NGUYEN BACH THUY TRANG

A&R BAXTER: A STRATEGIC CHANGE OF MASTER BUSINESS ADMINISTRATION (MBA) OF

CARDIFF METROPOLITAN UNIVERSITY BY NGUYEN BACH THUY TRANG AUGUST 2012

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DECLARATION
I, Nguyen Bach Thuy Trang,hereby declare that my thesis is created by my research working, as all reference resources have been accurately reported and acknowledge, and this research has not before, in its completely or in part been given to many university in order to contain an academic qualification

Nguyen Bach Thuy Trang

27 August2012

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ACKNOWLDGEMENTS
I would like to take this opportunity to thank our lecture, teacher David Hall for helping me to find a solution with every single problem that we faced throughout the assignment and definitely his important guidance and commitment to my success. Finally, I also thank my friends and my parent for their support in my life.

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Executive summary:
A&R Baxter Company is a famous brand in the caravan market, the reputation of company has known by high quality service. The company has a significant profits and quick development of the scale of the firm since 1950. They had changed between caravan and holiday solution for UK holiday makers. It was this concern that led to the opening of the "Pargue Montana" with strategic change. It can be seen that there is a brief Picture of A&R Baxter company. In Caravan, Well known for business success, Baxter Company is a caravan company chain setting its sites in the UK founded by Albert and Robin Baxter in1953. Then, Company started to take a holiday business at Tenerife in Spain. A new "holiday village" complex of 500 units had built in main cities and popular tourist destinations in Tenerife. In this research, the strategic change gave about the by the problems of proposal, and then analyzing some strategic management as well as the solution approach to control these problems will be analyzed in this case study. And then, the author will apply strategic management with key findings in business plan. The essay will end with suggestions on how A& R Baxter could lead to success in the market.

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PAGE
DECLARATION ACKNOWLDGEMENTS EXECUTIVE COMPANY TABLE OF CONTENTS Chapter1: Introduction 1.1 Rational 1.2 Aims & objectives 1.3 Research questions 1.4 Limitations Chapter2: Case brief 2.1 History of the company 2.2 Current anticipates: 2.2.1 Mission: 2.2.2 factors lead to success the company Chapter3: Problem statement and plan of analysis 3.1 Problem proposal 3.2 Theoretical background of strategic management 13 14 10 11 11 12 8 8 8 9 9 2 3 4

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3.2.1 SWOT analysis 3.2.2 PESTEL analysis 3.2.3 Porter Five Forces analysis 3.3 Human resource management 3.4 International marketing management Chapter4: Analysis and findings 4.1 Analyzing strategic management 4.1.1 SWOT analysis. 4.1.2 PESTEL analysis. 4.1.3 Porter 5 Forces analysis. 4.2 Key findings 4.2.1 Strategic Management. 4.2.2 Human resource management. 4.2.3International marketing management. Chapter5: Proposed solution to the problems 5.1 The problem and solution of company 5.1.1 The problems and solutions of strategic management 39 40 24 24 30 33 35 35 35 36 19 21 22

5.1.2 The problems and solutions of human resource management 41 5.2 Recommendations on the current strategic change and business plan to company 5.2.1 Recommendation on the current strategic change 42 43 6

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5.2.2 A business plan

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Chapter6: Application of the learning to another organization in any industry: 6.1 Company profile. 6.2 Analysis. 45 51

6.3 Comparison between Sheraton company and A&R Baxter company 6.4 Comparison to A&R Baxter company in caravan industry 6.5 Findings. 6.6 Recommendation for managing in brand in the future Conclusion References 51 52 53 55 56

Chapter 1: Introduction:
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1.1 Rational
A&R BAXTER company has not only become a successfully company in the UK but also in European. Strategy business in this company changed from caravan to holiday solution in holiday makers. This is because the travel industry in Tenerife is thriving in todays on-line retail market. Caravan and hospitality is a fundamental element of the world economy. This is the biggest and quick growing sector, because more than 800 million people travel in every year. Over the past 30 years the industry and the market moved rapidly and continue to build up new needs. Tenerife in Spain is a top resort destination and has millions of visitors per year. It is the largest and the most populous of the seven Canary Islands with 906,854 inhabitants, 43% of the total population of the Canary Island. It is a great diversity of accommodation type as well as to satisfy even the most requirements. There are plenty of 4-5 start hotels, luxury resort and good apartment for renting which the wish of the guest comes true with even In business today, when the economies is starting to decrease, the accommodations for renting have to start improving their service really quick in a important way, because the first ones who will manage to improve with the competition. This is a unique concept in which the company able to bring their customers the best prices and adventures customized. 1.2 Aims & objectives The purpose this essay is going to explain about analysis tool which the company is using in business. And then, this essay also describe strategic management for developing brand recognition through the use of effective marketing communications and human, especially in holiday solution When company implements the marketing Plan for the Adventure Travel Services, A&R Baxter will realize success in more than one way. Finally, Comparisons 8

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to another company will provide quantifiable evidence of the marketing plans success. 1.3 Research questions: The purpose of this essay is going to adapt to report to Brian Baxter about the challenges which the company faces in their business today. In particular, the author will try to explain about where the company is now choosing analysis tools as identify the future strategic management and the need for organization change. The questions is how main factors lead to success and limitations to company? And how A&R Baxter maintains its unique positioning in an increasingly apartment market as how can the right human contribute to the success of A&R BAXTER? 1.4 Limitations: Unfortunately, I cannot able to analyze the companys financial clearly, as A&R Baxter give more detail exactly information about this. I can find information about this in the forecast years. This way is able to affect by the companys financial situation, which might be really good or bad. Another thing what I am not explaining to analyze is the website of company as many informations about this company in social media. I just will only mention some characteristics of company in Pargue Montana when they moved strategic from caravan to holiday solutions.

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Chapter 2: Case brief

2.1 History Company: A&R Baxter began operations in 1953 and provide customer to hiring caravans for holiday makers. The founders and employees of company were design experienced professionals in manufactures caravans and passionate about the activities A&R Baxter. Therefore, the company had increased their sale in the UK market and became caravan rental in their business. Moreover, Twenty Baxter travel shop opened in London where tourism developed very strong in marketplace A chance for A&R Baxters success exists because the international tourism industry is increasing quickly and adventure travel 10% annually. A&R Baxter is balanced to take this opportunity of and specialized services with an experienced staff, as effective management and marketing strategy. Therefore, firm had changed their strategy business from caravan to holiday solution. This can be seen that a joint Venture had formed between Baxter Company and a new Spainish company, Parque Montana in 1988. With 62 years company history, the Company has 14 shops in camping and caravanning and 20 travel shops in the UK. The product of company is men and women wear with accessories. In holiday makers, A&R Baxter Ltd has 24% in Prague Montana. A&R Baxter family has moved the ambition for development, and increasing time sharing in the Canary Island and in the world. With new business plan in London and Barcelona, fractional Ownerships have launched to match their land in business.

