Strategic Analysis of Pearl Continental Pakistan

Summary: A strategic business analysis of Pearl Continental Hotel, located in Pakistan. Explores history, weaknesses, strengths and future prospects.

COMPANY PROFILE Our vision We are committed to dynamic growth and service excellence built upon our heritage of traditional hospitality. We strive to consistently meet and surpass guests, employees and others stakeholders expectations. We feel pride in making efforts to position Pakistan in the forefront of the international arena. Our Core Values - G.R.I.T Growth & Development Recognition & Reward Innovation Trust Recognition and Reward Achievement orientation Performance-based evaluation Appreciation Incentives Setting ever-rising standards of performance Innovation Listening and two-way interaction Participation Encouragement Motivation Enterprises Trust Cooperation Support

Teamwork Sense of ownership Empowerment Integrity Dignity Respect Candidness Growth & Development For All Competence and contribution as the only basis for job security Promotion from within Learning environment and opportunities Provision for world-class education and training Aligning people with latest technological trends INTRODUCTION TO PEARL CONTINENTAL History The Pearl continental chain in Pakistan is owned by the Hashwani group under the holding company Pakistan Services Ltd (PSL) and Hashwani Hotels ltd respectively. The Pearl chain was acquired by the group in 1985, at a time when the image of the hotel was deteriorating due to service inefficiencies. At this time the name of the hotel was changed from Hotel Intercontinental to pearl continental, and several efforts were made to upgrade its image. These included a new dcor and fresh landscaping of the hotel grounds as well as upgrading of food and service through training of relevant personnel. Pakistan Services Ltd. is one of the companies of Hashoo Group that owns five hotels and was incorporated in 1958 and is quoted on the Karachi Stock Exchange. The first hotel pearl continental (PC) was built in 1964 in Karachi. In 1967-68 PC Lahore and Rawalpindi came in to existence respectively and in 1975 another PC hotel emerged in Peshawar. In 1985 Hashoo Group took over this company through privatization and changed the name from Inter Continental to Pearl Continental (PC). In 1990 PC Bhurban came into operation, in 1995 the expansion of Lahore was in operation. Pearl Continental Hotel is the largest and Pakistan's only five star chain

The board of directors felt that future expansion of the holding company PSL should not be focused on the hotel industry but also be related with tour operations, rent-a-car services and travel agencies. Accordingly a travel agency, Trans Air Travel, based in Karachi had recently been acquired. Hotel Information Location Ideally situated in the five star district of Pakistan's commercial capital, and a 20 minutes drive from Quaid-e-Azam International Airport. Rooms The 290 guest rooms comprising of 18 Executive suites, four super deluxe suites and 30 Executive Rooms are all designed to provide the utmost in comfort. All rooms are equipped with satellite television, in-house movies and modern amenities. In fact, every facet and facility required by the discerning travelers is catered to. The room division offers the ultimate in luxurious living with 24 hours in - house movies, satellite music and 30 channel satellite television networks. Room Service operates round the clock caring for all the travelers' needs. Fulfilling the smallest of requests to urgent needs, the roomservice assures inhouse guests of the best quality of assistance. Personal facsimile machines are available in all suites and executive club's rooms ensuring complete privacy and confidentiality. Business Centre & Secretarial Services are also available throughout the day and up to midnight. Restaurants & Lounges We pride ourselves on the quality, presentation and health benefitsof our carefully designed menus. Whether you decide to taste our fine cuisine in the hotel or satisfy your taste buds in our Chandni Roof Top restaurant, our master chefs always select only the freshest of foods and ingredients. MARCO POLO: Lobby level, overlooking the swimming pool, offers a wide range of cuisine from around the world. It is open for breakfast, lunch and dinner (alacarte). TAI-PAN: Lobby level, featuring exotic Chinese cuisine. Offers authentic Chinese schezuan and Cantonese style of cooking. The chefs have been specially flown in from mainland China. It is open for lunch (buffet) Sunday to Thursday and dinner (ala-carte) every night. BISTRO: Lobby level. Provides round the clock service of snacks and beverages in the most popular chic and affordable restaurant in Karachi.

