BSBMGT617: The International Sunrise Group - Develop and Implement a Business Plan Assessment Answers

Business Plan & Management Assignment Help

This module describes the skills and knowledge required to run a business operation and covers the steps required to develop and implement a business plan.

It applies to individuals who are running an organisation or who take a senior role in determining the effective functioning and success of the organisation. As such, they may oversee the work of a number of teams and other managers..

Upon successful completion of this module, students should be able to:

• analyse and research business vision, mission, values, objectives, goals, competitors, financial targets, management arrangements, marketing approaches and strategic, business and operational plans
• write a business plan which includes a description of the business, products and services, financial, physical and human resource requirements, permit and licence requirements, marketing activity, financial indicators, productivity and performance targets for key result areas
• implement a business plan including ensuring skilled labour is available, and that training is provided where appropriate
• monitor and respond to business performance including evaluation of performance against key results indicators including profit and loss, community awareness or branding, environmental impact, governance, quality, sales, triple bottom line and the workforce
• consult, communicate with and report to key stakeholders including business partners, financiers, customers, staff and technical advisers
• provide an analysis of the strengths and weaknesses of a business plan

Assessment methods and tasks

Business Plan Summary

It main objective of this business plan is to get approval for funds for the procurement and renovation of Sunrise resort, a 20-rooms hotel especially for couples to relax and enjoy recreational activities. It is located in Benzie County, a very popular spot for tourism situated near the state of Michigan's Lake Michigan. Owing to the unavailability of affordable hotels and motels in Benzie County, we are hopeful that Sunrise resort will soon become a niche for people visiting Benzie County.

We are planning to renovate the hotel building and add new amenities like an outdoor pool, poolside beverage service, piano bar along with a dance floor and morning continental breakfast bar. So we need investments to refurbish the hotel and progressively expand our business as described in this document to make Sunrise group of a highly profitable hotel venture.

The owner of Sunrise Resort, Thomas Black, a successful business man has a rich experience of establishing a variety of businesses. Mr. Black did B.A. in Business Economics, and an M.B.A. from the University of Michigan. With a desire to expand his venture he has planned to establish Sunrise Resort.

This plan including all the marketing strategies has been developed after a thorough primary and secondary research. We have interviewed and discussed with many individuals who own similar businesses so as to create the proforma data, review the market trends and figure out the potential competitors.

Business Plan Purpose

Introduction

Formal business planning has become highly crucial to achieve business success in this competitive world. This business plan will be used to seek investments and will also serve as a strategic plan in the initial stage of the company. This document describes the opportunities we see, the weaknesses which will obstruct the way, solutions to foreseen situations and what are our chances to succeed.

Business Planning Methodology

This business plan will help us to explore and find answers to the following questions:

1. What can we achieve and how?
2. Who are our competitors and how can we perform better than them?
3. How realistic and attainable are our goals and objectives?

This will also help us understand and analyze market and financial trends, latest technology, potential risks, combating strategy and much more.

Developing the Business Plan

The management of Sunrise Resort has created this business plan to estimate the start-up cost and other factors which may contribute to make this a realistic achievable plan.

Suggestions from other market professionals

Mr. Thomas Black has consulted legal advisors to supervise the development of this Sunrise Resort concept. The legal assistance will be actively involved at each operation that will be carried out in the resort. This document thus reflects our plan and vision.

Objectives of Sunrise Resort

Our main objectives are as following:

1. To get an investment of $1.5 million;
2. Establish attainable goals;
3. Identify and quantify objectives;
4. To channelize the growth and establish proper measures to track the progress;
5. To create benchmarks for measuring success.

We are planning to create an adult couples' 20-room hotel to provide an aesthetic atmosphere to relax and enjoy at the Benzie County/Lake Michigan area. Management is importuning commercial partners with similar vision to invest finance in our project.

Ideal Property Location

We desire to locate the Sunrise resort in a 10-acre parcel with 8 acres of woods. Three out of twenty rooms will be executive suites containingJacuzzitubs. One of these rooms will be converted into an apartment for the residence of the onsite manager. Each room will be equipped with temperature control system, direct-dial phones and television for entertainment. The main facilities will include a large area as lobby, an indoor pool, shed for storage, tennis court, parking, and all other equipments which are generally available in a motel. The grounds will be beautifully landscaped.

The existing motel is in Benzie County situated on a beautifully landscaped wooded land of 10 acres. Around 6 acres of the space is wooded and undeveloped. This will allow for a substantial enlargement or expansion. It also has a potential for an entirely new enterprise to be developed there, which will support our current venture.

This motel is a single building which is 15 years old with 14,000 square feet of living area. The 16-unit motel includes a lobby, a reception, an area for storage, bathroom, laundry room, a conference hall, a balcony, 16 rooms, kitchen, a spa and an indoor swimming pool. It also includes an apartment for the manager which has a living room, 2 bed rooms, kitchen and a bathroom.

