Introduction
The Coral Divers Resort that was established by Jonathon Greywell over ten years ago has been experiencing trends that have subjected it to opportunities and threats. The company provides scuba diving resort services in the New Providence Island that is located in the Bahamas. The company gained an impressive reputation among divers in the Caribbean for not less than ten years since its establishment. However, various factors that have been affecting the Greywell Company internally or externally are accountable for the trends that the business has gone through. Therefore, Greywell has different options that can enhance the strategic management of the situation in a profitable manner. Conducting a situational analysis to assess Coral Divers Resort’s performance trends based on internal and external factors will uncover its present situation concerning its imminent strengths, weaknesses, opportunities, and threats. The company’s resources will be vital in determining the strategic plans that Greywell can undertake. This paper will embark on the situational analysis of Coral Divers Resort. The goal is to not only determine the impacts of its resources on its operations but also recommend the appropriate strategy for Greywell to undertake.
Situation Analysis for Coral Divers
A situation analysis focuses on the factors that have a bearing on an organization’s performance regarding its strengths and weaknesses. In this respect, examining the external factors that affect Coral Diver’s competitive advantage in the scuba diving industry is essential for the development of strategic plans. External environmental factors are significant for fostering the internal strengths of a company towards the attainment of competitive advantage. Therefore, conducting a situational analysis of the external environment using the PESTEL model is suitable. The PESTEL analysis focuses on the political, financial, sociological, hi-tech, ecological, and legal features that influence an organization’s operations (Rao, Rao, and Sivaramakrishnan 35). In the case of the Coral Divers Resort, factors such as competition, demographics, technological advancements, and market conditions have direct implications for its competitiveness in the Caribbean scuba diving industry.
The Political Aspect
According to Chermack, the success of any business venture requires political goodwill and stability (45). A country that experiences political instability not only scares away investors but also leads to capital flight. The government has to be friendly to investors to attract them to carry out business in the country. Coral Divers Resort is located in the Bahamas. It has been able to operate for the past ten years due to the political stability in the country. Tourists form a good fraction of their clients. Without a favorable political climate, they cannot come to the country. The favorable political situation has encouraged tourism and hence the growth of Divers Coral Resort.
The Economic Aspect
The economic condition of a place affects the businesses both positively and negatively. Economic indicators such as inflation, interest rates, and currency fluctuation determine the performance of an enterprise. When the economy is experiencing booming trends, many people have higher purchasing powers. Hence, businesses perform well. On the other hand, businesses in an economy that is going through the recession experience a lower purchasing power (Rao, Rao, and Sivaramakrishnan 35). Coral Divers Resort has been performing well for many years before its current economic problem. It is highly likely that the dropping client numbers have to do with the global economic meltdown that began around the same time as the global economic crunch (Chermack 24). Under such hard economic times, people have money just to spend on the necessities and not on extra leisurely activities such as scuba diving. Businesses tend to perform well in countries where people have high purchasing power.
The Sociological Aspect
Sociological factors such as religion, traditions, and beliefs affect businesses directly. For businesses such as Coral Divers Resort to succeed, they have to package their products in such a way that they are acceptable to the culture of the targeted area. Prospective clients may boycott culturally repugnant products in favor of culturally acceptable products (Rao, Rao, and Sivaramakrishnan 116). The resort is largely able to do well because of the adventurous nature of the people it has targeted. Scuba diving is one of the equipments that meet the desire for adventure. The business is successful because it has tapped into this market. Factors such as its scenic position and proximity to the beach have also enabled it to attract many customers.
Technology
The advancement in technology has always provided businesses with the opportunity to grow and increase productivity. For example, marketing business products has become relatively easy and simpler through online marketing platforms. Efficiency in production has also increased, thanks to technological advancement. Chermack asserts that higher-quality products of diverse features are now a reality because of technology (99). Coral Divers Resort has been able to tap into technological advancement to satisfy its customers. The company has modern diving gadgets that use the latest technologies such as snorkel tubes to increase customer satisfaction. The rooms in which the clients spend are also fitted with the latest communication devices to enhance their level of comfort.
Environment Aspects
Corporate responsibility demands businesses to take good care of their environment. Several legislations have been passed to ensure that environmental conservation is a priority for all organizations. Pollution and environmental degradation among others are punishable by law in many countries of the world. A business organization that upholds and protects the environment attracts goodwill and favorable image from the public and the community (Rao, Rao, and Sivaramakrishnan 117). Its improved image may translate to profitability and high-caliber employees. Coral Divers Resort has put efforts to obey all the environmental laws to remain in business. The business acknowledges that any violation is punishable by law. At the very worst, it may lead to the deregistration of the business.
Legal
Tax and labor regulations in all countries around the world control business activities. According to Newlands, compliance with all such regulations is necessary for the continuity of the business (34). Such laws govern the relations between business organizations and other stakeholders such as the government, customers, and employees. Coral Divers Resort has to ensure compliance with all such regulations of the country to remain operational.
