Entrepreneurship Assessment 2: Business Plan for Brown's Hotel
Verified
Added on 2023/06/15
|16
|4686
|72
AI Summary
This report covers the detailed description of a business plan for Brown's Hotel, including marketing strategies, competitive analysis, and financial factors. It also discusses the design and development of robots to provide contactless services to customers.
Contribute Materials
Your contribution can guide someone’s learning journey. Share your
documents today.
Business plan
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
Table of Contents SUMMARY.....................................................................................................................................3 INTRODUCTION...........................................................................................................................4 A critical review on the relevant entrepreneurship and small business research literature with a view to include a credible, ethical, and informed business proposal (transforming) ideas and concepts into a well-argued and supported business venture........................................................4 Introduction of small business................................................................................................4 Description of business...........................................................................................................5 Marketing strategies of Brown's hotel....................................................................................6 Competitive analysis of Hospitality Industry by SWOT........................................................7 Operation and management plan of Brown's hotel................................................................9 Financial factors.....................................................................................................................9 critically evaluate the alternative sources of business finance and their relevance to the contemporary business practice involving sound ethical practice.................................................11 CONCLUSION..............................................................................................................................12 REFERENCES..............................................................................................................................14
SUMMARY This report will cover the detailed description of business plan along with business description such as industry, current and future trends and developments.Marketing strategies will also going to conduct through applying 7p's of marketing. Apart from this,SWOTanalysis of industry will also going to conduct. Design and development of product will also going to discuss along with requirement of money and their spending pattern.Physical location, facilities and many more will be discussed which require to take product off the ground. Several financial factors will also discuss such as current and historical financial information, funding request and many more. Finally various sources of finance will be discuss through which business can raise money from market.
INTRODUCTION Business plan is all about planning, delivering and formulating the ways of achieving business objectives. It mainly contains the goals and plan to be achieve in near future(Tipu, 2018). It generally outlines the company financial plan, financial projections, market research, business purpose and many more. Business plan is mainly prepare for fulfilling these objectives- It helps to summarize the organisation's strategy in order to attain it in long term, it also helps to secure financing from investors and it also helps in forecasting business demands(Kailer and Weiß, 2018). In this report, Brown's hotel is taking into consideration which was founded in 1837 having headquartered in London, United Kingdom. The owner of this hotel is James and Sarah Brown. This report, will mainly include the detailed business plan for transforming ideas and concepts to support a given business venture. Various sources of finance would also discuss along with their relevancy in sound ethical practice(Hanák and Grežo, 2020). Introduction of small business. It is type of business which is operate in small scale. It is generally seen in the form of sole proprietorship, corporation and partnership. There are different features of small businesses are as follows: low revenue and profitability-This type of business has lower income and less profitability as comparison to larger business. The main reason behind this is that they operate in less area of market(Hopp and et.al 2018). Small team of employees-This kind of business generally have smaller team of human resource. This type of business is run entirely by single team or individuals. It has been seen that generally this kind of business have employees less than 50. Operate in fewer location-Small business are not very well flourished in most parts in country. This kind of business do not have multiple outlets in different cities or countries. Hence this is the reason they operate in fewer locations of different country. Description of business Brown's hotel is situated in most exclusive location within Central London.It is also considered as London's finest experiences. The each and every room of hotel is very well decorated with contemporary works of art which create an elegant and fresh air. This hotel is
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
operate in hospitality industry. There are several current trends of hospitality industry are as follows: Going contactless-Nowadays after corona virus pandemic, several hotels are going towards contactless services (Masciocchi, 2020).They are using technologies for check in and check out fortheir customer. Several technologies such as mobile check-in and check- out, contactless payments, voice control and biometrics are some of the example which shows that, there are going contactless would be more secure and safe to welcome guests and provide them healthy experience. The brown's hotel provide these services which helps in engaging more customers and achieve their aims. Automation and technology- This technology is becoming very popular in hospitality industry after corona virus pandemic. Several hotels in hospitality industry are using management system to monitor and optimize revenues and customer relationship. Virtual and augmented reality-Several hotel are using virtual and augmented reality technology in their operations to provide joyful experience to their customer(Xu, 2020).. With the help of this technology several hotels provide their guest the ability to teleport to the location and explore the hotels.This helps customer to gain good experience of hotel industry and choose the best one within their budget and comfort. The customer will likely to gain the best experience at brown's hotel which require much investment and IT team. Future developments of hospitality industry are as follows: Safety and hygiene tourism trends- With the rise in corona virus new variants, hospitalityindustry will more focussing on providing safety and hygiene to their customer. For this several steps would be taken by given industry such as increasing cleaning, social distancing, providing hand sanitizer and many more (Yang,Henthorne, and George, , 2020).The Brown's hotel need to be assure about this development in their organisation. This will attract more customers and keep the operations under legal provisions. Voice search and voice control-This kind of technological development is nowadays taking development in hospitality industry. With the help of this technology,customers in hotels can shortening their response time, streamlining booking process. It will also allow customer to take room service without leaving their room or lift a finger.
