MANAGEMENT INFORMATION SYSTEM

MINI PROJECT

BUSINESS PLAN

THE CORPORATE HOTEL

Preface:

What Is Business Plan All About?

This Business plan is about the Hotel which is named as THE CORPORATE. Actually this is designed for the Mini project presentation in the subject Management information system in the second semester of M.B.A., This business plan is designed by the group of students pursuing M.B.A., 2011-13 Batch in the ‘F’ Section. This group consists of 12 students in this class.

Each student is assigned a piece of job in this business plan and divided in to various departments to accomplish this plan with in a stipulated period.

The department wise student list is follows:

DEPARTMENT REG NO NAME

INDUSTRY ANALYSIS AND SERVICES

OVERVIEW

35111103323511110336

TAPAN KUMAR PRADHANRANDHIR KUMAR

MARKETING PLAN 35111103843511110388

ASWIN ANNE DHAS .SPREETHI .J

MARKETING STRATEGY

35111103433511110386

WILSON GEORGESARATH .S

SWOT ANALYSIS & MARKETING MIX

35111103583511110359

VINOTH KUMAR .DSHANMUGAM K.S

OPERATION PLAN 35111103773511110344

PREM KUMAR .ETHIRU MURTHY S

FINANCIAL PLAN 3511110328

3511110342

AMOS KELLY SYIEMIONG MANOJ .B

Contents

EXECUTIVE SUMMARY

GENERAL COMPANY DESCRIPTION

1.1 COMPANY OVERVIEW

1.2 MISSION AND VISION:

1.3 STRENGTHS AND CORE COMPETENCIES

1.4 CHALLENGES

INDUSTRY ANALYSIS

SERVICES OVERVIEW

3.1 SERVICES

3.2 BENEFITS AND FEATURES

3.3 WHY PEOPLE NEED THIS SERVICE?

MARKETING PLAN

MARKET ANALYSIS

4.1 Market Description

4.2 Market Facts

4.3 Market Size

4.4 Market Growth

4.5 Market Demand

4.6 Market Trends

4.7 Market Growth Potential

4.8 Market Opportunities

4.9 Barriers to Entry

4.10 Targeted Audience

4.11 Competition

4.14 Market Niche

MARKETING STRATEGY

5.1 Value Proposition

5.2 Branding

5.3 Marketing Objectives

5.4 Strategy

5.5 Marketing Budget

SWOT ANALYSIS

MARKETING MIX

OPERATIONAL PLAN

8.1 Service Execution Timeline

8.2 Location

8.3 Legal Environment

8.4 Personnel

MANAGEMENT AND ORGANIZATION

9.1 Management Strength

9.2 Bankers

9.5 Advisor

FINANCIAL PLAN

10.1 Start-up expenses

10.2 Revenue Forecast (3 - Year)

10.3 Profit and Loss Projection (3-Year)

10.4 Pro forma Cash Flows (3-Year)

10.5 Projected Balance Sheet

10.6 Breakeven Analysis

Executive Summary

1. THE CORPORATE HOTEL will provide HI TECH RESTAURANT,

BAR, BOARDING & LODGING SERVICES.

2. THE CORPORATE will offer automated services to all segments of

customer.

3. Owners are well educated and dedicated towards hotel business.

4. Hotel market is on the boom in Chennai.

5. Market volume is expected to reach 69 billion by the year 2014

6. A large segment of market is still untapped.

7. Current Hotel facilities record high causing increase in HI TECH

HOTEL demand.

8. Low income market segment is ignored by key competitors.

9. Hotel market is competitive in Chennai but provides equal growth

opportunities.

10. THE CORPORATE will have their own Software development group

with state Of the art Software technology equipment from quality

manufacturers.

General Company Description

1.1 Company overview:

THE CORPORATE HOTEL is situated in Chennai, Tamilnadu, India. It

was formed by SRM Students in March 2012. THE CORPORATE will provide Hi-

Tech Facility in Restaurant Fields With tablets in tables for menu selection and billing.

And also provide the Safe and secure Hi-Fi Boarding and Lodging to the Corporate

Peoples in the pleasant environment.

1.2 Mission and Vision:

Vision: To reach all over the world as the corporate peoples prefer our hotel as

First choice.

Mission: To provide dignity and HI-FI Stay to corporate peoples

1.3 Strengths and Core Competencies:

Demand for the business is high.

Certified Technical supporters with Experience to build it up.

Various Kinds of Cases are instantly available to precaution our plan.

