BUSINESS PLAN

EXECUTIVE SUMMARY
We seek funds for the acquisition and renovation of Eight Ele Hotel and Resort, an adult-

marketed, 17-room "boutique style" hotel specializing in a couples' "getaway" to provide

relaxation and recreation in Mall Road, Lakkar Bazar, a popular tourism spot located in

Shimla, Himachal Pradesh. Moderately priced between the high-line hotel properties and the

older motel strips, Eight Ele Hotel and Resort shall fill an affordability niche.

Combined with an on-site lounge, grill, poolside beverage service, and morning continental

breakfast bar, we are seeking investment funds to renovate the hotel building, build-out a

piano bar/lounge area with dance floor, and construct an outdoor pool adjacent to the indoor

pool. With this refurbishment and other new amenities Eight Ele Hotel and Resort will form

the basis of a highly profitable hotel venture. We are seeking funds to develop and expand the

business in a phased approach, as highlighted within this document.

The foundation for the plan is a combination of primary and secondary research, upon which

the marketing strategies are built. Discussions and interviews were held with a variety of

individuals involved with other similar businesses to develop the proforma data, review the

market potential, and competitive situation.

Our hotel's design elements and furniture will reflect this "organic" approach and provide an

overall comfortable experience Eight Ele Hotel and Resort shall specialize in meeting an

individual or couple's needs. As growth warrants, the 10-acre site would allow for future

expansion of the lodging portion of the resort.

The Eight Ele Hotel and Resort will be a partnership limited liability business company

In which the major owner will have unlimited liability. The company will provide the

Facilities to run a (17-20 rooms) hotel, conference rooms, restaurant and SPA among

Other services such as business centre, laundry, and others.

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Our ideal customers would be a high-class, middle-class family and especially couples, they

will come to spend their vacation at our resort and create remarkable memory with special

packages that we organize for them.

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DESCRIPTION OF THE BUSINESS

Eight Ele Hotel and Resort is a 4* star resort and offers accommodation and association

services to local, regional, national and international tourists and travelers.

The particularity of our hotel is that it offers the best services in the area, the maintain the

traditional aspects of the design, in additional to artisanal workshops and handcrafts activities

Low scale hotel & resort (15-20 rooms), convenient located to direct view of the hills. It will

offer a luxury but modest relaxing environment for not only international tourist but also for

the local people looking for a nice place to spend the weekends or short vacations (e.g.

summer school vacations, carnival, etc.)

Also, it is expected that we will offer to our customer excellent facilities to host special events

as seminars, weddings, private parties, etc. Also, it will include a SPA Package for those

tourists looking for a place to relax and invest some money in theirs body treatment (e.g.

facials, massage therapy, and others.)

Differentiating the type of business service offered, from that of the competition, will assist

not only in building the Hotel & Resort brand as a whole, but will attract frequent business

travelers, who requires a higher level of personal service and recognition.

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NAME OF THE BUSINESS

Eight Ele Hotel and Resort

LOCATION

Mall Rd, Lakkar Bazar, Shimla, Himachal Pradesh

VISION

Our vision is to exceed the expectations of our guests, inspire and reword our associates and

respect the environment as well as the cultural difference of the local community

MISSION

Eight Ele Hotel and Resort will be dedicated to provide its guests with the highest quality of

service in a luxury still modest environment. It will value the place in the community within

it will operate and will work to develop those relationships and to respect and protect the

environment.

Eight Ele Hotel and Resort will continuously strive to create value for both owners and

investors while honoring the brand values and encouraging it staff to develop themselves in

an environment of trust, loyalty, caring, and team work.

CORE VALUE / GOALS

Active leaders: We develop actively to the local community

Respect: We respect the objectives of our shareholders, the values of our guests, and the

culture difference in the locations in which we operate.

Teamwork: Each team member brings his own creativity, passion and individual expertise to

complete the whole picture.

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Integrity: We are honest and straightforward in our interactions with shareholders, guests,

colleagues and the communities in which we operate.

Satisfaction: Our customer’s satisfaction is our first priority

Attentiveness: We offer typical services, adopted and customized to the needs of each

customer.

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Ethical Issues

Our services will be provided with high quality and reasonable prices. Environmental friendly

is our priority in operating the business.

3 core principles

1. Customers: we will treat all customers fairly and gentle by charging them with reasonable

prices. We will consider customers as our guests and serve them with pleasure to have them

feel very delightful.

