Artemis hotel is considering expansion in France. The prospects of growth in the next five years are some of the key factors that management is interested in to help it make this key strategic decision.
1. Industry and Company forecasted growth rates over the next 5-10 years
a. Positive
i. Expanding into the French market will help Artemis hotel add French dishes that it does not offer traditionally.
ii. Additional branches opened in France will help in increasing the revenue for Artemis hotel
b. Negative
i. The eating habits in France may limit the number of products offered, since there is high preference for French meals
ii. Over the next 5-10 years growth in France could be limited to major towns
2. 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 the high inflation rates.
b. Popular brands are always at risk of being counterfeited.
3. 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.
4. Government Regulatory outlook
a. The France 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 next year, in 2015 (Edward, C. 2013).
5. 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
6. 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.
References
Edward, C. (2013). France drowning in rules and regulations, critics say. Washington: Washington Post
Hospitality Net, (2014). French Hotel Industry Performances. France: Author
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