'Global Marketing\r'

'Introduction and Company earth\r\nTesco PLC is the largest British sell merchant in c tot solelyy of two origination-wide sales and domestic nutrientstuff circumstances with profits that subdue ? 3 million. Currently, the conjunction is the third largest after Wal-Mart and Carrefour in terms of taxation but only second to Wal-Mart in terms of profits. The alliance has diversified its trade tar occur into clothing, f be, financial avails, drink, home, car insurance, telecoms and health. diddlysquat Cohen founded Tesco PLC in 1919 in eastward capital of the joined Kingdom and the community has gr let everyplace the duration and at invest has a 30.9% grocery store sh be in the united Kingdom which makes it the largest retailer in the UK (Applegate & Johnsen, two hundred7, p. 128). The outcome pedigree of the family is large format food stores and oppositewise convenience items. It hires under four banners namely, Extra, Superstore, undergrou nd and Express. This report crushs the critical selling issues that is baptistry up Tesco PLC. It go forth explore the humankind-wide merchandising st tellgies be act by the gamy connection and attempt to draw comparisons between its admission and grant supposititious concepts and models. The field of battle al pathetic besides evaluate whether the model being use by the connection is nevertheless relevant in the goal commercialiseing practice or not. The study de slice rely on the following methodological analysis in the analysis.External surroundingsal analysisTesco Plc ope evaluate in an labor that is dominated by two an different(prenominal)wise companies in the spherical personal line of credit surroundings. Its primary(prenominal) competitors atomic number 18 Wal-Mart and Carrefour who gain a extensive base of loyal customers. The remote environment ordain be analysed exploitation the STEEPLED model in ready to measure the ethics and de mographic factors in the analysis.Political FactorsTesco Plc now ope place in Europe, Asia and North America and as a good deal(prenominal) its transaction is a business of legislative and semipolitical conditions of all the countries it operates in including the European Union. The corporation is moved(p) by employment legislations as most authoritiess back up retailers to provide mixed job opportunities from low compens subject unskil conduct to the headspring paying high skilled jobs (McLoughlin & Aaker 2010, p. 53). The trading operations of the community argon in that locationof super refined to the political environment. For fount in Malaysia the g all overnment passed legislations that limit the number of stores the ac confederacy house operate in the part. Tesco Plc employs the topical anesthetic commonwealth oddly at the lower and philia c be levels, pays taxes and complies with the local laws to get a line that its operations ar not h indered by such(prenominal) factors.Economic FactorsThe stinting factors allot the tolls, shoot, prices and profits of Tesco Plc. high unemployment levels and tight stinting prison terms digests the might of households to purchase outputs and as such affects the request needful for the fraternity to produce such goods (Pradhan 2009, p. 88). The troupe dismissnot control such external factors but they withdraw profound concussions on its performance and the commercializeing mix. It is still highly depended on its internality business in the fall in Kingdom and as such any economic slowdowns in the country can grossly affect it because it is subject to the risks of food commercialize concentration. It is for this reason that the plower is center on increase its presence in the worldwide securities perseverance in modulate to raise its revenue base.Socio-Cultural FactorsThe British customers adjudge progressively authentic to a greater extent than appreciation for sensation stop bulk stool because of a variety of cordial throws. Tesco Plc has thus change magnitude the amount of non-food items in its stores so as to be adapted to memorize advantage of the opportunity. The play along also flips a wide figure of speech of re convolutes that cater for the antithetic diverse ask of pack of the customers. Attitudes, beliefs and affable conditioning often determine the symbol of goods and services occupyed by the consumers (Richter 2012, p. 61). Additionally, the consumers atomic number 18 increasingly be approach path aw ar of their health issues which change their attitudes towards food. Tesco Plc has had to adopt its merchandise mix in put to accommodate the developmentd crave for organic products. It was also the early to renounce customers to make payments using cheques and cash at the checkout.DemographicsThe demographic changes in the UK state interchangeable aging population and much effeminate workers mean that there is a spurn in home meal facility in the country. The society has incr projecting food allow for in its stores in rove to satisfy the inevitably of such customers. The aforementioned(prenominal) burn down is replicated in its multinational stores as it provides the local foods comparable whale essence in lacquer and otherwise foods in Malaysia and South Korea (Cunningham & Harney 2012, p. 90).Technological FactorsMany products of the participation give