Robots and chatbot- Several hotels are planning to use robots in near future for handling their reception work. Moreover chatbot will also come in hotel industry through which customers would be able to book their travel and accommodation with the help of internet chatbot. Porter's five forces model:It helps in the business to gain the insights about the market, trend, industrycompetitionand customerspower.There isneedto analysetheindustry competition to look for the business plan idea and to look for the market awareness. In case of brown's hotel, these market forces are described below: Threat of new entrance:This force is all about the competition and threat by arrival of new players in the market. In the hospitality industry, the threat for new entrance is quite high in the market due to having many players (Salazar, 2018). The brown hotel market has also threat of new players as this industry has finest business environment in which, people wants to have their experience. Bargaining power of buyers:as per this force, buyers has much power to exploit the market. It shows that, hospitality industry has low threat of buyers bargaining power as this industry has luxurious operations and different services. So the buyers are ready to pay a high price for getting best facilities. The brown hotel also has advantage of this force as they have different and unique selling points which keeps the bargaining power low. Bargaining power of suppliers:mainly, the suppliers have high power in the hospitality industry which impacts on the price and cost of the hotels organisations. The Brown's hotel has low threat of this factor, as they keep suppliers from many parts of the world due to which they could easily switch to others. Threat of substitution:This force shows the availability of the product and service substitute which makes one of similar kind of products. This gives a large choice to customer to shift their demands. Hospitality industry has high threat of this factor and for Brown's Hotel as well. The hotel is working on small operations so that customer may choose other alternative which will fulfil their needs. Competitive rivalry:As per this, the hospitality industry has high competition into market. Due to having large business growth and market development, there are many hospitality sectors are opened in the UK. Therefore, the Brown';s hotel has much competition into market for which they need to ficus on innovation and expansion.
Marketing strategies of Brown's hotel Product-It refers to the physical commodities or services business provides to its customer in market. In the terms of Brown's hotel, it provide several services to their customer in the forms of bar, conferences, guest rooms, health and fitness and many more. By which it attracts customer from market to rise in their sales(Katz, 2018). Price-It is considered as a monetary amount charge by business or companies from the customer in the return of product or service whichever they provide to their customer. In the terms of mentioned company, it charges very reasonable price from their customer in lieu of services which they provide to them.Services are affordable and customer can easily pay prices at brown's hotel. They are worth of money and value which gives satisfaction.(Teixeira and Pereira, 2019). Place-This refers to the physical location where business or company present its products to customer in order to sell them in market. Location plays a very important role in overall sales of business. In the terms of Brown's hotel, It is located in Mayfair location of London which is considered as the heart of the city. It is also surrounded by lot of green parks which spread greenery every where.Also, the hotel provide online facilities for customer convenience. This place plays crucial role as customer could easily reach to the hotel through Airports. Promotion-It includes various marketing strategies use by companies to promote their products or service among customers in market. It includes advertising, direct marketing, social media marketing and many more. In the terms of mentioned company, it promote its services in market bymakingits website, improving search engine optimization and making several pages on social media platforms(Nicolò, 2018). People-It consists of all the human resource which include staff members, salespeople, customer support team and many more together which helps to achieve organisational aims and objectives. In the terms of respective organisation, it has a great pool of human resource who are talented and highly experiences in their work. They have a good experience of working in hotel industry and also knows how to great and handle customer complaints. Process-It is denoted as a process involve in delivery products or service to customer in market. In the terms of respective organisation, it try to understand their customer needs
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
