Business Plan Report 2022

0Running Head: Business Plan
Business Plan
Name of the Student
Name of the University
Author’s note

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Table of Contents
Executive Summary...................................................................................................................2
Introduction................................................................................................................................3
Discussion..................................................................................................................................3
Description of the venture..........................................................................................................3
Key skills of the management....................................................................................................4
Legal Structure of the Venture...................................................................................................4
Strategic Approach of the venture..............................................................................................5
Brief Marketing strategy............................................................................................................5
Competitor analysis....................................................................................................................6
Financial Analysis......................................................................................................................7
Key risks and challenges..........................................................................................................10
Conclusion................................................................................................................................10
Bibliography.............................................................................................................................12
Appendix..................................................................................................................................14

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Executive Summary
The report revolves around the construction of a business plan that would be applicable for
one of the new ventures of the hotel industry of Australia. The organisation chosen for this
report is Four Points by Sheraton. The different aspects and segments of the business plan are
highlighted in the report. The business plan starts with a brief overview of the organisation
and the key features of the management of the organisation. This includes a brief strategic
approach of the organisation. Further the plan talks about the different marketing strategies of
the organisation stressing upon its targeted audience. Next the plan moves on to providing a
brief competitor analysis emphasising on the key competitors and a financial highlight.
Finally, the plan elaborates the key risks and challenges that are faced by the venture in the
course of its operations.

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Introduction
The primary objective of the report is to construct an appropriate business plan
regarding one of the eminent entrepreneurial venture of Australia. The venture chosen for this
purpose is Four Points by Sheraton which is mainly engaged into providing excellent hotel
services throughout Australia. A brief overview of the organisation is provided touching its
historical background. The strategies and the styles of the organisational structure followed
by the management of the organisation are pointed out and noted down suitably. In the
further sections, the marketing strategy followed by the organisation is highlighted where the
targeted audience is briefly explained. The communicating link of the organisation with its
target audience is also detected. The report further analyses the competitors of the venture
and sets out a comparative study between them. The positioning of the venture in the market
with respect to its competitors is also stated and explained. The next part provides an
overview regarding the financial segment of the company (Fraj, Matute and Melero. 2015).
The return on investment for the investors of the company is stated along with the process of
funding applied by the company. This is followed by the different risks and challenges which
are faced by the company in the course of its operations.
Discussion
Description of the venture
The company that has been chosen for this report is Four Points by Sheraton. The
company is primarily into providing hotel services to the business travellers and other small
conventions. The ultimate owner of the organisation is a subsidiary of Marriott International
Hotel, named as Starwood Hotels and Resorts. The organisation operates a large number of
hotels which are present in continents like Africa, Australia, North America, Middle East,
Pacific Region, and South America.

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The company has been planning to open up a new venture that would be operated under the
name of the parent company. The company has decided to use this strategy for the purpose of
increasing its revenue figure and also for expanding its business. The new venture would be a
restaurant that would be located near Four Points hotel. The company is planning to open a
small-sized restaurant which will help it to achieve sizable profits (Four Points.com 2019).
The objective and goal of the venture will be to cater excellent services to guests who
are intimately attached with food and prefers to spend quality time at restaurants. The goals
should be set according to the demands of the customers and also to reach the desirable sales
figure at the end of the financial year. The company has also planned to offer a diverse range
of menu to the customers to increase their satisfaction and automatically the brand would be
created (Gannon, Roper and Doherty. 2015).
Key skills of the management
The management of the proposed venture of Four points is supposed to have multiple
skills that would aid towards the growth and development of the business (Jones, Hillier and
Comfort. 2014). Some of the important skills as decided by the company can be excellent
skills for providing better customer services, flexibility within the management of the new
venture for coping up adverse situations, communication skills and collaborative skills with
leadership capabilities (Vogel. 2014).
Legal Structure of the Venture
Organisation structure mostly refers to the legal structure of the venture which
describes the legal formation of the business of the venture. The structure represents the
relationship of the owners of the business with the outside environment (Chen. 2014). There
is interference of court and all other levels of government formulating the legal structure of a
company.

