Strategic Planning and Financial Analysis of Victoria Palace Hotel

The assignment content presents a comprehensive analysis of the financial performance and cash flow statement of the Victoria Palace Hotel over a three-year period. The balance sheet shows a significant increase in total liabilities from $324,000 to $595,000, while the total capital increased from $57,000 to $310,000. The cash flow statement indicates a negative cash balance for Year 1 and 2, but a positive cash balance for Year 3. The analysis suggests that the hotel needs to implement strategies to increase earnings and reduce liabilities. A SWOT analysis and PESTEL analysis can help identify strengths, weaknesses, opportunities, and threats, enabling the hotel to develop effective strategies to improve its financial performance.

Running head: BUSINESS PLAN
Business Plan
Name of the student
Name of the university
Author note

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Executive summary
Victoria Palace Hotel is situated in Sydney, Australia that will offer the customers with
underground parking as well as well- equipped kitchen and decorative fireplaces. The hotel
will provide different facilities that include laundry as well as spa facilities as it will help in
attracting more customers. It helps in offering customers outdoor games along with front
office service in case of enquiries regarding the facilities provided by them.
The main aim and purpose of the report is to analyze the plans of Victoria Palace Hotel, as it
will help in identifying the strategies that needs to be implemented in the organization. The
external and internal forces has to be analyzed as to understand the threats and risks of the
business and proper implementation of strategies to reduce such risks in helping the business
to perform better in the market.
Therefore, the conclusion will be based on the implementation of strategies that will help in
improving the business performance. The SWOT and PESTEL analysis will help in order to
understand the issues and loopholes of the business that will help in solving such issues with
proper analysis of the strategies.

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Table of Contents
Introduction....................................................................................................................3
Objectives.......................................................................................................................3
Market analysis..............................................................................................................4
Market segmentation......................................................................................................4
Implementation and strategy of marketing....................................................................5
Financial Plan.................................................................................................................8
Balance Sheet.................................................................................................................8
Projected Cash flow.......................................................................................................9
Conclusion....................................................................................................................10
Recommendation..........................................................................................................10
References....................................................................................................................11

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Introduction
Victoria Palace is a startup hotel business that is established in Sydney, Australia. The
main purpose of the Victoria Palace Hotel is to identify the different preferences of the
customers by delivering the customers variety of services that can attract them. The main
plan of the hotel is to create a strong base of the customers in Sydney with expert knowledge
of the employees in the hotel industry as well as offering excellent services to customers.
The aim and purpose of the report is to identify the structure of the hotel of Victoria
Palace Hotel in Sydney. The external and internal analysis of the environment has to be done
by the government as to analyze the impact of the entire business in Sydney. The proper risk
analysis has to be done by the respective hotel as to identify the threats and risks that can
affect the brand name of the business and implementation of strategies as to improve the
entire performance of the hotel.
The structure of the report includes analysis of various functions that needs to be
implemented by the hotel as to reduce the level of risks and threats from the other
competitors in the market. Proper implementation of strategies is helpful in understanding the
other businesses in the competitive environment related to the same business (Sekaran and
Bougie 2016).
Objectives
 To identify the expectations of the customers for the type of accommodation
required by them
 To identify the competencies of the other competitors in the market
 To identify the rate of occupancy at the peak periods

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Market analysis
The strategy of the respective hotel is to understand the tastes and preferences of the
customers that can be offered to the discerning guests of the hotel (Fayolle and Liñán 2014).
The focus of the hotel is to identify the issues regarding the quality of the hotel along with the
value for money, as this will help the company in making changes as per the needs of the
customers. In order to understand the requirements of the customers in an effective manner it
is important for the hotel to communicate the values of brand along with developing
relationships with suppliers and customers (DaSilva and Trkman 2014).
The main goal of the hotel is to generate continuous growth in the economy as well as
understand the differentiation techniques used by the other hotels in the industry. Proper
growth is essential as to target the new ventures of the business including both national as
well as local communities (Bryman and Bell 2015).
Market segmentation
The customers are broadly divided into groups:
Summer guests are those who prefer to visit in summer and this will help in
attracting more customers for various outdoor games along with other recreational activities
as well (Mollick 2014).
Skiers are those visitors who enjoy skiing and are ready to visit such places at any
time of the year. These kinds of customers help in making such startup hotels important in
nature and enjoy such activities as well (Shoham and Paun 2015).

