Strategy Execution Risks

4.4. Strategy execution risks

In order to estimate a possibility of future occurences, which may cause harm or losses, possible risks of Estravel have been identified, evaluated and prioritized (Table 9).  Depending on the area, risks have been devided into six categories.

Lisada tabel

Three risks have been classified as unimportant:

• Shift in seasonality
• Decrease in disposable income
• Decrease in leisure time of potential customers

The probability of occuranse is not only low, but also it does not give a significant impact on planned performance.

Some risks, that are likely to occure and also may have impact on performance without significantly hindering achievement of strategic goals,  are classified as important:

• Change of tourist needs
• Limited range of destinations offered
• Currency fluctuations
• Inflation increase
• Interest rates increase
• Insufficient marketing activities
• Lack on qualified staff
• Insufficient training for staff
• Legislation changes
• Climate change overall
• Pollution in destination countries

Palun kirjuta siia paar sõna selle kohta, kuidas saab riske maanduda.

The biggerst part of indentified risks, has been prioritized as very important. These risks are critical to keep in mind for the respective risk owner. The ignorence of such risks may lead to inevitable consiquences and may strongly hinder achivement of the goals.

• Undermined airlines safety
• Undermined airport safety and security
• Undermined road safety
• Undermined image of the destination country
• Increase in fuel costs
• Increase in cost of transportation
• Competitors marketing activity
• Too high level of prices in tourism industry overall
• Increased competition
• Not receiving on-time payments from customers
• Increase in operational costs
• Technological changes
• Political conflicts and wars
• Political instability in destination countries
• Political instability in Estonia
• Return to visa conditions with some countries
• Terrorist activities
• Natural disasters
• Weather conditions change in Estonia and destination countries

Some of the risks classified as very important, can be considered a “black swan”, a risk which occurance is unpredictable and comes are surprise, e.g. natural disasters, sudden undermined airlines safety or image of destination country.