International Business-Argentina Suites Essay - 1619 Words

International Management Case Analysis: Argentina Suites What are some of the major problems facing Argentina Suites? Argentina Suites faced many problems from the beginning idea to convert a 75,000-square foot building into a hotel. The owner, Abraham Sinclair decided to enter the hotel business with no market research, no hospitality experience, and rough financial projections. The decision to enter a market without knowing what ones getting into, led to major problems facing Argentina Suites. Some major problems include inefficiency, lack of technology, threat of new entrants, unethical behavior and transferring of information. Max, a person very familiar with Argentina Suites took responsibility to manage the hotel and to†¦show more content†¦This means that major decisions were made only and communicated to one person rather than combining everyone’s ideas for final decisions. When Max held meetings with the department heads within the hotel, the situation became clear that information was not easily obtainable and in some cases no information was found. In a push to renovate the hotel, management estimated almost $500,000 in cost that was needed for the change. This sum had neither been tallied nor were changes prioritized. Separate projects like this can add up, and without communication throughout management to discuss a plan the hotel can become easily unorganized, which can make it real hard for the hotel to keep track of money spent. Identify cultural and social institutional factors explaining these challenges and the current business environment at Argentina Suites. Cultural and social institutional factors start off with Abraham and his belief to hire family within the company. Even before the hotel was finished Abraham had to face a challenge with his family. He hired his Nephew Marcelo as an architect to oversee construction. Abraham terminated and banished Marcelo from the hotel for accepting kickbacks and commissions. When asked, Marcelo said that this is the way work is done in Argentina. The hotel had extremely low employee turnover due to the poor job market in Buenos Aries. Buenos Aries was a relaxed working environment. ThisShow MoreRelatedQuint Winery1505 Words   |  7 Pages527 | 17,328 | 14,056 | 12,823 | Spain | 12,915 | 15,153 | 16,755 | 20,541 | 23,806 | 5,819 | 6,988 | 7,738 | 6,919 | 6,946 | U.S.A | 21,325 | 20,473 | 19,699 | 22,264 | 22,685 | 7,877 | 8,734 | 7,930 | 6,545 | 7,105 | Argentina | 12,032 | 11,652 | 12,615 | 11,541 | 10,258 | 2,191 | 2,230 | 2,495 | 2,335 | 2,292 | Germany | 5,804 | 4,289 | 4,137 | 3,472 | 3,497 | 3,491 | 2,825 | 2,600 | 1,890 | 1,771 | Other | 7,405 | 6,367 | 7,054 | 9,670 |Read MoreSap Ag Essay examples2219 Words   |  9 Pagesindustry. 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