Are there problems in the recruitment process? Why? What are your recommendations?

Club
Med, by understanding the case, is considered an high potentially turnover company, since it’s
natural characteristics on type of business, and also, type of framework, mainly focused on person
specifications, extremely dated on time. Having considered these aspects, it seems obvious to
the reader that Club Med is wrongly approaching the recruitment process, as a whole,
consequentially affecting the company’s business on GO’s work condition.
In order to clearly structure the recruitment problem, we’ve decided to split the global problem in
several urgent issues to solve, being them, the selecting process, the explaining work conditions
process, non-existence of training module, the overlapping of GO’s recruits, and the specific
framework used on recruiting. Selecting Process As understood, Jacky, in Club Med is receiving
around 10. 000 CV’s or resumes in response to the ads posted.

Very briefly, we have to consider that, due to some conflicts, represented by the quitters
or fired GO’s comments, Med Club isn’t always, recruiting the best oriented to that type
of work-style people. They advertise it as being an adventure, and not only a work.
Indeed, as we will understand by the following aspects, the selection problem is directly
related with the approach of the market, and by having the wrong type of exigency when
choosing the right GO’s. Explaining Work Conditions It is not a work, it is an adventure”.
This is the main idea passed to the global interested people in GO’s position at Club Med.
In fact, considering some of the comments made by chiefs and quitting GO’s, we can
assume that something is wrong explained, because many GO’s aren’t perceiving their
work, properly as an adventure, but more as a really tough work, which compensations,
for instance, the usage of sports equipment on free time, don’t help at all, since GO’s
consider their work as “work-sleep-work-sleep”.

Once again, this topic will be related with the framework topic, because what is missing
is a detailed explanation about how the work really is, allowing recruits to expect the 100%
idea of work, making them ready to the work circumstances. By recruiting with a defined
talent, we will be approach the competency framework model. Training Module The
training Module is clearly a main issue, and by recruiting GO’s without any previous
training, many conflicts during the work suddenly happen because GO’s have no idea at
all of their limitations, attitudes needed, work routines, in resume, information.

Information and training are crucial to keep GO’s aware of what’s asked from them, and
also to have more productivity on GO’s recruited, because obviously a training module
will incurre in some additional costs, however, overlapped costs by saving time, irritation
and capital, on avoiding recruiting more and more GO’s. Also, due to the lack of training,
chiefs usually fire GO’s immediately when they see some unusual behaviour, and the
main problem driving those fires is the lack of training.

Overlapping of Recruits. Recruiting 450 to 500 GO’s to cover 300 available spots is a
risky situation, anyhow, without major concerns to company. However, by reducing this
number a little bit near 300, would allow company to keep up a safety measure, but
reducing the waste, on time and on GO’s potentials career, because as understood by
one irritated comment from a GO not allocated, after some time, the GO’s are extremely
angry and don’t want to be located anymore. Would be helpful, to reduce those concerns.
Competency Model Framework We arrive at the top problem in recruiting.
The current model used by Club Med is driven by the specific job they are looking for, or
a person specification framework. However, that type of approach is leading Club Med to
huge turnovers, once they are recruiting based on time and specifications of work.
Assuming GO’s won’t do the same type of work forever, when they change, it will be
needed an adaptation time, which will create some inefficiency. And besides, being North
American business so important to international step of Club Med, and considering the
discrimination laws on North America, a model based on competency would fit much
better the needs of Club Med.

Final Suggestions * Select and explain conditions to recruits following a competency

model framework on the recruitment process, in order to reduce unhappiness and
conflicts by recruiting the wrong candidates and providing GO’s a possible Career inside
Club Med. * Provide a Training Module after recruited, informing and training the GO’. *
Be more efficient on recruiting GO’s, reducing the waste of time and capital on “stocking”
GO’s not allocated, yet. 2) Is Go turnover really a problem at Club Med?

What are the pros and cons of high turnover? First of all, it is important to notice that Club
Med has a high turnover in the American Zone (nearly 50% of turnover rate) and a minor
rate in European Zone (25% of turnover rate). Jack Amazallag, director of Human
Resources for Club Med’s American Zone, describes the high turnover rate as a problem
that has to be straightened out immediately in order to provide a better service to the
clients and to the chiefs of the village.

The turnover occurred in four ways: 1) a GO quit before the end of the season (around
37% of the turnover cases); 2) a GO was fired before the end of the season (32% of the
turnover); 3) a GO quit at the end of the season (27% of the turnover); 4) a GO was given
a poor evaluation by the village chief and was not asked back for the next season (4% of
the turnover). Therefore, we may say that the turnover is a very serious problem on the
first two ways (which are those that have more weight too), since it is very difficult to find
good GOs during a season.

In the 3rd and in the 4th ways, the turnover is no longer such a big problem since at the
end of the season, there will be a new recruitment process, with more than 10. 000
candidates, and Club Med will already be prepared for the newcomers and for the quitters.
One of the big reasons for this high turnover rate in the American Zone is related to the
fact that the majority of the Chiefs of the Village are French / European, so they often
don’t understand how American GOs have to be managed, creating serious problems.

Additionally, these chiefs often have difficulties with the English language, and therefore,
they do not provide as much training and feedback as they should. Jack Amazallag, thinks
that if these chiefs were more involved in the recruitment process, maybe they would
understand how difficult it is to find good GOs and so they would try to make an effort to
work with the GOs instead of firing them right away (this will be referred later as a cons
of high turnover).

Most of the companies struggle to maintain low turnover of employees. Sometimes, there
are advantages associated to high turnover, depending on the industry and other factors.
To analyse this, we will now refer the pros of a high turnover. The first “pro” is the “new
blood” factor, since the new comers are looking to prove themselves and the older
employees want to show that they know best. New people can also encourage new ways
of thinking, instead of resorting to the same old strategies.

The second one, concerns to low wages (400 dollars per month by a GO in Club Med). If
the employees move quickly, the chances of staying long enough to expect an increment
in their wages will decrease. The third one is about the low employee expectations. If
there is a high turnover of employees, there will not be great expectations. This means
that employees can put the minimum amount of effort into ensuring that employees will
do a good job. The last “pro” concerns to the minimum impact of “difficult employees”.

