Analyze the Business Health of Shearings Travel and Tourism Company

Shearings, a travel and tourism company, has gained attention worldwide for its remarkable services and memorable tour experiences. The company's business health was analyzed using the PESTLE and Porter's 5 forces model, as well as internal SWOT analysis. The results indicate that Shearings is performing well across all areas, providing friendly and warm service to patrons. To achieve short-term and long-term objectives, the organization has prepared strategies with rigorous market research and consultation with market analysts and strategists. Shearings aims to make travel comfortable by offering optimum levels of service at every stage of the journey and various travel options.

BUSINESS HEALTH CHECK

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Shearing's history with their short and long term objectives.................................................1
1.2 Investigating the external influences on the organizations....................................................2
PESTLE analysis:........................................................................................................................2
PORTERS 5 forces......................................................................................................................3
1.3 Possible options for improvement to the company using Ansoff's matrix............................4
TASK 2............................................................................................................................................5
2.1 Review of the effectiveness of the company.........................................................................5
2.2 A plan for the company's future development.......................................................................6
TASK 3............................................................................................................................................7
3.1 Evaluating the skills and efficiencies of the employees........................................................7
3.2 The improvement needed to improve the identified skills and efficiency of the
organization.................................................................................................................................8
CONCLUSION................................................................................................................................9
REFRENCES.................................................................................................................................10

INTRODUCTION
Business health check refers to the assessment of all the aspects of the business in order
to improve the profitability. The assessment is done on the quantitative and qualitative basis by
using various tools such as the SWOT, PESTLE or Ansoff's matrix. The current position is
realized by looking into the physical resources, financial resources and human resources to
identify the growth potential. Further, by analyzing the factors that hinders the growth of the
organization certain methods are adopted to remove them (Hawn, 2009). This report critically
assesses the functioning and operations of the travel and tourism company Shearing's Holidays.
This report reviews the working of the organization by assessing its current position and the
short term and long term objectives. By investigating the internal and external influences the
plan is prepared to develop the skills of management and staff. The effectiveness of the working
and functioning of the organization is checked then the report also elucidates the possible options
for the improvement (Saaty and Vargas, 2013). At last the final evaluation is done and the
measures to improve the existing abilities.
TASK 1
1.1 Shearing's history with their short and long term objectives
The UK's leading holiday tour operator is recognized for its inevitable and the premium
customer service with the experience of over the 100 years. Shearing holidays are providing the
thoughtful and personalized service to the customers traveling to 170 destinations. It provides the
best comfort and optimum privileges to the patrons (Kudo and et.al, 2004). Britain is enriched
with the number of fascinating places; Shearing's Holidays facilitate the travelers to explore
these places by giving them varied choices of the Air Holidays, river cruises, escorted tours,
seasonal holidays, international festival events like Christmas New year celebrations, bay
inclusive breaks, Battlefield tours and many more. Along with these the group is known for
organizing the best themed and weekend breaks holidays in UK. Best known for its coach based
tours Shearing was established in 1921 (Baral, 2005). Mergers and acquisitions has enhanced the
customer service and made it best in the business. With unrivaled customer loyalty and enviable
reputation for quality and reliability has made it won many recognizable awards over the Globe.
It is crowned as the Best coach operator, rail, road and sea operator in Global travel awards
consecutively for four years. Shearings Holidays has the vision to give their travelers the
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experience of best holidays with memories (Saunders and et.al, 2011). For the purpose the group
has set certain short term and long term objectives to achieve the goals.
Long Term Objectives
 To become the world's leading premium Holidays and tour operator in all the modes air,
road and water.
 To give the travelers the experience of exciting holidays with the mix of activities,
exploring history and culture, wildlife and sightseeing with the range of dedicated tours
that suits the patrons best (Cromer and et.al, 2004).
 To become the destination specialists: By giving the experience of epic journey to the
patrons to discover the scenic beauty of Britain with the wide range itineraries.
 To enhance the stream of travelers by establishing the prominent position at the
prestigious destinations globally. To be recognized as the premium service provider in the business of Holidays and tour
operators across the Globe.
