The Alton Towers Resort - Achieving Strategic Position and Future Success - Business Plan Example

ASSESMENT 1 By [Insert name] Name of the class Name of the professor Name of the school City and state Date Element A - Communication Plan Executive Summary Alton Towers them park located in Staffordshire, England. The organization has always strived to provide quality, safe, and unique services to its diverse clients that includes adults and children. Unfortunately, the Smiler’ ride cause an incident in June 2015 that has resulted in negative publicity and loss of confidence. Through this strategic communication plan, the company hopes to rebuild its brand, reassure customers about the safety of its rides, and improve consumer confidence. Situational Analysis The Alton Towers Resort, popularly known as the Alton Towers, is a water park, hotel complex and theme park located in Staffordshire, England. The complex belongs to the Marlin Entertainment Group. On a typical day, Alton Towers opens its doors to visitors from 10 am to 5pm. However, these operating hours can change depending on expected attendance. Furthermore, the complex hosts a number of special events such as the end of season parties and concert nights. These have made it a major centre of attraction for local and international visitors. STEEPLE Analysis The STEEPLE Analysis is a helpful strategic tool use to achieve strategic position and plan for future success. It looks at the external factors that affect the operations of an organization from a macro-environmental perspective (Cadle, Paul & Turner, 2010). The tool looks at six major external factors that influence an organization. They are socio-cultural factors, technological advances, economic issues, environmental factors, political factors, legal issues, and ethical considerations. The socio cultural factors refer to the social forces that affect the operations of the organization in the market. These factors influence consumers, interests, opinions, and attitudes towards the park. There are four major social factors that significantly influence Alton Tower’s operations and position in the market. The first factor is income distribution. The distribution of income in the society affects the ability of consumers to uses the services and products that the park offers all year round. The second factor is demographic changes. Alton Towers targets a range of age groups including children and adults. Thus, any demographic change in these groups can affect its profitability and success in the market (Brinkman, Navarro & ‎Harper 2014). The third social factor is lifestyle changes. From time to time, consumers change their lifestyle in response to different factors including inflation and health trends. These changes can affect Alton Tower negatively or positively depending on the overall impact on product use and purchase. The final major factor is cultural diversity. Alton Towers targets both local and international visitors to achieve its business goals. This, cultural changes and diversity among the targeted groups can either promote or hinder the achievement of short term and long term business goals and objectives. The second are in the STEEPLE analysis is the technological factors. Today, the business environment has evolved and become very different from the past. A lot of these changes relate to technological advances in various parts of the globe. Iyoda (2012) avers that technological changes not only affect the methods of production but also bring new opportunities and avenues for improving sales and maximizing profits. One of the major technological changes is globalization which has made the world appear like a small village. Improvements i communication and transport has significantly connected the world (Venky 2012). These are issues that Alton Towers must take into account when thinking of its future. The second major technological factor is mobile technology that continues to improve communication and spared of information. Mobile technology supports new mediums of communication such as social media, and in the process, facilitates quick dissemination of information. The third major factor is new developments and inventions. Iyoda (2012) aver that business enterprises are always looking for ways of improving their sales and profitability. This trend has made technological and innovation critical areas of business operations. For Alton to compete with other entertainment organizations in the UK, it must always strive to come up with innovative products that meet the specific needs of its customers. Economic factors in the STEEPLE analysis refers to the fiscal and economic issues and conditions that influence the purchasing power of consumers and the overall profitability of an organization. The first major factor is the gross domestic product (GDP). The United Kingdom boasts o a strong economic with a high GDP. More specifically, it is has the fifth highest GDP in the world and the second highest in Europe. The second factor is the large population that provides a ready market for Alton Towers. Thirdly, the availability of disposable income in many UK households improves consumer purchasing power. Despite this being the case, the UK remains prone to inflation and economic recession as witnessed in 2008. In such instances, Alton Towers may not archive its long term and shorter sales projections. Environmental factors refer to the ecological factors that affect the operations of an organization. Alton Towers, like any other business enterprise, impacts on the environment. The impact can either be positive or negative. The negative outcomes include pollution and environmental degradation. The positive outcomes, on the other hand, include process and benefits like reducing waster, recycling, and supporting the ecological system. In England, the government and relevant regulatory agencies expect organizations to operate within the provisions of environmental protection laws like Environmental Protection Act 1990. In addition, Alton Towers must comply with waste management laws and embrace energy saving technologies. By complying with these laws, the organizations will not only avoid troubles with regulatory agencies but also create an image of a sustainable and environmentally friendly enterprise. The political factor encompasses changes in governance structures and policies that affect the operations of businesses. These changes impact on social, economic and legal environments where organizations carry out their activities. Thus, organizations must strive to remain put date with political changes and factors to achieve sustainability and realize long term business goals (learn 2009). In the present case, the first major factor is political stability in the United Kingdom. A stable UK provides Alton Towers with a favourable environment to carry out its operations. The second factor is government policies and attitudes. The United Kingdom has always affirmed its commitment to supporting legitimate business enterprise by providing a favourable environment for them. Such commitments can