Perisher Blue Resort - Strategic Planning Milestone - Case Study Example

PERISHER BLUE RESORT: STRATEGIC PLANNING MILESTONE Introduction Strategic planning is an organization’s process of defining its direction or strategy, and making decisions regarding the allocation of its resources to achieve its strategies, including its people and capital, (Schraeder, 2002). This process is often carried out using various business analysis techniques such as the SWOT analysis, PEST analysis and the EPISTEL analysis among others. Success in business environment today requires that the organizational leaders have the capacity to make a vision for the organization’s future direction as well as the path it requires achieving that. In simple terms therefore, strategic planning can be understood as the official consideration of an organization’s future course, (Feurer, and Chaharbaghi, 1995). This study will consider a case study of Perisher Blue Resort. The study will involve thinking strategically about this company and reviewing some literature studies related to the case study. The study will also incorporate a SWOT analysis of the case study. Description of Perisher Blue Resort Perisher Blue Resort is the largest skiing resort in Australia and the southern hemisphere in general. It is located in the Australian Snowy Mountains, southeastern corner of New South Wales, in the Snowy River Shire, approximately six hundred kilometers southwest of Sydney, (Grant, 1996). The resort comprises of the Smiggin Holes, Guthega skifields, the Perisher Valley, the Blue Cow Mountain and many lifts. The resort is easy to get to by road and by the skitube, which is Australia’s only underground rack railway. Perisher consists of about forty nine lifts, an eight seater chairlift, two high speed detachable chairlifts and about one thousand two hundred and forty five hectares of skiable area. The ski field is operated as a single resort known as Perisher Blue. Over the recent past, there has been a growing demand for more accommodation on the Perisher resort associated with proposals to enlarge ski slope facilities. As a result, several plans and environmental studies associated with development of the Perisher Blue Resort have been undertaken lately and have been the focus of the Public Commission of Inquiry and approval by the Minister for Urban Affairs and Planning. This Perisher Blue Resorts Master Plan provides direction and a planning framework for future developments within the resort areas, (Sanderson, 1998). The Plan also responds to the Ministerial approval of 1999, requiring preparation of a revised Master Plan for the Perisher resort. Literature Review In order to develop strategies, it is vital to consider what is driving an industry and the forces that will be important in the future. Since the 1960s, strategic planning has had a cyclical popularity with organizations as it gained and lost popularity, basically as a result of its limited success in failing to deliver results and expectations. However, the contemporary changing environment causes uncertainties and brings into notion the suitability of strategic planning and how to deal with doubt. We shall first consider the plan set by Perisher Blue Resort to guide its operations, (Sanderson, 1998). Perisher Blue Resort is guided by a master plan that was developed for approximately seven years to provide a vision for future developments in the site. The vision for future development stipulates that the resort will be the most excellent destination mountain resort in the whole of Australia, giving its visitors international class facilities with regard to ecological sustainable principles. Generally, the resort contains a range of natural features and outstanding scenery. The resort is internationally recognized for its natural heritage. An opportunity exists for the resort to significantly improve its operations and image by ensuring that future growth in infrastructure and bed numbers is managed within a suitable design and planning framework based on the sustainable development principles. The plan recognizes that the resort is to be used during both summer and winter periods, (Schraeder, 2002). It gives emphasis to the need for a close incorporation of the village areas with neighbouring ski slopes. The master plan also assumes that visitors will go on accessing the resort facilities using the skitube, Perisher buses and cars, but expects the skitube to assume greater prominence the major mode of transport to the area. The framework seeks to balance between the natural resource conservation and the demands of resort based recreation. The goal is to offer opportunities for summer and winter visitors to use the resort in ways that are consistent with protecting the unique cultural and natural heritage of the resort facilities. Information Technology Strategic Planning Process Necessary to the success of the information age, society must constantly evolve to accommodate and keep pace with new technological advancements that have the ability of changing the way people learn, work and live, (Pemberton, and Stonehouse, 2000). Today, IT is used in almost all components of the society and as IT is undergoing rapid changes, focused attention must be applied to incorporate innovations in the business industry through the use of computers, (Sanderson, 1998). Business enterprises need a strategic IT plan to direct their future developments. Such a plan will help businesses to address challenges for increased