Business Plan for Paradise on the Beach Resort

This report provides a detailed business plan for Paradise on the Beach resort, including market analysis, marketing strategies, operations plan, and financial requirements.

Business Plan

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
The Business Detail.....................................................................................................................3
Macro- Environmental Overview...............................................................................................3
Market & Industry Analysis........................................................................................................4
Competitor Analysis....................................................................................................................5
Marketing & Pricing Strategies...................................................................................................5
Operations Plan...........................................................................................................................6
SWOT Analysis..........................................................................................................................6
Financial Requirements...............................................................................................................7
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
A business plan is a document which contains all details of a business in descriptive
form. It defines the main idea on which a business plans to run. It specifies the way in which a
business is to reach the goal starting from marketing, planning financial and operational
strategies. It is considered very important document to attract the investors and also to keep track
record of the planning (Almeida, 2019). Once the basic goals of a business are achieved, a new
business plan is made by the business managers with new goals.
This report is based on the 'Paradise on the Beach' resort which is going to start soon in
Essex at Mersea Island. It also contains PESTLE analysis, PORTER'S 5 force analysis, SWOT
analysis, marketing, pricing and operations analysis and the financial requirements of the resort.
TASK
The Business Detail
'PARADISE ON THE BEACH' is a new Resort which soon is opening near London at
Mersea Island, Essex (UK). In whole of the world, Europe is the most visited country by the
tourist. There are many places in Europe which are worth going and exploring. Our resort is 2
hours away from London which will give our customers good connectivity from there. Paradise
on the Beach offers carefree luxury in the midst of nature. It features 25 luxury villas to relax the
mind and soul and have peaceful stay. There are different kinds of cuisines served from around
the world to savour the taste. Variety for drinks and desserts from around the world will be
served keeping in mind the preferences of all. There will be an entertainment section which
would include karaoke, live music or band, dancing, etc. It will also have a barbecue and open
bar next to the entertainment section on the beach.
Macro- Environmental Overview
Paradise on the Beach is a new resort in UK which is going to provide wide range of
services and products to its customers. In order to serve its customers better it is important to
conduct pestle test for analysing the impact of micro environmental factors on the business.
PESTLE analysis for the resort:
 Political Factors: These factors are considered by which the Government intervention is
present in the functioning of the resort business. All the guidelines given by the

government are evaluated and monitored, then accordingly the business is set up
(Anicama, 2018).
 Economic Factors: These factors will directly influence the growth of the business. It
includes economic growth, inflation rate, interest rates, etc.
 Social Factors: This factor will help the resort to target the customers by giving
different classes of people varieties in their stay. Considering the social factors we will
also be offering discounts and membership cards in which different services can be
availed.
 Technological Factors: With every new invention there is continuous change in the
market. To cope up with the new trends business should adopt all the new technologies
and should also invest in the R&D for new innovations.
 Legal Factors: These factors directly influence the growth and reputation of the
company. With the changes in the law, business should also change the guidelines and
include the laws to be implemented.
 Environmental Factors: It is very important factor which should be kept in mind to
keep the environment safe and healthy. Resort should use non- harmful materials that are
bio- degradable to maintain the balance of the nature.
Market & Industry Analysis
Porters 5 forces have a significant impact on the profitability of the business (Caeiro,
2017). This helps business to know and assess the industry and in which the business is
operating.
The Porter 5 Forces are:
 Threat of new entrants: UK being tourist attractor have lots of other resorts options for
the tourists. The Paradise on the Beach will be providing the hospitality at lower rates
than that of the existing competitors and would also be proving international cuisines and
drinks from all over the world.
 Bargaining power of suppliers: The supplier of the raw materials will not decrease the
prices as there are many competitors in the market. This will decrease the profitability of
the business. Our resort will solely focus on providing the best quality and would develop
good connections with the suppliers.

 Bargaining power of Buyers: Buyers or customers are the main factor which affect the
profitability of the business (Currivan and et. al., 2019). At out resort we will be proving
will all high quality of resources at minimum cost. We will offer discounts and offers to
our customers to make them feel more happy and delighted.
 Threat from substitute Product: there is always a threat on the business of being
substituted. So, our resort will offer wide range of products which will continuously be
changed according to the preference and needs of the customers.
 Competitive rivalry: This factor deals with the intense completion already in existence.
Our resort will focus mainly on the customer satisfaction and providing the best
hospitality they can ever expect.
Competitor Analysis
There are many other resorts at the Mersea Island who are very famous and beautifully
constructed. All the resorts focus on the needs of the customers and provide wide variety of
cuisines to make customers feel delighted. There are other resorts too who are have not yet
grabbed the attention of customers. Different resorts focus on different needs of the people and
serve accordingly.
The 'Paradise on the Beach' resort is located by the edge of the Mersea Island, Essex
(UK) which gives the customers amazing beach view from their villas and also give them easy
access to the beach. The resort provides international cuisine from all over the world. They also
have entertainment area in which customers can enjoy live music, dancing, performances,
karaoke,etc., with the variety of drinks at the bar counter, Al-carte and barbecue next to the
beach. We provide with the world class service to our customers with keeping in mind their
preferences, health and safety.
Marketing & Pricing Strategies
The Paradise on the Beach is a new resort which needs lots of marketing in order to
sustain the competition and earn profit to grow the business. Initially to attract customers,
promotion of the resort is most important. This can be done by planning a great marketing
strategy which also includes social media as one of the platform. While planning marketing
strategies, it is important to ensure that the right audience is targeted and hire people on
incentives to get people interested (Gimeno Vidal, 2018). Business will keep more budget at the

