PRACTICAL ASSESSMENT TASK

Managing Small Business Operations: Adventure Travel International

Business Overview

Adventure Travel international is a national tourism and travel industry that provides adventure and sports travel packages to the Pacific Northwest people. The business is in the tourism sector and is a service sector that provides recreational services as its products. The company is supported by the regulatory margins of the Pacific Northwest tourism board and the tourism organisation of Woodville. It is also promoted by the certified travel counsellor (CTC) certification board. The company has the following key business goals:

• To become a reliable service provider of adventure tourism services in the Pacific Northwest.
• To have sales of $650000 by the end of the third year of operation.
• To maintain margins of 10% from Airline associated travel.
• To derive strategic relationships with tourism service providers both nationally and internationally.
• To obtain an image of being reliable tourism service providers by the customers.

The mission of Adventure Travel International is to become a specialised brand in adventure tourism and travel period this is through the provision of consultation and customised travelling packages and arrangements.

Adventure Travel international is a sole proprietorship that is to be managed and operated by Shea Delaney. The organisation is to become a small functional company that operates in the town of Atkins Grove, California. The company will be a small business operation that will have not more than 100 employees within the first 5 years of operation in the travel industry. All the potential locations of the premises will be 800 to 1000 square feet. The company will largely be operating in the Woodville area with a population of 325000 people. One of the implementations of the company involved using the internet and computerized reservation systems to revolutionize the travel industry. The technology will involve the application of certain strategies such as discounting and affiliation in the tourism and travel industry of the Woodville area.

Action Plan

An action plan will be important in linking the goals and the mission of Adventure Travel International to the current job operations and short-term strategies.

The following business goals will be the Prime of the current action plan:

• To use technology to become an established brand and an effective service provider of adventure tourism and travel packages.
• To have a high quality of service and an efficiency of operation.

To achieve specific objectives, the application of internal organisation strategies requires meticulous handling and enforcement (Hitt, Ireland & Hoskisson, 2012). The following are the required strategies or procedures relevant to the action plan of Adventure Travel International:

• Using technological applications such as online branding and computerized reservation systems in internal management and marketing.
• Operating under an optimised organisation structure and system of operation.

Key performance indicators are important in operational targets and performance measurements that are in place within an organisation. The following operational targets will be used in this case:

• Establishment and efficiency with the use of technological systems and social media marketing by the internal departments of management and marketing within the organisation respectively.
• By observational means, the functionality of the internal organisation should be fully functional as according to the internal organisation structure, without enforcement from the management.

The following table outlays the respective action plan roles and their respective allocations:

Communication and Management Plan

Communication between stakeholders in an important procedure that ensures the efficiency of internal functionality (Ansoff, et al., 2018). The communication between internal stakeholders is important in implementing the action plan. An effective communication system is therefore an important asset in internal organisation efficiency. The system of communication in this case will involve a chain of command for the internal organisation functionality. Communication messages will involve queries from the employees to the management. The internal computer systems will also enable communication messaging to occur between the employees. Social media will be used to communicate between the internal organisation and the outside environment including customers and the public.

In achieving organization goals, tracking of the internal organization activities is an important action as discussed by (Hitt, Ireland & Hoskisson, 2012). Monitoring and management is a key role in business functionality. The organisation structure must be adhered to in terms of authority and power. The diligence of each job role or post has to be insured through monitoring and consistent enforcement. Monitoring and management will involve following the chain of command and the organisation structure. This will follow the following format:

The structure will also be encoded into the computer system to allow the required chain of command and communication flow.

Hazards, risks and issues

Work health and safety (WHS) or occupational health and safety (OHS) legislation are important elements of business operation periods this involves the documentation of foreseeable Hazard which are identified and controlled accordingly. Risk management is a legal requirement for Adventure Travel international and it involves identifying the hazards that are present in the workplace, their seriousness and defining a method of control for the hazards. The identification for hazards involved workplace inspections, consultation with employees and registering injuries or incidents. Occupational risk management will involve environmental Hazard of operation.

Considering the business does not have any industrial actions, the associated risks within the business revolve around the internal accident, the use of machinery, electricity, workplace incidents or emotional drain due to customer service demand. The business has no compliance issues with health and safety boards considering the alignment procedures to occupational health and safety. The internal plan of operation as various ethical considerations that involve internal care for employees and viable protection from the management. There are also cultural considerations that involved additional incentives, financial plans, and events for employees. These are cultural concerns that we focus on improving job satisfaction and creating a bond between the internal employees. The financial plans such as insurance are also effective in risk management. The organisation must cater to the health needs of the employees to increase the sense of responsibility and also improve job satisfaction.

