CostelGheorghe Business Plan

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School

University of West London *

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Course

MISC

Subject

Business

Date

Nov 24, 2024

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docx

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Uploaded by CommodoreKudu2300

Student: Starting a Business and Fundam entals of Marketi ng BMM 3013

CONTENT Table of Contents Executive Summary ............................................................................................................ 3 Strategic Business Review .................................................................................................. 3 Strategic business direction and purpose .................................................................................. 6 Strategic business plan ....................................................................................................... 7 CONCLUSION ...................................................................................................................... 7 REFERENCE ........................................................................................................................ 8

Executive Summary The name of the proposed business will be Esterned. Currently, Esterned offers tour guide services as well as discounted hotel transportation and hotel reservations to visitors to London. Because of our well-established business network, we have been able to provide our customers with high-quality services. The fact that London has always been a top tourist destination has attracted a number of new businesses. The tourism industry has seen a boom since the end of the 30-year civil conflict, with many industry experts predicting that growth will continue in the years to come. Although this is great news for us, it also increases the challenges we face, since the attractiveness of the industry is likely to attract new competitors. As a result, it makes good business sense to identify new revenue streams based on existing core competencies in order Strategic Business Review 1.1 Business Background. After the end of the civil conflict, London has been considered one of the world's top tourist destinations. There were 80,379 tourists arriving in October 2021 (+15.5%), with total arrivals for the year up 16% year-over-year to 774,151. There were 855,975 arrivals for 2021, a significant growth of 31%. London's government aims to welcome one million visitors by the end of 2022, and 2.5 million by the end of 2021. 1.2 Environmental Analysis Using the PEST analysis, we analyze the external environment that influences business operations in order to analyze the business environment. We will use this analysis to identify key factors that would guide our proposal to build a budget hotel.  POLITICAL Approximately one third of this country's business operations are influenced by the policies and procedures developed by London's government. Since ending the civil conflict that threatened to divide the nation, economic and social stability have given the tourism industry a significant boost. In addition, our company is extremely motivated by the government's interest in ensuring continuous growth of the industry. The government has also proposed that in the budget for 2022, all local investors will receive a 25% discount on lease rentals, encouraging more hotels and resorts to be

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built. Investors with at least 30% equity in local companies will be offered concessions on land leasing (www.ibisworld.com, n.d.).  ECONOMIC London's economy grew by 8.3% in 2021. Many businesses reported better performance in 2021 showing business confidence remained strong. Even so, interest rates remain high as the government seeks to curb private borrowing. As food prices continue to rise, inflation reached a 3-month high of 9.5% in November 2021 (www.statista.com, 2018).  SOCIAL Over the years, foreign influences have been a major concern in regards to possible damage to culture and society. Citizens are also concerned to ensure that business operations do not harm the natural environment. The United Kingdom has issued a travel warning to all British citizens travelling to the country in response to concerns over the possibility of an increase in nationalism in London. Despite this, London's citizens are regarded as friendly and helpful, as are the hotel staff, as they are courteous and polite.  TEHNOLOGICAL Recently, technology has begun to play a very important role in the hotel and travel sectors in London. Online booking is popular due to its convenience and the special rates offered for online bookings. Accordingly, we plan to develop our own website and link it with well-known websites such as agoda.com, Sri Lanka.com, and Trip Advisor.com (Frue, 2019). Our company takes advantage of these websites to promote our new venture and to attract new customers, however, we are also aware that any negative comments on these sites could harm our reputation in an international setting because these websites are highly regarded. 1.3 SWOT Analysis In strategic decision-making, SWOT analysis is used. Generally speaking, strategies should be formulated based on the organization's strengths and opportunities in its business environment. As a result of a SWOT analysis, we were able to identify the business' Strengths, Weaknesses, Opportunities and Threats. Matching strengths with industry opportunities and converting weaknesses into strengths is the goal (States., 2018). Strengths As a result of its existing operations, the company has gained extensive tourism experience. A new hotel venture could benefit from the knowledge gained regarding business operations, traveler requirements, and a strong network. We would be able to provide a complete package to our customers by integrating our existing business operations with the planned hotel operations, thereby giving us an advantage over our competition.

