotels from Bird Hospitality Services is approximately over 200 million
Dollars. With this joint venture, Bird group and Dusit Thani will combine the hospitality
proficiency of Dusit International and the local network and knowledge of Bird Hospitality to
give India’s hotels and resorts the highest standards of hospitality in the country. India is the
potential market for Dusit Thani especially in Delhi, Goa and Rishikesh. Lastly, Goa is
gaining demand in leisure travel, both domestic and oversea segment, and Rishikesh has a
demand within the leisure and MICE segment.
- Le Cordon Bleu
To provide the best standards in the education business, Dusit and Le Cordon Bleu
have come to an agreement to establish an Academy of World Cuisines located in the Dusit
Thani Bangkok hotel, along with the introduction of an international Bachelors of Business
Administration in Kitchen and Restaurant Management program. Le Cordon Bleu Dusit Co.,
Ltd is a joint venture between Dusit Thani Plc and Le Cordon Bleu international company.
The Culinary school has been opened since 2007, and the brand name of Le Cordon Bleu can
strengthen the education business of Dusit Thani. Moreover, the culinary school of FrenchThai Joint venture can differentiate their hospitality education from others because both
cultures can share knowledge and expertise and know the market better. The new partnership
will increase the demand in Thailand for people who are professionals as well as nonprofessionals in the culinary industry. Moreover, Le Cordon Bleu company will help Dusit to
manage the school for by doing certain activities such as creating a curriculum and recipes,
while Le Cordon Bleu will share resources such as human resources that include instructors,
equipment and uniform. This will save costs for both parties.