2. Quality: we focus on quality rather than just seeking for profits. Each and every service

will be of high quality and hygienic. To provide services to customers from heart is our

obligation.

3. Environment: we will try to be environmental friendly as well as try to promote “Green

marketing” to our customers.

BUSINESS GOALS

Short-term Goals: (less than 1year)

1. Increase our marketing strategy: We will try to advertise as much as possible to show

that our resort is available and welcome for customers to visit. When customers visit our

resort, we will make different surveys to learn what our customers need and satisfy the most.

2. Strengthen our relations with customer as well as our employees: We will build strong

customer base by offer high quality services and amazing benefits to them. Also, we will

uphold the turnover of our employee to a very low level by provide training, suitable salary

plus great benefits to maintain effective workforce.

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Intermediate: (1-5 years)

1. Increase revenues to generate profits: We will increase our revenues to reach our long-

term goals and generate more and more profits to expand our business and investment.

2. Adjust major changes to meet customers’ demands: Throughout one-year experience in

our business, we are now able to learn a lot from customers’ desires and adjust changes to

meet their demands and therefore we can attract more customers into our resort.

Long term goal: (5year and over)

1. Increase our investment: We will invest more into our business which would lead to

expansion and at the same time we will also replace some old parts of our operations to a new

one

2. Increase prices by 5%: we will increase prices at our resort by 5% because our customers

have already known and experience how good our services are but it will still maintain

reasonable prices. In addition, we also have to increase our profits to cover up the costs.

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STRATEGIES

Final step
Step two Step three
Step one Develop a
Targeting Develop suitable
Markets
(select target product marketing
segmentation
markets ) positioning mix

Our marketing strategy’s objective is to communicate the unique set of products and

Services that we will offer to our hotel’s guests. We attempt to direct the focus of our

Customers to the issues of quality and value for the money as opposed to simply the

Bottom line costs associated with their staying time in the hotel.

Our marketing strategy will allow us to communicate our brand values, develop close

Working relationships with our creditors, customers and suppliers and to manage the

Needs of our guests in an effective manner. Continued differentiation and growth are two

Goals we have set for ourselves. Growth will take place by targeting new areas of

Business within both local and international communities.

MARKETING OBJECTIVES
• To share our strategic objectives with potential creditors in order to properly fund the

Initial capital investment to build the facilities.

• To communicate how loyalty amongst our guests will be developed by providing a

Positive hotel experience to them.

• To establish the hotel starts up revenues, profit and growth target goals within the

given time and budget action plan.

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MARKETING MIX STRATEGY

The Hotel will be positioned as a five star plus, tourist and business traveller’s hotel,

strategically located and offering a high level of personal service. Our focus is on

offering our guests added value and differentiating ourselves in our levels of personal

service. We provide a quality hotel experience where guests are valued, respected and

Their business is truly appreciated. In this section, we will review some important

Elements of our marketing mix strategy to accomplish our goals.

Product: The Hotel will provide the customer- guests with an alternative to the
Impersonal, large five star properties in the city. Strategically located, our property will

Enable our guests to be at the heart of the business community and yet in an environment

Of calm and professionalism nearby the Panama Canal facilities. We seek to differentiate

Our product and services in the following areas:

• Personal recognition of our frequent travellers.

• Luxurious rooms that offer a sense of doing business from 'home.'

• Staff that have a strong customer-service ethic.

• Business and relaxing facilities to pamper customer’s loyalty.

Place: Service information will be sold to the guest via personal

Selling, direct marketing, advertising and the Internet. Delivery channels include travel

Agents and international reservations systems.

Price: Pricing strategy will be consistent with the differentiation objective, to provide added

value for a reasonable rate as opposed to discounting and devaluing our products and services.

SPA and others facilities (e.g. restaurant & bar) will be managed by out-sourcing the service.

The hotel will provide the facilities and establish the service policy and strategy to ensure that

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the out-sourcing contractors will provide be aligned with the hotel marketing plan. Revenues

generated from the SPA and other facilities have been considered as part of the hotel total

estimated revenues.

Promotion: Primary focus will remain on mass communication via print ads
In trade publications and on the Internet. Direct mail campaigns to existing and

prospective clients will increase as a cost effective means of targeted campaigning.

Personal selling in the local market will remain an important element of the mix

In order to build long-term relationships within the local community and generate the

Initial high levels of corporate activity require funding the target growth.

