Unit 11 Travel and Tourism Entrepreneurs Assignment
Diploma in Travel and Tourism
Unit Number and Title
Unit 11 Travel and Tourism Entrepreneurs
Travel & tourism industry is the service sector in the economy. Its main reason is to provide service to the people by offering them the facilities of travelling, accommodation, sightseeing etc. A successful entrepreneur takes his employees with his own in taking every step ahead for the benefit of the organization. Different qualities are required in a successful entrepreneur. Beyond concentrating on profit motives, it is important to look after about the customer satisfaction.
1.1 Discuss skills needed for successful entrepreneurship.
A successful entrepreneur must have the following skills. It shows the effectiveness of the entrepreneur to carry the business further effectively and manage all the activities held within the group. He should have that capability used to face the problems arise due to the changes at outside the group. The best qualities he must have are:
- Headship: Headship means leadership. An entrepreneur must have this quality who knows how to take important decisions independently. He controls all the activities and makes commitments with others on the behalf of an organization. A one who can take all his employees all together and represents an organization as one in front of others represents the headship quality.
- Skills of initiating partnership: An entrepreneur must have the skills of joining people together whether he is having the capability of joining employees with his organization or doing partnership with the other entrepreneur in the same industry (Altinay, L & Paraskevas. A, 2008). The motive of such skills is to combine the venture and starts the new partnership for achieving profits.
- Clarity on the initiating plan: The concept for starting a new task should be clear to an entrepreneur. He must know about the goals of the enterprise which they have to achieve and a proper planning is requires to meet them. Until the concept is clear, no one can move forward to meet the goals.
- Marketing & planning: Proper planning requires for accomplishing the goal. Analyse the market to evaluate the environmental factors and also analyse the internal environmental of an organization. After analysing situations, an entrepreneur is the one who takes the final decision that which strategy is to follow to meet the goal like attaining achievements, earning profits and giving a new shape to an enterprise.
- Handling Risk: Risk is the main factor of the business. Without it running of any business is impossible. They both are the two sides of the same coin. Risks of competition, facing loss, loss of goodwill etc. are such fears through which an effective entrepreneur keeps the capability to get rid out of this.
- Motivation: A person must have his own will to start a new business. He should be motivated from inside. This will only give him the power to carry on the business and meet the objectives (Carr. N, 2003).
- Planning at the lowest level: Planning is an essential part to run the organization. An entrepreneur never thinks only about the economical achievement. The other important aspects which are on the targets for an entrepreneur are social and environmental achievement.
- Work for the society: A successful business is the one who don’t always think about the profit motive but the satisfaction of consumers is also on their list on priority. They should consider the benefits of the consumers/ employees i.e. society. They should make the decisions on the basis of the welfare of the society.
- Maintain good Relations: maintaining the good relations with customers and employees or partners always takes an entrepreneur on the lead. A healthy relation always helps in flourishing the business.
- Goal oriented: An entrepreneur must set up the short term / long term goal and keep his eye focusing on the completion of these goals that finally gives the benefits to the organization and society.
1.2 Produce a self-appraisal that identifies strengths and weaknesses and strategies for development benchmarked to successful entrepreneur.
As all of the above skills are the qualities for a good entrepreneur. Self-evaluation/ appraisal tell about the strength & weakness of your own. No one is perfect. So, whatever the weaknesses founds it is always better to try to overcome from those and make yourself efficient.
- Motivation: I always try to motivate myself with all my strengths. Whatever the qualities I possess, really want them to make them stronger. E.g. I have a good knowledge about new geographical places and always curious to know more. This curiosity always motivates me to explore myself more (Fesenmaier. D, Werthner. H, Wober. K, 2006). This quality helps me in running an enterprise of travel & tourism
- Good relations with others: The business of travel & tourism is based on the contacts. One must have a quality of social interaction and maintaining good relations with the others. I have such quality which helps me to be a successful entrepreneur.
- Innovative ideas: New creative ideas, thoughts are necessary for every business. It always helps the enterprise to offer something new to customers & attracts them towards the product. I have such quality and it is observed by my teachers when I was in the school.
