Business Management Plan

I. General description of the business

The business will be structured as a limited liability company. The international hotel business has a lot of potential as more people are moving across borders for leisure, business or tourism purposes. United Arab Emirates (U.A.E) has been categorized as 18th among tourism competitive businesses by the World Economic Forum (WEF).

The UAE is well known for its great shopping facilities, hotels and other tourist destinations. All the year round, tourists and business people flock the UAE to catch a glimpse of the splendid world out there and spend some money too.

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The hospitality industry in the UAE is experiencing a boom in business as new and returning customers are flocking the local hotels causing an influx of patrons. Travelers, such as tourists are in pursuit of comfort, which they are willing and able to part with a fortune, while businessmen are in search of convenience and the business opportunities the region offers.

Considering the hospitality industry in the UAE, there is still a lot of potential although the market is quit dominated by established brand names. However, for new entrants into the market there is still a lot of potential. We intend to establish a startup company in Dubai, by the name C-Zones Bar & Breakfast.

The B&B is a charming facility that would be located in a remarkable region recognized as a trendy tourist and traveler target, it is well appropriate for this use. In addition, the locality is recognized for its magnificence and focus of such facilities.

Tenancy, income and room rate analysis are confirmed by broad research carried out over a four year period. The analysis consists of certified data and information obtained through countrywide commerce associations and the personal market analysis. Expenditure management procedures have also been acknowledged through industry connections. From these connections, the facility will be able to gain from reserves which were not available to a smalltime purchaser.

An growth map is also in position that will let the Bed & Breakfast to expand its client blend and enhance revenues. The premise has an amazing common lounge where the patrons may hang out, a private garden courtyard, and the adventurer Culinary Centre.

The market

Within the hospitality industry, C-Zones will be competing directly with other Bed & Breakfast facilities and indirectly with hotels. C-Zones will be targeting three main categories of clientele: the holiday travelers. This category of visitors to the UAE is increasing at 12 percent a year with 14,000 prospective clients. The second category is the business travelers, which is growing at 10 percent with a lot of potential. The last category is the locals.

Competitive edge

C-Zones has two main cutthroat edges that distinguishes it from the opponents. The first is to provide a first class facility with attention to detail and client service. The employees realize that their mission is to make sure that the clients have the best stay with them and are happy. Their second competitive edge is the uniqueness of the premises whereby, the premises has a wonderful structure that is located in a unique place.

Mission

The task of C-Zones Bed and Breakfast is to offer an amazing bed and breakfast experience within UAE. We intend to attract and retain customers and get a market niche. Our facility is expected to go beyond the expectations of our clients by providing a contemporary, world class experience, through never-ending commitment to the advancement of our affiliates and products to attain optimum growth and profitability.

II. Company Summary

C-Zones is an amazing inn located at Dubai. We are a startup company that will provide several furnished rooms to our clients who are looking for the finest service. All the rooms are individually furnished with antiques and overlooking the town’s splendid scenery. We will offer a full breakfast every morning to our customers at our competitive prices.

II.I Ownership

The C-Zones Bed & Breakfast is owned and managed solely by Jamaal and Aziz. They have renovated an old house that can accommodate 105 visitors at a time. This is a new start-up company for the partners who are equal owners in the business in terms of capital contribution and share of liability. Jamaal and Aziz bought the premises a little over a year ago and have renovated the place to become a wonderful facility.

II.II Strategies and objectives

The goals of C-Zones B & B for the first three years of existence are:

To create a Bed & Breakfast whose main objective is to go beyond the client’s expectations together with the guideline of “unprecedented hospitality and service standards”.
The C-Zones B & B will attract more visitors on a weekly basis at any time of the year.
To raise the number of customers by 10 percent every year through deluxe service to 90 percent occupancy in the third year.
To create an ongoing concern, which carry’s on off its individual cash flow
Create a customer satisfaction rate of over 90 percent.

Strategies

According to (Wheelen and Hunger 30-66) strategy for business falls under a hierarchy of three levels, a company’s most important strategy that determines the overall direction of the organization which are called corporate strategy and can be fulfilled by formulating and implementing business/divisional strategies which occur at the product level and go ahead to give businesses an advantage over others as far as their product offering is concerned.

Furthermore (Wheelen and Hunger 82) suggest that for business strategies to be successful functional/operational strategies which aim to maximize productivity within various functional areas must be formulated and implemented.

Therefore strategies are divided into 3 classes. The top most level of strategy includes corporate strategies which are the overall set of strategies that define the overall direction which a business is to follow. Corporate strategies may consist of growth, stability, or retrenchment strategies.

Startup businesses in this case, the hotel, employ a strategy which is known as a stability strategy in its first years of operations, this is because in most cases entrepreneurs who operate start up businesses understand that during the initial year of their businesses they expect to make no profits because of the huge costs that are involved in setting up the businesses.

This is therefore why startup businesses employ a stability strategy that intends to take a pause and rest because of the usually large investments that investors might have put in the business. If managers of these businesses do not do so, they may exhaust all resources and end up with no further resources to operate their businesses forcing closure.

As time goes on, the hotel can then adopt a pause and precede strategy that is dependent upon the actual situation on the ground. After a period of say 2 years, the hotel may then decide to adapt a growth strategy or settle upon serving a smaller market depending on the situation on the market then.

