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Business Health Check Of Shearings Company


Business health check refers to the assessment of all the aspects of the business in order to improve profitability. The assessment is done on the quantitative and qualitative basis by using various tools such as the SWOT, PESTLE or Ansoff's matrix. The current position is realized by looking into the physical resources, financial resources and human resources to identify the growth potential. Further, by analyzing the factors that hinder the growth of the organization certain methods are adopted to remove them (Hawn, 2009). This report critically assesses the functioning and operations of the travel and tourism company Shearing's Holidays. This report reviews the working of the organization by assessing its current position and the short term and long term objectives. By investigating the internal and external influences the plan is prepared to develop the skills of management and staff. The effectiveness of the working and functioning of the organization is checked then the report also elucidates the possible options for the improvement (Saaty and Vargas, 2013). At last the final evaluation is done and the measures to improve the existing abilities.


1.1 Shearing's history with their short and long term objectives

The UK's leading holiday tour operator is recognized for its inevitable and the premium customer service with the experience of over the 100 years. Shearing holidays are providing the thoughtful and personalized service to the customers traveling to 170 destinations. It provides the best comfort and optimum privileges to the patrons (Kudo and et.al, 2004). Britain is enriched with the number of fascinating places; Shearing's Holidays facilitate the travelers to explore these places by giving them varied choices of the Air Holidays, river cruises, escorted tours, seasonal holidays, international festival events like Christmas New year celebrations, bay inclusive breaks, Battlefield tours and many more. Along with these the group is known for organizing the best themed and weekend breaks holidays in UK. Best known for its coach based tours Shearing was established in 1921 (Baral, 2005). Mergers and acquisitions has enhanced the customer service and made it best in the business. With unrivaled customer loyalty and enviable reputation for quality and reliability has made it won many recognizable awards over the Globe. It is crowned as the Best coach operator, rail, road and sea operator in Global travel awards consecutively for four years. Shearings Holidays has the vision to give their travelers the experience of best holidays with memories (Saunders and et.al, 2011). For the purpose the group has set certain short term and long term objectives to achieve the goals.

Long Term Objectives

  • To become the world's leading premium Holidays and tour operator in all the modes air, road and water.
  • To give the travelers the experience of exciting holidays with the mix of activities, exploring history and culture, wildlife and sightseeing with the range of dedicated tours that suits the patrons best (Cromer and et.al, 2004).
  • To become the destination specialists: By giving the experience of epic journey to the patrons to discover the scenic beauty of Britain with the wide range itineraries.
  • To enhance the stream of travelers by establishing the prominent position at the prestigious destinations globally.
  • To be recognized as the premium service provider in the business of Holidays and tour operators across the Globe.

Short term objective

  • Appoint the highly trained and experienced tour leaders to provide a memorable experience to the patrons (Saaty and Vargas, 2013).
  • To improve the journey comfort at every step by providing the warm service, convenient location and memorable enjoyment.
  • In order to showcase the services provided by the group, improve the promotional content on the virtual platform.
  • Providing the better financial services to the travelers in the form of the travel ticketing, tour insurances, currency facilities and other related (Shearing Holidays, 2015).
  • To establish the prominent position in the hub of tourism and traveler London within the span of 6 months.
  • To increase the tie-ups and linkages with the suppliers around the globe to offer the better services. As this relationship constructs improve the technology and the service standards with the inculcation of innovation.
  • To bring the increment of 2 % in the market share in the travel and tourism sector in time duration of 1 year.

1.2 Investigating the external influences on the organizations

In order to investigate the external influences on the Shearings functioning, two tools are used PESTLE and Porters 5 Forces Model.

PESTLE analysis:

Political Environment: The political environment has the large impact on the functioning of the holidays and Tour Company (Daugbjerg and Swinbank, 2011). The organization Shearings is operating in Britain. Realizing the share of travel and tourism in the GDP ratio, The government Of Britain has liberalized the rules and regulations in the related field and has given the relaxation in taxes and tariffs. Further, by promoting the offerings of the nation globally it attracts the investment and FDI which has helped the company in improving its operational management in all the services. The legislative heads by encouraging the hosting of international events in the country such as the Olympics, Carnivals, Festive celebrations attracts tourism in the considerable way.

Economic Environment: Economic attributes of the country also impacts the working of the group. For instance the countrymen with the high disposable incomes have more preferences and choices to go for tours (Kassirer, 2004). The other factors such as the inflation rate and stock exchange inflation also affects the investments and fares charges the group offers. The export taxes and the import duties imposed by the Government has the negative impact on the profitability of the organization. Further, the economic trend is one of the key deciding factor in the revenue generation of Shearings group.
Social environment: UK is the country with the people from the diversity of background. It is the home of elites with high per-capita income. Considering the economic data they have the high preferences for the tours. Britain is the home of trade and business relational constructs. That attracts the tours of the business elites from the cross border region. The preferences of the people with the social background are very different and varied. Hence, the group Shearings holidays has come up with the range of Holiday packages and travel options depending upon the choices.

