Hospitality Business Plan for Moving Modular Hotel

This document provides a detailed business plan for launching a Moving Modular Hotel in the hospitality industry. It covers market identification, financial plan, competition analysis, and more.

The Hospitality
Product And Make A
Business Plan
According To The
Criteria Given

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Organisation:..........................................................................................................................1
Market Identification :............................................................................................................2
Financial plan :.......................................................................................................................5
Business plan .........................................................................................................................8
DATA Collection:..................................................................................................................9
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
Every business operates their operations depending on the strategies and business plan
that has been created. Business plan is a written document that contains business goals, and a
procedure regrading how these goals can be achieved within the time frame given. This also
enable the business in deciding which goal to be achieve depending on the prior notice. The
preparation of this documents is essential for the association as this helps them in identifying
what, when and how to achieve the targeted plan in most effective manner so that the cost of
operating a business can be minimised and desired level of growth and profitability can be
achieved. To furnish the current report the chosen association is Pan Pacific which is situated at
Melbourne. The Hotel of Pan Pacific have now decided to launch new and innovative venture for
their customers arriving at hotel that is Moving Modular hotel for which the assignment will
cover a proper and systematic business plan consisting of vision, mission, objectives and what
value does the new venture provide to their potential customers.
MAIN BODY
Organisation:
Overview of the Company
Pan Pacific hotel is well known for their excellent services in the hospitality industry.
The hotel of Pan pacific is situated in the middle of the city from where the panoramic view of
the city can be seen. Pan Pacific provides luxury services to its customers by providing them the
room that is 4425.0 sq. ft. consisting of free Wi-Fi services, heaters, cribs, bathtub,
interconnected rooms, iPod docking station etc. The guest arriving at Pan Pacific enjoys the
finest services including the fitness centres, as well as intimate services of fine and informal
dining choice and pacific own clubs and lounge with complete outdoor terrace (Li and et. al.,
2013). The business of Pan Pacific have now decided to expand their business by launching its
new venture that is Moving Modular Hotel.
New Venture: Moving Modular Hotel
The company has announced to open a New venture of Moving modular hotel for their
customers so that the satisfaction to the customers needs, wants and desire can be given in the
most suitable manner and in the most innovative way. The idea to set up this moving modular
hotel by the company has been taken into consideration in order to enhance their business
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profitability and overall productivity. Expansion of the business through setting up of this new
venture will enable the business in increasing their customer as well as market share (Barber,
2014).
Vision: The vision of Pan Pacific behind the launch of this new Venture is to become
world wide renounced for their effective services to their customers.
Mission: The business works with the Mission to open this New Moving Modular hotel
is to cut out building cost and time so that overall business productivity can be enhanced.
Objectives: Pan Pacific aims to occupy its market share by increasing its existing share
that is 75% to 90%.
Market Identification :
The business will focus here on the market analysis for their new venture so that it
supports them in determining which market to be focused by segmenting it on their similar
needs, wants and desire (Ahmad, 2015). After the segmentation it will give more emphasis on
the targeting and positing of its new venture in the mind of the customers.
Segmentation: This market analysis of segmentation will enable the business of Pan
Pacific hotel to easily identify the area where there is more demand of new restaurants or hotel
so that they can easily segment the market and can establish their new ventures of Moving
modular Hotel and can gain more and more profit.
Targeting: After the segmentation of the market the manager of the Pan pacific will give
their more focus on targeting the customers who are keen to experience new and unique way of
satisfying their wants and are more food conscious (Puciato & Mrozowicz, 2013).
Positioning: In this the manager of Pan Pacific will focus on the positioning of the new
venture in the mind of the customers so that large amount of revenue and sales can be generated.
Competition analysis:
The business here will focus more on the analysis of their competitors with the help of
Porter's five forces model. Implementation of this theory within the business will enable the firm
that is Moving Modular hotel in understanding the level of competition which they are going to
face within the marketplace (Swarbrooke & Horner, 2012).
Porter's five forces model- This model enables the firm in understanding the
competition which the firm is going to face in the prevailing market. This is the most effective
