Chapter 1

Business Concept

Introduction

One of the goals of the tourism industry is to provide customer

satisfaction. It means that the tourism establishments must meet the
expectations of the tourists by providing them with the best experience during
their travel to a specific destination. Their trip doesn't end until they go back to
their own homes. It doesn't matter what activities they did along the way as long
as at the end of their journey, they have the best experience and a big smile on their faces.

In line with this, the group has decided to put up a Bed and Breakfast Inn
in Tagaytay City, in order to complement the tourists’ experience. Most tourists
are far from the destination so majority of them go home early and miss out some
of the fun and the fireworks. The group wanted to put up the Bread and Breakfast
establishment to provide comfort and accommodation to the tourists going to
People’s Park and Picnic Groove. So through the Bed and Breakfast
establishment, the tourists will no longer worry about missing out the fun and
travelling for such a long time just to get a nap or short sleep. Instead, they can
stay as long as they want and just check-in at our inn afterwards, have a
goodnight sleep and eat breakfast in the morning.

Some hindrances are the ones that block in completing the tourists’
experiences. By putting up an accommodation at Tagaytay City, this will stop the
hindrances and fill the missing components of the tourist’s experience. Not only
does this inhibit the blocks but it also opens up a whole new different experience
to the tourists.
To identify the specific group of tourists a bread and breakfast will pursue,
the group will use the Segmentation process. It is the process of segmenting a
large market into smaller groups based on Demographic, Geographic,
Firmographic, Behavioral, and Occasion.
 Since the establishment’s purpose is to provide accommodation to
Tagaytay City goers, they are the main target market. Other than the Tagaytay
City goers, we are also pursuing another target market based on geographic
location is the employees working at the companies nearby. In case of the
demographic aspect, our target market would be families and groups of friends
so the rooms of our establishments should accommodate at least four people per
room. While in terms of benefits, the quality of the amenities and facilities must
be satisfying and the prices must be affordable to reach the potential target
markets.

JAPA’s Garden Inn

The name of the business is JAPA’s Garden Inn. JAPA is the acronym of the 4 business partners
involved.
The Inn proudly showcases
the rich flora of the province of Laguna creating an ambiance of nature.

JAPA’s offerings

The Inn offers the following services:

Twenty three garden-themed bedrooms

3 Single 1 single bed
5 Double 1 queen size bed
5 Twin 2 single beds
5 Triple 1 queen + single size bed
5 Quadruple 2 queen size beds
Additional mattresses are available with additional cost.
 Complimentary breakfast
 Restaurant
 Room service
 Designated smoking area
 Laundry facilities
 Air conditioned room
 Crib available
 Bathroom
Hot and cold shower tap
 Balcony
Unique Quality

The unique features of the Inn are the following:

 Each room is garden themed;

 At the back of the inn, overlooking the balcony, is a stunning garden filled
with different trees, beautiful flowers, and a pond filled with fishes to relax
the guests from the hustle and bustle of the city life;
  La-Z-Boy chair in each room; and
 A grand piano in the parlor
 A grand piano in the lobby – keeping it classic and elegant
 Mini park,
 Organic mini farm
 Make-your-own-salad bar
 Pick-your-own-veggies

JAPA’s Business Structure

JAPA’s Inn is owned and operated by a corporation composed of four

people who agree to invest money, labour, and skill in the business.

Location

JAPA’s Inn is located in 445 Tagaytay-Calamba Road, Barrio Sungay

West Tagaytay City 4120 Philippines. It has a land area of 800 square meters.
The location is approximately 1 to 2 km away from the popular People’s Park and
Picnic Groove.

Business Feasibility

Based on the initial data, JAPA’s Garden Inn is a feasible business because
there is a potential high demand from the market for an accommodation
considering it is one of the most popular tourist destinations in the country,
Tagaytay City. According to research, as tourist arrival averages more than
2,000,000 per annum, there is a high demand for more lodging facilities. Tourist
arrival of the City increased from 915,925 in 2001 to 2,006,571 in 2006 or an
increase of 119.07 percent.

Objectives of the Study

The study aims to determine the feasibility of JAPA’s Garden Inn in
Tagaytay City. Specifically, it aims to answer the following questions:
1. What is the profile of the accommodation business in Tagaytay City, in
terms of the following?
 Products & Services offered
 Pricing
 Marketing strategy
2. Is JAPA’s Garden Inn feasible?
3. What is the business plan of JAPA’s Garden Inn?
4. What are its strategies to meet its goals?

Chapter 2
 Situational Analysis
This chapter discusses the company profile, products and services,
marketing plan, management plan, operational plan, financial plan, sustainable
development plan, and the store expectations.

