Download - The Pearl Business Hotel Marketing Plan
The Pearl Business Hotel
1. THE COMPANY AND THE PRODUCT
1.1 MISSION AND OBJECTIVES:
The vision and mission reflect the goals and objectives of the hotel. The vision is designed
considering the short term and long term goals which are achieved through strategic planning. The
vision is to become a leader in the hotel industry by creating affinity with customers, offering
distinguished service, building value and providing conducive business environment to conduct
business in order to establish value and strengthen the position resulting in achieving superior
profits.
SUBMITTED TO:MR. S.P.N. PRASAD
SUBMITTED BYSANDHYA PATTANAIK
BALRAM SEWDASAMUEL FRANCIS
SATISH KUMAR MAURYAM. SUSMITHA
The Pearl Business Hotel 2009
The mission of the hotel is to offer quality service and products to satisfy the customers on a
daily basis by providing hygienic, safe, and clean environment ensuring the maintenance of high
standards.
The hotel will build a good team, working through mutual understanding and respecting each
other by empowering decision making and expecting the customer needs which enables them to
provide excellent service and ambience.
The hotel will focus on increasing the sales volume in order to establish a market position
through publicity and good reputation. The long term objective of the hotel is to sustain in the
business and pass on the venture to the next generation.
1.2 Our values are
Consistency
Accountability
Integrity
Respect stakeholders
The Pearl Business Hotel strives to offer best services to meet the standards of the industry by
maintaining sensible workforce who respect each other and empower the decision making process
through mutual understanding and team work.
Simplicity and consistency will be maintained by the hotel to establish competitive advantage and
uniqueness in the industry.
The goals of the hotel include to be the best in terms of quality services, meeting the expectations
of customers, maintaining profitability and prosperous future of the business by expanding the into
other geographic locations.
1.3 The Product: The Pearl Business Hotel is a 3-star hotel. It is basically design to cater to the need of
corporate world. It will entertain business meetings, conferences, seminars and business travelers. Product
specifications are as follows
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There are 50 rooms in two categories standard rooms and deluxe rooms.
It has 3 conference rooms which can be expanded to make a spacious hall, which will
accommodate 600 people at a time.
All rooms are equipped with business essentials.
Conference rooms are equipped with latest essentials such as projectors, web technology based
conference and meeting technology etc.
Hotel is centrally air conditioned.
One specialty restaurant
One coffee shop
1.4 Value added service: We will help our customers getting business. Our plan is to maintain a complete
database of our corporate guests including their profession. We will offer our guests to have interaction with
other guests for any business purpose during their simultaneous stay or in future. This service will be offered
after getting nod from both the parties. For this service, no extra charges.ss
1.5 Product Positioning: We are positioning our hotel as a business hotel, which mainly caters to the
people from corporate and business travelers. The positioning will be aimed at branding our hotel as a
preferable destination for business transactions.
2. Marketing Plan:
2.1 Current Market Situation
2.1.1 Market size
Available rooms- 110, 000
Current size of Indian Hotel industry is $17 billion (Rs 87,601 crore)
Industry is bifurcated in organized and unorganized sectors.
In organized, the 5- star category has 58% market share
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In India, 61% of 3 star hotels’ rooms are occupied by business travelers and in Delhi-NCR it is 60%.
Also, In Delhi-NCR, average stay of a business guest is 3.8 days.
There is a shortage of 150,000 rooms in India
It is estimated that in 2001, $12 billion is going to be invested in this sector.
2.1.2 Underlying trends: Current market situation is under depression, because of the global economic
downturn. Most of the major companies are concentrating on cost cutting. For that, companies are cutting
their business travel so that cost can be reduced and this is being practiced globally. This trend has severely
affected the hotel industry, especially business hotels. This trend is certainly for short time.
However, the average room rates are being reduced drastically. Occupancy rates are tripping badly. Hotels
have started price war for making working capital at least, which is the blood of any organization. The sum
and substance is that the current situation is passing through a chaotic environment. However, there is a
good sign coming from the industry research that the hotel industry is expected to grow by 8% in the next
financial year that is 2010 and in next two to three years, demand is expected to double.
