Business Capstone Project: Analysis of Heritage Travel Agency Business

This business capstone project analyzes the viability of Heritage Travel Agency, a proposed travel and tourism business in New Zealand. The project focuses on providing tourists with authentic Maori cultural experiences, including accommodations near Maori settlements and various community events. It includes a PESTLE analysis to assess political, economic, socio-cultural, technological, environmental, and legal factors impacting the business. The project explores strategic decisions, ethical issues, cultural considerations, management structure, current technology, a communication plan, and financial analysis, including a budget with a 30% growth rate projection. The assessment also addresses critical and reflective thinking, considering market competition and the importance of securing permissions from relevant bodies. The agency aims to attract tourists, particularly from China and South Korea, interested in Maori culture, offering unique experiences such as canyoning, abseiling, and skiing adventures, while ensuring sustainable practices and engaging local Maori communities. The project emphasizes the importance of ethical considerations, privacy, and community benefits. The project is a comprehensive analysis of a tourism business in New Zealand, focusing on Maori culture.

Running head: BUSINESS CAPSTONE PROJECT
Business Capstone Project
Name of the Student:
Name of the University:
Author’s Note

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BUSINESS CAPSTONE PROJECT
Table of Contents
Introduction................................................................................................................................2
Discussion..................................................................................................................................3
PESTLE ANALYSIS.............................................................................................................3
Critical and Reflective Thinking............................................................................................4
Strategic Decisions.................................................................................................................5
Ethical Issues..........................................................................................................................6
Cultural Issues........................................................................................................................7
Management Structure...........................................................................................................7
Current Technology...............................................................................................................9
Communication Plan..............................................................................................................9
Financial Analysis................................................................................................................10
Reference..................................................................................................................................13

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BUSINESS CAPSTONE PROJECT
Introduction
The main purpose of the assessment is to analyze the viability of a business which
would be focusing on travel and tourism business. The name of the business would be
Heritage Travel Agency. The business would be setting up an operations which would enable
the Tourists to enjoy Maori Culture while their travel to New Zealand. The new business
which is being established would be operating a tour operator in New Zealand and would be
looking after the tourism requirements of the business. The main focus of the business is to
ensure that the tourists get an authentic experience of the Maori Culture while staying in the
community of the Maori People. The business would be facilitating different event in the
community itself such as art programs, landscape tours from Maori Perspective and also
organize dance programs so that the tourists get some insights on the lifestyle of the people.
The tourism industry has significantly grown over the years and this is the main reason that
more and more businesses are coming up in the tourism sector. The assessment would also be
including estimation of a budget for the business considering a of growth rate of at least 30%
for revenue and profits of the business. The budget would be then considered as the basis on
which decisions are to be taken by the management of entity considering the activities of the
business. The operations of the company would be focusing on Maori lifestyle which is
unique and therefore to provide full exposure to the tourists would be setting up
accommodations near Maori settlements. The tourists in this manner can relate to the culture
and also explore the landscapes of New Zealand.
The Maori Tourism Industry provides significantly to the total revenue which is
generated by the country from Tourism. The management of Heritage Travel Agency
organize a separate tour for tourist who wants to experience Maori Culture. This package
would further attract more customers to the business and thereby lead to expansion of the
business revenue. A majority of Tourist from China and South Korea are interest in vising
such sites which are rich in Maori Culture. The Maori culture experience would be attracting
more and more tourist as such people have a unique way of living and has an approach which
can teach people how to follow sustainable approach. The business would be engaging the
local people so that proper interactions cam take place and some hospitality can be shown
towards the people visiting their home.