Coral Divers’ Resort Resources
Muller and Brennan assert that resources that are at the disposal of business enable it to have a competitive advantage over its opponents in the market (203). Over its ten years of operation in the Bahamas, this business has managed to operate well because of the competitive advantages it has over the rest. The business has managed to build a solid reputation in the course of its existence. The achievement has been due to the excellent services they have been offering to their customers. Such satisfaction leads to referrals by other customers hence continuous profitability. It was able to distinguish itself as a safe scuba diving resort. The resort also has an added advantage regarding its strategic position when compared to its competitors. Its beachfront location is highly attractive to the lovers of the sea. It was able to capitalize on the particular strength and make high returns. The resort has excellent infrastructure to meet the diverse needs of the clients. It also has special apartments for both single people and families.
Strategy and Calculation
Expanding the scope of the operation of the resort appears to be a better option. Given that Greywell is set on making the resort different from the rest, it may be the best thing to carry out. Several additional investments are needed to cater for the family capacities. In the process, even the local community will benefit from the babysitting services. In terms of revenue potential, the resort can be customized to contain families. Therefore, upon using the weekly rates of $1405 for a standard room and $1875 for deluxe families, it is possible to estimate revenue potential (RP). Assuming that five families in each category visit the resort per week, the RP can be obtained as follows:
$1405 * 5 =$7025
$1875 * 5 = $9375
An estimate of the revenue generated in the first year amounts to $7025*52= $365300
The second category gives $ 9375*52= $487500
Hence, the revenue potential is $487500+$365300= $852800
In terms of return on investment (ROI) as of 2007, the total assets of the organization were valued at $601206. Changing into family accommodation requires further $20000. Hence, the total investment is $601206+$20000= $621206
The ROI translates to $852800-$621206= $231594
Corporate Social Responsibility Strategy Report
Introduction
Corporate social responsibility (CSR) is essential for the growth and development of a particular organization. According to Hopkins, CSR entails the voluntary engagements of an organization towards the sustainability of the social, economic, and environmental elements of its operations (27). CSR safeguards the interests of the society and the organization through decisions that seek to solve the problem that affects society. When a business engages in CSR, its success is enhanced through the alleviation of environmental and social risk factors that have direct implications on the performance of a business entity. This paper will assess the CSR issues of a particular corporation, namely Lockheed Martin. The goal is to show how different parties perceive their effort in the alleviation of social and environmental problems before presenting a letter to the CEO in a bid to contribute to its CSR engagements.
The Chief Executive Officer,
Lockheed Martin
Dear Madam,
RE: CORPORATE ETHICAL RESPONSIBILITIES REGARDING YOUR COMPANY
This letter seeks to address the pertinent area of social responsibility with a particular emphasis on Lockheed Martin. It examines the position of the company in this area and the benefits that the company stands to gain. It also offers an assessment of the company’s involvement so far. It considers the major areas of corporate responsibility to customers, employees, suppliers, competitors, government, and the public.
Customers
Customers are the most significant reason for the existence of your organization. It is the responsibility of your business to ensure their maximum satisfaction and happiness. Your company will achieve this goal by offering high quality and well-developed products. Satisfied customers will always make repeat purchases, thus ensuring the company achieves a competitive edge over its competitors. In this regard, your company appears to be in the right course. Over half of the company’s employees are researchers and scientists. They are continually discovering new products while improving the current ones to satisfy the needs of their customers. The prices it charges for its products have never been exploitative. The company invests extensively in research and development. Most of its finances go into meeting the demands of its clients, including the State Department and foreign governments.
Lockheed Martin prioritizes customer satisfaction over many other things. Hence, the company invests in quality products that are offered at competitive prices. Consequently, it has managed to maintain high-profile customers, including foreign governments. It is important to keep customers satisfied to ensure that they remain loyal to the company. Some of the customers appear disgruntled at the preference the government receives from them. The company should have two departments where one can focus on high-profile customers while the other concentrates on ordinary customers. It should have the same level of commitment to both of them (Chermack 123)
A report on the level of customer satisfaction indicates that most of the clients are satisfied with the company’s services and products. However, others do not like the duration it takes to meet their needs. Some customers believe that it has a higher preference for the government compared to individual clients. Hence, it will be profitable for your organization to ensure the equitable treatment of clients, regardless of their status. Your rivals in the market can capitalize on the issue of dissatisfaction to draw your clients away.
Employees
Employees help the organization to meet its objective of attaining maximum profitability and continuity. The organization has a responsibility of ensuring that they are highly motivated to deliver the company goals. Competitive remuneration and good working relations with others will keep the employees highly motivated (Aras and Crowther 102). The organization has to ensure that it offers job training to its workers. It will equip them with the right skills to be productive while at the same time ensuring that they remain productive for a longer period. Proper training will also ensure that the employees avoid accidents that may be costly to the company and/or injurious to themselves. The other aspect of equity to employees pertains to the qualifications for promotions and higher salaries. The basis of promotion should be fair and justified to all employees. No employee should be promoted based on race, color, religion, or any other ground (Hancock 87). Such tendencies will discourage other workers from working hard. They may carry out activities that are not in tandem with the long-term interest of the organization.
