A leading tech business & drop in sales.
With an annual turnover of over 500 million euros, Amaro became a leading hotel chain in Europe which was built mostly on a system of planning and controlling and centered on resources owned. However, during the 1st and 2nd quarter of 2020, sales dropped to an all-time low from 10% in the same quarter in 2019 to 45% in 2020. To improve sales and at the same time maintain its market position, Amaro is considering introducing a motivational process that will encourage its workforce to be Entrepreneurial, Intuitive and Innovative, while reaching the organizational objectives in bringing new business to the company. The management of the company understands that there might be some challenges to their business growth, mostly since their main competitor Citizen Hotel is planning on acquiring smaller hotel businesses with the aim of capturing an additional market share.
1. For Amaro to improve its sales and at the same time to be an entrepreneurial firm, what are the key changes that they should consider implementing?
2. In 2008, Amaro went Public and listed in NYSE, however, as the sales are dropping, they are considering taking the company back to private. Analyse and discuss what the potential positive or negative side of such decision can be for the company.
3. Mention 3 factors that influence entrepreneurship orientation and advise Amaro on how they could use them for their benefit.
4. Discuss the importance of relationship marketing for Amaro if they are to apply it in their marketing strategy and approach.x
5. To further promote entrepreneurship, the management at Amaro aims to introduce into a culture of autonomy, the shareholders of Amaro disagree, as it goes against their organizational value. Analyze and advise them on the potential benefits of employee autonomy.