STRATEGIC ISSUES IN BUSINESS

Strategic issues in business

Strategic issues in business

Introduction

This paper will focus on the strategic issues in business. Despite of focusing on the topic in general, we will focus on the particular industry. In this paper we will focus on tourism industry. Tourism has been one of the most prominent and high-profile industry to exist on the face of the earth. Travelling, leisure, recreation, all have been significantly associated with tourism since people visits different places, exploring all sites and sounds to satisfy their innate need for adventure and peace at the same time. For this paper, we shall be covering the core concepts of marketing, the impact of marketing and management and the overall impact of the discipline of marketing upon the functioning and running of the tourism industry in today's modern world.

Tourism is defined as travel to a place outside the usual residential environment, involving a stay of at least one night but no more than 1 year, with varying motivations, such as business, pleasure, visits to friends and relatives (VFR), and education. It is one of the world's largest industries. Tourism has long been of interest to geographers, given its spatial, temporal, and activity patterns and given its considerable economic and environmental impacts, ranging from the local to the global. Geographers have been influential in developing conceptual models for explaining tourism development. Some of the most influential models are resort morphology, the tourist-historic city, and the tourist area cycle.

Tourism and recreation have become one of utmost socioeconomic activities of the old continent from the point of view of employment, contribution to GDP, and growth in demand. These activities generate substantial revenue and jobs, promote knowledge of other cultures and leads to the preservation of cultural and natural heritage and investments in infrastructure, resulting benefits, both economic and social, but not everything is positive; some forms of tourism and certain recreational activities can lead to habitat destruction, the deterioration of landscape and a competition for scarce resources and services (freshwater, land, energy, wastewater treatment, etc) (Jennings, 2000: 25-29).

In addition, local populations may suffer as a result of performing such activities, loss of traditions and acquire an excessive dependence on revenue generated by tourism. Tourism is of course a negative impact on the environment, but also on the economy and society. Tourism is now an increasingly serious impact (Ginter, 2002: 55-59). We can distinguish several problems:

Environmental problems

Environmental Problems consists of pollution, deforestation, and disruption of natural environments.

Social Problem

Social problem may include poor, working conditions, insufficient salaries, and irregularities in the use of vital supplies (water, energy), trend folklore, and little respect for local custom.

Economic Problem

Companies face economic problems in terms of tough competition in the service industry. Competition, can be disastrous, it defines illegality in the remuneration of entrepreneurs in tourism.

Issues in Tourism

This year it is estimated that at least 800 million people will travel for international travel, but by 2020 it is expected that 1600 million tourists to move around the ...