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In this context, the different legal aspects considered by Four Points while opening up the
new venture can be stated below.
1) Debts or damages incurred by the business
2) Limited partnership
3) Control of the general partner of the business
4) The hotelkeeper and the contract law
5) The relationship between the restaurant and its customers or guests.
Strategic Approach of the venture
The most important strategic retreat that has been formulated by the venture is select
the right team for the formation of staff personnel and have a beneficial game plan. The
definition of strategy as given by the organisation is to define the initiative, priorities and the
other action plans of the organisation. The company has decided to carry out this strategic
approach through two ways. One of the objectives is to accelerate and strengthen the
performance of the teams of the company. This is done for the purpose of aligning the
objectives with the performance. This would also drive a culture of enhanced work
performance within the company (Carr, Drennan and Andrews. 2016). Usage of different
strategic dialogue processes for high engagements is also another strategic approach
implemented by the company. This is done through many other methodological tools such as
strength based personal assessments of the employees, formulating a shared vision amongst
the members and delivering best quality and service to the customers.
Brief Marketing strategy
Some of the important marketing strategies can be successfully planned by the venture can be
listed below.
1) Setting up of loyalty programs through partnerships with different food apps.

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2) Monitoring the presence of the venture among the people through social media.
3) Offering great coupons and discounts to attract customers
4) Advertisements through social websites
The most important customers for the restaurant would be food-lovers (Lee, Hallak and
Sardeshmukh. 2016). However, the venture can start up by targeting an audience who lives in
the nearby areas of the restaurant outlet. One of the important communication channels used
by the company for connecting with its target audience is the media channel where all the
whereabouts of the company would be promoted through the media. In this way the
customers of the same area would get to know about the existing services of the company
(Belleflamme et al. 2018). This change would also be effective for the purpose of reaching
the goal of the organisation and would lead to the enhancement of the brand image of the
organisation.
Competitor analysis
In the starting up of the new venture, it is likely to face many competitors. Some of
the eminent competitors that are persistent in the hospitality industry of Australia can be
stated as follows.
1) Chefin
2) Silicon Valley Chicken
3) Deliveroo
4) Nofo
There could be many strategies that would help the management of the new venture to gain
competitive advantage in the market. Some of these factors could be stated as follows.
1) The company has decided to find an area where there would be few competitors
serving food to the customers.

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2) Accessibility to a highly visible location where there is conspicuous presence of
customer base.
3) Analysing the local competitors of the chosen location.
4) Identification and strengthening of the strengths and detecting the weaknesses of the
organisation.
5) Offering lower prices to the customers and providing attractive discounts and offers to
the customers.
Financial Analysis
The managers have decided to propose a projected financial picture of the company through
its financial statements.
The projected profit and loss statement denotes a profit figure for the business in the
subsequent years.

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The projected annual cash flow of the company shows a positive cash balance at the end of
reporting period.

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Return on Investment
Return on investment is 0.674.
Though the total asset figure shows higher amount as compared to the total liabilities, still the
current assets are more than the current liabilities. This shows that the company would have
the capability to meet up its short-term debt and it will also have enough liquid cash for its
daily operations (Korteweg and Nagel. 2016).
From this analysis it is evident that the venture has a bright future and will be able to recover
from its investments in the long run. Even the venture capitalists would be profitable through
their investments in the new start-up venture of restaurant.

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All the ventures need a start-up capital for the purpose of funding their business. The
type of funding that is given to the businesses completely depends upon the nature as well as
the type of the business (Stylos and Vassiliadis. 2015). There are many sources of funding
which are available for the ventures, mainly belonging to the hotel industry. Some of these
funding sources can be listed below.
1) First option of funding can be through bootstrapping or self-funding. Through this
method the investors fund their own businesses. This is very advantageous
because the self-funding option keeps the investors motivated towards the work of
their businesses.
2) Another option can be through the crowd-funding process. In this process
generally the entrepreneur puts up a detailed plan of his business in the platform.
From this platform, anyone can contribute money for the purpose of financially
helping the business.
3) Angel investment can be another option of funding the new businesses. The angel
investors are the individuals who have surplus cash within themselves and they
take the initiative to share a part of their money to the new businesses at their own
will.
The financial information of the company is disseminated through the different
financial statements. These statements include the cash flow statements, balance sheet and
other relevant statements of the company (Hon and Lui. 2016). All the important financial
figures are mentioned such that the users or the customers are aware of the financial
condition of the company.

