Industry Introduction Tourism in Egypt Economy Arab Spring & Tourism Industry Terrorism impact on tourism industry About the Company EGYPT CAR TRAVEL ECT Introduction ECT Portfolio and Services Offerings ECT Current Strategy Vision & Mission ECT Decision Making Process Trend for the Company's Operations
Improvement Action and new Business Model SWOT Analyses ECT New Vision & Mission ECT Motivation Techniques ECT Planning process ECT Strategy Formulation ETC Strategy Adoption ETC Organization Structure ETC Leadership Implementation ETC Risk Management Process ETC Controlling and Quality Improvement Process The Business Model Canvas
Share to GDP Tourism sector is growing better than the economy as a whole. In 2010, the last year before Egypts revolution, record 14m tourists arrived. The industry was 13% of GDP Generating jobs Tourism as a labor intensive industry creates jobs in almost 70 related sectors. Directly or indirectly employed one in seven workers. Which is representing 14% of new jobs. Source for foreign currency Tourism in Egypt has long been a driving engine of growth and one of the largest sources of foreign currencies. Its share represent 19.3% of total income of foreign currencies. The economist has made a study on the Egyptian tourism sector on May 4th 2013
Arrivals plummeted to 9.5m in 2011, and have yet to recover (see chart). Tourism Economics, a consultancy, predicts that 11.4m tourists will come in 2013 however the final-year data from the Central Agency for Public Mobilization and Statistics released in February 2014 Showed that a total of 9,464,349 tourists visited Egypt in 2013, representing a decrease of 17.9% year-on year and essentially returning the industry to its 2011 lows
Actual Visitors (m) 5.2 4.1 5 8 8.7 12.2 14 9.5 11.5 9.46 Forecasted visitors 5.2 4.1 5 8 8.7 12.2 14 9.5 11.5 11.4 Year 2000 01 02 04 06 08 10 11 12 13 Forecast 0 2 4 6 8 10 12 14 16 2000 01 02 04 06 08 10 11 12 13 Visitors in Millions Actual Recently with the ongoing political unrest and disturbances following the overthrow of ex-President Mohamed Morsi in July 2013 lot of terrorism operations has been started. In February 2014 suicide bomb attack on a tourist bus in Taba, in Sinai - which killed three South Korean tourists and the Egyptian bus driver. As an action from the government side Egypt Tourism Authority in association with EGYPTAIR has launched a fully liveried taxi advertising campaign in Central London with leading taxi advertiser London Taxi Advertising. The campaign will run for one year to travel to Egypt to discover the desert, river cruises, turquoise waters and first class getaway resorts. Now and after having an elected president still the terrorism operations are happening from time to time and accordingly the tourism industry will suffer more and more. EGYPT CAR TRAVEL ECT is an Egyptian owned and operated Travel Company offering group tours for international markets.
ECT offers are all adhering to international standards of tourism operations and all our services are insured.
The staff of ECT are excellently trained and customer service oriented by global standards. As for transportation services , which includes cars, minibuses and buses, it is all brand new with a strict maintenance program to preserve the service quality.
ECT Limousine offer comprises the newest cars in all categories, professional experienced and bilingual drivers, third party liability insurance policy, 24/7 availability and an excellent booking and trace system.
ECT offers day tours, half day tours, individual sites tours, Coptic Cairo, Islamic Cairo, Artistic Cairo, Historic Cairo, and short trips within Egypt. Airport meet and assist, Transfers, Ticketing, Sightseeing, Nile cruises, Excursions, Hotel reservations, Conferences and Seminars, Incentive programs, Desert Safaris, Water sports, Diving excursions.
ECT partners are the highly reputed hotels well chosen based upon the history, location, singular features, level of service and innovative nature as well as tourism service providers covering a wide range of customer choice and segmentations such as Events, Wellness, Gourmet, Sports, Leisure and corporate.
ECT office staff are all experienced customer oriented bilingual team members with a precise and personalized response to their individual representation requirements.
Vision is to increase number of tourists through the coming seasons and on the long run to be the best travel agency in Egypt.
Mission is to ensure the best service to have a good reputation to attract more tourists, offers Unrivalled Value, Unique Itineraries & More Inclusions.
As the tourism section is one of the most sections that can be affected by any event world wide , no one can predict the effect of an event that happened in any place and what is the consequences of this event , it is like The Butterfly Effect.
Working on such environment makes most of the actual decisions to be taken using the Crisis Decision Making Process
By Definition , Crisis decision making: A crisis involves an unexpected problem that can lead to disaster if not resolved quickly and appropriately . ECT is usually following the 6 main rules for the Crisis Decision Making and Crisis Management: Figure out what is going on , Remember that speed matters Remember that slow counts too , Respect the danger of the unfamiliar Value the skeptic , Be ready to fight fire with fire
Before Jan 2011 , Company have an average number of PAXs per month 400 PAX. Gross Profit From each PAX is around 600 USD. Since Jan 2011 trend is massively declined to reach an average monthly value of 18 pax . Below Graph Shows the Full trend for the Company's PAXs per month during the last few years .
Strength Experienced & Professional team (Owners, managers & employees) who perform very good services and know how to take action in crises. Reputation in the marketplace.
