Write an essay of explaining what the main strategy development tools are and how they are used in business.
The strategic tools in an organization play a vital role in defining the strategic planning that understands the direction, strategy, and decision making regarding the allocation of the resources for practicing the strategies. Strategic management tools in organizations result in effectively dealing with an extensive collection of factors that are affecting the business. Such strategic management tools help in continuously monitoring the external and internal events for making the timely changes for the growth of the organisation. Therefore, such strategic management tools develop an encompassing approach for implementing, evaluating and formulating the decisions of the management which inturns results in organisations in achieving the goals and objectives. There are many different analysis techniques utilized in an organisation for the strategic planning such as the PEST analysis, SWOT analysis, Porters five forces, RBV, PROFIT, and CIA.
There are different management strategic tools and models that are employed for analysing the organisational decisions. Swot analysis is one of the simple but widely used tools that help to understand the strengths, weaknesses, opportunities, and threats that are involved in the business. The analysis helps in defining the project objectives and identifying the external and internal factors those are significant in achieving the objectives (Tassabehji and Isherwood, 2014). Strengths and Weaknesses are generally internal to the organisation, whereas the opportunities and threats are generally external. Such analysis s often plotted on the straightforward matrix of 2×2.SWOT analysis in the tourism industry is to identify the internal and the external factors of the industry that is in the favour or against the objectives of the industry (Tassabehji and Isherwood, 2014).
|
Strength · Travel industryhaving own act of planning represent better position in the market. · Better aspects of the business profile in getting the distant market benefits. · Tourism industry encourages the individual’s visits at some particular place and hence promoting the business (Kawai, 2017). Providing better convenience and facilities to the clients. · Helps the institution in improving the region infrastructure. · Attention to quality standards promotion. · Supply variation (Lee, Lee, and Lin, 2008) |
Opportunities’ · incorporated web marketing · The potential rise in the marketing budget increase · Cultural potential · Growing level of income in the budding countries · transformation and development in ICT · Demographic changes · Prospective requirement for the innovative products (Kawai, 2017). Developing rural experiences and venues for attracting the fresh audiences for the business and the leisure markets. · Encourage service accommodation and an exclusive variety of dining facilities (Balasubramanian, 2009). |
|
Weakness · Seasonal utilization of the labour and facilities. · A high ratio of the staff turnover · Lower productivity · Insufficient value chain coordination (Lee, Lee, and Lin, 2008). |
Threat · Much focus on marketing and not on the product development. · Visa restrictions. · A higher level of the competition globally · Lack of the required educational programmes. · Climate change and global warming (Muzumdar, 2013). |
While utilizing the SWOT analysis tools in the tourism industry it is to be ensured work on the internal and external factors on priority which includes the risk assessment ensuring the higher impact of the threats and opportunities are identified and deal accordingly (Kaynak, 2015).
Another tool that is useful in the tourism industry is the Porters five forces. According to Porter, five forces theory the factors that are influencing the tourism industry are recognized in relation to competition;
The buyers bargaining power; such force demonstrates the potency in bargaining position, predominantly the price, that the purchaser or consumer is having on above the suppliers (Kaynak, 2015).
The supplier bargaining power; Suppliers, which includes the employees, manipulates the profitability and attractiveness of the sector with the growing wages or prices thus raising the industrial costs and dropping the margins of profit (Asad, 2012). The strong supplier of the industry will control the goods and services supply in the tourism and the hospitality industry (Roper and Hodari, 2015).
The threat from the new entrants: New entrant threat dependent upon the difficulty of entering in to the tourism industry. This depends on the capability of generating the economies of experiences and scale, product differentiation opportunities, a capital amount that is necessary for purchasing in the industry and accessing the distributing channels (Fung, 2014). In the tourism industry, there are certain low barriers that are entering in certain sectors.
The threat of the substitutes: The Substitute industries provide the challenging products among offers so as to carry out the same purpose. The frequent technology growth keeps on varying the probable threat from the alternate products (Grebenshchikova and Yakushev, 2017). For example, the speedy expansion of video-conferencing among the hotel and tourism meetings acts as a substitute product (Olsen and Zhao, 2004).
Such combination of the factors helps in determine the survival and the economic value. The Porters five forces analysis in the industry provides opportunities for the industry to establish and communicates the distinctive or the unique positions for the businesses and in the case of the tourism industry this is critical (Pasanen, 2011).
The Porter’s five forces model supports in understanding the new ideas and business of the organisation in context of the buyers bargaining powers. Analysis of the five forces supports a great understanding towards the factors and driving the business for differentiating themselves (Önören, Arar and Yurdakul, 2017).
PEST analysis results in analysing the external macro-environment factors which are responsible for the existence of the organisation. Such tool is used for understanding the political, economic, socio-cultural and technological environment of the industry (Kampanje, 2012). Such tool is used for evaluating the growth or downfall of the market and among this the potential, position and business direction (User, 2018). Discussed are the PEST analysis tool in the industrial environment and its effect on the tourism industry.
Political:
Political factors internationally have a straight and profound impact on the tourism industry. However, it is regimes of the changing government nationally; the effect on the industry is forever direct. Political steadiness benefits the tourism industry in a great way. Tourism grows in an environment that is free of turmoil and cannot flourishes in an environment of terror or conflict (Yüksel, 2012).
Economy
Global economy conditions act as a significant factor affecting the tourism industry state. Under the flourishing economy, the consumers spend in a greater way on the leisure activities (Pappas, 2014)
Social factors:
Similarly the economic trends, social trends also shape the tourism industry. Customer preference in accommodation has in use a move in the latest years. Their first choice has moved in the favour of the private accommodations (Yoon, 2010).
