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1. Applying the McKinsey 7s model on Maruia Hot Springs
Structure: The division of the business units and organization of the department is described in the structure segment. It is also one of the most visible elements of a firm and is much easy to change. In this respect, Maruia Springs follows a flat organizational structure. This structure includes few or no levels between staff level employees and top management. However, it will be better if the organization can transform itself into a hierarchical structure thereby delivering better clarity.
Systems: It indicates the daily activities and processes of a company, based on which, the performance of a firm is determined (Alshaher, 2013). Though nothing much is revealed about Maruia Springs’ activities, it is clear that the new owners are working towards a common target of renovating the organization and establishing a strong foothold in the industry.
Skills: Skills signify the abilities that an organization’s employees have. It also includes all forms of capabilities and competencies. During organizational changes, a question arises regarding the actual skills that a firm needs for reinforcing a new structure. Similarly, as Maruia Springs is undertaking renovation, it needs to recruit skilled employees and improve its human resource practices.
Staff: This segment defines the type and number of employees in an organization and the approaches toward recruitment and management. Maruia Springs lacks proper management and has a poor framework for human resource practices. This results in low organizational effectiveness ad high employee turnover.
Style: A company’s management and their interactions are depicted trough style that identifies the effectiveness of the entire process. New owners of the organization have been working efficiently to renovate the organization and undertake a total renewal of Southern Alps bathing experience. The Managing Director is passionate and guides teams to create facilities that fit harmoniously into the surrounding culture and the scenario.
Shared vision: Shared values are standards and norms that define the mission and helps employees to work towards it together. However, Maruia Springs seems to lack a common mission and goal. This affects the overall performance in a negative manner.
Strategy: This is the most important part of the 7s framework that describes the plans that the firm makes to achieve competitive advantage. Maruia Springs is also following a long-term strategy of renovating its organization to transform it into world-class health, wellbeing and retreat destination (Gökdeniz, 2017). It is looking to develop itself as a place for connecting with pure nature a become widely loved as one of the best hot springs of the world.
2. PESTLE Analysis of Maruia Hot Springs
The spa park does not face any political issue and no political party hampers the daily activities. Lack of stability in politics can affect organizational operations to a great extent. New Zealand has political stability and it does affect any business organization negatively. The country is in fact known for transparency of the government and it has a low corruption level.
Many young and old people from the upper class prefer to visit the spa park, Maruia Hot Springs in New Zealand and like to enjoy welling activities, thermal bath experiences and all over services. The services provided by the type of spa parks are generally expensive. So, the spa park of New Zealand caters to a specific group of people who have the luxury of enjoying the spa parks.
Social factor plays a very important role in the business of spa parks. Nowadays, more and more people are becoming aware of physical wellness. Nowadays, many people feel because of stress at the workplace. Spa parks provide them a great opportunity to recharge themselves (thaisquarespa.com, 2019).
It has become a part of the upper-class people's lifestyle. That's why Spa Maria Hot Springs has become popular in New Zealand. Other than that, many people are looking for lucrative jobs. So, increasing demand for spa parks is noticeable.
The park's water therapies contribute to the benefits of physical and mental health. The water therapies of Maruia Hot Springs helps improve sleep, reduces anxiety, helps to manage sore joint and arthritis greatly.
Technology does not really have anything to do with the spa park's experience. The park is peaceful, relaxing, calm and surrounded by natural beauty. That's why the rooms situated in the park do not have telephones, televisions, and radios.
However, as far as the business activities are concerned, the company gives priority to advanced technology. The pay attention to the facilities of virtual communication and online booking. They also believe in connecting with people through social media. Their YouTube videos actually attract more and more visitors to the park.
In today's world, ultraviolet sauna has become extremely popular in spa parks. Therefore, it is very important for the company to use this type of technology to attract more number of customers and compete with other spa parks.
In most of the places, people need to apply for the license for starting spa businesses. The spas need to go through health inspections for keeping the licenses (Hanks, 2019). The park complies with all of the legal requirements.
