DB745 Business Capstone: Wai Ora Adventure Ltd Project Analysis

This business capstone project provides an in-depth analysis of Wai Ora Adventure Ltd, a tourism company in New Zealand, focusing on identifying growth opportunities and strategies for enhancing its presence in the Maori tourism sector. The project assesses the company's current business operations, particularly its canyoning adventures, abseiling experiences, and skiing adventures, and proposes expansions into areas such as jet boating and mountain cycling. It examines the influence of population growth, geographical location, ethnicity, and visitor numbers on the tourism industry in New Zealand. Furthermore, the project explores how Wai Ora Adventures Ltd can leverage Maori culture to attract more tourists by organizing trips to historical sites and providing immersive cultural experiences. The analysis includes strategic management decisions, marketing plans, budget considerations, and organizational culture, culminating in actionable recommendations for Wai Ora Adventures Ltd to achieve sustainable growth and profitability. Desklib provides access to similar solved assignments and past papers.

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........................................................................................................................................2
Task 2...............................................................................................................................................2
Three Areas of Growth................................................................................................................2
Two Areas for Growth for Maori Tourism..................................................................................7
Survey Questions.........................................................................................................................9
Task 3:...........................................................................................................................................12
Strategic Management...............................................................................................................12
Strategic Management Decisions in New Area.............................................................................15
Marketing Plan...........................................................................................................................17
Purpose of the Plan:...................................................................................................................17
Purpose of Target Market and marketing segment:...................................................................18
Market Segmentation:................................................................................................................19
Analysis of Next Year Budget and Organizational Chart.........................................................22
Two Models of Organizational Culture.....................................................................................26
Analyse Maori Tourism Market................................................................................................26
Conclusion.....................................................................................................................................27
Reference.......................................................................................................................................28

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BUSINESS CAPSTONE PROJECT
Introduction
The main purpose of the assessment is to analyse se the business of Wai Ora Adventure
ltd which is engaged in tourism industry in New Zealand. The company is known for the
adventure sports services which is provided to the clients. The tourism market is on the rise in
New Zealand. The management of the company needs to appropriately assess the market
conditions and take decisions accordingly what activities need more focus for the management of
the company. The assessment would be discussing growth areas of the business. The assessment
would also be showing how Wai Ore Adventures ltd can be a leading player in the Maori
Tourism Industry.
Discussion
Task 2
Three Areas of Growth
The business of Wai Ora Adventures is recently opened in New Zealand which provides
the tourists with a place where they can enjoy different types of adventures sports and along with
other facilities. The business provides safe experience to the customers for all kinds of outdoor
sports to build self-esteem, confidence, leadership skills and the ability to work as part of a team.
The growth in tourism industry has been significant since last decade. The overall revenue which
is generated in 2018 was around $ 39.1 billion and the same has effectively contributed to the
total revenue which is generated by the economy as a whole. 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 (Tourismnewzealand.com., 2019). New Zealand is ranked as one
of the leading countries who facilitates adventure tourism for the tourists and it is also considered

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BUSINESS CAPSTONE PROJECT
to be the most sustainable form of tourism in the market. The government has a major role to
play in the development of tourism business in New Zealand and therefore meet the needs and
expectations of the tourist who are visiting the country.
In the case of Wai Ore Adventures ltd, there are certain areas of growth which the
management of the company needs to consider for making further improvement in the business
structure. The overall tourism industry in the New Zealand Economy is flourishing and the
management of Wai Ora Adventures can take advantage of such a situation and thereby enhance
the sales and profitability of the business (Wilks, Stephen & Moore, 2013). The analysis of the
business conditions of Wai Ora Ltd for the year 2018 shows that the three major attractions for
the business are Canyoning Adventure, Abseiling Experiences and Skiing Adventures. The
financial information which is available for the business reveals that the management of the
company is able to generate maximum revenue from adventures trips on Canyons. The business
provides both half and full Canyon trips which are guided by professionals and the same also
includes provisions for refreshments along the way. There are significant areas where the
management of the company can focus and further expand the operations of the business. Some
of the areas which the management of the company needs to consider are listed below in details:
 Canyon Trips: One of the major areas where the management of Wai Ora ltd can
capitalise further is canyon trips which is provided by the business. As per the case study
which is provided, it is clear that the business is doing extremely well in terms of canyon
trips as maximum of the revenue of the business is generated from such a source. It is
seen that adventure sports area can be further expanded by including some sports such as
Bungee Jumping which can be included in the trip. As per estimates, there are 34.8% of
international tourists who are attracted every year to the culture and adventure sporting

