Three friends have followed their entrepreneurial vision to construct a five star resort in the region of Liepaja, a city by seaside in Latvia. After success in the initial few years, the hotel is struggling, due to the huge decline in the Latvian market as a result of the European Union monetary crisis and slow recovery. The hotel has declined from producing an annual profit to now making a loss or barely breaking even. On several occasions, the co-owners have considered selling up while they can nevertheless break even.
Business confidence is returning, with the European Union showing signals of recovery as well as the future is starting to look up. The co-owners must decide whether to place all their battles behind them, retain the ownership of the hotel and look forward to the potential days of gain that lie ahead. What tactical direction will generate a successful outcome? Stephen Grainger is affiliated with Edith Cowan University.
PUBLICATION DATE: January 28, 2015 PRODUCT #: W14660-PDF-ENG
This is just an excerpt. This case is about STRATEGY & EXECUTION
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