Most companies have a few employees who are difficult to deal with for several reasons
(it can be because they are moody or they like to stir up trouble amongst other employees,
or because they are not good enough to do their job); with a high turnover, this kind of
employees are likely to move on quickly, minimizing their impact on the company.
Hereupon, we will now refer the cons of a high turnover. The first one, and probably the
most important one concerns with the high cost of training.

In order to reduce the turnover, Jack Amazallag has the idea, that in the future, will be
possible to recruit and train qualified GOs in a specialized school for a week or two, before
their first assignment, in order to reduce the turnover and solve the turnover problem.
However, if the turnover does not decrease, that will become a problem since each
replacement will need to be re-trained, and therefore, the costs of training will increase
again. The second cons, is about the “brain drain”. Following training, employees gain a
greater knowledge that they can take to another company if they leave the company who
trained them.

However, in the case of Club Med this is not a problem yet, since they don’t have already
training sessions to the GOs before their first assignment. However, if Jack’s idea of
making a training school is implemented, this will be a serious cons for a high turnover.
Other cons of a high turnover is the lack of loyalty by the employees. Just as employers
have little loyalty to their employees, like it has been seen before in the relationships
between the French/ European village chiefs and the American GOs, employees will have
little incentive to return any loyalty. The fourth cons, concerns to the low staffing levels.

If staff turnover is high, then there are bound to be times when staffing levels are low,
especially if new employees are not available to start straight away (this cons is well
demonstrated on page 8, since Debbie, the potential new replacer for tennis instructor,
want two weeks before start working in Martinique). Other cons that we can refer, is about
the poor team spirit. Most people like to know the people they work with so they can feel
very uncomfortable if those people keep changing. This, in turn, can affect the morale
and the ability of the team working together.

The sixth cons, is about the customer dissatisfaction, since employees build a relationship
with the customers. With a high turnover, customers are less likely to be loyal. However,
this is certainly the less important factor to Club Med case, since it’s almost impossible to
build a long relationship between the customer and the GOs, due to the high rotativity of
the GOs and the low probability of the customers repeating the location. Another cons,
refers to the negative message that a high turnover conveys to the public about the state
of the company.

They will wonder what is wrong with the company to cause employees to move on so
quickly. However, this is not also an important cons for Club Med, since the customers
don’t meet GOs probably more than one time, because of the factors referred previously,
in the previous cons. The last cons, but not the least, is actually one of the most important
cons for Club Med to a high turnover rate, and especially when a GO quits during a
season (which represents 37% of the turnover) or when is fired during a season (36% of
the turnover).

If one of these situations happens, it becomes very difficult to replace him and to find a
new one rapidly and with good capabilities, in order to fulfil the vacancy, like was referred
previously, in the first part of the question (this is demonstrated on page 1 of the case
study, when Jack is on the telephone very concerned with the fact of a windsurf instructor
has quitted the Club). 3) Is Go turnover really a problem at Club Med?

What are the pros and cons of high turnover? According to what is mention in the case
study, Club Med rotates all their employees every six months since that one of their
human resources policies consists in rotating all their GOs to different villages after they
complete six months working in a company’s village. Club Med assumes this policy as a
human resources strategy that has major benefits for the company but also for their
employees.

First because they assume that after six months it is time to break the routines and habits.
Second because they also assume this strategy as motivational factor for the GOs once
it will give them the possibility to travel, meet new countries, sites, cultures. Third and last
because they also assume that travelling and the acquisition of new cultures knowledge
is fundamental to GOs since it will enable them to adapt to new types of people.

Having a rotation program within the company’s policies, is in our view a positive strategy.
This program grants the company that employees are travelling and breaking routines,
acquiring cultural know-how, improving and developing new skills and gaining new and
productive experiences when moving to new villages. GOs will need to adapt themselves
to the new customs, beliefs and religions and therefore improving their own cultural
background. This program will also have another positive advantage.

While transferring GOs to new locations, the company is also ensuring that they will work
with new Village Chiefs and teams which means they will need to adapt themselves also
to new working and team methods meaning that besides the cultural improvement
rotation also guarantees the improvement of their operational skills. So and in our opinion
the policy of rotating all the employees makes sense, especially for a hotel chain that has
as core concept, the objective of offering dynamic stays, full of experiences and activities.

Henri Giscard d’Estaing, CEO and Chairman of Club Med stated the following sentence
in the company’s human resources folder in their website about the values that Club
Med’s employees must have: “Multicultural spirit, pioneer spirit, kindness, freedom and
responsibility”. This statement demonstrates the company’s spirit and aim in having
dynamic employees with multicultural backgrounds and willing to work on a company that
offers them life experiences but also serve as plea for their rotation policy.

Basically we consider that this policy aims to construct a company culture within the
employees which in our view is always beneficial for any type of company in any kind of
industry but especially for a hotel chain since that hospitality is a service done by people
for people since. This because in this kind of industries intangible aspects like the
company’s culture may not only serve as human resources motivational strategy but
mainly as a culture of success for company giving in our view assertiveness to this policy.

In what concerns our recommendations we fundamentally think that even being a good
policy there are some functional and organizational problems. In the first hand, because
Club Med was at the time too big to have a so complex and difficult to manage policy.
Second because rotation has the benefit of breaking with employees routines and making
them acquire new competences and cultural knowledge but at the same time if this
rotation is to frequently it will also destroy the organizational teams formed during the six
months in each village and even worst it will destroy all the organizational memory
constructed during that time.

Third we also think that the employees could have more power over their placement. The
recommendation that we suggest to solve the first problem mentioned is to have change
the deadlines. So instead of having a of six months rotation program to have a twelve
months rotation program in which half of the GOs in half of the villages would change at
the final of the summer and the other half in the final of the winter. This would allow the
human resources management to have more time to prepare the rotation and less logistic
work to manage every six months. The recommendation for the second problem is to start
rotating full teams.

