B.E (Intl Buss Environment Analysis MBA Core-C) Ashish Singh

1opic: International Business Lnvironment Analysis
Company Name: SAVOY GRLLNS

Subject: Business Lnvironment

Submitted by: Ashish Y Singh
Class: MBA Core C
Roll no: JJJ88

Submitted to: Mrs. Ashwini

Internat|ona| 8us|ness Lnv|ronment Ana|ys|s (SAVC GkLLNS)

SYW

1able of Contents

Sr.No.
1opic
Page
no.
Lxecut|ve Summary 3
2 Serv|ce |an 46
3 Industry and Market Ana|ys|s 78
4 1arget Market 9
S Cperat|ona| |ans
6 LS1 Ana|ys|s 2
7 Market|ng |an 3S
8 I|nanc|a| |an 69
9 Growth |an 2
Conc|us|on 2


SYW

Lxecut|ve Summary

Savoy Creens ls a Company whlch comes under Servlce
SecLor and PoLel lndusLry lL ls well esLabllshed ln lndla and know for
Servlce AparLmenLs llve SLar PoLels broughL Lhls sLyle Lo cllenLs who
would sLay for a long perlod 1hey reallzed ln Lhe beglnnlng cllenLs
loved Lhe luxurlous servlce buL afLer a monLh Lhey longed for Lhelr
home 1hus a servlced aparLmenL would offer mosL of Lhe aspecLs of
your home Maklng you feel aL ease as Lhough you were aL home
Many corporaLe who Lravel Lo oLher sLaLes or counLrles flnd lL dlfflculL
Lo ad[usL Lo Lhe new culLure and seLLlng lor some Llme Lhe hoLel
servlce ls welcome buL laLer you long Lo dwell your own sLyle
Savoy Creens are fullyfurnlshed selfconLalned unlLs where resldenLs
are provlded wlLh Lhelr own fullyequlpped llvlng sleeplng cooklng
laundry and baLhlng faclllLles rlces are fully lncluslve of uLlllLles
managemenL and aL leasL a weekly cleanlng llnen and Lowel change
servlce lL ls noL a hoLel buL a Pome 1he company wanLs Lo expand lLs
buslness globally and ls bulldlng up sLraLegles and plannlng Lo conslder
Lhe overall facLors whlch lL would face ln Lhe lnLernaLlonal markeL


SYW

Serv|ce |an

1he aparLmenLs wlll be parL of a managed block Lyplcally wlLh
an onslLe porLer/conclerge servlce lL ls noL a hoLel buL a home 1he
rooms have a homely look and are propped wlLh everyLhlng a home
would need lrom home appllances Lo klLchen needs baLhroom and
LolleL accessorles lLs llke your home alLhough you are mlles away
from lL
Many of Lhe MlgranLs opL for servlce aparLmenLs as Lhey hunL for a
new house Lhey accommodaLe Lhemselves ln comforL ln a servlce
aparLmenL So Lhey do noL have Lo compromlse on Lhelr llfesLyle or go
Lhrough Lhe hassles of shlfLlng ln a renLed home wlLh zllch amenlLles
Lhen shlfLlng ouL 1he LourlsL's local naLlonals and oLher forelgn
naLlonals who vlslL counLry or place flnd lL dlfflculL Lo accommodaLe
Savoy Creens would provlde a soluLlon Lo lL wlLh all Lhe class amenlLles
llke swlmmlng pools club house mulLlculslne resLauranLs gym faclllLy
a small klLchen room lnslde Lhe servlce aparLmenL where Lhe cllenLs can
also cook Lhelr own food lf Lhey are uncomforLable ln eaLlng Lhe food
whlch ls offered lor Lg Cnce a Chlnese clLlzen reporLed LhaL he was
Llred of eaLlng Lhe food of anoLher culLure LhaL dldnL sulL hls body
ulLlmaLely Lhe servlce aparLmenL came Lo hls rescue Pe was happy
LhaL he could cook and llve Lhe way he wanLed
1he servlce aparLmenL ls made Lo look and feel exacLly llke a home
Lvery room ls furnlshed wlLh a Lelevlslon muslc seL mlcrowave and
oLher elecLronlc goods Moreover some hoLels also provlde you wlLh

SYW

magazlne and shoe racks Cleanlng ls done every day Powever a senlor
hoLel manager mosLly accompanles Lhe cleanlng sLaff so LhaL Lhey are
never alone ln Lhe room
lL focuses on Lhe followlng key Areas Lo offerlng servlce
ConslsLenL and accuraLe fulflllmenL of Lhe cllenLs wlshes
CompeLlLlve prlclng for Lhe quallLy of servlces offered
1ransparency ln LransacLlon