JAPA’s Profile

. JAPA’s Garden Inn showcases the rich flora of Laguna that creates a
refreshing ambiance of nature. It’s inspired by the beauty of Japan’s gardens,
flowers, swamps, and marshes.

The logo of JAPA’s Garden Inn promises to Bring Families Together. It

also emphasizes the conservation of nature, starting with its architectural design
that harmonizes with the environment.

Vision
JAPA’s Garden Inn aims to be a model of Filipino value anchored in
strong family bonding while maintaining profitability and conserving the
environment.

Mission
In order to achieve its vision, JAPA’s mission is as follows:
 People: Be a great place of work where people are inspired to be efficient
and good performance are properly rewarded.
 Profit: Sustain long-term return of investment.
 Productivity: Be a highly effective, lean and fast-moving establishment.
 Partners: Nurture a winning network of customers and suppliers and
create a mutual and enduring value.
 Environment: Conserve the environment.
 Core Value

The core values of JAPA’s garden are the following:

 Leadership: The courage to shape a better future

 Passion: Committed in heart and mind
 Quality: What it does, it does well

Products & Services

The products & services of JAPA’s Inn are the following:

 Garden-themed bedrooms
The group planned to design each room with different ambiance and
atmosphere of a garden. It aims to entice guests to come back for a different
experience in each room. All rooms are equipped with air-conditioning,
bathrooms with the availability of hot and cold taps. Additional mattresses will be
available but with additional cost. Table 1 shows the number of rooms of JAPA
and their descriptions.

TABLE.1
Number of Rooms of JAPA and Their Descriptions

Number of Rooms of JAPA and Their Descriptions

There will be 23 rooms that are available to all guests. It consists of three (3)
single rooms, five (5) double rooms, five (5) twin rooms, five (5) triple rooms, and
five (5) quadruple rooms. All room rates are inclusive of Filipino plated breakfast
and are following customer-based pricing strategy.

The profile of the rooms is the following:

 1. A single room is recommended for a guest who is travelling alone.

This shows the interior of a single room.

Its amenities includes a mini bar, safety deposit box, two complimentary
bottles of mineral water, laundry bag, slippers, toiletries, air-conditioned,
and 24‖ flat screen television
2.A double room is recommended for married couples traveling together.

Its amenities includes a mini bar, safety deposit box, two complimentary

bottles of mineral water, laundry bag, slippers, toiletries, air-conditioned,

and 24‖ flat screen television
 3. A twin room is recommended for friends traveling together or additional room for families.

this shows the interior of a twin room.

Its amenities includes a mini bar, safety deposit box, two complimentary
bottles of mineral water, laundry bag, slippers, toiletries, air-conditioned, and 24 flat screen television

A triple room is recommended for married couples with one kid.

shows the interior of a triple room.

Its amenities include a mini bar, safety deposit box, two complimentary

bottles of mineral water, laundry bag, slippers, toiletries, air-conditioned,

and 24‖ flat screen television
Restaurant
The restaurant is also managed by the Inn and has a different
department.
It will have a menu of the day with a pricing system based on the
head chef.

Organic Farm

What sets us aside from other establishments is that our ingredients

are
always fresh. Our make-your-own-salad bar will boast its
freshness and
on the top quality.

Housekeeping
This department is responsible in maintaining the cleanliness of
the whole
vicinity. It provides the needs of the guests inside the rooms
(including laundry services, crib for kids).
Amenities

Balcony

A balcony is provided in each room so the guests can relax and set
their
minds off with their problems and just be one with nature

Mini-park
To enjoy more the nature, it encourages its guests to walk with the
whole
family and feel the fresh air. They also have the option to have
their meals set within the park
Market Segment
JAPA’s Garden will use the segmentation process to identify its
target market. It
is the process of segmenting a large market into smaller groups
based on
demographic, geographic, firmographic, behavioural, and occasion
type.
The market segment of Japa is based on psychographic style. Its
market is people whose lifestyle is to go out from their normal
environment and
relax in a private place surrounded by nature during their free time.
It will target
foreign and domestic corporations, organizations, schools,
families, and friends.
The demographic type of the target market segment is from 4-40
years old.
The inn also targets company employees within the vicinity of the
location.
Some employees need to work overtime and stay out late so to
ease their
dilemmas of going home late and groggy; the inn is open and
available for them to have a comfortable and peaceful sleep

The products and services of JAPA’s Inn will penetrate the target
market and will be promoted through e-mails, posters, videos,
flyers, cards and direct mails to companies
Marketing objectives

It is forecasted that JAPA will have a balance of payment in the

first year of
its operation. However, a modest growth of 20% is expected in the
2nd and third
year and a 30% growth is expected in the 4th and 5th year of its
operation.