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SWOT ANALYSIS
The following analysis highlights the internal strengths and weaknesses of our

organization and the opportunities and threats facing the company in our external

Environment. We must work to improve our areas of weakness.

Organizational strengths must be leveraged in order to capitalize on external

Opportunities as they arise, and contingency plans formulated in order to deal with threats

Presented by the environment.

Strengths
The Hotel's strengths can be identified as follows:

 Strategy: established differentiation strategy.

 Structure: flat, decentralized structure.

 Skills: diverse range of service skills within management and staff.

 Style: strong, participative culture.

 Staff: specialized and experienced staff well motivated and highly skilled.

 Shared Values: clear and well communicated.

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 Brand Strength: brand values well represented engendering brand loyalty

Amongst existing and new guests.

 Reputation: promote a strong reputation within the local market and corporate

And travel trade markets for reliability, exemplary service and quality.

Weaknesses
The Hotel's weaknesses can be identified as:

 Capital Investment: require approval of credit lines from local banking to

Properly fund the initial capital investment to build the facilities.

 Seasonal revenues: the flow of tourist cycle that occurs during spring-summer

Seasons versus winter should be considered and manage.

 Staff: seasonal turnover requires on-going training and orientation of new staff.

Opportunities
The Hotel's opportunities can be seen as:

 Market: returning growth after a period of slump

 Competitors: no direct competition exists at present, in terms of the SPA

Package

 Suppliers & Staff: Supplies (materials) and Staff (Personnel) required to run the

Facilities could be obtained from the local market

 Guest Dependency: repeat corporate business based on personal service and

Quality, in a small but luxurious environment.

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Threats
Threats to the Hotel have been identified as:

 Market Entry: potential for a competitive, global brand to enter the market with

A similar product.

 Substitutes: fully furnished and serviced business apartments offering lower

Daily rates.

 Economy: recovery from slight recession may take time.

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FINANCIAL REQUIREMENTS

Initial investment:

Advance deposit (rent) Rs 1000000

Construction and furniture Rs 1500000

Infrastructure Rs 800000

Licencing Rs 200000

Total Rs 3500000

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FIXED EXPENSES:

Salaries Rs 300000

Utilities Rs 50000

I
insurance Rs 2000

Legal
and accounting Rs 10000

General charges Rs 20000

Loss and break Rs 10000

Advertisement Rs 20000

Monthly rent Rs 100000

Total Rs 512000

Expected sales Rs 4000000

Income Rs 1000000

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TARGET MARKET ANALYSIS

The Hotel is a beach & resort 4*+hotel comprising 15-20 luxury guest rooms and

specializing in servicing tourists and corporate clients. It serves the business community,

and visiting business travelers, in the city of shimla.

Key to our business success is the level of customer loyalty and repeat business

We will receive on an annual basis. We will offer our guests the most up-to-date technical

Business facilities, both inside the rooms and within the hotel's conference facilities.

Also, we will offer excellent SPA facilities for relaxation and body treatments. Our

guests feel that they can conduct their business from within a less austere atmosphere

than can be experienced in our competitive properties, where there is less personal

recognition. They will appreciate being called by name when they arrive, and having the

staff remembers their specific requirements, time and again. This is key in developing the

relationship beyond an initial stay and evidences our added value in relation to

competitive properties in the vicinity.

Target customer
The Hotel will offer value and benefits to our clients, over and above the standard of our

facilities and affordable rates. We seek to provide our guests with an exemplary personal

service, and level of recognition that they have come to rely upon. We will provide our

guest with a luxurious, relaxing environment within which to conduct their business or

vacations and that our hotel customers would not be able to find at other more impersonal

competitor hotels.

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Market Trends
 Corporate Travel Policies: As a result of various security issues, as regards

traveling in both domestic and international markets, there has been a significant

drop in corporate guests visiting the city. Although the level of corporate room

business appears to be increasing again, it has had a significant affect on last

year's result and consequent projections for the future.

 Local Business Trends: There has been a period of low activity in the area of

conferencing and business catering with local companies electing to conduct

meetings and seminars on their own premises in order to cost cut. This is

changing however as group bookings, incoming visitors and

day use of conference facilities is on the increase.

 Economic Cut Backs: The city has not cancelled any major trade events over the

last two years. Exhibitions held at the halls had attendance figures much lower

than expected. All booked events for the upcoming 12 month period however;

including the Miss Universe Pageant Show and other Fashion Exhibitions have

pre-booked attendance figures inline with expectations and in some cases in

excess of projections.

