The Sunset Paradise Hotel, The Foundation Hotel and The China Express Hotels' Business Plans - Case Study Example

Business Plan Name: Institution: Contents Contents 2 Introduction 3 1.1 Front cover 3 1.2 Executive summary 4 1.3 Table of content 4 1.4 Vision statement 4 1.5 Mission statement 4 1.6 Values and objectives 5 1.7 Name, address and contact detail 5 1.8 Business activity, commencement date, commencement capital and business structure 5 1.9 Competitive advantage 6 1.10 Owners profiles 6 1.11 Major clients 6 1.12 License, registration and regulation 6 1.13 Business advisors 7 1.14 Current performance 7 Body 7 2.1 PEST, Industry and Competition analysis 7 2.2Key Success Factors 8 2.3 Product analysis and SWOT analysis 9 2.4 Marketing analysis 9 2.5 Operational strategy 9 2.6 Financial strategy. 10 2.7 Performance Measure of the plan and organization communication to its stakeholders. 10 2.8 Human resource strategy 10 Conclusion 11 Reference 12 Introduction The below are the results of our analysis and evaluation of the three business plans. The following are our choices of the key hostels we focused; • The Sunset Paradise hotel business plan (BP1). • The Foundation Hotel and conference business plan (BP2). • The China Express hotel business plan for the boutique hotel development plan (BP3). 1.1 Front cover The front cover of BP1 is very simple as it only shows the name of the hotel. The BP2 front cover is excellent as it shows the name, logo and the website of the hotel. The front cover also shows the hotel contact phone number and the email address. BP3 front cover is good as it displays the name of the hotel and an attractive picture of the hotel (Porto, 2011). 1.2 Executive summary The summary for BP1 is good. It describes the present position of the hotel and the future expectation. The summary also states the short term goals of the hotel such as increase sales to curb competitors, improve the short-term net profit, remain innovative and increase the market share of others.BP2 summary is very good and well organized. It provides in details the goals of the hotel, location, its geographical markets, the sales, financial plan and key advantages the hotel possess. BP3 summary is very good and persuasive. It shows the location, the customer loyalty built over 30 years and the growth and expansion trend concerning customer attraction. It has attracted 65% of the guest both within and cross-border (Julia, 2011). 1.3 Table of content BP1 and BP3 content are well organized and clear. The table of contents shows clearly the major section and the subsection of the business plan. BP2 has no content (Porto, 2011). 1.4 Vision statement BP1 vision focuses on the customers’ satisfaction. Its states clearly how the customer will be reached through both financial management and building strong marketing position.BP2 vision statement focus on the growth of the hotel. This envisioned growth will be achieved through the cooperated effort of management and employee and also through the introduction of skills training programs.BP3 has no vision statement (Kate et al., 2010). 1.5 Mission statement The mission statement of BP1 is good as it clarifies the objective of the hotel. The mission focuses on hospitality and expansion of the hotel. This goal will be achieved through exposure to the customers to new ideal places and services and internet services provision. The mission of BP2 clarifies the fundamental objectives of the business. The primary goals of the hotel are to provide high-quality accommodation and services at very competitive prices.BP3 have no mission statement (Kate et al., 2010). 1.6 Values and objectives The BP1, BP2 and BP3 business objectives and value are well stated. The main objectives of the three business plan focus more on the quality of the services and products, establishing funding sources and establishing market reach of their products (Julia, 2011). 1.7 Name, address and contact detail BP1 and BP3 provide details of the names only. Address and contact details are not provided. However, these hotels provide a good description of their location.BP2 provides a good description of the name of the hotel, the address, and the contact details. Besides, the BP2 provides the email address and the websites (Julia, 2011). 