GUATSON TRAVEL AND TOURS INC.STRAMA PAPER
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GUATSON TRAVEL AND TOURS INC.
I. Executive Summary A recent assessment of the tourism industry in the country led to revelation that Philippines is yet to fulfill its considerable potential and establish itself as a premier tourist destination in Asia, taking advantage of the increasing development of the Asia Pacific region into one of the world’s fastest growing tourist regions. To give an impetus to tourism, the Philippines government has adopted five broad policies and six strategic programs. They are: • Focusing on agricultural modernization • Leveling the playing field in terms of access to economic opportunities • Strengthening the capacity of the State • Sharpening the country’s global competitiveness • Using foreign policy in aid of development • The related strategic programs comprise: • Modernization of the rural sector • Creating a world class service sector • Promoting domestic competition • Creating magnets for foreign investment and development aid • Enhancing the assets of the poor • Modernizing the political and government administrative systems. It is the intention of the Government of the Philippines to re-position the country in the regional and long haul international tourism markets, moving it into a path of higher growth through a number of measures. These include continuing to improve accessibility to key tourist destinations, liberalizing civil aviation, facilitating investment into tourism, upgrading existing tourism products, investing in human resources development and conducting niche and mass marketing campaigns. Through these measures, it is hoped that a ‘tourism culture’ will be instilled among Filipinos. As the backbone of development of any economy, the provision of infrastructure is a prerequisite towards attaining economic growth and improving the country’s productive capacity. The anticipated growth of the economy is expected to exert more pressure on infrastructure support facilities. There are two major objectives for the infrastructure sector in the long-term: • To provide adequate, convenient, fast and safe facilities and competitively priced services to meet the primary needs of the population and • To provide support facilities for the productive sectors and act as catalyst of development in desired areas. A travel agency is a retail business that sells travel related products and services to customers on behalf of suppliers such as airlines, car rentals, cruise lines, hotels, railways, sightseeing tours and package holidays that combine several products. In addition to dealing with ordinary tourists most travel agencies have a separate department devoted to making travel arrangements for business travelers and some travel agencies specialize in commercial and business travel only. There are also travel agencies that serve as general sales agents for foreign travel companies, allowing them to have offices in countries other than where their headquarters are located.
CHAPTER 1 INTRODUCTION Tourism is travel for recreational, leisure, or business purposes. Tourisms vital for many countries due to large intake of money for business with their goods and services and the opportunity for employment in the service industries associated with tourism. These service industries includes transportation services, such as airlines, cruise ships and taxis; hospitality services such as accommodations including hotels and resorts; entertainment venues, such as amusements park, casinos, shopping malls, various music venues, and theaters. A travel agency is a retail business that sells travel related products and services to customers on behalf of suppliers such as airlines, car rentals, cruise lines, hotels, railways, sightseeing tours and package holidays that combine several products. In addition to dealing with ordinary tourists most travel agencies have a separate department devoted to making travel arrangements for business travelers and some travel agencies specialize in commercial and business travel only. A.
Company Profile 1. Brief Background Guatson Travel is one of the leading international and local travel companies in Asia. Specialization is Airline Booking and Ticketing, also offer services on: Visa Consultation and Assistance, passport processing, package tours, and international and local travel with hotel reservation. Started at year 1979 by Benito Tan its President located at Aurora Building, Arquiza St., corner Jorge Bocobo St., Ermita, Metro Manila, Philippines. Purpose for which the corporation was organized a. Primary Travel Agent and b. Secondary other businesses related to travel agency services to clients. That comes up with your needs and expectations, providing you with first-class services while enjoying our competitive and reasonable prices. Guatson Travel guiding you to the World! 2. Services The travel and tourism market is separated into main categories: business and leisure travel. The market is further separated into domestic and international travel. Business travel can be divided into two categories: the medium to large corporate account and the small independent businessman. Leisure travelers are classified according to the types of trips they take, income, or age. The four primary leisure travelers are: a. Adventure, special interest, honey moon, and sight seeing trips b. High income travelers c. Budget conscious travelers d. Families, students and seniors Focusing on adventure travel and tourism, below is the list of Guatson’s services: a. Domestic and International Airfare ticketing b. Domestic and International Tour Packages c. Passport, Visa, Immigration, and Special Student Permit d. Travel Consultation e. Hotel and Resort Reservation f. Transportation Rentals g. Excursions h. Airport Transfer i. All kinds of water sports Guatson’s serves the adventure travel market as a top quality, full service provider. All suppliers with whom Guatson’s deals with are top notch professionals with accomplished backgrounds. Guatsons has established relationships with providers of travel related services. Major airlines has been selected as their primary ticket provider because they do not cap the agent’s profit on tickets which allows them to capture the 10% margin on ticket sales which is the industry standard for many years. Below is the list of Guatsons’ airline primary ticket provider: a. Philippine Airline b. Cebu Pacific c. Zest Air Guatsons work with clients individually and pro actively approaching each travel engagement thoughtfully and with full attention to clients specific travel needs. Due to this, Guatsons was able to develop a repeat business base of loyal customers in order to create sufficient sales. Guatsons seek to achieve service excellence by responding to the needs of their largest market. Guatson prioritize quality over quantity. As an evidence of Guatsons quality customer’s service, below id the list of some corporate customers of Guatsons: i. Private Company ii. Foreign travelers iii. Schools 3. Main Competitive Advantage Competitive advantage occurs when an organization acquires or develops an attribute on combination of attributes that allows it to out perform its competitors.
4. Current Revenue Size and Profit 5. Major Market Served B. Paper Design and Research Methodology 1. Data Requirements and Sources a. Primary Sources b. Secondary sources i. New items and Articles ii. References 2. Research Methodology This study uses Descriptive method which is concerned with the description of data and characteristics about a population. The goal is the acquisition of factual, accurate and systematic data that can be used in averages, frequencies and similar statistical calculations. Descriptive studies seldom involve experimentation, as they are more concerned with naturally occurring phenomena than with the observation of controlled situations.
CHAPTER 2 BUSINESS VISION/ MISSION STATEMENT Vision and Mission Statement are essential to every company. These are statements signify what the company really wants to achieve in their undertakings, what the company really wants to become in the future, and how the company projects itself to the public. Vision Statement defines what the business while mission statement specifies what the business wants to become in the future. A. Statement of the Current Vision and Mission Statements Guatson have not stated any mission and vision. B. Critiquing of the Current Vision and Mission Statements None will be criticized as Guatsons does not have stated vision and mission statements. A clear vision and mission statement is important to effectively establishing objectives and formulating strategies since it reveals what an organization intends to convey. To attain effective vision and mission statements, it is important that these include the Nine Essential Components of a vision and mission statement according to Fred R. David. C. Recommendation of the Vision and Mission Statements Guatsons currently does not have any stated vision and mission statements. Considering the vision and mission of the top ten travels and tours agencies in the Philippines, below are the recommendations in proposing Guatsons vision and mission statements:
1. Customers Customers are the reason for businesses to be successful; therefore, they should always be given as emphasis to be the reason for existence.
