Strategic Plan for Eco-travel - Essay Example

?Table of contents 0 Introduction 2 1 Strategic plan part Conceptualising a business 2 2 Mission ment 3 3 Vision of the organisation 3 1.4 Values for the selected business 4 1.5 Evaluation of how the organisation addresses customer needs 5 2.0 Strategic plan part 2: SWOTT analysis for Eco-travel 6 2.1 A critique of the organisation’s preparedness to adopt to change 8 2.2 Opportunities faced by the company 8 2.3 Hypothesis surrounding each issue 9 3.0 Part 3: Balanced score card 12 3.1 Financial perspective 12 3.2 Customer value perspective 13 3.3 Internal operations perspective 15 3.4 Learning and growth 15 4.0 Final strategic plan 17 4.1 Communication plan 17 4.2 Strategies and tactics 18 4.3 Recommendations 18 Table 1: SWOTT analysis for Eco-travel 7 Bibliography 20 1.0 Introduction For every business to be successful, a strategic plan is often seen as a vital tool that can be implemented (Rossouw, & Kruger, 2003). As such, this report seeks to critically outline the strategic plan for Eco-travel, a new business enterprise to be launched soon. The report is divided into four categories outlined below. The first part is concerned with conceptualisation of the business idea and it focuses on importance of the business’s vision, mission, and values in determining its strategic direction. The second part analyses the individual values and the organization’s values as reflected by the organization’s plans and actions while part three is concerned with internal and external environmental analysis for the proposed business. The last part presents an overall business plan for the above mentioned business. 1.1 Strategic plan: Part 1- Conceptualizing a business Eco-travel is a small scale business operating in the tourism sector and it is concerned with the provision of hospitality services to customers who mainly visit local community tourist attractions which are often overlooked by other big, established players in the same industry. This is a new business concept in the tourism sector which is dominated by established corporations. The customers mainly comprise of people from local communities as well as others from the neighbouring communities. Regional as well as visitors from different parts of the country are not excluded. The idea of this service was conceived after realising that established tourist operators often shunned local community resort centres as these were often regarded as small. Competitive prices will be offered in order to stimulate business in this new tourism sector. 1.1 Mission statement “To provide a platform where all our customers can gain knowledge about their local heritage though promoting community tourism in a bid to bridge the knowledge gap existing among targeted clients.” Knowledge management is key to the success of the company given that it is primarily concerned with educating people so that they become aware of the essence of protecting the environment in order to preserve their local natural heritage. In this case, the mission of the organisation demands that the knowledge base as well as capacity building among the targeted consumers have to be increased in order for the business to achieve its set goals. Measures have to be put in place to enable free acquisition, sharing and processing of information that can be in turn converted into valuable knowledge to the organisation. 1.2 Vision for Eco-travel “We are committed to become a leading community tour operator through responding to customer needs and changes that may take place in the market at competitive rates that are unmatched.” The organisation’s overall vision is mainly concerned with becoming a leader in the local community tourism sector in the future through harnessing on the strategy of knowledge creation management among the stakeholders involved. In order to achieve this feat, the company will primarily focus on quickly responding to the needs of the customers as well as constantly scanning the business environment for any changes that may affect its operations. The organisation strongly borrows from the notion of business agility by Taylor (2004) who posits to the effect that new strategies related to knowledge creation have to be implemented in order to keep pace with changes in the environment. Given that this industry is constantly changing, the vision of the company is strategically designed so that it can be in a position to deal with negative situations that can threaten its viability. Involvement of stakeholders in its operations is one effective method that can ensure the organisation’s competitiveness in the long run. 1.3 Values for the selected business Basically, values represent convictions that a specific mode of conduct is personally or socially preferable to an opposite mode of conduct (Robbins, 1993). Thus, the following guiding principles ought to shape Eco-travel’s business: All employees must respect the cultural values of every customer. All people should be treated as equal. Priority should be given to issues related to protection of the environment. Customers should be treated as kings. The organisation should uphold the ethical code of conduct in its operations. These values evolved from the notion that an organisation operating in an environment with people should in turn be people oriented in order to appeal to their interests. A combination of the above mentioned values together with the company’s mission and vision can play a significant role in guiding the organisation’s strategic direction. These have been strategically designed in order to enable the organisation to steer its operations towards the set goals. If the operations of the company are streamlined towards the same direction, there are likely chances that its goals and objectives will be achieved. An organisation that does not follow a particular direction in its operations is bound to fail (Rosouw & Krugger, 2003). In this case, it can be noted that Eco-travel has a clearly defined direction to follow in its operations. The organisation intends to align these values so that they are in compliance with its actual plans an actions. 