INTRODUCTION

The precursor of Sofitel Legend Metropole Hanoi was Grand Métropole Hotel established in
1901 by two French investors. It is considered one of the most luxurious and famous hotels in
Hanoi. Moreover, with ancient French architecture, prime location, and long history, Metropole
Hanoi has contributed significantly to the prosperity and ancient beauty of the capital.

Figure 1. Logo of Sofitel Legend Metropole Hanoi

During the process of development, Metropole Hanoi always encountered many competitors in
the hotel industry. According to Aroche (2015), while the luxury hotel industry is competitive,
players are rising to meet rapidly changing market demands. Therefore, Metropole needs to
constantly innovate and have suitable business strategies to survive and thrive in this
increasingly competitive environment with the explosion of hundreds of hotels across the
country, typically JW Marriott Hotel Hanoi and Hilton Hanoi Opera.
In this study, I would like to clarify the legal status and sector, the vision, mission, objectives of
of Sofitel Legend Metropole Hanoi and its two above competitors. Then I will use the Balanced
Scorecard to assess the priorities and results of the hotel.
 MAJOR FINDINGS

I. OVERVIEW
1. Background, products and services
1.1. Sofitel Legend Metropole Hanoi
Sofitel Legend Metropole Hanoi was first opened at the turn of the 20th century with
stunning French colonial style by two private French investors. Belonging to the world’s leading
hotel management Accor Group, Metropole has now become a five-star hotel of international
stature that attracts a host of elite tourists (aristocracy) as well as the choice of many heads of
state, famous people around the world when having the opportunity to set foot in Hanoi.
Besides, it located in Hoan Kiem district which is Hanoi’s Central Business District, near
government departments, government agencies and famous places. Metropole Hanoi has the
main function of business and provides accommodation, food and drink services and additional
services such as laundry services, transportation, massage, and seminar organization
(Metropole, 2021).

1.2. JW Marriott Hotel Hanoi

In 2013, Marriott International Hotel Group officially introduced the first JW Marriott
branded hotel in Hanoi with a unique design inspired by the image of the legendary dragon and
the soft coastline of Vietnam (JW Marriott, 2021). As a five-star international hotel, Marriott also
offers guests all modern services as Metropole.

1.3. Hilton Hanoi Opera

Hilton Hanoi Opera is a five-star international hotel in Hanoi managed by Hilton
International Group. The hotel is situated in Hanoi's vibrant French Quarter, which can be
considered as an opportunity but also a difficulty for Metropole because of locating in the same
district. Moreover, Hilton Hanoi Opera Hotel offers customers many luxury rooms and useful
additional services (Hilton, 2021).

2. Vision, mission, goals, objectives and core values

All three of the hotels listed are operated by their parent companies. As a result, each
hotel's philosophy would be consistent with that of its parent companies.

2.1. Vision
Sofitel Legend Metropole Hanoi’s vision is to be the most creative, high-performing, and
well-valued hotel business in the world (Accor, 2021).
 On the other side, JW Marriott Hotel Hanoi creates the vision to be the World’s Favorite
Travel Company for the masses throughout the world. It was this vision in addition to the work
ethic and company culture that made it possible to achieve the success the company has
(Marriott, 2021).

The vision of Hilton Hanoi Opera Hotel is to be the luxury hotel of choice for discerning
travelers, building a world that embraces uniqueness in every way (Hilton, 2021).

2.2. Mission
The mission of Sofitel Legend Metropole Hanoi is “to make the impossible possible to
realize your dreams” (Accor, 2021).

JW Marriott Hotel Hanoi’s mission is to enrich the lives of its guests by developing and
facilitating unrivaled vacation and leisure experiences (Marriott, 2021).

Hilton Hanoi Opera Hotel’s mission is to be the most hospitable company in the world
(Hilton, 2020).

2.3. Goals
Metropole aims to support and empower the communities in which they live and protect
the planet that gives them so much every day. Therefore, they have set the goal of creating
sustainable value both locally and globally. In particular, the organization intends to launch the
Our Planet 21 – Acting Here initiative to promote "positive hospitality" by ensuring that their
clients receive high-quality goods and services that are both environmentally and socially
responsible. Its aim is to give guests a more responsible hotel experience and to inspire them to
participate in hotel activities (Accor, 2021).