Short term objective
 Appoint the highly trained and experienced tour leaders to provide the memorable
experience to the patrons (Saaty and Vargas, 2013).
 To improve the journey comfort at every step by providing the warm service, convenient
location and memorable enjoyment.
 In order to showcase the services provided by the group, improve the promotional content
on the virtual platform.
 Providing the better financial services to the travelers in the form of the travel ticketing,
tour insurances, currency facilities and other related (Shearing Holidays, 2015).
 To establish the prominent position in the hub of tourism and traveler London within the
span of 6 months.
 To increase the tie-ups and linkages with the suppliers around the globe to offer the better
services. As this relationship constructs improve the technology and the service standards
with the inculcation of innovation.
 To bring the increment of 2 % in the market share in the travel and tourism sector in time
duration of 1 year.
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1.2 Investigating the external influences on the organizations.
In order to investigate the external influences on the Shearings functioning, two tools are
used PESTLE and Porters 5 Forces Model.
PESTLE analysis:
Political Environment: The political environment has the large impact on the functioning
of the holidays and Tour Company (Daugbjerg and Swinbank, 2011). The organization
Shearings is operating in Britain. Realizing the share of travel and tourism in the GDP ratio, The
government Of Britain has liberalized the rules and regulations in the related field and has given
the relaxation in taxes and tariffs. Further, by promoting the offerings of the nation globally it
attracts the investment and FDI which has helped the company in improving its operational
management in all the services. The legislative heads by encouraging the hosting of international
events in the country such as the Olympics, Carnivals, Festive celebrations attracts tourism in the
considerable way.
Economic Environment: Economic attributes of the country also impacts the working of
the group. For instance the countrymen with the high disposable incomes have more preferences
and choices to go for tours (Kassirer, 2004). The other factors such as the inflation rate and stock
exchange inflation also affects the investments and fares charges the group offers. The export
taxes and the import duties imposed by the Government has the negative impact on the
profitability of the organization. Further, the economic trend is one of the key deciding factor in
the revenue generation of Shearings group.
Social environment: UK is the country with the people from the diversity of background.
It is the home of elites with high per-capita income. Considering the economic data they have the
high preferences for the tours. Britain is the home of trade and business relational constructs.
That attracts the tours of the business elites from the cross border region. The preferences of the
people with the social background are very different and varied. Hence, the group Shearings
holidays has come up with the range of Holiday packages and travel options depending upon the
choices.
Technological Environment: The country possesses the advanced technology in the
communication, transport and the infrastructural sector (Hwang and Christensen, 2008). Theses
advancement accrues the large benefits to the group by availing them with the lucrative profits.
The high tech communication let the organization to maintain the better connectivity all over the
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world at all the destinations. The Country in which the organization Shearings is operating is
technologically sound and developed. This has benefited the organization in their offering in all
the travel options such as the advanced transport system has made the flights, river cruises and
the road journey feasible with the increase in intensity of trips.
Legal Environment: Shearing group is providing the tour facilities in all the travel options
by coach, rail, air and cruise (Imai and et.al, 2007). The legislative bodies and government
impose some rules and regulations in regard with the services the group provide and the
company has to abide those laws. Shearings abides the laws related to the employment issues
such as their safety, health, training, apprenticeships, equality on certain grounds; environmental
issue such as the emission of the carbon, green house gases and nitrogen in the atmosphere, the
waste reduction and on the services the group offer.
Environmental factors: The most crucial factor which imparts the great influence on the
profitability of the holidays and tour operators. The key attentions of the patrons are the climatic
and environmental issues in the country operating. The favorable climatic and environmental
conditions attract visitors while the favorable factors deviates the stream of travelers away from
the country (Fabry and et.al, 2006). The country possess the favorable climate that attracts the
travelers from all the parts of the country. The scenic beauty and the pleasant climate is the USP
of the organization Shearings holidays. Further, the country is endowed with the rich heritage of
nature and archaeology. The people come here to explore that.
