Adaptation of a Business Model Overseas Essay

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Harmon Hotels

The main problem that Harmon Hotels is facing is that of cultural differences. As a corollary of this problem, the organization has no experience as a global company: all its hotels are in the United States and the expansion to France is the first part of a larger expansion project to Europe. As a consequence, the company will face communication and integration problems as it moves to the European market.

There are several additional issues to this core problem, which need to be listed before recommendations are made. First, the European market in general, and the French one in particular, is a pretentious, difficult market. Customers have particular expectations and it will not be enough to replicate the Harmon Hotels business model that works in the United States to the European market. A certain level of customization will be required.

Second, the managers that are moving to France to lead the process seem inadequate for the job. It is true that they would like to work abroad, which shows the positive will to be part of a global organization.

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However, they do not speak French fluently, which is imperious for the French market, particularly given the job specifications, including the fact that they will need to lead the recruitment and selection process for staff in the new French hotels. Not speaking French will seriously limit their capacity to lead and manage effectively, so the first recommendation would be an intensive French course for the managers.

Another important issue to be discussed is the compensation package. The compensation package for managers has been customized for the U.S. market. It is worth an analysis whether this package is fit for the European market. The case study shows that….....

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