Weaknesses Although the company has gained experience through its guide and transport services in the travel sector, it lacks direct knowledge of the hotel business. New staff would need to be recruited and training provided. Opportunities Tourism is growing in London, creating a clear incentive for people to get into the hotel business. Incentives are being offered to local investors to build hotels as part of government policies. In addition, the demand for budget hotels is growing, as mentioned earlier. Rather than focusing on developing high end hotels, we have the opportunity to serve a growing niche market. Threats The existing levels and nature of competitive pressures in the tourism industry are a major concern for the company. Because of its high attractiveness, it is very likely to attract more players, thereby resulting in price competition that could reduce profit margins. In addition, certain policies could negatively impact this industry. 1.4 Stakeholder values There are many stakeholders involved in the business, and managing their expectations is a key challenge since all expectations cannot be met, which requires compromise. Investors : Investors who have provided funding to the business would expect high returns and carefully scrutinize the operation of the business for activities that would diminish the value of their investment. To ensure a steady flow of income to them, they would wish for the company to invest in new revenue streams. Customers : Due to the current economic climate, travellers are keen to receive value for money. So the company must make sure that the services it provides to its customers are of high quality and not overpriced. On the other hand, the company must balance the expectations of the investors, who are looking for high returns, with the interests of the customers. Additionally, the company would have to carefully analyze the customer's perception of value. Management and staff: The staff interact directly with customers. For these reasons, it is very important that staff members receive a competitive wage for their services so that they can in turn provide a very high standard of service to customers. In order to create value for customers and manage their expectations, management plays a crucial role. Consequently, they also expect to be fairly compensated.

Strategic business direction and purpose To ensure sustainability, the company's main focus is to continue growing in the travel and leisure industry and diversify into related and profitable businesses. Because we anticipate high levels of competition in the future, it is imperative that the company identifies market niches and makes timely investments. Vision: Tourists and locals alike would like to see the company become a well-known brand in the hospitality industry. A unique experience and value for money are what we aim to provide to all of our customers. By providing such services, London could become a more affordable destination while still exceeding the expectations of visitors. Mission: Currently, the company provides transport services to foreign visitors and locals alike. Additionally, we can arrange lodging for our travellers through our extensive network at very competitive prices based on their requests. There is information provided to visitors about travel arrangements, as well as what should be avoided when visiting the country. In order to create awareness, we aim to integrate our business with social media websites and other key sites used by international travelers. We would like to expand our business into the hotel sector so that we can provide our customers with a complete package at better rates and that are uniquely tailored to meet their expectations. Competitive Positioning As existing players competed to obtain market share in a low-growth industry prior to the boom, the company faced fierce competition in the industry. In spite of this, as the industry has grown, there are more players competing for market share. As a result, by investing in a budget hotel, the company would be in a unique position in terms of a cost advantage. While the company gains a competitive advantage in travel, it will face new rivals in the hotel sector.

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Strategic business plan. The concept of creating a budget hotel is based around the growing demand for similar accommodation in the country, whereas most hotel investments have been targeted at the high-end market. Approximately 50% of the respondents to London Economy Hotels 2021 revealed that on future business and leisure trips they would consider staying at an economy hotel, which indicates that the hotel is still a viable choice for so many travellers. The growing demand for low-cost, high-return economy hotels is predicted to increase alongside the increased use of budget airlines in the near future, according to industry experts. CONCLUSION Clearly, the company wishes to enter a sector that has experienced strong growth in recent years, and will continue to do so in the future. There will be a lot of competition with a lot of large investments coming through that are mainly focusing on the high end market. In spite of this, the company has noticed a growing demand for low-cost lodging in the form of budget hotels. However, the company has been surprised to find that this demand has not been noticed by institutional investors. Consequently, we are given the opportunity to provide our product to a market that is growing. I think it is pertinent to mention that there are already a number of operators in the budget hotel sector. Nevertheless, it is expected that new entrants will also be able make money from the sector as a result of the high growth in demand. Oriented towards establishing a strong customer base, we aim to offer value for money to our customers as well as to offer a unique product that is priced very competitively in order to establish a strong customer base. In that way, we will gain the advantage of being the first to market as well as having a strong customer base that will act as an effective entry barrier for our competitors. In addition to that, a strong brand name would help us to avoid any price wars that would erode our Taking advantage of social media websites and other travel websites in order to create awareness that reaches a large network at minimal cost is our goal.mum cost. Based on the high growth projections as well as the support the sector is receiving from the government, we believe now is the right time to invest in the sector.

REFERENCE Frue, K. (2019). PESTLE Analysis for Hotel Industry . [online] PESTLE Analysis. Available at: https://pestleanalysis.com/pestle-analysis-for-hotel-industry/ . States., U. (2018). SWOT analysis : a tool for making better business decisions. Washington, D.C.: U.S. Dept. Of Agriculture, Risk Management Agency. www.ibisworld.com. (n.d.). IBISWorld - Industry Market Research, Reports, and Statistics . [online] Available at: https://www.ibisworld.com/united- kingdom/market-size/hotels/ . www.statista.com. (2018). Topic: Hotel industry in the United Kingdom (UK) . [online] Available at: https://www.statista.com/topics/3146/hotel-industry-in-the- united-kingdom-uk/ .

CostelGheorghe Business Plan

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