Assessment of IT and IS Issues in a Tourism Company Merger: Case Study

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ITC563 Assessment 4 Critique in System and Technology
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Contents
Executive Summary..................................................................................................................................3
Introduction................................................................................................................................................4
Case Outline..............................................................................................................................................5
Critique of management decisions.........................................................................................................6
Decision 1..............................................................................................................................................6
Decision 2..............................................................................................................................................7
Describe the development of the new systems integration of Safari and express (IT issue).........8
Describe the corporate governance of the combine management from both companies have to
decide policies, rule, agreement and management process. (IS Issue)...........................................9
Recommendation and conclusion........................................................................................................11
References..............................................................................................................................................12
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Executive Summary
The below assignment based on a scenario where two tour operator companies
Outback Safari Tours and Mainland Express are merging with each other for
enlargement of their business. The assignment will provide deliverables for both the
tourism organization. Both organizations are well-known tour provider companies and
maintain a good ratio of market shares. The assignment will recognize the specific
issues which are related to IT and IS. These IT and IS issues reflects on the behavior of
the customers and the below assignment would provide clear issues relates to a
customer. The Outback Safari Tour is an organization which has 25 offices at different
places like New South Wales, WA, SA, and NT. There are personal coaches of the
organization which is capable to carry almost 50 passengers in a single time. Most of
the operations of this organization are controlling by an offline controlling system. The
company maintains a relationship with the tour agency and tour operators and they
provide almost 75% of sales to them.
On the other side, Mainland express has its online platform and they manage all their
operations via its online platform. The organization is a low- cost company and it makes
available quality coaches to its customers. The coaches have the ability to take almost
55 passengers at a single point of time. From the below assignment the management
issues which are reflecting both of the organization would be identified and what are
their impact and how they affect these two organization all these situations also would
be recognized. The main motive of the below assignment is that it would highlight the IT
and IS issues which are affecting the growth and productivity of the organizations.
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Introduction
The below report is focusing on the management assumptions which would be helpful
for managing the collaboration of both the tour operator companies. The assignment is
based upon a case study related to the merger process of Outback Safari tours and
Mainland tours. The below assignment is capable to provide a critique which is related
to the merger process of the concerned firm. There are some issues affecting the
management and productivity of both the organization and the below assignment would
illustrate those issues. The IT and IS issues would be broadly described and the impact
which they create on the needs of a customer also will be explained. By the help of this
assignment, a student would be able to recognize the IT and IS issues which can affect
a collaboration process of the organizations. It would evaluate the effects on the growth
and productivity of the firm in relation to the given scenario.
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Case Outline
To grow the market shares and productivity an organization always makes some
attempts and applies some particular strategies in their organizational culture. in the
same way, according to the given scenario both the organizations, Outback Safari, and
Mainland tour are trying to merge their business operations for increasing their business
productivity. According to the case study, Outback Safari operates most of its
operations with the help of an offline format and on the other side, Mainland tour
operates most of its operations with an online platform. With the help of this merging
process both the companies would be able to increase their productivity on a better
level and will also increase the strength of both the organizations. The Second profit
which they both can get that they would be able to remove the weakness of each other.
There is a most important strength with Outback Safari that they are providing services
of a multi-day tour to its customers. The facilities of new fleet coaches and many other
latest facilities are provided by this company to its consumers. On the other side
Mainland express is an organization which believes in low-cost services. The company
is well known for providing low-cost services at the right time to the consumers. The
company has no capabilities for providing international tour packages to their
consumers and it is also not capable to provide the overnight accommodations to its
consumers (Filep and Laing, 2019).
By the help of some specific strategies, the management teams of both organizations
will be able to reduce the weaknesses of each other and will be able to increase their
level of productivity and growth. Looking ahead to this case, a number of assumptions
are recognized and these are:
 The process of Merger would be helpful for Outback safari Tour for developing its
business at an online platform.
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 The strategies will provide help to Mainland Express for increasing their services like
overnight accommodation and international tourism packages.
 The merger process would help both the organizations for increasing their area of
market and productivity.
