This business plan focuses on the setting up of a hotel known as Tipton. It includes financial analysis, marketing strategies, SWOT analysis, and more.
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Running head: BUSINESS PLAN1 Business Plan
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BUSINESS PLAN2 Executive Summary The business plan is focused on the setting up of a hotel known as Tipton. The financial analysis in terms of costs and feasibilities along with the marketing strategies are outlined and presented in the plan accordingly. The analysis pertaining to SWOT (Strengths, Weaknesses, Opportunities and Threats) are also presented accordingly. The sector related to hospitality and tourism is analyzed with regard to the economic viability of Hotel Tipton as far as the future trends are concerned. The evaluation related to risks involved in the business has also been carried out.
BUSINESS PLAN3 Table of Contents Introduction................................................................................................................................3 Vision and objectives.................................................................................................................3 Analysis of the hospitality industry............................................................................................3 Future outlook........................................................................................................................3 Analysis of competitors..........................................................................................................3 Market segmentation..............................................................................................................4 SWOT Analysis.........................................................................................................................4 Strengths.................................................................................................................................4 Weaknesses............................................................................................................................4 Opportunities..........................................................................................................................4 Threats....................................................................................................................................4 Business Venture........................................................................................................................5 Products and services.............................................................................................................5 Business size..........................................................................................................................5 Background of entrepreneur...................................................................................................5 Location..................................................................................................................................5 Physical facilities and operations...............................................................................................5 Descriptions............................................................................................................................5 Costs.......................................................................................................................................5 Marketing plan...........................................................................................................................5 Target market.........................................................................................................................5 Marketing strategies...............................................................................................................6 Organization plan.......................................................................................................................6 Legal structure........................................................................................................................6 Management team..................................................................................................................6 Licensing and insurance.............................................................................................................6 Risk assessment..........................................................................................................................6 Contingency plan...................................................................................................................6 Financial analysis.......................................................................................................................7 Feasibility analysis.................................................................................................................7 Start up costs..........................................................................................................................7
BUSINESS PLAN4 Cash flow forecast..................................................................................................................7 Sources and application of funds...........................................................................................7 References..................................................................................................................................8 Appendix....................................................................................................................................9
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BUSINESS PLAN5 Introduction The main aim of the essay is to present an overview of a business plan in the sector related to hospitality. Such sector has been opted as the hospitality sector is growing and advancing in a rapid manner. The hotel which is to be set up as a part of the business plan would be developed in such a manner that it would grow in a rapid manner thereby generating huge amount of profits and revenues (Nieves & Segarra-Ciprés, 2015). The vision and goals of the hotel are to be identified at the earliest and be implemented accordingly for the purpose of capitulating upon the objectives in the desired manner and deriving the outcomes in an effective and efficient manner. The analysis of the industry is to be carried out so as to identify and determine the factors that are pertinent to the feasibility involved in the establishment of the hotel. As a result, the strengths, weaknesses, opportunities and threats would be determined accordingly in order to imply the execution of such a business plan in the desired manner. The market would also be identified accordingly with reference to the attraction and appealing of the customers. The projected trends for the future of such a business would also be taken into account. Vision and objectives The business plan of Hotel Tipton is aimed at attracting a huge number of customers thereby leading to generation of huge profits and revenues. It would also be a competitive force to reckon with in the hospitality industry of Canada. Hotel Tipton has a number of objectives in its pipeline (Leung, Bai & Stahura, 2015). The main objectives of the hotel include that in a span of five years, it would have a chain of hotels being spread across Canada thereby being a reputable brand at the international level. Analysis of the hospitality industry Future outlook In the future, it is projected that the hospitality industry would grow to a massive level as a result of the increase in travel and tourism amongst people mainly with reference to business and leisure. As a result, it is imperative that it would be economically viable for Hotel Tipton to carve a niche of itself in the hospitality sector in the near future. It would also help in the fostering of global tourism as implied by its business plan related to the expansion in the region of Canada. It is imperative that the future for Hotel Tipton looks appealing. Analysis of competitors The main competitors of Hotel Tipton would include Sandman Hotel, Delta Hotels by Marriott, Fairmont Palliser and Westin. These would be highly competitive for the establishment and growth of Hotel Tipton (Molina-Azorín, Tarí, Pereira-Moliner, Lopez- Gamero, & Pertusa-Ortega, 2015). As a result, investment must be done in a meticulous manner with regard to the providing of the required facilities for the attraction of customers. It would help Hotel Tipton to survive the competitive market pertaining to the sector of hospitality and tourism in Calgary.