investments in IT, provide technical support for IT, better their response to the rapidly changing IT environment and create tools and software for research as well as administrative processes. If businesses develop good strategic plans, then the threats involved in IT decision making can be minimized, (Feurer, and Chaharbaghi, 1995). However, many organizations are unable to create this vital strategic plan because they lack proper experience and information to strategically plan and use IT. Therefore, IT strategic plans should be developed carefully. Strengths of Perisher Blue Resort Perisher Blue is the biggest ski resort in Australia and provides international class facilities. The resort covers a snowy terrain of approximately one thousand two hundred and fifty hectares across seven mountain tops, which are connected by fifty ski lifts. The combination of Perisher Valley, Blue Cow, Smiggins Holes and Guthega provide an extensive and diverse snowboarding and skiing experience appropriate for all standards. Perisher Valley is set on an enormous land of skiable terrain over mountain peaks, thus the resort offers terrain of a standard and style suitable for everyone both beginners and professionals, (Pemberton, and Stonehouse, 2000). With an extensive range of accommodation standards and styles, cafes, restaurants, pubs and resort facilities combined with other alternative activities, Perisher Blue Resort covers all bases for an enjoyable holiday and especially during the winter season. Resort facilities include police station, pharmacy, ATMs, child minding, mini supermarket, news agency, wide variety of beverage and food outlets, post office and assorted retail outlets. The resort is accessible by road transport and by the skitube, which is Australia’s only underground rack railway, (Grant, 1996). A free shuttle bus functions daily during the day and is sometimes extended for night skiing. The resort also offers free day parking at Perisher Valley, Guthega and Smiggin Holes for day trippers, (Schraeder, 2002). Weaknesses The resort requires a variety of homologated competition race courses with a high degree of snow reliability, both artificial and natural in order to provide the flexibility for planning and conducting competitions under distinct seasonal conditions, (Feurer, and Chaharbaghi, 1995).. The resort should also put in place facilities to cater for the needs of non skiing visitors since the major activity in this area is skiing. Because of the large size of the resort, restaurants and other visitor facilities need to be increased and especially at strategic points in the base areas as well as in ski slope precincts. Opportunities The improvement of the snowmaking technology will greatly improve the reliability of snow cover at the resort, which will be beneficial both for environmental and operational reasons. In the long run, it could also improve the effectiveness of resort use as visitor patterns get used to more reliable or longer snow seasons. Snow fences have been extremely efficient in promoting snow accumulation in sites where this is naturally poor as a result of wind exposure. The placement of more snow fences in strategic places will help in promoting snow accumulation, (Pemberton, and Stonehouse, 2000). Threats The large size of resort will require an expansion of the hospitality services. The infrastructure provided to such facilities such, water supply, sewerage and electricity supply will have environmental impacts within and beyond the site of the resort. Over snow routes do not conflict significantly with skier movements and are vital between the resort centers to provide access. However, future development of the resort to accommodate more visitors will interfere with these routes. Another threat is global warming that has a significant impact to the skiing activities. Competition from other tourism industries that offer skiing activities may also be a potential threat to this resort since it may lead to a reduction in the amount of proceeds received from such activities, (Feurer, and Chaharbaghi, 1995). Recommendations Perisher Blue Resort should first of all consider replacing its outdated facilities with modern ones in order to meet the current expectation of its visitors. It should also enhance the visitor experience by creating an attractive and safe environment in all seasons, both winter and summer. Finally, the resort should consider expanding its current facilities in order to make efficient use of its vast areas and provide skiers of all levels, for learners and professionals, with a range of other opportunities. Strategy formulation flow chart Internal Appraisal Reference: Reference: Feurer, R. and Chaharbaghi, K. 1995, 'Strategy Development: Past, Present And Future', Management Decision, vol. 33, no. 6, pp. 11-21. Grant, R.M. 1996, 'Toward a knowledge-based Theory of the firm', Strategic Management Journal, vol.17, no. Special Winter Issue, pp. 109-122. Hall, R. 1993, 'A Framework Linking Intangible Resources and Capabilities to Sustainable Competitive Advantage', Strategic Management Journal, vol. 14, no. 8, pp. 607-618. Leavy, B. 2003, 'Assessing your strategic alternatives from both a market position and core competence perspective', Strategy & Leadership, vol. 31, no. 6, pp. 29-33. Liebeskind, J.P. 1996, 'Knowledge, Strategy and the Theory of the Firm', Strategic Management Journal,vol. 17, no. Winter Special Issue, pp. 93-107. 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