Business Strategies - New Four-Star Hotel That Will Be Opened in Melbourne - Example

Business Plan Name Institution Date Part A: Introduction In Australia, the number of Chinese people is on the increase. Most of them are in the country as business people or tourists. The numbers of Chinese businesses are increasing due to favorable economic policies. They are, however, finding it difficult to find the Chinese Cuisines and other types of food common with the Chinese people. Most restaurants and hotels in Australia do not serve Chinese cuisines, making it difficult for the Chinese people to enjoy their meals (Smith, 2011). The new business therefore intends to fill the gap in the market by preparing and serving Chinese Cuisines. Sino-Australia Cuisine will be a restaurant that mainly serves the Chinese cuisine. The business will be a four-star hotel that will serve the Chinese cuisines and it will also have the capacity to offer accommodation to about 50 guests per night, the Chinese being the main targets. However, any other customer will be free to visit the hotel and enjoy the Chinese Cuisines. The business will ensure that the customers get a taste of the Chinese Cuisine. At the hotel, the Chinese music will be played and bands from china will be invited to entertain the customers. This will be aimed at ensuring that the Chinese people are able to enjoy the services being offered and develop a sense of being at home. The paper is a business plan for the new four-star hotel that will be opened in Melbourne, Australia. Part B: Business plan analysis a). Market feasibility of the business idea The number of people from China has been on the increase in Australia. Currently, there are more than 800,000 people from China living in Australia. A high number is comprised of the Chinese Immigrants who settled in the country decades ago. However, as a result of bilateral trade agreements, the Chinese immigrant workers are allowed to work in Australia for a period of three years. This has seen the number of Chinese citizens visiting Australia on the increase. About 160,000 immigrant workers from China travel to Australia every year (Smith, 2011). Australia is one of the countries that host a high number of Chinese people. On the other hand, tourism is also a factor that has seen an increase in the number of tourists from China visiting Australia. Since the company mainly targets the Chinese Customers, the market is viable for the trade due the high number of the Chinese people. The immigration rules have also seen an increase in the Chinese businesses in Australia (Smith, 2011). Most of the Chinese businesses employ the local people in some of the roles while it imports labour from China for some of the roles. The tourists as well as the Chinese business people require the services of a hotel and hence the positive impacts that it will have on the customers. The availability of customers in the market is one of the main factors that determine the success of a business. A market with a high number of customers is likely to succeed. However, the business has to meet the expectation of the customers. In Australia, the number of businesses that sells the Chinese cuisine is quite low, only a few restaurants carter for the needs of the Chinese customers. The business is likely to face little competition as its products and services are mainly targeting the Chinese customers. The business has a competitive advantage in the market due to its specialization in the Chinese cuisines and other products. Most of the Chinese people in Australia live in certain predominant locations. This has led to the development of areas known as Chinacity (Smith, 2011). This is an indication that the number of customers in the market is high. The customers are therefore likely to be satisfied by the products and services of the business. Specialization is important in enabling an organization to gain competitive advantage in the market. Competitive advantage is important in ensuring that an organization is able to gain profitability. The market entry in the industry is not difficult. However the business has to meet all the laws and regulations that govern the industry. The business laws and regulations in Australia promote the growth and development of both the local and foreign companies. The collection of market information is important in ensuring that the appropriate strategies are developed (Percy, 2014). The business will therefore be required to carry out market research from time to time. The main strength of the business however is its specialization and quality of the products and services that it intends to offer to the customers. b). Technical feasibility The technical feasibility provides information about how the business will deliver the goods and services. This includes issues related to labour, raw materials, logistics and location of the business (Brooks, 2014). The business will be located in Melbourne. The location of the business is strategic as most of the Chinese people are found in the region. A high number of tourists from China usually visit Melbourne every year. The location of the business is important as it determines the ability of the customers to access it. The business will operate in a four storey building with the last two storey being used for accommodation while the other two will be used to serve the customers with the food. The business intends to rent the building for a period of two years before it can purchase its own land and develop its own building. Most of the raw materials that will be used for food preparation will be important from China. This is because some of the ingredients are not available in China. The special ingredients from China will be imported every week and stored at the premises of the building. A store room as well as a refrigeration facility will be at the facility in order to ensure that it is fresh. Most of the products are perishable and the refrigeration system will be important. Other raw materials will also be sources locally as they are available in the country. The business will contract local suppliers who will be in charge of supplying the products on a daily basis. Transportation will play an important role for the business as it will be importing some of the products from China. The importation of the products will be carried out through air transport. This means is fast and it will ensure the products reach the business on time. Local Logistics Company will also be hired to transport the products from the airport to the premises of the company. Labour is considered as an important factor of production for any organization (Ulrich, 2013). The business will employ both the locals as well as the Chinese citizens. The chefs as well as most of the waiters will be from China. It is only the Chinese chefs that will be in a position to prepare the Chinese cuisines. Some of the waiters will however be hired locally as local customers are also expected to visit the hotel. Most of the professionals including managers will be recruited locally. This is because the skills are locally available in Australia. All the legal requirements as well as regulations will be observed during the recruitment of all the employees at the organization. Technological aspects will also be utilized in the business for enhancing its operations. Technology will be applied in business operations such as marketing, bookings and financial management. The use of technology in business is important in terms of enhancing the efficiency while reducing the costs (Ulrich, 2013). In the management of logistics, the organization will also utilize technological concepts to enhance its business operations. c). Human feasibility