If the team works well we think that it would be beneficial for the employees and for the
company if they continue working together. In final analysis Club Med could create a
policy in which they would start to rotate entire teams but with a maximal term of three
years in order to continue breaking with the routines. In our view this is fundamental to
guarantee that the organizational memory creating during the six months of work is not
lost. This organizational memory is in nowadays fundamental to ensure innovation that
today is also seen as core management tool.

The last recommendation aims to ensure to the employees more control in their
placement. We think that employees as human beings like to have control about their
lives and for that reason it would be good and also a motivational tool if they could have
some kind of power over their future placements. This could be implemented through
individual surveys where they would say if they have or not any placement preference.
Example of this is what the Accor Group, that currently owns Club Med and that is also a
hotel chain since they allow their employees to suggest hotels or locations where they
would like to work.

Problem solution:
The main problem of the high turnover rate in a multi-site, international subsidiary of a
large company resort. It also describes the problems of quality of service, because the amount
of value added by employee interaction with customers is high. Analysis of selection and
recruitment as a process flow needed to analyze the situation. There is also a cross-cultural issue
because of a structural imbalance in the ratio of non-US (primarily French) managers to American
managers.
Club Med B Problem Statement
The problem statement refer to the concise description of the issues that needs to be addressed. It identifies the
issues or gap between the current and desired type of the organization, and thus requires to be stated in order
for the management to look for change. The main idea of the problem statement is to answer the 5 w’s that
include the answering who, what, where and why, to allow the organization resolve the problem, by stating it
in clearly in 2 to 3 lines.
In recent period, the problems statement are widely used by the firms to allow the management execute the
improvement process or identify the loopholes that are effecting the overall performance or profitability of the
company. Moreover, the problem statement allow the management to trim down the symptoms of the problem
an organization is facing and look on to the real problem that is causing the damage to any specific aspect of
the company.
Basically, developing a problem statement is an extensive process and requires the proper brain storming of the
teams in order to identify the underlying loopholes or inefficiencies within the organization. Also, it offers the
specific insights to the management in understanding and looking at the factors that have been hidden from the
management sight, effecting the performance slowly and gradually.
Apart from this, while developing the problem statement, it is important for the Problem statement to be
clear and concise. Such is due to the fact, that it allows the management, stakeholder to quickly understand the
finding and also look on the main problem, rather getting entangled in the symptoms of the problem. The
conciseness of the problem statement is the key, as it allows the reader to quickly understand the issue.
Moreover, clarity of the Club Med B problem statement is important to maintain, in order to avoid the
misunderstanding between the shareholders and stakeholders. The clear problem statement is developed by
stating the factors and the operations getting effected and its overall impact on the organization specific the
areas, such as Profitability, sales or brand equity. Also, the purpose of the problem statement is to describe the
external environment and its effect on the overall organization in short and long-term. Moreover it also
delineates the impact of such changing factors on the users, and other stakeholders.
Many times, under the case analysis, the purpose of the problem statement is to improvise the current state of
the organization through pursuing innovation or other changes. hence ins uh cases, the direct problem is no the
ultimate organization factors but the process implementation that is needed to e in lace, in order to bring
change , avoiding the upcoming risk and hence sustaining the competitive edge in the market (Spradlin, 2012).
Furthermore, the establishment of the problem statement, allows the organization and the management teams
to work in a specified direction. Such is important in order to allow the organization move in a specified
direction, reducing the chances of deviating From the actual path. Also, it offers the benchmark to match the
desired condition of the organization, hence putting the efforts of the team in the right direction.
Yet, it is important to note that, the good problem statement does not delineates the solution or the symptoms
of the problem, but it clearly states the gap that lies within the organization. Moreover, it is also determined,
that a clear problem statement is half of the solution, hence it is important To state the problem correctly.
In addition, the problem statement is a group process, and hence requires a detail understanding of the issues
the organization may be facing, by all members in the team. This will allow the team to develop a better
solution plan addressing all the factors and considering all the risk associated with it.
Perhaps, stating the Club Med B problem statement is not just writing the fact, it’s more about the factors that
are effecting or may affect the organization in long term, therefore, while developing the problem statement,
the factors such as human resource skills innovation, technology, change resistance are considered, that have a
direct effect on the organization or is hidden cause of the problem. It is important to note, that the problem
statement can cover tangible or intangible issue but it needs to have a clear relationship with the organization
end goal.
In addition, while stating the problem statement, the aim of the management is to see the mission and vision of
the company and then analyze the current state of the organization, such also allow the right identification of
the problem and the lead to the development of concrete problem statement.
All in all, the problem statement gives a direction to the organization in understanding the right solution path
and also development of the solution sets in order to overcome the current issues that are deteriorating the
organizational performance or productivity. Perhaps, while writ the problem statement, it is important to
consider the small factors that are often overlooked such as the intangible factors that effects the productivity
of the organization in the long-term.

Club Med B SWOT analysis

The acronym Club Med B SWOT stands for strength, weakness, threats and opportunities. It is a useful tool
that is widely used for strategic planning and management in many organizations. It is effectively used in
building strategies for the organization to maintain its competitiveness in the market. It is simple yet powerful
tool that help the organization in identifying its existing resources, capabilities, deficiencies, the existing
opportunities and threats prevailing in the market.
It is a strategic planning framework that is commonly used to evaluate the organization, a plan, business or any
other project. It helps in determine the organizational and environmental factors that could affect the decision
to be made. It is carried out to analyze the position of an organization in in the market compare to its
competitors and the major factors that are affecting the competitiveness before crafting any business strategy.
SWOT analysis mainly have two dimensions internal and external dimensions. Internal dimension includes all
the factors that could affect the organization which is the strength and the weakness while the external factor
includes the environmental factors that is the opportunities and the threats.
Components of Club Med B SWOT analysis
SWOT analysis is a process that include four areas that are further divided into two dimensions i.e. internal
and external factors. In SWOT analysis the strong and weak aspect of an organization is determined by
evaluating the elements within the environment while the opportunities and threats of an organization are
determined by examining the element outside the environment. In this way SWOT allows the comparison of
organization’s resources and capabilities with the competitive environment in which it is operating.
Structure of Club Med B SWOT analysis
In order to carry out the analysis it is important to understand each element of SWOT i.e. strength, weakness,
opportunities and threats.

