1.0 INTRODUCTION
Tune Hotels was founded in the
"tune legacy group" consisting of Air Tune (Air Asia), Tune hotels,
Tune Talk Mobile Prepaid, Tune Money, Tune Sports, Tune tones. "Tune
legacy group" founded by renowned Malaysian entrepreneur with big dreams
to Asia. With a red theme that began with the Air Asia, leading all the
passengers to the destination with low cost fares, strong alliances with this
tune hotel. Each destination there is also the location of Air Asia also the
location of Tune Hotel. Tune Hotels is a
limited service hotel chain that provides "5 Star Beds at 1 Star
Prices". tune hotel provide high quality, affordably priced accommodation
with primary focus on the basic essentials: 5 star comfortable beds, power
showers, hotels located in central and convenient areas, a clean environment
and 24 hour security. Currently, tune hotel are located across major countries
within Southeast Asia and the United Kingdom, with new hotels opening in areas
such as Australia, China and India.
Similar to the demand based, consumer
friendly business model used by Air Asia. Asia's leading and largest low cost
carrier tune hotel employ a web-based
online booking system, encouraging guests to plan ahead and book early to enjoy
significantly lower room rates and the flexibility of customizing their
accommodation amenities during their stay
2.0 THE STRATEGIES APPLIED TO EXPEND ITS BUSINESS
INTO THE GLOBAL MARKET (INDONESIA-PEKAN BARU)
TUNE hotel was established at the
international level for the convenience of users Air Asia. Low-cost aircraft
lessor can provide low-cost accommodation. This is in marked contrast to their
closest competitors. users to the destination, for example to destinations in
bali Indonesia, they can immediately book a hotel with all booking their
tickets using Air Asia. This is a convenience and great savings for users. Let us note that there are a number of
hotels in the Develop the tune hotel in Asia region, there are more than 30
hotels that are available in the Asian region. There are 9 hotel in Indonesia.
2.01 PESTEL ANALYSIS.
The strategic
use by Tune hotel is Strategic alliances. Tune hotel use Air Asia as a good
alliance. Although Tune Hotel and Air Asia is in a same parent, this is an
advantage to Tune hotel booming overseas. Countries selected for this study is
Pekan Baru Indonesia. Why did they choose Pekan Baru as the site of the
building blocks of their hotel? This is the beginning is Air Asia provides
cheap airfare to Pekan Baru, not able to provide a cheap hotel for the
passengers of Air Asia. This is what makes Tune Hotel to take this opportunity
to open a low-cost hotel for the passengers of Air Asia. What's great about
this strategic alliance is the passengers can book hotels at the same time what
when booking an airline ticket. Now we use PESTEL analysis below to examine why
Tune Hotels to open new hotel in Pekan Baru. We will use PESTEL analysis in
identifying problems and factors affecting the industry. Specifically PESTLE
analysis is a tool to understand the risks associated with all forms of growth
or decline in business, and also the position, potential and strategic
direction for the business or organization. PESTLE analysis tool sometimes used
as a generic orientation, to find out if an organization within the context of
the environment with everything going on out there at the same time giving
influence to the organization.
2.011 POLITICAL FACTOR
Political factors refer to
government policy such as the degree of intervention in the economy. The
subsidy provided by the government, the goods and services provided by the
government against the Tune Hotel. Political decisions can give to many
important areas such as education in the business of the workforce, the
country's health and quality of economic infrastructure such as roads and
highways are best provided by the Indonesia government. Stable political
influence is one of the branches of PESTEL analysis. The peace of a country
will guarantee a country's economic growth will increase, thereby causing the
strategy to be carried out by the organization are fully achieved. Political and
social events that occurred in Indonesia now have the most impact on profit
business activities in Indonesia. Tune Hotel can take advantage of this.
Indonesia has experienced a stabilization of the democratic process, which
resulted in a range of social and political. events that gave
rise to the political balance in Indonesia . In principle there is no strict
law relating to hotel industry in Indonesia.
