The general environment contains a lot of aspects and can be analyzed through PEST model which refers to the Political, Economic, Social and Technology factors. Political factor plays an important role in the foundation of the company. GrandMet was founded in 1947 in London, just after the World War II. The market was fragile and opened for all investors joined in. and the GrandMet’s founder - Max Joseph expanded his business through purchasing the hotels around the world where began in London, then in Paris, Amsterdam, Monte Carlo, and New York.
Since its foundation, GrandMet had a stable development through some decades and continued expanding its business area on over the world through purchasing trading property asset and do some major acquisitions. However, its business operations went down because of the economic down turn in the 1970s. Due to economic crisis in UK in 1973, it caused the crisis in the secondary bank and collapse in the property market. Consequently, GrandMet was in the status of large debt after attempting to acquire Watney Mann and found difficult to dispose ineffective businesses. This made GrandMet fall into the great financial pressure. To help the company overcome the recession period of the economic, the company had recruited good managers with appropriate strategies for individual brands. By cutting cost and reducing the number of employees dramatically as well as promoting the individual brands, GrandMet once more time gained the strong financial position in the economic, increased the profit and cash flow.
There were the regularly changes of board members and managers in the GrandMet. The top managers were chosen from the most of companies acquired, made the GrandMet board become more active and vigorous. The management philosophy emphasizes on the development and empowerment of managers.
The appearance and development of technology in the years from 1940s and 1990s helped GrandMet get more opportunities in implementing...
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