Business Development Plan for Hotel Phoenicia's Expansion in Phuket

Business Development

Table of Contents
Research proposal............................................................................................................................1
1. Introduction..............................................................................................................................1
2. Theoretical Framework............................................................................................................2
3. Literature review......................................................................................................................3
4. Research Methodology............................................................................................................4
5. Potential outcomes...................................................................................................................6
Chapter 1: Introduction....................................................................................................................7
Chapter 2: Literature Review...........................................................................................................9
Chapter 3: Research Methodology.................................................................................................19
Chapter 4: Potential Outcomes......................................................................................................24
CONCLUSION..............................................................................................................................29
REFERENCES..............................................................................................................................31

Topic: Hotel Phoenicia Planning to establish its new chain in Phuket in next3 years
Research proposal
1. Introduction
In this modern era, every company wants to raise its brand image and that is why, each
and every organization keep providing new and innovative products to their customers in order
to stay competitive in the market. Therefore, business development is the initiation of long term
value for the firm from customers and market. It is also opt by different business such as large
business, small and medium business. Moreover, the business developmental activities are also
done after analysing the internal and external environment (Budzianowski, 2017).
Business development is consider as a foundation of success and it is about the clear cut
focus on creating the long term sustained value for the companies. Therefore, sale is not all about
the business development but sometime sustaining the brand image at international level and
enhance the customer base may be consider as a business development. In the same way, Hotel
Phoenicia is also wants to enhance the customer base and establish its unit at Phuket so that
different it serve variety of customers in best way. Thus, Hotel Phoenicia achieve the aim in next
3 year so that it will directly enhance the financial performance and also grab attention of many
customers towards it. Moreover, the entire study will review the core values as well as
competencies of Hotel Phoenicia using effective vision, mission and objectives. This plan will
helps a business to reach at international level of success so that it will easily attract wide range
of customers using effective business development plan.
Aim: “To develop a business plan for Hotel Phoenicia to establish its new chain in Phuket for
next 3 years”
Objectives:
 To identify the ways through which company may enter in new market.
 To determine the micro and macro environmental factor that affect the business
developmental plan.
 To identify the scope of Hotel Phoenicia to establishing its new chain in Phuket.
 To determine the challenges faced by the company in establishing its new unit.
Research Questions:
 What are different ways of entering did Hotel Phoenicia used?
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 What are the micro and macro environmental factor that affect the business
developmental plan?
 What are the scope of Hotel Phoenicia to establish the unit in Phuket?
 What are the challenges did hotel may face to establish its new unit?
Rationale: The main reason of choosing this topic is such that hotel wants to establish its unit at
different country and by expanding the business at different country will help the quoted firm to
reach wide range of customers so that it will help to sustain the brand image at further level.
Moreover, it also contribute its part and grow the economy of the country.
2. Theoretical Framework
There are many theoretical frameworks that the researcher will apply in while conducting
his research so that he can successfully identify various aspects related to the establishment of
Hotel Phoenicia in Phuket.
SWOT Analysis helps in identification of various strengths, weaknesses, opportunities and threat
that are applicable in the internal environment of the company. This will help the researcher in
analysing the micro environment of the business.
PESTLE Analysis will help the researcher in analysing the external market related to the Hotel
industry in Phuket, Thailand and this macro analysis will point out any legal or political
technicalities.
VRIO Model and Porter's Value Chain model will help in formulating strategies encouraging
sustainable development and help the management in identifying the resources and their
availability (Balaji and Babu, 2015). This model will also define the cost incurred and help in
formulating appropriate budgets so that the management can plan accordingly.
Positioning Map will help the researcher in formulating and setting up their charges and prices
along with the relevant quality so that the appropriate position can be targeted and hotel can be
positioned accordingly so that the competitors can also be identified thus determining the
challenge that the hotel might face.
Herzberg two factor theory and Maslow hierarchy are the motivational theories and
implementing these will help in increasing the innovation and motivational level in employees so
that they can work dedicatedly and develop the relevant strategies which will help the
management in expanding their business. International expansion is an important process which
requires analysis of every single factor and this requires a great deal of input from employees as
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it is a one time investment which can be made only after extensive analysis. Therefore, this will
help in determining and increasing the scope of business.
Revenue Generation Model is the last model which the researcher will use and implication of
this model will assist in formulation and determination of the appropriate budgets which will be
distributed as per the relevance of cost (Hashim, Idris and Othman, 2018). The finance model
will help in appropriate distribution as per the resources that will be available with the company.
3. Literature review
Literature review helps in determining the positive as well as negative aspects related to
the topic and critically analyses different aspects.
As per the view of Hollender, Zapkau and Schwens (2017) , there are many modes of
entering into foreign markets like licensing, franchising, joint ventures, exporting etc. All the
methods have different benefits but they state that all are not appropriate for Hospitality industry
in order to enter new markets. Methods like joint venture, franchising etc. prove to be profitable
when company plans to expand as the risk factor is comparatively lower and it is easier for the
managers to establish their business. They further stated that it is easier to later become a
separate firm by attaining complete ownership of the business and therefore presents maximum
benefits for the firm deciding to expand in international markets.
