Business Proposal
Business Proposal
Business Proposal
Introduction
1.2 Hotels
A hotel is an establishment that provides paid lodging on a short – term basis. Facilities
provided may range from a modest – quality mattress in a small room to large suites with
bigger, higher – quality bed, a dresser, a refrigerator and other kitchen facilities, upholstered
chairs, a flat screen television and en – suite bathrooms. Small, lower priced hotels may offer
the most basic guest services and facilities. Larger, higher prices hotels may provide additional
guest facilities such as swimming pool, business centres, childcare, tennis or basketball court,
etc.
1.3.1 Entry Level Job Opportunities - It’s frustrating to discover that you can’t get a job
without experience when you certainly can’t get experience without a job. Unlike many
industries that demand years of work experience even for low-level positions, the hospitality
industry offers a wide range of career options for relatively inexperienced individuals with the
proper training.
1.3.2 A Relaxing Work Environment - Few career paths centre on helping people relax and
get away from the hectic ups and downs of everyday life. Individuals who work in hotels and
resorts enjoy the same welcoming environment that attracts tourists in search of a good time.
When you are surrounded by happy vacationers, you cannot help but absorb some of that calm
and pleasurable “vacation vibe.”
1
1.3.3 Competitive Pay Rates - High paying hospitality jobs are abundant all over the world.
Although rates of compensation differ from field to field and location to location, hospitality
positions offer solid starting salaries and ample opportunity for pay increases.
1.3.4 Career Advancement - Worldwide, the hospitality industry takes in approximately $3.5
trillion per year. This money is divided among a wide variety of employers. From large hotel
chains to roadside motels to exclusive resorts and casinos, a career in hospitality can lead an
ambitious worker in countless directions.
1.3.5 Job Benefits - Because many hotels are owned and/or operated by major companies such
as Marriott, Hyatt, and Hilton, they know what it takes to stay in business. In large part, this
means offering great benefits in order to attract and retain exceptional management team
members and staff workers.
Establishment – 2020
Headquarters – Dehradun
Scarlet group of hotels is an establishment that provides paid lodging on a short-term basis.
Facilities provided may range from a modest-quality mattress in a small room to large suites
with bigger, higher-quality beds, a dresser, a refrigerator and other kitchen facilities,
upholstered chairs, a flat screen television and in-suite bathrooms. Small, lower-priced
category may offer only the most basic guest services and facilities. Larger, higher-priced
category of hotels may provide additional guest facilities such as a swimming pool, business
centre (with computers, printers and other office equipment), childcare, conference and event
facilities, tennis or basketball courts, gymnasium, restaurants, day spa and social function
2
services. Hotel rooms are usually numbered (or named in some smaller hotels and B&Bs) to
allow guests to identify their room. The boutique, high-end hotels have custom decorated
rooms and offer meals as part of a room and board arrangement. The hotels also serve food and
drinks to all guests within certain stated hours. Timeshare and destination clubs are a form of
property ownership involving ownership of an individual unit of accommodation for seasonal
usage. Memories are meant to be revisited. We invite you to experience Scarlet Group of
Hotels, worldwide through the eyes of fellow travellers and share unforgettable moments from
your own stay.
2.2 Objectives
To plan, promote and protect by lawful means, the interests of the hotel industry.
To secure for the Industry its due place in India's economy, and highlight its crucial role
in the service of tourism industry.
An objective of the hospitality business is to provide personalized service, using
technology to capture guests’ preferences in rooms, pillows, amenities and other
conveniences.
Providing immaculate housekeeping throughout the hotel sets the bar high and
challenges everyone on the staff to take responsibility for exceptional cleanliness.
To help raise the standards, growth, efficiency and an image of the Industry both in
India and abroad.
To project the Industry's role as a contributor to employment generation, through
expansion of services for domestic/export markets.
3
To aim for globalisation of the Industry and its integration with the world economy in
conformity with the national policies.
To give high priority to activities designed to bring about improvement in the
performance of Industry such as Energy Conservation, R&D, Export, Technology
Transfer and Development, Human Resources Development, Quality, Productivity etc.
2.3 Vision
The Scarlet Group of Hotels is a place where the genuine care and comfort of our guests is our
highest motto. We pledge to provide the finest personal service and facilities for our guests
who will always enjoy a warm, relaxed, yet refined ambience.
