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Highland Planning and Recreational Department - the Scottish Ski Centre

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Highland Planning and Recreational Department

The Scottish Ski Centre

January 13th 2010

Abstract

The purpose of this report is to critically analyse and evaluate strategic options for the development of a new Ski Centre in Scotland.

The major Objectives are:

To consider a range of management paradigms, tools and concepts in accordance with best value performance indicators.

To achieve the rationale behind the intended strategy selected and implementation issues.

To make explicit recommendations for the future development and benefits of a new Ski Centre in Scotland.

The Conclusion of this report is:

Further work is required to be undertaken, in particular robust financial modelling and identifying opportunities to develop strategic alliances in order to formulate a new strategy or strategies that can be adopted and implemented, in order to facilitate the development of a new Ski Centre aimed at expanding the elite niche market; whilst preserving the present legislative framework for the protection of the environment.

Table of Contents

Page

Abstract 2

Table of contents 3

Table of figures, charts and models 4

1. Introduction 5

1.1 Background 5

1.2 Business case 5

2. Strategy 5

2.1 Definition

2.2 Strategic management 5

6

2.3 Strategic planning 7

2.4 Mission, vision and values

2.5 Strategic Marketing

2.6 Strategic Choice 7

8

9

3. Appraisal and tactics 11

3.1 Market appraisal 11

3.1.1 Marketing mix 11

3.1.2 Stakeholder analysis 12

3.1.3 Segmentation, targeting and position 17

3.2 Marketing tactics 18

4. Financial modelling 19

4.1 Break-even analysis and break-even point 19

4.2 Return on investment 20

4.3 Balanced Scorecard 21

5. Conclusions 21

6. Recommendations 22

7. Bibliography 23

8. Appendices 25

Table of Figures, Charts & Models

Page

Figure 1 : The infrastructure requirements for effective

market planning. 9

Figure 2 : The Marketing Mix 11

SWOT analysis

PESTLE analysis

14

15

Porter's Five forces model

Figure 3 : McKinsey 7-S Framework

Chart 1 : Break even Analysis and Break even point

2009/10 16

17

19

1. Introduction

1.1 Background

In the UK there are estimated to be 440,000 skiers, of which 55,000 live in Scotland. There has been a 50% increased demand in package holidays for skiing over the last 8 years; mainly attributable to more holiday entitlement, more disposable income available and an increase in the number of holidays taken per year. The increasing demand for skiing has meant that there is now severe overcrowding on the ski slopes - especially in Cairngorm, and unacceptably long queues for lifts.

1.2 Business Case

The increased demand for skiing means that capacity is now not able to meet demand without the development of more ski resorts. There has been an increase of approximately 5% of adult and child skiers each year since 1998. In real terms this amounts to an increase of 64% skier days per annum (335,000 skier days in 1998/9 increasing to 549,000 in 2005/6).

In order to facilitate the development of a new ski resort it is imperative that the stakeholders are involved in the whole process to encourage ownership and facilitate change where appropriate.

2. Strategy

2.1 Definition

Strategy is the direction and scope of an organisation over the long term which achieves advantage for the organisation through its configuration of resources within a changing environment, and to fulfil stakeholder expectations (Johnson Scholes &

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