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BUSINESS CAPSTONE PROJECT
environment of New Zealand. In addition to this the tourist always enjoy water sports
which forms a part of the canyon trips. The management of Wai Ora ltd can take
necessary steps for expanding the operations relating to canyon activities. This is to be
done so that the business is able to generate maximum revenue from such a source. The
management can enhance the promotion of such activities or even offer special coupons
discounts for such packages.
 Jet Boating Activities: Another major activity which can be introduced by the business is
jet boating. It has been noticed that most of tourist prefer jet boating sports as this
provides thrills to the tourists. The management of the company can offer different types
of boating experience to the tourist such as rapid jet boating, Huka falls Jet, Wilderness
jet. The jet boating activities further provide an appropriate scope as there are different
sites in New Zealand which is apt for Jet Boating Activities. The implementation of such
a practice would help the management to enhance the revenue which is generated by the
business and make the business more profitable in nature. Therefore, it can be said that
jet boating is an area which the management of a company must consider as an area for
development for ensuring the growth of overall business.
 Mountain Cycling: Cycling in the mountains is also considered to be a good adventure
activity. It is noted that most of the tourists like to do cycling activities as this allows
them to witness nature and also travel. It is estimated by Tourism New Zealand 2017 that
around 138,000 tourists engaged in cycling activities which also included off road
cycling activities. The cycling activities which is along the road is preferred by middle
aged tourists as these are much easier and it is also a form of work out for them. The
management of Wai Ora ltd can organize cycling activities and even cycle races for the

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BUSINESS CAPSTONE PROJECT
tourists which would definitely be generating revenue for the business. Therefore, the
management of the company needs to take appropriate steps so that Mountain Cycling
Activities is included in the list of Adventure sports activities which is offered by the
business.
Other Considerations for the Business
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 competitors
who are entering the market. In addition to this, there are also other considerations which can
affect the tourism business and the same are discussed below:
Population Growth: 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. A graph which is presented below shows the
growth rate of tourism in New Zealand and makes comparison from previous years.

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BUSINESS CAPSTONE PROJECT
Figure 1: Graph Showing Population growth of New Zealand
Source: (Worldometers.info. 2019)
The above graph effectively shows that the growth in population in the country has been
significant and therefore the same can affect the tourism business in New Zealand.
Geographical Location: New Zealand is a land of great contrasts and diversity. Active
volcanoes, spectacular caves, deep glacier lakes, verdant valleys, dazzling fjords, long sandy
beaches, and the spectacular snow-capped peaks of the Southern Alps. The country has niche of
rich habitat and is a brilliant place for a calm holiday away from work. This is a reason why the
country is becoming a major tourist attraction. These factors can be capitalized by the tourism
businesses and also by Wai Ora Ltd and thereby attract more tourist to the business. New
Zealand also has a unique array of vegetation and animal life ranging from flightless Kiwis to
other animals. The diversity and culture of New Zealand is appropriate to attract more tourist on
year to year basis. Therefore, there is an opportunity for businesses to expand the operations and
thereby earn more revenues.