1.4 Evaluation of the ways the organisation addresses customer needs The organisation has designed various measures that are meant to address the needs of the customers. The ideas by the customers are taken into consideration when making the decisions that shape the operations of the company. This is meant to appeal to the interests of the customers so that they share the same vision with the organisation. The strategy of treating the customers as kings is also designed to enable them to identify with the organisation which can positively contribute to its growth and development in its operations. The organisation also strives to be responsive to the needs of the customers in a bid to create trust among them which is based on mutual understanding. Before implementing any strategy, a market research about the needs of the customers is carried in a bid to enable the organisation to make informed decisions that are likely to appeal to the interests of the customers. In order to be in a position to satisfy the needs of the customers, there is need for the responsible authorities to treat them as valuable people to the operations of the organisation. If the customers are given this due recognition, they are likely to influence their peers to try the service offered by the organisation as a result of the satisfaction likely to be derived. Loyalty programmes are also put in place in order to establish long term relationships with the customers so as to ensure sustainability of the organisation in its operations. Over and above, it has been observed that in order to gain a competitive advantage, the organisation has underscored to differentiate its services from those offered by mainstream operators in the tourism industry. According to Porter (1985), this can be achieved if the organisation seeks to be unique by offering services that are completely different from those offered by the other competitors while at the same time retaining value. The organisation seeks to differentiate its services through empowering the local members of the community to be masters of their destiny. In this regard, they will be responsible for the day to day running of all the activities involved whereby they will take a leading role in generating knowledge that is vital with regards to the sustenance of the business initiative. Empowering the members of the community to take a leading role in the tourist services offered will make a difference in the industry that is characterised by large organisations that are mainly concerned with reaping profits from their operations. 2.0 Strategic plan Part 2: SWOTT analysis A SWOTT analysis attempts to define the relationship between the internal and external environmental factors that affect the operations of a particular organisation (Robinson, 1997). This is commonly known as SWOT analysis which stands for strengths, weaknesses which represent the internal environment of the firm while opportunities and threats are external environmental factors but in this case, the additional T stands for trends. This analysis is used to determine the extent to which both internal and external environmental factors are likely to impact on the operations of the firm. As such the SWOTT analysis is going to focus on the following seven forces in a bid to establish their likely impact on the organisation: innovation, social, environmental, economic, technology, strategic capabilities as well as legal/regulatory trends. This section of the strategic plan will also critique the extent to which the organisation can deal with issues related to adapting to change as well as identifying the major issues and/or opportunities that the company faces based on the analysis above. The plan will also generate a hypothesis surrounding each issue and research questions to use for conducting the analysis. The table below shows the primary strength, weakness, opportunity, threat, and trend of each of the above mentioned forces. Table 1: SWOTT analysis for Eco-travel Environmental force Strength Weakness Opportunity Threat Trend Innovation Promotes the generation of knowledge Some ideas may be far fetched Organisation is able to keep pace with change Cannot be a threat if properly harnessed Source of competitive advantage if properly implemented. Social Inclusive value system is a major strength to the firm Selectivity of cultural values can be a weakness Policies that are inclusive are a source of opportunity Social factors that are divisive are a threat to the firm Culture is ever changing which can either be a negative or positive trend Environmental Environmental friendly policies are a source of strength Negative environmental policies constitute a weakness Good environmental policies provide an opportunity for growth Bad policies can tarnish the image of the firm Environmental policies are constantly changing and these changes have to be considered Economic Sound economic policies represent a strength in the firm Poor economic policies are a major weakness Good economic conditions in the economy provide an opportunity Bad economy threatens the viability of the firm Changing trends in the economy can affect the organisation in a positive or negative way Technology Employees who can use new technology are a source of strength Lack of technological expertise is detrimental to the organisation Harnessing new communication technology is an opportunity for growth Failure to adopt technology is a threat Changes in technology can improve the organisation if properly harnessed Strategic capabilities A capable workforce is a strength to the organisation A strategically weak workforce is a weakness Capable strategies are a source of opportunity Failure to be strategic can be a threat Trends in strategies to be taken into consideration Legal Policies within legal limits provide strength to the firm Bad policies which are illegal pose a weakness to the firm Flexible legal requirements provide an opportunity for growth organisation Restrictive laws can pose a threat to the org Positive trends in the legal framework can positively contribute to the firm 2.1 A critique of the