Non-equity strategic Alliance
1. Licensing agreement
-
Tsuji culinary institution Osaka, Japan
Dusit Thani College signed an educational cooperation agreement with Japan’s most
prestigious culinary institution called the Tsuji culinary institution in Osaka, Japan. The
institution agreed to share the traditional Japanese cuisine with Dusit Thani College and the
company will open a new curriculum as a culinary art major starting in this year 2013.
Moreover, this Japanese institution will send their teachers to conduct the classes, and they
also train the instructors from Dusit Thani College to be able to run the program. Both of the
institutions guarantees on the highest quality of program. The curriculum is designed to suit
with the market demand in Thailand. Brand new kitchens and equipment that are suitable for
the course are already bought and set up by the college.
-
Lyceum University in Philippines
Lyceum University Philippines currently has the largest student enrollment of more than
10,000 students in the Hotel & Restaurant Management and Tourism majors. Moreover, The
University also provides training hotels for students in a full service hotel of 54 rooms with
all facilities required for high level training. This training will be connected to this new
learning center in Manila. In 2008, Dusit Thani Public Company Limited has signed a
licensing and consulting agreement with Lyceum of the Philippines University to offer Dusit
Thani College a popular curriculum in Hospitality Management at the 4 campuses of LPU in
the Philippines. Under this agreement, Dusit Thani College will provide the curriculum and
academic resource materials for Bachelor of Science in International Hospitality
Administration, which is specialized in Hotel and Restaurant Management, Culinary Arts,
Restaurant Management, Tourism Management as well as various intensive professional
courses in Hotel Management. These courses will also include Dusit Thani College's famous
Professional Chef and Culinary Arts programs, at LPU's four campuses located in Manila,
Batangas, Laguna and Cavite. Moreover, Dusit Thani hotels also have a branch in the
Philippines, so the company allows trainees from LPU to do internship there.
-
Ecole Hoteliere Lausanne
Ecole Hoteliere Lausanne is the world’s first hotel school that became the leader in the
hospitality sector in Switzerland and provides the management education of a top business
school, while basing its program on its own unique educational philosophy, hospitality
management in both science and art. In 2012, Dusit International and Ecole Hôtelière de
Lausanne (EHL) launched a new bachelor program (B.B.A) in Thailand. After the agreement
was signed, the course was conducted at Dusit Thani College, and targeted both Thai and
international students. Dusit Thani College wants to raise the bar for hospitality education in
Thailand therefore, In this program, both Thai and International students are accepted and it
will be conducted in English. Also, Dusit College wants to prepare to develop a hospitality
program in order to compete with the ASEAN community.
2. Distribution Agreement
-
Asian Hotels Alliance (AHA)
Five of Asia’s hotel operators which include Dusit Hotels & Resorts in Thailand,
Landis Hotels & Resorts in Taiwan, the Marco Polo Hotel Group in Hong Kong, Meritus
Hotels & Resorts in Singapore and New Otani Hotels in Japan joined together to form AHA.
The alliance acts as an effective marketing association where all AHA member hotels share a
philosophy of Oriental service that distinguishes them from others. Each of the brands under
AHA has their own strength. However, the ability of each brand to power its strength through
marketing cooperation will make smaller regional companies effectively compete with the
larger international brands. AHA launched a web base reservation technology through
www.asianhotelsalliance.comwhere customers can search for room availabilities on
members’ hotels, and they can also take advantage of special offers and confirm room
reservations. As each member of AHA is a well-known brand in each popular destination in
Asian region, they can help each other expand their market size in Asia.
-
Global hotel alliance (GHA)
GHA is the world’s largest Alliance of independent luxury hotel brands and it was
established since 2004. There are many world-class hotel brands that joined the organization,
for example- Kempenski hotels, Marco Polo hotels, Anantara hotels and resorts, Pan Pacific
Hotels and Resorts and so on. Moreover, GHA also has a partnership with many airlines such
as Air France, British Airways, Cathay Pacific Airways, Lufthansa, Emirates, China eastern,
Singapore Airlines, Thai Airways and more. In addition to this, Global hotel alliance has
merged with the Asian Hotel Alliance therefore, Dusit Thani also enjoys all the benefits since
it is also a member of GHA. For now, members of GHA include more than 200 hotels. The
strategy of GHA is that they try to find hotel brands which represent regions and they aim to
cover all the regions in the world. For example, for now GHA do not have any hotel members
in Paris, so they want to fulfill this spot with the hotels that represent Paris. Therefore, the
hotels that are members of GHA can get benefits to expand the market in other regions as
well.
-
Hotel Representation Australia (HRA)
Hotel Representation Australia (HRA) is an Australian foremost hospitality agency and is
greatly experienced in understanding the needs of hotels and resorts while also seeking to
expand their market share in Australia. Moreover, the company offers tourism research
reports, marketing strategies and plan formulations, brand strategies, development, product as
well as service appraisals. The range of creative marketing services is included traditional
advertising and campaigns and design of campaign where they also offer web design and
strategy, brochure and newsletter productions and so on. In 2012, Dusit Thani signed an
agreement with HRA so the company will support Dusit regional sales representation in
Australia and New Zealand. The partnership assists Dusit to have a stronger regional
presence throughout Thailand and other destinations. The collaboration with HRA will be the
key strength to support expansion in many regions such as Australia and New Zealand, which
is the key target growth market of Dusit due to the increasing number of Oceania travelers.
According to statistics from the Ministry of Tourism and Sports, Thailand welcomed 477894
travelers from Australia and New Zealand during January to June in 2012. The figure goes up
to 10% from 436,617 arrivals during the same period in 2011. Therefore, expanding regional
sales in Australia can attract Oceania to come to Dusit more. In addition, Dusit also looks
forward to expand their properties to the Australia region and want to develop loyal
customers from this region. Therefore, HRA can be one of the effective collaborations to
penetrate the Australian market (Dusit News, 2012)
-
Preferred Hotel Group
Preferred Hotel Group is an international hospitality company which provides sales &
marketing as well as technology solutions to hotels and resorts around the world. In other
word, Preferred hotel group is sale centric organization. Its services include integrated
marketing and communications, loyalty programs, trade shows and events, sales support, a
solution for reservation management that connects various reservation channels and much
more. In 2009, Dusit Thani was announced to create a partnership with Preferred Hotel Group.
Under this agreement, Preferred Hotel Group will provide Dusit International with access to its
established sales network, global marketing program and leading-edge distribution system,
while Dusit Thani will offer a larger portfolio in Asia and middle east to the company. Dusit
Thani also benefits from preferred hotel group’s 28 sales regional offices worldwide while the
regional sales office of Dusit Thani has only five places including Hongkong, UK, German,
Singapore and Bangkok. Furthermore, the partnership will provide Dusit International the
benefits of global partnerships with members of Preferred Hotel Group which are more than
700 members including travel management companies, MICE planners, select marketing
programs, airline frequent flyer airline partnerships and distribution networks. Dusit will also
gain Preferred Hotel Groups’ promotional channels. In the past, Dusit tried to expand their
properties in the Asia market. However, presently Dusit wants to reach the global market by
expanding to major business and tourism destinations like Europe, the Middle East, India,
Indonesia, Philippines and China. Therefore, partnership with Preferred hotel group can bring
Dusit to become a global player in the hospitality industry around the world and will also help
to extend networks in many regions.
3. Supply Contract
-
Airlines
Dusit Thani has a partnership with 17 airlines which are: Thai airways, Alaska airlines, flying
blue (Air France), American Airline, Japan airlines, Korean air, Singapore Airline, etc. Dusit
Thani developed a frequent flyers program for customers so when customers stayed at Dusit
Thani hotels and resorts, they will get miles to fly with partner airlines.
4. Outsource Commitments
-
Ruyi Company Limited
Ruyi Company limited is a media, branding and marketing agency. The company helps to
market, advertise and deal with media for other companies. Dusit Thani has also outsourced
Ruyi to do marketing where the company helps to produce media for Dusit Thani products
such as Dusit Thani college, Dusit executive and development centre, Devarana Spa and Dusit
Thani hotels. In addition to this, Ruyi Company Limited communications agency provides
branding, marketing, custom events and creative design services to Dusit International in
Bangkok Thailand. Moreover, the company also assists with the re-branding for Dusit Thani
hotels and resorts, Dusit D2 and Dusit Princess and Dusit residence in terms of creating a logo,
print advertising, online advertising, calendars, newsletters, global directories, mice brochures,
brands credo, folder, print banner, print poster, trophy, VDO presentation, screensaver,
wallpaper, media consultation, media buying & planning, brand manual, hotels collaterals,
hotels brochure and so on.
-
Ringzero network Thailand
RingZero is a company that combines strategic thinking, creativity and technological expertise
in order to design, develop and deliver powerful Internet technology and new media business
solutions. The company offers software development, game studio and professional service to
customers. In 2011, Dusit Thani outsourced Ringzero network Thailand to develop the Dusit
official website. Dusit Thani wanted to develop online marketing in order to compete with
global competition therefore Dusit's online marketing strategy will play a key role in the long
term marketing activities of all Dusit International hotels and resorts. The website has a new
design, easy navigation, ability to track guest booking patterns, guest historical records, greater
search engine optimization, Multi language, rates and availability display, etc. In addition, the
new Dusit website will also help us understand our customer's behavior better with guest
history, web statistics, conversion rates and Google analytics features. With an investment of
almost $335,000, Dusit aimed to increase the overall online bookings through Dusit.com from
12% in 2010 to 25% in 2011 as minimum.
3.2 Business-Level Cooperative Strategies
Joint ventures
-
Bird Group
One of the joint ventures that are in process of development and implementation is the joint
venture between Dusit International and Bird Group. Together they form a venture company
called Dusit Bird hotel private company limited. The project shared between them is the
movement of Dusit Thani Branches through Indian states. This aim is to inject Dusit Thani
into the prosperous Indian market. The examples are Dusit Thani Goa and Dusit Devarana
New Delhi. By becoming joint ventures with Bird Group they will be able to save cost of
marketing activities and operation research and development since Bird Group is a local
agency. The investment in Dusit Thani by Bird Group amounted up to 200 Million US
Dollars this will add more capital funds to Dusit Thani, creating convenience in funding.
They are a 50:50% venture. The Bird Group holds expertise of Hospitality in India. They also
have work with related businesses like Aviation and Travel technologies. This also takes care
of technological resources acquisition for Dusit International creating an advantage for them
over their competitors. Sharing of Information and resources between the Bird Group and
Dusit Thani will be an aid to both the companies in finding the most effective strategies as
well marketing tactics and product modification to best fit the needs of the Indian Market.
Bird Group is considered as a complimentary strategic alliance to Dusit International. They
share knowledge of the market and resources to develop competitive advantage in the Indian
market. For Example Dusit Thani in India will be a blend between Indian and Thai
Hospitality. Bird Group, as an Indian company they have extensive knowledge about the
legal requirements and the law of India. They are also comprehensive with the other external
environments, which will be able to help Dusit Thani Reduce risks.
-
Le Cordon Bleu
Dusit Thani also moved into the Education Business. With Dusit Thani College they were
able to generate popularity in their diversification. To push it further they decided to
differentiate themselves from their competitors. To show their quality they moved into a joint
venture with one of the most culinary institutions from France. In 2007 they shook hands
with Le Cordon Bleu to form Le Cordon Bleu Dusit Company Limited. This makes a
difference in their value chain activities, as there is an addition of quality, standard and
culture of food and education. This also shifts their marketing mix as its ads more value to
their brand name. They decided to add value to their culinary courses hence the decision of
collaboration with Le Cordon Bleu. It is now one of the most promising and well-known
culinary schools in Thailand. This course opened the first LCB Classic Cycle, which educates
about master class French cooking techniques of cuisines and pastries. They also provide
short courses at the academy. Because of its popularity more Bachelor degree programs and
culinary arts will also be offered to Dusit Thani College. To push it even more and help the
Dusit educational institutions this course is not offered to only Thais but throughout the
Southeast Asian regions. This course standard of culinary arts provide highest of cooking
technologies and equipments that will allow students to use and experiment as well as having
the standard of culinary techniques which innovates them above competition and can provide
synergy as it is one of the most well-known culinary courses in Thailand.
Non- Equity alliance
-
Airlines
Dusit Thani has created partnership with many airlines. This is also one of their strategies to
retain customers by using Dusit Frequent flyer programs. Customers who stay at Dusit Thani
will be allowed to receive miles exchange from those who are partners with Dusit and use
them to achieve certain privilege in the hotel. In addition if the customers can collect mileage
from airline companies with affiliation with Dusit they will receive free stays at Dusit Thani
Hotel For example if the customers of Thai Airways traveled for more than 12000 miles, they
will receive a one night free stay at the hotel. If they traveled 22 miles or more they will
receive 2 consecutive night stays and 32000 miles would mean 3 consecutive nights. Joining
an airline industry can mean a lot of change therefore they seem to have trouble with
orientations. Partners with alliance leads to reduction of their advertising cost as well as
distribution costs. Dusit Thani can also promote and advertise through airplanes about their
value and experience of stay to their competitor. This will recue their promotion activities
and as well as the cost that come with it for PR. Dusit Thani is partner with many airlines
with their idea of access to markets all around the world. These airlines are American
Airlines, Japan Airlines, Korean airlines and British Airways. This will draw in potential
customers for Dusit Thani with many nationalities this can be seen as trying to achieve cost
leadership in their value chain activities, as there is a reduction in promotion necessity.
-
Ecole Hoteliere Lausanne
Dusit International
is in
license with EHL
School
from
Switzerland. Swiss
Hospitality schools
are
world rebound and well certified as quality education in Hospitality management. To develop
a new and improved bachelors program on management of hotels and resort Dusit
International decided to have affiliations with EHL. This course will cover both Thai and
European style hospitality to better develop their students from this college. They desire to
differentiate in their marketing mix in terms of services that are compatible to both cultures.
This strategy of alliance is to differentiate and increase the quality of their education against
other Universities in Thailand. They have implemented a new four years course that offers 2
years in Thailand and 2 years at EHL with degree certifying for both Universities it can lead
to a different level in management of Hospitality and tourism in Thailand. Dusit Thani wishes
to lift their standard of their institution by adding significant value of their standard with an
addition of Swiss Hospitality trainings.
-
Ruyi Company Limited
Dusit Thani outsourced their marketing and media relations to Ruyi Company Limited. This
is a vertical complimentary strategic alliance. This outsourcing is to rely on their expertise in
the field of marketing to create a competitive advantage in their speed of operations in the
marketing aspect of their value chain. One example could be during the rebranding of Dusit
International. Dusit Thani wish o rebrand overall image of hotel business, one of such
activities was outsourced to Ruyi Company Limited. They are in charge of media, new ads,
and advertisement, brochures and article printings. They outsourced these activities to the
specialists like Ruyi to save cost and time to improve in their other activities in their value
chain accordance to their rebranding. Advertisements are very important during the
rebranding procedures because it represents the identity of the company. Using expertise
other than their own Ruyi with this alliance also created the design and the idea of Dusit Gold
Card as well as the Devarana Spa ads. This will enhance their effectiveness in marketing and
promotion as well as create efficiency in production.
-
Ringzero Network
Ringzero Network Company is one of the most effective website creators in Thailand. They
are outsourced by Dusit Thani to forge and update their company website and their online
booking systems. Dusit Thani spent 335000 U.S. Dollars to develop this website with copy
rite included. The website was handmade to be easy to navigate, constant rate updates using
automatic system, Multilanguage to operate as well as live booking a high speed. Dusit Thani
not only wants to differentiate from their customers with their hotels and other products but
also through websites. This is now the matter of distribution chain. By creating comfortable,
fast attractive new website that has new features it will attract customers who book through
the Internet. The reason for such an expensive website is due to their rebranding decision.
The renovation and the redesigning of their brand name as well as the addition of trademarks
and issues of copy rites took the website to change its design and its software architecture all
together to show the new and improved Dusit Thani.
To conclude these strategic alliance strategies of Dusit International that supports their value
chain activities. The Bird Group through their expansions to India supports them. The
company also helps Dusit Thani to reduce cost of research and development and market
survey in operations. They also have strong aids in their distribution channels through The
RingZero Company Limited. Their educational institutions value is added through
collaborations with Le Cordon Bleu and EHL. Both these institutions can bring education of
Dusit Thani College to another level all together. Moreover with their marketing aspect Ruyi
Company is aiding them in their marketing mix in terms of promotion. Finally by being
partners with Airline companies they can reduce cost of promotion as well as use that fact to
create new promotional ideas and packages.
3.3 Corporate-Level Cooperative Strategies
GHA
Recently Global Hotel Alliance (GHA) has already merged with Asian Hotel Alliance
(AHA). The aim was to increase performance and enhances an even bigger network within
these two alliances. This automatically makes Dusit International a member of GHA.
Members of GHA are highly prestigious with high luxury and service standard provides. This
characteristic is similar to Dusit Thani. The initial plan for Dusit International to expand their
market through AHA has amplified to global proportions after this merger. Dusit Thani has
the Micros Fidelio OPERA system which is how information flow through GHA and how
they are linked. Dusit is able to expand its network even further. Diversification was
definitely in their book as they aim to distribute their special promotions and offerings
through the GHA. E.g. distributing their Gold Card. Their Gold Card Holders are entitled to
receive benefits from attending GHA programs they visit. They will feel the enhancement of
benefits from the special offerings made by the members (Dusit Loyalty Program, 2008).
GHA has also formed Partnership with British Airways Launching their loyalty programs to
customers on board. “GHA allows guests to earn 500 miles per stay at all participating GHA
hotels, with double miles bonus offer” (Caswell, 2009).
Hotel Representation Australia
HRA is one of the most reputable tourism agencies in Australia. Hotel Representation
Australia is very skilled in aiding those hotels and resorts who have the desire to explore the
Australian market. They have extensive experience and understand the needs and wishes of
the hotels and Resort groups well. The HRA are very unique as they offer research reports,
strategic planning and implementations and they also do product evaluation and brand
development. They also implement creative marketing with design of campaign and
advertisement for the hotel’s products and services. In addition they also design websites,
create brochures and articles for the tourism industries. They are all together a firm of an all
rounded talent to help aid Hotel groups in whatever parts they need. Dusit Thani found this
efficient and diverse group so, they decided to sign an agreement with the HRA company in
2012 for them to aid in regional sales and promotion in Australia and New Zealand. This
partnership will assist Dusit Thani to a strong regional presence though out Thailand and
other destinations. This smart collaboration with HRA will push Dusit Thani to ease in their
expansion within Australia and New Zealand. This can become their key strength to achieve
synergy. During the first Half of 2012 Thailand had successfully drawn in 477,894travellers
from Australia and New Zealand according to statistics from the Ministry of Tourism and
Sports. This is shows an increase of 10% compared to 2011 during the same period, which
was 436617 arrivals during the first Half as well. This figure proves that the collaboration is
working as after the implementation of collaboration with HRA there has been an increase in
Oceana travelers to Dusit Thani. “Moreover, HRA will be one of the key strengths in
supporting the new expansion of Dusit in Maldives, Delhi, Abu Dhabi and Hainan during
2012-2013”. (Koumelis, 2012)
AHA
Dusit Thani is one of the 5 most respected groups in the Asian Hotel Alliance (AHA). Joining
this alliance is one of Dusit Thani’s Corporate-level Cooperative strategies. By joining this
alliance Dusit is enabled to branch out their market shares. AHA is a strong association that
holds the power to stabilize there individual as well as collective market shares. AHA aims to
aid each other in what others lack in for example Dusit Thani is considerably smaller
compared to a few big hotel chains in this case AHA will come to Dusit’s aid in terms of
international market additional recourses and network building. All the hotels in this alliance
will join forces to confront with other multinational competitors. One of the ways they are
connected is the joint reservation system this will strengthen their marketing profile and
increase chances of profitability through customer network and information flow. Members
of AHA also help each other in joint loyalty programs for e.g. if one of their members are
over booked the customers will be escorted to another member of AHA nearby. They also
participate in trade shows together. In 2001 the AHA brochure was funded entirely by Dusit
International with joint promotion distributing more than 80,000 copies of the first AHA joint
brochure (Muqbil, 2001). This group also has their joint website where customers can make
their reservations with any of the members in one single website for convenience. AHA
intern is the fastest way for Local Hotels like Dusit Thani to reach the international market.
Contract with PHG
The partnership agreement between Dusit international and the Preferred Hotel group in a
selective service agreement certifies a new beginning of a strategy implementation. This will
provide Dusit International with the ability to access the PHG sales networks thus expanding
their distribution channels and promotional with the ability to access a cutting-edge
distribution planning systems. They offer PHG a larger portfolio of prestigious properties that
Dusit International has been building in UAE and India
This strategic partnership targets Dusit Thani’s major expansion with 50 hotels Across
Middle East, Asia and European Regions. This is considered an aggressive expansion plan as
Dusit Thani priorities to achieve higher returns for their stakeholders on their assets,
facilities, services, technology and strategic alliance. This specific agreement between the
two firms allows Dusit to sustain their brand name and identity with the access to PHG’s 28
sales offices worldwide. This adds to Dusit Thani’s 6 regional sales offices in Australia,
Britain, Singapore, Germany, Hong Kong and Bangkok.
In addition, this partnership provides Dusit International access to certain benefits in the
global partnerships that PHG has negotiated with their 700 member’s hotels and resorts
including corporate account managements with some of largest multinational organizations
travel management companies, Event Planners, marketing specialists, airlines and
Distribution networks. They will gain exposure through PHG promotional channels to gain
their target market’s attention.
For example, Dusit Thani is the primary Asian hotel organization who is able to utilize the
private label chain code called BC in the GDS or Global Distribution system through SynXis
Central Reservation system or CRS in January 2010. This has significantly broadened Dusit
Thani’s reach in the market. This connection to SynXis of CRS is provided by Sabre
Hospitality Solutions through PHG. (Dusit International goes strength, 2010).
Educational Cooperation agreement with Tsuji Culinary Institute.
At their Educational institution corporate level
business
Dusit International’s Dusit Thani College has
recently
signed an educational cooperate agreement with Tsuji
Culinary
Institute. This is one of the best culinary schools in
Japan.
Other than Le Cordon Bleu, Tsuji Culinary will provide diversification in Dusit Thani’s
culinary institutions. This will provide the students with an opportunity to learn the art of
Japanese cuisine. This strategy and the courses were designed to meet the market trend of
Japanese food domination in the Thai market. This will speak to the demands of the trend
towards Japanese cuisines. With this brand new facilities and state of the art kitchen
equipment’s are installed in the institution for specific Japanese cooking in Dusit Thani
College. Tsuji will provide Japanese chefs to the Dusit Thani College as well for the culinary
courses that they will implement to be the Japanese cuisine instructor at the college (Citrinot,
2012). This provides the variety of course choices as well as a diversification towards
Japanese cuisine cooking, which not many universities provide. This is a product
differentiation. Students who graduate from this program will have extensive skill and
knowledge of the trend in Japanese cuisines. As Dusit Thani implement internal recruitment
from their college its self it is likely that they will become work forces of Dusit International.
By being able to produce Japanese tastes quinines as well as courses they will be able to
enhance their ability to target Japanese customers around the world in both long and short
run.
Licensing Agreement with Lyceum of the Philippines University ("LPU")
Dusit Thani has signed an
agreement with Lyceum of the
Philippines University or LPU
the
Dusit
curriculum
Thani
of
to offer
popular
Hospitality
Management at all the 4
campuses
Philippines
of
LPU
itself.
in
Dusit
International will also provide
academic resources and materials important for Hospitality management courses in 4 of LPU
campuses in Manila, Laguna, Batangas and Cavite with training courses to all students in
Philippines (Dusit Thani Ties up, 2008).
This action will enhance their brand awareness even further in the Philippines market by
diversifying towards education institutions and training provisions. So for they have only
Dusit Thai Manila in Philippines which is their only branch there. They decided to follow
through with this agreement to enhance their existence in the Philippines to show their
competency in Hospitality management. This is also a step to Move the Dusit Thani College
oversees. The aim of expanding their educational institution is a long-term goal this is one of
their strategies. This is also to diversify their work force variety in the future. This is a step
towards global expansion to become an international company.
3.4 International Cooperative Strategy
According to Dusit International Annual report from the past 5 years Dusit International
shows no signs of such kind of strategic alliance. There is no cross border activity that spells
international strategies in the report. So far Dusit International has joined AHA, GHA and
Preferred Hotel group to aid them through their expansions in the international market. Dusit
Thani is still in the Phase of expansion and these alliances have aided them to such
objectives. From the analysis of Dusit International Annual report Dusit Thani is not strong
enough yet to manage a complex international alliance strategy.
3.5 Network Cooperative Strategy
Dusit International, in their network cooperative strategy, has partnered with two major hotel
alliances which is the preferred hotel group and global hotel alliances. These are the two
alliance networks that work together to obtain economies of scale as well as build long term
relationships for future growth. The members of this alliance have the same objective because
they’re all in the tourism industry. Below are the details of the operation of this alliance as
well as the benefits that Dusit International can obtain from them.

