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Executive Summary Myanmar sits at the crossroads of Asias great civilizations of India and China, and looks out

onto the vast Indian Ocean next to Thailand. One of South East Asias largest and most diverse countries, Myanmar stretches from the sparkling islands of the Andaman Sea in the south right up into the Eastern Himalayan mountain range. Myanmar, a republic in South-East Asia, bounded on the north by Tibet Autonomous Region of China; on the east by China, Laos, and Thailand; on the south by the Andaman Sea and the Bay of Bengal; and on the west by the Bay of Bengal, Bangladesh, and India. Tourism in Myanmar is slowly developing but also great tourist potential and attractions. Padauk Travel is a newly reorganized organization, in the tourism services sector. Our organization will provided excellent services with reasonable price to every customer desire. Our slogan is enjoyable trip with reasonable price. Our Padauk Travel agency aims to provide excellent quality services to our valuable various types of customers to fully satisfying of Padauk Travel need with one stop services. We can promise our customer to have enjoyable journey with reasonable price and full of quality services. We aim, well known agency in Myanmar and internationally during next 5 years. During first year, we focus on inbound and domestic. Later future, fully services of tourism sector including outbound services. Introduction Padauk Travel Agency was founded in 1996, which was the Visit Myanmar Year. It is located in heart of Yangon and already well known as a travel sector of medium size local company. Padauk Travel agency provided Inbound and domestic tour in the country. Since the company started, it did pretty well and generated profits since the third year from the beginning until the growth has declined by unstable political condition, lack of human resource and due to the shortage of well experience staffs. The Agency was being offered to merge with Virgin Group Ltd., a British multinational branded venture capital conglomerate founded by business tycoon Richard Branson by fully management authorities. After the merger, BOD was assigned me as the CEO for rearranging organization structure, line of command, allocating responsibilities and marketing plan and Human Resource issues with well suited to organization. Mission Our slogan enjoyable trip with reasonable price which is reflecting our mission; to provide the excellent quality services to the customers as we believe good service is more than
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anything. We provide you and your organization in various types of travel packages, intending to create your enjoyable and memorable trips with our skillful staffs. Objective We aim to provide various types of excellent quality services to customers. What we can promise our customer to have enjoyable journey with reasonable price and full of quality services. Vision To become the well known agency in the Myanmar and Internationally during next 5 years. Goals -To increase sale revenue 30% by next 5 year -Strategic cooperation alliance with others services providers nationally and internationally. -Focusing on domestic and inbound tours during the reconstruction period and to expand the market into regional countries within a few years. -To be well known in Myanmar and International travel sector within 5 years.