Since we are coming with the hotel in April 2009, at that time it is expected that world economies will be
recovering with a good pace. But three will be somewhat effect at that also. So the Pearl business hotel will
have to work hard in terms of positioning and marketing itself.
2.1.3 Current Rivals: There are myriad no of business hotels in Delhi. In Noida three are only 8 hotels,
in which one is 5star, one is 4 star, three are 3 star and two are 2 star and remaining is more of guest house.
We are not competing against five star and luxury hotels. We are competing in the 3 and 4 star categories.
Although direct rivalry does not exists. However, we are considering two players in Noida as our
competitors. These are
Mosaic: A 4 star hotel situated in Noida
1. 48 rooms
2. Conference hall accommodation 100 people
Address:
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Mosaic Hotels
C – 1, Sector – 18, Noida – 201301
Tel: +91 120 4025000
Direct reservation: +91 120 4025001
Direct Restaurant : +91 120 4025002
Fax: +91 120 4025111
Sales Head: +91 120 4025051, email: sales@mosaichotels .com
Raghav Residency:
1. 35 rooms
2. A conference hall
Address: B - 5 Sector 52, Noida, Uttar Pradesh, 201301
2.1.4 Competitive analysis table
Competitors Raghav
Residency
Mosaic The
Pearl
Product and/or service
Quality
Selection
Price
5
5
6
6
5
6
9
9
7
Location/Physical appearance
Traffic
Appearance
Visibility
Convenience factors
4
4
6
4
5
6
7
7
8
9
8
9
Total
34 42 58
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It is clear from the above analysis that we are at better position as opposed to our competitors
2.1.5 Potential Rivals and substitute:
Upcoming new hotels
Virtual conference halls
Web technology meeting/ conferencing
Video phone technology
With the development in above mentioned technologies, company will reduce their business travel. So our
hotel will to be armed with latest distance meeting technology.
2.2 PESTEL (Political, Economic, social, Technological, Environmental and Legal) analysis
Political: Now India has got a stable government, which is a very good sign for corporate world.
Indian government has been very proactive and working hard to fuel the economy. Indian
government is try very hard and increasing professional as well as financial back up for bidding and
getting host of international conference and conventions to be held in India in association with
members of ICBP. Government is also providing stimulus package for the betterment of the service
industry including hotel industry.
Economic: Because of economic downturn and massive job cut in the industry, the business
outcome has abated very badly. Because of this crisis, corporate activities have reduced by great
extent, which imposed adverse impact on service and hotel industry. Since economy is expected to
recover by end of the year so the good news for hotel industry. Depreciation of INR against US
dollar is good for hotel industry.
Social: Lifestyle and living standard is improving and amount of disposable income. Because of the
increasing purchasing power industries like FMCG, services, manufacturing sector are getting good
business. Companies are focusing more on rural area for getting more and more business.
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Technological: There has been rapid growth in technology .With the robust improvement in
communication technology, the operations of the functioning have become very fast. Also there has
been better use of technology in service sector like hotel. From check-in, customer service to check-
out. The international reservation system helps hotels interlink themselves across the globe.
Environmental: Concern over global warming, increasing terrorist attacks have hit hotel industry
badly. There has been pressure from the government to better operations so that there can be least
harm to nature, which actually causing increase in expense to control the carbon emission, garbage
etc.
Legal: Hotel industry has to pass through almost 18 types of rules and regulations. From the
electricity, pollution control board, water resources authority to ATC (air traffic control). So getting
approval from these bodies consumes both time and money.
2.3 Competitive advantage
2.3.1 Initial competitive advantage:
1. Resource based advantage: Our initial resource based competitive advantage will be the strategic
location of the hotel, conference and banquet hall, because at present none of the hotels in Noida has
such a huge accommodation capacity.
2. Value Proposition based advantage: Special value added service offered to the customers that help
customer get business. With this of service, we are going to get first mover advantage that will help
us get long term competitive advantage.
These initial advantages will help us attract key accounts and lay foundation for long term
competitive advantage.
2.3.2 Long term competitive advantage:
1. Reputation based: The long term competitive advantages will be the customer relationship and
loyalty, corporate image, our integrity achieved by our value chain network.
