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Jumbo Safari Company’s Business Environment Report

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Updated: Jun 19th, 2021

Introduction

This report will provide an overview of the findings of the business environment of Jumbo Safari. The results are based on the use of such techniques as SWOT analysis, Porter’s model of five forces, and STEEPLE framework which are useful for identifying the main factors that influence the work of this company. Furthermore, the paper will outline the strategies that this business should adopt in order to improve its financial and organisational performance.

To a great extent, the proposed strategies reflect the major trends that have emerged in the tourist industry. Moreover, these recommendations are based on the use of the best practices that are related to change management. Additionally, the document will include guidelines that can show how these strategies should be implemented. Overall, the proposed changes are supposed to improve the marketing strategies of Jumbo Safari as well as the labour force of this company since these aspects are vital for the ability of this business to attract and retain clients.

The findings related to the business environment

External forces

The company Jumbo Safari offers the services which are related to eco-tourism, and this choice of the market segment is very beneficial. It should be noted the global expenditures on this particular activity are expected to increase (Center for Responsible Travel, 2014). Currently, a great number of people are willing to visit areas that have been undisturbed by human activities. To a great extent, this trend can be explained by the changes in the lifestyles of many people who are no longer attracted only to the urban areas of foreign countries; in particular, many of them do not want to spend time in amusement parks, night clubs, boutiques, or museums (Wearing & Neil 2013, p. 121).

Such entertainments no longer appeal to them (Wearing & Neil 2013, p. 121). In turn, as the company, which operates Malaysia, Jumbo Safari has the opportunity to benefit from eco-tourism. In particular, there are many sites that can be of great interest to tourists; for instance, one can mention Mulu Caves, Cameron Highlands, or Royal Belum State Park (Hutton 2000, p. 136). Thus, one can say that the geographical location of this company can be critical for its growth. Furthermore, Malaysia has a well-developed infrastructure that can also be of great importance to travellers. For example, one can speak about information technologies which enable travellers to communicate with their friends or relatives. Thus, the company can able to benefit from these opportunities.

Furthermore, the government of the country pursues policies that can increase the inflow of tourists. To a great extent, this strategy can be explained by the need to diversify the economy of Malaysia. This is why policy-makers take several steps to improve the experiences of tourists. For example, one can speak about the simplified visa regime. In particular, every foreigner, who intends to stay in the country for less than 30 days, can receive a visa without reference (Hampton 2013, p. 83). They can simply receive it at the airport. Visitors will not face any bureaucratic obstacles if they choose to stay for a longer period (Hampton 2013, p. 83).

So, the legal environment can also support the work of businesses such as Jumbo Safari. Additionally, the government attempts to increase international awareness about various benefits that Malaysia can offer to travellers. During 2013, the country attracted 25.72 million people from various regions of the world (Tourism Malaysia 2014). Apart from that, the total number of tourists has increased by more than 100 per cent during the period between 2000 and 2013. Similarly, tourists’ expenditures have almost quadrupled during this period (Tourism Malaysia 2014). These data indicate that tourism remains one of the most attractive sectors of the economy. In turn, Jumbo Safari can certainly benefit from this trend.

Apart from that, one should note that the global economic environment can also positively influence Jumbo Safari. In particular, the economies of various countries have been able to overcome the effects of the global economies. Therefore, a greater number of people have opportunities for leisure travelling (Center for Responsible Travel 2014). In turn, many of them may choose Malaysia as one of the possible destinations. These are the main positive influences that can be distinguished.

Nevertheless, the owners of the company should take into account that this market attracts many foreign and local businesses. Since there are relatively few barriers to entry, these organisations will be able to erode the market share of Jumbo Safari, if the management does not take any active steps to attract a greater number of clients. Apart from that, one should take into account that other countries also try to increase people’s awareness about sites that can appeal to travellers who enjoy eco-tourism. Thus, one should not suppose that Malaysian tourist companies will be shielded from competition. In this case, the performance of these businesses will depend on their marketing strategies and the quality of their services.

