STCSOUTH THAMES COLLEGE

Name: Kowshick Ahmed

Student Number: 1323795

Course: HND in Travel and Tourism

Unit: 11 Travel and Tourism Entrepreneurs

Submitted To: Harpreet Singh Kohli

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Business Plan Contents

PARADISE HOLIDAY VILLA

Executive Summary---------------------------------------------------------------------------------------------------------------3

Business Objectives --------------------------------------------------------------------------------------------------------------4

Business Aim-----------------------------------------------------------------------------------------------------------------------5

Key Personnel ---------------------------------------------------------------------------------------------------------------------6

Business Description-----------------------------------------------------------------------------------------------------------7-9

Tourism Market in Dhaka---------------------------------------------------------------------------------------------------9-10

Unique Selling Product (USP) ------------------------------------------------------------------------------------------------11

Porter’s Five Forces-------------------------------------------------------------------------------------------------------------11

Market Research & Analyze---------------------------------------------------------------------------------------------------12

Market Description---------------------------------------------------------------------------------------------------------12-13

Market Segmentation------------------------------------------------------------------------------------------------------13-14

Target Market--------------------------------------------------------------------------------------------------------------------14

Analyze Competitor-------------------------------------------------------------------------------------------------------------15

Diverse Competency------------------------------------------------------------------------------------------------------------16

Strategies--------------------------------------------------------------------------------------------------------------------------16

Market Plan-----------------------------------------------------------------------------------------------------------------------17

Promotional Strategies---------------------------------------------------------------------------------------------------------18

Financial Sources----------------------------------------------------------------------------------------------------------------18

Cash Flow (2018) ----------------------------------------------------------------------------------------------------------------21

Cash Flow Five Years------------------------------------------------------------------------------------------------------------22

References------------------------------------------------------------------------------------------------------------------------23

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Executive Summary

Bangladesh has intentional position in ASIA whereby business from Pakistan and India see great potential. With inexpensive employee and impartially secure situation, Bangladesh has become low-cost industrial hub and many industries from adjacent countries have been repositioned to Bangladesh. India was the important source market for advents in Bangladesh 2012 and the main reason for this are the vocation links between the two continents.

Bangladesh is currently not a significant world endpoint country. With two major cities Dhaka and Chittagong. It lacks both an organization (road and rail network, airfields, manure system). Most global visitors from the industrial nation of the world are there for corporate or as optional if from the United Kingdom to stopovers friends and family.

Directly Bangladesh has direct contribution to Travel and Tourism to GDP, it was BDT 193.0bn (2.1%) in 2012 and is forecast to raise by 7.7% in 2013 and raise to 6.4 pa, from 2013-2023 to BDT 384.7 billion in 2023.

Bangladesh Travel and Tourism Business is being developing day by day, but internationally it is not that much developing. Because lack of communication system, better accommodations for inbounds tourist and experience travel agency and travel guides. But in spite of having those problems Bangladesh Tourism Board are working hardly to develop their Tourism sites. Dhaka is the capital of Bangladesh. Though it is one of the Tourism Place for other continent of Bangladesh; my Business idea is to build a Tourist based Hotel in Dhaka at MIRPUTR, because all inbound tourist they don’t have interest to stay here for better hotel as they want. Though Dhaka is a capital city but it doesn’t have good accommodation hotel for Inbound tourist, so my business will based on these inbound tourism to build a better accommodation for them and this Hotel will be an Enclave hotel for all types of tourist as Bangladeshi tourist or tourist from other countries as well.

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Paradise Holiday Villa

Business Objectives

Tourism Business in DHAKA city is being growing day by day by attracting the tourist sites of Dhaka. But Tourist business in Dhaka city need to develop more to get more tourist as their guest, to get more International money and to make DHAKA as a tourist sport in front of other countries. Paradise Hotel Villa will be one of the Tourist hotel as well as serving customer by providing better facilities and providing customers with good scenario of DHAKA Tourism. So for that, our aim of this Hotel business will be attracting more International tourist to stay and have a good experience about the capital of Bangladesh DHAKA and spent their money on this Tourist attraction. But my main target will be satisfying our customers though they are Inbound or Outbound tourist. But primarily my business aim will be adding value and in private sector this will involve to make profit. To achieve these objectives and aims for my business I will have some strategies to get them, those will be:

Get 10% Market Share: By attracting tourist with more facilities and providing better service by 2018 I will have 10% market share in Tourism Sector.