CEO

General Manager

HR/Admin Manager

Finance Manager

Operation and PR Manager

Sale and Marketing

HR staff

Admin Staff

Finance Staff

Operation Staff

Public Relation Staff

sale and marketing staff

Figure 1. Old Organization Chart


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CEO

Legal Advisor

External Auditor

Director

Finance & Administration

Marketing & Business development

Inbound Division

Outbound Division

Domestic Division

Flight Division

I.T Division

Complaint

HR & Admin

Account & Finance

Myanmar

Oversea

Sales Dept

Sales Dept

Sales Dept

International Sales

South-east Asia

Operation Dept

Operation Dept

Operation Dept

Domestic Sales

SEA 2

Transport Dept

Corporate Travel Dept

Product Developement

Airlines Contracting

SEA3

Product Development

Product Developement

Post Sales

SEA4

Tour escort

Visa Dept

SEA5

Post Sales

Post Sales

Figure 2. New Organization Chart


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Organization Structure According to the current organization structure, CEO will make major decisions and monitoring all activities through by director and line managers. All of the managers are under the supervision of director and ground staffs are the extension of the departments manager. However, in engaging this organization objective and goals, we intend to ensure that there is open minded communication between all levels the staffs for job satisfaction, full staffs potential. Work Specialization Work specialization is the essential key element for the organization and divided specific tasks into each of the department. Every employees perform the relevant task to assign will lead organization as effective and efficient. In organization, was divided into four major departments of Human Resource and Administration, Finance, Operation and Public Relation, Sale and Marketing. CEO and General Manager are top level management of the hierarchy and department managers are middle level of the hierarchy. CEO is the highest authority and decision of every task. General Manager was assisting the CEO and maintains the task of every department. Responsibilities of HR/Admin department is recruiting new staffs, providing training, rules and regulations and related Human Resources and Administrative issues. Finance Manager is responsible for financial activities of the organization. Operation and Public relation manager is responsible for handle travels destination, customer complaints, transportation and other supports of the customer desire and need. Sale and Marketing department is accountable to advertising, sale ticket, customer follow-up and new customer persuasion. Centralization and Decentralization Very first year, our agency is a really small and vertical organization structure and relate as top to down communication style of centralization and it will be involve less flexibility for the employee but it can lead to the team, result as effective and efficient. We will change to Horizontal organization structure and 360 degree communication of decentralization when all of our staffs are fully experience and well operate their jobs as expert. Our new structure, staffs and innovative ideas will keep the organization ahead of the competitive market. But the horizontal management style also known as decentralized structure leads to an uncontrollable situation to the top level management. Thus, top level management and all of the staff manager will be meet once a week for every progress and problem.
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Span of Control According to the current organization structure, we have narrow span of control which consist of 5 layers. CEO has the highest authorities and closely controls the General Manager, Line Managers and staffs. Line Manager has to report to CEO and supervises the subordinate. According to the previous experience of our organization, spam of our organizational control is used as very simple form Because of, if the chain of command becomes as too complex will be lead effective management to be weaken. Control We intend to make sure that each employee understands the goals, mission and vision of our agency, is customer focused, proud of their work and cooperative as a team. This will encourage our staffs to become entrepreneurial and responsible, in additional to unify staffs in customer focus and values. Effective communication in the organization is important for operate efficiently their work. Important notices and developments will be continuously communicated to staffs so as to keep them over see of developments and promoting sense of belonging and unity in the organization. We will encourage to our staffs to put forward any suggesting they might have regarding the improvement of any or the organizations functions as open door policy. Such a culture will enhance their innovative idea and creativity in turn leading to the job satisfaction and enrichment. We undertake to continuously formalize and measure cross-functional working communication so as to ensure that the various departments work harmoniously towards attainment of organizational objectives. For organizational control, engage independent third parties also known as mystery customer, to use the tour services of the travel agent as customers and require them to report their observations to the management.

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Situational analysis of Our Padauk Travel agency (SWOT analysis)

SWOT Analysis
Strength -Well experience employees -good services to customer -competitive pricing -Highly trained and very customer paying special attention Weakness -Lack of skill-full guides -Dissatisfaction of customers Opportunity Threats -lack of human resource -lack of infrastructure -some restriction to selected region -competitive form other destination

-Attractive new traveler, according to government policy


-strengthening ecotourism -development of new tourisms interest

Leadership and Today Organization Management is getting things done by the support of peoples and other resources and the process of leading and directing all or part of the organization. Peter Drucker says Leadership is lifting a persons vision to high sights, the raising of a persons performance to a higher standard, the building of a personality beyond its normal limitations. 1 Today organization, leader need to the skills of strategic thinking, collaboration, emotional intelligent, critical thinking, motivation, communication, Feedback, Tough Conversations, Coaching and Making Values Visible and Viral.2 (http://www.poynter.org/how-tos/leadershipmanagement/what-great-bosses-know/196814/10-key-skills-todays-leaders-need-to-succeedin-2013/) access on 3rd June 2013. A leader steps up in times of crisis, and is able to think and act creatively in difficult situations. Unlike management, leadership cannot be taught, although it may be learned and enhanced through coaching or mentoring.

http://www.forbes.com/sites/kevinkruse/2012/10/16/quotes-on-leadership/

(http://www.poynter.org/how-tos/leadership-management/what-great-bossesknow/196814/10-key-skills-todays-leaders-need-to-succeed-in-2013/) access on 3rd June 2013.