Internal strengths and weaknesses

Much attention should also be paid to the internal environment of Jumbo Safari because there are several important deficiencies in the work of this company. In particular, this organisation has failed to reach clients by using available information technologies. Many businesses representing the tourist industry prefer to operate on the Internet, and this approach strengthens their competitive advantage (Matsuo & Colomo-Palacios 2013, p. 30).

This is why many customers do not know about the services offered by Jumbo Safari. Thus, one can argue that management has failed to take advantage of technological trends that have benefited other businesses that represent this industry. Moreover, this organisation does not offer services or resources which can attract some of the clients. For instance, one can mention golf courses or health spa. Moreover, Jumbo Safari does not serve the needs of people who take an interest in diving. Thus, some clients may choose to work with other tour companies that offer a wider range of services.

Moreover, the management has focused primarily on the visitors coming from Europe and North America. However, this company has not attached much importance to the local market. In particular, the adult population of this country is slightly more than 9 million people (Central Intelligence Agency 2012). In turn, many of these people can be interested in travelling around the country. Additionally, they may enjoy eco-tourism. Furthermore, one should keep in mind that the countries neighbouring Malaysia are also very populous. For instance, one can mention China, the Philippines, or Vietnam. In turn, by attracting more tourists from these states, the company can significantly increase its revenues.

Furthermore, the management should pay attention to the professional level of their employees. In particular, some of them are not ready for communicating with clients who may belong to various cultural, linguistic, or ethnic groups. This competency becomes critical at the time when the tourist industry becomes more globalised (Kusluvan 2003). On the whole, it is important to address these deficiencies; otherwise, it will be rather difficult for this company to strengthen its competitiveness. These problems can become even more significant in the future because tourism in Malaysia is one of those economic sectors that will attract a greater number of businesses. Thus, the rivalry between companies will only intensify in the near future.

Overall, these results throw light on the internal and external business environment of Jumbo Safari. To a great extent, these findings suggest that this organisation has the potential for becoming more profitable. This potential is related primarily to the market trends affecting the entire tourist industry. Secondly, these opportunities can be explained by the business and legal environment of Malaysia. Admittedly, there are some obstacles, such as intense competition; however, they can be minimized provided that the company develops feasible strategies and identify specific goals. Furthermore, by eliminating internal weaknesses, the managers can make Jumbo Safari more agile and responsive to external stressors.

Future development and strategic goals

In order to attain sustainable growth, the management of Jumbo Safari should first change the vision of this organisation because this task is important for identifying the main steps that the company should take to become more profitable. Secondly, they need to identify the strategic goals that should be attained by managers and workers. One should consider the following aspects:

  1. During the next five years, Jumbo Safari should become a leading Malaysian service provider who can effectively meet the needs of tourists coming from various countries. In particular, this company should effectively serve travellers who take an interest in eco-tourism.
  2. Apart from that, the company should operate at the international level and become a well-recognized brand in Malaysia and other regions of the world.
  3. Finally, this organization should have a very skilled labour force; in particular, the employees should be able to provide the highest quality of services that can strengthen the loyalty of clients.

This vision represents the ideal version of Jumbo Safari in five years. To a great extent, these objectives should guide the policies of management and everyday activities of employees.

The changes that should be implemented by the management

In order to reach this strategic vision, the company should implement certain changes. It is possible to identify the following needs of this organisation:

  1. At first, they should improve their marketing strategies in order to attract a greater number of clients. As it has been said before, they should focus on the use online technologies that can be helpful for targeting many customers who rely on the Internet while selecting or evaluating various companies.
  2. Secondly, the organisation should open tourist facilities located outside Malaysia. In particular, the company should focus on those locations that can attract travelers who enjoy eco-tourism.
  3. Furthermore, the employees of this company should develop or acquire skills that will help them interact with the representatives of different cultures. It is the main capability that they should develop because this competency is important for increasing the satisfaction of clients. Furthermore, this attribute of an organisation is important for its long-term sustainability.

