BUS 101: Business Plan for Hyatt Hotel - Year 2018

This business plan outlines a comprehensive strategy for a global Hyatt Hotel, detailing its vision, mission, and objectives. The plan covers various aspects, including product and service offerings, legal requirements, competitive analysis, and marketing strategies. It addresses human resources, financial analysis, and operational requirements, such as costs and labor productivity. The report includes plans for product testing, upgrades, and expansion, emphasizing the hotel's commitment to high-quality services and global market access. Furthermore, the plan highlights barriers to entry, marketing and sales strategies, and human resource management, providing a detailed overview of the hotel's operations and future prospects. The plan also includes legal aspects such as insurance and licenses and also includes an executive summary, vision, mission, objectives, product or service, legal requirements, competition, marketing and sales strategy, human resources, financial analysis, and conclusion with references.

Business plan
Principles of business
BUS 101
Year 2018
Contents

Executive summary: 3
Vision, mission, statement and objectives: 4
Product or service: 5
Legal requirements: 5
Competition: 6
Marketing and sales strategy: 7
Human Resources: 8
Financial Analysis: 9
Conclusion: 12
References: 12
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Executive summary:
Hyatt hotel will be a global business that has many branches all over the world. The
hotel offer its customers with modern and luxury services. The business‘s vision is to is
to provide its customers with the most significant services, to help the economy thrive
through competition with other hotels in the society and the globe. The mission is to
make every customer feel relaxed and enjoyable. The business sets number of
objectives. They include offering high quality services, achieving the highest profits
among competitors, and achieve quick access to global market. The business gives an
opportunity to people all over the world to enjoy the business‘s services through
different branches, online shopping, and distributors of the business products.
The hotel intends to make contracts with suppliers in different countries to provide the
company with required materials. The business make plans to test the product to
ensure it works as planned through inviting several models and express their views
concerning the quality level. The business has plans concerning upgrading product or
expands product line. The plans include the opening new branches in various areas of
the world. Moreover, the branches will use several insurances. For example, the
company will use business interruption assurance.
In fact, hotel industry is one of the promising industries in the world. With the growing
number of population in the world, more consumers tend to use hotels. In this respect,
the business determines the target customers of it. They include family members,
tourists and businessmen. Moreover, the business expects several barriers to its entry in
markets. One of the barriers is funds of the business. Huge business like Hyatt hotels will
cost a lot of money. The business identifies its competitors. They are all global brands
that attract customers‘ attention all over the world because of the creativity of their
designs. In addition, the company designs several methods of advertisement to attract
customers to the services. They are variables such as TV advertisement, online
advertisement, and magazine advertisement.
Vision, mission, statement and objectives:
Vision:
Our stores ‘vision is to provide customers with the most interesting services with
variable dimensions, to help the economy thrive through competition with other
companies in the society and the globe. This vision focuses on three important
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components. They are the customer, economy, and society. The company tries to
precise through using a few words to express the hotel’ vision. The vision is ambitious. It
reveals that the company will not be restricted to one society. However, the stores will
try to display its products in global markets.
Mission:
The stories’ mission is to “make every customer look relaxed through our services”. The
stores’ mission goes in line with the company’s vision. The mission statement
concentrates on customers, as they are the target of the hotel. This assures that the
hotel observes what is new in the global market in order to create more brilliant
services.
Objectives:
Hyatt hotel puts several objectives that it seeks to achieve in the short and long-term.
These objectives convey an ambitious plan that the company aims to achieve. The
objectives are related to the vision, a mission statement of the business. The following
points summarize the business’s objectives:To offer high quality products
1-To offer high-quality products
2-To be ranked number one in the industry
3-To achieve the highest profits and revenues in the next 5 years.
4-To create new services in the market
5-To attract customers from all over the world
6-To achieve access to global markets
7-To extend its existence to cover the globe
8-To be a famous brand that people are eager to see the company’s products
9-To exceed its competitors in the industry.
Product or service:
The hotel has 542 diverse and unique guest Rooms and suites. Majority of the guest
Rooms command views of beautiful places. All luxurious accommodation combines the
subtle ambiance of a contemporary residence, enriched seamlessly by the latest
business and entertainment technology.
