Bulletin UASVM Horticulture, 66(2)/2009

Print ISSN 1843-5254; Electronic ISSN 1843-5394

Strategic Options for Regional Products as a Tool for Regional

Development
Renata JANUSZEWSKA1), Jacques VIAENE1), Chantal GHEYSEN2),
Danil DE STEUR2)
1)
Department Agricultural Economics, Gent University, Coupure Links 653, 9000 Gent,
Belgium, renata.januszewska@ugent.be, jacques.viaene@ugent.be
2)
Economic Council of East Flanders (EROV), Seminariestraat 2, 9000 Gent, Belgium
chantal.gheysen@oost-vlaanderen.be, daniel.de.steur@oost-vlaanderen.be

Abstract. The objective of the study is to identify and delineate the strategic options for
tourism development in Flanders, Belgium, through the focus on regional products promotion and
utilization of Strategic Orientation Round (SOR) approach. Three steps of the strategic planning
process for tourism development require application of SOR analysis, i.e. a qualitative research
method focusing on the internal and external analysis of the region and its environment. The external
(opportunities and threats) and internal (strengths and weaknesses) analyses are confronted in the
SWOT matrix and four groups of strategic options for regional development are developed
corresponding to maxi-maxi strategy (attack), mini-maxi strategy (clean-ship), maxi-mini strategy
(defence), and mini-mini strategy (crisis). Three mixed focus groups interviews and brainstorming
sessions were conducted with the policy makers, regional initiators, staff members of the Economic
Council of Flanders, and researchers of Gent University. Results show that SOR analysis is a useful
tool in identifying the challenges facing the Flanders region. A strong focus on the tourism activities in
the mini-maxi field, through promotion of regional products and support to the network of SMEs, is a
key element in future regional policy.

Keywords: regional products, Flanders, Strategic Orientation Round

INTRODUCTION

Regions of origin play an important role in determining consumer attitudes toward and
willingness to pay for speciality foods. Regional imagery (use of regional images) is
increasingly being recognized as having commercial value by providing a subjective source of
quality differentiation (Henchion and McIntyre, 1999). Regional images can be considered as
a cue for other characteristics, such as sensory or process related ones, or they may represent a
value for its affective dimension. Regional images are sources of competitive advantage
utilized in the strategic management while developing a strong destination brand. Such brands
are especially important for tourists who now have a wide choice of potential destination, and
the image of place or region is a decisive factor in the tourism destination choice process
(Mayo, 1975; Silvestre and Correia, 2005). For that reason, the local governments policies
often transform the concept of a typical, local and regional food culture into a tool serving
economic goals (Cavicchi et al., 2004).
Regional images are used in tourism development as a tool in tourism policy that
belongs to one of the most important elements of modern economy (Vanhove, 2005). Tourism
policy is defined as a set of regulations, rules, guidelines, directives, and

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development/promotion objectives and strategies that provide a framework for the collective
and individual decisions directly affecting tourism development (Goeldner et al., 2000).
The components of tourism policy refer to the demand policy, traditionally called the
marketing mix or operational marketing: product policy, distribution policy, promotion policy
and price policy. Other policy instruments include research, training, finance and the macro-
management organizational structure. The tourism policy instruments belong to strategic
action programs (Goeldner et al., 2000). Positioning of regional products in the competitive
consumer-markets depends on the effective use of the tourism policy instruments.
It is understood that regional product comprises a special quality, authentic material
and structure, competitiveness of label and trademark, conversional package, and/or offers a
special service. It is recognized as a tool for tourism development and co-operation device.
Among various factors upon which the product may be called regional are
territoriality, typicity, tradition, collectivity, and aspects related to regional agriculture,
environment and effects of tourism on local economy. Tregear (2001) makes an assumption
about the complementarity between the use of typicity as a marketing tool and the
preservation of typical products as socio-culturally valuable entities. The name of the regional
product is also associated with aspects such as: natural, Bourgeon, cosy, artisan and authentic
(Wolf et al. 2004). There are three types of regional products (Vlieger et al, 1999). First, there
are products explicitly related to farm products and the agriculture of the region. Second are
the traditional regional specialities and third are industrial regional products.
In this paper, the Strategic Orientation Round (SOR) method is explained and its
application to the regional products as tool for tourism development is presented. The
objective of the study was to identify and delineate the strategic options for tourism
development in Flanders through the focus on regional products promotion and utilization of
SOR approach.
2. RESEARCH FRAMEWORK AND METHODOLOGY

