Overall the PEST and SWOT analysis helped me to reflect upon Thornbridge Outdoors and find out their strengths and weaknesses. The process has shown that strengths and assets of the business include qualified coaches, good facilities and a good location. The weaknesses helped me to identify possible future developments that could be made with the key one being a lack of custom at certain times of the year. I put this down to a lack of advertising as I found out that not enough people know about Thornbridge Outdoors and they don't do a lot of advertising. This was the future development that I chose to look at as advertising will help to make them more well known, popular and profitable if it’s done correctly. Its importance is shown by the quote below:
‘In the commercial world marketing has proved to be an effective means of staying in business and making greater profits,’ (Torkildsen, 2005).
This is because advertising is a key part of marketing a product (Kotler, 1990). I related specialist knowledge explaining how to advertise well and where to advertise. This should help to make them bigger and more popular than ever.
Advertising will make them more popular and give staff the opportunity of working full-time instead of part-time. If task culture is used instead of role culture, as I suggested in the fourth blog, this would help to increase the cohesion of the staff. If more jobs became available it could also give local people jobs which would increase the knowledge of them as well.
Bibliography
Kotler, P. (1990). Principles of marketing. 5th ed. NJ: Prentice-Hall.
Torkildsen, G. (2005). Leisure and Recreation Management. 5th ed. New York: Routledge Taylor & Francis group.
Thursday, 12 January 2012
How to solve the problem at Thornbridge Outdoors
To increase the knowledge of Thornbridge Outdoors advertising will be used. This is a key way to promote them. Following is a quote explaining what promotion does:
‘Promotion provides awareness and seeks to attract customers to a particular service or product,’ (Torkildsen, 2005, page 429).
As explained in the SWOT analysis in the third blog, there are various ways to advertise including posters, brochures, media, leaflets, newspapers and the internet. As Thornbridge Outdoors only advertises through leaflets they aren’t taking advantage of this. This is why most of their custom comes from schools rather than families or other groups of people. According to Torkildsen, 2005, to ensure that advertising is effective you should ensure that it answers all of the questions stated below:
Once seeing advertising of Thornbridge Outdoors the reader would be likely to look at the website, as this should be stated on the advertisement, so it should be made to look exciting and appealing to make the them want to come. They should make booking accommodation and coaching sessions available online as well to make the business appear up to date.
For ideas from myself or members of staff to be taken on board and used management must have a consultive leadership style. This means that they should listen to ideas from members of staff on how to improve the business (Weinberg & Gould, 2007). Being willing to listen to employees is a good trait of being a good leader. Leadership is:
‘the behavioural process of influencing individuals and groups toward set goals,’ (Barrow, 1977, page 232).
This would increase the knowledge and popularity of Thornbridge Outdoors which would help to increase custom and profit.
Bibliography
Barrow, J. (1977). The variables of leadership: A review and conceptual framework. Academy of Management Review, 2, 232.
Torkildsen, G. (2005). Leisure and recreation management. 5th ed. New York: Routledge Taylor and Francis group.
Weinberg, R.S., & Gould, D. (2007). Foundations of Sport and Exercise Psychology. 4th ed. USA: Human Kinetics.
‘Promotion provides awareness and seeks to attract customers to a particular service or product,’ (Torkildsen, 2005, page 429).
As explained in the SWOT analysis in the third blog, there are various ways to advertise including posters, brochures, media, leaflets, newspapers and the internet. As Thornbridge Outdoors only advertises through leaflets they aren’t taking advantage of this. This is why most of their custom comes from schools rather than families or other groups of people. According to Torkildsen, 2005, to ensure that advertising is effective you should ensure that it answers all of the questions stated below:
- Is it eye-catching?
- Is the layout attractive?
- Does the headline stimulate the reader to proceed further?
- Does it provide adequate information?
- But at the same time, is the message clear and simple?
- Is the text persuasive and credible?
- Does the advertisement create a favourable public image of the organisation?
- Does it use corporate style: colour, typeface, logo, etc.?
Once seeing advertising of Thornbridge Outdoors the reader would be likely to look at the website, as this should be stated on the advertisement, so it should be made to look exciting and appealing to make the them want to come. They should make booking accommodation and coaching sessions available online as well to make the business appear up to date.