Creating 1000 Jobs: After starting my business I will need more people to run this business. By this people will get opportunity to get employee themselves. And it will create nearly 1000 jobs for people.

Opening Two-Three Branches in Five Years: As a new entrant in business as a first step I have to make my position to make profit. After that my second step will be expanding my business by two/three branches in DHAKA city.

Increase 35% Profit in 2nd Year: Any business takes one year to get market position, so when I will get market position my aim will be increasing profit by monthly, in second year I will increase this profit nearby 35%.

For my Hotel Business I will named it as Paradise Holiday Villa that will be Enclave Tourism Hotel and it will be a Tailor Made Hotel as well. Because people from all around the world wants to spend their time for holiday and they are ready to pay that much for their travelling. But Hotels of that city they are not aware about their customers and not aware about Enclave and tailor made tourism as well. So as a business man my target is my customers, to satisfy them, providing them with all types of facilities what actually they need. And make a new Image for Travel and Tourism in Bangladesh.

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Get 10% Market Share.

Creating 1000 Jobs foe Unemployement People.

Opening Two-Three Branches within Five Years.

Increase 35% Profit By 2nd Year.

Business Mission

For getting more popularity and better position in Tourism we need have some business mission so we will have business mission as well. Without mission and target it is impossible to reach that goal. Paradise Holiday Villa will provide better service’s than other Hotel’s in Dhaka city. It will be one of the one of the best tourist hotel in Dhaka city by providing better services and providing customers with good services. Aim of Paradise Holiday Villa will be;

State-of-the-Art Living: People from all over the world visits rapidly, to spent their holiday or leisure time. Paradise Holiday Villa will give tourist a heavenly view to their travelers by providing the natural beauty of Bangladesh. So, tourist they have to come again and again to enjoy this beauty.

Rapid Advancement in Technology: In business I have to face competitors, and I have to be unique than others, for that I will take more responsibilities in Technology.

Such as; In front of hotel there will be no guards, it will be electronic system, or they will contact with staff by using telephone. That we will provide in front of our hotel.

While travelers will enter their room door will open by itself, travelers will be allow to switch off/on light-fan everything by remote.

Employee Satisfaction: Employee who will work for my organization they will get holiday pay, even though they will get promotion every year based on their performance, making better working environment for them.

Higher Customer Service: For my business customer is my king, till they are happy I will be able to make profit. To make them happy I have to make sure about my customer service. I have to make sure that they are getting better services. Whatever they are asking, providing them with those as soon as possible. Along that, when they will come to our hotel welcoming them with greeting card.

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Business Mission

State-of-the-Art Living.

Rapid Advancement in Technology.

Employee Satisfaction.

Higher Customer Service.

Key Personnel

Details of owner(s): Obviously though it is Travel and tourism business so my first target is that, there will be no partnership but in case if I need financial support from anyone then I will include partner but it will be blood related person, they have to be from my family, such as my father or my younger brother and so on from my family as a partner.

Details of Owner: Kowshick Ahmed.

Name: PARADISE HOLIDAY VILLA.

Place: DHAKA (Capital of Bangladesh)

Key Skills Brought to The Business: Customer satisfaction and make a new image for Travel agency.

Other Key Personnel (Including Shareholders):

Name: MD. Farid Ahmed, Abu Hena MD. Ferdous.

Relationship: Family Members (Blood Related).

Business Experience: MD. Farid Ahmed (Five Years as a Hotel Owner).

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Business Description

Paradise Hotel Villa is a business proposition which I am proposing where I want to make it as a tourist hotel for all types of International and National tourism, along that for all ages and all types of people. People living and visiting Bangladesh come to the Capital city DHAKA to spend their HOLIDAY times and their leisure time as well. But the fact is that, they can’t get a better place to stay and have to good time. On the other hand hotel business in Bangladesh; owner of any hotel they are facing various types of problems such as quality problems in hotels, Market Competition, Better facilities, Political Problems, Cultural Problems, Financial problems and so on. Bangladesh is a nature of beauty and it is Story of nature. But most of the tourist spots are in DHAKA the capital of Bangladesh, such as; DHAKA is one of the most historical place and natural beauty of world. Dhaka it has lots of Historical Places, Sculpture, House of Kings of ancient times, world’s largest sea beach Cox’s Bazaar, National Botanical garden, National Zoo. These places are not that much far than each other but among these places there is no Hotel for travelers to stay and spent their time. But the fact is that, hotel owners though they are having a lot of problems they are not aware about their reputation and their natural landscape that they can use to attract customer. Though my business is a Hotel business which will be named as Paradise Hotel Villa, which relates to paradise for tourist visiting Bangladesh. This hotel will take place in MIRPUR the center of DHAKA. And this Hotel will include some exclusive factor than other hotel, such as;