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2.2 Current anticipates: 2.2.1 Mission: Parque Montana's mission is to develop into the foremost supplier of adventure travel with those people who like to go outside of the norm for a more interesting adventure. Pargue Montana has to connect adventure travel newcomers and accommodations to fit the customer's desires, and service skills. In recent time, company had to improvement in fractional ownership. A new business model with fractional ownership has been launched to make a good strategy their property developing in Spain and Portugal. When the first Pargue Montana was established in 1988, all part of European was in the time of economic growth and the travel industries in the countries benefited hugely from it. The development of business was significantly facilitated to the company in the area for reaching such a large scale, and earnings of the company increased proportionately. While the wealth of the countries had reached to an arguably unprecedented level, the financial crisis in 2008 put a hard problem to all the optimism of the people. Therefore, company was also affected by this recession. Although the significant decline in the profit of the company during the economic recession, A&R Baxter Company was primarily a highly successful company in their financial. However, satisfaction would get in the way the long time development in business if the company has a good strategic management. Therefore, Brian Baxter had innovated into "fractional ownership" in recent years. His concern was that he is preparing for leadership respond abilities in the company. This leads to tackle the key problems the company faces in the future to find a solution to this "family business".

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With the strategic change plan, the organization was moved in three ways: the explanation of values of the organization in fractional ownership, increase decentralization organization on measuring the performance of the firm in different industry such as: caravan and holiday maker. The Directors of A&R Baxter Company understood this and changes strategy to tackle the problems which he saw in the company. This brought big changes in the company, and they will be pointed out and their effectiveness weighed in the following 2.2.2 Main factors lead to success the company: There are many factors lead to success in the company, the first is to create and penetrate into high-end segment. The company has to create in production by innovation and design as technology to its position. With a good family values, the company has a strong brand position in the UK. Company is designed for the concept of high quality with the best price. Launching a new brand of motor homes to the UK market to get a lot customer On the other hand, Pargue Montana Company provides a unique of apartment& resort and spa that meets high-end customer need. Each of staffs has a well-trained with five-star standard service and measure by efficiency and productivities. Furthermore, Pargue Montana comprises of individual villas, local-inspired architectural design. All apartment and resorts reflect the concept of providing these time-share through architecture, furnishing, landscape, and service offer. .

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Chapter 3: Problem statement and plan of analysis

3.1 Problem proposal: A&R Baxter is a family business; therefore ownership and management did not deal with independently. It can be seen that, when family members are treated preferentially, staff may become disadvantages in their working. Family members sense can be a strong, in building the business and leading to greater cooperation, however, conflicts can occur. This is because everyone has own thinking a different perspective in their working. Furthermore, they make objective decisions about one anothers skills and abilities in family business. Another problem comes from the fact that emotional affection to a business has its benefits for a family, however passing it from one generation to the next calls for cautious management. Therefore, it can be seen that family company with effective governance practices are more likely to accomplish strategic and succession planning. On average they will increase quickly and live longer. On the other hand, threat of economics crisis has also created many challenges which the company has to face in their business. These are small selection of environmental forces and factors that have had an impact upon the marketing strategies of company. What is certain is that changes and trends in the environment of a company. The important of environmental analysis is selfevidence, but if further confirmation of this importance is required this can be underlined by tracing through an example of failure to identify and respond to environmental change. A&R Baxter is one of the majority successful caravan and holiday makers in the UK and European. Since then, the firm has faced these challenges with regards to sales and profits. The company is still faced with slow sales and 13

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decreases market share when many competitors changed their strategies. There are several reasons for this, but it has been suggested that the company has not kept pace with changing market and customer needs. It can be seen that effective marketing strategy is critical to the success of the plan. It will exploit the strategic management, overcome weaknesses, and avoid threats identified and another factor in the environment. 3.2 Theoretical background of strategic management: 3.2.1 SWOT analysis: SWOT analysis with a clearly definition of planned marketing strategy help company to become success. In financial crisis in 2008 has bought about new creative ideas for entertainment trends across the culture, the trends and shifts have compelled event planners to be more creative.

Strengths

A SWOT analysis is a strategic plan to start a new planning business. Some of the strengths of starting this business were events can be planned on short time, this is a creative venture, applying technology is readily available, experience with similar functions.

weaknesses

Some weaknesses brought to light were: no variety of suppliers, no clients, no marketing strategy, low economy, minimum resources.

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Opportunities

The SWOT analysis showed opportunities of such as chance to meet new clients, expand into different market, the need for services

Threats

Liabilities, expensive for consumers and financial are the threat type in SWOT model, zoning laws and decorations and events may be limited. The company has to implement systems for managing change that benefits the entire workforce and be able to adapt and uphold the new changes. The business will need to create an agile process that addresses business change and not let it be a one- time event but an on-going process. The company will encompass many different changes that help promote and benefit the success of the business. The company will acknowledge change management as a part of the bigger strategic management plan. The company will focus on improving overall performance in order to drive favorable business results. Finally, identifying the strengths, weaknesses, opportunities and threats of a company is not enough it is just a snap shot. When compiling data for a SWOT analysis is beneficial to minimize or eliminate both weaknesses. Weaknesses should be turned into opportunities and threats should be equaled to optimize the potential of the business. SWOT analysis can be very beneficial for a business. The author will examine PESTEL factors, political, economic,social and technology in the environment. The external business environment can be seen by A PESTEL model. This model focuses on the impact of each of these factors on the business. The result of this model can be used to open advantages of opportunities and have a plan to control for threat to the firm. 15

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3.2.2 PESTEL analysis: Political:

Basically,when analyzing political factors, the author have to find some political changes which can influence to the development of company. The question is What policies are being drafts? And what global changes are happening? Laws on human rights such labor, health policy, environmental policy should be considered in the company.

Economic Factors.
It can be seen that, the political often moves over into economic factors. For instance, tax in holiday makers is frequently decided by politicians, based on a combination of political and economic factors. Interest rates which are decided by a central bank, but political factors may still affect to company. On the other hand, economic factors can include exchange rates, inflation, income growth, debt & saving level and consumer & business confidence. The stock market is a typical example of the volatility of economic factors in the world. This can lead many problems for strategic management in company. These areas are global, but it is also important to look at factors affecting to company. For example, if the oils cost increase in the world, the company need to change the price in Caravan Baxter and some product from this company. Social Factors.

