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Greenway hotel Case Study Essay

1.0 Introduction

Greenway hotel is a hotel chain of Great Britain, and there are more than 60 hotels in Britain. Now, Greenway hotel has a new small hotel chain headquarters in Germany, so they want to keep the half of the new hotel and renamed as Greenway part of the hotel group, the other half to sell. In order to have a better understanding of the Multinational Resourcing, we analyzed the Greenway hotel employees choose way.

Multinational Resourcing is

A procurement strategy in which a business seeks to find the most cost efficient location for manufacturing a product, even if the location is in a foreign country. (Virolainen, V. M. 1998). Under Multinational Resourcing, there are several strategies may use onto business environment as company direction to become competitive among industries such as Parent Country Nationals (PCNs),Host Country Nationals (HCNs) and Adopt a Mixed (PCNs + HCNs).

2.0 Problem

According to the article, because the new hotel is acquired, so many employees have left, so new hotels lack of employees in Germany. As is known to all, Greenway hotel is the hotel chain from the UK, so for the German business perspective, their lack of understanding of German information and business culture. Due to work in Germany, the hotel also has a problem which is the communication between employees, German employees speak German, but Britain’s staffs are using English, hence, it will be difficult to communicate between employees, and produce some problems.

Finally, the new hotel requires four months later will be opened, so short time is also a problem. These problems are the multinational companies outside their home countries to establish subsidiary possible problems, to solve these problems, the company can better development in countries outside of the home country.

3.0 Cause of problem

Case study showed that the old employees have departed, 70% due to buy so now, Greenway hotel requires a lot of new employees, just can make the new hotel can normal operation. Second, because of the new hotel is not in home, so they are facing the new management problem, German and British business environment different, in order to attract more guests, new hotels can’t expose more British management mode.

Third, due to the new employees have German and British, this will lead to the problem of language, make it difficult to manage the company. Finally, the head office for the time is short, this could lead to a new company open is not ready, it will affect the company’s reputation.

4.0 Recommendation
4.1 Lack of staff

Lack of staff that is every multinational enterprises expand when encounter problems. By buying companies, some employees may leave, because the company is not stable, it will make the new staff to reduce, so the new hotel need to recruit more staff. New employees should be good for Chinese people, I believe, is preferred, although this can make the home staff less employment opportunities, but this will be conducive to the development of the new hotel. McDonald’s, for example, McDonald’s in entering a new country, would face a lack of staff. So, they will recruit new employees, such ability can let a subsidiary functioning normally. McDonald’s choice of employees have their own ideas, grass-roots staff they generally choose the host state employees, but the manager will choose home staff, not only conducive to management, also can make the subsidiary can develop faster.

So the Greenway hotel should study the staffs choose way, so that we can better development in host countries. 4.2 lack of understanding of German information and business culture Due to Greenway hotel is a British company, the German problem and business culture is not understand. Therefore, the company cannot be accepted by most customers in Germany, may also than other local hotel, and also will reduce the hotel’s profit. Greenway hotel should hire a part of the German employees, because they know a lot about the domestic market, so , the hotel will be faster accepted by customers. Second, Greenway hotel should find some employees to do market research before the opening, so as to better understand customers’ needs and preferences of Germany.

Moreover, the hotels decorate those who can’t accord the British model, to apply to Germany. Like McDonald’s into other countries, for example, they will do market research, according to local custom to produce some suitable for local food, so that we can attract more guests. Second, their grassroots employees can choose host countries, but in front of the work to practice, so as not to not understand the workings of a McDonald’s. Greenway hotel can also use this way, it can be faster understand German problem and the commercial culture, let the new company can be faster to Greenway hotel group to make a profit.

4.3 The communication between staff

Because we choose is mixed way to recruit staff, so the employee communication will appear problem. British workers are speaking English, but German workers speak German, so they produce very big problems of communicating. We can use two methods to solve this problem. First, let the staff to learn German, arrange the tutorial, as soon as possible so that we can solve the problem of language. Second, can only by UK employees, top management of the underlying managers choose to master English German, grass-roots staff all adopt the German employees, so you can avoid the problem of language, but this method is less multinationals own characteristic .Now most multinational companies will choose the first method, because it not only to the home country employee job opportunities, but also can cooperate with host country staff, formed a new service mode, so that we can better attract customers and gain  higher profits for the company.

4.4 Preparation time is short

From the article, we know that Lincoln company gave only four months as a time to prepare, it is a challenge for the new company. First, they want to recruit employees, because employees 70% have left before. Second, they want to solve the problem of communication between employees, such ability can let the staff could work together. Third, because the two countries cultures are different. For these problems, 4 months of preparation time is very short, so, in order to know how to solve these problems, for example, McDonald’s when they set up shop in China is mainly for host countries, so that we can reduce the time of the staff.

Second, after the good employees, McDonald’s will be paid to staff training, let employees can adapt to the new job. Third, it has carried on the western food, Chinese fast food market survey, listened to the general public opinion. This survey is not common in China at that time. Fourth, to a large number of design novel and unique with the characteristics of McDonald’s advertising create a market in China, this is off the Chinese consumers’ appetite. Greenway hotel can also learn the McDonald’s to enter the Chinese way, hiring and training in Germany, and in training to send staff do market research in advance, and assign to Germany for a development strategy, so as to let the hotel to the development of better, still can save time to prepare.

5.0 Conclusion

Along with the deepening of economic globalization and the vigorous development of tourism industry, the multinational hotel group covers more than half of global hotel. Transnational expansion is the inevitable choice of hotel enterprises to seek greater development, global expansion has become the new century hotel enterprise important tourism economic phenomenon.

Traditional research in the field of international expansion of hotel enterprises based on the basis of economics and management, and based on the research of geography foundation is weak. Hotel enterprises transnational expansion means that break through the border of a country or region, into another country or region development, this is like a strong geographical spatial properties.

Hotel international expansion has become a trend. The expansion of the hotel will produce a lot of problems. So, find the ice can better to solve these problems for hotel development in host countries, bring more profits and business opportunities.

1. A survey of procurement strategy development in industrial companies. International Journal of Production Economics, 56, 677-688 2. http://wiki.mbalib.com/wiki/%E9%BA%A6%E5%BD%93%E5%8A%B3%E5%8 5%AC%E5%8F%B8

3. http://wiki.mbalib.com/wiki/%E9%BA%A6%E5%BD%93%E5%8A%B3%E5%8 5%AC%E5%8F%B8

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