Evaluation and Effectiveness of Strategies in UK Tourism Organizations
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This study evaluates the current strategies implemented in UK tourism organizations and their effectiveness in regaining tourism glory. It also provides recommendations for future development strategies.
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Running head: MANAGEMENT Management Name of the Student Name of the University Author’s Note
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1MANAGEMENT Table of Contents 1. Introduction:...............................................................................................................................2 2. Three chosen analytical tools for the organization in evaluating the business scenario of tourism sector:.................................................................................................................................3 3. Evaluation and Effectiveness of the organizations’ current strategies........................................8 4. Recommendations for the future development strategies of these organisations......................11 5. Conclusion:................................................................................................................................13 References:....................................................................................................................................16
2MANAGEMENT 1. Introduction: The referendum of UK membership fromEuropean Unionhas left major negative impact on the overall economic strength of UK.Mathew and Sreejesh (2017)opined thatBrexit has likely weakened the strength of UK economy and their overall business industries. Especially the tourism industries have faced major challenges in running their entire process of business due to the lack of visitors from international geographic boundaries. In this kind of situations, the business experts belonging to this tourism industry are facing innumerable challenges in maintaining their overall business sustainability. This very specific study has focused to make in- depth overview on howtourism sectorshave implemented effective strategies within their business based on which the business experts can regain their organizational glory and reputation (visitcyprus.com 2018). After the incident of Brexit the business experts have decided to implement some major business strategies and policies along with effective analytical tools with the help of which the overall business environment can be analyzed. A critical evaluation is also been conducted based on the current strategies ofUK tourism organizationsis implemented at the workplace. 2. Three chosen analytical tools for the organization in evaluating the business scenario of tourism sector: In order to evaluate the overall business scenario of tourism sector the organizational experts oftourism sectorhave chosen three major tools while analyzing the overall business scenario. The selected tools are as follows: PESTEL analysis or external environment analysis:
3MANAGEMENT PoliticalUK runs their country under the influence of a parliamentary body. Mihalic (2016) opined thatthe country is constituted with political stability with the help of which the government can run a transparent regulations and acts.After the controversy regarding the referendum of UK membership fromEuropean Union,the countryis facing immense challenges in maintaining their political stability. Tourism organizations are facing immense challenges in dealing with the customers effectively due to political chaos and rapid growth of political instability. EconomicUK is considered 5thlargest economy in the World of nominal GDP. At the time of Brixit, the British had to face a serious economic challenge,whichultimatelypreventedthebusinessindustriesin running their entire process of business effectively(Cheer and Lew 2017). Tourism organizations have faced economic challenges at the time of Brexit due to the lack of international visitors in the country. In addition, the employability opportunity in the tourism industry is getting reduced day by day due to the economic constraints raised at the time of 2016. Socio-culturalUKis constituted with the people of various cultural as well as religious attitudes and backgrounds. Especially, in tourism industry there are innumerable number of people who belong to various religious backgrounds and attitudes. However, this very specific study has focused on how socio-cultural backgrounds leave a major impact ontourismindustry(CucculelliandGoffi2016).Forexample, Cyprus Tourismand the business experts are flexible enough in dealing with the people ofvarious geographical backgrounds and
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4MANAGEMENT attitudes. TechnologicalUK is out an out a technologically developed country with the help of whichserviceusersoftourismorgaizationscaneasilyreceive necessary responses from thebusiness experts by sitting at their own workplace. In addition, the service providers are very much advanced in technology with the help of which they can give an immediate feedback to the customers and grab their attention(Weeden and Boluk 2014). With the emergence of new technology,UK tourism organizationscaneasilycommunicatewiththepeoplefrom international market as well. EnvironmentalUKtourismbusinesshasmadearemarkableimprovementin reducing environmental issues. Most of the tourism destinations are maintaining ecological balance by keeping the environment free from pollution(GrimstadandBurgess2014).Therefore,thebusiness expertsofUKtourismorganizationswouldnothavetoface challenges in convincing the customerstowardsvisiting the places of UK. LegalWhile running the entire process of business Cyprus Tourism would have to follow environmental laws and regulations(Dibra 2015). In order to give equal priority and response to all the customers, the organization would have to implement anti-discrimination act, data protection act, right to information act, gender equality act and so on. Porter’s Five Forces or Industry analysis:
5MANAGEMENT Porter’s Five Forcesgenerally provides an in-depth overview about the overall market scenario of tourism industry. By making an effective comparison with other existing companies, UK tourism organizationslikeAssociation of British Travel Agentswould be able to evaluate their market threats and competitor’s threats. Based on the overall industry analysis the business experts ofUK tourism organizationscan make suitable strategies and policies. Buyers’ power: The buyer’s power in UK tourism industry is very high due to the large number of tourism operators existing at UK. Therefore, the buyers get many opportunities in bargaining in the market. In this kind of situation,UK tourism organizationshave to face immense challenges in convincing the customers for using their products and services. Suppliers’ power: Supplier’s power in the market of UK tourism sector is low due to the large number of tourism sector existing at the places of UK. People from various geographical backgrounds and attitudes tend to visit the places of UK(Sloan, Legrand and Simons-Kaufmann 2014). The suppliers belonging to high competitive market do not get immense opportunities in bargaining with the purchasers. Threat from the substitute: In today’s competitive business industry banquet and conference sector can be considered as one of the most effective substitutable threats(Aragon-Correa et al. 2015). Most of the business experts belonging to UK tend to prefer in conducting their business meeting at a
6MANAGEMENT professional banquet or conference hall rather than preferring any tourist destination. As a result, UK tourism organizationshave to face challenges in grabbing the attention of customers. Competitors’ market threats: Amidst most of the recognizable competitors ofCyprus Tourismbelonging to the soil of UK the name ofAssociation of British Travel Agents, Ampersand Travel, Divequest and Little Voyage are the most prominent.They are the primary competitors due to whichCyprus Tourism has to face immense market threats from the competitors. Competitors’ rivalry: Competitors’ strong business strategy is one of the most significant reasons due to which Cyprus Tourism is facing their challenges in running the entire business successfully. Along with effective strategies and policies, the business experts ofAssociation of British Travel Agentsare very much professional towards the customers, which draw the attention of international customers very effectively(Espiner, Orchiston and Higham 2017). In this kind of situation, Cyprus Tourismhas to implement stronger business policies based on which the business experts can easily overcome necessary market threats. SWOT analysis: Strengths The internal organizational culture of UKtourismorganizationsisvery strongwiththehelpofwhichthe employees tend to provide their best services. Weakness One of the most significant weaknesses ofUK tourism organizationsis lack of communicationskillamongthe employees.Theemployeesarevery much formal and professional. People belongingtoothergeographic
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7MANAGEMENT The business organization is constituted with sufficient number of workforces. With the help of sufficient number of workforces,thebusinessexpertscan easily maintain an organizational need and demands. backgrounds have to face challenges in interacting with the service providers. Thepromotionalmethodofthe organization is not very effective so that it can drag the attention of global customers. The business experts ofUK tourism organizationsneed to invest largeamountofmoneybehind promoting the organization. Opportunities The business experts ofUK tourism organizationshave the opportunities in expandingtheirentireprocessof businessinvariousmultinational countriesandgaininginternational image and reputation. Threats Competitor’sstrongmarketingstrategies are one of the most significant threats that the business experts have to face. SWOT Analysis: After evaluating the overall strengths and weaknesses ofUK tourism organizationsit can be analyzed that, the business experts ofUK tourism organizationsneed to invest large amount of money behind promoting the organization.The employees are very much formal and professional. People belonging to other geographic backgrounds have to face challenges in interacting with the service providers(Font, Garay and Jones 2016). For instance, with the help of sufficient number of workforces, the business experts ofAssociation of British Travel Agents can easily maintain an organizational need and demands. It has also been observed that the