through various forms, surveys and many more. Moreover they also provide extra pillows and towel in the rooms of their customer to increase their service among customer in market. Physical evidence- It include all those things which customer see while interacting with business or company. In the terms of given organisation, it has a well designed modern British luxury stones and marbles. The reception area is also very well designed which attract customers towards hotel very well(Kiesel and Harkiolakis, 2021). Competitive analysis of Hospitality Industry by SWOT. Strength Providesafeaccommodation- Hospitalityindustryprovidesafe accommodation or place of living to theircustomer.Inthetermsof mentioned hotel, it also provide safe accommodationtotheircustomer.It hasmultipleamountofhugerooms whichprovidesomanyfacilitiesto customer through which customer can easily live in given hotel. Hugeprofitmargin-Hospitality industryrequireahugeamountof capital outlay and but is still considered a worthy investment because the cost of labour is low and profit margins are high(Rutti,Garcia,and Helms, 2021) . In the terms of Brown's hotel, it offers multiplevarietyofroomstotheir customers such as luxury rooms, casino and many more. All these facilities rise the cost of given hotel but due to all thesefacilitiescustomersattractto Weakness Numeroustaxrates-Hospitality industrychargehugeamountoftax rates for the service they provide to their customer. Similarly Brown's hotel alsochargeseveraltaxesfromthe customerinlieuoftheserviceto provide to their customer, which rises the costs of rooms and make it more expensive for customers. Therefore due to this several times customer do not prefer to book their room in hotel which negativelyaffecttheoverall profitability of hospitality industry. Seasonality-Mostlypeoplegoto anothercityduringvacationand holidays therefore it is the main time when there is boom in this industry (Rao,2018).Inthetermsofgiven company, sales and profitability seen in businessgenerallyatthetimeof vacation or holidays season. Therefore it is considered as a main weakness of
hotel which increase helps to increase their business and rise in profitability. hospitality industry which mainly affect their profitability in negative manner. Opportunities Hugescopefortechnology-In hospitality industry there is a huge and wide scope of technology in the form of Artificialintelligence,roboticsand manymore.Byadoptingthese technologiesingivecompany, managementofBrown'shotelcan transform their way of service which theyprovidetocustomerinmarket, which would help to rise in sales and profitability of company(Rose, 2021). Threat Rise in pandemics-There are different variants of corona virus are rising due which hospitality industry would be in majorloss.Inthetermsofgiven company, It will also negatively affect itssalesandprofitability(Lämmle, 2020). Design and Development of product or service. The product which given company will going to launch in market are robots. By which Brown's hotel will provide tremendous experience to their customer in the form of their services. Moreover, cases of corona virus is also increasing so by using robots in their operational working given company will reduce spreading of corona virus upto some extent. Below are the ways whichshows that how management of hotel in going to invest or spend their money while implementing this technology. ExpenditureCost Import charges of robots from another country$5000 per robot (20*5000) $1,00,000 Testing cost$2000 per robot (20*2000) $ 40,000 Salary of Technical staff for their maintenance and up gradation. $800 per person (20*800) $16,000 Total cost or investment require for using above product in business. $1,56,000
Hence the above tabular representation of data shows that how management of company going to spend their investment. Operation and management plan of Brown's hotel. Physical location- This factor play a very important role in business. For using robots in their operational functionality Brown's hotel require a huge place for storing them after. Location needs to be very big and so that twenty robots can store in that place together. Facilities- Robots run by battery which isplaced inside them. Therefore in order to properly charge their batteries there is need of electrical socket facility at every place. So that no or less time get waste in search of electric socket whenever Robots battery would get down(Tanev, Rasmussen, and Hansen, 2020). Equipment- For proper functioning of robots there is need of all sort of equipments require in Brown's hotel are as follows: 1.Hardware- It is consider as a outer metal body of robot. Therefore respective hotel must require sufficient quantity of hardware components in their physical location in case if somehow outer body got damage then they can replace it with another one. 2.Software- Robots run on the basis of software install in them. Therefore Brown's hotel must use advanced technology such as machine learning and artificial intelligence to make use that robots learns everything themselves in case if circumstances change. Human resource- Handling or controlling of robots require technical staff therefore mentioned hotel must employ highly qualified staff to control or operate robots in given hotel. Staff of a given organisation must know how to operate technical glitches in robot so that no time get if somehow robots get some technical faults. Financial factors Current or historical financial information