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.
The assessment would be showing external analysis of the market so as to identify the
factors which affects the operations of the business significantly, In addition to this, the
assessment would be showing strategic decisions of the business and how the business would
work with the local Maori people to create a unique experience of the tourists. The
assessment would be containing a communication plan as well so that the effective
communication can be undertaken with the local community o that the benefits of the
business can be explained properly to the locals.
Discussion
PESTLE ANALYSIS
 Political Factors: The political factors are key factors which affects the business
operations of tourism industry. The rules and regulations which are applicable on the
country can affect the operation of the new business (Dockalikova and Klozikova
2014). New Zealand has its special allowances for the Maori people so that they can
equally develop with the rest of the society while at the same time retaining their
lifestyle. The tourism business needs to considers such aspects while framing the
policies of the business.
 Economic Factors: The economic factors which can affect the business of tourism
industry are finance requirements, interest rates and exchange rate of currency. The
main customers of the company are tourists who are basically from foreign countries

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and therefore any fluctuation of currency exchange rates can impact the tourism
overall and thereby affecting the operations of the entity (Mkude and Wimmer 2015).
The prices for the tour is also dependent on different economic factors which are
present in the country and if prices are too high than lot of tourists might not be
attracted.
 Socio-Cultural Factors: The socio-cultural factors of the country consist of changes
in the taste and preference patterns of the tourists and even changes in the decisions of
Maori community can impact the operations of the business (Song, Sun and Jin 2017).
This needs to be considered by the management of the company before commencing
the operations of the business.
 Technological Factors: The technological factors also can affect the operations of the
business as the tourists would be expecting once in a life time experience and
therefore wherever possible the management should aim to provide best experience to
the people. These small aspects can create a competitive edge for the business in the
market and enhance the revenue generated by the business. Further can save time in
the operations of the business.
 Environmental Factors: The business is not much affected by these factors, however
it is expected of the business to contribute to the preservation and development of
environment and prevent activities such as waste generation which can affect the
environment. The areas of Maori community is considered to be a cultural area and
the same should not be polluted in any manner. The management of the tour operating
business must ensure that the tourists are also made aware of their responsibilities.
 Legal Factors: This refers to the rules and regulations which are applicable to the
business of tour operating agencies and will also be including tax policies and other
laws which are applicable to the business. In addition to this, Maori Culture related
laws are also established which needs to be adhered to while engaging in day to day
activities of the business. Any violation can attract penalty which needs to be
considered by the business while framing the policies of the business.
Critical and Reflective Thinking
In recent years the tourism industry in New Zealand has achieved significant growth
which has caused a number of tourism businesses being established all over the regions. The
management of the company also must survey the strengths and weaknesses of the

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competitors who are entering the market. The growth rate in the population is a big factor
which affects the operations of the tourism industry. As the population grows more
residential area is required and in a way population growth also affects the natural resources
of the country which are an important element for the tourism businesses.
The business proposal is appropriate and can be effective in meeting the demand of
the tourist but it is also likely that the business would be facing certain problems. The first
major problem which the company would be facing is acquiring permission from the
regulating bodies for setting up accommodations of tourists in the Maori Community. The
government is very strict on preservation of the culture and acquiring permission would not
be an easy process. The main idea of the business proposal revolves around the option of
providing the tourist firsthand experience of the culture. This is the aspect which
differentiates the operations of the business from other tour agencies. Another major problem
which the business proposal would be facing is access to appropriate funds so that proper
packages can be planned including all the aspects for the tourists. In addition to this, the
business also needs to convince the Maori people regarding the benefits which such activities
on their community at large. This would be a tough process for the business as their privacy
would be affected and such permissions may not be given by the elders.
In order to management the issues which are identified above, proper steps needs to
be taken. The business needs to convince the higher officials that the program would benefit
the country with increase in tourism and proper assurance should also be provided that no
harm would come to the community. The business can obtain loan from banks by presenting
a proper viability projections of the proposal. The management also needs to present to the
Maori people a proper communication plan showing the benefits of the proposal to their
community at large and proper assurance also needs to be provided that their privacy would
not be affected.
Strategic Decisions
The business of Tourism is rapidly increasing in New Zealand as more and more
tourist is choosing the place a potential tourist destination and in addition to this, the domestic
tourism of the country has also increased significantly. As per the NZ statistics, the
contribution of the tourism industry to the overall revenue in 2018 was around $ 39.1 billion
(Hendrikx et al., 2013). The total tourism rate showed an increase of 7.7% which is 2.5%
more than the previous year which shows significant improvement for the business (Wilks,