Preferred Hotel Group (PHG)
Preferred Hotel group is a global collection of independent hotels, destination resorts,
city center hotels, luxury residences, and unique hotel groups. They have built their
reputation as a global leader in the hospitality industry since 1968. They consist of
more than 850 hotels across its eight worldwide brands which are Preferred Hotels
and Resorts, Summit Serviced Residences, Sterling Hotels, Sterling Design, Historic
Hotels of America, and Historic Hotels worldwide. They provide integrated marketing
and communications, loyalty programs, trade shows and events, sales support, quality
assurance and group purchasing, total branded connectivity and a solution for
reservation
management
that
connects
various
reservation
channels.
(preferredhotelgroup.com)
Therefore, Dusit could take advantage of these benefits by developing sales
relationships between its partners; have a thorough understanding of distribution
technologies, the dynamics of the market place and also the access of consumers.
PHG has 5 travel partners: Historic Hotels of America, Earn Airline Miles, American
Express, Sixt Rent a Car and Dusit.
-
Historic Hotels of America
Their purpose is to identify quality hotels that have faithfully maintained their
historic integrity, architecture and ambiance. Historic Hotels of America preserves
the authencity of America’s most prominent lodging addresses and offer visitors a
remarkable travel experience to savor, celebrate and share. Members (hotels) are
promoted nationally and internationally to those who prefer historic settings for
their leisure and business travel.
-
Earn Airline Miles
When staying at more than 500 participating PHG around the world, customers
will earn airline miles. They will have 16 airline partners to choose from.
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American Express
American Express is a global services company, providing access to products,
insights and experiences. They are the world’s largest card issuer by purchase
volume, with over 70 million card members and 2200 travel services locations
worldwide. They have partnered with Preferred Hotels and Resorts and Summit
Hotels and Resorts to offer promotions and special offerings, all their properties
accept the American Express cards making it convenient for customers.
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Sixt Rent a Car
PHG has partnered with Sixt, the oldest, most prestigious car rental company in
all of Europe and the world. They currently have 220,000 rental vehicles in 105
countries around the globe. PHG offer a complimentary sixt gold card
membership where members obtain benefits such as mobile check in, preferred
customer service and up to 10% discount on best available online rates.
This can help increase revenue in member hotels because PHG provides a large
selection of marketing services such as monthly e-newsletters, travel agent
promotions and co-operative advertising programs. Therefore, Dusit is able to
enter the international market due to a larger network and better cooperative
relationships between partner companies.
Global Hotel Alliance (GHA)
GHA is the world’s largest alliance of independent luxury hotel brands and offer of
the industry’s best hotel loyalty and reward programmes. They bring together
reputable hotel brands from across the globe including Anantara Hotels and Resorts,
Kempinski Hotels, The Leela Hotels, Palaces and Resorts, The Doyle Collection, First
Hotels, Lungarno Collection, Marco Polo Hotels, Mokara Hotels and Spas, Pan
Pacific, Shaza Hotels, Tangram Hotels, Omni and Tivoli Hotels and Resorts
surrounding 160 luxury hotels with more than 46,000 rooms in 41 different countries.
Dusit could gain an advantage of expanding to these regions around the world that is
full of diversity.
Apart from hotel partners, GHA is also partnered with airlines frequent flyer
programmes with Air France, British Airways, All Nippon Airways, Cathay Pacific
Airways, China Eastern, Emirates, Etihad Airways, Jet Airways, Kingfisher,
Lufthansa, Qatar Airways, SAS, Singapore Airlines, South African Airways and Thai
Airways. Moreover, they are also partnered with two car rental companies which are
Avis Rent-a-Car and Sixt Rent-a-Car (gha.com)
GHA provides a lot of opportunities for Dusit by partnering with many companies.
First, sales can be maximized since partners could share their products, for example,
GHA could cooperate with their partner airlines to come up with a promotional
campaign s that tourists who travel with those airlines could also use the
accommodation provided by the member hotels worldwide as a package. Second,
GHA acts as the most effective online distribution channels for Dusit International,
through the website; customers could promptly access the website and book a room.
This can save costs for Dusit in terms of operations through GHA such as advertising
costs and costs of distribution.
3.6 Managing Cooperative Strategies

Cost Minimization
-
Bird Group
The Bird Group is amongst the largest and most diversified entities within the
industry. They have pioneered many innovations in the areas of IT, GDS and BPO services.
Their core businesses include Travel Technology, Aviation Services, Hospitality, Retail and
Education. Since India is one of the fastest growing countries, the joint venture between Dusit
and Bird group would give Dusit many advantages. Dusit International has development
plans all over the country, which means there will be a high level of competition in India’s
hospitality industry. By joining the Bird group, it was help Dusit in terms of cost reduction
by:
1. The funds that Dusit receives from the Bird group can help in covering costs for
the marketing campaign and other expenses. This means they share their costs by
half. As a result, Dusit only needs to invest 50% while in return; they get the same
amount of income.
2. Bird group has many businesses in terms of diversification under its brand. Dusit
can use this to its advantage in their operations. For instance, since the Bird group
is the largest technology provider to the Indian travel industry. Dusit could use
their technology to create a software program on their computer system in all their
hotels around India for reservations, customer management, accounting and ecommerce. They will be able to cover all the industry segments including airlines,
online travel agencies, corporate and hospitality.
3. It is quite difficult for a foreign company to run a business in an unfamiliar
country. They have limited information on the potential market and the culture of
the region. To run a successful business, the foreign company needs to understand
the customer’s lifestyle, culture, personal preference, legality, and political issues.
Any clashes in the two countries in terms of these can result in a huge loss of
investment. Since the Bird Group is an Indian based company, the can help Dusit
International avoid problems and meet the customers requirement very well.
Marketing will be easier, and Dusit can avoid legal problems therefore reducing
their risk of failing. (bird.in)

Airlines
Another way to reduce Dusit International’s marketing cost is partnering with the 17
airlines around the world. Dusit International provides customers with the ‘frequent flyer
program’ where customers can collect mileages in exchange for accommodation at Dusit
hotels. Moreover, when staying at Dusit Thani, customers will receive a miles per qualified
stay. This helps Dusit in terms of cost leadership of value chain activities. We can also say
that this acts as a free advertising technique for Dusit International because its alliance with
airlines automatically acts as a distribution channel. Brand expansion occurs as well since
more customers will be aware of it. Therefore, once the customers experience their stay with
Dusit, it will lead to brand loyalty as well.(dusit.com)