2.4 Mission
We are committed to meeting and exceeding the expectations of our guests through our
unremitting dedication to every aspect of service. We are committed to the growth,
development and welfare of our people upon whom we rely to make this happen.
2.5.1 Strengths
The first step to a SWOT analysis of hotel industry will be identifying its strengths. These are
the characteristics of the business or project that give it an advantage over others.
2.5.2 Weaknesses
Next in line is assessing the weaknesses. These fall under the characteristics of the business
that place the business or project at a disadvantage relative to others.
2.5.3 Opportunities
The third strategic element to a SWOT analysis is the opportunities. Opportunities are the
elements in the environment that the business or project could exploit to its advantage.
2.5.4 Threats
Where there are opportunities, you will also find threats. Threats are the elements in the
environment that could cause trouble for the business or project.
5
If the climate threats grow, long distance travelling might decrease and thereby hurt the
sector.
An ageing population makes it even harder to recruit labour.
Terrorism and political unrest.
3. Organizational Structure
Share
Holders
Board of
Directors
Chief
Executive
Officer
Genaral
Manager
3.1 Share Holders - Shareholders or stockholders are individuals or institutions that legally
own one or more shares of stock in the industry. They can be referred to as members of the
hotel industry or any other undertaking. Legally, a person is not a shareholder in a corporation
until his or her name and other details are entered in the register of shareholders.
3.2 Board of Directors - A board of directors is a recognized group of people who jointly
oversee the activities of an organization, which can be either a for profit business, non-profit
organization, or a government agency. Such a board's powers, duties, and responsibilities are
determined by government regulations (including the jurisdiction's corporations law) and the
organization's own constitution and by laws.
6
3.3 Chief Executive Officer - Chief executive officer (CEO) is the position of the most senior
corporate officer, executive, leader or administrator in charge of managing an organization –
especially an independent legal entity such as a company or non-profit institution. CEOs lead
a range of organizations, including public and private corporations, non-profit organizations
and even some government organizations.
3.4 General Manager - A General Manager is an executive who has overall responsibility for
managing both the revenue and cost elements of a company's income statement, known as
profit & loss (P&L) responsibility. A General Manager usually oversees most or all of the
industry's marketing and sales functions as well as the day-to-day operations of the
undertaking.
3.5 Food and Beverage Manager - A Food & Beverage Manager forecasts, plans and controls
the ordering of food and beverages (drinks) for a hospitality property. He also manages the
finances related to the whole process of purchasing food and drink for the hotel premises.
“Purchasing” includes sourcing, ordering and transporting of food and beverage.
3.6 Housekeeping Manager - Managers supervise housekeepers in their duties and ensure that
they perform to the prescribed hotel standards. Housekeeping duties include cleaning and
turning down rooms, re-ordering rooms once guests leave, carrying away room service trays
from hallways to the location landings, and checking that all public areas within the hotel are
clean and orderly.
3.7 Engineering Manager - He /She is responsible to manage all aspects of maintenance staff.
Directs, coordinates and performs routine, preventive and emergency interior / exterior
maintenance and repairs to obtain optimum efficiency and economy of hotel operations. Directs
the Engineering staff, accounting/budgeting, asset protection, inventory control and human
resources.
3.8 Front Desk Manager - The person in this position manages front desk clerks, schedules
employees and handles employee issues before they escalate to
upper management. Managers are expected to handle guest complaints and train front
desk staff.
4. Market Aspects
It is the process of perceiving, understanding, stimulating, and satisfying the customer needs,
wants and expectations through the goods and services of specially selected target market
7
which is better than the competitors. It studies the attractiveness and the dynamics of a
special market within a special industry. It is part of the industry analysis and thus in turn of
the global environmental analysis. Through all of these analyses, the strengths, weaknesses,
opportunities and threats (SWOT) of a company can be identified.
The Hotel is a 5star hotel comprising 15-20 luxury guest rooms and specializing in servicing
tourists and corporate clients. It serves the tourist community, business community, etc., and
other travellers for what so ever may be their purpose of the visit.
The marketing aspects adopted by our industry is being highlighted in the below context. We
adopt the following means to attract the kind of people that we look forward to see in our hotel.
