Business Transformation of Moevenpick Hotels and Resorts using VRINE, Essay

Business Transformation of Moevenpick Hotels and Resorts using VRINE, CAGE and Corporate Entity (Diversification) Frameworks - Essay Example MÃ ¶venpick Hotels and Resorts AG has focused on expanding into its traditional regions of Europe, Africa, Middle East and Asia. Such diversified presence in various regions of the world therefore indicates that it has been able to successfully expand in different markets. In this paper I will be concentrating on the MÃ ¶venpick Hotels and Resorts AG to seek the possibility of transforming the company using the VRINE model, CAGE as well as Corporate Entity (Diversification) models for better opportunities and higher market share. MÃ ¶venpick Hotels and Resorts AG manages 70 hotels of a total of 17,646 rooms in 24 countries in the market of upscale business hotels, holiday resorts and residences. Business hotels are 57% of the company’s managed hotels; resorts are 32% of the company’s managed hotels and 11% cruises. MÃ ¶venpick Hotels and Resorts AG has five regional offices in; Zurich acting as the corporate office for MÃ ¶venpick Hotels and Resorts AG and managing the region of Europe, Thailand, managing the region of Asia Pacific, United Arab Emirates, managing the region of the Middle East and India, Shanghai, Managing the region of China and Cairo, Managing the region of Africa. It is an analytical framework suggesting that an organization with resources and capabilities which are Valuable, Rare, Inimitable, Non-substitutable and Exploitable will gain a competitive advantage in the market. (Quizlet, 2012). It is however, critical to understand what actually resources and capabilities are and how they can actually provide a firm its overall competitive advantage over other firms in the industry. Barney (Cited in Peng and South-Western, 2008:3) defined the resources as ‘The tangible and intangible assets a firm uses to choose and implement its strategies’ while capability is a firm’s ability to make use of its resources in a highly productive way. (Santiago, 2003) Resources can be either tangible such as land and