Business Plan for Shove Heaven Resort and Spa

This report analyses the business plan for Shove Heaven Resort and Spa, including the establishment of a resort and tourism enterprise, macro environmental overview using PESTLE analysis, market and industry analysis using Porter's five forces, competitor analysis, marketing and pricing strategies, operational plan, SWOT analysis, and financials.

Business Plan

Executive summary :
The report is based on a new business plan that can be successful. It firstly consists of the
detailed information about it with the location and number of employees planned. The plan is
then deeply analysed with different modals, starting with the pestle. Other analysis concluded are
porter's five forces, competition analysis, STP, pricing, operational plan, swot and finance related
elements in the according format.
Table of Contents
Executive summary :........................................................................................................................2
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
The business detail :....................................................................................................................3
Macro environmental overview :................................................................................................4
Market and industry analysis :....................................................................................................5
Competitor analysis :...................................................................................................................6
Marketing and pricing strategies :...............................................................................................6
CONCLUSION ...............................................................................................................................8
REFERENCES:...............................................................................................................................9
Books and Journals:....................................................................................................................9

INTRODUCTION
Business is basically an activity of producing or buying and selling of products or
services in the market and is done with the main motive of earning money for livelihood. But the
evolving world has complicated the related business processes and certain principles and ways
of doing a business activity are rapidly changing. The organisation through which the activity of
business is performed is known as enterprise. To start and make an effective and strong business
it needs a strong business plan according to many different factors such as – demands of
consumers, investments needed and available, supply, competitors and environment of
performing the business (Fletcher, St Clair and Sharmina, 2021). Following report is based on
identifying a business plan that can be successful in the future with considering the affecting
factors. The basic information about the plan with different modal such as pestle, porter and swot
are used to analyse the related environment of it.
TASK
The business detail :
The business plan used in this report is the establishment of a resort and tourism
enterprise. It provides people with a beautiful sightseeing, luxurious rooms, tasty food according
to the prefer of UK consumers and collaboration with the travel and tourists companies to
connect the tourists with them and earning commission. The name of the company is Shove
heaven resort and Spa. The targeted location is Ipswich city in UK. The city is chosen by
considering its beautiful location and connection with the sea that forms a beach site. Some large
and developed cities such as Cambridge are not so distant from the Ipswich and location chosen
for resort. It will help it targeting the people of high income level. The types of employees
needed in the management of the resort are – housekeepers, waiters, chefs, travelling consultants
and supervisors. The needed number of employees including the different types are around 20.
The affection towards travel, exploring and relaxing is increasing in the people. They need a
place where they can enjoy on their weekends and can also work when needed through their
laptops or mobile phones. This type of industry is expected to hugely grow with the time.

Macro environmental overview :
For the efficient and effective analysis of the macro environment, the pestle analysis is
used. It is a framework that is made form the elemetns of several external environment affecting
factor (Alt, Auth and Kögler, 2019). The use of this tool can help the company in its strategic
management. The factors involved in it are discussed in the following points :
 Political – This factor tells about the determination of the extent to which the government
authorities can influence the environment. These must be considered to avoid
uncertainties and maintain a smooth working. The involved elements of this factor that
must be viewed are government policies, regulation and de-regulation of trends. The
business environment related behaviour of UK government is stable which is a good
point for the company.
 Economical - These are related to the factors of the country's economy. These have
direct impact on a firm's long term aspects. This is an important consideration of the
company as it can affect the pricing strategy of it. The several elements of this factor that
the firm must look upon are – inflation rate, employment rate and interest rates. These
play a relatively low role due to the presence of it only in a single country and the it does
not even have much need of suppliers and partners of other economies so the factors of
different economies do not much role.
 Social – These are the factors related to the beliefs, behaviour, preferences values of the
society and mainly consumers. These play a moajr role in forming of the goodwill and
profitability through the marketplace. It must work on simplifying the processes that
change with the demands. The weekends prove to be a peak time for the travel and
tourism industry. And the other period, the industry faces crisis and low availability of
customers. Considering this factor, it can work in providing discounts on the working
days. It must look upon using the activities and process that do not harm the religion and
ethics of the people.
 Technological – The use of technological innovations and methods are included in this
factor. These help in making certain process in the operation of a business entity easy and
provide the customers with value (Roberts, 2020). As working in travel and tourism
industry, the use of highly innovated technological tools and machineries are less in the

daily basis operations of Shova Heaven resort and Spa. The certain technological tools
that must be continuously updated and checked by the company are – LCD's, hot water
showers, attractive lightnings and smooth transportation.
 Environmental – These consist of the environment related factors of the surroundings that
have the potential to affect the business environment. This have one of the most impact
on the related industry as the resort and travels industry deal with the related problems
such as pollution and global climate conditions. The sea sometimes (in bad weather
conditions) provide with the risk to the intellectual property and even the risk to live of
the people. Some customers are not concerned to the environment and spread garbage
around the surroundings. These factors make the involvement of government which
sometimes lead to punishments of charges and even loss to rights of property in cases of
not following the ideal methods.
 Legal – This factors tells about the activities that are allowed to be followed and practised
by a company and what methods or practises are not allowed. This have a interference of
the government and higher authorities. Some of the included elements of this factor that
must be considered by Shova Heaven resort and Spa are- consumer law, health and
safety, employment legislation and some related trade regulations (Alapaeva, 2019).
Market and industry analysis :
Porter's five forces is a strategic management tool used in competition, market and
industry analysis. Following is the use of this modal on the resort company:
 Competition rivalry- The travel companies are not too much or too less in UK. This
means the company is working in a moderate competitive market. It can work in
collaborating with some travel companies to have referenced base of customers and get a
competitive advantage.
 Buyers power- Consumers easily switch when they get same or better quality products
for lesser price. This puts pressure on the company and effects the profits. It should focus
in building more loyalty and customer relationship by providing qualified services. The
threat of this factor is high.
 Suppliers power- The more option for suppliers a company has, the lesser suppliers
power becomes. The switching of suppliers for the company depends on quality and the

