International Business Project; part 5

Areas of Influence

Current State in France

Political

France is a politically stable country that is led by an elected President. The French government is democratic in nature and this favors businesses in that country. When it comes to security, the government has an able police force to protect people and businesses from criminal activities. This makes that country suitable for international business. If a company would wish to expand its business to France then it would not be a bad idea as the business would be assured of its security as the country has good security agencies and is also politically stable.

Socio-Cultural

French people are still struggling to ensure that their culture remains relevant in this ever-changing world. Although the U.S boasts of having people of diverse cultures. France is mainly made up of French speaking people. Therefore, it would be crucial for people doing business to study French as most of the people in that country speak that language.

Apart from that, French business people always observe neatness and fashion as they engage with potential business people. Therefore, one should be neatly dressed and well groomed in order to win their first impression.

French people are not always in a hurry in order to save time. Therefore, it would be wise for a business to allow its workers to have a good time for social interaction during breaks. When doing business with French clients, it is paramount for one to win their trust in order for a long-term business relationship to be developed.

Economic

France is highly developed just as its neighbors like Germany and Britain. Its annual Gross Domestic Product is extremely high and this shows that the country is economically stable. Though some countries, such as the United States of America, were hit by an economic meltdown, France was affected minimally and has since recovered. A company expanding its market to France would face stiff competition from other domestic and international firms operating in that country. Therefore, a company expanding its market to France should use many of the marketing strategies to ensure that the company does not incur losses. Apart from that, the country has many educated people hence it would be easy to find well-trained workers in that country. However, the French government imposes high taxes on business when compared to other countries and this can affect businesses that are not used to such high taxes. Apart from that, France does not have a free market economy, but one that is slightly regulated by the government. This can affect businesses. However, the government is trying to privatize some of its property.

Geographic

France is the largest country when compared to the other countries within the European union. Therefore, it would be suitable for a business, as it would enjoy a wide customer base in that country. It also has many urban centers as well as rural areas to suit the needs of various businesses. However, the southern part of France is prone to earthquakes and these could lead to destruction of property and loss of lives. Some areas, which are covered by forests, are also prone to forest fires, which could have negative impacts on international business.

Technology

France is a highly developed country since it has well-developed infrastructure. Their advanced use of roads, railway systems and airports ensure that people travel efficiently from one point to another, have adequately networked the country. Communication systems are also advanced as there are both satellite and fiber optic systems throughout the country. These systems ensure that both people and businesses get access to the internet.

Legal/Regulatory

There are many laws in the Republic of France which guide how businesses operate. Apart from that, those laws govern how: taxation is to take place, auditing, employment, trading and banking. These laws ensure that businesses are protected from market failures such as monopoly. Apart from that, they ensure that employees are treated well. Child labor and discrimination is not allowed. However, taxes affect business operations, but generally, France is a great country for conducting business.

Environmental Forces

Challenge

Generic Strategy

Justifications

Industry and Company forecasted growth rates over the next 5-10 years

7. The eating habits in France may limit the number of products offered, since there is high preference for French meals

8. Over the next 5-10 years, growth in France could be limited to major towns

Develop Partnerships

Developing partnerships with major firms in France and other countries. These alliances manifest a strategic determination to adopt an overall approach of group to group that is beneficial for both customers and partners (Peichl, Pestel and Siegloch, 2013). The company also focuses on their employees, training, and social advancement.

Key Risk Factors in your industry and company

a. Overall growth of hotel industry was 4% for financial year 2012-2013 (Hospitality net, 2014); this is a low growth rate considering high inflation rates.

b. Popular brands are always at risk of being counterfeited

Develop center of expertise

The hotel has to leverage itself for the experience to develop skill platforms of high level; interconnected units will extend throughout the business and create a unique system. Sharing of the best practices and the pooling of costs will enhance performance at the hotel’s brands, give support to the hotel owners and guarantee the customers availability of the best services.

Current financials for your company

a. Artemis hotel currently operates in Greece and Amsterdam. The company has acquired a loan of $500,000.00 USD to facilitate initial expansion into the French Market.

Divestments of non-strategic businesses

The hotel can carry out non-strategic assets’ disposal such as, the sale of its subsidiary hotels into consortiums that are special situations in several parts of the market.

Government Regulatory outlook

a. The French government is strict on the requirement for facilities to be used by disabled clients and staff.

b. More regulations on sanitation and safety are expected to be implemented in 2015.

Make improvements on political influence

Artemis hotel should be influenced by the political and legislative conditions of France. In the hotel industry, Artemis Hotel does not face a huge threat due to the good relations within the country.

Competitive Landscape In the U.S. and in your target country

a. The American market is more competitive, since the market absorbs more competition compared to France

Implementing their intended goals in France

All marketing plans must include a control component of the actual performance comparable to planned performance. Through collecting performance data, the gaps between the objectives and performance will be evaluated regularly to pursue required corrective action (Shilei and Yong, 2009).

Quality of foreign staffers

a. How trained or educated are they - or will they need to be and how quickly could their skill sets meet your needs?

i. Most of the workers that are available in France are specifically trained for French cuisine and hospitality. This may require importation of staff with knowledge on international meals and hospitality guidelines that may not be found in France.

Enforce training and development

Human resource managing the demands of the employees, as well as a reduction of undesired turnover. Other components include: the development of a succession plan, layoff plan, promotion policies, and ensuring compliance with local labor laws; these policies focus on career advancement through training (Yüksel, 2012).