Marriott’s goal is to find innovative ways to implement the most effective methods for
long-term hotel operations around the world. The business has spent a significant amount of
time and money designing its next-generation sustainability and social impact priorities,
involving internal and external stakeholders and collaborators in a rigorous process to identify a
new plan that builds on previous successes while also embracing new challenges (Marriott,
2021).

Hilton launched bold Travel with Purpose 2030 Goals to redefine sustainable travel. By
2030, they are committed to doubling their investment in social impact and cutting their
environmental footprint in half through responsible hospitality across their value chain (Hilton,
2018).
 2.4. Objectives
Accor Group strategy aims to meet several key objectives (Accor, 2021):

 Create recognizable and market-leading brands

 Develop leadership potential in their more than 260,000 talented employees
 Use cutting-edge technology to meet guests' expectations and address unmet
needs.
 Act for a meaningful hospitality: Through their Planet 21 sustainable development
initiative and the Solidarity Accor endowment fund, they strive to make a positive
impact both locally and internationally.

Hilton Hanoi Opera sets the objectives to double their investment in programs that
contribute to sustainable solutions and economic opportunity for all. In terms of environmental
impact, the hotel targets to reduce water use and waste output in their managed operations by
50% (Hilton, 2021).

Marriott focuses on environmental objectives including (Marriott, 2021):

 From 2007 to 2020, cut energy and water used by 20%.

 Encourage their hotel development partners to build environmentally friendly
hotels.
 Encourage and educate associates and visitors to protect and preserve the
environment.
 Address environmental issues by implementing novel conservation programs
such as rainforest preservation and water conservation.

2.5. Core values

The core values of Metropole can be listed in 4 words (Metropole, 2021):

 Customer Passion
 Trust
 Respect
 Long-Term Results
 Spirit of Conquest
 Innovation

The core values of JW Marriott Hotel Hanoi is contained in 5 sentences (Marriott, 2021):
  Putting people first
 Pursuing excellence
 Embracing change
 Acting with Intergrity
 Serving the World

Hilton Hanoi Opera's core values are expressed in 6 things (Hilton, 2021):

 Hospitality
 Integrity
 Leadership
 Teamwork
 Ownership
 Now

II. SECTORS, LEGAL STRUCTURES, PURPOSES AND STAKEHOLDERS

1. Sectors
In business there are different types of organisation categorised by different types of
ownership which are private sector, public sector, and third sector (BBC, 2021). In the public
sector, businesses owned and run on behalf of the public (Lasthuizen, 2012). The majority of
public-sector businesses are not run for profit, but rather to offer goods and services to the
general public using public funds (tutor2u, 2019).

1.1. Sofitel Legend Metropole Hanoi

A private company is a business owned by an individual, having no legal status because
the company's assets and the business owner are completely separate. Besides, it does not sell
stocks to the public (CFI, 2018). After several transitions, Metropole Hanoi is now owned by
Hanoitourist Corporation and Singapore's Indotel Ltd. which have invested $48.7 million to
renovate and upgrade the hotel. According to Vietnam Investment Review (2020), at present
time, Indotel Limited manages 50% stake which is equivalent to 203 billion VND and
Hanoitourist owns the remaining 50%. Therefore, Sofitel Legend Metropole Hanoi belongs to
the private sector.

1.2. JW Marriott Hotel Hanoi

JW Marriott Hotel Hanoi is also a private company. It is operated under the upscale
hotel brand of Marriott International, but the owner of the Marriott is a real estate business in
Vietnam. According to Bitexco's introduction, the business is the only investor of this luxury
hotel project with an investment of up to $250 million.
 1.3. Hilton Hanoi Opera
The investors in the Hilton Hanoi Opera are the state-owned Thang Long GTC (30
percent stake) and the TN Development JSC (70 percent stake). Hilton is now owned by a
Vietnamese firm after a series of transactions. Since this is a private company, it's speculated
that the hotel is owned by Mrs. Nguyen Thi Nga who is currently the Chair of Seabank.

2. Legal structures
The legal structure of a company determines what activities it may engage in based on
its needs and goals such as raising capital, sharing profit, and so on. There are four main forms
of business structures including sole proprietorship, partnership, limited liability company, and
corporation (University of Minnesota, 2011). According to the Law on Enterprises (2014), a
limited liability company (LLC) is a type of enterprise with no more than 50 members
contributing capital for establishment. Moreover, the limited company is not allowed to issue
shares to the public to raise capital.

