AM807001 Entrepreneurship And Innovation

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AM807001 Entrepreneurship And Innovation

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AM807001 Entrepreneurship And Innovation

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Course Code: AM807001
University: Otago Polytechnic

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Country: New Zealand

Question:

1. Critically assess entrepreneurial opportunities in both new and established businesses including Maori entrepreneur or Iwi/Maori innovative enterprises.
2. Critically analyse the innovation process in a variety of applied contexts.
3. Explore frameworks, strategies, organisational models, funding options, risks and barriers facing the entrepreneur in order to maximise the probability of success.
4. Apply analytical tools that can assist structuring information for decision-making about innovation to manage risk.
5. Articulate core management challenges as they impact on the implementation and management of organisational strategies.

Answer:

Introduction
Entrepreneurship can be stated as a procedure to design, launch as well as run a newer business, mostly smaller business. The individuals, who are responsible for creating these businesses are termed as entrepreneurs (Drucker, 2014). This type of invention beings subsequent commercially viable innovation within the business. This proper launching and running of businesses are then focused by entrepreneurs and there are few major and the most significant risks that are extremely vulnerable for these businesses.
The following report outlines a brief discussion about a popular tourism organization in New Zealand, namely Ngai Tahu Tourism. This Maori tourism businesses has eventually incremented within the last few years and hence variety and quality is being incremented. Ngai Tahu Tourism is a Maori organization in Aotearoa that has over 1 million customers in 14 businesses. This report covers business analysis, market analysis and several strategies of the selected organization.
Discussion
1. Business Analysis
Business analysis is a practice to enable significant changes within Ngai Tahu Tourism organization (Ngai Tourism.co.nz. 2018). This is majorly done by proper definition or recommendation of solutions, which could easily deliver values to their respective stakeholders. There is a specific collection of techniques and tools, which are extremely helpful for any business to perform detailed business analysis. These business problems are hence determined with business analysis. Such solutions include software system development components, improvement procedure, organizational changes or strategy planning and proper development of policies (Scarborough, 2016). Moreover, the business requirements of IT system support with correct documentation standards are also identified with business analysis.
PESTEL Analysis
Two most effective and important marketing strategies that could be useful for this organization of Ngai Tahu Tourism for eradicating their issues of business are PESTEL analysis and SWOT Analysis. The most significant and important issues faced by this particular organization in recent days are communication and engagement, taxation and travel marketing (Kuratko, 2016). Ng?i Tahu tourism is facing these issues for the lack of proper business or market analysis. PESTEL analysis refers to a tool that is being utilized for the proper identification of macro or external forces, faced by any company.
The factors of PESTEL analysis are Political, Economic, Social, Technological, Environmental and Legal. Since, Ngai Tahu Tourism could be easily analysed with any strategy or tactical plan, there should be some of the major changes within macro environment. They could easily monitor and respond to several changes and could even differentiate from competitions and thus creating competitive advantages (Hitt & Duane Ireland, 2017). This specific organization of Ngai Tahu Tourism is facing the issues of taxation, communication and engagement and finally travel marketing. Hence, each and every factor of PESTEL analysis is not applicable to them. Five factors are applicable to this case study. These are provided below:
i) Political Factor: This is the first factor that describes about country’s politics in any organization. Since, Ngai Tahu Tourism is a Maori company, political background of New Zealand plays a major role for their business. As per NZ tourism policy, the prosperity of this country is dependent on tourism industry and opportunities are expanded as well as conditions are improved for overseas market. In Ngai Tahu Tourism, the values are measured for their near term growth of long term sustainability. The foreign trade policy, trade restrictions and labour law are included here and hence the attractiveness of potential market is being enhanced. Due to the presence of these above mentioned laws, the business has obtained opportunities and became successful.
 
