Tourism Operation Management: Innovative Solutions for Operational Problems

This report discusses innovative solutions for operational problems in tourism operation management, including governing overhead expenses, monitoring performance, responding to competition, and managing cash flow. It explains how these solutions benefit different stakeholders such as the government, consumers, employees, and investors. The report also assesses the financial implications of implementing these solutions.

Tourism Operation
Management

Table of Contents
INTRODUCTION..........................................................................................................................1
MAIN BODY……………………………………………………………………………………………1
TASK 1............................................................................................................................................1
Innovative and realistic solutions of all the operational problems..................................................1
TASK 2..........................................................................................................................................3
Explain how the solutions will benefit different stakeholders......................................................3
TASK 3..........................................................................................................................................4
Assess the different solutions which are provided and consider the financial implications of
implementing these solutions...........................................................................................................4
CONCLUSION................................................................................................................................5
REFRENCES...................................................................................................................................6
Books and journals..........................................................................................................................6

INTRODUCTION
Operation management means to manage the activities of the businesses or for any other
things(Kim and Jeong, 2018). So in context of tourism operations management this means to
plan all the activities related to the tourism which can be of planning the tour, facilities of
accommodation, tour guidance and many more. From past many years tourism have become the
most important sector which impacts the country economy in a greater way. In this sector
providing good hospitality is the most important element that with quality. For the stakeholders
also tourism development is important as it increases the knowledge about other cultures and
increases the jobs and income for the people. Warner Brothers was founded in 1923 by Albert,
Sam, Harry and Jack Warner. It is an American multinational mass media which operates in
various business segments. The management is now planning to build a Harry Potter World. This
report will cover the innovative and realistic solutions for all the operational problems that were
identified. Also the report will provide the benefits which the stakeholders will have on finding
theses solutions. In addition to this the different solutions will be evaluated considering their
financial implications on the company.
MAIN BODY
TASK 1
Innovative and realistic solutions of all the operational problems.
There are various problems which the manger has to identify and to improve them with
the solutions otherwise it would be difficult for the management in the later course. The
problems which were identified with their solutions are explained below-
Problems-
 Govern the overhead expenses- The overhead expenses are those which are not directly
related with the business but in other which are the ongoing expenses of conducting or
doing anything(Koc, 2019). It becomes important from the side of the accountant to
manage the overhead expenses to continue the daily operations.
 Monitoring performance- When any project is given to any team it becomes utmost
important from the side of the superior to check the performance otherwise they won’t be
able to look what they actually doing. Monitoring performance is the main issue that was
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faced by the management which they knew can become the biggest problem if not solved
quickly.
 Responding to competition- When such things are developed in the market, this has
been very common which has been seen that the competitors also increase (Giddy and
Webb,2018). Because it hardly takes very less time to develop the exact thing with some
modifications. Thus, this factor was also seen by the authority.
 Flow of cash- For developing the harry potter world or other things which are similar to
this requires hug cost to be invested in it. The flow of cash has to be regular otherwise the
daily operations and the innovations won’t be possible for the business. This requires the
investors and the quality to attract more investors for such big projects.
Solutions-
 Mindful about utility costs- This actually requires the mindfulness of the accountants to
manage all the utility costs which they are suffering from much time. The responsibility
of not just the accountant but of other people to manage the extra costs which are related
to daily business activities of the business. They can use the LED bulbs ,be cost effective
in other things, choose other places which are not rented can be able to reduce the daily
costs. The management can also switch the communication programs to manage the daily
communications this will help to save the money which can be used in other productive
areas.
 Tools for monitoring performance- To improve or monitor the performance of the
employees it become important to monitor the performance(Jamal and Camargo, 2018).
But if the management uses the old tools for checking the performance it will become
difficult for them to measure the performance. The management must use consistent
performance monitoring tool with simplified procedure which will help to analyse the
performance in the effective manner. Tools such as Oracle, SQL server acts as a best tool
to monitor the performance of the employees. When such tools will be used by the
management then the employees would fear of their job and then they will work with full
motivation.
 Innovations in their activities- It is a well known fact that if the company uses
innovations in their daily activities they will be able to fight the competition in the
market(Sugathan and Ranjan, 2019). Adopting new features and modifications in the
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services they would create monopoly in the market and more tourists will come to see the
place. When new and innovative technologies will be used in the harry potter world then
more people will come to visit the place this will increase the sales of the tickets
increasing the revenue of the company.
 Managing the cash flows- Cash is the blood of every business or to build anything the
cash is the root. For making anything their requires a cash but managing the cash is also
important at the same time (Steiger and Scott, 2020). To manage the cash the accountant
have to prepare the cash flow statement which provide the exact information about where
the cash has gone and from where the cash has arrived. This will help the management to
know everything about the cash inflow and outflow. Reducing the expenses will also
solve many problems for the company because extra expenses always increase the cost of
conducting the business.
TASK 2
Explain how the solutions will benefit different stakeholders.
Stakeholders are those individual who invest in the business in order to achieve the
mutual goals (Kim, 2018). Stakeholders are the important contributors of the company who can