2.012 ECONOMIC FACTOR
Economic factors have a significant impact on
how organizations do business and how profitable TUNE hotel. These factors
include economic growth, interest rates, exchange rates, inflation, the
disposable income of consumers and businesses and so on. These factors can be
further broken down into factors macro-economic and micro-economic. Factors
that deal with the management of macro-economic demand in any given economy.
The Indonesian government interest rate controls, tax policy and government
spending as their primary mechanism they use for this. Rapid economic growth in
Indonesia Connections Career opportunities to encourage the residents of the Pekan
Baru. Addition of Hotels in Indonesia is encourage the impact and allow workers
to be taken entirely Pekan baru residents, due to the same culture.
2.013 SOCIOCULTURAL FACTOR
In the socio-cultural factors, is an asset
to Tune hotel because of the culture and language are very similar and eating
is the same. This is an advantage taken by the Tune hotels. It is trivial for
Malaysia people who go to a country, culture to culture and nutrition of their
choosing. but the location of this "tune hotels" in Pekan Baru, is
one of the most strategic locations and benefit the Tune Hotels.
3.00 WHEATER ITS BASIC INTERNATIONAL
STRATEGY IS : GLOBAL STANDARDIZATION, LOCALIZATION, TRANSNATIONAL OR
INTERNATIONAL. CRITICALLY DISCUSS WHETHER YOU THINK ITS STRATEGY IS APPROPRIATE
OR NOT?
A business strategy can be explained to
the action of an organization to achieve the goals of the organization or firm,
the answer is taking charge of implementing a process is the manager. Or how to
achieve profitability. This profit is the rate of return on capital that has
been made for an investment. What the Tune Hotels is to add value to their
products so that customers are willing to pay more for it to reduce costs by
implementing :
aa) strategy
differences
What is the
difference strategy used by Tune Hotel? an answer is on a shared service to its
customers also combined with Air Asia, which enables its customers
to
choose Tune hotel compared with other hotels. between different services with
competitors Tune Hotel is:
-
5
STAR BEDS
Tune
Hotel beds feature high quality spring mattress beds with pillows, pillowcases,
bed sheets and 250-thread count duvets, custom-made for our requirements by bed
makers who supply 5-star hotels - the basis of our promise for 5-star beds
-
POWER
SHOWERS
Each of Tune Hotel rooms feature ensuite
(attached) private bathrooms with high-pressure, heated Power Showers. So even
though you're paying minimal room rates, you're still enjoying premium showers
in maximum privacy.
-
CENTRAL
& CONVENIENT LOCATIONS
All Tune Hotels are strategically
located close to major shopping, sightseeing and business destinations. Nearby
each hotel, you'll find established convenience store operators and food &
beverage outlets to give you reliable facilities within easy reach.
-
CLEAN
ENVIRONMENT
Tune Hotel provide housekeeping services
to ensure Customer have a clean and pleasant stay with Tune Hotel.
Through customer affordable
pay-as-you-use system of add-ons for energy-consuming facilities and amenities,
Tune Hotel try to help you conserve both Customer funds as well as the earth's
resources.
-
24-HOUR
SECURITY
Tune Hotel use electronic key card
access into rooms, CCTV cameras, round-the-clock on duty reception staff and no
access to the main lobby without a keycard past midnight
.
ab) the
lowest cost strategy
This
low-cost strategy plays an important role in the success of the Tune hotel. how
is not, per passenger using Air Asia will continue to use the services provided
by the hotel Tune Hotel. they can book directly when booking their tickets. Let
us look at the price comparison between the two that become competitors Tune
Hotels:
Tune Hotels
which operate internationally to expand the market for their product offerings
domestic, to international markets. Recognizing the Indonesian economy similar
to Malaysia, this enables the hotel and effective strategic planning can be
carried out efficiently and effectively. Realize greater cost economies from
experience effects by serving the global market to grow from a central
location, thereby reducing the cost of value creation. Get a greater return by
leveraging any valuable skills developed in foreign operations and transferring
them to other entities in the Tune hotel operates a global network. Tune hotel
can also expand the market and harness products and core competency. Core
competencies enable the Tune Hotel to reduce the cost of value creation and /
or to create perceived value in such a way that the premium price possible. The
success of Tune hotel that evolved in this way is based not only on the goods
or services they provide, but also on their core competencies, skills in Tune
hotel with the competitors cannot easily fight or imitate them.
