Submission of Summative Assessment

Assessment Details

Module Code and Title MN5021 Leading Innovation and Entrepreneurship.

Course Title BA (Hons) Business Administration

Level Level 05

Cohort Spring 2022

Credit Year long

Component # Comp 004

Weight 40%

Group Report on Business Plan. (1500

Assessment Title WORD)
Module Lecturer Mr. Kiran Kunwar

Student’s Name/s University ID

Prashant Shrestha 22016005

Kunjan Baral 22016003

Som Nath Pahari 22016009

Date of submission (DD-MM-YYYY) 8th MAY 2023

Word count # 2067

 Contents
Business overview ............................................................................................................................. 1
1. Industry overview ....................................................................................................................... 1
1.2 Business idea .......................................................................................................................... 1
1.3 Form of business .................................................................................................................... 1
1.4 Idea hypotheses ...................................................................................................................... 1
1.5 Mission statement ................................................................................................................... 2
1.6 Vision statement...................................................................................................................... 2
1.7 Objectives of the company......................................................................................................... 2
1.8 Organization structure .............................................................................................................. 2
1.9 Organization culture .................................................................................................................. 3
1.10 Pre-operating activities ............................................................................................................. 3
1.11 Brief profile of CEO .................................................................................................................... 3
Business feasibility ............................................................................................................................ 4
2.1 Business environment feasibility.............................................................................................. 4
2.1.1 Internal environment assessment ..................................................................................... 4
2.1.2 External environment assessment .................................................................................... 4
2.2 Industry feasibility assessment................................................................................................. 4
2.2.1 Industry attractiveness ........................................................................................................ 4
2.2.2 Target market attractiveness .............................................................................................. 5
2.2.3 Timelines of entry into the target market ......................................................................... 5
2.3 Porter’s five forces analysis ...................................................................................................... 5
2.4 SWOT analysis.............................................................................................................................. 6
3.1 Business model canvas .............................................................................................................. 7
3.1.1 Customer segments ............................................................................................................. 7
3.1.2 Value propositions ................................................................................................................ 7
3.1.3 Channels ................................................................................................................................. 7
3.1.4 Customer relationships........................................................................................................ 8
3.1.5 Revenue streams................................................................................................................... 8
3.1.6 Key resources ........................................................................................................................ 8
3.1.7 Key activities .......................................................................................................................... 8
3.1.8 Key partners ........................................................................................................................... 8
3.1.9 Cost structure ........................................................................................................................ 8
3.2 Value proposition canvas ........................................................................................................... 9
3.2.1 Customer segment................................................................................................................ 9
3.2.2 Customer job.......................................................................................................................... 9
3.2.3 Pain .......................................................................................................................................... 9
3.2.4 Gain.......................................................................................................................................... 9
3.2.5 Value proposition .................................................................................................................. 9
3.2.6 Product and services............................................................................................................ 9
3.2.7 Pain relivers ......................................................................................................................... 10
3.2.8 Gain creators........................................................................................................................ 10
Functional strategies ....................................................................................................................... 11
4.1 Product/services strategy ........................................................................................................ 11
4.2 Financial strategy ....................................................................................................................... 11
4.3 Marketing strategy ..................................................................................................................... 14
4.4 Human resource strategy ......................................................................................................... 14
4.5 Production and operation strategy ......................................................................................... 15
Summary, conclusion and risk assessment................................................................................ 16
5.1 Critical risk assessment ........................................................................................................... 16
5.2 Summary ...................................................................................................................................... 16
5.3 Conclusion .................................................................................................................................. 16
Bibliography ...................................................................................................................................... 17
 List of figures
Figure 1 example of team structure ............................................................................. 2
Figure 2 SWOT analysis of Northlake hotel/resort ..................................................... 6
Figure 3 Business model canvas of Northlake hotel/resort ...................................... 7
Figure 4 Revenue generated ...................................................................................... 11
Figure 5 opening income statement .......................................................................... 12
Figure 6 opening balance sheet ................................................................................. 12
Figure 7 projected income statement ........................................................................ 13
Figure 8 projected balance sheet............................................................................... 13
Figure 9 cash flow statement of 3 years ................................................................... 14
 Abbreviation

CEO: Chief executive officer

MBA: Master of Business Administration

PEST: Political, Economic, Social, and Technological factors

TWOS: Strengths, Weaknesses, Opportunities, and Threats

ETOP: Environmental Threat and Opportunity Planning

R&D: Research & Development

NPR: Nepalese Rupee

Acknowledgement

I want to convey my thanks to every one of my friends and family members who helped
me finish my report. I want to express my gratitude to Mr. Kiran Kunwar, the leader of my
module, for his invaluable advice, criticism, and support throughout the procedure. Their
assistance has been extremely valuable.
 Executive summary
Purpose:
This business plan report's goal is to present a strategy roadmap for the growth and
effective management of Nepal's Northlake Hotel/Resort. The pre-operational activities,
market analysis, and competitive industry structure will be the main topics of the study,
along with the identification of prospective business problems and opportunities. The
report will also include a thorough assessment of the hotel's goods and services, pricing
policies, marketing and advertising campaigns, and administrative processes.

