Mission Hills Leading the China Golf Industry Case Solution

2. Situation Analysis

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.

3. 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.