Business Development Plan for Calm and Relief Hotel in Malta

This business development plan discusses the opening of Calm and Relief Hotel in Malta, including the rational, vision, mission, design and structure, feasibility research, business model, and financial forecast.

Business Development
Plan

Table of Contents
INTRODUCTION...........................................................................................................................1
Rational of business................................................................................................................1
Vision of business...................................................................................................................1
Mission of business................................................................................................................1
Design and Structure of the model.........................................................................................1
Relevant Model and Information sources...............................................................................2
Assumptions...........................................................................................................................3
Time scale...............................................................................................................................3
THE BUSINESS CONCEPT...........................................................................................................6
Facilities and services.............................................................................................................6
Target market..........................................................................................................................6
Value added and specific feature............................................................................................7
Who is involved......................................................................................................................7
Windows of opportunity.........................................................................................................8
Management...........................................................................................................................8
FEASIBILITY RESEARCH...........................................................................................................9
Primary and Secondary data needs.........................................................................................9
Research methodology.........................................................................................................10
5 Key areas of feasibility research.................................................................................................12
Product and Service feasibility ............................................................................................12
Result of product and services feasibility.............................................................................13
Market feasibility .................................................................................................................13
Financial feasibility..............................................................................................................18
Ambition Vs Ability.............................................................................................................21
THE BUSINESS MODEL.............................................................................................................23
The core strategy..................................................................................................................23
Business canvas model.........................................................................................................23
BUSINESS PLAN FOR A NEW HOTEL IN MALTA ...............................................................30
Executive Summary .............................................................................................................30

Geographical market location and customer acceptance......................................................30
Business potential ................................................................................................................30
Strategies for competitive advantage ..................................................................................30
The Team .............................................................................................................................31
Legal structure......................................................................................................................31
Partners.................................................................................................................................31
Business Plan for Calm and Relief Hotel ...........................................................................31
1. The industry, company & products..................................................................................32
2. The Market.......................................................................................................................32
3. Marketing approach..........................................................................................................33
Potential risk for the Calm and Relief Hotel.......................................................................34
Critical success factor...........................................................................................................35
Visibility of plan ..................................................................................................................36
Visibility of Budget and investment.....................................................................................37
FINANCIAL FORECASTED.......................................................................................................37
REFERENCES..............................................................................................................................39