Summary:
A luxurious hotel and resort, Northlake Hotel/Resort, seeks to offer top-notch hospitality
services and goods, including a club, spa, restaurant, swimming pool, and
recreation center. Offering different tourist experiences and individualized service while
upholding authenticity and sustainability is the hotel's top goal. Securing the
necessary licenses and permissions, choosing a desirable location, employing and
training qualified employees, and setting up are all pre-operational operations.
 Business overview
1. Industry overview
An industry is a collection of businesses that are connected by their main lines of
activity (GORTON, 2022).
Due to an increase in international travel, Nepal's luxury hotel business is growing,
with both domestic and international rivals. Political instability, infrastructure, and
human resource management are difficult issues. Adventure, eco-friendly, and
sustainable tourism are all possibilities. High potential for profitability from hotel
rates and additional revenue sources. Forecasts call for increased tourism,
particularly during the post-pandemic recovery.

1.2 Business idea

Northlake Resort and Hotel is a premier vacation destination nestled in the heart
of a picturesque landscape. We offer guests a wide range of luxurious
accommodations and amenities, including fine dining, recreational facilities, event
venues, and spa services. Our dedicated staff is committed to providing
unparalleled service and ensuring that every guest enjoys a memorable and
relaxing stay. Come discover the beauty and tranquility of Northlake Resort and
Hotel.

1.3 Form of business

Our hotel business will be owned and run as a partnership between Hotel Barahi,
Kunjan, Somnath, and myself (Prashant).

1.4 Idea hypotheses

High-end accommodation alternatives are lacking in Nepal's booming tourism
industry, which presents a market opportunity for an opulent hotel or resort. There
is a sizable market, and the culture and scenery are intriguing. We distinguish
ourselves from competitors via superior amenities, personalized service, and a
distinctive cultural experience. Success could result from strategic collaborations
and effective marketing.

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1.5 Mission statement
Providing outstanding guest experiences while upholding a commitment to
environmental sustainability and community development will help us become the
area's top luxury resort and hotel.

1.6 Vision statement

To deliver world-class hospitality, opulent lodging, and distinctive amenities to our
visitors, all while upholding our commitment to environmental sustainability and
helping out the neighborhood

1.7 Objectives of the company

The objectives of our Northlake hotel and resort in Nepal are to deliver outstanding
guest experiences through sustainable and culturally immersing techniques, attain
high occupancy rates and revenue streams, and establish ourselves as a major
force in the country's premium hospitality sector.

1.8 Organization structure

Figure 1 example of team structure

A team structure provides for a collaborative and adaptable management style,

making it a wise choice for a luxury hotel and resort in Nepal. This organizational
structure facilitates effective decision-making and clear communication while
empowering staff to own their responsibilities and contribute to the hotel's success
as a whole.

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1.9 Organization culture
Our organization culture values excellence, authenticity, and sustainability. Our
leadership style is collaborative and empowering, with open communication and
transparent decision-making processes. We prioritize employee engagement
through training, development, and recognition programs, while fostering a culture
of diversity and inclusion.

1.10 Pre-operating activities

Picking quality supplies and equipment, picking a great site, developing a
marketing and sales plan, employing and training competent staff, and establishing
up efficient operating processes are just a few of the pre-operational tasks
Northlake in Nepal has to complete. In making decisions, authenticity,
sustainability, and legal compliance are given priority.

1.11 Brief profile of CEO

Prashant Shrestha, CEO of Northlake Resort and Hotel, has 12+ years of
experience in hospitality, an MBA in business admin, and a bachelor's in hotel
management. He previously worked at Marriott and Hyatt, and led Northlake to
numerous guest service awards as one of the best hotels in the area.

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 Business feasibility
2.1 Business environment feasibility

2.1.1 Internal environment assessment

Our luxury hotel Northlake in Nepal has a team with extensive hospitality
experience, financial resources to support operations, and strong supplier and
distributor relations. Our physical assets include a prime location and high-quality
equipment. Our organization system and culture prioritize excellence,
sustainability, and employee engagement, with a dedicated Board of Directors and
supportive shareholders.

2.1.2 External environment assessment

Political stability, growing tourism, and government incentives are identified as
opportunities in our PEST analysis for our luxury hotel in Nepal, but lack of
infrastructure, high import tariffs, and cultural differences are identified as potential
risks.