ii) Economic Factor: The second factor of PESTEL analysis applicable to the tourism industry of New Zealandis economic factor. The Gross Domestic Product of this country worth around 160 billion US dollars; however since recently GDP has fallen there had been a degradation in tourism industry. Being a part of this tourism industry, Ngai Tahu Tourism is facing problems for taxation.Moreover, an issue with foreign exchange rates is yet another important and significant issue for them, thus affecting their organizational economy to a high point (Parker, 2018). There is a higher rate of foreign exchange in the business and hence they have faced losses. For changes in economic factors, organizational profitability is being hampered and in recent days Ngai Tahu Tourism has suffered from major issues related to their economic instability and profits. The presence of taxation policies are other significant reasons that have enhanced such issues in their business. These policies are not being followed by each and every organizational member and affecting economic factor.
iii) Social Factor: The third important factor of PESTEL analysis that is applicable for tourism industry is social factor. Local community of New Zealand does not want to mix with other people and hence it affects the social sector of this country and hence there is a lack of communication as well as engagement amongst customers. This is a major issue that is being faced by Ngai Tahu Tourism and it should be eradicated promptly for maintaining a proper balance between the business and their customers (Storey, 2016). If customers could not communicate with business people, they would be dissatisfied and would not come back or even recommend to other customers. Thus, this company loses their good will and social needs would be hampered. Precisely, they would be losing their social environment and existing customers.
iv) Technological Factor: Another factor of PESTEL analysis is technology.  New Zealand tourism industry is not dependent on technology and thus Ngai Tahu Tourism, being a part of it has not upgraded their technology. They are facing an issue of communication and engagement. One of these major reasons of this issue is technology problem (Baum, Frese & Baron, 2014). Moreover, this rate of technological innovation and development is affected for business. This particular organization of Ngai Tahu Tourism has become unsuccessful in bringing technological innovation within their business and hence customers are unable to communicate with them easily and promptly. Furthermore, subsequent tendency of this organization to majorly focus on various developments only within digitalized technology, has also brought these changes for company (Vellas, 2016). These new methods for communication are not widely accepted by various customers and hence this has led to few significant issues.
 
v) Environmental Factor: Negative impacts have occurred from tourism since several visitors or tourists visit New Zealand every year. However, less advertisements are given by them and hence it did not become popular in comparison to other countries. Another issue that is being faced by this organization of Ngai Tahu Tourism is travel marketing. However, due to complexity of their business processes and lack of marketing strategies, Ngai Tahu Tourism is unable to complete their marketing effectively (Becker, 2016). Hence, the surrounding environment or the target audience is effected and has a stronger impact on environment. There is a rise in importance of corporate social responsibility is another reason for this particular factor.
SWOT Analysis
A proper SWOT analysis is responsible for identifying the major strengths, weaknesses, opportunities and threats of any particular organization. Ngai Tahu Tourism is a tourism organization and hence it is important to complete a SWOT analysis for reducing the problems faced in their business. Moreover, the internal and external factors, which are both favourable and unfavourable are identified with this strategic planning technique. The strengths then refer to such factors of project or business, which provides it benefits (Boniface, Cooper & Cooper, 2016). The weaknesses refer to those characteristics of business, which could place that business at disadvantages in comparison to others. The opportunities are those elements within environment, which any project or business might exploit to advantages and threats refer to those elements within surrounding environment, which could eventually cause major trouble for project and business.
The SWOT analysis of Ngai Tahu Tourism is given below:

Strengths

Weaknesses

i) The first strength of Ngai Tahu Tourism is branding.
ii) Uniqueness of strategies is next strength.
iii) Efficiency in strategies and business plan.
iv) Provides variety of services in every destination.

i) Lack of communication and engagement with the customers is a major weakness.
ii) Misinterpretation of customer’s behaviour might occur.
iii) Issues in taxation is yet another problem of this organization.
iv) Issue in travel marketing is third weakness of Ngai Tahu Tourism.

Opportunities

Threats

i) Gaining of proper knowledge about customers is the first opportunity.
ii) Immense potential of customer satisfaction is second opportunity of Ngai Tahu Tourism.
iii) Booming of outsourcing and information technology could also bring several customers and hence it is an opportunity for this organization.

i) The sudden failure of business due to lack of communication and engagement with customers is the first threat.
ii) Another important threat to this business is failure of business due to higher competition in market.
iii) The web site could be hacked by several hackers and attackers and thus business could be in major issue, this is next significant threat to their business.

Table 1: SWOT Analysis of Ngai Tahu Tourism
2. Market Analysis
The market analysis is next important and significant requirement for any business to understand position of their business within the respective business (Schegg & Stangl, 2017). It is a qualitative as well as quantitative assessment of market. It eventually looks within size of existing market in value and volume. Moreover, major segments of customers and their buying patterns are being analysed with this type of analysis. Marketing tools and strategies are being applied to business for understanding market position easily and effectively. Ngai Tahu Tourism, being a travel and tourism company of New Zealand, requires a proper analysis of market to understand their position. This could be done with Porter’s Five Forces and the details of this analysis are provided below:
i) Threats of New Entrants: The first factor of this Porter’s five forces is threat of new entrant. Existence of barriers for entering into market is the first external factor that should be considered (Prebensen, Chen & Uysal, 2018). Moreover, this service differentiation and brand equity are other two internal factors of Ngai Tahu Tourism that should be taken into consideration while market analysis.
 
