Strategic Management in Relation to Trailfinders Company - Case Study Example

Strategic Management Name Institution Date Introduction The strategic management concepts involve the formulation and implementation of strategies by the management on behalf of the business owners. The strategies are usually for the purposes of enabling the company to achieve its goals and objectives. The travel and tour industry in Europe is quite competitive, and it requires the use of strategic management concepts. The companies need to enhance their services by creating more value. The value chain management concepts enable a company to meet the demands of the customers (Middleton & Clarke, 2012). The needs of the customer in the industry are quite demanding, and the lack of strategic management concepts can impact negatively on the operations of the company. The tourists usually demand high-quality services as they always need to enjoy their stay in a particular destination. On the other hand, the demands of the tourists keep changing from time to time and hence the need for the companies to develop strategies that will meet the demands of the tourists. Most of the companies have been unable to meet the expectations of the customers and have been forced to stop their operations (Lambert, 2011). Trailfinders is one of the successful companies in the tour and travel industry in Europe although it also operates in other international markets. The paper critically discusses the concepts of strategic management in relation to Trailfinders Company. Discussion Resources Trailfinders is a prominent company in the tour travel industry in Europe. The company was established in 1970 by a former SAS officer named Mike Gooley (Trailfinders, 2014). At the time of its establishment, the company only had four members of staff. However, the company was able to improve its services after the concepts of strategic management were put in place. The company has since grown, and it has opened branches in other parts of the Europe and the world. The company currently has 28 travel centers, and its headquarters is based in United Kingdom. The travel centers of the company were opened up as a result of growth and development of the company based on the growth strategies. Intensive marketing strategies are in place for the purposes of ensuring that the company can attract more clients. In terms of the human resources, the company is well equipped with highly qualified and motivated staff members. The company currently has about 950 staff members who are actively involved in the operations of the company. All the staff members usually undergo training from time in order to enhance their knowledge and skills. Training and development of the skills of the staff members are part of strategic management process that contributes to competitive advantage (Hitt, et al. 2012). The premises of the company are well furnished for the purposes of ensuring that the staff members can operate effectively. The good condition of the premises of the company also attracts the customers. The company has been able to perform well financially and is considered as the most profitable company in the industry. Trailfinders was voted as the best tour operator in the Telegraph Travel Awards (Telegraph Travel, 2015). Other human resource activities like recruitment and selection as usually carried out in accordance with the best practices. This has resulted in the company having highly qualified staff members. The management staff of the company is highly qualified, and the leadership of the company has been responsible for inspiring the other staff members. Setting the goals and objectives of the company has always been carried out while considering the human resource issues. The company also operates on a bigger budget for the purposes of meeting the travel needs of the clients. Due to the expertise in the company, it has been able to make travel arrangements for over 11 million clients. The use of strategic management concepts has, therefore, contributed to its success. Strengths and weaknesses Strengths The brand image of the company is good as it has been recognized and awarded for its good performance in the industry. The company can handle a high number of clients. It is also for this reason that the company has been able to attract a high number of customers. The company has won the loyalty of the customers due to the high-quality services that it offers. The services of the company are of high quality, and they are dependent on the needs of the customers. The company is financially stable, and it has the potential of initiating different activities for the purposes of improving the quality of its services. A company, that has adequate human resources, enables it to carry out its activities effectively (Wheelen & Hunger, 2011). This has been useful in the growth and expansion of the company. Trailfinders has good leaders who are also strategic and visionary which also inspires the entire company. The company is engaged heavily in the use of technology that enhances its operations. Weaknesses The company usually spends a lot of financial resources for the purposes of conducting its operations on a daily basis. The high amount of money, which is spent for carrying out different operations, has a negative impact on the revenue and profitability of the company. The number of employees of the company is high which also has negative impacts on the revenue of the company. In order for a company to be profitable, the expenditure must be low. Weaknesses can lower the competitive ability of a company (Eden & Ackermann, 2013). The weaknesses of the company are however low which has enabled it to become the market leaders. Value chain Value chain involves the chain of activities that are usually carried out in order to deliver valuable products in the market (Aleksić-Marić & Ilić, 2012). The value chain activities are important in enabling an organization to gain competitive advantage. The company is involved in value chain aimed at improving its services. The inbound and outbound logistics of the company are effective which makes the company efficient in arranging for the travel arrangement for the clients. During the transportation of the clients to different destinations, the clients are usually offered free drinks and snacks which is a way of creating a value chain. The clients are usually made to feel extra comfortable during the traveling process and hence the loyalty of the customers. The strategies of the company are usually aligned in a coherent manner for the purposes of ensuring that value chain is created. The value chain activities of the company are supported by various aspects including the use of technology and the infrastructure of the company. Value chain creation is an important aspect of