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BUSINESS CAPSTONE PROJECT
Ethnicity: New Zealand us 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
travellers 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. Therefore, it can be said
that businesses are able to generate revenues in excess and thereby attain growth.
Number of Visitors: The number of visitors has enhanced significantly that are visiting the
country and a bulk of such tourists are Australian. By encouraging more visitors to areas like the
West Coast, the tourism board of New Zealand contributing to a multi-agency effort to help
regional growth. These activities have resulted in enhancement of air travel in the country and
thereby the number of visitors who are visiting the country have enhanced significantly.
Therefore, these also play a vital role in the revenue generation of a tourism business and
therefore the management of Wai Ora Ltd needs to considers such factors as well before
formulating any strategies for expansion of the business.
Two Areas for Growth for Maori Tourism
The tourism in New Zealand is heavily supported by its rich culture and ethnic tribes
which also contribute to the culture of the country. There has been significant growth in the
Tourism Industry in New Zealand which is due to numerous factors but most important is the
Maori Culture which has attracted most of Tourists in the area (Roberts, Hall & Morag, 2017).
The number, variety and quality of Māori tourism businesses has increased dramatically over the
past few years and the sector now make an important contribution (Tourismnewzealand.com.
2019). This is a clear that the Maori Tourism sector is developing and growing and thereby

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BUSINESS CAPSTONE PROJECT
attracting new customers (Orchiston, 2013). The Maori Tourism as a product allows the tourists
to interact with the Maori Tribe people for the purpose of learning their culture and listen to their
stories. Some of Adventure sport such as hiking, white water rafting, art and cultural tours are
made possible in their area. There is certain area where Maori Tourism Business has more
potentials to achieve growth and the areas are explained below in details:
 Trips to Historical Places of Maori: Maori Culture is a unique culture which is present
in New Zealand. The management of Wai Ora ltd can organize trips to certain areas of
New Zealand which is rich in Maori Tourism such as Maraes. It is estimated by Tourism
New Zealand that around 118,000 visitors or the same is 30% of the total tourists who are
visiting New Zealand (Williams & Shaw, 2013). The tourists can enjoy the rich culture of
Maori by visiting areas like Maraes. The role of the management of Wai Ora can make
use of the ltd is to effectively include promotion tactics which can effectively meet the
requirements of the tourists. The management can arrange meetings with the local people
in such areas and engage in activities which are traditional in such culture such as
traditional dance. These activities can attract more customers to the business and their
lead to growth of Maori Tourism.
 Maori Culture and Experience: The Maori Tourism Industry provides significantly to
the total revenue which is generated by the country from Tourism. The management of
Wai Ora ltd organize a separate tour for tourist who want 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.

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BUSINESS CAPSTONE PROJECT
In addition to the above growth factors there are other factors which have contributed to the
tourism expansion in New Zealand and the most important of them all is the epic geographical
location of the country which is a scene most of the tourists are attracted to in an instance. There
is a unique beauty and epic design of the region of Te Tarata and the same also have culture of
its own. Therefore, it can be said that there are lot of potential in such type of tourism as well and
the management of Wai Ora Ltd needs to focus on the same so that they can potentially use this
for their own advantage and earn more revenues.
Survey Questions
The survey Questionnaire on the basis of which appropriate responses have been collected are
provided below in point form:
Q1. Which types of Tourism do you prefer in New Zealand?
 Tourism
 Adventure Tourism
 Maori Tourism
Q2. How often do you Travel?
 Once in a year
 Twice a Year
 More than Two Trips
 Rarely
Q3. In which group do you belong as given below
 Student

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BUSINESS CAPSTONE PROJECT
 Adventure Tourists
 Business Class
 Retired Person
Q4. Adventure sports is a highly demanding sports in the current time period
 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree
Q5. Which Adventure Sports do you prefer?
 Canyon Trips
 Jet Boating
 Skiing Adventures
 Bungee Jumping
Q6. With whom do you like to travel with in case of Adventure Sports?
 Alone
 Family
 Friends and Colleagues
 Tourist Group
Q7. Do you think the prices which is charged for the Adventure sports activities is appropriate?
 Strongly Agree

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BUSINESS CAPSTONE PROJECT
 Agree
 Neutral
 Disagree
 Strongly Disagree
Q8. The company has properly trained professionals available in order to guide the tourists
during the time of sports
 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree
Q9. Adventure sports are able to build self-esteem, confidence and leadership skills among the
ones participating
 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree
Q10. Wai Ora Adventure offers other facilities over providing adventure sports services to their
customers
 Strongly Agree

