Business Plan Development for Landmark Tourism

The assignment details the business plan development of Landmark Tourism, which involves developing a new product or service to influence and impress existing customers. The resort aims to achieve growth by using the existing product only and increase its market share through market penetration. Additionally, the company plans to develop branches in nearby cities and diversify into new businesses with other selling styles.

Preparation of Business
Plan ( The title name will
be - The Landmark
Tourism )

Executive summary
This project plan is to expand a The Landmark Tourism business plan in capital of Oman.
This business idea is chosen in Oman due to the increase in demand of tourists or visitors. The
business plan will create different milestone which will contribute in the growth of the business
(Martins and Fonseca, 2018). Oman is a popular destination for tourists from all around the
world. Various models and theories are used in the project in order to examine the market and
business environment which could affect the The Landmark Tourism.

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Vision statement.....................................................................................................................1
Mission statement...................................................................................................................1
Objectives- .............................................................................................................................1
The Landmark Tourism products...........................................................................................2
Company and product service name.......................................................................................2
Legal and application form of business .................................................................................2
Industry and market analysis .................................................................................................2
PESTLE ANALYSIS.............................................................................................................3
Porter's five forces analysis....................................................................................................4
Identifying competitor............................................................................................................5
Market size and target market................................................................................................5
Customer and value proposition.............................................................................................5
Marketing strategy..................................................................................................................6
Management team and structure of the hotel.........................................................................7
Resourcing and financing of the post.....................................................................................8
Projected financial statements..............................................................................................10
Risk and Strategic option......................................................................................................11
Risk ......................................................................................................................................11
Strategic option.....................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
A business plan, as defined by Entrepreneur, is a “written document describing the nature of
the business, the sales and marketing strategy, and the financial background, and containing a
projected profit and loss statement. Present study will lay emphasis on small tourism company in
Muscat that is The Landmark Tourism. The company is going to expand its business in capital of
Oman. Report will provide the external environmental factors that can affect the decision making
of business. It will also provide the segmentation and targeting strategy for The Landmark
Tourism. Report will also lay emphasis on the four P’s strategy which company is going to
implement.
MAIN BODY
Vision statement
The Vision of The Landmark Tourism firm is to provide recreational vacation and value of
money experience to travellers and tourists travelling to Muscat. The company is going to
provide the memorable experiences to every guest and staff member who are going to get
connected tourism firm. The accomplishment will be fulfilled by giving excellence in service,
innovation and anticipation of the customers ever changing needs and demands.
Mission statement
The mission statement of The Landmark Tourism is to be the first choice of guests, team
members and owners alike (Anton, 2015). The company wants to see below the values that are
integrity, leadership, teamwork and ownership. Mission of tourism firm will be to provide
excellent service to their clients and guests through different techniques like competitive pricing,
innovation and by managing expectation through specific marketing techniques. Company will
aim at providing leisure traveller friendly welcome to deliver exotic guest experience.
Objectives-
The Landmark Tourism intends to be one of the promising tourism firm that is been going to
open in Muscat. It is an upscale of firm will be do something quite remarkable: make customers
discover their smile. The main objectives of the company are following:
 To increase the global presence of The Landmark Tourism by 20% till the end of year
2020.
 To enhance the consumer experience of people living in Muscat by 10% till the end of
year 2021
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 To increase the profitability from tourism by 30% till the end of year 2020.
 To increase the customer satisfaction by 20% till the end of year 2021.
 To build consumer loyalty for The Landmark Tourism by 10%
The Landmark Tourism products
The Landmark Tourism is going to provide luxurious tourism services in Muscat such as,
 Small business innovation and economic development
 Environment friendly transportation
 Visits at ancient buildings and lands.
 Cultural development
 Sport and community development
 Food and beverages
 Accommodation
Company and product service name
The plan is to name tourism firm as The Landmark Tourism. Company is going to provide
luxurious services to its travellers. The services include Food and beverages, luxurious
accommodation, etc. The firm will come up with innovative and creative logo with will depict
name of firm. So, this can assist The Landmark Tourism to attract the customers or travellers in
Muscat.