Implementation plan

Theoretical framework that will guide change

Overall, the adoption of the new policies will be based on Kurt Lewin’s model of change. According to this framework, organisational transformation will involve three stages. At first, it is necessary to transform the attitudes of employees who should be willing to accept changes (Dessler & Phillips, 2007). They must see that current practices or procedures are inadequate (Cummings & Worley 2014, p. 22).

During the second stage, the management should help employees pass through the period of transition. To a great extent, this goal can be attained through effective training and job design. Finally, it is necessary to transform new practices into a norm. This goal can be attained with the help of various rewards such as higher compensation or promotion (Cummings & Worley 2014, p. 22). These are the main principles included in this model. Additionally, while implementing new practices, the management should involve employees into decision-making and empower them; otherwise, the new policies may not be readily embraced.

Specific steps that the management should take

Admittedly, at this stage, the company has to struggle with financial constraints that can prevent the management from implementing certain parts of this plan. Additionally, it may be difficult to set specific timelines that the company should meet. However, there is a set of specific steps that this organisation should take. In this case, the first two parts of the plan should be completed within the next three months. They have been singled out because they do not require considerable investment, especially in comparison with other strategies included in the plan1. The management can proceed to other elements of the plan when they generate additional revenues.

At first, they should create their own website that can be visited by customers from various countries. This site should be available in several languages such as English, Malaysian, Chinese, German, Arabic, Spanish, and Russian. This online resource should clearly describe the services that the company can offer to the clients. It is critical to include the images of the sites that may appeal to tourists. In this way, the company will be less dependent on third-party websites that help tourists learn about different hotels, resorts or tourist agencies located in a specific country. This task should be completed within the next three months. To complete this task, Jumbo Safari should rely on t companies that specialize in the development of such websites.

Furthermore, this organization should adopt a new training program for current employees. This program should address several professional needs of workers. In particular, these individuals should be informed about the behavioral differences between the representatives of various cultures. For instance, they can differ in terms of such criteria as attitudes towards risk-taking, individuality or collectivism, independent initiatives, gender roles and so forth (Young 2007). By enabling employees to learn more about these questions, they can make them ready for possible challenges. To a great extent, this part of the training program is based on the Hofstede approach because this scholar identifies the key criteria according to which different cultures can be compared (Beugre 2007). Admittedly, this knowledge will be theoretical, but it will help employees anticipate conflict which can be caused by cultural differences.

Additionally, this training program should include case studies that can illustrate how cross-cultural differences can affect the communication between employees and clients. They should learn about various situations that can give rise to controversies. For instance, in some cultures, the avoidance of eye contact can be interpreted as the sign of deception in Western countries (Galanti 2014, p. 56). In contrast, in Japan and other Asian countries, this behavior is a sign of respect (Galanti 2014, p. 56). Thus, workers should see how behavioral norms can vary in different cultures. Overall, by focusing on such situations, workers can better prepare themselves for possible challenges. The training program should last for three weeks. This step will be important for retaining clients because they will see that the company can effectively serve customers regardless their linguistic or cultural background.

Furthermore, the company should spend a part of its revenues in order to extend the range of services that are available to the clients. The company should offer such benefits as spa and golf courses. Moreover, they should support those clients who take interest in diving. In this way, the company will significantly increase the number of clients. This policy can be important for the growth of this business because Jumbo Safari will be to retain and increase its market share. The company should start working on this task when they can gain additional revenues or attract investors.

Additionally, the management should open its facilities in other regions of the world. In particular, these facilities should be opened in Southeast Asia because this region includes many sites that can appeal to people who enjoy eco-tourism.