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BUSINESS CAPSTONE PROJECT
 Agree
 Neutral
 Disagree
 Strongly Disagree
Q11. The company takes the initiative to maintain customer satisfaction
 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree
Task 3:
Strategic Management
The management of Wai Ora Adventures Ltd needs to make 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. One of the areas where the management of Wai Ora
Adventures Ltd faces extreme competition is the hoteling aspect of the business. In other words,
the business faces tough competition when it comes to accommodations as there are a lot of
hotels, resorts which are present in the region which also have better suits and rooms. This is an
aspect which the management of the company needs to consider when taking appropriate
decisions regarding expanding the operations of the business. The competition of hotel industry
is immense especially when it comes to meeting the revenue of the business. The overall level of

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BUSINESS CAPSTONE PROJECT
competition in the industry is on the rise as more and more tourists are being attracted to the
adventure sport theme, Maori Tourism culture and epic landscape beauty of the region.
The business of Wai Ora has great potential of development and thereby the company
needs to formulate plans for taking full advantage of the business conditions and earn maximum
profits for the business. The business recognises that one of the major income producing
activities is Canyon trips. The management of the company can introduce 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 other activity which used to earn appropriate
revenue for the business is Abseiling and in the last few years the revenue from such a source has
declined. The management of the company need to effectively promote the service by offering
attractive discounts and fun experience. This would get the attention of the tourists and it is
likely that the sales of the activity would again increase. 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. This strategy would help the business in combating competition in the market.
The company can also implement strategies like SWOT and PESTLE analysis for identifying the
internal strengths and weakness of the business also the external market factors which can have
an impact on the business. The management of the company needs to develop appropriate
infrastructure for ensuring that the management of the company can meet the accommodation
requirements of the industry. The market is brimming with more and more customers and
therefore proper residential place needs to be developed so that the management is able to
effectively meet the demand for accommodations in the market. One of the strategies which the
management of the company can apply is related to reduction of costs of the business. The

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BUSINESS CAPSTONE PROJECT
management can adopt flexible budgeting techniques along with standard costing techniques for
ensuring that the costs of the business can be reduced significantly. In this process, the
management can set targets on the basis of estimations. These targets are the basis on which the
management of the company would be conducting the performance of the business and ensure
that all expenses are consistent with the targets which have been established. The targets which
are set will be established considering the previous year’s actual results.
In case the management is able to reduce the costs of the business then it would be able to
divert more funds towards investments in residential property and thereby meet the
accommodation needs of the business. The business also plans to offer an attractive price range
and packages so that the customers stay interested in what the business has to offer. This will
help the management to ensure that the revenue which is generated by the management is
appropriate and thereby also help the business to effective face competition in the market.
Key Areas the Management needs to Adhere
The management of company firstly needs to improve the budgeting practices which is
followed by the management and incorporate flexible budgeting practices along with standard
costing techniques. This would ensure that the management is able to plan for future estimates
and also control the operations of the business for the purpose of meeting the objective of
reducing the costs of the business. There are certain areas which the management of the company
needs to adhere to in order to ensure that the management of the company is able to make the
desired changes in the operations of the business. Some of the changes which are required to be
made by the management of the company are given below in details:

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BUSINESS CAPSTONE PROJECT
 The management needs to ensure that no expenses which are incurred are unproductive in
nature. This is a major step which can be taken for reducing the total expenses of the
business effectively.
 The management needs to implement flexible budgeting approach and appropriate
monitor the operations of the business and in case of any variances the same need to be
assessed by the management.
 Provide attractive tour packages which includes appropriate prices so that more and more
customers are attracted towards the activities of the business. This will help the
management to effectively deal with the competitive pressure in the economy.
 The management of the company also needs to incorporate proper plan for managing the
operations of the business and thereby ensure that costs of the business can be reduced
significantly.
Strategic Management Decisions in New Area
The management in order to ensure that the activities of the business are appreciated
needs to improve the overall quality of services which is being provided by the management of
the company. The management of the company needs to focus on Maori Tourism as the same
provides an alternative source for attractive more tourist in the country. It is clear that a majority
of the tourists are attracted to the rich culture which is enjoyed by the business (Genç, 2013). The
management of the company has recognised that in order to face competitive pressures the
management of the company needs to develop an alternative line for revenue so that the
competition does not hamper the revenue of the business.