The steady growth of JAPA could be achieved through strong

advertising
and promotion, keeping profitable customers loyal to JAPA.
The objectives of JAPA are the following
 Focus on the needs of its customers and franchise partners;
 Sustain profitability:
 Listen, observe and learn from the market;
 Possess a global perspective;
 Be accountable for its actions and inactions;
 Reward employees for taking risks and finding better ways to
solve problems; and
 Learn from our outcomes -- what works and what do not work

Marketing strategy

Strategy planning
In order that JAPA will achieve its objectives, it will make sure
that its
customers are always satisfied. Customer satisfaction can only be
achieved once
 their expectations have been met. Hence, JAPA will regularly
listen to its customers’ comments and suggestions and address all
those comments. At this point, the role of its employees is very
important. Since the At this point, the role of its employees is very
important. Since the employees are the front runners of JAPA, it is
also important that JAPA.
listens to their needs and address them. Only happy employees can
satisfy.
Internal environment analysis
JAPA has various capabilities and weaknesses.

JAPA’s Strength and Weaknesses

shows the strengths and weakness of JAPA. It has five

 strengths ranging from clarity of its vision, mission, goals and
objectives that will
serve as guide to the direction of JAPA on what they want to be in
the future
have already old habits which have been formed by their culture
and experience.
The old habits of employees do not normally appear during the
six-month training
period of the employee but it usually appears once they have been
regularized.

External Environment Analysis

JAPA has various opportunities and threats as a start-up
corporation shows the opportunities and threat of JAPA.

This shows the opportunities and threats to JAPA. Its opportunities

include the big market opportunity based on the big volume of
foreign and domestic tourists that visit People’s Park; there is also
a stable political situation in Laguna; finally, the inflate rate is
stable with people having enough extra money to spare for
relaxation. However, it has also to overcome various threats. like
the big number of competitors in the area and the natural
calamities that
affect the behavior of the foreign and domestic tourists

Feedback and control

JAPA will establish a marketing information system that will enable it to
monitor important information relevant to the success of the business such as the
feedbacks of its customers and the actions taken by JAPA’s, to address the
issues; profile of its customers and the things they like about JAPA; and lists of
suppliers and competitors.

Distribution channel
Since JAPA caters to both foreign and domestic tourists, it will establish
a consortium among travel & tour agencies for its foreign market segment and
with the local travel agencies for its domestic tourists.

Pricing strategy
JAPA’s pricing strategy is Customer-Based pricing. According to Jim
Riley, pricing is determined by what the firm believes the customers will be
prepared to pay for the products and services. JAPA follows this type of
pricing strategy, because it is a service-based business where the goal is to
satisfy the customer’s wants, needs and expectations

Marketing Budget
The management would invest approximately P100,000 for the marketing
budget of JAPA. A mix of marketing strategy will be designed to create
awareness to its target market segment. The media to be top for the job is the
following: o Print media - local newspapers, magazines, flyers
o Broadcast media – local commercials, radio advertisements
o Online media – Advertisement through social web pages such as
Facebook, twitter, YouTube, blogs and as well as our own website
o Direct mail - subscriber lists, offices for delivery
o Partnership—partnership with other establishments such as travel
agencies, hotels, motels and inns, the local government unit
Summary
JAPA’s Garden Inn proudly showcases the rich flora of Laguna that
creates a refreshing ambiance of nature. As a start-up corporation, it will be
owned and managed by its Incorporators.
JAPA’s Garden Inn offers the following services: Seven garden themed
bedrooms, Air-condition room, Bathroom with hot and cold shower, 24-hour room
service, Free Wi-fi in each room, Garden balcony, Restaurant, Complimentary
buffet breakfast, Laundry facilities, and Parking area. Some of the unique
qualities of are the following: Garden themed room, Garden balcony, La-Z-Boy
chair in each room, Playground for children (Free for in-house guests).

It will target foreign and domestic corporations, organizations, schools,

families, and friends. The demographic type of the target market segment is from
4-40 years old.
The media it will top for the job are the following: Print media, broadcast
media, online media, and direct mail.

Management Plan

A management plan is our guide for the organization to run, both day-to-
day and over the long term. JAPA’s Garden Inn exists to fulfil its commitment in
Bringing Families Together while emphasizing the conservation of nature.

The management consists of different departments with their own sets of

responsibilities, however we practice Collaborative management. A Collaborative
management is where the whole group -- which usually includes all staff and may
include participants as well -- takes part in major decisions, and everyone takes
part in decisions which affect her directly. At the same time, everyone has
enough authority to fulfil her own responsibility and do her job effectively. This
practice allows everyone to feel a sense of ownership in the organization.