For ideas from myself or members of staff to be taken on board and used management must have a consultive leadership style. This means that they should listen to ideas from members of staff on how to improve the business (Weinberg & Gould, 2007). Being willing to listen to employees is a good trait of being a good leader. Leadership is:
‘the behavioural process of influencing individuals and groups toward set goals,’ (Barrow, 1977, page 232).
This would increase the knowledge and popularity of Thornbridge Outdoors which would help to increase custom and profit.
Bibliography
Barrow, J. (1977). The variables of leadership: A review and conceptual framework. Academy of Management Review, 2, 232.
Torkildsen, G. (2005). Leisure and recreation management. 5th ed. New York: Routledge Taylor and Francis group.
Weinberg, R.S., & Gould, D. (2007). Foundations of Sport and Exercise Psychology. 4th ed. USA: Human Kinetics.
Organisational roles and theories, and outlining the problem
The manager is in charge of everyone else in the organisation. Managers need three core management skills according to Torkildsen, 2005, which are:
Human skills are important to get the most out of staff and technical skills are important to get the most out of equipment and facilities. The importance of these areas varies depending on the business. This idea relates very closely MacKenzie, 1969, who’s three areas were ideas (which links closely to conceptual), people (which links to human) and things (which links to technical).
Conceptual jobs include advertising, cost for coaching/accommodation and improving facilities. These jobs are important as these are the main reasons for people going to Thornbridge Outdoors. Without advertising nobody knows about them, if cost is too high less people will come and if facilities aren’t very good they won’t come again.
Human jobs include keeping staff and visitors happy, overseeing staff and sorting out the rota (Fairest, 2011). It’s important to keep staff motivated and pulling in the same direction. Motivation is:
‘the direction and intensity of one’s effort,’ (Sage, 1977, page 52).
This is key as motivation the effort of staff as shown by this quote.
Technical skills include updating the website and knowing how to use equipment. An updated website is key as it tells the customer exactly what the business is all about.
The job of the cycling coach is to plan and deliver high quality coaching sessions as explained in the first blog entry. They also must ensure that the session is safe at all times as well as the bikes being cleaned every day and checked for problems (Fairest, 2011).
Organisational theory is key to the business as well. The four areas according to White, 2011, are:
The physical structure of Thornbridge Outdoors includes:
According to Handy, 1993, there are four main types of organisational cultures which are:
In power culture the central power source comes from one person in the organisation. This is usually used in small businesses and there are few rules and procedures in the organisation.
In role culture organisations the role of the staff is key. Every sticks to their job description as this is more important than the person.
Task culture gives people more freedom to express their thoughts and everyone works together to reach objectives. Power is based more on expertise.
Person culture is where the main purpose of the structure is to benefit each individual. This isn’t seen very often and is more known for groups of consultants and barristers.
Thornbridge Outdoors appears to have a role culture as everyone has their own specific job and they don’t venture away from that. They all know who’s above or below them in the organisation and they adhere to that. Although, I think that both a power or task culture could be used. A power culture would suggest that there's one leader and what he says goes. The disadvantage would be that they would feel less like a team. A task culture could also be used and this would help the cohesion of the group by getting them all to work togethor and be less like individuals doing their own job in their own area. Perhaps a task culture would be the best option as group cohesion is key. Cohesion is:
'a dynamic process that is reflected in the tendency for a group to stick togethor and remain united in pursuit of its instrumental objectives and/or for the satisfaction of member affective needs,' (Carron et al, 1998, page 213).
This would help the cohesion of the group so everyone would work togethor better and more affectively to achieve goals.
The social hierarchy in the organisation is a flat hierarchical structure. This is because:
‘broader spans of control and few levels of authority result in a flat hierarchical structure,’ (Mullins, 2007, page 579).
There are three levels to the business. The span of control of the manager is to specialist staff who coach, teach and/or lead activities as well as cleaners (Fairest, 2011). As they take on work experience staff and other less qualified part-time staff to help the more specialist staff these people come below the specialist coaches and are their span of control.