Technological Environment: The country possesses the advanced technology in the communication, transport and the infrastructural sector (Hwang and Christensen, 2008). Theses advancement accrues the large benefits to the group by availing them with the lucrative profits. The high tech communication let the organization to maintain the better connectivity all over the world at all the destinations. The Country in which the organization Shearings is operating is technologically sound and developed. This has benefited the organization in their offering in all the travel options such as the advanced transport system has made the flights, river cruises and the road journey feasible with the increase in intensity of trips.

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Legal Environment: Shearing group is providing the tour facilities in all the travel options by coach, rail, air and cruise (Imai and et.al, 2007). The legislative bodies and government impose some rules and regulations in regard with the services the group provide and the company has to abide those laws. Shearings abides the laws related to the employment issues such as their safety, health, training, apprenticeships, equality on certain grounds; environmental issue such as the emission of the carbon, green house gases and nitrogen in the atmosphere, the waste reduction and on the services the group offer.

Environmental factors: The most crucial factor which imparts the great influence on the profitability of the holidays and tour operators. The key attentions of the patrons are the climatic and environmental issues in the country operating. The favorable climatic and environmental conditions attract visitors while the favorable factors deviates the stream of travelers away from the country (Fabry and et.al, 2006). The country possess the favorable climate that attracts the travelers from all the parts of the country. The scenic beauty and the pleasant climate is the USP of the organization Shearings holidays. Further, the country is endowed with the rich heritage of nature and archaeology. The people come here to explore that.

PORTERS 5 Forces

The model assesses the Shearings external influences by investigating the 5 factors.

Threat of New Entrants: The threat of new entrants is very low as the business demands high investment and the business risk is associated with it is very high. To operate the travel and tourism business the organization need to know the market trend, customer's preferences and accordingly organize the tours for the travelers. Failing in delivering the services of optimum level will shift the customer to use of services given by new entrants.

Threat of Substitute Products or Services: There is moderate degree of threat of substitute products and services (Iseki and et.al, 2012). The closely competitive tour operators are organizing with considerably equal standard of services at the competitive prices. The organizations operating in the similar industry offer the services with effectual promotion which threatens the customer hold.

Bargaining Power of Customers: Shearings Holidays are providing the tour experiences in the wide range of packages (Daugbjerg and Swinbank, 2011). It consists of holiday tour from the high cost packages for elites to the reasonable economical tours. Due to the availability of varied range of choices in the holiday packages reduce the tendency of customers to bargain.

Bargaining Power of Suppliers: The bargaining power of suppliers and intermediaries associated with Shearings Holidays is moderate(Saaty and Vargas, 2013). The tour operator has to manage every aspect of the trip such as accommodation, meals, adventure, transport and financial services. Among these the suppliers of accommodation and transport has high bargaining power whereas low in financial services.

The intensity of Competitive Rivalry: The Intensity of competitive rivalry is very high as the group Shearings experience fierce competition from the other holiday providers (Productivity Commission, 2010). But the Shearings has an edge in the market place as it provides the range of travel options by coach rail, air and cruise.

To analyze the results and assess the internal influence SWOT analysis is done.

Strengths: The organization Shearings has the first class project management services and considerably good operational efficiencies. The group is recognised globally for the incredibly good and warm services it offers. In all the holiday packages, Shearing take care of the each and every service from accommodation, meals, entertainment and fun.

Weakness: Shearings has low hold on the promotion on the virtual platform through digital marketing. Due to the conventional methods of marketing used by the marketers the Shearings group is unable to build the connections with the larger stream of customers.

Threats: In-spite of having significantly better services and products the threat of replacement of the customer's choice with the other operator is pretty good (Daugbjerg and Swinbank, 2011). The new entrants with the better services, products and packages can overshadow the existence of the organization, The shearings.

Opportunities: With the better promotional content and platform the group can quickly capitalize on trends, events and seasons. Further, the group is offering its services in wide horizons so it has availability of opportunities to expand.

1.3 Possible options for improvement to the company using Ansoff's matrix

By analyzing the internal and external influences on the group it can be inferred that there are certain areas where making the improvement the profitability can be increased. This is explained in the form of Ansoff's matrix. There are four criteria’s to identify the possibilities:

1.Market Penetration: Market penetration refers to adopting the new strategy to promote the services in the existing market (Kudo and et.al., 2004). For the market penetration Shearings can adopt the promotion on the online platforms to demonstrate the breadth of the shearing offerings. There is large scope of introducing diverse services in the Holiday packages such as starting the new themed and featured holidays such as for Kids fun, Disney trips and the trips and tours to explore the islands around the country.

