Strategic Management for Tourism, Hospitality, and Events

This document provides an overview of strategic management in the tourism, hospitality, and events industry. It covers topics such as Porter's five forces model, VRIO analysis, and stakeholder mapping. It also includes a critical evaluation of appropriate future strategic direction for an organization. Get study material and solved assignments on strategic management at Desklib.

STRATEGIC
MANAGEMENT FOR
TOURISM
HOSPITALITY AND
EVENTS

Table of Contents
INTRODUCTION ..........................................................................................................................1
MAIN BODY...................................................................................................................................1
STRATEGIC POSITION ...............................................................................................................1
Porter's five forces model............................................................................................................1
VRIO analysis.............................................................................................................................3
Stakeholder mapping...................................................................................................................4
STRATEGIC CHOICE ...................................................................................................................5
Critical evaluation of appropriate future strategic direction for organisation.............................5
STRATEGIC EVALUATION ........................................................................................................8
An evaluation of recommended strategic direction using Suitability, acceptability and
feasibility.....................................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Strategic management refers to the process of the ongoing planning, evaluating,
assessing all the goals and objectives of the organisation within the marketplace. In this changes
within the business enterprises are effectively get the successful results by appropriately apply
the strategies management within the business enterprise. The major aim of developing their
report is to understand the factors related to gaining the high profitable results and gaining the
competitive advantage within the marketplace. It basically involves the implementation of the
goals on behalf of the top authorities by the employees so that high sustainability can be enjoyed
in rival marketplace(Andrades and Dimanche, 2019).
To complete this project understanding this report includes the Bank Sadler is a leading event
organisation that is ranked at the 5th largest agency within the UK where person can do a creative
production team that can includes the graphic designers, creative producers, video producers
technical manager that are highly supportive to make the virtual event effective, impressive and
engaging. The company is pretty larger on the culture where they are working for growing and
delighted to hear the customers preferences. This report includes the analysis of the strategic
analysis using porter's five forces model, VRIO analysis, stakeholder mapping so that
capabilities can be easily identified and strategy can be implemented successfully. Further it
includes the strategic choice by critical evaluate the future direction of the Bank Sadler. At last it
involves the evaluation of recommendation by using the SAF model is that high sustainability
can be enjoyed by the company in the current marketplace.
MAIN BODY
STRATEGIC POSITION
Porter's five forces model
It refers to that framework which is used to examine the competition within the
marketplace. It is highly effective for the organisation to gain the higher profits and revenues by
effectively analysing the industry in the business environment(Chang, 2018). In case of Bank
Sadler manager can highly focus on adopting the porter's five forces model so that they can gain
the high competitive advantage within marketplace that can be shown below:
 Bargaining power of customers- It refers to that aspect in which organisation can highly
focus on the customers so that firm will sustain within the marketplace. In Hospitality
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and tourism sector the bargaining power of customers are mainly based on lowering the
price of the products and services and getting the high quality services. In this their power
is highly based on their overall purchased. In terms of Bank Sadler, the bargaining power
of customers are high because of limited number of buyers are available within
marketplace because of the COVID impact in the country. Due to this firms cannot get
the high orders from the customers side and due to this buyers can effectively bargain the
services at their own cost. This will impact the profits margin of the organisation but at
the same time it will attracts the large base of customers(Dickson, Milne and Werner,
2018).
 Bargaining power of suppliers- It includes the power of suppliers to the hospitality
industry especially for event organisation. In terms of Bank Sadler, company cannot face
the high bargaining of suppliers within market as there are number of buyers are present
in the marketplace. In this due to the impact of COVID 19, organisation can face major
issue related to availability of differentiate of products related to organise a event and it
will majorly impact the firm decision making to effectively organise the event with more
of the resources.
 Threats of new entrant- This aspect is based on the fear of new entry within the
marketplace. In hospitality industry, the threat of new entry is low because to operate the
business within marketplace they need to high investment. In terms of Bank Sadler, the
threat of new entrant is quite difficult for the new operate. And due to the situation of
COVID 19, the crises are majorly occur within the business industry so it also impact
negatively to the new firm to open their event organisation for attracting customers. This
will beneficial for the Bank Sadler to gain and sustain for a longer period of time.