The key problem with Thornbridge Outdoors is that not enough people know about them and what they provide. This problem is shown by the fact that at a cycling event within five miles of Thornbridge Outdoors I asked 50 people whether they knew where Thornbridge Outdoors was and if they knew that I asked them what they do. Only 7 of these people knew where it was and only five could explain what they provide. According to Craig,1989, if nobody knows about your business no matter how good it is you won’t get any customers.
Due to there being a lack of knowledge about Thornbridge Outdoors in the area they are losing out on a number of potential customers. This means that they are not making as much money as they could be which massively affects how much profit they are making. If the company is just breaking even or losing money the government are less likely to put investments into the business and keep it running (Fairest, 2011).
If custom increased the employees of Thornbridge Outdoors would be able to work longer hours and eventually full-time. According to Fairest, 2011, (who works at Thornbridge Outdoors) the majority of workers at Thornbridge Outdoors would do more hours if needed and he would love to work their full-time. This shows that if there was an increase in demand they will have enough staff to work the extra hours.
Bibliography
Carron, A.V., Brawley, L.R., & Widmeyer, W.N. (1998). The measurement of cohesion in sports groups. In Duda, J.L. (ed.), Advances in sport and exercise psychology measurement. Morgantown, WV: Fitness Information Technology.
Craig, S. (1989). Marketing leisure services. London: Leisure Futures.
Fairest, M. British Cycling Coach. (Personal communication, 13th December 2011).
Handy, C.B. (1993). Understanding organisations. 4th ed. USA: Penguin.
MacKenzie, R. (1969). The management process in 3-D. Harvard business review, November-December.
Mullins, L.J. (207). Management and organisational behaviour. 8th ed. GreatBritain: Pearson Education Limited.
Sage, G. (1977). Introduction to motor behaviour: A neuropsychologistical approach. 2nd ed. Reading: MA: Addison-Wesley.
Torkildsen,G. (2005). Leisure and Recreation Management. 5th ed. New York: Routledge Taylor and Francis group.
White, A. (2011). Models for business analysis. [Lecture] Foundation Degree in Sports Coaching. Clowne Collewge, 23rd September.
- Conceptual
- Human
- Technical
Human skills are important to get the most out of staff and technical skills are important to get the most out of equipment and facilities. The importance of these areas varies depending on the business. This idea relates very closely MacKenzie, 1969, who’s three areas were ideas (which links closely to conceptual), people (which links to human) and things (which links to technical).
Conceptual jobs include advertising, cost for coaching/accommodation and improving facilities. These jobs are important as these are the main reasons for people going to Thornbridge Outdoors. Without advertising nobody knows about them, if cost is too high less people will come and if facilities aren’t very good they won’t come again.
Human jobs include keeping staff and visitors happy, overseeing staff and sorting out the rota (Fairest, 2011). It’s important to keep staff motivated and pulling in the same direction. Motivation is:
‘the direction and intensity of one’s effort,’ (Sage, 1977, page 52).
This is key as motivation the effort of staff as shown by this quote.
Technical skills include updating the website and knowing how to use equipment. An updated website is key as it tells the customer exactly what the business is all about.
The job of the cycling coach is to plan and deliver high quality coaching sessions as explained in the first blog entry. They also must ensure that the session is safe at all times as well as the bikes being cleaned every day and checked for problems (Fairest, 2011).
Organisational theory is key to the business as well. The four areas according to White, 2011, are:
- Technology
- Physical structure
- Culture
- Social hierarchy
The physical structure of Thornbridge Outdoors includes:
- Two separate sleeping cabins which hold 30 people in each
- Three other cabins which are used for teaching, eating and a staff room
- A camping site
- A bike shed
- Mountain biking skills area
- Mountain biking downhill skills area
According to Handy, 1993, there are four main types of organisational cultures which are:
- Power culture
- Role culture
- Task culture
- Person culture
In power culture the central power source comes from one person in the organisation. This is usually used in small businesses and there are few rules and procedures in the organisation.
In role culture organisations the role of the staff is key. Every sticks to their job description as this is more important than the person.
Task culture gives people more freedom to express their thoughts and everyone works together to reach objectives. Power is based more on expertise.
Person culture is where the main purpose of the structure is to benefit each individual. This isn’t seen very often and is more known for groups of consultants and barristers.
