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Introduction of Tourism, Globalisation And Business Strategy Assignment
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Tourism is a cultural, social and economic phenomenon that entails people's movement to different countries. Therefore, it becomes necessary to provide tourism globalisation to boost economic revenue. Further, tourism develops the overall infrastructures of the country to create a cultural exchange between local citizens and foreigners. The tourism industry implements different strategies that help them develop its business. Moreover, the tourism industry implements some theories and stakeholder matrixes that effectively help them deal with the current changes and apply the recent trends regarding globalisation. Further, the tourism industry introduced strategies that will shape their future and develop a doctrine to ensure their long-term success in the business.
Background, mission, and vision of the organisation
The tourism industry like "Virgin Holidays" in the UK provides their effective help to travellers and tourists to have a quick tour to different countries. They provide more access to a diverse range of customers and provide effective deals on holiday’s package. The "Virgin Holidays" has implemented a corporate strategy model that provides effective help to them in maintaining their strategic position in the market. As per Almahrog et al. (2018), moreover, the presence of the stakeholder in the organisation provides their effective strategies and policies to run their business smoothly. The "Virgin Holidays" implemented some globalisation changes regarding their travelling, transportation, visa application, hotel arrangements, and many more, which help them create sustainability in the environment and fulfill the customers' needs. Due to the positive impact of tourism, the UK is expected to provide support to almost 3.8 million jobs (Virgin holidays.co.uk, 2022).
The "Virgin Holidays" mission is to preserve the world for everyone to have fun and enjoy the environment and aim to make a positive contribution towards the environment by helping the tourists and local travellers enjoy their destination (Virgin holidays.co.uk, 2022).
The "Virgin Holidays" vision is to provide tourism to everyone and create an opportunity for the world through applying sustainability to all people present in the world (Virgin holidays.co.uk, 2022).
Critical analysis and identification of the key stakeholders and their needs
In developing or establishing any business role, the stakeholder plays a great role in making strong strategic decisions and development programs for the organisation. Therefore, the tourism companies like Virgin Holidays implement stakeholder management practices in their organisation that help them run their business smoothly and provide a competitive advantage over others. Therefore, the "Virgin Holidays" tourism company has their stakeholders like local residents, tourism developers, business associations, employees, government agencies, and tourists (Virgin holidays.co.uk, 2022). All these stakeholders present in the "Virgin Holidays" provide effective help in achieving their strategic objectives and meeting their goals.
Tourists
The tourist is one of the most important key players that provide effective help to the tourism industry, including destinations, sites, and attractions for various different places (Pyke et al. 2018). The tourist is one of the major stakeholders for the tourism company, as they spend money, promote attraction, and spread awareness through social media. The role of the tourist is quite important for the "Virgin Holidays" Company in developing their business.
Tour operation
The tourism employees and professionals are included in this section by the "Virgin Holidays" Company. The role of tour operation and the overall team related to the operation and selection of the places for tourism. According to Roxas et al. (2020), due to the continuous efforts of the stakeholders and management practices, the UK has become the fastest-growing sector regarding tourism. Moreover, it can be said that there is an expected rate of 11% growth in the tourism sector in the UK by 2025.
Local residents
The local residents can create a lot of opportunities for tourist development. The local residents can create legitimate concerns and resist the further development of tourism (Petrova et al. 2018). Therefore, the “Virgin Holidays” has involved their decision-making process wherever appropriate. The role of the local residents creates distinct values and cultures that provide help to the tourist destination in increasing their values.
Government
The government plays an important role in developing the tourism business. They are responsible for planning tourism activities at national and international levels. The government set various policies and strategies implemented by them for "Virgin Holidays" (Niñerola et al. 2019). Moreover, the government is responsible for having an overview of the transportation facilities, roads, railways and promoting various destinations for “Virgin Holidays”.
Stakeholder analysis and their needs
Getting Projects into Shape
The stakeholder's analysis implemented by the “Virgin Holidays” provides help to them in dealing with the powerful stakeholders like the tourists. Here, the tourist provides more support to the tourist and improves the quality of tourism's overall project.