Enclave Tourist Hotel: Tourist come from one destination to another to spent their holiday, but sometimes they don’t know about this place as much they know about their local area. Sometimes it is quite impossible to take everything that you want to take everything with you. So Paradise Hotel Villa it will be a Enclave Tourist Hotel, so tourist when they will arrive in this hotel from that time they don’t have to go outside for their necessary things as want or they need which is important for them. For instance; Coffee shop, Clothing Shop, Food shop, Beauty Parlor for Women’s, Cultural Show based on Bangladesh, Swimming Pool, Spa and so on. So, if any customer they want to relax they can do it inside of this hotel so it will bring extra income for that hotel as well. Still now not only in BANGLADESH but also in all ASIAN countries they are not aware bout enclave tourism. If we can start this tourism business through Paradise Hotel Villa then we can attract more tourists from DHAKA and from other continent of ASIA as well. As a graph we can predict yearly how many tourist we can attract then in our hotel, in 2018 our prediction is that we will have 10,000 Tourist as our guest, next following year in 2020 we will have 17,000 guest and in 2025 hopefully we will have 2050 Tourist as a guest in our hotel, below there is a flow chart of that;

Graph; Prediction of Tourist

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Tailor Made Tourism: When this Hotel business will be repudiated to customers, then after management meeting of hotel we will provide Tour packages to our customers. And obviously it will be travel made tourism. Tourist how they want to visit and places they want to visit it will be available for them, and cost will based on the prices and packages, such as; Family Package, Student packages, Golden Package, Silver Package. Included packages will be very from another.

2018 2020 20250

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

Paradise Holiday Villa

Tailor Made Tourism in DHAKA

Now this is 2014, and this era is faster and more developed than past. In a research (2011) it is shown that types of people are travelling most. If we take a look below pie chart then we can see what types of traveller travelled most last year;

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2018 2020 20250

500

1000

1500

2000

2500

202520202018

Fig: Types of Travellers

In above pie chart it is showing that 50% people those are middle age married/divorced/widowed with independent children they are travelling most than other group, where young and single people with no responsibilities are travelling only 30%, on the other hand married/divorced with no children are travelling less than others.

So, my target market for tourist will be Family and students because now days these types of travelers are travelling most than other.

Tourism Market in Dhaka

Dhaka is the capital and one of the largest City of Bangladesh. It is well known to ASIA by its colorful history and rich cultural traditions. It is known worldwide as the city of mosque and natural landscape. It is located in the center of the country. And along those, it made colorful itself in six seasons differently. Along that, Dhaka has most popular paces to visit and get good memories, those are;

Pic; Tourist Places in Dhaka

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Ahsan Manjil Lalbag Fort Central Shahid Minar National Museum

Mukti Zoddha Museum

Bangabondhu Memorial Meseum Science Meseum Poet's Graveyard

Ramana Children's Park Suharwardy Uddyan Banga-Bhaban Parliament house

Novo Theatre Curzon Hall 1857 Memorial

Thomsen (2010) argued that although Bangladesh is still in the nascent stage of developing and international tourist industry, responsible for hospitality industry could be one solution to the many social and environmental challenges that the country is currently facing. According to World Travel and Tourism Council (2010) the Travel and Tourism Economy is forecast to grow by 4.4% per annum in real terms between 2010 and 2020, supporting over 300 million jobs by 20020.

According to Bangladesh Monitor (2010) the Bangladesh Protected Tourism Area and Special Tourism Zone Bill 2010 was passed in National parliament on June 27th 2010. The bill was introduced with a proposal to declare such areas as tourism protected areas through gazette notifications. The bill proposed special tourism zones and control and run the areas under initiatives of the government or non-government and autonomous organizations, statutory bodies or individuals.