BUSINESS PLAN6 Market segmentation The customers would be of the age range of twenty to seventy years. They would mainly be tourists and excursionists and the ones who are enthusiastic about travelling. As the city of origin for Hotel Tipton would be Calgary, the geographical area would be the the business areas of Calgary along with the areas near to tourist spots(Fraj, Matute & Melero, 2015). The behavioral aspects of the customers would also be taken into account with regard to their passion pertaining to leisure activities in form of travelling, lodging and sightseeing. The middle class people would be the main target as it would be a budget hotel. SWOT Analysis Strengths The strengths of the business plan imply that the rapid growth and advancement of the sector related to hospitality and tourism in the recent past would to a huge level help Hotel Tipton to be a pioneer in the industry not only in Calgary but also in rest of Canada as far as its plans related to establishment and subsequent national expansion are concerned (Karatepe & Karadas, 2015). It would also lead to the attraction of a huge number of customers by providing an incredible ambience with regard to rooms and areas for dining in the form of restaurants. Weaknesses The weaknesses of the business plan imply that the competing group of hotels as aforesaid may pose a huge threat for the growth and development of Hotel Tipton thereby thwarting its chances to progress as planned. Additionally, the sprawling up of new hotels in the future may also thwart its chances to grow and progress further as per its plan. As a result, it is implied that the rates for food and lodging must be analyzed on a frequent basis along with the amenities and facilities as per the trends in the sector related to hospitality and tourism. Opportunities The successful execution of business plan would not only lead to the attraction of customers to a huge extent but would also create job opportunities for people skilled in terms of tourism and hospitality (Dedeoğlu & Demirer, 2015). As a result, it would lead to economic growth and development in a valuable manner. Threats The hotels offering cheaper rates would pose a threat to a huge level for Hotel Tipton thereby thwarting its chances to attract customers to a huge level. The group of hotels as aforesaid may also pose a competitive threat for the growth and progress of Hotel Tipton in the long run.
BUSINESS PLAN7 Business Venture Products and services A wide range of products and services would be provided by Hotel Tipton in terms of food and beverages, room service housekeeping, well furnished beds along with mattresses, pillows and covers, toilet rolls, shaving and dental kits, shampoos and soaps and television sets with highly technical features. Business size At the initial stage, there would be hundred employees for Hotel Tipton to be recruited for various departments based on their skills and abilities pertaining to the requirements of the concerned job profiles (Chan, Hon, Okumus & Chan, 2017). The stakeholders would be initially five which would increase accordingly along with the number of employees. Background of entrepreneur The entrepreneur in question must have a sound knowledge of the hospitality industry along with the market operations of a hotel (López-Gamero, Pertusa-Ortega, Molina-Azorín, Tarí-Guilló & Pereira-Moliner, 2016). It would help in the establishment and expansion of Hotel Tipton in an incredible manner. Location The first location of the business would be at Calgary as it has a huge number of tourist spots. The location would be at the centre of Calgary taking account of the accessibility to most of the areas in Calgary. Physical facilities and operations Descriptions The physical facilities would involve furniture in the form beds, cupboards, chairs and tables. Additionally, it would also include equipment in the form of television, vacuum cleaner, mops and washing machines for laundry services (Rahimi & Gunlu, 2016). The appropriate cutlery along with refrigerators would also be inclusive of the physical facilities along with bar amenities in terms of beer taps. Costs Taking account of the descriptions of the aforesaid physical facilities and operations for Hotel Tipton, the approximate costs are projected to be twenty million pounds which includes taxes and duties to be paid additionally as per the financial policies applicable. Marketing plan Target market The market would be targeted at people belonging to the age group of twenty to seventy years as aforesaid. Local as well as international customers would be targeted by for
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BUSINESS PLAN8 Hotel Tipton as far as domestic and international tourism is concerned. The geographical area would be Calgary which would expand when for Hotel Tipton enters into Canadian market beyond Calgary. Marketing strategies The marketing strategies are to be formulated in planned manner thereby attracting maximum number of customers (Kotler and Armstrong, 2015). Advertisements and campaigns for its promotion should be in the form of flyers, pamphlets and billboards along with televised and radio-oriented broadcasts. Any package deals along with airport pickups must also be incorporated as a part of strategy. Organization plan Legal structure The owners must be registered to undertake business activities in the Calgary. Hotel Tipton must be registered as per the procedures followed in terms of the incorporation of a company or any business entity. The rules and regulations must be followed as required for a partnership firm with regard to its registration. The laws are to be strictly adhered to in such aspect with regard to fairness in ownership deals. Management team In addition to the owners who would work to together on a partnership basis, there would be a management team for each and every department such as housekeeping, food and beverage, room service, infrastructure and layout along with customer and public relations (Buhalis & Mamalakis, 2015). Each of these departments would be headed by an operations manager along with the senior and assistant managers. Licensing and insurance The licenses would be obtained by the local council or authority in question with regard to the ensuring of the adherence to business ethics on part of Hotel Tipton. Insurances may also be taken into account with regard to financial benefits on account of untimely events in the form of health and infrastructure. The costs are estimated upto two thousand pounds in total. Risk assessment Weaknesses The main weaknesses with regard to Hotel Tipton imply the customers being attracted towards cheaper hotels. Season related to tourism would also imply heavy dependency of Hotel Tipton towards tourists Threats The threats imply the advent of new hotels in the market and the competition with various other chains of hotels based in the Calgary as aforesaid.
