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Internal Factor Evaluation MatrixThe following table represents an internal factor evaluation of the Shangri-La Hotel Group.
Internal Factor Evaluation Weight Rating Weighted
Internal strengths Score
Good staff training 0.025 3 0.075
Construction company belongs to the group 0.10 3 0.3
Leader in Asian Market 0.20 3 0.6
High level of service 0.20 4 0.8
Location of the hotels 0.10 3 0.3
Growth 0.20 4 0.8
Internal weaknesses
Increasing operational costs 0.10 2 0.2
Main focus on Asian Market 0.025 1 0.025
Only accessible by mid to high income individuals 0.05 1 0.05
Total 1 2.6
Table 1: IFE Matrix – Shangri-La
At a first look, the total weighted score of Shangri-La is 2.6. This index number indicates that the
company has a strong internal position, meaning the company is powerful and performs well in the
market.
Starting with the first strength, Shangri-La has good staff training. This can be proved by the fact that
more than eight thousand employees have graduated from the Shangri-La academy in Zhuhai, Mainland
China. The fact that the employees of the group are trained has resulted in a very low employee
turnover of respectively 24%, compared to the industry average of more than 35%. The previously
mentioned is considered to be a strength because low staff turnover generally reduces HR costs and
leads to a high level of labor efficiency; it is also why the selected weight is of 0.025 and the rating is 3.
The hotel group has its own construction company. This benefits the company especially because it
reduces costs significantly and the risk of conflict if the projects are not compatible with the
construction outcomes. The selected weight of 0.10 and the rating of 3 are given because of the
uniqueness of the strength amongst other competitors. There is no known significant competitor which
also has its own construction company.
Considering the market capitalization of Shangri-La against its main competitors in the Asian market like
Mandarin Oriental International, Hongkong and Shanghai Hotels and China Lodging Group, it ranks the
highest with a total of $ 3.837 Mil. This is also the reason why it has a weight of 0.2 and a rating of 3.
The high level of service is one of the greatest strengths of Shangri-La. It can be proven by guest reviews
on websites such as Tripadvisor or booking.com. This strength is encompassed in the mission of the
hotel group as well, which states that the company wishes ‘to delight our guests every time by creating
engaging experiences straight from our heart’. This mission is supported by a recent change in the hiring
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