The Global Hotel Group (GHG) operates hotels in most of the developed countries throughout the world. The directors of GHG are committed to a policy of achieving ‘growth’ in terms of geographical coverage and are now considering building and operating another hotel in Tomorrowland. Tomorrowland is a developing country which is situated 3 000 kilometres from the county in which GHG’s nearest hotel is located.

The managing director of GHG recently attended a seminar on ‘the use of strategic and economic information in planning organizational performance’.

He has called a board meeting to discuss the strategic and economic factors which should be considered before a decision is made to build the hotel in Tomorrowland.

Required:

(a) Discuss the strategic and economic factors which should be considered before a decision is made to build the hotel.

(b) GHG has always used local labour to build and subsequently operate hotels. The directors of GHG are again considering employing a local workforce not only to build the hotel but also to operate it on a daily basis.

Required:

Explain TWO ways in which the possibility of cultural differences might impact on the performance of a local workforce in building and operating a hotel in Tomorrowland.