The model of our products we intend running is a unique type and we desire to make sure our
customers demand for it even more, hence, we are not going to rely only on the conventional
ways of marketing. We don’t have the plans to run paid adverts on local TV stations, local
radio stations or even local newspaper but we will sure maximize every other available means
to promote our business.
8
4.2 Marketing objectives
To understand the marketplace and customer needs and wants.
To offer affordable services to our customers and at the same time maintaining
constant quality outputs.
Provide “in time “service to customers.
To maximize the usage of equipment’s.
Lodgings
Meals (Local Delicacies, Chinese cuisines and intercontinental cuisines etc)
Drinks (wines, beers, distilled spirits, martinis, beverages and non – alcoholic drinks)
Swimming pool
Gym
Laundry service
Business centre
Mini mart
Conference room
Banquet venue
Childcare
Shuttle service
The marketing mix refers to the set of actions, or tactics, that a company or undertaking uses
to promote its brand or product in the market. The 4Ps make up a typical marketing mix -
Price, Product, Place and Promotion.
Product – It refers to what the business offers for sale and may include products or services.
Product decisions include the "quality, features, benefits, style, design, branding, packaging,
services, warranties, guarantees, life cycles, investments and returns".
Our 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 various communities and yet in an environment of calm and professionalism nearby the
9
Bangalore City Canal facilities. We seek to differentiate our product and services in the
following areas:
Pricing – It refers to decisions surrounding "list pricing, discount pricing, special offer pricing,
credit payment or credit terms". Price refers to the total cost to customer to acquire the product
and may involve both monetary and psychological costs such as the time and effort expended
in acquisition.
Our pricing system is going to be based on what is obtainable in the industry, we don’t intend
to charge more (except for premium and customized services) and we don’t intend to charge
less than our competitors. Be that as it may, we have put plans in place to discount our products
and services once in a while and also to reward our loyal customers.
10
Product and 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.
Promotion – This refers to “the marketing communication used to make the offer known to
potential customers and persuade them to investigate it further”. Promotion elements include
“advertising, public relations, direct selling and sales promotions”.
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 requires to fund the target growth.
Public relations activities will play an important role in the marketing mix, presenting the hotel
as a supportive member of the community and participating in significant local events.
Our guests need to know that they can develop a relationship with the hotel that will ensure
efficiency, value for their money and reliability in supplying them with the support they need
11
and when they need it. We will operate with a very strong sense of community, and we want
to stay an integral part of that community.
As we all know the hospitality industry is constantly changing and evolving to adhere to guest
expectations. As a seeing to this our hotel looks out for the new ways to improve our customers
stay and exceed their expectations. Our management focuses on staying ahead of the curve and
anticipating what customers want now and what they will want in the future. For this reason,
identifying the present market trends has become a crucial step in building the customer
satisfaction, making people feel happy and taking care of their needs and requirements when
they’re away from home.
At its most basic level, our hospitality sector specializes in managing human interaction while
trying to maintain the perfect balance of personalization and technological accommodation for
the guests, designing both interior and exterior infrastructure and décor which is the most
effective way to make an exceptional first impression, identifying a collection of macro and
micro trends that are driving hotel designs today and in the future. Looking ahead, these
dynamic trends offer opportunities for management, engineers, architects, and interior
designers alike to get a glimpse of what’s to come for 2018.
5. Financial Aspects
There are many reasons to understand and evaluate the financial aspects of an undertaking. For
owners and executives, understanding the financial aspects is essential to making good
decisions going forward. Potential investors may also care about a company's financial aspects
as a means of gaining knowledge to help predict future performance. Finance helps
management gain a clear understanding of the company’s current financial position,
particularly whether the business is profitable or not.
The financial plan for driving and funding the growth of The Scarlet Group of Hotels is
presented in detail in the following sections. Initial capitalization is about 2 crores. This
capitalization is intended to be provided by the local bank sector and the private investors.
12
These are the areas where we intend sourcing for fund for Scarlet Group of Hotels.
Generate part of the start – up capital from personal savings up to rupees 45 lakhs.
Generate part of the start – up capital from our business partners up to rupees 55 lakhs.
Generate a larger chunk of the start-up capital from the bank up to rupees 1 crore.
The financial plan also includes the purchases and its operating expenses.
