Advisory Note
Advisory note for Safari Tours and Travel Limited
UNIT: Systems Dynamics and Corporate Strategy
UNIT CODE: HCB 3221
LECTURER: Dr: Fred Mugambi Mwirigi
PRESENTED BY: COLLINS KIPRONO
REGISTRATION NUMBER: 0539/2010
Term paper submitted to the School of Human Resource Development in partial fulfillment of the Degree of Masters of Business Administration in the Jomo Kenyatta University of Agriculture and Technology.
November, 2011
Introduction
Safari Tours and Travel Limited is a medium sized family owned private limited company that was established in 2005. The company is an established player in the international tours and travel industry. The company now has 5 branches with a total employee force of 26.
Two directors are at the helm of the leadership at Safari Tours & Travel Ltd. At the end of the 2011 financial year, the annual turnover stood at Ksh 65M representing just over 20% increase from the previous financial year 2009.
Figure 1: Trend of Annual turnover and Profit for Safari Tours and Travel Limited
At the end of the 2009 financial year, a strategic retreat was held by all the managers and directors to fast-track growth.
The following were the key decisions reached at the strategic retreat:
* The management agreed to double the branch network from the current 3 branches to 6 branches in the next two years * The non-core functions such as cleaning, errands, catering and so on are to be subcontracted. * The company will also open a taxi line in order to tap into its growing customer base who is increasingly demanding cab service as part of the travel package. The management agreed to purchase 10 new vehicles at a cost of Ksh 1M each should they get approval for bank loan to finance this initiative. * There was consensus that the marketing function should be beefed up by increasing personnel as well as the budgetary allocation. * The management team also agreed to reduce
UNIT: Systems Dynamics and Corporate Strategy
UNIT CODE: HCB 3221
LECTURER: Dr: Fred Mugambi Mwirigi
PRESENTED BY: COLLINS KIPRONO
REGISTRATION NUMBER: 0539/2010
Term paper submitted to the School of Human Resource Development in partial fulfillment of the Degree of Masters of Business Administration in the Jomo Kenyatta University of Agriculture and Technology.
November, 2011
Introduction
Safari Tours and Travel Limited is a medium sized family owned private limited company that was established in 2005. The company is an established player in the international tours and travel industry. The company now has 5 branches with a total employee force of 26.
Two directors are at the helm of the leadership at Safari Tours & Travel Ltd. At the end of the 2011 financial year, the annual turnover stood at Ksh 65M representing just over 20% increase from the previous financial year 2009.
Figure 1: Trend of Annual turnover and Profit for Safari Tours and Travel Limited
At the end of the 2009 financial year, a strategic retreat was held by all the managers and directors to fast-track growth.
The following were the key decisions reached at the strategic retreat:
* The management agreed to double the branch network from the current 3 branches to 6 branches in the next two years * The non-core functions such as cleaning, errands, catering and so on are to be subcontracted. * The company will also open a taxi line in order to tap into its growing customer base who is increasingly demanding cab service as part of the travel package. The management agreed to purchase 10 new vehicles at a cost of Ksh 1M each should they get approval for bank loan to finance this initiative. * There was consensus that the marketing function should be beefed up by increasing personnel as well as the budgetary allocation. * The management team also agreed to reduce