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Good leadership automatically attracts people and motivates those who talented workers to put their talents to work on meeting the goals and part of an important function of management which helps to maximize of the efficiency and effective way of achieve of the organization goals. Good leadership is not only for top level management but also at the bottom level. In today organization, both skills of management and leadership lead organization to the success. Absent of leadership and management skill can be decline in the markets. Effective leadership and management skills lead to market follower to leader. For example, Samsung is a formidable foe for Apple and latest financial report suggests that Apple is falling behind fast. This example demonstrates the importance of effective leadership. A leader needs the support of his subordinates to perform work, and should motivate them to believe that a task can be achieved. This can be achieved if the leader is skilled in strategic planning, innovation and decision-making. Today, customer needs and wants are changing fast all over the world. In the absence of leadership, an organization can become decline and unable to compete with its competitors. (Kelly, 2006) *Case media Copyright 2006, by The McGraw-Hill Companies Inc. All rights reserved. - Case study Dr Phil Kelly 2009] A good leader had planning skills for daily, weekly and monthly and monitoring process of the markets. Effective leader can allocate the employees by skills and that is also important for success organization. Because, miss allocate can be lead to the organizational failure to market failure. Market Segmentation, Targeting and Positioning We intend to services to customer can be described four major types of segment such as price, couple and purpose of travel and destination. Price is one of the most important roles for determining the market segmentation. Most of the customers choose expensive tour because they want to expect luxury hotel and advance services. Some of the customer choice budget, they will choose the lowest price and forgo extra frills. Another segment for couple who freshly married, we can arrange their honeymoon to quiet and peaceful place such as beach or destination they want. There are two main purposes of travel as leisure and business. For leisure segment, it would integrate the activities of tourist attraction and sightseeing in our tour. In addition, their aim is to follow the customer to enjoy their holiday and transportation will be business travelers in mind. For travel destination, we arrange package tour with flexible price with several destinations or where they want to choose. But many potential customers are not sure to the location they wish to reach.

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Our marketings strategy will be based mainly on offering the right services to the right target customer. Our intention will target the customers who individuals and group looking for a leisure activities and place want to visit. Our travel agency target not only local peoples but also tourists who want to visit our country. For political changes in Myanmar, tourism sector has undergone rapid growth increase to over one million in Year of 2012. Thus, we intend to tourist attraction of our beautiful country. After 5 year, our travel agency will be market leader of both the local market and internationally. Our travel agency will reinvest 50% of profit to the new extend services and travel programs. Now we will upgrade our face to face services and 24 x 7 services by online and we will arrange inbound and outbound services. Travel sector is very competitive to the market so we need some of creative thinking, pricing and services are most important factor of the organization. We think it is not successful alone by our organization only, we need to cooperation with other agencies, transportation companies lead to be the successful travel agency of country and regionally. Marketing Mix Marketing is all over the place formal or informal and people and organizations interest or attract a large number of activities that we should define marketing. Marketing is one of the most important parts in every business. If the marketing is not good, the target goal cannot be reached so we must do marketing watchfully. Good marketing is increasingly ingredient to become business success. We can define marketing as the mixture of controllable marketing variables that the firm uses to pursue the sought level of sales in the target market (Kotler, 1984:68). The main concept describes that a number of variables to do levering or controlling that can be controlled by the marketing manager to reach a defined goal. Marketing managers are always driving their products or services towards selected destinations. The important four controls are Product formulation, Pricing, Promotion and Place. Our company is Travel and Tour Company so we can give good services to the customers. As our company gives services, we should use Seven Ps instead of Four Ps. The other Three Ps is People, Processes and Physical Evidence. The Product formulation is adjusting the product for changing the needs of the targeting customers; Pricing is just like as throttle by increasing or slowing down the amount of sales according to the market conditions; Promotion is useful for increasing the number of sales of the products in the market and the customers are aware of these products; Place can define as the large amount of prospective customers who are always to find the suitable places and the ways to get information and converting their buying purpose into purchase. Kotler restated the Ps as Cs to reflect the consumer orientation that is central to modern services marketing thinking in growing competition (Kotler and Armstrong, 1999: 111 cited in @@@@@).

