Shearwater Strategic Issues

Added on - 09 Nov 2020

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Shearwater5.What strategic issues confront Shearwater and its prospects for growthin revenues and profitability?Some of the strategic issues Shearwater faces are its operating costs.Accommodation exceeds its income and competition becomes more andmoreThreatened. If Shearwater can develop a plan to make its accommodationgenerate higher income and slightly reduce its expenses, the profitabilitygrowth will only be higher.As competition intensifies, Shearwater must defend and do well. This is astrategic issue in order to continue to increase revenue. It is very importantfor the company to bring its accommodation, adventure, retail, andrestaurant to the market together to maximize profitability and convenience,so as their competitors.Since their residence is close to all the scenery, they need to find a way toincrease income and increase profits.The two strategic issues Shearwater faces are:The first one:For the company, the cost of increasing the product line-up isnot expensive,The second point:The talents in the region can design new adventureactivities, or simply copy Shearwater products.6.What recommendations would you make to Shearwater managementto improve the company’s performance? Your answer should besupported by your analysis of the company’s strategic situation.I suggest that the management of Shearwater find a way to increase thenumber of guests. They currently only provide accommodation in Zimbabwe,and I suggest expanding it to two other countries to maximize theirprofitability. They need to find a way to attract more guests into Zimbabwe,because they are so close to the scenery, provide convenience for theguests, and generate profits, so they need to attract more guests inZimbabwe and the business area.Departmental improvements can indeed maximize the company'sprofitability and growth. Their strategy of beating competitors throughintegration is a good idea, as long as they can break into these areas witheach customer, they will work. Extending accommodation to other locationswill also increase the profitability of other business units, as it will be moreattractive to other departments. Like they did in Zimbabwe, this will givethem the opportunity to expand retail and restaurants to strategic locations
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