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SOCIAL RESPONSIBILITY

There are 6 major areas in which we will concern about the most:

1. Supplier: We will make good relations with all of our suppliers to guarantee high quality
products and minimize delay or late supplies and especially eliminate betrayal. We will buy
high quality products, include our inventory and furniture, from countries around the world
but we will buy fresh seafood from fishermen located near our resort.

2. Employees: We will treat all of our employees fairly and motivate them to work more by
offering bonuses and other benefits plus training courses in order to improve their work
performances. Our employees must be over 18, given full rights and privileges as well as
offering suitable wages and responsibilities.

3. Investor: We will definitely be honest with them and we will not betray our investors by
given all sort of fake financial transactions include financial reports, accounting analysis,
stock-price, share, and so on. We will cooperate together to expand our business and discuss
any problems together to find solutions to it.

4. Customers: We will obey consumerism by using high quality products plus providing
excellent services to them and get rid of unfair pricing; especially we will not practice
collusion. Moreover, we will listen to their comments and adjust changes if possible.

 5. Environment: As mentioned, our priority in operating this business is to be environmental

friendly. We will have water purifier system to convert dirty or used water to clean
water before we flow it into the sea. Furthermore, instead of using electricity supply, our busi
ness will equip with solar power to generate energy throughout the resort. We will regulate
daily waste-control throughout the resort especially the beach.

6. Local and the international community: we will get involved in charities on specific

or particular days or events and many other special occasions as well. During those days, we
will invite orphans teams from some organizations to perform their special talents, such as
tradition dance and music, and the revenues from those performances will directly give to
orphans rather than our resort’s revenues. As a result, our customers perhaps might feel that
they are also engaging in those charity programs as well.

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ORGANIZATION STRUCTURE

The founder of the company will manage the hotels growth and organization jointly with the
management team. All staff, sales and marketing personnel will report to the management
team as per the organization chart in the following chart.

President &
General
Manager

Human Director of Director of Director of

Resources Operations Finance Business

Maintenance & Information Marketing

Housekeeping System Sales Manager Manager
Manager Manager

Management
There are two levels of management in our resort, with 4 different types of managers as
follows:

• General Manager

• Operations Manager

• Marketing and Advertising Manager

• Accounting Manager CEO and General Managers will be the co-owner of our resort.

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JOB DESCRIPTIONS

The job descriptions at the Paradise Island Resort will be as follows:

• CEO

will be responsible for monitoring the overall performances of the business as well as the

effectiveness of each manager’s performance contributes to the business .Moreover, she will

also has to report the business’ operation performances such as the progress, financial

transactions, marketing, business’ operations compare to its competitors, so on and so forth to

the investors. She will has to use all of his strategies and skills such as decision-making skill,

conceptual skill, technical skill, human relation skill and time-management skills to bring

forward the success of the business in the sense to maximize the business’ revenues, minimize

the costs and get ahead of its competitors.

• Accounting manager

Will be responsible for the financial transactions and the money circulations of the business.

She will analyse and report the business’ revenues, expenses and eventually profits to the

CEO in response to the business’ performance and immediately coordinate with CEO to find

solutions for the business if financial crisis present. She will also monitor her subordinates,

financial manager, in the above-mentioned performances. She will then responsible for the

deposit of money into the bank, withdraw for use if necessary and interact closely with the

bank for the financial records together with the contract agreements of the business regard to

profit-and-risk shared among partners.

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• Operating manager

Will be responsible for the daily processes and operations of the business. He will has to

ensure that the business is in order and stability since the resort is very huge, therefore

everywhere has to be safe for customers. In addition, he will have to monitor and manage the

products and materials available at stock, make sure it would not run out and that it meets the

customers’ demands. He will responsible for the IT system of the business as well which

include the wireless connection, business’ software, latest technology of food orderings,

security camera and so on and ensure that all the technology system used within the business

are function properly by manage and monitor her subordinates also. Moreover, he will direct

that enough foods and beverages are being provided to customers. Other than that, he will

report the business’ overall daily operations to CEO to seek out the weaknesses in order to

improve the business’ performance as well as to identify the progress or the decline of the

operations.