2.1. Sofitel Legend Metropole Hanoi

As the oldest hotel in Hanoi, the original hotel was owned by two French investors
before 1954 and then transfered to a Vietnamese company. Nowadays, Metropole Hanoi is
operated by Accor Group but the two owners (shareholders) who hold all shares and have
financial responsibility are Hanoitourist Corporation and Singapore's Indotel Ltd (a foreign
enterprise). Therefore, Metropole Hanoi is a Limited Liability Company as well as a joint
venture company. Because LLC exits as a separate legal entity, Metropole’s members only
need to be responsible for debts as well as liabilities within the amount of capital contributed to
the company, which helps to minimize risks associated with assets for investors.

2.2. JW Marriott Hanoi

Marriott Hanoi is a single-member limited liability company because Bitexco is its
only shareholder and the hotel does not publicly offer trades of shares. Taking advantages as
Metropole which is its biggest competitor, Bitexco is only responsible for financial risks of the
company to the extent of the company's charter capital. Besides, single-member LLC has the
lowest income tax of any kind of business establishment today (only 20%), thereby Marriott can
reduce the tax payments.

2.3. Hilton Hanoi Opera

Hilton Hanoi Opera can be considered as a limited liability company which is similar to
the two above hotels. The evident is that currently, it has been invested by a Vietnamese
company.
 3. Purposes
According to Fritz (2019), any business entity, whose primary purpose is to generate
profits from routine operations, aimed at maximizing the owner's wealth, is called a for-profit
organization. In contrast, a non-profit organization, as the name suggests, is a legitimate
organization whose primary purpose is to promote the public good rather than to generate
profits.

All three hotels including Metropole, Marriott and Hilton provides services regarding
accommodation or food for the guests and gains profit from them. Therefore, all of these hotels
are for-profit businesses.

4. Stakeholders

Figure 2: Stakeholders Mapping

Stakeholder is the term for individuals, a group of people or an organization closely

related to the business, interested in the operation and success of the project. These are
important people with the ability to influence or decide on the existence and development of the
business (Freeman, 1999). Stakeholders Mapping is a common tool for analyzing and
evaluating hotel stakeholders. Each stakeholder has different interests and priorities, resulting in
a number of conflicts between them. As a result, businesses must take responsibility for
resolving disputes in a responsible manner.

 Government:
 In the current Covid-19 epidemic, the government is considered one of the most
important stakeholders in all sectors. Due to the detrimental effects of Covid 19, the government
has issued a notice to minimize flights bringing people into Vietnam. As mentioned in the above
section, five-star hotels' main target market is the elite that includes foreign tourists.
Consequently, minimizing entry into Vietnam seriously reduced the total revenue as well as
profits of every enterprise in the hospitality industry, especially in luxury hotels. Therefore, it is
clear that the government holds high power that can significantly influence these hotels’
business results.
 Shareholders:
Shareholders are the most important player in the stakeholder analysis of these three
hotels. In general, shareholders are concerned with profit and the amount of money they will
make from the company's operations. In Metropole, Shareholders and company owners are two
distinct entities. Accor Group has a high interest to satisfy the shareholders as well as take
care of the customers about the process and innovation. Meanwhile, the owners care more
about financial problems, especially profit. However, the hotel's direct income provides the
majority of the earnings to shareholders. According to Accor's annual report (2020), profits
come mostly from the management of other hotels, accounting for up to 60% of total revenue.
This means that they have high power.
Next, the only shareholder of Marriott and Hilton also happens to be the hotels’ owners.
Aside from being responsible in terms of finance, the owners need to control the company
management. For this reason, the owners have quite much interest and power in the
businesses. However, Metropole’s shareholders have less power than those of Marriott and
Hilton because 100% shares Marriott and Hilton belong to their only owners while Metropole’s
shares are separated 50% for each party (Hanoitourist Corporation and Singapore Indotel Ltd).
 Customers:
All of these three hotels have expensive room rates. As a result, hotels' target customers
are all high-income individuals, and the revenues they will generate for the company are
substantial. However, due to social distancing during the Covid-19 pandemic, these five-star
hotels have suffered a damage when the demand for bookings from domestic guests as well as
the number of foreign tourists has decreased significantly. This leads to a great decrease in the
revenue and profit of these three hotels compared to previous years. Therefore, customers are
the factor holding high power position. In addition, because of the room price difference,
Metropole is the hotel which gains more interest of customers than the 2 remaining ones.
 III. SIZE AND SCOPE
At present, Vietnam has no legal basis to determine how a large organization is.
According to Decree 39/2018/ND-CP, however, a medium company has a number of workers
less than 100 and the annual revenue less than 300 billion VND or the total capital less than
100 billion VND.

