International strategic marketing

This document provides a critical analysis of the marketing practices of Four Seasons Hotels Limited as they enter the French hospitality service sector. It discusses the challenges and opportunities they face in terms of cultural, administrative, geographic, and economic distance, as well as the implications of Hofstede's Cultural Dimensions model. The document also offers marketing advice for a New Zealand based luxury lodge looking to expand into Asiatic countries.

International strategic marketing

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Contents
Introduction................................................................................................................................2
Case Overview...........................................................................................................................3
Information Management...........................................................................................................3
Culture Distance.....................................................................................................................4
Administrative Distance.........................................................................................................5
Geographic Distance..............................................................................................................5
Economic Distance................................................................................................................5
Culture........................................................................................................................................7
The implication of Hofstede's Cultural Dimensions model...................................................7
A brief comparison between the approach of Disney and Four Seasons...............................8
Marketing advice to newly opened New Zealand based luxury lodge..................................9
Marketing Strategy...................................................................................................................10
Interpretation on whether Four Seasons is a global marketer or a multi-domestic marketer
..............................................................................................................................................11
Conclusion...............................................................................................................................13
References................................................................................................................................14
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Introduction
Four Seasons Hotels Limited is renowned for its exceptional luxurious hospitality services
across more than 24 countries and around 54 properties. The company has been holding the
legacy of over 50 years in the hospitality service sector. This private hospitality company
operates more than hundreds of hotels and resorts. The non-ownership business model is the
speciality of the Four Seasons company (Hunter, 2008). On behalf of the developers, owners
and real estate dealers, the company maintains and operate those places. Several substantial
royal palaces, historical sites and hotels have been taken over by the company. As mentioned
in the case study, the organisation has proposed to enter into the French hospitality service
sector. Critical analysis of proper and effective marketing practices is mentioned while
referring to Hofstede's Cultural Dimension model so that the probable business opportunities
and risks can be critically interpreted (Emerson, 2005).
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Case Overview
After analysing the mentioned case study, it can be understood that business organisations
have to face several difficulties while venturing into new countries in terms of market
capitalisation, customers' trust issues, and competition with the small and mid-level business
enterprises. Four Seasons Hotels Limited have segregated their branches in around 24
countries. In the early 2000s, Four Seasons Hotels Limited wanted to start another luxurious
hotel in a European capital, namely Paris. As stated in the case study Four Seasons Hotels
Limited opened Four Seasons Hotel George V Paris, which was named after Parisian king,
F.S. George V. The speciality of Four Seasons is that the management maintains and operate
those places on behalf of the developers, owners and real estate dealers and collects some
amount as part of their maintenance charge. Such that the organisation wanted to earn a
monetary profit while maintaining the Parisian landmark. Understanding of socio-cultural
factors would enable the company to modify their business strategies and marketing practice
as per the national citizens. To perform the job, information management and cultural
variants are critically assessed in the organisational context of Four Seasons.
Information Management
Four Seasons had to offer more convenient and standardised services to customers to enter a
new market while considering the existing customer base. Four Seasons mentioned their
belief and principles to its customer base as whom they do, what they believe, how they
behave, and how they are planning to get succeed. Walters & Carr (2017) stated that
understanding and appreciation of the open-ended market are essential for the customer-
centric to opt for sustainable market expansion. This case study over Four Seasons has helped
acquire a brief understanding and appreciation of the market they were entering.
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While operating inside the French workforce, the organisation accomplished several
advantages in case of interpreting and understanding their market. To interpret the primary
determinants of different dimensions of distance, the CAGE framework would a useful tool.
Culture Distance
The official head cum CEO of Four Seasons had mentioned that they were ready to do thrive
into any new place irrespective of venue, time, city, village etc. Such that the official
mentioned that international travel experience is essential for the consumers to opt for foreign
trips. If the organisation kept its business framework unchanged yet modified, the
organisation would be able to avoid cultural gaffe. It has been mentioned is the case study
that Euro-Disney was facing such issues at the inception was because of a lack of
understanding over business socio-cultural communication among other entities.
Sophisticated yet culturally diversified food menu, cleanliness, and warning behaviour of the
employees towards the customers of Four Seasons would attract the number of customers.
Among such strategic policies, the business officials of organisation implicated 'the Golden
Rule' based on the stipulation method. They knew the French people are much delegated
toward cleanliness and normative business approach. Such that the employees were shown
great respect in terms of humanitarian brand image, public policy.
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Administrative Distance
The administrative business framework of a multi-national organisation is essential for
looking into admin related issues. Work-based appraisal systems are available for the
employees so that the newly joined get motivated and successful. Regarding these critical
Seasons, several restaurants can segregate their various appearance mediums as well. The
French people are known for their monochromic business strategies.
