1. Issues: The main issue in this case involves the ability of Four Seasons Hotels and Resorts success of entry into Paris, France. Management struggles with regards to integrating the Four Seasons corporate culture and standards into the French business system and the ability of staff to create exceptional customer satisfaction as well as a permanent and recognizable stance within the French market.
2. Discussions: The issues reflect the challenges faced by businesses moving from one macroeconomic environment to another. Insights into globalization are where management, investment and markets are crossing borders and the issues arising there off. Four Seasons a group operating hotels originating from America is financed by a middle Eastern Prince Waleed, to operate a French based King George hotel venture.
France' macroeconomic environment is largely dominated by government regulations which in the Americas will be viewed as excessive. Government regulations in France are largely made up of socialists that include among other issues high taxation and employer friendly labor laws. Labor Union wields a lot of power. It is against this background that Four Seasons motivated by the high rewards (incentives) enter the lucrative France hospitality industry. Four Seasons is willing to forgo its distinctive characteristics, and manage the environmental factors to its advantage.
The motivation for Four Seasons to pursue the difficult market of France is to get a handle on the market potential with expansion into France. An incentive for Four Seasons to operate the F. S. George V. stems from Prince Al Waleed’s offer to have Four Seasons manage the hotel, Four Seasons desired to be in Paris because it would establish them powerfully in the French Capital. Foreign investment of Four Seasons to enter into Paris cost $227 Million dollar investment, this huge investment allowed for an increase of GDP in France. Four Seasons foreign investment into Paris demonstrates an...