The contribution of travel and Tourism to gross Domestic product in Bangladesh is expected to raise from 3.9% in 2010 to 4.1% by 2020.

Year Arrivals[Millions]

Change[Percentage]

Receipt[US$ Billion]

Change[Percentage]

2003 697 --- 524 ---2004 761 9.18 633 20.802005 803 5.22 680 7.422006 847 5.48 742 9.122007 903 6.61 856 15.36

But the fact is that most of those places are in Mirpur, but in Mirpur there is no Hotel for tourist to stay. So if we can make our Hotel in Mirpur so we can attract more people and can make more profit.

By references of WTO; in 2010 Dhaka city got 1, 50, 00 tourist which been increased in 2012, and it became to 2, 00, 23, by this references it can say that Tourism in Dhaka city is increasing day by day.

Science Museum Novo Theater Ahsan Manjil Banga Bhaban0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Tourism in Dhaka

201520122010

Graph; Increasing of Tourist in Dhaka

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Unique Selling Product

Before we start to sell our service to any customer, we have to sell our self on these. It is especially important when our product or service is likely similar to others around our business. So Paradise Holiday Villa needs to be one-of-a-kind. Key of any effective selling is advertising and better marketing that known as Unique selling product .Many organizations with many years with unique selling products are taking more years to make a product as a unique which will make their selling product high. As a customer when they book any hotel they don’t know about the place and the service of the hotel is providing. Paradise Holiday Villa will provide their customers to check everything before they book that hotel. Paradise hotel villa will include enclave tourism, in here they don’t have to be worry for their necessary things, they will get everything whatever they want, such as Clothing shop, Swimming pool, Gym, Sports Center. So, I think that it will attract more customers than others. So, as a new business our unique selling product will be Online selling, such as-if anyone book our hotel through online then they will get 35% discount on food, along that seasonal selling as well.

Porters Five Forces

Porter’s five forces model for inexpensive investigation for tourism sector of competitive analyze is done for tourism segment of the republic which is given below:

Competitive Rivalry between Suppliers: Both government and private ingenuities for emerging commercial actives in the tourism subdivision should be utilize to deliver better facilities to the tourism. Initial from natural landscape, ancient places, good hospitality and health organization, tourist for spiritual places performances must be decided. We have to make sure that, prices for tourist related products we are charging less than neighbor countries.

Threat of New Entrance: In tourism business of Bangladesh the secluded and distant depositors are unwilling to invest in tourism industry. We are new in Travel and Tourism market in Bangladesh, so we have to be aware for new entreats. When new entrants come in market any investors can easily chose their plan and invest their money on that project, so, we have to make sure that while new entrants are coming to market we are aware about that, and use are

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Discount For

Studernts

Online Selling

Seasonal Selling

Gift Voucher

taking better steps to protect them to keep our travelers to come DHAKA and to stay in our hotel as well.

Bargaining Power of Buyer: Tourist is the buyers of this industry. They should barware about the facilities and the product with low prices and higher qualities. We have to inform our travelers about our facilities and our updates. In terms of local tourist, we have to make sure we are providing our latest facilities by advertisement and update through internet.

Power of Suppliers: Departing tourist from China is expecting to surpass 100 million of traveler in next four years. India is also stirring everywhere as tourist. So we have to attract our tourist with improve relationship and communication system with China and India. It will be considerate for us to tempt additional tourist. Tourist will be more striking by our better facilities and inexpensive rate.

Market Research and Analyze

A new kind of hotel business is going to be introduced and developed in the market. Necessary information has been gathered through in-depth interviews. A survey has been conducted to get all the required information from the customers about their view, ideas, demands and needs. This information will certainly be helpful for knowing the target market and better prospects of the new product.

For better business we done some market research those are;

Gathering Information about Competitors: When we will start our business in Mirpur, firstly we will gather information about other tour operating services in DHAKA. Types of services they are providing. What types of facilities they are giving to travelers. Facilities for international tourist. How often they are visiting any places.

Market Competition: Before I start my business I will take an over view of selected are, about the business competetation, location I choose, is it will be beneficial for my business, about the communication system and transport system of that place.

Data Analyze: I will be a new entrant of travel and tourism business, before I start my business I have to analyze about the tourism spot. Such as- which place is more attractive? Location? And so on.

