Entry Strategy of Hotel and Restaurant Industries - Dissertation Example

Download file to see previous pages During analysis, not only each of the units are highlighted but a close look at their interrelation is also spotted and noted down. Based on the results future plans to combat the unfavorable implications are chalked out and plan to derive benefit out of favorable conditions are strategized (Bensoussan & Fleisher, 2008, p.176)

Political Factors:
The significance of the political factors is of high importance to the organization. Business units look for the infrastructure which the government provides in order to facilitate their line of operation. The government policies do affect the business in a direct way. During the scanning of political factors, issues relating to the politics of different areas are all covered. The areas include the organizational, regional, national, and international aspects. The political factors within the organization include the changes relating to the ownership of the organization in the form of amalgamation, merger, acquisition, and de-merger. Change in the position of key management personnel is also noticed. Another important area that comes under the political factor is the effect that organizations have to face due to change in the government both at the regional and national levels. Multinational companies also have to take a close look at the official policy which a government offers towards other countries. Political decisions regarding privatization or nationalization of companies do also have a huge impact (Wiiliams & Green, 1997, p.162)

Economic Factors:
The economic factors relate to the elements which affect the financial position of the organization. The economic factors closely deal with the monetary and fiscal policy of the government. It is quite obvious that the economic downturns relating to recession or inflation also do affect the organizations. The strength of the national economy is quite a major factor that organizations do consider. Change in taxation rate and bilateral trade agreements between the countries are also closely supervised (Walters, 2006, p 208)

Social Factors: The study of the societal condition is a prerequisite for any business. Any industry exists on the customers. Close research is required on them to study their habits; their lifestyle. The cultural aspect along with the values is quite significant. The study in economic level of a different class of society is needed so that the pricing of the products according to the demand is done. Age and the distribution of the population along with other features of demography are analyzed under this section. The study enables an overview of the population study over a particular or whole market segment (Analoui & Karami, 2003, p.76).

Technological Factors:
In the 21st generation, technology has taken the biggest leap among all. The internet has made our job very easy and accessible to any service is no more time-consuming. Day and day out there is an up-gradation of technology in every field. The organizations need to keep them updated on a daily basis or else would find them to be the users of obsolete technology. ...Download file to see next pages Read More