Financial Plan

The initial capital requirement of JAPA is twenty million pesos (P20, 000,000)
Start-up Costs
 The start-up expense is Php 9,251,000. The start-up
expenses includes the following: Land, building, mattresses, sheets, blankets,
smoke detectors, kitchen equipment, entrance signs, decorations, garden
landscape, legal fees, promotions and advertising, office supplies, and security. If
it is deducted from the initial capital, what will be left isPhp10, 749,000

The balance sheet presents the financial position of JAPA. It shows

what the JAPA owns and what it owes to other parties.

JAPA’s Balance Sheet

The balance sheet consists of three parts: The first part is the assets
 where it identifies what JAPA owns. It includes the resources of the company
that has been obtained through transactions and the costs paid in advance that
have not yet reached its expiration; the second part is the liabilities where it
shows the amounts owed by JAPA to its creditors. It is the obligation of the
company made through past transactions and deals with the other parties;
The last part is the equity. It is the source of the company’s assets. It is the
amount contributed by the owners and the retained earnings.

JAPA’s income statement shows the projected income statement of the

business. It measures the financial performance of JAPA over a year.

It is divided into two parts. The first part is the Operating section where it
 identifies the regular business operation expenses of the Inn. The second part is
the non-operating section. It shows the expenses of the activities that are not tied
directly to a company’s regular business operations.

Cash flows statement provides Inn’s cash receipts and cash payments. It
is the movement of money into and out of the company.

here are the three components of a cash flow statement. The first
component is the Operating activities where it shows the cash generated from
the daily operations of the business. The second component is the investing
activities where it shows the buying and selling of noncurrent assets that is used
in generating revenues. And the third component is the financing activities where
the borrowing and repaying of money is shown here are three components of a cash
flow statement.

Financial Ratios
Gross Profit Margin

13000000 =
0.92 15000000
The gross profit margin indicates the business’ financial health. It is
computed by dividing Gross margin profit to sales. The projected margin for the
venture is 80%. This means that the higher percentage the more the business
retains its sales.

Current Ratio
10795000
= 1.79318936877076
6020000
The current ratio provides the company’s ability to pay its short-term
liabilities. It is computed by dividing current assets to current liabilities. The
higher the ratio, the more capable the company is of paying its obligations.

Fixed Asset Turn-over

15000000 =
1.636125654
The Fixed Asset turnover measures the ability of the company to generate
sales from the fixed assets. It is computed by dividing sales to total fixed assets.
The higher the ratio the more effective are the equipment

Total Assets Turnover.

15000000
= 0.748577702
20038000
The Total Assets Turnover measures the efficiency of the company to use
its assets to generate sales. It is computed by dividing sales to total assets.

Sustainable Development Plan

Environmental
For the next few years the Inn plans to sustain the beauty of its
environment through planning the strategies for the environmental sustainability.
According to Smallbiz connect, environmental sustainability is the action by
which natural resources are protected, preserved and nurture in order to increase
its capability to support human life. It concerns decision making on matters that
will decrease the negative impacts of the inn to its nature.

In order to protect and increase positive response from nature, JAPA

Garden Inn will practice environmental sustainability by taking care of the garden,
using organic food for guests, powering facilities with renewable energy sources,
conserving water, recycling, waste reduction, and more actions that could help in
preserving and protecting nature.

Economic

According to WiseGeek, Economic sustainability is the plan where the

resources of a company are used to the very best of its advantage. It means the
resources are used responsibly and efficiently to generate profit consistently.

Now that Economic sustainability is defined, the JAPA’s Garden Inn

plans to pursue this through taking advantage with modern technology, use of
wood and forestry products, distribution of locally produced foods, taking care of
the facilities, collaborating with a good company and a lot more practices that can
help in generating more income for the venture.

Equity
To Sharon Beder, Equity sustainability talks about fairness. It means being
fair, equal and just to all aspects of the venture. It talks about people having 45

equal access to the resources and opportunities ahead of them. Sharon Beder
emphasized that no individual should be greater than the other.
True Equity can be maintained by being fair, just, and equal with people.
No discrimination should be permitted in every organization. Having dedication is
also one practice on how to maintain equity, partnership, stewardship, and many
more that can lead to better, harmonized and united organization.

JAPA’s Expectations

JAPA’s Garden Inn expects that in its first year of operation, it will have
a balance of payment. It means that its revenue is equal to its expenses.
However, in the succeeding years, in the next two years, it will create a revenue
of 10-15%, and in the succeeding three years, it will grow by 30% as it gain loyal
and profitable customers from its target market segment and new customers.
The management also considers an expansion after all quotas and target
sales growth is achieved. By 2017, an evaluation will be done and re-assess the
planning.