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BUSINESS CAPSTONE PROJECT
In New Zealand, Maori culture has attracted tourism significantly and most of the
businesses are trying to incorporate plans so that the Tourists are able to experience unique
culture and the beauty of nature of the region (Maoritourism.co.nz., 2019). The management of
Wai Ora Adventures Ltd needs to incorporate such packages in the tourisms products so that the
packages can be made more attractive in nature (Nishio, 2013). The management of the company
needs to enter into tie up agreements with the people so that Maori culture can be used by the
management of the company for attractive more customers to the business. It is estimated that
this area would be beneficial for the business as this would be attracting tourists all seasons
which also means that there would be a steady flow of revenue for the business. The
management of the company would have access to appropriate amount of revenues and the same
would be source of constant earning for the business.
The management of the company can enter this new area by entering into tie up
agreements with institutions which can support Maori Tourism in the Country. The management
would be incorporating such a product in the business and ensure that the operations of the
business. The management of the company also needs to select areas which would be falling
under the tour packages. The management of the company would also be requiring guides who
have adequate knowledge regarding the terrain and can appropriately direct the tourists and help
them acquire a unique experience for the tour package.
Key Areas the Management needs to Adhere
In order to incorporate the new area in the Tourism package, the management of the
company needs to follow certain steps and the same are explained below in details:

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BUSINESS CAPSTONE PROJECT
 The management of the company needs to recruit local people who can act as a guide to
the business and help the tourist have an experience of their lifetime. The role of the
guides would be important as they are familiar with the local surroundings and they can
effectively point out the regions which the tourist should visit.
 The management of Wai Ora Adventures Ltd needs to enter into tie up agreements with
the locals so that they can support such tourism requirements in the country. This is to be
done so that the Tourist get an experience of culture the locals have and also engage in
certain activities for thrills.
 The management of the company needs to appropriately set the costs for the business so
that the prices are not too high. The prices should be in such a range that more and more
customers are attracted towards the business.
Marketing Plan
Purpose of the Plan:
Marketing is treated as the major focus in any tourism organization, with the long-term
purpose of enhancing the prestige of the Wai Ora Outdoor Adventures (WOOA). By
implementing the marketing strategy, Wai Ora Outdoor Adventures seeks to attain the following
objectives;
a. increasing the average spending per tourist
b. increasing the overnights
c. increasing the arrivals or in some of the markets recovering the falling arrivals
d. motivating the repeat visits
e. improving the off-season arrivals in some of the target group of customers

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BUSINESS CAPSTONE PROJECT
f. Bolstering the interest among the tourists in the visiting areas that are of adventure
attraction.
g. Improving the New Zealand adventure tourist market with the targeted Australian tourists
and combating the negative stereotypes (Fang et al. 2016).
h. Promoting New Zealand tourism as the adventure destination among the young group of
Australian visitors.
The purpose of marketing plan is to inspire the customers to have a holiday in New
Zealand. Creating consumer awareness as the consideration for improving the chances of
researching and planning a holiday in New Zealand by the Australian customers (Han & Hyun,
2015). Complementing the tourism of New Zealand cooperative programs in all the markets and
increasing the dispersal of visitors in the regional areas. Another major purpose of creating a
marketing plan for Wai Ora Outdoor Adventures (WOOA) is to generate a rise in the tourist
spending and yielding ensuring tourism. The purpose of marketing plan is to attract visitor from
the leisure segment. Though it would present several challenges but the challenges can be
reinforced through a significant research program that is undertaken by the Tourism of New
Zealand during the past 12 months.
Purpose of Target Market and marketing segment:
As evident the present day adventure traveller are difficult to pin down. They do not
necessarily fit in the classification or strict demographic and usually seek the freedom while
traveling for the sake of adventure whereas at the same time maintaining the certain degree of
individualization and autonomy (Moutinho & Vargas-Sanchez, 2018). The adventure traveller