GRAPEVINE: A Sunken coffee shop in the lobby, serving light snacks, high-tea, juices, tea & coffee from 10:00 AM to 10:00 PM. A live band plays throughout lunch and dinner here. CHANDNI: Our rooftop restaurant, provides a glorious view of the city by day or night. A perfect venue for executive lunches and romantic dinners for two. The restaurant serves buffet lunch and dinner throughout the week. Ala-carte menu is also available and the Chandni specializes in Continental and Pakistani cuisine which excels and out shines any cuisine served in Karachi. Business centers The spacious and efficient business centre of the pearl continental Hotel Karachi is conveniently situated at lobby level. It offers services of international direct dialing, fax, e-mail, internet, photocopying, typing with laser printer and telex. The experienced staff has been chosen to give the guest maximum satisfaction, service and courtesy. Health club The Health Club and Recreational area has recently been renovated and expanded. Latest exercising machines provide the best callisthenic outlet. There are also three air-conditioned squash courts plus two hard court tennis championship courts of international standards. The health Club & Recreational center has an outdoor temperature controlled swimming pool measuring 20 meters by 9 meters depth. Other Health and Recreational Facilities include:

Health Club with Gym * Suana Aerobics * Calisthenics Low impact cardiovascular workout * Heated outdoor Swimming Pool Jacuzzi * Air-conditioned Squash Courts Steam Bath * Tennis Courts

Services & Facilities The Pearl Continental Hotel offers complimentary airport shuttle service including travel desk facilities and provides hotel links to all major international cities having membership of Leading Hotels of the world consortium. Within Pakistan, Pearl Continental Hetels offers 5 star deluxe service in all the major cities of Pakistan through its nation-wide chain of Pearl Continental Hotels Pakistan.

The hotel features over 30 Channel Satellite TV, In-house movies, Fax machines in all suites and executive club's rooms, International direct dialing, Exclusive electronic safes, Non-smoking floor, Centrally air-conditioned environment, Beauty Salon/Barber Shop and a Shopping arcade. Besides these the following services and facilities are available to our guests:

Laundary/Dry Cleaning * Jewellery and Gem shops Travel Desk * Parking Authorised Money Changer * Baby Sitting Airline Offices * In-House Doctor Florist * Bookstore Business Centre * Pharmacy 24 Hour Room Service * Car Rental

SWOT ANALYSIS Each Hotel has its own SWOT based on their location, season etc. As for the SWOT Analysis of PC Karachi is concerned SWOT Analysis is basically done to find out that do they have sufficient resources to cover their weakness and still achieve their objective" Strengths

One of the major strength of PC is that PC is in the hotel market for the past 36 years. Have most experience employees available at suitable job, which have proven their loyalty with PC. PC as compare with its other competitions share the advantage of having 300+ luxuries rooms with big bathrooms which no hotel in Pakistan is able to accomplish. PC carries out loyalty program such as keep track of its customers. Keep history record of customers who avail the roomfacilities. Records like if a customer prefer something different in his/her room as compared to there customers, that is kept in record and when the same customer returns after sometime, his requirement made in history is available which then turns into customers satisfaction as he does not need to specify his requirements all over again. Major strength in identifying the name of PC as a continental hotel has been played by PC Bhurban. PC bares the great advantages on the performances on maintaining good health clubs, swimming pools, squash courts, tennis courts and all other sports activities. It also maintains excellence in good quality food restaurants. The major strength of PC is its voice mail card locking system for perfect security.

The strength of PC can be the weakness of other hotels as well as the weakness of PC it self in some sectors. *PC has a long lobby, which helps it not to look crowded - Sheraton small lobby. Weaknesses As fashion changes need, demand and idea also changes.

As PC being an old hotel in history bares a difficult weakness, as old customers do not prefer to visit the same hotel over and over. They prefer to experience something new. The well known saying "OLD IS GOLD" turns out to be the strength of this hotel as it diverts the attention of its customers back to the luxuries provided as some people are use to the atmosphere. The other weakness of PC lies in its telephone system, which is again an old system. As Sheraton enjoys the great advantage of having latest technology that is it Tele- communication system.

Opportunities The opportunities that PC faces are not much due to its well-established position.

