Unit 6 The Internal

Environment: Capability

Risk Management and Strategic Planning

Reading

Book Ch

Tribe, J, (2010) Strategy for Tourism, Goodfellow Publishers, Oxford.

6

Capon, C. (2008) Understanding Strategic Management, Prentice Hall: Hemel Hempstead.

3

Tribe, J. (2005) The Economics of Recreation, Leisure and Tourism, Butterworth Heinemann, Oxford.

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Johnson, G., Scholes, K., and Whittington, R. (2008) Exploring Corporate Strategy, Prentice Hall: Hemel Hempstead.

3

Learning Outcomes

After studying this chapter and related materials you should be able to understand:resources and competencesresource auditperformance monitoring and controlevaluation of productsSWOT analysis

and critically evaluate, explain and apply the above concepts.

Discussion Point

How do we know if our internal resources are being used well?

What risks arise from our internal resources

What makes a good product or service?

Resources and Competences Resources are the inputs that are used for the

activities of tourism entities. Competences are the skills and abilities used to deploy resources to achieve a given end. Core competences are defined as those which are central to the entity’s mission and those which enable it to develop its competitive advantage.

Resources may be classified under four headings:physical resourceshuman resourcesfinancial resources, andintangibles

Balanced scorecard

The balanced scorecard collects performance data from a range of an organisation’s activities.

It arose from criticisms that other measures are too narrow

Four areas that are typically targeted for review are:Financial perspective (e.g. profit margins, revenue

growth, costs, cash flow, net operating income)Customer perspective (e.g., market share, customer

satisfaction)Internal process perspective (e.g. asset utilization,

supply chain management, customer management, innovation and relations with the external stakeholders),

Innovation and learning perspective (e.g. human capital, information capital and organization capital).

Comparative Analysis

Comparative analysis can be made by reference toLongitudinal Analysis which uses an

organisation's historical record to compare data on performance over time.

Best Practice which uses data from other organisations in an industry to provide information on the highest performance standards attainable.

Evaluation of ProductsPart of an organisation's capability

review will focus on an evaluation of current products.

There are several methods of analysis including:effectivenessvalue chain analysisportfolio analysis, andproduct life-cycle analysis.

SWOT Analysis

SWOT analysis is an executive summary of the different elements of strategic analysis. Under SWOT, the detailed analysis of an organisation's external environmental and internal resource position is distilled and summarised into key factors.

Once the key SWOT elements have been identified, it can be productive to prepare a grid with strengths and weaknesses and opportunities and threats.

Identification of an organisation's situational position by means of a SWOT analysis is an important phase in prior to consideration of strategic options which is the subject of the next chapter. Appropriate strategies are likely to:align opportunities and strengthstransform weaknesses, andovercome threats

SWOT Analysis

Internal (Capability) Analysis Strengths Weaknesses•Resources

•Products

External (Environment) Analysis Opportunities Threats

•Competition

•Political

•Economic

•Socio-cultural

•Technological

Task 2

Task 2: Prepare a SWOT analysis for your organisation

Unit 6 The Internal

Environment: Capability

The End

Strategy for TourismRisk Management and Strategic Planning