Four seasons case study
Case Study – The golden rule and a global strategy
By Andrew Paris
Florida Atlantic University
Middle east expansion: A risky concern?
Since the attacks of September 11th occurred in the United States, there has been a level of social, environmental, and political unrest. This unrest is not only among individuals, but also among businesses worldwide and Four Seasons is not excluded from that list. Most of the scrutiny that is felt is directed at countries and more specifically groups of the Middle East that seemed to be involved with, or to be blamed for the disturbances of September 11th. The case study clearly points out that political unrest between the Middle East and the United States could play a huge role in determining the expansion and over all success of that area (or lack there of).
Unfavorable economic and political conditions in international markets, including civil unrest and governmental changes, could undermine consumer confidence and reduce the consumers ' purchasing power, thereby reducing demand for leisure products like luxury hotels. In addition, boycotts resulting from political activism could reduce demand, while restrictions on the ability to transfer earnings or capital across borders which may be imposed or expanded as a result of political and economic instability could impact profitability for four seasons. Without limiting the generality of the preceding sentences, the unfavorable business environment, the current unstable economic and political conditions and civil unrest and political activism in the Middle East, and the unstable situation in Iraq or the continuation or escalation of terrorist activities could adversely impact international business.
Even with these economic and political factors to consider, socio-cultural factors also play a huge role in assessing risk for the development of a Four Seasons hotel in the Middle East. The four Seasons practices business in a European way (being
By Andrew Paris
Florida Atlantic University
Middle east expansion: A risky concern?
Since the attacks of September 11th occurred in the United States, there has been a level of social, environmental, and political unrest. This unrest is not only among individuals, but also among businesses worldwide and Four Seasons is not excluded from that list. Most of the scrutiny that is felt is directed at countries and more specifically groups of the Middle East that seemed to be involved with, or to be blamed for the disturbances of September 11th. The case study clearly points out that political unrest between the Middle East and the United States could play a huge role in determining the expansion and over all success of that area (or lack there of).
Unfavorable economic and political conditions in international markets, including civil unrest and governmental changes, could undermine consumer confidence and reduce the consumers ' purchasing power, thereby reducing demand for leisure products like luxury hotels. In addition, boycotts resulting from political activism could reduce demand, while restrictions on the ability to transfer earnings or capital across borders which may be imposed or expanded as a result of political and economic instability could impact profitability for four seasons. Without limiting the generality of the preceding sentences, the unfavorable business environment, the current unstable economic and political conditions and civil unrest and political activism in the Middle East, and the unstable situation in Iraq or the continuation or escalation of terrorist activities could adversely impact international business.
Even with these economic and political factors to consider, socio-cultural factors also play a huge role in assessing risk for the development of a Four Seasons hotel in the Middle East. The four Seasons practices business in a European way (being
Cited: www.Wikinvest.com www.helium.com www.eccssa.org www.wikipedia.org www.investopedia.com www.fourseasons.com www.books.google.com