Opportunities Encouraging the foreign investments. Give incentives and tax break will attract rich investors from around the world to invest in Egypt. Enhancing investments in infrastructure projects that support tourism industry. Hajj and Umrah Activities
Weaknesses Threats Market Specialization Segment: Single Market (Australian Market) , Many Produces Depending on the Winter Season. Website is not efficient enough Not attending all tourism seminars related to Egypt
Large and increasing competition. Political situation, Tourists can travel to any other destinations rather than travelling to Egypt. End of season approaching. After we got the whole data and information about the company we seek to do improvement over the company performance so we do the following:
Identify and define the problem which the company face which mainly was ( Low and declining no. of tourist & Dependability upon the Australian tourist only) .
Generate and evaluate alternative solutions and evaluate its cost, Benefits, Timeliness , acceptability and Ethical soundness .
Make a decision through using a classical model to reach to optimizing decision .
Implement the decision of improvement which we call Improvement Actions .
Evaluate results .
ECT in order to cope and implement the new improvement they have to update the company Vision & Mission
ECT New Vision: The Best Dynamic Tourism Companies in Egypt For all Nationality.
ECT New Mission: Be the Best Guide for any European and Australian Visitors to Egypt. Be a Highly Trustworthy Commercial Site and be a Top Ranking Site in Search Results.
ECT Motivation Action to Employees:
Training: Give employee periodically training courses. Annual trip: Offers Best achievers annual trips . Interesting work culture: Offering employees feel of security and a team spirit culture . Paying variable Incentives Distribution an incentive amount of money for employees based on the number of PAXs .
Recommended Payless Motivation to Employees
Personal growth trumps a bonus. If you know the interest of your employee, Trap the chance to make him fulfill it to the interest of the work Status means more than money. Sometimes motivating an employee is as simple as giving him authority. Perks pave the way. As buy two tickets for a concert they had all been talking about for weeks and put them on the line for the two employees with the best record for errorless order fulfillment. Recognition is priceless. As wall of frame Personalize it. You have to know what motivate each one of your employees .
Planning: The process of setting objectives and determining how to best accomplish them ECT Planning Process: 1. Define their objectives : Target 400 Tourists monthly from world wide. 2. Determine where we are : 30 Tourist Monthly. 3. Develop premises regarding future conditions : Develop an admin premises and enlarge the supplier chain. 4. Analyze alternatives and make a plan : Plan done for one year projection. 5. Implement the plan and evaluate results : Results is evaluated on a monthly plan and each month the plan revised till the end of the year.
BCG Matrix approach
The Mother company in Australia is CASH COW As it has High market share and low market growth
ECT Egypt is Question mark As it has Low market share & High growth rate
Preferred strategy to ECT is growth for promising Market growth and restructuring or divestiture for others through concentration strategy which is grow within the same business area.
Managing Director Operation Manager Tour Leaders Traffic Manager Transportation Manager Senior Tour Operations ECT main assets are the people, accordingly the Leadership main focus is the people.
The company always do planes for motivation of employees to increase their willingness and ability to perform job and plan their career.
The company depends mainly on Australian tourist from its mother company accordingly ,they depend more on the passive plan in which the company insure the tour guides a month before the tourist arrival and as such the company had managers not leaders.
Based on the new strategy of company the will need the following: Do the right things Inspire Influence
The companys leader must empower employees through the following: Trust Authority Responsibility Information Known Unknown Risks They are the list of risk pre-defined by the organizations and Contingency plan prepared for them based on there impact on business and probability of accordance ). Flight Delay , Bad Weather blocking Flights Political instability issues , Infectious and Diseases Unknown Unknown Risk Unknown Unknowns are factors that are missed by various reasons , when identifying general uncertainties and uncertain events. Unknown Unknowns are those where we are practically clueless about either the risk or its impact or its timeliness. Management Reserves are available for this kind of risks
Quality process are following three main Theories Fitness For Use by Joseph M. Juran Kaizen Approach for continues approach Walter Shewhart and Plan-Do-Check-Act cycle Periodic Trend Analyses
ETC Objective and standards matches the customer need according to Joseph M. Juran and the theory of (Fitness for Use) , this means the customers expectations are met or exceeded , According to this theory , we have to differentiate between Grade and Quality definitions , Costumers within certain defined and agreed grade , should receive the maximum level of quality that is allowed in this grade
ETC improve their quality by using The Kaizen approach states that improve the quality of the people first and then the quality of the service and customer feedback . ETC use the Run -chart To do trend analysis for their customers. Walter Shewhart and Plan-Do-Check-Act cycle ETC implement the Plan-Do-Check-Act cycle on both customer satisfaction measurement , and there internal processes.
Segment Diversification: Target other market rather than the Australian market and start with the European Market.
Enhance their service in the Medical tourism and which is most likely now by all tourism especially European.
Enhance the Hajj and Umra Services .
Enhance and improve their online WEBSITE which will cost less and have a huge impact upon a new and diversified customers so the first things is to activate and enhance their online web page and connect it to Face book & twitter and let someone to be responsible upon the inquiries, replies and updates to build a trust and long term relationship with the Customers.
Make a lot of offers that is customized to the nature & Culture of different tourists . Cost Structure Revenue Streams Key Partners Key Activities Key Resources Value Proposition Customer Relationship Channels Customer Segments Medical Tourism 17-Aug-2014 Iteration #1 CAMPAC (Central Agency for mobilization and Public Center) ETC Operation Manager Ms. Zeinab Wahdan