Arab Open University

Faculty of Business Studies

Exploring Innovation and Entrepreneurship

B205A -Spring Semester 2020-2021

Tutor Marked Assessment. Part A.

Business plan

This business plan has been submitted on a confidential basis solely for the benefit of
selected, highly qualified investors in connection with the private placement of the above
securities and is not for use by any other persons. Neither may it be reproduced, stored, or
copied in any form. By accepting delivery of this plan, the recipient agrees to return this copy
to the corporation at the address listed above if the recipient does not undertake to subscribe
to the offering. Do not copy, fax, reproduce, or distribute without permission.
 Table of contents:

1. Introduction
2. The Industry and the Company and Its Product(s) or Service(s)
A. The industry
B. The company and the concept – organisation perspective
C. Company’s services
D. The market
E. Comptetion
3. Closing summary
4. References

 
 1. Introduction:
Company name: FlySky Application
Address: FlySky Towers, Kuwait City, Kuwait
Telephone: +965000000
Date: 12/04/2021
Business plan

FlySky Application is a tourism company and service that is wanted to be created in

order to offer people a unique tourism experience through modern approach of business and
consulting. Among the intrinsic characteristics common to the class of services, are listed: the
creation of their own tourist programs, the purchase of transport tickets, the provision
of domestic and international tours, custom packages etc.
The company FlySky Application will operate in the field of tourism, offering
exclusive services for planning internal and external travel, aiming not only to retain potential
customers with the service provided, but becoming one of the leading company regionally.

2. The Industry and the Company and Its Product(s) or Service(s):

A. The industry:
Tourism is an important sector around the globe, which unites people, countries and
economies. This sector has seen growth in this century until the Covid-19 crisis and there is a
great business opportunity after the pandemic. According to World Tourism Organisation,
30/12/2020 report1, International tourism was declining with 70% in 2020 because of the
restrictions imposed by the pandemic, which will lead to a strong desire of travel when the
crisis will be finished.
The specific features, which differentiate FlySky Application service offering
competitive advantage, are:

 specialized program offered to customers for choosing the destination depending on

the budget, period, type and purpose of the trip using a customised digital
programme.
 offering direct consultation to benefit from the best available transport offers
accommodation as well as experiences, suggestions and help offered at premium
standards .     
 creating a software that can be used by loyal customers, through the company's
official website, for a unique vacation planning experience that will include periodic
price reductions, through various partnerships.     

1
https://www.unwto.org/impact-assessment-of-the-covid-19-outbreak-on-international-tourism
 B. The company and the concept – organisation perspective:
              The organization chart of the company, in initial form, can be presented in the
following form: 

              The director of FlySky Application will take care of both the managerial part of the
company.
              The marketing department will deal with the ways of promoting the company,
market analysis, preparation of reports on the national and international tourism segment, etc.
              The IT or IT department will take care of the implementation, supervision and
maintenance of the company's website, thus ensuring cyber security. He will collaborate with
the marketing department in order to have the best possible presentation of the company, the
positioning of the ads on the site, the arrangement of the font, the colors, the background
theme, etc. 
              The accounting department will record the balance sheet, will analyze the financial
data of the company, will have the role of controlling the incomes and expenses of the related
departments, etc.
              I am considering hiring 1-2 people in the marketing department and one employee in
the fields related to the accounting and IT departments, the necessary conditions being
represented by the graduation of higher education and experience in the field.
The managerial conception will be based on the observance of the management
functions and the adaptation to the last economic, technical and informational requirements.
From the point of view of the practices used compared to the competition, the strategy
will be to differentiate it from the quality of the services offered by FlySky Application,
while respecting the competitors.
As for the local community, we will be open to collaborations, partnerships and
discussions aimed at improving the work of the parties. For example, an idea of a relationship
could be that of a partnership between the Kuwait public authorities in order to promote local
tourism. Thus, not only the possibility of attracting new tourists to the Kuwait would be a
good reason for business and pride, but this possible partnership would also develop the field
of economy. 
Given that in the organization chart of the company there are specific departments and
competent employees in the fields of promotion, accounting, law, the use of specialized
companies will be made only in exceptional cases.

C.  Company’s services – SMART form:

The services offered by this company will cover the diverse and constantly changing
needs of consumers, by ensuring the following components:
I. SPECIFIC:
 Transportation :
 Air : we offer customers the opportunity to purchase airline tickets,
providing a specific calendar to facilitate planning and improve the overall
customer experience      
  Road : we offer, through our specialized program, bus tickets with various
local and regional companies so that the customer has the opportunity to
choose and plan according to his specific needs in a given period.      
 Railway : the possibility to purchase train tickets both at national and
international level.
 
 
II. MEASURABLE:

 Accommodation services :
 We offer the customer a wide range of selection in terms of
accommodation - the unique software that FlySky Application will
implement will offer a unique experience in terms of choosing the country,
city, period of stay, but also in terms of type accommodation: hotel,
apartment, holiday homes, rooms, hostel etc.      
 Partnerships that company plans will offer discounts to customers who will
join the FlySky Application loyalty program.      
 
