case study report on banned tree

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Faculty of Business Environment and Society Module No: 307MKT MODULE TITLE: GLOBAL MARKETING 2015-16PSB Coursework Title: Banyan Tree to Revive Europe, America Resorts on Recovery Word Length: 1750 words (+/- 10%) Submission: 23.55 29th September 2016 on PSB Moodle; hardcopy during class Contributes 25% to total module mark

Banyan Tree to Revive Europe, America Resorts on Recovery

Banyan Tree Holdings Ltd., a Singapore-based operator of spas and resorts, is seeking to

expand its presence in Europe and the Americas amid signs that the economies in these

markets are recovering.

The company plans to revive projects in Spain, Greece and Mexico, which it abandoned after

the 2008 global financial crisis. Banyan Tree has signed two contracts to run properties in

southern Spain, and is in talks to resume a couple of projects in Greece, Chairman Ho Kwon

Ping said.

“We actually see Europe and America beginning to recover,” Ho said in an interview in

Singapore yesterday. “In the last five years, growth was almost 100 percent driven by China.

We had virtually no inquiries coming out of the rest of the world. But now, in the last six to

nine months, we have seen a lot more interest in the Middle East, in the Americas.”

Banyan Tree is betting on a recovery as the euro area’s economy emerged from a record-

long recession in the second quarter with a 0.3 percent expansion in gross domestic product.

In the U.S., retail sales rose in July for a fourth consecutive month, showing American

households are regaining momentum as employment climbs.

Southern Europe has become an attractive tourist destination for Europeans after the Arab

Spring forced them to abandon holidays in Morocco, Tunisia and Egypt and flock to Spain,

Canary Islands and Greece, Ho said.

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Arab Spring

The Arab Spring refers to the democratic uprisings that arose independently and spread

across the Arab world in 2011. In Egypt, security forces broke up sit-ins by Islamist protesters

this week, sparking violence that left hundreds dead.

Banyan Tree said Aug. 13 its second-quarter profit in Year 2013 more than doubled to S$1.7

million ($1.3 million), while revenue climbed 3 percent to S$81.7 million.

“Their strategy has always been to head to new locations,” said Derek Tan, a Singapore-

based analyst at DBS Vickers Research. “It’s exciting but unchartered territory for them, but I

would prefer they go in very cautiously. They should do management contracts rather than

putting in equity or it would stretch their capital needs.”

Morocco Opening

Banyan Tree is a manager and developer of resorts, hotels and spas mainly in the Asia

Pacific, with 36 resorts and hotels, 73 spas, and three golf courses. Locations include

Thailand’s Koh Samui, Seychelles and Cabo Marqués in Mexico.

The resort operator has opened a Banyan Tree property in Morocco in 2014, two more in

China and one in Kerala in Southern India. It has opened another nine properties in China in

2015, a country where locations include Lijiang and Hangzhou, a resort built as a water

village inside a wetland reserve. A night in a villa with a water view costs 3,500 yuan ($572).

“While we continue to want to grow a lot in China we are beginning to refocus back into

Europe and the Americas,” Ho said. “Interest is reviving again. People are dusting off old

projects, financing is becoming more available.”

Source: Adapted from the Bloomberg website http://www.bloomberg.com/news/articles/ 2013-

08-15/ banyan-tree-to-revive-europe-americas-resorts-on-recovery-signs on 11 April 2016.

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Case Study questions:

As a marketing consultant you have been asked to produce a set of recommendations on the

key macro and micro-environmental factors that may influence Banyan Tree’s success in

Europe, America, Arab and Asia. You are required to:

1) Use secondary research sources to collect macro-environmental information about these

markets, using appropriate academic sources of information.

2) Produce a report that synthesises the information collected through secondary research

and critically evaluate these markets using relevant international marketing theories. The

report should contain a set of recommendations to Banyan Tree which identifies

opportunities and challenges in each of the markets. Justify your recommendations and,

where relevant, use examples to support your argument.

Learning Outcomes Assessed: Research, critically analyse, discuss and synthesise the dynamics and key aspects of the international business environment and their affect on marketing performance. Marking Scheme: Structure and Presentation 10% Content is organised and appropriate; coherent; flow of information, arguments, and concepts Knowledge and Understanding 20% Identifies, explains, draws on appropriate global marketing theories, models, literature to demonstrate depth and breadth of research to address the questions Application 30% Application of theory or practical examples given appropriate to context Analysis and Recommendations 30% Evaluation and critical analysis of the topic, synthesis of ideas/concepts, appropriate conclusions, justified recommendations Presentation 10% Spelling, punctuation, grammar, layout, accurate CU Harvard Referencing style, writing style academic/professional Submission information: 23.55 29th September 2016 on PSB Moodle; hardcopy during class

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Please note: 1. Please note that work submitted late (where an extension/deferral has not been granted) will automatically attract a result of 0%. This will count as a failed attempt, and may result in you failing the module overall. You may be eligible to resit the failed assessment(s), subject to the University’s regulations on reassessment. The maximum module mark that can be awarded for resit work is 40%. 2. Extensions will be in accordance with University and Faculty policy. Students MUST keep copies (electronic file if done on computer) of their assignment. Please submit an electronic copy of your assignment via the module web using the Turnitin icon. (See instructions on module web) The electronic version of your assignment may be used to enable checks to be made using anti-plagiarism software and approved plagiarism checking websites. Any penalties for not complying with word limits will be in accordance with University and Faculty policy. Marking Scheme A copy of the marking scheme and feedback for this coursework is attached. Return of Marked Work Marked work will be returned in class. You can expect to have marked work returned to you by 2 teaching weeks after the submission date. PLAGIARISM WARNING! – Assignments should not be copied in part or in whole from any other source, except for any marked up quotations, that clearly distinguish what has been quoted from your own work. All references used must be given, and the specific page number used should also be given for any direct quotations, which should be in inverted commas. Students found copying from the internet or other sources will get zero marks and may be excluded from the university. Note: Please make sure that your ID number and the module number appear on the actual coursework assignment as well as on the cover sheet that you attach to it. (Don’t put your name for individual assignments as marking is anonymous) For large modules with multiple seminars your Seminar Group or Tutor’s name must be clearly shown, to ensure that your assignment goes to the correct person for marking. (Put the class day and time if you cannot remember tutor’s name)

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Marking Scheme and Feedback Sheet Module number and Title: 307MKT Global Marketing Student ID No: ……………………………………………

Assessment Criteria (tick as appropriate)

Poor Satisfactory Good Very Good

Excellent

Structure and Presentation 10% Content is organised and appropriate; coherent; flow of information, arguments, concepts

Knowledge and Understanding 20% Identifies, explains, draws on appropriate global marketing theories, models, literature to demonstrate depth and breadth of research to address the questions

Application 30% Application of theory or practical examples given appropriate to context

Analysis and Recommendations 30% Evaluation and critical analysis of the topic, synthesis of ideas/concepts, appropriate conclusions, justified recommendations

Presentation 10% Spelling, punctuation, grammar, layout, accurate CU Harvard Referencing style, writing style academic/professional

Feedback grading: <40 Poor; 40-49 Satisfactory; 50-59 Good; 60-69 Very Good; 70+ Excellent

First Marker: Date: Second Marker: Date:

General Comments:

Agreed Mark: First Marker

Mark:

Second Marker

Mark: