MANAGEMENT REPORT ON KLOOK

Name:

Date: 22019

Student’s ID:
1. Introduction.

The purpose of this management report is manage and generalize the company’s

elements. Firstly, this report will give the company’s background, then will provide a

market outlook consisting of a SWOT analysis on Klook. In addition, it will explain one

ethics approach, one CSR approach, four key elements to a Plan, one aspect of a company

culture, the most appropriate organisation structure and one contemporary leadership.

Lastly, this report will recommend the company progresses in the next five years and ends

with general conclusion.

This report is going to focus on Klook, which is one of the world’s leading tourist

and service reservation platforms and was founded in 2014 by three co-founders (Ethan,

Eric and Bernie) based in HongKong. Klook provides travelers an easy and exclusive way

of discovering and book attractions, local experiences and services. While other online

travel organizations provide flights and hotel bookings, Klook meets the requirements of

tourists in the destination and offers local transport, attraction tickets, day tours and

outdoor tours (Lo,2017).

2. SWOT Analysis.

SWOT Analysis (strengths, weaknesses, opportunities and threats) is the basis for

assessing the competitive position of a company and for developing strategic planning.

SWOT analysis evaluates both internal and external, present and future prospective

variables(Grant, 2019). The SWOT analysis is really important for one business because it
 can assist you get a clearer view on the prospective threats and possibilities that one

company faces, it provides you a opportunity to develop solid strategies and policies for

how you want this company to function to become successful.

The SWOT analysis of Klook company will be provided in Table 1:

Table 1: SWOT Analysis of Klook

S W
1. Digital Solutions Application 1. Quality Control

 Travel operation solutions such as merchant app  Difficulties in mornitoring all service partners

and QR code based e-voucher redemption 2. Narrow Customer Base

2. Comprehensive Platform and Services  Most of the customers are from Asia (32.52%

 Provide VIP services, e.g. Skip-the-line tickets at from Taiwan, 10.59% from Hong Kong)

Ngong Ping 360 3. Security

 Travellers get what they need in ONE application  Data breach incident

3. Strong Financial Profile

 Fund raising of US$300 million in Series D funding

 Backup by large and well-known worldwide

companies

 Offer comparatively low prices

4. Superior Service
  Instant booking guarantee

 Pre-launch quality assurance

5. Strong Digital Marketing

High presence in social media (1.7M Facebook

likes, 177k Instagram followers and 5.06k

Twitter followers)

O T
1. Technological Improvements 1. Problems in Government

 Further improvement in the related gadgets snd  Hong Kong have been fighting in recent days

technology (e.g. Merchant App, Mobile Payment, 2. Online Transaction Obstacles

QR code)  Low online transaction for tours and activities

 Big Data – advancing analysis of tours and industry (i.e. 15%)

trend  Low mobile payment penetration in less-

2. Booming Market developed countries

 A 10% annual growth since 2016 3. Competitive Industry

3. New Tourist Hotspots  Overcrowded market with overseas competitors

 More places discovered to be worth visiting  Hard to differentiate itself in the market

4. Demand for In-depth Travels  More accountability towards investors

 Increasing demand for in-depth cultural experience, 4. Technological

customization and autonomy  Security issues about the mobile payment and
 customer privacy

From the above table, This report is going to discuss about Klook’s SWOT

Analysis to make this report for more benefits. Firstly, they are strong about customer

service in superior. Klook's services are accessible in eight languages in 36 currencies with

a team of over 600 through 16 offices globally that can solve problems immediately when

clients need. Secondly is about their weaknesses, because Klook is an online app that

customers have to fill all their informations as well as their credit cards for payment but

this action really easy to be stolen by network hackers. Following that is about their

opportunities, Klook is supported from those suppliers like Merchants App, Mobile

Payment, QR that can help clients to choose service types then pay without left from their

houses in just one tap. Last but not least, Klook company has some as large rivals as

GetYourGuide, Musement and Peek who coming from different parts of the world with

means it extremely difficult to Klook for building the unique environment.

