Reference no: EM132748833

Brunt Hotels, PLC, owns more than 60 hotels throughout the United Kingdom. They recently acquired a small hotel chain headquartered in France. Brunt's chief executive decided that the new hotels in France would be rebranded as part of the Brunt Hotels Group and opened on time. The organization will allow four weeks to rebrand the hotels. The new hotels must be ready to open after that time. The organization has to recruit a large number of staff (Host Country Nationals) for the new French hotels, because more than 70 percent of the employees from the acquired organization left.

• The organization has decided to use an ethnocentric approach and send some of their existing UK-based managers to France to lead the changeover of the new hotels and then manage them after they re-open. If this new overseas venture is successful, Brunt will acquire other small hotel groups in other European countries. Their 10-year plan is to own 300 hotels across Europe. Good thing is that majority of existing managers are excited about the opportunity of working abroad with few of them actually able to understand some basic French. Given United Kingdom's close proximity to France almost all the managers have visited France many times and think settlement is not going to be problematic.

• Since the organization has never hired managers to work outside the UK before, they do not know how to start determining the compensation for PCN managers. Moreover, as the long term strategy involves opening up chain of hotels across Europe, the organization ideally wants to design a consistent compensation package for expatriate managers serving all across the Europe.

Additional Information:

1. None of their existing managers speak French fluently.
2. Existing salary for managers is £30,000 (45,000 Euros) plus bonuses.
3. Surveys show that the average salary for hotel managers in France is 60,000 Euros with no opportunity to earn bonuses.

Problem 1: Brunt Hotels Plc has hired a group of HR consultants (you) to advise/comment on whether their expansion plan for France and their long term investment strategy is realistic or not?

Problem 2: Surveys show that the average salary for hotel managers in France is 60,000 Euros with no opportunity to earn bonuses.