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Stephen & Moore, 2013). The business can take advantage of such an aspect and offer
packages which can effectively meet the demand of the tourists and provide them with unique
experience. The business idea of setting up accommodations for the tourists in the Maori
community would itself attract more tourists for the sake of unique experience which can be
acquired. The business can also further make the package for the tourists more attractive by
adding more amenities.
The management of the company aims to incorporate three major attractions for the
business in the tour packages which are Canyoning Adventure, Abseiling Experiences and
Skiing Adventures. The business needs to formulate strategic plans for the purpose of
expanding the operations of the business and thereby contributing to the total revenue which
is generated by the business. The management of the company would be introducing new
trainers for conducting more canyon trips which would enhance the revenue of the business
and the business would be able to serve more customers. One of the strategies which the
management of the company can adopt is the technique of benchmarking which all the
business to analyse the competitors of the business and implement positive reforms which are
brought about by them. The business would also be following sustainable approach as the
main people involved in the operations are the Maori people. The business aims to organize
local dance performances by the people and a tour on how art, culture and other details are
carried out by the Maori people. These practices would definitely attract more customers to
the business and thereby enhance the operations of the business in an effective manner.
Ethical Issues
The business needs to consider all the factors which can influence the locals of the
Maori and also the tourists and formulate a proper balance between the same so that
appropriate results can be obtained. The business must also consider the privacy and day to
day lifestyle of the locals and whether the same would be hindered with the tourists visiting
the place. There is an ethical requirement for the management of the company to ensure that
the locals are not duped in any manner and no harm comes to the properties of the people.
The management would also be responsible for looking after the tourists and also ensuring
that they do not pollute or harm the local habitat of the community in any manner.
The most appropriate practice which can be initiated by the management is to appoint
respective tour guides to look after the needs of the tourists and also ensure that they do not

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affect the life culture of the Maori people in any manner. The tour needs to be properly
planned so that no miscommunication take places and the tourists are able to enjoy
themselves as well. It is the ethical responsibility of the management of the company to
formulate strategies which can look after the needs of the hosts and ensure that their privacy
are not violated in any manner. The senior officials of the business also needs to conduct
inspections for site restorations if the same is required in any manner after the tourists have
left. The business also needs to plan the tours and ensure that the same are timely done with
provisions for breaks of months so that the Maori People can also get their normal life back.
These practices would ensure that the business is able to adhere to ethical requirements of the
business considering the Maori Culture.
Cultural Issues
New Zealand is a place where a diversity of culture exists and all the same contribute
to the tourism business in a way. In many cases, tourists such as group of students and even
travelers visit New Zealand due to the rich culture it occupies and also due to the Maori
Culture which is present in New Zealand. The tourists are often attracted to the rich culture
which is present in the country and simply want to have experience for the same. It is to be
noted that a lot of different culture of people reside in the county and therefore proper
policies needs to be formulated so that people are less affected and the tourism business
adhere to their beliefs and customs. There is a definite language barrier and this is can cause
difficult in communication and interactions of the Maori people with the tourists. For an
authentic experience such aspects are required. In addition to this, there is an issue with the
appearances which might not be preferred by many tourists. There are also issues that people
in Maori culture are secluded and therefore does not appreciate company which can be an
issue for the business to provide value to the tourists. The management of the company needs
to recognize such issues and thereby formulate counter measures so that such issues can be
tackled in an effective manner. The management of the company needs to appoint a local
translator so that effective communication can take place between the visitors and the local
people. In case such practice is not implemented than the tourists would not be able to enjoy
the dance forms and art culture of the community. The business needs to set specific time
when the tourist can meet the people and explore the culture. This is done so that the privacy
of the Maori people is well maintained. The management needs to take some elders of the
community into confidence so that proper order can be maintained when the tourist are
visiting the community.

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BUSINESS CAPSTONE PROJECT
Management Structure
The organizational structure of the business should be formulated in such a manner
that it can effective support the goals of the organization and meet the objectives of the
business. The management needs to opt for organizational structure on the basis of the Job.
The organizational structure of the business which needs to be followed by the management
of the company is shown below:
The organizational structure which is presented above is a mere presentation of the
business structure which the company would be following. The above chart shows the
organizational structure which the management of the company needs to follow so that
appropriate decisions can be taken regarding the business. The organizational structure is
appropriate as the president is only entitled to take decisions regarding the operations of the
business and there are several departmental heads who are looking after their own operations
so that the business can function appropriately. This organizational structure would facilitate
effective operations and would help the business to work jointly in a synchronize manner.
The main stakeholders for the company would be the government, tourists and the
Maori people as such are the groups who would be mostly affected by the operational process
of the business. The responsibility of the business towards the Maori people is immense and
therefore proper structure needs to be followed so that their needs and objectives can be
fulfilled in an efficient manner. The Maori people would be expecting some compensation for