- Good in planning & organizing: Planning is the first step to meet the goal. I have observed such quality in me since my childhood. That I managed and organized my all things very well. If I had to go for some picnic with my family, I started planning a week before for that which makes my trip always memorable. Such efficiency helps me in the venture of tourism also.
- Risk Bearing: I am not capable enough to bear all pains & risks alone. Business activities are all based on the risk. So I think that this weakness of mine will act as a barrier in becoming a good capitalist.
- Maintaining financials: I am not superior in finance. It is the major part of any business. Business motive is to earn profit. So, weakness in recording and maintaining the financials will cause the problem in the business (Horak. S and Weber S, 2000). If any of the record entered wrong it will affects the balance sheet.
- Headship: Poor in the leadership. I can perform as a part of a team and possess such qualities to make the team win but not play as a leader. So, it’s not my cup of tea.
- One can join the personality development sessions to gain the good skills in communication and maintaining new relations with the others.
- After taking the classes in accounting from any of the professional or enrol in any accounts professional course will sort the problem of handling financials.
- Leadership Quality can only come when one is always ready to take the accountability. Problem of headship can only sort out after doing self-evaluation. It is important to struggle with your inner fear and get ready to take the charge (Smith. C and Ward, G. K., 2000).
- Strength of one may be the weakness of others so personality development courses always helps and guide the person in developing communication, interpersonal relations, widening of thoughts & opinions etc. Always better to evaluate your own on regular intervals & try to overshadow with the problems.
2.1. Analyse the development of an entrepreneurial enterprise.
One of the famous personality who has established his foot in the travel & tourism industry by starting the business with the name Virgin Atlantic, he is Richard Branson. He has developed his enterprise because he possesses all such qualities which a successful entrepreneur must have.
Skills Possesses by Mr. Branson-
- Innovative: Mr. Branson has such quality and tries to implement his all innovative ideas on every new Project of the business. He shares his thoughts & views with the employees and takes the fare decision which is good for the business. He offers new luxurious offers in tourism business that attracts the customers towards his business (Schutte. G, 2003.).
- Bonding: He always tries to maintain the good relations with his employees & customers. He never makes a difference in any of his employees. Such quality makes him a hero in front of his staff. His employees have a strong bonding with him and always consider him as a good counsellor and motivator.
- A good leader: A leadership quality helps him in setting up a huge umpire under the name of Virgin group and establishes his identity in the chain of Hotels & tourism. He acts as a leader but with the agreement of all his staff. He does not walk alone but takes the other people all together that makes them united.
- Obsession for work: when he works, he always thinks fro it only and enjoys him in all the activities of it. This quality helps him in giving the 100 % in his profession. Whatever works he do he take them as a challenge and enjoys fully, never take it as a stress. When you worship your work it gives only success (Smith. S, 2010).
2.2 Evaluate factors that have led to the success of an enterprise.
The main factor that takes the virgin Atlantic, in fact the whole virgin group towards success is by doing strategy. There are many achievements that are faced by the Mr. Branson.
- He has started his business in the travel & tourism in 1984 and makes the recognize name in this industry with the name of the Virgin airlines.
- In 1984, he has taken the first trip in his airlines with his family and friends to just introduce the world with his company. The first flight for the public was on 22 June 1984.
- He has increased his business in 1985 by expanding it towards the virgin Hotels.
- In 1987, a huge revenue generated by the airlines after selling an airlines tickets to 1 million passengers.
- After it the business moves forward and never looks back. It is the one who first offers the facility of sleeping seats in the business class.
- He had also join hands with the airlines of Malaysia & Singapore and moves ahead his business by joint venture with the share of 51 % and 49 %.
Strategies follow to meet above achievements.
- Promotional strategy: Virgin Atlantic follows the various promotional strategies to promote its business through various ways. It is possible through various companies those offers the great deals to the consumers and offers the good packages of tourism to attract them.
- Strategy of marketing the facilities: Marketing done by the virgin Atlantic to the consumers to tell them about the luxurious facilities offered to the travellers on their airlines (Sherlock. K, 2001). These offers give them the level of comfort to consumers and also attract them.