Opportunity Maximization
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AHA
Since Dusit International is one of the five members of AHA, it can compete with
larger international companies. It can help Dusit International grow its customer base, by
reaching customers outside Thailand, such as Japan and Taiwan who are also part of AHA.
Their brand reputation and awareness can also be created and improved. Since AHA gives its
members the credibility they deserve, trust can be gained from customers as well as
employees. In addition, Dusit International can obtain market information from other
companies under AHA, it saves time and research costs, and marketing can be done more
efficiently. As a result, Dusit can reduce marketing costs while gaining new markets and
customers.
-
GHA
Since AHA is a part of GHA, Dusit International is a part of GHA too. Their excellent
reputation for being the world’s largest alliance of independent luxury hotel brands makes the
alliance with them beneficial to compete with big chain hotels (gha.com). Dusit International
can build their reputation as a high end brand. Customers will also trust them with the quality
and value for money. They will also gain an advantage through GHA’s airline partnership.
The benefits they receive from AHA and GHA is very similar except with GHA, they gain
global benefits. AHA helps Dusit in the Asian market and GHA helps Dusit in the
international market (larger base). Dusit International can also avoid mistakes or learn new
things from other companies under GHA. They can do benchmarking, where they compare
themselves to other companies and adopt some of their strategies, this can reduce their risk
for failure tremendously.
-
PHG
Dusit can gain many opportunities here. PHG and its expanded network can bring
more customers to the hotels. When Dusit International has an alliance with other companies
under PHG, their marketing opportunities are generated automatically. Dusit International
could choose to offer sales offices to PHG in different regions to cover a larger market base.
These offices provide any support relating to sales which can boost their performance. Since
PHG has partners with businesses in the MICE industry, airline industry and the travel
industry, Dusit International can use this opportunity to work with companies in these
industries. They also provide a marketing solution service which eliminates Dusit’s risks and
weaknesses.
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Lyceum of the Philippines University
In 2009, the Dusit Thani College initiated a programme with the Lyceum of the
Philippines University (LPU) to prepare young people for a future career in the hospitality
industry. This gives an opportunity for people in the Philippines to be aware of the Dusit
International brand. It also gives them the opportunity produce quality employees for their
brand. The exchange of students between Dusit Thani College and LPU help exchange
cultures and company structures. Graduates from these two establishments will have a
thorough knowledge, skill, and ability to deal with customers. Dusit will also be able to
obtain a diversified workforce, giving them the opportunity to enter the international market
quickly and easily.(dusit.com)
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Tsuji Culinary Institute
On August 10, 2012, Dusit Thani College entered into a landmark agreement with
Japan’s most prestigious culinary institute, the Tsuji Culinary Institute of Osaka to offer
authentic Japanese cuisine courses to its students as well as the general public. Japanese
cuisine courses and learning materials are carefully designed to suit the market needs in
Thailand. Since the Japanese cuisine is one of the healthiest and most unique cuisines, skills
developed from this program can help Dusit gain customers who appreciate this cuisine.
Their products can be diversified and maybe in the future, Dusit Thani can start projects in
the culinary aspect abroad. (dusit.com)
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Hotel Representation Australia (HRA)
On August 9, 2012, Dusit International announced its new representation agreement
with HRA, which is recognized as one of Australia’s foremost hospitality agencies. Under
their agreement, HRA will support Dusit International as one of its regional sales
representative in Australia and New Zealand, which are among the company’s key emerging
source markets. According to statistics from the ministry of tourism and sports, Thailand
welcomed 477,894 travelers from Australia during January to June 2012. Joining HRA will
provide Dusit with information about the travelers from Oceania to help the market
segmentation. It is vital to know the customers wants, needs, preferences, behaviors as well
as culture to be successful in the hospitality industry. Since HRA is an expert in many areas
such as the business strategies, research and marketing services, having a sales representative
in other regions can help Dusit collect reliable data, and lead Dusit in the right direction while
taking lesser risks.(dusit.com)
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Le Cordon Bleu
Dusit and Le Cordon Bleu established an Academy of world cuisines located next to
Dusit Thani Bangkok and the introduction of an international Bachelor’s of Business
Administration in Kitchen and Restaurant Management program at Dusit Thani college.
These educational programs are not only opened to Thais, but for the entire South East Asian
region. They will have the chance to recruit students from Le Cordon Bleu to add to their
human resources in Dusit International. They can ensure that students that graduate have the
right skills to work for their hotels, moreover, there won’t be extra coaching needed and the
recruitment process will be easy, there will be a stable flow of employees. They can save time
and money because they don’t need to search for the right candidate; this is their advantage
over many hotels. There is also a higher chance for expansion in France because their
reputation will be formed. Having a partnership with a reputable institute can increase their
credibility in Thailand and other countries that are aware of Le Cordon Bleu to provide the
best service to their customers. (dusit.com)
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Ecole Hoteliere Lausanne (EHL)
On January 19, 2012, Dusit Thani College and EHL signed an agreement to launch a
new international Bachelor Programme (B.B.A) on hotel and resort management. This is the
first step for the exclusive relationship which brought together Dusit Thani and EHL to raise
the bar for hospitality education in Thailand. The programme is available for both Thai and
international students which will be conducted in English. This program was established to
prepare and to further develop the hospitality talent in the wake of the Asean Economic
Community (SEC) 2015 agreement. Since EHL is the first hotel school in Switzerland, where
the art of being a hotelier is from, Dusit will gain an opportunity to be known in the foreign
market since there will be an exchange of students between the two institutes. Quality
employees can also be obtained through this partnership. Moreover, Dusit can use EHL as a
source of learning and developing for its current employees where lecturers from EHL can
train hotel staff or the hotel staff can attend the program. This will improve the employee’s
skills and motivation to be better, leading to better service within the hospitality
industry.(dusit.com)
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Ruyi Company Limited
Ruyi Company Limited is a creative media, design, branding and communication
solutions agency based in Bangkok. Whether it is for branding, market penetration, or just
getting a simple message across, they have the ability to deliver concept, construct and
comprehension for the client’s various markets. As an expert, Ruyi would definitely know the
current trends in the market, which is why they would be able to advise Dusit on the time to
enter the market and which market they need to enter. This way, potential customers can be
reached effectively and quickly without any time and resources wasted. They can ensure
higher revenue and an increase in brand image. (ruyi-company.com)
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Ringzero Network Thailand
Ringzero is a company that combines strategic thinking, creativity and technological
expertise in order to design, develop and deliver powerful end-to-end internet technology and
new media business solutions. Since the internet is an extremely powerful tool to reach
customers quickly and easily, Dusit should hire the expertise of Ringzero to help. One of the
main works of Ringzero is to create websites; Dusit can hire them to create and attractive and
easily accessible website to make it easier for customers to find information and book rooms
online using their hi-tech gadgets. They can target more markets by offering their website in
different languages. It’s a good opportunity to expand their customer base (rznet.com).
3.7Leadership Style
A leadership style is a leader’s style of providing direction, implementing plans, and
motivating people. Leadership is less about your needs, and more about the needs of the
people and the organization you are leading. Leadership styles are not something to be tried
on like so many suits, to see which fits. Rather, they should be adapted to the particular
demands of the situation, the particular requirements of the people involved and the particular
challenges facing the organization. “Leaders are shaped and defined by character. Leaders
inspire and enable others to do excellent work and realize their potential. As a result, they
build successful, enduring organizations.
As I have conducted an interview with the front office manager of Dusit Club, Khun
Wanchai Paksee, said that according to him the leadership style should be a clear leader in
terms of understanding, coaching, training, and even controlling in order to make sure that
the operations will run smoothly. Also, assigning the right person to the right job will ensure
that the task will be accomplished successfully. In addition, he said that the staffs are
empowered and encouraged to make decisions by themselves only within the scope. For
example, if the walk in guest comes in and ask for the room rate and if they find it too
expensive or even asking for discounts then the staffs can’t just make their own decision but
they have to consult the manager at first. Moreover, he emphasized a lot on coaching staff of
how to deal with the guest efficiently and effectively that is the win-win situation. This is
because if the staffs are not trained well or if they are being treated unfairly, then eventually
staffs won’t be happy and they won’t treat customers well and when customers are not
satisfied or happy with the services they received from the staff then they will not come back
to stay at the hotel and thus loss of profitability for the company.
However, to prevent this from occurring, the leaders inspire enthusiasm to all its
staffs and are energetic in motivating others to move forward. The excitement and
commitment from teams is an enormous benefit. Furthermore, they empower and encourage
their staffs in the decision making process, they encourage creativity, and all the members are
often highly engaged in projects and decisions. As a result, the members tend to have high
job satisfaction and are productive because they are more involved in decisions. This also
helps develop people’s skills. Consequently, members feel in control of their destiny, so they
are motivate to work hard by more than just a financial reward. Khun Wanchai said that even
though participation takes times as it slows down the
decision making, but the result is often good, but the
downside is that some members might not have the
knowledge or expertise to provide high quality input. Also,
I have conducted another interview with front office
manager of Dusit front desk, Khun Veerapol Poungvarin,
he said that transformation leadership is often the best leadership style to use in business
situations. To illustrate, Dusit Thani have transformational leaders as they are inspiring
because they expect the best from everyone on their team as well as themselves. This leads to
high productivity and engagement from everyone in their team such that to exceed the
expectations others have of them, to continuously enrich their capabilities, and to place the
interests of the organization above their own. Moreover, transformational leaders develop and
communicate a vision for the organization and formulate a strategy to achieve the vision.
They make the followers aware of the needs to achieve valued organizational outcomes and
encourage them to continuously strive for higher levels of achievement. Also,
transformational leaders have emotional intelligence. Emotionally intelligent leaders
understand themselves well, have strong motivation, are empathetic with others and have
effective interpersonal skills. As a result of these characteristics, transformational leaders are
especially effective in promoting and nurturing innovations in the company.
3.8Organizational Structure & Culture
Management
 Mr.ChaninDonavanik, Chief Executive Officer
 Mr. Giovanni Angelini, Vice Chairman
 Mr. David Shakelton, Chief Operating Officer
Sales and Marketing
 Ms. Catherine McNabb, Vice President Sales and Marketing
Education
 Mr.KhampiSuwanarat, Managing Director – Education
 Mr. Gary Cromie , Joint- Venture Director of Le Cordon Bleu Dusit Culinary
School
Human Resources
 Mr. Tan Eng Leong, Vice President – Human Resources Development
Operations
 Mr. Jiri Kobos, Vice President – Operations
This is the big picture of Dusit International’s chain of comand from all its operationg
companies
For the complete company’s organisational structure it is considerable normal that it
will be a massive chain of command as it is not possible to attend to each outlets or
personnel directly at all times. Dusit Thani choose to use Matrix structure to show the
direct chains of command between all outlets and departments of each organisation. This
groups Dusit Thani employees by product that they deliver and their function in such
product. This is a combination of functional structure branching into divisional structure
Companies with more than 1 product mainly use this kind of structure or more than one
corporate level services in the case of Dusit Thani. This kind of structure shows
organisational structures within the organisational structures such as Dusit Thani hotels
and Resorts will have another organisational structure within it with a Hotel management
division governing all branches. This is the case where only the Directors of each product
line will report to the Board of Directors. Other communications will be passed on. This
might create a slow flow of communications from head of organisation to the rest as each
of there products also has many branches. However this is an unusual structure as their
corporate level businesses such as culinary school is not clearly mentioned as well as their
Deverana spa is under the command of Hotel division
Thisisanintegratedgeneralorganisationalstructureof Dusit Hoteloperations.
As we can see this is a closer look into one of the divisions in the whole organisational
structure from big picture to a smaller picture. This is an example of a general guideline Dusit
Thani Hotel’s organisational chart. They tend to specify their work place as a warm and
friendly environment to work in. this also shows in their organisational structure, as it is a
functional structure. The functional structure is basically an organisational structure where
such divisions or departments in hotels are categorised by their functions for example Front
Office departments come under the rooms division which I a team of Front office and
Housekeeping for those whose function is to coordinate to provide expectable standardised
clean rooms for guest. To go into even more detail Dusit Thani tries to create a homely
environment for staffs to work in. this also show in their organisational structure as it shows