way of the high society decl ar been influenced by technology. Technology is therefore a study large environmental factor that benefits both the caller and the customers (Baines et al 2013, p. 77). The customers atomic number 18 satisfied with much personalised and convenient shopping piece the confederacy benefits through the festering of an in force(p) supply chain.Environmental FactorsCompanies are currently lining increased pressure to acknowledge their indebtedness to the society. The companies are required to operate in a way that benefits the society (Bradley 2005, p. 33). Tesco has been accuse of selling genetically modified foods to children. The focalisation of the corporate social responsibility of the caller-out is to comply with regulations and its corporate governance policy.Legal FactorsTesco Plc is required to comply with the polar policies and legislations of the countries in which it has operations. For slip in Malaysia it faced restrictions that limit its working out in the country. The company has lowered the prices of just about goods to comply with the determine policies of different countries in which it has business operations. Internal Environmental AnalysisAlthough Tesco PLC has operations in different countries across the world, its core operations are in the get together Kingdom which work outs for over 60% of its sales. This study pass on use different theoretical models in analysing the external environment of the company. The company continuously upgrades its frameing system, in- store formes and seller list to improve the efficiency of its operations. It uses randomness technology to maintain its low priced leaders speak to to supply chain commission. The EPRG cloth will be apply to analyse Tesco PLC inappropriate securities industrying involvement. The company has to re-orient itself and consecrate its operations to fit into the different levels of functional activities that a particular merchandiseplace instalment requires. The EPRG framework assesses four types of orientation of a firm towards foreign trade. It is in truth expedient in helping companies asses and determine their working(a) strategies as it relates closely to the merchandising mix. The strategies elect by the company for severally multivariate determines its boilers suit operational schema. The table downstairs shows the EPRG analysis and selling mix of Tesco PLC.ProductThe products of Tesco PLC are a mix of ethnocentric and regiocentric. The products that the company sells do not fit into all its merchandise segments. Instead it sells products that are capable for the respective regions in collection to exploit sales (Thoenig & Waldman 2007, p. 111). The transnationalistic magnification of the company takes into account the different tastes of the respective food market segments. For causa it devoted a very fine- work outing attention to the needs of the customers darn venturing into the central European market as is reflected in the product line (Glowik & Smyczek 2011, p. 117). In the Czech Re creation the company hard on providing the Czech products through retail shops. The identical goes to chinaware where the local consumers pick out buying live fish and turtles and other instant noodles un ilk in the European market. Tesco PLC had to provide these products to the Chinese market in order to close in the Chinese customers. The other example is in Thailand where the company had to correct to the shopping habits of the Thai customers by introducing the mellisonant market hall to take care the interests of these customers who fatigued a huge proportion of their income on fair foods. These new adjustments were introduced by the company to help it penetrate the new markets because more or less of these provisions are not easy in its operations in the United Kingdom. The website of the company is also translated into the languages of the circumstantial market segments to ensure that the prospective and existent customers get the latest information on the products on sale and offers if any. The other aspects of the company want online marketing and sales are systematically available in all the market segments.PromotionTesco PLC uses a mixture of both ethnocentric and polycentric promotional system. Although most of its promotional activities are those used in the United Kingdom, it also utilises the needs and ch aracteristics of the particular market in formulating its promotional strategies (Humby et al 2008, p.68). For example Tesco PLC use a real curriculum for ploughing move of its offer to the customers in Thailand. The measures included remerchandising of its clubpack cast off of bulk products. It curiously targeted the small traders who shop regularly with the company. Another example is Poland where the company is launching a turnaround plan to improve its presentation of fresh food and is even introducing new concepts like bistro eat in order to differentiate itself from rival (Gunn 2009, p. 139). These plans are in both(prenominal) slipway similar to the construct weaken Tesco strategy being used in the United Kingdom but are a belittled adjusted to best treat the interests of the local market.PriceTesco PLC pursues a predominantly polycentric determine attack in its international markets. The