‘Strategy is therefore, the general plan of action for achievement of objectives’ Francis Buttle (1993 Hotel and Food Service Marketing)
Kotler, Bowen and Makens (2003 Marketing for Hospitality and Tourism) define strategic planning as ‘… the process of developing and maintaining a feasible fit between the organisation’s skills and resources and its changing marketing opportunities.’
1.4 Buttle(1993) says that strategy differs from both policy and tactics and goes on to say that while policy refers to the more or less permanent constraints or conditions which impinge upon decision making, implies that strategy is a lot more flexible and that as situations arise and trends change, strategies are being or should be reviewed and updated.
1.5 This suggests that strategy is an emergent process rather than a rigid, set plan. This is supported by McGee, et al (2005 Strategy Analysis and Practice) when they quote Mintzberg et al (1998) as saying ‘intended strategy fails to recognize strategy as an emergent process which is best seen as a pattern in a stream of decisions.
McGee et al (2005) go on to say that strategy is flexible and subject to constant reviews and adjustments for an organisation to be successful.
1.6 In the hospitality and tourism industry, countries, hotels and tour operations are always competing with each other. Given the fickleness of consumers and the speed with which they are willing to move to other providers, it is imperative that organisations formulate strategies that would keep their target markets interested and attract new customers.
1.7 Kotler et al (2003) say that strategic planning is the process of developing and maintaining a feasible fit between the organisation’s skills and resources and its changing marketing opportunities.
In other words, when formulating a strategy, an organisation’s employees are crucially important in the executing of these strategies. A successful outcome is wholly dependant on how consumers perceive the organisation through the representation by its employees.
1.8 A business can have the best ideas and plans, but if the human resources i.e. if the workforce is unable to comprehend and carry out these instructions, the organisation is likely to fail in its operations.
Therefore it is necessary that an organisation conduct a SWOT analysis before formulating a strategic plan. By internally analysing the organisation’s strengths and weaknesses and its external environment for opportunities and threats, the organisation would better understand how best to proceed with its strategic planning.
1.9 The strategic planning process involves identifying the organisation’s mission and objectives, environmental scanning, strategy formulation, strategy implementation and evaluation and control.
Carrying out a PEST analysis is also beneficial to the strategic planning process. Political and economical stability is necessary for financial as well as physical safety. Society and the culture of the operational area should be taken into consideration when planning and technological advancement would keep the organisation abreast and ahead of global developments.
CASE STUDY
In the aftermath of the events of September 11th there was a massive slump in tourism worldwide. London itself lost billions of pounds of visitor income. The mayor of London recognised the need for a concerted effort by both the public and private sectors to promote London as an attractive and safe tourist destination. Until then, the capital had no co-ordinated tourism plan or governmental support or regulation.
With September 11, when visitor numbers were greatly affected, the government and the tourism industry found the need to reassure tourist by making a concerted effort to portray London as a safe and exciting place to visit. Until then, the London tourism agencies had relied heavily on London’s heritage and history as well as the capital’s vibrant social scene as a source of income from tourists.
The mayor began by promoting London internally, within the UK itself; enticing domestic customers to the capital. This was done by selling cheaper tickets to London’s West End theatres and promoting a series of free cultural events in the city. He also instigated traffic-free shopping days in the West End.
Secondly, along with the Greater London Authority (GLA) and the London Development Agency (LDA), he set up the London Tourism Action Group (LTAG) which worked with the London Tourist Board.
He then went on to form Visit London a detailed agenda on the plans and actions necessary for promoting tourism in London. The mayor wanted this done over a three-year time period.
The mayor believed that the tourism industry had lacked the necessary government support and any sense of strategic direction. He outlaid a three-point plan as a checklist. He has laid out any issues that might occur during the next three years and provided alternative strategies should such occurrences take place.
CRITICAL ANALYSIS
3.1 The mission should define the competitive scopes within which the company will operate. Kotler et al (2003). In the case of the London strategic plans, this was the competition from other global tourism destinations as well as competition from other UK attractions.
3.2 The mayor and his agencies needed to form Strategic Business Units (SBUs) to work on each aspect of the tourism action plan. Buttle (1993) says the SBU is the planning unit. Forming Strategic Business Units would ensure that issues such as infrastructure and cultural development are properly managed and catered for.
