BUSINESS PROFILE

GENERAL BUSINESS INFORMATION.

Business Name: AUKI HARBOUR VIEW LODGE

Business address: Auki habour view lodge
Auki, Malaita province.
Abbreviation: AHV Lodge
Phone number:7331083,8454116
Contact information of the person in charge: Christopher Taigwata (manager)
Phone#7331083
Type of ownership: Sole proprietor business
Service services: Accommodation for rent
Date of start:3/12/2016
Executive summary
Auki habour view lodge was a business which focus on providing accommodation for
individuals, families, friends and groups just for short team stay. It was existing in 2016 and was
not really to the standard of lodging business compared to other competitors. some of the
facilities within the building needs to improve on as it will grow. From now the business was just
four years of its operation which is still young. Therefore, it requires proper managing.
The business is a small-scale business compared to other competitors. But they all provide the
same service however, the difference is it only has seven bed rooms, one shared kitchen and
separate convenient rooms for males and females. The rate of each room was similar to some
competitors while some not depending on the scale of the business.
The extension of this business depends on the cashflow coming into the business from the
customers. Auki habour view lodge only employ two employees to work as cleaners and
receptionist. The cleaner sometimes did the receptionist role. That’s how sole proprietor business
work, any changes can be done by owner of the business.

INTRODUCTION.
Lodging business is a business which deals with providing accommodation for people who wants
to transit for a period of time as we all know. Aukihabour view lodge is a business which can
accommodate people up to 30 customers. It is a sole proprietor business which was manage by
the owner himself, however all the business matters will be handle by the owner. Running a
business is something that requires proper managing and considering of legal regulations of
business operating, whether it be small-scale or large-scale, they all have the legal regulation
bases which can enable them to operate.
Therefore, the basic aim of this report is to consider the porters five forces and value chain
analyzing tools on the environment of lodging business. Lodging business is one of the business
came under tourism industry. Likewise, tourism industry also has internal and external factors
which business owner should consider when running a businesshowever, as an entrepreneur you
should consider how to become a risk taker in order for the business will maintain its operation
in the future. Likewise, lodging business is a kind of business which mainly deals with
hospitality, providing good accommodation facilities and comfortable business environment for
customers. The more you meet your customers’ needs the more you will expect to receive
incomes from your customers and also your customers will invite more customers to your
business.
PORTERS FIVE FORCEANALYSIS OF AUKI HARBOUR VIEW LODGE.

FORCE 1: The Degree of Rivalry.

Degree of rivalry of any business running under the tourism industry is the most obvious thing
which a business should be value. Lodging and hospitality is the most essential thing in all
business operating under tourism industry. It is one way of how you make customers to have the
guts of coming to your business because the hospitality you provide to your customers will
entertain more customers. That is how fast customers can influence other customers to choose
your business because of the best service which you provide to your customers .
AHV lodge is located in the heart of Auki town. But actually, at first the owner was trying to
make rooms for offices, however during those times the demand for accommodation was
increase and competitors are few. The other competitors are running at the large scale of their
business, therefore demand for lodging size was demanding because some people want to spend
less and save more.
This however was not really to the standard of how attractive it was. But there are other things
that are attracting compared to the level of the business. Likewise, the business was located not
too far from the wharf, market and shops. It was accessible to those important areas that make it
attractive for the customers to choose the accommodation.

FORCE 2: The Ease of Entry.

Tourism industry is a kind of business industry which has a high cost of entry. Most
thingsrequire before the business become a lodging business was very costly. Building materials,
labour cost at the beginning is very expensive. It requires many years pass before the business
came into existence. Also, people who wanted to go into business are the ones that will face the
risks before and during the period of time as the business operates.

Competition is one of the major factor that occurs among the competitors therefore some
competitors ‘are far from the areas which some customers want to go to places, like shops,
market, wharf etc. Therefore, it was demanding when people looking for a place to accommodate
in. Also, it is an advantage for AHV lodge to have more customers. Because of the closeness of
thosecertain locations where people usually want to go to.
Government regulation is one of the factor which always affect the business. Business must have
certain things that the law requires as owner it must be consider even though the business starts.
Sometimes the business won’t make any profit but still it’s a must that the business should meet
the required things. Therefore, AHV lodge always renew the business license every year, the
business was registered the company Haus in 2017 and also the business hasits accounts apart
from the personal account. These are some of the legal requirements for the business to have in
order for the business to legally operates in the townshiparea. Some of the laws applies to the
owners as well, especially with the employees. Business should employ people to work. If the
business does not employ any employee then there are some cases of that as well. But AHV
lodge somehow because it was own by a sole proprietor the owner employees his wife and
daughters, therefore the policy isn’t working because the owner sometimes does not pay for his
employees.