2.1. RESEARCH FRAMEWORK

In strategic planning, the three basic questions and steps have to be answered
(Frambach and Nijssen, 1995; Vanhove, 2005).
In the first step, answering the question Where do we want to go? requires
definition of the problem through a set up of clear vision/mission and strategic objectives.
The idea is to broaden and deepen the strategic approach towards regional products. The
corresponding mission is to upgrade small medium enterprises in the food sector by value
added from hospitability marketing. New activity plans include creation of an interregional
strategy to enhance regional economy and tourism as a tool for regional development.
The second step of strategic planning process focuses on the question Where are we
now? It is a crucial step involving situational analysis that is split to the external
opportunities and threats and internal strengths and weaknesses.
In the third step, the answer to the question How do we get there? has to be
achieved. The aim of the SWOT analysis is to identify the major attention points. The
summary SWOT table has to be analysed in form of the diagnosis in order to reach previously
planned objectives or targets. SWOT analysis brings together the internal and external audit
and suggests that the region can obtain sustained competitive advantages by implementing
strategies that exploit their internal strengths, through responding to environmental
opportunities, while neutralizing external threat and avoiding internal weaknesses (Horn et al.,
1994, Saloner et al. 2001).

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 The Strategic Orientation Round (SOR) approach is applied in order to develop
strategic action plans or options (Frambach and Nijssen, 1995). In the SOR confrontation
matrix, the cells are indicating the combinations of O and T with S and W. The matrix can
directly be used for listing the arguments and risks for the different strategic options and
sketching main fields of action. The coordinates of Os Ts, Ws, and Ss may indicate the
specific combination a proposal refers to (e.g. OS1 for a proposal in the maxi-maxi field). To
every cell of this matrix a score is given by experts to come to priority options. The individual
scores are aggregated. The cells with a significant high total score are the main strategic
options. Defining the strategic options by pair-wise combining of OT and SW is illustrated in
Tab. 1.
Tab. 1
Using SWOT Results as Framework for Strategy Options

OPPORTUNITIES THREATS
STRENGTHS Maxi-maxi strategy Maxi-mini strategy
ATTACK DEFENCE
WEAKNESSES Mini-maxi strategy Mini-mini strategy
CLEAN SHIP CRISIS
S-O To what extend can this strength help to use the opportunity better?
S-T To what extend can we use this strength to fight this threat?
W-O To what extend does this weakness hinder making use of this opportunity?
W-T To what extend does this weakness make this threat more threatening?

2.2. RESEARCH METHODOLOGY

Results of the first step of the strategic planning process are obtained during
brainstorming sessions with Flemish policy makers. The problem, vision and mission are
clearly defined taking into account the existing experience from the activities in the Butchers
Hall and future plans for tourism development prepared by Flanders government.
The second step is achieved through focus groups, i.e. a cost-effective qualitative
method of gathering insightful aspects about a research topic. Seven people representing
regional initiators, staff members and researchers composed the three focus groups. In this
way, scientists and practitioners are brought together to support a comprehensive approach of
the study. Efficiency of the process was enhanced by following a clearly defined script
consisting of several points such as: defining the problem; establishing the groups and plan
for the sessions; selection of the moderator and the assistant moderator; conducting the focus
groups discussions; analysing the information (Carson et al. 2001).
The focus group sessions resulted in six opportunities, four threats, five strengths and
four weaknesses focusing on regional products as a tool for tourism development in Flanders.
The audits results were further developed during strategic options workshops. The moderator
used the following sequence of tasks during the sessions (Horn et al. 1994):
The moderator proposes a topic to be treated and formulates an open question for the
group;
Each participant writes his statements on cards;
The moderator attaches the individual cards to the pin board;
In the next step, the cards, which fall under the same subject, are clustered and the
SWOT components are defined.
In the third step the project leaders develop SOR analyses. The matrix of SWOT is
directly used for systematic discussion of pair-wise combination of OT and SW, development
of different strategic options and sketching main fields of action. Maximum twelve points are
given per column where combinations of independent elements are presented. When a

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maximum attention is required, three points in total are assigned. Two points are given to the
situation with a relevant attention while low attention receives one point.
SOR is a tool used to come up with objectives based on the consensus strategic
agenda. The results of SWOT analysis compose the framework for choosing a strategy
oriented towards meeting the demands of the environment while taking into account the
existing internal potential. The internal weaknesses and strengths, which are of strategic
importance are selected and analysed in detail. This analysis provides the basis for specific
action plans while implementing the strategy (McDonald, 1992; Haberberg and Rieple, 2001).