that it is quite flat in accordance to today’s trend. We can see that the pink level and the blue
levels are the same. It might look like a different level but Rooms Department comprises of
front office manager and housekeeping manger together as a team that becomes the room
division. Accordingly the F&B comprises of the front of the house and the kitchen again to
work as a team. Basically when the information flows to the pink level it means that the blue
all the blue level had already received it. Dusit Thani makes sure that their management
levels are close to their working level personals to create an environment that is fit to work in.
this is to create a since of responsibility and closeness between the staff which can improve
their quality of work as working evaluation and feedback is easier with a flatter
organisational structure.
“Dusit Thani has six main formal report structures of the company including Annual
Report, Financial Statement, Annual Registration Statement, Notice, Performance Report and
Minutes. In addition, Dusit Thani organizational reports are always up-to-date in its website
and have issued various formal organizational reports to public. Dusit is very open to the
public about showing their performance and can easily create trust from the customers
“(Dusit International, 2012).
Culture
Ravasi and Schultz (2006) state that organizational culture is a set of shared mental
assumptions that guide interpretation and action in organizations by defining appropriate
behavior for various situations. Every organization has their own culture and so does Dusit
Thani. Dusit Thani means “town in heaven” this does not apply to only customers but their
staffs as well. Dusit Thani is well known for resembling and amplifying “Thainess”. They are
one of the first Hotels of Thai origin that has made their mark in the world by expanding.
Inside their working culture the organization shows a Thai style service. They will always do
the “Wai” while greeting customers and address them by “Sawasdekha/khrap”. They try to
bring in all the Thai culture in their atmosphere as well as behaviours. For example Thailand
is known as the land of smiles. It is one of their main focus that they shall smile at their
customers at all times to make them feel warm and welcomed just like when they enter in to
Thailand when the customers enter Dusit Thani Hotels anywhere in the world the aim is to
make them feel as if they have come to Thailand.
“For over 60 years it has been our inspiration for the experience we aim to create for
our guests at every moment of every day.
Seizing on this inspiration it has become a guiding light for our founder Thanpuying Chanut
Piyaoui. From a dream conceived in Thailand, Dusit International has grown into a leading
collection of luxury hotels and resorts. In doing so, we have taken our unique and distinctive
Thai heritage and service standards, throughout the world.” (Dusit International, n.d.)
They focus on Thai heritage as we can see that their rooms are designed using Thai
architecture to create a Thai atmosphere of stay to their customers. This can also be seen on
their costume policy for their staff. They wear a traditional Thai silk dress, which depicts the
olden days of Siam in today’s world. As said above on their website their main focus is
bringing old traditional Thai heritage feeling to this modernize world. This is clearly shown
in their room designs that they have renovated to fit today’s trend of simple designs with a
blend with the old traditional Thai designs. This is also shown in their resort designs, which
shows similarities to the Thai Salaa.
It is not only shown in their presence for customer’s perception but also in their working
environment. From source inside the company as Dusit Thani is a Thai company they tend to
follow the Thai behaviour of co-dependency (Hofstede, 2013). This is shown very clearly in
their Organizational structure above that their F&B and kitchen department are blend together
as one team. The same does with their housekeeping and their front office department.
However this will benefit them as it creates a flatter structure and more efficient and speed of
communication will be practiced from the higher authorities. As their workforce also
comprise of foreigners they tend to blend their organizational culture to be flatter to answer to
today’s trends. They also train their staff to be behaving according to their theme, which is
“Thainess”, which is Dusit Thani’s trademark. Dusit Thani’s aim is to bring the feeling of
Thai hospitality to their customers as one of the pioneers they are well competent for such
capability. This however also shows in their working environment. To follow their theme and
to be consistent with this to their customers they also practice on themselves as they have
staff parties with Thai theme and everything is done within the Hotel. The staffs are also
trained to serve the traditional Thai way which is shown mostly towards their VIP with the
action of bending while walking pass the VIP customers. This also adds to Hofstede study of
Thai culture, which shows a significant difference in power between those with power and
those without and in Dusit culture the customers are always the priority. Their organizational
culture is shown both to customer’s perception as well as between their working colleagues
Dusit Thani’s organizational culture revolves around the idea of being Thai.
The Balanced Scorecard
The balanced scorecard is a framework firms can use to verify that they have
established both strategic and financial controls to assess their performance. This technique is
most appropriate for use when dealing with business-level strategies; however, it can also be
used with the other strategies firms may choose to implement e.g. corporate level,
international and cooperative. The underlying premise of the balanced scorecard is that firms
jeopardize their future performance possibilities when financial controls are emphasized at
the expense of strategic controls, in that financial controls provide feedback about outcomes
achieved from past actions, but do not communicate the drivers of future performance. Thus
an overemphasis on financial control has the potential to promote managerial behavior that
sacrifices the firm’s long-term, value creating potential for short-term performance gains. An
appropriate balance of strategic controls and financial controls, rather an overemphasis on
either, allows firms to effectively monitor their performance (Balanced Scorecard, 2013).
There are four perspective that are integrated to form the balanced scorecard
framework: financial (concerned with growth, profitability, and risk from the shareholders
perspective), customer (concerned with the amount of value customers perceive was created
by the firm’s products), internal business processes (with a focus on the priorities for various
business processes that create customer and shareholder satisfaction), and learning and
growth (concerned with the firm’s effort to create a climate that supports change, innovation
and growth). Consequently, using the balanced scorecard framework allows the firm to
understand how it looks to shareholders (financial perspective), how customers view it
(customer perspective), the processes it must emphasize to successfully use its competitive
advantage (internal perspective), and what it can do to improve its performance in order to
grow (learning and growth perspective).
Moreover, firms use different criteria to measure their standing relative to the
scorecard’s four perspectives. The firm should select the number of criteria that will allow it
to have both a strategic understanding and a financial understanding of its performance
without becoming immersed in too many details. For example, we know from research that a
firm’s innovation, quality of its goods and services, growth of its sales, and its profitability
are all interrelated.
1. Financial Control
Financial control focuses on financial outcome of the organization in the short-term.
We look at ability of the firm in managing funds including spending incurred and revenues
earned. If the firm is lack of effective financial control it may cause the firm in loss of profit
making or in bankruptcy risk. However, as financial controls focus on historical outcomes
and do not measure creation or destruction of future economic value. Therefore, manager
should focus on appropriate balance of financial controlas well as strategic controls in order
to achieve high levels of performance.
Financial performance comparison between Dusit Thani and Shangri-La
 Measures of liquidity
1. Current ratio
Current ration indicates the liquidity of a company in paying short-term debt
2012
2011
Dusit Thani
0.743x
0.721x
Shangri-la
0.945x
0.568x
From this ratio, it shows that Dusit Thani had current ratio of 0.721x in year 2011. In
the next year 2012, it reveals that the current ratio is 0.743x (DTC, 2012). This indicates that
Dusit Thani had performed slightly better in liquidity since the hotel has higher ability to pay
back the short-term debts by the increase of 0.02x. In contrast, Shangri-La perform better in
2012 which is 0.945x meaning they have better ability to cover short-term debt than Dusit
Thani so far (SHANG, 2012). However, both hotels had current ratios which are less than 1.
It means that the hotels have total current assets less than total current liabilities. Therefore,
the company still has a problem of paying short-term debts because of its inadequate current
ratio.
2. Quick ratio
Quick ratio or Acid test is a ratio that develops from current ratio. In calculation,
we don’t bring inventory to calculate with other current assets such as cash and
account receivables due to the fact that inventory convert itself into cash slowly
than other ones
2012
2011
Dusit Thani
0.694x
0.682x
Shangri-la
0.911x
0.526x
From this ratio, it shows that Dusit Thani had quick ratio of 0.682x in year 2011. In the
next year 2012, it reveals that the quick ratio is 0.694x (DTC, 2012). This indicates that Dusit
Thani performs slightly better in liquidity since the hotel has higher ability to pay back the
short-term debts with the increase of 0.012x. In contrast, Shangri-La perform better in 2012
which is 0.911x (SHANG, 2012). However, both hotels quick ratios are less than 1. It means
that the hotels have total current assets less than total current liabilities. Therefore, both
companies still has problem in paying short-term debts.
 Asset Management Ratio
1. Inventory Turnover
Inventory Turnover indicates how many times that a business has an ability to sell
inventory
2012
2011
Dusit Thani
49.4x
47.07x
Shangri-la
54.1x
35.9x
The inventory turnover of Dusit Thani for year 2011was at 47.07x. While in 2012 it
turnover rate has increased to 49.4x (DTC, 2012). This indicates that Dusit Thani has
performed better inventory management to generate sales. In contrast, Shangri-La’s inventory
turnover for 2012 has increased a lot from 35.9x in 2011 to 54.1x in 2012 (SHANG, 2012).
This shows that Shangri-La has a lot improvement in their inventory management. As you
can see that the inventory turnover of Dusit Thani for 2012 was at 49.4x while Shangri-La
was at 54.1x. This can be concluded that the performance of inventory management of
Shangri-La become better than Dusit Thani. This indicates that Dusit Thani might carry too
many inventory or managing inventory not as efficient as Shangri-La.
2. Days Sales Outstanding
A measure of the average number of days that a company takes to collect revenue
after a sale has been made.
2012
2011
Dusit Thani
34 days
55 days
Shangri-la
34 days
25 days
From the ratio shown, in 2011 Dusit Thani’s days sales outstanding ratio was at 55
which means Dusit Thani had to wait 55 days to receive cash after they made sales. While in
2012 the ratio decreased to 34 (DTC, 2012). This indicates that Dusit Thani wait shorter in
the next year from 55 days in 2011 to 34 days in 2012. Meaning, Dusit Thani had improved
its performance comparing to previous year. In contrast, Shangri-La’s DSO was at 25 days in
2011 and increased to 34 days in 2012 (SHANG, 2012). This shows that after comparing to
previous year Shangri-La had waited longer while Dusit Thani had waited shorter which is a
good sign for Dusit. However, after comparing both companies’ DSO of 2012 we will see
that both hotels had waited for 34 days which means they has ability to collect cash back at
the same length of time.
3. Fixed Assets Turnover
A financial ratio of net sales to fixed assets. The fixed-asset turnover ratio measures
a company's ability to generate net sales from fixed-asset investments - specifically
property, plant and equipment (PP&E) - net of depreciation.
2012
2011
Dusit Thani
0.6
0.5
Shangri-la
0.418
0.296
The fixed asset turnover of Dusit Thani in 2011 was at 0.5. While in 2012 the turnover
rate increased to 0.6 (DTC, 2012). This indicates that Dusit Thani’s performance in managing
their fixed asset to generate sales has slightly improved from previous year.
Whereas,Shangrila-La’s fixed asset turnover in 2011 was at 0.296 and increased to 0.418 in
2012 (SHANG, 2012). However, the higher ratio of Dusit’s turnover rate shows that Dusit
Thani has more potential in using fixed asset in order to generate more sales to the company
than Shangri-La.
4. Total Assets Turnover
The total asset turnover ratio measures the ability of a company to use its assets to
generate sales. The total asset turnover ratio considers all assets including fixed assets,
like plant and equipment, as well as inventory and accounts receivable.
2012
2011
Dusit Thani
0.5
0.419
Shangri-la
0.344
0.267
In 2011, the total asset turnover of Dusit Thani was shown at 0.419 while in 2012 the
ratio increased to 0.5 (DTC, 2012). This can be said that comparing to previous year Dusit
had more capability to use its total asset to generate sales. On the other hand, Shangri-La’s
total asset in 2011 was at 0.267 while increased to 0.344 in 2012 (SHANG, 2012). It displays
that Shangri-La had also improved its potential in utilizing its total assets to generate more
sales. However, the higher ratio of Dusit Thani indicates that DusitThani utilized their total
asset to generate sales more effective than Asia hotel.
 Debt Management Ratio
1. Debt ratio
Debt ratio is a financial ratio that indicates the percentage of a company's assets that
are provided via debt. It is the ratio of total debt (the sum of current liabilities and
long-term liabilities) and total assets (the sum of current assets, fixed assets, and
other assets such as 'goodwill').
2012
2011
Dusit Thani
45.8%
45.2%
Shangri-la
19.7%
20.6%
From this table, it shows that Shangri-La debt ratio of 20.6% in year 2011. In the next
year 2012, it reveals that the debt ratio is 45.8% (SHANG, 2012). This indicates that the hotel
perform better since the lower the ratio the lower the bankruptcy risk. In contrast, Dusit debt
ratio increases from 45.2% to 45.8% (DTC, 2012), this indicates that the higher the debt ratio
the higher the bankruptcy risk and it also means Dusit have more financial obligations.
However, the debt ratio of Shangri-La is better than Dusit debt ratio it indicates that more risk
Dusit is considered to have taken.
2. Debt/Equity
A measure of a company's financial leverage calculated by dividing its total
liabilities by shareholders' equity. It indicates what proportion of equity and debt
the company is using to finance its assets
2012
2011
Dusit Thani
84.5%
82.4%
Shangri-la
24.5%
25.9%
From the table, it shows that Shangri-La debt/ equity ratio of 25.9% in year 2011. In
the next year 2012, it reveals that the debt/equity ratio is 24.5% (SHANG, 2012).The lower
the ratio indicates that the hotel is less dependent on its leverage. In contrast, Dusitdebt/equity
has increased from 82.4% in 2011 to 84.5%in 2012 (DTC, 2012). It means that the hotel is
being financed by creditors rather than from its own financial sources which may be a
dangerous trend. The hotel with high debt-to-equity ratio may not be able to attract additional
lending capital. Therefore, the higher the ratio, the more risk that Dusit is considered to have
taken on.
 Profitability Ratio
1. Profit Margin