As the company will grow, it will need to hire a greater number of workers. In turn, the company should adopt a new recruitment policy. In particular, the management should recruit people who are versed in intercultural communication. Additionally, they should be able to speak foreign languages such as Malay, Chinese and English. On the whole, they should be able to communicate with tourists who come from different countries and cultures. Furthermore, the educational background of these people should be related to hospitality industry (Boella & Goss-Turner 2013). These candidates can better anticipate the needs of clients. As a rule, these people are more motivated to work in companies representing the hospitality industry (Boella & Goss-Turner 2013). The new recruitment policy will be implemented at the time when the company will increase its revenues and open new locations.

Additionally, the management should attach importance to such an aspect as corporate social responsibility. This dimension of companies’ performance is one of the criteria according to which customers evaluate various businesses (Jauhari 2014, p. 60). This requirement is also set for tourist companies. At the moment, when Jumbo Safari achieves considerable growth, the company should lend support to various environmental organizations that strive to protect the nature of Malaysia. For example, one can mention such an organization as Malaysian Nature Society (2015) which wants to preserve various environmental sites. In turn, the company will be able to produce a positive impression on possible customers. Moreover, this business will contribute to the preservation of natural environment which is one of the pre-requisites for the long-term sustainability of tourist companies located in Malaysia.

Finally, the management should carry out customer surveys during every two months. These surveys are important for identifying the weaknesses in the performance of Jumbo Safari. Moreover, they can show whether the initiatives of the management are successful. This practice should be implemented continuously, even at the time, when this business increases its revenues (Hill & Alexander 2006).

Overall, this implementation plan is designed for the span of five years. This argument is particular relevant if one speaks about tasks 3-6. The management can proceed to these activities only at the time when the company enlarges its share in the Malaysian market and improves its profitability. Overall, this strategy can be evaluated according to such criteria as the number of clients served by Jumbo Safari and the profitability of this enterprise. These data will be easily accessible to the management. However, the company should regularly conduct the survey of customers who should be asked to assess the quality of services offered by Jumbo Safari. These are the main elements of this implementation plan.

Reaction to change

The owners should bear in mind that the changes underwent by the company can give rise to the resistance of employees. This behavior can take several forms; for example, workers can openly disagree with the policies of the management (Burnes 2009, p. 219: Harsh 2012). Very often, they can tacitly follow previous workplace rules, especially if the managers do not closely monitor their performance (Burnes 2009, p. 219). In each case, this behavior can adversely influence the performance of Jumbo Safari. Overall, the employee of Jumbo Safari can resist several new practices, especially the need to undergo training and higher performance standards. Furthermore, it may difficult for them to accept the idea that their work will be evaluated through regular customer surveys. These are some of the difficulties that can be anticipated by the management.

As a rule, resistance to change is a very widespread response, and in many cases, this behavior can be attributed to several factors. For instance, one can speak about the failure of the management to explain the benefits that can be attained through changes. Among such benefits, one can distinguish increased salary and opportunity for professional growth (Paton & Malman 2008, p. 370). To a great extent, these incentives can strengthen the motivation of workers.

In turn, the fear of punishment such as dismissal does not usually contribute to the implementation of change. Additionally, unclear job design can also make employees reluctant to accept new practices because they do not know how to organise their work. In turn, the senior managers should avoid these pitfalls. Furthermore, even well-intended initiatives can fail, if business administrators do not involve workers. This is one of the problems that have been observed in various companies, even those organisations that employ highly-skilled professionals (Lussier 2008, p. 205; Roussel 2013). Overall, the management should consider a wide range of forces that influence the adoption of changes in various businesses2. This is one of the points that the owners of Jumbo Safari should take into account.

Apart from that, the managers should not rely on coercion at the time when they confront resistance to change. This behavior should not be viewed as the sign of incompetence or lack of motivation. More likely, it indicates that there are certain limitations of the proposed policies. For instance, the managers may not clearly explain the rationale for new practices or describe the specific steps that workers should take. In many cases, it is vital to highlight the need for changes such as the necessity to undergo additional training. According to Kurt Lewin’s model of change, at the initial stages, the management should overcome inertia (Hayes 2014, p. 23; Carnall 2007).