2.Market Development: Shearing group is providing its services at 170 destinations predominantly in Europe. There is the big scope of market development in other regions such as the trans-Atlantic areas. By enhancing the destinations to the Asian prestigious destinations Shearings groups can significantly increase it markets share in the travel and tourism sector around the Globe (Hacker, 2008). The regions with diverse physiological divisions opens the wide scope for the organization, Shearings holidays.

3.Product Development: The group at present is endowed with the range of product and service line for the travelers around the world. In order to increase the comfort level the group can come up with the wider range of facilities in accommodation such as villas, cottages, apartments and more.

4.Diversification: To make the prominent position in the market place the group can opt the product diversification by operating in the similar type of business and industry. At present company is offering it services in holidays and tours (Needleman and et.al, 2006). Along with this group can start the business in travels and adventure tours as well. At present the group has the tie ups with the financial institutes to provide the financial services. By having the own service provide, the economies of scale will help in generating more revenues (Hwang and Christensen, 2008).


2.1 Review of the effectiveness of the company

Product and services: Shearings group offers wide array of services to make the travel with comfort and enjoyment. The group provides the warm services, comfortable accommodation and the first class entertainments. Tours to explore the spectacular sceneries and the cultural heritages in Europe are organized (Betancourt and et.al, 2005). The group organizes the river cruises, coach holidays, Air holidays, short breaks and themed and festive holiday trips.

Marketing: In order to showcase the Shearings offerings the company has the tie-ups with media organizations. To cover the wider range of travelers and visitors the company adopts the digital medium. Promoting the offerings of the Shearings group on virtual platform the builds the better interaction with the effectual design (Richter, 2004).

Sales and Finances: With the family of wider range of customers and travelers, the employees are dedicated to offer the warm services to the travelers with the optimum level of comfort and facility. The organization has the significant market share in the travel and tourism sector globally. The organization has the maximum sales in the river cruises independently holding the maximum share of its total earnings.

Staffing and their Effectiveness: The staff of the Shearing group offers the warm services at every point of journey. There is the large family of employees spread globally at all the destinations. There is the efficient project management team to look after the whole tour and trips and organize it perfectly. The organization posses the efficient and capable staff.

Business image: The organization has the enviable reputation for the quality and the customer's loyalty around the Globe. It has won the various awards in the travel and tourism sectors for providing the excellent level of services and the quality of products offerings (Hsu and et.al, 2011). The company is also known for the authenticity of the words it offers to make the journey and trip memorable and making it sake at all the aspects are it financially or in other means.

2.2 A plan for the company's future development

A plan is prepared to boost the efficiency of the group and promote the better hospitality at all the destinations it is operating globally with the warm services and the best products.

Marketing and Sales: The fundamental need of any group is to enhance the customer base and increase the revenue generation of the organization. It can only be done by increasing the sales of the offerings and including the larger and larger number of people in the traveler’s family. This is done by promoting the product in the right manner to reach the targeted customers. The plan suggests that by offering the number of different discounts and deals in packages in regular time the travelers are attracted (Farley, 2006). Collaborating with the airlines and accommodations the services can be promoted. At the time of festive events and special functions happening in the country, tie ups with the sponsor’s results in the fruitful manner.

Product and services: The Shearings group is offering the wide range of services with the variety of options available to the travelers. By bringing more perfection in the services provided the company's functioning can be enhanced. In wildlife tours and trips, the safaris and tracking can be included (Carlisle, 2010).

Financial management system: To organize the bulk of data of such a large organization operating in number of destinations with thousands of employees there is the requirement of the efficient data handling, for that purpose the use of data base management system can save the data with more ease and the better accessibility.

Roles and responsibilities of staff: Travel and tourism is the customer service centric industry in which the credibility of the organization totally dependent on the services offered by the employees and staff of the organization (Hawn, 2009). The staffs of the organization are recognized for the warm and precise services it offers on the global scale. But there is the scope of improvement in every area. The abilities and skills of the employees are enhanced by organizing the apprenticeships, training programs and development sessions. By increasing their engagement to the outer world by the means of seminars and conferences gives them the exposure and helps them to upgrade their abilities in the field they are working.