ii) Threats of Substitutes: There is always a threat of substitutes. Several distinct and popular tourism organizations have grown in New Zealand and this has become an issue for the organization. They should check the position of their competitors, while entering into market.
iii) Bargaining Power of Customers: Bargaining power of customers is solely dependent on few factors like buyer concentration to firm concentration ratio and differential advantage of services (Sigala, 2017). Ngai Tahu Tourism should consider this factor for market analysis.
iv) Bargaining Power of Suppliers: The next force amongst Porter’s five forces is bargaining power of suppliers. These potential factors of this strategy are supplier switching costs to firm switching costs and impact of inputs on differentiation and costs. Ngai Tahu Tourism should consider this as market of inputs.
 
v) Competitive Rivalry: The fifth force amongst these Porter’s Five Forces for Ngai Tahu Tourism’s market analysis is competitive rivalry. Since it is popular tourism company, they should obtain competitive advantages from innovation in business (Khan et al., 2017). This could only be done there is a healthy competition between the offline and online organizations and they would be able to understand their position within market of travel and tourism in New Zealand.
3. Stewardship in Ngai Tahu Tourism 
Stewardship majorly embodies a significant management or planning of several resources. They have applied this stewardship concept to their business. These responsibilities of stewardship in Ngai Tahu Tourism were expanded for inclusion of management requirements. As per corporate governance concept, this theory of stewardship is responsible for protecting as well as taking care of requirement eventually (Ali, Ryu & Hussain, 2016). Ngai Tahu Tourism has made their organization successful for providing better knowledge to business operations and hence keeping the deeper commitment for success. This theory describes that a steward would place high value on cooperation than defection.
4. Existing Strategies and Maori Values and Principles of Ngai Tahu Tourism
Ngai Tahu Tourism, being an organizations for tourism industry in New Zealand have to analyse their business for investigating business systems by including a significant examination of elements of organizational structure or staff development problems, IT systems and current processes (Kneževi? Cvelbar et al., 2016). Ngai Tahu Tourism comprises of few major and the most significant strategies that have helped them to become much effective and efficient within entire industry of travel and tourism. They had three major types of business strategies within their business and these are as follows:
i) Cost Leadership: The most significant existing business strategy of Ngai Tahu Tourism is cost leadership strategy. The main ideology behind this particular business strategy is capability of them for producing the services with lower expenses in comparison to their competitors (Ghosh & Siddique, 2017). They could manage for producing services could vary eventually based on industry as well as capabilities of the organization itself. They have tried to reduce various expenses by providing lesser expensive resource inputs. The reduction of employee costs as well as increment of employee productivity is an important effect of this strategy.
 
ii) Differentiation: The second existing business strategy of Ngai Tahu Tourism is differentiation. As per this particular strategy, they tried differentiation themselves from competitors. These are not limited to features of their services and the capacities are checked. Since, they are utilizing backdated technologies, Ngai Tahu Tourism have often faced issues while providing services to their customers and hence this issue of communication has occurred (Tan et al., 2017). However, they Ngai Tahu Tourism have tried to bring innovation in business and services for catering major competitive advantages.
iii) Focus: Another important and noteworthy existing strategy of Ngai Tahu Tourism is their focus on customers. The first priority of this organization is for their customers. They always try to satisfy their customers by providing better services and this has become popular and successful in their work due to this particular reason (Gong & Tung, 2017). The focus in their business has also brought significant changes and competitive advantages within business and hence they have become one of the most popular and significant tourism companies in New Zealand.
Ngai Tahu Tourism is following three distinct values of Maori and these are as follows:
i) Whanaungatanga: This the first Maori value that is being followed by this particular organization. It is about connections, relationships and the belonging sense (Prebežac, Schott & Sheldon, 2016). Ngai Tahu Tourism has paid major attention to connection with the customers and this Maori value is followed by them.
 
ii) Kaitiakitanga: The second Maori value, followed by them is Kaitiakitanga. It is regarding guardianship and there is a connection within people as well as outside world. The resources are looked after and even ensured for survival of future business.
iii) Manaakitanga: Ngai Tahu Tourism has followed third value of Manaakitanga (Xu et al., 2016). This specific value is about hospitality and it describes core act to care for their customers. The kindness, support and generosity are also shown by them due to this value.
5. Three Strategic Issues and Gaps faced by Ngai Tahu Tourism 
Ngai Tahu Tourism, although comprises of few significant existing strategies in their business, they have faced three distinct strategic issues and gaps within organization itself. These strategic issues are fundamental critical challenges that could eventually affect various values, mission, resources, processes, structure, management, services and stakeholders of this company (Dias, 2017). These strategic issues are extremely vulnerable and dangerous for any organization and could bring out few of the important and noteworthy problems in company. It is evident that a better strategy is being obtained by them and should be controlled under each and every circumstance. These issues are caused for the internal as well as external strategic factors and hence should be eradicated with proper strategies and efficiency. The three strategic issues and gaps faced by this particular organization of Ngai Tahu Tourism are as follows:
i) Issue with Taxation: As per annual report of Ngai Tahu Tourism, the first and the most significant issue that is being faced by this company of Ngai Tahu Tourism of New Zealand is the issue with taxation (Ng?i Tahu Annual Report. 2018). Some of the major and effective taxation policies are not being followed by the organizational members and thus this has led to the downfall of the company to a higher extent and the profits have come down.
 