Social factors affect people's choices and contain the culture, values and attitudes of society. Therefore, understanding changes in this factor can be very important. Such changes can impact purchasing behavior.Consumer 16

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attitude to the product of company. For example, the author will examine about the consumer attitudes to the model of caravan as many offer apartment from Pargue Montana. Technological Factors: In social media, technology creates a strategic change in social attitudes. For example, the way which people spend their leisure has changed dramatically many years ago. Also, many social media changes their choices in life such as: facebook. With the development of technology, they can help your product to sell easier on the internet. The company needs to have a good website which introduce about company and offer service to the customer. Environmental factors:

The external of environmental include changes in climate, water resources, energy supplies, level of pollution etc. Nowadays changes in climate influence so much in Travel Company Legal factor:

The final factor of a PESTEL analysis is a legal. The government create legistations which the company should be based on their business.Basically, they can include the right humansuch as company law, employment and business in law. Therfore, it is very important to managers to adapt legistaion and find a new strategy management in organization

Compiling a PESTEL analysis.

The author will combine the PESTEL factors and thinking about the relationship between many factors. For example, the developing of internet affect to the consumer purchasing in social factor. Some areas have to 17

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connections together than others factor. The final of compiling in a PESTEL model is to use the result. This result will use for business opportunities and preparing contingency plan to the company. For example, target customer group may be growing faster than other sectors. This leads an opportunity to grow production to take advantage of more potential customers to strategic company. . 3.2.3 Porters 5 forces: Michael E. Porter created this model for analyzing a given industries bargaining power of customers, threat of new entrants, threat of substitutes of the product and the competitive rivalry within the industry. Threat of new entrants entry barrier :

New entrants depend on the barriers to entering market to go up the level of competition. For example, there are actually many hotels, apartment for renting in Tenerife which are so very important and have much power that do not permit the entrance of a new hotel. Customers brand loyalty also affects the new entrants. This is result of good service. The raw material and distribution channels are established & controlled by existing players which is one of the reasons to avoid the new entrants Threat of substitutes:

The presence of substitute products can lower industry and profits because they contribute to the limitation of the price level.

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Bargaining power of the buyers:

During the hard time of the economical downturn, the bargaining power of the buyers was very important, because there are many sellers in the industry and the buyers in the last few years were decreasing. Many people in every country had to decrease their holiday for staying, instead if 2 weeks in Tenerife to stay only one. Bargaining power of the suppliers

The cost of suppliers material and other product in Caravan Company must have a consideration impact on a profitability company. Furthermore, Pargue Montana need to look at more the customers who is brought by agencies and keep the contact in the long term. Rivalry

Tenerife is an attractive place for tourist; therefore the competition between apartments for renting is really high. Anyway, it has some important comparison between direct competitors and indirect competitors such as: Sheraton hotel, Hotel Catalonia Oro Negro, etc With caravan market, many competitors have changed their model in motor to achieving target sale in the UK.

3.3 Human resource management The purpose of the qualities human research is to achieve an insight into people attitudes, behaviors, value system motivation and personal culture. The question is how can the right human contribute to the success of A&R BAXTER? It is important to connect as with staffs and include them in what is going on within the organization. The right human management increase 19

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the commitment and identify with the organization. In a practical, company would choose organizational objectives and take a decision on a strategy in order to achieve those objectives. In the context of company the strategic focus could, for example, be on the following: Guarantee effective training and development of staff in order to ensure flexibility and competence within roles. Develop effective communication between employees and between departments/functions. Develop organizational objectives to cope with future environmental change including social, political and technological. Strategic focus is on developing a flexible organization that can change in the environment and has a good communication structure in order to achieve this. Prague Montana is a good example of a company in holiday makers which business competitive advantage is its speed and flexibility in meeting the changing needs of various markets. Develop and encourage continuing success the business must develop HRM strategies that depend on the correct human resource areas in order to maximize competitiveness. To develop a successful HRM strategy, company must first be understood the Key driving forces of the business. This can understand by analyzing the culture and human resource people in the organizational. On the other hand, Human Resource Aspects some factors in organization such employees skill and satisfaction, employee costs, work environment, leadership and team skill within the organization.

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3.4 INTERNATIONAL MARKETING MANAGEMENT AND FINANCIAL:

After making the strategic, there is a international marketing management to help the company can get the target sales in the marketplace. Firstly, the author is going to analyze the companys present 7P formula,

Product

Baxter camping and caravanning shop with men and women wear, accessories, equipment, and hiring caravan Pargue Montana offers accommodation with apartment for renting with product such as one bedroom, two bedroom, studio in the south Tenerife

Price

The company chooses to bring down their prices during the recession, offer the same quality than before and promoting packages to attract more customers who will pay more later.

Place

This aspect to the place where the customer can reach the product.

Promotion

This aspect includes the way of communicating the offer of company, the benefits of the service rather than only communicating

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People

The staff in the company is well prepared and qualified for the caravan and tourism as they are dealing with people from the world in a way that customers are quite satisfied with the service provided

Process

In the companys company the most important thing what should be changed in the staff, and service to the customer

Physical evidence

In the company, when a customer buys a product it is essential that seller show what are they buying.

The apartment is mainly visited by people from Spain, United Kingdom, Germany, Italy, Norway, Poland. Therefore, the company has to get a higher market share to attract and to target more people.In the target group, mainly with families and small children. When people achieved something in life, have a stable financial background, they do not have to worry that much about tomorrow. Financial Baxter has successfully demonstrated their ability to grow, and while providing substantial dividends to shareholder's this may be a questionable strategy for them at this time. Baxter's caravan net profit ratio went from 8,7% in 200V, to 6,8% in 200Z, while Baxters Parque Montana from 30%, then increasing to38% in 200Z*. These measures show that Baxter caravan has not been consistent in their earnings while Pargue Montana has increased the size of potentially providing for more earnings . 22

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Baxters gross profit had by a significant 43% in 200Z* and have increased in the first year forecast at 45%. This shows that Baxter's earning power is questionable and can be reasonably expected to grow in the future. When looking at two of the profitability ratios, the return on shareholders funds will increase in the next forecast years. The author sees that the current ratio for 200Z* is 2:32:1 and it can stand at 2:5:1. It means that the company has more than enough current assets. An even more rigid test of a company's ability to meet its current liabilities is the quick ratio which Baxter held a 1:05:1 rating for 200Z*. This is considerably lower showing that Baxter's readily liquid assets could be available to cover 50% of the company's current liabilities. Moreover, the money of company need to support short-term operations is working capital which can be shown at 3,75 times in 200Z* and have a forecast in many years with a increase slightly in 4,5 times and 5 times. One last measure used to determine the strategy company was efficiency ratio. In general, the higher your inventory turnover Ratio is the better. However, this ratio depends on the type business such as caravan and holiday makers. Therefore, the author tries to explain more detail about debtor and creditor ratio. In this case, Debtor days is 89 days and has decreased in the future, while creditor is mainly in 60days.Generally,lower debtor days numbers are better and creditors should be longer. However, a caravan and holiday maker is special way in business. Therefore, the company should be known of why changes in debtor days are happening higher. In conclusion, my impression of this company is that it is struggling to keep their operations producing positive returns and that they are not currently focusing on debtors to their customers. They have increased the cash they have given to affiliates as seen on appendix 17 on the annual report.