Geographic Distance
The organisation wants to serve the customers of Four Seasons majorly by offering strategic
business policies and attain organisational objectives under mentioned time. Interpretation of
demographical situations aid hospitality service sector companies to survive in the
competitive business market. The business organisation has been already serving the purpose
of hospitality service industry but the choice of foods, language barrier etc. have been
critically influencing the accommodation choice, food choices of Four Seasons.
Economic Distance
Four Seasons implemented around 35-hour workweek for the employees at the Paris hotels
and resorts. The Four Seasons resorts and hotels are segregated into several countries that
offer hospitality services across the globe. Interpretation and implication of six dimensions of
Hofstede’s Cultural Dimensions model would support the organisation to get adapted with
nation wise socio-cultural environment (Tu, Neuhofer & Viglia, 2018). Such that The Four
Seasons resorts would be able to define their service policies and get acceptance among
overseas countries (Chan, Ye & Xu, 2016). Among every other distance dimensions of
CAGE framework, economic factors are the most important determinant. These factors are
dependent upon the inflation rate, GDP, currency gap, population ratio etc.
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If a New Zealand based luxury lodge wants to open other luxury lodges in Asiatic countries,
it is advised that the business head pursue meticulous market research over the lifestyle of the
residents. The New Zealand based firm must consider the CAGE framework to interpret the
possible factors like opportunities and challenges inside the workplace environment.
Moreover, consideration of cultural, administrative, geopolitical and economic factors would
be helpful for the new firm to measure its market potential in the foreign market.
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Culture
The reporting structure of the Four Seasons hotels and resorts was planned tactfully for
resolving customer concerns in faster ways than any other equivalent service providing
competitive hospitality service proving companies. The management of the Four Seasons
hotels used to employ experienced business professionals Regional Vice President to increase
the operational effectiveness in terms of strategic policy implementation, guidance, and
public relations management. Such that better understanding of the cultural dimensions of
Hofstede's model would aid the policy and strategic decision-maker to consider cultural
diversity more seriously.
The implication of Hofstede's Cultural Dimensions model
Xu, Ye & Chan, (2018) stated that Hofstede’s Cultural Dimensions model is a useful
framework for interpreting the healthy lifestyle, tradition and culture around the various
countries. The six dimensions in Hofstede’s Cultural Dimensions model are essential for
understanding the business potential in any country. Such aspects are mentioned below.
1. Masculinity versus femininity- This factor is essential for explaining the relationship and
gap between men's and women's values across the nations. To cope up with the
hierarchical and patriarchal society of France, the officials at Four Seasons implemented
long-hours culture and are precisely motivated by the targets.
2. Short-term versus extended- term orientation- The United States of America can be
considered as a short-term oriented nation, and the residents of the USA can be referred to
as a monochromatic nation. As the people behave of such country behave in a normative
manner. The USA is more convinced with quick feedbacks and short-term gains, while
French people can be seen behaving in a logical manner (Lee & Jang, 2017). French
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people are more committed towards human relationships and much more concerned with
collective goals. Such that French people can be defined as polychromic people.
3. Restraint versus indulgence- According to the model, majorly the countries from the
Eastern European region shows a more restricted and controlled cultural framework. This
factors aids in understanding the gratification of individuals. The customer-centric
business organisations consider this for validating the social conduct and behaviour
among the citizens.
4. Power distance index (high versus low) - High PDI index means authoritarian
management with centralised communication while low PDI index indicates a
participative business framework.
5. Individualism versus collectivism- This index is useful for interpreting the inter-personal
communication with others. French people are quickly impacted by the human
relationship and are more concerned with closely or distantly related individuals. Whereas
individuals that belong to the USA are more concerned with themselves and privacy is
mainly prioritised by the habitats of the USA. This shows the contrast between
individualism and collectivism. Countries with high IDV index indicate that they value
privacy and enjoy risk-prone tasks while the countries with low IDV index majorly focus
group efforts.
6. Uncertainty avoidance index (high versus low) - Nations with high UAI scale are prone to
follow flexible and conservative work culture whereas low UAI scale indicates an
openness to change and risks (Grünig & Morschett, 2017).
A brief comparison between the approach of Disney and Four Seasons
The cultural gaffe created such an inconvenient business scenario while Disney wanted to
open its Euro-Disney in Paris (Pal & Mishra, 2017). Lack of market research generated
several issues regarding accommodation, menu, provision over drinks and alcohol, and
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allocation of staffs in weekdays. By comparing the approach of Disney when launching Euro-
Disney in Paris, it can be understood that lack of knowledge of culture, lifestyle, traditional
heritage and belief system can even lead the successful business towards failure (Melissen,
van Ginneken & Wood, 2016).
