Opening Case More information has been released on the case related to the Great Eastern Hotel we saw in Chapter 1. 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 for executives. 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 travelers 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. 1. Assess the impact of the environment on the Great Eastern Hotel. Make assumptions where necessary. 2. How do customer-related factors affect the hotel as well as its competitors? Make assumptions where necessary. 3. How does the environment affect the hotel's formulation of strategies?
Opening Case More information has been released on the case related to the Great Eastern Hotel we saw in Chapter 1. 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 for executives. 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 travelers 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. 1. Assess the impact of the environment on the Great Eastern Hotel. Make assumptions where necessary. 2. How do customer-related factors affect the hotel as well as its competitors? Make assumptions where necessary. 3. How does the environment affect the hotel's formulation of strategies?
Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
Problem 1.1DQ
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Transcribed Image Text:Opening Case
More information has been released on the case related to the Great Eastern Hotel we saw in Chapter 1. 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 for executives. 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 travelers 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.
1. Assess the impact of the environment on the Great Eastern Hotel. Make assumptions where necessary.
2. How do customer-related factors affect the hotel as well as its competitors? Make assumptions where necessary.
3. How does the environment affect the hotel's formulation of strategies?
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