In order to achieve this goal, the management should focus on the situations which can demonstrate that new policies are needed. For instance, they should show that workers cannot effective serve the representatives of different cultures. This is one of the tasks which are highlighted in the model of change developed by Kurt Lewin.

This is why the company should identify the most competent employees who can embrace the initiatives of the management because these people will act as role models. In many cases, the support of these individuals can be vital for success of any new policy. Furthermore, empowerment of employees is critical for the successful adoption of changes. In particular, the workers will see that managers put trust in them, and this experience is also very motivating. Overall, the management should be able to anticipate this reaction to change in order to make sure that the new policies are properly implemented. The discussion and recommendations included in this report can be useful for avoiding various pitfalls which can undermine the performance of this business.

Communication of changes

The management of the company should pay close attention to the communication of changes. It is necessary to consider the needs of such stakeholders as clients, employees, and potential investors. At first, customers should be informed about new services that the company can offer. This information can be communicated through the marketing materials of this company. For instance, one can speak about press releases posted at the website of this organization. Similarly, they should inform returned clients about new offerings. In this way, one can demonstrate that the company values each of its clients. Overall, this step is important for retaining the support of these people.

Additionally, the company should communicate changes to the employees. In particular, these people should be informed about the new policies of this organization as well as the requirements that they will need to meet. This information can be conveyed during company meetings. So, managers and workers can discuss changes in greater detail. Furthermore, this information can be delivered via emails. In this case, the key task is to describe the main expectations of the management (Prowle 2012).

Finally, the owners should think about the needs of potential investors who may decide to buy this company. This organisation can publish reports about its revenues, the range of services, or the total number of clients that this company serves annually. While communicating information to potential investors, the managers should attach importance to transparency; otherwise potential buyers may be unwilling to work with this business. This information can be provided in the annual reports that should be available online. This is one of the main pitfalls that should be avoided by the management.

On the whole, the management should keep in mind that communication of changes can be important for ensuring sustainable growth of this business. By focusing on these issues, the managers can significantly contribute to the financial performance of this business. These are the main details that can be singled out.

Conclusion

Overall, these examples demonstrate that Jumbo Safari has the opportunity for attaining sustainable growth due to the favorable influence of external business environment. Yet, this company can take advantage of these opportunities by eliminating inefficiencies within its marketing strategies and HR policies. However, the management should adopt a set of strategies that can boost its performance. Provided that these steps are not taken, the performance of this business can stagnate even further. The proposed recommendations can make this business more competitive and responsive to changes. These are the main points that can be made.

Appendixes

Critical path diagram

This visual aid will illustrate the series of steps that the management should take in order to improve its financial and operational performance. It should be mentioned that the first three activities of the implementation plan will start simultaneously. In turn, other steps are sequential.

Critical path diagram.
Figure One: Critical path diagram.

It should be mentioned that one of the activities should be performed during the entire implementation of this plan. In particular, one should speak about the use of regular surveys that should be carried out every two month. In contrast, other tasks cannot be started before the completion of previous activities. For instance, one can mention extension of services. Jumbo Safari can perform this activity only after the implementation of the training program and development of the website. These are the main elements that can be distinguished.

The factors affecting attitudes toward s change

The factors that intensify resistance to change The forces that make change more acceptable.
1) Unclear job design and the necessity to do overtime which can lead to burnout;
2) Absence of clear criteria according to which the performance of employees will be evaluated (Kloppenborg 2014);
3) Attempts of the management to impose new rules on the employees who may resent this behavior (Kloppenborg 2014);
4) Absence of tangible rewards that workers can derive from embracing changes or new practices;
5) The inability of management to recognize the contributions of workers who have successfully embraced changes and achieved good results;
6) Lack of relevant skills that are necessary for adopting new business processes (Roussel 2013).
7) Excessive bureaucracies within organisations.
1) Availability of orientation programs that help employees adjust to new requirements or workplace procedures (Carnall 2007);
2) The presence of step-by-step instructions that show how new workplace procedures should be adopted;
3) Ability of the management to explain the rationale for embracing new policies;
4) Well-developed performance appraisal system that can reflect the work of different employees;
5) Open-door policy which means that employees can easily contract managers without facing any bureaucratic obstacles (Roussel 2013).
6) More democratic style of leadership which supports the empowerment of employees who should see that their initiatives are valued by the company;