Transnational strategy is a strategy
trying simultaneously to achieve low costs through location economies,
economies of scale, and learning effects. Differentiate product offering across
geographic markets to account for local differences. Foster a multidirectional
flow of skills between subsidiaries of different companies in the firm's global
network of operations. Transnational strategy makes sense when cost pressures
are intense, and at the same time, hence the pressure for local responsiveness.
An international strategy involves
taking products first produced for the domestic market and then selling them
internationally with only minimal local customization. When there are low cost
pressures and low pressures for local responsiveness, an international strategy
is appropriate.
A localization strategy focuses on
increasing profitability by customizing the firm’s goods or services so that
they provide a good match to tastes and preferences in different national
markets. Localization is most appropriate when there are substantial
differences across nations with regard to consumer tastes and preferences, and
where cost pressures are not too intense.
4.00 ASSESS ONE ASPECT OF THE EFFECTIVENESS
OF ITS INTERNATIONAL OPERATION ( EXAMPLE, ORGANIZATIONAL STRUCTURE, MARKETING,
ADVERTISING AND PROMOTION, PRODUCTION OR MANUFACTURING, HRM)
Although the expansion of a firm or
organization that plays an important role at the international level, there are
several factors that contribute the effectiveness of a particular firm of Tune
Hotels. of which contribute to the effectiveness of it is:
aa) Marketing
A
marketing plan that was launched by Tony Fernandes, Chief Executive Officer of
Air Asia has developed from a budget allocation of $ 100,000 was made to
develop the product, price, distribution and promotion strategies. Supply of
Tune Hotels' gross settlement Peripheral to low-cost, limited room service,
there is an option at the discretion of the order intake, storage, information,
and other additional cost. Air Asia Partnership Become a partner hotel, Tune
Hotel reservations can be made through the office while booking Air Asia
flights to Kuala Lumpur
bb) Advertising
Inflight
video advertisement would be shot to be screened to all Passengers Air Asia
from Malaysian and international Destinations .
Print
ads would be given in The Star , Malaysia's most widely -read newspaper being
printed in KL .
Billboards,
one at each location , would be positioned at the LCC terminal exit and play in
KL .
cc) Organizational
Structure
Tune
hotel is a combination in the Tune legacy that consists of
1
- Air Asia
2
- Tune Talk
3
- Tune money
4
- Tune sports
5
- Tune tones
This
combined group is strengthening its position and strengthen strategic planning
carried out by the Tune Hotel.
Diagram 2 : organization structure
5.00 WHAT ARE THE MAJOR CHALLENGES IT
FACES IN THE GLOBAL ARENA?
There are challenges faced by an
organization when opening or expanding their business globally, is also facing by
the Tune Hotel. In essence, the organization that developed in The Global stage
will be struggling to adjust them in the global arena. We will try to clearly
understand the challenges faced by global organizations. The challenges faced
by every organization is different from each other, it depends on the
efficiency of an organization that can adapt them globally. High capital
injection plays a key role in this development. Sometimes Despite an injection
of huge capital, there are still problems in terms of managing strategy,
people, costs, and risks on a global scale.
5.01 Strategic confidence and stretching
As a leading global clear strategic benefits,
the ability to access the market for new customers, new suppliers, and new
friends. These benefits can also make a fast secondary. Building a customer
base in new markets, for example, provides familiarity and relationships that
may allow additional investment in research.
But also bring a global strategic
challenges. Many companies find it increasingly difficult to be a country that
is flexible and adaptable as they expand their global footprint. In particular,
the process for developing strategies and allocating resources may be
struggling to cope with the growing diversity of markets, customers, and
channels. in global companies believe that their employer is better than local
competitors to understand the operating environment and customer requirements.
