Rimsha answered on
Jun 07 2021
Running Head: STRATEGIC MANAGEMENT IN TOURISM AND HOSPITALITY 1
STRATEGIC MANAGEMENT IN TOURISM AND HOSPITALITY 4
STRATEGIC MANAGEMENT IN TOURISM AND HOSPITALITY
Table of Content
Organizational history 3
Strategic development 3
ent organizational structure 4
ent strategy and goal 4
External environment of organization 5
Political factor 5
Economic Factor 5
Social Factor 5
Technological Factor 6
Environmental Factors 6
Internal environment of organization 7
Major issues of the organization 7
Strategic recommendations for the development of the business over the next 12 months 8
Tourism and hospitality industry are one of the biggest industries which support the economy. There are certain countries whose economy is dependent on the tourism and hospitality. With the increased in attraction among people towards the industry, number of organizations in the tourism and hospitality industry has been increasing with constant pace. It has been seen that rise in the number of organizations resulted in increase in the competition. There are many established organizations which faced the strong competition due to entry of new organization every time. This forced many of the organization to go through the existing strategies and developed the logistic plan to take future direction of the organization. This can be done through strategic management. strategic management can be defined as the process which involves setting of the objectives, analysis of the competitive environment, analysis of the internal organization, evaluation of the strategies and implementation of the strategies across the organization. Following assignment conduct the analysis of the organization for the strategic management for the next 12 months. The organization selected for the study is Thomas cook. This report provides the status of the organization, its internal and external analysis, major issues existing in the company and strategic goals for the next 12 months.
Thomas cook travel company was started by Thomas Cook in June 1841in Leicester. This company organize its first leisure trip from Leicester to Liverpool. Within four years, it was successful in organizing trip at the national level. Over the period, it has become the first travel company which market flying for leisure. Since 1841, company has organized several local and international holidays for people of England. In 2001, C&N Touristic AG which is one of the largest travel group in Germany become the sole owner of Thomas Cook and changed the name of the company as Thomas Cook AG and launched the company with new logo and
and identity. They managed to introduced the three-tier mass-market-
and strategy which include Thomas Cook, JMC and Sunset. In 2003, they launched the Thomas Cook Airlines. Apart from this, in 2007, merger of Thomas Cook AG and My Travel Group plc takes place and produce the organization as Thomas Cook plc. It has become the second largest leisure travel organization of the UK which is successful in providing wider range of holiday package to different destinations. In 2019, Thomas Cook become the world’s biggest successful leisure travel group with the sales of £7.8 billion with 19 million annual customers and 22,000 employees globally (The Telegraph, 2020).
For the strategic development, Thomas Cook is focusing on the digitalization strategy. It has been seen that internet become the major reason for the failure of the company as customers switch to online booking. Thomas Cook had many outlets for registration but the visit of people declines despite of the strategic placement of the outlets of the company as internet provide the opportunity to the people. It has been seen that company is suffering from heavy losses since past 5 years which resulted into near collapse experience. It is not because people stop taking holidays in Britain, as in 2018, around 60% of the population takes the holiday but the trend has been changed as people prefer beach holidays (The Guardian, 2020).
ently, after years of struggling with the changing trend and increase in the use of internet, company finally decided to undergo digitalization. They are accelerating the digital presence and use it as their core strategy. It has been seen that Thomas Cook is planning to have holiday comparison website with the aim to pay off their existing debt and increase their own
and strategy. They are interested in using their airline as a strategic approach for the reformation. This organization is now focusing on reforming the organization based on the changing behavior of the customers (travel weekly, 2020).
ent organizational structure
Thomas Cook followed the decentralized structure in the organization. The directors of the company need to follow the tasks and play crucial roles. The CEO of the organization is Peter Fankhauser. The Chairman of the Board is Frank Meysman. There are six other director of the company which are part of the board. Under CEO, there is chief financial officer and director named Sten Duagaard. Apart from this, there are chiefs of hotel and resort, chiefs of product and operation and Head of UK source market, chief of corporate affair and communication...