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BUSINESS PLAN
…You have decided that you would like to formally start an entrepreneurial business. To ensure the success of your business, you will produce a business plan. The plan will assess, compare and contrast alternative schools of thought, cultural and political differences which impact the application of management activities within the broad notion of entrepreneurship…………….
EAGLE TOURS AND TRAVEL
BUSINESS PLAN
Contacts
Address: Klosterstrasse12/ Bruchstrasse 41 Lucerne 6002Switzerland
Table of contents
Contents
1.0 EXECUTIVE SUMMARY.. 3
2.0 Business description. 4
2.1 Objectives of the company. 4
2.2 Features to Success. 5
3.0 Market Analysis. 5
3.1 Market segmentation. 6
4.0 Proposed services. 6
5.0 Organization and management Summary. 7
5.1 Organization Structure. 7
5.2 Management team.. 7
6.0 Market strategy. 7
6.1 Pricing of services. 8
7.0 Financial management 8
7.1 Break-even analysis. 9
7.2 Projected profit and loss. 9
7.3 Projected cash flow analysis. 9
7.4 Proposed balanced sheet analysis. 10
7.5 Proposed Business Ratio. 10
8.0 References. 11
1.0 EXECUTIVE SUMMARY
Environmental factors favour launching of a new tours and travel agency to convene for extra superior-quality tourist service connecting different diversity across the planet. This tours and travel agency will base its business and marketing strategies towards achieving high and profitable services through incorporation of unmet demand and under-served markets. Besides the agency launch will be in a position to meet off-peak seasons of the tourists who travel for a change of climate.
Moreover, the proposed new tour and travel agency will be premeditated around to utilize the most current electronic, informational and tourist technologies to ensure minimal marketing and operating costs, maximum efficiency and in deliverance of its services. Its going to dedicate its staff and entire organization in providing quality services, convenience and adequately seeing to the wants, safety and comfort that see to its quick acceptance in the market and perpetual growth and achievement.
The five main features leading to the achievement and profitability of this new business will be: Provision of quality services to destinations that are presently unserved and poorly served hence availing a new style and strategy in tourism industry in Switzerland, use of cost effective and environmental friendly transport services for tourists’ comfort and satisfaction, Provision of navigational facilities and effective transport services to ensure greatest level of punctuality, reliability, safety and customer satisfaction, providing a friendly, enjoyable, but highly professional personal attention to tourists , providing non- electronic service to tourists who have not yet embraced the electronic world and improvement and implementation of associations and partnerships with high reputational airlines and hotels within and beyond the region to create a large link through comfortable recipient and accommodation to our tourists.
2.0 Business description
Eagle’s tours and travel agency will be an international organization that will provide transport, accommodation and advisory services to all the local and international tourists around the world. Our vision will be ‘our tourists our pride, a job has to be done.’ We will work on the mission statement “to provide a world class internationally recognized tours and travel services to our customers”
2.1 Objectives of the company
The proposed tour and travel agency will have the following primary objectives.
To create and manage anew regional tour and travel agency with the aim of linking the culture diversity a round the world.
To offer and absorb the underserved and unserved demand in some tourist destinations meeting peak demands in certain key seasonal times.
To implement an organizational and marketing scheme that will serve a range of 60-80% of the total tourists visiting our country.
To attain revenues in excess of US $200 million semi-annually within the first year of operation.
To drive operation and offer professional, sober, future oriented icon that will mirror stable growth rates internationally.
Eagles’ tour and travel will be a form of business that will comprise of five young promising entrepreneurs all graduates of Harvard University. These young entrepreneurs observed the high need for tour and travel services for the flooding of the tourists in their country and saw an opportunity to capitalize on the market niche available. It is for this reason Eagles’ tour and travel was born beyond the limits.
2.2 Features to Success
The five critical keys to the success of the proposed new tour and travel agency are:
Hiring qualified and highly proficient management personnel that will mix vision, financial ability, and tour guide knowledge utilizing the informational technologies on solid ground in a total commitment and familiarity to towards the overall mission and goals of the proposed tourism agency.
Intellectual, continuous and insistent marketing that points out the tourism agency as one that is outstanding with great sense of professionalism. The main focus will be on well trained personnel, dedicated towards tourism wants that are understandable and flexible to their line of duty.
Through intensive market research in the target market to identify critical areas that need to be addressed in order to serve our customer demands
Use of well built residential hotels with international standards with up to date facilities that can serve all customers from different diversity.
Use of up to date information communication technologies to lower the level of staffing in readiness to maximise the sales opportunities and expand the level of interaction of the customers with the outside world.
3.0 Market Analysis
The market has a variety of features which require a greater value of tour and travel service which are not currently available:
Tourists demand reliability, agency, expediency and systems made round comfort ability.
Leisure travellers from northern Europe region and America have the same needs.
Seasonal travellers especially during winter period and holiday travellers also require reliability, convenience and destination concerns.
The new tour and travel agency will avail all these services on the niche markets for the satisfaction of the customers.
3.1 Market segmentation
A full market analysis and segmentation will need detailed travellers needs survey through our website where the cost is included in the start-up for the agency.
Pilot analysis based on the observation, customer care, interviews, future estimations, economic survey, marketing plans and familiarity with the market indicates that we there exists the following approximate market segmentation possible fluctuations, seasonality, of course and other factors.( American marketing Association 2007)
Resident leisure travellers-15%
Business- 20%
Personal leisure Travellers-15%
Seasonal holiday travellers- 15%
American and Northern Europe travellers-5%
4.0 Proposed services
Eagle tour and travel agency will provide the following services to its customers:
Transport services for tourists to all the tourist destinations
Accommodation services to both local and international tourists
Advisory services on the available safest and attractive tourist destinations
Tour guide services to the tourists in all the tourist destinations
Booking of return tickets for the tourists and generally any other needs within the scope of the agency.