The company seeks to have a well-motivated labor force. It provides its workers with good salaries that are way above the industry average. It offers them many other benefits such as leave allowances and retirement benefits. The company also avoids any form of discrimination against its employees based on race, gender, or religion. The company has to continue with this practice to gain a distinct competitive advantage over other firms that may have an interest in the employees by considering their technical expertise. It should consider an amicable way to solve the disputes that arise between them and the workers. According to Hopkins, an out-of-court settlement of disputes is better compared to the expensive lawsuits (34). The company records indicate that its employees go through training upon recruitment. Other training programs are also offered in the course of their service to the company. Most employees are satisfied with the content of the training ranking and that it is relevant for their assignment. Whenever an employee gets a promotion to a higher job position, the company offers him or her the requisite training to operate at the new level (Petrescu 54).
Government
Lockheed Martin’s operations abide by government regulations. It observes regulations on employee welfare and rights. The company submits the tax on its annual returns. It also files its proceeds with the Security and Exchange Commission. The company has a record of complying with the environmental regulation laws as formulated by the Environment Protection Agency (EPA). The government records also indicate that it complies with the tax laws, both locally and internationally (Miller 203). Lockheed Martin has largely conformed to the government regulations on its operations (Miller 53). It not only submits taxes but also obeys the law on environmental regulation. However, the company has had the label of misconduct in several contracts that it has had with the government. The misconduct has led to fines, as well as court processes. It should plan to honor its contracts with the government to remain reputable.
Public
The company has endeavored to cultivate good relations with the community in which it operates. It has launched many community welfare projects to alleviate suffering within the communities. Such projects include scholarships and research funds among others. It is also responsive in times of disasters such as earthquakes and tsunami. Such actions have endeared it to many host communities. It also has a limited record of environmental pollution (Badrocke and Gunston 54).
Competitors
Business competitors target the same customer niche. It is important to have competitors so that the business may remain innovative and responsive to the demands of its customers. In the process, customers and the general public benefit. Fierce competition may sometimes lead to other smaller businesses being locked out of the market. Uncompetitive tendencies such as price-fixing are unethical. Lockheed Martin remains to be a leader in the industry, particularly in the defense section. Its practices have enhanced competition against the rivals. Malicious practices such as stealing trade secrets have never been documented against it (Aras and Crowther 28). It has remained highly ethical in its relations with rival business organizations.
Suppliers
Suppliers collaborate with an organization in its business processes. They are important for the success of your organization. In return for their supplies, the organization should provide them with timely payments so that they remain in their businesses. Also, some organizations may improve their capacity to produce so that they can have a constant supply of materials for their needs. Hancock says that offering payments in advance for their supplies will also help to foster better relations with the suppliers (67). Some organizations may sometimes boycott the products of particular suppliers whenever they do not agree. Such a practice is unethical. Lockheed Martin has always maintained good working relations with its suppliers.
Yours faithfully
Jared Newton
Works Cited
Aras, Güler, and David Crowther. A Handbook of Corporate Governance and Social Responsibility. Farnham, Surrey, England: Gower, 2010. Print.
Brooke, Michael, and Bill Gunston. Lockheed Aircraft Cutaways: The History of Lockheed Martin, London: Osprey Aviation, 2008. Print.
Chermack, Thomas. Scenario Planning in Organisations: How to Create, Use, and Assess Scenarios, San Francisco, California: Berrett-Koehler Publishers, 2011. Print.
Hancock, John. Investing in Corporate Social Responsibility: A Guide to Best Practice, Business Planning & the UK’s Leading Companies, London, UK: Kogan Page Business Books, 2005. Print.
Hopkins, Michael. Corporate Social Responsibility and International Development: Is Business the Solution? London, UK: Earthscan, 2007. Print.
Miller, Jay. Lockheed Martin’s Skunk Works, Leicester, England: Midland Counties Publications Ltd, 2005. Print.
Mullerat, Ramon, and Daniel Brennan. Corporate Social Responsibility: The Corporate Governance of the 21st Century. Netherlands: Kluwer Law International, 2011. Print.
Newlands, David, and Mark Hooper. The Global Business Handbook: The Eight Dimensions of International Management, Farnham, Surrey, England: Gower, 2009. Print.
Petrescu, Relly. Lockheed Martin, Stoughton, Wisconsin: Books On Demand, 2013. Print.
Rao, Appa, Parvathiswara Rao, and Kathlin Sivaramakrishnan. Strategic Management and Business Policy. New Delhi, Delhi: Excel Books India, 2009. Print.