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Mission Hills Leading the China Golf Industry Case Solution

Solution Id Length Case Author Case Publisher
1063 667 Words (3 Pages) Mary M. Crossan, Ken Mark Ivey Publishing : W12791
This solution includes: A Word File A Word File

Mission Hills Golf Club is the largest golf company in China. The company is known globally for its excellent golf courses. The major presence of the company is on Hainan Island in China. At Hainan Island, the company has created a resort that includes award-winning Blackstone Brian Curley course. The CEO of the company – Ken Chu – is facing the challenge of managing business expansion. Even though the business has availability of land for expansion of its operations, the company is facing the problem of recruiting and retaining skilled human resources. Also, the choice of strategy for countering emerging global competition, as well as, choice of region for business expansion remains a dilemma for the Chu.

Following questions are answered in this case study solution

  1. Problem Statement

  2. Situation Analysis

  3. Alternatives

  4. Recommendation &Implementation

Case Analysis for Mission Hills Leading the China Golf Industry

Situation Analysis

SWOT Analysis

Strengths

Weaknesses

Brand equity of Mission Hill

Language barrier of Chinese staff

Availability of land for expansion

Absence of facilities for children

Presence of funds for investment

Lack of experienced staff

State-of-art facilities

Being away from the city center

Opportunities

Threats

Growing trend among Chinese for golf

Emerging global competition

Increased tourism to China

Security issues in Yunnan region

The golfing industry in China has exhibited rapid growth. China has between 300,000 to a million golfers. Even though, the first Chinese golf club was opened as late as 1984, the industry in the country has exhibited remarkable growth. With a growth rate estimated at 20% in 2011, the Chinese golf industry has begun attracting tourists from abroad. However, this growth rate could be much higher if the cost of sport in China would decline slightly. With an annual subscription of around one million Yuan, the industry will remain vulnerable to competition from abroad, and there is a good chance that the situation will not change anytime soon.

Mission Hills Golf Club is quite a robust company that has been able to withstand two economic shocks. With the continued development of golf in China, especially since the world financial crisis has ended, and China's economy is thriving, China has become the world's most potential market. But at the same time, the issue of trained human resource is hampering growth of operations for Mission Hills. In addition to training towards customer sensitivity, the staff for the golf club also needs to be trained to overcome the language barrier with foreign customers. The location of the resort – being away from the city center – can be overcome by utilizing land owned by the company in the Hannan region.

Alternatives

Focus on Training of Human Resources rather than the Expansion of Operations – the first strategic alternative for Mission Hill Golf Club is to focus entirely on training of human resources before investing in expansion of capacity for the company. The advantage, of choosing this alternative, is that the company will be able to maximize customer satisfaction from current operations without going into unplanned growth. The disadvantage, of choosing this alternative, is that Mission Hill may miss important opportunities for business growth.

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