Technological:
The technological factors have materialized as the demand facilitators among the tourism industry in the 21st century. Technology in an agreat way has facilitated communiqué and information transformation by connecting the gap among numerous parts of the globe. Tourism industry uses the information technology for serving the consumers in a better way (LIU and LI, 2017). Certainly, technology is a tourism industry enabler, with upending the usage of technology and working in favour of both the buyers and sellers. Technology shapes the travelling experiences at the different points (Jackson, 2006).
Environment factors:
The relationship of the tourism and the environment is very complex. Tourism industry has the potential of creating benefits for the environment while contributing towards the environment conservation and protection.
Legal factors:
The legal decision of the area also contributes in a great towards the tourism industry. The legal actions results the industry functioning properly according to the rules and regulations.
Conclusion:
Hence to conclude, the development of strategies through the management strategic tools is significant for the organisation as the entire structure of the organisation relies on this. The strategic tools and the plans are vital to understanding the business goals and developing the activities to achieve such goals. The strategic tools are utilized by the marketing participants for analysing the decisions
References
Asad, M. (2012). Porter Five Forces vs Resource Based View – A Comparison. SSRN Electronic Journal.
Balasubramanian, S. (2009). BPO: A Swot Analysis. SSRN Electronic Journal.
Fung, H. (2014). Using Porter Five Forces and Technology Acceptance Model to Predict Cloud Computing Adoption among IT Outsourcing Service Providers. Internet Technologies and Applications Research, 1(2), p.18.
Grebenshchikova, L. and Yakushev, N. (2017). Definition of Competitiveness of the Enterprise Using the Five Forces of M. Porter. Bulletin of Kalashnikov ISTU, 20(3), p.51.
Jackson, S. (2006). Coping with the PESTEL Factors in Safety and Security. INSIGHT, 8(3), pp.29-31.
Kampanje, B. (2012). Pestel Analysis of Malawi’s Non-Life Insurance Industry. SSRN Electronic Journal.
Kawai, T. (2017). The historicity and potential of Jungian analysis: another view of ‘SWOT’. Journal of Analytical Psychology, 62(5), pp.650-657.
Kaynak, E. (2015). Developing marketing strategy for a resource-based industry. Tourism Management, 6(3), pp.184-193.
Lee, K., Lee, T. and Lin, C. (2008). Channel Strategy of Food Tourism Industry. Tourism and Hospitality Planning & Development, 5(3), pp.247-256.
LIU, X. and LI, J. (2017). SWOT and PESTEL Analysis on the Coordinated Development of New Urbanization and Agricultural Modernization in Heilongjiang Reclamation Area. DEStech Transactions on Economics, Business and Management, (eced).
Muzumdar, P. (2013). Business Model Development Through Corporate Strategy Design: IBM SWOT Analysis. SSRN Electronic Journal.
Olsen, M. and Zhao, J. (2004). Industry change, environmental scanning and firm strategy: how is the hospitality industry doing?. Tourism and Hospitality Planning & Development, 1(1), pp.13-18.
Önören, M., Arar, T. and Yurdakul, G. (2017). Developing Competitive Strategies Based on SWOT Analysis in Porter s Five Forces Model by DANP. Journal of Business Research – Turk, 9(2), pp.511-528.
Pappas, N. (2014). Marketing Hospitality Industry in an Era of Crisis. Tourism Planning & Development, 12(3), pp.333-349.
Pasanen, M. (2011). Strategic Management Tools and Techniques in Smes. SSRN Electronic Journal.
Roper, A. and Hodari, D. (2015). Strategy tools: Contextual factors impacting use and usefulness. Tourism Management, 51, pp.1-12.
Tassabehji, R. and Isherwood, A. (2014). Management Use of Strategic Tools for Innovating During Turbulent Times. Strategic Change, 23(1-2), pp.63-80.
User, S. (2018). Tourism Marketing. [online] Solimarinternational.com. Available at: https://solimarinternational.com/what-we-do/tourism-marketing [Accessed 28 Apr. 2018].
Yoon, B. (2010). Strategic visualisation tools for managing technological information. Technology Analysis & Strategic Management, 22(3), pp.377-397.
Yüksel, I. (2012). Developing a Multi-Criteria Decision Making Model for PESTEL Analysis. International Journal of Business and Management, 7(24).
Essay Writing Service Features
Our Experience
No matter how complex your assignment is, we can find the right professional for your specific task. Contact Essay is an essay writing company that hires only the smartest minds to help you with your projects. Our expertise allows us to provide students with high-quality academic writing, editing & proofreading services.
Free Features
Free revision policy
$10Free bibliography & reference
$8Free title page
$8Free formatting
$8How Our Essay Writing Service Works
First, you will need to complete an order form. It's not difficult but, in case there is anything you find not to be clear, you may always call us so that we can guide you through it. On the order form, you will need to include some basic information concerning your order: subject, topic, number of pages, etc. We also encourage our clients to upload any relevant information or sources that will help.
Complete the order form
Once we have all the information and instructions that we need, we select the most suitable writer for your assignment. While everything seems to be clear, the writer, who has complete knowledge of the subject, may need clarification from you. It is at that point that you would receive a call or email from us.
Writer’s assignment
As soon as the writer has finished, it will be delivered both to the website and to your email address so that you will not miss it. If your deadline is close at hand, we will place a call to you to make sure that you receive the paper on time.
Completing the order and download