The name Kempinski stands for luxury,elegance, individuality and traditions. The company manages some of thegreatest luxury hotels in 31 countries in Europe, Asia, the Middle East &Africa and The Americas. Kempinski runs, according to its official website(n.d.), in total 76 five-star hotels.
The purpose of this paper is to analyseand understand the management and the operation of Kempinski Hotels S.A. Thiswill involve an analysis of the structure, its stakeholders and environmentalfactors and how Kempinski deals with these influences. Based on information provided by Kempinski’sofficial website (n.d.) was Kempinski founded in 1897 as the”Hotelbetriebs-Aktiengesellschaft” in Berlin, Germany.
Due to its history of120 is the company, with the head office in Geneva, Switzerland, the oldestEuropean luxury hotel group. The company is involved in businesses related tothe hospitality industry which includes catering, conferences, hotel supplies,spa services, restaurants, bars and lounges with dining options. Kempinski isalso involved in event organisations, such as weddings and meetings. The”Hotelbetriebs-Aktiengesellschaft” purchased M.
Kempinski & Co. in 1957 andbecame Kempinski Hotels S.A. in 1977. This report will start off with anexplanation of Kempinski’s legal form.
This will be followed by the structureof the company and its management levels. Afterwards, the terms vision andmission will be explained and illustrated in case of Kempinski Hotels S.A. In thenext chapter will deal with Kempinski’s strategy, which will be followed by atheoretical definition of a business process and a practical illustration incase of Kempinski Hotels S.A. The following chapter explains the environmentalfactors, which are divided into a stakeholder analysis and a PESTEL analysis. Aconclusion will round of this report. Legal FormsA legal form describes the structure ofan organisation and can be recognized in the name of the company.
Kempinski Hotels S.A. is a stockcompany. According to Investopedia (n.d.
) stands S.A. for “Société Anonyme”.Based on information provided by Gabler Wirtschaftslexikon (n.d.) is a stockcompany is a company whose capital is divided into shares.
This legal form is usuallyused by larger companies, because an expensive founding process with a minimumcapital of 50.000€ is necessary, furthermore, a board, a supervisory board withat least three people and a general meeting is essential for the founding of astock company. In order to found a stock company, at least one founder is required.Despite the disadvantage of the expensive founding process are benefits theeasy transferability of the shares and the option to finance the company byequity. Another advantage is the limited liability. This means that members canonly be called upon to pay the nominal value of the shares, which are held bythem.
Examples for shareholders of Kempinski Hotels S.A. are the sheiks ofBahrain, which are the biggest ones and Lufthansa.In addition to that can be distinguishedbetween private and public companies.
Kempinski Hotels S.A. is a privately-heldcompany; therefore, Kempinski Hotels S.A.
is not obligated to publish itsfinancial report. Structure of the Organisation & ManagementLevels According to Marcus and van Dam (2015)can an organisation be identified as a human collaboration with the same goal.Since Kempinski Hotels S.A. is a global working company it is necessary to havea specific amount of people and employees working for it. Kempinski employs24.000 people worldwide. Management task is to achieve thecompanies’ goals, however this is only possible, if an effective organisationalprocess exists.
The structure of the hierarchy within the company is dependenton the size of the company. The tasks which occur in order to achieve the goalwill be divided within the different hierarchy levels.The highest management level is calledthe top management.
This hierarchy level is responsible for creating anddealing with strategic decisions. The management level under the top managementis called the middle management. This management deals with organisationaldecisions and translated the strategic decisions into operational decisions.
The middle management has a directing function. The third level is called the operationalstaff. It deals with the actual transformation part of the decisions. Kempinski published its Management Board,however no further information about each department, therefore is the managementboard of Kempinski illustrated below. Chief Executive Officer Markus Semer Chief Financial Officer Colin Lubbe Chief Operating Officer Europe Bernold Schroeder Chief Operating Officer Asia Michael Henssler Chief Operating Officer Middle East & Africa Henk Meyknecht Chief Operating Officer The Americas Xavier Destribats Senior Vice President Business Development Amanda Elder Senior Vice President Development Mike Haemmerli Senior Vice President Human Resources Marina Zapp Mission and VisionAs stated by Marcus and van Dam (2015)is a vision is a general idea and pictures the future of a company. Theimportance of a vision for a company is analysed by the 7-S Model by McKinsey. Thismodel illustrates that the vision is the centre of a company and provides thedirection the company has to lead to, in order to fulfil its goals for thefuture.