The exterior of building is made up of cedar, interior of the walls is concrete, and the roof is made up of pitch and pebble. The floor was lead using ceramictiles and is covered with carpet. The windows are of casement style. There is also a basement under the area covering the living quarters.

There is also a separate storage room located behind the manager’s apartment. We also have a parking lot with a capacity of 40 cars, sidewalks made of pebbles, variety of trees and shrubs to beatify the surroundings.

Motel is also facilitated with a huge mechanical system to meet of the electric needs of the place.

Mission Statement

The mission of the Sunrise Group is to provide excellent hospitality services to its guests at an affordable price. We foresee ourselves to be providing the best accommodations in Benzie County.

Company Business Plan Objective

This business plan will direct us towards our vision and help us achieve our goals for providing better hotel and lounge services to our customers. Our objectives are as following:

• To get an investment of $1.5 million;
• Establish attainable goals;
• Identify and quantify objectives;
• To channelize the growth and establish proper measures to track the progress;
• To create benchmarks for measuring success.

Company Summary

Owner of the Company

Mr. Thomas Black founded Sunrise Resort, Inc. hotel and lounge in 1999. He is involved in national environment and economic development related projects since 1985. He provides consultation in the areas related to development and finance. He is also a US SBA counselor, and has special certificate for fast track program instructor there. He has started many corporate firms and businesses. He will be managing Sunrise resort on a rountine basis.

Company’s Key Advisors

We have a full staff and some advisory members to assist in planning and development. The advisors include a key person who is an architect trained at Notre Dame university and was manager of Oreos Group.

Management & Organizational Summary

Mr. Black will be responsible for managing all business related aspects and service development. Qualified professional resort associate will be hired to offer additional services to support the operational activities. Mr Black has also become the member of American Hotel and Motel Association.

Development Plan for Sunrise resort

Developmental work will be carried out in two phases as describe below:

Phase I

This stage will deal with preparation and development of Sunrise Resort. Until the property for the resort is acquired, new office will be housed at Mr. Black’s place. The new property will be established independently with management directives and capital. To ensure the quality work professionals on contract will be hired. Proper advertising strategy will be used to create reputation of this new resort as an affordable "boutique style" resort.

The rooms will be renovated and manager’s apartment will be converted to a lounge. The other construction will include building a bar, parking lot and an outside pool. The capital needed to complete the first phase is document later in this document. It is expected that this property can be transferred by the end by the end of 2016 and the hotel will remain closed in winter for new construction and renovation.

Phase II

This phase will involve evaluation of activities related to sales, advertising, and marketing carried out in Phase I. We will evaluate the room occupancy status for Sunrise Resort to predict the success of expansion. We anticipate that an additional staff will be needed during the phase II. We have not added the funding plan for this phase in this business plan.

Hotel & Lounge Overview

The establishment of hotel and facility of lounge is expected to take some time as research shows that the guests generally choose these services only on recommendation for previous guest. To make new connections we look forward to yellow pages and other advertisement options.

Competitive Advantage

Our main strength would be the rich experience of Mr. Black in management. He has a good eye for right kind of employees and can train them to the specific needs to the organization. He has an excellent understanding of the hospitality and service sector as well. At present, only a single medium sized resort niche is available in the market of Lake Michigan. The cost per night averages to around $250. The older motels, on the other hand, charge around $80 per night in that area. So, Sunrise resort will soon be able to create a niche for itself.

Anticipated Keys to Success

1. A property designed according to the prevailing choice of the guests,
2. Frequent Guest can be awarded with special deals and discounts,
3. Bare minimal operation costs,
4. Seriously working on customers’ feedback,
5. Making use of advance technology and managing softwares,
6. Organizing special recreational programs,
7. Maintaining hostile and friendly environment ,
8. Proper supervision and trained staff.

Analysis of the Current Market

The business will be significantly get affected by the trends in the market and other factor like economy, geography, competition, legal/political issue, and technology.

Economic as a major factor

Rising living standard of people, their willingness to spend more on luxury, increasing salary demand, need for more staff, low inflation are some of the factors which fall under this category.

Geographical/Competitive Environment

Michigan is a famous tourism spot. Lake Michigan, Lakegrove, urronding golf courses, ski hills, water sports and recreation activities, shopping areas, fine dining, art galleries, entertainment resources like theatre etc. make it a worthy destination to visit and stay at.

Sunrise will thus be a good moderately priced option with facilities like on-site lounge, indoor and outdoor pool, continental breakfast service, etc. We will thus soon shape our image as a "boutique style" resort rather than being just another motel.

The attractive surrounding landscape will attract more guests who appreciate nature and its beauty.

Legal/Political Issues

We will move on with the project only after getting the Benzie County, Michigan, liquor licenses. Legal advice will be taken to review our policies and also proper insurance needs will be taken care of. Permits for construction will be taken prior. The present laws in this region allow construction of bar, cabaret, grill, and dance floor space.