INTRODUCTION
Business is the collection of activities which are planned and conducted for considering
activities in better and effective manner. There is change in activities as well, but operations gets
because of change in external market (McKeever, 2016). There are many changes which are
taking place in external market such as change in political policies, legal laws and regulations,
etc. hence it is important and specific for people to consider and deliver changes properly . When
individual wants to operate in industry by opening new organisation and performing activities for
achieving activities properly, then it is important that managers have to determine strategies with
which they can operate properly. In this report, there is discussion about “Calm and Relief” hotel
in Sliema, Malta.
Rational of business
This study is conducted in order to collect and make clear to operate as new organisation.
There are many issues which arise while working in the association, so it is important and
relevant for people to understand and evaluate changes properly (Muzellec, Ronteau and
Lambkin, 2015). So in this study, there will study of internal or external market factors, so
entrepreneur will take actions accordingly. With change in commercial operations, it is clear that
operations has to be performed in lieu to it, so they can take business activities as positive
outcome. So with this study, there will study of proper information about ways to deal with
changes in external market.
Vision of business
Vision of hotel “Calm and Relief” is to provide best and calm environment in Hotel
where consumer can feel pleasure with heritage view of Malta.
Mission of business
Mission of Hotel “Calm and Relief” is to provide variety of services with touch of Malta
heritage and culture.
Design and Structure of the model
In order to complete and study business development plan properly, there will use of
information with understanding and evaluating changes properly. It is important for individual to
set some specified format in which information can be communicated. Structure of this report is
as under-
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Introduction:- In this section, there is brief overview about conducting activities and
completion of information about new hotel “Calm and Relief” (Kusumaningrum and Hidayat,
2016). This section is important because this provides complete information about new business
venture, hence it is easy to conduct other activities of this report.
Business concept:- This is whole sole collection of information which is based on reason
to launch new business. There is complete and specific information through which an guide path
can be known for which business is expanding (Allen, 2017). There is change in activities while
conducting operations for launching “Calm and Relief” and making efforts to get positive
outcome. There is something different which is provided by Calm and Relief hotel which is
disclosed in this section.
Feasibility study:- While operating in industry, there are possibilities that external
market factors are not working in context of these policies. So with the help of this study, there
will study of industry, market, product, financial assistance, etc. which are core factors which has
to considered fire getting positive impact (Cheng, Yang and Shen, 2015). This study is important
because activities will plan accordingly and actions are plan according to it. Hence it is clear that
there will positive outcome from conducted activities.
Business Model:- Business model is use of authentic way to get positive outcome from
conducting activities. There is requirement of studying ways to excel in industry such as
financial sources, entry mode, hiring of workers, etc. With the help of which business activities
are conducted in systematic manner (Funkhouser and et. al., 2015). If there is change in external
market, then also individual can perform activities smoothly because there are some beck up
with operators of Calm and Relief hotel.
Business Plan:- This is the section in which execution of new business plan is possible,
with change in business external environment factors, it will be easy and specific for people to
determine and eliminate activities properly. Calm and Relief hotel can be established
successfully, if business plan is implemented successfully.
Relevant Model and Information sources
There is requirement of some models and theories with the help of which individuals can
collect information about external market (Smith and Wong, 2016). While planning to operate in
industry, there is requirement of change in business operations and proper evaluation of external
market which is possible with the help of use of different models and theories such as Porter' five
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force model which is used to determine competitive advantage in industry. There will study of
feasibility study to determine sources of finance,, industrial analysis, organisational growth and
development, etc. which assist in getting positive outcome (Thébaud, 2015).
In order to determine scope of growth for Calm and Relief hotel in Malta industry there
will study of primary and secondary information. There will use of complete and appropriate
information, so it provides information about direction to conduct activities.
Assumptions
There are some assumptions as well which will be considered while running business and
planning to operate in industry as new organisation. Some assumption are as under-
 there will availability of sources of finance through external sources and they are within
the cost setted by Calm and Relief hotel.
 There will more tourism in this country at the year end and at occasion of Christmas
because they are the targeted consumers fr this organisation.
 Local people are ready to invest in this organisation and employees are available with
required skills and at affordable prices.
Time scale
Time scale refers to the plan which is used y individual to determine time for completing
the activities. It is important for individuals to determine activities through which business can
be expanded in better and effective manner. In order to operate in industry, there is requirement
of change in business activities which is possible when operations are properly planned. There
will use of Gantt hart for determining time required to complete the task. With the help of this
techniques, activities for launching business successful and time associated with are clear and
appropriate. Hence it will be easy for individual to determine time required to complete the
business development plan.
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THE BUSINESS CONCEPT
Calm and Relief hotel is opening with a n aim to provide calm environment to individuals
when they are dinning at their outlet. There will some changes which are specific and appropriate
for determining changes properly (Souto, 2015). At Calm and Relief hotel, there will ambiance
of heritage look of Malta, hence it is easy for them to attract tourist people at the outlet. They
offers varieties of food to tourist but with taste of Malta and its locality. New business in
hospitality sector operating in Malta gets hype in industry because this is their geographical
region which is coming as new destination for tourism. Hence in this case, people wants to know
about culture and trends of Malta. Hence it is important and specific for people to understand and
evaluate changes properly.
There is much scope of growth and development and competition in hospitality sector, so
many organisations are operating in this sector. Calm and Relief hotel will set up at Porsche
location of Sliema, Malta which is near by airport and metro station, hence people prefers to
spend some time in peace (Hutzschenreuter, Kleindienst and Lange, 2016)). This location will
near to corporate area as well, hence people can plan to organise small meetings, get together at
Calm and Relief hotel. Initially entrepreneur of Calm and Relief hotel will open at Sliema and
then remaining outlets will open after its success.
Facilities and services
At Calm and Relief hotel, there is facility of dinning, valet parking, free Wi- Fi, Air
cooling, Coffee and tea facility, light music, calm environment, etc. with which individual can
take rest as well in case of long distance journey. There are some facilities as well such as
library, wheel chair access, baby seat, board games, 24*7 accessibility, etc. which makes tourists
satisfied and they are able to determine and manage activities properly. They are providing
menu items which are based in Malta (Doleski, 2015). There will complete and specific
information with people who are visiting Malta from other regions. There is no other
organisation which provides Malta touch in their services with peace and calm environment.
Target market
There is some specific type of consumers for which mangers of Calm and Relief hotel are
launching this organisation. When there is specific and relevant changes in activities, then only it
is effective for people to understand and evaluate activities properly. Target consumers for Calm
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and Relief hotel are tourist who come to visit Malta for different purpose. This hotel is situated
near corporate area, hence there is requirement of change in working style as well because
people prefers this place for meeting and small get together (Mos, 2015). Hence it is essential
for managers of Calm and Relief hotel to maintain satisfaction among those people.
Value added and specific feature
There are some features which makes Calm and Relief hotel different from others. There
are many organisations which are serving individuals with hospitality services, but if managers
of Calm and Relief hotel wants to operate in industry, then they have to come with something
new and trendy-
 There is peace in the environment Calm and Relief hotel where peace can conduct
activities properly. There are different rooms in this hotel, so people want want to
conduct meeting or need space of any other official purpose can take it properly. It makes
Calm and Relief hotel different from others (Milovanovic, 2015).
 The menu style of Calm and Relief hotel is Malta and dishes is of that taste, so this is the
specific feature. Hence tourist from other countries also get complete and relevant
information about culture of Malta. The dressing sense of chef, waiters and other staff of
Hotel is also about Malta, hence it is easy for people to get knowledge about it.
 Ambience of Calm and Relief hotel is different and unique because colour combination
which are used in conducting this study are different and attractive (McNulty and
Brewster, 2017). In room where meetings and conferences can be conducted have light
colours which proper facility of mikes, speakers, etc.
Who is involved
Calm and Relief hotel is a hotel of Malta cuisine taste, ambiance, menu style, etc. also
belongs to it. This organisation is operated by four individuals who are studying in same college
and wants are operate as entrepreneurs (Verbeke, Puck and Tulder, 2017). These individuals
have complete and specific information about market, so they do market analysis. Two out of
four individuals are good in market, so they operate in this sector. It is important and relevant for
people to understand and determine changes properly. This business is under partnership, so this
is properly registered under laws and regulations. There are seven individuals whoa re required
to conduct operations at Calm and Relief hotel and serving consumers with best. 2 are chefs who
have experience in this field and they are best in providing cooking Malta dishes. Two
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individuals are for cleanliness. Remaining two will take orders and serves food and one
individual will seat at counter and partners have shifts hence they take care about management
and taking feedbacks from consumers (Korhonen, Honkasalo. and Seppälä, 2018). There is
proper distribution of work, so tit is easy for workers to perform activities properly. As business
is registered under legal laws and regulations, so it will be easy for people to rely over it and
conduct activities properly.
Windows of opportunity
There are many opportunities and growth scope for Calm and Relief hotel because this is
the sector in which people want satisfied and reliable services. There are many changes which
are taking place in consumer demand such as change in taste, so in tis case workers of Calm and
Relief hotel have to analyse it and give better outcome (Aithal, 2015). Partners of Calm and
Relief hotel are very innovative, they wants to provide new services and variety of products to
consumers, hence they come with new dishes and take regular feedback from consumers. There
is variety of food in menu for corporate people as well as culture and heritage taste food for
tourists as well. Hence they get success in industry with determining and evaluating their
demand. Management of Calm and Relief hotel can collaborate and deal with tour operators,
travel agencies, hence there will more scope of growth because there will more tourist consumers
and brand image of organisation can be maintained.
Management
There are many activities which has to be considered by managers of Calm and Relief
hotel because it is not easy and simple or individuals to run business. There is dynamic business
environment in current market, so it is important for managers of Calm and Relief hotel to
manage activities properly (Golkar and Cruz, 2015). This association is providing dishes of
Malta cuisine, hence it is important for people to understand and determining changes properly.
In order to manage activities properly, menu and activities for workers are decide an weak
earlier, hence there will less possibilities of issues in the organisation. There is proper use of
leadership and direction through which operations are conducted for achieving set targets.
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FEASIBILITY RESEARCH
Feasibility research is the initial design stage of a project that work toward brining all the
elements of knowledge together in order to determine the validity of the project. The feasibility
study is mainly performed once the idea get generated in order to explore about the idea and
determine whether the current idea will work or not according to the current situation as well as
several factors present within the marketplace (Bowen and et. al., 2009). Hence it is an
evaluation of proposed project which conduct an in depth study for determining the validity as
well as reliability of particular plan. This feasibility plan is consider to be very crucial for setting
up a new business as it help in determining that whether the plan get successful within the
marketplace or required some changes to be made. Therefore, for determining the main issues
that may be faced by Calm and Relief hotel it is required to formulate an feasibility plan which
support in investigating regarding the market as well as internal capability that business possess
which support in achieving the market sustainability at the initial stage. Additionally by
performing feasibility study the Calm and Relief hotel become able to identify the viability and
soundness of the project in context of product/services, industry, financial feasibility and
organisational feasibility. This study will also help in identifying the short coming which the
hotel is required to remove for achieving the competitive edge as well as sustainability in
marketplace.
Primary and Secondary data needs
For analysing the feasibility of the business plan it is crucial for the Calm and Relief hotel
to collect information from several sources so that they can determine the accuracy and validity
of plan as per the challenges that are present in marketplace that help in evaluating ideas as per
their effectiveness (Wang and et. al., 2009). These informations is mainly gathered through two
major sources of data collection that are known as primary as well as secondary which can be
better understood using following description:
Primary method:- It refers to the process of collecting data for the first time which is not
yet been gathered by any other person over such topic previously. This is also termed as first
hand information which is mainly gathered by making use of methods like survey, interview or
experiments (Ao and et. al., 2010). The information that is gathered with the help of primary
sources are consider to be more accurate and fresh as it is directly gathered by researcher from
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his/her observation by keeping in mind the current area of study. But it is not possible to gather
primary information for Calm and Relief hotel, as it is a new business which is not yet been
launched and is planned to get establish (Zhang, Yang and Liu, 2011). Therefore it is not
possible to gather fresh information regarding this business idea from the consumer as well as
other persons until and unless it get existence within the market.
Secondary method:- It refers to the process of gathering information for a particular area
of concern from the data which is already get published by some another person previously over
the similar area of study (Li and et. al., 2016). The secondary information can be collected from
several different sources such as books, journals, articles, past record of industry and many more.
In order to conduct feasibility research over the business plan of the Calm and Relief hotel,
online article over the industrial research that can be used for determining the viewpoint and
understanding of several people in term of business establishment (Xing and et. al., 2010).
Therefore, in order to perform the feasibility study over the business idea of Calm and Relief
hotel in order to identify the future performance as well as profitability of the business,
secondary method of data collection will be used in order to support them provided information
for formulation of effective strategy. It is so because the secondary data will help in developing
an understanding regarding the market situation as well as threats or opportunity present within
marketplace.
Research methodology
The research methodology is that section of an investigation where the data is gathered,
evaluate, analyse and interpret the information in effective and systematic manner in order to
achieve the desired objective. It provides a detail description regarding the type of tools and
techniques that will be used by the investigator in order to perform this investigation in effective
manner (Kumar, 2019). These tools and techniques further support in directing the ways that
must be adopted by them in order to perform the investigation effectively so that desired aims
and objective can be achieved. For performing the investigation regarding feasibility analysis of
Malta and its market situation following tools and techniques are taken into consideration:
Research design:- The research design is one that help in deciding the set of procedures
as well as structure that investigator must follow in order to achieve its aims and objectives. It is
mainly serve as a kind of plan that help in organising, managing and presenting the information
in more creative and effective manner (Rosskam, 2018) . There are three type of research design
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such as exploratory, experimental and descriptive (Bresler and Stake, 2017). Among them
descriptive research design will be taken into consideration as it support in performing the
detailed investigation over a particular event or situation which in turn contribute toward
performing in depth evaluation regarding the data which is available.
Type of investigation:- The type of investigation that an investigator adopt in order to
perform the research work also plays a significant role within the accomplishment of its aims and
objectives. The investigation are of two type such as qualitative and quantitative. In this the
qualitative investigation is one where information is gathered by considering the theories and
concepts (Ledford and Gast, 2018). On other hand the quantitative investigation is one where
information is gathered as per the numerical facts and figures. For performing this investigation
the qualitative mean of investigation will be taken into consideration as it provide a theoretical
framework that help in presenting in depth understanding to the information which is required by
the Calm and Relief hotel for getting established within the market of Malta.
Research Philosophy:- In order to perform an investigation there are mainly two type of
philosophies that are used for performing investigation such as positivism and interpretivism.
Within these the interpretivism philosophy will be taken into consideration as it support in
interpreting as well as analysing the data which is related with the human perception, views and
ideas (Fletcher, 2017). The main reason behind selecting this philosophy is that the present
research is based on secondary data where the information is gathered from already published
sources so it become easier to evaluate the information effectively.
Research approach:- Within an investigation there are mainly two type of approaches
that are taken into consideration such as inductive and deductive. Among them inductive
approach is one which support in gathering the data in detailed manner by performing the
detailed study about the current study (Irwin and Springgay, 2017). On other side deductive
approach is one where work performed over the scientific as well as statistical data so that
information can be presented in effective manner. For performing this study the inductive
approach will be taken into consideration which allows investigator to perform detailed study
and is also suitable for qualitative type of investigation (Ndlovu-Gatsheni, 2017).
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5 Key areas of feasibility research
Product and Service feasibility
This component is considered as one of the integral determinant in every type of
organisation as it is link with creating customer satisfaction and also to improve company's
brand reputation within existing industry in an efficacious manner. However, with the
application of product and service feasibility over firm's manufacturing and production division
it enable them to maintain high quality while producing any specified product for targeted
audience. Hence, for acquiring better position in current marketplace Calm and Relief Hotel
make an initiative to examine customer taste or preference as well as Malta's market competition
and trend so that they can bring high degree of satisfaction among customer in an improved
manner. Along with this, Calm and Relief Hotel make an effort to conduct feasibility analysis of
various trends in cuisine dishes so that they can acquire accurate idea about consumer demand in
Malta region which benefit firm by improving its sales volume in an amended way (Weisz and
et. al., 2017). For attaining the same, Calm and Relief Hotel organise market investigation with
an aim of identifying consumer demand or trend, analyse industry competition, population
capability or willingness to consume products, convince in transportation and many more.
Hence, establishment utilise different online tools, social media platforms, official websites,
articles, journals to gather information or data in terms of customer feedbacks or reviews
regarding different cuisine dishes. Furthermore, making usage of these traditional and modern
technique, it empower company to reach wider range of population and can obtain reliable data
in a stipulated time frame. Moreover, by taking such effort organisation is able to examine its
competitors potentiality and also the taste of population in regard of cuisine dishes. Due to
which, it help company to deliver best quality of product with unique flavours and taste as well
as can gain competitive advantage among its rivalries. In addition to this, with the help of such
market investigation Calm and Relief Hotel analysed that Malta is one of attractive tourist
destination as it has the capacity to capture the attention of tourist from different part of the
globe. However, such reviews provides enormous growth opportunity for Calm and Relief Hotel
in context of offering high quality of food by keeping delicious taste. Additionally, it also motive
hotel to deliver food by combining continental flavours with an intent of maintaining Malta
cultural environment within its business premises in an impressive style.
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Result of product and services feasibility
As per the above discussed Calm and Relief Hotel's feasibility analysis of product and
service, it has been signified that company is capable enough to achieve better outcome in
implication of business plan in a practical manner. This is because, on the basis of Malta market
evaluation, majority of the population are in demand of consuming some uniqueness and creative
taste or flavours in dishes that benefit establishment to enlarge its sales volume and also can
obtain positive response from targeted audience in an prompt mode. Additionally, by conducting
Malta market investigation, it has been identified that the level of competition among different
companies is relatively high. This is because, the location of Malta is recognised as a most
attractive spot for tourist and also most of its local population prefer to get employ as well as
expand business in tourism sector (Anderson, Fontinha and Robson, 2019). Hence, such
opposition and trend among people help Calm and Relief Hotel to explore its market share or
size within Malta and also can place its brand in a competent position in a prescribed time limit.
Along with this, establishment also prefer to operate business in various segments like
restaurants, bars, cafe, hotel, chefs and so on which drive them to attain sustainable growth and
development in an amended manner. Furthermore, an effort of Calm and Relief Hotel to deliver
most famous cuisine dishes along with a combination of Malta local food taste, it support
organisation to maintain its customer base in an increasing manner and also can enlarge its
overall proficiency ratio in a better manner.
Market feasibility
This determinant is viewed as a process or procedure of examining the market
potentiality and also the degree of opposition between companies with an aim of accomplishing
the pre determined objective and achieving desired sales target within prescribed time limit in an
trenchant or expeditious manner. Hence, Calm and Relief Hotel make an attempt to perform
market feasibility about Malta location in order to acquire better understanding about dynamic
business environment as well as different factors which contributes directly towards growth and
development of organisation (Rejeski, Zhao and Huang, 2018). To achieve the same, Calm and
Relief Hotel's manager make use of secondary sources such as articles, journals, review of past
survey, observation, analysing different case study presented by several scholars and many more.
With the help of secondary method, firm is able to determine accurate information or overview
about market condition and consumer need or want for gaining profit maximisation. Along with
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this, Calm and Relief Hotel also collect data by taking feedbacks from tourist who arrives in
Malta in order to analyse their experience which they have accomplished during the visit in
Malta. However, by taking such type of initiative, it enable Calm and Relief Hotel to determine
the accurate situation of Malta business environment and also the demand of food or dishes
among population that assist enterprise to enhance its productivity ratio in a better mode
(Collins, 2018).
Apart from this, the aspect of market feasibility also encompasses the description
regarding customer traffic in the field of market, sales projection, growth opportunity and current
competitors capability for enabling an organisation to explore volume of sales in an amended
way. Hence, with the application of such analysis within the business function of Calm and
Relief Hotel it aid them to identify competitors market strategy as well as can also determine the
factors which help firm to cope up with such current or emerging competition in an innovative
style inside Malta tourism division. However, the secondary data related to market feasibility has
been presented below:
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The shown bar graph demonstrates the idea about number of arrivals in Malta tourist
accommodation from the year 2006 to 2016. However, it has been signified that the tourist visit
in Malta has been rapidly increasing as in 2011 it was around 1.3 million which has been raised
to 1.6 million in 2016. Hence, on the basis of analysis, it can be determined that there is a wide
range of opportunity for Calm and Relief Hotel tp place its brand in an aggressive and competent
position among rivalries in a productive style. Along with this, establishment can also capture the
attention of large number of population towards the brand by developing suitable marketing
strategies and tactics as per changing demand or need of customer.
In addition to this, it has been analysed that Malta is one of the fastest growing and
developing country in terms of economy as its main contributor is tourism which has been able
to attract the attention of several foreigner across the world towards its tourist spot in a better
way. Due to such flow of tourists within Malta, it enable them to improve its overall capital level
in an increasing manner (Green and Thorogood, 2018). To this context, there are various factors
or determinants that support Malta to become the prior position inside tourism sector is that it
contains low crime rate which impose positive response in the mindset of population towards
Malta and motive them to make a visit or spend their holidays without any fear of harm and
insecurity. Moreover, Malta authority appointed 430 police officers for each 100000 people who
lives in this region. Additionally, it also has Luxury Real Estate market which capture the
interest of celebrities of all over the world towards Malta in order to gain unforgettable memories
from travelling such location. Henceforth, some of the factors which support Malta to enhance
and enrich its economic condition in an effectual way is presented below:
According to the evaluation of Malta analysis, it has been identified that Malta is able to
explore its economic state in an growing manner. However, the foremost benefit that Malta
obtain by enhancing its tourism division is that it reduced its unemployment rate by 3.7%.
Hence, establishing hotel in such geographical region enable Calm and Relief Hotel to acquire
impressive position among competitors. Moreover, offering cuisine dishes with a combination of
Malta local food help hotel to enrich its capability to gain competitive edge in a productive style.
Additionally, creating internal ambiance as per Malta culture it drive Calm and Relief Hotel to
obtain profit maximisation and increased level of productivity ratio.
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Industrial feasibility
The aspect of industrial feasibility in research is related to those procedure or process of
market analysis which enable an organisation to identify and determine the potentiality of
competitors as well as also drive establishment to take corrective course of action in order to
gain competitive advantage. In relation to Calm and Relief Hotel, its foremost purpose is to
conduct its feasibility analysis in the area of hotel industry of Malta (Thomas and et. al., 2017) .
The reason behind feasibility analysis of hotel sector is to examine and evaluate the existing
marketplace opportunists as well as threat so that Calm and Relief Hotel can implement best
strategic decision which lead them to accomplish its defined objective in an amended mode.
However, to gather information in regard of this Calm and Relief Hotel make use of secondary
data collection method that help them to gain various scholars opinion or views in an improved
manner.
To understand and analyse the industrial feasibility, Calm and Relief Hotel make an
effort to imply Porters Five force model which is viewed as a strategic management approach
that link with determining the market competition and examining the capability of competitors in
terms of obtaining profit maximisation among rivalries in a better mode. However, the
explanation of Porters Five Force model in context of Calm and Relief Hotel are discussed
below:
Threat of new entrants: Under this component, it is link with those aspect in which it
states the potentiality of a new firm to place its product in a new marketplace because potential
entrant is regraded as a major source of competition within an industry. The range of
commodity, quality, price, capacity of new entrants impose competition between companies in
terms of enhancing proficiency ratio (Wilson and et. al., 2017). In regard of Malta hotel
industry, it's threat for new entrants is moderate in nature because there is no such strict and
lengthy procedure of establishing firm within a marketplace. Because of this it is a greater
opportunity for Calm and Relief Hotel as they easily get enter into the hotel industry for
operating their new business and as the idea is new to market which require lots of investment by
other to copy its idea which ensure that the hotel will get higher profitability at marketplace.
Threat of substitutes: - This element focuses toward the identifying the threat which are
present within the industry for existing businesses in term of substitute of product or services
which they are offering and have the capacity to attract the customers by offering them similar
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benefit at relatively lower price as compare to existing players . This risk is moderated for Calm
and Relief Hotel as very few substitutes are available in market i.e. from small hotels that offer
accommodation services at lower price. But as the Calm and Relief Hotel is offering its services
by targeting corporate customer it offers variety of services as per their need and want such as
conference room and related facilities, wi-fi, business meeting arrangements and many more
which may not be available to substitute. Therefore, the risk is relatively moderated for the Calm
and Relief Hotel as by delighting the customer effectively it can avoid the risk of brand switch in
future.
Bargaining power of suppliers: The power of supplier within the hotel industry id
relatively lower as the hotel businesses have the power over their labour, trained staff, personnel
and the industry holds up huge demand for them. This is a big opportunity for the Calm and
Relief Hotel as the bargaining power of supplier is relatively lower it become easier for the hotel
to regularly upgrade and improve its services as per the requirement of customers so that it
become easier to compete with the rivals within the industry.
Bargaining power of buyer: The bargaining power of buyer is relatively lower and this
is so because Malta is a country for huge number of tourisms visit to experience the beauty of
country and spend their holidays. Therefore, there is a huge requirement for the accommodation
related services which provide the Calm and Relief Hotel an opportunity to serve its customers
with more effective and better services that further contribute toward achieving the market share
and competitive advantage within the hotel industry of Malta (He and et. al., 2017). As a result
of which the Calm and Relief Hotel also have an advantage of charging high price over its
services as it is offering larger amount of additional and high-quality services to the corporate
customers which attract them to pay higher.
Rivalry among companies: This force mainly put emphases toward evaluating the
competition present within market from the players that are already operating in the market. The
competition within hotel industry of Malta is relatively higher as the country experience millions
of tourists visits each year that increases the opportunity for hotels as a business to offer them
accommodation services. Therefore, the competition for Calm and Relief Hotel is relatively
higher as larger number of hotels are already present in the market. But as the hotel will be
designed from the perspective of corporate customer it become easier to survive in the market as
17

