Mission Hills Golf Resort was founded in China in the 1990s by Dr. David Chu. It has since grown to become the world's largest golf resort, with 12 golf courses and other amenities. However, further expansion plans are hampered by a shortage of qualified employees. While Mission Hills offers competitive benefits, employees are leaving for better opportunities elsewhere. To recruit and retain top talent amid increasing competition, the resort needs to implement initiatives like partnerships with local universities, ongoing education programs, employment contracts, improved housing and vacation benefits, and expanded employee perks. These recommendations align with a strategic configuration approach to strengthen Mission Hills' human resources capital for future growth.

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Mission Hills Golf Resort: A Case Study
University Of South Florida Sarasota Manatee
Strategic Management for Hospitality
Sharon Litchfield
Molly Moore
Anthony Henson

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Background
Dr. David Chu is the founder and visionary behind Mission Hills; his vision was based in
part on China's growth and the need for leisure activities. He wanted to become the premiere
brand in leisure and golf. As part of this plan he developed his first two golf courses which are
located in Shenzhen, China. They are situated on what was previously swampland, which was
extremely inexpensive because it was located in a small fishing village. (Mark and Howell,
2012).
In 1997, Dr. Chu set a monumental goal of being the largest golf resort facility in the
world. From 1997 to 2005, Dr. Chu and a group of investors built a luxury hotel to accommodate
nearby Hong Kong visitors, thus becoming a private golf club. Later on the investors sold their
shares, disenchanted by the lack of return on their investments. Dr. Chu and his family then self-
financed the balance of Mission Hills from two golf courses to twelve (designed by some of the
most famous names in golf) and more hotels. This resulted in the resort being awarded the status
of the world's largest golf resort by the Guinness World Record, which accomplished one of his
main goals. (Mark and Howell, 2012). This also led to the expansion in Dongguan which was
just north of the original resort.
Dr. Chu has created a world-class golf facility which attracts some of the largest golf
events such as the World Cup of Golf. In later years, Mission Hills would accommodate up to
100 international events a year. One of the main reasons for these successes is his son, Ken Chu,
who returned to China in 1995 to help manage and run his father's golf facilities. (Mark and
Howell, 2012). Ken Chu attended college in Canada and earned his undergraduate degree in

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administrative and commercial studies. Ken Chu credits his time in Canada as a great influence
in developing his management style. (Mark and Howell, 2012). When he started at the resort he
cross trained in every department so he could understand how they all worked and interacted on
a daily basis. "As Mission Hills expanded its facilities, its employee complement grew from the
low hundreds in 1997 to 4,000 in 2000. As the firm added golf courses and built another hotel,
the number of staff steadily increased. By 2007, Mission Hills had more than 7,000 employees to
serve its 12 championship golf courses, three golf academies, two five-star hotels, three award-
winning spas, Asia’s largest tennis facilities with 51 tennis courts and a professional tennis
academy, numerous dining outlets and meeting and convention centers." (Mark and Howell,
2012). All this success and expansion has led to their biggest challenge which is a shortage of
qualified employees. They are also starting to lose some of their more talented staff to rival
hotels who offer a faster track to supervisory positions.
Analysis
This analysis will be focusing on Mission Hills’ ‘human resources capital’ reviewing
what is in place and what needs to be implemented in the future to keep their brand at the top in
the world. Mr. Ken Chu recognizes that if they want to be the best they need to recruit and retain
the brightest and best employees so they can complete the “mission statement” by providing
unrivaled guest service. (Mark and Howell, 2012).
Using the “configuration” strategic management school of thought, the SWOT analysis
will start by looking at Mission Hills’ internal strengths which will help the company succeed
and continue to grow in the resort business. The company has managed to keep employee
turnover below industry average since opening by implementing many employee programs

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including ongoing training, education, promotions, and focusing on creating a family
environment. They also have a very well trained staff in part due to hiring graduates from local
hospitality schools. In addition, Mission Hills offers competitive packages which includes health
insurance, as on-site living quarters, an employee clubhouse, free daily meals, and many others.
(Mark and Howell, 2012). All these benefits make for a very desirable place to work, but is it
enough to recruit and retain for another five star resort?
The current senior management staff has developed their officers and supervisors to this
point in their success, but there are also some weaknesses that should be addressed. The
‘officers’ are defined as front line staff, and are comprised of mostly a ‘less’ educated group of
people, who have very low self-confidence, unable to act independently or take initiative when
dealing with guests. As a result middle management needs to take on more operational duties
which takes away some of the human resources responsibilities needed to move their staff
forward. As Mission Hills attracts more diverse guests to their resorts they are also experiencing
trouble with communication from front line staff (officers) to guests. (Mark and Howell, 2012).
This is an issue because your guest’s level of comfort and satisfaction is dependent on being
understood.
Mission Hills is presented with the external opportunity to expand their already massive
resort conglomerate to an area known as Haikou. It is the provincial capital of the Hainan Island
off the south China coast; the island is mostly comprised of lava rock. (Mark and Howell, 2012).
By expanding into a new location they can offer an exciting new resort with different vistas and
experiences, less pollution; which will attract new and returning guests from around the world.
They will need to hire an additional few thousand staff, most of which will come from the
countryside of the island. The Haikou resort will also open up opportunities for current

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employees at Mission Hills to promotions that may not have been available at their current
location.
External threats that could hinder expansion would include the one child policy, which
has affected the population of young people in the workforce. Another threat is the pampered
children of China’s new middle-class, who are not striking out into the work place as their
parents once did. The rural, agrarian area of this expansion is also very remote and will require
Mission Hills to reach out to prospective employees from other parts of China and other
countries. The final threat is that other five star resorts are now being built across China, which
will compete for Mission Hills market share and employee resources. (Mark and Howell, 2012).
Assumptions
Although Missions Hills is paying a competitive wage to their employees, employees are
leaving for better opportunities, which may include career advancement and better standards of
living. (Mark and Howell, 2012). It can also be assumed that the construction of new five star
hotels will continue to grow as China prospers and outside interests from other countries come in
to do business. This will mean an increasingly competitive job marketplace that Mission Hills
will have to compete in. The Chinese government is also relaxing the one child maximum which
will alleviate the workforce problem over time.
Problem
The main problem for Mission Hills’ future is the lack of a diverse, well trained, educated
and exemplary staff that meets Ken Chu’s definition of attitude and potential which is
consummate with a five star luxury resort.

