Developing a Change Management Strategy for Four Seasons Abroad Essay

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Seasons' Executive Vice President Human Resources and Administration, Mr. Nick Mutton

Analysis of the takeover of the George V Hotel in Paris, France, as well as providing recommendations concerning Change Management processes appropriate for establishing a new hotel in a new, unfamiliar cultural setting.

There are 6 forms of environmental influences that are at work in the PESTEL framework. These forms consist of political, economic, social, technological, environmental and legal factors. The first letters of each of these forms make up the acronym PESTEL. Each of these serves as an interlinking and impactful factor on the others, so that none of them are independent but rather all working together to provide a total sense of the whole. In other words, political influences will impact economic factors and vice-versa and the same relationship can be applied to all elements of PESTEL.

A PESTEL analysis for Four Season's takeover in Paris consists of the following macro-factors most relevant to this situation.

P (olitical): The government of France may be viewed as a stable; however, the tax rate in France is so high and such a burden on citizens that famous ones, such as actor Gerard Depardieu have renounced their French citizenship and gone to live in Russia. There is a great deal of frustration among French citizens as a result of the policies of the government. The political system has also helped to foster a spirit of unaccountability among managers as they typically refer things "to the boss" (Hallowell, Bowen, Knoop, 2002p. 13).

E (conomic): The 35-hour work week is something that would have to be adopted. Tensions between labor and management groups are also a factor that could impact the political, social and economic situation of Four Seasons in Paris.

S (ocial): Paris has a grand history of society with famous figures and events taking place there for centuries. The legendary George V Hotel is one such example of an historic place that has great appeal to Four Seasons.

T (echnological): Renovations would be in order but the technology to do so is available. Providing a luxury experience to travelers is something that is in demand especially in a nostalgic place like Paris.

E (nvironmental): These consist mainly of political, economic and social barriers, which result from the socialist leanings of the French government but which do not present a significant problem for business operations.

L (egal): 35-hours of work per week is the law in France.

B) PESTEL for Turkey

P: The political situation in Turkey is currently exceedingly unstable as Erdogan has essentially resolved to wage war on the Kurds in northern Syria, who are allied with the U.S. At the same time he appears resolved to continue his war against Assad, the Russians, the Iranians and the Iraqis, while allying himself with the Saudis and the "moderate rebels" aka terrorist mercenaries fighting to destabilize the Syrian regime. With a deadly blast occurring recently in the heart of Turkey's capital, the arrest of journalists critical of Erdogan, and the acknowledged fact that Turkey is smuggling ISIS oil out of Syria, the political situation presents numerous challenges for a company looking to do business honestly, above-board, and with a sense of stability. Erdogan represents none of these qualities.

E: The economic situation in Turkey has been destabilized as well by the fighting in the Middle East. Headlines continue to show that the Turkish lira and Turkish bonds are in freefall as a result of security concerns.

S: Society is very distrustful of Turkey's main political leader Erdogan, who is attempting to squash all opposition to his regime. While he may be under the protecting umbrella of NATO, Erdogan's impact on social factors in Turkey is negative.

T: Technological factors are not an issue in Turkey as it is a relatively modern state, albeit not in the same sense of Westernized nations.

E: Environmental factors are challenging as Turkey may soon find itself embroiled in an escalating crisis between several world powers.

L: Legal factors are a challenge here as well as Erdogan is known for dispensing the law for his own interests (as can be seen in the arrest of opposition party leaders/journalists as well as assassinations -- not to mention the illegal downing of a Russian fighter jet over Syria). The facts speak for themselves.

Thus while it might not be difficult to attract Turkish citizens to the staff of a new hotel in Turkey, it might be difficult to attract outsiders from Western nations to live and work in Turkey.

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C)

Strategic drift and lack of alignment in Paris should not be a significant issue when compared to the stakes evident in Turkey. Paris has recently been the victim of a terrorist attack, and this presents numerous challenges for ensuring staff and travelers of the safety of visiting the city. However, Turkey is nestled right in the heart of the terror war and is obviously much less stable. The possibility of drift and a lack of alignment therefore is much greater in Turkey than it is in Paris from simply an environmental, political, social, and economical perspective.

Q2:

A)

Four Seasons is not a learning disabled organization because of its core value propositions and its main cultural vision, which is to adhere to the Golden Rule no matter where business is being conducted. The application of the Golden Rule allows Four Seasons to navigate a path through cultural differences based on the universal adhesion to humane principles and hard work. One of the reasons that Four Seasons is not learning disabled is that its managers thrive on the work ethic bolstered by the company's virtue ethics system which promotes and fosters due diligence, personal responsibility and a spirit of mission that unites and unifies the task force.

B)

Potential issues for a successful transfer of the company's organizational culture to the new hotel in Turkey may be that Turkey's culture is different from the West's. It may be modern but it is still rooted in Arabic discipleship and culture. Its views towards women, religion, economics and education are vastly different. However, the organizational culture should be able to translate well, as the Golden Rule is applicable in any walk of life and the discipline fostered by Four Seasons' management is efficient enough to meet any cultural challenge.

Q3:

A)

Potential restraining forces and efforts necessary for successful change should be addressed by Lewin's 1947 three-step model, which holds that by making a radical change, minimizing the disruption of the structure's operations and making sure that the change is permanent, the company can overcome any obstacle related to the PESTEL framework. This should be possible in France where the PESTEL obstacles are less insurmountable than in Turkey, although even in that region, if one accepts the environment, there is possibility for success.

B)

Regarding changes in service orientation in respect to Turkey's culture, some education should be given on the Arabic culture of the country. Moreover, the physical environment of the hotel should embrace the cultural vision of the country and not attempt to impose a Western vision -- although some aspects of Western thought will likely appeal to both Turkish citizens and visitors; therefore, it is not essential that the hotel be authentically Turkish but rather a compromise between Western and Middle Eastern cultures.

Q4:

A)

A culturally effective leadership style, which the future GM should possess to be effective in his/her new cultural context (Turkey) is servant leadership, which seeks to provide for the needs of all followers, visitors and workers first and foremost. This style follows in the footsteps of the company's mission and vision of itself as an adherent of the Golden Rule to treat others as you would like to be treated. Transformation leadership would also be a welcome style as it can help guide, through Emotional Intelligence, Social Intelligence and transparency, the workers to the necessary goals established by management for its operations team.

B)

The most influential internal and/or external stakeholders that the GM needs to take into account during the change process of establishing the hotel in Turkey are the workers, the visitors, and the political leaders of Turkey. There should be a good relationship with all three because business cannot be conducted otherwise. All three will help to make or break the company, thus the company should do its utmost to cultivate positive attitudes among these three stakeholders.

Q5:

A)

Events of resistance in Paris during Four Season's takeover consisted of physical renovations, adapting to French culture, effecting an organizational culture that could embody French law and principles while meeting the organizational aims and cultural principles of the firm, developing a task force, implementing senior leadership practices, and creating close ties between all stakeholders.

Potential sources of resistance amongst service staff in the new hotel in Turkey would consist of cultural divisions, organizational culture discrepancies, possible inequities between management and staff, and a lack of senior leadership (as a result of the instability associated with the country's current….....

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