Harvard Case - Historic Lund Resort at Kla ah men: Building Sales and Hiring Appropriate Management
"Historic Lund Resort at Kla ah men: Building Sales and Hiring Appropriate Management" Harvard business case study is written by Elizabeth Bowker. It deals with the challenges in the field of Strategy. The case study is 11 page(s) long and it was first published on : Jan 25, 2022
At Fern Fort University, we recommend a multi-pronged approach for Historic Lund Resort at Kla ah men to achieve sustainable growth and attract the right management team. This strategy incorporates a combination of marketing, operational, and organizational changes to leverage the resort's unique heritage and enhance its appeal to a broader audience.
2. Background
The Historic Lund Resort at Kla ah men, a family-owned and operated business, faces challenges in attracting new customers and retaining existing ones. The resort's unique historical significance and natural beauty are underutilized, and the current management team lacks experience in marketing and operations. The resort needs to develop a sustainable competitive advantage to thrive in the increasingly competitive tourism industry.
The main protagonists of the case study are:
- The Lund family: Owners of the resort, deeply invested in its legacy but struggling to adapt to changing market demands.
- Current management team: Lacking expertise in marketing, operations, and financial management.
- Potential investors: Seeking a return on investment and a sustainable business model.
3. Analysis of the Case Study
SWOT Analysis:
Strengths:
- Unique historical significance: A strong differentiator in the tourism market.
- Natural beauty: Offers a tranquil and attractive setting for guests.
- Family-owned and operated: Provides a personalized and authentic experience.
- Potential for expansion: Can leverage existing assets for new offerings.
Weaknesses:
- Outdated marketing strategies: Limited online presence and lack of targeted marketing campaigns.
- Limited operational efficiency: Inefficient use of resources and lack of modern technology.
- Lack of professional management: Limited experience in marketing, finance, and operations.
- Limited financial resources: Restricting investment in new initiatives.
Opportunities:
- Growing tourism industry: Increasing demand for unique and authentic travel experiences.
- Emerging markets: Expanding reach to new demographics and international markets.
- Digital marketing: Leveraging online platforms to reach a wider audience.
- Partnerships: Collaborating with local businesses and tourism organizations.
Threats:
- Competition from larger resorts: Offering similar amenities and experiences.
- Economic downturns: Impacting travel spending and demand.
- Environmental concerns: Potential impact on natural resources and tourism.
- Technological advancements: Disrupting the tourism industry with new offerings.
Porter's Five Forces:
- Threat of new entrants: Moderate due to high initial investment and regulatory requirements.
- Bargaining power of buyers: Moderate due to limited options in the area, but high for online booking platforms.
- Threat of substitutes: Moderate due to alternative destinations and activities.
- Bargaining power of suppliers: Low due to abundant local resources and services.
- Rivalry among existing competitors: Moderate due to limited competition in the immediate area but high from larger resorts.
Value Chain Analysis:
The resort's value chain needs to be optimized to enhance efficiency and customer experience. This includes:
- Inbound logistics: Improving supply chain management and sourcing local products.
- Operations: Streamlining operations, implementing technology for booking and guest management, and improving staff training.
- Outbound logistics: Ensuring timely and efficient delivery of services and experiences.
- Marketing and sales: Developing a comprehensive marketing strategy, utilizing digital platforms, and targeting specific market segments.
- Service: Providing personalized and memorable experiences for guests.
Business Model Innovation:
The resort needs to adopt a business model innovation approach to address its challenges. This could include:
- Developing a unique value proposition: Highlighting the historical significance and natural beauty of the resort, offering specialized experiences, and fostering a sense of community.
- Expanding product and service offerings: Adding new activities, amenities, and packages to attract a wider audience.
- Leveraging technology: Implementing online booking systems, digital marketing campaigns, and guest management tools.
- Building strategic alliances: Partnering with local businesses, tourism organizations, and travel agencies.
4. Recommendations
Marketing and Sales:
- Develop a comprehensive marketing strategy: Target specific market segments, utilize digital marketing platforms, and leverage social media to reach a wider audience.
- Create a strong online presence: Develop a user-friendly website, optimize for search engines, and utilize online booking platforms.
- Offer unique experiences: Highlight the historical significance and natural beauty of the resort, provide specialized tours and activities, and promote local culture and heritage.
- Implement a loyalty program: Reward repeat customers and encourage referrals.
Operations:
- Streamline operations: Implement efficient booking and guest management systems, optimize staffing levels, and improve resource utilization.