Legal and application form of business
The business must get registered and also, they need to get the commercial registration
certificate. Further, The Landmark Tourism will seek for approvals from Ministry of Commerce
and Ministry of Tourism which will enable control over ethics of tourism operations. The
Landmark Tourism will focus on recruitment of staff, drivers etc. in to deliver remarkable
tourism exercise to travellers in Muscat. Further, the firm will set Code of Conduct for Suppliers,
hoteliers which will be a summary of the ethical standards which firm expects from business
partners (Tukei, Basheka and Picho, 2016).
Industry and market analysis
It has been analysed in the past years that the Tourism in Oman have been increased. This
change in Oman can be seen by the increase in number of restaurants, hotels, travel firm from all
over the world like China, Russia, UK and USA. Total number of guests in Omani hotels
declined to 1.35 million in the first 11 months of 2018. This was followed by Omani guests
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(369,373 - down 3.5 percent), and 180,840 tourists from GCC countries, also down 8.8 percent
compared to last year (Oman tourists fall 2.8% in 2018 despite rise in hotel revenues, 2019). It
has also increased the gross domestic income of the country. It has also been analysed that the
there are various environmental factors that can affect the decision making of business which is
going to be expand in Muscat. Pestle analysis tool will be used to identify the factors affecting
the company.
PESTLE ANALYSIS
 Political factor- Political factor can affect the business of The Landmark Tourism. The
factors include laws and rules made by government. The license can be expensive, so this
can affect the operational cost of business and reduce profitability. However, to manage
political stability of tourism operations in Muscat the landmark Tourism will seek for
approval from ministry by demonstrating authorities about all the legal compliance,
ethics and code of conduct.
 Economic factor- The increase in labour rate in Oman can affect the business of tourism.
Some organisation in Oman due to recession the top-level managers were given
economic class tickets instead of business class plane tickets which led to decrease in
number of travellers during recession time (Martins and Fonseca, 2018). In accordance
with this it can be said that The Landmark Tourism firm will be focusing on managing
pricing strategy to meet expectations of travellers regardless of financial crisis.
 Social factor- The Landmark Tourism will produce the products according to the value,
culture of consumers, so that the business can create their goodwill and manage value for
money.
 Technological factor- Company needs to make use of advance technology in order to
attract the consumers. They can provide free WI-FI connectivity to their consumers and
entertainment when travelling.
 Legal factor- The Landmark tourism will be focus on compliance with employment and
environmental legislation to manage safety and environmentally friendly tourism
services.
 Environmental factor- While expanding the tourism firm in Oman the company can
also engage in activities like corporate social responsibility to manage its corporate
reputation.
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Porter's five forces analysis
Porter's five forces analysis is one of the best tool or techniques that help to identify
competitive environment and strength of Land mark tourism to compete their competitors in
industry. As it contribute to analyse competition of ventures, the purpose of this model is to
analyses and evaluate five competitive elements that shape hospitality industry and beach bar
and resort. Organization enter into new market and expand their business in Oman, this model
helps to identity their strength and weakness.
Threat of new entry: New entrance in market place is poses as threat situation, threat of
new entry is moderate. Land mark tourism offer their services in Oman, they want to offer 2
restaurants along with gym and spa in new market. Threat of new entry does not affect on
organization business function because they both are fresher and efforts equally to balanced or
maintain reputation in marketplace.
Threat of substitute products or services: Threat of substitute is higher, as it impact on
The Beach Resort and Bar business. Another bars and resorts provide same products which is
already exist in market which give tough competition to company services and goods.
Bargaining power of suppliers: Bargaining power of suppliers is moderate, Land mark
tourism offer two restaurants within Oman, they have number of supplier range that cannot hold
power of distributors.
Bargaining power of buyers: Power of buyers is higher, it is very easy for customer to
switch from one product to another. If Land mark tourism in Oman cannot provide customers
product according to their needs, they can drive from other and have power to drive prices as
well.
Competitive rivalry: Competitive rivalry is higher, Land mark tourism open up their 2
restaurants in Oman. There are many another restaurants already has been developed their
businesses successful and build positive image as it is difficult for firm to raise their position
over existing rivalry.
Identifying competitor
Indirect competitors: it is conflict between vendors which services or products is not
same but what satisfy customer need. Many restaurants are considered as indirect competitors,
they have affect to clients. In local market indirect competition cost of products is higher rather
than another.
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Direct competitors: It is the most difficult situation in which two businesses provide
services or products that is essentially equal as such. Direct competitors have good profit margin
and strong market share at local market. They already build strong relationships with customers
and grab their attention towards them.
