Using environmental scanning for business expansion into China and Eastern Europe: the case of transnational hotel companies

Abstract

This paper reports on a study designed to explore the relationship between environmental scanning and business expansion strategies in the international hotel sector. Unit level perspectives on environmental scanning and business expansion strategies of trans‐national hotel companies (TNHCs) operating in China and Eastern Europe are presented and analysed. (For the purpose of this study transnational hotel companies are defined as those companies operating hotel units in more than two countries.) The research, based on a survey of 50 general managers, concludes that, due to the complexity and the increasing uncertainty of the international hotel sector, TNHCs and their managers at unit level need to be more conscious of the significance of trends in the business environment when deciding on their business expansion strategies.