Brunt Hotels Report(1) - Background Overview Brunt Hotels...

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Background & Overview:Brunt Hotels, PLC is a hotel chain in the United Kingdom. They currently owns more than 60hotels throughout the UK.The headquarter in situated in France. Half of the new hotels in Francewould be retained and rebranded as a part of the Brunt Hotels Group and left will be sold, whichwill help to achieve the Brunt Hotel’s strategic objective. The hotels are typically situated in thedowntown. In the location many local attractions are situated, which will help the touristspending much time outside of hotel rooms. The organization has decided to implement anethnocentric approach. The organization would like to own 150 hotels in the next five years.Their ten year plan is to own 300 hotels across Europe.The organization would like to own 150hotels in the next five years. Their 10-year plan is to own 300 hotels across Europe. This is anambitious target, so it is important that the organization finds an effective formula to operatesuccessfully in other countries. Brunt management decided that because this is their first ventureinto a country outside the UK, they want to use PCNs to set up the new hotels and that onlyinternal candidates should be considered. They think that this is important so they canincorporate the organization’s values. However, they believe that once the hotels are up andrunning, HCNs could be hired. The management vacancies must be filled as soon as possible. Intheir company literature, the organization states that their core values are: To Provide excellentlevels of customer service to all guests. To provide a clean and comfortable environment forguests and staff. To Recruit and retain excellent staff & to Support and develop staff so they canreach their full potential. The organization has decided that they want to implement anethnocentric approach.1
Recruitment Strategy:Since the organization has decided that they want to implement an ethnocentric approach, acombination of both PCNs and HCNs should be hired.Parent Country Nationals (PCNs)Host Country Nationals (HCNs)Control & Coordination of the Head Quarter ismaintained.Low cost of hiring-Lower labor costCultural similarity with parent companyensures transfers of Business/Managementpractices.No problems with language & culture.No work permit required.Technical and Managerial competenceIncreases acceptance of the company by thelocal communityTalent available within companyFamiliarity with the socioeconomic politicaland legal environment Greater controlGovernment policy may encourage hiring ofHCNsCompany experienceContinuity of management improves as HSNsstay longer in positionExperience provided to corporateKnowledge of environmentArguments against PCNs*Expensive orientation programs to orient the persons to the foreign country’s culture*Employee will be unfamiliar with the foreign environment

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