Development of a Business Plan Assignment Sample

Introduction - Development of a Business Plan

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Products:-The product portfolio for current business is to introduce new adventurous trip by hiring skilled and competent personnel. For this purpose, on the job and off the job training will be provided so as to increase their expertise (Hughes and Carlsen, 2010). However, the services are delivered by targeting upon youngsters particular focus upon couple and groups. The features of services are explained as follows-

• Customer pReferences will be known in advance related to tour packages
• The current products consist of different types of travel services
• The present product will derive benefit in term of higher customer base because of personnel with higher skills will be added for rendering services
• Adventurous trips will not have adverse impact on environment, in fact, RACT destinations focuses on meeting demand of buyers by discovering new destinations and developing the same
• All the regulation related to the development of tour packages and other aspects are considered.
• Employees will be hired on local as well as the International basis on the basis of specific terms and condition. This term will provide extra monetary as well as non-momentary benefits for personnel.

Current situation:-The present state of travel and tourism sector is showing a slow growth rate of visitors. However, they issue might be related to the poor marketing of products and services because of less skilled personnel. In this respect, a corporation can use effective strategies to attract more buyers and increase their attention towards natural beauty of Tasmania.

Key product, strategies and market issue

The key strategies applied for increasing sales turnover of the business is an association of personnel who have knowledge of the diverse field. Furthermore, a key product such as adventurous trip will be offered by them. It can be critically evaluated that, higher competition in the marketplace might affect the performance of new services (Zeppel, 2012). This is because a team of newly hired personnel will be involved in designing new tour packages. Due to this, business needs to select cost-effective sources of human resources. For example, the internet is referred for selecting suitable personnel. At the same time, referral group will be considered as a key strategy to approach potential employees for better performance of business.

Performance measure and targets

The performance of new services and associated personnel will be measured on the basis of SMART objectives. It reflects that increased customer base and a higher rate of return are considered as the potential aspects. It focuses upon selecting appropriate strategies so as to deliver good quality of services to a large number of visitors.

• Marketing:-The marketing of new services that are related to the adventurous trip will be done by using upgraded technologies. In this regard, internet and mobile applications are used so that accordingly all customers can be targeted at a time. Apart from this, newly launched services are promoted through effective advertisement so as to attract potential employees. Moreover, social media marketing will also be done so that youngsters across the globe can be informed related to the availability of good quality of services. Not only are this but services promoted with the help of effective strategies like discounting.
• Reasearch and Developement:-The new adventurous trips are introduced in the marketplace after conducting different kind of research and development activities. For this purpose, market research is conducted under which potential buyers are approached from gathering primary data,. Furthermore, secondary data are also collected by conducting PESTLE analysis. At the same time, competitor analysis is done so that strategies adopted by them can be tracked in order take appropriate action.
• Production and Delivery:-The total packages of services include country club Tasmania, Tassie Bound adventure tours and adventure island tours as well as Bonorong wild life Sanctuary will be included. These attractive destinations are designed in a package and accordingly, visitors will be communicated with the help of effective mode. In this regard, particular mobile application of adventurous trip would be prepared and promotion of the same will be done on social media and other related. In this regard, following mentioned sources are needed-

In order to deliver the adventurous trip, different other aspects are considered such as the need of one computer system and quality control system. For this purpose, project management techniques are applied in order to control the quality. At the same time, research and development activities are carried out so as to accomplish task related to delivering good quality of services. In addition to this, risk management is applied for assessing the issues which are being faced while rendering good quality of services to end users.

Supply Chains:-Supply chain plays important role travel and tourism sector under which business focuses on arranging a different kind of facilities. However, hotels and other related resources will be availed with the help of long-term contract. Owing to this, travel agencies, restaurants, hotels and tourist destinations are key suppliers who play a major role in delivering good quality of services. Thus, key strategies will be establishing long-term contract with hotels and restaurants. Moreover, new hotels and destinations are discovered so that accordingly visitors get good quality of services.

Business Systems and Processes:-According to the analysis of internal and external environment, it can be said that proposed business needs to focus on quality and risk management. It would be effective to reduce potential risk related to issues which are being faced by customers. Apart from this, financial management is also done by approaching cost effective sources. However, cost effective sources are considered in all business activities whether that is production, HRM and marketing or finance. This in turn management can reduce cost of production and increase overall rate of return.

Stakeholder Relationships and Alliances:-The stakeholders included in current business will be shareholders, employees and customers as well as suppliers and government as well. All these stakeholders are approached by using effective mode of communication such as formal meeting and social media marketing as well as other related aspects like E-mail. Apart from this, annual report of business will be presented in publicly available parties so as to related stakeholders can be collected all record. It would be effective for them assess the performance of business and new strategies. Moreover, ideas and suggestions of stakeholders will also be taken so that business can bring improvement accordingly.

Organisation and Management:-In terms of organisation and management, it can be stated that a team of personnel's will be developed. In the modern era, organisation and effective management of business operations are very essential for companies as it results in accomplishment of business objectives and aims in the best possible manner. In order to sustain in the highly competitive marketplace, the selected business enterprise will keep carrying out changes in its management practices at regular intervals. It can also be stated that participative style of management will be used and the services will be delivered with the help of a vertical organisational structure.

