More information has been released on the case related to the Great Eastern Hotel we saw in the first assignment. The turbulence in the economic environment has resulted in policy changes such that banks, financial services firms, and automobile firms—which all form an integral part of the hotel’s target markets—have cut travel-related expenses forexecutives. No longer can executives of these firms travel first class on their business visits; they must now use only economy class travel.Moreover, they are now required to cut hotel stay–related expenses, so they have to stay in three- and four-star hotels and not pay more than USD 200 per night. These restrictions have had a major impact on hotels like Great Eastern, which Debbie and her executives must resolve.The U.S. government is bailing out banks and financial institutions, and since Great Eastern has a major influx of business travellers from U.S. firms, it is important that Debbie and her team consider the impact of government policies on these firms as they seek a solution. Question: How does the environment affect the hotel’s formulation of strategies?
More information has been released on the case related to the Great Eastern Hotel we saw in the first assignment. The turbulence in the economic environment has resulted in policy changes such that banks, financial services firms, and automobile firms—which all form an integral part of the hotel’s target markets—have cut travel-related expenses forexecutives. No longer can executives of these firms travel first class on their business visits; they must now use only economy class travel.Moreover, they are now required to cut hotel stay–related expenses, so they have to stay in three- and four-star hotels and not pay more than USD 200 per night. These restrictions have had a major impact on hotels like Great Eastern, which Debbie and her executives must resolve.The U.S. government is bailing out banks and financial institutions, and since Great Eastern has a major influx of business travellers from U.S. firms, it is important that Debbie and her team consider the impact of government policies on these firms as they seek a solution.
Question: How does the environment affect the hotel’s formulation of strategies?
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