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Strategic Management Analysis - Assignment Example

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Virgin Holiday is a UK based company. It is also considered as one of the market leaders that arrange travel trips to the USA along with Caribbean. From the year 1985, the company is arranging the entire holiday travels and has customized the experiences of holiday all throughout the world. Besides the two places it also offers holiday packages to other places such as Canada, Australia, South Africa, Far East, Middle-East, Indian Ocean, New Zealand, and Mauritius. The prime objective of the company is to provide customers with best holiday destination so that they can take pleasure of the place (Virgin Holidays, 2011). 1.2 Brief Introduction of Package Holiday Sector The package holiday industry in the UK is one of the largest as well as fastest emerging industries. The industry provides various holiday destinations to the customers. Besides other kinds of holiday packages, the package holiday is also arranged which provides customers with numerous destinations both internationally as well as nationally. In the package holiday industry, tour operators perform as ‘wholesalers’ as they are entitled to bargain with the travel agencies regarding the commission for selling to the customers (Rowe & Et. Al., 2002). 1.3 Reason of Choosing the Company Virgin Holidays has been chosen because it is the successful ‘transatlantic tour operator’. The company is much efficient to arrange holiday programs for the travellers as it is operating in the market since the year 1985. It also possesses excellent customer service with unique travel intelligence (Virgin Holidays, 2011). 2.0 Task A 2.1 PESTEL Analysis The PESTEL analysis will analyse the political, social, economical, technological, environmental and legal factors that have impact on the package holiday industry in the UK. Political The political insecurity has an impact upon the selection of tourist destination of a traveller. The political conflicts in various countries have restricted the package holiday destination for visitors. From the UK, trip towards Croatia and Serbia has seen improvement as the political situation has re-established, particularly in Croatia. The different political scenario in various countries may decrease the package holiday trips to the attractive destinations, which may result in low demand of the tourism packages in the UK (Philip Allan, n.d.). Economic The tourism industry has faced challenges due to the fluctuation of economy in the UK. The economy of the country is rising; as a result it will result in growth of the service industry such as tourism sector. The changes in the GDP rate and wage will have an impact on the tourism industry in the UK. In the UK the NMW (National Minimum Wage) rate is as follows: Rate (per Hour) Age ?5.93 Greater than 21 ?4.92 18 - 20 ?3.64 16 - 17 ?2.50 Apprentice under 19 ...Show more
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Summary

Strategic Management Analysis Table of Contents 1.0 Introduction 4 1.1 Brief Introduction of Virgin Holidays 4 1.2 Brief Introduction of Package Holiday Sector 5 1.3 Reason of Choosing the Company 5 2.0 Task A 6 2.1 PESTEL Analysis 6 2.2 Porter’s Five Forces 9 2.3 Critical Success Factors 12 2.4 Driving Forces 12 2.5 Product Lifecycle 13 2.6 Summary of Part A (Opportunities and Threats) 14 3.0Task B 15 3.1 Value Chain 15 3.2 Value Network 18 3.3 Competitive Advantage- Threshold v Unique Resources or Competencies 18 3.4 Financial Resources 18 3.5 Financial Competencies 20 3.6 Human Resource Competencies 21 3.7 Physical Resources Capabilities 22 3.8 Intangible Resources Capabilities 22 3.9 Su…
Strategic Management Analysis
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