While implementing change, the management should eliminate those factors that can adversely influence workers’ attitudes. Moreover, they should make sure that there are pre-requisites that make employees more open to change. The company will not have to incur excessive costs in order to take these precautions. These are the main aspects that can be singled out.

References

Beugre, C 2007, A Cultural Perspective of Organizational Justice, IAP, Boston. Web.

Boella, M & Goss-Turner, S 2013, Human Resource Management in the Hospitality Industry: A Guide to Best Practice, Routledge, London. Web.

Burnes, G 2009, Managing Change: A Strategic Approach to Organizational Dynamics, Pearson Education, New York. Web.

Cameron, E & Green, M 2015, Making Sense of Change Management: A Complete Guide to the Models, Tools and Techniques of Organizational Change, Kogan Page Publishers, London. Web.

Carnall, C 2007, Managing Change in Organizations, Pearson Education, New York. Web.

Cummings, T & Worley, C 2014, Organization Development and Change, Cengage Learning, New York. Web.

Central Intelligence Agency 2012, . Web.

Center for Responsible Travel 2014, Web.

Dessler, G & Phillips, J 2007, Managing Now, Cengage Learning, New York. Web.

Galanti, G 2014, Caring for Patients from Different Cultures, University of Pennsylvania Press, Philadelphia. Web.

Hampton, M 2013, Backpacker Tourism and Economic Development: Perspectives from the Less Developed World, Routledge, New York. Web.

Harsh, P 2012, Organizational Change, Pearson Education, New York. Web.

Hayes, J 2014, The Theory and Practice of Change Management, Palgrave Macmillan, Basingstoke. Web.

Hill, N & Alexander, J 2006, The Handbook of Customer Satisfaction and Loyalty Measurement, Gower Publishing, New York. Web.

Hutton, W 2000, Adventure Guides: East Malaysia, Tuttle Publishing, New York. Web.

Jauhari, V 2014, Managing Sustainability in the Hospitality and Tourism Industry: Paradigms and Directions for the Future, CRC Press, Boston. Web.

Kloppenborg, T 2014, Contemporary Project Management, Cengage Learning, New York. Web.

Kusluvan, S 2003, Managing Employee Attitudes and Behaviors in the Tourism and Hospitality Industry, Nova Publishers, New York. Web.

Lussier, R 2008, Management Fundamentals: Concepts, Applications, Skill Development, Cengage Learning, New York. Web.

Malaysian Nature Society 2015, Home Page. Web.

Matsuo T & Colomo-Palacios, R 2013, Electronic Business and Marketing: New Trends on its Process and Applications, Springer, New York. Web.

Paton, R & Malman J 2008, Change Management: A Guide to Effective Implementation, SAGE, London. Web.

Prowle, M 2012, The Changing Public Sector: A Practical Management Guide, Gower Publishing, New York. Web.

Roussel, L 2013, Management and Leadership for Nurse Administrators, Jones & Bartlett Publishers, New York. Web.

Tourism Malaysia 2014, Tourist Arrivals and Receipts to Malaysia. Web.

Wearing, S & Neil, J 2013, Ecotourism, Routledge, New York. Web.

Young, C 2007, Examining the Relationship of Organizational Culture on Formal Mentoring Programs, ProQuest, New York. Web.

Footnotes

  1. Please, refer to the Figure One in the Appendixes.
  2. Please, refer to Figure Two.
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