8MANAGEMENT internal organizational culture ofUK tourism organizationsis very strong with the help of which the employees tend to provide their best services. In addition, the business experts ofUK tourism organizationshave the opportunities in expanding their entire process of business in various multinational countries and gaining international image and reputation. Competitor’s strong marketing strategies is one of the most significant threats that the business experts have to face. The promotional method of the organization is not very effective so that it can drag the attention of global customers(Moyle et al. 2014). One of the most significant weaknesses ofUK tourism organizationslikeCyprus Tourismis lack of communication skill among the employees. Therefore, the business experts need to provide effective training and development session to the employees so that they can enhance their communication skill as well as professional competency. 3. Evaluation and Effectiveness of the organizations’ current strategies Before evaluating the current strategies implemented onUK tourism organizations,the study has critically evaluated the necessary strategies that the organization has implemented for regaining their tourism glory and recognition in the market of UK. Cost leadership strategies: With the help of an effective cost leadership strategy the business experts ofUK tourism organizationshave reduced the cost of products and services rather than focusing on designing new product features. In case ofUK tourism organizations, such as Ampersand Travel,the business experts have designed the entire tour plan in limited time, but they have reduced the cost of package(Camilleri 2014). As a result, customers having average income status can also use the services equally. In addition, the business experts have not showed their interest in
9MANAGEMENT developing theirofficialwebsitesin every year. Therefore,in those sphere cost can be immensely reduced. Marketing and promotional strategies: It is undeniable thatUK tourism organizationsbears a sound expense behind their marketing and promotional activities. Both traditional media as well as social media is used in order to promote the products and services ofUK tourism organizations.The promotional budget made byUK tourism organizationsis given below: Promotion ToolsAmount (in €) Digital Media Marketing Tools Facebook€4,000 Twitter€5,000 Youtube€7,500 Total Social Media Marketing expenses€16,500 Other Online Marketing Media E-mail Marketing€25,000 Online Display advertisements€10,000 Other Online promotional Campaigns€29,000 Total Budget for Online Media€64,000 Traditional Marketing Media Newspapers€10,000 Magazines€30,000 Total Print Media€40,000
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10MANAGEMENT TV Channels€75,000 Billboards€30,000 Total€105,000 Total Required Budget for Promotion€225,500 Table: Promotional budget ofCyprus Tourism (Source: As Created by the Author) Amidst traditional media and social media promotion, the business experts ofUK tourism organizationshave chosen social media primarily with the help of which the business experts can grab the attention of international customers(Budeanu et al. 2016). At the same time, direct marketing strategies are also very much effective that can grab the attention of local customers prominently. In direct marketing promotion, the marketing executives can get an immediate feedback from the customers, which become very much effective for the business experts in reforming their strategies and policies(Xu and Sofield 2016). In this kind of situation, both direct promotional and social media promotion equally play one of the most significant roles. Implementing training and development for service provider: The business experts ofUK tourism organizationsneed to provide an effective training and development session so that employee can learn professionalism and communication. After receiving training session, employees have gained multilingual capabilities(Edgell 2016). Multilingual capabilities are very much effective in communicating with the people belonging to various cultural backgrounds and attitudes(Chin, Songan and Nair 2014). In addition, proper training and development session is also very helpful in enhancing the professional skills and
11MANAGEMENT competency of the employees. In this kind of situation, international customers having language barrier or psychological barriers do not have to face challenges in communicating with the people. This very specific study has focused to make on how implementing training and development for service provider helps the organization in grabbing the attention of global customers(Font, Garay and Jones 2016). 4. Recommendations for the future development strategies of these organisations After evaluating the current implemented strategies within the business operation ofUK tourism organizations,it is however observed that the business experts have faced several challenges in drawing the attention of global customers towards tourist destinations. The issues that are highlighted from the current implemented strategies are as follows: Issues: The business experts have ignored in rendering new product designs with the help of which they cannot increase the number of target customers. Recommendations: Along with reducing the price level of the products and services, the business experts would have to focus on designing their products and services as well. Effective product design and service method is very helpful in attracting the attention of new customers(Chen 2015). In addition, the business experts need to develop their websites in new format so that customers from other geographical backgrounds and attitudes show their interest in using their services. Issue:
12MANAGEMENT The promotional budget set by the business experts is very low for grabbing the attention of international customers. In addition, the marketing executives do not put effective efforts in effective promotional campaign Recommendation: The business experts ofUK tourism organizationswould have to enhance their budget formarketingandpromotionalactivities.Withthehelpofaneffectivemarketingand promotional activities,the customers belonging to other countries can get an overview about the company’s business strategies and policies.In addition, the promotional content prepared by the marketing executives ofUK tourism organizationswould have to be strong(Pulido-Fernández et al. 2015). The business experts need to focus on illustration and colourful presentation rather than focusing on elaborated content(Badulescu et al. 2014). As a result, people belonging to differentlanguagebackgroundsandattitudescaneasilyunderstandtheactualproduct components and their service methods. In this kind of situation, both the business experts and the employees can easily reach the doorstep of customers. Issues: The employees associated with the workplace do not have multilingual competency based on which they can deal with the people of various geographical backgrounds and attitudes. Due to the lack of multilingual competency, the customers have to face immense challenges in interacting with the service providers and informing their needs and demands. Recommendations:
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13MANAGEMENT In order to gain multilingual competency the employees can receive an effective training and career development session. Proper training and development session is also very helpful in enhancing the professional skills and competency of the employees. In this kind of situation, international customers having language barrier or psychological barriers do not have to face challenges in communicating with the people(Moscardo and Murphy 2014). This very specific study has focused to make on how implementing training and development for service provider helps the organization in grabbing the attention of global customers.However, this very specific study has evaluated that employeesbelonging to UK tourism sector need to grab more professionalism for dealing with global customers(Prebežac, Schott and Sheldon 2016). As a result, both the service providers as well as the service users can get equal benefits and facilities, which ultimately will reflect on the overall sustainability of UK tourism business industry. 5. Conclusion: After evaluating the entire study it can be thus concluded thatUK tourism organizations have implemented effective strategies within their business based on which the business experts can regain their organizational glory and reputation. A critical evaluation is also been conducted based on the current strategies of Cyprus implemented at the workplace. After the controversy regarding the referendum of UK membership from European Union, the country is facing immense challenges in maintaining their political stability. Especially, in tourism industry there are innumerable number of people who belong to various religious backgrounds and attitudes. However, this very specific study has focused on how socio-cultural backgrounds leave a major impact on tourism industry. In addition, the service providers are very much advanced in technology with the help of which they can give an immediate feedback to the customers and grab their attention. In order to give equal priority and response to all the customers, the
14MANAGEMENT organization would have to implement anti-discrimination act, data protection act, right to information act, gender equality act and so on. Moreover, the buyers get many opportunities in bargaining in the market. In this kind of situation,UK tourism organizationshave to face immensechallengesin convincing the customers for using their products and services. Most of the business experts belonging to UK tend to prefer in conducting their business meeting at a professional banquet or conference hall rather than preferringany tourist destination.UK tourism organizationsare facingtheir challenges in running the entire business successfully. Along with effective strategies and policies, the business experts of Association of British Travel Agents are very much professional towards the customers, which draw the attention of international customers very effectively. The promotional method of the organization is not very effective so that it can drag the attention of global customers. One of the most significant weaknesses ofUK tourism organizationsis lack of communication skill among the employees. In case ofUK tourism organizations, the business experts have designed the entire tour plan in limited time, but they have reduced the cost of package. As a result, customers having average income status can also use the services equally. At the same time, direct marketing strategies are also very much effective that can grab the attention of local customers prominently. In direct marketing promotion, the marketing executives can get an immediate feedback from the customers, which become very much effective for the business experts in reforming their strategies and policies. Effective product design and service method is very helpful in attracting the attention of new customers. With the help of an effective marketing and promotional activities, the customers belonging to other countries can get an overview about the company’s business strategies and policies. Proper training and development session is also very helpful in enhancing the professional skills and
15MANAGEMENT competency of the employees. In this kind of situation, international customers having language barrier or psychological barriers do not have to face challenges in communicating with the people.