2. Services Aside from customers, services should also be given importance in the creation of vision and mission statements for these are what the business is all about.
3. Market Market should be included in the vision and mission statements so the customers will know where the company is catering its services.
4. Technology The use of technology should be part of the company’s vision and mission. This should be included so the customers will know that it is doing its best in producing quality customer services thru the help of technological advancement.
5. Concern for Survival, Growth, and Profitability The company’s concern for their survival, growth and profitability should be clearly defines in the vision and mission statements to give assurance to the shareholders and employees their willingness to make the company survive, to let the business grow, and earn profitability allowing shareholders to receive a good return on their investment.
6. Philosophy Business is not just about making money and let the business grow. A good business is committed in giving significant contributions to the society.
7. Self Concept Every business wants to be recognized for their own unique advantage over their competing firms. The company wants to be known for providing the best quality to their customers.
8. Concerned for Public Image Concerned for public image should be included in vision and mission statements to have a better social responsibility.
9. Concerned for Employees Concerned for employees should be specified n vision and mission statements. Employees should be included because they are the one who are behind the success of the company. This will serve as a motivation for them to strive harder because they know that the company is giving important to them. D. Proposed Vision and Mission Statements To be the leading travel and tour agency in the Philippines.
CHAPTER 3 EXTERNAL ANALYSIS The external analysis includes general environment, industry, and competitive analysis. It is a way in which a company understands how it relates to the environment in which it operates. This will allow the researchers to summarize and evaluate economic, social, cultural, demographic, environmental, political, governmental, legal, technological, and competitive information which will identify the company’s opportunities and threats. A. General Environment
1. Socio Environment a. Philippines is favored by Asians and other nationals as a travel destinations The Philippines is one of the most sought after travel destinations in Asia. With its unique and diverse culture, visitors from both sides of the world cannot help but wonder at the beauty and attractiveness of this country. Its diverse and interesting culture is a result of its colorful past. Travel to Philippines and discover the wonders of the country. Come across the beautiful world-class white sand beach resorts like Boracay and Panglao. Visit the well-known and enchanting diving spots in Palawan, Bohol, Cebu, Puerto Galera, Subic and Coron Bay. Uncover the captivating view of the volcanoes in Taal, Albay and Negros and mountains like Baguio where travel adventure seekers want to go. Explore the hundreds of scenic tourist destinations that Philippines can offer. Philippines are one of the travel destinations in Asia that foreigners want to spend their vacation holidays. Because of the tropical settings that the Island Philippines is located, people around the world want to experience the enchanting and romantic moment living in the paradise. b. Increase Inflation Rate Headline inflation rate in November continued to be stable, as price increases of food and clothing eased, according to the National Economic and Development Authority. From January to November this year, the inflation rate registered 3.8 percent, which is within the 2010 target of 3.5 to 5.5 percent. October registered the lowest inflation rate in 2010 at 2.8 percent. Moreover, compared to October this year, commodity groups under food, beverage and tobacco (FBT) and clothing registered slower annual price increases in November. c. Global Economic Recession A recession has many attributes that can occur simultaneously and includes declines in component measures of economic activity (GDP) such as consumption, investment, government spending, and net export activity. These summary measures reflect underlying drivers such as employment levels and skills, household savings rates, corporate investment decisions, interest rates, demographics, and government policies. d. Increasing Number of Overseas Filipino Workers (OFW’s) and Overseas Contract Workers ( OCW’s) The number of overseas Filipino workers (OFW) continues to increase as more countries have opened their doors to foreign workers.
This is a 20-percent increase compared to last year, she said. Nationwide, the Philippines deploy an average of 3,000 OFWs daily, at present; there are eight million overseas Filipino workers. There are by latest estimates 8.2 million Filipino men and women living and working abroad, which means that one of every 10 Filipinos are residing in a foreign land. They are deployed in k94 countries around the world. There are by latest estimates 8.2 million Filipino men and women living and working abroad, which means that one of every 10 Filipinos are residing in a foreign land. They are deployed in k94 countries around the world.
2. Economic Environment The Philippines economy is unique in East Asia for having a large service sector and private consumption comprising around three quarters of the economy. The manufacturing sector is comparatively small and public and private investment is very low. Unemployment and underemployment continue to remain high. The prospect of securing a well-paying job is beyond the reach of many, especially young adults under the age of 25 that comprise about half of the unemployed. Under these conditions, many Filipinos migrate overseas to secure better paying employment. With a good command of the English language they are attractive in the global labour market. It is estimated that 9 to 11 million Filipinos are currently working overseas. Remittances from these overseas workers help drive the consumption-fuelled Philippines economy and accounted for about 10 per cent of the country’s GDP in 2009. Overseas remittances play an important macro-economy stabilizing role, but their pro-poor dimensions are questionable. Overseas remittances are disproportionately important components of middle- and high-income households; poorer households have little access to them.
3. Political Governmental and Legal Environment The political system of the Philippines occurs within an organized framework of a presidential, representative, and democratic republic with the president as both the head of state and the head of government within a pluriform multi-party system. The three brunches of government, the law-making body or the legislative branch, the law-enforcing body or the executive branch and the law-interpreting body or the judicial branch forms political system of the Philippines. The Philippine legal system is predominantly derived from Spanish and American law, and its laws are enacted by Congress. Having been under the colonial rule of Spain and subsequently the United States, it is not surprising that the Philippines would base much of its laws and court system on the Spanish and American models. The Revised Penal Code (law which defines and punishes crimes), for example, is mostly derived from Spanish criminal law. Laws affecting commerce (such as negotiable instruments, banks, corporations and securities), on the other hand, are of American origins. In fact, the Philippine Constitution itself is modeled after the US Constitution.
4. Technological Environment a. Technological Advancement With the use of internet, the former travel market place has been completely changed. It allows travel agencies to directly reach their potential customers through their own websites. This increases sales as they develop online booking and online ticketing capabilities in their own websites. Also, it allows visitors to compare hotel and flight rates with multiple companies for free. They often allow visitors to sort the travel packages by amenities, price and proximity to a city or landmark. All travel sites that sell hotels online work together with operational booking systems, suppliers, and hotels directly to search for room inventories. Once the travel site sells a hotel, the site will try to get a confirmation for this hotel. Once confirmed or not, the customer is contacted with results. This means that booking a hotel on a travel website will not necessarily result in an instant answer. Only some hotels on a travel websites can be confirmed instantly. As different travel websites work with different suppliers together, each sites has different hotels that it can confirm instantly. b. Industry Analysis Industry structure can be analyzed by using Michael Porter’s framework competition in an industry. Porters identify five basic competitive forces which determine the state of competition and its underlying economic structure. Industry analysis is a technique to understand the forces acting on an organization within its industry and to determine how the organization may be re-organized to gain a competitive advantage. Industry analysis may be used in several ways to guide strategic decisions.