BUSINESS PLAN9 Contingency plan The contingency plan for Hotel Tipton implies the aspect of crisis management in the event of any unforeseen instance occurring which would be beyond the control. It would involve budgeting accordingly as a backup thereby implying an additional five million pounds for the same. Financial analysis Feasibility analysis Taking account of the budget as stipulated to twenty million pounds with an additional amount of five million pounds, it is estimated that such amount of finances would be feasible for Hotel Tipton to establish and expand accordingly as far as its initial stage is concerned. Start up costs As aforesaid, the start up costs is estimated at twenty million pounds, which would include infrastructural development of the hotel in the form of furniture and equipment along with the additional chattels. It would also involve the employment of the staff which would include hundred employees. Cash flow forecast The cash flow would be governed by factors with regard to the attraction of customers and the returns over investments thereby resulting in profits and revenues. If the appropriate strategy is formulated and implemented in the desired manner, it is projected that the cash flow would be at as sky rocketing amount. Such a cash flow would play a vital role in the further expansion of Hotel Tipton. Sources and application of funds SourcesUtilization Investment- three million dollarsFurniture- seven million dollars Equipment- six million dollars Additional expenses- four million dollars Total- three million dollarsTotal-seventeen million dollars
BUSINESS PLAN10 References Buhalis, D. & Mamalakis, E., (2015). Social media return on investment and performance evaluation in the hotel industry context. InInformation and communication technologies in tourism 2015(pp. 241-253). Springer, Cham. Chan, E.S., Hon, A.H., Okumus, F. & Chan, W., (2017). An empirical study of environmental practices and employee ecological behavior in the hotel industry.Journal of Hospitality & Tourism Research,41(5), pp.585-608. Dedeoğlu, B.B. & Demirer, H., (2015). Differences in service quality perceptions of stakeholders in the hotel industry.International Journal of Contemporary Hospitality Management,27(1), pp.130-146. Fraj, E., Matute, J., & 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, 30-42. Karatepe, O.M. & Karadas, G.,( 2015). Do psychological capital and work engagement foster frontline employees’ satisfaction? A study in the hotel industry.International Journal of Contemporary Hospitality Management,27(6), pp.1254-1278. Leung, X.Y., Bai, B. & Stahura, K.A., (2015). The marketing effectiveness of social media in the hotel industry: A comparison of Facebook and Twitter.Journal of Hospitality & Tourism Research,39(2), pp.147-169. López-Gamero, M.D., Pertusa-Ortega, E.M., Molina-Azorín, J.F., Tarí-Guilló, J.J. & Pereira- Moliner, J., (2016). Organizational antecedents and competitive consequences of environmental proactivity in the hotel industry.Journal of Sustainable Tourism,24(7), pp.949-970. Molina-Azorín, J.F., Tarí, J.J., Pereira-Moliner, J., Lopez-Gamero, M.D. & Pertusa-Ortega, E.M., (2015). The effects of quality and environmental management on competitive advantage: A mixed methods study in the hotel industry.Tourism Management,50, pp.41-54. Nieves, J., & Segarra-Ciprés, M. (2015). Management innovation in the hotel industry.Tourism Management,46, 51-58. Rahimi, R. & Gunlu, E., (2016). Implementing customer relationship management (CRM) in hotel industry from organizational culture perspective: case of a chain hotel in the UK.International Journal of Contemporary Hospitality Management,28(1), pp.89- 112.
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BUSINESS PLAN11 Appendix Marketresearch data Secondary dataPrimary data Information from government websitesInterviews BooksOnline Surveys JournalsFocus over groups Online libraryInformation through social media