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Implementation and strategy of marketing
The Victoria Palace Hotel will target customers for both summer and winter seasons
of other competitor hotels in the market. As this is a startup business proper arrangements has
been made as to attract customers for both the seasons. For the winter, skiing is the most
attractive activity that can be organized by Victoria Palace hotel as to make the business more
profitable in such peak seasons (Grant 2016). Similarly, proper balloon trips along with other
day hikes will help in creating recreational activities for the customers and attract them as
well.
There are more than 400 lodges as well as inns in the Victoria Palace Hotel as the
customers are searching for a change in the experience of lodging that is provided by other
hotels in the competitive market (Chienwittayakun and Mankin 2015). The costs that will be
charged by the hotel will be higher than the other hotels but it will be providing the customers
a memorable as well as great experience for their stay in the hotel. The hotel will also
implement a small rental store that can provide the customers to buy the passes for skiing and
other balloon trips as well.
Internal environmental analysis
SWOT Analysis

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Figure 1: SWOT Analysis
(Source: Brooks, Heffner and Henderson 2014)
From the above SWOT analysis, proper analysis has been done by Victoria Palace
Hotel, Sydney in order to understand the internal and external opportunities as well as threats
from the competitors in the market. It can be analyzed that proper tapping of different
benefits is necessary, as this will help in understanding the competitors to increase the scope
of expansion in such market (Brooks, Heffner and Henderson 2014).
The threats have to be analyzed properly by them in order to understand the new
policies as well as regulations that have been implemented by the government for the hotel
industry specifically. Proper value chain analysis has to be done as to understand the quality
service as well as understanding the needs of the customers and taking care of the satisfaction
of the customers.
Similarly, with the help of Porter’s Model proper analysis can be done as to
understand the competitive strategies applied by other hotels in the entire market. Proper
OpportunitiesHighgrowthScoprofexpansionHugedemandofvariouscuisinesThreatsHighlycompetitiveinnatureLackofdifferentiationinproductsIncreasingbureaucracySWOT

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understanding about the various powers of the buyers as well as the suppliers in the market
can help in understanding the demand and supply of the hotel industry among the customers.
Bargaining power of the buyers is essential to be analyzed, as it will help Victoria Palace
Hotel in understanding the tastes and preferences of the customers. It will also help the
respective hotel in understanding the competitive price in which the other competitors in the
market are providing same kind of comfort (Ghezzi et al. 2015).
1. Bargaining power of suppliers is essential, as this will help them in
understanding the flexibility required for the task. The availability of goods and
services is essential as to understand the potentiality of the suppliers.
2. Threats from new entrants are essential to be understood by the respective hotel
as this will help them in competing with the local as well as global competitors in
the market (Blackburn, Hart and Wainwright 2013).
3. Threat from the substitutes is essential in order to provide proper accommodation
to the customers, as there are competitors in the market who can provide the
customers the same kind of comfort like the others in the market.
4. Rivalry among the competitors is essential as this will help in understanding the
kind of products and services provided by the competitors in the market that are
operating in the same kind of environment.

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Figure 2: PORTER’s FIVE FORCES MODEL
(Source: Blackburn, Hart and Wainwright 2013)
Financial Plan
Proper financial plan is essential to be conducted by Victoria Palace Hotel, as this will
help in understanding the competitors in the market. The proper analysis has to be done by
the respective hotel as to understand the various positions of assets and liabilities in the
competitive market.
Balance Sheet
Assets Year 1 Year 2 Year 3
Current assets
Cash 31430 118555 165000
Others 14000 30000 50000
Total 45430 148555 215000
Long term assets 340000 350000 420000
Accumulated
depreciation
14000 28000 42000
Total 326000 322000 378000
Total assets 371430 470555 593000
Liabilities Year 1 Year 2 Year 3

