Business Plan: Relax Inn Hotel - LSC UoS Entrepreneurship Assignment

This report presents a business plan for "Relax Inn," a new hotel concept within the hospitality industry designed to provide a calm and relaxing environment for customers, addressing the increased stress and mental health issues resulting from the Covid-19 pandemic. The plan outlines the vision, mission, target market, and unique attributes of the hotel, emphasizing its cultural heritage, eco-friendly practices, and focus on customer well-being. It includes a feasibility analysis covering industry attractiveness, market potential using Porter's Five Forces, organizational structure, and financial projections, estimating a startup cost of $16,000,000. The report also details key components of the value chain and business model canvas, highlighting activities, resources, and partnerships essential for creating value and managing potential risks.

Business Plan
Table of Contents

INTRODUCTION...........................................................................................................................1
Main Body.......................................................................................................................................1
New business concept.............................................................................................................1
Industry, Market, Organisational and Financial feasibility....................................................3
The key components of the value chain and business model canvas in relation to proposed
business...................................................................................................................................6
Quantitative and qualitative models and concepts to identify and manage potential risks....8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................10

INTRODUCTION
The business plan tends to comprises of a written document which is describing out the main
and core business activities and objective of a firm along with its planning to achieve the set
goals (Tipu, 2018). The current report is bases on start-up entrepreneur which is outlining a new
business concept within Hospitality industry. It has been analysed and seen that a high level of
reduction in productivity and many new challenges and restrictions are faced within hospitality
industry due to the global pandemic of Covid-19. Thus, current report is based on coming on
with a new business concept of starting up with a new hotel “Relax Inn” that is focusing and
emphasising on providing relaxation and calmness to its customers.
Main Body
New business concept
It has been seen and analsysed that currently the hospitality industry has faced the
maximum negative impact of the global pandemic of Covid-19 in form of reduction in the
productivity level due to sudden lockdown. Further, many new rules and regulations are also get
imposed on the hospitality sector to ensure the safety and health of customers. In such conditions
and due to the spread of global pandemic of Covid-19 many people within UK faced the many
mental and health issues such as anxiety and depression also (Hanák and Grežo, 2020). Along
with this, the mental pressure and stress level in daily life of the people and society has been also
seen as they are not allowed to travel in group and have foreign trips. Thus, a new business
concept and opportunity is being seen within the hospitality industry to come up with a new
business venture and start up that provides best and calm environment in Hotel where consumer
can feel pleasure with heritage and cultural environment. Thus, the current project and business
plan is based on coming up with a new business concept of a hotel, "Relax Inn" that is focusing
on providing best and calm environment for its customer to cope up with the negative impact and
stress faced because of covid-19 (Hopp and et. al., 2018).
Vision of new business concept
The long term Vision set out for the hotel “Relax inn” is to provide best and calm
environment for its customers within a new Hotel designed and based on rich culture and
heritage of London where consumer can feel pleasure and relaxation from there daily life routine
and stress.
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Mission of new business concept
The mission statement and aim of the coming up with new Hotel “Relax Inn” is to
provide variety of services with touch of heritage and culture of London.
Product or service
Relax Inn hotel is opening as new business start up with a main aim of providing a calm
and positive environment for the individuals where they can have relaxation and calmness from
there stress full and busy schedule. Relax inn hotel tend to comprises of the ambiance of heritage
look and culture of London along with lots of greenery and plants along with making use of only
eco-friendly and natural products in the décor and other activities of hotel to ensure the improved
sustainability level (Johnson and Garvin, 2017). Further, the main services and facilitates that are
offered at the Relax inn hotel comprises of facility of dinning, valet parking, free Wi- Fi, Air
cooling, Coffee and tea facility, light music, calm environment, etc. along with the other relaxing
activities such as library, soft music, board games, etc. to fully satisfy its customers.
Target market
The target market for the Relax Inn hotel comprises pf specific type of customers who are
either facing a hectic and stress full daily routine and suffering from depression and anxiety and
wants to have a relax time to have more positivity and calmness in their mind. Further, the Relax
Inn is mainly targeting the tourist and local people who are looking for clam and positive place
with touch of nature and cultural heritage to ensure relaxation and clamminess for better mental
health and high level of satisfaction. Thus, “Relax inn” targeting both youth as well as old
generation people who wants to have a relaxation from there busy and stress full life (DeNoble
and Zoller, 2017).