3. Ethics.

Ethics, also known as moral philosophy, concerned the discipline with what is

morally good and bad or morally right and wrong. The word also applies to any moral

values or principles system or theory (Singer, 2019). Ethics are important for the business

organization because an ethical organization will also build trust in the hearts of customers

and get a long-term reputation for success. Most of organization have four ways to

approach their ethical decisions included Utilitarianism, Individualism, Right Approach

and Justice Approach with distributive justice or procedural justice. The first way is

utilitarianism approach that decisions should be advantage to the most people and Klook

has followed in recent years. Klook is a useful tool that has improved its intrinsic value

while meeting their clients needs by providing quality and secure services. Customers easy

to find the best advantage ways for them to travel in place they’ve never before while

suppliers increase their profits.

4. CSR.

Corporate Social Responsibility (CSR) is a self-regulating business model that

helps a business be socially responsible to itself, its stakeholders, and the general public

(Chen, 2019). CSR’s incredibly important in business because it’s an evidence that

demonstrates one company can take an interest in wider social issues then easily attract

clients who share the same values. Hence, it makes good business to operate in a

sustainable manner. Klook need to choose an Accommodation Approach means a business

believes that social responsibility is essential and perhaps as important as making a profit.

Example like the before Ocean Park Panda project, clients would become one keeper at

Ocean Park to discover the threats to wild pandas in their natural environment and find out

what you can do to keep them safe. This project has been very successful and attracted a

large number of customers.

5. Planning.
 According to Business Jargons article, planning is an intellectual method that sets

the goals, develops different ways of achieving these goals by an organization

(“Planning”,n.d). The success of any company depends on planning so it makes planning

become really essential. When an enterprise has a plan to follow, managers are better able

to prepare themselves for the future. A corporate plan focuses on the company and unites

staff towards common objectives for growth.

Diagram of planning process (4 keys elements to a plan):

Objectives Actions Resources Implementation

Objectives Klook’s objective is to bring the world closer together by linking the best of

what a destination has to give to tourists from around the world.

Actions Firstly, Klook need to open some capital calls from large funds and investors.

With the involvement of already-invested funds such as Sequoia China, Matrix

 Partners, CTV and OurCrowd, Klook is targeting a major investor is the

Softbank Vision Fund. Then, give and service the best price of tickets or

activities of destrination where travellers have dicided to enjoy. Some interesting

offers is giving vouchers to clients at some exchange money stores and air ticket

selling place. Further more, Klook must responsible and quickly solve network

risks for customers. Finally, increasing marketing on social media like

Facebook, Instagram, Switter, ect then keep and show feedbacks from clients

who used this app.

Resources The first factors is about Financial, Klook should set up some plans to reduce

their costs. For examples, increasing the use of social media and decreasing

traditional marketing, Organizing virtual meetings to minimize travel costs and

the need for physical room can be eliminated by virtual offices. The next factor

is about human and equipment resources, Klook should establish some plans to

decrease a number of their HR costs and equipment costs. For example, firing

some emplyees yearly if they don’t have good behaviors and advantage

outcomes, Buying used equipment or discuss the needed equipment with

investors

Implementation This project lasted for 6 months. It starts from 1st October 2019 to 1 st April

2020
6. Organizational Culture.

Organizational culture is essentially the values, behaviors, and shared vision

contributing to an organization's environment (Forsey,n.d). Organizational culture is really

important to business because it has an enormous effect on the capacity of the company to

succeed and make it large in today's competitive globe. Klook has to use leadership to

manage their cutural processes. The first step towards developing process culture is to

identify the owner who acts as the custodian and provides the household for the process.

Then choose the right people that based on evaluation and ability to set up the rules and

process framework for whole common environment of business.

7. Organising.

Organizing is the organizational method that aims to identify the role of each person

(manager and operator) in achieving company goals (Talathi,n.d). The organization is vital

to the long-term prosperity of one business. A structured job environment encourages team

spirit along with the establishment of a sense of structure and order.