3. ANALYSIS OF STRATEGIC OPTIONS ABOUT REGIONAL PRODUCTS AND TOURISM

3.1. EXTERNAL ANALYSIS: OPPORTUNITIES AND THREATS
The focus group sessions resulted in six opportunities and four threats focusing on
regional products as a tool for tourism development in Flanders (Tab. 2).
Tab. 2
Opportunities and Threats of Flanders Regional Products and Tourism
OPPORTUNITIES THREATS
O1. High income region T1. Globalisation trend
O2. Cultural heritage/tradition T2. Food safety legislation
O3. Quality food image and entertainment T3. Imported products
O4. Tourism is for everyone T4. High wage cost
O5. Four generations on the move
O6. Food cluster
The economic growth is the first opportunity of Flanders that during the previous
decade resulted in a decreasing share of food till about 15 % in 2003, but an increasing share
of services and tourism. The regional and local government improved infrastructure and
supported initiatives and investments. Globalisation trend is the most important threat because
of the mega trend towards cheap food is promoted by multinationals in open world economy
based on big brands. Globalisation tendency is threat for emerging regional products and
hospitability approach.

3.2. INTERNAL ANALYSIS: STRENGTHS AND WEAKNESSES

The focus group sessions resulted in five strengths and four weaknesses focusing on
regional products as a tool for tourism development in Flanders (Tab. 3).
The most important strength is related to motivated entrepreneurs. Working in a highly
competitive environment, mostly all food companies are small and medium enterprises.
Characteristic for the sector is the high involvement of the family running the business. The
general attitude and behaviour of these small entrepreneurs is to develop the business in the
own region and extend it further to other regions. On the side of weaknesses, one may see that
there is no direct link with the region, which meant that Flemish people have not a particular
identity or togetherness. The feeling of belonging to the same region is rather local or broader
than Flanders.
Tab. 3
Strengths and Weaknesses of Flanders Regional Products and Tourism
STRENGTHS WEAKNESSES
S1. Motivated entrepreneurs W1. No direct link with the region Flanders
S2. High innovation level W2. Management and marketing capacity
S3. Flexibility and diversity W3. Difficulties to start-up
S4. High quality
W4. Low financial means and profitability
S5. Institutional support

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 4. SOR ANALYSIS
The results of the analyses of strengths, weaknesses, opportunities and threats are
jointly ranked according to priority or strategic importance. In order to get a representative
view of the priorities, each participant is given a limited number of 12 priority points to be
distributed for each of 10 columns of SWOT matrix. A total of 120 points are given for all
columns.
Tab. 4 shows the SOR confrontation matrix. The most weighted strategic option is
the maxi-maxi approach (Attack). A total of 45 points indicate that the attack strategies refer
to the existing situation, which is considered as important as positive. There is a process of
communication about the cultural heritage and regional products, the innovative attitude and
networking within the food cluster exists, high quality is a driving element in the regional
promotion strategy and the institutional support necessary for the small and medium
enterprises.
Tab. 4
SOR Confrontation Matrix for Flanders Regional Products and Tourism

OPPORTUNITIES THREATS
STRENGT ATTACK = CHANCES TAKEABLE DEFENSE = DANGER IMMINENT
HS Maxi-maxi strategy Maxi-mini strategy
Total 45 points Total 24 points
SO1: The major idea is to communicate about ST1: The major recommendation is to
the potential of cultural heritage and regional simplify legislation and to have a one
food to enhance tourism to motivated information desk for entrepreneurs.
entrepreneurs. ST2: Innovation is considered as a tool to
SO2: Bring an innovation attitude in the small compete imported quality food.
food firms by networking, focusing on ST3: Quality management is an option to
tourism. translate food safety rules into market
SO3: High quality is the major tool for niche potential even on export markets.
markets and particular tourism groups.
SO4: Institutional support is necessary to build
on food clusters.

WEAK- CLEAN SHIP = CHANCES BLOCKED CRISIS = DANGER PROBABILITY

NESSES Mini-maxi strategy
Total 27 points
WO1: The administrative province of Flanders
is clear. The emotional feeling of being
Flemish is not developed. Initiatives have to
be taken to create that feeling for example
regional food basket.
WO2: Develop a strategic management
approach in the food sector.
WO3: To avoid start up problems focus on
extension and communication to the
entrepreneurs in the food sector and tourism
sector. By the food cluster the big enterprises
can supervise small ones (warm nest
approach).
WO4: Low profitability and high investment
costs are rather limiting factors to develop
regional products.
Mini-mini strategy
Total 24 points
WT1: The globalisation trend is dominating
the regional product approach and after a few
years the initiators lose interest in regional
product initiatives. A non-growth strategy for
regional products as a tool for tourism has to
be avoided.
WT2: An increased opportunistic behaviour
and marginal short-term actions have to be
avoided.
WT3: The problems of failed starters may not
result in non-legal activities, not taking into
considerations food safety and social security
rules.
WT4: Low profitability in general and even
losses for particular regional products cannot
result in a destroying domino effect for other
regional activities.

