Entrepreneurship and Innovation1 Executive Summary The below mentioned report is formed to introduce a new business line in the Sydney Harbor Marriot Hotel present in Australia. The organization is successfully running its business in the market of Australia. Further, the company is aiming to introduce cruise services in Australia so as to increase its level of profitability. Further, the report evaluates the description of the company along with the analysis of marketing and management strategies of the organization. Evaluation of competitors has been made in the paper. The ways in which the organization should attain funds in the environments in the environment that is through retained earing and IPO. The key challenges and measure to solve such challenges have also been discussed in the paper. Further, additional details about the paper are mentioned below:
Entrepreneurship and Innovation2 Contents Introduction......................................................................................................................................3 Description of the Entrepreneurial Venture.....................................................................................3 Management....................................................................................................................................4 Marketing.........................................................................................................................................5 Competitor analysis.........................................................................................................................5 Financial Analysis...........................................................................................................................5 Key risks and challenges.................................................................................................................6 Conclusion.......................................................................................................................................7 Bibliography....................................................................................................................................7 Appendix..........................................................................................................................................8
Entrepreneurship and Innovation4 Additionally it is analysed that that the cruise services are an add on to the resorts and hotels as it assists the business to let the customers stay for a longer period of time and enjoy the ambience of the site. The areaof Sydney Harbor is beneficial for the organization to introduce this segment in the workplace atmosphere. Further, it should be noted that with the introduction inventioninnovationintheMarriottenvironment,theorganizationwouldbeableto automatically introduce duplicate, synthesis and extension innovation in the business. It should be noted that this type of innovation for Marriott could also be called as an extension in the service facilities provided by the organization(Kovaltchuk, et.al., 2016). Management The Marriott group works were several segments present in different parts of the world. Resulting in which, the organization required to use a definite organizational structure to initiate the functions of the hotel chain. The vision of the hotel chain is to become a premiere provider and facilitator of leisure and vacation desires to the people in the world. The mission of the organization is to provide adequate services to the customers and enabling them to attain leisure experience for which they are paying in the environment. The organization structure of the hotel chain is broken into several segments based on the different types of services offered by the organization(Nikolskaya, et. al., 2017). The organization has many vertical reporting segments. Therefore, it can be said that the organization make use of vertical integration strategy to provide services to the customers and manage the business functions as well. Further, the cruise line of the organization in Sydney Harbor would also be managed individually. This aspect eliminates the interference of other segments of the company that initiates easy and fast delivery of services to the customers(Popovic, et. al., 2019). The company holds a legal structure of corporate legal entity working under differential structure. The company is different from its people and works as a separate legal entity. This type of legal structure eliminates the presence of liability from the partners of the organization. Further, in order to strategically plan the functioning of cruise segment in the environment of Sydney Harbor for Marriott, the organization make use of scenario based strategic planning approach in the business environment. According to this type of approach, the business does evaluate the scenario in which the company works and then implement strategies accordingly. It
Entrepreneurship and Innovation5 should be noted that the company initiates regulations and implement them on the basis of best case and worst case scenarios in the business environment. This type of strategic business approach helps the organization to target the different locations differently by analysing the features present in that environment and then provide the resources and services to the customers accordingly. Like, in the Australian environment, it would be beneficial for the organization to introduce the cruise segment for the customers. Innovation in the business based on the scenarios helps the organization to initiate competitive advantage in the external environment(Clifton 2019). Marketing The company is going to target upper middle level people who either visit to such location for leisure and vacation or for business meetings. According to the geographic segmentation, the business the targets people who live in cities and populated locations because they prefer travelling to different location for relaxing. Further, according to the demographic segmentation, the business is going to target people who have adequate income level of afford in a high class hotel. The company would also target people who going to business trips on a regular basis. Satisfaction,valueandlifestylearethethreeaspectsthataretargetedaccordingtothe psychological segmentation(Goh, Nguyen, and Law 2017). Talking about the communication strategy, it should be evaluated that the business would effectively utilize both of the physical as well as social media to attract the customer in the marketplace. The company should initially provide cruise facilities to the visitors as economic rates in the market. This will attract the interest of visitors, further, the company should also include this facility in the package offered by different travel agencies. Further, the organization should make use of social media tools like Facebook, Instagram and Twitter etc. to develop online campaign and promote the functions in the business environment(Goryushkina, et. al., 2016).
Entrepreneurship and Innovation6 Competitor analysis Financial Analysis There are several ways in which the company could attain funds for the development of new services in the environment like IPO, loan, venture capital etc. However, being a global organization, the name of the organization is renowned in the worldwide environment, resulting in which it is suggested that the organization should raise funds through IPO. Further, looking at the sound financial statements of the company, it can be said that the company has surplus retained earning that can be used for investment in the new product segment of the organization. It is not suggested to the organization to take loan or debts in the environment because they are a liability for the organization. The company do not need to give any interest on the retained earnings or the IPO as the shareholders are the part of the organization (Dogru, and Sirakaya-Turk 2017). Below mentioned is the analysis of investment structure of the company: ActivityCost Operational Cost$100,000 ($ 25000*4) Retained earnings$ 5000 IPO$ 95000 Key risks and challenges Environmental challenge: the cruise industry is affecting the environmental conditions of the nation resulting in which it is attracting the eyes of government. Initially, the organization might face difficulty in attain license, further, the actions of the organization would also affect the marine life. High investment and maintenance cost: introduction of this segment in the business involves high cost of investment. The company could attain cost of investment but it would also require cost of maintenance as well.
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Entrepreneurship and Innovation7 Further, it should be noted that company should strictly follow the environmental guidelines in order to save themselves from the penalties and CSR related issues. Further, it should be noted that the company would definitely attain profit from this line. Thus, share of this profit should be directly invested in maintaining the resources(Kimes 2016). Conclusion Thus, concluding the facts mentioned above, the aspects should be analysed that the paper evaluates detailsabout the expansion of the business venture of Marriott hotel present in Sydney Harbor Australia. The paper highlights the information about the introduction of new segment that is cruise service in the environment of Australia. The above mentioned paper highlights the business structure and marketing activities of the company to promote the innovative venture in the environment of Australia. The financial analysis provides details about the ways in the which the organization should attain profits in the international environment.
Entrepreneurship and Innovation9 Dogru, T. and Sirakaya-Turk, E., 2017. Investmentand firm value:is therean optimal investment level in hotel firms?.The Journal of Hospitality Financial Management,25(1), pp.17-26.
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