- Invest in technology: Upgrade infrastructure, implement online booking systems, and utilize digital tools for guest communication and service delivery.
- Enhance guest experience: Provide personalized services, offer unique amenities, and create a welcoming and memorable atmosphere.
- Focus on sustainability: Implement environmentally friendly practices and promote responsible tourism.
Management:
- Recruit experienced management: Hire individuals with expertise in marketing, finance, and operations.
- Develop leadership skills: Provide training and development opportunities for current staff to enhance their management capabilities.
- Implement a performance management system: Set clear goals, monitor progress, and provide feedback to improve performance.
- Foster a culture of innovation: Encourage creativity and collaboration to develop new ideas and solutions.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core competencies and consistency with mission: The recommendations align with the resort's unique historical significance and natural beauty, emphasizing its heritage and authenticity.
- External customers and internal clients: The recommendations focus on attracting new customers, enhancing guest experience, and motivating staff.
- Competitors: The recommendations differentiate the resort from its competitors by leveraging its unique strengths and offering personalized experiences.
- Attractiveness: The recommendations are expected to increase revenue, improve profitability, and enhance the resort's long-term sustainability.
Assumptions:
- The Lund family is committed to the resort's success and willing to invest in necessary changes.
- The resort has the financial resources to implement the recommendations.
- The tourism industry will continue to grow and offer opportunities for expansion.
- The resort can attract and retain experienced management personnel.
6. Conclusion
By implementing these recommendations, Historic Lund Resort at Kla ah men can achieve sustainable growth, attract a wider audience, and secure its future. The combination of marketing, operational, and organizational changes will leverage the resort's unique strengths, enhance its appeal to a broader market, and create a strong foundation for future success.
7. Discussion
Alternatives:
- Selling the resort: This option would provide immediate financial relief but would result in the loss of family ownership and potentially the resort's unique character.
- Continuing with the current approach: This option would likely lead to further decline in sales and profitability, making it unsustainable in the long term.
- Focusing solely on marketing: While important, a marketing-only approach would not address the operational and management challenges.
Risks:
- Competition: Larger resorts may offer similar experiences at lower prices.
- Economic downturn: Travel spending may decline, impacting demand.
- Environmental concerns: Potential impact on natural resources and tourism.
- Implementation challenges: Resistance to change, lack of resources, or insufficient expertise.
Key Assumptions:
- The Lund family is committed to the resort's success and willing to invest in necessary changes.
- The resort has the financial resources to implement the recommendations.
- The tourism industry will continue to grow and offer opportunities for expansion.
- The resort can attract and retain experienced management personnel.
8. Next Steps
- Develop a detailed implementation plan: Outline specific actions, timelines, and resource requirements.
- Secure funding: Explore financing options and secure necessary investments.
- Recruit and hire management: Identify and recruit qualified candidates with relevant experience.
- Implement marketing and sales initiatives: Launch digital marketing campaigns, develop a new website, and offer unique experiences.
- Streamline operations: Implement efficient booking and guest management systems, optimize staffing levels, and improve resource utilization.
- Monitor progress and make adjustments: Track key metrics, analyze performance, and make necessary adjustments to the plan.
By taking these steps, Historic Lund Resort at Kla ah men can embark on a path of sustainable growth and secure its place as a thriving destination for future generations.
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Case Description
The historic Lund Resort at Kla ah men (the Resort) was wholly owned by the Tla'amin Nation and operated by Tla'amin Management Services LP (TMS). The Tla'amin Final Agreement had been in effect since April 2016, making the Tla'amin Nation self-governing over its land, resources, and members. The Resort, on British Columbia (BC)'s Sunshine Coast, featured thirty-one renovated guest rooms that ranged from budget-friendly units to luxury ocean-front suites. In addition to hiring a new general manager, the Resort needed to increase bookings in the shoulder season and stabilize staffing. By 2018, the Resort had had six general managers in two years and needed a highly experienced professional to fill the position. TMS hoped to retain this person for at least three years. The new manager would need to be a good fit in terms of Tla'amin culture and values; given the complex reporting structure, they would need to be adaptive and willing to work with multiple people within the Tla'amin leadership, including the TMS board of directors and the Tla'amin operating board. While it would have been best to hire a manager with experience working with Indigenous communities, the TMS had determined that this was not feasible and that it was best to hire someone who was experienced and open to learning about Tla'amin culture and values.
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