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2. Value Proposition based: The big corporate network built on years of relationship. These
competitive advantages will help us establish competitive positioning in the industry for future
growth.
2.4 Resource based view
Physical Resource Strategic location on Taj express way and near upcoming airport and
F1 race court, close to gateway of Delhi from Noida. Centrally air-
conditioned building, spacious conference room with capacity of 600
people at a time, a corporate ambience.
Organizational Resources Decentralized structure, lest possible power distance
employees at lower are given decision making power for better service
recovery
Intellectual and human
resources
A team of skilled people for the seamless operation of hotel, working
with objective of wealth maximization of the stakeholders
Technical resources Service recovery and improvement R & D team.
2.5 VRHN:
Valuable We value for money not only in terms of our quality service but
helping our customers get business through our corporate network
built on concrete relationship.
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Hard to copy Our value chain network. Because any physical and independent
resource can be copied but a network of organization cannot be
copied thoroughly.
2.6 Alternative Business models: Based on our resources and capabilities, we have two business model
alternatives
Hybrid model
Focused differentiation
2.6.1. Business Model Chosen:
We are adopting focused strategy in our category. We are focusing mainly on cliental based customer
segment and independent business travelers.
2.6.2. Marketing Strategy:
The objective of our marketing strategy will be to create awareness about our product (i.e. hotel). We will
strive to focus directly on our customer to communicate the issues of quality and value.
The marketing strategy will enable us creating our brand awareness and brand image, its values and to build
concrete relationships with our guests and to figure out their needs in an effective manner. Continuous
differentiation and growth will be goals for us.
2.7 Value proposition:
The Pearl hotel will provide a good, personalized service to the customers. We will have business essentials
in each room such as Wi-Fi connection, a nice business desk, and will provide latest possible technology
required for business meetings and catering for late meetings.
Since our product is a service. Services have four in-built qualities, which are inseparability, variability,
perishability and heterogeneity and that is why, unless it is consumed or experienced, it is very hard to
evaluate it. Our focus is our commitment of providing a peaceful and corporate cultured ambience. Our
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focus will be on continuous improvement in operational effectiveness with incremental innovation in our
service. Our focus will be not only our client’s satisfaction but improvement in their performance after using
our service. So we need to address the following critical issues
2.8 Critical issues:
To maintain differentiation from the competitors and offer value added services to our customers.
Gaining customer loyalty and repeat business
Utmost satisfying our customer needs
2.9 Marketing Objectives:
Conveying our strategic objectives to the customers.
Offering a commendable experience to our customers
Exceeding our breakeven target within stipulated time and allocated budget.
Penetrating new markets and locating new markets for our customers.
2.10 Target market: Our main targets include
Small and midsized companies.
Individual business travelers.
Business schools.
2.11 Messaging: It will be very important for Pearl hotel to keep up the level of its facilities and service
quality that the hotel is going to position itself. And so the messaging strategy will be reflecting the brand
positioning and value added services associated with it. For that, we will have to incur a bit more spending
on our marketing materials such as printing brochures with good quality materials with high quality pictures
to communicate the professional ambience of our hotel.
2.12 Marketing Mix
2.12.1. Place:
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Location: The hotel is located in peaceful premises Noida on the Taj express way, a 40 minute
drive from Delhi international airport. This is a strategic location for us because it is situated near
the gateway to Delhi from Noida and also in future a new airport and Formula one race track are
imminent close to the hotel.
Distribution channel: The product will be sold by personal selling, telephonic selling, and
online selling. The delivery channel incorporates travel agents and international reservation
system
2.12.2 Price: Our pricing strategy is in coordination with differentiation objective, to offer value added
service for a sound price and is not meant to discount or belittle our product.
Room rates for per night, per room are as follows
Executive room: INR 6500.0 + 5 % Luxury Tax
Standard room: INR 8000.0 + 5% Luxury Tax
2.12.3 Promotion: Since we are in a start-up business, we need to adopt aggressive promotional strategy.
3. Promotion: Our promotional objective is to create awareness, recognition and acceptance of our brand
and product. We will be using the following promotional tools
Advertising
Direct marketing
Sales Promotion
Personal selling
3.1 Advertising: We will be advertising by the following means
Print Media: Business magazines and Times of India
We will be advertising in the magazine twice in a month for the first two quarter and from the next
quarter it will be reduced to once in two month.