Chapter4: Analysis and findings

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4.1 Strategic management 4.1.1SWOT analysis: Environmental factors can understand as internal factors of the company are the strengths and weaknesses part, and those external to the company are the opportunities and threats in the SWOT analysis. The author is going to Caravan Company and Pargue Montana Company for using the factors provided by the SWOT analysis: strengths, weaknesses, opportunities and threats.

a)

Strengths:

Good brand lower price Environmental reputation Service customer Motivating the manager

Good Brand:

A&R Baxter Caravan Company has good brands since in1953. Today, they created the idea of 20 Baxter travel shop in the flight only and the top 10 brands between 40 competitors operating in the UK. On the other hand, Apartment for renting is providing a good quality service for their customers. Pargue Montana with A&R Baxter 24% has offices in London, Barcelona and in Tenerife from which property side of Baxter 24

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business is conducted. The lowest Price

The first is in Parque Montana- Los Critianos model with new apartments available for Co-ownership over 3 monthly with only payment of around 9000 pounds. Guests can choose to use as a holiday home for the family and friends. Environmental friendly reputation:

Ever thing in Tenerife offers friendly environments, artificial to give hotel with first class discotheques, flamenco dancing, sport facilities. Tenerife is increasing its tourist facilities in spectacular fashion. It opened the vision to add to its incomparable climate and splendid never- failing sunlight, hotels which enjoy considerable prestige, residential areas and magnificent holiday housing estates full of plants and flowers. Service customer

Los Cristianos harbor create new development to company with unique features such as Swimming pool .Moreover, the finishing village of los Cristianos with excellent choice of restaurants, plenty of bars and fashionable shops. Furthermore, golf enthusiastic with 27 holes course ad new medical clinic create all modern facilities. On the other hand, Guests could purchase their holiday apartment for as many weeks in the year with one off payment, guests do not have to pay cleaning, decorating, servicing, replacement of breakages, electricity insurance, renewal of furnishings security, provision of total complex facilities, reinvestment in site facilities guaranteed limit to no more than 6% increase per annum in management fees for the next 6years. In the happy couples living only market they cater to different markets by offering benefit from very special way 25

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payment. Motivating the managers of the company

Fractional ownership has advantage to spread the purchasing power for asset acquisition. Therefore, company can also manage the resale of fractional ownership properties. Moreover, family firms with contented workforce create strong family values. Each of caravan models has strength and durability. Therefore, company has the product quality and guarantee, and safety by National caravan council. Also, export sales to Spain and France have been encouraged in the past 3 years. Another one, A new range of Baxter motohome will appear in the UK market. This creates the competition in a significant market.

b) Weaknesses

Poor all inclusive service Bad organization Lack of public Keep the brand standards

Poor all inclusive service

This package does not include every service, which is a big disappointment for the clients. For example, the company does not have to pick up their customer from the airport. 26

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Organization structure:

This is a family Company, therefore A&R Baxter need to change the employees attitude the service can also be improved. They need to understand each other in order to communicate better and providing a better service.

Lack of information and publicity:

Another problem that the author has observed in the company is that a lot of information is missing or is wrong. When a client gets wrong information the quality of the services goes down. Also, it is difficult to find more and more informations about company in social media.

Keep the brand standards

Parque Montana needs to communicate view on environmental issues. For instance, Tenerife have a beautiful beach and good condition air to natural resources, but the company don't have Globe certification to take advertise in the communication ! In this financial crisis, guests want to have better feeling about spending their money in socially responsible ways and of course the Globe Certification make the customer have a comfortable. In financial crisis, bank financing to the permanent sector is often difficult to secure. This can affect to Baxter caravan and travel shop. They need to improve their position against many strong competitors and other popular destinations for happy couple living and families.

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c)

Opportunities:

Improving service Better organization structure

Better publicity
Using the benefits of the financial crisis

Improve service

If the hotel can change the employees attitudes the service can also be improved. They need to understand each other in order to communicate better and to provide a better service. The company is supported improve the services. Therefore they are creating the building, painting the swimming pools, facilitating and new model in Caravan. Better Organization :

Fractional Ownership has increasing a market space in the UK, USA, and Europe. It opens another way of life where many opportunities for fraction ownership model have really taken root. Opening new apartment in Tenerife and the canary wharf island, they could open another apartment in other countries such as China, Japan, Taiwan, Australia, Mexico and Brazil.

Better publics with promoting

Promote their business in some famous city for reaching the largest number in their target sale. Using the benefits of the financial crisis: 28

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During the economic downturn, they need to launch a strategic campaign that emphasizes the money saving aspects of their vacation destinations, and the fact that customers don't need to think more and more about extra expenses. In order to gain new potential customers from its competitors, the company can improve its services and facilities. There are almost 500.000 touring caravan in the UK travelling to approximately 4000 Caravan Park which are mostly small-family run business. Therefore, this opens a new market to Baxter caravan. It can bring many profits for company. d) Threat

The weather Ethical problem Strong competitors Losing the customer because of the unsatisfactory service

The weather

One of threat which cannot be controlled is the weather. Hurricanes are bad things for business; however, the company can offer guarantees so their guests will feel more safety when booking a vacation. Ethical problems

If something come with a causes bad PR, it can be influence the company and eventually the profits of company. A large number of tourists with a lot of 29

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money to spend, and often carrying valuables such as cameras and jewelry, create the attraction for criminals and brings with it activities like robbery and drug dealing. Secondly, recent developments in the travel and tourism and developing of new technologies seem to reinforce the flexible employment conditions. For instance, many jobs young children are recruited, and they are cheap and flexible employees. Strong competitors

An important for the company is the strong competition. It can be seen that, just 30% travel to use travel shops, the internet is the main source of holiday research and booking. Pargue Montana is surrounded by a lot of competitors with low prices as well as and better service. Now, after identifying the companys SWOT, in the following the author is going to analyze PESTEL to succeed in the future 4.1.2 PESTEL Analysis The PESTEL analysis of Baxter can be trace back in history, they have also ups and down during in 1953. In 1988, this company opened new market to Baxter Company in European community. Therefore, A&R Baxter business had move from caravan to holiday solutions in the UK holidaymaker. a) Political In the United Kingdom, strict labor laws such as Minimum wages also influence to the strategic management. For example, if the company did not pay the minimum wage of 5.73 per hour, It could break the law. Failure to abide by the law could result in a 5,000 fine. Moreover, In December 2008, the Government reduced the Value added tax on products from 17.5% to 15%. 30