Future competitors: New entrants and existing restaurant that enlarge their business in
new market for example, Land mark tourism . They need to expand their ventures and open up 2
restaurants in Oman, along with gym and another facilities.
Market size and target market
Business plan helps Land mark tourism to increase their profitability and productivity.
They want to expand their business in Muscat, it is the first location where they want to expand
because Muscat have higher population rather than another regions.
Customer and value proposition
Customer jobs- Clients work is various types of jobs either social jobs, functional as
well as personal. Within Land mark tourism customer visit just to enjoy meals with their friends
and another family members. They play essential role as increase profit margin and build
positive image in marketplace.
Consumer pain- Many restaurants cannot provide appropriate services to their
customer’s as they face various kinds of pain. Some restaurants were so far as customers
perceived it good and ranked higher. It is very difficult for them to travel for long distance to
enjoy meal.
Clients gains- Gains define benefits and outcomes that Land mark tourism customers
wants. If Land mark tourism understand its clients pain, and identify their expectations they can
give better services that can be build in value proposition. Customer gain include better service
or products quality, benefits in buying goods etc.
Pain relievers- Land mark tourism can reduce customers pain and enhance their
experience more and more rather than before by provide the best service and food items within
restaurant.
Marketing strategy
Land mark tourism aim is to expand their business in Oman, they offer 2 restaurants
within new place along with many facilities that help to grab the attention of customers.
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Marketing strategy contribute to achieve business objectives and aims and also helps to gain high
revenue.
Strength
 Land mark tourism have skill and
talented workers, how helps to make
tasty and healthy food.
 They provide better services according
to customers needs.
Weakness
 Land mark tourism have limited goods
based on season.
 They start business for one location and
cannot change it before.
Opportunities
 Land mark tourism make health food,
that is required in current trend.
 They offer range of food products or
different types of dishes.
Threat
 Existing competitors in Oman within
hospitality sector.
 Threat of substitute products.
The Land mark tourism segmentation- family and couples customers is the main
segmentation point of organization.
The Land mark tourism targeting- Land mark tourism target those people within Muscat
how focus on health. They target families and all the people where live in Muscat how helps to
increase profit and market share.
The Land mark tourism Positioning- Organization target working and residential clients
in Oman. They want to offer the best healthy and tasty food to its target market.
Price: Land mark tourism set affordable price upon their products which helps to fit in
pocket of customers. They set meal price better than its existing and new competitors in Muscat.
People: Manager of Land mark tourism provide training to their workers, they set
attractive dress code for employees that also helps to grab the attention of new clients in new
market. They set dress and design according to country culture which is quite beneficial for
business as whole.
Place: They chose the best place where Land mark tourism can easily attract people. In
Muscat Beach is one of the best place that has been chosen by company to garb the attention of
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customers. Right place is required for business and it plays essential role for creating good
position in market.
Promotion: Land mark tourism promote their new menu and food dishes Via social
media platform. Social media is one of the best promotion strategy that help to introduce
products in market.
Management team and structure of the hotel
The management team is a group of people which is responsible for the management of
all the activities and work relating to the hotel (McKeever, 2016). The management team of the
Land mark tourism resort is as follows-
Designation Job description Number
Manager The job role of hotel manager is to check and regulate all the
activities going on in the hotel and to manage and coordinate
all the working of the hotel.
2
Receptionist The role of this post is to attend all the guests, to ensure that
the customers are satisfied by using services at their hotel and
to take their feedback.
1
Accountant The role of accountant is to manage revenues and cost and to
prepare the financial statements.
2
Chef The role of chef is to prepare the food, supervise and
coordinate the activities of cooks and and food workers and
develop new and innovative recipes (Vrdoljak, and Bukvić,
2017).
4
Cleaners The role of this job is to maintain and ensure cleanliness in the
hotel, cleaning the rooms and halls, vacuum them time to time.
5
Waiters The main work of the waiter is to take orders from the
customers and serve them their orders to satisfy their needs
and to ensure that they are happy and enjoying their order
(Ward, 2016).
5
Cashiers The main work of the cashier is to receive and pay money, 3
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maintain the cash register, address the cash refunds of the
customers.