Thornbridge Outdoors appears to have a role culture as everyone has their own specific job and they don’t venture away from that. They all know who’s above or below them in the organisation and they adhere to that. Although, I think that both a power or task culture could be used. A power culture would suggest that there's one leader and what he says goes. The disadvantage would be that they would feel less like a team. A task culture could also be used and this would help the cohesion of the group by getting them all to work togethor and be less like individuals doing their own job in their own area. Perhaps a task culture would be the best option as group cohesion is key. Cohesion is:
'a dynamic process that is reflected in the tendency for a group to stick togethor and remain united in pursuit of its instrumental objectives and/or for the satisfaction of member affective needs,' (Carron et al, 1998, page 213).
This would help the cohesion of the group so everyone would work togethor better and more affectively to achieve goals.
The social hierarchy in the organisation is a flat hierarchical structure. This is because:
‘broader spans of control and few levels of authority result in a flat hierarchical structure,’ (Mullins, 2007, page 579).
There are three levels to the business. The span of control of the manager is to specialist staff who coach, teach and/or lead activities as well as cleaners (Fairest, 2011). As they take on work experience staff and other less qualified part-time staff to help the more specialist staff these people come below the specialist coaches and are their span of control.
The key problem with Thornbridge Outdoors is that not enough people know about them and what they provide. This problem is shown by the fact that at a cycling event within five miles of Thornbridge Outdoors I asked 50 people whether they knew where Thornbridge Outdoors was and if they knew that I asked them what they do. Only 7 of these people knew where it was and only five could explain what they provide. According to Craig,1989, if nobody knows about your business no matter how good it is you won’t get any customers.
Due to there being a lack of knowledge about Thornbridge Outdoors in the area they are losing out on a number of potential customers. This means that they are not making as much money as they could be which massively affects how much profit they are making. If the company is just breaking even or losing money the government are less likely to put investments into the business and keep it running (Fairest, 2011).
If custom increased the employees of Thornbridge Outdoors would be able to work longer hours and eventually full-time. According to Fairest, 2011, (who works at Thornbridge Outdoors) the majority of workers at Thornbridge Outdoors would do more hours if needed and he would love to work their full-time. This shows that if there was an increase in demand they will have enough staff to work the extra hours.
Bibliography
Carron, A.V., Brawley, L.R., & Widmeyer, W.N. (1998). The measurement of cohesion in sports groups. In Duda, J.L. (ed.), Advances in sport and exercise psychology measurement. Morgantown, WV: Fitness Information Technology.
Craig, S. (1989). Marketing leisure services. London: Leisure Futures.
Fairest, M. British Cycling Coach. (Personal communication, 13th December 2011).
Handy, C.B. (1993). Understanding organisations. 4th ed. USA: Penguin.
MacKenzie, R. (1969). The management process in 3-D. Harvard business review, November-December.
Mullins, L.J. (207). Management and organisational behaviour. 8th ed. GreatBritain: Pearson Education Limited.
Sage, G. (1977). Introduction to motor behaviour: A neuropsychologistical approach. 2nd ed. Reading: MA: Addison-Wesley.
Torkildsen,G. (2005). Leisure and Recreation Management. 5th ed. New York: Routledge Taylor and Francis group.
White, A. (2011). Models for business analysis. [Lecture] Foundation Degree in Sports Coaching. Clowne Collewge, 23rd September.