- Strategy of new venture: virgin join the hands with the other airlines/ hotel/ tourism companies so that they can attract the consumers by providing the facility of accommodation also with the air tickets. The company has done joint venture with both the Singapore and Malaysian airlines.
- Strategy for increasing sales: sales can increase by giving the attracting discounts or one free tickets with two or fare concessions on the tickets for children etc.
SWOT (Strengths, weakness, opportunities & threats) of the virgin Atlantic.
- Strengths: To provide the full satisfaction to the customers. It is always on the company’s priority list. Compete with the new innovative ideas to get promote the products offered by the companies. Joint ventures done with the other companies to increases the wideness of the company so that motive is only to increase the list of consumers.
- Weaknesses: In previous years it is noticed that the airlines are restricted to the limited number of place and when it comes the matters of showing financial statements then Mr. Branson has hidden all the details of the it share. A hidden attitude with no transparency makes the collaborators shifts back (Ryan. C, 2002).
- Opportunities: With the effect of the good will of the virgin airlines, the group is getting new venture to expand the business.
- Threat: Competition is the major threat which causes the fear and stress that creates the problem for the entrepreneur in taking initiatives for the betterment of the business. Uncertainties like hijacking aircraft etc. can cause stress but that is all unpredictable so strategy should make to overcome from these problems but not let them overshadow on their performance in completing the work.
3.1 Evaluate sources of finance and support available to enterprises in the travel and tourism sector.
A long term Sustainable tourism in investment & financing should help in implementing the new strategies for flourishing the business. There are various sources through them the company can raise the funds and use their exited investments in flourishing it. It requires the investments in making new developments, redevelopment of strategies and regenerating the products and gives them the new outlook to attract the customers. Travel & tourism companies also organize various programs to develop their services. Investments are generated either from the existing partners those can share their money as they have an equal share in the profits of the company or they can go for external loan from the bank or funding from outside like they can arrange some programs that can arrange funds for an expansion of the company in the industry. New investors also come forward for providing funds. Research done on the sources of financing shows the important points below:
- In this industry there are various ways those provide the funds but it’s an entrepreneur decision that from whom he/she can take the money. It is very crucial decision that from whom the funds should arranged. Identify the correct option is the part of an accountability.
- Invite other investors to invest some funds on the company by showing them their financial statements so that the new investors get aware that they will not in loss after investing here. Benefits from the previous year investments helps in gaining the new investments.
- Product development also helps in arranging the funds from outside an organization. It assures the investor that this investment can gives the good return as the business of travel & tourism have been expanding from the past few years and they have capture on the whole economy. Major part of the economy’s share is of this industry.
- Major contribution by the Travel & Tourism Industry in GDP.
- Certain criteria follow by an investor also. He examined the demand of the product i.e. destination, brand name, entrepreneur support to the company, planning, regulatory framework and supportive function of the company (Taylor. JP, 2001). He assures himself before putting his hand in doing investment in any of the new project.
- Business loans are also provided to the companies in the tourism sector. It is easily given to the small scale enterprises rather than the large scale. UK government has also started the facility like “Business loan finder” that are easily access buy the companies in getting loans.
3.2 Develop and justify the potential for success of a concept for an enterprise in a travel and tourism context.
Potential of a company can only evaluate from strengths, weaknesses, threats, opportunities etc. Marketing mix- product, price, promotion, and place also become an asset for an organization of travel & tourism. Market analysis can be done to make the comparison of the company’s strength that where the company is lying in the market and how tough competition can company gives to its competitors. It is very essential to know about the target market. It means that in which market company is introducing its products so after market analysis a company gets aware the expectations of the consumers from the company. Finally a consumer satisfaction is only top most priority (Richards and King, 2003).
The company who is having the potential to meet its objectives and success are based on the below points.
- Analyse the market: The main opportunities Virgin Atlantic gets are that they can keep the potential to capture the market with the GDP of 1.76 billion. After noticing the drastic expansion in the customers they have the opportunity to implement their new ideas like easy travel/ easy access of air tickets. A new start with these opportunities can give the opportunity to the company to increase its financials. Besides opportunities threats of the company can also be analysed. Threat from the competitors and threat of losing the customers van gives the strength to an entrepreneur indirectly.