Marketing advice to newly opened New Zealand based luxury lodge
It can be understood that cultural, social, political, legal and economic factors play an
essential role behind the culturally dependent business environment. Moreover, multi-
national business organisations have to implicate standardised and adaptable socio-cultural
policies in their workplace so that business organisations can attain sustainable brand image
in front of the society (Richard, 2017). After studying such policies and business practices, it
can be interpreted from the case that business organisations have to understand the significant
elements of the business environment (Mutabazi & Brooklyn, 2016).
If a New Zealand based luxury lodge wants to open other luxury lodges in Asiatic countries,
it is advised that the business head pursue meticulous market research over the lifestyle, food
habits, belief system of the habitats. Additionally, the sales professional can opt for
standardised marketing promotions of the services and goods that the company is
manufacturing. Standardised business policies would enable the luxury lodge that is
headquartered at Queenstown to adapt to the varied socio-economic culture. New Zealand
based luxury lodge need to understand the demands and preferences of the Asian people to
sell their services and goods to other luxury lodges in Asiatic regions. As stated by the
researcher Schuckert, Liu & Law, (2015), the management can implicate marketing mix so
that they can get a clear idea about their marketing potential.
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Marketing Strategy
If the hospitality organisation, Four Seasons Hotels Limited wants to expand their business
into the global level, they need to identify the suitable mode of entry options in the open-
ended luxury hotel chain.
Supervision over operational activities
As mentioned in the case study, while opening the Four Seasons Hôtel George V in Paris,
they attracted customers of Paris with their quality level service standards and other
marketing strategies. The executive vice president of the organisation, John Young, referred
that the organisation had seen enormous growth while they spent time supervising their daily
wise operational activities.
Language issue
The top-level management interpreted that language barrier cannot lower the international
growth of the organisation. To become global, they instigated over usage of the local
language.
Profound importance over workload and capability level
Without motivation, job satisfaction is incomplete. Such that the managers at the Four
Seasons defined those diligent, detail-oriented, passionate but non-pretentious professionals
are an essential part of a customer-centric service organisation.
Other than these policies, the Four Seasons suggested seven' service culture standards' like a
smile, eye, recognition, voice, informed, clean, and everyone. These standards ensure that the
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employees of the Four Seasons work in a professional while maintaining humanitarian
courtesy with the customers (Lee, 2015).
The executive business heads of the organisation implemented such policies at each stage of
the operational services. It started with the reservations, next comes hotel arrival, paging and
messages, and lastly guest room evening service (Ryu et al. 2019). The Four Seasons hotels
and resorts started to provide individual merchandising facilities with newspapers, phone
services, guest clothing facilities, toiletries etc. (Harkison, 2018).
The organisation hired French people to put an overall impact on the economic health of
Paris and communicate with local customers by local marketing staffs.
Interpretation on whether Four Seasons is a global marketer or a multi-domestic
marketer
In general, multi-domestic and global companies are quite similar from some points while
there are also differences like multi-domestic companies change their business aspects nation
wise, but global companies maintain the same approach in each market (Harkison,
Hemmington & Hyde, 2018).
Purpose of multi-domestic companies
Multi-domestic companies can adapt to the different socio-economic market scenario in
terms of different cultural values, ethical behaviour, product preference, natural resource
availability etc. such that, the Four Seasons hotels and resorts offer customised goods and
services to its customers (Su & Reynolds, 2017). Multi-domestic organisations generally
operate from the local headquarters. Allocation of local headquarters helps the organisation to
do the market research more proficiently and aid the marketing professionals to promote the
services and goods as per the choice of the habitats Ivanov, S., & Ivanova, M. (2017).
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Business practises and activities are focused on the practical value creation of the services
and products. Moreover, the management of the organisations quickly respond to the
changing needs and demands of the customers (Luo & Qu, 2016). Management of the Four
Seasons Hotels Limited had refurbished their organisational framework so that the authority
can get in touch with the customer base.
Purpose of global companies
Jamieson & Perez Ryan (2019) stated that global companies offer a combination of services
and products into the international market. Same services and products would be available to
the global customer base. Customised goods and services as per the nation are not available
by global companies (Kruesi, Kim & Hemmington, 2017). Such that Four Seasons is not a
global company as it offers personalised and culturally diverse marketing and business
framework.
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Conclusion
In conclusion, this assessment has been beneficiary for demonstrating the role of market
intelligence and strategies in the organisational context of the Four Seasons hotels and
resorts. Interpretation with the help of comparative analysis has been useful for determining
whether Four Seasons is a global marketer or a multi-domestic marketer. Critical dimensions
of global marketing companies and multi-dimensional companies are critically stated to
understand the role of socio-cultural diversity in an organisational business environment.
Additionally, different market trends are stated to interpret the way marketing practices of
national as well as international level business organisations get hampered. After analysing
the case study, it can be understood that the Four Seasons hotels and resorts are more inclined
towards multi-domestic marketing policies.
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