the majority of hotels are designed to cater the tourist who came to spend and visit the places in
Malta.
Organisational Analysis
Under this element, Calm and Relief Hotel is established as a multi – cuisine hotel who
offer three major three main cuisine i.e. Chinese, Italian, Mexican and also a mixture of local
dish with an aim of delivering unique taste and flavours food items to targeted audience.
Moreover, this particular hotel is wholly based on a theme of partnership in which four friends
divides the responsibilities as well as the ratio of profit and loss in an equal manner. Some of the
peculiar information regarding the role of these four persons are explained beneath:
Four brothers: Calm and Relief Hotel is owned and governed by four friends who
studied in same college and decides to run a business in the form of partnership. However, they
delegate the responsibilities among themselves as per each potentiality and interest as two of
them will be handling marketing and operation section, the other two will take the responsibility
of cooking food as a chefs. Due to such effort by these friends, it empower them to achieve their
objective in an improved mode and also can attain sustainability among rivalries without nay
hindrances.
Shareholders: Calm and Relief Hotel has two shareholders who are interest to invest
their capital over organisation for acquiring high return on investment. Hence, these shareholders
are obliged to obtain 20% of profit of hotel total revenue without taking much participation in
organisation operational activity.
Branch Head: In this, hotel recruited highly skilled three manpower and appointed them
as a branch head with a responsibility of controlling and monitoring the managerial and
operational function in a productive style. Moreover, they are obliged to acquire day to day
review of employees performance towards the desired organisation goal. With the help of such
contribution, it drive Calm and Relief Hotel to enhance its overall sales volume and profit margin
ratio in an amended way.
Financial feasibility
The financial feasibility refers to evaluating the viability of project on financial basis for
identifying whether the business idea will work when it get implemented or organisation
required to arrange more fund in order to perform its activities related with the project. The use
of financial feasibility will support the Calm and Relief Hotel in identifying that whether their
18

