2. What competitive strategy do you think HKDL is pursuing? Elaborate the kinds of competitive advantage that HKDL is exploiting. Text:
Breakeven Analysis
Break Even Analysis is a term used in business, cost accounting and economics. It refers to a point where the total cost incurred becomes equal to the total revenue earned. Break Even Analysis determines the number of units to be sold to earn the revenue required to cover the total costs. Total cost is a sum total of fixed and variable costs.
Process analysis
The term process analysis can be defined as breakdown of production process into different phases that converts inputs into output. A series of routine activities are incorporated using organizational resources with a view to achieve operational excellence.
2. What competitive strategy do you think HKDL is pursuing? Elaborate the kinds of competitive advantage that HKDL is exploiting.
Text:
Providing a magical experience for every guest (customer), Disney, with all its hotels and parks, is a globalleader in the theme-park and service industry. The company's performance depends on a motivated workforce.
The HR Training plays a pivotal role in keeping cast (staff) members motivated.
In 2005, Hong Kong Disneyland (HKDL) opened its doors to the public. Since then, the theme park has
served 46 million guests from around the world. In 2013, it saw a 10 percent increase in visitors, with a recordhigh attendance of 7.4 million visitors. Representing about 30 different nationalities, the resort employs
workforce of more than 8,000 full-time and part-time employees at the theme park and its two hotels during the
most popular summer period. Most of the resort's staff are under 25 years old. The magic begins with the
recruitment of employees who are friendly, innovative, responsible, and are passionate about Disney stories.
Disney management understands what is important to cast members or what excites them in HKDL. Therefore,
HKDL address the value proposition of young talents through comprehensive training programs, transparent
career paths and opportunities, recognition and engagement, and by providing a fun environment.
Cast members learn Disney culture in a number of ways such as training and socialization. HKDL provides
380,000 hours of professional and technical training to the entire workforce during the year. They help
employees to become knowledgeable cast members, fostering open communication and having fun with their
guests. This involves organizing a number of internal and external programs to encourage its cast members to
support initiatives for education, health, social, and other outreach services.
The resort also conducts employee surveys to better understand its staff. The results show that cast members
in HKDL take pride in their roles and they are motivated and empowered to excel in their roles. As a result,
HKDL has received outstanding guest-satisfaction ratings and a range of awards from the hospitality and
entertainment sectors including the recipient of the 2014 Randstad Award for Best Workplace Culture.
While the appeal of Disney's characters is enduring, the decade old HKDL is in the red again. The theme
park cited a drop in mainland visitors as the main reason in explaining its disappointing performance. Additional
competition with the “one country, two theme parks" situation is imminent as the Shanghai Disney Resort opened
in June this year. With regional demand being adequate enough to be shared between the parks, the management
at HK DL remain hopeful about the future. In the meantime, they are also working to provide each park with a
fresh feel and competitive business environment by providing new investments on theme attractions and
promotional offers. Furthermore, the management at HKDL must continue to use HR programs to motivate cast
members.
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