Strategy Implementation

Group B

Kundan Baduri – Mariana Penzini – Daniel Pires – Holly Ann Wright – Shaheen Samavati – Bertrand Rousseau

AgendaDescription / Analysis

Problems / Recommendations

Risks / Implementation

What is Posadas Amazonas

Type: Nature Oriented Lodge Where: Located in Peruvian jungle Business model: Partnership between

Ecotourism company RFE and Native Community of Ese’ejas

Social impact: Educational development program (autonomy in 2011)

Benefits for the community

Employment opportunity Skills acquisition Improved standard of living Environmental education Retain youth of the community Develop community governance Improve morale through international

recognition

Agenda Description / Analysis

Problems / Recommendations

Risks / Implementation

What to do about the community Role in community’s internal conflicts Convenient partnership? Reduce turnover/pool problems and improve

service quality Managing suppliers and airlines

The questions

Current problems

• Access to employment pool• Relationships between Natives and

Mestizos

Internal conflicts in

the community

• High turnover• Lack of responsibility• Limited pool of qualified personnel• No performance benchmark

Limited productivity

• Unreliable airline service• Limited supply under legal forms

Unreliable external services

Improvement strategy

Create incentives (rules, rewards, training) to increase our partners’

(community, suppliers) commitment, performance and

responsibility

Current problems

• Access to employment pool• Relationships between Natives and

Mestizos

Internal conflicts in

the community

• High turnover• Lack of responsibility• Limited pool of qualified personnel• No performance benchmark

Limited productivity

• Unreliable airline service• Limited supply under legal forms

Unreliable external services

• Trigger the commitment of the Management

• Introduce performance rewards and merit-based access to the work pool

• Partnerships with other lodges

• Tour packages with airlines

• Involve local authorities (subsidizing, regulations of air transport, promotion of ecotourism)

• Partnership with government (Transition to legal market)

• Suppliers education program ( Coaching for legal invoicing)

Steps

Generate awareness in the

community

Develop Lodge syndicate

Make contact with authorities

Set performance thresholds

Train suppliers

Negotiate with Airlines

Foster competition

Agenda Description / Analysis

Problems / Recommendations

Risks / Implementation

Risks Interfere in internal conflicts of the

community

Failure to buy in the community for new performance standards

Mitigation principles Maintain incentives external (we don’t

interfere in the internal problems)

Buy in the management committee by showing them the business criticality

Empower the management committee and transfer HR responsibility to them

Take-aways Having the right incentives Empower the community Train employees and suppliers Build an alliance (lodges) to increase bargaining

power with suppliers (airlines) Involve local authorities to improve business

environment

Questions?

Maintain training frequencyIncrease # of rained managers

Transfer skills and responsibilitiesTransfer training ability to the community

Autonomy of the community

Learn how partnership between private companies and native communities works

Community satisfaction

Be recognized as the leaders in this segment in Peru and Internationally among this segment

Transfer skills to localsService QualityConstant Supply of products

• Quality Survey• Low Turnover rate

• Involvement of the Management committee

• Emergence of leaders• Successful transition# of jobs offered• Income and Levels of Nutrition• # of people in the community

• Quality of services• Uniqueness of experience

Delight the Customer with an initiation to jungle experience

Best in class experience (service, expeditions,entertainment, etc)

• Service Quality Survey• Turnover rate• Loyalty (RFE)

Strategic MeasuresStrategic ObjectivesStrategic Themes

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Profitability Profitable at lodge level

Profits reinvested in community development

• Increase occupancy rates• Repayment of debt• Reinvestment in company• Control marketing expenses• Market premium

Posada Amazonas Balanced Scorecard

Community commitment to take over responsibilities

Employment ratesHigher income in the communityLess migration

Maintain high turnover rates of customer