1. Sofitel Legend Metropole Hanoi

VIR (2020) showed that the hotel has about 700 employees. After VOF divestment, the
income statements of this hotel are no longer updated regularly, but Hanoitourist affirms that
Metropole always has the most effective business results in their hotel system. In 2017,
Metropole achieved total revenue of 931 billion VND (danviet.vn). Therefore, Metropole Hanoi
can be concluded as a large-scale business.

Metropole's main customers are the elite such as business customers, international
tourists and government officials... In addition to the main service of accommodation, Metropole
Hanoi promotes profits by combining with catering services to meet the needs of customers. In
addition, the hotel has well grasped the needs of the market when it put functional rooms into
operation for conferences and events, which has brought great success. Metropole Hanoi also
provides other services such as airport shuttle service, bar, spa, and so on. The hotel attaches
great importance to Internet distribution because it is less expensive and effective. In addition,
the hotel website has integrated online booking and payment, easy, fast and convenient
procedure for customers when using hotel accommodation services.

2. JW Marriott Hanoi
In case of JW Marriott Hanoi, the hotel is in the group of 5-star hotels with the largest
scale in Hanoi with an investment of up to 250 million USD from Bitexco Group (Zing News,
2019). According to an internship report at Marriott Hanoi, as of 2016, the hotel owns 540
employees with the total revenue of 480 billion VND (Pham, 2019). Hence, Marriott Hanoi is
also a large business.

As a five-star hotel, Marriott provides a host of services such as accomodation, food and
beverage, conference or wedding organization, and even modern gym and swimming pool
system.

3. Hilton Hanoi Opera

According to Vietnamnet (2021), Hilton Hanoi Opera has the value of the capital
contribution of nearly 396 billion VND and it also achieved the total revenue of 315.8 billion VND
in 2019. An internship report at Hilton Hanoi in 2012 showed that the total employees of the
hotel at that time was over 200, this figure is likely to increase in the year 2021. With the above
data, it can be concluded that Hilton Hanoi is a large enterprise.

About the business scope, Hilton has basic services at the hotel such as 24/24 customer
support, luggage storage counter, car rental service, 24/24 room service, laundry services,
currency exchange, babysitting services, airport transfers, and so on.

IV. ORGANIZATION STRUCTURE OF METROPOLE HANOI

1. The organizational chart

Figure 3. Sofitel Legend Metropole Hanoi organizational chart

The way or process by which organizational tasks are separated, structured, and
coordinated is referred to as organizational structure (Greenberg, 2011). Organizations
developed mechanisms to organize work factors' activities and monitor members’ actions.
(Ahmady et al., 2016). The organization theorists consider mostly some types of structures as
follows: Hierarchical Structure, Matrix Structure, Horizontal/Flat Structure, Functional
Structure…

Under the management of the Accor Group, Metropole Hanoi's organizational structure
was formed according to the inherent model and standards decided by the group. According to
the above chart, standing the highest position in Metropole is the general manager named
William Haandrikman, followed by the directors. Under the director are the managers of each of
the small branches in the departments. It can be seen that the Metropole Hotel's organizational
structure separates into many layers of management and has a long chain of command from
 the general manager through to the employees working under each manager at the bottom of
the hotel. As a result, Metropole is classified as a hierarchical structure. Moreover, Metropole is
divided into each department with different functions including Talent & Culture, Quality & Guest
Experience, Finance & Legal Admin, Sales & Marketing, Revenue, Engineering, F&B, and the
Acting Executive Chef. Each functional department is led by a manager and employees are
grouped according to their roles. This is a perfect match for the definition of functional structure.
Based on the theory of Usmani (2020), in a functional structure, businesses are divided into
smaller groups or teams according to their positions and expertise. Therefore, it can be
concluded that Metropole Hanoi uses hierarchical structure and functional structure to
control the enterprise.

With this organizational model, Metropole Hanoi can promote the advantages of
specialization because functional departments focus on jobs of similar nature, promote
economies of scale, and reduce overlap in operations, and simplify training (Awa, 2016). Due to
the bad effects of Covid 19, 5-star hotels such as Metropole would reduce operating costs by
easily cutting unnecessary employees thanks to each individual's specific function and
obligation. However, when it comes to setting priorities and modes of operation, the framework
may often lead to disagreements between functional units (Maciejczyk, 2016).