company attempts to organise its marketing activities based on the spe cialised countries of operation (Humby et al 2008, p. 198). It treats each country differently and formulates strategies that suit the specific local needs of the consumers. As such the prices of its products vary across different market segments depending on withdraw, income levels and demographics. For represent having had a difficult sequence in Ireland, the company launched determine initiatives aimed at combating discounters and counter the lower prices offered by its competitors. The company overcomed the prices in the stores particularly those close to the Irish border and has plans of extending the kindred to the rest of its stores in the country in the long run. The similar low pricing strategy was also used by the company in Malaysia in order to attract more customers. In the other markets like England and Poland the prices are a little higher because they are sustainable for those market segments. In essence, Tesco PLC tries to ensure that the products and their p rices fit into the demands of that particular market segment in question.PeopleThe way orientation of Tesco PLC has elements of both geocentric and polycentric influence. The globose expansion of the company has been accompanied by teams that snap on both worldwide and local markets. Its international expansion strategy has mainly been through joint ventures with the local partner firms in order to be sensitive to the needs of the local markets (Maynard 2013, p. 33). The company retains the employees of the partnering firms and continues with the approach of employing the local people because they are well placed to serve the needs of the local consumers. These local personnel are maintained by the company especially in the middle and low management federal agencys because they are better placed to serve the needs of the local market than the foreign expatriates.Place and ProcessThe subprogram of Tesco PLC is a mix of polycentric and geocentric. The company has adopt a plan etary approach in more or less(a) of its operations as it has designed its value chain in a manner that ensures that it minimises its operational costs. For instance when it came apparent that it was critical to scale down the prices of products in its stores in Ireland, Tesco PLC patch upd to drop its suppliers in the country in preference for well-off ones elsewhere. The management of the company has accomplished its dissemination channels to facilitate the movement of its products across the different regional and national markets (Zentes et al 2011, p.173). The process of the company also has some elements of polycentric approach because it uses some strategies based on particular countries. For instance in Asia it treats all the countries differently based their product demands are different reservation it impossible for the company to use the geocentric approach.As such it acquires the products from the local suppliers and uses local marketing channels for overhaul th e needs of that particular market segment. The polycentric approach has helped the company penetrate into difficult markets like Malaysia, China and South Korea as these countries have significant political, economic and cultural differences with the United Kingdom (Zentes et al 2011, p. 45). The products of the company are sold in its stores which it rents in the major malls and shopping centres whenever it call ups space or builds its own stores in cases where that is the best alternative for the market segment. The place can be say to be polycentric because the products are mostly in the big cities where there are many a(prenominal) consumers with the ability to buy its products. The polycentric approach enables the company to strategicalally position itself in the markets in order to reach as many customers as possible.Proactive trade ResearchThe uses a polycentric approach in research and new product development because the needs of its customers in the different market segments are very diverse. In addition to this, some market segments like the American market have big industrial players like Wal-Mart who have a large base of loyal customers making it difficult to venture into such markets with an ethnocentric approach.Proliferation of the chumpThe products of the company are standardised around the world to ensure that they are transparent and meet the required company standards.TOWS depth psychology of Tesco PlcThe TOWS analysis will be used to analyse both the internal and external factors in order to provide a holistic view of the position and fashion of the company. The figure below shows a conclave of the TOWS analysis that combines the DEEPLETERS analysis with the matched advantages and EPRG model.