To: Chief Executive Officer
From: Chief Human Capital Officer
Subject: Potential Acquisition Concerns
The purchase of the new hotel brings many opportunities as well as challenges. As the Human resources department, we have to done thorough research to find ways to accomplish all concerns presented by the executive team. We have found ways to address financial concerns, marketing, and operation concerns. We have also included concerns found by the human resources department and created was to address the concerns. Also included is our recommendation on the merger. Start-up costs and finance concerns
The Chief Finance Officer is concerned about startup costs of the acquisition to include increased labor costs, renovations, and the higher salary being paid to the current Italian workers. In the start-up phase, training will be crucial and will come with a cost. The money has to be spread out in a few areas such as management and staff training-this will cover chain of command, hotel administration, finances, customer complaints, customer service, maid service, room service, restaurant services, fitness center cleaning, pool cleaning, and daily operations of the hotel chain. Language and culture courses should be the initial training focus so as to avoid language barrier and cultural conflicts between staff and guests, as it is imperative that we all know a little about each Nation’s language and culture. Equipment training-The hotel will be modernized with computers. The system will have a website for online booking, payments, complaints, maps, local features for tourists, and any other information a guest may want or need. The system will be used within the hotel for check in and checkout, bill handling, maid servicing, laundry acquisitions, room service, dining facility, training courses in culinary arts, food handling, and restaurant management. In the training process we have to get all of the employees (both American and Italian) in synch with each other. This will help with language and cultural barriers, should those issues arise. In the matter of employment money is always the issue. In this hotel chain all staff will bpaid based on their position and duties within the hotel. All employees will be evaluated every six months to establish whether a pay raise is warranted or not. Benefits will include health insurance, dental insurance, and paid vacations. Marketing Concepts
I agree with the Chief Marketing Officer in that there will be added expense in marketing globally and in a foreign language. Our marketing strategy would have to take a different direction when promoting the hotels in Italy. Since we won’t be an “Albergo Italiano” we will still be an American hotel situated in another country. The Italian economy is dominated by small, family run hotels and organizations – 92 percent of Italian businesses are small or medium sized (("Doing Business in Italy; 2012 Country Commercial Guide for U.S. Companies", 2012). Our marketing strategy could focus on appealing to tourists who want the experience of being in Italy, but the comforts of a hotel chain that they are familiar and comfortable with. Our U.S. based company will face strong competition from local and other European based hotels, which can be achieved by maintaining our American hotel reputation and charm. Our goal is to keep the culture, quality and customer service of the hotel chain up to the same standards as in the U.S. By going global, it will give our current customers more options and opportunities to travel and still be able to stay in the comfort of a Pinnacle hotel. I don’t feel that decertifying the union at the startup is a good process. Unions are a good idea, but when you think about, having unions involved can cause things to get a bit more complicated. My advice it to try and get close to the union leaders and build a strong working relationship with them. Assuring them that the...