TOUR335 Strategic Management Homework #5: Strategy Analysis

This homework assignment for TOUR335, Strategic Management in Tourism, analyzes the Travel Alberta Business Strategy 2011-2014. The assignment addresses key strategic issues, the company's strategic direction, and areas of focus. The analysis identifies external environmental issues such as the impact of the strong Canadian dollar and competition from other destinations, as well as internal strengths. The strategic direction focuses on leveraging market opportunities and increasing inbound tourism. Areas of focus include resurrecting Alberta's brand, creating customer intimacy, and expanding the tourism sector. The assignment also requires identifying initiatives within an area of focus and estimating their completion timelines, along with how the company measures its success. The assignment references concepts from Cathy A. Enz's "Hospitality Strategic Management".

Homework #5: Communicating Strategy
Choose one of the strategic plans available in the submission slot for Homework #5.
Answer the following questions. Provide the page number (in brackets) for each answer
provided. You may remove the template instructions.
Strategic Plan Title: Travel Alberta Business Strategy 2011-2014
Where are we now?
Situation Analysis
What are 3 key strategic
issues (external
environment) or
sources/potential sources
of competitive advantage
(internal environment)
the company/ destination
is facing? Identify the
type and the issue. (refer
to Chap 2) (3 marks)
1. The strong Canadian dollar is having detrimental impacts
on Alberta’s travel sector. Such is the case as the local
tourists are considering it an opportunity to explore foreign
regions – such as the United States and the United Kingdom
– that were quite expensive when the currency was weaker
(Travel Alberta 5). This trend reflects Enz’s sentiments
regarding the influence a country’s economy has on
fundamental business determinants including consumer
demand (47). When placed into perspective, the
strengthening Canadian dollar has reduced the cost of
outbound travel, thus enhancing the attractiveness of
foreign destinations.
2. Canada is a mature travel destination. Such a factor has
negative impacts on its industrial growth since global
travelers prefer exploring new regions and experiences. In
its informatory book, Travel Alberta (5) asserts that modern
tourists visit destinations such as Africa, Southeast Asia,
Middle East, Eastern Europe, and Turkey. At this point, it
appears wise to reflect on Enz’s definition of culture as an
evolving set of beliefs, attitudes, and values (42).
Understanding what the term culture entails is vital in
enhancing one’s grasp of its impact on societal trends. As
far as this issue is concerned, the tourists’ attitudes have
changed in favor of less visited destinations.
3. Regardless of Canada’s (especially Alberta) rich
ecosystem, the destination is facing fierce competition from
other regions. This factor is allegedly among the reasons
behind the industrial decline (Travel Alberta 5). When
reading Enz’s Hospitality Strategic Management, it becomes
apparent that competition is an intrinsic feature of business
(39). An organization must understand how it will manage
such stakeholders so as to foster and maintain dominance.
Where do we want to be?
Strategic Direction
What is the
Alberta intends to leverage the promising market
opportunities while increasing inbound tourism from its
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Homework #5: Communicating Strategy
company’s/destination’s
strategic direction?
(refer to Chap 3)
(1 mark)
traditional markets. Such a concept demonstrates the
destination’s dedication to its customers, and the
fundamentals of corporate sustainability. This strategic
direction is deeply embedded on fundamental concepts
‘customer satisfaction’ and ‘sustainability’ (Enz 180).
How will we get there?
Strategic Areas of Focus
What are the
company/destination’s
areas of focus? Which
strategic issue,
competitive advantage or
the strategic direction is
being addressed by each
area of focus? (refer to
Chap 2 and 4)
(6 marks)
Area of focus Strategic issue/competitive
advantage
1. Resurrect Alberta’s brand
as a global tourism
destination (Travel Alberta
13).
Such a progressive goal is
quite achievable. However, it
demands an in-depth
assessment of the company’s
competitive advantage in the
long-run. Differentiation
plays a colossal role in the
enhancement of an
organization/destination’s
brand (Enz 120). So far, the
Canadian rich ecosystem and
culture are key
differentiators. Perhaps,
marketing the two might
enhance the destination’s
market appeal.
2. “Create customer
intimacy” (Travel Alberta
19)
Customers are among the
most valuable stakeholders
in an organization. The same
remains true in the Albertan
tourism sector. As a rule,
most if not all travelers seek
unique experiences. Such a
need demands the
destination to invest in
improving hospitality.
According to Enz (120), value
adding features are vital in
improving a brand’s market
position.
3. Expand the destination’s
tourism sector (Travel
Alberta 23)
According to Enz (148)
market expansion in the
world of business relies
heavily on market
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Homework #5: Communicating Strategy
understanding. This implies
that the organizations or
destinations must possess
real-time market info. Having
the right information is vital
in optimizing the
performance of an innovative
workforce (Enz 150). Alberta
should consider investment
in organizational learning and
development to enhance its
position.
Initiatives
Choose one of the areas
of focus. Identify 3 of the
initiatives related to the
area of focus you have
chosen. How long you
think the initiative might
take to complete?
(3 marks)
Area of focus:
1. To tell Alberta’s story
(Travel Alberta 13)
The timeline of such an
initiative should be infinite
since most tourists value a
destination’s heritage. It is
bound to attract tourists who
might find its story
captivating.
2. To harness the power of
social media (Travel Alberta
21).
Such a goal is in line with the
preceding one. For this
reason, it should be
functional in the long-run.
This sentiment is grounded
on the fact that social media
allows the organization to
reach its target market.
3. To build and share
market intelligence” (Travel
Alberta 23)
Like the preceding areas of
focus, this one should live as
long as the business. It is
hard to experience
sustainable growth in such a
competitive industry. The
leading destinations and
organizations understand the
value of in-depth market
understanding.
Strategic Targets
What are the targets
related to the area of
Alberta will utilize the return on investments (ROI) model to
assess the value of this strategic plan.
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Homework #5: Communicating Strategy
focus you identified
above, i.e. how will the
company/destination
measure its success?
(1 mark)
Work Cited
Enz, Cathy, A. Hospitality Strategic Management: Concepts and Cases. Hoboken, NJ:
John Wiley & Sons Inc. 2015
Travel Alberta. Business Strategy 2011-2014. Alberta, Canada: Travel Alberta. 2011
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