here were several opportunities of expansion for the Shangri La group of Hotels in areas beyond Asia especially since several such properties had been dissolved in Europe and America because of the economic meltdown faced by their business houses. However, this had not impacted upon the hotel and hospitality or in fact any other industry of Asia and thus there was tremendous scope for the expansion of their services and business beyond the Asian territories (Singh, 2008). Some of the basic challenges faced by the Shangri La Company as it was poised on the expansion of its operations outside Asia were as follows:
Lack of decision making potential among the employees who had been working with the company since long was a major drawback. Even the smallest decision of whether or not to leave off the cost of a bar drink to a quarrelsome client could not be conceived by the barkeeper or the manager of that section without consultation with the higher authorities. Thus, there was a marked need for more decision making at all the levels of the enterprise to ensure smooth and timely delivery of services. Delay in decision making was costing the company heavily in terms of time and revenue losses. This aspect was playing into the hands of their competition (Cooper, 2005).