PORTERS 5 forces
The model assesses the Shearings external influences by investigating the 5 factors. Threat of new entrants: The threat of new entrants is very low as the business demands
high investment and the business risk is associated with it is very high. To operate the
travel and tourism business the organization need to know the market trend, customer's
preferences and accordingly organize the tours for the travelers. Failing in delivering the
services of optimum level will shift the customer to use of services given by new
entrants. Threat of substitute products or services: There is moderate degree of threat of substitute
products and services (Iseki and et.al, 2012). The closely competitive tour operators are
organizing with considerably equal standard of services at the competitive prices. The
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organizations operating in the similar industry offer the services with effectual promotion
which threatens the customer hold. Bargaining power of customers: Shearings Holidays are providing the tour experiences
in the wide range of packages (Daugbjerg and Swinbank, 2011). It consists of holiday
tour from the high cost packages for elites to the reasonable economical tours. Due to the
availability of varied range of choices in the holiday packages reduce the tendency of
customers to bargain. Bargaining power of suppliers: The bargaining power of suppliers and intermediaries
associated with Shearings Holidays is moderate(Saaty and Vargas, 2013). The tour
operator has to manage every aspect of the trip such as accommodation, meals,
adventure, transport and financial services. Among these the suppliers of accommodation
and transport has high bargaining power whereas low in financial services.
 Intensity of competitive rivalry: The Intensity of competitive rivalry is very high as the
group Shearings experience fierce competition from the other holiday providers
(Productivity Commission, 2010). But the Shearings has an edge in the market place as it
provides the range of travel options by coach rail, air and cruise.
To analyze the results and assess the internal influence SWOT analysis is done.
Strengths: The organization Shearings has the first class project management services
and considerably good operational efficiencies. The group is recognised globally for the
incredibly good and warm services it offers. In all the holiday packages, Shearing take care of
the each and every service from accommodation, meals, entertainment and fun.
Weakness: Shearings has low hold on the promotion on the virtual platform through
digital marketing. Due to the conventional methods of marketing used by the marketers the
Shearings group is unable to build the connections with the larger stream of customers.
Threats: In-spite of having significantly better services and products the threat of
replacement of the customer's choice with the other operator is pretty good (Daugbjerg and
Swinbank, 2011). The new entrants with the better services, products and packages can
overshadow the existence of the organization, The shearings.
Opportunities: With the better promotional content and platform the group can quickly
capitalize on trends, events and seasons. Further, the group is offering its services in wide
horizons so it has availability of opportunities to expand.
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1.3 Possible options for improvement to the company using Ansoff's matrix
By analyzing the internal and external influences on the group it can be inferred that there
are certain areas where making the improvement the profitability can be increased. This is
explained in the form of Ansoff's matrix. There are four criteria’s to identify the possibilities:1. Market Penetration: Market penetration refers to adopting the new strategy to promote
the services in the existing market (Kudo and et.al., 2004). For the market penetration
Shearings can adopt the promotion on the online platforms to demonstrate the breadth of
the shearing offerings. There is large scope of introducing diverse services in the Holiday
packages such as starting the new themed and featured holidays such as for Kids fun,
Disney trips and the trips and tours to explore the islands around the country.2. Market Development: Shearing group is providing its services at 170 destinations
predominantly in Europe. There is the big scope of market development in other regions
such as the trans-Atlantic areas. By enhancing the destinations to the Asian prestigious
destinations Shearings groups can significantly increase it markets share in the travel and
tourism sector around the Globe (Hacker, 2008). The regions with diverse physiological
divisions opens the wide scope for the organization, Shearings holidays.3. Product Development: The group at present is endowed with the range of product and
service line for the travelers around the world. In order to increase the comfort level the
group can come up with the wider range of facilities in accommodation such as villas,
cottages, apartments and more.
4. Diversification: To make the prominent position in the market place the group can opt
the product diversification by operating in the similar type of business and industry. At
present company is offering it services in holidays and tours (Needleman and et.al, 2006).
Along with this group can start the business in travels and adventure tours as well. At
present the group has the tie ups with the financial institutes to provide the financial
services. By having the own service provide, the economies of scale will help in
generating more revenues (Hwang and Christensen, 2008).