The vision is surrounded by seven management tools, which are the structure,the systems, the style, the staff, the skills and the strategy. These sevenmanagement principles are connected and able to work together through thedirection, which the vision delivers. The vision usually contains a missionstatement and principles. The mission statement of a company is an explanationof their product-market combinations and shows how an organisation makes use ofits structural competitive advantage.
The Principles relate to the norms and valuesof a company. Kempinski Hotels S.A. pursue a clearvision which is stated below. “Weaim to be renowned as hoteliers who offer luxurious hospitality in the grandEuropean style.” (Kempinski’s Strategy, n.
d.)This vision provides a clear goal forthe company and is supported by the mission statement, “…tobe the market leader amongst its location, without compromising its reputationfor operating unique, individual and profitable hotels in a distinctivelyEuropean flair.” (Kempinski’s Strategy, n.d.)According to Neil Kokemuller (n.d.) is amission statement of a company an essential statement of the company’s purpose.
It works as a guide for all decisions which are made within the company. Amission statement affects the shareholders, the leaders and manager and the employees.These components (shareholders, leaders, manager) can be seen as a target ofthe mission statement, because a clear statement can help employees to makedecisions which are best for the company regarding its mission. The vision and the mission statement ofKempinski Hotels S.A. provides a basis for every work which is done within thehotels of Kempinski and therefore an important basis for every employee.
Both,vision and mission statement request and expect luxury standards in the hotels,with the goal to be the leading hotel in each location, with a Europeanatmosphere individuality and uniqueness. StrategyAccording toMarcus and van Dam (2015) can the word “strategy” be defined as a plan thatstates what an organisation needs to do to reach its goals, therefore it is a chosenmethod to bring about a desired future, such as achievement of a goal orsolution to problems. Thegoal, which the company Kempinski Hotels S.A. wants to achieve in the future isstated in the vision and mission statement. The combination of followingstrategies provides a clear plan, of how the company want to achieve its visionin the future. All strategies are published on Kempinski’s official website. – KempinskiHotels S.
A. has a strong focus on its employees, because, as stated on theirofficial website (n.d.
) are the employees the people who make the hotels alive,provide it with high service standards and deliver the luxury promise of thebrand Kempinski. Due to that, the company invests in training and education oftheir staff in order to guarantee an expert knowledge and a strong companyculture. – Kempinskiwants to achieve its goal of being one of the most popular, desirable andluxury hotel collection in the world with highly selective growth.
Aim is, tomake every hotel special in its own way with the basis of the Europeanheritage. Therefore, Kempinski is mainly focussing on European destination,however also expanding to China, Africa and the Middle East. – Kempinskiis concentrating on serving guests who expect high quality. Furthermore,Kempinski wants to create sustainable value and put the attention on long-termstrategies.
Kempinski Hotels S.A. is not a typicallyhotel chain, but a collection of individual hotels. When selecting furtherhotels, the company follows clear strategies, in order to fill its collectionwith suitable houses and to achieve its vision. – Kempinskifocusses according to its official website (n.d.) only on exclusive luxuryfive-star hotels in its key European and international markets. Only hotels areselected which are financially sound and profitable for all involved parties.
Furthermore, Kempinski choses hotels which are strong enough to become marketleader in its own segment. In addition, does Kempinski strive for creatingniche products and focusses on the individuality of each hotel. Business processAccording to Markus and van Dam (2012)can the goals of an organisation only be achieved when the business processesare carried out in an efficient way.