This spa park's owners ensure that all their employees are all trained well and licensed. Permits and licenses are significant aspects of the spa business organizations. Maria Hot Springs understand it very well and follow New Zealand laws sincerely.
Environment plays the most significant role in the spa park's business. The main reason that the people visit this park is to get connected with nature. Visitors can take a thermal bath in the park, which is surrounded by beautiful mountains and rivers (Fletcher, 2018).
Visitors will get an opportunity to enjoy bathing in the mineral water that comes from the ground naturally. the visitors can also explore the beautiful waterfall trail, circuit trail of the area before taking bath.
Table 1: PESTLE analysis
(Source: Created by the author)
3. Porter's five forces of Maruia Hot Springs
The threat of new entrants:
The threat of new entrants is really high in New Zealand. More and more people are enjoying the bathing experience and beautiful natural sceneries. The country is already filled with some amazing spa parks and they are popular in the country. In the parks, people prefer to sit in the mineral water and enjoy a relaxing environment because mineral water helps solve medical issues. So, many people consider it to be a profitable business and they are also planning to make spa parks.
Bargaining power of the suppliers:
The suppliers' bargaining power is low for a spa park industry. Suppliers of this New Zealand's spa park give the company products for massage treatments. These products include creams, bed-sheets, facial products, and machines. There are so many options available in the market as far as these products are concerned. Some of the companies sell their products at affordable or cheap prices and the spa park has several options from which it can choose.
Bargaining power of the purchasers:
The bargaining power of the purchasers is quite high. There are so many spa parks in the country and they can select the one they want. The customers will obviously go to the spa park, which provides services at reasonable prices. On the other hand, some customers are willing to pay more money if they are provided high-quality services. They believe that better service is even more important for them. In most of the people prefer those spa parks which will provide them good services at affordable prices.
The threat of the substitutes:
The threat of substitutes in New Zealand is medium. It is true that the country is filled with some amazing spa park. But most of the parks are only limited to bathing services in mineral water. on the other hand, Maruia park provides relaxation massages and an opportunity to explore the area.
The rivalry of the existing companies:
The rivalry of the spa parks with Maruia spa park is high. In New Zealand, there are some mineral and thermal pool parks. They are Oropi Pools of Tauranga, Femland Spa, Canterbury's Hanmer Springs (Springs, 2019). So, in New Zealand, several options are available for taking baths in spa parks. These spa parks give tough competition to Maruia park and many people nowadays prefer to visit these parks.
Image 1: Porter's five forces
(Source: Created by the author)
- Alshaher, A. A. (2013). The McKinsey 7S model framework for e-learning system readiness assessment. Retrieved March 2, 2019, from https://pdfs.semanticscholar.org/ef13/23cd97b5fa90a053e454d419148a2f0028d4.pdf
- Fletcher, J. (2018). Southern Stays: Maruia Hot Springs a treat among natural beauty. Retrieved March 2, 2019, from https://www.stuff.co.nz/the-press/christchurch-life/102838029/southern-stays-maruia-hot-springs-a-treat-among-natural-beauty?rm=a
- Gökdeniz, I. K. (2017). Strategic assessment based on 7S McKinsey model for a business by using analytic network process (ANP). Retrieved March 2, 2019, from http://hrmars.com/hrmars_papers/Strategic_Assessment_based_on_7S_McKinsey_Model_for_a_Business_by_Using_Analytic_Network_Process_(ANP).pdf
- Hanks, G. (2019). Legal Issues in Spa Business. Retrieved March 2, 2019, from https://smallbusiness.chron.com/legal-issues-spa-business-67825.html
- Springs, M. H. (2019). Maruia Hot Springs. Retrieved March 2, 2019, from http://www.maruiahotsprings.nz
- thaisquarespa.com. (2019). Top 10 Reasons to Visit a Spa. Retrieved March 2, 2019, from https://thaisquarespa.com/blog/top-10-reasons-to-visit-a-spa
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