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Alternatives
Based on the employment opportunities within the surrounding area of the Hainan Island,
and with the advent of five star hotels, it’s clear that a robust human resources benefits package
is necessary. In order to compete, Mission Hills needs to keep loyal, highly trained, educated and
experienced staffing levels to keep the momentum needed for growth of the company. This
includes employee perks, PTO, better living accommodations, employment contracts and
continuing education and a higher standard of living.
Recommendations
These recommendations are based on the human resources needed within Mission Hills
to move this company forward in their expansion into other areas of China. (Mark and Howell,
2012).
One of the initiatives recommended would be to provide students of the local Hospitality
and Tourism University with an internship program; which upon graduation would guarantee
them a position within Mission Hills, with choice of property, in supervisory positions. Mission
Hills should also partner with local school systems and study abroad programs in another
country’s university system. This will bring diversity and knowledge from around the world to
Mission Hills. They also need to work with the Hainan Island local school system to enhance
curriculum with exposure to different cultures and languages needed in today’s society.
Mission Hills should also provide entry level staff with ongoing education in partnership
with the local Hospitality and Tourism University. This would be available, at no cost based on
need, their current education level; and in some cases they would offer a full scholarship if the
staff member meets criteria requirements. It is also strongly recommended that “English” be

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taught to every staff member, since it is universally recognized as a second language for many
countries.
Another recommendation that would instill loyalty would be to provide employment
contracts which would benefit both the employees and the company. Front level staff would have
continued education benefits along with a two-five year contract based upon years of education
needed. Mid-level management, assuming minimum education requirements are met, would
have a three year contract. Upper-level management would have a five year contract. This would
help provide stability and a sense of worth to the employee. This would benefit the company as
well, ensuring that the staff they hire and train are most likely going to remain if they feel the
company is investing in them and offers an employment contract.
Another recommendation would be to offer housing as follows. All single, qualified staff
members would have on site-dormitories provided, as long as they are enrolled in continued
education studies. Qualified staff members who have a family would receive stipend assistance
to live “offsite” in the local community.
Mission Hills recognizes that many of the staff come from other areas of China and have
relocated for this great opportunity to work and learn at one of the premiere resorts in the world.
Therefore, it is recommended that PTO (paid time off) be given based on length of service. After
one year of employment it is recommended that each staff member, independent of their staff
level, shall be given three weeks paid time off, which can be used at their discretion as vacation,
sick, or other (PTO). After three years of service an employee will receive four weeks per year in
PTO, after ten years of service they would receive six weeks PTO per year. PTO is necessary to
show that the employer values the employee’s needs for family and wellness.

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Finally, employee perks are some things that a lot of employees look for and desire, it
shows the company cares about their well-being and not just the bottom line. Listed below are a
few suggestions to be considered for all Mission Hill employees.
• Offsite outings for employees and families such as picnics, sporting events, etc.
• Discounts off the hotel’s offered services: golf, tennis, gym, spa, etc.
• It is also very important to have a strong employee recognition program.
The analysis and recommendations discussed in this paper are part of the ‘configuration”
strategies in providing a workforce that is needed for the future transformation of Mission Hill's resorts
into one of the most sought after in the world because of their exemplary service. They will fulfill their
mission statement if they follow these recommendations; it is the foundation of their vision.
Learning Experience
From analyzing the Mission Hills case study, I realized how important and valuable a company's
human capital is to their success and the customer experience. I think in the US, companies take people
for granted, in that, if they build a company, there will be people to work there. I now have an
understanding around foreign companies that attract and cater to an English speaking market segment
especially one of luxury. It is extremely challenging to find qualified, educated and career-driven minded
workers to not only work in an Asian foreign market, but in a rural, underdeveloped if that.
Mallory Moore
This was a good case study to start using the lessons learned as it showed that although there
were some initial strategies, it emphasized the need for ongoing strategy in order to reach your goals and
stay relevant. The whole process of working within a team was great since it was like working within the
company itself. I learned that listening to my teammates and then opening it up to discussion was very
meaningful because everyone has a different perspective, which may vary from your own, but is valuable

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nonetheless. I also learned that we could have gone much further into the case if there were more time
available, because I’m sure there were other aspects that could have and should have been addressed, i.e.
the current culture vs the older generations culture and values. This again reinforces the need to delve
deep into the subject so you’re presenting an unbiased strategy.
Sharon Litchfield
References
Mark, Ken. Howell, Jane. (2012) MISSION HILLS: TAKING THE NEXT STEP. Richard Ivey
School of Business, University of Western Ontario.

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nonetheless. I also learned that we could have gone much further into the case if there were more time
available, because I’m sure there were other aspects that could have and should have been addressed, i.e.
the current culture vs the older generations culture and values. This again reinforces the need to delve
deep into the subject so you’re presenting an unbiased strategy.
Sharon Litchfield
References
Mark, Ken. Howell, Jane. (2012) MISSION HILLS: TAKING THE NEXT STEP. Richard Ivey
School of Business, University of Western Ontario.