cost at which they provide them the products. The resort does not deal in a single product
and thus have a range of different suppliers that provides with a moderate threat.
 Threat of Substitute- If the products or services a company provides can easily be
substituted, the company can be in big risk of losing their customer. The luxurious
services which are provided by the related firm can not be substituted by any other
services and this makes the threat of this factor as low for it (Abizari and Ali, 2019).
 Threat of new entries- If the working system,capital used in establishing is low and easy
of a industry there much chances of new entries. The capital investment and competition
in the related industry is high and this tells that the threat for new entries is low.
Competitor analysis :
The competitors in the travel and tourism industry included of the resorts in UK are
diversified in the whole country providing the different levels and ways of satisfaction. The
target customers of the chosen company are high income level and middle income levelled
people. Some of the peak competing resort companies that targets the same customer base in UK
are – New quay, North Cornwall, Brighton, East Sussex and Ipswich hotel and Spa. The firm
should provide some different and new services such as providing quiet environment for working
people and different qualified sea services (boating and surfing) to its customers. The price
should also be reasonable to build a loyal relationship with people.
Marketing and pricing strategies :
Different types of market segmentation :
 Demographic segmentation – The segmentation in this is based on the obervable and
local differences such as gender, age, religion and occupation level (Ansorena, 2020).
 Behavioural segmentation – The formation of groups of consumers in this type are based
on the behavioural aspect relating to the product or service of the organisation.
 Geographic segmentation – This type of segmentation works in making the segments
according to the geographic location of people.
 Psychological segmentation – This is a type of segmentation that works in deeply
analysing the mental and emotional factors of consumers to create a effective impact such
as personality and lifestyles.

The Shova Heaven resort and spa is made with a high investment and is full of luxury and global
level services. Due to this it needs to target rich and interested people globally. The ideal type of
segmentation to be used in targeting consumers for the related business enterprise is
psychological segmentation. It can help in targeting the people from worldwide though hitting on
their deep character aspects. This type is similar to the demographic type but consider the detail
and effective insights.
The target market or consumers for the related resort companies are all the people came from
airport with the motive of travelling. The three types of targeting strategies are :
 Differentiated marketing – A particular type of markets or consumers are focused in this
strategy though analysing the segments.
 Mass marketing – This type of strategy works in targeting the whole group of consumers
which are in the capacity of the company without considering different segments.
 Concentrated marketing – This type of strategy elaborates the targetting of some
particular group of consumers and is also known as niche marketing (Ball, 2019).
Differentiated type of targeting strategy should be used for targeting the consumers for the
related resort company.
Pricing strategy :
 Skimming pricing strategy – In this type of pricing strategy, the prices are first set as high
and as the demand gets low the price is diminished slowly. Considering the high
spending power of the target customers. The company will use different types marketing
which will create a trend and high position in the market. This pricing strategy will prove
to be befitting for it.
Operational plan :
The facilities provided by the company are – luxurious accommodation, healthy and
diversified range of food, convenience and some joyful activities. The slots can be booked
though walk in, online website of the resort itself and some other travelling applications and
websites. It is situated at the west end of the city, Ipswich. The legal consideration is providing
healthy and hygienic food and certain permission required to settle (Helmold and Samara, 2019).
Swot analysis :

 Strengths – The beautiful location of the resort at a end of the country with the seaside is
the biggest strength of it.
 Weakness – Need of high maintenance cost for holding the high standards
 Opportunities – After building a well known image, it can diversify in other locations of
the world to target higher group of customers.
 Threats – Any global or industry related uncertainty such as Covid 19 is the biggest
threat of it as it can even shut it down stop the travelling allowance of people.
Financials :
Cash flow statement:

Balance sheet:

CONCLUSION
From the above report it has been concluded that business is a very complex activity that
have impact of many different factors that must be considered for effective working and growth
of the business organisation. The analysation of the business environment works in finding the
areas that need to work on and areas that need to be maintained. There different tools that are
used in the analysation process such as pestle and porter's five forces.

REFERENCES:
Books and Journals:
Fletcher, C.A., St Clair, R. and Sharmina, M., 2021. Seafood businesses’ resilience can benefit
from circular economy principles. Nature Food. 2(4). pp.228-232.
Alt, R., Auth, G. and Kögler, C., 2019. Transformation of Consulting for Software-Defined
Businesses: Lessons from a DevOps case study in a German IT company. In Advances in
consulting research (pp. 385-403). Springer, Cham.
Roberts, A.D., 2020. Corporate social responsibility (CSR): Governments, institutions,
businesses, and the public within a smart city context. Handbook of Smart Cities, pp.1-25.
Alapaeva, A.A., 2019. Intensive gardening in Kyrgyzstan: marketing aspect. Вестник
Кыргызско-Российского славянского университета. 19(7). pp.3-7.
Abizari, A.R. and Ali, Z., 2019. Dietary patterns and associated factors of schooling Ghanaian
adolescents. Journal of Health, Population and Nutrition. 38(1). pp.1-10.
Ansorena, I.L., 2020. Operational strategies for managing container terminals. An approach
based on closed queuing networks. International Journal of Industrial and Systems
Engineering. 35(1). pp.1-12.
Ball, D., 2019. 3. The Development of the SIOP, 1960-1983. In Strategic Nuclear Targeting (pp.
57-83). Cornell University Press.
Helmold, M. and Samara, W., 2019. Progress in Performance Management: Industry Insights
and Case Studies on Principles, Application Tools, and Practice. Springer.