Innovation Strategies and Technology Optimisation

Innovation and technology are an important element that has changed the internal operations of the business and how they link to the external environment (Al Wazzan, 2018). The implementation of technology for Adventure Travel International Business is important in creating internal value through process innovation and external value through online marketing strategy. The present application of technology in the company involves the use of computerized reservation systems that are common and effective in the operations of the travel agency. Adventure Travel International also uses the internet and it involved an application for research and marketing actions. The company also uses better transport machinery that is more reliable for a tourist/travel agency with added technology such as radio communication. The functionalities of such technological applications are effective, however, these operations could be improved.

The company should implement more technology in its operations to increase efficiency. The use of customer relationship management (CRM) software should be embraced within the company. The CRM software should be integrated with the computer reservation systems and the internal systems of Adventure Travel International. This means that an integrated system should be developed that incorporate all the three crucial functionalities of customer reservation, internal operation and customer relationship management. Social media should also be used as an interactive method for customer engagement. Better marketing tools should be implemented within the marketing techniques of the company. A good example of the implementation of technology will be creating brainstorming sessions on how to improve the internal computer systems for better functionality and communication. The employees should be able to dictate what they want in the internal system to make it suitable for the use (UI and UX).

Business Quality System and Improvement Plan

For an organisation to be successful quality must be implemented through the system of functionality. Creating an environment that is supportive of quality is a culture that is crucial for organisation success (Sundiman, 2018). The characteristics of the product packages within the tourism agency should be comprised of certain features that satisfy the needs of the customers. Adventure Travel International aims at using technology in gaining competitive advantage in the tourism and travel industry in the Woodville area. The use of technology in improving internal functionality, quality of services and marketing efficiency is a critical success factor (Bandarian, 2018). The organisation need to see this objective through the implementation of the functional measures as illustrated in other sections.

The implementation will, therefore, be tracked by significant feedback on customer satisfaction through the technological resources that have been implemented in the internal systems of the company. The customer must be wary of the technological applications that are used in Adventure Travel International, this includes, for instance, the ability to navigate the company website and perform several actions such as booking for a tour or writing a review about a specific service. Customer online feedbacks will be an important tool in estimating the traction towards the objective of the company of using technology in customer satisfaction. This will be important in creating a harmonized methodology of estimating traction when evaluating the achievement of the objective. In cases where the traction is unsatisfactory, Adventure International Travel would further conduct surveys to estimate the efficiency of the operations and other methods of obtaining feedback. The procedures of total quality management are important in ensuring that the organisation functionality is headed towards the required goals and objectives of the organisation.

System Definition and Implementation

The success of a business plan and business lies in system performance evaluation and adjustment. The company targets a sales revenue of $350,000 a year. This involves identifying and exploiting opportunities to capture margins of up to 25% from certain parties. The present systems must be adjusted and modified to improve the efficiency of functionality and the attainment of objectives. In gaining traction, Key Performace Indicators are will be scaled in terms of the total objective desired after the three year target period. This means that the KPI used for traction will be revenue. The company will estimate annual revenue and compare it to its total target fraction (after three years). Therefore, a third of $350,000 would be the annual revenue target of the organization. Adventure Travel International will therefore use the revenue method to estimate performance and traction to the set objective(s).

The application of revenue estimation methods in estimating performance means that there should be revenue control. The application of this method means that revenue control is a crucial role for the internal financial managers of the company. The books of accounts will be effectively managed through integrated IT account systems. The payable amounts will be automatically logged and recorded in the system, this will also improve accounting efficiency. Revenue control will be an action that bee conducted on the integrated computer system which will also be managing customer bookings and payments from customers and to other stakeholders. The financial management report should be automatically generated, this will strengthen the revenue control policy. The integrated system will also favour other departments such as customer service. The system will have an interactive user interface for customer bookings, enquiries, etc. The CRM should also be connected with the social media platforms of Adventure Travel International, to increase the efficiency of customer engagement.