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BUSINESS CAPSTONE PROJECT
are considered knowledgeable about traveling and destinations they are considering. furthermore,
these adventures are plugged in the technology of the day.
The main purpose of targeting the adventure traveller because they are considered as the
potential gold mine for the tour operators and looks to be competitive in the present world by
being connected with the digitized travel industry. Bearing this aspect in mind the tour operator
would have much improved opportunity to capture the rising segment of the travel industry and
leveraging the rising market share in the substantial growth for the foreseeable future (Medlik,
2016). Another reason for the target market is that the adventure travellers are well knowledge
about the destinations they are considering. Therefore, for Wai Ora Outdoor Adventures
(WOOA) it should remain plugged in the markets so that it can better facilitate the needs of
customers.
Market Segmentation:
The adventure travellers are segmented based on the following characteristics;
Adventure enthusiasts: Adventure enthusiasts includes the hard core adventure that seeks the
desire of high impact excursion. The market segment also includes the basic adventure s that
have moderate adventure desire of medium level of adventure excursion that area accompanied
with the secondary cultural activities.
Adventure travellers: These group of people are classified as the generation x that generally
have the higher amount of disposal income (Mason, 2015). Most essentially the adventure
travellers are the subject of large travel industry but it subsects existence adds sub-communities
that are aware of deciding the best approach in the tourism market.

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BUSINESS CAPSTONE PROJECT
Objectives and goals for the plan:
The objectives and goals for the plan are as follows;
a. Constantly communicating with the strategic objectives to its target markets effectively,
b. To offer the customers with the positive hotel experience
c. To accomplish the growth targets inside the given period of time and budget.
d. Expanding its markets and recognizing the new market for adventure travellers
e. Positive financial results at the destination level with the ultimate goal of applying all the
marketing campaigns or activities to be applied.
f. Visitation pull is another objective for the company to assess the extent of attraction for
the particular destination from the perspective of visitor segment.
Marketing Tactics to be used:
The marketing tactics that should be used by Wai Ora Outdoor Adventures (WOOA) are
given below;
a. Allocating the time that is needed for setting up and managing the website which works
for the business developmental manager
b. Indulging in the social media and other forms of online content such as twitter, Facebook
or e-mails to the potential visitors (Inkson & Minnaert, 2018).
c. Administering the present and the probable customers that requires strategic customer
relationship management strategy
d. Use of strategic e-marketing tactics would be made to communicate the specific
messages for the specific audience to assure that the relevancy is maintained and
increasing the brand engagement.

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BUSINESS CAPSTONE PROJECT
e. Actively forming a relationship with the other similar minded tourism businesses to
increase the adventure visitors
f. Measuring and reviewing the marketing effectiveness on the constant basis to assure that
the company is able to achieve the positive return on investment.
Gantt Chart:
Activity Months
M
Jan
M
Feb
M
Mar
M
April
M
May
M
June
M
July
Search Marketing 
Direct mail list promotions  
Online PR and blogs 
Directory Submissions   
Online Partnerships  
Podcasting and mobile marketing  
Interactive Social Media
Advertisements
 
Interactive Mapping  
Sales promotion and materials 
Digital Marketing and Merchandising 
New Product Development  

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Submitting the Final Work  
Projected Cost for Applying the Plan:
RECURRING COSTS
Advertisement Expenses $ 20,000.00 $ 20,000.00
Project Organizational/Support Costs $ 40,000.00 $ 40,000.00
Telecommunication Equipment $ 12,000.00 $ 12,000.00
Contract Negotiations $ 3,000.00 $ 3,000.00
Business Process Owners (Users) $ 2,750.00 $ 2,750.00
Transition Costs (Parallel Systems) $ 2,250.00 $ 2,250.00
User Training $ 1,250.00 $ 1,250.00
Telecommunications $ 1,000.00 $ 1,000.00
Marketing Expenditure $ 5,000.00 $ 5,000.00
TOTAL RECURRING COSTS $ 87,250.00 $ 87,250.00
Analysis of Next Year Budget and Organizational Chart
Next Years Budget
2017 2018 2019
Sales (June 2016 to June
2017)
(June 2017 to June
2018)
(June 2018 to June
2019)
International
tours
Canyon trips 191200 216140 280982
Abseiling 85990 56010 72813