Club Med B Strength

Strength is a characteristic that adds value to something by making it more special, unique and advantageous
when compared. In this element of SWOT the abilities and the key properties of organization are discussed
that gives an organization an advantage over other organizations by making it more competitive. It defines the
characteristics and situations of an organization which makes it more effective and efficient when compare
with its competitors.
It defines the areas in which the organization hold a command or is good at doing it and that provides the
organization and important capability. It can be a skill, a resource, image, market leadership, relation with
buyer or supplier or any other advantage relative to its competitors that fulfill the needs of the market by
providing the organization with a comparative advantage.
Club Med B Weakness
Club Med B Weakness refer to the situation in which the existing capabilities and the resources the company
holds are weaker or not sufficient compared to others organizations in the market. In other words it means the
aspects in which the organization is less efficient and needs to improve in order to align with the market trends.
As these aspects negatively affect the overall performance of the organization by making it weaker compared
to its competitors.
These are the factors that an organization lacks and does poorly in comparison to the organizations operating in
the same market at the same level. It is a deficiency or limitation of resources, capabilities, skills that majorly
affect the organizations effective performance. Management capabilities, Facilities, financial resources,
marketing skills and the weak brand image can be the sources of weakness.
Club Med B Opportunities
Club Med B Opportunity is an advantage and the driving force for an organization. It is the convenient time or
situation that is present in the environment and will help the organization in achieving its goals. It is a factor
 that contribute positively towards the growth of the organization. It is a condition existing in the external
environment that allow the organization to take an advantage of the organizational strengths, and help in
overcoming the weaknesses and to neutralize the threats present in the environment.
Club Med B Threats
Threats are the factors that prevent the organization from the actualization of an activity. It is an unfavorable
situation that exist in the environment making it difficult for the organization to achieve its defined goals. It is
a situation that arises as a result of the changes that took place in the immediate or distant environment,
preventing the organization from maintaining its existence and superiority in the growing competition and are
disadvantageous for the organization.
All the environmental factors are consider as a threat to an organization that could affect the efficiency and
effectiveness of the organization.

Limitations of Club Med B SWOT analysis

However there are certain limitation attached with it. The SWOT analysis is only a one stage of the business
planning process and do not provide the organization with an in-depth analysis or research that could lead to a
firm decisions. Apart from this it only cover the issues that are definite and doesn’t priorities them. In addition
to this it does not provide any solution or alternatives decisions. As a framework, SWOT does processes a
value but it doesn’t provide the organization with any specific direction on how the key aspects can be
identified. It significantly rely on the capabilities of the manager that how effectively it can prioritize and
determine the most important element. Another limitation associated with Club Med B SWOT analysis is that
it provide equal weight to each factor regardless of their impact or relevancy.

Club Med B Porter’s Five Forces

Club Med B Porter five forces reflects the competitive environment of an industry. It is a strategic tool that is
used to avoid or minimize the risk of losing the competitive edge that the organization has and to ensure the
profitability of the products in the long run. The company holds its vision closely as it allows them to orientate
its innovation in terms of choices regarding the investment and strategies. Within the industry the businesses
profitability is dependent upon the following forces:
 Competitive rivalry
 Threats of new entrants
 Threats of substitute
 Bargaining power of suppliers
 Bargaining power of customers
Structure of porter’s five forces analysis
Club Med B Competitive rivalry
The competition among the firms help in identifying the lucrativeness of an industry where companies are
competing hard in order to maintain their power within the industry. The Club Med B competition is moreover
on basis of diversity, the development within the sector and the barriers related to entrance in the market. The
competitive rivalry is the analysis of the brands and the product, its strengths and weakness along with the
strategies, competitors and the share in the market.

Threat of new Club Med B entrants

It is in the favor of the companies that exist in the market to create barriers for the new entrants to prevent
them from entering into the industry. The organizations could be the new companies or the companies that are
planning to diversify itself in the market. The barriers can be both industrial and legal. Apart from this the size
and the reputation of the companies that are already operating in the market also play an important.
Furthermore the cost related to the entry, access to raw materials, barriers related to culture and technical
standards also play a major role and can affect the decision of the new entrants in the market.
Threat of substitute products
The Club Med B substitute products are an alternatives that are available in the market at comparatively better
prices. Such products prevail due to the technological and innovative advancement. Due to which the products
being produced by the companies that are already existing in the market and is using the same technology are
than replaced by the other company’s products that are comparatively better in terms of price and quality and
are being produced from sectors with significant profits. The substitute products are dangerous as the
companies are under constant threat of being replaced.
High threat of substitute leads to low profitability as it limits the industry profits by placing a price ceiling due
to the fear of being substituted by other product. Apart from this it also affect the growth potentials of the
industry as a whole but reducing the profitability margins.
Bargaining power of suppliers Club Med B
Powerful suppliers possess more power to capture significant value for themselves by demanding high prices
while limiting the quality and the quantity of the product or services or by transferring the cost on the
participant of the industry. Many condition imposed by the suppliers generally include the increase in price
while compromising the quality and quantity.
A bargaining power of a supplier in the market is strong if:
 It is more concentrated than the industry it is selling to.
 It is not heavily relying on the industry for its profits
 If the participants in the industry have to incur high cost for switching suppliers or the firms are located
adjacent to the suppliers manufacturing facilities.
 The product being offered by the suppliers are highly differentiated.
 And when there is no close substitute available for the products being supplied by the suppliers.