The definition of a business process,based on Markus and van Dam (2012), is a number of activities, which areorganised and related to the making of a product or service. Based on Markus and van Dam (2012) doesthe business process describe the input, the transformation and the output ofon organisation. In case of Kempinski Hotels S.A. is the input of its hotelsdefined as labour, which are people; natural resources, such as food, drinks,buildings (selecting new hotels), electricity and water; and capital, such asmoney and information about the competitors in Kempinski’s target market anddemographical data. The transformation of these inputs can be distinguished inthree different types of business processes, which are called primary,secondary and administrative.
Primaryprocesses are defined as the activities that have a direct relationship to themaking of the product/service. Examples in case of Kempinski are purchasing andfurnishing. Secondary processes are all activities that support the primaryprocesses. Kempinski’s secondary processes are for example the management ofpersonnel, finances and data systems. Administrative processes are defined asall activities that help to reach the goals of the company and direct the twoother processes. The administrative processes have different tasks, such as theselection of a strategy, planning, setting up a structure and the processcontrol.
The transformed products or services will be sold to the customers. Itis important, that the output has a higher value than the input. In case ofKempinski Hotels S.A. is the output defined as the hotels, jobs and the servicefor customer, regarding food, drinks and spa.
There are several points which need tobe considered while managing and running a business process. First, there haveto be clear formulated goals, which the company wants to achieve. Furthermore,the targets must be realistic, in a way, that the company is able to reachthem.
The third point is, that a company should be able to have an impact onthe business process, for example receiving more output when adding moreresources. Additionally, is the planning, the measuring and comparing and theadjustment an important part for the business process. EnvironmentalInfluences An organisation will always beinfluenced by its stakeholders and its surrounding, such as external factors. StakeholdersAccording to Page & Connel (2014) can a stakeholder be defined as a group,for example businesses, residents and tourists, with an interest and concern ina specific field. Therefore, can a stakeholder be identified as an internalfactor, which can affect the company. Main stakeholders of Kempinski HotelsS.A. are according to Marcus and van Dam (2012) customers, suppliers,competitors, employees and the media.
Their influences on the company will beexplained below, based on theory of Marcus and van Dam (2012). – CustomersCustomers are one of the most importantstakeholder for Kempinski Hotels S.A.
, because a company has to offer what thecustomers are demanding for. These demands can change; therefore, a company hasto be able to adapt to its customer needs. Kempinski Hotels S.A. address luxurycustomers with a high demand on luxury and quality within the hotels and theservices.
– SuppliersIn its hotels, Kempinski offers various optionsfor dining, such as restaurants, bars and lounges. In order to provide theseservices, the hotels have to work together with suppliers for food andbeverage. The hotels are dependent on the quality of suppliers, the price leveland the delivery time.- CompetitorsAs stated by Marcus and van Dam (2012)is it highly important to analyse the actions of competitors in order to keepone’s own market share. According to Market Line (2017) are the maincompetitors of Kempinski Hotels S.
A. are DO & CO Restaurants & CateringAG, Marriott International Inc and Ritz-Carlton Hotel Company L.L.C. – EmployeesThe employees of Kempinski Hotels S.A.stand in direct contact with the costumers and represent the hotel to them.
Therefore are, according to Marcus and van Dam (2012) employees the mostimportant stakeholders for a company. Support and cooperation from theemployees play a significant role and have a great influence on the company. Asstated in the strategies, is clear, that Kempinski puts a strong focus on itsemployees.
– MediaBased on information provided by Marcusand van Dam (2012) is the media an important factor regarding the stakeholdersof a company. The media includes the internet, the television, the radio andnewspapers. It often has an influence on peoples’ opinion and can affect thereputation of a company.Kempinski Hotels S.
A. is a company in avery competitive service sector. If the media publics any negative informationor news, will it have an influence on individuals, which can be customers orpossible partners of the company. Acompany is able to have an influence stakeholder and change internal factors; however,it is not possible for a company to have an influence on external factors,which will be explained below. ExternalFactorsExternal Factors can affect the company.The threatening fact of these influences is, that the company cannot controlthese influences but has to adapt to them.