5.02 The assets and challenges
We strongly believe that the vast reserve
of skills, knowledge and experience in the company's global workforce they
represent an invaluable asset . But making the most of the assets that
difficult : for example, organizations that are not good at teaching in a
transfer to other emerging markets .At the same time, many organizations find
implementing and developing talent in emerging markets to be a major challenge.
In global companies, the depth of thought of their stitching effect on
recruiting , retention, training , and development processes for different
geographical areas. An emerging market leader in a global society will be
processed during the grace of candidates who have been to the local school ,
understand the local culture , and can carry out their duties effectively on a
call with head office in the. middle of the
night . This process is designed to select for people who understand the local
market . For emerging markets , subordinates who
works with superiors who are not from their country or local , will contribute
to some extent to the decline in sales . This is because of the attitude of the
local people who prefer to employers or superiors among them . aware of the
impending global organization , the local brands will be stronger product
offerings .
5.03 The scale and scope of benefits ,
the cost of complexity
Global companies are still able to enjoy
the economic benefits of investing in infrastructure partnership consisting of
the centers of R & D for the
procurement function. Economies of scale in shared services is also important,
though no longer unique to a global company , although most local can outsource
business services and manufacturing and leveraging cloud-based computing .
But global companies grow larger and
more diverse, the cost of increased complexity is inevitable. Efforts to
standardize the common elements of vital functions, such as sales or legal
services , may clash with local requirements. And emerging markets complicate
things, such as the operation is in there sometimes chafe at the cost they must
bear as part of a group based in developed countries : their share of expenses
centers away and may not be clearly visible help , corporate and regional cost
of complying with global standards and align managers across a vast geography ,
and loss of market agility imposed rigid compliance with global processes.
5.04 Diversification of risk and losing
habit
A global company
benefits from geographically diverse portfolio of businesses that provide a
natural hedge against fluctuations in local growth , country risk and currency
risk . And follow emerging market opportunities to take global companies deep
into an area with no known risk that many find difficult to assess .global
organizations have the right risk management infrastructure and expertise to
support the global scale and diversity of their operations.
Furthermore, global
standards , a comprehensive risk management process may not be the best way to
deal with risk in a market where global organizations need to move quickly to
lock in an early opportunity . An executive at an outpost - emerging markets in
a global company tells us " the mind- set that ' this is the way we do
things around here ' is so firmly embedded
in our risk process . When combined with the fact that the organization does
not fully understand the emerging markets, it means that the risk we may reject
global opportunities .
5.05 The choice of entry mode
This problem often arises by
organizations that want to go global , entry mode selection to choose suitable
for their organizations to succeed globally. This election is very important
for the organization . Proper strategic planning is required, prior planning
and research should be done on a global level . Once an organization has
decided to enter the overseas market , there are various options open to him.
These options vary with cost , risk and the degree of control that can be made
on them. The simplest form of export entry strategies using either directly
or indirectly as agent, in the case of the former , or countervailing , in the
second case. More complex shapes, including global operations which may involve
joint ventures, or export processing zones . Having decided on the form of
export strategies, decisions need to be made in a specific channel. Most
agricultural products from raw agent or use of commodity , distributors or
involve the Government, while the materials are processed , while excluding
this , rely more heavily on more sophisticated forms of access. The entry mode
is often used to choose are :
1 ) Exporting
2 ) Licensing or
Franchising
3 ) Joint
Venture with a local Company
4 ) New wholly
owned subsidiary
Different modes of entry may be more
appropriate under different circumstances, and the mode of entry is and
importance factor in success.
3205
words
6.00 REFERENCES
1. .Maimunah
Aminudin (1993) Human Resources Management 6TH Edition
2. Thomas
Davenport and jeannes Haris, Competing on Analytic, HBS Press 2007
3. J.
Hendry “The Problem with Porter`s Generic Strategies” European Management
Journel, December 1990
4. De
Geaus, “Planning as learning” HBR March May – june 1989
5. H.Mintzberzh
“ Crafting Strategy” HBR July – august 1987
6. International
Business , An Asian Perspective,
hill,wee,udyasankar
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