business idea get successful or not. The financial feasibility can be performed by determining the
fund which is required to execute the plan, investment for business, break even analysis and
sources of fund etc. This information will further support the restaurant in identifying the
positive or negative outcome that may be faced while conduction of project which help them in
guiding over the investment to be made in the project (Attaran, 2017) . The financial feasibility
performed over Calm and Relief Hotel is mentioned below:
 Start-up capital requirements:- Under this section analysis regrading the overall amount
required for working over business development plan will be evaluated. This capital
consist of money required for taking building on lease, renovating the building,
purchasing furniture, hiring staff members, marketing activities etc. Therefore the amount
would be estimated as per the requirement for determining the capability of Calm and
Relief Hotel to deal with this requirement of fund or not. By performing this evaluation it
has been determined that Calm and Relief Hotel required fund such as
Activities Fund
Building on lease £20000
Renovation of building £60000
Staff recruitment £10000
Marketing activities £40000
Purchasing furniture £30000
 Finding start-up capital funding sources:- When the amount required for setting up the
business is determined the next step is to evaluate the sources through which the fund is
to be generated. This will support Calm and Relief Hotel in determining the adequate
sources through which it can generate fund so that operations can be executed effectively.
As the restaurant is planned to launch by four friends who are planning some future
entrepreneurship. Therefore, these partners will invest their personal capital while having
25% of share within restaurant. Additionally, it is also planned by the Calm and Relief
Hotel to take up the bank loan as it is consider to be the safest sources of arranging
capital. Therefore the Calm and Relief Hotel is having adequate sources to generate fund
which is required at the initial stage of business.
19