Wednesday, 11 January 2012
SWOT analysis
This stands for strengths, weaknesses, opportunities and threats (White, 2011). The strengths and weaknesses can be pinpointed from the PEST analysis. Following is a table showing the SWOT analysis:
criteria examples Advantages of proposition? Capabilities? Competitive advantages? USP's (unique selling points)? Resources, Assets, People? Experience, knowledge, data? Financial reserves, likely returns? Marketing - reach, distribution, awareness? Innovative aspects? Location and geographical? Price, value, quality? Accreditations, qualifications, certifications? Processes, systems, IT, communications? Cultural, attitudinal, behavioural? Management cover, succession? Philosophy and values? | Strengths Facilities Staff knowledge Cycling coach is a former national champion Idyllic location Highly qualified staff | Weaknesses Lack of advertising Reliant on schools Not much demand in the winter Most of staff part time No mission statement | criteria examples Disadvantages of proposition? Gaps in capabilities? Lack of competitive strength? Reputation, presence and reach? Financials? Own known vulnerabilities? Timescales, deadlines and pressures? Cashflow, start-up cash-drain? Continuity, supply chain robustness? Effects on core activities, distraction? Reliability of data, plan predictability? Morale, commitment, leadership? Accreditations, etc? Processes and systems, etc? Management cover, succession? |
criteria examples Market developments? Competitors' vulnerabilities? Industry or lifestyle trends? Technology development and innovation? Global influences? New markets, vertical, horizontal? Niche target markets? Geographical, export, import? New USP's? Tactics: eg, surprise, major contracts? Business and product development? Information and research? Partnerships, agencies, distribution? Volumes, production, economies? Seasonal, weather, fashion influences? | Opportunities Improved popularity of cycling Improve website Advertising through sports clubs | Threats Schools having spending cuts Recession Keeping on high qualified part time staff | criteria examples Political effects? Legislative effects? Environmental effects? IT developments? Competitor intentions - various? Market demand? New technologies, services, ideas? Vital contracts and partners? Sustaining internal capabilities? Obstacles faced? Insurmountable weaknesses? Loss of key staff? Sustainable financial backing? Economy - home, abroad? Seasonality, weather effects? |
I will now talk about this in more detail.
One of the main strengths is the facilities as:
‘It has an extensive 55-acre site in an idyllic setting, accommodation for 60 people, a camping site, meeting areas, cycling trails and various onsite activities,’ (Thornbridge Outdoors, 2011).
Staff have specialist knowledge of the areas that they coach or run. Weaknesses are a lack of custom in the winter, no mission statement and a lack of advertising. The lack of advertising and an updated website link to a lack of custom. As most businesses have a mission statement and it makes the company seem more up to date they should have one. According to (Torkildsen, 2005) advertising encompasses many forms including:
- Posters (preferably in prominent locations)
- Brochures describing what you are offering
- Through media, newspapers or the radio
- Newsletters and paid sections in newspapersInternet
Opportunities available are advertising in these areas. A big opportunity is advertising in local bike shops as the coach available to teach mountain biking is a former national champion. They should get leaflets into as many relevant places as possible and contact cycling clubs.
Threats to the organisation succeeding are school spending cuts as SSCO’s have been cut due to a lack of funding and certain perks will have to go. This is as schools are a large part of the demand. SSCO stands for School Sports Coordinator. Their job, according to Design (2002) is to:
- increase participation of pupils who are in their family schools
- increase the number of leaders in secondary schools
- increase the participation of disabled children or children who are from deprived areas
- increase the standard of performance across a wide variety of sports
They were introduced to help with the PE and Sport Strategy for Young People (PESSYP). For schools to continue employing a SSCO they must find money to pay them from other sources as government funding has been cut (Rosling, 2010). Possible cuts could include out of school trips or activities which could affect Thornbridge Outdoors.
Bibliography
Design, W. (2002). School sports coordinators. [Online] Available from: http://www.sportdevelopment.org.uk/sscomakingadifference2002.pdf. [Accessed 27th November 2010].
Rosling, N. Former Tupton Hall School Sports Coordinator. (Personal communication, 25th November 2010).
Design, W. (2002). School sports coordinators. [Online] Available from: http://www.sportdevelopment.org.uk/sscomakingadifference2002.pdf. [Accessed 27th November 2010].
Rosling, N. Former Tupton Hall School Sports Coordinator. (Personal communication, 25th November 2010).
Thornbridge Outdoors. (2011). About Thornbridge Outdoors. [Online] Available from: http://www.thornbridgeoutdoors.co.uk/about-thornbridge-outdoors.php. [Accessed 2nd January 2012].
Torkildsen, G. (2005). Leisure and recreation management. 5th ed. New York: Routledge Taylor and Francis group.
White, A. (2011). Models for business analysis. [Lecture] Foundation Degree in Sports Coaching. Clowne College, 23rd September.