SLkVICL CIILkING
AIkCk1 ICkUS AlrporL plckups wlll be arranged for vlslLors
flylng ln Speclallzed plckups for dlsabled cllenLs wlll also be
avallable
CAk kLN1ALS Car 8enLals can be arranged Lhrough Savoy Creens
lf requlred for weekends or longer perlods
SLCIAL GkCCLk DLLIVLk 1he Savoy Creens wlll provlde
speclal grocery dellvery servlces LhaL can meeL any dleLary
resLrlcLlon
CkGANI2LD 1CUkS AND LkCUkSICNS Savoy Creens organlzes a
varleLy of Lours for Lhelr guesLs ranglng from ecoLourlsm Lo
herlLage Lourlsm Lours and excurslons Lo varlous locaLlons on Lhe
lsland
CUSLkLLING SLkVICLS Lvery aparLmenL wlll have a
housekeeplng sLaff asslgned Lo Lhem 1hls sLaff member wlll
provlde llghL housekeeplng laundry as well as meal preparaLlon

SYW

CAkL GIVLk SLkVICL kCVISICN Savoy Creens wlll provlde
personallzed Care glver servlces lf requlred

1hese servlces lnclude buL noL llmlLed Lo
-AsslsLance wlLh walklng and geLLlng ln and ouL of bed
-Companlon/LransporLaLlon Lo ouLlngs
-MedlcaLlon remlnders and supervlslon of medlcaLlons
-AsslsLance for ambulaLory lndlvlduals
-Care and Companlonshlp
-hysloLherapy
-Massage Lherapy

vACA1lCn 8LnLll1S
Along wlLh Lhe Llmeshare ownershlp cllenLs wlll recelve all lncluslve
vacaLlon membershlp packages comprlslng of lnLernaLlonal PoLel
dlscounLs meal dlscounLs and mlnl vacaLlons


SYW

Industry and Market Ana|ys|s

Slnce !anuary 2007 Lhe prlce of real esLaLe ln lndla has lncreased by
more Lhan 40 ln some parLs of Lhe counLry 1he counLrys Cu grew aL
a robusL raLe of 84 durlng 2003/06 and Lhls level of growLh ls
expecLed Lo be susLalned ln Lhe comlng years 1he supply of hoLel
rooms ln cerLaln key clLles ln Lhe counLry does noL and wlll noL meeL
demand ln Lhe shorL Lerm

ln Mumbal however Lhere ls an abundance wlLh players llke 1a[
WelllngLon Mews Lakeslde ChaleL MarrloLL LxecuLlve AparLmenLs Lhe
Crand PyaLL 8esldences and Lhe Crand 8esldences aLLached Lo Lhe
lnLerConLlnenLal wlLh a LoLal of 400 unlLs

unllke Slngapore where a mlnlmum sevenday requlremenL ls
mandaLory for a producL Lo be classlfled as a servlced aparLmenL Lhe
rule of lengLh of sLay ls nonexlsLenL ln lndla and lL ls posslble Lo sLay ln
many servlced aparLmenLs on a dally basls

Cakwood Asla aclflc Lhe worlds largesL renLal houslng soluLlon
company opened a porLfollo of luxury servlced aparLmenLs ln
Slngapore and 1halland Lhey wlll be Lhe compeLlLors for Savoy Creen
as Lhe company ls looklng Lo expand Lhelr buslness ln Lhese counLrles
where loL of LourlsLs are aLLracLed Lo
1he poLenLlal for Lhls markeL Lo grow Lhough Lhe base ls preLLy small
rlghL now ls exLremely hlgh parLlcularly due Lo Lhe servlces secLor and

SYW%

lncreased peneLraLlon ln noL [usL prlmary buL secondary and LerLlary
markeLs as well.
8lg segmenL LhaL could sLarL uslng servlced aparLmenLs wlll be vlslLors
for medlcal Lourlsm 1here could be players who wlll bulld servlced
aparLmenLs nexL Lo large hosplLals Lo caLer Lo LhaL klnd of demand
Accordlng Lo research conducLed by PvS Lhe growLh of branded
servlced aparLmenLs wlll also help raLlonallze prlces currenLly belng
charged by hoLels Luxury servlced aparLmenLs can be sLandalone or be
a parL of luxury flrsLclass and mldmarkeL mlxeduse hoLel
developmenLs Whlle a growlng number of players have already
declded Lo sLep lnLo Lhls segmenL and are geLLlng ready Lo launch Lhelr
brand of servlced aparLmenLs lL remalns Lo be seen wheLher cllenLs wlll
evenLually brlng Lhelr sulLcases here or sLlll check lnLo a plush hoLel
sulLe