Total 22
Resourcing and financing of the post
Staff salary
Designation salary/ month Salary/ year
Manager 800 9600
Receptionist 500 6000
Accountant 450 5400
Chef 600 7200
Cleaners 250 3000
Waiters 300 3600
Cashiers 350 4200
Bar tenders 200 2400
Pit boss 150 1800
Total 3600 43200
Infrastructure expenditure
Staff cost
Managers
Particulars Quantity Price (in omani Rials) Total price
Chair 2 25 50
Desk 2 35 70
Fax 3 30 90
Computer 2 125 250
Shelf 2 40 80
Printer 2 60 120
Stationery 50 50
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Total 710
Accountant
Particulars Quantity Price (in omani Rials) Total price
Desk 3 40 120
Chair 3 35 105
Shelf 3 25 75
Computer 2 125 250
Stationery 50 50
Total 600
Total staff office expenses= 710 + 600 = 1310
Equipment cost
Particulars Amount
Gas stove 250
Microwave 80
Cooking range 50
Refrigerator 155
Freezer 85
Mixer 210
Utensils 50
Total 880
Furniture cost
Particulars Quantity Unit price Amount
Tables 20 50 1000
chairs 50 8 400
Partition 5 55 275
Display unit 5 550 2750
Lights 25 5 125
Air conditioners 5 150 750
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Misc. Expenses 150
Total 5450
Projected financial statements
Profit and loss account
Particulars 2019 2020 2021
Sales 163000 325000 325000
Cost 4230 4500 6500
Gross profit 158770 320500 318500
Salaries 37000 37000 36000
Rent 2000 2000 2000
Telephone charges 150 200 250
Marketing expenses 2500 2000 1500
Insurance 0 500 1000
Maintenance charges 200 0 500
Suppliers charges 110000 150000 150000
Total expenses 151850 191700 191250
Net profit/ loss 6920 128800 127250
Balance sheet
Asset 2019 2020 2021
Equipments and tools 20000 21000 49000
Furniture 1000 2500 10000
Cash and bank 45000 50000 85000
Total asset 66000 73500 144000
Equity 5000 5000 5000
Share capital 61000 68500 139000
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Total liabilities 66000 73500 144000
Cash flow statement
Particulars 2019 2020 2021
Cash flow from operating activity
Profit before tax 63981 71480 141979
Adjustment
Depreciation 22338 2010 4720
Increase in asset 1500 500 4500
Net cash from operating activities 84819 72990 142199
Cash flow from investing activity
Payment in acquiring material -1500 -2000 -6500
Net cash flow from investing
activity -1500 -2000 -6500
increase/ decrease in cash 86319 74990 148699
Cash at beginning 5000 18500 140000
Cash at the end of the period 91319 93490 288699
Risk and Strategic option
Risk
Risk Mitigation ways
Competitive risk It can be mitigated by providing superior and premium quality
products (Dale, 2019).
By working according to the needs and requirements of the
customer needs so that they do not switch over to their
competitors.
Production risk This risk can be mitigated by making some strict laws and rules
and ensuring that these rules are met by the cooks and waiters.
Also some training and workshops can be taken for the hotel staff
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for teaching them upgraded techniques.
Financial risk This risk can be resolved by giving proper training to the
accountants.
By timely reviewing and getting audit of the financial records so
that no fraud can be detected (Brinckmann and Kim, 2015).
People risk The is the major risk and it can be mitigated by motivating the
employees so that they do productive work.
The can also be done by providing them incentives and bonus.
Strategic option
The strategic option available to the Land mark tourism and resort is the Ansoff matrix. The
application of the Ansoff matrix on the restaurant is as follows-
 Product development- in this stage the restaurant tries to develop a new product or the
service to influence and impress the existing market segment (Shelton, 2017). Like in this
case the Land mark tourism has started casino ans bar.
 Market penetration- in this the resort tries to achieve growth by using the existing
product only and aims to increase the market share. For this the resort will continue in the
same business for the next 3 consecutive year to gain the market share.
 Market development- for this the resort is planning to develop its branches in the nearby
and famous cities near Oman like Sohar, Nizwa, Salalah and many more.
 Diversification- for this the Land mark tourism is trying to diversify into new business
and new branches with other style of selling like pay and carry or fresh fast food in malls
(Watson, McGowan and Cunningham, 2018).
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