PEST analysis
A PESTEL analysis is:
‘A technique for analysing the general external environment of an organisation in terms of the political, economic, socio-economic, technological, environmental and legal aspects,’ (Mullins, 2007, page 808).
Following is a PEST analysis. This takes into consideration the political, economic, socio-economic and technological factors.
‘A technique for analysing the general external environment of an organisation in terms of the political, economic, socio-economic, technological, environmental and legal aspects,’ (Mullins, 2007, page 808).
Following is a PEST analysis. This takes into consideration the political, economic, socio-economic and technological factors.
criteria examples ecological/environmental current legislation future legislation international legislation regulatory bodies and processes government policies government term and change trading policies funding, grants and initiatives home market pressure- groups international pressure- groups wars and conflicts | Political CRB check Safeguarding Pension Legislations | Economical Seasonal Economical Government funding Profit Local household salaries | criteria exampleshome economy economy trends overseas economies general taxation taxation specific to product/services seasonality issues market/trade cycles specific industry factors market routes trends distribution trends customer/end-user drivers interest/ exchange rates international trade and monetary issues |
criteria exampleslifestyle trends demographics consumer attitudes and opinions media views law changes affecting social factors brand, company, technology image consumer buying patterns fashion and role models major events and influences buying access and trends ethnic/religious factors advertising and publicity ethical issues | Social Media Lifestyle Popularity of sports | Technological Website Advertising | criteria examplescompeting technology development research funding associated/dependent technologies replacement technology/solutions maturity of technology manufacturing maturity and capacity information and communications consumer buying mechanisms/technology technology legislation innovation potential technology access, licencing, patents intellectual property issues global communications |
I will now explain the PEST analysis in more detail.
Through analysing the political environment in Thornbridge Outdoors I found out that to work for them you need a CRB check (Criminal Records Bureau check) as:
‘You need a CRB check if you’re working with children,’ (Richardson, 2011).
Safeguarding is key to ensure the safety of the participants and so that the coaches know what to do in certain situations. Also there should be a maximum of ten participants per member of staff to help ensure safety during the session (Fairest, 2011).
Economically the business is very seasonal as most of the demand comes between February to May and September to October (Fairest, 2011). This means that they don’t employ as many people in the winter so staff don’t get a regular income and have to have another job. Also the facilities aren’t used as much over this period of time. Due to the recession there is less demand than expected. This is due to the fact that customers aren’t as willing to spend money. This decreases profitability which means that the government is less willing to put funding into the business.
Social influences include the media, people’s lifestyle and interests. Recently cycling has received positive responses from the media and the public through Mark Cavendish winning sports personality of the year. This shows that cycling has a better response than ever. Lifestyle greatly affects this as people who come are usually active and adventurous. 28.3% of children in the UK are overweight of which about half of those are obese (Department of Health, 2011). Also, over half of the adults in the UK are classed as being overweight (Department of Health, 2011). This suggests that the lifestyle of people in the UK isn’t as active as it should be.
Technological aspects include advertising and websites. Advertising is key to increasing the knowledge of Thornbridge Outdoors as it’s a good form of promotion. Promotion is:
‘an exercise in communications. Its role is to facilitate exchanges with potential client groups by communicating the benefits offered by a programme or service; it seeks to inform, persuade, or remind,’ (Howard & Crompton, 1989).
If people don’t know about it they won’t go. They advertise through giving leaflets to local campsites, hotels and places of interest to get interest but most of the interest comes from word of mouth (Fairest, 2011). The website explains the basics of Thornbridge Outdoors although it isn’t clear about things such as how to book the accommodation or coaching sessions. This is something that needs to be worked on.
Bibliography
Department of Health. (2011). Obesity General Information. [Online] Available from: http://www.dh.gov.uk/en/Publichealth/Obesity/DH_078098. [Accessed 11th January 2012].
Fairest, M. British Cycling Coach. (Personal communication, 13th December 2011).
Howard, D.R., & Crompton, J.L. (1989). Financing, Managing and Marketing Recreation and Park Resources. Dubuque: W.C. Brown.
Mullins, L.J. (2007). Management and organisational behaviour. 8th ed. Great Britain: Pearson Education Limited.
Richardson, I. Express Coaching Services Owner. (Personal communication, 19th October 2011).
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