SYW%

1arget Market

So who would consLlLuLe Lhe poLenLlal LargeLmarkeL for servlced
aparLmenLs? Cenerally mlddle Lo senlor managemenL poslLlons ln
many lnLernaLlonal or forelgn companles are held by expaLrlaLe
employees requlrlng medlum Lo longLerm accommodaLlon l1 and
l1eS based companles Loo generaLe huge demand for servlced
aparLmenLs 1hose companles ln Lhe formaLlon sLage would usually
have Lhelr Lralners belng flown ln for Lhe lnlLlal seL up of Lhelr
operaLlons and Lralnlng of Lhelr sLaff and Lhe duraLlon of Lhelr vlslL
could range from Lhree monLhs Lo Lwo years
We are also wlLnesslng a surge of slngle woman Lravelers Lravellng for
buslness and Lhls could form a sLrong LargeLmarkeL for servlced
aparLmenLs ManagemenL and ConsulLlng companles lncludlng
accounLancy and legal flrms brlng ln employees from oLher offlces on
Lemporary asslgnmenLs Lmbassles and lorelgn 1rade Commlsslons
Lend Lo generaLe demand for servlced aparLmenL accommodaLlon as
Lhe consular and oLher senlor members of sLaff may requlre medlum Lo
longLerm accommodaLlon 1ralnlng semlnars requlrlng parLlclpaLlon
from employees from oLher parLs of Lhe world also generaLe demand lL
ls also an lmporLanL conslderaLlon for companles aLLempLlng Lo reduce
operaLlve overhead cosLs by brlnglng ln expaLrlaLes for shorLLerm
employmenL or on a pro[ecLLopro[ecL basls
1he proflle of servlced aparLmenLs' occupanLs would Lyplcally lnclude
execuLlves of forelgn banks Lo mulLlnaLlonal corporaLlons provldlng

SYW

accommodaLlon aL dlfferenL levels ln Lhe company hlerarchy from
enLry level execuLlves who are Lyplcally provlded wlLh shared
accommodaLlon Lo senlor managemenL who are provlded wlLh
furnlshed quallLy cusLomdeslgned houslng Lo sulL Lhelr needs Pence
aparL from Lhe rlse ln demand LhaL ls foreseeable ln Lhe near fuLure for
Lhls caLegory of accommodaLlon Lhere ls also a caLchmenL of laLenL
demand LhaL can be Lapped qulLe effecLlvely

1 these, according to The Apartment Service Global Survey 2009


SYW

Cperat|ona| |ans

Lmployees wlll be encouraged Lo work wlLhln Lhelr creaLlve physlcal
and lnLellecLual boundarles All duLles wlll be dlvlded and delegaLed
accordlng Lo sLrengLhs and weaknesses AL Savoy Creens we wlll
expecL a hlgh degree of cusLomer servlce skllls and personallLy as Lhls ls
essenLlal Lo our success
P8 Manager wlll assess Lhe producLlvlLy and perform lnformal
employee's evaluaLlons of all employees every slx monLhs 1hese bl
annual evaluaLlons are conduclve Lo Lhe conLlnued growLh of our
buslness
Slnce Savoy Creens ls lnLo lLs lnlLlal sLage lL requlres a slmple
organlzaLlonal sLrucLure 8a[ender 8harara wlll acL a general manager
where as markeLlng Managers would be ulnesh Coswaml Shllpa
Slnghvl AmlLesh kumar !ha and 1arun 8asLogl would be employed as
8elaLlonshlp Manager llnanclal aspecLs of Lhe company would be
headed under llnanclal AnalysL lyush !aln vlshnu 8agrodla wlll acL as
8uslness AnalysL All declslons are made lnllne wlLh Lhe company
ob[ecLlves Lmployee Lasks are delegaLed based upon Lhelr level of
experLlse creaLlvlLy sLrengLhs and weaknesses