 Revenue:- The revenue generated by the Calm and Relief Hotel will depend over the
number of tourist that visit Malta within a specific time period. This is so because the
hotel is having their collaboration with tour operators and travel agencies that support in
brining the tourist as a customer to the hotel. But the tourist traffic within Malta is high at
the time of summer or winter vacations (Attaran, 2017) . Therefore, at that time the
revenue will get generated from the meetings or official get together as the Calm and
Relief Hotel is offering services to the business persons too. Hence, the Calm and Relief
Hotel can maintain its profit margin even within off season too, but at the time of tourism
season it can earn maximum profit.
 Potential return on investment and profit margin:- It refers yo the percent of return that
the Calm and Relief Hotel will provide when it start executing the operations. From the
market analysis it has been identified that the Calm and Relief Hotel can get up to 30%
return over their investment and at that time the profit margin will remain up to 32%.
Return on Investment
Description Year-1(£) Year-2(£) Year-3(£)
Net Profit 45000 50000 54000
Investment 100000 115000 125000
ROI 45.00 43.48 43.20
As per the above mentioned information it has been identified that the net profit of Calm
and Relief Hotel for the starting year would remain around 45000£ when the investment would
be done up to 100000£ and then this will provide the return of around 45%. Additionally in
second year of operation the return over investment that would remain around 43.48 and within
third year it would remain around 43.20 when the investment of 125000£ would be done by the
partners. This information regarding the return over investment will further support the Calm and
Relief Hotel in attracting the investors for the future by influencing them to invest within the
business for its further growth.
Profit Margin
Description Year-1(£) Year-2(£) Year-3(£)
Operating profit 20000 40000 70000
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Revenue 180000 200000 225000
Profit Margin 11.11 20.00 31.11
According to the information which is mentioned above it has been identified that the
estimated profit margin would remain 11.11% for the first year, 20.00% for second year and
31.11% for the third year. This profit margin will remain when the operating profit would be
20000£, 40000£ and 70000£.
 Break even analysis:- Under this a detailed description regarding the break event point
of Calm and Relief Hotel will be performed. The break event point is that situation for an
organisation where it won't be able to earn any kind of profit and at the same time no loss
to the company. So by performing the financial evaluation it has been determined there
would remain 51000£ gross margin when the hotel become able to cross this amount then
it get capable of earning profit. This estimation will support in enhancing the profitability
of business at particular point of sale (Sindhu, Nehra and Luthra, 2017). Additionally it
has been planned that when the hotel get into no profit no loss situation then it will
launch new food dishes so that customer started waiting for new launch every month
which in turn contribute toward regain a push to sale. The break even analysis of Calm
and Relief Hotel is mentioned below:
Sales 3400*30 102000
Variable Cost 3400*15 51000
Contribution 3400*15 51000
Fixed Cost 3400*15 51000
Profit/loss - NIL
Ambition Vs Ability
The Calm and Relief Hotel is planning to set up its hotel within Malta over a Porsche
location of Sliema which is nearer to airport and metro station so that the traveller get a place to
get relaxed from their tiredness which they get from travelling (Morin, Arens and Marsh, 2016).
The main concept behind this hotel is to offer a place to customer where they find peace and get
relaxed by enjoying the heritage as well as food of Malta. This is so because the ambience of
21

hotel is designed as per the heritage of country and along with this it offer variety of dishes of
Malta. The combination of this services and idea of hotel is quite new to the market in which it is
going to be set up which is beneficial for achieving sustainability (Llodrà-Riera and et. al., 2015)
. But in order to determine the opportunities and challenges involved feasibility analysis of plan
is performed to determine the accuracy as well as capability to business in term of determining
its succession chances. From this feasibility analysis it has been identified that the hotel is
ambitious toward the attracting more and more customers to their hotel by arranging the services
as per the heritage and real culture of Malta. In order to achieve this it also holds up the ability as
the Calm and Relief Hotel is collaborating with travelling agents and tour operators that will
support in brining more and more tourists to hotel which contribute toward broadening the
customers base as well as profitability chances for the hotel. Despite of this, it has been identified
that the Calm and Relief Hotel can also achieve sustainability within the industry as its majority
of forces are in favour of the hotel such as the bargaining power of buyer as well as supplier are
relatively lower which secure up the adequate profit at the side of hotel. Additionally the threat
of new entrant is moderate which make it easier for the Calm and Relief Hotel to get enter into
the industry and at the same time the threat related with substitution of product is moderate.
Therefore it is possible for the Calm and Relief Hotel to achieve sustainability at marketplace if
it become able to deal with the co petition which is high in hospitality industry of Malta.
Despite of all this, by performing financial feasibility it has been identified that the Calm
and Relief Hotel is having adequate sources through which it can generate fund such as the hotel
is being launched by the four partners so the personal capital of these partners will be very much
enough to cater the fund requirement at initial stage (Xiang, Magnini and Fesenmaier, 2015).
Despite of this, the 20% of capital would also be gathered by the Calm and Relief Hotel from
bank loan. Hence it can be said that the Calm and Relief Hotel become able to gather the fund
which it require to initiate its operation that will further contribute toward smooth execution of
business operations. Therefore, it can be said that Calm and Relief Hotel has an ability to
accomplish the ambition of hotel by formulating appropriate strategy as well as business plan
that further support it in achieving the competitive edge.
22

THE BUSINESS MODEL
Business model is the process in which complete information about activities which are
conducted at organisation are communicated ad studied. There will complete and specific
information with individuals which are working in this sector, but it is important to represent
information in appropriate manner, so it is easy to get positive outcome from it (Linder and
Williander, 2017). The business model of Calm and Relief hotel includes information about
products and services to consumers because this is relevant and appropriate to understand and
determine. The model of Calm and Relief hotel indicates that detailed description of ways to
complete the tas and making actions for understanding and determining changes properly.
The core strategy
Malta is up coming tourist destination for people who work to this place for different
purpose. Hence Calm and Relief hotel is set up at place from where airport and metro station is
near by. Hence tourist who wants to gain and recognise actual taste of Malta can arrive here. The
main benefit of Calm and Relief hotel so that it opens 24 hours, so if people wants to hang out at
night or any other energy meeting can reach this place. There are many benefits which will get
from here such as for the purpose of meeting there is peace and calm environment. This makes
ease in getting complete and specific information about understanding changes. Wit
determination of change in taste of consumers, chef can alter the dish. So they can get
customised dish as well (Massa, Tucci and Afuah, 2017). There is small conference room as
well, where consumers can conduct meeting because there is proper arrangements such as mike,
proper sitting arrangements, etc. There are some discounts and offers for tourists who come in
group and if tour operator or tour guide take tourists at Calm and Relief hotel, then they also get
commission over the sales of Calm and Relief hotel.
Business canvas model
This is model which is used by individual for determining and understanding changes
properly. It is important and significant for managers of new organisation to determine which
factors are affecting business in positive and negative manner. There will change in business
activities also, so it is important and specific to determine who will assist in getting growth and
activities which has to be considered.
23

