International Business - Seting Up hotel in Chile

8/4/2019 International Business - Seting Up hotel in Chile

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ByMs. Veena Rani (Chairman)Mr. S.Venkateswaran (CEO)

Mr. Sumit Raj (CFO)Mr. Hemant Khosla (CMSO)


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` Business Environment in Chile` Trade Agreements of Chile` SWOT Analysis` Market Analysis` Advertising and Promotion` Human Resource Planning` Financial Analysis` Conclusion

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` L ocation: Southern South America.

` L and Size : 748,800 sq km.` Population : 16,970,265

(2010).` Capital : Santiago` GDP of Chile : US$ 231.302

billion (in 2010 ).

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` 1971- 1990 : Military Dictatorship.

` Democratic System.

` Transparent Governance System.

`

Simplified Procedures.

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` Homogenous Culture.

` Religion.

` Family orientation is high.

` L anguage.

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` N eoliberal Policy.

` GDP growth at 5.2% in 2010.

` Unemployment rate: 7% as of 2010.

` Inflation : 2.7%.

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` Civil L aw System.

` Decree L aw 600 (D. L .600).

` Foreign Investment Committee (FIC).

` The Corporate income tax rate = 35%.

` Foreign Corporate : Taxes vary depending on thesector.

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` FTAWith Canada, Mexico, and Central America(1990s)With the European Union and South Korea (2002 )With Australia, and expanded agreement with China(2008)In recent years with N ew Zealand, Singapore, Brunei, India, China, andmost recently with Japan

` Bilateral trade agreements with Venezuela, Colombia, Ecuador andIndia.

` An association agreement with MERCOSURArgentina, Brazil,Paraguay, and Uruguay (Oct 1996)

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STRENGTHS

Diverse PortfolioLow Recruitment expensePrior experience

WEAKNESSES

Lack of global presenceLack of well established

brand name

THREATS

Recession

CompetitorsBorder issuesLanguage

OPPORTUNITIES

High disposable income

High spending on tourismStable & supportive political

conditionsGlobal connection

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` Business Strategy

` Competition

` Market Potential


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` Television advertisements

` Print Media

` Film marketing

` Film Ads

` Radio Channels


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GREE N PARK


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Green Abode A strange, mystical adventure at the very, every end of

the road


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Green Abode


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` Online marketing` Collaborations`

Discounts` Billboards` Exploring mobile market


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Already having about 130 employees includinghousekeeping staff We require about 50 more employees

Planning to hire from L es Roches International Schoolof Hotel Management, ChileInitially part of workers will be employed on temporarybasisManagement team will be hired on full time basisReallocation expense for management team fromIndia


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Sumit Raj - CFO

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` Initial Investment = $4,000,000

` Renovation = $ 2,000,000

` Relocation Expenses = $1,000,000

` Working Capital = $ 4,000,000

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Year I Year II Year III

Total Sales Revenue 16,661 21,488 25,815Cost Of Sales 5,998 7,646 9,294

Gross Margin 10,663 13,842 16,521Operating Expenses 10,796 12,978 15,015General and AdminExpenses 1,166 1,289 1,419Profit Before Tax -1,299 -425 87Tax @ 42% 0 0 0Profit After Tax -1,299 -425 87

in 000 USD


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` Contingency Plan

` Conclusion

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THAN K YOU

Documents

International Business - Seting Up hotel in Chile