When it comes to internal control, customer service TQM will also be better tracked using the system, through a feedback and reviewing system. Stock and inventory control should also be conducted on enterprise management software (EMS). The integration of stock records and inventory should be handled by a procurement official from the operations department. The system input regarding stock should be made by the procurement manager(s), in the EMS section of the integrated system. Therefore, stock control is a role that should be entirely handled by the procurement department.

The staffing organization will be dependent on the organization structure. Through the branches of Adventure Travel International, the subsets of the organization structure. The adjustments of staffing will also be made as per the scales of the number of customers served and the revenue traction. The product/service provision will be managed according to customer demand. This means that the company will adjust according to the demand created for tourism services. Product packages for tourism adventure will be the main product. To make product adjustments, users can be able to request for product quotes in case they require further customization.

Environmental waste management is reliant on the premises activity. However, every premises of Adventure Travel International will be compliant with waste management regulations. The company should hire an external waste manager to manage its generated waste material, mostly from internal office activities and premises visit.

Monitor and Review

In gaining traction, Key Performace Indicators are will be scaled in terms of the total objective desired after the three year target period. Their review and monitoring will involve the estimation of the fraction of objective covered versus the total timeline.

Revenue estimation methods will be reviewed with finance applications. This method will require the role of internal financial managers of the company. Revenue control will, therefore, be an important factor in monitoring and control. Financial management reports that are automatically generated will be reviewed to strengthen the revenue control policy. With customer service, feedback monitoring, reviewing and replying will be the key actions. Customer feedback is an important input in estimating the progress generated through customer service.

Internal controls of stock and inventory will be tracked and monitored from the records obtained from the system; enterprise management software (EMS). The integrated system will make monitoring and evaluation an effective action.

Staffing efficiency will be scaled according to the fraction of objectives achieved compared to dedicated timelines. The organization structure will also be reviewed thrice a year to identify loopholes and make necessary adjustments as according to the amount of work being handled.

Adjust Business Plan

The business plan for Adventure Travel International is oriented to attain several objectives, tracked through revenue, technology implementation and customer feedback. The organization, therefore, needs to employ better customer service, internal efficiency and technology implementation. To adapt to this, a new organization structure is proposed, suitable for a tourism and travel agency. The use of technology is also recommended, through the implementation of social media in marketing and computer systems in value creation roles (Met, et al., 2020). The management plan, therefore, needs to experience changes in terms of organization and functionality. As proposed, job roles need to be monitored, evaluated and timed.

Future planning and evaluation will also experience adjustments as an internal EMS software will be used for internal management actions. The organization of events will also be sourced using the chain of the command structure, this will make evaluation efficient and trackable. The company could also explore the new opportunity of using social media marketing for customer engagement and sourcing ideas for new adventure products. The business needs to capitalize on maximizing on the achievement of objectives.

Reflection

Looking at internal strategy changes, implementation is the trickiest part. This is because many environmental factors do not favour change. Some many requirements and roles need to be attended to effect strategic change. Therefore, creating environmental understanding and organizing the change through strategy is an important action. Looking at the case of Urban Creatives, a digital advertising agency, established in 2016, there are perks of strategic management that could be insightful in this case.

Urban Creatives was a digital marketing agency that combined freelancers and handled digital advertising contracts and jobs. The company had an organizational structure that was delivery oriented, however, it lacked efficiency. This is because, a large section of the Urban Creatives team was comprised of freelancers, who had many other things going on. Attaining a full-time commitment was a tricky target to acquire, especially for the operational department of the agency. The company also lacked internal communication and a strong chain of command in its organization structure. Many of its workers also worked from home, and its premises were mostly empty. To effect the strategic change, the value had to be proposed to the employees, to dedicate more time, and more regard. Employee terms were readjusted and necessary recruitment changes were made.

References

Al Wazzan, D. A. (2018). A Framework for the Strategic Management of Information Technology. American Journal of Business and Management, 7(1), 14-43.

Ansoff, H. I., Kipley, D., Lewis, A. O., Helm-Stevens, R., & Ansoff, R. (2018). Implanting strategic management. Springer.

Bandarian, R. (2018). Strategic research and technology management in research and technology organisations. International Journal of Technology, Policy and Management, 18(4), 360-377.

Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2012). Strategic management cases: competitiveness and globalization. Cengage Learning.

Met, İ., Uysal, E. U., Özkaya, K. S., & Orç, E. (2020). Key Success Factors for Strategic Management in Digital Business. In Digital Business Strategies in Blockchain Ecosystems (pp. 283-304). Springer, Cham.