support Alton Tower’s initiatives and growth strategies. The sixth category of factors is the legal issues. These are the law determinants and regulatory considerations that can positively or negatively influence market decisions and actions of a company. Ref avers that companies must always identify and analyze legal factors in the states where they operate to avoid costly lawsuits and negative publicity. One of the major legal factors that influence how UK businesses operate is tax policies. All organizations, Alton Towers, included must comply with tax regulations. This entails paying taxes and declaring profits and revues when required by regulatory agencies. Secondly, employment to laws can affect the ability of Alton Towers to source and keep qualified professionals and practitioners within its ranks. The final major legal factors that apply to the organization are competition regulations and safety laws. The company must take all these legal factors into consideration when making vital business decisions and implementing its strategies. The third category of factors is the ethical consideration. These are the social beliefs and values that shape behaviour and actions in the society. Furthermore, they provide the foundation and benchmark for determining what is right and what is wrong. Alton Towers is socially responsible to a number of stakeholders in the market. They include consumers, suppliers, business partners, shareholders, employees, the government, and the public at large. Consequently, it must strive to make decisions that will give the organization a strong ethical standing in the UK and the world at large. Social factors Income distribution Demographic changes Lifestyle changes Cultural changes and diversity Technological Globalization Mobile technology New developments and inventions Economic High gross domestic product (GDP) Large population Availability of disposable income Inflation and economic recession Environmental Environmental protection laws Waste management laws Energy saving technologies. Political Political stability Government policies Legal Factors Tax policies Employment to laws Competition regulations Safety laws. Ethical Ethical standards Values and beliefs PEST Analysis PEST analysis is a strategic tool that lists and analyzes the political social economic and technological factors that influence an organization’s actions and work. These factors can either have negative or positive influence on the organization and it activities. In the case of Alton Towers, the major factors relevant to the PEST analysis are shown in Table 2 below. Political Political stability Government policies Economic High gross domestic product (GDP) Large population Availability of disposable income Inflation and economic recession Social factors Income distribution Demographic changes Lifestyle changes Cultural changes and diversity Technological Globalization Mobile technology New developments and inventions From the STEEPLE and PEST analysis, it is evident that Alton Towers, just like any other enterprise operates in an environment that is full of environmental, social, political, legal, ethical, and economical factors that can affect its profitability. Today, the political, social, and economic situation in the UK provides a favourable environment for the organization to increase its profits and achieve long term and short term business objectives. Unfortunately, globalization and technological advances exposes the organization to more public scrutiny. Thus, any negative event that occurs within and outside the park can have serious ramifications on its reputation and position in the market. In addition, the organization must strive to position itself favourable in the market by continuously engaging its stakeholders and communicating all vital information regarding its activities and operations. SWOT Analysis SWOT analysis explores both internal and external factors that can affect the operations, actions, and profitability of a business enterprise. Furthermore, it compares organization weakness and strengths with external threats and opportunities to provide a framework that can facilitate the realization of long term and short term goals (Boone and Kurtz, 2013). The table below summarizes Alton Towers’ SWOT analysis. Strengths Alton Towers targets a wide range of market segments Offers a variety of services and products to its customers It boast of famous rides like Congo River Rapids, Nemesis, Oblivion, Hex-The Legend Towers The organization boasts of a strong brand in the local and international market Weaknesses The organization focuses on services and products with high degree of seasonality Its location is only easily accessible to people living in Staffordshire, England It charges high prices for its rides, services, and products Opportunities Introducing innovative and new rides for its customers Forming strategic alliances with other organizations in the entertainment and catering sector Increase the range of services offered to customers Threats Increasing cases of injuries to customers as a result of technical failures and faults Increasing competition from other sources of entertainment such as video games Negative effect of government legislations Negative impact of recession and inflation Alton Towers is among the most popular theme parks in England with a high visitor attraction every year. Over the years, the organization has cut a niche for itself as a provider of innovative products and high-quality services for its clients. For the company to move forward, it should leverage on its strengths, address its weakness, respond to threats, and exploit new opportunities. One of the organization's major strength is the decision to focus on the different market segment. According to Dibb and Simkin (2013), organizations usually select specific sections of the market to work to chive business goals and objectives. By doing this, such organizations can focus all their attention on a particular group of people. Alton Towers, on the other hand, has gone beyond the tradition segment made up of children to attract adults and senior members of the UK population. This way, it has increased its market share and reduced dependence on a single customer base. The main weakness, however, remains the fact that Alton Towers levies exorbitant charges for its products. In the long run, this prevents price conscious consumers from visiting the park. The major threat that the organization faces today is increasing cases of injuries to customers as a result of technical failures and faults. These adverse events not only create negative publicity but also damage the company’s reputation. Luckily, the organization can address the problem by embracing technology and creating innovative and safe products for its customers. Communication Strategy Identifying the Target Audiences Effective communication during crisis or emergency is one of the most critical elements of disaster preparedness in an organization. Failure to engage stakeholders in such times is a severe weakness that can negatively impact on the profitability of an organization and its place in the market. The process begins with the identification of the primary audience. These include both the internal and external recipients of the planned message such as service users, staff, and the public. In the present case, there are three primary audiences that Alton Towers should focus on to effectively manage the crisis. They are families and victims, the presses, and employees. 