1.8 Business activity, commencement date, commencement capital and business structure BP1 business activities are clearly stated, and it commencement date is 22nd March 2008, the commencement capital is US$1,400,000, and the hotel is owned by Golden Wings Airline Company. BP2 business activities are clearly and briefly described and the commencement year is well stated, that is, 2009. The initial capital of the hotel is not mentioned, and the hotel was started by Pine Grove Church of God, but the managing director is Mrs. Julia Hoard. BP3 business activities are well described, the commencement date is not mentioned but the initial capital for the business is $245,300,000 (Porto, 2011) 1.9 Competitive advantage BP1 has a great competitive advantage that lies in the gains on Turkey subsidies and strong brand establishment through a franchise agreement with the small hotel.BP2 has a good competitive advantage that stems up from the provision of high-quality services, provision of secure and pleasurable stay and availability of well-trained staff. BP3 competitive advantage is well and good, and it is realized from the fact that it will be the only hotel with boutique based in Hong Kong. Moreover, the existence of this hotel for the past 30 years builds customer loyalty. The competitive advantages lie in style, provision of personal services to customers, cuisine, price, and facilities (Kate et al., 2010). 1.10 Owners profiles BP1, BP2 and BP3 owner’s profiles are well and clearly described. Information provided is satisfactory (Porto, 2011). 1.11 Major clients The three business plans provides a clear description of the characteristics of their prospective clients. BP1, BP2 and BP3 major on meeting the needs of their clients (Julia, 2011). 1.12 License, registration and regulation BP1 and BP3 do not provide any information on license, registration and regulation. BPI only mentions that the appointed manager will be responsible for ensuring the hotel adheres to the location’s license agreements.BP2 provides relevant and reliable information on license, registration and regulation. BP2 will obtain three licenses for proper functions and among the license includes hotel operating license, environmental permit, and restaurant/ food catering license (Kate et al., 2010). 1.13 Business advisors The four regional directors provide the business advice for BP1. On the other hand, BP2 senior management has prior experience while BP3 has professional staffs and those will 30 years’ experience will play a significant role in advising the way forward on the business operation (Porto, 2011). 1.14 Current performance The current performance of BP1 is appealing as it has large and ideal room both formal and informal gatherings. It also has provided to its customers packages offers and special rates. BP2 not yet started, but the future outcomes seem very attractive because the hotel has a good competitive advantage. The BP3 performance of the existing hotel is outstanding though the boutique hotel has not started its operation (Kate et al., 2010). Body 2.1 PEST, Industry and Competition analysis BP1 provides a clear analysis of its PEST to ensure the achievement of the set objectives. Political and legal environment emphasizes the need to obtain a necessary document to acquire a plot for construction purposes. BP1 also relies much on the computing programs for both the bookkeeping and internet transactions. Industry analysis is briefly described, and it focuses on exploiting on the quality products and services, provision of lodging, affordable services, and luxurious facilities so as to be able to deal with the environment. Competition analysis of BP1 is described through providing details of their main rival regarding the name, location, services and products they are offering and the rate of their rooms. BP2 has no pest analysis. However, its industry analysis provides in details its geographical markets, strategic alliance, its strategic position and a five-year forecast of its personnel. BP2 does not provide any description of its competitors. BP3 has no PEST analysis. Industry analysis is well described as it explains the hotel summary, the new plan of the hotel and evidence that supports the new plan, the strategies to apply and ways to deal with its rivals. BP3 provides in detail analysis of both its direct and indirect competitors concerning name and locations (Julia, 2011). 2.2Key Success Factors The key to success factor of BP1 is clearly described by the three strategies that include promotion strategy, sales strategy, and production strategy. BP2 key to success factors are good and are covered by product lines, pricing strategy and promotion strategy. BP3 key success factor includes the following procedures; internal overhaul and decoration, reforms of food and beverage, initialed and all round guest services and review of internal administration (Kate et al., 2010). 