Critique of management decisions
Decision 1
According to the primary management decision, it was found that the organization will
try to keep all their staff and coaches. They will equally keep all the policies that are
related to their organization. Besides, the management team will try to merge the old-
fashioned model of Safari with the latest and advances model of Mainland express.
With the help of this decision, the management team will be capable to remove the
stage of changes in the organization. The organization would become able to maintain
the level of price in their organization. As per the scenario, it could be understood that
the company does not want to lose their old employees and don’t want to organize any
training session also. As per their opinion the employees who are working presently in
their organization having many abilities and enough experience that they could deal with
any situation in the organization. This factor the organization would be able to protect its
price expands on the growth programs and training and will become able to increase
productivity. The process of recruiting would not be necessary for them by using this
decision and there will no situation of investment in the recruiting process. The related
decision will help the management team in saving their time and managing the financial
resources (Pasquinell, et. al., 2019).
According to the strategy, the firm will try to merge their outdated model with the latest
model of Mainland express. It will help the management team to find out the new range
of productivity and growth. The manager would become able to increase the level of
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calculating and administration in the organization. They can use advanced software to
manage different type of operations and resources successfully and it may help out the
managers in the communication process.
There is a negative impact also of this decision; it was founded that the respective
strategy may suffer by the communication, controlling and supervision process of the
organization. The other problem that could be a rise, the employees of an organization
can feel uncomfortable working with the new employees coming from the other
organization. It could create a negative impact on the working culture of the organization
and could create an impact on the performance of the individual employee. Along with
this decision, the employee of Safari uses too of their old and outdated software and
may face difficulty for understandings the new and innovative software of Mainland
express. As the manager doesn’t want to invest their money in a training session but it
will become necessary for them to provide a training session related to the use of new
software of Mainland express (Kawashima, 2016).
With the help of above information, it can be said that the related decision is included
with both negative and positive prospectors so it becomes necessary for the managers
that the supervise all the activities effectively to manage efficiency in their work.
Decision 2
According to this decision, the management will make efforts for maintaining the low
price policy of Mainland express. The company will introduce some low-cost facilities for
consumers. The customers of an organization need to pay at first for coaches and later
they have the right to ask about any individual service. This strategy will help out the
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organization to attract a different segment of consumers from different markets. The
customers have a right to decide about any service which they want to take or not and it
will help the visitors’ for deciding their personal packages at a minimum prize level.
By the help of this decision, the managers will be able to create a deal which could
provide as many benefits to a customer as much money they spend on a tour package.
The customer would become capable of design their own traveling plans. They could
take control of their traveling activities. It will create a right for customers and they can
ask for extra services like WI-FI, meals, and luggage while they travel (Tang and Ge,
2019).
It could be understood that every decision has both positive and negative impact and
this decision also full of some negative impacts and factors. The related decision could
improve the cost of the organization and the managers of an organization need to
involve more resources and planning to provide the exact service demanded by the
consumers. It is necessary for making the customer satisfied with their services. The
organization needs to improve the availability of services for keeping the customers
happy and satisfied. They need to invest some of their financial amounts in planning
about giving the best services to their customers. When they will take this decision, the
number of operations would increase automatically in the organization and it will create
an effect on the performance of employees who are working with them.
According to the above factor, it can be said that the management team must try to
provide low-cost tour packages to their consumers as a substitute for individual
services. It will help them in reducing the level of different operations from the
organization and will increase the usefulness of the resources (Lee and Jain, 2018).
Describe the development of the new systems integration of Safari and express
(IT issue)
For the enlargement of this organization, it is becoming for them to involve an IT system
in their organizational culture. The IT systems are useful for the organization for storing,
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improving and sharing their information with the stakeholders and the consumers of that
organization. The IT system would help them in interacting with the different parties and
it will make possible the decision process for them. In the merger of Safari and Mainland
tour, the new system will include a lack of security and scalability.