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Product means customer value to meet the customer needs and wants and the quality of services and the value for money of the products. The characteristics of this product as considered by the decisions of the strategic management in addition to the knowledge of the marketing managers of the consumer wants, needs and benefits sought. For Travel and Tour, the components of the product include: (1)The components of the basic design that are putting together to offer to the customers. For example, we can market a short-break package by the hotel group.(2) The service element contains numbers, attitudes, training and attitudes of all the staff connect to deliver the product to the consumer. For example, we can give good services such as to deliver the airline ticket to the customer house (door to door system) and others. In current marketing, most organizations market not in one product but numerous products to match the several segments requirements. Our company has a large number of products according to brochures and large hotels also have a variety of services such as conferences, business meetings, activity holidays, short brake packages, etc., Price can define as the cost to the consumer. In tourism, there is a regularly price for a product and give one or more discounted or promotional prices and others. Promotional prices react to the requirements of market segments or to counter the effects of seasonality. For example, the package of our company is always regular price but sometime we will give promotion according to the season. Most of the people can define the promotion as communication. Promotion is the most visible of the 4 Ps and it includes many factors such as advertising the products, direct mailing to the customers, sales promotion, merchandising, sales force activities, brochure production, internet communication and PR activity. Promotional techniques are used to make customers aware of the products, stimulate demand and offer incentives to purchase, either direct from a producer or through a variety of channel of distribution. It is very important for every business to understand the relationship between Promotion and the other 3 Ps in the marketing process. For example, we can direct mailing to the customers, we can advertise on internet, radio, television and journals, sales promotion such as one for one free system and others. For marketing, place is not defined as the location of a tourist attraction or facility. It means the location where the customers can bring back a menu as a souvenir of the trip. For example, we can buy the products of the Disney World in the USA is not only in Orlando but also in Florida. The above technique is not relevant for our company. We make direct contact with customer by putting our products on internet and sel ling directly. So, we dont need to have any branches in other towns and countries. Convenience of place for a self-catering operator, there are many good services such as direct mailing to the homes of buyers and using free phone numbers and computerized reservation or booking system.