 Threat of a substitutes- Within the hospitality sector there are several number of event
companies are to be present within the marketplace and to gain the high market share it is
very beneficial for the Bank Sadler to examine their competitors that are available within
the market such as Oxygen, Clive agency limited, Eventique etc, who also offers the
same services to their customers which contains the major threat for the organisation.
This aspect contains the high power on the business enterprise(Harrington and et. al.,
2019).
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 Rivalry of the company- It includes the intense power within the hospitality events
where the major competitors are to be present within the market place that are RIM
Scaffolding, Cream city rickshaw, Oxygen etc. that also offers the same types of services
to their customers by using proper technologies, machineries etc. Due to the high impact
of COVID 19 they can lower their prices of services which majorly affect the Bank
Sadler to lower their price and with proper safety precaution to get the high range of the
customers and profits.
VRIO analysis
It refers to that analysis which helps the business enterprises to examine the abilities and
capabilities of the organisation resources so that it helps in gaining the competitive advantage for
a longer period of time. It includes the several resources that financial resources, Human
resources, technological resources, brand image etc. In context of Bank Sadler, manager can
analyse the capabilities of resources by using the VRIO analysis that can be shown below:
 Valuable- It refers to that aspect in which company can highly focus on those resources
which are valuable for the company in gaining the high profits. In context of the Bank
Sadler, organisation can mainly emphasis on the effectively utilisations of the resources
so that they can gain the high competitive advantage within the marketplace. It includes
the event manager blog in this effective valuable information is to be included related to
the company for gaining high profits. Endlesss entertainment, Human resources etc. all
the valuable to the business organisation(Henseler, Müller and Schuberth, 2018).
 Rare- This term is highly related to the rareness in the resources and the products and
services which is not majorly used or adopts by the other companies. The rare products
that the Bank Sadler company are to be offered to their customers are their machineries in
automotive beauty, finance, media and pharmaceutical etc. that are highly rare within
the firm in UK because this will not be effectively used by the other companies. It will
helps in gaining the competitive advantage within the marketplace.
 Imitable- This framework represent that the resources that a Bank Sadlers can adopts are
imitable that means it cannot be copied by some other organisations that helps in gaining
the high profits and revenues for a longer period of time. In this if the business enterprise
can provide the imitable services to their customers that it will not attracted the customers
any more. In this manager of Bank Sadlers can provide all their services with innovation
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in plan and focus on adopting full safety measures this will measurably attracts the large
number of peoples also in this Pandemic attack(Hernández-Mogollón, Duarte and
Folgado-Fernández, 2018).
 Organised- This term considers all the resources which a company can adopts in their
products and services are to be organised in prominent manner so that task can be
attained on time and firm will get the high revenues. In terms of Bank Sadlers that is an
event company if cannot work and manage their events properly than they can face the
major issue in wastage of resources this will affect the profit margin. On the other hand if
they can organised all their resources like human resources by encouraging them,
technology resources by timely updated so that high profitable results can be enjoyed by
the Bank Sadler. Their suppliers are also organised as they provide the material at
reasonable cost and in a systematic manner which helps in saving the time of event
manager to plan their event effectively and successful.
Stakeholder mapping
For mapping the stakeholders by the business enterprise manager can highly focus on
following the stakeholder matrix so that they can analyse the stakeholders and their priority level
so that task can be attained as per their interest and power within the company assignment,
profits and rules etc. In context of the Bank Sadler, manager can focus on mapping the
stakeholders analysis so that high profits can be attained effectively and efficiently. This
mapping is based on three steps that can be shown below:
 Step 1- Prepare a list of stakeholder: In this manager of the Bank Sadler can develops
the list of the stakeholders that will impacted the company directly and indirectly, in high
context and in low context that can includes the sales department, suppliers, customers,
employees etc(Hwang and Lee, 2019).
 Step 2- Examine stakeholders as per their interest and power: In this manager of the
Bank Sadler can highly focus on the several stakeholders so that they can bifurcate as per
their interest level and power containing. This will helps in gaining the higher profits and
revenues with effective market share. It can be demonstrate further:
◦ High power, high interest- This type of stakeholders are very prominent for the
business enterprises because they contain high power and high interest in the task and
activities of the company. In this manager of Bank Sadlers can highly focus on this
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type of stakeholders so that objectives can be attained in effective and very smoothly
due to this organisation can attain the high profits. This type of stakeholders are
Shareholders, board of directors etc.