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BUSINESS CAPSTONE PROJECT
Skiiing 31150 22180 28834
Others 9980 7860 10218
318320 302190 392847
Students
studying
Canyon trips 75020 86030 111839
Abseiling 20250 15260 19838
Skiiing 30000 37000 48100
Others 1600 1300 1690
126870 139590 181467
Speciality tours
Canyon trips 15010 17010 22113
Abseiling 2200 1700 2210
Skiiing 55980 63990 83187
Others 2100 2900 3770
75290 85600 111280
Other income
Meals - prepackaged 8000 11000 14300
Sightseeing tours 2500 2800 3640
10500 13800 17940
Total Sales 530980 541180 703534
Direct Costs
Transport
Canyon trips 46860 52960 68848
Abseiling 3310 3710 4823
Skiiing 9620 11220 14586
Others 5600 5600 7280
65390 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

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BUSINESS CAPSTONE PROJECT
Wages
Canyon trips 83000 96000 120000
Abseiling 46000 48000 60000
Skiiing 60000 62000 77500
Others 2000 1000 1250
Admin 22000 22000 27500
Management 85000 110000 137500
298000 339000 423750
Total Direct
Expenses 368170 417635
542925.
5
Gross Profit 162810 123545
160608.
5
Indirect Costs
Premises 42000 42000 54600
Telephones 15020 14770 19201
Power 31960 32960 42848
Bank charges 1600 1750 2275
Bank loan 26000 34000 44200
Other 8500 9400 12220
125080 134880 175344
Marketing 15250 26275 34158
15250 26275 34158
Net Profit 22480 -37610 -48893
Marketing Budget
Facebook 1820
541
0
703
3
Magazine 4800
493
5
641
6
Newspaper 3150
365
0
474
5
Internet 5480
122
80
159
64
15250 26275 34158

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BUSINESS CAPSTONE PROJECT
The above table effectively presents the budget for the next year and the same is prepared
considering the actual performance of the current year. The preparation of the budget estimates
that the company would be earning higher than the current year and estimates that there would be
a growth of 30% in sales. Therefore, as the sales of the business also increases so does the costs
which are associated with the activities of the business. It is estimated in the above table that the
costs of the business would also be growing at the rate of 30% which means the growth rate is
considered to be 30%. The budget shows that the total costs of the business are anticipated to
increase significantly and therefore the only concern for the management of the company at
present is to minimize the costs of the business and adequately earn profits.
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:

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BUSINESS CAPSTONE PROJECT
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.
Two Models of Organizational Culture
The organizational structure which the management of the company can follow are given
below in details:

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BUSINESS CAPSTONE PROJECT
 Functional Organizational Structure: 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.
 Market Based Division: The management can also follow market-based divisions which
would allow the management to appropriately set goals after assessing the marketing
requirements.
Analyse Maori Tourism Market
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 Maori culture needs can help the management of the company to earn more revenue
for the operations of the business.
The two suggestions which can be provided to the management of Wai Ora Adventures
ltd are listed below in details:
 The management of the company needs to reduce the costs of the business so that the
same does not impact the revenue generation of the business. The reduction of costs will
also allow the management to have more revenue for the business so that appropriate
investments can be made in infrastructure of the business.

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BUSINESS CAPSTONE PROJECT
 The management of the company needs to focus more on Maori Culture and development
of tour accordingly. The tour would allow the management to appropriate enhance the
scale of operations and thereby contribute to more revenue generation.
Conclusion
The above discussion effectively shows the factors and consideration which the
management of Wai Ora Adventures need to consider in order to expand the level of operations
of the business. The management of Wai Ora Adventures needs to focus more on reducing the
costs of the business and also incorporate new areas such as exploration of Maori culture in the
tour package so that the management is able to enhance the operations of the business
effectively. The management also needs to make changes in the organizational structure of the
business and enhance the operations further. The focus of the management should be on
enhancing the Maori tourism along with the adventure tourism of the business.

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BUSINESS CAPSTONE PROJECT
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