We will advertise in newspaper once in a week for the first quarter and from the second quarter, it
will be reduced to twice in a month for the first financial year.
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However, for the first week of the launch of hotel, newspaper ad will be daily. From second
financial year, we will not advertise in newspaper.
Outdoor advertising: We are placing hoarding near Delhi-Noida toll bridge. It will be there forever
(in most likely scenario).
3.2 Direct Marketing: Direct marketing will enable us reach our potential customers directly and help us
build relationship. For that, we will maintain a database our potential customers. This database will contain
information regarding address, profession and date of birth and wedding anniversary.
We will be using the following tools
Direct mails and email: We will be sending mails to companies and customers regarding our hotel,
new offerings etc. We will send wishing cards o1n our guests’ birthday or wedding anniversary; this
will help us create long term relationship.
3.3 Sales promotion: The objective of sales promotion will be to increase occupancy rate. It will be for
short period. In sales promotion, we will have following items
Discount offers during off season
Discount on bulk bookings
Bundle offer
However, items may change, depending upon current situation.
3.4 Personal Selling: We will be having trained sales executives for personal selling that will help create
long-term relationship with our customers. These executives will be going to corporate offices on regular
basis. Initially we are going to hire 6 sales executives for Delhi and Noida.
3.5 Web Plan: We will be having our own website, which will have all relevant information about hotel.
The web page will contain
Home page with navigation
Hotel’s online brochure
Online reservation facilities
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Downloadable and printable brochure of hotel
Availability updates
Promotional updates
Contact information
Also, we will have to make sure that major search sites contain our URL, so that customers can click on that
and reach us.
3.6 Total marketing budget:
First year : Rs. 10535000
Second year: Rs 5391305
Third year: Rs. 5923900
Fourth year: Rs. 6411532
Fifth Year: Rs. 3441034
Total: Rs. 3170277.0
There is a decrease in budget allocated to the marketing expenses because we are reducing
advertisement budget and increasing sales force. The reason behind is that we are focusing more on
relationship marketing through personal contact with our key accounts. The emphasis is more on
building long term relationship.
3.7 Implementation Schedule: Our marketing campaign will start from March, 2010, keeping the launch of
the hotel in mind in April. This effort will be tracked through the year to measure the effectiveness the
campaign so that any corrective action can be taken depending upon the current situation.
3.8 Sales Plan: Our sale plan depends on sales strategy, the sales process and prospecting.
3.9 Sales Strategy: Our sales strategy will be aimed at getting repeat business by our large accounts. For
that, we will have to build up long-term relationship with companies and with new accounts as well. So, it
will be imperative to be price competitive and consistent on quality service, good ambience and facilities. At
Pearl Business Hotel, we will be striving to attract key accounts.
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3.10 Sales Process: We will be sending mails to corporate companies containing information about
corporate packets. These packets will have promotional plan especially for corporate. This will be done once
in every quarter. The major part of this process depends on relationship with customers. We have to make
sure that our guests will always have very positive impression about our hotel. We have to know them
personally regarding their likes and dislikes. We will also have to create good relationship with department
of the company which arranges these business travels.