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tool for analysing the competition. Below mentioned are the core component which the Moving
Modular hotel will focus :
Bargaining power of buyers : In this the bargaining power of the customers are
generally high as customers always seeks to experience the products or services which gives
better result with few amount of investments . So the company has to give more emphasis on the
products quality and process so that the customers when compare it to the other firm can rely on
this brand and prefer coming to Moving Modular hotel for their satisfaction (Hoque, 2013). The
business here must also look on their USP for selling of their products and services as customers
will attract more and more towards their unique way and will stick to this brand only.
Bargaining power of suppliers : The business of Pan Pacific will focus more on the
supplier power for their new ventures as suppliers are the only one who will provide the
business with different different inputs so that better output can be obtained (Kusumaningrum &
Hidayat, 2016). If there are more and more supplier prevailing in the market than the bargaining
power of the supplier within the market will be more and if there are few suppliers than Pan
Pacific can easily establish there new venture for enhancing its profitability and productivity
level.
Threat of substitute products : Here the business of Pan Pacific have to face less threat
from its substitute products as the business has come up with the new idea of operating a
business through Moving Modular hotel which no other business is dealing in the market so the
business have to look all the aspects their threat their powers and results for successfully
operating and sustaining the business in the market for long last period (Bowie, Brookes &
Mariussen, 2016).
Threat from the new entrants : The business here have to face low threat from the new
entrants as for launching or establishing any of the business firm as its required lots of task and
documentation which is not possible for every business to get it done so the business of Moving
modular hotel will be facing less threat as they are operating their business on the moving car
where there is less investment for the operating of business but on other hand any other firm
have to invest more on the part of building a hotel and operating it so here the threat from the
new entrant is comparatively low.
Rivalry among existing firm : The firm have to face strong competition from its rivalry
firm as there are many firms prevailing in the market which is dealing in the same business of
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hotels where each of them operates business with new and unique ideas providing customers
with satisfactory services and products (Martínez & del Bosque, 2013). So in order to reduce
these competition the business of Pan Pacific will look on each factor for establishing its new
ventures considering their potential customers buying power, taste and preferences etc.
SWOT Analysis Of Pan Pacific
SWOT analysis will enable the firm in determining their strength, weaknesses,
opportunity and threat which is prevailing in the market for the firm from its rivalry business:
Strength Weakness
 The business has strength as they are
highly recognised and fosters strong
organisational culture all across the
Australia.
 Weak structure of management due to
its large size and less brand dilution due
to its expansion in the global market.
Opportunity Threat
 The business has the opportunity to
cover larger share in the market by
expanding its business through the
launch of new venture.
 The business while establishing its new
venture may have threat from
frequently changing political legislation
and market situation.
PEST analysis:
It is an identification and study of environmental conditions which are necessary for
launching a new venture (Chang & Chen, 2015). This will enables to determine the political,
economical, social and technological factors which effects the company's growth and success.
PEST analysis can be done under:
Basis Statements
Political The environment of Australia is transparency from political parties which
results in happy citizens. The political situation is stable in that country so,
Moving Modular Hotel is able to expand their Pan Pacific hotel in that country
confidently. This factor effects company at a great extent because it directly
impacts on the revenue and profits. The main thing is that the hotel industry is
backbone of the government and their supports helps to sustain in the
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competitive market.
Economical This is in favour of company to start a new venture in the Australia because
economic environment of a country is easy for the investors of companies and
there is an option for buying buy-to-let geographical area for optimal prices. In
addition, the currency exchange rate is in favour of UK and chances of earning
more profits. This country have low unemployment rate rather then other
countries so, all these things are helpful in develop a new venture (Botha &
Robertson, 2014).
Social In Australia three classes of social such as working, middle and upper class.
Upper class is 5-10% with capital, property and ownership being a source of
income. Middle class people don't have mutual jobs as well as mutual workers
is more then 20% of total population. These forces impacts on the emerging
companies at large extent. Consumer preference affects the global hospitality
industry so, a company needs to more focused on the educational level more
and society's needs or wants of that country where they want to launch a new