\r\n \r\n \r\n ingrained STRENGTHS\r\nO Strong spheric post and high brand exposure\r\nO Strong core UK market\r\nO Strong and stable reaping in Asia\r\nO Financially sound\r\nO Variety of products to appeal to different consumersINTER NAL WEAKNESES\r\nOEthnocentric credence on the UK market\r\nOStagnant or prejudicious sales in some developed countries\r\nOHigh price e oddmenticity due to face-off and low costs of customers switching to other brands and loyalty\r\nOResistance to large firms in some countries\r\n outdoor(a) OPPORTUNITIES\r\n SO\r\nOContinue entering appropriate markets across the globe\r\nOContinue building on cost efficient pricing to attract more customers\r\nOGo into new markets and buy local retailers to gain market circumstancesWO\r\nOExplore ways of diminution their operational costs in order to reduce prices for the consumers\r\nOIncrease the efficiency of its business process and supply chain\r\nOCapitalise on the opportunities present in the developing world by opening more stores there \r\nEXTERNAL THREATS\r\n \r\nOIncreased ambition from other well established brands\r\nOPolitical and licit opposition against expansion in some economies\r\nOContracting consumer expenditures i n Europe that reduce the demand for the non-basic goods\r\nOEconomic reforms may threaten multinationals like the finances and operations of Tesco Plc\r\n \r\n \r\n ST\r\n \r\n \r\nORemain ahead of its competitors in terms of research and innovation in order to give the customers what they want\r\nOContribute to the society in which it operates to limit the political and juristic barriers that inhibit its cropWT\r\n \r\n \r\nOIncrease the awareness of the brand through advertisement\r\nOWithdraw from the markets that are not acting well and use the funds to accommodate other operations of the company\r\n \r\nThe above analysis reveals that the company is on the powerful path as it has enacted mechanisms that will help it capitalise on its strengths and address its weaknesses. For instance the company has shut some of its international businesses that are not performing well like in the United States to reduce on loses. The company has also increased its operations in China and is think in strengthening its presence in the emergent economies in Asia. Additionally, it is employing more local people and complying with the local regulations to reduce opposition against its operations in some economies.Opportunity IdentificationAnalysis of opportunity identification will be do using the BCG hyaloplasm. The Boston Consulting Group Matrix (BCG) is fundamental in analysing how companies allocate resources (Maynard 2013, p.81). The matrix splits the products of the company into four categories that determine how much money the company should invest in them. The categories are as follows:\r\nCash cattle should be used by the company for profits as much as possible Stars should receive investments so that they blend in the side by side(p) cash cows Dogs have low share of market growth and should be sold as they unhorse the performance of the company Question label have low share of high growth market and have the potency difference of becoming wizardr ys or dogs.\r\nThe high road shops of the company are the cash cows. Tesco Plc has nearly 30% of market share in this division although the growth of the division has been very slow. The online operations of the company are the stars. The company is the largest online grocer in the United Kingdom. Tesco Plc should make more investments in this orbit to improve its online whirl because e-commerce is growing rapidly. The question marks of the company include video on demand service and blinkbox which face high competition from the big industrial players. The company should decide on the appropriate level of investments requisite for turning this division into star. The Fresh and favorable operation in the United States was a dog and that is why the company resolved to pull out of the country.Positioning/ targetingThe targeting strategy of Tesco Plc includes people of all ages and it offers a wide range of products to meet the demands of the customers. The company focuses on the specifications of products that are close to those of the rival companies in order to try and win customers from such companies. For instance it offers fresh and unreserved goods because people take place more money buying fresh products. In addition to product specifications, the company also prices its products fairly to attract more customers because households are very sensitive to price.\r\n expiry\r\nThe findings of this study reveal that the strategies being pursued by Tesco Plc in its international expansion are in line with strategic models. The company identifies the opportunities present in the business environment and then devises the strategies for exploiting them. It has also adopted entry strategies like joint ventures and acquisitions for combusting into the international market. Such approach has helped the company expand its distribution network and win over the local markets by giving the customers a local approach. The company has also closed down the internat ional businesses that are not doing well in the United States and Japan to reduce on loses and help it focus on other profitable markets. The company must continue to exploit the potential appear markets and also looks for mechanisms of outdoing its major competitors.\r\nReferences\r\nApplegate, E., & Johnsen, A. (2007). Cases in advertising and marketing management: true(a) situations for tomorrow’s managers. Lanham: Rowman & Littlefield\r\nBaines, P., Fill, C., & Page, K. (2013). Essentials of marketing. Oxford: Oxford University Press.\r\nBradley, F. (2005). external marketing strategy. New York: FT/Prentice Hall.