1.4 Challenges:

THE CORPORATE will face a challenging situation in creating its

brand image and attracting customers towards their services due to presence of already

established players in the local market such as:

HILTON

LE MERIDIAN

AQUA

BENJARONG

DAKSHIN

SIX O ONE

Industry Analys is

B r i e f p r o f i l e s o f p l a y e r s i n t h e I n d u s t r y B e s t H o t e l C h a i n s O f

I n d i a M e n t i o n e d the significant hotel chains of India, Taj Group of hotels in India: The most

popular name that is almost synonymous to hospitality in India is that of the Taj Group. Offering the

best hotels across various genres like business hotels, heritage resorts, luxury hotels and even sea

resorts, the Taj Group is definitely the best in the field. The Oberoi Group of Hotels in India: One of

the most prominent names among the hotel chains of India is the Oberoi Group. It also owns several

properties in exotic places like Australia and Mauritius. With its world class facilities and efficient

staff to manage and play the perfect Indian hosts, the Oberoi hotels is no doubt a great feather on the

grand cap of tourism in India. Le Meridian Group of Hotels: The Le Meridian Group of Hotels has

played an instrumental role in playing the perfect host to the millions of tourists and guests coming

here. It is a luxury brand of great fame and reflects the inherent Le Meridian touch of elegance and

class through all its properties in India. It is no wonder one of the exclusive hotel chains of India. Best

Western Group: A world famous name when it comes to hospitality and service, the Best Western

Group owns several properties across India. Each of the hotels has been equipped with numerous

features to enable a cozy comfortable stay to the guest.

Services Overview

3.1 Services:

THE CORPORATE will provide following services:

BOARDING

LODGING

BAR

RESTAURANT

CONFERENCE HALLS

PARTY HALLS

3.2 Benefits and Features:

State of the art facility with latest equipment from quality

manufacturers

Lodging facility is fully automated & safe than others in industry.

Restaurants with the HI-Tech tables that contains tablets to order the

menus and for billing.

3.3 Why people need this service?

Safe and Highly dignity stay in hotel.

Near to airport & located in the pollution free pleasant

environment

Highly technical way of automated hotel in the country.

Market Analysis:

4.1 Market Description

According to a survey by Our team through the internet in

year 2012, it was mentioned that there are more than 150 Five star high

class hotels in Chennai in which most of them are concentrating the

party halls, meeting rooms, conference halls, multi cuisine and the

boarding and lodging in high class standards but none of the one is

concentrated to the automated robotic hotels infrastructure that we are

trying at the first time in Chennai particularly targeting the corporate

peoples.

4.1.1 Industry Life Cycle:

Hotel Industry in CHENNAI is still in the growing stage,

although it has been More than two decades of active operations. It is

clearly explained in the following graph

4.1.2 Cyclical trends in Industry:

HOTEL business is not affected by different seasons and keeps

running smoothly throughout the year

4.2 Market Facts:

Hotels market in Chennai has grown rapidly in the last 10 years,

following are the key points related to the hotel industry growth

in Chennai.

Out of the total 4,681,087 members in Chennai, 2,357,633 are male and

2,323,454 female and 34% of them are used to go for this like hotels at

least a day.

Average annual income of hotel member is Rs 76,000.

The benefits we are offering are not yet came in process in the current

industry.

4.3 Market Size:

Total market size in Chennai is almost 10638834; members are often

used to go this like of hotels. The percentage of estimated

Customers is high were there is a reliable proof to have a good

probability status for this.

4.4 Market Growth:

Hotel business in Chennai has grown at a very healthy rate in the last

decade. As of 2007, hotel Industry market reached $.17.6 billion. It

has doubled in size at almost 12.56% that was $7.8 billion in year

1995. It was a 24.1 million members market in The year 1995 this

has grown at almost 7.13% to reach 41.3 million in 2005. See the

Chart below to understand market growth.

4.5 Market Demand:

Hotel industry market in USA is getting more and more demanding with the passage of

time. Following are the common demands that have arise in recent past.

CUSTOMISATION

EASE OF SERVICE

EFFECTIVE OF EXCERCISE.

Factor Causing Market Demand

Per Capita Income Increase: Continuously increasing per capita income in the

Last decade has enable people of Chennai to encourage them to spend a lot like this way. The

mentality of the Chennai peoples also increases the demand of such hotels in Chennai.

4.6 Market Trends:

HOTEL industry has been changing its trends very quickly of late. Last five years have

seen major changes in trends such as following:

1. Individual growing mentality to lead a luxurious life.

2. Corporate peoples feel to be secure and pleasant space to make their parties,

conferences and to spend their week ends.

4.7 Market Growth Potential:

Hotel industry has a lot of potential in the future for both existing and new investors.

Market is expected to reach 60 Thousand Customers by the year 2014. Market volume

which is Rs.17.6 billion as of 2010 is expected to reach Rs.31.8 billion by the year

2014.