Laws and regulations: In order to regulate the functioning and working of the organization, there are certain organization who has laid the rules and regulations. To monitor the trade issues the organizations are working in this context. The organization is required to abide all the law and comply with the norms (Sharing Holidays, 2015). There are rules related to the consumer protection, checking the functioning of the trade activities, employee’s issues, environmental conversation and safety and security of the travelers. Shearings comply all the laws laid down in the field and work for it. For instance the cruise trips are organized by keeping the environmental protection and green journey are organized.

Action planning: The plan includes the strategy building to achieve the goals and accomplish the targets. The hiring of the efficient and eligible employees having the competent experience of working in the travel and tourism sector with the proficiency in the management. The destinations are divided into different zones (Carlisle, 2010). Then the zonal officer is appointed to undertake all the activities and supervise the staff to execute and implement all the tasks in all the departments in all the zones.


3.1 Evaluating the skills and efficiencies of the employees

With the aim to provide the journey with friendly and helpful service, great entertainment, comfortable accommodation and value for money has the quality team of employees and staff.

Managerial: The core of the functioning of the organization it the management team who builds the strategies, plan out the process in which things are to be done, the ways in which target are to be achieved and to supervise the subordinates to make them work efficiently and with dedication. The management team lay out the plan to perform the tasks in different departments. In shearings Holidays there are various departments which operate for the smooth functioning. The major divisions are the HR department who take care all the employment related issues, Finance department who has the accounting of all the transactions made under them (Saunders and et.al, 2011). Along with this the department also handles the financial services the group provides to the travelers and the other team is the project management team who organizes all the tours and trips. This is the top management who formulate the strategies and policies to function. The execution of all these are done by the staff in the operational team. Further this team also assesses the performance of the organization and makes up-dation according to the requirement.

Technical: The Indispensable section of the Shearings Holidays group. This team takes care of the technicalities of the functioning of all the departments. The travel and tourism sector demands the market research to assess the market trend so that the products and services are offers and according to the customer's preferences (Sharing Holidays, 2015). By making the judgments the decisions are made and execution is done accordingly. This department also includes the marketing and promo9tion of the Shearings services and products offerings. The team promote with various means and been successful in that. The organization Shearings is lacking in the recording and keeping data in the effective manner. The organization requires the updated and the upgraded system of the data base management system for keeping the data in better way and accessing them with ease (Baral, 2005).

Operational: This is lifeline of the organization. The operational team executes and implements all the strategies planned and function accordingly to give their travelers the optimum level of service. The operational management is working in the diverse section of the organization such as at different travel options and the facilities available at these tours and trips. The team which organizes the accommodation facilities builds and ties ups with the hotels and other accommodation (Fabry, B. and et.al., 2006). The staff available at the travels and organizing the tours works with efficiency. To maintain the competitive edge in the market, operational skills of the employees need to be enhanced. For that purpose training programs and development sessions are organized. Further, the employees are sent for the apprenticeships, seminars and conferences for the exposure.

3.2 The improvement needed to improve the identified skills and efficiency of the organization

The future development plan is outlined in order to improve existing skills.

  • By making the rigorous recruitment the suitable and efficient employees can be appointed to provide the optimum level of services in the most friendly and helpful manner.
  • By appointing the guides at the places of the heritage and historical backgrounds to help the travelers explore places in the better and enjoyable way.
  • By linking with the organization such as the ATOL, FTO, PSA and ACE, the functioning can be improved because these organization functions to improve the standard of services and its quality with the efforts made by it (Daugbjerg and Swinbank, 2011).
  • Training programs, development sessions, seminars, conferences are organized to uplift the skills of the employees.
  • By improving the marketing and promotional strategies. The skills can be improved by training and surfing more. The user friendly and influence website proves to be effectual measure in promo0tion. With the use of advanced features and better user interface the customer is able to connect more with the organization on online platform.
  • By making the attractive and influence websites with the user friendly interface, the organization can connect with the travelers and the customers in the better way.
  • The organization can increase the customer base by attracting the travelers by providing them attractive offers and deals and vouchers on their packages for their holidays and tours (Iseki and et.al., 201).


The report throws light on the business health of the travel and tourism company Shearings. The company has captured the attention of travelers from all over the world with the remarkable services and memorable tour experience. In this report the business health of the organization checked by the external analysis using the PESTLE and PORTER 5 forces model and the internal analysis using the SWOT analysis. From that it can be inferred that the organization is working significantly well in all the sections giving the friendly and warm service to the patrons. In order to achieve the short term and long term objectives, the organization has prepared the effectual strategies with rigorous market research and with the help of market analysts and strategists. They make the journey comfortable by providing them the optimum level of service at all the stages of journey and the different travel options. The Shearings group has identified the possible opportunities to expand the market and product and service line and adopted the methods to make the journey of patrons memorable


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