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I think the extra 3 Ps framework is useful because our company give service to customers. We define high contact service for the people component, extended and complex service for the process component and the consumer that can evaluate a service as they experience the delivery for the physical evidence component. For people, we pick individual who have good qualifications, two years experience, good personality, good looking, age between 20 and 30 and great communicating with people. After selecting, we train our employees. Training helps employees how to carry out their jobs and get better their performance. Training offers employees to improve their knowledge, skills and attitudes for the short-term. For example employee orientation, skills and technical training, coaching and counseling. Process is very essential in travel & tourism product experience. The benefits of good customer relations are very intangible. So, we try to give a sense of well-being, mental and physical recuperation and development of personal internet such as culture to customers. For instance, arrival at the airport at the specified time can reduce worries of the customers and get belief from them. For Physical evidence, we contract with five stars hotels, car rental service, taxis, bars, cafs, restaurants and others. In hotel compartment, we link with hotels that can give good service, first class rooms and every nation meal. In car rental service, we connect with Car Company which has many types of luxurious cars. Human Resources Management According to the researches, we can see the turnover rate in the previous organization was very high. But we cannot say that every employee who leaves the company is unsatisfied. We noticed that some people retire, leave the town, quit because of family circumstances, and desire to change professions, or even start a business of their own. However being unhappy is not the only reason why people leave one employer for another. If they have skills in demand, they may be persuaded by higher pay, better benefits, or better potential. We cannot control with the other company, how much they pay, or which benefits they offer. So it is important to know the difference between the employee who leaves because they are unhappy and those who leaves for the other reasons. The main reasons that cause a high turnover in the organization are the amount of salary, unequal or substandard wage structures, the lack of employee benefits, dissatisfaction with supervision, lack of opportunity for advancement, poor management, poor working conditions, lack of recognition and a bad match between the employee's skills and the job. Amount of salary
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According to our researches, the rivals of travel and tour industry are willing to pay significantly higher amount of salary than us. We have to make sure that our pay rate is competitive and in line with industry averages. More important thing is unequal pay structure can drive some employee to quit. Again, a new worker might think why the person next to him or her is receiving a significantly higher wage for what is seemed to be the same work. Not only to avoid this kind of problems but also to make sure to comply with legal requirement we need to have a wage and job evaluation system. Employee Benefits The previous organization was less focused on employee benefits. They do not have overtime payment, other bonuses and transportation. Moreover, we should arrange some company picnics, consolation for a death in the family, recognition for a special occasion such as birthdays and planning long trips as we have long gazette holidays such as Thingyan. The best thing is to establish an education fund for the outstanding employees. We can give them English training which is necessity for todays communication. We can also make some other training for the career development .That can make our employees motivated and can make them happy at our organization. The more that people are motivated to be successful and achieve the goals set for them, the more their confidence in their own abilities will grow as well, which can, in turn make them even more motivated. Motivation skills 2010 MTD Training & Ventus Publishing ApS ISBN 978-87-7681-708-4 Lack of opportunity for advancement If the job is basically a dead-end position, this should be explained before hiring. Otherwise this can mislead the employee. Workers who feel they have reached their career prospect may no longer incentive to stay at the same job. They think they have more opportunity for their career advancement in the new working environment. This is unavoidable and we need to make proper job analysis when we are recruiting new staffs. Dissatisfaction with supervision Poor Management occurs when the poorly trained managers and supervisors failed to manage the employees properly. The main reasons could be technical incompetence, unrealistic expectations from the workforce, failure to communicate effectively, and importantly; the lack of conflict resolution skills. We should pay more attention to the employees how they are interacting with managers. And we need to provide proper management training to the managers and supervisors to make them understand how to properly motivate, interact and to retain workers. One thing that hasnt changed from the past is the key role that managers play in communicating with others. In fact, they have to be even better at communicating than ever Eric Garner (2012) Delectation and Empowerment: Giving
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people the chance to excel, 2012 Eric Garner & Ventus publishing ApS, ISBN 978-87-7681987-3

Poor working condition Poor working condition also cause the high turnover rate. Though the condition of the travel agency office is not so unsafe and hazardous, some conditions such as room temperature, noise pollution of the working environment, poor ventilation system of the office room and the short of tools and stationeries could lead the employees to aggressive condition and may cause the problem with the clients or between the workers due to short temper. We believe creating the pleasant and peaceful working environment can attract the employee not to leave the work. For example, due to global warming and the electricity shortage problem in our country, many employees prefer to stay at the air-conditioned offices rather than the others. Lack of recognition Some employee left the job as they did not feel they are recognized for their contributions. This is different from the lack of opportunity for advancement. Empowering and recognizing for their contributions make them feel like they are important in the environment. And it inspires all of the employees, not only the one who is being rewarded. The easiest example is awarding employee of the month. It does not mean to give that employee more salary (money). Just to praise them with a bundle of interesting gifts what he or she might like. And we should find a great workplace display or trophy so other employees and customers will notice and offer their own congratulations. The most important thing is not to give cash, when it comes to recognition award. A bad match between the employee's skills and the job In some cases, employees become discourage and quit because they feel that they are placed in jobs which are too difficult for them. Inaccurate recruiting may bring such kind of problems as the recruiting person did not study carefully for the required skills of a specific job. And inadequate information about skills requirements that are needed for a specified job may result in hiring either under-skilled or overqualified workers. Using job analysis and job description can minimize the chance of this happening.

Bibliography
Kelly, D. P. (2006). Case Study. The McGraw Hill Companies Inc.

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