3 The Global Hotel Group (GHG) operates hotels in most of the developed countrie

3 The Global Hotel Group (GHG) operates hotels in most of the developed countries throughout the world. The directors

of GHG are committed to a policy of achieving ‘growth’ in terms of geographical coverage and are now considering

building and operating another hotel in Tomorrowland. Tomorrowland is a developing country which is situated 3,000

kilometres from the country in which GHG’s nearest hotel is located.

The managing director of GHG recently attended a seminar on ‘the use of strategic and economic information in

planning organisational performance’.

He has called a board meeting to discuss the strategic and economic factors which should be considered before a

decision is made to build the hotel in Tomorrowland.

Required:

(a) Discuss the strategic and economic factors which should be considered before a decision is made to build

the hotel. (14 marks)

(a) Of vital importance is the need for reliable information on which to base the decision regarding the potential investment withinTomorrowland, since the lack of such information will only serve to increase the risk profile of GHG.The strategic factors