Hotel’s business strategy is a cost leadership model that intends to sell its products at a low price. In order to achieve these corporate strategies, the hotel will be required to put strong policies, programs, budgets and procedures that will go to ensuring production schedules and sales targets are met in time without and delays. Functional strategies intend to foster quality, cost saving, and differentiation.

Tactics that will be used to achieve strategic goals

Keeping the Customers is quite important once the hotel acquires a customer, it will be best if it attempts to maintain a relationship between itself and its consumers in order to retain its customers. The company will need a loyal customer base, and the loyal customers are the most important factor of their company.

The company has to device some important promotional strategies so that the customers always come back to their concern. These strategies include providing a superior customized service for its products at the cheapest possible prices that is consistent with the specific consumer needs (Case 220-238).

Trying to acquire new customer will mean that the hotel will device means to allure new customers and try to retain them as far as possible. These will increase the boundaries of the company in a new level.

Furthermore, the hotel will encourage existing consumers by using various techniques to bring in new customers and therefore the importance of maximizing the consumer experience is critical so that consumers will always have something good to say. When consumers use Word of mouth and lure other consumers it is cheaper than using other means of acquiring consumers.

Safety is a key concern for consumers and therefore in recent times security has been a very important concern for the individuals who use hotels (Kotler ‘Principles of Marketing’ 20-50). The company therefore, will take strong security policies that will ensure the safety of consumers and their property

Trying to acquire new properties by expansion and is a long-term corporate strategy that involves either acquiring and opening up new branches with the aim of serving a larger market in order to increase revenue. It is therefore necessary if the hotel wants to expand to acquire new properties.

Keeping an eye on the competitors is a very important tactic that leads to technical excellence especially since every day new organizations are entering into the hospitality market with a very huge financial backing. It is therefore necessary to use competitive intelligence to gather useful data that will be used by the hotel to achieve a competitive advantage (Case 210).

Promotion is a critical part to a brands success and therefore entrepreneurs and companies should appropriately apply various parts of the promotion mix in order to increase the chances of the product selling in the market. Promotional activities aim to educate, inform, remind, persuade and encourage repeated purchase about products and brands at the end of the day. A good promotional mix should always target the consumers and sellers. Consumer promotional activities encourage consumers to buy more of the product. And therefore consequently the hotel will use advertisements, brochures and direct selling to achieve its objectives and stimulate sales and revenue growth.

II.III Liabilities and risks

The hospitality industry is faced by many risks. For C-Zones just like any other player, the market is still an open place.

II.IV Management Team

The C-Zones Bed & Breakfast can only attain its missions and objectives through the management. Jamaal is an experienced entrepreneur with work on invaluable business experience. While Aziz has earned his MBA giving him amazing insight and experience directly related to what he is doing now.

The C-Zones Bed & Breakfast will be able to leverage its wonderful facility and turn it into a beautiful, deluxe Bed & Breakfast catering the entire city. This will be done through the commitment and business skills of the two partners. It is expected that the Bed & Breakfast will be doing so by the third month in operation and will make reasonable returns by the end of year one.

Organization Structure

Organizational structures trys to explain the relationships between authorities and communication lines in the organizations hotels (Kotler ‘Principles of Marketing’ 20-50). Organizational structures within companies cause or allow views to be brought forward, or presented as a model to be studied on how those businesses are managed and run.

If an organization has a clear framework/structure put in place, it is made very clear within the departments in the organization on who does what and so forth thus leaving no room for sloppy work and blame games erupting due to unfulfilled objectives. Different organizations employ different organizational structures depending on their objectives and what they intend to achieve after a set period of time.

These structures may either be flat or tall for example the Hotel’s organizational structure takes a flat format. The organization structure of the hotel is a flat structure that will assign the duties of management between all the partners. It is vital that entrepreneurs closely monitor start-up businesses during their initial years of operation by dedicating a lot of time to oversee their smooth running.

Therefore all the employees and supervisors will be directly answerable to the partner who is sitting as the managing director. It will therefore be the responsibility of the partners to perform all relevant managerial duties and consult with other partners to make well guided decisions.

Personnel plan

The final personnel mix will consist of both permanent and part-time employees thus enabling the company save costs. If work and demand for lodging facilities increase according to demand and supply patterns depending on the situation, the company may the make a decision to lay off or employ more part-time workers. The existence of permanent employment contracts goes ahead to instill loyalty amongst employees which can be used to the benefit of for the hotel.

II. V Services

The C-Zones facility offers three-star lodging on the amazing Dubai coast. We are an all inclusive B & B facility with a full complimentary breakfast served every morning. “Impeccable rooms, each with its own theme are ready to embrace the individual who is looking for solitude, or the more adventurist person who likes to be active.” We organise trips around the city for those who are interested.

Market Analysis Summary

The C-Zones B & B has various target groups that it is intending to draw. The first are the local residents who just want to have a weekend getaway. Kotler, (141) notes “they may have activities planned for the weekend on the coast or just chose to relax in a homely environment.

The second category is the travellers and vacationers who choose to stay in Bed & Breakfasts instead of a hotel, or onboard their boats.” While others just want to experience a themed weekend. However, our target customer could include others outside these categories though these are our target groups.

Market Segmentation

Our clients can be generally grouped into three categories:

Weekend getaway customers. These local residents looking to get away from their life so they come to the C-Zones B & B to escape.
Travelers/vacationers.
Experience Executive B & B Service. These people are mostly delighted returning customers who will be looking to experience our deluxe services.

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