• Marketing and Advertising manager

Will be responsible for the advertisements and market of the business. He will also

responsible for the locations and payments of those advertisements as well as in which sectors

will the business’ advertisements going to held such as billboards, spot advertisements on

television programs, newspaper, magazine, stickers, so on and so forth. He will have to use all

of her strategies, most importantly her creativity, to ensure that people get to know our

business and that our business is being promoted since our business is pretty far from the city,

Bamboo Island at Sihanouk Ville, therefore people will have to spend a lot of money to get

there. So eventually our business has to spend enormous amount of money on advertisement

at first race. He will also manage the promotions of the business in each session, especially

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during important festivals which is a great opportunity to attract landslide of customers to the

business such as New Year eve, Christmas, and many other Khmer celebrations.

• General Manager

Will be responsible for the hiring, training, and firing, motivating, encouraging, and

sponsoring the employees within the business as well as the compensations to those

employees. She will have to monitor the staff’s performance and will retain face-to-face

discussions with those employees who face difficulties in performing their jobs and for those

who do not show ethical behaviours toward the business. Additionally, she will has to make

sure that all of the products and materials that the business used are at high quality withlong

extent of expire dates also the services provided to customers by the employees have to be at

high quality so that it meets the business’ standards plus the demands require by most

customers. Once again, she has to report the training, quality assurance, and the management

of human resources’ progression to CEO so that the problems and difficulties would be find

out to seek the solutions and adjust to changes.

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JOB SPECIFICATIONS

The job specifications at the Paradise Island Resort will be as follows:

• CEO

Must have a minimum of 5 years experiences in managing business (es) and have at least

Master degree for the relevant field. She must have excellent interpersonal skills and fluent in

both English and Khmer. We demand the CEO as strategic leader in which she would have

full capacities of understanding the complexities of both the organization and the environment

and to lead changes in the organization so as to enhance its competitiveness..

• Accounting Manager

must be at least engage in Master degree of Accounting or Finance majors and have at least 3

years experiences in related fields. She must be specialize in organizing and advance in

conceptual and time management skills.

• Operation Manager

must be at least engage in Master degree of Business Administration or Management majors

and have at least 3 years experiences in related fields .He must be specialize in planning,

leading, organizing, and controlling. Additionally, he must be advance in technical, human

relations, conceptual, decision-making, and time management skills.

• General Manager

must have minimum Master degree of Business Administration or Management majors and

have at least 5 years experiences in related fields. She must specialize in planning, leading,

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organizing, and controlling as well as advance in technical , human relations, conceptual,

decision-making, and time management skills.

• Marketing and Advertising Manager

must be at least engaging in Master degree in Marketing majors and have at least 3 years

experiences in related fields. He must be specialize in planning, organizing, creative,

controlling and advance in technical, human relations, conceptual, decision-making and time

management skills.

TRAINING EMPLOYEES

Our employees will have variety of skills that they will bring to the workplace. Some of

themhave a lot of experiences that our resort needed and also the employees that do not

haveexperiences, so we will organize the on-the-job training for them. Because our resort

need to provide high quality service to customers, that is why training is an important course

for our workplace. Our resort has training manager who will responsible for training new

employees,so we will let the new employees work 3 months for training with suitable salary

as their working. While they’re on-the-job training, we will have the projects that give

employees’exposure to other parts of the business and allow them to take part in new

activities. After training, it can provide big payoffs for the employer in increasing staff

productivity, knowledge, loyalty, and contribution. Every 6 months, there will be off-the-job

training to improve employee’s performance and effectiveness.

Compensation

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Our resort will be won by CEO and General Manager, so we do not expect any salaries except

the profit that we will get from the business. Operation manager will earn Rest 33,00,000 per

year because he will have a lot of work to responsible and organize in our resort and also

require a lot of experiences and efforts in management skills and the overall business

operations. Marketing and Advertising manager will receive 22,00,000 per year because he

will have to use a lot of creativity in performing his works and also he will have to coordinate

with many different people include consumers as well as the advertising agents to deal with

consumer’ desires.

CONCLUSION

Hotel usually provide service for traveller but Eight Ele hotel and Resort and Spa

had made business model innovation in their business plan which is, they are going

to address business people in their campaign. Our target market is increasing and

opportunity of addressing our campaigns and offers to foreign business people is

appropriate as there is constant increase in tourism activities around Shimla

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BIBLIOGRAPHY

1. WWW.SHIMLA.HOTELS

2. WWW.WIKIPEDIA

3. WWW.RESORTS&CLUBS

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