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their role in the business success and at the same would not want their habitat to be hampered
in any manner. The senior officials of the business needs to collaborate with the locals so that
proper service is provided to the tourists.
The tourists are the next important stakeholders of the business as they would be
expecting value for their money and hoping for an authentic experience. The business needs
to take every efforts to meet the expectations of the tourists as this is the only way to make
the tourists happy and satisfied and further enhance the operations of the business. The next
group of stakeholders which would be affected are the government as they are looking for the
revenue which is generated from tourisms. The government provides relaxations and tax
advantages for the development and preservation of such culture and therefore would be
expecting some productive returns. The management of the company needs to appropriately
set up and group up all departmental personnel so that appropriately manage the operations of
the business. The functional organizational structure can help the management to appropriate
plan for the structure of the business.
Current Technology
The Maori tourism is significantly growing in the region and therefore the
management of the company needs to formulate appropriate strategies so that the
management can include such tours in the packages which is provided by the management
(NZ Herald., 2019). The Maori world view is a holistic view where physical and spiritual
dimensions form an integral, indivisible entity. Everything possesses mauri, an active life
principle.
The level of technology is much used in the culture however changes are coming with
the development of society. The management of the company can incorporate strategies for
ensuring that the tourists can book tickets and tour packages online through e-commerce
settings of the business. The business can also provide certain facilities of modern nature in
the accommodations of the tourists so that their experience can be made more pleasant.
However, it can be anticipated that changes would take place in technological level in such
cultures even and therefore the management of the company needs to be ready to pounce on
the chance and ensure effective changes are made in the organizational culture in an effective
manner.

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Communication Plan
The business needs to appropriately communicate with the local people regarding the
policies and practices of the business and ensure that proper strategies are in place so that the
local people can understand. The business would be requiring translation services so that
there is no situation of language barrier. The communication plan needs to be effectively and
should appropriately layout the pros and cons of the business concept before the people so
that the business elders can take appropriate decisions in this respect. The communication
plan needs to encourage the locals to under the operations and work in collaboration with the
business so that maximum benefits can be achieved. The business can use the form of a
presentation which would be addressed by a local translator so that the aspects of the plan can
be laid out properly. The business would also be collecting feedbacks from the people so that
appropriate decisions can be taken considering their decisions.
Financial Analysis
202
0
202
1
202
2
Sales
International
tours
Canyon trips
19120
0
2161
40
28098
2
Abseiling 85990
5601
0 72813
Skiiing 31150
2218
0 28834
Others 9980 7860 10218
3183
20
30219
0 392847
Maori Culture
Accomodations 75020
8603
0
11183
9
Art 20250
1526
0 19838
Dance Functions 30000
3700
0 48100
Others 1600 1300 1690
1268
70
13959
0 181467
Speciality tours
Canyon trips 15010
1701
0 22113

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BUSINESS CAPSTONE PROJECT
Art and Dance 2200 1700 2210
Skiiing 55980
6399
0 83187
Others 2100 2900 3770
7529
0 85600 111280
Other income
Meals - prepackaged 8000
1100
0 14300
Sightseeing tours 2500 2800 3640
1050
0 13800 17940
Total Sales 5309
80
54118
0 703534
Direct Costs
Transport
Canyon trips 46860
5296
0 68848
Abseiling 3310 3710 4823
Skiiing 9620
1122
0 14586
Others 5600 5600 7280
6539
0 73490 95537
Commisions
Canyon trips 2300 2180 2834
Abseiling 730 780 1014
Skiiing 1250 1625
2112.
5
Others 500 560 728
4780 5145 6688.5
Wages
Canyon trips 83000
9600
0
12000
0
Abseiling 46000
4800
0 60000
Skiiing 60000
6200
0 77500
Others 2000 1000 1250
Admin 22000 2200 27500