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Bespayeva R., doctoral candidate PhD

Karaganda economic university of Kazpotrebsoyuz, Kazakhstan

 

STRATEGIC MANAGEMENT OF THE ENTERPRISE

ACTIVITY IN TOURISM

 

Tourism and recreation, being one of the most profitable complexes, play a significant role in the formation of the gross domestic product, creation of additional employment opportunities, and activation of the foreign trade balance in the global community. International tourism shows a steady upward trend around the world.

Despite the geopolitical problems and slow pace of economic recovery, world’s tourism demand is still high during the peak season (June to August). According to the UNWTO World Tourism Barometer, the number of international tourists (visitors spending the night) traveling across the world in 2014 reached 1,138 million people, that is 51 million more than in the same period in 2013, resulting in 4.7% increase. Thus, international tourism continues to grow significantly exceeding the UNWTO long-term forecast for 2010-2020 (+ 3.8%). In the peak months - June, July and August - which account for about one third of total annual figures, the increase was 4% compared with the same months in 2013. According to the forecasts of UNWTO for 2015, international tourism will grow from 3% to 4%, suggesting an additional contribution to the global economic recovery.

Business acts as an important source of economic development, gives to market economy flexibility, promotes the solution of many economic and social problems: influences the economic growth, saturation of the market goods, creation of additional workplaces. Thanks to business active subjects of business show the abilities to self-realization, generation of constructive ideas, invention that in turn causes continuous improvement of quality of goods and services and level of satisfaction of requirements.

In the age of economic globalization, new information technologies and highly competitive business activity in the field of tourism and recreation managers are required to search for new forms and methods of operating. Similar activities should be based not only on the initiative and intuition of an entrepreneur, but also the achievements of modern science in the theory and practice of management. This means that without introducing effective systems, tools and methods of management, the Kazakhstani organizations will find it increasingly difficult to ensure the viability of their business. Strategic management is one of such systems that was set up to work in the universal dynamism and unpredictability of the business environment.

Entrepreneurial structures operating in the field of tourism and recreation not only have to focus on the internal state of affairs, but also develop a long-term strategy of behavior, which would allow to keep pace with the changes occurring in their external environment. Strategic Management allows looking at the organization as a whole, explaining from the system-wide positions why some firms grow and prosper, while others are experiencing stagnation.

Development of the entrepreneurship in the field of tourism and recreation in the Republic of Kazakhstan is an essential element of the regional economic component. Today, tourism is not just a sphere of travel, leisure and entertainment, but also an intensively developing economic sector of the region as well as of the country.

At the same time, tourist and recreational sphere of the republic is characterized by a high level of risk and low stability in the market. Shortcomings in management are largely caused by poor professional competence of the administration that is reflected in inability to quickly adapt to changes in the external business environment, and others. The elimination of these drawbacks is associated with an increased efficiency of administrative decisions, aided by the use of tools of strategic management. In this regard, the study of the problem of forming an integrated management system based on the use of methods and tools of strategic management and the creation of mechanisms of self-development of tourism organization is of special importance for the theory and practice of tourism management. All these determine the relevance of research topic[1].

Entrepreneurial activity in the field of tourism is primarily related to small and medium-sized businesses and has its own specific features. However, it seems to us, tourist organizations can significantly improve their performance if they adopt strategic management tools.

Small business is characterized by increased mobility and innovation activity, the ability to rapidly adapt to the conditions of dynamic geographically localized markets, engage in various kinds of regional and economic alliances as well as easily adapt to the mesoeconomic environment of the region.

Specific character of small business at the recreational areas is manifested primarily in the prioritized focus on the service sector. Nevertheless, the development of small business in the field of tourism and recreation of the Republic of Kazakhstan requires to use not only powerful healing factor of the region, but also other ways of organizing recreation of virtually all segments of the population - namely, the development of tourist oriented infrastructure[2].

Features of business activity as object of strategic management, consisting in the following:

1) in a deep water of its penetration and complexity of interrelations between its components – in the tourist industry of the organization have to fit into a uniform regional control system where the aim of ensuring long capacity and competitiveness in the market is pursued;

2) in complexity of tourist services. Tourist service is everything that the tourist takes into account or than he uses during travel therefore it consists for the tourist of the whole complex of services.

3) in the form of difficult measurable chains - for management of private business concerns which in the activity are guided by receiving profit, the accurate and measurable purposes — accumulation of values, the movement of cash profit, etc. are characteristic, for management of tourism organizations of such purposes doesn't exist, it is impossible to estimate its productivity and success objectively. It is about probabilistic nature of the processes happening in the tourist industry therefore difficult precisely to predict all phenomena and processes happening in tourism (the political situation changed, climatic conditions sharply worsened, I changed the system of the taxation, etc. (became complicated));

4) in strong influence from the interested clients, so-called stakeholders (the internal - owners, managing directors, workers; in the market - buyers, competitors, suppliers; the external - the state, political troupes, financial structures, trade associations);

5) in specifics of a tourist product - intangibility and not keeping, continuity of production and consumption and its inseparability from a formation source.

Business activity, including and tourist, is directed on production of goods (works, services) and is carried out under the influence of system of economic laws of market economy (supply and demand, the competition, cost, etc.). Great value for development in the country of business have the positive economic situation which is characterized by formation of conditions for formation of the competitive market as environments of existence of businessmen forward implementation of the economic reforms providing possibility of access for businessmen to all types of resources (except forbidden by the law), necessary for development of their activity.