Special attributes
The special attributes for the Relax Inn hotel comprises of the 24*7 accessibility along
with providing a heritage look and culture of London along with lots of greenery and plants
along with making use of only eco-friendly and natural products that attracts and cater larger
number of customers. Further, maintaining proper sanitization and social distancing norms along
with other provisions and control set out by government after Covod-19 has also been implicated
within Relax Inn hotel to support a healthy and positive environment where customers can feel
relaxed and clam.
Values and scale of the newly proposed business
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The main features and scale that add value to the Relax inn hotel comprises on focusing
on new trends and making sufficient use of improved technology to provide an eco-friendly and
cultural based hotel along with peace and higher calmness level for its customers. Further, the
menu and dishes served at Relax inn hotel is also creating value for this new business concept as
it entirely based on the cultural aspects of London comprises traditional taste along with the
dressing of the chef waiters and other staff which also reflects rich culture of London. Beside
this, the Ambience of the Relax Inn is also different and unique from other hotels emphasis on
culture and natural aspects along with beautiful use of colures and lighting that is creating
improved value and attracting larger number of customers (Masciocchi, 2020).
Location and who will be involved
The location of Relax Inn tends to be suited in London, UK which is easily assessable by
all customers and well connected with airports and other transportation channels. Along with
this, facility of pic and drop has been also introduced by the Relax Inn hotel to lead higher
convince and satisfaction for its customers. Further, having parternership of 4-5 people is seemed
appropriate for launch and start-up of current business plan along with appointment of skilled
chefs and other staff who have good market analysis and understanding. Further, supports from
local people and government is also needed thus the current business is properly registered under
legal laws and regulation along with having proper distribution of work in involved stakeholders
comprising of suppliers, partners, government, local people, staff, customers, etc (Finch, 2019).
Industry, Market, Organisational and Financial feasibility
Feasibility analysis forms out a vital part of coming up within a new business concept as it
helps in analysing the validity and usefulness of a business idea.
Industry feasibility
This part of the feasibility analysis process involves assessing industry attractiveness,
target market attractiveness, and market timeliness to ensure the success and higher growth of
the new business concept. It has been seen and analysed that the global pandemic of Covid-19
has created threat and many challenges for the hospitality industry leading to sudden drop of
productivity and profitability. Thus, coming up with a new concept and idea within Hospitality
industry tend to support better feasibility and opportunity level. Further, it has been also seen that
hospitality industry is quite dynamic in nature thus always support better growth and success for
innovative idea. Further, the hotels within London and other part of UK are mainly stylish and
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fashionable in nature which emphasis more on technology and advancement but there is lack of
something that focus on mental peace and calmness (Katz, 2018). Thus, coming up with Relax
Inn hotel is feasible and suitable on the basis of analysis of hospitality industry.
Market feasibility
To have better understanding about the market feasibility use of the Porters Five Force
model has been made by the Relax Inn a discussion and evaluation of which is provided as
below:
 Threat of new entrants- It reflects about the potentiality of a new firm to place its product
in a new marketplace thus, threat for new entrants is moderate. It has been seen that a
high amount if investment is needed thus, it’s not easy to enter the hotel market.
 Threat of substitute- It comprises of the existing businesses substitute of product or
services which they are offering and have the capacity to attract the customers. A high
level of threat of substitute is being prevailing within the market of Relax inn as many
competitors are there which can provide similar services.
 Bargaining power of suppliers- The power of supplier within the hotel industry is
relatively lower as the hotel businesses have the power over their labour, trained staff,
personnel and the industry holds up huge demand for them (Xu, 2020).
 Bargaining power of buyer- the bargaining power of customers is hotel market of UK is
quite high but Relax Inn in is coming up with a new trend in hotel market focusing of
natural and clam environment thus have an advantage of charging high price over its
services as it is offering larger amount of additional and high-quality services to the
corporate customers which attract them to pay higher.
 Competitor analysis - This force mainly put emphases toward evaluating the competition
present within market from the players that are already operating in the market. A high
level of threat and rival challenges are faced by Relax inn in hotel market as many big
companies such as Holiday inn, Hilton Hotel, etc. are providing rich services to its
customers. But still emphasising on the natural along with heritage and cultural aspects
emphasising on relaxation and calmness of the customers is providing an enhanced
competitive edge and advantage for the Relax Inn hotel that is providing and
highlighting its competitive advantage in target market.