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Key risks and challenges
There could be many risks and challenges faced by the venture for entering into the
market of its new business. The owners of the organisation are new to the business of
restaurants. Even the investors are not fully involved in the daily operations of the business.
As a result, there were few challenges and threats to the business. The business growth can be
slower than the expectations of the owners. The attrition rate of the employees can increase
over the years (Köseoglu, Ross and Okumus. 2016). The threats of new entrants to the
market, as suggested by Porter, can be one of the big challenges.
In situations when there has been a boom in the business of all the restaurants, it
might be difficult for the organisation to cope up with the demands of the customers. Other
pressures came from the high rising demand of the suppliers and increase in the cost of the
operations of the company. Further there has been risks from the competitors and at every
point of time the company has to struggle to bring about innovation in its services.
Other risks and challenges which are likely to influence the organisation can be
failure of the entire projections. This happens when the organisation fails to continue with its
operations due to uncertain factors and is automatically turned into a loss (Zervas, Proserpio
and Byers. 2017). Food safety is another factor where the venture is constantly under pressure
to maintain the hygiene and quality of the food that is served to the customers. Injuries and
liabilities can be another challenge. Other risks could be bad reputation and storage of food.

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Conclusion
From the above report it can be highlighted that the business plan regarding the
starting up of a restaurant by Four Points company of Sheraton can be successful in the long
run. It would significantly be able to attract new venture capitalists for funding in its
business. Despite of the risks and challenges, the different elements such as financial
statements, strategic approaches, skills and techniques, may prove to be beneficial and useful
for the company in the long run. This would automatically foster growth and development of
the new venture.

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Bibliography
Belleflamme, P., Lambert, T. and Schwienbacher, A., 2014. Crowdfunding: Tapping the right
crowd. Journal of business venturing, 29(5), pp.585-609.
Carr, A., Drennan, J. and Andrews, L., 2016. Measuring customer equity and managing the
customer asset: an explanatory study in the Australian hotels. Journal of Marketing
Management, 32(17-18), pp.1670-1700.
Chen, K.Y., 2014. Improving importance-performance analysis: The role of the zone of
tolerance and competitor performance. The case of Taiwan's hot spring hotels. Tourism
Management, 40, pp.260-272.
Four Points.com 2019. Business & Leisure Travel Hotels | Four Points by Sheraton. online
Available at: four-points.marriott.com/ Accessed 26 Sep. 2019.
Fraj, E., Matute, J. and Melero, I., 2015. Environmental strategies and organizational
competitiveness in the hotel industry: The role of learning and innovation as determinants of
environmental success. Tourism Management, 46, pp.30-42.
Gannon, J.M., Roper, A. and Doherty, L., 2015. Strategic human resource management:
Insights from the international hotel industry. International Journal of Hospitality
Management, 47, pp.65-75.
Hon, A.H. and Lui, S.S., 2016. Employee creativity and innovation in organizations: Review,
integration, and future directions for hospitality research. International Journal of
Contemporary Hospitality Management, 28(5), pp.862-885.
Jones, P., Hillier, D. and Comfort, D., 2014. Sustainability in the global hotel
industry. International Journal of Contemporary Hospitality Management, 26(1), pp.5-17.

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Korteweg, A. and Nagel, S., 2016. Risk‐adjusting the returns to venture capital. The Journal
of Finance, 71(3), pp.1437-1470.
Köseoglu, M.A., Ross, G. and Okumus, F., 2016. Competitive intelligence practices in
hotels. International Journal of Hospitality Management, 53, pp.161-172.
Lee, C., Hallak, R. and Sardeshmukh, S.R., 2016. Drivers of success in independent
restaurants: A study of the Australian restaurant sector. Journal of Hospitality and Tourism
Management, 29, pp.99-111.
Oyner, O. and Korelina, A., 2016. The influence of customer engagement in value co-
creation on customer satisfaction: Searching for new forms of co-creation in the Russian
hotel industry. Worldwide Hospitality and Tourism Themes, 8(3), pp.327-345.
Stylos, N. and Vassiliadis, C., 2015. Differences in sustainable management between four-
and five-star hotels regarding the perceptions of three-pillar sustainability. Journal of
Hospitality Marketing & Management, 24(8), pp.791-825.
Vogel, H.L., 2014. Entertainment industry economics: A guide for financial analysis.
Cambridge University Press.
Zervas, G., Proserpio, D. and Byers, J.W., 2017. The rise of the sharing economy: Estimating
the impact of Airbnb on the hotel industry. Journal of marketing research, 54(5), pp.687-705.

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Appendix
Porter’s five forces model and Competitor description of the Venture