2. Balanced Scorecard
BSC is a management system that helps businesses set, implement, monitor and
measure to achieve their strategies and goals. After businesses establish and develop
strategies, businesses will deploy, implement and monitor the strategy through four aspects:
finance, customers, internal operations, learning & development (Kaplan & Norton, 1992).

Vision: To be the most creative, high-performing, and well-valued hotel business in the world.

Objectives Measures Targets Initiatives

Financial - Increase revenue - Total revenue - Back to break- - Cut off unnecessary
even point after 3- or less common
- Cut operating costs - Total expense
4 years products/services
during Covid-19
- Reduce 3% each - Make the most of
year machines instead of
employees

Attract both tourists - Customer - 90% this year - Discount hotel rooms
and local people to satisfaction rate
- Focus on domestic
stay in Metropole
 during the pandemic - % market - Account for 2% tourism development
share index of Vietnam’s hotel
Customers
industry

Increase the number Number of Increase by 50% - Supplement

of guests eating in guests having traditional Vietnamese
Internal
the restaurant meals in food to attract local
process
Metropole’s people
restaurants per
- Adapt foreign dishes
day
to Vietnamese style.

Learning - Improve employees’ - Productivity - Increase 70-80% Organize both internal

and growth knowledge and skills rate this year and external coaching
courses.
- Create long-term - Resignation - Under 5%
value for employees rate

Figure 4. Balanced Scorecard of Sofitel Legend Metropole Hanoi

3. The interrelation of organization’s functions

To achieving the hotel’s objectives, Metropole are divided into different functional
department: General Manager, Talent & Culture, Quality & Guest Experience, Finance & Legal
Admin, Sales & Marketing, Revenue, Engineering, F&B.

First of all, the general manager is the person who holds the position and highest
management authority on financial matters, operating and supervising the entire operation of
the hotel. Based on the scale and grade of the business method, the target audience, and the
task plan, he needs to actively organize the arrangement of the main production and business
divisions to ensure compact, light, reasonable, serve customers with efficient and economical
quality by coordinating with relevant departments.

One of the goals outlined in the balance score card is to develop knowledge and
necessary skills to serve at work for Metropole’s employees. The Talent & Culture department is
responsible for providing employees with appropriate training to help them have a deeper
insight into customer psychology or how to handle some special situations. At the same time,
this department also needs to control the progress, effectiveness and staff's comments on the
quality of the course.
 The Internal Process step involves processes that convert technologies into real outputs
that a hotel can use to reach customers. In order to attract a large number of customers to dine
at the restaurant during Covid-19, Metropole needs to develop an attractive menu that can hit
customers' psychology, especially when the target customer is Vietnamese people. To achieve
that, the F&B team needs to work closely with the Quality & Guest Experience Department. The
Quality & Guest experience department examines food trends and customer favorites. The F&B
department will rely on that information to offer a menu suitable to tastes, thereby increasing the
number of customers coming to eat.

Next, to attract domestic customers to choose 5-star hotel services like Metropole Hanoi,
the first thing to do is reducing room rates and investing in marketing activities through social
networking sites. These activities need a combination of the Revenue Department and the
Sales & Marketing Department. The revenue department needs to consider costs and offer an
appropriate discount to avoid damaging the company. At the same time, the marketing
department will make a marketing plan to convey discount information to target customers.

In terms of the financial goal, in order to minimize the operating costs of the hotel during
the pandemic, the technical department needs to focus on developing, upgrading as well as
regularly warranting machinery or automatic technology equipment , from there, can improve
working productivity for the whole company. The finance department will set up, monitor and
synthesize the cost for maximizing machines, then evaluate the efficiency with monthly financial
reports.
 CONCLUSION

Through the study, it can be seen that Metropole Hotel has completely followed the
Accor Group's procedures and standards on organizational structure as well as how to organize
business activities. Furthermore, Metropole Hotel has shown its international class, making a
difference with other 5-star hotels in Vietnam. Although the organizational size of the hotel is
very large, it is not in the study scope to fully describe how the organization operates at the
hotel. However, I hope that this will be a relative perspective which contributes to a very few
number of documents about Metropole Hanoi Hotel.
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