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This meant that A&R Baxters products looked 2.5% cheaper, and could easily have led to higher sales as a result. To add to this, if it had made it known to customers that it was passing the V.A.T. reductions onto the consumer, it could be seen as a clever promotion tool, to encourage more potential customers to purchase their products. To avoid the negative impact on the environment and the marketplace due to the operations of apartment, it is necessary to impose the Environment related regulations. In UK and the European, Baxter company are ready for constructive dialog within their offices or they can also schedule representative for meeting their guidelines which will be politically imposed according to law and this is how A&R BAXTER formulate their political strategy in their business. b) Economic Factors The biggest economic factor that has affected A&R Baxter from 1988 until the day, as with most businesses is the recession. Especially, Industries like apartment are considered as the non-essential type of services for the customers; therefore, this is one of the first areas that would be affected at the time of recession or economic downturn. The second factor can discuss about economic is the cost of fuel. In the summer of 2008, the price of oil reached $147 a barrel. Baxter caravan will have faced large increases in their transportation costs when the price of oil was this high. Baxter caravan depends on very heavily on transportation. Another important economic factor to look at is the lowering of interest rates by the Bank of England. The interest rates have been cut five times since October at which point they were 5%, and now they stand at just 0.5%. (Monk, 2009) The extremely low interest rates will mean that most mortgage owners will be paying a lot less money back on their mortgage. 31

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c) Social/ Cultural factors

Social cultural factors are one of the major issues to look into for Pargue Montana and Baxter caravan industry because it deals with a large segment of customers who have different demographic profile and cultural background. European adapts the culture with high context and low context, which is benefiting the tourism industry in turn affecting the hotel industry as well. Because of the changing trend, celebrating occasion or special days in apartment has become popular as the end to end services are provided by the hotels in terms of arranging resources & making things similar for people and for some it is more like a prestigious issue.

d) Technological factors:
The potential customers can also make use of the technology like internet in order to get the information about a resort or their charges, service etc. This will help in making their choices about a holiday stay or places to visit. With the help of technologies, the strength of information and strategic decision has become easier within the organizations to plan its future activities and events in advance in an efficient manner

e) Environmental factors:
The company should make sure about climate and energy supply as level pollution in Tenerife to providing a satisfaction customer. f) Legal factor: In Caravan Company, The Company needs to make sure some law about human right, and model in competitors in the UK. In Pargue Montana Company, the government of Spain provide legislations that the company should conform to it such human laws for recruitment. It is important for 32

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managers to make decisions on the strategic company In the following the author is going to explain about Porters Five Forces Model. This model helps the company to make scientifically plan marketing strategy. 4.1.3 Porters Five Forces Model Porter distinguishes between the following three board stages in the evolution of an industry and market. Each of these stages has one unique characteristics. The first is threat of new entrants. a) Threat of new entrants There are a lot of accommodations for renting in Tenerife where are from cheap accommodations to luxuries ones, hotel specialized for families such as: Sheraton La caleta resort and spa, Melia Jardines del teide (4 star hotel) Furthermore, the cost of land in Tenerife is 50% more from the total project cost as compared to abroad which is 15%. The amount of taxes such as expenditure tax, luxury tax and sales tax inflate bill by over 30%. However, fixed investment is huge and also the famous location can become a trouble for the new entrants. b) Threat of substitutes Such threats exists, if there are alternate products with suitably lower prices are available for the same purpose for better performance. This can attract a amount of market level and also reduce the profit margins for the existing players. Despite this, the company is not really threatened by substitutes, or only a few rentable weekend house, camping places, apartment. It can be seen that the brand loyalty of the customers can dominate such substitutes. Moreover, the prices and the customer relationship with apartment 33

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can also be the reason for switching to substitutes.

Bargaining power of customers

During the unseasoned timings, luxury resorts in Tenerife are introducing discounts and promotions to attract the customers as they are the ones having the bargaining power. The apartment prices are not changing regularly because it will have a direct effect on the price sensitive customers. To diversify, company has offered some services like conferences, Spas, etc. to attract the customers.

c) Bargaining power of suppliers The word suppliers means all the possible inputs required or needed in order to provide goods and services to the end customers. As the high class resorts in Prague Montana have their luxury apartment. They are the ones who have the bargaining power and control over the industry. Five Star Hotels which are known for their brand, they dont frequently change their product and services. It is almost the same only provided with some innovations. d) Competitive power of rival players This force explains the strength of the competition between the existing players in the marketplace. The top players in the hotel industry are having the similar kind of services like Spas, Party Halls, Boatels and Motels, etc. This healthy competition among the players also results in the increase in industry expansion. 34

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Anyway, today it has some significant competitors, like Sheraton La caleta resort and spa, Melia Jardines del teide (4 star hotel) . It can be seen that, the apartment is better conditions, the decoration and everything is far more beautiful with the lowest price. In final, Baxter caravan and Prague Montana have awarded of its trading environment. A sound knowledge of its trading environment can lead to such success. However there are a few factors which this report uncovers, in which Baxter Company is perhaps failing to respond to correctly. 4.2 The key findings Strategic management: 4.2.1SWOT analyses: SWOT analyze bring new change in management to the leader in organization. It opens many opportunities for the company to find the good strategic management. The company can work to help older people or children with some organization such as UNICEF. This is a big advantage because Pargue Montana offers apartment for renting with a family and it would change the perception about the image of company in the eyes of people from the world. 4.2.2 PESTEL analyses Understanding the customers needs by making researches continuously is important in the caravan and holiday solution industry. This strategy management helped the company throughout the economical downtown with a good result, which is visible from the fact that they could make to hire up new people, they could make renovations like the swimming pool, constructing a new stage for department and renovate the building. The companys website is a great information tool, giving customers insight about the organization, and giving them the chance to locate current and 35

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future stores. This can be seen as a good response to technological factors. However, with the growing trend in online shopping, and the companys current choice not to sell its products online, could mean it loses large amounts of market share to competitors who currently provide such services. 4.2.3 Porter 5 forces Model In rivalry porter model, the author find out about some hotel and apartment for renting which is really high, but there is no market leaders. These some hotel chain which have a lot of accommodations in Tenerife, therefore below every brand there are luxury hotels and cheaper ones as well. Pargue Montana is a cheaper one and it has a lot of competitors, but s it still has a big advantage in front of its competitors. Todays current economic climate is not ideal for any organization; recession meaning that consumers have far less disposable income. However,traveling is a necessity and A&R Baxter offers the cheaper cost in their service. After this analyze, the author strongly believe that with small changes in service and changing the attitude of some employees the apartment and caravan company to attract and keep people coming the company. 4.3 The key findings human resource management A&R Baxter is a family business, therefore if it is of utmost importance in this type of business where are children involved that the employees of the company act with respond ability. They are playing a quite important role as the parents are sensible when their membersfamily is involved. The most appropriate and most important in this organizational culture is the clan culture. Every employee needs to act rapidly as the external environment, the guests are requesting it. The author find out one of the companys big problems that it has a lot of 36