organisation’s preparedness to adapt to change Since the organisation is founded on the principles that are oriented towards the people and the environment, it has clearly outlined policies that are flexible and these can enable the organisation to adapt to changes that may take place in the environment. According to Schultz (2007), changes in the environment can be caused by both external as well as internal factors as the one outlined in the table above. In as far as the internal factors that comprise of human resources are concerned, it can be noted that the organisation has programmes in place that are meant to develop the members of staff to be better positioned to keep place with the changes that can take place in the environment. Learning and development are two basic tenets that shape the operations of the organisation such that it can be observed that it can adapt to any change with relative ease. The company also has sound economic and environmental policies that are shaped by the legal frame work which guides its operations. As such, it is better positioned to keep pace with any changes which can take place in the environment since its operations are shaped by the external forces that are likely to undergo some changes on a temporary or permanent basis. 2.2 Opportunities faced by the company There are numerous opportunities for the company if it properly implements its policies. Since the company’s business is service oriented, its major opportunity is that it is capable of controlling the situation to tailor its offerings to meet the needs and interests of the targeted consumers. Once it has managed to appeal to the interests of the consumers, it becomes easy to establish long term relationships with them which is very important for an organisation with regards to its viability in the long run. Another opportunity for the organisation lies in its strategy to empower the stakeholders to be part of its operations. This will enable them to identify with the organisation which is very important in building a long term relationship with the targeted customers. Long term relationships with the stakeholders are very important since they provide an opportunity for growth and development of the organisation. Another opportunity that is likely to be experienced by the organisation pertains to the adoption of the use of new information and communication such as the internet. This allows it to reach a wide range of people and it is in a position to appeal to their interests since they can interact directly. The use of the internet can allow the organisation to reach many people from a diverse background and chances of appealing to their interests are also high since the message will be designed to have a positive impact on the targeted consumers. During the contemporary period, it can be noted that new information and communication technology has dramatically charged the business landscape hence it is likely to bring a lot of opportunities to Eco-travel if properly harnessed in its operations. 2.3 Hypothesis surrounding each issue Struig & Stead (2001), posit to the effect that a hypothesis depicts the relationship between two or more variables. However, in some instances there may be no research between variables and this can be proved through conducting actual research. As such, this section of the paper seeks to generate a hypothesis surrounding each issue as well as research questions to use for conducting the actual analysis. Innovation: Hypothesis- Innovation in an organisation can lead to improved performance of the whole organisation. Research question- To what extent does innovation in an organisation lead to improved performance? The circumstance surrounding this issue is primarily concerned with showing a link between innovation and performance of the organisation. Therefore, it is recommended that measures to influence the employees to be innovative should be put in place. Social issues: Hypothesis- Social issues can affect the viability of the organisation. Research question- How do social issues impact on the viability of the organisation? It is generally believed that social issues shape the culture of the organisation as well as the behaviour of the employees. It is therefore recommended that stakeholder oriented policies should be formulated. Environmental: Hypothesis-Environmental factors shape the operations of the organisation. Research question: How do environmental forces impact on the way an organisation operates? Emphasis is on environmental issues during the contemporary period hence environmental friendly policies ought to be implemented in order to improve the fortunes of the organisation. Economic: Hypothesis: Economic factors are closely related to organisational performance. Research question- What is the link between economic factors and the organisation’s performance? Given that the economy has a bearing on the performance of the organisation, it is recommended that all plans should be compatible with economic factors obtaining in the environment. Technology: Hypothesis- There is a correlation between organisational efficiency and information communication technology for instance. Research question- How does information technology lead to improved efficiency of the organisation? The circumstances surrounding the aspect of technology posit to the effect that improved communication strategy can lead to improved overall performance of the organisation as a whole. It is therefore recommended that the organisation should harness the use of new information technology such as the internet in its operations. Strategic capabilities: Hypothesis- The organisation’s strategic capabilities affect the performance of the employees. Research question- How do strategic capabilities affect employee performance? It is recommended that employees should be given the autonomy to expose their strategic capabilities in order to improve their performance. Legal/regulatory: Hypothesis- There is a close relationship between the legal framework in which the organisation is operating and its policy formulation exercise. Research question: How does the legal framework impact on the organisation’s policy formulation exercise. The operations of each organisation are shape by the legal framework in which it would be operating hence there is need for the organisation to abide by the rules and regulations provided by the responsible authorities. It can be noted that there are various internal as well as external factors that affect the operations of the organisation as analysed above. It is therefore important for the organisation to take into consideration these factors in order to improve its overall performance. 