◦ High power, Low interest- It refers to that determinant in which stakeholders are
containing the high power and represent their low interest in the working and decision
making of the company related to gaining high proficient results. In this manager of
the Bank Sadler can highly focus on those stakeholders who can prominently
influence the working of the company but cannot show their high interest in the
decision making and activities within the working environment(Kelly and Fairley,
2018).
◦ Low power, High interest- It reflects that type of stakeholders which does not
contain high power in the decision making but present their high interest within the
several activities of the business enterprises. In terms of the Bank Sadler, these type
of stakeholders are majorly event handler employees, blog managing worker etc.
◦ Low power, Low interest- It refers to that type of stakeholder in which they cannot
contain the high power and interest in the decision making and activities of the
company. In context of the Bank Sadler it includes the suppliers that does contain low
power and interest within the company.
 Step 3- Communication: After analysing the several stakeholders as per their interest
and power Bank Sadler manager can highly focus on transforming the information as per
the stakeholder power and interest so that activities can done in a smooth manner(Koc,
2019).
STRATEGIC CHOICE
Critical evaluation of appropriate future strategic direction for organisation
Strategic direction refers to the actions that is very helpful for the business enterprises for
attaining the goals of the companies and provides the longer term sustainability within the
marketplace. Strategic direction includes the plans that is develops based on the vision of the
future of the company. In context of the Bank Sadler company can majorly focus on the basic
few steps so that successful results can be effectively attained. These steps includes the planning,
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actions and achieving the objectives within a specified period of time. These can be reflected
below:
The first step is planning in this manager of the Bank Sdaler can highly focus on the
conditions and capabilities of the business organisation so that high profitable results can be
enjoyed by the firm. Due to the amid attack of the Pandemic COVID 19 event organisations can
face the major issues related to gaining high profits and maintain their customer base for this
they can focus on implementing the strategic approach so that they can maintain their proficiency
level within the market and firm will sustain for a longer period of time(Lu, Chen and Law,
2018). In this Bank Sadler can highly focus on the adopting the strategic direction by using the
Ansoff matrix so that they can adopts the best strategy so that more and more profits can be
enjoyed by the company. This Ansoff matrix is to be shown below to get the successful strategic
direction:
Ansoff matrix
It refers to that strategic approach which is adopted by the business enterprise for
effectively planning the strategy so that successful results can be enjoyed by the
organisation(Marasco and et. al., 2018). IN terms of Bank Sadler this Ansoff matrix can be
shown below:
 Product development- In this company can focus on developing the new products and
services which is highly beneficial for the firm to gain the profits and attracting the large
base of customers that will generate the high market share. By applying this strategy
helps in maximising the sales and revenues. In terms of Bank Sadler, if manager can
adopt this strategy than they majorly focus on developing the new services with lots of
safety measure because of the COVID 19. due to this event company can face the major
loss and to overcome this organisation can adopt this strategy in which they can improve
their technologies, automotive resources including the several safety measures in their
events like proper sanitation, scanning the guest with high technology so that there
temperature can be effectively noticed(Mkono, 2018). At the same time it will impacted
the firm in two ways that are in positive and negative ways: In positive way- this strategy
helps in gaining the high customer base within the current marketplace on a long term
basis. This also helps in improving the business performance due to this they can gain the
competitors advantage within the marketplace. It also enhance the brand image of the
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Bank Sadler. On the other hand it also includes some negative factor of this strategy that
are it enhances the cost due to this firm will offer their services to their customers on high
price and because of the impact of COVID 19 it will not beneficial for the company
because customers cannot pay high cost as there purchasing power will be affected be
loosing their jobs due to major loss face by the economy in market.
 Market development- It refers to that stage in which organisation can highly focus on
developing the market by entering into the new market with their existing products and
services. It helps in gaining the high market share and also attracts the new area
customers due to this high profits and sustainability can be enjoyed by the business
enterprise. Due to the impact of COVID 19 in the world operating the business within
the new market with current offerings and services are not to be effected very much
especially for the event organisation. In context of the Bank Sadler, if manager can focus
on adopting this strategy they can introduce their market in that country where the impact
of COVID is low so that they can enjoy more and more benefits within the new
market(Peters and Kallmuenzer, 2018). It will contains the positive and negative impact
that can be reflected: In positive way- It will enhance the global reach of the company
within the marketplace. Providing the several new opportunities for the business related
to their longer sustainability. It also impact negatively: Adopting this strategy is
intensely risky due to the impact of the COVID 19 because due to this no more customers
are to be highly involved in getting the services of event organisations and it will majorly
affect the organisation profits and sustainability(Yeh, 2020).
