In this report a detail discussion is going to be done regarding the various aspects of a small business in Auckland. The aspects of the business that is going to be discussed are regarding the strategies that are followed by the business, targets that it wants to achieve the means of achieving those targets and the various methods used for judging those factors. By definition a small business is can be a business in the locality employing 10 people to a manufacturing unit that has below 500 employees. So the business that is going to be taken in this article is a travel agency called travel zone. It is a small business in the locality which employs a total of 10 people most of who are also working in other places while working for travel zone. All the techniques are going to be used to evaluate this small organization.
2. Aim and scope of the strategic and implementation plan
The main aim of this plan is to study the progress of the business. This is the first year of the business and the aim of the owner of the business is to find out the profit that is this business has made. The owner of the business will continue with the business if in the end of the first year the business is capable of making a 2 per cent return on investment. If the profit is this much than the owner will continue the business and aim a higher rate of return but if the business has been unable to make a profit more than 2 per cent than the owner of the business will shutdown the business. The scope of the business that is to secure the basic rate of profit and plan for an increase of profit in comparison to the amount of profit that is made by the business this year. The aim for next year is to secure an 8 to 10 per cent return on investment, there is going to various strategies formed for this purpose. Strategies will be formed with the aim to have a 10 per cent return on investment in the next financial year, the plans are going to implemented and evaluated through proper systems that are going to designed in this report. (Teece 2010)
3. Strategic plan
The aim of the small business that is travel zone is to develop its current rate of profit that is 2 per cent return on investment in the first year of its business to a minimum of 10 per cent return on investment by the end of the next financial year. For the purpose the company will require some strategic plans that it is going to implement. Strategic plans are to use the resources available for the company that can be its man power and its material resources to gain maximum the targeted goal set by the company. Many types of strategies are being used in achieving these results.
Before the formation of strategies it is important to know what the core functions of the business are. First of all as the name suggests the main purpose of the business is to deal with the travel and tourism needs of the people. This includes purchasing tickets of train, air, buses and paying from the travel zone centre. It gives car and buses on rent for travel purposes. The customers can book hotels and make their payment in the outlet of the travel zone hotel and go to the place of visit without bothering about making the payment to the hotel or the means of transport, other than that the organization also arranges package tours of certain days in which the customers can pay a certain amount of booking for the package and enjoy the tour where the staying and car and the hotel bookings are done by the travel zone tour manager. They also make sure that the travellers can enjoy the various sights of the place as a local tour guide is arranged to be travelling with the group of travellers. The guide is practically going to stay with the people and guide them to each destination every day. This is the core operations of the business travel zone.
For the purpose of achieving the strategic plan there is going to be certain values, visions, directions, goals and key performance indicators decided for the business. In case the business is successful in achieving them the strategy will be properly implemented.
The first ethical responsibility of the company is to make sure that the customers are given what they are promised. The company should clearly lay down in the package regarding the things that are going to be provided in the tour and it should be made sure that these are provided to the customers. No hidden costs should be kept to make quick sale as this is going to be unethical and can cause long time losses to the organization.
There are some corporate social responsibility that is ought to be taken by any company and travel zone is going to be no different in this case. Travel zone is going to sign the UNWTO which is a CSR activity that is formed by the united nation task force and joined by the various tourism companies. This is against child sexual abuse, child labour and trafficking activity. The company is going to abide by the global code of ethics for tourism. This is one of the social activities that are going to undertaken by the company. (Pearson 2012)
This is a small business organization and hence there is a limited amount of reach of the company in the amount of promise that it can provide. Yet it is important for any company to be guided by a certain vision this is going to keep the people motivated toward fulfilling a common goal. The vision statement for the company is “keeping promise, being reliable and providing the best experience”. This is the value statement that is kept in the mind of the employee while serving the customers. This statement is a constant reminder of the fact that the company should not make hasty move to gain profit as it is the vision of the company to be honest. The company also have kept the scheme of taking only 30 per cent of the total fees before the trip the rest of which is taken after the trip when the customer is able to communicate or provide feedback about the trip is when the rest of the payment is going to be done. (Ogunlana 2010)
The competitive strategy that is going to be followed by the company is to create customer intimacy. There are various ways that can be used for creating a difference in the market to have a certain high level of operations, to develop a product that is superior to others and to create loyalty among the customers so that they become the repeat purchaser of the products. The customer loyalty can be considered as a prized possession for any business for example the operational efficiency or the product superiority is only meaningful when the customers avail it, the customers are considered as the king for a business. Various steps that are taken by the company to develop customer intimacy some of them are listed below
- The first and foremost point that is going to be considered in this business is to develop a relationship of trust with the customer this can only happen if the customers are freely able to convey their worry. Thus it is the responsibility of the executives of the business to have a good relationship with the customers. They are suppose to talk most frankly with the customers. It is customary to offer them with tea when they are at the office. The customers are given the contact number of the office and also it is mandatory for the employees to return any query mail immediately during the office hour. Each customer have to be treated alike even if the customer is here to buy a simple bus ticket or to purchase a tour package each has to be treated alike.
- The next most important point that the company arranges for developing a intimate relationship with the client is to allow the client to pay 70 percent of the package charges after the end of the trip while the customer is able to provide feedback to the company.
- The company is also arranging travels on payment of monthly basis, that is a person is able to purchase a tour by paying monthly once the stipulated amount is paid the customer is able to avail the trip.