 Tourist packages :
 Various tourism offer and dedicated packages, depending on the wishes of
the potential client:     
 Cultural package: artistic events, opera, conferences, team-buildings.
 Sports package: we offer the customer, upon request, the opportunity to
buy, through us, tickets or season tickets to sports competitions, depending
on availability: for example, tennis tournaments, football matches,
handball etc.
 Culinary package: at the request of customers, FlySky Application
searches for and purchases specific trips - romantic dinners (for example,
in Al Kuwait, Dubai), wine tastings (trips to regions with tradition –
Bordeaux, France or Tuscany, Italy).

 Consultingservices :
 FlySky Application will offer individual tourism consulting services, the
client will have a unique experience of communication .
 Consultancy will be offered to individuals as also to legal entities.

III. ATTAINABLE :
Company registration process is attainable; we will launch a social media
marketing campaign and network with local businesses.

IV. RELEVANT :
The business idea will offer people excellent travel services, in order to have a
premium experience, as beautiful as possible, in which promptness and
seriousness are defining elements. It is relevant because it has an undisputed role
in economy: creating jobs, building partnerships – business to business (with
hotels, airlines, agents) and paying taxes (state-relevant – corporate social
responsibility).
 V. TIME BASED:
The company is set to be launched in 9-18 months, aiming the opportunity of the
tourism rebound.

D. The Market – PESTEL factors and competition:

As Rastogi, Trivedi (2016)2 described, PESTEL is a tool to identify external risks in
construction projects. The PESTEL analysis for this business plan is as following:
Political:
In terms of local policies, there is not a problem in this moment for creating the
company.
Regarding the international situation and the future development of the business,
each Government policy will be important in handling the pandemic situation and
encouraging tourism.
Also bilateral and multilateral relationships between States will have an impact on
the firm tourism activity for international travel.
Economic:
Recession is an aspect that has to be considered for the future activity of th company
as the economic situation is uncertain for the moment because of the pandemic.
Exchange rates and other economic indicators will be taken into account and
constantly verified.
Social:
Geographical criteria: the service will be implemented online, so it will be available
globally.
Demographic criteria3 :
- Distribution by age groups: between 18 and 80 years.      
- Classification according to sex: men and women.      
Psychographic criteria: people with average and above average incomes, liberal
professions, business people, university environments (pupils, students, teachers) etc.
Behavioral criteria: tourists travelling on their own and tourists using the services of a
travel agency. The service will meet both existing categories in the tourism market.
Technological:
FlySky Application will have its own online platform where it will promote and sell
services;
Technologically aware for the new digital innovations that may appear;
Mobile application giving sense of loyalty to clients;
Offering modern transportation guided by technology.
2
N Rastogi, MK Trivedi - International Research Journal of International Research Journal of
Engineering and Technology, 2016,pp 384-388
3
B205 A - EXPLORING INNOVATION & ENTREPRENEURSHIP Course – Internal Resource
Environmental:
Pollution: important issue that is facing tourism industry nowadays – it can be reduce
by using electrical and hybrid buses and cars, as well as reducing CO2 emissions of
airplanes with new legislations regarding these matters.
The negligence of tourists is another environmental aspect that is a reality in
everyday life: throwing plastic objects into streets, forests or lakes is just an example
that can be stopped through education and application of law.

Legal:
The legal regime of the company FlySky Application will be in the form of a limited
liability company.
Liability of shareholders is limited, thus eliminating various risks;      
Possibility to participate in private, public auctions.      

E.  Strengths and risks of the business.

The main strengths of the business are:
- Specialized program offered to customers for choosing the destination depending on
the budget, period, type and purpose of the trip using a customised digital programme.
- Creating a software that can be used by loyal customers, through the company's
official website, for a unique vacation planning experience that will include periodic
price reductions, through various partnerships.
- The desire of travel from Kuwait nationals and other citizens after the Coivd-19
pandemic.
- The support of the Government and other International bodies regarding tourism
sector/
- The vaccination made worldwide which will favour the relaunch of tourism

The main risks of the business are:

- The uncertainty of economic situation generated by the pandemic, which may affect a
part of the population (unemployment, recession) and therefore they will not have the
economical means to travel;
- Disruption for airline companies because of the Covid-19 crisis;
- The perception of travel as being a risk also because of the pandemic;
- The uncertain length of the pandemic is another risk for the business;
- The competition for the company will be formed by both national and international
companies. In terms of local companies, examples of competitors are: Al Ostora, Al
Sayed, Khaitan Travel; regarding the international competition, there are various
operators in the market: Esky, Expedia and others, but the competitve advantage of
FlySky Application is its unique online platform which will be implemented by our IT
experts in deep learning and artificial intelligence
 3. Closing summary:

FlySky Application will offer people a unique tourism experience through modern

approach of business, unique platform and consulting services, addressing to a vast segment
of population regardless of their nationality, with the goal of being number one regionally.
The opportunity of creating a new business appeared after the Covid-19 pandemic started and
it has the purpose of giving the people back the joy of travelling, discovering new places,
developing human potential and economic stability of the country, offering a hope in a
market which needs more than ever a business that unites the world. Travel with FlySky
Application!

References:
1. World Tourism Organization : https://www.unwto.org/impact-assessment-of-the-
covid-19-outbreak-on-international-tourism
2. N Rastogi, MK Trivedi - International Research Journal of International
Research Journal of Engineering and Technology, 2016,pp 384-388
3. B205 A - EXPLORING INNOVATION & ENTREPRENEURSHIP Course –
Internal Resource