ITS831 Tech Importance in Strategic Plan : Independent Travel Agency

External analysis

PlanNet’s strength lies in a host of vibrant external stakeholders spread across the globe that promise to revolutionize the travel business. Key among them are representatives in various countries worldwide that will be selling the InteleTravel home-based Independent Travel Agency (ITA) business. The partnership between PlanNet and InteleTravel also brings on board world renowned resorts and brands, major cruise ships and vocation companies. Car rentals and tour operators across the world also form a rich repertoire of the external partners for the company. The ITA’s are the link through which ordinary people make money through the opportunities that the company offers. These firms carry the brand of PlanNet and represent it in their countries of domicile. They are required to exercise innovation in creating travel and holiday solutions customized for the countries where they belong. The company expects them to be their true ambassadors by upholding the philosophy and core values of PlanNet. They are also required to remit an agreed amount of their profits to the company on a monthly basis. The representatives are also afforded the liberty to extend their business by engaging other representatives within their regions through the Builders Program and Directorship program. Through this program they earn revenues by receiving commissions.

The resorts and hotels fulfill PlanNet’s dream of exquisite holiday experiences to her clients. These carefully selected establishments are the ultimate destinations of travel-happy clients where they enjoy memorable moments. Hollensen (2015), opines that second-to-none services ensure that clients will always patronize companie for their holiday needs. Vacation companies have the vital role of ensuring that the destinations the company sells to the clients deliver what is promised. These companies have wide experience in various categories of holiday destinations and they offer alternatives for travel to various categories of the PlanNet’s clients. By building relationships with these companies, PlanNet delivers its core service without requiring her officers to physically visit every holiday point. Cruise ships and car rental agencies provide transport solutions for customers that need to access holiday destinations. This is a crucial service that works to ensure that minimal inconvenience is experienced by the company’s customers (Haines, 2016). 

Collaboration

A high level of collaboration happens among these stakeholders to ensure the three goals for which PlanNet was designed to achieve are realized. The major representatives of PlanNet in the various countries form the major link for strong collaborations in the countries where they are situated. To achieve the goal of financial independence, these representatives will have minimal financial obligations with PlanNet; they are only required to pay commissions to the company. These representatives also work closely with other franchises they may wish to form down the supply chain and earn commissions from them. The goal of personal flexibility for business partners is ensured by allowing the representatives to create home grown travel services without undue pressure (Grünig and Morschett, 2017). The company lays no strictures for physical premises nor does it exert a demand on any leadership structure whatsoever. Representatives have the liberty to carry out their operations even at home. The goal of financial independence is achieved through collaboration with service providers in the industry including car rental services and resorts. Business owners enjoy residual income by concentrating on their core businesses as the client is spread across various professional organizations. The car rental company works very closely with the representative to ensure that there is a continual flow of income. The link between the representative, the car rental or Cruise Company and the resort works to ensure that apart from giving their clients memorable experiences, they enjoy financial independence.

Strengths and weaknesses

Strengths

PlanNet does not require capital to expand her franchise across the world. This concept makes it easy for it to have presence across the globe in a short period of time. The company also operates on the concept of a homegrown business as much as it’s not homebound. According to Cassidy (2016), this gives it the benefit of establishing its business model based on diverse client needs in various locations in the world. This makes this business concept adaptable to various customer tastes and ensures business success wherever it is established (Bohari, Hin and Fuad, N. (2017). This business can also be established anywhere there is internet connectivity. It is for this reason that customers will find these services accessible anywhere through their internet enabled gadgets. Customers prefer this service as opposed to their competitors who depend on physical offices which can only be located in urban settlements.

Weaknesses

The independence that PlanNet gives to the representatives is one of the major weaknesses of this business design. Representatives are expected to bear the cost of training of staff in addition to other overhead costs. This may result is a heavy financial burden for them. These franchises, in return, may compromise the quality of service in a bid to stay afloat incase their countries experience turbulent financial times. The liberty given to the franchises means that there are no standard prices for the products they offer; this is dependent on the representatives because of the homegrown concept of the businesses.

Budget

Since the company bears no financial obligation with the representatives, the budget provision for this enterprise is nil. The various franchises organize to set up the businesses anywhere as long as they observe by the core values. The human resource recruitment duty lies squarely on the representatives. Since there are not minimum standards that the business should adopt, individual establishments determine the cadre of staff needed for their firms and carry our recruitment accordingly. Although common software is provided for representatives to administer the services the company offers, PlanNet does not provide internet connectivity for the franchises.

Barriers and benefits of strategic planning

Strategic planning operates on projections about the future which is not easily predictable. Circumstances in the political, economic or social sphere can easily change in the direction unpredicted by the crafters of strategic plans (Johnston and Bate, 2013). Persons engaged in strategic planning are likely not to be present during the implementation of their plans. For this reason the implementers may not share in their perspective about the decisions they made. The strategic planning process requires skilled personnel and organizations may spend a lot of money in consultation fees. However, strategic planning remains to be the best tool for projecting where a company is headed. Organizations that engage in strategic planning are highly likely to succeed in achieving their goals.

References

Cassidy, A. (2016). A practical guide to information systems strategic planning. CRC press.

Grünig, R., & Morschett, D. (2017). Overview of the Strategic Planning Process for Going International for New Markets. In Developing International Strategies (pp. 81-84). Springer Berlin Heidelberg.

Johnston, R. E., & Bate, J. D. (2013). The power of strategy innovation: a new way of linking creativity and strategic planning to discover great business opportunities. AMACOM Div American Mgmt Assn.

Haines, S. (2016). The systems thinking approach to strategic planning and management. CRC Press.

Hollensen, S. (2015). Marketing management: A relationship approach. Pearson Education.

Bohari, A. M., Hin, C. W., & Fuad, N. (2017). The competitiveness of halal food industry in Malaysia: A SWOT-ICT analysis. Geografia-Malaysian Journal of Society and Space, 9(1).