Environmental and Social Impacts:-It can be stated that at the time of carrying out business practices, it will be required by the proposed business to take care of different social and environmental factors. In the modern era, the competition among businesses in the travel and tourism industry has become highly intense and therefore it is no longer easy for firms to attract new customers and retain the old ones. Social impact on the operations of proposed business will be that the firm will need to make modifications in the present services as per changing need and demand of people in the market. This will support in developing sense of satisfaction among customers and will also contribute to long-term development of the proposed business. On the other side of this, it can be argued that while delivering travel and tourism related to services the proposed business will need to ensure that no negative impact is created on the environment. To retain the workers, the democratic style will be used, and decisions will be taken on the basis of views and opinions provided by them. The rationale behind this is that it will support in getting the best possible and reliable information as employees are the one who comes in direct contact with customers. Therefore, the proposed business will be able to gain more accurate and reliable information.

Risk Factors and Regulatory Compliance

The main and most important risk associated with carrying out business operations is related to changes in taste and preference of people in the market. The proposed business may start facing issues and challenges in increasing sales in situations where the demands and needs of people in the market tend to change drastically. Apart from this, changes in the economic environment all across the global is another key risk associated with the proposed business. In order to mitigate or deal with all the risk mentioned above, efficient risk management systems can be developed by the selected business enterprise to offer different tour related services to travellers in the country. A change in the norms and regulations that is developed by government and tourism authority is another major risk which is associated with the introduction of new services in the marketplace.

Corporate Governance

 It can also be expressed that at the time of carrying out its business operations, the proposed business will be taking care of areas such as corporate governance. Here, the interests of all the key stakeholders involved will be addressed in the best possible manner. For example, customers will be provided with services according to their changing demand, employees' views and opinions will be taken into consideration, etc. Other than this, the proposed business will also make sure that the interest of stakeholders such as investors has been taken care of and satisfied in the best possible manner. It can be expressed that all these practices will contribute to long-term growth and development of the proposed business.

Financials

Note: Financial statement is mentioned in appendix

Assumptions

• Revenue of business is expected to increase by 20%
• Marketing and promotional expenses is assumed to rise by 8%
• Expenses on development program is expected to increase by 12%
• Wages and salaries is predicted to rise by 12%
• Maintenance expenses is anticipated to increase by 1%
• Interest expenses is considered to be charged @ 15%
• Budget for retention of workforce is also arranged under which business will focus upon increase their expertise and offering them reward as per their performance

Application of Investment Funds

The sources of funds will be retained profit and a bank loan. It would be effective for RACT destination to gather appropriate money for launching new services and hiring potential candidate to deliver the same. These resources are selected because the time taken to acquire the same is very less where management of business will not face any issue. Apart from this, retained profit can be acquired in relatively less time span. In addition to this, the majority of a fund will be used at the single time in order to design package and hiring employees. Apart from this, strategies are applied for retaining existing staff for which monetary and non-momentary reward will be used. This aids to retain personnel for longer time span and determine growth and success of business. Therefore, selected sources of finance are most effective for implementing the business idea.

Strategic Action Plan

The strategic action of the plan of current business will cover following activities along with different schedules. It enables the business to cater the need of different stakeholders and implement the business plan in the relatively short time span.

Improvement

The current business plan will be done by taking into account objectives and aim. However, any improvement will be made on the basis of results or information extracted from consumers. This proves to be effective in accomplishing long as well as short-term objectives. However, continuous monitoring will be ensured with the help of modifying current strategies in the light on feedback and suggestions from related parties.

Appendix: Income Statement

Refrences

Journals and books

Alant, K. and Bruwer, J., 2010. Winery visitation sets: Intra-regional spatial movements of wine tourists in branded regions. International Journal of Wine Business Research. 22(2). pp.191-210.

Brinckmann, J. and Kim, S.M., 2015. Why we plan: the impact of nascent entrepreneurs' cognitive characteristics and human capital on business planning. Strategic Entrepreneurship Journal. 9(2). pp.153-166.

Drost, D. and Chaney, J., 2014. Core Course Outcomes Assessment and Program Continuous Improvement Using an Integrative Business Plan–an Empirical Evaluation. Developments in Business Simulation and Experiential Learning. 28.

Finch, B., 2013. How to write a business plan (Vol. 35). Kogan Page Publishers.

Hughes, M. and Carlsen, J., 2010. The business of cultural heritage tourism: Critical success factors. Journal of Heritage Tourism. 5(1). pp.17-32.

Migliori, G.B. and et. al., 2014. The European Respiratory Society plans its future: the 2013–2018 strategic plan.European Respiratory Journal. 43(4). pp.927-932.

Wallace, M. and Webber, L., 2010. The disaster recovery handbook: A step-by-step plan to ensure business continuity and protect vital operations, facilities, and assets. AMACOM Div American Mgmt Assn.

Zeppel, H., 2012. Climate change and tourism in the Great Barrier Reef Marine Park. Current Issues in Tourism. 15(3). pp.287-292.

Online

RACT. 2016. [Online]. Available through: <http://www.ract.com.au/#>. [Accessed on 1^st December 2016].

Sector summary 2014. 2014. [Online]. Available through: <http://www.stategrowth.tas.gov.au/__data/assets/pdf_file/0008/89585/Tourism.pdf>. [Accessed on 1^st December 2016].

The Royal Automobile Club of Tasmania Limited. 2015. [Online]. Available through: <https://www.ract.com.au/SiteCollectionDocuments/RACTAnnualReport2015Final.pdf>. [Accessed on 1^st December 2016].