Market Description

Throughout last five years (2006-2010) Bangladesh conventional a total number of 15, 29, 000 tourist and made US$ 413.00 million. Alongside, WTTC statistics exhibited that in 2011, travel and tourism straightly reinforced 1,329,000 jobs (1.9% of total employ) in Bangladesh. This is predictable to rise by 3.6% in 2012 and 2.9% a year to generate 1,840,000 occupations (2% of total employ) in 2022. The country is tiresome from the examination of this manufacturing to charming more travelers’ to its journey's end and to make more overseas currency from this sector. This statics on this manufacturing shows that both the influxes and the paychecks from tourism in Bangladesh have augmented over the past.

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Bangladesh has a population of about 150 million people. The current market size for hotel business industry is near about 50,000 and the number is increasing at a large rate. There is wide market open for various convenient types of services. Consumers are more conscious about the market situations along with the services from hotel. Literally, there is a better prospect open for the customers of “Paradise Hotel Villa”. Among the entire segments that we have on, a certain amount of customers will prefer our Hotel the most and our services given as well.

Market Segmentation

After an in depth observation and analysis of the market along with the environment of the market we have come across to the following segmentation:

Fig: A graphical presentation of Market Segmentation

Market segmentation plan plays a vital role in achievement of tourism promotion purposes. A tourist market may be demarcated consistent to each tourist product. In that sense, we can describe market is a set of real and possible buyers of all product. There are five segmenting variables; Geographic, Demographic, Geo-Demographic, Psychographic and Behavioral (Kotler ET al.2002). Dhaka Parjatan Corporation (DPC) expresses the policy to control the travel industry. To segment the bull's eye market it highlight on two variables those are (i) Demographic Segmentation and (ii) Psychographic Segmentation. Demographic segmentation is typically large for the reason that in this segment tourist invention can attract a partial number of crowds and age delivers us depth material of tourist. By this segmentation we comprehend about tourist’s individual attention, incentives, ambitions and feelings etc.

Demographic Segmentation for Global Tourists:

Ethic Classify and Nationality: Maximum of the tourist upcoming from Europe, South Asia, USA, Gulf Cooperation Council Countries, East Asia, Australia and so on.

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TourismMarket

SegmentationGeographicDemographicGeo-DemographicPhychographicBehavioral

Age: Traveler groups are usually young and central age people; now and then kinfolks with children and even discharged persons are coming from dissimilar places.

Sex: Man, Woman both equally visits DHAKA. Religion: Muslims, Hindi, Christian are absorbed in their worried spiritual sites in DHAKA.

Psychographic Segmentation for International Tourist

Essentially demographic segmentation manages a massive and informal to recognize but the variables of psychographic segmentation is so dep’t that is desirable to travel. The breathing design, day to day actions and the entertaining item expended by the tourist is more imperative. For psychographic segmentation clienteles special attention, pleased, sentiments and arrogances in the direction of different types of holidays is significant. Therefore, DPC is trying to segmenting the market on the foundation of the tourists Psychographic characteristics but not achievement. If they could distinguish amongst these sections, they would be able to select suitable sections and grow as well as instrument selling strategy for each selected objective group.

Target Market

Target marketing includes evaluate each market section desirability and choosing one or more segments to enter. In that phase DPC distillate its marketing exertion on nearest tourist places in Dhaka.

After the investigation and analyzing all the segments, the target market has been determined in accordance with the category of the product. The target consumers for “Paradise Hotel Villa” are people, health aware individuals, sport personalities and tourists. The company has made a decision about charging

Tk.500 Pound for each person, Tk. 2,500 Pound for Family (4 people only) Tk. 4,000 Pound for Inbound Tourist, Tk. 3,500 Pound for Enclave Tourism Service, (it may vary from service to service) Tk. 2,000 Pound for Tailor Made Service, (Depends on Customer how they want)

In comparison with the price and service received, it is obvious that the service received is better in value. Thus, the price we are charging is fair enough or justified.

The following graph provides a clear idea about the target market:

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42%

35%

21%

2% Target Market

Tourist (Inbound/Outbound)FamilySingle Parents (Divorced/Widow) Student/Other

Fig: Pie Chart of Target Market

Tourist -42% Family-35% Single Parents (Divorced/Widow)-21% Student/Other-2% Tourists: Every year 1, 54,000 million number tourists and visitors come to visit Bangladesh.