5 W Families and Victims Press (news & media) Employees What Enlightened about the disaster Informed about the crisis and how it was managed Informed about the crisis and its impact on their everyday work Who The PR Department The PR Department The HR Department Where At Alton Towers At Alton Towers At Alton Towers Why They were directly affect by the adverse event The press disseminates information to the public Employees directly caused or were directly affected by the incident When Immediately Immediately Immediately How Press release, website Press release, media briefing Internal memo, meeting Communication Objectives Objective 1: To communicate reliable and verified facts about the crisis rather than speculative information during the disaster management period Objective 3: Protect and promote the welfare of the involved families and victims during the emergency management period Objective 3: To use the crisis to educate employees and the public on broader issues raised by the event Designing Message Effective communication occurs when there is accurately anticipation of the audience concerns and questions. In times of crisis, the organization must tailor their messages in a manner that address the concerns of the affect stakeholders and the public at large. According to the cognitive dissonance theory, the mental tension, and class that occurs as people strive to acquire information and understanding may distract communication process. Consequently, the message that Alton Towers decides to pass to various stakeholders should be clear, relevant, and rational. More specifically, the organization should enlighten stakeholder about what took place, how it occurred, the causes, and actions that it took to correct the problem. Choosing Media For every audience, the organization must use the most appropriate communication channels to pass the intended message. In this case, the first major audience is the victims and their families. To efficiently engage this group, Alton Towers can use a press release to the media and publish the same information on its website to reach out to as many people as possible. In the case of the media, the organization can use a press release and a media briefing session to pass the intended message. Finally, it can communicate with employees through an internal memo and a meeting where relevant managers will address various issues related to the event and its outcome. Summary Organizations face challenging situations from time to time. However, it is the manner in which they respond to such problems that determine whether they will come out successful or not. The Smiler incident that occurred in 2014 affected Alton Tower’s reputation in the local and international market. By adopting this strategic communication plan, the organization hopes to rebuild its brand and mitigate the crisis of confidence that it caused. More specifically, Alton Towers will provide reliable facts about the incident, protect the welfare of the victim and their families, and educate the public and employees about what has been done to address the issue. Element B – Press Release Alton Towers has provided theme park services to its local and international customers since the early 1980s (History of the Towers). On a typical day, the park opens at 8 am and closes at 5 pm unless there are special arrangements with clients. Today, Alton Towers boasts of nine roller coasters that attract visitors from around the United Kingdom. They include the Congo River Rapids, Nemesis, Oblivion, Hex-The Legend Towers, The Smiler, Thirteen, and Runaway Mine Train. These rides are very popular among Alton Tower customers and complete other services provided by the Marlin Entertainment Group within the park and hotel complex. Furthermore, the organization has always put up the necessary measures including constant monitoring of the rides, to ensure that customers remain safe as they enjoy Alton Tower services. On 2nd June 2015, the organization was operating four trains on the Smiler. At about 13.00 British Time, one of the four carriages experienced problems while on the Smiler. The technical team was called upon to address the issue. An engineer at the park decided to maximize the capacity by asking for the deployment of the fifth train. The team sent an empty train for a test around the Smiler without success. It was at this point that they decided to push it until it eventually engages the system and began to move. The team dispatched a second empty train which also got stuck in the rail but in a different location. The engineers did not know about the incident and assumed that everything was working well and handed the rides back to the operators. A 16 passenger was sent out to the ride and eventually stopped near the stalled test train. Unfortunately, the engineers thought that it was a computer error and overrode the halt. Their decision set the full train in motion causing a dangerous collision with the empty carriage. Although the company takes responsibility for the events of that fateful day, the management would like to inform Alton Tower’s customers and the public as a whole that the investigations revealed that at no time were riders at risk while on the Smiler. Secondly, all those who were involved in the accident were quickly proved by the Alton Towers staff as per the organization's general procedures and standards. Since the safety and health of customers are the Alton Towers' top priority, the Smiler remained closed during the investigation period. Besides, the technical team has assessed every part of the ride and reported that it is safe for use. In future, this will be a continuous process to ensure that customers are always safe. Alton Towers and its management and employees take the June 2015 incident as a major lesson that will improve the safety and wellbeing or riders within the park. Apart from continuously assessing the condition of the rides and trains, the organization has put in place computer based control mechanisms to identify and respond to errors. Besides, the technical staff will continue working with operators to ensure that customers are safe as they enjoy various rides through the park. Alton Towers Spokesperson Reference List Alden, ‎J & Boland, P 2013, Regional development strategies: A European perspective, Routledge, New York. Alton Towers 2016, History of the Towers, Available http://www.towersalmanac.com/history/index.php?id=1 Boone, LE & Kurtz, DL 2013, Contemporary Marketing, Cengage Learning, Boston. Brinkman, J, Navarro, I, & ‎Harper, D 2014, Unlocking the business environment, Routledge. 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