One area just have only one supervisor like Anita Ngai is a cheft of

Unity of command Revenue Officer, Emma Lee is director of Business Development

and David Liu is chief of Product Officer

Using Decentralization types of manage which means lower-level
Centralisation of
employees can provide input, give the feedback or totally can make
detentralization
decisions
Span of control Using Wide types of organizational structure which means this
 company has 726 employees are divided into 12 offices from around

the world with fewer levels of managers

Using High formalisation which means just one CEO is Ethan Lin

Formalisation with many rules and strict control to help business follow to one

common objective

Following that, this report is going to show the divisional structure for Klook.

Divisional structure is also known as a product framework, it break down their

organisation into a number of separate branches (Rappa,n.d). Since the divisional structure

is based on comprehensive power delegation, each division's performance can be directly

evaluated. Furthermore, executives can be held responsible for their division's sales and

profits. As a consequence, division executives usually do better, and the morale of

employees is generally greater. In addition, there may be more specific divisional

expertise.

8. Leadership.

Leadership is a method of social influence that maximizes other people's attempts to

achieve an objective (Steven,n.d). This report is suggesting the contingency theories for

management. The Contingency Leadership Theory states that the effectiveness of one leader

depends on how his leadership is consistent with the situation. First of all, Klook have to

classify the professional groups needed for a company and then understand the external and

internal impact factors affecting the structure of the organization such as: Organizational size,

technology in use, leadership style, and how the organization can adapt to strategic changes.

Finally, employees empowered to evaluate managers after each project.

9. Motivation.

Motivation is defined as the process of initiating, guiding and maintaining goal-

oriented behaviors (Cherry, 2019). Klook should apply the Maslow’s Hierachy of Needs to

response the needs of employees. Maslow's Needs Hierarchy is a common motivational

theory that explains how our actions as beings are driven by our willingness to satisfy

particular needs. From the bottom to the top of pyramid of Maslow’s Hierachy of Needs,

the employees’ initial emphasis on the lower order needs of physiological and security,

Klook must guarantee a secure and professional working atmosphere for its staff with

appropriate wages and stable income. With these demands met, an employees will want to

meet their greater level of esteem and self-actualization needs, Klook should enable staff to

take part in operational decision-making to satisfy the requirements of self-esteem staff.

Give them a significant job title, work privileges, prizes, business cards, workspaces, etc.,

especially if the worker achieves excellent outcomes.

10. Strategic Recommendations.

This report will provide some recommendations about company strategic in the next

5 years to help Klook success and have long-term survival. The first recommendation

would be that Klook can expand their offices in more countries of Asian, Europe or Africa.

This will enable Klook to make a better profit and become more competitive with other

tourism industries. The second recommendation would be that Klook should expand their

business like collaborating with more suppliers such as JR Pass of Japan, it helps Klook

have more diverse activities at the destination of the travellers. Finally, Klook's marketing
strategy can be improved. Building a more deluxe and elegant effect on its organisation

will enable clients to feel more superior with a revised perspective.

11. Conclusion.

In conclusion, Klook has the ability to succeed in many countries. Although there

are many other competitive rivalries, Klook will be able to prosper consistently as Klook is

the first company working on this type of service with total funding up to $225M. As

mentioned in SWOT analysis, Klook has had a booming market with a 10% annual growth

since 2016 and It will increase even more in the coming years.

WORD COUNT: 2153 words

Reference List:

Chen,J.(2019, February 11). Corporate Social Responsibility (CSR).

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Forsey,C.(n.d). What Organizational Culture Is & Why It Matters. Retrieved from:

https://blog.hubspot.com/marketing/organizational-culture

Grant,M.(2019, April 27). Strength, Weakness, Opportunity, and Threat (SWOT) Analysis. Retrieved from
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Rappa,F.(n.d). The Advantages of Divisional Structure in Organizations. Retrieved from:

https://smallbusiness.chron.com/advantages-divisional-structure-organizations-26170.html

Singer,P.(2019, August 12). Ethics PHILOSOPHY. Retrieved from:

https://www.britannica.com/topic/ethics-philosophy

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