Along that people from village or other continent of Bangladesh come to Dhaka to visit the Natural Beauty. So, we will introduce “Paradise Hotel Villa” to them by TV ads, Internet, newspaper and so on.

Family: People of Bangladesh used to travel a lot when they used to get holiday from their office and children’s after finishing their study. That time they used to travel a lot and that time DHAKA it turn itself as Treasure box of nature, (at the end of November). This time traveller travel a lot so they can get Family package offer from “Paradise Hotel Villa” and easily spent their holiday time with enjoy for sure.

Single Parents: if we take a look in above pie chat then it will be clear to us, to make sure that nearly 21% single people are travelling from here and there and they are not worry about money, all they worry about their memory how much they can travel.

Student/Other: Now days student not only from ASIA but also from other countries are travelling for their study, because of experiencing something new. So, our target will be student there we are not expecting that much but we can expect some international student as our guest. For example; while they are coming to Bangladesh to visit and staying in “paradise Hotel Villa” providing them with a travel guide.

Ordinary Customers: Apart from all the segments stated above, general customers also capture a huge share of the target market Competition

As before I described that, In Mirpur nearby there is no hotel, not a single hotel to stay for tourist. If I have competition, so it can be with food shop, because in that area there are some food shop those represents BANGALADESHI culture. But in any business competitor is essential. How far I think that, competitor will bring me good favor, because than I have to take more steps to meet my goal.

Analysis of the Competitors

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There are some repudiated Hotel businesses in Bangladesh in Dhaka. Some of them are doing this business more than 20-30 years; some of them are international hotel business. But none of them are providing Enclave Tourism Service or tailor made Tourism or Customer Care services, while “Paradise Hotel Villa” is providing them, but I am seeing my competitor’s as my luck, But my competitors Hotel can be;

Diverse Competency

There is a huge chance that all these established companies can make an attempt to compete us by introducing new hotel business in the market. But our business is totally new into the market. So we can use this opportunity to gain competitive advantage. If other companies want to introduce some new or similar product like us, they will some tome. In the meantime we can use all the opportunities to create monopoly business. We have another advantage that our price is very much low. We will try to sell the product lower the competitors. Along that, the services we are going to introduce to our Bangladeshi customer such as Tourist based hotel service; it is totally unknown to them and the service they will get from our hotel such as; providing customers with travel guide; make tour for customer as they want it will be a great chance for us to make a better competition with others.

Strategies against the Competitors

To stay ahead from the competition we need to take some necessary steps. Some of the important principles are given below:

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Hotel De Meridian-35% Share On Market.

Richmond Hotel & Suites-20% Share On Market.

Hotel Pacific Dhaka-18% Share On Market.

Tropical Daisy-15% Share On Market.

The Westin Hotel Dhaka-10% Share On Market.

Market Plan

Pricing Strategies

For the development of the service we have to set a reasonable price. For setting a proper pricing policy we have considered some important factors. Now I am going describe all those factors below:

Setting up the pricing objectives: Well, we have decided to take the company into a better position in accordance with market offering. Maximizing market is one of our main intentions. In our perspective, higher sales volume will certainly lower our production cost and will be helpful to create profit for a long run. This low price strategy must be supportive to capture the maximum market share.

Establishing Demand: Each price will direct to different level of requirement and at the same time will have diverse impact on companies marketing goals.

Estimation of costs: We have already settled a price for the service, which I already described above and this price will be able to cover the cost of production, distribution and selling the product. This also includes a fair return from its effort and risk.

Cost Types and The level of production: For providing the service from “Paradise Hotel Villa”, there will be two types of costs included.

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Fixed Cost

Variable Cost

Strategies

Ensure Higher level of

Service to Create Brand

loyality.

Fair and Responsible

Price.

Providing best Quality

Service.

Better Promotion Activities.

Maintaining corporare

social responsibilitie

s.

Building better

relationship with

customers.

The estimated fixed cost for our service for per person is 500BTD each (Food-150 BTD, Beauty, Spa, Swimming, Gaming Zone- 80, Internet, TV, Electricity, Staff, Room Charge- 150) after charging all of this we can get profit 120 each from customer. Above charges is for each person. Some important fixed costs are- machinery, monthly bills, employee salaries and so on, depends on the output.

On the other hand, we have variable cost which includes food, promotions and so on. These costs are likely to be constant per unit production.

