Small Firms in the Hotel Industry

Why can small firms survive successfully in the hotel industry?

What economic forces might favour hotel chains in the future?

'Fitness First is attempting to grow organically.' Explain what this means using examples from the data.

Suggest and explain one reason why Fitness First might want to grow.

Suggest why it is most unlikely that Fitness First would want to grow through either backward or forward integration.

Explain what is meant by horizontal integration, using Vertu as an example.

Explain two constraints on business growth that Vertu might have experienced.

Discuss whether Vertu would have been more successful if it had grown organically rather than through acquisitions.

Explain why eBay is demerging PayPal and eBay Enterprises.

Discuss whether the demerger will lead to high growth for each of the three businesses.