Business Incubation Project

Running head: BUSINESS INCUBATION PROJECT
Business Plan
Name of the Student:
Name of the University:
Author’s Note:

1STAY COZZY
Executive Summary
The assignment aims at creating a Business plan particularly in the field of the hotel and
travel industry where the business will be focusing on developing a travel company that
arranges people stay at other homes. The assignment would be dealing with the various
problems associated with New Zealand for the availability of the budgeted hotels. The
tourism industry is growing at a constant rate and the business of the company is
significantly dependent on the same. The operations of the business would be
conducted in the New Zealand by the name of “StayCozzy”. The growth in the tourism
industry and the demand for more budget hotels or staying place in the New Zealand
Area will be the key area where the company will be focusing. The marketing activities,
operations of the company and the financials of the company was assessed for the
business. The financial plan for the StayCozzy Company was built incorporating the
various business and macroeconomic factor that can significantly influence the
operations of the company. The business growth strategies for the company was
assessed for the company and the relevant analysis on the same was done for the
company. The risk management strategies deployed by the company for assessing the
various business condition in which the company would be operating is the key factor
that needs to be undertaken. The performance evaluation for the company was also
done by identifying the key performance areas for the company and the key
performance indicator. On an overall basis, the viability of the business model and the
financial projections of the company was evaluated to be stable for the company.

2STAY COZZY
Table of Contents
1.0 Introduction................................................................................................................ 7
1.1 Nature, focus and scope of the Business...............................................................8
a) The type of Business............................................................................................8
b) Product and Services Offered...............................................................................8
c) Potential Target Market.................................................................................12
d) Current Position in Lifecycle..........................................................................12
e) Industry Lifecycle...........................................................................................13
f) Window for Opportunities..................................................................................14
1.2 Collect and Present Data......................................................................................15
a) Describing the data type and collection method used........................................15
b) Key Findings.......................................................................................................16
2.0 Organisational vision, goals and structure...............................................................17
2.1 Internal and External Stakeholders of the Business.........................................17
2.2 Mission Statement and Core Values of the Business...........................................18
2.3 Short-term, Medium-term, long-term Goals of the Proposed Business................20
2.4 Feasibility and Congruence with Vision of the Proposed Business......................20
2.5 Organizational Structure for the Business............................................................22
2.6 Potential of the Organizational Structure..............................................................22
2.7 Gaps in Organizational Structure..........................................................................22

3STAY COZZY
3.0 Business environment, key success factors and competitive advantage.................23
3.1 PESTLE Analysis................................................................................................. 23
3.2 Porter’s Five Force Model.....................................................................................24
3.3 Market Viability and Key Success Factors of the Business..................................25
3.4 Value for the Customers.......................................................................................26
3.5 Strength and Weaknesses of the Proposed Business..........................................27
3.6 Competitive Advantage........................................................................................ 27
3.7 Competitive Viability............................................................................................. 27
4. Developing the value model and examining outcome in terms of delivering, creating
and capturing value........................................................................................................28
4.1 Analysis of the key components and functions of the proposed business towards
developing a value model...........................................................................................28
4.2 Value model justified for viability and potential of value creation..........................29
4.3 Business Key Outputs..........................................................................................31
4.4 Value Model..........................................................................................................33
4.5 Viability and Value Creation from Business Model...............................................40
5.0 Resource Requirement............................................................................................41
5.1 & 5.2 Resource Requirement of Proposed Business and there Potential sources.
................................................................................................................................... 41
5.3 Appropriate Financing Strategies.........................................................................45

4STAY COZZY
5.4 Analysis and Justification of Required Resources................................................46
6 Critically examining and developing the business and growth strategies....................48
6.1 Analysis of growth and business strategies thereby providing strategy directions
on growth prospects...................................................................................................48
6.2 Assessment of business and growth strategies based on strategy direction and
growth prospect of the proposed business.................................................................49
6.3 Assessment of business and growth strategies for potential to meet the proposed
organizational vision and goals.................................................................................. 50
7. Developing and implementation of functional strategies and proceeding with plans for
successful business functioning.....................................................................................50
7.1 Identification the development of marketing strategies and objectives and
translating the same into marketing mix and positioning plan....................................50
7.2 Identification and developing of operational strategies and objectives and
translating the same into operational plan..................................................................51
7.3 Identification and developing human resources and staffing strategies and
translating the same into HR plan...............................................................................53
7.4 Identification and development of financial strategies and objectives and
translating the same into financial plans.....................................................................54
7.5 Presentation of analysis which identifies the human resource and staffing
objectives and strategies for the proposed business..................................................55
7.6 Developing HR plan for the proposed business...................................................59

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8.0 Risk and Control Management.................................................................................60
8.1 Advanced Technical Analysis...............................................................................60
9.0 Performance evaluation and strategic exit...............................................................64
9.1 Key Performance Areas and Indicators................................................................64
9.2 Performance Evaluation and Exit Strategy...........................................................65
10.0 Conclusion............................................................................................................. 66
11.0 Recommendations................................................................................................. 66
Reference List................................................................................................................67
List of Tables and Figures..............................................................................................75

6STAY COZZY
Table of Figures
Figure 1: Hospitality Industry..........................................................................................12
Figure 2: Tourism Industry Outlook................................................................................14
Figure 3: Amenities of Hotel...........................................................................................15
Figure 4: Industry Sales of Hotel Industry......................................................................17
Figure 5: (Graph Showing Tourism Valued Added).......................................................21
Figure 6: (Image showing Visitor arrivals)......................................................................26
Figure 7: Profitability Graph........................................................................................... 36
Figure 8: Human resource planning process at StayCozzy...........................................59
Table of Tables
Table 1: Products and Services of StayCozzy...............................................................11
Table 2: Services of StayCozzy.....................................................................................12
Table 3: Customer Analysis...........................................................................................14
Table 4: Potential Target Market and Analysis...............................................................14
Table 5: Various Opportunities for StayCozzy...............................................................18
Table 6: Internal and External Stakeholders..................................................................21
Table 7: Stakeholders of Companies.............................................................................24
Table 8: Organisation Goals.......................................................................................... 26
Table 9: Management Structure.....................................................................................28
Table 10: Gaps in Organisation Structure......................................................................30
Table 11: PESTEL Analysis...........................................................................................32
Table 12: Market Analysis and Viability..........................................................................35

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Table 13: Key Success Factors..................................................................................... 37
Table 14: Value for Customers...................................................................................... 38
Table 15: Value Creation............................................................................................... 39
Table 16: Competitive Viability.......................................................................................41
Table 17: Analysis of Key Components.........................................................................42
Table 18: Sales Revenue Forecast................................................................................45
Table 19: Profit Profile....................................................................................................46
Table 20: Return on Investment.....................................................................................46
Table 21: Start-Up Requirements...................................................................................48
Table 22: Profit and Loss Statement..............................................................................50
Table 23: Cash Flow Analysis........................................................................................51
Table 24: Balance Sheet................................................................................................52
Table 25: Viability of Business Model.............................................................................54
Table 26: Start- Up Capital.............................................................................................54
Table 27: Employee Base..............................................................................................55
Table 28: Resource Requirements.................................................................................59
Table 29: Financing Strategy for Company....................................................................61
Table 30: Analysis and Justification of Resources.........................................................64
Table 31: Growth Strategies.......................................................................................... 66
Table 32: Growth and Business Strategies....................................................................67
Table 33: Assessment of Business and Growth Factors................................................68
Table 34: Implementation of Strategies..........................................................................70
Table 35: Marketing Mix.................................................................................................73