Developing and implementing a strategy for Posadas Amazonas in Peru so that the local community and the business can co-exist through a mutually beneficial relationship.

1. Strategy
Implementation
Group B
Kundan Baduri – Mariana Penzini – Daniel Pires – Holly
Ann Wright – Shaheen Samavati – Bertrand Rousseau

2. Agenda
Description / Analysis
 Problems / Recommendations
 Risks / Implementation

3. 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)

4. 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

5. Agenda
 Description / Analysis
Problems / Recommendations
 Risks / Implementation

6. The questions
 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

7. Current problems
Internal
• Access to employment pool
conflicts in the • Relationships between Natives and Mestizos
community
• High turnover
Limited • Lack of responsibility
productivity • Limited pool of qualified personnel
• No performance benchmark
Unreliable
• Unreliable airline service
external • Limited supply under legal forms
services

8. Improvement strategy
Create incentives (rules, rewards,
training) to increase our partners’
(community, suppliers) commitment,
performance and responsibility

9. Current problems
Internal
• Access to employment pool
conflicts in the • Trigger the commitment of
• Relationships between Natives and Mestizos
community the Management
• Introduce performance
• High turnover
Limited Partnerships with other
• rewards
• Lack of responsibility and merit-based
productivity lodges
• Limited pool of qualified personnel pool
access to the work
• No performance benchmark
•• Partnership withwith airlines
Tour packages government
(Transition to legal market)
Unreliable
external • Involve local authorities
• Unreliable airline service
• Limited Suppliers legal forms
• supply under education program
services (subsidizing, regulations of air
(transport, promotion of
Coaching for legal
invoicing)
ecotourism)

10. Steps
Generate
awareness in the
community Negotiate with
Set performance
Airlines
thresholds
Develop Lodge
syndicate Foster
Train suppliers
competition
Make contact
with authorities

11. Agenda
 Description / Analysis
 Problems / Recommendations
Risks / Implementation

12. Risks
 Interfere
in internal conflicts of the
community
 Failureto buy in the community for new
performance standards

13. 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

14. 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?

15. Posada Amazonas Balanced Scorecard
Strategic Themes Strategic Objectives Strategic Measures
Profitability Profitable at lodge level • Increase occupancy rates
• Repayment of debt
Financial
Profits reinvested in community • Reinvestment in company
development • Control marketing expenses
• Market premium
Delight the Customer with an Best in class experience (service, expeditions, • Service Quality Survey
Customer
initiation to jungle experience entertainment, etc) • Turnover rate
• Loyalty (RFE)
Learn how partnership between private Transfer skills to locals • Quality Survey
companies and native communities Service Quality • Low Turnover rate
works
Constant Supply of products
Internal
• Involvement of the Management
Community satisfaction Community commitment to take over
committee
responsibilities • Emergence of leaders
Employment rates • Successful transition
Higher income in the community # of jobs offered
Less migration • Income and Levels of Nutrition
• # of people in the community
Be recognized as the leaders in this Maintain high turnover rates of • Quality of services
segment in Peru and Internationally
among this segment
customer • Uniqueness of experience
Learning
Autonomy of the community
Transfer skills and responsibilities Maintain training frequency
Growth
Transfer training ability to the community Increase # of rained managers
&