TOWS emphasizes strengths and possibilities, such as ecotourism and adventure

tourism, in order to optimize profitability while limiting weaknesses and threats.

ETOP study exposes the impact of external elements on our hotel's operations and
strategy, such as technological improvements and changing consumer
preferences.

2.2 Industry feasibility assessment

2.2.1 Industry attractiveness

The luxury hotel sector in Nepal is moderate to high in appeal, with strong customer
loyalty and moderate supply strength. There are threats from alternatives and
competitors, but there are also opportunities in green and adventure tourism. The

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 threat of new entrants is moderate, but high entry barriers imposed by regulatory
requirements and infrastructure constraints provide some protection.

2.2.2 Target market attractiveness

Our Northlake in Nepal caters to affluent guests looking for a genuine and one-of-
a-kind hospitality experience, with a focus on eco and adventure tourism. We hope
to attract individuals looking for leisure, wellness, and great service in a gorgeous
natural location by adding a swimming pool, club, restaurant, and spa.

2.2.3 Timelines of entry into the target market

Year 1: Obtain financing and permits, set up networks for suppliers and distribution,
and start the building process.
Year 2: Finish the building project, hire people, and start the soft opening.
Year 3: Start the big opening, put sales and marketing plans into action, and
increase services and facilities.

2.3 Porter’s five forces analysis

According to Porter's Five Forces analysis, the luxury hospitality market in Nepal
has low competitive rivalry, moderate threat from new entrants and substitutes, and
high bargaining power among providers and customers. We will stand out from the
competition and keep operating profitably thanks to our special location,
environmentally friendly techniques, and first-rate service.

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2.4 SWOT analysis

Figure 2 SWOT analysis of Northlake hotel/resort

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3.1 Business model canvas

Figure 3 Business model canvas of Northlake hotel/resort

3.1.1 Customer segments

Wealthy tourists looking for a distinctive and genuine hospitality experience with
an emphasis on environmental and adventure tourism.

3.1.2 Value propositions

Excellent customer service, environmentally friendly operations, a premier
position, a breathtaking natural setting, and a variety of amenities, such as a spa,
club, restaurant, and pool, are all offered.

3.1.3 Channels
Direct bookings using websites and social media, online travel agencies, and
collaborations with neighborhood travel agencies.

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3.1.4 Customer relationships
Personalized service, consistent email and social media communication, and
loyalty programs.

3.1.5 Revenue streams

Bookings for rooms, food and beverage sales, spa and wellness services,
reservations for events, and collaborations with nearby companies.

3.1.6 Key resources

Good location, highly qualified employees, environmentally friendly infrastructure,
cutting-edge technology, and robust distribution and supply networks.

3.1.7 Key activities

Services to visitors, operations and upkeep, marketing and sales, and employee
development.

3.1.8 Key partners

Local governments, travel agencies, event planners, and suppliers and distributors
in the area.

3.1.9 Cost structure

Salaries and benefits for employees, costs for purchasing and maintaining
equipment, marketing and advertising charges, taxes and license fees, and utility
costs.

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3.2 Value proposition canvas

3.2.1 Customer segment

Wealthy tourists looking for a distinctive and genuine hospitality experience with
an emphasis on environmental and adventure tourism.

3.2.2 Customer job

Taking a restful and pleasant trip, taking in the local culture and beauty, networking,
and socializing.

3.2.3 Pain
Issues with accessibility to nearby sites, language and cultural hurdles, and worries
about the impact on the environment.

3.2.4 Gain
Feeling renewed and revitalized, learning new viewpoints and taking part in new
activities, and making lifelong memories.

3.2.5 Value proposition

Our luxury hotel offers first-rate customer service, environmentally friendly
methods, a prime position, a breathtaking natural setting, and a variety of
amenities like a swimming pool, club, restaurant, and spa, enabling our guests to
have an incredibly distinctive and genuine hospitality experience.

3.2.6 Product and services

A wide range of amenities, including a swimming pool, club, restaurant, and spa,
as well as cultural and adventure trips, are offered. They also include luxurious
rooms, eco-friendly facilities and practices, premium packages, individualized
services, and excellent facilities.

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3.2.7 Pain relivers
Sustainable efforts, multilingual staff, and simple access to the region's attractions.

3.2.8 Gain creators

Excellent service, individualized encounters, breath-taking views, a variety of
amenities and activities, as well as excursions that combine adventure and local
culture.

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 Functional strategies
4.1 Product/services strategy
In Nepal, the Northlake Hotel/Resort provides top-notch hospitality services and
goods with a focus on providing unique tourist experiences and customized
treatment. The highest quality is guaranteed by stringent quality control processes
and ongoing R&D initiatives. Other concerns include protecting intellectual
property, offering competitive pricing, and using sustainable sourcing.