Club Med B Bargaining power of customers

The buyers having strong bargaining power can highly influence the profitability of the suppliers operating in
the market by imposing condition that are not much favorable for the suppliers in terms of price, quality or
service. Therefore choosing clients often become crucial for the organizations as to avoid the situation of being
highly depended on the buyers. The level of interest and concentration of buyers toward the product gives
them more or less power.
 Powerful buyers could flip the side of the powerful supplies by forcing the prices to move downwards and by
demanding high quality and services by creating a competition between the participants in the industry on the
basis of price and quantity. Club Med B Customer are deemed strong if they contain negotiating leverage
specifically if the industry is sensitive to price, the buyers can pressure suppliers for further price reductions.
The customer are assumed to have strong buying power in case:
 If the number of buyer are limited or each of the buyer purchases large quantity relative to the size of the
suppliers.
 The products in the industry are standardized or are undifferentiated.
 The cost of switching is comparatively low.
Limitations of Club Med B Porter’s five forces
Though the model from a strategic point of view is an important tool but there are certain limitation associated
with the application of the porter five forces model. The framework use a classic perfect market and relatively
a static structure of market i.e. it only incorporates the aspects of the present day and only incorporate the
events that took place within the short term period. Club Med B Apart from the model only provide the
overview of the environment and does not define the industry clearly. As it can be difficult to group the
companies having similar business lines and to call it an industry. Therefore Porter framework due to its
limitation is too inert to be depending upon outside the short term to medium, term objectives. It emphasizes
more on external factors and ignore the specific factors that are more specially related with the firm. The
model doesn’t incorporate new business model and the changing dynamics of the market and the impact of
globalization. Moreover it does not consider non-market forces.

Club Med B PESTLE Analysis

PESTLE analysis is one the significant and widely used tool or framework mostly by organizationswith the
intent of considering the market environment before commencing the process of marketing. In fact, the
analysis of the environment needs to feed all planning aspects as well as it should be continuous. The internal
environment of an organization includes internal customers or staff, wages, office technology and finance etc.
whereas the micro environment includesthe external customers of an organization, distributors or agents,
competitors and suppliers. Additionally, the macro environment includes legal and political factors,
sociocultural forces, economic forces and technological factors.

PESTLE Analysis
 For the purpose of maximizing the benefits of such analysis, it is important that it should be used on regular
basis so that an organization would be able to identify the trends. The effect of the particular external factors or
forces might have extreme consequences for the specific department or divisions, also the analysis better helps
companies in clarifying the needed or required changes, thus identifying the potential options (Norton, 2008).
The factors or forces are discussed below;

Political forces:
These are the Club Med B forces that tends to be altered by the influence of government on the infrastructure
of country. The political factors may involves environment regulations, employment laws, tariffs, tax policy,
trade restrictions, political stability and reforms. It is noteworthy, that the charities needs to be included where
a government are not willing services and goods to be provided.
Economic factors:
The Club Med B economic factors or forces involves interest rates, inflation, and growth of economy, cost of
living, working hours, wage rate and exchange rates. Combining these factors, it last greater and inevitable
impact on organization.

Social factors:
The culture or social influence on certain businesses vary from country to country. It is significant to consider
these factors. The social factors includes safety and health consciousness, various demographics, population
growth rates and cultural aspects.
Technological factors:
Notably, Club Med B technology is one of the most important way of being competitive in the highly
competitive market arena. Not only this, it drives globalization, the factors includes environmental and
ecological aspects, and available services as well as products. An organization should innovate and be
compatible with the technologies.
Legal factors:
The Club Med B legal factors involves the certain laws and regulations which might effect on the business
operations of an organization. It also includes impending and current legislation that tends to impact on the
industry in areas including competition, employment, safety and health. An organization should consider the
influence of the national and international laws where the organization would originate the business operations.
Environmental factors:
The environmental factors include all those factor lasting impact or influence, the surrounding environment
most likely determine environmental factors. The factors involves awareness of the seasonal or climate change
or terrain variation. The analysis of the environment including internal and external elements is vital for
organization since it impacts on the performance of an organization.
Limitations of Club Med B PESTLE:
The limitations are discussed below;
1. The external factors are dynamic and can be change at a rapid pace. Overtime, the changes might be occur in
less than one day, therefore the companies should make it tricky in order to predict how and why these forces
might influence the future or present of the certain project.
2. There are many occasions, in which the environmental changes have an adverse influence on the project that
might not be noted in the initial stages of project, indicating that the uncertainty sis still there even after the
pestle analysis have carried out. This in turn might defeating the prime reason of the pestle analysis.
3. The usual or common procedure for pestle analysis is presenting a simple list of the environmental factors
affecting the project. Until& unless, the organization critically examine the attributing factors, the analysis’s
findings does not seem to be of greater value or consideration.
4. The analysis is supposed to be insufficient for the strategic planning objective, since it likely scans the externa
environmental, whereas avoiding the competitive scenarios and internal environment. Nonetheless, the
analysis needs to be conjunction with other frameworks such as S-W-O-T analysis in order to get a more
realistic picture.
Club Med B Conclusion
To conclude, PESTLE analysis is considered as an effective tool of planning and it offers viable and effective
technique foranalyzing and scanning the operating environment of an organization. The effectiveness of the
analysis highly depends on the accuracy of the collected data, updates to accommodation changes in timely
manner and other tools trimming down the PESTLE limitation to some extent.

Club Med B VRIO Analysis

The Club Med B VRIO analysis is basically the extension of the Club Med B PESTEL analysis, which allows
the oragnation to understand the resources, competitive edge, value proposition and its value in the market.
The Basic idea of the Club Med B VRIO model is to analyze the factor that are valuable for the organization.
Such may include the supply chain efficiency, value chain maintenance, technology or other factors, that offer
value to the company and in return allows the organization to offers similar value to the customer.
In addition, it also analyze the factors that are Rare within the organization. Such analysis of the
compatibilities or capacities is important, as it allows the organization to develop the sustainable competitive
edge over it. The value factor analysis of the organization gives an eye opening view to the management and
also offers the solution on where the organization may build the market utilizing the area value creation factors
Moreover, it also determines the Imitable factors. These are the factors that are easily imitable by the
organization (other players) and thus needs to be considered. In addition, the imitable factor also outlines the
factors that are inimitable by the other organization. These in-imitable factors allows the organization to
developed the sustained competitive edge in the market and hence enhances the chances of sustainability ion
the long-term.
Lastly, Organization factor includes the resources and functions that are offering certain value to the company.
This determination of organization allow to the company to understand what additional things or function is
required to be in place, or needs to be improvised in t=long term.
All in all, the advantage of using the VRIO analysis is to determine the sustained competitive edge in the
market. Such determination is important for the organization to expand in the market and continue its
operations with sound profitability. In addition, it offers clear view what are the factors that are valuable and
inimitable o can be easily imitated in the long-term, thus preparing the organization to either use the valuable
factor to delight the customer and develop a sustained competitive edge, or enhance its value and oragnation
strengths to develop a strong competitive edge in the market, which is important to develop and maintain in
order for the organization to remain profitable and allow the maintenance of market share in the long-
term (Hille, 2015).