TASK 2
2.1 Review of the effectiveness of the company
 Product and services: Shearings group offers wide array of services to make the
travel with comfort and enjoyment. The group provides the warm services,
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comfortable accommodation and the first class entertainments. Tours to explore
the spectacular sceneries and the cultural heritages in Europe are organized
(Betancourt and et.al, 2005). The group organizes the river cruises, coach
holidays, Air holidays, short breaks and themed and festive holiday trips.
 Marketing: In order to showcase the Shearings offerings the company has the tie-
ups with media organizations. To cover the wider range of travelers and visitors
the company adopts the digital medium. Promoting the offerings of the Shearings
group on virtual platform the builds the better interaction with the effectual design
(Richter, 2004).
 Sales and finances: With the family of wider range of customers and travelers,
the employees are dedicated to offer the warm services to the travelers with the
optimum level of comfort and facility. The organization has the significant market
share in the travel and tourism sector globally. The organization has the maximum
sales in the river cruises independently holding the maximum share of its total
earnings.
 Staffing and their effectiveness: The staff of the Shearing group offers the warm
services at every point of journey. There is the large family of employees spread
globally at all the destinations. There is the efficient project management team to
look after the whole tour and trips and organize it perfectly. The organization
posses the efficient and capable staff.
 Business image: The organization has the enviable reputation for the quality and
the customer's loyalty around the Globe. It has won the various awards in the
travel and tourism sectors for providing the excellent level of services and the
quality of products offerings (Hsu and et.al, 2011). The company is also known
for the authenticity of the words it offers to make the journey and trip memorable
and making it sake at all the aspects are it financially or in other means.
2.2 A plan for the company's future development
A plan is prepared to boost the efficiency of the group and promote the better hospitality
at all the destinations it is operating globally with the warm services and the best products.
Marketing and sales: The fundamental need of any group is to enhance the customer
base and increase the revenue generation of the organization. It can only be done by increasing
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the sales of the offerings and including the larger and larger number of people in the traveler’s
family. This is done by promoting the product in the right manner to reach the targeted
customers. The plan suggests that by offering the number of different discounts and deals in
packages in regular time the travelers are attracted (Farley, 2006). Collaborating with the airlines
and accommodations the services can be promoted. At the time of festive events and special
functions happening in the country, tie ups with the sponsor’s results in the fruitful manner.
Product and services: The Shearings group is offering the wide range of services with the
variety of options available to the travelers. By bringing more perfection in the services provided
the company's functioning can be enhanced. In wildlife tours and trips, the safaris and tracking
can be included (Carlisle, 2010).
Financial management system: To organize the bulk of data of such a large organization
operating in number of destinations with thousands of employees there is the requirement of the
efficient data handling, for that purpose the use of data base management system can save the
data with more ease and the better accessibility.
Roles and responsibilities of staff: Travel and tourism is the customer service centric
industry in which the credibility of the organization totally dependent on the services offered by
the employees and staff of the organization (Hawn, 2009). The staffs of the organization are
recognized for the warm and precise services it offers on the global scale. But there is the scope
of improvement in every area. The abilities and skills of the employees are enhanced by
organizing the apprenticeships, training programs and development sessions. By increasing their
engagement to the outer world by the means of seminars and conferences gives them the
exposure and helps them to upgrade their abilities in the field they are working.
Laws and regulations: In order to regulate the functioning and working of the
organization, there are certain organization who has laid the rules and regulations. To monitor
the trade issues the organizations are working in this context. The organization is required to
abide all the laws and comply with the norms (Sharing Holidays, 2015). There are rules related
to the consumer protection, checking the functioning of the trade activities, employee’s issues,
environmental conversation and safety and security of the travelers. Shearings comply all the
laws laid down in the field and work for it. For instance the cruise trips are organized by keeping
the environmental protection and green journey are organized.
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Action planning: The plan includes the strategy building to achieve the goals and
accomplish the targets. The hiring of the efficient and eligible employees having the competent
experience of working in the travel and tourism sector with the proficiency in the management.
The destinations are divided into different zones (Carlisle, 2010). Then the zonal officer is
appointed to undertake all the activities and supervise the staff to execute and implement all the
tasks in all the departments in all the zones.
TASK 3
3.1 Evaluating the skills and efficiencies of the employees
With the aim to provide the journey with the friendly and helpful service, great
entertainment, comfortable accommodation and value for money has the quality team of
employees and staff.