4.2 Financial strategy

Figure 4 Revenue generated

The operation of North Lake Resort and Hotel is supported by both stock and debt
funding, with four shareholders providing 80% of the total capital investment and
a bank loan providing the remaining 20%. Debt finance offers access to additional
funds, while equity financing offers stability and a participation in the business'
performance.

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 Figure 5 opening income statement

The income statement for North Lake Resort and Hotel reveals NPR 58.8 million
in revenue from a variety of sources. Operating income was NPR 19.3 million after
operating expenses of NPR 4.5 million. The net income after taxes was NPR 1.96
million after interest costs and taxes, demonstrating the necessity for cost-cutting
initiatives or revenue-boosting tactics.

Figure 6 opening balance sheet

The financial sheet for North Lake Resort and Hotel lists liabilities totaling NPR
193,040,000 and assets totaling NPR 915,000,000. Equity held by shareholders is
NPR 720,000,000. After taxes, net income is NPR 1,960,000. It offers information
about capital structure, solvency, and liquidity. Liquidity and solvency are assessed
using the current and debt-to-equity ratios, respectively.

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 Figure 7 projected income statement

Revenue, cost of goods sold, and gross profit for North Lake Resort were stable
at NPR 58,800,000, 35,000,000, and 23,800,000. Operating costs increased in
years two and three, respectively. Operating income decreased in years two and
three, respectively. From year 1 to year 3, net income after taxes rose.

Figure 8 projected balance sheet

In its inaugural year, North Lake Resort and Hotel had NPR 720,000,000 in
shareholders' equity, NPR 720,000,000 in liabilities, and NPR 915,000,000 in
assets. The following years saw a minor growth in assets, and the net income after
taxes rose from NPR 1,960,000 in year one to NPR 2,254,000 in year three.

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 Figure 9 cash flow statement of 3 years

According to the financial statement supplied, our company's predicted cash flows
for the next three years include cash inflows and outflows as well as a bank loan
of NPR 180,000,000 each year. Year 1's net cash flow was significantly negative,
but years 2 and 3's net cash flows were positive. Keep in mind that this is merely
a projection and might not correspond to real financial performance.

4.3 Marketing strategy

With a lavish Nepalese resort that emphasizes wellness, nature, and culture, target
rich travelers. Outdoor activities, spa treatments, upmarket amenities, and
exclusive local experiences are included in premium packages. Exclusive pricing,
internet marketing, partnerships with upmarket travel agencies, and a strategic
location. Professional staff members offer personalized assistance to ensure an
outstanding visitor experience. Genuine Nepalese culture is elegantly displayed in
the surroundings, interiors, and architecture.

4.4 Human resource strategy

Create a workforce plan to determine your staffing requirements. To find and hire
the best people, use recruiting and selection procedures. Put a motivational
strategy in place to keep workers motivated and productive. To improve skills and
professional progress, offer opportunities for training and development. To keep
top talent, put employee retention methods into practice.

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4.5 Production and operation strategy
The emphasis of our hotel/resort's production strategy should be on delivering
great guest experiences through a blend of first-rate service, opulent facilities, and
careful attention to detail. To maintain smooth operations and optimize revenue,
the operating technique should place a strong emphasis on the efficient and
effective administration of resources, including staffing, inventory, and facilities.

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 Summary, conclusion and risk assessment

5.1 Critical risk assessment

Economic instability, natural disasters, political instability, security concerns,
shifting client preferences, and fierce rivalry can all pose serious risks to our
Northlake.

5.2 Summary
According to the business strategy, high-end guests will be the target market for
our luxury hotel and resort in Nepal. It comprises tactics for production, pricing,
marketing, and staff planning. However, there are important risks to take into
account, such as severe competition, political instability, and natural disasters.

5.3 Conclusion
With its emphasis on high-end guests and strategic planning, our project luxury hotel or
resort in Nepal has a chance of succeeding. For long-term success, important risks must
be carefully considered and mitigated.

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 Bibliography
chart, l., 2023. lucid chart. [Online]
Available at: https://www.lucidchart.com/blog/types-of-organizational-structures
[Accessed 30 April 2023].
GORTON, D., 2022. Investopedia. [Online]
Available at:
https://www.investopedia.com/terms/i/industry.asp#:~:text=Investopedia%20%2F%20Zo
e%20Hansen-
,What%20Is%20an%20Industry%3F,into%20larger%20categories%20called%20sectors
.
[Accessed 30 April 2023].
KOPP, C. M., 2023. Investopedia. [Online]
Available at: https://www.investopedia.com/terms/p/partnership.asp
[Accessed 30 April 2023].

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