The modern tourist industry is many-sided, many-sided and has difficult structure. The set of the companies and individuals are occupied with rendering of services to tourists. Of their general activity also there is an industry of tourism. The structure of the tourist industry can be presented in the descriptive form so: there is a set of restaurants, museums, historical sights, hotels, hotels, different types of transport, nothing connected among themselves. As soon as the corporation or association of the sphere of tourism interferes with their activity, these elements become suppliers of a tourist product. The association, corporation or simply system of tourism form of these data information for tour operators who, in turn, sell it to travel agencies. And only by means of tourist agencies the consumer receives a ready-made product — permits, rounds, routes, the All inclusive programs and free excursions to the taste, projects of complex rest and fast offers. As to connect all these elements in a uniform chain rather difficult, the sphere of tourist services continues to develop every day. Somewhere relations between specific people are established, new entertaining institutions somewhere open, someone thinks of new impressions for lawful four weeks of holiday in a year. Demand gives rise to the offer.

Travel agencies cooperate with tour operators, bringing them to the wide market of the consumer. It caused activities of travel agencies:

     search of tour operator. The staff of travel agency looks for tour operators on the Internet, bases of information, the announcement and using a personal contact;

     establishment of cooperation with tour operator. The travel agency studies rounds and packages of proposals of tour operator. If they approach under the concept of positioning and activity of the company, the contract on cooperation is signed;

     introduction of rounds of the operator. The tour operator notifies firm on introduction to sale of new rounds and offers, develops packages of services especially for this firm on condition of the developed relations.

Also travel agencies cooperate with consumers from what the following activities follow:

     search of clients. By means of advertizing, personal contact and other marketing receptions of travel agency look for new consumers of the product realized by them;

     maintaining clients. Directly rendering of services, maintaining documentation accompanying tourism, safety and an insurance, questioning and conducting polls about quality of services;

     work with regular customers. Often travel agencies care that the person who addressed to them once, subsequently too addressed for these services to them. It is carried out by means of high-quality execution of work, granting system of discounts and bonuses, cards of the regular customer and so forth. All these receptions promote increase of loyalty at the client.

As well as any other sphere of economy, the industry of hospitality needs a certain structure and integrity which would provide its competitiveness. Enter into structure of the industry of hospitality:

     catering establishments;

     transport services;

     cultural and entertaining services.

Much attention is paid to a question of customer acquisition. It is connected first of all with properties of service as goods. Service is intangible and non-material. Process of its realization depends on its production. For this reason quality of services is in direct dependence on an emotional and psychological state of the consumer, and also work of the personnel.

Various firms of the industry of hospitality can't use traditional strategy or methods of advance of services concerning consumers as toughening of the competition results in need of development of new programs and generation of ideas on attraction and deduction of clients.

Now there is a certain marketing concept of management of tourist business. The essence of this frame of reference consists in the concept "industry of hospitality" which is wider, than the concept "industry of tourism". The concept "hospitality", i.e. generosity and friendliness in relation to guests is the cornerstone of these two fields of activity. Hospitality means hospitality in relation to guests, or courtesy of guests. In other words, this concept can be explained as production of services with manifestation of personal attention in relation to the tourist and ability to feel his wishes and requirements. The industry of hospitality also consists in providing to the tourist as potential consumer, homeliness and to create that situation which would meet all inquiries and the requirements of the client.

So, the industry of hospitality — this concept including services in customer service. Within this marketing concept the majority of firms is engaged in development of programs for drawing attention of clients. It can be carried out in two ways – by price differentiation and on system of natural remuneration of clients.

It is necessary to specify the features of the development of entrepreneurship in the field of tourism and recreation, which include the following:

     Orientating activities to meet the demand in the tourist and recreational services within the inter-regional division of labor and characterized by a dominant of the service sector, as well as a variety of social, fiscal, environmental and other problems, an effective solution of  which is largely associated with the activation of the most promising areas of small business;

     Being identified by priority of activity in the field of tourism and recreational services; high degree of dependence on the situation on the inter-regional markets, channels and ways of promotion of their products and services; mediation institute, as well as the regulatory efforts of state and regional structures; ecological and economic situation in the region; macroeconomic environment as a whole;

     Basing on specific general economic conditions (branch structure, the concentration of labor, material, technical and financial resources, the flow of holidaymakers, forming a sufficiently large-scale and relatively stable demand for goods and services of enterprises, massive state support, etc.), and not only contributing to the establishment of business at the recreational areas, but at the same time having a limiting impact on it;

     Relying not only on the basis of formation of productive and technological factors and conditions, but also on a set of organizational and institutional arrangements related to the implementation of the principle of comparative advantage, specification of the resources set, their hierarchy in the economic activity.

Thus, entrepreneurship in tourism and recreation concludes in the specific character of the goods and services that are manifested at all phases of the reproductive process and have the incentive to develop a wide variety of areas and activities of the regional economy, as well as beyond it. This gives reason to believe that recreational industry has the necessary potential for increasing the regional domestic product and achieving high rates of economic growth to a greater extent than any other sector.

 

                                                  References:

 

1. Kamilova Z.M., Marutkin E.A. Program and target approach as the instrument of strategic development of enterprise structures in the tourist and recreational sphere // Scientific notes of the Russian academy of business. 2009.

2. Tourism management // Tourism as object of management: textbook. –M.: Finance and statistics. 2002, p. 90.



[1] Kamilova Z.M., Marutkin E.A. Program and target approach as the instrument of strategic development of enterprise structures in the tourist and recreational sphere // Scientific notes of the Russian academy of business. 2009.

[2] Tourism management // Tourism as object of management: textbook. –M.: Finance and statistics. 2002, p. 90.