TEACHER'S COLUMN

Did you know that Beppu hosted an International ONSEN Summit in Beppu in 2018? It was attended by government officials and researchers from 17 countries, including the U.K. France, China and Vietnam. At the summit, a group of APU undergraduate students had a chance to present their research about onsen (hot springs). In the field of strategic management, this type of event is held according to a legitimacy-building strategy, i.e. a brand-building strategy using the features of Oita prefecture. Oita has the highest volume of hot springs in Japan and is known for its high self-sufficiency rate of renewable energy through its geothermal power generation. Building a community that can grow sustainably using its abundant natural resources is also Oita’s mission. Holding the ONSEN Summit where hot spring tourism and sustainable energy development can be discussed is a suitable activities for achieving that mission.

Such activities that boost Oita’s brand power and profile using its unique resources raise tourists’ interest in the quality and value of the prefecture’s hot springs. A strategy for further legitimacy building is essential to ensure activities lead to an increase in brand power of Oita’s hot springs facilities and enable the prefecture to complete with hot spring areas in other parts of Japan, like Kusatsu and Hakone.

As illustrated here, one thing that can be learned from the field of strategic management is the connection between mission and strategy. Mission is about what can be achieved. In Oita, this means building a community that can grow sustainably. Strategy is about how to accomplish that mission. Legitimacy building with the ONSEN Summit is one such strategy. In strategic management, you also learn about how the different stakeholders like governments, businesses, and consumers, impact one another within that strategy.