Organisational and Financial feasibility
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The concept and implication of the Organizational feasibility tend to supports and have
emphasis on the analysis which is conducted to determine whether a proposed business has
sufficient management expertise, organizational competence, and resources to successfully
launch its business. It has been seen and analysed that the Relax Inn is having effective
management based on participate leadership style that supports and ensures equality and proper
involvement of all stakeholders to have higher level of creativity and innovation. Further, skilled
chefs, competent mangers and talented staff has been also appointed and available for Relax Inn
(Rose, 2021). Thus, the new Business concept of Relax inn hotel is suitable and completely
organisational feasible. On the other hand, the financial feasibility of a projects is associated and
related with the planning and analysis about the how much start-up capital is needed along with
determining the sources of capital, returns on investment, and other financial considerations. Use
and implication of following budget has been made for Relax Inn hotel to analysis and evaluate
its financial feasibility.
Description Total Amount ($)
Land acquisition 2000000
Construction 10000000
Legal 1000000
Processional service 500000
General Fund 2000000
Furniture, Fixture and equipment 1000000
City contingency 500000
Designing Costs 400000
Service connection and provides 3000000
Professional and expertise cost 1000000
Labour cost 500000
Material cost 2000000
Construction cost 4000000
Plumbing costs 500000
Electricity cost 2000000
Total 16000000
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On the basis of above budget, it has been seen that around 16000000 $ are needed for
business concept of Relax Inn Hotel.
The key components of the value chain and business model canvas in relation to proposed
business
Key components of value chain comprises of the aspects which are vital and essentially
needed within a firm to create value for its customers. The key components of the value chain in
relation to proposed Relax inn hotel are provided as below:
Key activities- the key process and activities forms out a vital aspect of value chain which
comprises of the leading the smooth launch of the new business Relax Inn Hotel. The key
activities and process of Relax Chin comprise of having an innovative marketing activity to
support higher awareness and publicity in the target market. Use of the digital channels along
with online platform has been made to emphasis on the key features of this Hotel aim at
providing a clam and positive environment for its customers. Along with this, conducting regular
market analysis to have understanding about latest market trends is also a key activity of Relax
Inn Hotel (Gassner, 2021). Along with this, offering perfect accommodation and food facility
with a touch of culture and heritage along with feeling of relaxation and calmness are also the
vital aspects and activities of Relax Inn Hotel.
Key sources for value creation and funds management- Key sources for value creation
comprises of making use of advanced technology along with focusing on the natural and eco-
friendly aspects to ensure higher sustainability for business plan. Further, use of angle inverters
along with bank loan would be made as key financial sources for meeting the expenses and cost
of current project.
Highlights for creating competitive advantage for Relax Inn hotel
Value proposition- theses comprises of the aspects and facts that add on the higher value
and attractiveness for the Relax Inn Hotel. Having a 24*7 accessibility along with various
facilitates such as facility of dinning, valet parking, free Wi- Fi, Air cooling, Coffee and tea
facility, light music, calm environment, etc. along with the other relaxing activities such as
library, soft music, board games, etc. to fully satisfy its customers are generating a higher value
preposition for the Relax Inn Hotel (O’Donnell and Dahl-Popolizio, 2018).
Customer Relationship- having a strong and positive customers relationship set out key
aspects of value chain which ensures higher success and growth. All the possible steps
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comprising of setting effective communication and interaction with the customers has been made
by Relax Inn hotel to have string and positive relationship. Along with this, regular feedback has
been also taken from the customers to have regular innovation and modification in services to
meet the satisfaction and expectation level of customers which ensures higher commitment and
loyalty level to supports improved customer relationship (Taifa, 2021).
Business model canvas
It provides a vital and effective way to determine and effectively understanding the
ongoing changes through effectively describing, visualizing and assessing the changing business
models. Further, making use of the Business model canvas also tend to effectively describes the
rationale ways for an organization to effectively create, delivers and captures value within target
market.
Key Partners
 Consumer
 Managers
 Workers
Key Activities
 Marketing
 Selection
of
employees
 Evaluation
of
feedback
 Innovation
in dishes
Value
Propositions
 Affordabl
e prices
 Small
conferenc
e room.