1. Industry History Philippine tourism started to flourish in the 1970s up to 1980’s, but in the mid 1980’s, the growth of the Philippine tourism started to slow down. One of the major evidence of the slow growth is the average length of tourist stay of 8.9 days in 1988 down from 12.6 days. In 1987, this growth was slower compared to other countries in Southeast Asia. Signs of a faster growth showed up in the early 1990s. About 1.2 million tourists visited the Philippines in 1992, which was a record high in the number of tourist visits since 1989. The tourism growth of the year of 1992 gave the Department of Tourism a reason to forecast a positive outlook for the future years. In 2000, the Philippines’ tourist arrivals totaled 2.2 million. In 2003 it totaled 2,838,000, a growth of almost 29%, and it is expected to grow as much as 3.4 million in 2007. In the first quarter of 2007, the tourist arrival in the Philippines grew as much as 20% in same period last year. In the period of January to September 2009 alone, the government recorded 5.2 million tourists visiting the country.
2. Industry Profile
a. General Information The Philippines comprises 7,107 islands grouped into three regions, Luzon, Visayas, and Mindanao, covering a land area of 115,739 m². (300,000 km²). The capital city is Manila, and the time zone is GMT + 8 hours.
b. Transportation The Philippines has different means of transportation. Jeepneys, taxis, and buses are on every main and sub thoroughfares that include Pedi cabs and the thrifty tricycles that roam the city streets. MRT (Metro Rail Transit), and LRT (Light Rail Transit) are also accessible in the main commercial districts. Sea and air transport are the most popular means of transportation getting to other parts of the country. The Philippines has its airports and seaports situated throughout the country. The Philippine government is currently spending more to improve Philippine infrastructure to boost not only tourism, but also trade and commerce.
c. Events The World Pyro Olympics is held in the Philippines every year since December 2005. Foreigners come to the country to support their own countries joining in the competition. In the 2005 Southeast Asian Games that was held in the country, government officials took advantage of the games to show the tourist spots around the country. The beauty pageant Miss Earth is held in the Philippines every year. The competition is also used to advertise the beauty of the country around the world. The Philippine calendar overflows with festivals the whole year round. Participating in these festivals provide tourists a better understanding of Filipino culture – modern, traditional, religious and mythical – and its roots.
The following are Procession of the Black Nazarene, January, Metro§the main festivals: Manila. It is a large event with thousands of barefoot men parading through the streets carrying a life-sized, black wooden statue of Jesus of Nazarene. Pilgrims from all over the country attend, wanting to Ati-Atihan Festival,§touch the statue in the hope of a miracle. January, Panay. It is the most colorful among Philippine fiestas and many consider it as the Mother of All festivals in the Philippine. Revelers paint their faces with black soot and wear bright, outlandish costumes as they dance for the last three days of this two week-long festival. Religious and non-religious folk alike observe this day of Sinulog§parades, dancing and music, there may even be beer to be had. festival January, Cebu City. The festival, the country’s biggest, features a street parade with participants in bright-colored costumes dancing to the rhythm of drums, trumpets, and native gongs. Smaller versions of the festival are held in various parts of the province, also to celebrate, and honor the Santo Niño. There is also a “Sinulog sa Kabataan”, performed by the youths of Cebu a week before the grand Moriones Festival March-April, Marinduque. The Moriones is an§parade. annual festival held on Holy Week on the island of Marinduque, Philippines. The “Moriones” are men and women in costumes and masks replicating the garb of biblical Roman soldiers as interpreted by local folks. The Moriones or Moryonan tradition has inspired the creation of other festivals in the Philippines where cultural practices or folk Pahiyas festival May,§history is turned into street festivals. Lucban, on the border of Quezon City. This festival is in honor of San Isidro where the town celebrates by colourfully decorating the town with fruits, vegetables, flowers,and Kiping, which are imitation leaves Flores de Mayo May. Flores de Mayo is a§made from rice-starch. Catholic festival held in the Philippines in the month of May. It lasts for a month, and is held in honor of the Virgin Mary. The Santa Cruzan is a parade held on the last day of Flores de Mayo in honor of Reyna Pagoda-Sa-Wawa festival July, Bocaue. In the town of Bocaue in§Elena. Bulacan province, on the First Sunday of July, The festival celebrate the discovery of the miraculous cross floating on the Bocaue river 200 years ago. A large pagoda is sailed down the river WaWa and if your luck enough to ride on the pagoda, it is said that your life will be improved and you will have good luck for the year. d. Famous Tourist Intramuros, a walled city in Manila, was§Spots built by the Spanish in the 16th century. Originally, Manila‘s boundaries were the city walls. But due to the growing size of the city, newer buildings were built outside these walls. As of today, Intramuros contains museums, Manila’s vibrant party scene rivals those§churches and an old fort. of Shanghai and the nightlife is amongst the most underrated in the world with the Filipinos penchant for parties and fiestas. Somewhere in the archipelago, there is at least one fiesta being celebrated 365 days a year (By Third Week of January - head off to Kalibo for the Asia’s version of the Mardi Gras). Manila, Cebu and Boracay are the ground zero for parties - pool parties, yacht parties, rave and fashion Makati City is the modern face of Manila, in complete§events. contrast to Intramuros. Major malls, business centers, hotels are situated in Makati City. Lined with modern high rise buildings, the Aklan is one of the most§Makati skyline is the best in the country. visited provinces in the Philippines not only because of its beaches but also of its popular yearly colorful event which is the Ati-Atihan Chocolate Hills are limestone hills that turn§Festival in Kalibo. brown during the summer. Chocolate Hills are found in the island province of Bohol, which is also the home of one of the smallest primates in the world—the Philippine Tarsier. Bohol’s many other natural attractions such as the majestic Iwahig River, Dagohoy Peak and virginal caves in the town of Danao, as well as the beaches of Panglao The Hanging Coffins of Sagada and the§Island must not be missed.