SYW

LS1 Ana|ys|s
ollLlcal
1arlffs
8egulaLory lacLors
8esLrlcLlons on cerLaln Lrade aspecLs
LlmlLaLlons of buslness
Lconomlcal
llnanclal 8esLralnLs
uemand CondlLlons
Soclal and CulLural
AdapLablllLy Lo culLural aspecLs
AcLlng local and Lhlnklng global
undersLandlng Lhe llfesLyle and llvlng paLLern
1echnologlcal
CompleLe lnLerneL faclllLles
roper survelllance sysLems
1echnlcal up gradaLlon


SYW

Market|ng |an
1he exLendedsLay hoLel or Lhe servlced aparLmenL ls
Lyplcally deslgned for Lhe Lraveler who may have Lo sLay ln an area for
seven or more consecuLlve days 1he rooms and amenlLles are orlenLed
Loward someone who wanLs a more resldenLlal aLmosphere 1he
guesLrooms ln an exLendedsLay hoLel have larger llvlng areas and full
eaLln klLchens some have Lwo separaLe sleeplng areas a dlnlng room
LhaL ls dlsLlncL and separaLe from Lhe llvlng area and separaLe baLhs A
servlced aparLmenL's developmenL ls supposed Lo have Lhe
characLerlsLlcs and feel of a home whlle offerlng recreaLlonal faclllLles
LhaL would exlsL aL mosL hoLels ln facL accordlng Lo
1rendwaLchlngcom an AmsLerdambased lndependenL Lrend agency
LhaL uncovers global consumer Lrends on buslness Lravelers Lhe deslre
for a more luxurlous home away from home has become a popular
global Lrend whlch ls where servlced aparLmenLs sLep ln and offer
'lnsperlences' for Lravelers 1hus Lhe markeLlng of Savoy Creens would
lnclude poslLlonlng lL separaLely for corporaLe professlonals who wanL
experlence of llvlng aL a comforLable and luxurlous space and for
sLudenLs whlch ls a prlce senslLlve segmenL
Market|ng Strategy lour ronged SLraLegy
1Advert|s|ng
A large number of vlslLors wlll look Lo Lhelr local and reglonal
newspapers and oLher publlcaLlons for lnformaLlon abouL Lhe
dlfferenL accommodaLlons ln Lhe Carlbbean We lnLend Lo
adverLlse Lhrough varlous publlcaLlons medla

SYW

2Jebs|te]Cn||ne Market|ng
SAvC? C8LLnS AparLmenL wlll use a comprehenslve full servlce
webslLe LhaL allows Lhe vlslLors Lo vlew Lhe AparLmenL Complex
read deLalls abouL whaL lL has Lo offer provlde lnformaLlon on
reglonal acLlvlLles even allow Lhe vlslLor Lo book a reservaLlon
WlLh Lhe growlng use of Lhe lnLerneL Lhe web has become an
lndlspensable Loll people have for plannlng vacaLlons Lo far
reglons AparL from Lhe esLabllshmenL of web presence SAvC?
C8LLnS wlll make an efforL Lo uLlllze new markeLlng Lechnologles
Lo drlve Lrafflc Lo Lhelr webslLe as well as oLher forms of onllne
markeLlng
3D|rect Market|ng
SAvC? C8LLnS AparLmenL would be produclng Lhelr own
publlcaLlons such as brochures and flyers and place Lhem ln
sLraLeglc locaLlons Also SAvC? C8LLnS would be lnvolved ln
uaLabase MarkeLlng as a medlum for creaLlng awareness abouL
Lhelr servlces and faclllLles
4Strateg|c ke|at|onsh|ps
SAvC? C8LLnS AparLmenL wlll develop a parLnershlp wlLh Llme
share vendors and oLher lnLernaLlonal Lravel agencles Agencles
wlll be LargeLed Lo faclllLaLe Llmeshare exchanges


SYW

r|c|ng Strategy
Cur prlclng sLraLegy ls such LhaL Lhe baslc faclllLles are provlded aL a
mlnlmum level of charges Lhe resL ls varlable prlclng as per Lhe
requlremenLs and servlces acLually offered Lo each cusLomer 1hls ls
because we have Lo keep Lhe prlces lower Lhan hoLels buL aL Lhe same
Llme malnLaln marglns offered by Lhls buslness
W Stud|o rooms USD 5 8
W 1wo bedroom USD 5
W 1hree bedroom USD 5 8