Davids and et.al. (2017), argues that it is very important to analyse both micro as well as
macro factors in the environment before expanding in international markets. SWOT analysis
helps in analysing Micro environment and this highlights various strengths and weaknesses of
the organization itself so that before expanding, the firm can adequately determine whether they
have the necessary resources required for expansion. They further state that macro analysis i.e.
external environment analysis is also necessary for analysing the market and models like
PESTLE, Porter's Five Force Analysis are relevant while conducting this analysis as they help in
assessing all the factors like competitor's activities or other political, legal etc. factors that might
impact the economy or the consumers in which the organization operates ad hence critically
analyse the activities and predict the best course of action for business.
According to the view point of Gibson, Rosen and Stucker (2015), while expanding
business in different markets, there are many factors that need to be pondered upon and which
might act as a hindrance while setting up business. While there are some factors like technology,
employment, increased revenue, brand value etc. which affect the business positively and
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motivate managers to expand their business on an international scale but there are also some
demotivating factors like cultural barriers, diversified traditions and values etc. which does not
make it easy for organization and its managers to adapt themselves easily. They need to change
their policies and practices according to those which are applicable in the foreign country. They
further argue that in hospitality sector, it is extremely crucial that the managers take care of the
values and ethics of foreign country and implement those in the programs and activates
conducted by them because this is the only factor which will attract visitors and tourists and
allow the venture to be successful when they accept the working style and norms of the venture.
For e.g. Buddha is extremely respected in Thailand and therefore putting up their statues or using
their symbols in cultural programmes can be highly disrespectful for the local people residing
there.
Further, Katzenbach and Smith (2015), have stated that while expanding in international
markets there are other challenges as well apart form the cultural restrictions. The management
of the company needs to work extensively when planning to expand their business which
involves analysing and estimating the competitor's performance and revenue. They also need to
keep regular tabs on the changing norms and rules in the market so that they can make changes
in their own policy accordingly and planning related to the availability and requirement of
money, resources, suppliers production units etc. are critical factors before deciding to expand
globally. Therefore, they state that the firm needs to include all the factors in their analysis and
form a relevant and comprehensive development plan.
Therefore, the above review and critical evaluation helps in determining that despite
some negative aspects like cultural difference, traditional boundations etc., the company should
go for global expansion by opening Hotel in Phuket as the methods of expanding are very wide
and company can avoid risks and after they establish themselves they can open a chain of
restaurants under their brand name in and around Phuket and when the researcher will generate
relevant results after conducting his research, the plan can be implemented accordingly.
4. Research Methodology
Research methodology involves various tools and techniques which will help the
researcher in identifying and implementing the relevant tools that will assist him in conducting
research.
Research Approach:- Research approach is basically used for determination of the problem that
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researcher will address identify and select the best method in which he will conduct research.
There are two approaches inductive and deductive approach. Inductive approach is used for
gathering qualitative data by application of various models and theories. It is used for collecting
qualitative data. Deductive approach on the other hand is used for formulating hypothesis which
are then used for conducting research by formulating appropriate strategy and implementing
models (Kumar, 2019). In this, researcher will use Inductive Approach for collecting qualitative
data relevant to the establishment of Hotel Phoenicia in Phuket so that the chain can be
established successfully.
Research Philosophy:- Research Philosophy determines the process through which data will be
gathered, analysed and then interpreted. There are two major philosophies i.e. Positivism and
Interpretivism. Positivism is used when the researcher intends to collect scientific evidence and
hence gather data to form appropriate conclusions. Interpretivism on the other hand is used when
human nature is studied and facts related to the personality need to be collected and interpreted.
For the present research, researcher will use Interpretivism Philosophy as he needs to collect
data related to various external and internal factors on Phuket which will help him in achieving
the desired objectives.
Data Collection:- Data Collection process involves gathering of primary or secondary data
relevant for conducting the research (Silverman, 2016). Primary data involves collection of facts
and figures by the researcher himself through questionnaire, interview method etc. and
Secondary data involves taking reference from already published work like magazines, journals,
reports etc. In the present research, researcher will use secondary data for collecting information
from various books, market research reports available for general public, various documents
related to national policy regarding hotel industry in Thailand, online journals and articles,
statistical information related to the number of tourists and visitors etc.
Methods Used:- In this research, researcher will use data collected from secondary sources
related to the qualitative aspects. Applying right method in research is a key factor in collecting
correct data and analysing the relevant information which will actually assist the purpose of
research so that Hotel Phoenicia can be established successfully in Phuket.
Ethical Issues :- Here, the researcher has to fill a declaration form that all the data that has been
used by him is properly referenced and only that data has ben used which was available for the
general public i.e. no pirated data has been used for collection and analysis. The sources of data
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involving use of intellectual property will also be done by researcher only after obtaining
permission form the relevant authority (Alvesson and Sköldberg, 2017).
5. Potential outcomes
To stay competitive in the market, business has to develop the new product or services to
their customers. In the same way, Hotel Phoenicia also wants to establish its new unit in different
country with an aim that it raise the brand image at global level. By establishing the unit in
Phuket, the company will reach to new customers and also access new talent as well. Apart from
this, through this, company also improve the customer confidence, in which the biggest
advantages of physical expansion against selling the things to the target country using e-
commerce is such that the customer are likely to have increased trust in their company. On the
other side, using different models and framework it is also observed that company has to
consider all the micro and macro environmental factor in order to establish the brand image
internationally.
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