4.9 Barriers to Entry:

No such barriers in the entry of Hotel industry in Chennai.

4.9 Targeted Audience:

THE CORPORATE will be starting its operations in Chennai, Tamilnadu. This market

houses targets the corporate peoples who looks to stay at Chennai either for Business

purpose or for the Week end or summer or winter trip.

4.10 Competition:

THE CORPORATE will enter in a highly competitive market of Chennai, but

following three will be direct competitors of them due to their presence in the

current trend.

1) THE HILTON

2) LE ROYAL MERIDIAN

3) TAJ CORAMANDAL

4) RAIN TREE

4.11 Market Niche:

THE CORPORATE will enter in the market to serve the highly income

corporate peoples as the customer that forms 2.1% of total population in Coral

Gables who are earning more than Rs. 50,000. THE CORPORATE will provide

high price services with many more discounts as an introductory offer in the start

to attract masses, and eventually set it to competitive rate.

MARKETING STRATEGY

5.1 Branding:

THE CORPORATE will create their official website for creating a brand and company

image in the market, as well as providing Online room, party hall booking and the

online demo of our hotel architecture.

5.2 Value Proposition:

State of the art facility with latest equipment from quality manufacturers

High dignity and systematic hotel facility with the current trend updating.

Personal qualified system Maintainers to help to achieving results without wasting

much time

5.3 Marketing Objectives:

THE CORPORATE will focus on creating a brand image in the corporate vicinity.

They will participate in the routine events going to held at the Hotel.

5.4 Strategy:

THE CORPORATE will start by targeting the corporate peoples in the industry. They

will convince people about the Technology and the safety that we have adapted in our

hotel. . This will be accomplished by aggressively pursuing interaction and

relationships with other corporate peoples as well as we are going to market our hotel

directly to the top level companies mostly IT Sectors.

5.5 Marketing Budget:

THE CORPORATE has allocated Rs.1,000,00 for marketing in the year 2013. This

budget will be used for advertising on newspaper, television and printing brochures and

also direct HR advertising in the reputed companies.

SWOT AnalysisStrengths:

Management committed towards to a result orientated approach to attract and maintain customers in a highly competitive market.

The architecture and the facility of the hotel are well-thought according to the need of corporatist.

Highly Dignified, Automated and Safe service than the existing market.

Company will hire qualified and trained staff to complete this project with in the

specified time.

Weaknesses: Personal training services can be high in costs.

The hotel is low in staff that can be problem in providing service to a large Pool of members.

Hotel is short of marketing budget to attract large business client.

Opportunities:

Hotel business market is rapidly growing.

Increasing Spending power is causing people to pay attention to spend week ends with this hotel.

Corporate peoples are searching for this like of hotel services in Chennai.

A large segment of market is still untapped, corporate companies will be of special focus Hotel which is totally non concentrated by the existing competitors

Threats:

Recession and economic downturn can slow down the growth of HI TECH HOTELS.

High cost offer than the well established competitors. Although it’s a small level threat due to a fact that market is rapidly growing.

Marketing Mix

THE CORPORATE HOTEL’S marketing mix is based on the following factors of

product,

cost, distribution, advertising and publicity

Product: Hotel Services:

Restaurant

Boarding

Lodging

Party Halls

Conference Halls

Bar

Price:Penetration Pricing: THE CORPORATE will face a challenging situation in highly competitive market of

Hotel industry in Chennai. Therefore our hotel will offer the hi tech automated

restaurant also in the same price that the existing hotels providing rather to increase the customers visiting and gradually our hotel will increase its price even after break even point occurs.

Place:THE CORPORATE hotel will be located at the OMR road were there is a pleasant environment and the traffic less way from the airport which makes all the corporate peoples to reach our hotel in efficient way. It will not involve in any kind of franchise or branch network.

Promotion:

Media Advertising:Our hotel will use internet, newspapers and magazines as the medium of advertisement. In addition they will print 5,000 brochures for creating aware in the market about our hotel services and facility and distribute those broachers to all the corporate companies around the country through courier, speed post and also uses the direct HR dealings with easy internet service to order and book the halls in our hotel.

Operational Plan

Purchasing plan

Buying vs. Renting

Purchasing a Location

Lease Negotiations

Net vs. Triple Net

Free Rent

Modifications

Location Considerations

Legal Environment:

There are no current legal obligations for The Hotel.