Banaue Rice Terraces are worth a visit in the Northern Philippines. The rice terraces were carved out of mountains thousands of years ago and by far the most extensive of its kind in the world (longer and bigger than those in Indonesia) with sophisticated irrigation and engineering Taal Volcano, one§that was unthinkable during the time it was built. of the smallest active volcanoes in the world, sits on a lake and is just an hour away from Manila. The fresh cool air off the Tagaytay Ridge provides a spectacular view of the lake and the volcano. Visitors should confirm whether hiking to the crater is safe or not before North of Manila, take the rough road and go to§attempting to do so. Mt. Pinatubo, the volcano which caused a massive eruption in 1991. Now you can marvel at the volcano up close and swim inside its crater. The last eruption was one of the biggest during the last century and The Hundred§lowered the global temperature by at least a degree. Islands, also located in the Northern Philippines, is a group of more that 400 islets with coral reefs surrounding the islets. These islands are famous for their beaches and the coral reefs, which can be explored About two thousand years ago, mountains in Northern§by snorkeling. Luzon were carved by indigenous people to form what is now the Banaue Rice Terraces. The rice terraces cover 4,000 square miles (10,000 km2) of mountainside. The Banaue Rice Terraces is a UNESCO World Heritage The province of§site and is said to be the 8th wonder of the world. Palawan is one of the most beautiful islands in the South China Sea. Palawan has natural gas fields on the northeastern part of the island but the beautiful beaches around the island remain pristine. The island is home to the spectacular Tubbataha Reef and the breathtaking Puerto Princesa Subterranean River National Park, both UNESCO World Heritage Boracay Island is one of the most popular tourist destinations§sites. in the country. The island boasts a 4-kilometer stretch of white sand beach, considered to be the best beach in Asia and one of the top ten The gateway to the natural wonders in the§beaches in the world. Central Visayas, Cebu is a top tourist destination in the Philippines. The country’s oldest street and city are found in this bustling metropolis where the urban sprawl is ever growing. Many tourists, who wish to stay away from the metro’s hustle and bustle, are drawn to Cebu’s hidden secrets: amazing dive sites, island resorts, white-sand islets, waterfalls, lakes, springs, mountain trails and countless Surfing in the§wonders, all of which are a short bus ride away. Philippines is comparable to the best in the world – with the world-famous cloud 9s off the island of Siargao facing the Philippine Trench in the Western Pacific as well as the surfing destinations of La The Philippines is one§Union and Zambales (facing South China Sea). of the top three best diving destinations in the world, alongside Palau and the Maldives. The archipelago is one of the top biodiversity hotspots in the world, with the most number of species concentrated in one area. The best dive sites in the Philippines are located in Anilao, Boracay, Malapascua, Apo Island, Balicasag, Pamilacan, Tubbataha, Palawan, and Puerto Galera. Subic Bay, home of a former American naval Mt. Apo the highest§base, is also known for World War II wreck dives. mountain in the country located in the island of Mindanao, home to over 270 bird species. Its name means “master” or “grandfather” and is one of the most popular climbing destinations in the Philippines. e. Shopping Shopping is one of the things tourists love about the Philippines. The country offers one of Asia’s largest bargains, which are cheaper compared to the bargains in Singapore and Hong Kong. Prices of the goods for Philippine bargains are comparable to those in Thailand and China. Not only are the products cheap, they are also of good quality.
Three of the biggest shopping malls in the world, SM Mall of Asia, SM Megamall, SM City North EDSA are all located in the Philippines. Other well-known shopping malls are Robinsons, Greenhills in San Juan, Greenbelt, Glorietta, PowerPlant Mall in the city of Makati, TriNoMa and Gateway Mall in Quezon City, The Podium in the Ortigas Business District, SM City Pampanga & SM City Clark and The Terraces and SM Northwing in Cebu City. 3. Department of Tourism The Department of Tourism (DOT; Filipino: Kagawaran ng Turismo) is the executive department of the Philippine government responsible for the regulation of the Philippine tourism industry and the promotion of the Philippines as a tourist destination. a. History Started as a private initiative to promote the Philippines as a major travel destination, the Philippine Tourist & Travel Association was organized in 1950. In 1956, the Board of Travel and Tourist Industry was created by Philippine Congress. As stipulated in the Integrated Reorganization Plan in 1972 sanctioned as a law under Presidential Decree No. 1, as amended, the Department of Trade and Tourism was established, reorganizing the then Department of Commerce and Industry. A Philippine Tourism Commission was created under the unified Trade and Tourism Department to oversee the growth of the tourism industry as a source of economic benefit for the country. Then in 1973, President Ferdinand Marcos created a new cabinet-level Department of Tourism (DOT) by splitting the Department of Trade and Tourism into two separate departments. Included in the new Department of Tourism, the agency Philippine Tourism Authority (PTA) and the Philippine Convention Bureau (PCB) were created. The Department of Tourism was then renamed Ministry of Tourism as result of the shift in the form of government as enshrined in the amendments to the 1973 Constitution. Then in 1986, under Executive Order Numbers 120 and 120-A signed by President Corazon Aquino, now the Department of Tourism was reorganized and the Philippine Convention Bureau was renamed as Philippine Convention and Visitors Corporation. In 1998, the Department of Tourism was one of the main offices of the government responsible for the culmination of the centennial celebrations of Philippine Independence from Spain. In 2002, the Department of Tourism initiated one of its most successful tourism promotion project, Visit Philippines 2003, under Secretary Richard J. Gordon. The latest improvements in the tourism industry in the country came about with the passage of Republic Act No. 9593 or the “Tourism Act of 2009.” The law provides a new structure for the administration of tourism in the country through the reorganization of the Department and its attached agencies, the establishment of a Tourism Development Fund, and the creation of specialized tourism zones throughout the Miss§ Visit Islands Philippines 1994 §country. b. Tourism Projects Florikultura ‘98 - international§Universe Beauty Pageant 1994 Expo Pilipino 1998 - Philippine Centennial§horticulture exhibition § 1998 Philippine Centennial Celebrations §International Exposition World Exposition 2002 Manila (cancelled due to financial problems of WOW (World Of Wonders)§ Visit Philippines 2003 §the government) “Pilipinas Kay Ganda” slogan and campaign 2010 4. Top Ten§Philippines Travel and Tours Agencies in the Philippines a. Scorpio Travel & Tours Inc. b. Blue Horizons Travel and Tours c. Crossway Travel and Tours d. Rajah Travels Corporation e. Saizen Travel and Tours 5. Michael Porters Five forces Framework Michael Porter’s five forces is a model used to explore the environment in which a product or company operates. Five forces analysis looks at five key areas mainly the threat of entry, the power of buyers, the power of suppliers, the threat of substitutes, and competitive rivalry. Potential for New Entrants The second force in Porter’s model, which will be applied to the analysis of the industry environment in which Guatson was incubated, is the potential for new entrants. The primary deterrents to new entrants into any industry are the barriers to entry. The higher the barriers to entry are within any given industry the smaller the threat of new entrants to that industry. Some of the potential for new entrants in the travel agency industry are Travel Factor and Optus Travel and Tours. Substitute Products Another force which acts upon an organization and is included in Porter’s five forces model is the threat of substitute products. As a substitute for Travel agency services and product offers that are buses, ships and private vehicles. Bargaining Power of Buyers The bargaining power of buyers also plays an important role in determining the desirability from an investor’s standpoint of the environment in which the Travel Agency industry existed at inception. The force of the buyer’s bargaining power is proportional to the ability of buyers to force down prices, bargain for higher-quality products or more services, and pit rival organizations against one another. The primary consumers of this industry are the foreigners, travelers, businessmen and others who seek a trip. Bargaining Power of Suppliers The primary airlines are the sources of tickets and accommodations for the customers with thousands of hotel and resort partners in the industry. As part of its strategy to offer more travel choices for consumers, Philippine Airline, Cebu Pacific and Zest Airways has been launching new promos, discounts and package deals from different categories to its customers. c. Competitive Analysis
1. Profile of Competitors.
a. Southeast Travel Corporation Southeast Travel Corporation first opened its doors as a full-service travel agency in 1978. Today, the company has established a name for itself as one of the country’s most reliable travel agencies. With its budget-to-deluxe tour packages through Sunshine Holidays as well as other travel solutions, Southeast Travel provides value for money to its clients. We have over 30 highly-trained and motivated travel specialists who ensure top quality service. As one of the industry’s major players, Southeast Travel wholeheartedly supports activities that improve the community, preserve Philippine culture and protect the environment.