Key Partners
 Consumer
s
 4
Managers
 Workers
 Tour
operators
Key Activities
 Marketing
 Selection
of
employees
 Evaluation
of
feedback
 Innovation
in dishes
Value
Propositions
 Affordabl
e prices
 Small
conferenc
e room.
 24*7
accessibili
ty
Customer
Relationship
 Customer
feedback
form
 Use of
social
media
 Commissi
on to
travel
operators
and agents
Customer
Segments
 Corporate
people of
local
surroundin
gs
 Tourists
Key Sources
 Financial
Resource
 Employee
s
 Technical
resource
Channels
 Physical
outlet
Cost Structure
 Fixed
 Variables
Revenue Streams
 Income from dinning facility
 Revenue from conference hall
facility.
24

Key Partners- There are some individuals who are working for organisation to assist in
making growth and provides proper assistance to deal with it. There is change in business
activities as well, so it is important and relevant to maintain good relations with them. There will
use of complete and appropriate sources of information with which there will no negative impact
on growth of Calm and Relief hotel. For successfully running of operations at Calm and Relief
hotel, there is requirement of partnership of workers, managers, tour operators and consumers.
With active role of managers or partners who are setting business activities properly
because they are the owners and activities will be performed as per their requirement. Workers
are also important because they have complete and specific information about consumer demand
and ways to fulfil it (Foss and Saebi, 2017). There are seven workers they have their roles and
responsibilities as per their skills, hence it is easy for them to conduct activities, hence growth
prospects for this association will be more and appropriate.
Key Activities- There are some activities which are important for individual to be
conducted. It is important and relevant for partners to conduct because this makes smooth launch
of new business Calm and Relief hotel. Some activities which has to be performed by managers
are as under-
 There is requirement of innovative marketing activities with which individuals are able to
attract new consumers. It is important to change marketing activities as per targeted
consumers because this is the way through which individuals can attract new consumers.
There is requirement of proper selection and recruiter strategies.
 With understanding and evaluating changes which are taking place in external market,
skills and competencies of workers must also be analysed and afterwards, they must be
selected.
 There must be complete and specific information about demand of consumers, hence it is
important for managers of Calm and Relief hotel to evaluate and determine what changes
are required by consumers and frame strategies to deal with it. This assist in improving
organisational performance and making long term relations with consumers (Evans and
et. al., 2017).
 These days, there is requirement of innovation in products and services, so it is important
and relevant for people to understand and manage activities properly. With change in
25

taste of consumers, there must be innovation in dishes, hence there must be proper
planning associated with it.
Value Propositions- There are some services which are not provided by others and
competitors. This is the reason due to which consumers prefers to avail services from them. at
Calm and Relief hotel, there are some factors which is relevant and specific for individuals to be
understandable.
 At Calm and Relief hotel, there is 24*7 accessibility, so it will not be easy for people to
understand and determine changes properly. There is requirement of shape to corporate
people for meeting, then they can avail services from here.
 At Calm and Relief hotel the most crucial benefit to consumers are that products and
services are available at affordable prices (Clauss, 2017). It is essential for people to
determine and evaluate changes, then it is specific for people to invest money here.
 In comparison to other small hotels, there is no availability of conference hall, people can
only dine and hang out with dear ones. But in this organisation, there is availability of
conference hall as well, so it is easy for consumers to avail it.
Customer Relationship- In Malta, there are many organisations which are operating as
hotels and providing better services. Hence in this case, it is not possible for mangers to
understand and evaluate demand of consumers and their views about organisation. This is the
way through which positive and strong relations can be maintained with consumers.
 Managers of Calm and Relief hotel use social media platform to interact and collect
information from consumers. There are comments and like at social media platform, so it
is easy for managers to brand image in the mind of consumers.
 There is use of feedback form which are filled by consumers. With the help of these
form, there are possibilities of maintaining relations with consumers. It is important and
specific for consumers to determine positive outcome or not.
 In order to improve sales, there must be some contracts and bond with travellers and
contractors, hence this is also an platform through which managers of Calm and Relief
hotel will get to know about mindset of consumers and bale to maintain long term
relations with consumers.
Key sources
26

In every form of an organisation, proper allocation of resources is regarded as the
essential element as it enable them to obtain profit maximisation in an effective and efficient
manner without any hindrances. Hence, in regard of Calm and Relief Hotel the industry where it
operates its business function is highly competitive and challenging for which it requires to
identify appropriate key sources which enable them to achieve its pre desired objective in a
stipulated time limit. However, in order to survive in a competitive style, Calm and Relief Hotel
has been determined basic three sources i.e. financial, technical, employees.
 In perceptive of acquiring employees for Calm and Relief Hotel, its managers take an
initiative to analyse the market situation and based on that selects the set the criteria for
inviting candidates for company's vacant positions. Hence, they mainly prefer personnel
whose educational background is from hotel management and also skilled in latest
technologies, able to take best decision about dynamic business environment, acquire
enough knowledge of marketplace competition (Clauss, 2017). For attaining the same,
Calm and Relief make use of traditional and modern recruitment procedure i.e.
advertisement in newspaper, magazines, participate in job fare, publish in social media
platforms, campus recruitment. With the help of such initiation, it assist Calm and Relief
Hotel to obtain highly skilled and talented workforce who are able to provide novel ideas
or suggestions to company in terms of gaining competitive advantage in an innovative
style within prescribed time duration.
 Moreover, in relation of financial sources, they borrow funds from commercial bank,
capital markets so that they can meet out its internal and external requirements as well as
can place impressive style of furniture, facilities or services in an effective mode. Due to
which, Calm and Relief Hotel will be able to capture the attention of tourists and business
class managers towards the brand that benefits firm by enlarging its market share or size
in an improved way.
 Furthermore, Calm and Relief Hotel adopt all latest or advanced technologies which help
them to acquire cost effective, less energy, less time consuming during delivering the
product or services to targeted customers in an amended way.
Channels
For reaching wider number of population in a smooth manner, there is a need of adopting
suitable distribution channel. However, in context of Cam and Relief Hotel, they take an
27

initiative to acquiring physical store as a channel for offering its product and services to end
users in a better mode. As per the industry analysis, the physical store is considered as one of the
traditional channel in which customer receive their service by direct interaction with producer.
However, Calm and Relief Hotel physical outlet are room service, coffee shop, multi cuisine
restaurant. Some of the elements which Calm and Relief Hotel consider while producing its
service to customer are as follows:
 Calm and Hotel provide proper training to its manpower so that they can empower to
render best service to arrive tourist and managers in an improved manner (Massa, Tucci
and Afuah, 2017). Moreover, each personnel will be properly informed about hotel
facilities that help them to treat its customer effectively and also can obtain increased
level of satisfaction without nay obstacles.
Cost Structure
Under this criteria, Calm and Relief Hotel maintain its cost structure in fixed and variable
cost type. In regard of fixed cost, it is related to those cost which remain unchanged regardless of
amount of output an organisation produces. Some of then example are amortization, insurance,
rent, salaries, property taxes, utilities, interest expenses. ON the other hand, variable cost are
those which keeps on changes with each production volume. Some of the elements that covers in
variables cost structure is direct materials ( raw materials), commissions, production supplies.
Revenue Stream
In this perceptive, Calm and Relief Hotel mainly targets tourist and managers as it is
situated near to corporate area. However, Calm and Relief Hotel main revenue generation source
will be from dinning facility because Malta is a location which contains impressive and
attractive tourist destination as well as its climate that attracts the attention of tourists across the
globe towards Malta and it benefit Calm and Relief Hotel to explore its overall profit margin
ration within prescribed time frame in an improved manner (Linder and Williander, 2017).
Moreover, another revenue stream is conference hall because Calm and Relief Hotel is
established at the centre of Malta and also it is near to corporate area. Due to which, it capture
the attention of business class managers towards hotel as well as it is accessible to all modes of
transportation that provide high level of satisfaction and comfortable to targeted audience in an
efficient manner.
28