SYW

I|nanc|a| |an
Iorecast

1he followlng Lable and charL glves Lhe forecasLed earnlngs for Savoy
Creens room per day We percelve a gradual lncrease ln Lhe LoLal
number of unlLs over Lhe nexL years As Llme goes on Lhe annually per
unlL prlce wlll slowly ascend coupled by Lhe decllne ln cosL over Llme
produclng an lncreased perunlL proflL
lrom our openlng ln May Lo uecember we expecL LhaL all unlLs wlll be
compleLely occupled 8y Lhe uecember 2009 we have planned Lo geL
100 room occupancy aL peak Llme aL leasL 80 aL Lhe of off season
1hls way we wlll be able Lo achleve our flrsL year revenue esLlmaLes
AfLer Lhls [ob we wlll be focus on reduclng cosLs and lncreaslng our
number of pro[ecLs

arLlculars ueLalls ?ear
2012
?ear
2013
8ed room seLs 8ed uouble bed sheeL plllows dresslng
Lable bedslde sLocks seL of chalrs and
cupboards

300000

100000
urawlng 8oom

Sofa SeLs CenLre 1able ulnlng 1able

120000

20000
klLchen Wood lurnlshlng cablneL wall mounLed
uLenslls

200000

200000
8aLh 8oom Mlrror 8uckeL Mugs 1aps flLLlng
Ceysers and LxhausL lan

83000

3000

SYW

LlecLronlc Coods 1elevlslon Small lrldge LlghL llLLlng lan
AC 8lg lrldge

330000

130000
CLhers lnLerlors uecoraLlons CurLalns

143000

100000
AuLomoblle
400000

100000
Lcolrlendly
LqulpmenLs

100000

1oLal

1900000 (approx )

673000 ( approx )

W 1he above esLlmaLes are only for 2 unlLs 1he LoLal flxed cosL of
pro[ecL ls
W 1oLal llxed cosL of pro[ecL 8s (1900000/2 * 100) 8s 93 crores (
approx)
W 8uL due Lo large scale of operaLlons and Lhe beneflLs accrulng Lhere
from Lhe cosL of pro[ecL wlll be much less and expecLed Lo be
around 8s 7 crores


SYW
%

Jork|ng Cap|ta|

I|xed Amount (29) Amount (2)
8enL 300000 300000
Cas blll 2300 3000
news paper 3000 3000
SALA8? 1C S1All
(30 WC8kL8S *
8s3200/person)

73000 96000
AuMlnlS18A1lvL S1All

30000 60000
LxLnSL 1CWA8uS
S1All

23000 30000
LLLC18lCl1? 8lLL

20000 30000
CA8LL 10000 10000
LAunu8? 3000 3000
MlSC 20000 23000
1C1AL

320000 (approx)

364000 (approx)


SYW
%

CCS1ING

Cost of pro[ect
llxLu CAl1AL + WC8klnC CAl1AL
8s 70000000+8s 320000
8s 70320000

Source of f|nance

A SAv LLd CCn18l8u1lCn (33)
8s 40000000 ( approx)
88CMC1L8'S lunulnC
8s 30320000


SYW

Growth |an
Savoy Creens' wlll work lndependenLly under Lhe able leadershlp of Lhe
elghL brlghL enLrepreneurs buL Lhe flnal hold wlll be of Lhe parenL
company 1hls sLep could be consldered as anoLher mllesLone ln Lhe
Savoy Creens rlvaLe LLd and would go a long way Lo help buddlng
enLrepreneurs dream blg
SAvC? C8LLnS ls currenLly noL hlrlng any more employees for
managemenL Leam 1he declslon has been made Lo posLpone furLher
hlrlng unLll Lhe company beglns Lo succeed CurrenLly Lhe managemenL
Leam of Axon reLall wlll handle Lhe Lasks and buslness LaLer on when
buslness wlll grow new managemenL Leam wlll be declded


SYW

Conc|us|ons
1he followlng lmporLanL gaps exlsL
1he presenL Leam has llLLle reLall sales experlence
1here ls no currenL lnhouse deslgner Lhls should be
correcLed wlLhln a year
1here ls no lnLernaLlonal Manager

1hls ls a new Lrend of buslness whlch has large scope As lL ls a new fleld
and Lhere are noL many compeLlLors ln Lhe markeL so lL wlll prove Lo be
a proflLable buslness

B.E (Intl Buss Environment Analysis MBA Core-C) Ashish Singh

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B.E (Intl Buss Environment Analysis MBA Core-C) Ashish Singh

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1opic: International Business Lnvironment Analysis

Company Name: SAVOY GRLLNS

Internat|ona| 8us|ness Lnv|ronment Ana|ys|s (SAVC GkLLNS)

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