Management System Analysis Of Alarko Tourism Group Özge

Management System Analysis Of “Alarko Tourism Group” Özge Sıvacı Sinan Acar Volkan Albayrak Alisher Shermatov

History • Founded in 1954 by Ishak Alaton and Uzeyir Garih with a capital of 20 000 TRY • 1973 Alarko becomes a corporation and undertakes the following: – – – Execution of Complete Industrial Facilities on a turnkey basis Heavy industry Production of Industrial Process Equipments (Furnaces, Conveyors, Pumps, Burners, Electrical panels, Coolers – Air Conditioners) Food Industry Tourism and Housing Industry Service sector

History • 1975 the corporation goes public, sells 15 % of its shares and obtains approximately a 1000 shareholders • 1994 The Tourism Group begins to operate “Hillside Beach Club”

Vision To become a stronger, well respected, pioneering global company that grows through the diversity it embraces and differentiation it creates

Mission Offer services and product concepts beyond the expectations of those who are sensitive to quality and trends in their life style

Alarko Tourism Group Organizational Chart

SWOT Analysis • Experienced • High qualified pesonnel • High quality service • Pioneers • Bad advertising • Infrostructure • Design Strengths Oportunities • Expand the market • Gain new audience • Increase Revenues Weaknesses Threats • Competitors • Taxation • Cultural Problems • Weather

PEST Analysis Political Alarko Tourism Group performance is directly affected by consumer protection and employment laws in Turkey, as well as, the nature of competitive regulation, and risks of military invasion in the country

Economic • National macroeconomic situation and factors • The extent of expected and real economic growth • national taxation policies • Seasonality and weather problems

Social • Good service for customer • They using 7 language through the online and graphics and maps also adding value to booking experience, which is due to variety of social changes • Hill Side brand is very well known amongst Turkish visitors and the Turkey

Technology • • • Websites and Hotel Booking Up to date information systems Electronic media card (pre-paid card) becoming more demandable.

Financial Analysis of Alarko Tourism Group 31. 12. 2010 31. 12. 2011 31. 12. 2012 31. 03. 2013 Revenues 40 36 42 4, 7 Operational Profit -0, 6 -0, 8 0, 3 -3, 3 EBITDA 2, 9 2, 1 2, 9 -2, 6 Net Profit EBITDA Margin % -0, 2 7% -0, 7 6% 0, 4 7% -2, 6 - 6, 1 5, 5 6, 6 2, 8 Financial Liabilities 0, 1 - 0, 2 - Net Cash Position 6, 0 5, 5 6, 4 2, 8 TL/US$ Exchange Rate 1, 55 1, 89 1, 78 1, 81 Cash & Financial Investment

Porter’s five forces model Risk of Entry by potential competitors (Low) Bargaining power of Supplier (Moderate) Rivalry among existing established Firms (High) Threats of substitu teproducts (Moderate) Bargaining power of buyer (High)

Development of Advertising Strategy Development of outdoor advertising Implementation of guerilla marketing tools Development of advertising campaign via internet • Implementation of “Reminder” and “Amaze” advertising campaigns • • •

Development of out-door advertising tools • • • Billboards Banners (screens) Stretching Signboards Transit advertising

Increase tools • new outdoors Interactive ads • involving customer Attention atraction • amaze customer reminder

New locations for advertising • • • Apartment houses Building projects Municipal workers 3 D advertising Street art

Implementation of Guerilla marketing • Street art • 3 D Street art

Advertising Tools • • • Public transportation and stations Picture-stations Paint-bus Cooperation with advertising agencies Development of internet advertising – Virtual accounts – Social networks – Word of mouth – Viral advertising

Recommendations • Increase investments in the development of advertising strategy • Develop appropriate adaptation of advertising strategy, according to cultural factors, traditions and values of people • Creation of cooperation with new advertising agencies, in order to pour in new blood in advertising concepts • Lobbying for new advertising tools and opportunities • Development of internet advertising, and work over social networks promotion

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