b. Pan Pacific Travel Corporation Since 1978 Pan Pacific Travel Corporation has established a reputation as one of the leading and most respected travel agencies and tour operators in the Philippines by providing outstanding service and reliability with competitive rates. We specialize in tours throughout the Philippines and aside from our pre-packaged tours; we customize each and every program according to a client’s precise requirements. Based on their specific interests, needs and budget; we can provide a variety of travel services for their employees and corporate groups, which includes hotel accommodation, sightseeing tours, recreational activities, teambuilding seminars, banquet affairs, evening entertainment, transportation, multi-lingual escort and guide service. c.Satellite Travel Inc. Satellite Travel inc. was founded in 1970 by Antonio (Tony) La Villa; an experienced entrepreneur who strived for excellence in customer satisfaction. Over 39 years of expertise assures an authentic, professional, and courteous level of customer service and satisfaction. Serving both corporate and vacationing clients, Satellite Travel ensures that all details and arrangements are taken care of from departure to arrival. Specializing in World-Wide Air Travel, Satellite Travel also takes pride in making corporate travel arrangements for meetings, conventions, last minute deals, all inclusive packages and sell-offs. Because it is a family operated enterprise, one can be assured to receive an unsurpassed level of commitment and dedication that has made Satellite Travel well known throughout the past decades. Our Galileo Computerized Reservations Network provides a real-time booking engine for all your travel needs. We provide you with the highest quality service and a direct line to information from more than 500 airlines, 30,000 hotels and 45 car rental companies.
We are also members of the I.A.T.A., A.C.T.A., and C.L.I.A; all of which register and set the standards in the travel industry. Satellite Travel has years of experience serving travellers, and offers dependable, reliable service with a progressive-thinking approach to save you time and money.
2. Competitive Profile Matrix Guatson Travel and Tours Southeast Travel Corporation Satellite Travel Inc. Pan Pacific Travel Critical Success Factor Wt Rating Score Rating Score Rating Score Score Rating Market Share .07 3 .21 2 .14 1 .07 3 .21 Customer Services .10 3 .30 2 .20 1 .10 3 .30 Accreditation .15 4 .60 1 .15 2 .30 4 .60 Rate of Competitors .16 4 .64 4 .64 2 .32 2 .32 Marketing Communication .15 2 .30 4 .60 3 .45 3 .30 Financial Position .07 1 .07 4 .28 2 .14 1 .07 Strategic Location .10 2 .20 4 .40 2 .20 2 .20 E- Commerce .10 1 .10 3 .30 2 .20 2 .20 Booking System and Technology .10 3 .30 4 .40 2 .20 3 .30 Total 1.0 2.62 3.11 1.98 2.5 Based on the research and analysis of pertinent data result of the comparative profile matrix shows that Skyway Travel and Tours is the most Competitive but having a total weighted score of 2.62 for Guatson Travel Agency shows that they also have a good position. Guatson Travel and Tours needs to correct their weakness to improve its comparative position. There exists a stiff competition in the travel industry as shown by the results.
a. Identified Critical Success Factors i. Market Share Market share is the portion or percentage of sales of a particular product or service in a given region that are controlled by a company. The percentage of an industry or market’s total sales that is earned by a particular company over a specified time period. Market share is calculated by taking the company’s sales over the period and dividing it by the total sales of the industry over the same period. This metric is used to give a general idea of the size of a company to its market and its competitors.
ii. Customer Services Guatson continually serve the travel market especially the booking and ticketing for traveler as a top quality, full service provider. It takes advantage of trade shows travel industry publications and other sources of industry- related information to monitor the quality of its customer service.
iii. Accreditation Guatson is a full service travel agency in the Philippines accredited by the Philippine Travel Agencies Association (PTAA) and registered by the Department of Tourism (DOT).
iv. Rate of Competitors Guatson’s pricing policy is competitive as it is always review their service price, rates, terms, promos and discounts in the line with the current industry trends with the help of different forms of media like websites, magazines and newspaper.
v. Financial Position Guatson has a good financial standing evident by its continuing financial growth on its consolidated financial statement for the last year of its operation.
vi. Marketing Communication Guatson implements extensive advertising campaigns thru advertisement in magazines, website and leaflets.
vii. Strategic Location The office of Guatson is located at Aurora Building, Arquiza St., corner Jorge Bocobo St., Ermita, Metro Manila, Philippines. It is strategic location to the place where most foreigners are residing.
viii. E- Commerce The Internet has created a new economic ecosystem, the e-commerce marketplace, and it has become the virtual main street of the world. Providing a quick and convenient way of exchanging goods and services both regionally and globally, e-commerce has boomed. Travel service companies, such as airlines, hotels, cruise ships, and rental car companies, also benefit from e-commerce intermediaries selling their products more quickly and easily than was previously possible and to a wider consumer base.
ix. Customer Loyalty Building customer loyalty will be a lot easier if you have a loyal workforce-not at all a given these days. It is especially important for you to retain those employees who interact with customers such as sales people, technical support, and customer-service people. Many companies give a lot of attention to retaining sales people but little to support people. I’ve been fortunate to have the same great people in customer service for years-and the compliments from customers make it clear that they really appreciate specific people in our service function.
x. Booking System and Technology It is our belief that the system for tour suppliers has to be far more flexible than the standard reservation system. To make the transition easy we set the system up for you, load all trips and provide free unlimited training and support. Customers booking by themselves on the Web purchase 47% more profitable optional extra services, and that 61% make their reservations outside office hours if they are able, and that the majority of bookings are created on a Sunday afternoon that an online booking facility fully integrated in the corporate website enhances the company trademark? We know. And we know how to give small and medium sized operators a sharp competitive edge based on this. More than 120 travel companies with 3000 + users are already reaping the benefits of Travel. We would be delighted to see you as the next one!