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Projections On the basis of above financial data following assumptions made are as follows: The business of Brown's hotel will increase in future as given business is starting making uses of robots which will help to rise in sales as well as profitability of business. In graph it has been seen that after 2021, graph is starting getting fallen down due to the reason of new variant of corona virus is increasing in economy. Therefore management of hotel need to take some relevant measure to prevent spread of corona virus(Fernandes, 2020). Break- even point. It is considered as a situation in business in which the revenue of business is equal to expenses of business. In other words it is considered as a situation of no profit no loss. There are two ways by which business calculate break even point in their business 1.in Units 2.In amount In Units- Break-even point= Fixed cost/(Revenue per unit- Variable cost per unit) In Amount- Break even point= Fixed costs/(sales price per unit* BEP in units) In above formula, fixed cost are the cost that are independent of the sales volume such as rent. Whereas variable cost are those cost which are dependent of the sales volume such as materials needed for production or manufacturing. Therefore in the terms of given business, the break even point would be $10,000 because it is the cost which is needed to cover the cost of business. Hence it is sales price of business in which given hotel will only cover there cost. Therefore in order to attain a situation in business in which it will only cover its cost it is necessary to do sales of only $10,000. Current and historical financial information. (Source: Browns Beach Hotels PLC)
Expenses The following are the expenses of given business are as follows: ExpensesCost Administration expenses$500 per month Receptionist salary$700 per month House keeping salary$400 per month Advertising and marketing expenses$1000 per month Total$2600 Funding request For increasing the operations and launching of new product in market. Given company is approaching to so many investors to raise their money.For the development of new plan of launching robots given company require an investment of $1,56,00. critically evaluate the alternative sources of business finance and their relevance to the contemporary business practice involving sound ethical practice. Traditional source of finance-These are considered as a source of finance which various financial institution provide to their customer. These are generally considered as more affordable and easiest source of finance which business can raise. Several examples of traditional source of finance are: Overdraft-It is kind of loan facility in which customer are allow to raise fund from the bank beyond their current balance available in bank. Generally bank give overdraft facilities to businesses to meet out their several short term of goals. Bank loans- It is kind of financial service in which banks lend money to their customer for certain or fixed period of time. There are different types of bank loans such as personal loan, business loan, vehicle loan and many more. Credit cards- It is a type of financial instrument which is issued by banks with a pre-set credit limit. It allows user to do cashless transactions. This card is issued to user with certain credit limit. User of the card have to spend money on the basis of their card limit. Alternative source of finance.
Crow funding- It is new and latest way of raising capital from market by collaborative efforts of large number of individual investor. This type of funding is done online via several social media and websites. There are several types of crow funding such as: 1.Equity based crow funding- It is type of crow funding in which contributors are allowed to become part owners of business by trading capital of company in equity shares. 2.Reward based crow funding- It involves all those individuals who are contributing to business in exchange of the rewards mainly in the form of product or service(Gassner, 2021). 3.Donation based crow funding- It is considered as a source of funding in which large number of contributors contribute their money individually without expecting anything in return. Common purpose for this type offunding is of natural calamities, disaster relief and many more. Angel investor- These are considered as an individuals who offer promise to star up up companies for funding in return for the share in business usually in the form of equities and royalties. Advantage of angel investors is as follow: No obligations to pay return- Generally angel investors go on with equity dealings thereforeifsomehowbusinessdo notperformwellbusinessownerdo nothave obligation to pay them there share. Disadvantage of angel investor is as follow: Less control-Companies those who hire angel investors for investing generally give large amount of share to them as a equity. Therefore it left companies with less control over there funds. On the basis of above description of funds management of Brown's hotel should go with equity based crow funding because under this type of funding company will allow their investors to become part owner of business. Moreover by this form of funding, management of company have less pressure because there will be no dilution of power within a company and also it will increase number of shares of company in market.