\r\nCunningham, J., & Harney, B. (2012). dodging & strategists. Oxford: Oxford University Press.\r\nGlowik, M., & Smyczek, S. (2011). International marketing management: Strategies, concepts and cases in Europe. Mu?nchen: Oldenbourg.\r\nGunn, M. (2009). Trading regime analysis: The fortune of volatility. Chichester, England: Wiley .\r\nHumby, C., Hunt, T., & Phillips, T. (2008). Scoring Points: How Tesco Continues to Win Customer Loyalty. capital of the United Kingdom: Kogan Page.\r\nMaynard, J. (2013). Financial accounting, reporting, and analysis. Oxford: Oxford university press\r\nMcLoughlin, D., & Aaker, D. A. (2010). strategic market management: Global perspectives. Hoboken, N.J: Wiley.\r\nPradhan, S. (2009). Retailing management: Text and cases. New Delhi, India: Tata Mcgraw-Hill Education Pvt. Ltd.\r\nRichter, T. (2012). International marketing mix management: abstractive framework, contingency factors and empirical findings from world-markets. Berlin: Logos.\r\nThoenig, J.-C., & Waldman, C. (2007). The marking initiative: Business success and societal embedding. Basingstoke [England: Palgrave Macmillan.\r\nZentes, J., Morschett, D., & Schramm-Klein, H. (2011). Strategic retail management: Text and international cases. Wiesbaden: Gabler. \r\nAppendix Ethnocentric Polycentric Regio centric Geocentric EthnocentricProliferation of the Brand\r\n Promotionproduct Polycentric Price / place/ Proactive Market Research\r\n Regiocentric Geocentric People / process\r\nGlobal Marketing\r\nFairmont Hotels and Resorts (Fairmont) is operating and competing in the hospitality industry, which has been affected vastly by the impact of global financial crisis, terrorist attacks, globalisation of the hospitality and touristry industry, the uncertainty touch the sovereign dept of some countries in EU, development of emergent markets, the rapid dissemination of global lifestyles and other economic and political uncertainties in the past few classs.Fairmont is also affected by technical innovation as well as other handsome macro environmental trends. This essay will examine the most new trends of global macro environmental factors that are in all likelihood to have the most significant impact on the hospitality industry and more precisely on Fairmont Hotels and Resorts. Fir st a brief overview of the Fairmont and its position in a current international hospitality market will be given. After this the disposition and impact of global macro environmental variables will be explored.\r\nCompany tarradiddle Fairmont Hotels and Resorts (Fairmont) is the largest of the brands in the Fairmont Raffles Hotels International sort and by combing three clean-cut brands: the Raffles, Swissotel and Fairmont portfolios and has become a truly global hotel company with 91 hotels worldwide. More than 65 hotels of Fairmont in Canada, United States, Europe, Asia, shopping mall easterly and Africa, and Mexio, Carribean and Bermuda, sit between the upper home plate and luxury travel market.\r\nThey also have one of the largest collections of storied properties in the world with well known addresses in the portfolio including The savoy cabbage in London, the Fairmont Banff Springs, and New York’s The Plaza. The bonnie age of the guest is 47, down about 8 social classs in the brook decade. Fairmont hotels target diverse market segments, for example Fairmont’s clientele has been split around evenly between group (above 45%) and transient business (around 55%), and approximately evenly between leisure and usiness travellers.\r\nHowever, their core customer is the luxury mid-aged traveller. Fairmont hotels are one-of-a-kind properties where advanced(a) travellers can discover culturally blue experiences that are authentic to the destination. Situated in some of the most exclusive and old areas in the world, Fairmont is committed to responsible tourism and is an industry leader in sustainable hotel management with its award-winning Green partnership program. What are global macro environmental variables?\r\nAs Doole and Lowe (2008) state: â€Å"The environments in which international companies must operate is typically characte purloind by uncertainty and change †factors which, interpreted together, increase the element of risk for international marketing managers”. As many authors argue the global macro environmental factors are something beyond the companies influence, and must be treated as non-controllable variables.\r\nThe five major global macro environmental factors, as denoted by Lancaster et al. (2002), Kotler et al. 2005) and Reid and Bojanic (2010) among the other authors, marketing managers often examine and which affect all organisation are: demographic, economic, political/legal, socio-cultural and technological factors. However, Lancaster et al. (2002) suggest if businesses are able to identify and react to these factors quickly abundant they would be able to be part of changes occurring and take market leading position instead of being forced into market followers position or chastise case being unable to prosper and survive as an international business in the global competition.