CHAPTER 4 INTERNAL ANALYSIS A. Management
1. Organizational Structure a. Current Management Team: MR. BENITO TAN GUAT President and Chairman of the Board MS. PATTY CHIONG General Manager MR. HENRY OCIER Sales and Marketing Manager Office Personnel: MS. JOSIE CRUZ Office Supervisor MS. LIWAY ANTONIO Operations Supervisor MR. EDWIN DANS Documentation and Facilitation Office
b. Analysis Guatson does not have an organizational structure. An organizational structure consists of activities such as task allocation, coordination and supervision, which are directed towards the achievement of organizational aims. It can also be considered as the viewing glass or perspective through which individuals see their organization and its environment. Organizational structure involves how a business organizes, categorizes and delegates tasks to achieve a specific goal. A company’s organizational structure determines how business decisions are made and implemented at all levels of the business.
c. Proposed B. Marketing 1. Selling Products/ services The company is currently pursuing an aggressive marketing action thru different forms of media like website, magazine and newspaper in order to reach their primary market which is the travelers. Guatson should also establish extensive advertising campaigns to establish company awareness to its customers
2. Pricing Guatson delivers good value for its customers’ money. Guatson always review their service prices, rates, terms, promos, and discounts with the figures prevailing in the industry. Guatson prices are highly competitive since industry’s services are highly standardized. It makes every effort to maintain a competitive pricing policy.
3. Distribution Guatson’s office is located at Aurora Building, Arquiza St., corner Jorge Bocobo St., Ermita, Metro Manila, Philippines . It is strategically situated in a place which has a large concentration on outdoor recreation enthusiasts and which has many foreigners. These individuals, couples and groups maybe interested in availing Guatson different services and can be Guatsons potential customers.
C. Operations Guatson Travel is one of the leading international and local travel companies in Asia that specializes in Airline Booking and Ticketing also offer services on: Visa Consultation and Assistance, passport processing, package tours, and international and local travel with hotel reservation. Guatson is a full service travel agency in the Philippines accredited by Philippine Travel Agencies Association (PTAA) and Philippine Travel & Tourism Council (PTTC) and registered by Department of Tourism (DOT) specializing in airline ticketing, hotel and resort reservation, local and international packaged tours. Guatson continually improve their processes, product, knowledge and skills for guaranteed quality customer service as it tries to increase customer loyalty. With the internet, the former travel marketplace has been completely changed allowing travel agencies to directly reach their potential customers through their own websites and implement real time price changes. Internet is more and more used as the main travel planning resource.
E. Summary and Conclusion Guatson Travel and Tours Inc. do not have an organizational structure. The Management should focus its energies in defining the company’s vision and making it clear for the entire organization. Also, management should also have a company’s mission. The management should hire employees that follow good business etiquette. Moreover, they have to strengthen the marketing department. With the management initiatives, the marketing department will make use of all advertising mediums available for the company’s advertisements. This of course is a tip of the iceberg for the company’s market penetration strategies. Effective advertisements and tie-us would be the best solution to make the company’s name stick to the minds of the consumers. The company should bear in mind that the Filipino culture associates the service quality and popularity with the number of advertisements it has.
CHAPTER 5 STRATEGY FORMULATION Strategy formulation focuses on generating and evaluating alternative strategies as well as selecting strategies to propose. This seeks to determine alternative courses of action that would enable the firm to achieve its objective. The company’s present strategies and objectives coupled with the external and internal information provide the basis for generating and evaluating feasible alternative strategies.
V. STRATEGY ANALYSIS A. SWOT Matrix (TOWS) INTERNAL Strength (S)
1. Accreditation
2. Financial Position
3. Competitive Rates
4. Flexible Operational Booking System
5. Strategic Location
6. Quality Customer
7. Customer Loyalty Weakness (W)
1. Undefined Organizational
2. No e-commerce
3. Poor Marketing Communication
4. No credit card transaction
5. Deficient Employee Training Programs EXTERNAL Opportunities
1. Acceptable GDP Growth
2. Growing rate of other Nationalities
3. Full Philippine Government Support 4. Increasing Number of OFWs and OCWs S-O Strategies
1. Acquire other accreditation to increase recognition
2. Develop new value offers to take advantage of GDP Growth
3. Use modern communication facilities to improve customer service W-O Strategies
1. Develop effective advertising campaigns to increase demand from its customers
2. Establish a website enabling e-commerce transaction
3. Provide employee training programs to improve services to its customers Threats
1. Increasing Inflation Rate
2. Global Economic Recession
3. Illegal Travel Agencies
4. Terrorism
5. Pandemic Disease S-T Strategies
1. Formulate flexible discount rates and promos to increase sales despite the increasing inflation rate, global economic recession, terrorism and pandemic disease
2. Use accreditation to differentiate itself from illegal travel agencies W-T Strategies
1. Provide extensive marketing campaign promoting travel and tourism despite terrorism and pandemic disease.
2. Allow credit card transaction to minimized in sales due to the increasing inflation rate and Global Economic Recession and to complete e-commerce transaction
3. Modify organizational structure in order to increase operational effectiveness and efficiency in face of increasing inflation rate and global economic recession. SPACE MATRIX STRATEGIC POSITION AND ACTION EVALUATION MATRIX Financial Strength Ratings Liquidity 4.00 Profitability 5.00 Leverage 5.00 Total 14.00 Industry Strength Growing Market 5.00 Financial Stability 4.00 Threat of New Entrants 3.00 Threat of Substitute 2.00 Total 14.00 Environmental Stability Inflation Rate 4.00 Technological changes 4.00 Price of range of Competing Services 5.00 Demand Variability 5.00 Total 18.00 Competitive Advantage High Market Share 2.00 No E-Commerce 6.00 Poor Marketing Communication 5.00 High Quality Services 2.00 Total 15.00 CONCLUSION FS Average ( y-AXIS ) = 14/3 is 4.667 IS Average ( x-AXIS ) .= 14/4 is 3.50 FS Average y = 18/4 is 4.50 CA Average .x = 15/4 is -3.75 x-AXIS = 3.50 + ( - 3.75 ). is -0.25 y-AXIS = 4.667 + ( - 3.50 ). is 0.167 IFE MATRIX Table 17. Internal Factor Evaluation (IFE) Matrix Strengths Weight Rating Weight Score 1. Accreditation 0.08 3 0.24 2. Financial Position 0.09 3 0.27 3. Competitive Rates 0.09 3 0.27 4. Flexible Operational Booking System 0.08 3 0.24 5. Strategic Location 0.09 3 0.27 6. Quality Customer Service 0.09 3 0.27 7. Customer Loyalty 0.09 3 0.27 SUB Total 0.61 1.83 Weaknesses 1. Undefined Organizational Structure 0.08 1 0.08 2. No E-Commerce 0.09 1 0.09 3. Poor Marketing Communications 0.08 1 0.08 4. No Credit Card Transactions 0.07 2 0.14 5. Deficient Employee Training Programs 0.07 1 0.07 SUB Total 0.39 0.46 Total 1.00 2.29 Legend of Weight – Very Important – Not Important Legend of Rating 4 – Major Strength 3 – Minor Strength 2 – Minor Weakness 1 – Major Weakness Based on the Space Matrix, the company can adopt conservative strategies which imply staying close to the firm’s basic competencies and not taking excessive risks these strategies often include market penetration, market development, product development, and concentric diversification. Figure 7. Strategic Position and Action Evaluation (SPACE) MATRIX Competition is at the core of the success or failure of any organization, and determines the appropriateness of its activities. In developing a strategy, managers must examine the marketing opportunities in each business and product-market, as well as the organization’s distinctive competencies or strengths relative to its competitors. The SPACE matrix is a valuable method for analyzing the competitive position of an organization. It makes use of two internal dimensions (financial strength and competitive advantage) and two external dimensions (industry strength and environmental stability), to determine the organization’s strategic posture in the industry.