Events organized in the city gives PC Karachi a great advantage as number of customers/people increase and PC get an opportunity to show its loyalty and services to its customers. One of the opportunities grasped by events being held in the city is that as tourist increase and in the same way people book rooms and avail services rendered by PC. Seminars are again a great opportunity for PC as world wide seminars are being held in the city or in PC Banquet halls which again help PC to show its quality services and in this way people across the world come to the city and book rooms for themselves. Parities wedding and other extra circular activities are opportunity to help PC recognize its name. PC looks up to these opportunities whole-heartedly.

Threats If in the market there are more than two or more brands of the same type or there exist an alternative for that product then organization/companies face threats among themselves or among customers but one can always plan before hand.

Threats of new entrants like Islamabad Serena is a threat for PC but PC have planned different alternatives for its threats.

One of the biggest threats PC has to face is Sheraton being its next door neighbor. As if things don't work with customer at PC like if they bargain for a room and PC is unable to fulfill their satisfaction then they can always walk across the road and just knock. Law and order situation can also be a threat such as strikes. If law and order not maintain throughout the country people around the world would avoid to come to Pakistan and if people wont come then there will be no tourist so who will rent the rooms.

CRITICAL SUCCESS FACTOR Critical success factors are the factors that contribute to make strong position of the business, that make it successful and matters the most in its continued success. In other words these are the few key areas where the things must go right for the business to flourish and achieve its objectives. It is important to set objectives before embarking upon critical success factor analysis. The main objective of Pearl Continental Hotels is to obtain maximum profit and maximum occupation by the customers in the Hotel. Customer satisfaction is the main source of achieving the objectives and to allure the customer to become the member with the Pearl Continental Hotel and give them repeating visits. In order to obtain the Pearl Continental hotels that are described subsequently perform customer satisfaction number of activities. The three most important considerations for a business and leisure traveler or a regular customer to a hotel are the location of the hotel, safety and security and rates/price. Pearl Continental hotels satisfy these three conditions to the utmost and hence these three factors become one of the most critical success factors of this industry. 1) LOCATION: The location of all the Pearl Continental Hotels contribute to its successful operations as they are not far away from the airports and lies in the heart of their respected cities. Pearl Continental Hotel, Karachi, which is the member of the 'Leading Hotels of the World', is the premier choice of business and leisure travelers. It is ideally located only fifteen kilometers away from the airport, situated in the heart of commercial center and provides excellent business and conference facilities and easy access to shopping centers of the city. In the city of graceful mosques, imposing fortresses and historical bazaars, Pearl Continental Hotel, Lahore is located at the most prestigious financial, business and commercial avenue, Shahra-e-Quaid-e-Azam (The Mall), opposite Governor House, 7 km from the Lahore International Airport, 6 km from the Main Railway Station and 1.5 km from the main City Business Center.

Rawalpindi is the twin city of Islamabad, the capital of Pakistan. It is a transit city for visitors wishing to explore the fascinating Northern area. Islamabad airport, which serves the twin cities, is a ten-minute drive from Rawalpindi's only deluxe hotel, Pearl Continental and in close proximity to archaeological sites in Taxila, historical monuments and hill stations. The capital of North West Frontier Province, Peshawar has enjoyed tremendous historical, military and geopolitical importance because of the strategic Khyber Pass. Situated between the old and new Peshawar on Kyber Road, Pearl Continental Hotel is just two kilometers from the airport and overlooks the famous Peshawar Golf Course and the impressive Bala Hisar Fort. In Bhurban, Pearl Continental Hotel is nestled in the midst of natural grandeur at an elevation of over 2000 meters. The hotel, set against the breathtaking backdrop of the Kashmir valley at the foothills of the Himalayas is a seventyminute scenic drive from Islamabad. 2) SAFETY AND SECURITY: Safety and Security is the biggest concerns of the people traveling from one place to another due to the increasing Hotel crimes. All Pearl Continental hotels use electronic locks, each room opens with an encoded key card, which increases the level of security. Each room features data Port, Electronic in-room Safe, Safety Alarm, Radio and Television with Satellite Channels, Direct Dial Telephone and the Security-conscious can rest assured that all our rooms are equipped with smoke detectors and sprinklers. The use of this system being rare in other hotels of Pakistan makes it a critical success factor of Pearl Continental hotels as the customers requiring high level of security will prefer to stay here which will contribute to achieving the objective. 3) RATES: Two factors are involved in increasing the profitability; by increasing the rate and by increasing the volume but increasing the volume do not guarantee profits. Pearl Continental hotels increased 20% of the revenue by increasing the rates along with special discounts. Rates are however negotiable in certain cases which ensured that the segments that provide profits do not loose their interest by increasing the rates. The segments, which are critical to the success of Pearl Continental Hotels, are: AIRLINE CREW: Reservations of the local and international airline crews are very important as the products to them are sold in bulks every time they arrive. They are given the wholesale rates so that they do not select another hotel. The information of the incoming flights is kept so that respective airlines are informed about the rates in order to book the rooms for their crew.