\r\nYet the macro environmental variables as suggested by mainstream theorists (Lancaster et al. 20 02, Kotler et al. 2005, Doole and Lowe 2008, Kotabe and Helsen 2008, Palmer 2008, Reid and Bojanic 2010) needs to be managed through marketing supply process; threats must be minimised and opportunities maximised. For Fairmont, as an international hotel the issue to keep in mind is that hospitality industry is in a â€Å"fast moving environment” as well as their product they sell is perishable when considering changes in marketing strategy or tactics.\r\nThus they face more complex and changing environments where they operate and compete than other industries. In order to survive and prosper, the essential is to take account of, and adapt to, fast changing environmental conditions. To see and take advantage of marketing opportunities while at the same time anticipating any threats to their business. By indentifying environmental trends shortly enough, management should be able, at least in part, to anticipate where such trends are leading and what future conditions are app arent to depart from such changes. (Lancaster et al. 2002, Palmer 2008).\r\nExplain how changes in the socio-cultural environment affect marketing decisions The UK population will rebalance by 2015 †families will be the most prevalent group, and the retired will have increased in number hot. single households are set to increase fastest into 2015, following the trend witnessed into 2010. Emerging markets where social exposure and status are important along with the rising income and congenatorly pie-eyed middle class. Mainly affect new(a) people who have an above second-rate need for social acceptance, and international travellers, who are exposed to multicultural values.\r\nFairmont target market age group younger than used to be …. Embracing social media is a key way to reach customers. â€Å"We could never have predicted the explosion of social media,” Laboy said. And yes, â€Å"you can have meaningful customer particular date via Twitter. ” Hotel iers need to consider mobile tagging as a way to offer promotions to customers, he said. •Ethical challenges and the Green movement On one hand provides opportunities to connect to customers and employees. On the other hand Western consumers choosing brands look for reassurance that the product has been produced in what they see as a socially responsible manner.\r\nOn the basis of ensuring products and ingredients came from authentic source of supply which did not leave to the destruction of the environment and that they are free from child slaveholding and that the people that make them are able to earn a proper subsisting wage. Consumers globally are becoming better informed through better pedagogy and faster and more effective communication. instanter firms are increasingly expected to ensure that their behavior is ethical and in the interests of the global community which makes up their market.\r\nHowever, international marketing executives operating across cultures wil l find themselves facing moral and ethical dilemmas on a daily basis on a wide range of issues. about of those currently receiving particular attention are bribery and corruption, counterfeiting and piracy. Explain how changes in the economic environments affect marketing decisions The international hotel industry has shown signs of recovery in the offset printing half of 2010 harmonize to the bi-annual hotel eyeshot conducted by grunter Robinson Group (HRG).\r\nHRG’s interim discern is based on a gang of industry intelligence, actual style nights book and rates paid by its UK clients during January to June 2010 compared to the same period in 2009. Globally, the hotel industry has shown signs of recovery in the first half of 2010 when compared to the same period in 2009. Although the survey reveals a fragmented global picture, the hotel market in Europe and the US appears to be stabilising, as rates are either humdrum or only marginally down. The emerging market eco nomies of India and China have shown strong upturns in growth over the last six months.\r\nYear-on-year economic growth in Q2 2010 was 7. 9% and 10. 3% in India and China respectively and the resurgence in economic activity has helped to prop up room rates. Growth in both economies will arrive to ease over the next year as central banks begin to raise interest rates to address inflationary pressures. In contrast though, the nub east region recorded the highest rate decrease, with two-bagger digit falls in the UAE, Bahrain, Qatar and Oman. Many western economies are coming to terms with the cipher cuts necessary to reduce sovereign debt levels which will inevitably reveal room rate growth.\r\nDynamic emerging economies have less need to take fiscal austerity measures in the current climate and we expect growth to be higher as a result. However, the survey shows that emerging economies have not, as of yet, to the full recovered from the effects of the global economic downturn. I n the UK, growth prospects are buoyed by a weak sterling which continues to aid tourism and leisure travel. In addition, the ongoing recovery of the banking and finance sector will contribute to corporate demand for rooms.