The Information Technology Strategic Plan of Perisher Blue Pty Limited - Case Study Example

HOME Perisher Blue Resort (The Business Case Milestone) Student’s Name & Student No: - 8/26/2010 Literature Review Information technology (IT) is increasingly momentous and is continually making tremendous transformations in the way organizations take their business decisions. Organizations can no longer conduct their business without incorporating elements of IT. Also, specialist decisions can no longer be taken without the financial as well as technological support from the business program areas. This is where Information Technology Strategic Plan (ITSP) aids the process and this assignment will particularly discuss the same with reference to the case of Perisher Blue Pty. Limited (‘Perisher Blue’). Brazell, T. (2001) rightly discusses that application of Information technology in an integrated and cost effective manner can lead to improved efficiencies and also enhance and expand the arena of service provided. ITSP can indeed serve as a valuable tool for planning and efficient communications platform where it can be leveraged the capabilities of the already existing IT infrastructure and provide innovative solutions to challenges envisaged in future (IRM Strategic Plan, 2008). Strategic Analysis is a tool which involves a basic evaluation of present standing of the company. As illustrated by Dyson, 2002; it encompasses a SWOT (Strengths, Weakness/ problems/ constrains/ uncertainties, Opportunities and Threats). In SWOT, strength refers to the innate capacity of an organization which enables it to gain strategic edge over its competitor. Weakness refers to the intrinsic limitations or constraints of an organization creating strategic disadvantage for it. Opportunity refers to advantageous organization’s environment which makes it possible for the company to strengthen its position. On the other hand, Threats are those unfavorable conditions which damages or risks an organization’s position. SWOT is generally carried in the form of External Analysis (gives us a measure of the company’s opportunities and threats) and Internal Analysis (gives us a measure of its strengths and weaknesses). External Analysis consists of (a) Customer analysis where the different motivations for the purchase of a product are studied along with the unfulfilled needs; (b) Competitor analysis where the rivals are analyzed on the parameters of their performance, image, culture, cost structure, strengths and weaknesses; (c) Market analysis markets are evaluated on their size, potential growth, profitability, entry barriers, etc; and (d) Environmental analysis which is a study of technological, government, economic, cultural, demographic scenarios. Internal analysis consists of (a) Performance analysis where the company assesses its profitability, sales, shareholder value analysis, customer satisfaction, product quality and brand identity, costs, innovations, employee strength and product portfolio estimate; and (b) Determinates analysis such as past and present strategies, organizational resource constraints and capacity, financial soundness. Keeping the above in context, this assignment will attempt to analyse the case of Perisher Blue with an aim to highlight the integration of its strategic vision, objectives and strategy which should merge into an overall strategic plan. Execution of strategy has a significant dependence on the culture of a corporate which determines the behavior, tradition, beliefs and values of the employees of the company (Kotter, J. P. & Heskett, J. L., 1992, pp.5). A culture which is out of sync with the company’s mission, direction and objectives can act as a major deterrent and even make a theoretically sound strategy useless due to problems it poses in its implementation. Value Chain Analysis is also one of the tools which aid analysis of the various activities within an organization in terms of their value. The combined costs of all the various activities in a company’s value chain define the company’s internal cost structure. For comparison purposes, a company’s relative cost position is a function of how the overall costs of the activities it performs in conducting business compare to the overall costs of the activities performed by rivals. An evolution of a unique business and internal operations, strategy, approaches to execution of these strategy, manner of performing each activity and the economics such activities is reflected from the value chain (Porter M. E., 1985, pp.36). Being a service company with an aim to serve a plethora of Resort visitors from Skiers to Snowboarders to Sightseers or Holiday makers, Perisher Blue is an ideal company to implement a well structured strategic plan driven by Information Technology for an error free and systematic management. Lee & Bai, 2003 has rightly elaborated the role of customer satisfaction and customer oriented strategy is the key to sound management of service companies. Conclusively, a company’s operational effectiveness is derived from its proficiency in formulation and execution of strategy and hence, strategy management. However, as appropriately pointed out by Covin & Miles, 1999; a periodic assessment and review of the different strategies vigilantly searching for methods to continuously improve and make corrective adjustments is warranted nonetheless. SWOT Analysis The following section illustrates the SWOT analysis of Perisher Blue:- 1. Strengths: The geographic and topographic location of Perisher Blue which ensures reliable snowfall all throughout, highest terrain and greatest number of lifts is a major resourcefulness. Moreover, it combines the resources and facilities of four major areas like Perisher Valley, Smiggin Holes, Mount Blue Cow and Guthega is its strength. In addition to this, Perisher Blue scores high in terms of its ease of access throughout the village, onto the mountain and across the ski slopes. Another of its strengths is that Perisher Blue strives to maintain international class facilities, however, maintaining its ecologically sustainable principles through environmental management statutes for both winters as well as summers. The wide product portfolio like activities starting from accommodation, ski lifts, trails, mountain restaurants, snowmaking etc., all further solidifies its position as an eminent destination mountain resort. Moreover, the development and management of each of the four areas is not rigid and inflexible, rather, it is decided based on its location, skier circulation, environmental characteristics and other operational perspectives which makes the strategy of Perisher Blue suitable and appropriate thus contributing to its strength. 2. Weaknesses One of the chief weaknesses of Perisher Blue is the requirement for the snow fields for a compulsory interaction leading to an organisational resource constraint due to dependency of the use of one resort on movement in the other. There are also certain limitations in terms of repeat skiing which requires additional planning in the total lift system. 3. Opportunities The analysis of ski resort market reveals that the demand is predicted to stay strong at 3% with a potential growth rate of 4.6% in design day visitation over the next 25 years. The improvement in IT infrastructure due to probable research and advancements could help accommodate planned visitation levels, even under adverse conditions so as to give a boost to the already existing clientele. 4. Threats Being highly IT drive, the ski resort market may get stagnant in absence of any future technological support in terms of handling the increasing market demand and customer needs. High dependency of systems indeed threatens the collapse of the entire business in case of serious technical failure of mismanagement. Furthermore, affordability of advance and upgraded technology as well as innovations necessitates huge financial investments. This has an after-effect of increase in prices of the products offered to the customer which may lead to dissatisfaction. The business is also highly dependent upon congenial environmental and weather conditions in the area. Any season which has adverse atmospheric conditions might lead to a total interruption in inflow of customers and since, the product offered is perishable, it leads to a loss to the business. Appendix The business process flows within Perisher Blue can be identified as below:- 1. The business process of Perisher blue involves both customer management as well as employee management 2. Customer management starts with providing accommodation facilities in its resorts 3. The business process sustains through constant interaction between the various resorts 4. The key slope master plan designed on environmental guidelines take forward the business of Perisher Blue to beyond accommodation. 5. The field visit includes several activities like skiing, snowboarding etc. For which the provisions like Ski lifts and trails, mountain restaurants, toilets, slope grooming operations like snowmaking, supporting infrastructure such as power, communications, hydraulic services etc. are provided 6. Finally, the visit of the customer ends after they have enjoyed the facilities of the mountain resort. Figure: - Business Process Flowchart Read More