TOURIST GROUP: The rates for the tourist groups that come to the hotel directly or through some travel agency are given are comparatively less and negotiable depending on the law and order conditions of the country. The arrangements of transport and tourist guides are made on request specially when there are some events or activities going on in the city. CORPORATE ACTIVITIES: These activities include embassy-related activities, business activities, bureaucratic activities, foreign or religious delegations, conferences and seminars. Some business organizations become the members with the hotel and given concession for organizing seminars, workshops and conferences. International conferences and seminars which brings a large number of guest along, booked in advance are given at fixed rates as large number of rooms are sold along with the seminar halls for a longer time period. Special services are provided to these guests and are taken care of as they are the source of profit SHAADI PACKAGES: the rates for the wedding and traditional events packages are fixed however attractive offers are given along with it e.g. free room for the couple with wedding cake and bouquet of flowers 4) IMPROVED SERVICES: The Pearl Continental Hotels' rooms, executive suites, super deluxe suites, Executive Rooms, are designed to provide the utmost comfort and luxury where guests are pampered in every possible way. All rooms are equipped with satellite television, in-house movies, music and 30 channel satellite television network and modern amenities. In fact, every facet and facility required by the discerning traveler is catered to. Room Service operates round the clock caring for all the travelers' needs. Personal facsimile machines are available in all suites and executive rooms ensuring complete privacy and confidentiality. Business Center & Secretarial Services are also available throughout the day and up to midnight. An exclusive Executive Club facility is also available for business guests. The Executive Club offers exclusive butler service and access to an Executive Club lounge where continental breakfast is served for the guests. Throughout the day, light snacks and refreshments are served along with high tea. Pearl Continental Hotels offer a variety of cuisines ranging from unique Pakistani delicacies to sumptuous Chinese and Continental dishes. The guests have access to all kinds of services and facilities so as to make their stay, not only comfortable, but also a memorable one. The online reservation system and free pickup/drop services add up to the convenience of the customers. The Pearl Continental Hotel offers complimentary airport shuttle service including travel desk facilities and provides hotel links to all major

international cities having membership of Leading Hotels of the world consortium. Above all the hotel takes the input from the customer through comment cards and online feedback system to alter the services according to the needs of the customers resulting in maximum customer satisfaction, which is the key to its success. 5) OLD AND NEW CLIENTELE: Pearl Continental Hotels being the oldest in the hospitality industry in Pakistan enjoys a large old clientele that are its strength and an important factor in its continued success. Pearl Continental Hotels put all the possible efforts to retain the old clients' interest by providing discounts, concessions and special offers in seasons. Marketing department is engaged in activities to attract new customers, by arranging events and sending brochures, special discounts for the new comers and attractive offers from time to time in order to increase the customer base, which will eventually lead to the maximum profitability. ORGANIZATIONAL STRUCTURE DEPARTMENTS PC has 8 departments: 1. Food & Beverage 2. House keeping 3. Front office, reception 4. Personnel/HR 5. Finance/sales 6. Marketing 7. Information Technology 8. Guest relations/Customer services EMPLOYEES All employees strictly adhere to a set of values & share a common vision, which is also the hotel's mission statement.

