Before 2013, Shandong Four Seasons Minghu Hotel Co. Ltd. was a high-end restaurant and food service company. In December 2012, the Chinese government implemented the Eight-Point Regulation that prohibited government officials from indulging in luxury banquets and high-end meals. The new government policy had a negative effect on many companies across the high-end food service industry, whose customer base consisted mainly of government officials. In response to the new government policy, Shandong Four Seasons Minghu Hotel Co. Ltd. made some strategic changes that eventually led the company to recover and survive. However, fierce competition created many challenges. The company had to determine whether to explore other markets and how to better satisfy the needs of consumers.
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