12 INFORMATION, STRATEGY AND CHANGE
A SWOT analysis
When a company’s performance is looking poor, it may need to make some changes. However, before the company can do this, it should establish where it is now through a strategic analysis. Acommonly used technique for this is the SWOT analysis. In this method, managers carry out an ‘external audit’ in which they examine their business and economic environment as well as the market conditions they face in order to understand the opportunities and threats to the company. Secondly, the organization needs to complete an
B Managing change 1
When a company is planning to make major changes, employees often react in negative ways. So managers need to persuade employees that change is necessary. An important point here is that 2
employees should be involved in
workplace decisions. Auseful approach is to get all employees to examine their operational
practices using a common framework. Clearly, 3
managers must place value on the contributions of staff at all levels, from the boardroom to the shopfloor. 4
As Albert Humphrey, who developed the SWOT analysis technique in the 1960s, asserts, managers must ‘ … stop thinking
Gaia SWOT analysis Strengths
Internal audit
• Staff are experienced and skilled at making visitors feel at home.
• Advertising costs have not been high because most advertising is done via the Internet.
• Accommodation and services are high quality and modern.
• The resort is well placed in an area of natural beauty close to town.
‘internal audit’ in which its strengths and weaknesses are compared with those of the competitors. This means that managers should look at all the functional areas: finance, HR, marketing and operations. The results of such audits are presented in a four-box summary of the business’s current strengths and weaknesses, and the opportunities and threats which will affect its future development.
From Jones, M. (2007). Analysing business performance. Hadford: Hadford University Press.
that the company is composed of individuals with individual job descriptions and a layer-on- layer authority structure’ (Humphrey & Groves, 2003)*. Only when comments and suggestions have been received from everyone, can the company start to consider its objectives and strategies for the future.
* Humphrey, A. & Groves, P. (2003). Turning a downturn into a major upturn. Finance Today, 7, 124–126.
From Pickwell, M. (2006). Introduction to business strategy. Hadford: Hadford University Press. p. 24.
Weaknesses
• A lot of money is tied up in real estate. • Sales figures are beginning to dip.
• Profits are down on the same period last year.We could make a loss this year.
• Some staff are absent a lot – through poor motivation.
• The resort is badly presented on its website and there are no links with third parties.
• Wages are increasing. • Management information is not readily available.
External audit
Opportunities
• Increased leisure time and good pension schemes allow ‘baby boomers’ to spend more money.
• A new tour operator with a global network has recently been in touch to discuss cooperation.
• The Internet is now a growing source of information and a tool for booking.
• There will be a new land release next to the resort.
Threats
• A new tourism developer has shown interest in the new land release and wants to build a luxury resort with all facilities.
• Local business taxes will increase next year.
• The national tourism board has been focusing attention on adventure holidays, because they want to target a younger generation.
95
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104 |
Page 105 |
Page 106 |
Page 107 |
Page 108 |
Page 109 |
Page 110 |
Page 111 |
Page 112 |
Page 113 |
Page 114 |
Page 115 |
Page 116 |
Page 117 |
Page 118 |
Page 119 |
Page 120 |
Page 121 |
Page 122 |
Page 123 |
Page 124 |
Page 125 |
Page 126 |
Page 127 |
Page 128 |
Page 129 |
Page 130 |
Page 131 |
Page 132 |
Page 133 |
Page 134 |
Page 135 |
Page 136