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
CONCLUSION On the basis of above report it has been concluded that proper business plan plays a very essential for overall functionality of business. It gives direction to business that where it should go in future. In this report, it has been discussed marketing strategies in the form of 7 p's of marketing. Moreover competitive analysis have also been conducted by SWOT analysis. Next to it design and development of product has been given along with description of various factors such as location, facilities, equipment and many more. Next to it several financial factors have been covered along with various form finance.
REFERENCES Books and journals Tipu, S.A.A., 2018. Business plan competitions in developed and emerging economies: What do we still need to know?.Journal of entrepreneurship in emerging economies. Kailer,N.andWeiß,G.,2018.Gründungsmanagementkompakt:vonderIdeezum Businessplan. Linde Verlag GmbH. Hanák, R. and Grežo, M., 2020. The effect of entrepreneurial experience on the quality of a business plan proposal in applying for angel investment.International Journal of Entrepreneurial Venturing,12(6), pp.617-647. Hopp, C., Greene, F.J., Honig, B., Karlsson, T. and Samuelsson, M., 2018. Revisiting the influenceofinstitutionalforcesonthewrittenbusinessplan:areplication study.Management Review Quarterly,68(4), pp.361-398. Masciocchi, B., 2020. How to make a business plan. InStudies in Surface Science and Catalysis(Vol. 179, pp. 465-484). Elsevier. Xu, X., 2020. Compose the Business Plan. InIntroduction to Entrepreneurship(pp. 139-163). Springer, Singapore. Katz, J.A., 2018. The business plan: reports of its death have been greatly exaggerated. InAnnals of Entrepreneurship Education and Pedagogy–2018. Edward Elgar Publishing. Teixeira, A.A. and Pereira, I., 2019. The perceived usefulness of the business plan in formal entrepreneurship education: the perspective of alumni entrepreneurs.Entrepreneurship Education,2(3), pp.91-133. Nicolò, D., 2018. Carenze informative e vulnerabilità delle imprese giovani: il ruolo del business plan.Management Control. Kiesel, S. and Harkiolakis, N., 2021. Findings from 20 years of business plan competitions in North-Bavaria.International Journal of Teaching and Case Studies,12(1), pp.42-62. Lämmle, A., 2020.Business Plan Handbook: Practical guide to create a business plan. BoD– Books on Demand. Rose, M.E., 2021. Writing A Business Plan For A Small Business. Tanev, S., Rasmussen, E.S. and Hansen, K.R., 2020. Business plan basics for engineers and new technology firms. InStart-Up Creation(pp. 19-40). Woodhead Publishing. Fernandes, M.D.P.B., 2020.Mgtricity business plan-market analysis(Doctoral dissertation). Gassner,N.A.,2021.Businessplanof"travelsolut"withitsbrand"Einreiseservice Kapverden"(Doctoral dissertation).
Yang, L., Henthorne, T.L. and George, B., 2020. Artificial intelligence and robotics technology in the hospitality industry: Current applications and future trends.Digital transformation in business and society, pp.211-228. Salazar, A., 2018. Hospitality trends: opportunities and challenges.Worldwide Hospitality and Tourism Themes. Rutti,R.M.,Garcia,F.andHelms,M.M.,2021.EntrepreneurshipinPeru:aSWOT analysis.International Journal of Entrepreneurship and Small Business,42(3), pp.369- 396. Rao, Y.S., 2018. Scholarly Communication Cycle: SWOT Analysis.AIJR Abstracts, p.9. Online BrownsBeachHotelsPLC,2021.[Online].Availableat: <https://www.wsj.com/market-data/quotes/LK/XCOL/BBHN0000/company-people>