This statement was made with every employee, right down to the chef and dishwasher being included in its determination. The Marriott also encourages employees to incorporate with them the following values:

Honesty Loyalty Cleanliness Balance Change Consistency Candidness

MANAGEMENT The Pearl Continental's Organization Chart CUSTOMERS Pearl Continental Hotels being the oldest in the hospitality industry in Pakistan enjoys a large old clientele that are its strength and an important factor in its continued success. Pearl Continental Hotels put all the possible efforts to retain the old clients' interest by providing discounts, concessions and special offers in seasons. Marketing department is engaged in activities to attract new customers, by arranging events and sending brochures, special discounts for the new comers and attractive offers from time to time in order to increase the customer base, which will eventually lead to the maximum profitability. CULTURE AND MANAGEMENT STYLE PC is best in providing the best quality services. The management of the hotel always shows their utmost attention towards their service and never wants to disappoint their guests. Lets start from the business centers at Marriott which remain open 24 hours, this fully equipped and modern facility can easily handle all your corporate needs. From worldwide internet access to slide preparation, the Business Center ensures seamless execution for your business activities. The services at all the restaurants are also fast and propitious. Every order takes 15 to 20 minutes and not more than that, in the mean time you can enjoy the piano playing some hit numbers and the nice melodious music. Besides this the room service, catering at poolside, service at the banquet halls and at various shops in the hotel is also fabulous. The staff members and the waiters are very polite and nice, and they at their best while serving the guests.

You can easily find the necessary commodities from a small tablet to an expensive jewelry at the various shops which remain open upto 9 PM. The hotel is also offering services like restaurants which remain open for (breakfast, lunch, dinner), 24 hour room service, laundry valet, shoe shine, hair salon/barber, concierge services, Gift shop/newsstand, secretarial services are also available, safe deposit box at front desk, rental car desk, airline desk etc. PC'S COMPETITIVE ANALYSIS The basis of industrial competitive analysis model is that an enterprise exists within an industry and to succeed, it must effectively deal with the competitive forces that exist within the particular industry. Based on the forces involved in Porter's model we are going to judge the PC hotel in Karachi. THREATS OF NEW ENTRANTS:

New hotels that are five stars and go for the same customer categories as the Pearl Continental. Access to raw material or resources, otherwise readily available being rerouted to other hotels.

THREAT OF PRODUCTS OR SERVICES:

New restaurants popping up all over Karachi have put a strain on the cafes and restaurants within the hotel. Rival hotels within the vicinity have offered the same C.S as PC. The ability to differentiate between products and services being offered by PC and other hotels has become smudged.

BUYER'S POWER (Customer):

People anywhere in the world love the ability to bargain and as such put the provider in a tough position. The bargaining power of a customer coming to PC is intensified because the Sheraton is right across the street, at moments like this when the customer threatens to walk-out, the person at the counter has the authority to offer certain deals in order to keep that customer. The above statements verify the fact that the customer is price sensitive and has many alternative sources of supply.

SUPPLIER'S POWER:

The number of supplier's with the right products has decreased over the years and such has allowed the party concerned to increase prices without fear of denial from the hotels. The government has also increased the tax quota on the business to 12.5 %, thereby, allowing the suppliers a valid excuse for "price jack." Since other suppliers/ resources are not readily available, the hotels have an increased overhead cost.

CONCLUSION In conclusion we would like to say that Pearl Continental Hotel is a place where one can enjoy their time in a very soothing and relaxing mood. The hotel is a perfect place for all kind of activities. You can have business meetings, lunches, dinners, conferences, parties, functions and seminars. PC has a good name, reputation and trust. There is an arrangement of each and everything you can imagine, which makes it a role model. The management and employees are very courteous and customer-oriented. They serve you at their best level and certainly you will feel the difference. In this report we gave the overview of PC, and learnt about their management style, culture, their strengths, weaknesses, opportunities and threats, we also analyzed their critical success factors, and competitive analysis. In the SWOT analysis we came to know about their strengths and the weaknesses of a hotel industry and especially of PC hotels. We learned how they can enhance their strengths and over come their weaknesses. SWOT analysis also gives an idea of opportunities and the threats for PC. We analyzed how they can take full advantage of the opportunities and guard against the threats. Analysis of Critical Success factor (CSF) helped us to learn about the factors which are essential for success for a hotel. CSF helps define business strategies . It is basically those things which must go right if the objectives are to be achieved. We analyzed the competitive forces in an industry to help define an appropriate overall business strategy. It basically helps to determine which of the forces pose a major threat to the future success of the business and in what way.