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employees working there since the company has been built up. They do not really want to change nothing even the strategic and expectations of the clients in Caravan and Pargue Montana changed. For this reason, there is a visible conflict between older and younger generation working in the same department. The managements biggest problem is that they cannot fire people, because the legislations in Spain say that every company has to pay to its fired employees depending from the years working at the same company. If you lay off someone, you pay 45 days for each year that the employee worked for you. The purpose of having an insight of the employees perception is make employees understand that they have to work together and make them feel motivated and the need for change 4.4 The key findings international marketing management The author find out that, if company finds the perfect target market, the company will take into consideration many details. In the case of finding the most suitable target country, the most critical factor to find about is the average income. To find the most advantages market, the company has to count some factors like culture, human resource which has to say in human resource to deal with a lot of customer. It can be seen that, a country with higher income such Spain or United Kingdom is a considerable choice, because it means that there are potentials who can afford paying for spending and travelling abroad in a quite expansive , as Tenerife. The author find out that the company can get target the Tenerife market and United Kingdom because the cultural differences are similar of these countries. Dealing with customer as an international level, it is very basic to get knowledge about the differences between the cultures. Cultural conflicts can occur in organizations; therefore organization conflict can harm the 37

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success of the company. Identify the cultural differences to get a target a market in an effective way in A&R Baxter Company. In promoting, the author find out that company must make a new marketing plan. They need to create special offers in order to increase market share. This was a good way as they made up some special packages with a reduced product to gain more and more potential customers who cannot afford to spend a lot of money for accommodations. The package includes a little bit bad and breakfast, but there were a lot of people interested in the offer. Moreover, this way make the company take an important contract with travel agencies, because they gave them a cheaper price.

Chapter 5:
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5.1 Problems and Solution: 5.1.1 Problems and solution in the strategic management Applying strategic management to find many problems in this company, the author is going to tackle in the strategic management to find a solution in business globalization. The first problem is the financial crisis because the holiday industry has been affected by the economic downturn. Moreover, increasing oil and gas prices create high fare price, and decreasing demand for plan tickets and travel. The recession had most of the companies cutting back on their expenditures. This lead business travels and entertainment kept at a minimum. Therefore, the company should create marketing tagline which is still the major focus and careful not to dilute the brand. The second problem is changes in tastes and preferences in business strategic. This is because customers are the most important aspect of a company based on decision making. The company should have many programs includes the wellness and fitness program and the boutique segment. This can involve certain select guests gaining access to special amenities that accommodation their individual need. Moreover, it would not be any problem if the company would have been targeted family people. The problem is that service and the equipment are made for main family with children, or elderly people. The solution for this problem would be if the company would spend money on advertisement to target more families in a larger market but meanwhile to keep more customers as well.

On the other hand, sometimes risky investments in property entered at high 39

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costs have a high rate of return that fully covers the costs and generates high profit. The trick is to understand when it is safe to launch this business. Moreover, Manager should try to offer the low cost structure that Pargue Montana is currently familiar with other locations. Therefore, the question is how companies strategic could be replicated in other locations where cost structures might be different. As a result, the manger should build up the compatibility of European hospitality with different culture, heritage, and norms. Moreover, the cost to buy a hotel is lower than constructing one, however, for a company like Pargue Montana that depends on much weight on the apartment as a factor to improve differentiation to their business. Although Apartment built in famous place at the south of Tenerife where structures cost is high and labor is relatively expensive compared to the developing countries. Therefore, to make sure the company can have advantages with other competitors, they should offer the quality of their products by observation of all competitors at the country as well as to show that their product is the best in the market. 5.1.2 Problems and solution in human resource management A&R Baxter is family business that there are many problems which can often to appear among member in organization to take a decision in business organization. This can lead poor communication and the lack of structure to customer relationships to business activities. Effective communication is the most frequently mentioned issue regarding the need for challenge and opportunities in family businesses. Therefore, the company needs to consider the importance of common expectations and values to guide family members. Also, leadership training and structured responsibilities make to be clearly in work roles as the management more congruent. This can help to improve managerial communication; well-managed employees. As a result, they will 40

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have direction and know how influence business activities positively; and that a professional appearance of the family business has to impact on customer relationships. Moreover, other problems can occur in family business which can be seen in improving behavior between members in organizational. For example, the chief executive officer (CEO) criticizes the manager's (his daughter's) behavior constructively without thinking that she understands his advice as she would at home. This can lead causes a dispute instead of enhancing the manager's skills. As a result, it can have disastrous consequences for the business. Therefore, the company should find some measures which can put in place to avoid the stress and rifts within the family due to the business. They can includes employment contract/rules and policies, and effective communication, and dealing with family. The first is employment Contracts/Rules and Policies: it helps the manager understand what is expected of member in family. Therefore, the staffs should follow by the law set out as regards holiday. The second is effective Communication. The third is staffing key positions. The company should hire experienced positions such as a financial controller who have a lot of knowledge. And the final is dealing with family business. Therefore, the CEO should treat them the similar way that he would treat any other employee. 5.2 Recommendation to the current strategic change and business plan to A&R Baxter: 5.2.1 Reomdations to the current strategic change:

After analyzing strategic management, the company should develop a vision and strategy in organization structure. The vision must e particular and 41

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desirable to create good environment in the company. This helps to avoid stress and make communications between employees become easier. Also the company needs to join some organization about health and safety to children and old people. This leads to attract customers from many people in the world. Moreover, it also creates a bride picture to build a good brand in the global market. In service customer, the manager do not need to change the price of product, but the company can offer some service to customer such as discount 10% when family stay in the long term,. Moreover, the company should create card which encourage the customer coma back the company again. With the developing social media, the manager needs to change strategic company on the internet. Administrator can create a good website to offer more detail about special service in the company such summer holiday, the winter storm. Follow this special service, the company need to create the lowest price which can attract more and more customer in the financial crisis. Furthermore, the company should open the image of company in social media such as: facebook and youtube. Moreover, manager can create campaign to provide their products of the company. Building on the change, leaders need to understand why they had to change within the organization structure. Therefore, they should recruit a staff that had a lot experience in teamwork. After recommendations on the current strategic change in A&R Baxter company, the author is going to explain about business plan to the company

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5.2.2 Business plan

Mission: achieving the ultimate goal in Caravan Company and create new model in product. In Pargue Montana maintaining the existing level of services to achieve its vision

Vision build brand value and truth from getting highly appreciated from local resident and committee by working actively to preserve, product and promote the natural and human right in the environment.