Use of Advanced Technology

Various software packages especially designed for hotel industry are available these days to for maintain records related to financial matters, availability of rooms, other room services, keys, etc. We intend to provide all the necessary training to our staff for operating the softwares and managing the inventory.

Competitive Environment

Following is the list of hotels and motels present in Benzie County, Michigan extracted through Midwest and theAmeritechDirectories:

High Priced($150-$1000 per night)

The Cove of Lake Michigan ($150-$250), Grand Michigan Resort and Spa ($150-$750), The Michigan Inn ($250-$550)

Motel($70-$150 per night)

Breezy Chateau Inn, Budget Time Motel, Lake Michigan Motel, Lakewood Motel, Swiss Motel

Bed & Breakfast (B&B)

Dazzling House, Refreshing House, The Precious Inn

Sunrise Resort hotel and lounge is an attempt to provide high end facilities at moderate pricing to adult couples.

Analysis of the competitive market reveals that the present competitors are not targeting this segment of the market. As hotel and lounge business is considered to be referral-driven, we plan to reward the guests for recommending our resort to new customers. Building relationships with business and civic groups can further help in the promotion of Sunrise resort. Organizing recreational activities at regular intervals like Live piano, dance group performances, jazz shows will further help in attracting the guests residing in other properties to coa and participate.

Potential Opportunities and Threats

Overall the environment appears quite positive. Almost all the tourist attractions are located in close proximity of the property. The resort is surrounded by scenic beauty, providing perfect space to relax and rejuvenate. On the other side, too much of competition is a negative factor. Sunrise resort may take a while to establish.

Implementation of the Planned Strategy

Marketing Strategies

The targeted Markets will include:

• New tourists visiting the area
• Upper and medium income class people
• Regular guests
• Business groups
• Parties, conferences, weddings and other large scale events
• Adult couples

This marketing strategy will change depending upon the guest’s suggestions and feedbacks.

Distribution Strategy

Hotel and lounge services are different in terms they are marketed and distributed as compared to other finished products. There the business substantially depends on the services provided in real-time. We plan to provide services to the guests in the most convenient way and that too 24X7. Customers can communicate with the resort any time via telephone line, social media sites, fax or e-mail.

Strategy for Pricing

We have decided upon the rates per night ($130), but these may vary depending upon the seasons. Special discounts can be availed in case of bulk booking. Some of the facility can only be provided if paid extra.

Tentative rates:

Promotion Strategy

The strategy relies on targeted market. We plan to make use of a very cost-effective promotional campaign.

Plan for Marketing

New Business Segment

For direct marketing we intend to make us of attractive brochures, introductory mails, invitation cards to a list of selected guests including medium and big business groups, renowned families with high end living style and travelling agencies. This information can be extracted from International Business Lists, tax records, business license applications, newspapers, etc.

We also plan to design a one-page newsletter on quarterly basis. It will be mailed to our past customers and probable guests to update them about upcoming facilities, deals, discounts, etc.

Networking and Publicity

The launch of the Sunrise Resort can be a large scale one day event to attract more and more people. The release will also be announced in newspapers and magazines. Small talent shows can be organized as weekend entertainment programs. Mr. Thomas Black will play a major role in making good connections and networking using his good will.

Encouraging the guests

Free stay for 1 day can be offered to present guests if the booking is for 5 or more days. Special discounts can be offered for guests for referring future guests. Gifts can be disturbed occasionally for participating in recreational activities.

Advertisement

• Periodic ads can be given in newspapers and magazines to earn name.
• Entry in Yellow Pages and Telephone Directory can also help.
• A business card-like ad on the front cover of telephone books and general purpose dairies can also help. These can be distributed among the residents free of cost.
• Placemat advertising can also be used.
• Ads can also be posted in public offices, grocery stores, senior centers, clubs, theater, etc.

Following is the estimated promotion Budget for year 2016-2017:

Evaluation & Control Strategies

Objectives have been set so that the performance can also be measured. Our aim is to achieve total revenue of $800,000 and 60% occupancy rating at the end of the first year.

Objectives will be revised in every subsequent year and performance will be evaluated. Proper measures will be taken in case performance is not up to the mark.

The measure of customer satisfaction can help improve the services and hence customer satisfaction survey will be conducted on regular basis.

Estimated Financial Plan

The Funding Summary for above presented project is as follows:

The following schedule gives the anticipated developmental costs for the hotel and lounge start-up:

The amount required for phase II development will be estimated at a later stage depending upon the needs of that time.

Financial Plan Assumptions

Following are the assumptions to be incorporated into Sunrise Resort proforma statements:

• The mentioned operating costs have been estimated using management research of similar operating companies.
• Automated control systems where ever possible will help in reducing the staff requirements.
• Start-up cost shown here is for a period of initial five years.
• Room Occupancy of 60%, overheads and cost for operations cost have been calculated on yearly basis.
• Labor costs will increase by 2.5% every year.
• Revenues are presumed to rise annually at a rate of 5%.