- Market Approach: In this few points needs to be covered i.e.
- Division of market as per the Preferences, age, taste, desires etc. of the customers.
- Market Target gives the information about the market to the company that in which market he has to approach for selling products.
- Marketing Mix: A company follows this strategy to promote about its products, its prices through the various promotions.
- Product: Various new ideas should be adopted to increase the demand of the product. It is only possible when market is properly analysed and new offers should be given to attract the customers like-
- Tickets are booked online and company also provides the facility of accommodation, tours packages to their existing customers. All such facilities can avail by the consumer through online also (Re Cruz. A, 2003).
- Price: tickets are given on the different prices includes different facilities. Prices of tickets are based on the economical & business class. It also depends on the demographic reasons that are the age of the person and few rebates are given to the children under 3 years.
- Place: Various offices are open by an organization to reach the customers easily. Easy travels can give the opportunities to the customers by opening their offices preferably in every populated area. It provides the facility of comfort to the consumer and without giving a second though consumer try to reach the same company because who wants to do an effort for just booking tickets when something is offered at the doorstep.
- Promotion: All the facilities offered by the company can promote on the social networking sites like friends book etc. It is the easiest way to reach many consumers in the short term. Either recommendation done by the friend or through these promotional activities.
3.3 Present a persuasive business start-up plan.
Various approaches are follows by an enterprise to establish in the industry (Notzke. C, 1998). Strategies and planning plays an important role at behind for using such approaches. In the past 15 years, Travel & tourism has made their own place in the market and helps a major role in giving their devotion in the national economy. GDP approx. 30 % has increased by travel & tourism only. The main reason behind all this is that an objective should be very much clear to an entrepreneur and planning should be done properly without any loopholes. Business plan involves the market analysis, SWOT analysis, Marketing mix, strategies, competition bearing, target market etc. Following points need to be considered for making an efficient business plan.
- Objectives: Before initiate with the planning it is necessary to clear about the objective of the company. Virgin Atlantic aim is to establish his business not in airlines only but also expand in other related fields like accommodations, tourism etc. It is only possible but doing collaboration with other companies of the same industry and increases the share in the economy. Their main concern is service, security and pleasure.
- Market analysis: It is very important to do after clearing an objective. PESTEL analysis and porters forces helps in doing the analysis of the market. All relevant key points help in making the proper strategy (Mills. M, 2005.). Many new Opportunities are face by the virgin group for expansion. They get an opportunity to capture on the whole tourism market which is of approx. 17.6 billion. Market is covered by both small and big organizations but possibility to achieve the target is in the pocket of that organization that satisfies the customer by providing efficient product at fair prices.
- Strategy: A proper strategy requires in beating the competitors in the market. To make it possible an entrepreneur must plan that how to achieve the business objective with winning the hearts of the customers too.
- Innovative ideas: An entrepreneur must have the quality of innovative ideas. He and his employees can share the ideas but try to implement that only which is according to the strategy. The purpose is to meet the objective. Virgin Atlantic new idea which leaves the great impact on the market is facility of easy travels which is possible through online procedure only. Today’s world is a technological world so instead of booking tickets manually it’s convenient to book through online. This new idea works for an organization to increase the business.
- Differentiation: It plays an important role i.e. making a company different from the other companies’ plays as the competitors (Jennings. G, 2006). The main points those make the virgin different from its competitors are:
- At the time of online booking of tickets if a customer couldn’t pay the amount due to any reason then the company has given the facility of “Cash made at the time of delivery”. Client pays the amount after receiving the tickets at his doorstep.
- Air tickets booking through call centre and facilities of accommodation in luxurious Hotel makes the company different from others.
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Various strategies are done and followed to achieve the goals of an organization and also to be a successful entrepreneur. Self-evaluation to evaluate the strengths & weaknesses of the entrepreneur is very important. Weakness pulls the person back in meeting their targets so it is very essential to get rid out of this. Market can evaluate by doing proper analysis and it helps in achieving the company’s goal.
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