C. THE BOSTON CONSULTING GROUP (BCG) MATRIX THE BOSTON CONSULTING GROUP (BCG) MATRIX is a graphical approach to resource allocations within a Multi-Segmented Corporation. The Growth-Share Matrix analyzes different divisions within a corporation and corporate their growth rates and market shares with those of competitors. In this case, this tool cannot be utilized because of its inapplicability to the company being studied. HIGH LOW HIGH Market Share LOW D. THE INTERNAL-EXTERNAL (IE) MATRIX THE INTERNAL-EXTERNAL (IE) MATRIX enhances EFE and IFE matrixes to be more effective in proving appropriate organizational strategy. Figure 8. THE INTERNAL-EXTERNAL (IE) MATRIX AREA GUATSONS Internal-External Matrix IFE Matrix 2.29 IFE Total Weighted Score EFE Matrix 2.55 Strong Average Weak CELL V Hold and Maintain 3.0 to 4.0 2.0 to 2.99 1.0 to 1.99 EFE Total Weighted Score High 3.0 to 4.0 I II III Medium 2.0 to 2.99 IV GUATSONS Travel And Tours Corp. VI Low 1.0 to 1.99 VII VIII IX The company’s EFE Score is 2.55 while its IFE is 2.29 these scores put Guatsons in quadrant V which can be managed best with hold and maintain strategies the firm should pursue strategies such as market penetration and product development. The company’s EFE Score is 2.55 while its IFE is 2.29 these scores put Guatson in quadrant V which can be managed best with hold and maintain strategies the firm should pursue strategies such as market penetration and product development. G. Quantitative Strategy Planning Matrix (QSPM) QSPM Market Penetration Strategies Market Development Strategies Product Development Strategies Opportunities Weight AS TAS AS TAS AS TAS 1. Acceptable GDP Growth 0.12 3 0.36 1 0.12 2 0.24 2. Growing Rate of Koreans & other Nations 0.15 4 0.60 2 0.30 3 0.45 3. Full Philippines Gov’t Support to tourism Industry 0.1 3 0.30 1 0.10 2 0.20 4. Increasing No. of WS 0.09 4 0.36 2 0.18 3 0.27 5. Technological Advancement 0.09 4 0.36 2 0.18 3 0.27 Threats 1. Increasing Inflation Rate 0.09 3 0.27 1 0.09 2 0.18 2. Global Economic Recession 0.09 3 0.27 1 0.09 2 0.18 3. Illegal Korean Travel agencies 0.09 – – – – – – 4. Terrorism 0.09 – – – – – – 5. Pandemic Diseases 0.09 – – – – – – 1.00 Strengths 1. Accreditation 0.08 – – – – – – 2. Financial Position 0.09 – – – – – – 3. Competitive Rates 0.09 – – – – – – 4. Flexible Operational Booking System 0.08 – – – – – – 5. Strategic Location 0.09 – – – – – – 6. Quality Customer Service 0.09 4 0.36 2 0.18 3 0.27 7. Customer Loyalty 0.09 – – – – – – Weaknesses 1. Undefined Organizational Structure 0.08 – – – – – – 2. No E-Commerce 0.09 4 0.36 2 0.18 3 0.27 3. Poor Marketing Communications 0.08 4 0.32 2 0.16 3 0.24 4. No Credit Card Transactions 0.07 – – – – – – 5. Deficient Employee Training Programs 0.07 – – – – – – 1.00 TOTAL TAS 3.56 1.58 2.57 Legend for Attractiveness Score: 4 – Highly Attractive 3 – Reasonably Attractive 2 – Somewhat Attractive 1 – Not Attractive Between the three given strategic alternatives, Guatson should prioritize implementing market penetration strategies since these got the higher sum of total attractiveness score of 3.56 followed by product development strategies with total attractiveness score of 2.57. The c weights and key factors that were used in the QSPM were derived from the IFE and EFE matrices. H. Position Map The Position Map helps the company identify a positioning strategy. It helps the strategist locate the company together with its competitors using two important positioning variables. This is a useful tool in gaining a graphical idea where the company stands compared to its competitors in the industry.
CHAPTER 6 STRATEGIC OBJECTIVE AND THE RECOMMENDED STRATEGIES Statements of vision tend to be quite broad and can be described as a goal that represents an inspiring, overarching, and emotionally driven destination. Mission statements, on the other hand, tend to be more specific and address questions concerning the organization’s reason for being and the basis of its intended competitive advantage in the marketplace. Strategic objectives are used to operationally the mission statement. That is, they help to provide guidance on how the organization can fulfill or move toward the “high goals” in the goal hierarchy-the mission and vision. As a result, they tend to be more specific and cover a more well-defined time frame.
A. PRIMARY STRATEGY (PRODUCT DEVELOPMENT) Product development is a crucial stage that many companies have to go through, frequently time and time again, and with it comes development of manufacturing techniques. Firms have to make it right first time or they will have to face increased costs, lost sales, lost time, and lost share of the market. The outcome of this process can actually bring huge success or failure to a company. People from all walks of life don’t take pleasure in being delayed. Giving emphasis on faster transaction via e-commerce which allows online booking and payment system without the hassle of traffic jam and time consuming transaction. Other travel agencies also have the same problem so it will be competitive advantage if Guatson can recognize as a travel agency that prioritizes time and convenience of their customers. Many travel agency offer lower ticket and packages to gather customers.
We suggest that Guatson focus on differentiation by making their customers experience the “class” of the service and packages that Guatson offers to remind them the pleasure of taking very good packages by hotel reservations. This strategy will require an extensive employee training in proper etiquette and quality service, to ensure the portrayed image lines up with the experience of customers. Also, a partnership with a very good hotels and resort throughout to ensure the satisfaction of the customers in the amount they have paid.
