Assignment 7: Building Effective Diagnostic SkillsMy overall strategy would involve:1. Emphasizing the need for renovation in the face of competition.The franchisees must be made to appreciate the need to protect and preserve their investment byupgrades and renovations. They should be convinced to write off losses in other businesses instead ofdiverting the hotel’s profits.2. Showing the franchisee investors the numbers.Profit margins from higher room and service tariffs would ensure a higher return.3. If the franchise is cancelled, a back-up plan has to be in place.