Registration expenses
Marketing expenses
Salaries
Benefits
Supplies
Rent and rates
Tax and Depreciation
Travel, telephone and public relations
Printing, internet and direct advertising
Professional services
Miscellaneous expenses
13
professional income and expense balance sheet. Other aspects of cash flow management
include a debt elimination plan, if needed, as well as a comprehensive savings plan.
Tax Planning - In order to maximize and preserve the hotel’s investment returns, an eye
toward tax management is crucial. There are a number of tax-reduction strategies, methods for
generating tax-efficient income, and also wealth transfer considerations which needs to be
understood and implemented in a proactive manner.
Business Succession Planning - If you are the owner of your undertaking, a significant portion
of the financial plan will involve not only the daily operations of the industry, but also the
eventual transfer or sale of your business to the next generation or a third party. An effective
and tax-efficient transition requires foresight and planning in order to maximize your benefits.
Revisit your written financial plan regularly - An annual review with a financial planning
professional will keep you well positioned for and informed regarding and any significant
changes in the life circumstances, objectives, or needs should be monitored on a regular basis.
Commencement Capital - For new business still in the process of establishing themselves and
beginning operations, one of the most important aspects is commencement capital.
This refers to the money that ownership has acquired to build the business. Commencement
capital may come from investors, loans or be supplied by the owners themselves.
Earnings and Expenses - A business's earnings and expenses refer to income and payments.
These financial aspects can be measured from past data or predicted for the future using a
variety of accounting methods. Earnings exceeding payments in a given period are called
profits.
Assets - A business's assets include any tangible items of value: inventory or merchandise, real
estate, cash reserves and other property, such as company cars and office equipment. Because
they can be sold or used as collateral on a loan, assets are important for every business.
14
Debt - A company's debt is a very important part of its financial situation. Loans taken for
start-up procedures, to invest in improvements or purchase supplies are essential, but need to
be paid off in a reasonable amount of time before interest costs run out of control.
Cash Flow - Cash flow is another important financial aspect which can be difficult to measure
and understand. It refers to the timing and rate a business makes and spends money. Earnings
need to be distributed over time in order to supply a steady cash flow to meet payroll costs and
other financial obligations, such as interest and payments on any debts.
There is an almost universal reaction of managers when it comes to money, namely, they do
not have enough of it. They need and want more. Some of the sources of acquiring funds for
the establishing the Scarlet Group of Hotels and for its working are:
Public appropriations
Contracts with other agencies, donors, or both
Loans
Gifts
Income from sales
User fees
Endowment income
Private investment
Income-producing activities
The same sources as public extension organizations
15
compliance with labour law and employment standards, administration of employee benefits,
and some aspects of recruitment and dismissal.
The Scarlet Group of Hotels tends to start-up its undertaking by acquiring 100 employees. The
human resource body consists of the shareholders, board of directors, executive manager or the
CEO of the industry, the line and staff managers, the assistant managers and the sub-ordinates
including skilled and unskilled labours. The industry tends to increase its working staff both at
administrative level and at the management level to the triple of its current mentioned
composition five years down the line from the present scenario.
Selecting – It is the process of putting right men on right job. It is a procedure of matching
organizational requirements with the skills and qualifications of people.
Promotions – In this stage the position of an employee from one job position to another job
that has a higher salary range, a higher-level job title, and, often, more and higher-level job
responsibilities in an organization is being taken into consideration and practised.
16
flattened hierarchy where employees are encouraged to voice their opinions and give feedback
on what is and isn't working within their daily processes.
7. Technical Aspects
Technology is advancing at a faster pace than ever before, and this is changing both the
expectations of patrons as well as the way in which the hospitality industry conducts its
business. Some of the trends in industry are leading to great improvements and savings for
hospitality industry companies; while some are changing how hotel developers plan their
buildings, infrastructure, management structure and staffing requirements.
Below mentioned are the latest technical trends that are being adopted by our undertaking
Scarlet Group of Hotels.
Besides being able to offer high density Wi-Fi for conferences and meetings, the Scarlet Gropy
of Hotels also tends to offer access to audio-visual (AV) and digital facilities for conferences.
While the amount of AV and digital equipment that goes into a typical conference room is
fairly minimal, staging companies are often hired for various projects in order to equip the
facility as required.