B. SECONDARY STRATEGY (MARKET PENETRATION) A market penetration strategy seeks to increase market share of the current product or services in the existing market. This strategy adopted by the firms to raise their sales revenue without making changes in the products or services. The other dimension of market penetration is the existing market which means firm already offering products or services to the customer but can forecast that the existing sales figures can be improved by working on marketing penetration strategy. Market penetration strategy can be implemented by offering sales, Increasing sales force, increase distribution and promotion of products, more expenditure in marketing and advertising activities will results in increasing sales. It is not guaranteed that market penetration fully works after investing in sales and marketing of products and services, a firm should go for this strategy only if any below of the desirable situation exists. - Current market is not fully saturated. - Market share of the competitors are decreasing whereas the industry growth rate is increasing. - Existing buyers have the potential to purchase same products and services in more quantity. - When economies of scale provides competitive edge. We recommend that Guatson provide a membership card options for packages deals and customers who bought a ticket to maintain local customers. This may be in a form of a point’s equivalent and in entitled for a gifts and promos. Also, offering discount for the packages and tickets like Barkada package, Family Package, Company package and School Tour Packages to attract and penetrate customers. Because online booking is essential and currently gaining popularity among passengers, it would be more effective if the security for the payment of reservations will ensured by Guatson. Thus we recommend utilizing the Security Socket Layer (SSL) technology. This system ensures that only the customer and booking sector of the company will view credit card information. This in turn further enhances the credibility of transactions between the customers and the company. With regards to information concerning the Guatson Travel Agency Inc, we recommend that Guatson link their website to virtual shopping sites, social networking sites, travel sites, and other frequently visited sites. Popular sites will make the detailed information about Guatson more appealing. Another way is collaborating with the tourism industry; this will benefit both country and Guatson Travel and Tours Inc. in many ways. Thus, gaining the support of the government and its citizen in patronizing the flag carrier.
C. TERTIARY STRATEGY (MARKET DEVELOPMENT) A market development strategy involves selling present products or services in new markets. Managers take actions like targeting promotions, opening sales offices and creating alliances to operational a market development strategy. Developing a strong market development strategy is an important aspect of helping companies grow. If companies are limited by only having a small share of the market, they can find it difficult to sell more products, raise capital, and expand their operations. Small companies with limited marketing experience may turn to consultants for this, while experienced large companies have internal marketing departments that may be responsible for market development. It is an ongoing part of doing business for successful companies.
We recommend that the company pursue this market by expanding to new territories. This strategic move builds on to expand and gather market in any areas.
CHAPTER 7 STRATEGY EVALUATION, MONITORING AND CONTROL The final stage in strategic management is strategy evaluation and control. All strategies are subject to future modification because internal and external factors are constantly changing. In the strategy evaluation and control process managers determine whether the chosen strategy is achieving the organization’s objectives. The fundamental strategy evaluation and control activities are: reviewing internal and external factors that are the bases for current strategies, measuring performance, and taking corrective actions. At the end of the year performance evaluation will be conducted in order to identify the effectiveness of the strategies imposed for the achievement of its mission. As part of a company’s evaluation and control program, they will quantifiably monitor the important characteristics of the company’s products and services and the performance of the individuals and processes creating them. Performance measures support managerial decision-making by providing How efficient and effective are thevuseful information regarding: If productsvcompany’s processes and the individuals implementing them If the company’s customers andvor service improvements are necessary If the company is meeting its stated goalsvstakeholders are satisfied Comparison of the projection with the actual outcome will be considered in performance evaluation. Market shares and under fundamental actor such as the sales growth will be analyze to adjust necessary strategy to reflect its overall goal. Once there is a big discrepancy between the projected with the actual outcome strategy revision will be advised.
Mabuhay!
Welcome to Guatson Travel!
Guatson Travel is one of the leading international and local travel company in Asia. Our specialization is Airline Booking and Ticketing, also offer services on: Visa Consultation and Assistance, passport processing, package tours, and international and local travel with hotel reservation.
We offer personalized services to our clients. We come up with your needs and expectations, providing you with first-class services while enjoying our competitive and reasonable prices.
Guatson Travel guiding you to the World!
Popular Destinations
Vacation Deals
Cruises
Local destinations
Group packages
Asian cruises
Asia and Oceania
Weekend Getaway
European cruises
USA
Philippine tour
Europe
STRATEGY FORMULATION
Strategy formulation focuses on generating and evaluating alternative strategies as well as selecting strategies to propose. This seeks to determine alternative courses of action that would enable the firm to achieve its objective. The company’s present strategies and objectives coupled with the external and internal information provide the basis for generating and evaluating feasible alternative strategies.
SPACE MATRIX
STRATEGIC POSITION AND ACTION EVALUATION MATRIX
CONCLUSION FS Average ( y-AXIS ) = 14/3 is 4.667 IS Average ( x-AXIS ) .= 14/4 is 3.50 FS Average y = 18/4 is 4.50 CA Average .x = 15/4 is -3.75 x-AXIS = 3.50 + ( - 3.75 ). is -0.25 y-AXIS = 4.667 + ( - 3.50 ). is 0.167 IFE MATRIX Table 17. Internal Factor Evaluation (IFE) Matrix Table 17. Internal Factor Evaluation (IFE) Matrix
Legend of Weight – Very Important – Not Important Legend of Rating 4 – Major Strength 3 – Minor Strength 2 – Minor Weakness 1 – Major Weakness Based on the Space Matrix, the company can adopt conservative strategies which imply staying close to the firm’s basic competencies and not taking excessive risks these strategies often include market penetration, market development, product development, and concentric diversification. Figure 7. Strategic Position and Action Evaluation (SPACE) MATRIX
Competition is at the core of the success or failure of any organization, and determines the appropriateness of its activities. In developing a strategy, managers must examine the marketing opportunities in each business and product-market, as well as the organization’s distinctive competencies or strengths relative to its competitors. The SPACE matrix is a valuable method for analyzing the competitive position of an organization. It makes use of two internal dimensions (financial strength and competitive advantage) and two external dimensions (industry strength and environmental stability), to determine the organization’s strategic posture in the industry.
C. THE BOSTON CONSULTING GROUP (BCG) MATRIX THE BOSTON CONSULTING GROUP (BCG) MATRIX is a graphical approach to resource allocations within a Multi-Segmented Corporation. The Growth-Share Matrix analyzes different divisions within a corporation and corporate their growth rates and market shares with those of competitors. In this case, this tool cannot be utilized because of its inapplicability to the company being studied.
D. THE INTERNAL-EXTERNAL (IE) MATRIX THE INTERNAL-EXTERNAL (IE) MATRIX enhances EFE and IFE matrixes to be more effective in proving appropriate organizational strategy. Figure 8. THE INTERNAL-EXTERNAL (IE) MATRIX
The company’s EFE Score is 2.55 while its IFE is 2.29 these scores put Guatsons in quadrant V which can be managed best with hold and maintain strategies the firm should pursue strategies such as market penetration and product development. The company’s EFE Score is 2.55 while its IFE is 2.29 these scores put Guatson in quadrant V which can be managed best with hold and maintain strategies the firm should pursue strategies such as market penetration and product development. G. Quantitative Strategy Planning Matrix (QSPM)
Legend for Attractiveness Score: 4 – Highly Attractive 3 – Reasonably Attractive 2 – Somewhat Attractive 1 – Not Attractive Between the three given strategic alternatives, Guatson should prioritize implementing market penetration strategies since these got the higher sum of total attractiveness score of 3.56 followed by product development strategies with total attractiveness score of 2.57. The c weights and key factors that were used in the QSPM were derived from the IFE and EFE matrices. H. Position Map The Position Map helps the company identify a positioning strategy. It helps the strategist locate the company together with its competitors using two important positioning variables. This is a useful tool in gaining a graphical idea where the company stands compared to its competitors in the industry.