3.0 Part 3: Balanced scorecard According to Robbins (1997), a balance scorecard (BSC) is a methodology used to describe the strategy that is employed by the organisation as well as measure its performance according to four perspectives which include the following: financial, customers, internal business processes and learning and growth of the people. As such, this section of the paper seeks to develop strategic objectives for Eco-travel in the format of a BSC based on the four perspectives identified above. These objectives are mainly derived from the mission, vision, values as well as the SWOTT analysis carried above as going to the illustrated below. At least three objectives will be highlighted for each area of the balanced scorecard and risks as well as mitigation plans will be analysed for each objective. Ethical implications as well as metric target will be discussed for each objective in this section. 3.1 Financial perspective- the objectives for this perspective are discussed below in order of their priority. I. To increase market share- as stated in the mission and vision of Eco-travel, increasing market share is the basic objective of the organisation which is still in its infancy. There are great opportunities since the services offered are unique. However, the likely risk that can be encountered is that is that it may be difficult to appeal to the customers. However, local people can be used to counter this risk. In pursuit of its organisational goals, the organisation will be guided by its values such as upholding ethical principles. It is anticipated that a steady growth of about two percent per annum should be achieved if all measures mentioned above are taken into consideration. II. To gain a competitive position- this objective is based on the need for Eco-travel to establish itself as a force to reckon in the tourism industry. Through its differentiation strategy, it can be noted that there are plenty of opportunities in the industry. However, the major risk is that of competition from established organisations. In order to counter this, innovation should be continually used as a strategic tool to keep on improving the service offered. Ethically, all people should be respected as stipulated in the value system of the organisation. This should be a continuous process which cannot be numerically quantified. III. To increase revenue generated- the essence of this particular business is to gain some profits through generating revenue from the services offered. There are plenty of opportunities given that this is a fresh idea in this sector of business which is likely to be positively welcomed by the stakeholders. The risk that may be encountered is failure to attract a significant number of customers. Research has to be taken on a continual basis in order to counter this. The values ought to be upheld where customers are treated as kings and ethical considerations have to be taken. Revenue is supposed to grow by at least 10 % on a quarterly basis. 3.2 Customer value perspective. Three objectives under this perspective are discussed below. I. Satisfaction of the customers-The mission and vision of Eco-travel clearly state that the main objective of the organisation is to become a market leader through responding to customer needs. The main opportunity is that the organisation can act as a platform where knowledge can be shared among the stakeholders. The likely risk is that customers can shun the service if they lack knowledge about it. However, this can be countered through interacting with the customers which ought to be a continual process. Ethical values have to be adhered to in order for the organisation to achieve these objectives. II. Creation of loyalty among the customers- This is another objective broadly stated in the mission. The major opportunity is that sustainability of the organisation is guaranteed when it has loyal customers. However, some of the customers may decide to jump ship which is a risk likely to be encountered. Loyalty programmes can effectively deal with this likely problem and the exercise has to be an ongoing process. III. Establish a lasting relationship with the customers- This is the other objective which is also reflected in the mission statement of the organisation. The opportunity is that chances for business to remain viable in the long run are very high. However, some people may lack knowledge about the service offered which is likely to be a risk. In order to mitigate it, it would be imperative to educate people about the services offered. Ethical standards have to be upheld. Customer relationship can be measured through the number of customers recorded on a daily basis. 3.3 Process or Internal Operations Perspective I. Performance improvement- Improvement of performance of the organisation as a whole is one of the main objectives. Since the service offered is unique, this can be treated as a major opportunity. However, performance can be negatively impacted if there is lack of coordination among the stakeholders involved. This can be improved if concerted efforts to streamline their operations are put in place. However, ethical issues ought to be upheld. II. Productivity- Whilst the services offered are not tangible, the organisation is expected to be productive as stipulated in the mission. However, the organisation can be counterproductive if there is no collaboration among the stakeholders involved. This can be improved through promoting learning in the organisation and the metric to measure productivity can be done through observation of signs of growth and development of the organisation. III. Operational issues- The other objective is to ensure that the operations of the organisation meet the expected standards of the organisation. This can be achieved through encouraging people to pull their efforts towards the same direction. There is need to uphold ethical considerations of the organisation in order to achieve these objectives. 