Comparison and analyzing competitor’s costs, prices and offer: Our analyzing and investigation on competitor’s price shows that Richmond Hotel & Suites are charging 800 BTD for each person.

Choosing the Appropriate price method: Apparently, we have chosen target costing method for setting the price of our product. This strategy suggests pricing that begins with reasonable selling price on the basis of customers considerations. After this target cost will make sure that the price is met.

Promotional Strategies

Promotional activities have an important role acquiring a strong market position. We need to use and implement four of the marketing promotion tools in order to achieve maximum market share. Advertising on mass media will be very helpful for the promotional purpose.

Advertising: Basically, we will focus on newspaper advertisements, TV commercials, social Medias and Internet as well. Because reaching the potential customers is much easier through these Medias. We are expecting to create a better impact on teenagers and other individuals. We have also decided to put the advertisement of “Paradise Holiday Villa” on neon signs and bill board in some busiest points of the city, such as; Mirpur Stadium, Mirpur Zoo, Dhaka International Airport. Hopefully, we can reach 80% of our customers through these efficient advertising.

Personal selling: In case of a Hotel business such as “Paradise Hotel Villa’ personal selling is considered not that effective. Thus, we will try to encourage convenience store employees for selling our product and at the same time we will ask them to talk about the feature of our product while a customer is interested to buy some packages from them. Regardless, this will help to boost our sales.

Promotional Tools: We have decided to implement some promotional tools such as distributing some free samples on the street and reduce the price during the trial period. This will help the customers to be familiar with our product.

Public Relations: We have some public relation activities in future such as seminars, cultural functions and sporting events to improve public relations.

Customer Service: We will try to provide best service to our valuable customers. We will try to interact with our customers regarding the quality of our product. Any suggestion, ideas, advice related with the product is always welcomed. If any of the product is defected or there is any problem we will be happy exchange the product.

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Financial Sources

For any business finance is a vital important thing, without finance it seems quite difficult to run business ahead. For my Hotel business “Paradise Holiday Villa” obviously I will need finance to run my business. To arrange money any time is a chance for business then I don’t have to look for my finance if I know about my sources; finance sources can be two types those are;

Internal Source of Finance; Internal finance is cheaper, but expenditure of this currency on my business means that I can’t use this money on other project like investing. Internal finance can be;

Personal Saving; My first sources of finance will be my personal saving, because than I don’t have to ask for loan to anybody and I can easily invest my money to business. And advantage of that, profit of my business I don’t have to share with anybody.

Working Capital; when I will start making profit from my business that time I can use my own profit in my business to make it large. And it is totally risk free as well.

Selling Asset; In terms of funding for my business when I will need huge amount of money that time I can sell my house, can, land, machinery and so on to make capital for my business, that will be risk free, quick funding without any hassle for sure.

Loans from FnF; for my business I need large amount of funding, first I will try to manage it from myself, if it is not enough for my business than I have to take money from my friends and family. But in this case, this funding will be for short time because they can ask their money any time they want, sometimes they can ask for profit as well.

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Personal Saving

Working Capital

Selling Assest

Loans from FnF

Sources of Finance

Internal Finance External Finance

If we take a look on internal finance for my business, we can see that we can easily take money for my business, but the fact is that, if I use money from my personal saving than it will be risky for me, because all of my own money will be on risk, Selling assets it comes on the same turn, because I am selling my property to arrange money but in near future if I need money that time I won’t have nothing to manage capital. Loan from friends and family, if I borrow money from them the disadvantage is that they can ask for their money anytime. Working capital is a safe capital for my business because the profit I am getting I am using that money for my business, so I don’t have to aware for money, because it is a profitable business to I can manage money from there easily.

External Source of Finance; this types of finance will come from my outside of my business. It is basically lending from someone else, it usually cost more as interest may be charged. External sources of finances are;

Mortgage: Mortgage is secured a contract that means the loan is secured on property and that the party buying it will not own the property until fully paid. For the mean time my property will be own by someone else who is giving me money, and if I can’t give the money in time, they can sell my property at any time.

Loans from Bank: Normally loans from bank have a repay over a set number of years with interest. That interest I have to pay every month. It can be short term and long term as well. But while I am making profit I have to pay their interest every month with a certain amount of money.

Retained Profit: Profit I will make from Paradise Holiday Villa that I profit I have to re-invest in my business. Sometimes it is used to buy stock, and pay wages on a weekly basis.