5.0 Organization and management Summary
Whitaker is assembling a composite management team with good professionalism in management, accounting and finance that fore start the business. This is only an initial team of managers but a full main management team and its board of governors will be finalized (Berry 2011).
5.1 Organization Structure
The following are the levels of organization (Ambrose, Cropanzano 2000) depicted in the
Personnel and salary plan:
The president and C.E.O who will report to the board of directors
Vice president and general manager
Managers for the specific core areas, finance and operations
Managers in human resources, marketing, hotel operations, maintenance and IT
Subordinates staff in tour guide, receptionists and ground work
5.2 Management team
A full management team will bring collectively a variety of skills and settings comprising the main gadgets needed to make and instigate the administration and finance activities of the agency.
6.0 Market strategy
The proposed tour and travel aims to reach out to new geographical boundaries by setting up agents in different countries who can easily link tourists to our arms. It will seek to be identified as one of the upcoming and promising tour and travel agency in the world with roots established everywhere across the continents. With the combination of latest IT and its main focus on comfort, safety and convenience it seeks to reach the unreachable areas in the tourism industry.
A variety of sporting activities will also be provided to improve on our service deliverance. This will include sporting for children, youth and the old to cater for the different age- groups. This will promote our image towards supporting the safety and health of our customers.
Through good public relations the agency will be able to sell its image. Besides the name, colours and the general types of hotels they will have will be a major strategy to watch out for. Our tour guides will be highly trained to handle the different age gaps to prevent underserviced to our esteemed customers.
6.1 Pricing of services
The agency will charge its fees according to the services requested for. For example if in need of accommodation, tour guides and transport services it will depend on destinations requested for. Fees will be charged on hourly basis though the peak seasons will call for different rates due to the forces of demand. Discounts will be offered to customers when the agency feels it’s necessary for the treat. Advanced booking will be allowed either online or through our agents to avoid congestion or delay of our services to our customers. This will be in line with our vision “our tourists our pride, a job has to be done” and yes a job has to be done.
7.0 Financial management
This chapter provides the main determinants of evaluating the viability of financial management of the proposed new tours and travel agency. All these will project a true assessment of the business venture to bring out the prospect it holds.
7.1 Break-even analysis
With the endless influx of tourists into Switzerland, we expect to serve over 100 000 tourists in our exclusive hotels and resource centres. Averagely each tourist might be charged US$1000 per hour. For a period of 50 hours each will fetch US $50000. This stipulates to US $5billion for the average 100000 tourists for the 50hours. For the 50 hours the initial cost of operations is estimated to be US $3.5 billion implying the breakeven point comes at the 35th hour
7.2 Projected profit and loss
From the information above on breakeven analysis it is worth noting that in a period of one year the estimated net operating income on equity investment is going to be US$1.092 trillion from the tourism sector. This are expected to vary according to the seasons and demand. The salaries of personnel cost of items and taxations are all included in the cost of operations.
Given the right business environment it is expected that Eagles’ tour and travel agency will be one of the leading tour and travel agencies in the coming years.
7.3 Projected cash flow analysis
With proper planning and management of expenses and resources the cash flows might not show any sign of threat to the organization. The initial investment expected to be injected in the business is US$1.5billion and with the initial costs not exceeding a substantial amount the agency can survive the forces of the market. The majority of the revenues will be realized from the hourly fees charged on the customers and the hotel charges. The expenditure includes the staff salaries, tax returns filed, interests rates on loans, food purchases, utilities, stationary and the fuelling costs. These are expected not to exceed the revenues in the coming future period.
7.4 Proposed balanced sheet analysis
The proposed venture will prolong a stable financial position with the hard assets available like the hotels located in the major cities of the country. Its net worth is expected to grow steadily from the current US$ 20billion to US$24billion for the next three year future period and to more than US$30billion at the end of fifth year.
7.5 Proposed Business Ratio
The main ratios include current ratio which is expected to stand at 2.5 times for the first year and is expected to grow to 3.36 times for the second year and later over 4times at the end of the 3rd year. The quick ratio is projected to be 2.21 times in the first year and 4.1 times in the second year and later to grow to 7.2times. The proposed debt to assets ratio will be 30.13% in the 1st year but later it will reduce further due to the growth in assets value. The net profit margin is expected to be 3.12% in the 1st year but it will be expected to grow to 12.5% in the next three years. The return on equity is expected to be 15.6% but this will increase further due to growth in net worth. Other ratios the firm will use include; Activity ratios, dividend payout ratios, leverage ratios, liquidity ratios and other debt ratios. (Dun , Bradstreet 2002).
8.0 References
Tim Berry (2011), Sample business Plan, The Wall Street Journal, Palo Alto Software co.
Brad sugars (2011), Startup Basics, Entrepreneur magazine’s
Englewood cliffs, N.J (2006) Almanac of business and industrial financial ratios, financial
Journal, Prentice-hall
Dun & Bradstreet (2002), industry Norms and Key business ratios, one year, statistical
Periodical, Murray Hill, N.J Publishers
American marketing Association (2007) Market research, Journal of Market research,
Chicago American marketing Association.
Ambrose, M.L, & Cropanzano, R.S (2000) the effect of organizational structure on
Perceptions of procedural fairness, Journal of applied psychology
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