Question

Assess the impact of the environment on the Great Eastern Hotel. Make assumptions where necessary.

a. The economic turbulence has a positive impact on the hotel.
b. The U.S. government's bailout negatively affects business travelers.
c. The hotel benefits from executives' travel restrictions.
d. The hotel faces challenges due to reduced travel-related expenses.

How do customer-related factors affect the hotel as well as its competitors? Make assumptions where necessary.
a. Customer-related factors have a minimal impact on the hotel industry.
b. The hotel gains a competitive advantage through customer-related factors.
c. Customer-related factors lead to increased expenses for the hotel.
d. The hotel is unaffected by changes in customer-related factors.

How does the environment affect the hotel’s formulation of strategies?
a. The hotel adapts its strategies based on economic conditions.
b. The hotel's strategies remain unchanged regardless of the environment.
c. Environmental factors do not influence the hotel's strategic decisions.
d. The hotel's strategies are solely determined by internal factors.

Answer 1

The environment has a significant impact on the Great Eastern Hotel, with both positive and negative effects on supply and demand. Customer-related factors can provide a competitive edge or increase costs, and the hotel must adapt strategies according to environmental changes to stay competitive.

Step-by-step explanation:

The impact of the environment, including economic conditions, on the Great Eastern Hotel, is multifaceted. Considering economic turbulence, it may lead to changes in supply and demand for hotel services. For example, if economic turbulence leads to a downturn, this could reduce the demand for luxurious hotel services as people and businesses cut back on spending. However, it could also lead to some positive impacts if the hotel is seen as a value proposition compared to more expensive travel options.Government bailouts negatively affecting business travelers suggest a decline in demand for hotel services from this customer segment. Executives' travel restrictions, on the other hand, might positively impact the hotel if it offers a high standard of amenities suitable for executive stays and remote work. Lastly, reduced travel-related expenses could challenge the hotel if it cannot adjust by offering competitive prices or alternative value additions.As for customer-related factors, they can significantly impact the hotel industry. Customization and personalized services could become a competitive advantage but also increase operational expenses. The environment plays a crucial role in the hotel's strategy formulation because it must adapt its strategies to remain competitive and financially viable. This includes responding to changes in demand and economic conditions, emphasizing the importance of flexibility and innovation in business strategy.Conclusion The Great Eastern Hotel, like others in the industry, is subject to various environmental impacts that can affect both demand and supply. A hotel's strategic response to these impacts plays a vital role in its success and can include adjustments in services, pricing, and marketing efforts.