Club Med B Financial Analysis

Club Med B Financial analysis is the assessment of the stability, viability as well as profitability of a sub-
business, business or project. It is the process that is widely used for identifying the financial weaknesses and
strengths of the corporations, this can be done by building the relationship between items of the profit & loss
account and balance sheet. It can be used for examining the business operations from the variety of perspective
for determining the ways that can be used to strengthen the business and understating the greater financial
condition or situation. The process scan the financial statement to evaluate the relationship the disclosed items.
In other words, the analysis keep focusing on the past performance evaluation in terms of profitability,
 liquidity, growth potentiality and operational efficiency. The analysis of the financial statement involves the
methods use in interpreting and assessing the outcome of the current and past financial position or performance
since they associate to particular interest factors in investment decisions. Thus, the analysis of the financial
statement is important mode of assessing the past performance as well as planning and forecasting the future
performance.
Elements Assessed By Club Med B Financial Analysts:
The elements are listed below;
Profitability:the financial analyst generally assess profitability of an organization since it is the ability allow
organization sustaining growth and earing income in both long term and short term. A degree of profitability of
an organization highly depends on the income statement reporting on the operations results of company.
Solvency:it is the ability of an organization paying off its liabilities or obligations to third parties or creditors in
long term. The solvency depends upon the balance sheet of company indicating the company’s financial
condition at a given period of time.
Liquidity: it is the ability of an organization satisfying immediate obligations, maintaining positive cash flows
and it most likely based on the balance sheet of company depicting the financial condition of organization.
Stability:the ability or an organization to remain in the business for the longerperiod of time without sustaining
significant losses while conducting the business operations. By assessing the stability of the company needs
use of balance sheet and income statement as well as non-financial and financial indicators.
Users of Club Med B Financial Statement Analysis
The users of the financial statement are listed below;
1. Management:the controller of the company most likely prepares the ongoing analysis of the financial results
of companyin relation to the unseen operational matrices by outside entities.
2. Investors: both prospective and current investors tends to examine the financialstatements for leading the
ability of company to continue generating cash flows, issuing dividends and growing at historical rate.
3. Creditors:one who has landed funds to the organization likely show his interest in its ability paying back the
debt, thus keep focusing on measures of cash flows.
Types of Club Med B Financial Analysis
Financial ratios:
Significantly, creating the financial ratio add meanings to the accounting and financial data of the business.
Therefore, being the use of the financial ratios would provide assistance thereby leading to the overloaded
information. Theratios are sub-divided into the major groups that tend to cover the financial areas.
Sales:
The sales amount of an organization depicts the business size. The sales implications for the selling and
purchasing power, economies of scale and amount of market share. The % change in sales invocates that how
rapidly or quickly the sales has been growing over the period of time, thus leading to answer the question
regarding growth in relation in competitors and general economy.
Profitability:
It is significantlyimportant for companies measuring profit in context, for example; if it is stated that the
company has generated 10% profit returns and did not ensure the provision of profitability-oriented
information but in case if the company had make a 10% gross profit or return on equity, then the profit term
would give meaning. The ration lay under profitability are discussed below;
Return on assets (ROA): it is one of the most commonly and widely used performance measure of an
organization. The return on equity likely measures the profit amount that had generated by assets. It is used
with the intent of analyzing that how well an organization have put their assets to work comparing to other
competitors.
Return on equity (ROE): This performance measuring parameter measures the return that the company has
earned in relation on the owner funds. The matric can be adjusted for thepurpose of reflecting the average
equity amount being employed during the span of year, giving the more accurate and realisticpicture of how
the organizationhas been performing throughout the year.
Gross profit margin (GPM):it is also referred to operating profit margin. It is most common use with the
objective of assessing the business model and financial health of company through revealing the remaining
portion of money from revenues after deducting cost of goods sold.
Operating return on total assets (ORTA): this matric most commonly provides better way of looking at the
ability of the organization to generate profit returns from the principle or core activities since it does not
involves other expenses including interest expenses not it includes marketable securities income, interest
income or onetime extraordinary transaction.
Asset Management – Club Med B
The ratios under asset management includes current asset turnover, day’s receivable, days of inventory and
inventory turnover.
Asset turnover: this measure is widely used in order to measure the ability of the company in
generating sales from the fixed assets. Not only this, it also indicates that an organization has a lot
unproductive assets for instance inventory, receivables, equipment and plant for its current sales’ level.
Fixed assets turnover: it is supposed to be vulnerable to the asset valuation issue. It is most important ratio in
companies which are capital intensive. It is comparatively low importance for the companies with minimum
need for capitals such as leased retail operations and wholesale distribution. In case an organizationis
decreasing fixed asset turnover so it means that the production has been running at lower than capacity.
Current asset turnover:it measures the current asset level that is require for supporting sales.
Day’s receivables: it is the measure of how long will it takes for an organization collecting bills owing to it.
The collection time is measured by days receivables on credit sales.With increasing day’s receivable, the
company would need more working capital. The credit policy of an organization last greater impact on the
day’s receivables. It is important to note there that it also highlights the needs to beaware of keep emphasizing
on the company’s specific concerns without appreciate secondary influence on other ratios.
Days of inventory: it is the indication of how the company efficiently managing inventory. The inventory
amount can be monitored by analyzing day’s inventory ratio.
Club Med B Financial Structure
Financial leverage multiplier: it is the connection between return on equity and return on assets of an
organization. It provides the way of looking at the relative equity and debt amount that has been using by
company in order to finance the assets.
Current debt to equity ratio: it is the mix if the debt of an organization. In case of high current debt to equity
ratio, it means that the company would be in problematic situation while paying its bills.
Equity turnover: in case of high debt to equity ratio, it might because of the too little equity or too much debt
burden on an organization. In case of high equity turnover ratio, indicating that the shareholders have
efficiently used equity.
DuPont’s Club Med B Profitability Model
It is considered as the best model as it does not reveal anything regarding the liquidity of an organization. Also
it likely reveals about the organization’s expense. One of the unavoidable advantage of this model is thatit has
begun establishing benchmarks – across companies and over the period of time which can be used for flagging
the potential issues areas where more than one ratios are reflecting the key problem or issue.
Trend or Percentage Analysis
The useful snap shot can be taken by analyzing the financial condition of an organization in a particular time
period. Also, there are many questions that can be bets answered by comparing the figures in Club Med B
percentages. For instance; which are the areas of company getting stronger or weaker? Which areas are in need
of immense attention? Etc. for the purpose of answering these type of question, it is important for organization
recasting the financial statement in to the percentage terms. The major advantage is that it enables the
significant comparison between time periods. There percentages are most likely providing analysts or
managers with the fast or rapid way for finding key issues or problems. Additionally, the attention can be paid
to certain weakness and strengths through seeing the appropriate changes over the period of time.
After considering the major top problems, the business analysts or managers would then be able maximizing
the shareholder’s wealth.
Comparative Club Med B Analysis
The evaluation of the performance of company is often easier in case of having benchmark or standard
performance for the comparison. The suitable benchmark can be found with some problems such as unique
attributes problem and averages problem etc. it is not appropriate setting an average as an objective. An upper
performance quantile can be the most appropriate performance standard (D’Aveni, 2007)
Operational Club Med B analysis
The Club Med B assessment of the operational efficiency in the initial stage as a whole for business or any of
the business sub-division is likely performed through a percentage analysis of income statement. Individual
expenses or cost items are associating to gross sales revenue adjusted for all allowances and returns. The sales’
common base permitting a ready comparison between key expenses from time to time against industry
databases and competitors in the market over longer stretches of time
Cost of goods sold and gross margin analysis: in operational analysis the most commonly used ratios involves
the calculation of the cost of sales as a percentage of sales. The ratio depicts that the magnitude of the cost of
services provided or cost of good manufactured or purchased in relation to gross profit or gross margin left
over for operating profit and expenses. It is noteworthy that the gross margin reflect the relationship of volume,
price and cost. A change in the gross margin might derived from the combination of the changes in the
product’s selling price, manufacturing cost level for the product and the variation in the business’s product
mix.
Contribution analysis: this analysis is mainly used for the internal organization’s management, even though it
is increasingly applied in broader analysis of financials, it includes relating sales to the individual product
group’sor total business contribution margin. Such type of calculation needs very selective estimate or analysis
of the variables and fixed cost or expenses of the company while taking into consideration the operating
leverage effect.
Club Med B Market Indicators
There are two equally important ratios used as indicators of the values of stock market.
the simple relationship between current stock market price and expected or current earnings per share is often
quoted by both owners and management. The earnings multiplier ratiois considered as a broad indicator of
how the earnings performance and prospects of organization is judged by the stock market. The
straightforward calculation related the common share current market price to the most recent available EPS on
the yearly basis.
Relative movements in price: targeting for the purpose of creating the shareholder value depends on the
relative performance of price. The movement in price are likely expressed in mentioned ratios and absolute
dollar terms. While the typical investor shows their greater interest in absolute change in shares value, the
insights from the stock performance to the appropriate average and to the market for some industries are
supposed to be helpful to assess the company’s particular trend (Rappaport, 2010).
Value drivers: in recent time, the approach that has been significantly gaining the increased recognition is
identifying the key elements standing out as vital in shareholders value creation of the specific organization.
From the standpoint of owners, the key value drivers may be the growth potential company’s key services and
products, key technology capabilities providing the competitive edge, superior process’s cost effectiveness as
well as the strategic differentiated positioning. Combining all of these lasting inevitable impact on the
expectations of market regarding the cash flow generation and future success of the company.
Value of firm:this is the most common concept recognizing the components of capital structure of an
organization debt and equity are tends to be values separately in the market. The formula for calculating the
value of firm is showing value of the shares of company is the function of the firm’s total value less debt value
(Harms, 2015).
 Conclusion
By having a closer look over the matrices used for financial analysis, it is to say that the financial statements
holds notable importance because it evaluates the management performance, plans and corporate strategy for
future.
In addition, the financial analysis helps companies in making the more informed decisions for the firm. The
underlying objective of the financial analysis is organizing the financial statement as well as other accounting
data of an organization enabling the comparisons with other companies, also enabling to accurately evaluate
raw data. In short, it provides the basis to company’s executive, analysts and manager of making the company
profitable in forthcoming years (Helfert, 2017).