Winning Resources
The “Virgin Holidays” gain additional support from the government in obtaining various resources like infrastructure facilities that include roadways connections, travelling facilities, railways, and other important facilities that connect to tourism development. According to Lorenzo-Romero et al. (2021), the government's additional support helps manage the time and tourists to become more successful.
Building Understanding
The "Virgin Holidays" provide proper communication with their stakeholders to better understand the facts and destination planning’s (Lindberg et al. 2019). This will help the "Virgin Holidays" in building a proper understanding and creates more benefits to the tourism industry.
Getting Ahead of the Game
The "Virgin Holidays" creates a proper set of relationships with their stakeholders and anticipate their strategies and policies for their betterment (Font and Lynes, 2018). These further help the "Virgin Holidays" in predicting their reaction to over-tourism. This will better provide "Virgin Holidays" a proper plan of action that creates more win support to their tourism.
External environmental analysis (PEST/ Scenario Planning/Competitor Analysis)
PEST Analysis
Political
- The tourism company effectively runs their business with the help of the government through obtaining open borders with other countries for travelling.
- The government creates more stability for the tourism company to run their business.
- Further, the government implements tax incentives for travelling in different countries.
Economic
- Economic factors like an increase in disposable income can nurture economic development.
- Moreover, with the rising effectiveness of the tourism industry, the organisation can create sharing economy.
Socio-cultural
- There can be various kinds of social pressure that can create barriers for the tourism industry.
- There can be a racial difference in the field of travelling. Therefore, the acceptance of racial factors can be effective for tourism.
Technological
- Better transport facilities
- Interconnected railways lines
- Better infrastructure
- Easy travelling routes
Scenario Planning for tourism
Scenario planning is one of the effective ways the tourism industry attempts and calculates the effects of the alternative decisions of the travellers. Moreover, scenario planning is effective for both the medium and long-term future and fully provides anticipation and creativity to their business (Buhalis, 2019). This will provide better looks for upcoming results implemented through scenario planning.
Some planning processes provide help to the "Virgin Holidays" in maintaining the overall planning of the business.
Identify the scope
The overall scenario planning will provide effective help to the "Virgin Holidays" in identifying their scopes and further developing their business.
Identify the time frame.
In this section, the "Virgin Holidays" break the period into three sections that will create their business to the top level (Chilufya et al. 2019). The "Virgin Holidays" break their business planning into three stages: short-term, medium-term, and long-term business development periods.
Analyze the key drivers for change
In this section, the "Virgin Holidays" clearly analyse the PESTLE that provides better influences to their business. Further, the PESTLE analysis creates more effective ways to consider changes and adaptation of new technological, economic, social, and other factors (Cockburn-Wootten et al. 2018).
Selecting opposing key drivers to create different, feasible scenarios
In this section, the "Virgin Holidays" analyse their overall key drivers like policies, strategies, planning, and other factors that help them run their business (Danish and Wang, 2018). This provides a best case, worst case, and other options required for developing the business.
Considerable changes
In this section, the "Virgin Holidays" evaluate the most important factors that effectively help their business expand and provide better services to their consumers (Dwyer and ?avlek, 2019).
NOISE analysis
A NOISE analysis is an alternative to SWOT analysis which allows the decision-makers to analyze a business’s current state and helps to create a specific improvement. It is a solution focus method that helps to build goals and knowledge to overcome obstacles (Kukanja et al. 2020). To conduct a Noise analysis some steps need to follow.
First step - deciding a goal
A group consisting of a maximum of 5 to 20 people needed to start deciding a perfect goal. The goal should be about how the business of tourism is needed in a year, and how the improvement will be implemented. Each department of the business needed to be accountable, and how to foster culture accountability within the business organization. The selection of the goal should be on the perspective of the company's needs and requirements (Hole et al. 2019). A goal must fulfil all the objectives of the organisation.
