Reflecetion paper Essay Example | Topics and Well Written Essays - 2000 words

Reflecetion paper - Essay showcaseThis memo lead address strengths and weaknesses, as well as the risks and opportunities of the expansion. Opportunities 1) securities industry expansion through economies of kitchen range and scale. Understandably, by expanding to Italy, we be already growing our mart share without the high costs of starting a new company in Italy. Its existing revenues and market share will be added to ours. At the resembling time, from Italy, we can expand further in Europe too. 2) Trend of merger and acquisitions (M&A) in the tourism industry. M&A is the trend in the global tourism industry, including hotels. The articles from Warwick Clifton, The Global Hotel Industry Big, Beautiful and Branded? embark on One and Part Two, highlight that M&A is becoming more prevalent across regional and national markets. International hotel chains are gobbling up local anesthetic independent hotel chains, in order to quickly expand across the world. We have to take advan tage of M&A and purchase authorisationly compensable chains to purchase. Threats 1) Weak Euro. An article from Wharton shows that a weak Euro is bad for hotel communication channel because of dampened consumer confidence. When they cut back in spending, they do so for luxury goods and services, and that includes hotel services. Furthermore, a weaker euro means lower spending power. We can see potential increases in the prices of goods and services that we need in operating these Italian hotels. 2) Damp economic climate in Europe, in general, and Italy, in specific. The economic crisis is hitting several countries in Europe hard, including Italy. This can affect business in Italy for the next couple of years or more. 3) Mixed success in hotel business. The article Market Conditions Tighten for Italian Hotel Industry indicates uneven success in the Italian hotel industry. It says Declines for the Padua, Genoa and Bologna markets highlight the vexed market conditions, while the sea sonal market of Taormina & Messina in Sicily reported double-digit RevPAR growth (+18.4 percent) YTD (Market Conditions). We cannot expect conterminous high return for our acquisition because of mixed business revenues due to the slack in the business climate. Strengths 1) full(a) control of how the chain should be managed. The top management can exert transformational changes that are required to shake up the standards of the Italian chain. The home country management will have the power and authority to enact indispensable changes to improve the quality of services in the chain. 2) Lower costs in terms of acquiring local knowledge and familiarity. Local managers and employees already know the cultural, operational, and budgetary idiosyncrasies of the host country. It is assumed that the existing human resources are familiar with the market characteristics enough to no longer need a costly comprehensive market research. 3) Empowered organizational culture can be used to arouse quality standards. We can enhance the standards of the hotel enough to warrant higher hotel rates. We can use the empowered approach of the Italians to let them manage and birth organizational changes that will benefit them as employees. 4) Acquisition expands HRM knowledge and skills for multinational operations. If we want to be a multinational hotel business, we must not be afraid of learning from different cultural environments. This acquisition will help our home HRM gain