ACTIVITIES IN A CONSTRUCTION PROJECT

(TIME LINE)

PRE-LAND PURCHASE DUE DILIGENCE (EXPECT 2-4 WEEKS) SITE SCHEMATIC DESIGN (EXPECT 1 TO 4 WEEKS) PLANNING AND ZONING APPROVAL (EXPECT 2 WEEKS TO 4 MONTHS) SITE PLAN PERMIT DOCUMENT PREPARATION (EXPECT 2 TO 3 WEEKS) LAND DISTURBING ACTIVITY –EROSION CONTROL- GRADING PERMIT (EXPECT 1 TO 2

WEEKS) SITE WORK –GRADING THROUGH BUILDING PAD (EXPECT 2 TO 8 WEEKS) BUILDING SCHEMATIC DESIGN (EXPECT 1 TO 3 WEEKS) BUILDING PERMITTING DRAWINGS (EXPECT 3 TO 8 WEEKS DEPENDING UPON PROJECT

COMPLEXITY) PROJECT PRICING (COMPETITIVE OR NEGOTIATED) (EXPECT 2 TO 3 WEEKS) VALUE ENGINEERING AND CONTRACT NEGOTIATION (EXPECT 2 WEEKS) CONSTRUCTION (EXPECT 6 TO 12 MONTHS)

Clearing the Lot Footings and Foundations Framing Windows and Exterior Doors Plumbing, Mechanical, and Electrical Roughs Siding, Roofing, and Exterior Trim Insulation and Drywall Interior Doors and Trim Cabinets, Tile, and Glass Painting, Paper, and Floor Coverings

Hardware, Equipment, and Fixtures Finish Plumbing, Mechanical, and Electrical Finish Grading and Landscaping

SERVICE EXECUTION TIME LINE

TASK Execution Period

Jan

‘12

Feb-

Dec

Jan

‘13

Feb

‘13

Mar

‘13

Apr

‘13

May

‘13

Choosing

location

Construction of

building

Web site

development

Interior

finishing work

Promotional

activities

Opening the

Hotel

Management and Organization

Management Strength:

This hotel is a partnership concern were all the management

peoples in this group are M.B.A., graduates from in the

academic year 2011-2013 passed out.

BANKERS:

20% of the total investment is by the entrepreneurs balance

amount is borrowed by the bank which providing the loan with

the lowest interest rate and easy return EMI.

Financial Plan

Start-up expenses

The start-up expenditures for THE CORPORATE HOTEL are summarized below:

Startup Expenses

THE CORPORATE,

Sources of Capital

Investment requirement Rs. 4,00,00,000 _______________

Total Investment Rs.4,00,00,000 --------------------

Startup Expenses

Land purchase 1,00,00,000Building construction 1,00,00,000Interior Design 50,00,000Hi tech Equipments 1,00,00,000Promotion 1,00,000 System Development 20,00,000Opening Function exp. 9,00,000 _____________ 3,80,00,000 ______________By Bal c/d 20,00,000(for the further Maintenance expenses)

Revenue Forecast (3 - Year) The Revenue forecast here is generated in the concept of customer arrival expectation and the earning per customer is estimated to be at the minimum of 5,000 it is briefly described in the following table.

REVENUE FORECAST (3 Years)THE CORPORATE

Year 1

Year 2

Year 3

CUSTOMERS: Year 1 : 5,000 (5,000 x 5000)

Year 2 : 7,000 (7,000 x 5000)

Year 3 : 10,000 (10,000 x 5000)

2,50,00,0003,50,00,000

5,00,00,000

2,50,00,000 3,50,00,000 5,00,00,000

Note: The above revenue statement is only the expectation it is not at all reliable source and it is just for the company’s calculation at its own break even level.

Projected Balance Sheet

Balance Sheet (Projected)

Particulars Beginning ProjectedYear 1

Assets

Current AssetsCash in bank

Accounts receivablePrepaid expenses

Total Current Assets

Fixed AssetsLand & Building Furniture

Total Fixed AssetsTOTAL Assets

Liabilities and Equity

Current Liabilities

Accounts Payable

Long-term DebtBank loans payable

Total Liabilities

Owners' EquityRetained earnings - beginning Retained earnings - current

Total Owners' Equity

Total Liabilities & Equity

2,50,00,000 3,50,00,000

2,50,00,000 3,50,00,000

2,00,00,000

1,50,00,000

1,80,00,000

1,48,00,000

3,50,00,000 3,28,00,000

6,00,00,000 6,78,00,000

000 00000

6,00,00,000 6,78,00,000

6,00,00,000 6,78,00,000

6,00,00,000 6,78,00,000

Appendix

Web sites:

http://www.bizplancorner.com/samples/health-club-business-plan.pdf

www.google.co.in

www.bizplan.com

Reference:

Buisness plan of the hotel Mayo @ California through net.

http://www.bizplancorner.com/samples/health-club-business-plan.pdf