Because of a lack of scalability the organization would not be able to collect the all
needed information which is related to the customers. It could create a negative impact
on their organizational operations as the new involved organization would not be able to
collect and review all the relevant information which are related to the different
customers and organization. It will become hard for the managers to measure the
behavior of the customers and in the result of this, they would be not able to plan new
and innovative strategies for it. It can affect negatively on the marketplace and brand
name of the organization and may create a negative thing in the mindset of the
consumers (Mwesiumo, et. al. 2019).
In the situation of lacking the factors of safety and security the organization may feel
difficulty for securing the data and information which are related to the consumers. With
the new IT system, the management team would try to collect all the information of
consumers and would become able to understand their behavior. The negative impact
of this decision may create a situation where the managers would not be able to secure
the needed information in a better way.
Now, it is becoming necessary for the managers to organize some policies in the above
direction for increasing their goodwill and brand value at the global market (Medina,
2017).
Describe the corporate governance of the combine management from both
companies have to decide policies, rule, agreement and management process. (IS
Issue).
The process of merger is full of some legal issues and policies. In the
process of merger and acquisition, both the organization Mainland
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express and Outback safari would face some legal practices. They have to
look at some legal policies in this process which are as follow:
 Difficulties of interest
In the process of merger, the organizations may face a situation of dispute
because of a different view related to various situations. Both
organizations maintain their individual views for a related situation and it
could because of a dispute between them. This situation can hit on the
performance scale of an individual employee.
 Issues of answerability
As the scenario discussed that both the organizations are merging with
each other and in this situation, they have to face various types of issues
which will be related to the responsibility of that organization. In this
situation, the managers would be not able to communicate effectively with
each other’s and because of this; the important information will not be
transfer with efficiency between the different departments of the
organization.
It is not difficult for both the organization to resolve this issue and they can
implement new strategies and planning to reduce them from their
organizational culture. The organization needs to involve a new IS system
in their organization for solving these issues. The IS system would help
them to create needed agreements and policies which could be helpful for
them. The system of IS would provide a positive impact between the
organizational operations and it would surely improve the productivity and
growth of the organization (Nicolau, 2019).
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Recommendation and conclusion
The above assignment made an impact on the merger process of two tour operating
organizations named Outback Safari and Mainland express. The above assignment
discussed the management policies of both the organizations and it described the
strategies which the need to implement in their strategic policies. The assignment
explained about both negative and positive aspects of the decision-making process in
the organization. From the help of above assignment, it could be concluded that the
customer satisfaction is the most important factor for both the organizations and they
need to focus on the strategies which could make the customers satisfied from the
services which they are providing them. By the help of the above assignment, it could
be concluded that for the merger process the managers need to involve effective
policies and planning to make efficiency in between the different operations of the
merger process. From the above assignment, some factors and issues of IT and are
system were recognized. This issue can create a barrier in front of the productivity
increment of company.
By the help of the above assignment, it could be recommended that the managers of
the organization need to implement an effective decision-making process in the
operations of an organization. The effective decision-making process would be helpful
for them to reduce the negative impacts of these issues. With the reflection of this
assignment, it can be recommended that the management team need to identify all the
objects of both the organization before the merger process. This strategy would provide
them help for achieving the targets of both the organizations in a better manner. Along
with this, the manager should try to involve IS and IT systems in their organizational
culture for resolving these issues for increasing the productivity of the organization.
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References
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May-2019].
Kawashima, T. D. (2016). Travel agencies and priests as spiritual leaders: The merits of
collaboration. Tourist Studies, 16(1), 40-56. Retrieved from:
https://journals.sagepub.com/doi/abs/10.1177/1468797615588430 [Accessed on: 19-
May-2019].
Kroon, D. P., & Noorderhaven, N. G. (2018). The role of occupational identification
during post-merger integration. Group & organization management, 43(2), 207-244.
Retrieved from: https://journals.sagepub.com/doi/full/10.1177/1059601116666168
[Accessed on: 19-May-2019].
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integrative framework. Journal of Travel Research, 57(6), 792-810. Retrieved from:
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May-2019].
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tourism growth occur?. Journal of Travel Research, 0047287518773919. Retrieved
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Medina, J. C. (2017). Making the decision to extend probation supervision at a local
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May-2019].
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