Case Study - Putting Up a Travel Agency

4387 WordsSep 24, 201018 Pages
BUSINESS: Travel Agency The group agreed on setting a Travel Agency business for the following reasons: 1. It is related to our course BS Tourism 2. We acquired knowledge in Travel Agency Management & Operations in the previous semester. INTERNAL FACTORS AFFECTING DECISION MAKING A. THE CURRENT MARKET Setting up as a travel agent shouldn’t be confused with being a tour operator. The difference is that the former sells the holidays while the latter organizes them. It’s possible to set up as an independent tour operator but there is a lot of competition for big firms that have the buying power to keep prices lower. This isn’t to say travel agents are any less competitive but most are doing good business at the moment and…show more content…
Where there is not enough money, no good workers, materials, or machines can be employed or purchased or acquired. In other words, such a venture will be wasting its time existing in the first place.[2] EXTERNAL FACTORS AFFECTING DECISION MAKING There are many factors that affect the Company's business and the results of its operations, some of which are beyond the control of the Company. The following is a description of some of the important factors that may cause the actual results of the Company's operations in future periods to differ materially from those currently expected or desired. A. MACRO FACTORS · Political · Environmental · Socio-cultural · Technological · Ecological · Legal B. MICROFACTORS · GENERAL ECONOMIC AND INDUSTRY CONDITIONS Any general economic, business or industry conditions that cause customers or potential customers to reduce or delay their investments in the jeans industry could have a negative effect on the Company's strength and profitability. For example, a softening of demand for jeans ware may result in decreased revenues (or at least declining revenue growth rates) for jeans manufacturers in general and the Company in particular and may result in pricing pressures for products that the Company sells. · COMPETITION The travel industry is highly competitive. The intense competition inherent in the industry could result
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