We cannot deny that a company's profit margin, the so-called bottom line is the most
often mentioned when discussing a company's profitability. While undeniably an
important number, investors can easily see from a complete profit margin analysis
that there are several income and expense operating elements in an income statement
that determine a net profit margin. Moreover, it is a factor that investors will take a
comprehensive look at a company's profit margins on a systematic basis.

A ratio of profitability calculated as net income divided by revenues, or net profits
divided by sales. It measures how much out of every dollar of sales a company
actually keeps in earnings.
2012
2011
2010
Dusit Thani
3.5%
0.79%
3.00%
Shangri-la
4.71%
-13.67%
-11.21%
From the given calculation, it reveals that after both Dusit and Shangri-La profit
margin had dropped down in 2011, profit margin of Dusit Thani has increased from 0.79% in
2011 to 3.5% in 2012 (DTC, 2012). While Shangri-La’s profit margin has increased a lot
from -13.67% in 2011 to 4.71% in 2012 (SHANG, 2012). Even though Shangri-La made loss
in 2011 but they has higher profit margin than Dusit in the following year. This may due to
too much expense Dusit had incurred or its sales price was too low.
2. Return on Assets

An indicator of how profitable a company is relative to its total assets. ROA gives
an idea as to how efficient management is at using its assets to generate earnings.

The higher the return, the more efficient management is in utilizing its asset base.
The ROA ratio is calculated by comparing net income to average total assets, and is
expressed as a percentage.
2012
2011
2010
Dusit Thani
1.78%
0.89%
4.35%
Shangri-la
2.20%
-2.68%
-2.99%
From the ratio, it indicates that Dusit’s ROA has slightly increased from 0.89% in
2011 to 1.78% in 2012. (DTC, 2012). This means that Dusit has managed its use of assets
both current assets and non-current assets more efficiently than last year, but still not as
efficient as in 2010. However, comparing to Shangri-La in 2012 ROA of Shangri-La is at
2.20% (SHANG, 2012), meaning Shangri-La has better ability to manage its total assets to
generate profit than Dusit this year. Shangri-La seems to have better performance in
managing it total assets over 3 years, after they had made loss in 2010 and 2011.Since the
ratio can also display the ability of management team whether they make efficient use of all
resources they have or not. Therefore, Dusit should always improve its management on how
can the hotels utilize more of its total assets to gain higher percentages of ROA.
3. Return on Equity

This ratio indicates how profitable a company is by comparing its net income to
its average shareholders' equity.