29

BUSINESS PLAN FOR A NEW HOTEL IN MALTA
Executive Summary
This current project is wholly based on a business plan of Calm and Relief Hotel which
will be establishing in the most attractive tourist spot and corporate area Sliema, Malta. Hence,
this existing report comprises various strategies which will be implied for the implementation of
project, different sources of fund and several ways to execute and manage the plan in an
efficacious mode.
Geographical market location and customer acceptance
The location which has been identified for Calm and Relief Hotel is Sliema which is one
of the most visited destination for tourist and foreigners across the globe that render enormous
opportunity for Calm and Relief Hotel to explore its proficiency ratio in an improved way.
However, as per the research conducted regarding the area, it has been identified that this
particular market provide huge growth platform for organisation and also due to adoption of
some unique features as well as effective business concept enable Calm and Relief Hotel to
enhance its overall productivity ratio in an prompt manner (McKenzie and Sansone, 2019).
Along with this, the another feature about this location is that it has low level of competition
among hotel in terms of cuisine dish which motive Calm and Relief Hotel to reach its desired
sales target in a stipulated time limit without any obstacles.
Business potential
According to industry evaluation, it has been signified that the market demand in this
context is relatively high because of the application of some unique features in dishes and food.
On the other hand, as per geographical research it has been stated that there is an intense level of
market opportunities for Calm and Relief Hotel because its is near to corporate area and also
access to all mode of transportation that create more convenient for customer to travel and spend
their valuable time in Calm and Relief Hotel. Furthermore, the core purpose of organisation is to
offer product and services by maintaining best quality in producing different food items.
Strategies for competitive advantage
In the geographical boundary of Malta, there is an intense level of competition among
restaurants in aspect of placing the brand in a competent position. However, Calm and Relief
30

Hotel make an effort to determine the market analysis and come up with various basic factors
that lead them to obtain competitive edge. Some of the factors are discussed below:
 Offering core cuisine dishes i.e. China, Italy, Mexico.
 Ambiance of hotel is wholly based on Malta culture.
 Combination of local food taste with cuisine in order to provide unique and delicious
taste for food.
 Facility of online service and table reservation.
 Implied affordable price for each food items.
 Hiring skilled and experienced chefs from across the globe and also from local region
of Malta (Boone and et. al., 2019) .
The Team
For maintaining better coordination and collaboration among manpower, Calm and Relief
Hotel form a group of talented team which is discussed below:
 Around 8 chefs from Malta who have a experience of 2-3 years.
 Appoint 3 individual as a branch manager having a experience of 4-5 years in hospitality
or hotel industry.
Legal structure
The legal structure which Calm and Relief Hotel follows is private limited company with
a involvement of two shareholders who are authorised to acquire 20% of company's profit share.
Partners
Calm and Relief Hotel runs under the governance of four friends who are assigned in
various responsibilities on the basis of their skills and capability.
Business Plan for Calm and Relief Hotel
Business plan is refer as an organised and detailed document consist of vision, mission,
objective and market strategy for accomplishing the pre desired goal in prescribed time frame.
The core benefit which an organisation obtain with the application of business plan is that it
provide proper guidance, direction in terms of recruiting, controlling financing, operating
operational activity with an aim of exploring productivity ratio.
Hence, the business plan of Calm and Relief Hotel is supported on innovative and
creative concept as it is established with a theme of sustaining Malta culture and also operating
31

function as a multi cuisine hotel. Additionally, its another contribution to attain sustainable
growth they produce a unique taste in its cuisine dish with a mixture of local food flavours.
Moreover, establishment also take an initiative in hiring skilled and efficient manpower across
the globe as well as from Malta which enable organisation to improve its competitive edge in an
amended manner.
Additionally, hotel has been selected its location in Sliema which is near to corporate
area and also to tourist destination that empower Calm and Relief Hotel to increase its customer
base and also can enhance the market share in an impressive style among rivalry in an impressive
style (Brinckmann and et. al., 2019).
1. The industry, company & products
The region of Malta is recognised as a smallest country which is surrounded by sea and
the foremost attractive spot for tourist is its natural beauty and climate. Furthermore, due to such
strength of Malta, it motive local population to set up their business in the field of tourism as it
aid them to earn maximum level of profit. However, it can be states that Malta is being able to
develop a hub for new business or entrepreneurs because it provide various growth opportunity
in tourist sector. Hence, apart from all other sector, restaurant and hotel division is one of the
booming unit within Malta region. Due to this, it generate high level of competition and
opposition among firms in aspect of enriching profit margin ratio because majority of young
chefs are desired to set up their business unit with a view of performing their talent and earn
maximum level profit margin by maintaining high quality of food, developing attractive
atmosphere and so on. Additionally, it has also been evaluated that majority of the restaurants are
awarded for offering their services in a good quality but the idea of theme based cuisine service
assist Calm and Relief Hotel to acquire positive response and acceptance from targeted audience
in a better way.
2. The Market
From the past few years, Malta is able to attract several young chefs and individual to set
up their business in the region as it is one of the most attractive tourist destination that empower
personnel to grab the opportunity in order to earn profit maximisation (Henderson, Goldring and
Simeon-Dubach, 2019). In context of Calm and Relief Hotel, it has been prefer to introduce its
brand in Sliema location. Some of the unique feature about Sliema is described below:
32

Sliema: It is viewed as a coastal town which is situated on the north-east of Malta and
also recognised as a most modern and built up areas of Malta in terms of tourist preference to
stay. Along with this, it is the place where most of the hotels, bars, rental apartments, shops,
clubs are situated that attract travellers attention to satisfy their requirements in an improved
way. Additionally, Sliema is also access to all modes of transportation and also near to
internation airports and bus station. Moreover, it is near to corporate area where business
managers and directors visit to arrange some sort of official meetings and seminars or
conference. Due to these features, it can be claim that it is an impressive or attractive growth
opportunity for Calm and Relief Hotel in order to gain competitive advantage and also to
improve brand reputation in an improved mode (Biech, 2019).
3. Marketing approach
For surviving within industry for longer time period, an organisation must have an
effective marketing strategy that lead them to reach wider range of population and also can
improve brand image among competitors in an impressive style. Hence, some of the marketing
approach which Calm and Relief Hotel can imply within its business function are as follows:
Online marketing: In the present era of marketplace, online or digital marketing is
familiarised in majority of the organisation as it help them to achieve its target audience in an
effective manner and also enable them to deliver the service within a shot time duration.
Henceforth, Calm and Relief Hotel take an initiative to make use of internet marketing, SEO,
social media platforms, YouTube, creation of official websites, development of apps (Grit,
2019). Due to such contribution, establishment can explore its market division also can obtain
competitive edge in an amended manner without any obstacles. Moreover, it also enable hotel to
capture the attention of local people as well as population form different part of the world
towards the brand in an effective way.
Discount or additional benefits: Under this approach, Calm and Relief Hotel implies
several discounts and benefits over its product and services on special occasions or festivals.
Additionally, they also make an attempt to provide discount coupons for loyal customer as they
can utilise it for their nest visit to company. Furthermore, establishment also come up with a deal
with local tourist guide and tour planner which empower them to capture the attention of
travellers or tourists towards the business premises in an better way (Saura, Palos-Sanchez and
Grilo, 2019).
33

