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MANAGEMENT IN A EUROPEAN CONTEXT - Essay Example

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The recent economic downturn has led to a drop in the profit margins of almost all the hoteliers of the nation. The occupancy rate has dipped…
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MANAGEMENT IN A EUROPEAN CONTEXT
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MANAGEMENT IN A EUROPEAN CONTEXT

Download file to see previous pages... In order to find out the business environment in the two countries a PEST analysis of UK and Spain have been carried out. This would help in analyzing the business environments of both the nations. This study assumes significance in the sense that Sol Melia is planning to enter the UK market.
The study also analyses the industry framework using the Porter’s five forces model. This would help both the companies to analyze the hotel industry from the view of all the stakeholders and competitors. The study also suggests possible strategies for both the companies so that they emerge successful in their business plans.
In order to find out the similarities amongst the markets of UK and Spain a PEST analysis is carried out for both UK and Spain. The analysis would reveal the market conditions of the two countries as well as their demographics and the political factors.
United Kingdom consists of England, Wales, Scotland and Ireland. The country has a constitutional monarchy and operates under the realm of commonwealth. The constitution of the country is unwritten which contains statutes and employs common law.
Spain is located in Europe and has a parliamentary monarchial form of government. The country has a constitution which is approved by the legislature of the country. It has a multi party political set up in the country. (CIA World Factbook, 2009.).
UK is one of the leading nations of the world both in terms of technology and economy. The GDP of the country in terms of the purchasing power parity is about $2.226 million as of 2008.The real growth rate of GDP is pegged at 0.7% as of 2008.The break up of agriculture, industry and services towards the GDP is 1.3%, 24.25 and 74.55 respectively. The country has a strong labor force composed of 31.23 million people.
Spain has a mixed economy. The GDP of the nation in terms of the purchasing power parity is about $1.403 trillion as of 2008. The real growth rate of the county’s GDP is about 1.2% as ...Download file to see next pagesRead More
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