time of peak season to market more about the resort. Our resort will not only market the resort
but will market the location too as this will help to attract more customers.
The pricing strategy will totally depend on the targeted audience. We have various
classes of villas in our resort which are available at lower cost then those of our competitors
which will attract them to our resort as the the facilities are almost same. We have also
introduced activities section for everyday entertainment, karaoke. Live music, bands, etc. for our
customers which is a plus to our resort to attract customers.
Operations Plan
Customers are the main factor which should be kept in mind while making an operational
plan (KUBYSHKIN, 2017). The main aim of Paradise on the Beach is customer satisfaction and
making their stay pleasant & peaceful. Our resort gives quick services and easy access to the
areas where customers want accessibility. There are various cuisines which are all available at
one stop and customers do not have to go other than that dining area. They are also given an
option for room services in case they want to eat in their rooms. To give the feel of the beach
inside the room, we have given a beach type mini pool inside the rooms. There is also a barbecue
section next to the beach with all the entertainment section and bar counters where customers can
relax and enjoy their drinks with music. There is also a kids room where parents can leave kids
under the hotel supervision in case when they want to spend some time alone.
SWOT Analysis
It is a tool to self analyse the strength, weaknesses, opportunities and threats of the
business in the market (Ma, and Jiang, 2019). This will help the business to make strategic
planning for the growth of business.
SWOT Analysis of resort:
Strength
 The resort is in midst of the nature And
all bio- degradable materials are used at
the resort.
 Luxurious villas available at discounted
rate for the membership customers.
 Open food joint and bar next to the
Weaknesses
 It is new in the market and do not have
any previous experience or brand name
 It do not have previously owned
customer base.
 There are many competitor resorts that
provide similar facilities.

beach.
Opportunities
 To introduce more innovations to the
business.
 By generating more revenue and profit,
we will expand the resort.
 Once the resort earns profit at this
location we will develop the next
location for the resort.
Threat
 There is a big threat from already
developed resorts.
 New technologies developed by a
competitor can also be a threat in near
future.
 Local distributors can also be threat as
they may charge higher price due to the
competition in the market.
Financial Requirements
The Paradise on the Beach is a resort which offers luxurious stays to its customers and
offers international cuisine and drinks from around the world. The financial statement
requirements of the resort are as under:
Start-up cost of business- It basically is that cost which involves the initial fuel for starting up a
business and its operations (Nicoleta, 2016). In the given resort business, the starting cost is
broken up in following segments:
 Equipment’s = £ 2500.
 Furniture = £ 2000.
 Premises (will be acquired on rent) =
 Security deposit = £ 150.
 Advance rent for 1 month = £ 150.
 Estimated cost of sales = £ 15 per unit.
 Selling price per unit = £60.
 Fixed cost = £ 3000.
 Variable cost = £5 per unit.
After analysing the changes in the market trends and other factors which affect or impact
the figures of the sales of 'Paradise on the Beach' , it is concluded that the resort will generate

successfully the sales which will be equivalent to 300 units per month. On the basis of this
estimation, given under is the cost statement of the resort:
Particulars Calculation Amount
Sales £60*300 £18000
Less: variable cost £5*300 £1500
Contribution Sales-variable cost £16500
Less: fixed cost £3000
Less: estimated cost of sales £15*300 £4500
Net profit £8500
From the above table, following is profitability and break-even analysis,
Break even analysis- It is basically that volume of sales, at which the company has no profit and
no loss (Phuengpunum, Piromsopa, and Songkram, 2018). It is a neutral situation. To earn
profits, company has to surpass this point of sales. In given case, break-even point is:
Break-even point = Fixed cost/ (selling point – variable cost)
= 3000/(60-5) = 54.6 units or 55 units (approx.)
Profitability analysis= from the above calculation, it can be stated that, company is earning
profit on 245 units (300-55). Therefore, profit is earned on these units only.
Net profit margin for the company = net profit / sales*100
= (8500/18000)*100 = 47.235% approx
CONCLUSION
From this report it is concluded that, to plan any business it is very important to make self
analysis of a business. A proper business plan is made to work in the desired direction so as to
achieve the goals of the business. Business plan includes the aim and objectives of a business
and how to achieve them. It also focuses on the methods on achieving those goals. For a proper
analysis of a business it is important to do PESTLE analysis, PORTER'S 5 forces analysis and
SWOT analysis (Vian, 2018). These analysis will helps a business to plan the strategies
accordingly to achieve the business goals.

REFERENCES
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