DISCUSSION AND ARGUMENT
Question 1
The Thomas Cook Group plc had an opportunity to formulate strategy options that would help it to attain profitable growth and enhance its competitive advantage. The strategy options available would be based on the web innovation, simplification, integrated information technology platform and new and better products and services. This innovation will assist the company to maintain and build up brand trust in the leisure travel industry.
The company has the opportunity to apply the simplification strategy which will be focusing on providing personalized and trusted holiday experiences. This will be however, require the application of the high touch, high tech approach to stabilize the threat of mistrust that is experienced in the industry. In addition, the company needs to conduct an extensive research and in-depth, comprehensive survey identifying the varying taste and preferences of more than 18,000 travelers. This measure will definitely help the company to take the advantage of the market niche and reach where the rest of the leisure companies have never reached.
This strategy of “high-tech, high-touch approach” will see the company reducing its number of stores and hence be able to save substantial cost in the future. The company has been challenged by the unrest in the Middle East and North Africa which has resulted to threat to the company. Therefore, focusing of the internet sale will help the company to overcome the struggle and reduce the operational cost. For instance, the company is expected to save about £350 by the end of 2014 though the reduced High Street stores.
Question 2
The potential strategy of the Thomas Cook Company lies on the ability to enhance the relationship between the company and its stakeholders. In order to able to identify the right strategy, the correct portfolio should be executed effectively. For such a validation process to be achieved so that desired outcomes are attained, it requires dynamic stakeholder and executive resource and sponsorship engagement. However, this will be achieved when clear, upfront stakeholder and contribution and commitment are done in a transparent manner, signed off and documented. The endorsement of the executive sponsor should also be considered helpful in influencing the planed outcomes and goals.
The company must also enhance the communication between the executive and the stakeholders. The stakeholders regarded here involve, the external stakeholders such as government authorities and suppliers, and internal stakeholder such as employees in different premises of this company. The most important option to enhance the stakeholder communication is through identifying the most significant stakeholders to the company. The most important stakeholders for Thomas Cook are suppliers, investors, and members of the society, customers, employees and government agencies.
The executive of the Thomas Cook entity should also be able to establish an open door policy to determine information and enhance sharing. The company can create an effective database that is able to allow questions, discussion and comments from the investors. The company is also faced by the potential strategy of conductive several surveys and focus groups to discover their needs and come up with the issues that matters most.
Question 3
The strategic approach is about developing on effective strategy that is able to bring about the competitive advantages. In the case of the Thomas Cook entity, the executive need to formulate strategic approaches that ensures the resources is allotted in the most efficient way. A well-constructed approach should bring about the efficiency and effectiveness in the management. Differentiation can be applied as one of the most effective strategy to enhance strategic approach in the company. Differentiation is therefore attained through the adoption of the various strategies and theories discussed below.
One of the most adopted methods of differentiation that have been successive to various companies is the low cost model. The fundamental element of the Low-cost model is the fact the aim of the entire entity and supply chain is to operate at a low cost base. Therefore, the Thomas Cook Company should establish corporate structure since they will be required to use fewer resources than in complex structure. In this case, the company will not only reduce the stores but also establish corporate structure that could help in cutting the operating cost.
The other effective approach in achieving the differentiation is enhancing the quality and product. The differentiation of the Thomas Cook’s product could be as well, based on the choice and quality, with the price and the cost being the secondary factor. Despite the fact that the low price of the products attracts consumers, the high quality product producers is on higher chances of thriving compared to the low price oriented firms.
In an effort to improve their performance and increase their real benefits as well as best serving their customers Thomas cooks has to change its purchasing model and strategize on the cross-Group purchasing model. The model benefits both the business itself, stakeholders and other strategic partner and is set in very innovative manner and ready for most modern technology. Decision making will involve access of data as well as transmissions through the internet. Moreover data will be monitored and all purchases recorded and a final analysis done, whereby the management will retain and improve performing hotels while eliminating those with low purchases regardless of their popularity and to clients.
In addition to enabling the company to access data easily, make maximum benefit of through relating with strategic partners, Thomas Cooks enjoys the advantage of bulk buying due to combined purchases with the strategic partners. These not only reduce operation costs but also build a goods name to the suppliers as well as improving reliability and the quality of services offered.
Another important model is the asset light model whereby deals have been in progress to accommodate and affect it. Discussions are on progress to inculcate this model since it’s aimed at achieving mutual benefit among the company, strategic partners as well as other major transporters. Thomas Cooks airliners are strategizing mutually combining efforts with others and act as group as they benefit from one another.
Notes
It is important to formulate effective factors that affect the goal of the Thomas Cook Company in order to generate strategic options that would help the company to take advantage of its strength and opportunities
On the other hand, the potential strategic option would be strongly based on contending weaknesses and threats faced by the organization
The strategic approaches are heavily linked to the management frameworks such as SWOT analysis, Product growth matrix and balanced scorecard
Thomas Cooks has strategized on several models incorporating latest Information and technology and innovation to improve its performance and strategic hotel partner’s relationship