Grants: This is one type of money that will be given to firm by the government for my business. But the advantage is that, this capital I do not have to repay.

Venture Capital: While I will need large amount of money than I may have to sell my shares. Some Investor will buy my share and they will ask for profit as well. Advantages of this finance are that I can get money easily whenever I want. But thing is that, my business plan has to be chosen to my investor as well, if they like my plan than they will invest their money on my business plan.

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Mortgage

Loans From Bank

Retained Profit

Grands

Venture capital

If we take a look on external sources of finance for my business then we can see that, we can manage money from Mortgage, Loans from bank, Retained Profit, Grants and Venture Capital. If I mortgage my own property it is my own risk, if I can’t return their money in time then they will take my property so it is risk finance. If we take loans from bank, benefit is that I am easily getting money; risk is also related with bank. But sometimes it will be difficult to get a loan for my business. In terms of grants, this money is paying bye government to a company, I can borrow their money but one advantage is that I don’t have to repay this loan. For my business, for external finance I will take money from grants.

Cash Flow 2018

Cash Flow for

Paradise Holiday Villa

Item January 2018

April 2018

July 2018

September 2018

December2018

INCOMEMarket Stall 20,000 25,000 30,000 28,000 34,000

Cash Balance B/FWD 30,500 --- --- --- ---Total Income 50,500 25,000 30,000 28,000 34,000

EXPENDITUREFood & Beverage 4,000 4,200 5,800 6,300 5,000

Insurance 2,000 2,000 2,000 2,000 2,000Advertising

(On-line ,News Paper)800 1,000 650 --- 750

Transport Cost 700 750 600 800 750Admin and Expenses 1,500 1,500 1,500 1,500 1,500

Bank Loan Repayment 2,000 2,000 2,000 2,000 2,000Rent property 3,500 4,000 6,000 5,000 ---

Equipment for Room 2,000 --- 1,000 --- 800Marketing Department 1,700 1,500

HRM Department 2,000 2,000 2,000 2,000 2,000Telephone & Internet 500 500 500 500 500

TOTAL EXPENDITURE 20,700 19,450 22,050 20,100 14,550

NET INCOME 29,800 5,550 7,950 7,900 19,450

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Cash Flow for Five Years

The following table will show about the expected sales for the next five years.

Excepted Years(Sales Per Year)

January June December

2018 29,800 35,300 42,5002019 35,000 45,200 55,0002020 50,000 53,000 67,2002021 67,000 70,850 75,9202022 72,000 78,000 80,500

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01/01/2018 01/01/2019 01/01/2020 01/01/2021 01/01/20220

10000

20000

30000

40000

50000

60000

70000

80000

0

1

2

3

4

5

6

VolumeClose

Fig: Cash Flow for Five Years (EXPECTED)

Biography

Joseph A. Schumpeter. Capitalism, Socialism and Democracy, Routledge (2012)

Wiltbank, R., Dew N, Read S., Sarasvathy, S., Strategic Management Journal 27(10), 981-998. (2006)

Sarasvathy, Causation and effectuation: toward a theoretical shift from economic inevitability to

entrepreneurial contingency. Academy of Management Review 26(2), (2001)

Dew (2009), Journal of business venturing 24(4)

G.N Chandler et al. Journal of business venturing 26 (2011) (p375-390)

Schumpeter, J.A 1934, The theory of Economic Development, Harvard University Press.

Schurenberg, Eric. “What is an entrepreneur? The best answer ever”. Inc.( 2012).

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Humphrey, Albert. “SWOT Analysis for management consulting”. (2005)

“What is geographic segmentation”. Philip kotler, Kevin Lane Killer. Marketing Management, Prentice

Hall. (2006)

Gregson, Andrew. Pricing Strategies for small Business, Self counsel press (2008).

Philip Kotler and Gary Armstrong, Principles of Marketing , Pearson Prentice Hall (2010).

Sudhir Jain , Managerial Economics, Pearson Education (2009)

Clifton et al. “Target Costing, Market driven product design”, Marcel Dekker,Inc. (2004)

www.entrepreneur.com

www.managementstudyguide.com

www.boundless.com

www.boagworld.com

http://www.youtube.com/watch?v=QNUSIOMb6vI

http://www.youtube.com/watch?v=kAAT4-kmn5I

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