Human feasibility mainly deals with human resource management aspects. Labour and employment is of the most important aspect of human resource management. The company will develop an effective human resource management department that will deal with all the issues affecting the employees. The employees will be recruitment from the China as well as locally from Australia. In the Australian job market, there are a high number of people who are willing to take up employment in the industry immediately. There are a high number of highly qualified candidates in the local market who will perform different functions at the company (Dessler, 2011). The recruitment process of the local employees will be an easy process. The company will be able to recruit competent members of staff from the local job market. The recruitment of employees from China will also be an easy process as the job market is full of highly qualified chefs. In China, most of the people like cooking and the number of professionally trained chefs is high. However various factors will have to be considered during the recruitment process in order to ensure that they can work in Australia. The employees from China should be in compliance with all the immigration requirements. They must also be in possession of all the necessary documents including the visa and work permits. The business will ensure that it is fully in compliance with all the regulations in order to avoid any legal problems. It is also the responsibility of any organization to ensure that it does not engage in illegal activities. The business will be able to pay the employees attractive salaries and remuneration packages. In Australia, the exploitation of employees is unacceptable and all the employees have to be treated equally and in a fair manner. The expected profits will be able to sustain the workforce as well as finance other activities that need to be carried out by the organization. The employees will be fee to join any union as it is a common practice in Australia. Health and safety issues are an important aspect of human resource. In there are laws that govern the occupational health and safety. The business will ensure that the working environment is safe for all the employees. A safe working environment is a legal requirement and it will also give the employees the confidence to carry out their activities (Snell, et al, 2015). The company will also put in place measures to ensure all the employees have a health insurance. A health insurance will guarantee the employees that they can receive treatment in case of any injuries or ill health. In Australia, there is a high number of health insurance providers. The company will pay for the health insurance charges for the employees. The human feasibility indicates that the company will be able to obtain all the human resources that it will require. Health policy will also be developed at the organization so as to ensure that the employees are also involved in the process. It s also a common practice in Australia that health and safety officers have to be employed in an organization (Snell, et al, 2015). Part C: Financial analysis The business will require financial resources in order to finance its activities as well as running its daily operations. The company will require capital to start the business. The capital that the company will require to start the business is $ 500,000. The amount will be used for financing different activities which include paying of rent, purchase of raw materials, logistics and paying the salaries of the employees for a period of three months. Some amount will also be used for obtaining the necessary licenses and permits in order to start the business. The capital will be obtained through different sources of finances. The main source of finance will be the personal saving which is the amount that the owners will contribute. The owners of the business will contribute $ 250,000 which is half the capital required to start the business. The business will also require a bank loan for financing part of the capital. A bank loan of $ 100,000 will be obtained to finance the business. The bank loan will be repaid within a period of one year. It is expected that the organization will be able to make profits three months after its operations and hence generating the amount required to repay the bank loan. The bank loan is one of the most common sources of capital for most of the new businesses (Post & Preston, 2012). The business will also rely on the contributions from friends to finance the business. The contributions from the friends will be considered as soft loans which will be repaid within a period of two years in monthly installments. The amount that will be obtained from friends will be $ 150,000. The capital is considered the main resource to finance the business. Other resources that will be required to start the business include the human resources as well as the physical assets. The capital will be used to finance the human resource requirements as well as renting the physical assets. Other assets that will be required by the business include the vehicles that will be used for different purposes including transporting the customers as well as members of staff. All the staff members will also require some training before they can start carrying out their business activities (Nobes, 2011). The management of financial resources during the initial stages of the business is important. This is considering that the business will not have made meaningful profits to sustain its operations. A highly qualified financial manager will be recruited to oversee the implementation of the budget. Wastage will be avoided in order to ensure that the company is able to fully implement its budget. The table below shows the activities that will be carried out by the company during its establishment and the financial resources that will be required. Item Cost ($) Remarks Rent 150,000 The monthly rent for will be 50,000. The initial amount will carter for three months rent in advance. Raw materials and ingredients 100,000 The amount will carter for three months. Salaries and remuneration of employees 100,000 The amount will carter for the salaries of employees for three months. A total of 50 employees will be hired at the start of the business. Logistics 50,000 The logistics cost will carter for an initial three months period. Permits and licenses 10,000 This will carter for all the permits and licenses required to start the business. Capacity building 20,000 The amount will be used to obtain the employees before they can start carrying out their duties. Office operations 30,000 The amount will be used on a daily basis for a period of three months. It will be used to purchase office staff and running the office operations. Miscellaneous 40,000 The amount will be on standby for use in any emergency situation. Total 250,000 Capital References Smith, P. (2011). China biggest Source of migrants to Australia. Financial Times Australia. Percy, L. (2014). Strategic Marketing Communication. London: Routledge. Brooks, W. (2014). The International Business Environment. Melbourne: Prentice Hall. Ulrich, D. (2013). Human resource champions: The next agenda for adding value and delivering results. Harvard Business Press. Dessler, G. (2011). Fundamentals of human resource management. NY: Pearson Higher Ed. Snell, S. et al. (2015). Managing human resources. London: Cengage Learning. Post, J. & Preston, L. (2012). Private management and public policy: The principle of public responsibility. Stanford: Stanford University Press. Nobes, C. (2011). IFRS practices and the persistence of accounting system classification. Abacus, 47(3), 267-283. Read More