SCS – Nov 2019 – L3 – Strategic Growth and Challenges in Ghana’s Tourism Industry

The case study focuses on Adofo Boateng and Coffie Oduro, who founded Ghanalux Ltd, a luxury tour company in Ghana. It explores the company’s growth trajectory, from its humble beginnings to its current operations in a growing but underdeveloped tourism industry. Ghanalux organizes premium tours for affluent tourists from the northeastern United States and aims to expand beyond its current market while maintaining its reputation for high-quality service.

Key challenges include talent retention, financing operations, and managing growth in a fragmented industry. The directors discuss various strategies for growth, such as increasing tour numbers, developing bespoke tours, and forming strategic alliances with hotels. Financial challenges, such as managing working capital and reducing the company’s reliance on bank overdrafts, are critical to the company’s future sustainability.

The study also covers governance issues, where the directors consider restructuring the board to include a non-executive director or promoting a senior manager from within. Ethical concerns related to customer safety, security, and service quality also arise, prompting discussions on internal controls and company ethics.

Strategic decisions covered include potential mergers, performance measurement systems (such as the balanced scorecard), and the importance of adapting marketing strategies to expand into new regions. The directors must evaluate the feasibility, suitability, and acceptability of these strategies to ensure continued growth in a competitive industry.