manage all the decisions and on the same side they can affect the decisions of the business. They
usually invest in the companies or in the business when they find that the particular company or
business or company will provide them benefit in terms of the price which they are investing.
This means that they make investment in those places where they think will get double return on
the invested amount. There are different stakeholders which are connected with the Warner
Brothers- harry potter world with their benefits which they will receive from these solutions-
 Government- Government has the ability to change the laws or pass some new laws for
the businesses or the company. When these solutions will be adopted by the company or
by the management then that will ultimately benefit the government including the local
government. These solutions will provide the government more revenue because when
the company will inculcate in their activities new innovations then it will increase the
revenue as more people would come to visit the place. This will increase the revenue
which will help the government as they will be able to receive the taxes on time. Also the
tourism in that place will also increase because every individual wanted to visit the new
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place this will rise the tourism in the country. As now tourism is considered to be the
most important sector which helps to generate the revenue.
 Consumers- The management when adopted such solutions in the business will invite
more consumers to visit the new place(Situmorang, Trilaksono and Japutra, 2019). The
innovations and the modifications which the company makes creating monopoly in the
market. Such factors will influence the individuals to visit the new place. The harry potter
world is the whole new set with all those things which are shown in the movie and when
people will watch those things live it will fascinate them. People only want something
different but not compromising with the quality.
 Employees- Employees are the important assets for any company or business. The
employees are the ones who helps to achieve the company’s objectives with full
dedication and determination. Working in the innovative environment where new things
and practices are being developed helps to increase the ideas and thoughts. Employees
have to use different methods of utilizing the utility costs this increases their ability to
think in the new directions. Employees love to work in those organisations where they
can learn new things and practice different areas which they have not performed earlier.
 Investors- Investors are those individuals who invest in the company new idea with the
aim of receiving the double returns(Lope and Dredge,2018). Investors always invest in
those areas where they feel that the idea is innovative and can bring good returns to them.
The innovative idea of the company to make it different from others in the market brings
more investors as they know that investors want new things. Utilizing the money in the
proper way is also the other perspective which they want from the companies. They
sometimes require all the financial statements to check whether there money is utilised in
proper way or not.
TASK 3
Assess the different solutions which are provided and consider the financial implications of
implementing these solutions.
The different solutions which are explained above are given on the basis of the changes
which the company can bring in their daily operations. By adopting these changes the company
owner would be able to differentiate itself from its competitors and will be able to achieve the
success. The solutions which are provided is because of the difficulties which the company was
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facing. Using these solutions will increase the efficiency and productivity of the company and
more people will come to visit the new place. Some financial implications are explained below
which the company will face implementing these solutions-
Positive implications:
 Consistent cash flow- Using the solutions which is mentioned will help the
company to adopt the cash flow system which helps them to track all their cash. This
means that the accountant will get to know about the cash inflows and the cash
outflows.
 Taxes- The company would be able to pay the taxes on time which will save them
from paying the late charges(Zhang and Zhang, 2018). Because adopting these
solutions will increase the revenue of the company and this will make them able to
pay the taxes on time.
Negative implications-
 Insufficient working capital- Working capital means the amount which is used by
the company for their daily operations. The working capital is considered to be the
lifeblood of any company without this conducting any operation will be difficult.
Making new innovations requires huge amount to make the idea differentiate.
Innovations will reduce the cash for the company and will reduce the working
capital.
 Raising enough capital- Also making new innovations requires investors who can
invest in the business idea without creating any problem. Raising sufficient capital is
the main priority for every company for this they have to showcase their ideas to
different individuals who can select and who will not depending upon their choices.
CONCLUSION
From the report it can be concluded that the operation management when done in a effective
manner will give effective results. The solutions which are mentioned above when applied by the
company will give them success and they would be able to start what they are planning. The
tools which can be used to attract the tourism for the place have to be identified and in other
areas also the company have to focus which are cash flow, overhead management, and the
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financial expenses which will provide them more profit and success. Improvement in quality and
financing will help them to develop it and this will be the actual source where more tourists will
come and visit the place.
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References:
Books and Journals
Giddy, J.K. and Webb, N.L., 2018. The influence of the environment on adventure tourism: from
motivations to experiences. Current issues in tourism. 21(18). pp.2124-2138.
Jamal, T. and Camargo, B.A., 2018. Tourism governance and policy: Whither justice?. Tourism
management perspectives. 25.. pp.205-208.
Kim, H.J. and Jeong, M., 2018. Research on hospitality and tourism education: Now and
future. Tourism Management Perspectives. 25. pp.119-122.
Kim, J.H., 2018. The impact of memorable tourism experiences on loyalty behaviors: The
mediating effects of destination image and satisfaction. Journal of Travel
Research. 57(7). pp.856-870.
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.
Lopes, M.J. and Dredge, D., 2018. Cruise tourism shore excursions: Value for
destinations?. Tourism Planning & Development. 15(6). pp.633-652.
Situmorang, R., Trilaksono, T. and Japutra, A., 2019. Friend or Foe? The complex relationship
between indigenous people and policymakers regarding rural tourism in
Indonesia. Journal of Hospitality and Tourism Management. 39. pp.20-29.
Steiger, R. and Scott, D., 2020. Ski tourism in a warmer world: Increased adaptation and regional
economic impacts in Austria. Tourism Management. 77. p.104032.
Sugathan, P. and Ranjan, K.R., 2019. Co-creating the tourism experience. Journal of Business
Research. 100. pp.207-217.
Zhang, L. and Zhang, J., 2018. Perception of small tourism enterprises in Lao PDR regarding
social sustainability under the influence of social network. Tourism Management. 69.
pp.109-120.
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