The organization is a creature of the environment- its strengths, weaknesses, opportunities and threats are a function of the environment it survives and grows in. The environment is also dynamic, constantly changing. For Lindsay Theme Park, the key environmental factors include: Historical and evolutionary environment: The growth of theme parks across Europe which are largely a function of democratization of entertainment and the result of the emergence of entertainment as a lifestyle necessity is evident.
“The first European pleasure gardens located in the outskirts of the towns date from the seventeenth century… Some of these are still kept as gardens while the Prater [as we shall see later on], has become one of the most characteristic amusement parks in Europe, and Denmark’s Tivoli has been turned into a theme park. These parks symbolize the democratization of the aristocracy’s ludic pursuits. ” (Clave. 2007. Page 7). Economic environment: The urge to innovate and grow has brought about the transformation in parks as discussed above.
Simple pleasure gardens have grown into amusement parks with sports, games, thrill and adventure experiences, all targeted at people seeking entertainment other than the traditional movie or dining experience. While the quest for fresh means of entertainment has been the main driver from the demand side, the pressure to grow the revenue model has been the growth driver for the entire industry on the supply side. The propensity to spend, of a country, city or individual, is also a determinant of the success or failure of a theme park. Personal Disposable Incomes and leisure time availability are very important factors to be considered.
Social, psychological, cultural, ethnic environment: We club these factors together since they contribute immensely to the demand pattern. Seasonality and related activities like tourism and hospitality are important factors in our business, since our revenue generation is governed by geographical location, accessibility, peoples orientation to holidaying and entertainment, season for visitors, number of visitors, their preference for our entertainment offerings, proximity to other tourist attractions, quality of our service and service offerings.
Political environment: Often, a world event impacts our bottom lines; while we may be offering the best experience in entertainment, the socio political upheaval may upset the apple cart. Political unrest may inhibit tourism; terrorist activities may deter international travel; financial crunch may curtail spends on holiday and entertainment, all of which hit us.
Legal and Regulatory environment: In terms of the legal aspects governing the proposal and setting up of theme parks, and the laws applicable to the business procedure, it is important for us to impact this environment factor to our advantage, through appropriate industry intervention and lobbying. The international travellers who are potential customers are subject to laws while entering United Kingdom, and as a business lobby, it is imperative that we make the experience wholesome for them.
In view of the current volatility in global markets and relationships, it is becoming imperative to take care of these factors. Industry Innovation and Technological environment: These factors may include competition, people, human resource, oligopolistic nature of the industry where there are few large players posing barriers to entry, capital intensive nature of the business, innovation through technology applications (theme parks are getting increasingly technology driven); global economic conditions and foreign exchange, trans-national collaborations, all of which impact our business considerably.
“Quickly shifting customer expectations and continuously emerging global competition… have drastically shortened product life cycles. ”(Robbins & Coulter. 2006. Page 25).