These are some of the methods that are used by the organization to develop a close and intimate relationship with the Company.
Specific: the first goal of the company is to make sure that there is a 10 per cent conversion rate of the customers who inquire for the various facilities of the business service that is provided by the company
Measurable: this is measurable because the number is being fixed of each hundred customers that enquire for a service at least 10 should be availing the service. This is especially for the selling of the tour packages
Achievable: this is achievable because the current rate on the first year of the business is 5 percent and the rush has started to increase rapidly at the end of the first year and thus it is only feasible to target a 10 per cent conversion rate.
Relevant: this can be considered as a relevant target if the overall target of the company is to achieved
Timeline: the time line for achieving this is at the end of the year at the end of the financial year a detail evaluation is going to be done so the employees have one year to achieve the target.
Specific: to gain a positive feedback from each of the customer that comes to the business
Measurable: the measurement is going to be done through the feedback form that has to be signed by each of the customers in this feedback form there is one space where the customers have to tick whether they are satisfied with the service provided by the company and if they would like to recommend it to others. These are close ended questions; these closed ended questions play as a judge of whether the customers are satisfied with the services of the customer
Achievable: the goal is achievable because if proper service is given to the customers they are definitely going to like it.
Relevant: the company considers customer intimacy as one of its strong points so to have customer intimacy it is important to make them satisfied with the services
Timeline: the measurement of it is going to be seen each time a person fills up the form yet a general evaluation is going to be done at the end of the year.
Specific: the third overall goal of the company is to have a 10 per cent return on investment at the end of the financial year
Measurable: it is measurable because the amount of profit is going to be measured at the end of the financial year.
Achievable: the goal is achievable because the company on the first year has been capable of making 2 per cent return on investment and the amount of customers have increased since then in a huge amount.
Relevant: it is relevant because it is important for a company to have profit and the development of a company depends on the amount of profit made from the amount of investment that is done by the company and the best way to do this is to measure the amount of return on investment.
Goal one: the first goal is to convert the number of enquiries into fruitful business transaction. Two methods for doing so can be first of all the customers can be made aware of all the services offered by the company. Second is to provide suggestions according to the choices of the customers.
Second goal is to get positive feedback from the customers. First method of getting a positive feedback is by treating the customer properly and second is to fulfil the promises and also to take feedback of the customer during the tour and resolve any issue as soon as it occurs.
The third goal is to increase the return on investment. This first method to achieve it is by making marketing calls to possible customers and second is by providing advertisings or discounts on special occasions. (Davies, Walker & Grimshaw 2010)
Financial: the first aspect of the financial performance measure is to have 10 per cent return on investment. Second measure is to reduce the cost of operation from the first year as the connections has been properly formed in the first year.
Customers: the first performing indicator with the customer is to get a positive feedback from the customers and the second measure is to develop loyalty among the customer.
Internal: the first internal measure is to have a good atmosphere where the clients are entertained. Second is to develop good operation skills.
Learning and growth: the first aspect of the learning and growth involves the development of proper questionnaire to judge the profile of the customer. Second is to be able to have a good internal evaluation of the method of communication with the client to draw business (Astrachan 2010)
4. Implementation plan
The implementation plan for the proposed plan is going to involve developing activities and milestones for each of the plans and those can be completed in a specific time period. The resources have to be allocated for the function. The dependencies have to be evaluated and a contingency plan has to develop.
4.1 activities, milestones and timings
The various activities that are going to be undertaken to achieve the goal of the company involves providing proper marketing for the services that are provided by the business. The best way of marketing involves banners and hoardings in the local area, advertisements in the newspaper, distribution of leaflets and word of mouth. The company also need to satisfy each of its customers who undertake their service and also provide advantage to the customers who have once taken the service of the company.
The milestone for the above is to achieve more number of calls or enquiries from the customers, to get more satisfied customers through the number of positive ticks in the feedback form.
The measurement of the rate of success or failure is going to be done at the end of the financial year; some of the small factors will get studied regularly like the feedback form of the customers.
The two most important resources of the company are the financial resources and the human resources. The financial resources are going to be of prominent importance in case of marketing of the business and also to provide the quality of the service. the second most important thing that is going to be required id the human resources in the form of the employees, the employees ought to be responsible for carrying out the relationship with the customer which is one of the most prominent thing about the company.
The human resources of the company is one of the best that has been achieved by the company. The business is formed by some friends and family members and most of the employees in the organization are not mere salaried people they are part of the business and thus this one of the strongest dependencies of the organization.
The second most strong points are the environment. The business is set up on a place which is one of the places with least amount of competition. In the area where the business is situated there are no equal competition. The amount of competition that exists is from very small businesses that provide some of the part facilities of the company.
4.4 Contingency Plan
In case the business is unable to gain the required amount of return in investment than the business is going to stop the riskier part of its operation for a certain period of time. The package tours will be cancelled for a while. The business also plans to diversify in case the return on investment goes less than 2 per cent. Till then the company is going to introspect find the part that needs development and do the needful actions.( Rosewilliam, Roskell & Pandyan 2011)
In conclusion it can be said that every business needs a strategy. For making a successful strategy a business needs to form a goal. The goal needs to feasible in every aspect and there should a well thought out implementation plan for the business. It is also important to have a contingency plan for every business strategy.