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Current liabilities
Accounts payable 4000 30000 35000
Others 0 0 0
Current borrowing 0 0 0
Total 4000 30000 35000
Long term liabilities 320000 300000 250000
Total liabilities 324000 330000 285000
Paid in capital 200000 200000 200000
Earnings 42000 114000 138000
Retained earnings (185000) (142000) (28000)
Total capital 57000 172000 310000
Total liabilities and
capital
381000 502000 595000
Table 1: Balance sheet
(Source: Created by author)
Projected Cash flow
Particulars Year 1 Year 2 Year 3
Cash from operations
Cash sales 740000 9100000 1022000
Subtotal 740000 9100000 1022000
GST 0 0 0
New long term
liabilities
0 0 0
Sale of long term
assets
0 0 0
Subtotal cash
received
740000 910000 1022000
Expenditures Year 1 Year 2 Year 3
Spending of cash 380000 412000 432000
Payment of bills 298000 345000 425000
Subtotal 678000 757000 857000
Additional cash
spent
0 0 0
GST 0 0 0
Other liabilities 30000 30000 30000
Subtotal cash spent 708000 787000 887000
Cash Balance 32000 123000 135000
Table 2: Cash flow statement
(Source: Created by author)

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Conclusion
Therefore, it can be concluded that proper strategies need to be implemented by the
Victoria Palace Hotel as to understand the competencies of the other hotels in the competitive
market. Proper implementation of strategies is essential as to understand the internal and
external environment and it will help in understanding and identifying the threats and
opportunities from the competitors in the competitive market. The proper projection of
balance sheet and cash flow has to be generated by the respective hotel as to understand the
targets that has to be achieved by the company in the next three years. The cash flow helped
the respective hotel in understanding the issues and loopholes of the startup business and
implementing plans to make it the best in the competitive market and target customers and
make the customer base strong in nature.
Recommendation
Therefore, it can be recommended that the respective hotel needs to implement the
SWOT analysis properly as this will help in understanding the loopholes and rectifying it
properly as well. The PESTEL analysis can be done by Victoria Palace Hotel as to
understand the various effects that can affect the business of the hotel and it can affect the
products and services provided to the customers by them. Proper strategies implementation is
essential as to understand the issues and helping them to be more competitive in the market in
future.

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References
Blackburn, R.A., Hart, M. and Wainwright, T., 2013. Small business performance: business,
strategy and owner-manager characteristics. Journal of small business and enterprise
development, 20(1), pp.8-27.
Brooks, G., Heffner, A. and Henderson, D., 2014. A SWOT analysis of competitive
knowledge from social media for a small start-up business. The Review of Business
Information Systems (Online), 18(1), p.23.
Bryman, A. and Bell, E., 2015. Business research methods. Oxford University Press, USA.
Chienwittayakun, J. and Mankin, D., 2015. Strategic Management Planning Process (SMPP)
as an Organization Development Intervention (ODI) to Align Values, Goals and Objectives
and Improve Employee Teamwork, Engagement and Performance: A Case Study of a
Family-Owned Business in Thailand. ABAC ODI JOURNAL VISION. ACTION.
OUTCOME., 2(1).
DaSilva, C.M. and Trkman, P., 2014. Business model: what it is and what it is not. Long
range planning, 47(6), pp.379-389.
Fayolle, A. and Liñán, F., 2014. The future of research on entrepreneurial intentions. Journal
of Business Research, 67(5), pp.663-666.
Ghezzi, A., Cavallaro, A., Rangone, A. and Balocco, R., 2015, April. A Comparative Study
on the Impact of Business Model Design & Lean Startup Approach versus Traditional
Business Plan on Mobile Startups Performance. In ICEIS (3) (pp. 196-203).
Grant, R.M., 2016. Contemporary Strategy Analysis Text Only. John Wiley & Sons.

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Mollick, E., 2014. The dynamics of crowdfunding: An exploratory study. Journal of business
venturing, 29(1), pp.1-16.
Sekaran, U. and Bougie, R., 2016. Research methods for business: A skill building approach.
John Wiley & Sons.
Shoham, A. and Paun, D., 2015. Small business marketing strategies: A call for
customization. In Proceedings of the 1993 Academy of Marketing Science (AMS) Annual
Conference (pp. 553-557). Springer, Cham.