2.3 Product analysis and SWOT analysis BP1 only states its product but it provides a brief description of its product development procedures where it identifies to key area, that is, product improvement and market development. BP1 also presents a summary of its key strengths, weaknesses, opportunities and threats.BP2 state and explains its product mix that includes accommodation, grill, conference facilities and recreational. BP2 also provided a SWOT analysis based on the data collected from staff, distributors, customers and industry players. BP3 has a well described SWOT analysis. However, BP3 does not provide any product analysis as it aims to change its current operation to a boutique hotel (Porto, 2011). 2.4 Marketing analysis BP1 focused on three aspects that include direct marketing, advertising, rewarding guest promotions, and publicity. BP2 market analysis tool was such as collecting price list from rivals, inquiring from both existing and potential customers and information requested from community business support groups. BP3 has analyzed the market through the use of demand and supply on the hotel, inquiring information from both direct and indirect competitors in a boutique hotel. It also uses marketing strategies such as web page updating, advertisement and food tasting menu (Kate et al., 2010) 2.5 Operational strategy BP1, BP2 and BP3 operational plan covered startup cost for development purposes and revenue projections (Julia, 2011). 2.6 Financial strategy. BP1 has very simple financial strategy as they only provide the different costs that will be incurred. BP2 has not established any financial plans and projections. BP3 has a very good established financial strategy presented in tables showing net profit, cash flows and payback period of the long term loan (Kate et al., 2010). 2.7 Performance Measure of the plan and organization communication to its stakeholders. The performance measurement and evaluation of the BP1 requires the hotel to have estimated revenue of US$3,772,000 and an anticipated occupancy rating of 58 percent where the subsequent year objectives will be benchmarked and initial performance measured against them. Information on future expansion of the BP1 flows from the general manager to chief financial officer to hotel director and finally to the other line employees. Performance measurement of the BP2 is based on the estimated sales revenue. The sales revenue was expected to increase by 30% by the end of 2013. The flow of information on all new strategies are communicated from the departments’ heads and discussed with the employees regularly during their weekly meeting in the BP2. Lastly, in the BP3 the performance measurement of the plan for the subsequent years is benchmarked against the projected revenue of each respective year. According to the BP3, information about any new strategy and implementation of the existing strategies flows from the senior and middle level management to the junior level staff (Kate et al., 2010). 2.8 Human resource strategy BP1 it has a well-structured and goal oriented human resource plan as they recruit highly qualified staff, offer high wages and allowances, facilitate team building programs for their workers and use a three month probation period before permanent employment is ascertained. BP2 has a good human resource plan that is reflected in a projected table for five years to harness the achievement of the implemented strategies of the business plan. BP3 has a good human resource plan where BP3 is considering reviewing each employee qualification, reviewing management hierarchy and conducting recruitment of new staff so as to achieve the set objectives (Porto, 2011). Conclusion This paper evaluates and analyzes the key components of a business plans which includes the executive summary, marketing strategy, market analysis, organization plan and financial plan. Reference Barrow, C., Barrow, P., & Brown, R. (2012). The business plan workbook. Kogan Page Publishers. Henderson, J. C. (2011). Hip heritage: The boutique hotel business in Singapore. Tourism and Hospitality Research, 11(3), 217-223. Pinson, L. (2008). Anatomy of a business plan: the step-by-step guide to building your business and securing your company's future. aka associates. Julia, H. (2011).Foundation hotel and conference business plan. Retrieved on 10th November 2015 from https://scholar.google.com/scholar?q=foundation+hotel+and+conference+business+plan+sample&btnG=&hl=en&as-_sdt=0%2C5&as_ylo=2008&as_yhi+2015 Kate, C., Sharon L., Bettie L., & Audrey Y. (2010).Boutique hotel business plan. Retrieved on 10th November 2015 from http://issuu.com/bonjour824/docs/finalized_bussiness_plan Porto, T. (2011). Sunset paradise business plan. Retrieved on 10th November 2015 from https://pithos.grnet.gr/pithos/rest/vdiamant@aegean.gr/files/SamosBiz/Saturday/Hotel_business_plan_II_EN.pdf Read More