FORCE 3: The Threat of Substitutes.

In AHV business case the business still working on the substitutes. It was still on the same
service provide from the beginning stage. Thesubstitutes of the services provide was one of the
ideas which the owner is still working on it.
AHV business’s available substitutes was that it will change the size of the rooms to big size
which will cater for self-containrooms, single rooms cater for just single bed and a room that
kind fit for two singlebeds. Because some customers are coming in with families which needs
self contains, individuals always want single which will affordable for them and some customers
who came with friends needs two single separate beds. These are some of the long team goals
which AHV business will try to work on. Currently the business is ruining on 7 bed rooms with
two single beds and shared kitchen, two separate sower and toilets for male and female. Some
other substitutes service for this business will be putting in the plan for the next construction
extension etc.
The business will try to work on some substitutes as the business will continue to work on what
the customers highly demanding on. Also, the owner of AHV lodge always want the customers
to make some comments on the business before they leave. Because the more they share their
comments with the owner the more the owner will get some innovative ideas from their
customers. Most business owners work according to the demand of their customers because the
customers are the ones that will make the business to have money whenever they came in. This
business starts to work on some weakness because of some feedbacks shared by the customers
motivates the owner to work on in order to improve on some areas.

FORCE 4: Buyer Power.

Buyer power is one of the important factor to consider in a business as an entrepreneur. The
owner must try to determine how to influence the power of buyers. Business must provide
efficient facilities that meet the needs of customers. A business which provide good service for
customers will invite more customers into the business. In AHV business (lodge) one of the
factors which always make the business to have more customers is reputation. Welcome
customers whenever they come, create a good relationship, be friendly to the customers.In any
business dealing with service, it is very essential that first you must be friendly to your
customers, ask them if they might haveproblem, make them feel at home, tell them not to be
hesitate to seek help from the employees of the business. Reputation, facilities and prize are the
vital things AHV lodge can influence their customers on.

FORCE 5: Supplier Power

Supplier power is mirror image of buyer power. The supplier power depends on size, types of
facilities and its rate per room that is for AHV lodge lodge is mainly focusing on the seven bed
rooms. And all the rooms they shared kitchen, shower and toilet for males and females. Although
they shared some facilities they also pay the rate for rooms which is $300.00 per room with two
single beds and also per day as well. Check out time was 9am to 10am.Therefore the supplier
power depends on the cashflow per day or week. If the cashflow was increase then the supplier
power will also increase in a sense that the owner will have cash to extend the business in order
to make more rooms for rental.

VALUE CHAIN ANALYSIS FOR AUKI HABOUR VIEW LODGE.

PRIMARY ACTIVITIES. (MARKETING AND SALES)

Differentiation advantage

-if competitors are competing with the rate of $300.00 per rooms then AHV lodge will extend
the building and create some room size for only single bed and rate it for $200 or create big
rooms that would fit self contains. These are the business’s long-term goals. The owner of AHV
lodge is still working on the long-termgoals.

-AHV lodge would have provide a café just to make the customers not to walk far to buy food.
That should be another substitute for the business.

IDENTIFYING THE CUSTOMERS

-identifying of regular customer is another advantage of the business. AHV Lodge is also value
their regular customers. Sometimes the customers might want to rent for months, therefore the
business always reduce the rate for 30% of the rate per day. Because they are the business
current cash for that period of time.

Opportunities for reducing cost for customers.

-Also, some customers who are not working for the government we also provide different rates
for them, depending on the wage earn. This can be happening for family member especially.

-Church groupsAHVlodge also reduce the original rate for church groups.

-People with disability who also seek accommodation for transit the owner can reduce their rate
of rental per day.

CONCLUSION.
To sum up, running a business is a tiringwork. As an entrepreneur you must be very careful with
the day to day work. Whatever risk faced during the day must be work out if possible, don’t wait
until the responsible people to make legal penalties. A business that focus on the five porters and
some value chain activities will also become successful. For some cases if the business is having
an increase in cash flow that will be better for the business to help some of the customers. For
AHV lodge owner somehow see the value chain activities mention above as a means of fast cash
from the customers and make it the most demanding accommodations for such groups and
individuals as well.
BIBLIOGRAPHY.

 Grant, R. (2010). 7th ed.john wiley &sons. Contemporary Strategy Analysis, p.239-241.

 Wikipedia (2013). Value Chain. Available at: http://en.wikipedia.org/wiki/Value_chain

 NetMBA (2010). Value Chain. Available at: http://www.netmba.com/strategy/value-
chain/