Marketing Strategies: moves to sustain competitive advantage: Apartment in Pargue Montana is considered very successful in accommodations, because it includes the best Luxury Portfolio. It is important to note that apartment portfolio includes new properties, renowned landmarks, relaxing golf and spa resorts. Apartment strategy is an aggressive expansion of the new markets in European. The strategic goal of this company is the establishment of the global brand. In accordance to the apartments network management, it may be achieved through ownership and management contracts, composed of full-service.

Apartment hotels has a distinctive portfolio, perfect customer service, high level of guest satisfaction, talented leadership, and good infrastructure which are provide strong competitive advantages. Financial statement: the company has a strong financial statement. However, the company needs to know how to use the cash as create more and more payment to make comfortable to the customer. 43

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Finally, in order to take the business plan, the top managers should filter the human right implication of the plan down through the company. The leaders should make good advertisement, and improve the customer feedback from clients through social media such as website, facebook and Twitter. Finally, manager should do the supervising and tackle to correct problem as they happen. Furthermore, managers can adopt the reward and punishment policy in their strategic management.

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Chapter 6: Application of the learning another organization

The purpose of learning organizations is reflections on the literature and fractioned perspectives. This help A&R Baxter Company achieve desired outcomes in their business. The author explains about Sheration La Caleta resort and spa in Spain which have recognized the commercial significant of organization learning. Moreover, the author also compares between Caravan Baxter Company and Acorn company caravan and trailer Hire. Firstly, The author is going to compare more detail about the Sheraton company and then, how strategic management to analyze to this company. Finally, the author will compare between Pargue Montana and Sheraton La Caleta resort and spa in Spain in the hospitality industry. The author also balances a little bit between Acorn Company and Baxter Company in Caravan industry. 6.1 The brief of company: Sheraton hotel is an international company. Today, they have more than 400 hotels and resorts in 70 countries such as Spain, United Kingdom, Japan, China and Vietnam etc. Sheraton hotels have become the hottest destination in the world and also, this brand is the most popular hotel and represent as the stylish. Sheraton worldwide offers business travelers and leisure the fittest in accommodation, service and value to customer. In their business, they have to expand geographically, travel concept and developed technologies to enhance the customer experience. Today, Sheraton hotel is leading global hospitality company, spanning the lodging sector from full-service hotels and resorts to extended stay suites and mid prices hotels 45

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Sheraton La Caleta Resort & Spa is nested in Costa Adeje, with a seafront location enjoying fantastic views of the Atlantic Ocean. This area is part of Tenerife which is the most populous of the seven Canary Island. There are special hotel with those people who find facilities like fitness room, golf, huge swimming pools, football and restaurant. Furthermore, climates make the island more special. The south part is more dry and sunny while the northern part is the humid air. The Company what the author chooses to learn organization is the Sheraton La Caleta Resort & Spa in Costa Adeje which is part of starwood hotel and resort worldwide. Today the company is the worlds largest operator of holiday resorts. In Costa Adeje, Sheraton La Caleta have 284 rooms and with outdoor pools, kids club, 5 restaurants and bars and an exclusive spa completes your holiday experience. The company also offers specials service to make satisfaction customer such as beat the timer, get an amazing start, golfing Tenerife, summer golfing for two, summer families and spa holiday. Sheratons culture from different aspects: companys mission, vision and value. According to the website of company,the mission is to consistently exceed our guest expectations in term of the products and services. We provide to our business and leisure travelers. The vision is one of the leading corporate travel management agencies in Tenerife, Spain. Sheraton La Caleta also have many awards such as travel professional favorite in European and SPG Member Favorite in family. This can be seen that the company has a good strategic management in their business as the function of human resource management to contribute to the performance of company.

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6.2 Problem of proposal and analyzing strategic management: 6.2.1 Problem of proposal: The holiday industry depends on the weather and climate so much. Moreover, the company has to face many challenges in the financial crisis; therefore they need to change their strategic management to attract the potential customer. Moreover, with a 5start hotel, so the company also has to face with many problems about labor in the human right. 6.2.2 Strategic management at Sheraton La Caleta in Spain The author is going to explain analyzing SWOT model of Sheraton La Caleta, costa adeje in Spain a)Strengths There are many strengths of Sheraton La Caleta in Spain. The first is the best Location and Seaview , it is located in the southern part of the island, five minutes from Costa Adeje Golf, one of the seven golf courses on the island. Nearby El Duque Beachis the famous place in the island. The second is Famous Brand in the world, therefore customer can feel comfortable with five start hotel. Finally, company offer Deluxe Suites, Premium Suites, Club Terrace Suites (with a private Jacuzzi), and La Caleta Suite, which includes a large terrace with a panoramic ocean view. Hotel offers meeting and business services including internet access, presentation facilities and technical crew.

b) Weaknesses of Sheraton La Caleta.

The fist is Lack of choices for limo services, for example lack of luxury car 47

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for choices, also the company do not have 24-hours services e.g. transportation services. C)Opportunities The tourist market from European is growing, according to mass media, in 2009 about 60% canary island tourists come from European, and have over 5% increasing in every year. The recession influences a lot of companies in the bankruptcy. The hotel could take this opportunity to improve their service and facilities. This leads to gain new potential customers for its competitors. d)Threat: The "free-walker" from European mostly, they like 3-star or 4-star hotels because they are cheaper. Moreover, Tenerife is a famous island with the strong competition hotel. Their competitor can be from directly such as resort and indirect such as apartment for renting. Moreover, if the service does not match with the satisfaction customer level of Sheraton La Caleta, they will lose guests. After identifying the companys strengths, weaknesses, opportunities and threats, in the following the author is going to implement there are a new strategy in order to succeed in the future

6.3 Comparison between A&R Baxter Company and Sheraton company in holiday industry: It can be seen that, the Pargue Montana is concerned that the rate was a bit 48

