¶ … 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.
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...
Another important factor is that the modern Russian family structure also reflects the stress of the society as a whole. "Family stress is related to the local variant of the widespread crisis in the Russian economy (Wolfe and Vitebsky, 2002, p. 73) This leads to the question of how social roles are defined. Social roles are linked to the authority structure in the family and are usually hierarchical and patriarchal.
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