Executive Summary
The business goal of Ace Conference Center is to become the first choice conference center for all local businesses by providing quality services in a serene environment away from town noise.
The company’s vision of the company is to provide high quality conference facilities and associated amenities and services targeting both international tourists and local community. The conference’s management plan to update the conference to attract business tourism delegates.
The basic business objective of the center is to contribute to promoting the quality of people’s lives throughout the world by offering quality conference facilities and services.
Business philosophy
The company has been able to provide high quality service to their customers and the local economy due to conference management and tourism industry experience of Ace Conference Center’s staff. Ace Conference Center has an excellent reputation for customer service, an implication that the company will be able to offer high quality product mix.
Location
The conference is situated in Cobalt Business Park, which is only 5 kilometers from Newcastle and 10 kilometers from Newcastle International Airport. The location provides easy access from the airport and town center. In addition, the center has access to customers from the business park which accommodates many offices.
Geographical market
The conference center currently serves the local business’ needs for conference facilities. However, the management at the facility plans to upgrade the facility in order to attract international business tourists into the facility.
Strengths
The location of the conference center in a business park with proximity to an airport and a major town provides easy access to the market. The location of the conference center in a business park makes the venue more appealing and convenient to local business firms located in the business park. In addition, the conference offers a relaxed environment away from the busy town.
Weaknesses
Ace Conference Center does not have accommodation facilities available on-site, and it depends on a nearby student hostel which was used in the past but is now considered unsuitable. The area does not have a convention bureau, which makes it hard for people looking for conference facilities in the area use traditional methods to locate conference venues. Feedback from the businesses using the facility mentioned that the facility looks old and requires some renovation in order to meet international standards. In addition, many survey respondents expressed their concerns regarding a high price level the conference facility charges on its services.
An analysis of the reason for making inquiries and not proceeding with the bookings also stated that the conference was too expensive. Moreover, some respondents mentioned that the lecture theatre was fine but breaking rooms are few and small.
Some weaknesses in relation to location were mentioned during the interviews. Some of the respondents mentioned that the parking facilities required improvement. Moreover, some remarked that bus routes and numbers would help in accessing the conference center.
Finally, even though the conference center has a manger with 15 years experience in the hotel and conference sectors, other employees are not skilled and staff turnover rate is high with the longest serving employee having served for six months. The major reasons for high staff turnover include poor salary, poor communication, and lack of training and promotion opportunities.
Opportunities
Threats
Attention has not to be paid only to opportunities but also to potential threats, because they also have significant implication to conference tourism. To start with, more people may be inclined to travel less because of the impacts of global recession. In addition, many people are becoming price sensitive in response to increasing cost of living and some business organizations are resorting to holding meetings in their offices or considering cheaper conference venues.
Secondly, weak government and state support to the conference tourism in Latvia has a significant impact on the firm. Currently, too few resources are provided to this industry, although government support is currently regarded as very important for conference tourism, as the industry is only beginning to develop.
Another threat is the crisis situation in the entire world, which significantly influences overall trends in tourism and people’s willingness to travel. This implies that it is a threat to Latvia, even though the conference industry in this region has not been impacted by any crisis significantly and directly yet.
Next, a major threat too Ace Conference Centre is completion. Currently, there are other 25 conference venues in the city that could be considered as competitors to the firm. Some of the facilities are equipped with modern conference facilities and offer both accommodation and catering services within their premises. In addition, some business establishments have their board rooms and do not require the services of a conference center.
Economic
The region has experience reduced support for conference tourism from both the state and government. This lack of support has resulted into reduced development of new conference facilities in the area. Many countries are still recovering from the impacts of 2008 global recession, which had a significant impact on international tourism. Most organizations are seeking conference facilities that offer quality services at considerable prices due to less disposable income (Pfister & Tierney, 2008).
Social factors
There is growing trend of getting internet access at home and buying tourism services is developing in the UK. According to statistical records in June 2011, 15.9 million households had internet access (Buhalis, Costa & Ford, 2012). In addition, there is a significant move to search and make reservations online as organizers increasingly give delegates the opportunity find their own accommodation.
There is a drastic change in the face of conference catering. Healthy eating has become one of the hottest topics, and consumers have become more educated and concerned about issues related to healthy eating (Rogers, 2012). In response to this national trend toward more healthy diet, numerous modifications have been made to conference catering. This has led to emergence of a variety of healthier choices to consumers.
Technological factors
The rapid development in technology is changing the face of business tourism in the UK and all over the world. Technological changes have changed the way businesses operate as many organizations conduct their booking through the internet (Rogers, 2012). Even though, organizations still create direct mail campaigns and conference brochures, it is obvious that their main purpose is to serve as a reference point to obtaining web addresses and access full information there. As a result, most marketing has been upgraded to connect with many organizers as possible.
There is increasing demand for high-speed, wireless internet by conference organizers and delegates. This will demand that conference venues offer free internet access to all training organizers at all events in addition to a qualified IT technician. According to industry trends, as a basic requirement, a conference venue must have audio and visual displays, data projection with a screen, and a good lighting system.
Political factors
The political landscape has a significant impact upon the regulation of business. It includes legal issues and government that affects business operations in a given industry. According to findings, the political environment in the UK is relatively stable. Issues such as war against terrorism and the enlargement of the European Union have contributed to political stability of the government (Buhalis, Costa & Ford, 2012).
Environmental factors
There is increasing concern over the environment and this will affect the tourism and conference industry given that a conference often doubles as a report or statement of an organization’s intent or performance (Rogers, 2012). All organizations, including those that do not look at how their business activities affect the environment are attempting to show their effort. Many organizations are seeking for environmentally friendly conference venues, and some even ask for environment policy and practical demonstrations such as recycled pens and note books.
Recommendations
In order to meet the desired international standards, the company should consider upgrading its facilities and services to meet international standards. This requires the firm to upgrade its meeting rooms to accommodate more people from the international market. In addition, the firm should consider acquiring another facility that will offer world class accommodation and catering services to delegates.
The firm should also consider finding qualified personnel and also motivate the current personnel. This could help reduce employee turnover and improve the quality of services offered by the conference centre.
Since the firm plans to attract international delegates, it should consider upgrading parking facilities to accommodate the increased traffic into the facility. Many visitors to the facility like the location but think that the facility is “tired” and require renovation. Giving the facility a new face would help reposition both to the local and the international market.
References:
Buhalis, D., Costa, C. & Ford, F. (2012). Tourism Business Frontiers. London: Routledge.
Case Study on the Ace Conference Centre
Pfister, R. & Tierney, P. (2008).Recreation, Event, and Tourism Businesses: Start-Up and Sustainable Operations. Champaign, Illinois: Human Kinetics
Rogers, T. (2012). Conferences and Conventions. London: Routledge.
