American Council of International Strategies Research Papers

Considering the case of American Council of International Strategies (ACIS), it becomes clear that the organization is poised for tremendous growth in the new millennia.  However, this growth is hampered with the reality that the company will not be able to maintain the level of personal interaction that it provides for each client.  Although ACIS has managed to retain its individual autonomy while functioning as a subsidiary of a larger travel organization, senior management is well aware of the potential for future problems.  As ACIS has a clearly defined customer base and is well established an environmental and SWOT analysis coupled with the development and implementation of a company wide mission and objectives would keep the company clearly focused and able to maintain its competitive edge.

ACIS operates in a market that is highly contingent upon three variables: negative activity in foreign countries—i.e. terrorism and war; the price of airline fares; and the valuation of the dollar on the market.  Although much of these factors are beyond the control of the company, its decision to utilize a $35 processing fee and a $150 credit toward the purchase of another ACIS tour will give the company the flexibility to remain solvent during times of financial crisis.

Because ACIS, in conjunction with EF has managed to secure a solid market position, it seems that, while its prices are somewhat higher than the competition, the company can afford this luxury because of its reputation.  As ACIS has built its infrastructure on its reputation, it is important that the company retain this asset at all costs.  Because ACIS is a service oriented business, its reputation must remain in tact if the company is to remain viable during changes in financial outlooks.

Arguably, the company’s greatest strength is its reputation.  Time and time again, ACIS has proven that it is capable of outperforming its competitors:

• After the terrorist attacks at Rome’s airports in 1985, ACIS was flooded with a number of requests to cancel travel.  Although the company could have strictly enforced its policy to keep a $250 deposit on each cancellation, it decided instead to keep a $35 processing fee and $150 for a credit on another travel package.  This move helped to avoid financial disaster for the company and ensure the continued patronage of its clients.
• In order to guarantee customer satisfaction, ACIS “collected statistical reports about satisfaction rating for each hotel and every meal, the performance of the courier, and overall pre-departure service and the educational content of the trip.” These statistics were utilized when making future tour reservations.  If any of the services did not meet at least an “80 percent good/excellent rating, 15 percent average, and not more than fiver percent poor” the service was discontinued from the program. 

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