strategic management and it plays a vital role in creating competitive advantage to an organization in the tourism industry (Moutinho, 2011). The delivery of services at the company has also been enhanced through the use of value chain activities. The wastage of funds has been eliminated in the organization through efficient value chain activities. The customers usually enjoy the services offered by the company due to the presence of value chain activities. This has enabled the company to emerge as a market leader in the industry. Core competencies The core competencies of the company are based on the ability of the staff to provide high-quality services. The staff members of the company are highly trained and motivated which enables them to offer premium services to the clients. The core competencies of a company involve the coordination of skills and people from different functional areas (Sedlak, et al. 2013). A core competency is also a source of competitive advantage for an organization. It is also important to note that the core competencies of a company is resource based view. SWOT matrix Strength Weaknesses The company is financially stable. The company has adequate human resources to carry out its activities. The brand image of the company is good in the market and the customer loyalty is high. The employees of the company are highly qualified, trained and motivated. The company is profit making which has contributed to its growth and development. The company has strategic and visionary leadership. The company has the ability to create value to its activities and processes. The company utilizes the use of modern technology. The company has to spend a lot of resources while carrying out its operations. The high number of employees puts a strain on the profitability of the company. The industry requires a lot of new strategies from time to time and hence affecting the operations of the company. The company requires a lot of funds to carry out the transportation processes. Opportunities Threat The company has an opportunity to form mergers and acquisitions in the market. The company has the potential of exploiting new markets in other parts of Europe. The company has the ability of introducing new services that are relevant to the industry. The company has the opportunity to diversify its services in the industry. The competition in the market is high which may affect the market share of the company. There is a risk of new companies entering the market due to the profitability of the industry. Economic recession is affecting some parts of Europe which may impact negatively on the revenue of the company. Strategic direction taken by the company Continuous improvement of quality is one of the strategic directions that have been taken by the company. This strategic direction is for the purposes of enabling the company to meet its goals and objectives of providing quality services. The company is involved in the transportation of the customers using the first class flights which is an improvement from the past (Trailfinders, 2014). This is an experience that the clients cannot easily obtain from the other companies. Continuous improvements have seen the company putting in place quality management systems which are used for enhancing the services provided. A total quality management system is in place at the company for the purposes of improving the quality of the services provided. The strategic direction that has been taken by the company has played an important role in ensuring that the employees are highly trained in order to improve on the quality and standards of the services. The continuous improvement is also a strategic direction that was responsible for the growth and development of the company. The achievements that have been made by the company are as a result of the continuous improvements. The company has been able to win the loyalty of the customers through the continuous improvement of the quality of its services. Customer loyalty is an important aspect for the growth and development of an organization. This also improves on the brand image of an organization. A feedback mechanism is in place at the company for the purposes of obtaining the views or complaints from the customers. The information obtain from the customers have been important to the company in terms of making changes for improving the quality of services that is offered to the customers (Stead, & Stead, 2013). A customer care department is also in place at the company for obtaining information from the customers. The continuous improvements on the quality of the services of the company have contributed to new innovative services that have been introduced by the company. The strategic direction that has been taken by the company has also seen it winning various awards for the high-quality standards. The high-quality services that have been put introduced by the company have also influenced the industry trends. Conclusion In conclusion, it is evident that strategic management concepts play an essential role in promoting the growth and development of an organization. Trailfinders has been able to achieve its goals and objectives through the strategic management concepts. The company has a highly experienced workforce as well as financial resources. The presence of good leadership at the company has contributed to its success. It is evident from the SWOT analysis that the company still has growth opportunities. The intensive competition in the market due to the profitable nature of the industry is however a threat to the company. The strategic direction taken by the company to improve on its quality has positive impacts on its growth. References Aleksić-Marić, V., & Ilić, G. (2012). Strategic management of information systems in the function of efficient business of companies. Strategic Management, 17(3), 36-46. Eden, C., & Ackermann, F. (2013). Making strategy: The journey of strategic management. Sage. Hitt, M. et al. (2012). Strategic management cases: competitiveness and globalization. Cengage Learning. Lambert, R. S. (2011). The Fortunate Traveller-A Short History of Touring and Travel for Pleasure. READ BOOKS. Middleton, V. T., & Clarke, J. R. (2012). Marketing in travel and tourism. Routledge. Moutinho, L. (2011). Strategic management in tourism. CABI. Sedlak, O. et al. (2013). Strategic management under the conditions of uncertainty and indefiniteness. Strategic Management, 18(1), 62-68. Stead, J. G., & Stead, W. E. (2013). Sustainable strategic management. ME Sharpe. Telegraph Travel. (2015). Britain’s Best Tour Operator. Retrieved on 10 January 2015 from, . Trailfinders. (2014). About us. Retrieved on January 10, 2015 from, . Wheelen, T. L., & Hunger, J. D. (2011). Concepts in strategic management and business policy. Pearson Education India. Read More