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Business, 31.07.2020 14:01 kactus

The turbulence inthe economic environment has resulted in policy changes such that banks, financial services firms, and automobilefirms—which all form an integral part of the hotel’s target markets—have cut travel-related expenses for executives. Nolonger can executives of these firms travel first class on their business visits; they must now use only economy class travel. Moreover, they are now required to cut hotel stay–related expenses, so they have to stay in three- and four-star hotels andnot pay more than USD 200 per night. These restrictions have had a major impact on hotels like Great Eastern, whichDebbie and her executives must resolve. The U. S. government is bailing out banks and financial institutions, and since Great Eastern has a major influx ofbusiness travelers from U. S. firms, it is important that Debbie and her team consider the impact of government policies onthese firms as they seek a solution. 1. Assess the impact of the environment on the Great Eastern Hotel. Make assumptions where necessary.
2. How do customer-related factors affect the hotel as well as its competitors? Make assumptions where necessary.
3. How does the environment affect the hotel’s formulation of strategies?

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