Potential risk for the Calm and Relief Hotel
The idea of setting up a hotel by creating an ambience of heritage of Malta is a new
concept for the market and this feature of hotel will support in getting the attention of people
toward entering into the restaurant. This is so because the hotel is approaching tourist also along
with local people of Malta that mainly visit the country in order to experience their culture or
heritage which get easily available to them. These all brings several growth and development
opportunity for the hotel (McKenzie and Sansone, 2019). But despite of all this there are certain
potential risk that may also get faced by the Calm and Relief Hotel that have a direct influence
over the operations as well as performance of the hotel. These potential risk are mentioned
below:
Fund raising issue:- The major risk that may be face by the Calm and Relief Hotel
within Malta is related with fund raising as its is one of the smallest and tourism attraction
country where majority of people are working toward setting up their small business to earn fund
from tourism practices. Hence, the economic condition of people are very much limited which in
turn also restrict the amount of fund to be raised. Therefore, it can create issues related with fund
raising in order to fulfil the fund requirement related with the establishment of business, raw
material arrangement and transportation cost.
Solution:- The risk is relatively higher but in order to overcome this issue of fund raising
the Calm and Relief Hotel must try to perform non-expensive activities for reducing the
financial risk. Additionally, it can also keep some pat of fund reserve as a back up option so that
financial need can be fulfilled.
Increasing competition:- Malta is one of the most attractive place as it is surrounded by
the sea and consist of range of attractive place which make it best place for tourism practices. As
a result of which majority of Maltese started getting involve within starting up their business to
cater the accommodation related need of tourist by opening their restaurant or hotels. This in turn
has created the tough competition within Malta hospitality industry. Hence the risk of
competition in front of Calm and Relief Hotel is relatively higher that can affect the
performance as well as functioning of restaurant within the country.
Solution:- In order to reduce the risk that get arises from the market competition, the
Calm and Relief Hotel must try to focus toward keeping the local customer satisfied so that
word-of-mouth publicity can be generated which act as a referrals for larger number of people to
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visit in hotel. This will further support the Calm and Relief Hotel in approaching the tourists
from the suggestions of local customers.
Substitution of business:- Another major risk that can be faced by the Calm and Relief
Hotel within the competitive market is that the business plan of the hotel may be copied by some
another player that are present within marketplace (Boone and et. al., 2019). This is consider to
be the major risk for Calm and Relief Hotel because after getting larger number of options in
market the brand switching may become much common among the customers.
Solution:- For overcoming the risk related with substitute the Calm and Relief Hotel
must put emphases toward frequently innovating its services within the specific duration of time
period. This will further help in developing a base of loyal customers toward the services offered
by hotel which further support in making them capable of dealing with the competition and
support in achieving the competitive edge.
Critical success factor
For achieving success at marketplace, Calm and Relief Hotel must focuses toward
determining the factors that support the hotel in achieving competitive edge at marketplace.
These factors will further support the restaurant in accomplishing it goals and objectives in
effective manner that further contribute toward achieving sustainability at marketplace.
Following are some success factor of Calm and Relief Hotel,
Heritage ambience:- One of the most attractive success factor for the Calm and Relief
hotel is its interior or the ambience which is designed as per the cultural heritage of Malta where
the customers can experience the culture of country. For this the walls and furniture is being
designed as per the heritage of Malta that will act as a part of attraction for the hotel which
further support in brining larger number of customers to the premises.
Location near airport and metro station:- The another major factor that will act as a
point of attraction for the tourist as well as local people of Malta is the location over which the
hotel will get established. This is so because the after travelling a long journey people prefers to
have a nearer place where they can relax. So the Calm and Relief hotel will provide similar
environment as its name suggest that will further act as a point of attraction for the tourist as they
easily get a hotel to satay without roaming around place to another for availing accommodation
related services.
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Office meeting facilities:- The Calm and Relief hotel is also offering the facility for the
formal meetings such as small conference room with proper lighting and sound facilities so that
each member within meeting be able to listen and present his views. Despite of this additional
benefits are also their such as Free Wi-Fi, Air cooling, Coffee and Tea facilities, calm
environment etc. These all provide a perfect place to held a meeting.
Visibility of plan
This section will present the strategies as well as techniques that can be implemented by
the Calm and Relief hotel that help in achieving the objective of business plan. The good visible
plan support a restaurant would be able to get the biggest proportion toward success. Following
are the key visible point of Calm and Relief restaurant:
Create a advance plan:- At the initial stage the owners of Calm and Relief hotel are
required to develop a plan which represent goals and objectives of the restaurant that further
detailed about the shareholders, employees, investors, customer segmentation etc. Under this the
goals remains to position itself and remove the competition from market y targeting its services
to tourist as well as formal clients at affordable price.
Create a descriptive plan to present the work to be performed:- This will include an
information regarding set of task that staff members has to perform for achieving desired
objective (Brinckmann and et. al., 2019). It further includes description regarding the number of
suppliers from which the inventory will be gathered for providing high quality services to
customers so that they can get convert into regular visitors.
Adopt clear strategies for business success:- This section will present information
regarding set of tactics that would be used to achieve sustainability within industry. The top
management of Calm and Relief hotel will make use of social media platform to perform its
promotional activities that help in attracting larger number of customer at relatively lower price.
Additionally it will also offer some discount coupons to customer that help in getting an instant
off at their services.
Enlist business partners:- The Calm and Relief hotel will be set up by four friends who
invest their money and perform business operations jointly that help them in dealing with all the
ups and downs of business. These partners will have 25% share within the business.
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Visibility of Budget and investment
Budget within a plan is consider to be most essential part as without this it become very
difficult to manage the fund effectively along with smooth execution of business operations. The
budget section is already presented within business model section where it is decided that start
up capital would be around £180K, £40K in research & development and £32K would be needed
in order to take licence from the legal authority for setting up business in Malta.
FINANCIAL FORECASTED
It is also an essential component for new business development as it help them to
ascertain the overall budget and expenditure so that they can easily manage the financial aspect
in an amended manner. However, the below shown table highlights the capital amount which is
require for Calm and Relief Hotel to establish its business venture within Malta region.
ONE TIME START UP EXPENSES AMOUNT
One Time Set-Up Costs:
Rent Deposit 1600
Furniture & Fixtures 3500
Equipment 3750
Build-out/ Renovations 3200
Decorating, Painting and Remodelling 1200
Installation of Fixtures & Equipment 900
Starting Inventory 1750
Deposits with Public Utilities 1150
Legal and Other Professional Fees 750
License and Permits 550
Advertising and Promotion 390
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Consulting 410
Software 350
Cash 2600
Total One Time Start-Up Costs: 22100
Monthly Expenses:
Bank Charges 125
Debt Service (Principal & Interest) 1900
Insurance 1300
Membership & Dues 1100
Maintenance & Repairs 950
Marketing & Promotion: Advertising 850
Marketing & Promotion: Other 650
Miscellaneous 320
Payroll: Wages (Owner/ Manager) 2800
Payroll: Wages (Employees) 2900
Payroll Tax 1300
Professional Fees: Accounting 1500
Professional Fees: Legal 1700
Professional Fees: Other 840
Rent 3500
Subscriptions 980
Supplies: Office 1100
Supplies: Operating 1210
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Telephone 1100
Utilities 150
Total Monthly Expenses: 26275
TOTAL START-UP FUNDS REQUIRED: 48375
39

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