venture.
Technological Australia is known as a innovation in technologies and adopts latest techniques
frequently by following the “No more Encryption”. Here a trouble regarding the
technological research and policies and currently government of that country
passes rules regarding the security and protection of information. This factor is
a biggest influencer for the hotel industry because they use information
technology to provide better satisfaction to their customers (De Oliveira and et.
al., 2013). Mobile techniques also influence in the growth of tourism by
providing bookings, check-ins, messages etc. through the mobile phones which
are in favor of both buyers as well as sellers.
Financial plan :
For opening a new venture a budget has been estimated by the manager of Pan Pacific
Hotel where they have decided to investment prices, which activity will cost how much so that
the arrangement of funds can be done by raising it from different different sources (Sainaghi,
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Phillips & Corti, 2013). These sources can be bank loans, interest etc. below mentioned is the
estimated budget which the Pan Pacific has roadmap in order to start their new venture:
Particulars Amount ($)
Initial investment 500000
Employing technology cost 200000
Labour hiring costs 12000
Training costs 30000
Other expenditures 120000
Promotional cost 60000
Maintenance costs 50000
Total 972000
These above estimated budget will support the business in allocating their cost and estimating the
amount of cost that each and every activity will involves so that the operations performed by the
business can be beneficial for the organisation.
Cash Flow statement :
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Interpretation: From the above mentioned cash flow statement it can be seen that the firm has
their cash and cash equivalents at the end of the financial years were different from years to
years as in the year 2018 it was $ 673,418 which is less than the cash and cash equivalent at the
end of the financial year $813,446 at year 2017.
Business plan
A business plan is a blue print for the business of Pan Pacific Hotel as this provides the
business with the detail analysis about all the market situation about how, why, what and where
the new business of Moving Modular Hotel to be launched. This all entails the business with all
the market situation and finance estimation about how much capital will be required from where
the funds will be arranged and what will be benefits to the business of Pan Pacific with the
launch and establishment of this new venture (Neirotti, Raguseo & Paolucci, 2016). This also
helps the business in improving their chances to get success and growth in the near future.
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DATA Collection:
In this the company of Pan Pacific will focus on the collection of data in order to open
and start their new venture in a successful manner. To collect the accurate data the business will
use different sources of data collection that is primary data collection and secondary data
collection as both these method will enable the business with reliable data that will support them
in establishing the new venture that is Moving Modular Hotels (Fernández-Guerrero, Revuelto-
Taboada & Simón-Moya, 2012).
Primary data : This method of data collection will provide the company with first hand
data which are more reliable and accurate. To collect the data in accurate manner they may focus
on the arrangement of interview with their general stakeholders where they will collect the data
related to the operating of the business. In this interview the major questions in front of the stake
holders will be regarding the success of the brands and its products and services which it renders
to customers (Wentzensen & Wacholder, 2013).
Close ended interview questions that were asked to the Stakeholder were as follow:
1)Is the idea of launching a new venture of Moving modular hotel is
suitable?
Frequency
a) Yes 30
b) No 10
2)How are the hotel market at the moments? Frequency
a) Hotel industry is performing well 35
b) Hotel industry is suffering from loss 5
3)What are the advantages associated with the opening of New venture
to the Pan Pacific hotels?
Frequency
a) Increased profitability 20
b) Expansion in the market share 20
4)Who are the competitor for the new venture? Frequency
a) Tune hotel 30
b) Red planets hotel 10
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5)How the amount of funds will be raised for opening a new venture? Frequency
a) Bank loan 25
b) Bootstrapping 15
6)What are the challenges that will be faced by the Pan pacific while
opening Moving modular Hotel?
Frequency
a) Acquiring talented workforce 20
b) Huge competition 20
7)According to you what are the ways by which company can easily
overcome all the issues associated with opening of New venture?
Frequency
a) Adapting effective recruitment and selection process 17
b) Utilising innovative technology 23
Secondary data : This source of data collection is used by the company to gather the
data which is already in existence so that the company can focus on all the aspect either related
to the business past performance or financial condition. Here the business will focus on the use
of journals so that the data can be extracted easily (Jones & Penaluna, 2013). Here the data will
be gather from the review of the experts and specialists about the employees their performance
so that this can be proven beneficial while establishing the new venture.
DATA INTERPRETATION
Theme 1: Idea of launching a new Business
1)Is the idea of launching a new venture of Moving modular hotel is
suitable?
Frequency
a) Yes 30
b) No 10
10