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It provides the luxurious lounge exclusively for suite and club floor guests. It is a perfect
place to unwind the busy day with a sumptuous menu throughout the day.
Plans to test the product to make sure it works as planned and is sufficiently durable,
rugged, secure etc:.
There are several plans using consumer test product:
First, Hyatt hotels will make a magazine in which it advertises its products. The stores
will ask consumers what product you admire most and what product you do not admire.
Second, the stores will post a questionnaire on its Facebook page about its product. The
questionnaire will include several pictures of the products and will ask customers “if you
are in the Hyatt hotel, which service you prefer?” The business will make statistics of the
product and will revise which products they achieve adequate selling rates and products
that achieve low rates.
Describe plans to upgrade the product or expand product line:
First, the business will analyze the customer data. The areas where the company sell
well will witness the opening of new branches. Second, the business will enter new
markets. Third, the company will try new distribution channels. The business will make
deals with some distributors.
Legal requirements:
Insurance:
First, the stores will buy a general liability insurance policy to avoid the costs of legal
expenses. The stores also will use a commercial property insurance to protect itself from
fires and natural disasters. In addition, the branches will adopt business interruption
insurance because the hotel industry is known for being seasonal. Therefore, this
provides with protection when equipment becomes unusable. Moreover, the stores will
use theft insurance.
Licenses:
The business will fill an application for a license. The corporation will try to get a
fictitious name license to get name certificate. The corporation will try to get licenses
from the local authorities. The business will apply for an Employer Identification
Number to inform about profits and pay taxes.
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Contracts:
The corporation will make a contract with materials suppliers and distributors of the
business.
Competition:
Barriers to entry:
Huge funds needed to be spent to open more branches of Hyatt. Hyatt wants to be one
of the largest stores in the industry. In order to achieve this goal, a lot of money is
needed to establish the branches. In addition, money is essential for getting the
required facilities. Moreover, the business needs money to hire CEO, designers, and
employees. Such a big project need huge advertisements to thrive among strong
competitors. In addition, the business needs money to assign experts of online shopping
to put plans of online marketing. The company require funds for making deals with raw
material suppliers and to establish deals with companies that will provide the stores
with insurance.
Moreover, one of the barriers to entry is the existence of many international brands in
the market. Those international brands have good reputation that makes customers buy
from them instead of new brand that they do not try. Also, the other competitors know
the hotels market well and have experience in how to attract customers to their
products. Also, the existence of new store among well-known stores will face the barrier
of the people’s ignorance of the quality of the products that the store offer. People
prefer to buy from stores that they know it offers high products more than stores that
they have never dealt with. In addition, the other brand knows how to beat competitors
by several techniques and strategies they use, while new stores have not the adequate
experience that enables them to exceed their competitors.
The tariffs that some countries obligate business to pay before the establishment of
business can be one of the barriers to entry. The business has to pay the tariffs and the
taxes in addition to the establishment costs. Some businesses may not find fund for all
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these procedures. Therefore, they resort to delaying the establishment of the business
until they find adequate funds. In addition, the routine and the procedures of
establishment of funds may also be an obstacle to entry. Some countries put very
complicated procedures for getting permission for the business establishment. These
procedures may take a lot of time. This may hinder the establishment of business and
make it very hard to start a business. Also, one of the barriers of entry is the ignorance
of the culture of the people of the country where the business intend to open stores
there. Some business does not have enough information on what the people prefer to
wear in the country. Therefore, they take a lot of time in studying the preference of the
people and what kind of advertisement that can attract them. In addition, the business
may find difficulties in online entry. The business may not find the advertisement of
products is very costly. Therefore, the lack of funds may hinder the entry.
Marketing and sales strategy:
Advertising, pricing:
The stores will follow creative plan in advertising. Several posters will be on high roads.
After some time, the branches will display advertisement on TV in which it asks people
to try the luxury services. The stores will begin to publish online its services on social
websites like Facebook and Twitter. The stores will make advertisement on famous
magazines that individuals that are interested in hotels often read.
The stores will offer reasonable prices that can get the company revenues and be
acceptable to the customer. The stores will not exaggerate in the prices. The stores at
the beginning will follow a creative pricing plan to introduce its products and services.