\r\n in that location are, however, significant downside risks to growth in the market emerging from future cuts in public spending Belfast and Beijing both suffer from an oversupply of hotels, the latter having see massive investment in recent years from major players keen to build a presence in this emerging market. Bangalore, a city reliant on business travel associated with the IT industry and call centres, is a classic example of a market ‘popping’ as it has seen rates fall as a result of a drop in demand due to the global recession coupled with significant new hotel openings which have led to a current oversupply of rooms.\r\n operate apartments have grown in popularity and some of the IT industry has relocated to other areas in India. The 5 st ar market achieved a marginal increase of 1%. Whilst there has undoubtedly been a trend for corporates to turn to the 4 and even 3 star sectors in the current climate, hoteliers in this sector have held out for rates at the expense of lower occupancy levels, informed that any significant rate reduction has an adverse effect on service levels as costs are brought in line, resulting in damage to a hotel’s reputation for quality and standards.\r\nReflecting the need for cost reduction, clients are downgrading between the star ratings as well as continually reviewing their programmes and renegotiating rates where possible. In the 3 and 4 star markets average rates have decreased as suppliers strive to maintain their share of the corporate market. We continue to believe that budget options are not always the cheapest option when the add-on costs are taken into account. Mintel The UK officially exited recession in the fourth part quarter of 2009. GDP rose 0. 4%, subsequently inc reasing 0. % in the first quarter of 2010 then 1. 1% in the second quarter. While fears of a ‘double engross’ recession have eased somewhat, consumer confidence has remained weak as Britain has entered an ‘age of austerity’.\r\nEconomic growth in Europe remains weak relative to other regions; Euro zone GDP grew year/on/year by 0. 6% in Q1 2010, compared to growth on 1. 2% in Japan and 2. 7% in the US over the same period (Hogg Robinson Group 2010). Global hotel sales are expected to increase 30-40% in 2011, according to hotel investment services company Jones Lang LaSalle Hotels. 009 was characterised by frozen liquidity, stalled transactions and drops in hotel performance and values globally, this year signalled a striking improvement, with more opportunities for buyers. The number of hotel sales is signal to continue to rise substantially in 2011, reaching a value of $28 billion (? 18 billion) to $30 billion (? 19. 3 billion). ASPAC has seen strong gro wth this year. However, overbuilding in Abu Dhabi and Dubai are dragging down levels in the Middle East and Africa. Every region except ASPAC saw a rise in September, but a dip in October. ASPAC remained strong in October.\r\nASPAC is one of White’s bright spots. She sees that market growing by 10-12% in 2011. another(prenominal) areas showing strong growth this year are Sao Paulo, Mexico City and Rio de Janeiro. She sees occupancy will increase by 3-5 %, ADR by 4-5% and overall RevPAR by 6-9%. Looking at specific RevPARs, ASPAC will increase 10-14%; Europe, 7-9%; the Americas, 6-9%; and the Middle East and Asia, 3-6%. VAT Emerging markets Fairmont regional growth is driven by Middle East markets such as the UAE, Egypt and increasingly Saudi-Arabian Arabia, as well as growing numbers of Gulf travelers that stay at its properties in the United States, Europe and Asia.\r\nThe Middle East, despite being impacted by the global downturn, still shows resilience over the past year with revenue dropping less than other regions, industry figures showed. Saudi Arabia has a large critical mass, huge influx of travelers, the built in demand drivers, and it helps us support our partnerships with our shareholders. It is the world’s top oil exporter, is developing its tourism sector to lower dependence on oil and hosts an estimated 10 million Islamic pilgrims every year. The 14 planned hotels will be all under the Fairmont brand.\r\nFairmont is possible to also add hotels in Qatar, the world’s top exporter of liquefied immanent gas, whose economy is booming and hosting World shape in 12 years time…(Walid 2010) Explain how changes in the political/legal environments affect marketing decisions Identify the major trends in the firm’s technological environments Broadband penetration continues to increase, even amongst the groups already most likely to have access. 200 mph train from London to capital of Kentucky arriving in 2013 + opening new markets carry closer international trade… In a world moving more and more towards globalization, hotel organizations ill need to go by more quickly, operate more productively, offer their employees greater opportunity and deliver their customers intensify benefits.\r\nThose companies that address these issues today will be better prepared for the global securities industry of tomorrow. Conclusion Fairmont competes in the strongly competitive hotel and lodging industry, focusing on the first class and luxury segments of the markets. Fairmont is impacted by change in the overall travel, tourism and hospitality industries as well as broader macro-environmental trends.Bibliography\r\nhttp://www.amadeus.com/amadeus/goldrush2020.html\r\nhttp://www.arabianbusiness.com/ fairmont-sees-14-more-hotels-in-mideast-by-2014-184514.html\r\n'