 24*7
accessibili
ty
Customer
Relationship
 Customer
feedback
form
 Use of
social
media
 Commissi
on to
travel
operators
and agents
Customer
Segments
 Corporate
people of
local
surroundin
gs who
wants to
have
relaxation
from there
daily
routine.
 Tourists
who are in
search of
peace and
calmness.
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Key Sources
 Financial
Resource
 Employee
s
 Technical
resource
Channels
 Physical
outlet
Cost Structure
 Fixed
 Variables
Revenue Streams
 Income from dinning facility
 Revenue from hotel and
accommodation facility.
Quantitative and qualitative models and concepts to identify and manage potential risks
The quantitative and qualitative models comprise of effective ways that are used by an
organisation to conduct the market research in order to review and analysis the current market
conditions comprises of identification of potential risk and managing these potential risk.
Qualitative models are mainly descriptive in nature and supports in-depth information while the
quantitative tend to be numerical in form and comprises of use of various business Model.
Implication of PESTEL analysis has been made to have analysis of potential risk for the
new business concept of Relax Inn hotel.
Political- the political environment of UK is highly stable but the recent Brexit
agreement has created high level of instability in political environment of UK which creating
many challenges for Relax Inn Hotel in form of issue in retaining and attracting employees who
are from European countries (Mohammed, 2018).
Economical- UK is having a stable and developing economy but the Covid-19 has
created a slowdown in the economy of UK and also leading reduction in the purchasing power of
customers which is creating challenge for Relax Inn hotel.
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Social- the society of UK is highly dynamic and taste and preference level of customers
keeping on changing thus, it become difficult for Relax Inn Hotel to meet the expectation level
of customers.
Technological- The technological environment of UK is rapidly changing thus,
implementation of advance and ever changing technology has created issues and difficulties for
Relax Inn Hotel (Lao and Wu, 2018).
Environmental- the people of UK are becoming more conservative towards environment
thus, Relax Inn Hotel needs to have use or natural and eco-friendly products only.
Legal- these risk are associated with legal laws and regulation as after covd-19 many
strict rules regarding social distancing and proper sanitization and cleanness of hotel is being
faced by the Relax Inn Hotel
Managing potential risk
To manage the identified risk prevailing within the market of Relax Inn hotel, making use
of STP model is recommended and required to have improved business tactics and strategy
formulation.
STP mode
Segmentation- to ensure meeting of the expectation level of customers it is vital for
Relax Inn to effectively divide its target market into small segment. Making use of
psychographic segmentation is most suitable for Relax Inn Hotel as it supports better bifurcation
of the customers on the basis of their psychological traits that influence consumption habits
drawn from people's lifestyle and preference (Masciocchi, 2020).
Targeting- The Relax inn hotel is targeting tourist and local people who are looking for
clam and positive place with touch of nature and cultural heritage to ensure relaxation and
clamminess for better mental health and high level of satisfaction.
Positioning- the positing strategy of Relax Inn comprises of making use of digital and
online channels to have better promotion and higher awareness about its feature within the target
market to create positive impact on mind of customers which supports better use of technology
to reach target customers (DeNoble and Zoller, 2017).
Along with this, taking regular feedback from the customers to have regular innovation
and modification in services to meet the satisfaction and expectation level of dynamic nature of
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society is also a vital strategy to mitigate identified risk which ensures higher commitment and
loyalty level in customers which lead to higher success for Relax Inn Hotel.
CONCLUSION
On the basis of current report, a conclusion can be made that business tend to comprises of a
collection and set of various activities including effective planning and organising of various
resources in effective manner for generation of higher profit and income. Further, a
summarisation can be made that determining target market supports better formulation of
strategy to meet the expectation level of specific set of customers. Further, a conclusion can be
made that there is various aspect the creates value for a firm comprise of positive customer’s
relationship and effective promotion along with use of business model canvas. Finally, a
summarisation can be made that STP model sports effective tactics and strategy to mitigate
prevailing market risk.
REFERENCES
Books and journal
DeNoble, A.F. and Zoller, T.D., 2017. Is the business plan really dead and should it be?: a case
for the lean start-up approach. In The Great Debates in Entrepreneurship. Emerald
Publishing Limited.
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