3.3 The fact that the Mayor of London, Greater London Authority and the London Development Agency found the need to formulate a strategic tourism plan in the wake of September 11 shows that the macro-environment greatly influences strategic thinking and proves Mintzberg et al’s (1998 McGee et al 2005) theory that strategic planning happens as a result of outside influences and is flexible rather than being a rigid set of ideas and should be constantly reviewed and updated as needs and situations change.
However, any further outcomes would be the result of what Mintzberg refers to as ‘deliberate strategy’ which would be the result of the management planning function where the mayor, GLA, and LTAG deliberately formulate strategic plans in anticipation of further external events i.e. contingency planning.
3.4 The question would arise as to the evaluation process used to ascertain a positive outcome: did the agencies involved in London’s strategic tourism plans involve the community itself in the decision making process? Murphy and Murphy (2004 Strategic Management for Tourism Communities: Bridging the Gaps) say that as the host community is being sold as a commodity, the industry needs to be in agreement with the community over tourism policies.
The mayor could have sought the inclusion of the community via referendums, surveys or other methods of gaining information feedback, because being such a large city, it would take more than council meetings to decide policy which would harmonise with the community’s interests.
3.5 Increased visitor numbers would incur increased security, both physically and health-wise. Visitors to London would need to be assured of their personal safety as well as the host community being reassured that their safety needs are met. Since the events in Bali, September 11 in New York, and 7/7 in London, it is world-wide knowledge that the UK, with its political liaisons with America, has made London a prime target for terrorists.
As a result, the host community has clamoured for and received more stringent security measures as is evidenced by the greater numbers of visible police patrols.
3.6 In terms of infrastructure, which is important when marketing tourism, as tourists need hotels, conference and exhibition centres, theatres and stadiums to name a few, London has expanded to include modern facilities such as the O2 Arena in Greenwich; the addition of the Jubilee line to the underground train systems and the proposed extension of the East London line; the Excel Exhibition Centre in the docklands; a rebuilt Wembley stadium and the proposed site to accommodate the 2012 Olympics. Most of these are built away from the centre of the capital and would provide employment for thousands of workers from less affluent areas. In other words, the mayor is ensuring an even spread of resources and income as well as providing for the needs of every type of tourist.
3.7 Kotler et al (2003) set out a marketing strategic plan which when put into perspective of the London tourism strategy can be analysed thus: market penetration: London is already a frontrunner in the tourist destination market, therefore penetration is not necessary, however market development, which looks for new markets in which to expand the product could be defined as the countries which have newly joined the EU and is an opportunity for London to market itself. Product development strategy allows for the strategic planners to identify ways in which they could improve the ‘product’ namely, London as a tourist destination, perhaps by improving infrastructure and portraying London as a safe and tourist friendly destination.
CONCLUSION
To identify the success of the strategic plans outlined for development of tourism in London, the organisations involved in the strategic planning process must ensure that the plans are specific, measurable, achievable, realistic and within a workable time period. Goals must be set and systems put in place to measure achievement or room for improvement must be put in place.
In order to successfully implement strategy, an organisation must consider several key areas. First it must establish how the strategy will be resourced. Second it must establish how the current culture, structure and internal systems are able to meet the challenges of the strategy. Finally, most strategies necessitate some degree of internal change. Evans et al (2002)
In the case of strategic planning for London tourism, is could be the attempts the mayor is making to receive some funding from the private sector as well as investing funds from the London Development Agency. A PEST and SWOT analysis would determine the status of the current culture, structure and internal systems. Internal change could mean the way the host community adapted to the new strategies and ideas to facilitate the forward movement of the tourism development.
REFERENCES
Buttle, Francis (1993) Hotel and Food Service Marketing – A Management Approach. Cassell Education ltd. London
O’Connor C (2000) Hospitality Management A Strategic Approach. Blackhall Publishing. Dublin
Evans, Nigel, Campbell, David, Stonehouse, George (2002) Strategic Management for Travel and Tourism. Elsevier Butterworth-Heinemann. Oxford.
Murphy, Peter E and Murphy Ann E (2004) Strategic Management for Tourism Communities: Bridging the Gaps. Channel View Publications. UK
McGee, John, Thomas, Howard, Wilson David (2005) Strategy Analysis and Practice. McGraw-Hill Education. Berkshire
Phillips, PA, Moutinho, L (ed) (1998) Strategic Planning Systems in Hospitality and Tourism
Stahl, Micheal J and Grigsby, David W. (1997) Strategic Management: Total Quality and Global Competition. Blackwell Publishing. Oxford.
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