The PESTEL analysis is a suitabletool to analyse the external influences. It will be conducted about KempinskiHotels headquarter in Switzerland. – PoliticalThe Schengen Agreement provides openborders to Europe and increases tourism within Europe and Switzerland.
– EconomicalBased on Market Line (2017) isSwitzerland one of the most competitive economies in the world, because it hasa stable and modern economy. Furthermore, Switzerland has a well-developedcapital market and banking sector. Important is, that the difference inexchange rates can lead to decrease/increase tourism, this can affect KempinskiHotels in certain regions, because it can be more expensive to visit a countrywith another currency, such as Switzerland. – SocialThe aging population in Switzerland leadsto more money and time to travel which influences Kempinski Hotels S.A. in apositive way, because it runs luxury and expensive hotels, which target group isdefined as people, who are looking for luxury holidays. Additional, leads theincrease in high education in Switzerland to an increase in tourism, becausepeople earn more money with higher education.
However, an increase in fear ofterrorism in Europe leads to less tourists in Europe, which can also haveimpacts on Switzerland. – TechnologicalThe increase in booking opportunities, especiallyonline, leads to an increasing in tourism worldwide. Kempinski Hotels S.A.offers booking opportunities on its own website, in travel agencies and online platforms.These various opportunities for customers lead to easier booking possibilitiesand more tourism.
One further point is the increase in technological awareness.This leads to higher pressure regarding the modern equipment and technology inKempinski Hotels worldwide. Kempinski Hotels S.A. has to make sure that eachhotel is equipped on to highest and newest standards. – EnvironmentalThe growing awareness of sustainabilityleads to influences in tourism, Kempinski Hotels S.A. will have to adapt tothis change of awareness, in order to adapt to its customer needs.
Globalnatural disasters increase, that will affect a decrease in tourism, becausecertain areas become dangerous to visit or victims need to spend money forconstruction work instead of holiday. This affects Kempinski Hotels S.A.,because the company runs 75 hotels all over the world. According to Market Line(2017) has Switzerland a great influence on creating and developing globalagreements on sustainability and environmental protection. Since KempinskiHotels S.A.
headquarter is in Switzerland, the company has to adapt to theseagreements. – LegalAccording to Market Line (2017) doescorruption barely exist in Switzerland, this leads to high transparency whilemaking business, which is positive for Kempinski Hotels S.A. Switzerland isranked as number five out of 176 countries all over the world in theTransparency International’s Corruption Perceptions Index for 2016. ConclusionThis report tried to provide anunderstanding of Kempinski Hotels S.A management and operation, structuring andits influencing factors, such as stakeholders and environmental factors.Kempinski is a stock company with itshead office in Geneva, Switzerland. A stock company divides its capital intoshares.
The biggest shareholder of Kempinski Hotels S.A are the sheiks ofBahrain. The company has around 24.000 employees worldwide, and its CEO isMarkus Semer, since 2016. It is highly important for Kempinski to follow itsvision and mission, in order to achieve its goals in the future. Kempinskiwants to be renowned as a company who offers luxurious hospitality. This visionshows the orientation of the company and the direction it wants to lead to. Inorder to fulfil this vision, it is important to support it by strategies, whichhelp to reach Kempinski’s goals.
Kempinski developed strategies, such asfocussing on employees and selective growth. The combination of all strategies providea clear plan, how the company wants to achieve its vision. Kempinski’s business process is definedwith input, such as people, natural resources, such as new hotels, and capital.
The transformed and finished products are defined as hotels, jobs and theservice for customer, regarding food, drinks and spa. Kempinski deals withseveral stakeholders, for example customers, suppliers, competitors andemployees. Furthermore, environmental factors have an influence on the company,such as new technology and social development. These influences can not beaffected by Kempinski, but Kempinski has to deal with it and adapt to newsituations. To conclude, it can be said, that thecompany is successful, because it takes all analysed points of this report intoconcern. It has an explicit vision and mission and its strategies are clearlyfocussed on achieving its vision.
Kempinski focusses highly on its employees,because these are one of the most important stakeholders. The company has aneffective management board, which is able to fulfil the tasks of the topmanagement.