Problem
Read the following case scenario and answer each of the case-related question belows in the space provided.
Case Scenario
"The Med" (referencing its Mediterranean roots), is a privately owned "5-star" equivalent casino and live performance theater in Athen's commercial district. In addition to the typical casino offerings, The Med attempts to rival Las Vegas shows by attracting high-priced talent such as famous singers and other performers. During its 10 years in business prior to the financial crisis in Greece, The Med was highly profitable. The casino and theater was at full patron capacity on any given weekend and has been one of the top performers in the luxury market segments over the years immediately preceding the economic crisis. The casino's main target market have been wealthy Greek business community members who adore these outings with clients, associates, and friends and family. Frequently, Greek business executives would see their own companies pay for their accommodations, and the entertainment of clients and even clients' families. Patrons most often also stay in the casino/hotel overnight or for the weekend while enjoying their entertainment.
However, the turbulence in Greece's economic environment over the past few years has resulted in policy changes by these companies as they have drastically cut entertainment related expenses for executives. This was an important target market for The Med. As well, with the financial decline of Greece, many wealthy families do not spend as lavishly any more as they are concerned about protecting their long-term wealth. These changes have significantly reduced the profitability of The Med, to the point where they are barely covering their fixed costs.
You have been asked by The Med to assist their management team in strategic analysis, and assess the impact of these changes on their strategy.
What relevant external environment factors are impacting The Med in this case? Explain the implications or considerations of each factor as it applies to The Med's situation.
What are the strategic implications that The Med should consider in this case and some potential courses of action? Some areas of concern you should include in your answer:
a) Changes to corporate level, business level, and network level strategies
b) Risks associated with foreign exchange rates or cash flow.