Alternatives
The particular section deals with the different ways the problem can be resolved. In particular section, the
management/teams develops different options through which the problem can be resolved. Many times these
options are already in hand with the management or re-developed from the scratch through strong brain
storming.
In typical situation, there are three options that are developed in by the organization to deal with the given
problem. The options developed entails and includes the maximum factor that the organization should analyze
or achieve, thus offering great value.
While developing The Alternative, the following factor are taken in account, in order to develop the best
alternative that may resolve the problem effectively.
These factor includes the consideration of the following:
 Cost
 Reliability
 Invulnerability
 Merit
 Simplicity
 Compatibility
 Reversibility
 Robustness
 Stability
 Riskiness
Club Med B Cost:
The cost includes if the option proposed is cost effective or can be afforded easily by the company without
effecting the overall profitability and other operations of the company. The consideration of cost is important
in the alternative generation in order to attain the maximum feasibility with overall business strategy and the
budget allocated.
Reliability
The reliability factor includes if the option developed is successful or has the successful track record in the past
or with the pats companies. Such is important to analyze or else it would lead to failure.
Invulnerability
The Invulnerability of the option is also analyzed, in order to understand the sustainability of the option if the
one part factor is missing so to understand the suitability of the option.
Merit
The merit factor, outlines if the option really resolving the issue or aligned with the given situation.
Simplicity
The simplicity factor analyses if the option proposed is easy to implement. Because adopting or proposing an
alternative that is difficult to implement or takes a lot of resources with no definite outcomes is vain.
Compatibility
In addition, the compatibility of the option is also analyzed, in order to understand if the given option is
aligned and compatible with the procedures of the organization. Such factor analysis is important in order to
avoid any resistance implementation and also save the resources and efforts.
Reversibility
Among the above factors, the reversibility factor carries high importance. It is due to the fact that the
organization needs to analyze exact factor in terms of its reversibility to see, if the process can be reversed, if
the option fails to offer the respective results.
Stability
The ability of the option is considered while the alternative generation process, so gauge if the option will
remains table, if the given situation and markets changes. And will it make the organization sustained in the
changing market situation.
Robustness
The robustness of the option also needs to be analyzed. It is due to the fact that such analysis allow the
organization to see, if the option will remain strong in future or not.
Apart from this while developing the option, it is important to consider the realistic nature of the option. The
option has to be realistic and should have imperative results on the organization. The realistic and SMART
nature of the option is important to be considered and developed, so it offer maximum value and also resolves
the problem effectively.
Lastly, while developing the options/alternatives, it is important to consider the nonrealistic factors that may
make the alternatives complicated, leading to poor implementation, time consumption and other related issues.
Hence, it is suggested, that while developing the alternatives, it is important to consider the realistic and smart
nature of options along with the avoidance of developing such issues that are not offering the right solution or
the suggesting such options that are of no use to the organization.

