Strategy for Tourism

1. Strategy for Tourism Lecture 2 Mission and Purpose Professor John Tribe

2. Objectives • After studying this unit and related materials you should be able to understand: • vision, mission and objectives • mission types such as profit and growth and quality of life • governance and social responsibility • stakeholders and stakeholder power • and critically evaluate, explain and apply the above concepts.

4. Case Study 2: Heathrow (London) Airport

5. Case Study 2: Heathrow (London) Airport • Heathrow Airport Holdings’ vision statement for Heathrow airport “is focused on developing the airport’s position from one of the best airports in Europe to one of the best in the world” • Its strategic priorities are expressed as follows: • ™Beat the plan: To secure future investment, we will beat the … business plan • ™Transform customer service • ™Win support for expansion • ™Mojo: To be a great place to work

6. Aims, Missions and Objectives • Vision • Aims and Missions • Many organisations work to a mission statement (David, 1989). • A mission statement is a concise expression of what the organisation is trying to achieve and explains what it is in business for

7. Visit Britain Mission • Our Mission: Building the value of tourism to Britain and in England

8. Mission contd. • A useful mission statement should have the following characteristics: • It should be succinct • It should be a future oriented statement • It should be an umbrella statement which can cover more detailed objectives • It should be realistic and achievable • It should describe the main aims of the organisation

9. Objectives • Objectives spell out the goals that have to be achieved to realise a mission. • Thus objectives set out in more detail how a mission is to be achieved.

10. Framing of objectives and missions • Closed objectives should conform to SMART principles, that is they should be: • specific • measurable • agreed with those who must attain them • realistic, and, • time-constrained • Open statements are written in more qualitative terms. • Missions are generally written as open statements and targets such as "the most successful" are not measurable without further definition.

11. IAG Mission and Objectives

12. Types of Mission

13. Governance • Governance is concerned with authority, accountability and responsibility. • It describes the rules and ways that determine how an entity is directed and controlled. • Good governance exists to ensure that too much power is not vested in one or a few individuals and that the actions of those responsible for controlling entities are subject to proper scrutiny.

14. Social Responsibility • Where governance defines the ways in which an entity must act in relation to the law and its stakeholders, social responsibility is an area that is more discretionary. • It is a commitment to avoid negative impacts and deliver benefits to the wider society in which an entity operates. • It is defined by McWilliams and Siegel (2001) as • “actions that appear to further some social good, beyond the interests of the firm and that which is required by law.”

15. Social Responsibility:The Adventure Company • The Adventure Company offers worldwide tours based around four themes of Discovery, Wildlife, Adventure and Trekking. It has a well developed Responsible Travel policy which includes the following initiatives: • Local group leaders/staff welfare – local group leaders are employed on more than 90% of trips. • A porter protection policy is in place. • Use local services – by using local transport and as many local businesses as possible, money stays in-country and local enterprise is encouraged. • Everyone who travels with the company gets a copy of its Responsible Travel policy • It audits all of its trips to ensure their environmental impact is minimised. • 55% of the company’s trips support a local project. Examples include a school in India and a community centre in Tanzania. • The company offsets all staff carbon emissions from work-related flights and travel to work, and also office-generated emissions. • The suppliers we use by the company and the practices adopted in its offices are constantly reviewed. • Source: www.adventurecompany.co.uk/responsible-travel.aspx

16. Stakeholders • Stakeholder analysis (Friedman et al., 2002)is a useful way of identifying the variety of different forces that act on an organisation's mission. • The term stakeholder refers to a person or grouping with an interest in the operation of a particular organisation.

17. Stakeholder Mapping • A stakeholder map for British Airways would include: • Shareholders (May be divided into large and small) • Directors • Workers (May be subdivided and include Trade Union groupings) • Customers • Bankers • Key Suppliers • Airlines in One World Alliance • Local Community • Environmental Groups • Any others?

18. Stakeholder Mapping: Heathrow Airport Holdings

19. Stakeholder Conflict: Heathrow Airport Holdings

20. Interest alone is insufficient to explain the relative influence of stakeholder groups on mission. We need to add another dimension - that of stakeholder power - to get the full picture of stakeholder influence (Mendelow 1991). Competing stakeholder groupings for London (Heathrow) Airport Stakeholder Power

21. Review of Key Terms • Vision: signals what an entity would like to become. • Mission: sets out in more concrete terms the general aims of an entity, what it is trying to achieve and what it is in existence for. • Objectives: spell out the goals that have to be achieved to realise a mission. • SMART objectives: should be specific, measurable, agreed with those who must attain them, realistic and time-constrained. • Governance: describes the rules that determine how an entity is directed and controlled to discharge its responsibilities to its owners and to the law. • Social Responsibility: actions that appear to further some social good, beyond the interests of the firm and that which is required by law. • Stakeholder: person or grouping with an interest in the operation of a particular entity.

22. Discussion Questions • Distinguish between vision, mission and objectives for a named tourism entity. • What are SMART objectives and what makes them SMART? • Distinguish between governance and social responsibility for a tourism entity. • What is the difference between shareholders and stakeholders? • Distinguish between external and internal stakeholders. What are the main sources of power for each?

23. Case Study: New Zealand • Examine the New Zealand Tourism Strategy for 2025 • Evaluate the appropriateness of the mission and aims • Identify the key stakeholders who influence the mission • Analyse the sources of stakeholder power

24. Strategy for Tourism Lecture 2 Mission and Purpose Professor John Tribe The End