Second step - creating a NOISE chart
A NOISE chart should be on a large paper sheet. Need to draw a clean circle in the middle of the paper with four radiating quadrants towards the out from the center (Baptista et al. 2019). This will be the format of the chart.
Third step -beginning of the analysis
Collaboration of the key elements needed to be done that are composed as NOISE acronyms is Strength, Improvement, expectation, opportunities, and needs (Kitsios et al. 2020). Four of the acronym will be placed on the quadrant and in the middle centre place Expectation.
Fourth step - Identify cluster
Ideas for Grouping clusters on each quadrant needed to fit together. There is also a need for the outlier ideas that do not fit, and then each cluster requires names regarding the general theme.
Fifth step - Cluster categories vote
Each team needs to vote on the most relevant idea (Ushakov et al. 2019). The system of the vote can be tokenized or dot.
Sixth step - Create milestone and measurement
Team leaders will be asked to develop milestones and measurements to progress towards the achievement.
Seventh Step - Creation of Plan document
This step is about how the team leader will categorize the plans into a broad one and each member needs to agree with the plan before implementation (Baptista et al. 2019). Feedback also needed to be taken. NOISE analysis should be reviewed periodically for the success of the company.
Ansoff Matrix and alternative strategic direction and choice
Ansoff Matrix is also known as the Grid of Product Expansion which is a tool to plan and analyse growth (Runtunuwu, 2020). This matrix has four strategies that help any affirm to grow and analyse all the risks that are associated with the strategies. Four number of strategies of Ansoff Matrix are:
- Penetration of Market which is focused on the sale increase of "existing products to an existing market" In the strategy of penetration of market it can be worked by decreasing price for attracting the customers, increasing the distribution and promotion efforts, and by acquiring any competitor in the same market.
- Development of Product focuses on "introducing new products to an existing market". It is the strategy that can be innovated by investing in the development and research sector to develop modern products to serve the market (Peristiwo, 2020), by acquiring products of competitors and merging all the resources that are to develop a modern product that meets the existing need of that market, and by creating a strategic partnership with other organisation to gain the distribution of partner’s own brand or channel.
- Market development focuses on "entering a new market using existing products". It involves approaches such as serving a segment of different customers or entrance to a domestic market or entering a foreign market.
- Diversification focuses on "entering a new market with new products ' (Hole et al. 2019). All of the first three are least risky but diversification is the riskiest.
Ansoff Matrix strategies
(Source: Kukanja et al. 2020)
Conclusion and Recommendation for a three-time period
This assignment contains the details of tourism and globalization and business strategy followed by the company name Virgin Holidays. All the details about the mission and vision of the company have been mentioned in this assignment. The background of the organisation is also mentioned here. Critical analysis and identification of the stakeholder of the company have been elaborated precisely. Both the external and internal stakeholders are important for the company and projects are also discussed in this part of the assignment. The needs of the stakeholders are well defined in this research work. External environmental analysis has been done with the help of PEST/ Scenario Planning/Competitor Analysis. Those analyses are detailed and explained with figures and structures. NOISE analysis has been done to understand the facts about business development. Analysis of NOISE has been illustrated with a step-by-step process that defines the need and requirement of any firm to start. After that, the Ansoff Matrix has been done precisely by illustrating all the strategies that the matrix analyses to understand and evaluate the strategies for growth. All the strategies of the Ansoff Matrix have been discussed with proper knowledge.
Tourism and globalization are important properties for the world economy so there needs to be an improvement in the company named Virgin Holidays. The company's workplace needed some skilled workers who could organise the company more suitable. There are needs of a good management team for attending the customers. All the guests or the customer should be treated well so that next time they choose the same company for their tourism purpose. Companies should follow all the protocols for the Covid-19 that is more hygiene should be maintained on the linked hotels so that no customers should complain about it. Hotel rooms are needed to sanitize time to time. People like to choose only when the suppliers are genuine and respect human rights and also the environment. This way the globalization of tourism will reach genuine people and people will visit more. All the Matrix and analysis mentioned here will help to 0organised more innovative developed business in tourism.
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