ii) Communication and Engagement: The second noteworthy and vital issue, which is faced by Ngai Tahu Tourism is the lack of communication and engagement with the customers (Te R?nanga o Ng?i Tahu. 2018). This lack of communication and engagement with these consumers is yet another important issue that should be eradicated by them.
iii) Travel Marketing: Ngai Tahu Tourism has not considered their marketing influence on social media. Being a Maori organization, it is required for them to complete their marketing with proper effectiveness (Te R?nanga o Ng?i Tahu. 2018). However they are unable to do their travel marketing and hence have faced several issues in past 1 year. This could be done by including such rules in organizational governance.
6. New Strategies or Recommended Strategies Aligned with Maori Values
There are some of the major and the most significant strategies that are recommended for Ngai Tahu Tourism after proper alignment with the Maori values. The recommended strategies for them are as follows:
i) Building of New Technology: The issue for the lack of communication and engagement is building of the new technologies. The Maori value of Kaitiakitanga could be aligned with this specific issue. The technologies should be upgraded properly and hence this particular issue would be resolved.
 
ii) Providing Appreciated Assets: This particular strategy should be implemented by them for the proper eradication of the taxation issue. These appreciated assets would be attractive for the customers and they would be happier with the business. It is aligned with the Maori value of Whanaungatanga.
iii) Utilization of Social Media and CRM: Ngai Tahu Tourism should use social media for their business and it would increase the effectiveness and efficiency of their business. CRM would help them to maintain a healthy relationship between the business and their customers. This strategy is aligned with the Maori value of Manaakitanga.
Conclusion
Therefore, from the discussion, it can be concluded that Ngai Tahu Tourism is a major tourism operators in Aotearoa, New Zealand that eventually hosts over 1 million consumers in one year for 14 businesses. The main purpose of this organization is to make a proper connection with their customers. The major businesses of this tourism organization are Shotover Jet, Dart River Adventures, Rainbow Springs, Hukafalls Jet, Glacier Southern Lakes Helicopters, Agrodome, Guided Walks New Zealand, Franz Josef Glacier Hot Pools and Franz Josef Glacier Guides. They are also a 50% owner for the famous astro tourism experience of Earth and Sky. This is an entrepreneurship and the tourism organization enhances significant innovation within their business.
Due to their better and effective strategies, Ngai Tahu Tourism have become extremely successful and have brought utmost innovation so that customers are satisfied and they gain major profit. The above report has properly described an entire case study of Ngai Tahu Tourism for entrepreneurship and innovation. Several marketing strategies SWOT analysis, Porter’s Five Forces and PESTLE analysis are provided for understanding three issues faced by this particular organization. The existing strategies as well as recommended strategies of Ngai Tahu Tourism are also provided in report with proper description.
References
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Baum, J. R., Frese, M., & Baron, R. A. (Eds.). (2014). The psychology of entrepreneurship. Psychology Press.
Becker, E. (2016). Overbooked: the exploding business of travel and tourism. Simon and Schuster.
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Dias, J. G. (2017). Environmental sustainability measurement in the Travel & Tourism Competitiveness Index: An empirical analysis of its reliability. Ecological indicators, 73, 589-596.
Drucker, P. (2014). Innovation and entrepreneurship. Routledge.
Ghosh, R. N., & Siddique, M. A. B. (2017). Tourism and economic development: case studies from the Indian Ocean region. Routledge.
Gong, T., & Tung, V. W. S. (2017). The impact of tourism mini-movies on destination image: The influence of travel motivation and advertising disclosure. Journal of travel & tourism marketing, 34(3), 416-428.
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Scarborough, N. M. (2016). Essentials of entrepreneurship and small business management. Pearson.
Schegg, R., & Stangl, B. (2017, January). Information and Communication Technologies in Tourism 2017. In Proceedings of the International Conference in Rome, Italy.
Sigala, M. (2017). Collaborative commerce in tourism: implications for research and industry. Current Issues in Tourism, 20(4), 346-355.
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Tan, S. H., Habibullah, M. S., Tan, S. K., & Choon, S. W. (2017). The impact of the dimensions of environmental performance on firm performance in travel and tourism industry. Journal of environmental management, 203, 603-611.
Te R?nanga o Ng?i Tahu. (2018). Communications – Te R?nanga o Ng?i Tahu. [online] Available at: https://ngaitahu.iwi.nz/communications/  [Accessed 13 Dec. 2018].
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