3.4 Learning and growth I. Improved employee satisfaction- This one primary objective of the organisation. There is an opportunity for growth if the employees are satisfied. However, this can be negatively impacted if they are not motivated. Thus, there is need to motivate the employees and their values should be given priority. An improvement in this sector can be measured through retention of the employees. This can be achieved if ethical standards are upheld where bad practices are shunned. II. Accommodative organisational culture- The other objective is concerned with shaping the culture of the organisation which in turn shapes the behaviour of the employees. Employees are likely to create a positive sense of belonging if they share the same values which is an opportunity for growth. However, the likely risk is organisational values may not be compatible with employee values. In order to counter this, the organisation has to be accommodative to a diverse value system of people from different backgrounds. Increased harmony in the organisation can be used to measure this perspective. III. Growth through innovation- this is one of the objectives that can be derived using the balanced scorecard. New knowledge is constantly generated which is an opportunity for growth since the organisation is better positioned to keep pace with the developments taking place in the environment. This can be impacted when the employees are not empowered to be innovative in their operations. This can be improved through implementing a strategy that is meant to promote learning in an organisation. Values of the people ought to be upheld in order to achieve positive results. 4.0 Final strategic plan Basically, the mission of Eco-travel is “To provide a platform where all our customers can gain knowledge about their local heritage though promoting community tourism in a bid to bridge the knowledge gap existing among targeted clients.” On the other hand, the vision of the organisation is to become a leading community tour operator through responding to customer needs and changes that may take place in the market at competitive rates that are unmatched. As shown in the SWOTT analysis above, a holistic approach has to be taken in order to convert the strengths and opportunities in the environment for the benefit of the organisation. The balanced scorecard showed that financial, customer values, internal operations as well as learning and growth perspectives are major forces of success if properly implemented. The following is the communication plan for Eco-travel. 4.1 Communication plan In as far as development of policy framework is concerned, communication is the most viable tool that has to be implemented in this strategic plan. The goals and objectives of the organisation have to be identified and communicated to all stakeholders. Structure to promote effective communication should be supported at all levels given that a lot of information is necessary for this initiative to be a success. Stakeholders such as employees as well as customers ought to know the goals and objectives of the business concept through open communication channels since they are the major drivers who can determine the success or failure of the initiative. 4.2 Strategies and tactics The following strategies can be implemented in order to ensure that the goals and objectives of the business initiative are achieved. Knowledge management Knowledge management is a virtue since it can play a major role in influencing the success of the initiative. This involves activities such as sharing of information, involvement in the decision making process, creating shared values and vision, empowering the stakeholders as well as taking into consideration the needs of the customers (Lamperes, 2004). Mutual understanding among all the stakeholders involved is likely to be promoted. Performance appraisals Another tactic is to implement performance appraisal strategy in the operation of the organisation. Performance appraisal is described as “the systematic evaluation of the individual with respect to his performance on the job and his potential for development” (Beach, 2004, p. 290). Development needs of the employees have to be identified in order to empower the workers. These strategies can be monitored through closely watching the performance patterns of the employees in their operations. 4.3 Recommendations There is need for involvement of stakeholders in the decision making process so as to improve corporate citizenship. It is every person’s responsibility to safeguard especially the needs of the environment for the sake of the future generation. Environmental protection is one of the basic tenets of the values of the organisation. Bibliography Beach, D.S. (2004). ‘Personnel.’ The Management of People at Work. 4th ed.New York: Macmillan. Taylor, J. (10 April, 2004). Is business agility an oxymoron? Viewed from: http://www.ebizq.net/topics/compliance/features/5167.html Lamperes, B. (2004). ‘10 Strategies for Staff Empowerment.’ Principal Leadership, vol. 4, no.6, pp. 32-37. Robbins, S.P. (1993). Organisational behaviour: Concepts, controversies and applications.6th Edition. NJ: Prentice Hall. Robinson, W. (1997). Strategic Management and information system: An Integrated Approach, 2nd Edition. London. Pearson Education Limited. Rossouw, D. & Kruger S. (2003). Strategic Management. CT. New Africa Books. Schultz, S. et al (2003). Organisational behaviour. CT. Van Schaik Publishers. Struwig, F.W. & Stead, G.B. (2004). Planning, Designing and Reporting Research. Cape Town: CT. Pearson Education. Pearce, J. A. II, & Robinson, R. B. (2009). Strategic management: Formulation, implementation, and control (11th ed.). New York, NY: McGraw-Hill. Read More