 Market Penetration- It refers to that strategy in which business venture can focus on
reducing their prices of the services and products that they offers to their customers
within the existing market. In this they can focus on selling the present products and
services without doing any changes. This will develops the high market share and also
enhancing the customers in a low cost. As this strategy is only effective for gaining the
short term objectives(Pino and et. al., 2019). In context of Bank Sadler, due to the impact
of COVID 19 firm can focus on using the safety measures and due to this they cannot
lower their prices in offering the services because due to this they can face the major loss
and it will negatively impact the survival and brand image of the business enterprise
within the marketplace. But if the company can deliver their services with some
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impressive discounts instead of lowering their price of services than it will gain the
customer attraction and also helps in gaining high profit margin with in small period of
time. As this will impact positively in the organisation(Walters, 2018).
 Diversifications- It refers to that strategy in which organisation can focus on entering
into the new market within their new services and products. This strategy is very risky in
nature if this is not be implemented successfully that the firm will gain high loss but if the
organisation can enter into the new market with new product by proper researching than
it will helps in gaining the higher success. In this strategy COVID 19 majorly affect the
company and their profit margin because in this If Bank Sadler can enter into this
strategy that they can gain the high profits if they can use the proper safety measures and
listen the customer follows and solve it frequently with the use of advanced technology
than high profits can be attained it will positively affect the organisation(Ram, 2018).
From the above research it is evaluated that Bank Sadler can use the product development
in which they will gain high profits and revenues with high customer attraction at the festive
time. In this they can also beat the high competition within the market place due to which firm
will sustain for a longer period of time.
STRATEGIC EVALUATION
An evaluation of recommended strategic direction using Suitability, acceptability and feasibility
For Bank Sadler it is to be recommended that the adopting strategy i.e. Product
development is very beneficial for gaining the higher profits and revenues. For better results
business organisation can use the SAF model so that possibilities of gaining high success can be
measure effectively:
 Suitability- It refers to that extent in which Bank Sadler can focus on examine the best
strategic opportunities that is suitable for the company. In this firm can focus on using the
high safety measures because of the major impact of the COVID 19. In this they can
focus on adopting the use of SWOT analysis so that high profitable results can be
enjoyed(Sainaghi and Mauri, 2018).
SWOT ANALYSIS
Strength Weaknesses
The major strength of the Bank Sadler is the The major weakness of this is the high
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best working atmosphere where employees can
done their task very effectively so that high
proficient results can be enjoyed.
High brand image is helps in developing their
products and attracts the customers.
bureaucracy due to the merger with Amex
GBT and due to this confusion is to be created
and it will impact the company producitvity.
Opportunities Threats
The major opportunity is the high support of
the society related to the use of technological
Advancement due to this they can gain the
high profits within the time of COVID
situation and it also helps in developing and
improving the services of the
company(Sheresheva, 2018).
The major threat of the company is their
competitors that are present within the
marketplace. Such as Oxygen etc.
By using this model is it reflected that Bank Sadler can adopts the product development strategy
and it is beneficial for them for gaining higher profits.
 Feasibility- In this manager of the Bank Sadler can acknowledge the best strategic option
in this the product development strategy is very beneficial according to the strength and
opportunities of the firm.
 Acceptability- In this firm will majorly focus on the acceptability of the strategic choice
in this they will need the high financial resources, good and experienced working staff so
that high profitable results can be enjoyed. In this stakeholders play a major role to
accomplishing the targets effectively and efficiently(Sipe and Testa, 2018).
CONCLUSION
From the above report, the strategic management is a prominent term that is very
effective for gaining the higher profits and revenues. By adopting the strategic management tool
company can gain the competitive advantage so that they can survive for a longer period of time.
