Greenway Hotel is a budget accommodation business and owns more than 60 hotels throughout the United Kingdom. These hotels are located in downtown, it is easily accessed to the public transport and it is suitable for tourist and business travellers. The chief of Greenway Hotel decided to rebrand the new hotels in Germany as the part of Greenway Hotels Group. The firm decided to use an ethnocentric approach and send their UK-based managers to Germany to guide the reopening of the hotels in four weeks. Effectively all measures of international business activity designate that the world has become a global marketplace. This tendency toward globalization presents greater strategic challenges for most firms (Pamela S.
Lewis, Patricia M. Fandt,1991). To bring a company or organization to global level it’s not that easy. The options about local adjustment and global integration apply to all sections of a basic business strategy. It can be argued that differentiation and integration represent the unexpressed strategic problem faced by the MNCs (Drahokoupil J., 2014). In here differentiation is meant by every country has different type of formality, language, goals, time orientation and culture.
Many organisations actually ventured themselves across different countries. These companies can take different strategies on how they will manage their workers across different subsidiaries. Based on the case study, the organization would like to own 150 hotels within the next 5 years. The company have asked for what kind of multinational strategy they should adopt and to understand the benefits of the approach. The extremes are the ethnocentric strategy, where expatriates are sent out from HQ because they “know what is better and good” (about organisational policy or specific skills or practices), and the geocentric orientation, where planning for international tasks is just one part of global HRM planning (Brewster, Houldsworth ; Sparrow, 2016). This report will cover the problems, causes faced by Greenway Hotel in the case study and recommendations will be given as a solution to solve the issues faced.
