Business Development Plan for Let's Go Tanzania - Desklib

Running head: BUSINESS DEVELOPMENT PLAN
Business Development Plan
Name of the Student
Name of the University
Author’s note

1Chapter 6: Evaluation of the business planBUSINESS DEVELOPMENT PLAN
Executive Summary
The purpose of the project is to develop a comprehensive business plan for a new travel
management company that will prove to the one stop solution to all the travel plans of the people
who are planning to visit Tanzania. The organisation will be called let’s go Tanzania and it will
promote the tourism of the country as well as celebrate its rich culture and heritage. The
organisation is a partnership venture, there are three partners of the firm and in the initial stages
the people associated with the organisation are the only ones who will serve as the main
resource.
This report has six chapters in which the business idea, business model, business concept,
business scenario, industry etc has been analyzed in order to understand the prospect of the
company in the future. This document with help the entrepreneurs gather fund for the venture as
well.
The methodology of the project is as follows: the first chapter introduces the business idea
followed by understanding and explanation of the business concept. The literature review section
is an analysis of the industry and the external business environment which is important to
understand before commencing on the business. The feasibility and the methodology section
have secondary research and references which prove the prospect of the business and in the last
two chapters the business plan that has been made is analyzed with the help of various academic
tools.
The business idea is viable and is quite possible considering the resource that the owners have as
well as the ones that are required by the company are available.

2Chapter 6: Evaluation of the business planBUSINESS DEVELOPMENT PLAN
Contents
Chapter 1: Introduction....................................................................................................................6
1.1 The rational of the business opportunity...............................................................................6
Figure 1: Total contribution of travel and tourism to GDP.....................................................7
1.2 Scenario chosen.....................................................................................................................8
1.3 The Mission of the company.................................................................................................9
1.4 The Vision of the company....................................................................................................9
1.5 The Aim of the project...........................................................................................................9
1.6 The objective of the business plan.........................................................................................9
1.7 Structure of the business plan................................................................................................9
Chapter 2: The Business Concept..................................................................................................11
2.1 Introduction..........................................................................................................................11
2.2 Description of the Business Concept...................................................................................11
2.3 The product or service description......................................................................................12
2.4 The Target market................................................................................................................13
2.5 Positioning strategy.............................................................................................................14
2.6 Value Added........................................................................................................................15
2.7 Who is Involved...................................................................................................................15
2.8 The window of opportunity.................................................................................................15

3Chapter 6: Evaluation of the business planBUSINESS DEVELOPMENT PLAN
2.9 Chapter summary.................................................................................................................16
Chapter 3: Literature Review.........................................................................................................17
3.1 Introduction..........................................................................................................................17
3.2 Industry analysis..................................................................................................................17
Porter’s five force analysis........................................................................................................18
3.3 Chapter summary.................................................................................................................20
Chapter 4: Feasibility/Methodology..............................................................................................21
4.1 Introduction..........................................................................................................................21
4.2 Market Research..................................................................................................................21
4.3 Market Analysis...................................................................................................................24
4.4 Product/Service Feasibility..................................................................................................27
4.5 Organisation feasibility........................................................................................................30
4.6 Financial Feasibility.............................................................................................................31
Figure 2: Break-Even Analysis..............................................................................................34
4.7 Chapter summary.................................................................................................................35
Chapter 5: Analysis of the business model....................................................................................36
5.1 Introduction..........................................................................................................................36
5.2 Strategic analysis of the business idea.................................................................................36
Figure 3: Porter’s Value Chain model...................................................................................38
5.3 Competitive advantage and sustainability...........................................................................44

4Chapter 6: Evaluation of the business planBUSINESS DEVELOPMENT PLAN
Figure 4: Porter’s Generic Strategies.....................................................................................45
5.4 Selection of strategies for success.......................................................................................47
5.5 Chapter Summary................................................................................................................47
Chapter 6: Evaluation of the business plan....................................................................................49
6.1 Introduction..........................................................................................................................49
6.2 Overall assessment of the business plan..............................................................................49
6.3 Business plan schedule........................................................................................................52
6.4 Is the business viable?.........................................................................................................54
6.5 Discussion of critical success or failure factors...................................................................55
6.6 Chapter summary.................................................................................................................56
Reference List................................................................................................................................57
Appendices....................................................................................................................................63
Appendix 1:...............................................................................................................................63
Appendix 2:...............................................................................................................................64
Appendix 3:...............................................................................................................................65
List of Figures
Figure 1: Total contribution of travel and tourism to GDP.............................................................7
Figure 2: Perceptual Map...............................................................................................................15
Figure 3: Competition in the Travel and tourism Industry (SMEs)...............................................22
Figure 4 :Break-Even Analysis......................................................................................................36

5Chapter 6: Evaluation of the business planBUSINESS DEVELOPMENT PLAN
Figure 5: Porter’s Value Chain model...........................................................................................40
Figure 6: Porter’s Generic Strategies.............................................................................................48
Figure 7: Business model Canvas..................................................................................................52
Figure 8: Gantt chart......................................................................................................................62
List of tables
Table 1: Start-Up Requirements....................................................................................................32
Table 2: SWOT Analysis...............................................................................................................44

6Chapter 6: Evaluation of the business planBUSINESS DEVELOPMENT PLAN
Chapter 1: Introduction
1.1 The rational of the business opportunity
The industry that is going to be discussed in this report is related to the travel and tourism
industry. And the country that has been chosen is Tanzania. Tanzania is an east African country
that has gained popularity owing to the natural beauty and the diverse wilderness found in this
region. 6 world heritage sites and exotic beaches in the world are some of the major attractions of
the country. Some of the industries that have resulted in the economic growth of the country are:
mining, natural gas and construction business have resulted in 6.8 percent growth
(Standardmedia.co.ke 2018). Tourism on the other hand, has gained importance in the country
during the 1990s, it has been reported that the industry has contributed 13.3 percent of the total
GDP of the country which amounts to TZS13, 097.8bn (USD5.9bn), in 2016. It is predicted to
rise in the future. The figures fundamentally reflects the financial activity generated by industries
in the travel and tourism sector like other passenger transportation, hotels, travel agents and
airlines as well as restaurants and other activities which are directly or indirectly associated with
tourists (Standardmedia.co.ke 2018).

7Chapter 6: Evaluation of the business planBUSINESS DEVELOPMENT PLAN
Figure 1: Total contribution of travel and tourism to GDP
Source: (Wttc.org 2018)
Therefore, it can be said that the industry is lucrative and has an opportunities for new
business enterprise. For adventure loving tourist this country offers some of the world’s greatest
safari tours. The tourism industry not only contributes to the economy of Tanzania it
significantly impacts the rate for employment as well (Wttc.org 2018). Technology has enabled
tourism industry to offer their customers with user friendly customization and features, tourists
do not go to a travel agency and plan a trip, rather such travel management websites provides a
plethora of facilities all at the same place. It is regarded as an opportunity as the tourism industry
is flourishing in Tanzania and the industries that are associated with the tourism management
industry like hotels and resorts are developing rapidly. Safaris are a major attraction of Tanzania,