Interpretation: As per the above mentioned graph it can be analysed that out of 40 respondent
30 respondents believe that idea of launching a new ventures is suitable as it will increase the
business market share and profitability but on the other side 10 respondents feels that opening a
new venture for the business is not suitable as this will lead to the mismanagement of the
organisation.
Theme 2 : Market situation
2)How are the hotel market at the moments? Frequency
a) Hotel industry is performing well 35
b) Hotel industry is suffering from loss 5
11
30
10
a) Yes
b) No
35
5
a) Hotel industry is performing
well
b) Hotel industry is suffering
from loss

Interpretation: From the above mentioned graph out of the 40 respondents only 35 respondents
are satisfied with the business and believe that the business is performing well in the market
place by satisfying their customers according to their demands and needs and rest 5 respondents
feels unsatisfactory with the business performance as the business is not able to analyse their
customers and their demands.
Theme 3: Advantage of starting up of new venture
3)What are the advantages associated with the opening of New venture
to the Pan Pacific hotels?
Frequency
a) Increased profitability 20
b) Expansion in the market share 20
Interpretation: According to the graph which have been mentioned above it can be noticed that
out of 40 respondents 20 respondents believe that opening a new venture will increase the firms
profitability as through the new venture the business will be expand and a customer base will be
strengthen which will lead to increase profitability whereas rest of the 20 respondents feels that
12
20 20 a) Increased profitability
b) Expansion in the market
share

new venture will be advantageous as this will lead the business to increase market share by
expansion of the business larger section of the industry will be covered.
Theme 4: Availability of competitor
4)Who are the competitor for the new venture? Frequency
a) Tune hotel 30
b) Red planets hotel 10
Interpretation: As per the graph it can be inferred that out of 40 respondents 30 respondents are
those who believe that Tune hotel is the top most competitor of the firm as they are operating
business on a large scale with a reputed position in the market but on the another side rest 10
respondents believe that Red planet Hotel is the competitor as they also operates their business
with too much innovation and uniqueness.
Theme 5: Raising of Funds
5)How the amount of funds will be raised for opening a new venture? Frequency
a) Bank loan 25
b) Bootstrapping 15
13
30
10
a) Tune hotel
b) Red planets hotel

Interpretation: From the preceding graph it can be inferred that out of 40 respondents only 25
respondents believe that raising funds from the bank as bank loan will be more suitable as this
will create a burden to pay through which the business will work effectively whereas rest 15
believe that raising funds through personal saving as bootstrapping is much easier as here no
documentation is required and the burden to repay the amount is not their as the funds are raised
through personal saving only.
Theme 6: Challenges faced
6)What are the challenges that will be faced by the Pan pacific while
opening Moving modular Hotel?
Frequency
a) Acquiring talented workforce 20
b) Huge competition 20
14
25
15
a) Bank loan
b) Bootstrapping

Interpretation: From the Graph it can be summarised that a new venture that is Moving
Modular business has to undergo several challenges where out of 40 respondents , 20
respondents believe that the major problem which the company faced is lack of talented
workforce as there are less concentration given by the business to hire the talent and rest of the
20 believe that the company has to deal with the major challenge of huge competition as there
are many firm prevailing in the market who deals in the business of hospitality.
Theme 7: Overcoming the challenges
7)According to you what are the ways by which company can easily
overcome all the issues associated with opening of New venture?
Frequency
a) Adapting effective recruitment and selection process 17
b) Utilising innovative technology 23
15
20 20 a) Acquiring talented
workforce
b) Huge competition

Interpretation: As per the graph shown it can be concluded that out of 40 respondents 17
respondents believes that company can overcome their challenges by adapting recruitment and
selection procedure in a effective ways as through these process a talent will be judge on all the
basis from their mental ability to their physical strength to perform the business operations
whereas rest 23 respondents feels that utilising innovative technology will also help them to
overcome the challenge of huge competition as through the implementation of innovative
technology in the business a firm can operate their operation in a innovative manner which will
help them in dealing with the rivals.
CONCLUSION
From the above mentioned report it can be concluded that preparing a business plan
supports the business in identifying what are their goals and how these goals can be achieved
within a limited time. As the business of Pan Pacific hotel is planning to launch their new
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17
23
a) Adapting effective
recruitment and selection
process
b) Utilising innovative
technology

venture that is Moving modular hotel it is necessary to them to roadmap a path through which
their business can be expand and increase level of profitability and productivity can be earned.
This also supports the business by enabling them in identifying their competitors, financial
conditions, their success and failure.
REFERENCES
Books and Journals
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Hospitality & Tourism Education. 27(1). 20-29.
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Barber, N. A. (2014). Profiling the potential “green” hotel guest: Who are they and what do they
want?. Journal of Hospitality & Tourism Research. 38(3). 361-387.
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through the rendering of a business plan. South African Journal of Economic and
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Bowie, D., Buttle, F., Brookes, M., & Mariussen, A. (2016). Hospitality marketing. Routledge.
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planning capability. Journal of Business Research. 68(6). 1283-1290.
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