Managerial: The core of the functioning of the organization it the management team who
builds the strategies, plan out the process in which things are to be done, the ways in which target
are to be achieved and to supervise the subordinates to make them work efficiently and with
dedication. The management team lay out the plan to perform the tasks in different departments.
In shearings Holidays there are various departments which operate for the smooth functioning.
The major divisions are the HR department who take care all the employment related issues,
Finance department who has the accounting of all the transactions made under them (Saunders
and et.al, 2011). Along with this the department also handles the financial services the group
provides to the travelers and the other team is the project management team who organizes all
the tours and trips. This is the top management who formulate the strategies and policies to
function. The execution of all these are done by the staff in the operational team. Further this
team also assesses the performance of the organization and makes up-dation according to the
requirement.
Technical: The Indispensable section of the Shearings Holidays group. This team takes
care of the technicalities of the functioning of all the departments. The travel and tourism sector
demands the market research to assess the market trend so that the products and services are
offers and according to the customer's preferences (Sharing Holidays, 2015). By making the
judgments the decisions are made and execution is done accordingly. This department also
includes the marketing and promo9tion of the Shearings services and products offerings. The
team promote with various means and been successful in that. The organization Shearings is
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lacking in the recording and keeping data in the effective manner. The organization requires the
updated and the upgraded system of the data base management system for keeping the data in
better way and accessing them with ease (Baral, 2005).
Operational: This is lifeline of the organization. The operational team executes and
implements all the strategies planned and function accordingly to give their travelers the
optimum level of service. The operational management is working in the diverse section of the
organization such as at different travel options and the facilities available at these tours and trips.
The team which organizes the accommodation facilities builds and ties ups with the hotels and
other accommodation (Fabry, B. and et.al., 2006). The staff available at the travels and
organizing the tours works with efficiency. To maintain the competitive edge in the market,
operational skills of the employees need to be enhanced. For that purpose training programs and
development sessions are organized. Further, the employees are sent for the apprenticeships,
seminars and conferences for the exposure.
3.2 The improvement needed to improve the identified skills and efficiency of the organization.
The future development plan is outlined in order to improve the existing skills.
 By making the rigorous recruitment the suitable and efficient employees can be appointed
to provide the optimum level of services in the most friendly and helpful manner.
 By appointing the guides at the places of the heritage and historical backgrounds to help
the travelers explore places in the better and enjoyable way.
 By linking with the organization such as the ATOL, FTO, PSA and ACE, the functioning
can be improved because these organization functions to improve the standard of services
and its quality with the efforts made by it (Daugbjerg and Swinbank, 2011).
 Training programs, development sessions, seminars, conferences are organized to uplift
the skills of the employees.
 By improving the marketing and promotional strategies. The skills can be improved by
training and surfing more. The user friendly and influence website proves to be effectual
measure in promo0tion. With the use of advanced features and better user interface the
customer is able connect more with the organization on online platform.
 By making the attractive and influence websites with the user friendly interface, the
organization can connect with the travelers and the customers in the better way.
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 The organization can increase the customer base by attracting the travelers by providing
them attractive offers and deals and vouchers on their packages for their holidays and
tours (Iseki and et.al., 201).
CONCLUSION
The report throws light on the business health of the travel and tourism company
Shearings. The company has captured the attention of travelers from all over the world with the
remarkable services and memorable tour experience. In this report the business health of the
organization checked by the external analysis using the PESTLE and PORTER 5 forces model
and the internal analysis using the SWOT analysis. From that it can be inferred that the
organization is working significantly well in all the sections giving the friendly and warm service
to the patrons. In order to achieve the short term and long term objectives, the organization has
prepared the effectual strategies with rigorous market research and with the help of market
analysts and strategists. They make the journey comfortable by providing them the optimum
level of service at all the stages of journey and the different travel options. The Shearings group
has identified the possible opportunities to expand the market and product and service line and
adopted the methods to make the journey of patrons memorable.
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Online
Sharing Holidays. 2015. [Online]. Available through:<http://www.shearings.com/our-holidays>.
[Accessed on 3rd December, 2015].
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