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cheaper. For one payment of around, you can own 3 months of an apartments with beautiful city from Los Cristiano for the family and friends. At the Sheraton hotel, customer can have an ocean view which was an average of 170 pounds/night. Although the standard was different, it can be seen that the Pargue Montana is a bit cheaper. Secondly, the rooms at the Pargue Montana make a feeling as your family, even the Sheraton is billed as a 5 star hotel. Third, the entertainment and cheaper food in Pargue Montana when compared with Sheraton On the other hand, there are many reasons to stay at Sheraton La Caleta in Spain The first is great location, its right in the middle of Tenerife, therefore it is easy to walk to the beach in front where theres a lot of surfing/rentals and commerce. The second is outstanding pools, the winner for pool is Sheraton hands down. If you have kids, and swimming in the pool is important, then the other shortcomings of the Sheraton can be overlooked because you wont find a funnier pool on the island. That being said, the pool at the Pargue Montana is still good, just a bit murkier and not as exotic. The final is very important in the comparison that human resource management. It can be seen that, the Human Resources Department is responsible for employee compensation and benefits, administration of the Sheratons automated human resources/payroll system and maintenance of employee records. Sheraton Human Resources strive to maintain consistency across the organization to human resource issues, while Pargue Montana is a family business therefore all employees are treated with equal respect and dignity Sheraton makes sure that the workforce reflects the diversity of the community it serves. This is because they are five star hotels in the world as 49

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all employees understand the Sheraton's pay-for performance merit system From the interview side the author can see an interesting way that they interview them from their past. And the author thinks their recruitment system as something unique. Its very rare to see an interview like their system. They also respect their employee, by giving a good treatment from insurance, day off and incentives. They also consider the career of their employee by giving some promotion or president award that will make them registered to the regional. 6.4 Comparison between Caravan Baxter and Acorn Company in caravan industry: ACORN Company is a caravan and trailer hire serving the UK and European since 1982 while A&R Baxter found in 1953. Acorn took ownership in 1993.The company continues to manage the annual St Patricks Day celebrations in Trafalgar Square and promote Rise: London United, a free anti-racist and multicultural festival, both for The Mayor of London, Ken Livingston. The service of Acorn has flexible and available for holiday hire, special event hire, sporting events special occasion, hospitality, contraction long term hire and during building works to your home. The price explains on the internet with a good website http://www.acorncaravans.co.uk/. All price and condition are very useful to those people who want to hire a caravan. The company offers a unique service unmatched by any other tour operator. The total holiday provides for people with their own tent, trailer tent, caravan or motorhome allows you to book your ferry crossing, campsite pitches, tailored insurance and overnight stops in one go. Therefore, the vision and mission of company is we make it easy! 50

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6.5 Findings of learning in another organization: After analyzing strategic management between A&R Baxter and another organization, the author provide to many findings to the company when learning from Sheraton company. 6.5.1 Change management processes Change is about changing one condition to another desired condition. In this case what must be changed is some employees attitude toward each other. The Spanish local people are thinking that because they are local and because they worked many years at the company they have more rights than other international employees. Their behavior sometimes show disrespect for the younger generation, but mainly towards international employees by insulting them and showing a superior manner. They must understand that without international employees and without the international experience would be really hard to handle international customers. On the other hand they also must understand that if they do not perform how is requested from the management they will all use their job, as they are not going to be able to produce a good quality service and they will lose their customers. 6.5.2 Developing a vision and strategy: The manager and employees can make a impact and work together, therefore they can increase efficiency and explains more expertise by sharing knowledge and get to work with professionalism. They need to set common goals and awards in their strategic. This is very important to develop a vision and strategy. The company needs to know what to do and how to do it in the 51

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future. The vision must be practicable and desirable. Therefore, they make the working environment become less stressfully and focus more comfortable on each other. Communication is very important to deliver a high quality job. It means that the employees must make people understand that the international people are of the greatest benefit for them. Moreover, they can innovate the employees with a better environment and image. 6.5.3 Build on the change The leaders first must have to plan the changes really good, because otherwise it will be really hard for them to change the employees behavior towards each other. They have to be aware of the fact that if they make something wrong, the local employees might understand as a trap made by the international employees, as they were the ones who told about their behavior to the managers. This way the managers can start even a harder conflict between them. On the other hand, if they can make the employees understand the importance of having international collages, and knowing different cultures they might reach to work together. They might share knowledge and experience this way improving the service. Finally, the purpose of my thesis was to find out how a company can pass over the hard time of the recession and what has to make after. PargueMontana could face the economical downturn with success when they learn lessons from Sheraton company, as it had almost the same number of guests like the previous years, but with the condition of bringing down the prices, therefore it had a loss in its revenue, but still got enough profit to start improving some facilities of the hotel like, renovating the faade of the building, buying tools and building a stage for the Entertainment Department. Pargue Montana needs to start renovating and redecorating the rooms from 52

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2012, but still then they must attract more customers in the most cost efficient way possible. 6.6 Recommendations for managing these brands and products in the future: A company in order to be successful always has to know the intentions of the competitor, and before the competitors movement, the company already has to know what they do in respond abilities. It is the biggest important to know the competitors core competences as well and if possible to copy it in a suitable way for the organization. Another great recommendation, the company should create a loyalty card. This card can include the free late check out, the priority in buying drinks or snack in the bar, receiving wine and fruits on the date of the arrival at the apartment and getting points for every night spent at the apartment which can be used for free night at PARGUE MONTANA. This card helps the company to make a lot of customer coming back more than once a year. In other word, the leaders must be aware of the fact that company have a lot of thing to anytime even if they only focus on accommodating the guest and taking care of their well being and caravan model. Even the company has a webpage where people can buy directly the production is much easier, safer and surer that with others help company get more customers. Thats why is making to research about the travel agencies to find out with which ones is more profitable to deal with. Therefore, the leaders must be aware of the fact that without contribution of the travel agencies would be hard to be requirement a higher investments for reaching success. On the other hand, the agencies have many contacts with different airlines, media, and important business people. If they are satisfied in the public, they can also contribute to change the image of company in the customers mind. 53

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The company can work to help older people or children with some organization such as UNICEF. This is a big advantage because Pargue Montana offers apartment for renting with a family and it would change the perception about the image of company in the eyes of people from the world The message has to communicate the fun, happiness and relaxation, but meanwhile assuming respond ability by choosing an apartment. The message should be simple such Enjoys with respond ability. The company should have a media strategy where will they promote? And what newspaper do their target markets read? What television programmers do they watch? . It can be seen that effective targeting of their media campaign can save the financial of company.

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Conclusion:
In summary, the purpose of this thesis was to find out how A&R Baxter organization structure ownership can overcome the hard time of the financial crisis in the world and what the company has to do in the future. After analyzing the companys strategic management, the author has a bride picture of the company which made to understand their relationship between employer and employees. I find out some problems in business family and with the help of strategic management which helps changing an organization, there author tried to solve the problem. Then the authors continue with the marketing mix 7ps with international marketing management. The author provides the help of the local travel agencies and creates advertising campaigns for finding to reach the sale successfully the caravan and holiday market. Moreover, with analyzing the companys human resource management the author explained the right skilled human resource. Finally, with learning the organization such as Sheraton hotel in holiday industry and in caravan industry help the company lead to improve the quality of the service the profit of the company.

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