Many studies argue that customers tend to buy the most expensive products because
they think that expensiveness equals high quality products. Therefore, in order to make
customers buy the products of the stores, the stores will raise the prices of the products
to attract customers to these products. However, the stores will not exaggerate in the
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raising of prices to not to lead customers to buy from other places. The stores will
accept and payment via major credit and debit credit.
Production operating requirement:
Costs: The cost of the raw material will not be costly because the company will make
deals with professional suppliers to provide the business with raw material. Therefore,
the raw material will not be costly.
Equipment: the business will get the most modern equipment and tools to produce high
quality products.
Labor productivity: the business will increase labor productivity in some seasons when
there is a trend of purchasing among customers such as at the beginning of winter and
summer.
Human Resources:
Requirement skills:
There will be criteria of hiring CEO, employees, and designers. CEO must have
experience in management of stores and big business. Also, the CEO must be aware of
the industry and the market. Employees must be professional and have the skills of
dealing with customers. The employees must have love for working in hotels. The staff
must be creative and hard-working.
Staff development:
Several courses will be given to staff in order to deal with customers in a professional
way. They will be taught bargaining skills and how to manage in hotels market.
Effective rewards:
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The employees and designers who prove their creativity and success in work will be
rewarded to encourage them to do more work. In addition, several prizes will be given
to hard-working employees. The stores will establish a competition between employees
to choose the best employee. Several promotions and bonuses will be given to the best
employees.
Motivation for workers:
Workers will be encouraged to work hard to get high salaries.
1- Innovation / R&D/ Creativity
Investment in process and product improvement
Product development can be through several steps. First, opening new stores in more
countries. This can expand the business operation and profits. Second, creating more
design and luxury. This can attract the customer’s attention to the products of the
stores. Third, implementing the technology in the production process can lead to
product development. This can be achieved through using equipment that depends on
technology in the production process. This can help the business in reducing the number
of workers thereby reducing costs of production. This also can create more high quality
products. in addition, product improvement can be achieved through hiring more
experts in hotels market. They can provide the business with ideas that can contribute
to product development. Furthermore, offering new services will attract the customers’
attention to the stores and make customers eager to see every product that the
company introduces.
Financial Analysis:
Building, equipment and furniture
Fixed Wages 9000000 SR
Depreciation 187790400 SR
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Total fixed cost 196790400 SR
Water, fuel, electricity and food
Variable cost 154100000 SR
Total cost 187790400 SR
Total fixed cost 196790400 SR
Gross income
Gross profit 1785109600 SR
Loan Interests 240000000 SR
Income/profit (before tax) 1545109600 SR
Tax (25%) 386277400 SR
Net income
Income (before tax) 1158832200 SR
Cash flow 1346622600 SR
Payback period 4 years
Return On Investment 21,5 %
Total investment project 5389317000 SR
Conclusion:
Hyatt hotel will offer the best services to its customers. The company aims to be ranked
as one of the largest hotels all over the world. In order to achieve this goal, the business
puts a business plan in which it included the above parts in order to achieve the
required level of success.
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pg. 11

References:
https://about.hyatt.com/en.html
Eric S. Siegel, Brian R. Ford, Jay M. Bornstein (1993), 'The Ernst & Young Business Plan
Guide' (New York: John Wiley and Sons) ISBN 0-471-57826-6.
Holloway, S. S.; Parmigiani, A. (2014). "Friends and Profits Don't Mix: The Performance
Implications of Repeated Partnerships". Academy of Management
Journal. 59 (2): 460. doi:10.5465/amj.2013.0581.
Leigh, J. (2011). Economic Burden of Occupational Injury and Illness in the United States.
Milbank Quarterly, 89(4), 728-772. DOI: 10.1111/j.1468-0009.2011.00648.x.
Rowe, Kelly P. (2007). OSHA and small businesses: A winning combination: When small
businesses tap into OSHA's many resources, everyone benefits. Occupational
Hazards, 69(3), 33.
Vikramaditya S. Khanna. "The Economic History of the Corporate Form in Ancient
India" (PDF). Archived from the original (PDF) on 2013-10-19.
Appendices:
Building, equipment and furniture
Fixed Wages 9000000 SR
Depreciation 187790400 SR
Total fixed cost 196790400 SR
Water, fuel, electricity and food
Variable cost 154100000 SR
Total cost 187790400 SR
Total fixed cost 196790400 SR
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