The amount of net income returned as a percentage of shareholders
equity. Return on equity measures a corporation's profitability by revealing
how much profit a company generates with the money shareholders have
invested. The higher the ratio percentage, the more efficient management is in
utilizing its equity base and the better return is to investors.
2012
2011
2010
Dusit Thani
3.81%
0.79%
2.78%
Shangri-la
2.09%
-4.49%
-2.75%
From the table, it shows that ROE of Dusit has increased from 0.79% in 2011 to 3.8%
in 2012 (DTC, 2012).Meaning, in 2012 the shareholders got higher profit from the money
they invested than last year. Although, Shangri-La has increased its ROE to 2.09% in 2012
after they made loss in 2011 and 2010 but comparing to Dusit, Shangri-La’s shareholder still
got fewer dividends than Dusit (SHANG, 2012). As a result, it is more likely that investors
may interest to invest in Dusit more than Shangri-La.
After the comparison of the financial ratio of Dusit Thani and Shangri-La hotel we
can conclude that in 2012 in terms of liquidity both Dusit and Shangri-La have both current
ratio and quick ratio less than 1 which means that both hotels have total current assets less
than total current liabilities. Therefore, both companies still has problem in paying short-term
debt. While the calculation in terms of asset management shows that the lower inventory
turnover rate of Dusit indicates that Dusit’s inventory management is not as efficient as
Shangri-La’s. While both Dusit and Shangri-La seem to take same number of days to collect
cash from debtors after sale has been made which is 34 days in average. Moreover Dusit
Thani tends to have more potential in utilizing both fixed assets and total assets to generate
sales than Shangri-La. And in terms of debt management Dusit seems to have more financial
obligation and therefore more financial risk to be taken as seen by the high percentage of debt
ratio and debt/equity ratio. Lastly, in terms of profitability ratio Shangri-La seems to have
better performance in terms of profit margin and return on asset but in terms of return on
equity Dusit shareholder seems to satisfy more with its result.
2. Customer
Customers are the most important people for any organization because without the
customer most businesses would not exist. They are the resource upon which the success of
the business depends. For the hospitality industry, there are dependent upon their customers.
If they do not develop customer loyalty and satisfaction, they could lose their customers. In
addition, potential customers often have many choices for places and services on which to
spend their hard-earned money, and they will reward a good experience by both returning as
well as, hopefully, telling their friends and associates about it, thus bringing the business
more customers. The purpose of the organization is to fulfill the needs of the customers
because it is the customers that will it make it possible to achieve business aims.
Moreover, customer service is a mind-set where the hotel guest’s needs and wants
come first. Customer service is series of activities which are designed to increase the level of
satisfaction for the customers and that a product or service has to meet up with the customer’s
expectation. It is also a provision of service to customers which are done before, during and
after sale. Therefore, most of the five star hotel customer service is a business skill where
hotel employees, management and hotel owners constantly provide service to their guests in a
professional and pleasant manner. In addition, the importance of customer service may vary
by product or service, customer and industry. The perception of success depends on the
employees who can adjust themselves to the personality of the guest. Also, it plays an
important role in the company’s ability to generate income and revenue (Titus, 2013). A
customer service experience can change the entire perception a customer has of the
organization. Most of the five star hotels challenge in working with customer service is to
ensure that they have focused fully on their attention on the right key areas, which are
measured by the right Key Performance Indicator (Reh, 2013). Key Performance Indicators
which is also known as KPI, help an organization define and measure progress toward
organizational goals. Once an organization has analyzed its mission, identified all its
stakeholders, and defined its goals, it needs a way to measure progress toward those goals.
Key Performance Indicators are those measurements. To illustrate, Dusit Thani Hotel know
that in order to survive they need to attract and retain guests. Therefore, key operational and
performance indicators are needed to improve satisfaction and presents evidence that
satisfying hotel guests yields a measurable financial return on investment. Based on the Dusit
Thani hotel survey, it determined that customer satisfaction directly bears on repeat purchases
and on the likelihood of making recommendations. However, there are four key performance
indicators particularly affected Dusit’s guest’s evaluation: reservation was accurate, check-in
was completed within five minutes, no problems were experienced during their stay, and no
billing errors occurred. Guests who experienced all four of these performance indicators were
most likely to grant the hotel a top satisfaction rating. Also, Dusit Thani employees have built
a strong relationship with their customers who are crucial for return business and positive
hotel reviews. Hotel customer service begins with a positive relationship between the guest
and the hotel employee. Therefore, for the employee to build a relationship with the guest is
by using listening skills and paying attention to what the guest says. Customer service is not
only about listening to the customers but it also about body language. Good hotel customer
service body language consists of eye contact, which let the guest know that they are being
listened to. For example, Dusit Thani employees greet a guest with a warm smile which help
the guest feel more comfortable and the hotel employee are more approachable towards
customers. Also, speaking clearly and confidently with the guests demonstrates
professionalism.
Furthermore, it is the service quality that is basically meeting or exceeding customer
satisfaction. To meet or exceed customer satisfaction and expectation, Dusit Thani must fully
understand all service attributes that contribute to customer vale and can lead to customer
satisfaction and building customer loyalty. The success of any hotel industry is all about
providing high quality services that meet up to customer satisfaction and reach up to their
expectation and eventually this can create customer loyalty. Therefore, every hotel main goal
is to build a customer loyalty because customer loyalty is the only proven way to compete
with rivals without having to forfeit revenue. For example, the percentage of repeat business
for Dusit Thani Hotel is 30 percent. Also, gathering constant customer feedback to make sure
the needs of the customers are being met will ensure loyalty remains strong. In addition, in
the area of hospitality, Total Quality Management (TQM) is a participatory process that
empowers all levels of work in groups in order to establish guest service expectations and
determine the best way to meet or exceed these expectations. Moreover, the concept of
service quality is widely discussed in the hospitality management. Quality in the hospitality
industry is defined as “the consistent delivery of products and guest services according to
expected standards”. As a result guests are willing to pay more when they visit hospitality
properties offering them with services that meets or exceeds their expectations (Kapiki,
2012). Furthermore, SERVQUAL is the most often used approach for measuring service
quality in order to improve the quality of service as experienced by means of comparison
between expected and perceived quality after the customer has received the service The
SERVQUAL has been efficient method used to measure consumers’ perceptions of service
quality. It is a technique that attempts to measure the five main characteristics of tangibility,
reliability, responsiveness, assurance and empathy. First is the tangibility are modern
equipment, visually appealing facilities and materials associated with the service, and
employees who have a neat, professional appearance. Second is the reliability is performing
services right the first time, providing services at the promised time and keeping customers
informed about when services will be performed. Third is responsiveness is providing prompt
service to customers and readiness to respond to customers’ requests. Fourth is assurance is
making customers feel safe in their transactions, employees who are consistently courteous
and employees who have the knowledge to answer customer questions. Fifth is empathy
which means giving customers individual attention, employees who deal with customers in a
caring fashion, employees who understand the needs of their customers and having the
customers’ best interest at heart (Kumar, n.d.).
Analysis
Dusit Thani use Market Matrix which is a customer satisfaction online survey that
helps company to measure the level of customer satisfaction. In this report, we will look at
the customer’s attitudes towards Quality Service.This part presents the 300 respondents’
attitude toward each aspect of qualityservice of Dusit Thani Hotel. This Attitude Profile
toward the QualityService of Dusit Thani covers both of the services of Front operation
andaccommodation provided by the Hotel. Service Quality which includes Reliability,
Responsiveness, Friendship and Assurance. Respondents were asked torate the following
statement about their attitude toward quality service of Dusit Thani Hotel. The meanings of
the scores are “1” equal to strongly disagree and “5”equal to strongly agree. Therefore the
statement which had the means score to “5”will be favorably preferred. The findings of the
Quality Service of each attributes were as follows:
Customers’ attitude toward the reliability in hotel accommodation
Average means score for Reliability in Hotel Accommodation = 3.1473
Analysis:
The customers expressed their agreement that guestrooms weremaintained with high
cleanliness with the highest means scores of 3.28 comparingamong other questions within the
same construct. The second attribute in qualityservice in term of accommodation was the
customers’ attitude toward the fullfacilities provided in guestroom with high standard
perceptions with means score of3.25. The third highest means was 3.21 concerned the billing
process of all outletswhich were very accurate, timely and understandable. However, the least
mean rating was attribute for quality service in the Accommodation Service was thecheck-in
process with a low means score of 2.92 means score, which was below theneutral point. This
rating could be the factor that pulled the means scores for thereliability in hotel
accommodation down to 3.1473, which was just above the neutralpoint. This means their
impression on the hotel accommodation is mainly acceptable.
Customers’ attitude toward the responsiveness in hotel accommodation
Analysis:
There were two attributes which got the highest means scores of 3.17concerned the quality
service in term of responsiveness in Accommodation with thestaff manners was very
welcome and readiness of the service provided as well as the24 hours room service which
was provided with good quality. The others twoattributes also got the same means scores of
3.15 concerned the staff’s prompt servicewhenever there was a problem with the
accommodation and the consistentlycourteous of the staffs. Therefore, the means score for
the responsiveness inhotel accommodation were 3.1592 which was little above the neutral
point. Thismeans that the customers were not so impressed with the quality service in term of
theresponsiveness in hotel accommodation.
Customers’ attitude toward the friendship in hotel accommodation
Analysis
The first attribute received 3.13 means scores concerning the hotel providedthe above
average level in decoration and experience, which made the customers feltlike they were in
Exclusive 6 star hotel. For the second attribute, which was asked aboutthe experience
whether they felt warm and felt like they were in luxury hotel or not,the mean of this
statement was equal to 3.15. This means that the customers were notfully impressed with the
warmth and luxurious of the hotel rather than the feeling ofbeing in Exclusive 6 star hotel.
The means score for the friendship inhotel accommodation was only 3.1367 which was above
the neutral point. It is likelythat these customers have been to many luxurious hotels in other
business trips but what Dusit Thani Hotel provided was just average or not extraordinary
orimpressive.
Customers’ attitude toward the assurance in hotel accommodation
Analysis
The assurance factor consisted of two attributes. The first attribute receivedthe means score
of 3.32, Dusit Thani Hotel was able to provide highprivilege in the guestroom to all 300
customers. The second statement also receivedthe good feedback, which had the means
scores of 3.29. The average means scoresfor the quality service in term of assurance in
accommodations were 3.3067. Thismeant that customers felt that they were in privilege
rather than in satisfaction whilethey were in the guestroom. Therefore, the means score for
the assurance in hotelaccommodation were 3.3067. It was above the neutral point, which
could meanacceptable at the minimum level.
Customers’ reference in hotel to others
1) Dusit Thani Hotel is one of the hotels
300
that I will recommend my friends and
family to stay
Valid N (listwise)
300
5
3.24
Analysis
From this statement, it means that the customers would likely recommendtheir friends and
family to stay in Dusit Thani Hotel. The meansscore for the reference in hotel were 3.24. It
was above the neutral point.
Customers’ attitude toward the responsiveness in the hotel Front operation
Analysis
300 customers rated their attitude toward the quality service in terms of
responsiveness in the Front operation. The highest score was focus to thecustomers thought
that Pre-arrival and Arrival segment insisted on error free recordsas the means scores equal to
3.21. The second attribute got means score of 3.18concerned the fast responses to hotel staff
problem. The last attribute was askedabout the staffs’ providing of good quality of service
with consistently courteous, themeans score for this factor was 3.17. The average means
score for the quality servicein term of responsiveness at the Front operation equal to 3.1833,
it’s above the neutralpoint.
Customers’ attitude toward the assurance in hotel Front operation
Analysis
The second attribute which was the customers’ feeling of confident in thequality of service
and support at the Front operation provided with means score of 3.27. While the least agreed
attribute rated by the customers were the feeling of high privilege while they were at the
Front operation with the means score of 3.20. So for this quality service in term of assurance
at Front operation, they average means score was 3.2544, which are above the neutral point.
Customers’ attitude toward the friendship at the hotel Front operation
This meant that the customers were impressed with the experience at the Frontoperation
rather than the decoration of the Front operation. Therefore, the meansscore for the friendship
at Front operation were above the neutral point, which havegot the mean score of 3.1533.
Customer Satisfaction toward Hotel both at Front operation and accommodation
The means score for the overall customer satisfaction toward DusitThani both at the Front
operations and accommodations were 3.20 whichwas above the neutral point.
For the market segmentation, Dusit Thani has divided their target market into many
groups as they are various groups of customers that the company wants to focus. But in this
report we will only be analyzing on the demographic factors of the 300 respondents.
Finally according to the research respondents’ profile, there are 2 groups
ofrespondents which are male and female, and I found that the male customers aremore than
female customers but female shows more level of customer satisfactionthan male if hotel
provides good quality service in term of responsiveness, assurance,reliability and friendship
for both at the Front operation and accommodation.
Mostly the age of male and female customers are 31-40 years old and for thosewho
age between 20-40 years old exhibits more level of customer satisfaction thanany other level
while those who aged above 50 or as they are older they will not be satisfy much though hotel
provides them with the good experience Front operationservice and accommodation.
Single, married, and divorced respondentsused Dusit Thani hotel for their leisure trip.
Customers who are married are morelikely satisfied if the hotel provides them the good
experience at the Front operationand accommodation in every term of quality service than
any other type of customers.Dusit Thani Hotel seemed to be popular to those who are
Japanese,American, and Europe, respectively, and also, it’s very popular to high-income
peoplewho earn more than 100,000 Baht per month. For those who have monthly income
higher than 80,000 Baht are more likely to satisfy with the hotel Front operation
andaccommodation than any others. Most customers who are using service at DusitThani
Hotel are educated, receiving Bachelor Degree certified but those who will be satisfy with
hotel quality service are those who have higher than bachelor degree.
In addition, one important factor that has relationship between quality serviceand
customer’s satisfaction is reliability in hotel staff. Customer satisfied that theguestroom was
maintained with high cleanliness, also there was full facilitiesprovided in the guestroom with
high standard perceptions, and the billing process ofall outlets is very accurate, timely and
understandable. Additionally, customers aresatisfied with the various services which hotel
Front desk offered with very goodquality and good perception. This point impressed
customers to feel like they are inan Exclusive 6 star hotels. However, the pre check-in
process does not run smoothlythat reduce the level of customer satisfaction.
Responsiveness in hotel staff is the third factor, which has some relationshipbetween
quality service and customers’ satisfaction towards Dusit Thani hotel. The staff’s manners are
of very welcome and always ready to service are thereason why customers are satisfied.
Customers are satisfied with the promptly serviceof staff and consistently courteous of the
staff. Moreover, the responsiveness of the front operations service are also important, for
example pre-arrival and arrivalsegment insists on error free records making customers
satisfied to the quality service, and if the customers have problems in Front desk, hotel staffs
can solve the problemwith high speed.
Furthermore, the last finding is the relationship between quality service interms of
assurance in hotel staff and customer satisfaction towards Dusit Thani Hotel. Customers
preferred Dusit Thani Hotel because of having highprivilege in the guestroom, and also feel
very satisfied when they stay inguestroom at the hotel. Additionally, customers satisfied with
the satisfaction of theFront operation and feel confident with quality of service and support,
including highprivilege.
Customers express some attitudes that Dusit Thani Hotel is one of thehotels that they
will recommend friends or family to stay since its received ratingabove the mean score. The
worth factors, which have relationship between qualityservice and reference towards Dusit
Thani Hotels, are in terms of friendshipin hotel staff, then reliability in hotel staff,
responsiveness in hotel staff, and assurancein hotel staff, respectively. This can imply that
customers will refer Dusit Thani Hotel to their friends or family, if customers feel that they
are satisfied to the hotelbecause of the experience and decoration of the hotel make them feel
warm and feellike they are in luxury hotel. In combination with the Front operation’s
experienceand decoration, it makes customers feel like they are at the Front operation
receptionof Exclusive 6 star hotels.
To conclude, the level of quality service of Dusit Thani Hotel is slightly above
theaverage mean to good score. The factors in both accommodation and Front
operationswhich were rated as the highest means score is assurance, while the lowest
meansscore but still above the average mean is friendship. Although the friendship
receivedthe lowest means score, there were connected or have some relationship
betweenquality service in terms of friendship in both accommodation / the Front
operationsand customer satisfaction towards Dusit Thani Hotel.
I have conducted an interview with the front office manager, Khun Wanchai Paksee
about the quality of communications with customers. Khun Wanchai said that the most
effective way to communicate with their customers of Dusit Thani Hotel is via email. He said
that emails has been a very essential communication tool in this age of technology, and with
the growing number of businesses doing transactions online, the email is indeed a great tool
in managing the business. To illustrate, Dusit Thani use email to communicate with their
employees, clients as well as their potential customers. He said that it has become very
convenient for them as they could send the same information via email to large number of
customer situated in different locations as email have a wide reach. Aside from its
convenience in sending information, they are able to keep a record of the transactions of their
hotel business. Keeping an archive of the mails was useful in terms of rechecking past
information and transactions of Dusit Thani. In addition, for Dusit Thani Hotel the one useful
way of getting potential customers is by email and they are able to introduce their new
product online. Dusit Thani website has got contact information like email to build credibility
and trust for their clients and customers. Also, it is a good tool to deal with customer queries
and feedback. Moreover, emails are also a great storage of Dusit’s client’s addresses,
potential customers, friends, employees and people that work together. The database of
contact information can also be conveniently retrieved anytime in the address book.
3. Internal Business Process
Internal Business Process





