International Business Project On Extended Stay Hotel In Bermuda

TABLE OF CONTENTS

PHYSICAL FORCES 3

SOCIOCULTURAL FORCES 5

ECONOMIC AND SOCIOECONOMIC FORCES 8

COMPETITIVE AND DISTRIBUTIVE FORCES 10

MARKETING AND MANAGEMENT ASSESSMENT 12

APPENDIX 14

BIBLIOGRAPHY 15

PHYSICAL FORCES

Bermuda is a British territory comprised of 138 islands. The main island of Bermuda is located 650 miles east of Cape Hatteras, North Carolina. The main island can be reached by air, from New York City, in less than two hours.

Bermuda has a unique topography. The primary vegetation is coniferous forest. The terrain is moderately hilly and low. At its highest point, Bermuda reaches only 79 meters above sea level. The shoreline is comprised of bays and inlets with coral sand beaches, primarily in the south. There are no known rivers or surface streams in Bermuda. There are fewer than twenty brackish and freshwater ponds, and only seventeen peat marshes on the main island.

The climate of Bermuda is desirably subtropical. There is never any frost, ice or snow. However, hurricanes are a threat.

Bermuda is not home to many natural resources. Its primary resources are limestone and a pleasant climate that fosters tourism.

There are other physical resources that are susceptible to change. These primarily involve transportation. There is currently one airport with a paved runway. There are 278 miles of paved roads. Of those, 140 miles are public roads, while 138 miles are private. There are two major ports, Hamilton and St. George. The merchant marine consists of 132 ships.

There are physical barriers and opportunities to locating a business in Bermuda. The barriers are a lack of natural resources, a lack of undeveloped land and possible loss of transportation due to inclement weather. Strengths are a very desirable subtropical climate and short distances between major transportation points.

SOCIOCULTURAL FORCES

For such a small area, Bermuda is rich in cultural heritage. There are groups performing and supporting nearly all areas of the arts.

In the 1800s, British military sent artists to Bermuda to paint military fortifications. Since then many famous artists from America, Britain, Canada and France have painted Bermuda. Some include Joseph Blackburn, Albert Glazes, Winslow Homer, Georgia O’Keefe, and E. Ambrose Webster. Modern artists are often supported by international business and wealthy individuals.

There are several dramatic groups and celebrations in Bermuda. These include the Bermuda Festival of Performing Arts, the Bermuda Musical and Dramatic Society, the Hasty Pudding Theatricals (from Harvard) and the Gilbert and Sullivan Society of Bermuda.

Music is a large part of Bermudian culture. Some common forms of music found are choral, Calypso, steel pan and bagpipe. There are three main Bermudian musical societies. These are the Bermuda Musical and Dramatic Society, the Bermuda Philharmonic Society and the Menuhin Society.

Dance is also a celebrated art in Bermuda. It is home to the Bermuda African Dance Company and National Dance Foundation of Bermuda.

Bermudian culture is rich in folklore. Much of this is evident in stories related to slavery. There is also the legend of the Bermuda Triangle, as well as the belief that the web location of the Nephilia spider is a predictor of hurricanes. Lore says that if the web is positioned low to the ground, there will be a hurricane. If it is high, all is safe.

Bermudian architecture is mostly derived from necessity. Buildings must be constructed of limestone or concrete blocks with slate roofs (or faux slate). Roofs are whitewashed to lime rainwater for consumption and other uses. This is necessary, because in order to have a well, a license must be obtained by the Health Department of the Bermuda Government.

Bermuda has one of the world’s highest population densities, however current population growth is low. Less than one fifth of the total population is under fifteen years old. Three fifths of the total population is descended from African slaves. English and Portuguese are major languages, and Christianity is the primary religion.

Bermuda’s dense population has a very high cost of living. Although the average salary in 2004 was $49,500, the average apartment rental was $3,000+ per month. More than one-third of Bermudian family income is spent on housing. Only forty-two percent of Bermudians own their own home. This is the lowest rate in all developed countries.

As for education, all schools in Bermuda are English-speaking only. Due to this, boarding schools in the UK are popular choices for expatriate parents. Bermuda is home to both public and private primary and secondary schools. Although it has no universities, Bermuda is home to Bermuda College. Bermuda College offers two-year programs in liberal arts, business, hotel administration and technology; as well as a two-year transfer program to transition to a four-year American university.

Unspoken communication barriers are present in Bermuda. Although most of the population is derived from African slaves, racial division is apparent. This racial tension is even seen between blacks who integrate and those who wish to remain segregated.

Although fifty-five percent of Bermuda’s labor force is black, most of the professional workforce of Bermuda is comprised of white expatriates. Blacks have traditionally held non-managerial, non-professional jobs. Due to this, all companies with ten or more employees must register with the Commission for Unity and Racial Equality (CURE). Each year these companies must complete the Work Force Survey. The Survey includes questions concerning the racial background of employees, salaries and wages, compensation packages and hiring and promotion information.

Business protocol in Bermuda is somewhat similar to that of the United States. Banks, government offices and post offices are generally open Monday to Friday, 8 a.m. to 5 p.m. Stores and