zpCUbhkAlqAxZqsAqVw3Z_Q0I18 Sumber Perkongsian Ilmu ©: Tune Hotel Case Study - comprehensive analysisgoogle0d30047a50102498.html

Sabtu, 3 Mei 2014

Tune Hotel Case Study - comprehensive analysis


          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

    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.


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.


            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.

  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.

    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. 

     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.
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.
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.

   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

        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

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
7.      www.tunehotel.com , company profile

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