EISP,Padua

SWOT ANALYSIS ON THE IMPERIAL CASE STUDY

STRENGTHS
He made a large a large fortune in the primary sector of British East Africa (lines 2-3).
It had a very positive corporate image (lines 6-7).
Well-deserved reputation (line 7).
High quality service (line 7).
Martin believed in empowerment and delegation (90) this means job opportunity for
employees
He was also warm, friendly and outgoing (line 92) highly motivated staff.
Networks of informal communication amongst employees enabled gossip and messages to
move quickly (99) this could also be a weakness if managers do not understand the power
of informal communication
Employees have good relations (113 as they were outraged when they knew Guthoni was
dismissed)
A sense of solidarity (line 117-118) motivation.
Taking responsibility for the operations (line 120) managers care for motivation.
WEAKNESSES
Financial problems (cash flow and liquidity management) (lines 4-5).
Competitive position had slowly deteriorated (lines 49-50).
Market share was shrinking (line 53).
Limited budget for improvement and renovation (line 54).
Seasonality of operations therefore difficult to manage working capital (lines 63-64).
Problems to follow month-by-month budget (lines 64-65).
Problems with human resources (conflict between Martin and Susan) due to leadership
styles (line 74).
Susans leadership style is too autocratic (98)
Susan needed leadership training (108)
Susan dismissed Guthoni for repeated absenteeism (111) she did not know he was
diagnosed with a terminal illness and required frequent medical treatment (112)
Upon news of Guthonis dismissal, the other employees were outraged (113)
The Imperial reached the decline phase of its product life-cycle and needed rejuvenation.
(Line 130-131)
If a strike occurred in December Imperial not able to reach annual target profits (lines
115-116).
OPPORTUNITIES
The member of tourists was increasing annually (line 56).
Hotel manager had African descent and at the same time westernized (understands both
cultures) (lines 38-39).
The Imperial could attract new types of tourists interested in Safaris or cultural tourism (line
60).
 EISP,Padua

Increasing demand for self-contained apartments with small kitchens; very few hotels in
Mombasa offer such apartments (141, 142)
THREATS
Worsening of political situation in Kenya. Customers panic. (Lines 16-17)
New luxurious hotels opening in the vicinity. Offered better facilities and more technologic
services. (Lines 50-51)
Employees decided to go on strike in December, one of the busiest months of the year.
(Line 114)
Increasing number of rooms available in Kenya means the competition in the operating
market is strengthening. (Appendix 1)

PESTLE ANALYSIS

POLITICAL
1950 turbulent time in Kenya; independence movements emerged throughout the British
Empire (line 9-10)
Political unrest in neighbouring countries (line 15)
1959-1989: political situation seemed to worsen (line 17)
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Country experienced some post-election violence in 2008, it was generally safe and stable
(44)
Kenya became independent (79)

ECONOMIC
Globalisation effects on Kenya (line 19); (GP was a symbol of globalised world)
The number of tourists travelling to Kenya was increasing annually; other hotels were
experiencing a trend of increasing occupancy rates (58)
From 2008 to 2011 the GDP has increased Source: Kenya Facts and Figures 2012)
GDP by product activity Hotels and restaurant GDP has increase (2008: 23745; 2011:
20557) Source: Kenya Facts and Figures 2012

SOCIAL
New globalised world (line 19); globalisation could help to improve social condition
(population);
The country experienced some post election violence in 2008 (line 44); however it was safe
and stable;
Employees planned a strike in December that was one of the busiest months of the year
(114) - Martin started negotiation with employee representative; the collective action was
giving the employees a sense of solidarity (line 116-117)
Everyone in Kenya should have equal rights (as stated in Appendix 2), however
discrimination still exists (Martin was considered to be too westernized (42) and Susan felt
she had been discriminated when Martin was appointed as manager (84)
The number of boys and girls that attend school has increased from 2008 to 201; increasing
rate of students attending universities and other institutions (page 20; Kenya Facts and
Figures 2012)
TECHNOLOGICAL
Fast WiFi internet access (51) new luxurious hotel
High-tech feel (52) - new luxurious hotel
(These could also be considered as social and economic factors since they improve the
general country condition)

LEGAL
Any type of discrimination is against the law (appendix 2 social factor)
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ENVIRONMENTAL
Luxurious hotels should consider the environmental impact of their business activity