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 The most challenging strategic options are therefore found in the mini-maxi strategic
field (Clean-Ship) that receives a total of 27 points. It is well known that clean-ship strategy
holds a special attraction for business development projects. Building on the internal strength
of clear environment, the regional feelings can be enhanced and a truly strategic management
approach in the food sector could be developed. The warm nest approach could contribute to
networking and extension of value-added activities while trying to increase profitability and
decrease investment costs of new business ventures.
The maxi-mini strategy (Defence) builds on existing strengths in order to fight off
threats. With a total of 24 points, the strategic defence options are less preferred. The major
focus is to defend market share of regional products. The main fields of action are to create a
one-information desk for entrepreneurs. Further, innovation development is a key factor for
competitiveness. Another challenge is to improve quality management of the regional
products as a tool to reinforce customer awareness of superior taste.
By the mini-mini strategy (Crisis) the idea is to minimize the existing weaknesses in
order to fight off threats. Twenty-four points are given to this field of strategic options. The
regional product initiatives have to be linked with tourism activities focussing on cultural
heritage and entertainment. With the aim to develop the specific market niche of regional
products a hospitality marketing approach has to be implemented. The difficulties of a starting
business and low profitability may not lead to an opportunistic behaviour, in order to keep
customers.

5. DISCUSSION

Regional development policy encompasses all strategic actions related to language,

literature, culture and religion and many European regions can be identified by means of
historical names of provinces and geographical areas. Not all regional governments provide
the chances and opportunities for the public who cares about small fatherlands. Only some
help in bounding people with the place of their residence by presenting its history and
achievements. That requires a necessity of building the regional education program and a
formation shaping historical thinking and sensibility. In this way, the created feeling of pride
concerns care about the benefit of a given community, co-responsibility for it and strive for its
prosperity (Sepiol, 2000).
The process must be spread over years or even generations and it is difficult to
overestimate the meaning of development based on authentic and subsidiary structures of the
civic society. Additionally, creation of appropriate foundations for regional development must
be understood as an important part of the industrial development. The policy of the regional
development must give the perspective for interregional actions, promotion of the whole
country and intensification of industrial co-operation (Sepiol, 2000). The Commission of the
European Communities considers investment in and promotion of speciality products and
tourism as one of most important strategic axis, related to building local capacity for
employment and diversification (SEC, 2005).
It can be expected that assigning points in SOR analysis pose less knowledge
problems since it is more down to earth and usually nearer to the experience background of
participants. However, people may feel far more personally involved and tension may be
higher. In any case, it has to be assured that the discussion of weaknesses and strengths is
geared towards the opportunities and threats identified before (Carson et al., 1995).

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 The future development of economic actions in the Flanders will certainly focus on
tourism activities integrating different actors. The strategic options developed by SOR
analysis serve as possible guidelines for these actions.

6. CONCLUSIONS

An intense cooperation between Flemish institutions and regional actors shows that
new challenges and opportunities for tourism development and regional products in Flanders
are highly awaited. In order to understand the requirements for the future strategic actions, the
SOR analysis was worked out for the region and finally new strategic options for upgrading
tourism were discussed.
The most challenging strategic options are found in the field Clean-Ship that holds a
special attraction for business development projects. Building on the internal strength of clear
environment, the regional image can be enhanced and a truly strategic management approach
in the food sector could be developed. The warm nest approach could contribute to
networking and extension of value-added activities while trying to increase profitability and
decrease investment costs of new business ventures.
The study shows that SOR analysis is a good tool for understanding the strategic
planning process for tourism development. However, as essential part of the economic
development, tourism development must focus on provision of the optimal budget that
corresponds to the planned actions. For transforming the strategic options into operational
planning, several intermediate steps are necessary. Identified weaknesses have to be analysed
in more detail in order to define necessary supportive actions. Furthermore, it has to be
cleared how responsibilities will be shared for carrying out these activities with what inputs
and on what time-scale. This information can then be entered directly into formats for
regional project planning. Finally, the most interesting projects from the Clean-Ship field
should be in-depth analysed for specific actions awakening financial potentials and
overcoming bottlenecks.

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