Strong CSR
- Earthcheck
- DSD Internship
Internal control system
- Customers give good response
- Staff give good response
Shares from 0.5-1 baht
Lack revenue management skills
Profitability unstable at the moment.
Internal Business process perspective
The internal business process perspective is one of the most comfortable areas for the
operational managers to work with because it is where they are most compatible.
Measurement in such area takes place on processes done by them on a daily basis. The main
aspect to this measurement is that it is where foundations are formed to drive the Business
forward to the satisfaction of customers. There are certain aspects that cover the Internal
Business process measurement.
To complete the balance scorecard for Dusit Thani their internal process must be evaluated.
And to evaluate their internal business process in respect to balance scorecard we need to
look at Dusit Thani’s Corporate Social Responsibilities, Direct business process and indirect
support business process.
Corporate Social Responsibilities
Corporate social responsibilities for Hotel companies like Dusit International is not just about
the compliance or requirements to be supplier but it is a positive message showing their
performance in playing their part to preserve this world which intern is a common trend
today. This might also lead to increase in appreciation by customers. CSR main
measurements include Health, Safety & Wellbeing, Environmental impact and Ethics. All of
this area covers Safety and security of employees, contractors, visitors, customers and the
planet.
The board of director said in the annual report that they take their CSR process very seriously
as one of its internal process management and it is measured for its efficiency every year in
the annual report. Dusit Thani also encourages their business partners, suppliers and
customers to follow the same value by implementing new CSR activities with analysis for its
effectiveness. Those campaigns include:
EarthCheck Programme
Dusit International knows that contribution to the well-being of the communities in which it
operates would be one of their primary priorities. Since hotel industry is one to be very
vulnerable to such judgement towards their care for environment by customers the more
Dusit Thani does for the environment the better. To advance their commitment to the
protection of the environment they have decided to undergo benchmarking by EarthCheck
programme in 2009 in order to receive independent and comprehensive proof of such actions.
Dusit Thani operates under the checklist of EarthCheck environmental actions if it is
satisfactory they will become one of the members of EarthCheck. However, if they can
provide good pollution control and power management they will be awarded Bronze, silver or
gold level certificate, which is certified by EarthCheck. So far Dusit Thani Dubai has reached
bronze level of EarthCheck’s certificate in 2009.
- Dusit and DSD (Department of Skill Development) internship in hospitality studies.
Tourism and hospitality industry has been a pillar for source of income in Thailand.
However, there seems to be slack in the adequacy of supply of such skilled workers. Dusit
International is well aware of this and its role and responsibility to come to an aid to this
aspect. Thus, Dusit International and Department of Skill Development or DSD under Thai
ministry of labor have found a common ground and start to implement this with the objective
of offering High school or diploma graduates who lack opportunities in self-development as
well as aid their country in strengthening the tourism and hospitality industry in Thailand.
The program is set to have durationof 12 months, which will provide knowledge in F&B
management, Kitchen management and housekeeping operations. In measurement of success
this program has produced 88 graduates all together from 2007-2010 and 70 more students
till 2012.
- Internal Control systems and internal audit
To assess the internal process for the balance scorecard and determine its performance some
kind of evaluation of the staff performance is required to do so. This is to measure the
satisfaction of the staffs at work as well as the productivity they can achieve. Even though
Dusit International has disclosed no real information, there is evidence of measurements with
in the company to assess such attributes of the organization.
Dusit International focuses its utmost attention on their internal control system to make sure
they are operating efficiently. Within these duties, responsibilities and authorities of
management will be well defined there are also implementations of the use of the companies’
assets in the most efficient way possible. This assessment will clearly separate staffs in their
operation, supervision and performance and will be evaluated individually to crosscheck with
each other and therefore balance the process of staff.
This obligation is delegated to the Internal Audit Department to examine their operations to
ensure that their core operations and significant financial activities of the companies by the
employees are in line with the directions of the management. After this assessment they are
required to send this directly to the Audit Committee and then to the Board of Directors. In
addition the internal audit head will be assessed directly by the Audit Committee.
According to the board of directors Dusit Thani excels in being a service provider. They are
believed to have quality staffs and services, which is one of the pioneers of Thai Hospitality,
which is in trend today. There have been good reviews from the customers on Dusit Thani’s
services and the comfort of their stay. With 60 years of experience in hospitality they can
provide a well standardized experience that can be trusted. We can also see that because of
such experience an educational institute has been forged to create new Dusit Thani standard
employees from scratch, imprinting in their blood the art of service in Thai heritage style.
However as of today Dusit Thani lacks in their revenue management. This can be seen in the
high fluctuation of revenue and costs that are drastically different almost every year with no
definite high and low. This is shown in their financial statement, as this is also a cause to
which the shareholders do not receive sometimes dividends.
Is said earlier there hasn’t been disclosed information about Dusit International’s staff
performance and efficiency other than the ROA calculated in the financial perspective.
However, the Board of Directors will assess this assessment. They said in their Annual report
of 2011 that. “The board of directors has performed self-assessments checklist to evaluate the
internal performance. The assessment results were satisfactory. The Audit Committee has
also performed self-assessment checklist which was also satisfactory to the chairman.”
- Shareholders
Dusit Thani’s Dividend policy is to pay dividends amounting up to 50% of their consolidated
net income by considering the result of operation according to their consolidated financial
statements including the result of their statement of retained earnings presented in the
company’s financial statement is to ensure that the shareholders receive the promised
dividend amount and their actual ability to pay such dividend and not oppose to the Public
Limited Company act of law.
In 2009 the company has paid their annual dividend operating at 0.50 Baht per share. They
paid in total 42.50 million Baht. This makes it difficult to calculate the rate of dividend
comparing to their net profit. However the company dissatisfied their shareholders in 2010
due to the flood situation in Thailand Dusit Thani ran into a loss. However now according to
their financial statement of 2012 their paid up share capital is 850 million Baht which is a
tremendous increase however the par value as of then was 1 Baht per share which also
showed promise. Their net profit margin has also increased from -3.54 to 3.15% today, which
is almost double. (Dusit International annual report, 2011). However the company’s net profit
has dropped from 18104 million in 2012 to 31042 million in 2011. According to the chairman
this was because of the expenses that went into the developmental activities and promotions
of Dusit Thani’s expansion.
- Internal Development
Dusit International has relocated their General Managers as a part of their company’s longterm strategy to develop key talents and executives. Dusit Thani Dubai GM James Wilson
has replaced general manager of the Dusit Thani Bangkok Alex Willat. Willet also replaced
Dusit Thani Manila GM Prateek Kumar mean while Kumar takes over for Wilson in Dusit
Thani Dubai. “It is essential that we have a ready pool of Dusit International general
managers ready to take on assignments at any of our properties globally. This move is part of
our overall succession planning and an essential process in building internal excellence. I
congratulate all the concerned executives and look forward to working with them in their new
roles,” said Dusit International managing director and CEO Chanin Donavanik. This is
believed to enhance managerial experience between Dusit Thani’s general managers. This
change also showed high satisfaction and corporation from the General Managers as well as
add to employee’s belief that their currier path will be the same. (Edgumber, 2012)
- Awards
One of the main performance indicators is an award. Dusit Thani Bangkok has won first prize
in the category of Asia’s Leading City Hotel’s in the World Travel Awards of 2012, at an
award ceremony held in Singapore on the 18th of October 2012.
General Manager Alex Willats said, "We're delighted to have won this award for the second
year in succession. We've been a leading hotel in Asia for many years and to receive the
award is testament to all the hard work and service that staff has put in and is good
recognition of what the hotel and company have achieved over the past 60 years since
they’ve been in existence." (Dusit Thani Bangkok, 2012)
DusitD2 and Royal Princess in Chiang Mai recognized by EarthCheck
DusitD2 Chiang Mai and Royal Princess Chiang Mai hotels have received Silver star
benchmark status from the world’s leading sustainable travel and tourism certification
organization for their strong for their persistent commitment in implementing environmental
conservation practices.
Dusit Thani Laguna Phuket received “The Smoke-Free and Health Promotions Hotel Golden
Star Award 2011-2013”
Dusit Thani Laguna Phuket received the Smoke-Free and Health Promotions Hotel Golden
Star Award of 2011-2013, from Green Leaf Foundation in cooperation with the Thai Health
Promotion Foundation for a strong dedication towards environmental preservation and health
promotion.
4. Learning and Growth

Since tourism is one of the vital parts of the Thai economy, and the future of tourism
depends greatly on hospitality education in order to meet the growing demands of
tourists and the tourism industry. Thailand represents the warmth and charm of
hospitality. The Dusit International operates the Dusit Thani College which is the
premier institution that brings these concepts through superior service and excellence
in South East Asia. As part of Thailand’s leading five-star hospitality group for over
40 years, the programs offered at Dusit Thani College enable students to enter
employment with the potential of making an immediate positive contribution.
Dusit Thani College has developed strong relationships with international institutions.
The institutions that are collaborating partners with Dusit Thani College are ASO
College Group, Japan, Ecole Hôtelière de Lausanne, Switzerland, Le Cordon Bleu,
France, Lyceum of the Philippines University (Manila, Cavite, Batangas and Laguna),
The Hong Kong Polytechnic University, Hong Kong, Tsuji Culinary Institute, Japan,
University College Birmingham, England, William Angliss Institute, Melbourne,
Australia. Partnering with these institutions gives Dusit Thani a chance to recruit
international as well as local employees that have been professionally trained. It also
gives them a chance for cultural exchange between potential consumer markets.

Dusit International treat their people as their most valuable asset, so they will be
offered the Compensation and Benefit Plan including : competitive pay and benefits,
well-tailored uniforms, career development programmes, career advancement job
training, job rotation, complimentary meals and more. They offer a management
trainee program for high-achieving graduates. The program takes an ambitious
graduate to a management role through intensive on-the-job training, field practices,
and industrial placement within Dusit International’s hotels across the region.
Through a strict process, they have to attend a year long program, comprising 17
intensive training units such as Sales & Marketing, Public Relations, Food &
Beverage, Reservations, Human Resources, Finance, Front Office, Operations and
others. The trainees will be inducted to the company’s business, strategy, and learn
about the finer points of Thai hospitality and service as epitomized in our Dusit Brand
Promise. After finishing the program, the trainees will have the opportunity for
placements in a position that best suits their interests and competencies at their
designated hotels.

Dusit International plans to expand its wings in the Middle East to operate 15
properties by 2015. Although the brand currently operates five properties in the
region, including Dusit Thani Dubai, Dusit Princess City Centre Dubai, Dusit
Residence Dubai Marina, Pearl Coast Premier Hotel Apartments, as well as the Dusit
Thani Lake View Cairo in Egypt, but they also have future plans to open hotels and
resorts in Abu Dhabi, Saudi Arabia, Bahrain, Oman, and Qatar within the next three
years. The success of their expansion into the Middle East will help pave the way for
Dusit’s future expansion in the rest of the world and provide the drive to pursue new
growth opportunities in other markets.

Dusit Thani Manila launched the state-of-the-art monochromatic beige-colored
repainting of Dusit Thani Manila’s façade to complete its extensive US$20 million
renovation; they continue to endeavor in creating new reinventions for its guests. This
time, with a Patrick Blanc-inspired vertical garden that does not only bring an artistic
beauty to the surroundings of the hotel but most importantly, has a significant impact
on environment and atmosphere. This Vertical Garden design specifically lowers the
temperature at the driveway of Dusit Thani Manila especially when the afternoon sun
rays hit the entrance. At the same time, the water feature helps cool the air that passes
through the open spaces between walls. They also took into consideration the healing
capabilities of plants, the ones that emit more oxygen, take away pollution and reduce
carbon monoxide in the air.
Having recently received a Silver certification for 2012 by EarthCheck, a globally
renowned organization that grades environmental standards, Dusit Thani Manila
continuously thrives to save Mother Earth through its green initiatives. This shows
that they are taking initiative to be innovative for the target market.
FINANCIAL
RETURN ON ASSETS (ROA)

Dusit’s ROA has slightly increased
from 0.89% in 2011 to 1.78% in
2012.

Shangri-La’s ROA in 2012 is at
2.20%
RETURN ON EQUITY (ROE)

ROE of Dusit has increased from
0.79% in 2011 to 3.8% in 2012

Shangri-La has increased its ROE
To 2.09% in 2012 after they
INTERNAL BUSINESS
PROCESS
made a loss in 2010 and 2011.
CUSTOMER
Dusit Thani use Market Matrix which
is a customer satisfaction online

survey that helps company to
measure the level of customer
satisfaction
 Average mean score for
TRANSLATING
VISSION AND
STRATEGY: FOUR
PERSPECTIVES
Reliability in Hotel
Accomodation = 3.1473
 Average mean score for
Responsiveness in
Accomodation = 3.1592
 Average mean score for
Friendship in
Accommodation = 3.1367
 Average mean score for
Assurance in Accomodation
= 3.3067
 Customers reference in hotel
to others = 3.24
To evaluate their Internal business
process in respect to balance
scorecard we need to look at Dusit
Thani’s Corporate Social
Responsibilities, Direct business
process and indirect support
business process




LEARNING & GROWTH
•
The operation of the Dusit
Thani College
•
Strong relationships with
international institutions in
Japan, Switzerland, France,
Philippines, Hong Kong,
England and Australia.
•
Compensation and benefit
plan for employees
•
Management trainee
program- a year long in 17
training units

Strong CSR
- Earthcheck
- DSD Internship
Internal control system
- Customers give good
response
- Staff give good response
Shares from 0.5-1 baht
Lack revenue management
skills
Profitability unstable at the
moment.
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