17
7.3 Mobile Communication and Automation
In many airports, it’s no longer necessary to stand in a queue to check in and people are
expecting the same kind of easy, technology-driven check-ins at hotels. Guests want to be able
to do everything from checking in at a venue’s automated kiosk to ordering room service with
a digital device instead of standing in queues and moving around the hotel premises to order
food.
For making such offers to our customers our technical management forces an implication of
the digital innovation and social media, so as our guests also expect digital interactions with
the hotel. When investing in digital apps for check-ins, room service and other customer-
oriented digital interactions, hotel operators are investing in systems and technologies that can
personalise the experience for guests, including a guest’s name being displayed on the welcome
desk at a digital check-in station; their food preferences or past purchases being displayed in a
digital room-service order system.
8. Social Aspects
By this we mean that a company justifies their existence in order to gain success by showing
an interest in taking care of the people and the communities that surround them. Social
Responsibility has the purpose of giving to the society as a whole, an impact that is positive
which ensures that it is sustainable for quite some time. It also ensures that the society is up to
date with events that take place in the society.
18
8.1 Social Responsibilities
The following can be the responsibilities of Scarlet Group of Hotels towards the society:
The hotel tends to adopt the new technologies to reduce their wastes, recycling
procedures and saving energy by acting on environment policy.
Scarlet hotel makes strong initiatives to start utilising the green actions such as, using
of the card key switches for air conditioning and electricity, linen cards for sheets and
reusing towels, making sure that energy bills are much reduced.
The hotel’s restaurant includes the responsibility of recycling of their cooking oil to
help the society save their costs for disposing the oil.
The society consists of the shareholders to the companies and hence if the society
benefits they benefit too.
Most of the students are studying about management of hospitalism. This Group of
hotels shall intend to provide funds and resources to the lower-section of the society
after the implementation of its business.
Our hospitality industry makes a clear determination and positions itself to put into
consideration the equality in respect to gender in order to avoid discrimination at work.
Our responsibility shall remain to encourage and motivate the individuals to continue
working in our industry.
8.2 Benefits of Social Responsibility
Better brand recognition
Positive business reputation
Increased sales and customer loyalty
Operational costs savings
Better financial performance
Greater ability to attract talent and retain staff
Organisational growth
9. Conclusion
Hotel business is one of the upcoming businesses especially in the towns and cities of
Uttarakhand. Establishing a hospitality industry in its capital city Dehradun can contribute to
the growth and development of the state. It is a city of high potential in grabbing the tourists
around the nation and worldwide. It is an outcome of the growth of mobility resulting from
diversification of economic activity, transforming social attitude and gradually growing
19
touristic activities. Though the hotel industry is at budding state in Dehradun, it constitutes an
important segment of the tertiary sector. It plays a vital role in the economic life of a society,
its potentialities for providing employment, promoting the growth of ancillary industrial
activities through its broader linkage effects. So far, the hotel industry is concerned; it is
observed that there has been considerable degree of spatial variation in terms of its growth and
trend of development. The hospitality sector can act as a catalyst for accelerating economic
growth. The employment and income effects of hospitality sector are very closely related and
follow a common source, namely expenditure on accommodation and food and beverage by
different type of tourists.
In terms of quality accommodation, situation of the state is found to be not so impressive which
initiatives our management in establishing a good hotel sector in the centre of the city.
Sound planning and policy initiative is the backbone for our successful development. This
sector also generates an immense volume of indirect employment and income with a multiplier
effect.
Human resource plays a very crucial role for the success of an organization and it is more so
in the case of hospitality industry. This hospitality industry is characterized by acquiring high
level of human involvement in both the production and delivery of its service to its guest. Our
group of hotels is planning to put much effort in education, training and development.
With the commercial activities increasing in many folds, this Dehradun based start-up
hospitality industry prepares the policies and procedures to attract more and more corporate,
business and leisure travellers to the city.
A business plan is not just a lengthy document that helps an undertaking get a loan or secure
backers, even though that might be the reason you’re putting it together. A business plan is a
thorough examination of whether our business idea is viable. Preparing the hotel industry’s
business plan in the early stages of developing our establishment can save a great deal of time,
money and heartache by showing where the weaknesses in our idea lie and giving a chance to
correct them before we happen to commit make any serious mistakes, whether with our money
or someone else’s.
Hence an effective “Business Proposal” is essential for the implementation of the undertaking
in order to achieve its desired goals and objectives.
20
21