In this to effectively analyse the strategic position organisation can adopts the porters five forces
model, VRIO model, stakeholder mapping so that acknowledging the market and industry is
done positively and prominently. In this porter's five forces model helps in providing the intense
information related to the industry so that taking appropriate strategy is very effective. Further
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VRIO analysis helps in analysing the capabilities of resources so that major objectives can be
attained within the marketplace and also helps in gaining the competitive advantage that helps in
longer sustainability within the marketplace. In this stakeholder mapping helps the business
enterprise to acknowledge the several stakeholders as per their interest and power so that task
can be attained effectively and with the proper involvement of the stakeholders as per their
priority. Further it elucidates the proper evaluation for future strategic direction to the company
so that it will sustain to more time. To recommend the strategic direction the model of SAF can
be adopted that helps in properly examine the several factors related to company success.
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REFERENCES
Books & Journal
Andrades, L. and Dimanche, F., 2019. Destination competitiveness in Russia: Tourism
professionals’ skills and competences. International Journal of Contemporary
Hospitality Management.
Chang, S., 2018. Experience economy in hospitality and tourism: Gain and loss values for
service and experience. Tourism Management, 64, pp.55-63.
Dickson, G., Milne, S. and Werner, K., 2018. Collaborative capacity to develop an events
portfolio within a small island development state: The Cook Islands. Journal of Policy
Research in Tourism, Leisure and Events, 10(1), pp.69-89.
Harrington, R.J. and et. al., 2019. From goods-service logic to a memory-dominant logic:
Business logic evolution and application in hospitality. International Journal of
Hospitality Management, 76, pp.252-260.
Henseler, J., Müller, T. and Schuberth, F., 2018. New guidelines for the use of PLS path
modeling in hospitality, travel, and tourism research. In Applying partial least squares in
tourism and hospitality research. Emerald Publishing Limited.
Hernández-Mogollón, J.M., Duarte, P.A. and Folgado-Fernández, J.A., 2018. The contribution of
cultural events to the formation of the cognitive and affective images of a tourist
destination. Journal of Destination Marketing & Management, 8, pp.170-178.
Hwang, J. and Lee, J., 2019. A strategy for enhancing senior tourists’ well-being perception:
Focusing on the experience economy. Journal of Travel & Tourism Marketing, 36(3),
pp.314-329.
Kelly, D.M. and Fairley, S., 2018. What about the event? How do tourism leveraging strategies
affect small-scale events?. Tourism Management, 64, pp.335-345.
Koc, E., 2019. Service failures and recovery in hospitality and tourism: A review of literature
and recommendations for future research. Journal of Hospitality Marketing &
Management, 28(5), pp.513-537.
Lu, Y., Chen, Z. and Law, R., 2018. Mapping the progress of social media research in hospitality
and tourism management from 2004 to 2014. Journal of Travel & Tourism
Marketing, 35(2), pp.102-118.
Marasco, A. and et. al., 2018. Collaborative innovation in tourism and hospitality: a systematic
review of the literature. International Journal of Contemporary Hospitality
Management.
Mkono, M., 2018. ‘Troll alert!’: Provocation and harassment in tourism and hospitality social
media. Current Issues in Tourism, 21(7), pp.791-804.
Peters, M. and Kallmuenzer, A., 2018. Entrepreneurial orientation in family firms: The case of
the hospitality industry. Current Issues in Tourism, 21(1), pp.21-40.
Pino, G. and et. al., 2019. A methodological framework to assess social media strategies of event
and destination management organizations. Journal of Hospitality Marketing &
Management, 28(2), pp.189-216.
Ram, Y., 2018. Hostility or hospitality? A review on violence, bullying and sexual harassment in
the tourism and hospitality industry. Current Issues in Tourism, 21(7), pp.760-774.
Sainaghi, R. and Mauri, A., 2018. The Milan World Expo 2015: Hospitality operating
performance and seasonality effects. International Journal of Hospitality
Management, 72, pp.32-46.
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Sheresheva, M.Y., 2018. The Russian tourism and hospitality market: new challenges and
destinations. Worldwide Hospitality and Tourism Themes.
Sipe, L.J. and Testa, M.R., 2018. From satisfied to memorable: An empirical study of service
and experience dimensions on guest outcomes in the hospitality industry. Journal of
Hospitality Marketing & Management, 27(2), pp.178-195.
Walters, T., 2018. Gender equality in academic tourism, hospitality, leisure and events
conferences. Journal of Policy Research in Tourism, Leisure and Events, 10(1), pp.17-
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Yeh, S.S., 2020. Tourism recovery strategy against COVID-19 pandemic. Tourism Recreation
Research, pp.1-7.
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