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16MANAGEMENT References: Aragon-Correa, J.A., Martin-Tapia, I. and de la Torre-Ruiz, J., 2015. Sustainability issues and hospitality and tourism firms’ strategies: Analytical review and future directions.International Journal of Contemporary Hospitality Management,27(3), pp.498-522. Badulescu, A., Badulescu, D., Bac, D. and Sipos-Gug, S., 2014. Attitudes and intentions of business master students towards sustainable tourism and entrepreneurship.Amfiteatru Economic Journal,16(Special No. 8), pp.1110-1124. Budeanu, A., Miller, G., Moscardo, G. and Ooi, C.S., 2016. Sustainable tourism, progress, challenges and opportunities: an introduction. Camilleri,M.,2014.AdvancingthesustainabletourismagendathroughstrategicCSR perspectives.Tourism Planning & Development,11(1), pp.42-56. Cheer, J.M. and Lew, A.A. eds., 2017.Tourism, resilience and sustainability: Adapting to social, political and economic change. Routledge. Chen, J.S., 2015. Tourism stakeholders attitudes toward sustainable development: A case in the Arctic.Journal of Retailing and Consumer Services,22, pp.225-230. Chin, C.H., Lo, M.C., Songan, P. and Nair, V., 2014. Rural tourism destination competitiveness: astudyonAnnahRaisLonghouseHomestay,Sarawak.Procedia-SocialandBehavioral Sciences,144, pp.35-44.
17MANAGEMENT Cucculelli,M.andGoffi,G.,2016.Doessustainabilityenhancetourismdestination competitiveness?EvidencefromItalianDestinationsofExcellence.JournalofCleaner Production,111, pp.370-382. Dibra, M., 2015. Rogers theory on diffusion of innovation-the most appropriate theoretical modelinthestudyoffactorsinfluencingtheintegrationofsustainabilityintourism businesses.Procedia-Social and Behavioral Sciences,195, pp.1453-1462. Edgell Sr, D.L., 2016.Managing sustainable tourism: A legacy for the future. Routledge. Espiner, S., Orchiston, C. and Higham, J., 2017. Resilience and sustainability: A complementary relationship? Towards a practical conceptual model for the sustainability–resilience nexus in tourism.Journal of Sustainable Tourism,25(10), pp.1385-1400. Font,X.,Garay,L.andJones,S.,2016.Asocialcognitivetheoryofsustainability empathy.Annals of Tourism Research,58, pp.65-80. Font, X., Garay, L. and Jones, S., 2016. Sustainability motivations and practices in small tourism enterprises in European protected areas.Journal of Cleaner production,137, pp.1439-1448. Grimstad, S. and Burgess, J., 2014. Environmental sustainability and competitive advantage in a wine tourism micro-cluster.Management Research Review,37(6), pp.553-573. Mathew, P.V. and Sreejesh, S., 2017. Impact of responsible tourism on destination sustainability and quality of life of community in tourism destinations.Journal of Hospitality and Tourism Management,31, pp.83-89. Mihalic,T.,2016.Sustainable-responsibletourismdiscourse–Towards ‘responsustable’tourism.Journal of Cleaner Production,111, pp.461-470.
18MANAGEMENT Moscardo, G. and Murphy, L., 2014. There is no such thing as sustainable tourism: Re- conceptualizing tourism as a tool for sustainability.Sustainability,6(5), pp.2538-2561. Moyle, B.D., McLennan, C.L.J., Ruhanen, L. and Weiler, B., 2014. Tracking the concept of sustainability in Australian tourism policy and planning documents.Journal of Sustainable Tourism,22(7), pp.1037-1051. Prebežac, D., Schott, C. and Sheldon, P. eds., 2016.The tourism education futures initiative: Activating change in tourism education. Routledge. Pulido-Fernández, J.I., Andrades-Caldito, L. and Sánchez-Rivero, M., 2015. Is sustainable tourism an obstacle to the economic performance of the tourism industry? Evidence from an international empirical study.Journal of Sustainable Tourism,23(1), pp.47-64. Sloan, P., Legrand, W. and Simons-Kaufmann, C., 2014. A survey of social entrepreneurial community-based hospitality and tourism initiatives in developing economies: a new business approach for industry.Worldwide Hospitality and Tourism Themes,6(1), pp.51-61. visitcyprus.com, 2018. Discover an island rich in history and culture, and full of wonderful experiences just waiting to be enjoyed. If you are heading to Cyprus, everything you need to plan your perfect trip is here on the Deputy Ministry of Tourism website, from information and facts tointerestingideasanddownloadablebrochures.Availableat: http://www.visitcyprus.com/index.php/en/. Weeden, C. and Boluk, K. eds., 2014.Managing ethical consumption in tourism. Routledge. Xu, H. and Sofield, T., 2016. Sustainability in Chinese development tourism policies.Current Issues in Tourism,19(13), pp.1337-1355