Club Med B Evaluation of Alternatives

Alternative are the different ways of achieving a same end goal through two or more different methods. It is
not a close substitute of a first define choice or other alternatives or must provide the solution of the problem in
a particular way. For instance, lower price, special offer, and money back guarantee etc. are all the different
ways for achieving the same objective that increased sales. Alternatives are generally mutually exclusive in a
way that if we combine two or more alternatives together it will eventually create a new alternative.
They are the Club Med B technical and economically ways through which the project can be carried out
feasibly. It is encouraged to be consider especially for a projects that are large and complex in nature
Under the evaluation of alternatives the pros and cons of the alternatives developed above are gauged based on
the benefits they offer to the organization and also the strengths the carry that may help the oragnation in
overcoming the problem. In addition to this, the disadvantages of the alternatives entails the costs that are
associated with implanting the option, and thus required to be considered before the implementation process,
in order to avoid any mishap in future or during the implementation.
Under the Cost/benefit analysis of the alternatives, different factors such as cots, competitive edge, market
share, financial feasibility and human resource required are considered to be the major factors of
implementation. In addition to this, the careful and deep consideration is given to the political, economic,
social and other porter 5 forces and pestel model so to understand the alignment of right alternative with
maximum value and weightage in resolving the problem.
Moreover, under the particular section, the decision criteria is also developed. The particular decision criteria
incorporates all the factors that the company aims to archives. Such factors may include sales, profitability
competitive edge, market share and other. Once it is done, each alternate is compared against each other and
with the decision criteria develop, and are given different weigtage. These weigtage are given based on most
favorable to least favorable, and the option with most rating s ultimately selected.
Also, during the evaluation process, the financial feasibility of the organization is also considered and the
drawbacks/weaknesses of the organization. This is important as it allows the organization in meeting the
ultimate goals and addressing the problem effectively.
Lastly, while doing the evaluation of Club Med B alternatives, it is important to quantify the options through
different techniques. Though in many cases, it is difficult to analyze the feasibility of the options especially the
intangible factor, however, quantifying the maximum option is important, in order to develop a clear image
and understanding of option that will address the problem.
Also, while selecting a particular course of action/alternative, it is important to ask” whether the option will
resolve the problem directly, or will an additional efforts will be required to address the problem. In Addition it
is also needed to be considered, if the given option or the alternatives have the right alignment with the
organization and re offering value.
Perhaps, it is important to involve other members to take the active feedback on the alternatives, in order to
gauge the value of the alternatives and the value it may offer to the organization in the long-term. The open
discussion and review from past enables to see more clear picture of the ultimate outcomes, leading to better
implementation and selection of the right alternative.

Club Med B – Recommendation

Once the options are developed and evaluated, the recommendation is made, on the basis of the best suited
option that offers the maximum value to the company and address the problem succinctly. The
recommendation is mad in away, that not only offers the solution the problem, but also depicts the
implementation process and the course of action that the organization needs to take in order to be successful.
A strong Club Med B recommendation must cover the key areas as how the organization will implement the
alternatives, what benefits will it receive if it implement the when alternatives and what could be the cost, that
he organization will need to overcome or address, in order to effectively implement the alternatives.
In addition to this, once the alternative is selected, the recommendation needs to entail what change it will
bring to the organization like the 20 % increase in the Club Med B sales or profits or the sustainability or
increases in market share. These factors are important to be mentioned in the recommendation, in order to
make itr strong and firm and allow the stakeholders/reader to connect the problem and solution, leading to
better understanding.
Moreover, the recommendation also needs to entail the plan B, that if for instance the results are not generated
as per the plan, the second set of recommendation must be incorporated in the plan, in order to allow the
organization to quickly shift to the plan B, in order to avoid the losses and sustain the presence of the company
in the market.
Lastly, under the recommendation, it is important to incorporate the finding from the past, so to make the
given Solution more acceptable. A good recommendation is that, incorporates the findings from the past. This
is important, as it allows the reader and stakeholders to understand the proven facts, and the pasts results such
recommendation has harvested, leading to more acceptability and also the determination of the plan that may
be in need to be adopted so to avoid the delays and resistance in the organization, while implementing the
change.
Infact, the set of recommendation offered should also have a contingency plan, and the other course of action
for plan A and B both. This makes recommendation more firma and acceptable.
All in all, the recommendation include, what, why, how and whom factors. Thus is important as to allow the
organization. Shareholders to clearly understand what is required to done, how it is required to do, who are the
key player and how it will be implemented. In addition time required has to be mentioned. This allows the
stakeholder to understand and determine the time and resources required to implement the plan effectively