3.11 Prospecting plan: Whenever a guest walks-in in our hotel for stay, we have to identify whether it is a
leisure or business. And, if he is for business purpose, we have to get the guest’s database so that we can
contact directly regarding our package to the organization and make them aware about our corporate pricing
and facilities
4. Risk reduction strategies:
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Risks Degree of
seriousness
Proactive actions Reactive actions
Security risk 1 High security surveillance
without disturbing guests
more, check-in, check-out
database, technology help,
mock drill of security check
up , contingency security
proof blueprint of hotel
premise
Instant security check up,
instant first aid, instant
contact to city control room,
Service failure
risk
1 Hire skilled people, training
on soft skills and guest
management, faster service
recovery policy, reduced
power distance, distribution of
decision making authority to
staffs
Instant personal official
apology from GM, fast
recovery, make guests sure of
no such problem in future
Supply of
skill
2 Tie-up with hotel
management institutes,
maintain sufficient level of
skilled force, control of
attrition through internal
marketing by HR department
HR department will do new
recruitment,
Insufficient
usage of
materials
3 Install efficient inventory
technology, skilled and
experienced kitchen crew,
good power management,
regular inventory assessment
Respective departments will
be accountable
Pollution risk 3 Getting Ecotel certification,
proper waste management
An official public apology
from hotel, taking corrective
action for avoidance
The Pearl Business Hotel 2009
5. Exit and Harvest strategies: We are proposing the following exit and harvest strategies
1. Private sale of personal equity: Individual owner can sell all or partial portion of the
shareholdings in the hotel and thus convert into cash. The Ownership agreement should stipulate
who, if anyone is explicitly prevented from buying the shares.
2. Sale of assets: Cash may be obtained from business by the sale of assets and distribution will go
among owners.
Operational Plan:
6. Structure and Ownership:
The administrative capability and the management are given prominence in order to add to the
competitive advantage of the hotel. The selection of right people for key positions helps in the
improved performance by the structural component of the organization. It further develops nurtures
the skills and competencies which are formed on the basis of vision, mission, goals and objectives
of the organization. The general manager of the hotel is the owner of the hotel who has an
inclination towards the hospitality industry which is an added advantage for the hotel.
7. Key Personnel:
Staff and employees and their titles:
The organizational structure of the hotel comprises of the following departments:
1. Front Office Department
2. Housekeeping Department
3. Food and beverage Department
4. Food Production Department
5. Human resources Department
6. Sales and Marketing Department
7. Purchase Department
8. Accounts Department
9. Maintenance Department
10. Security Department
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There are 10 departments and the number of staff is 75. In this project work, there are five members who are
responsible for their work. The GM is Mr. Samuel Francis, HR Manager is M. Susmitha, Sales and Marketing
Manager is Mr. Satish Kumar Maurya, and Purchase Manager is Sandhya Pattanaik.
The outline of the key tasks, job descriptions, and responsibilities of the various departments are as follows:
FRONT OFFICE DEPARTMENT:1. Front Office Manager: Being at the forefront of the hotel the key role of a front office manager
is to be a hub of communication. Therefore, he/she needs to be self motivated, structured and
disciplined to accomplish the task.
Educational Qualifications: UG – Any Graduate.
Experience: 0-2 Years
2. Guest Relation Executive: Guest relation executive has a responsibility in providing quality guest
services. The prominent duties of the guest relation executive lies in registering repeaters, VIP, and
forwarding invitations to the guests, reporting the requests, and solving guest complaints or problems
if any. He/she must be proficient in additional languages which would be a definite asset in
communicating efficiently with the guests.
Educational Qualifications: Any Graduate
Experience: 1 Year
3. Receptionist: The key responsibilities of a receptionist are to help the guests with their requests by
being friendly and helpful. Hershel needs to have good computer skills in organizing and passing on
messages and communicate efficiently.
Educational Qualifications: Any Graduate
Experience: 0-1 Year
4. Bell Boys: Bell boys help in delivering and collecting the baggage of the arriving and departing
guests, deliver the in-house items to the various departments in hotel, and deliver the mail, faxes,
messages, packages, flowers etc. They need to cultivate good working relationship with the various
departments.
Educational Qualifications: 12th STD
Experience: 1-2 Years
HOUSE KEEPING DEPARTMENT:
1. Executive Housekeeper: Executive housekeeper manages the housekeeping department by monitoring
the maintenance and the quality of the service that is offered in the hotel. The key responsibility lies
in ensuring that the hygiene and safety is maintained.
Educational Qualifications: BHM
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Experience: 0-2 Years
2. Floor Supervisor: The primary responsibility of the floor supervisor is to manage all the operations
in the assigned department of the floor. Must ensure the cleanliness of the hallways, rooms, and
lobbies by maintaining the standards of hotel.
Educational Qualifications: Any Graduate
Experience: 0-2 Years
3. Room Attendant: Room attendant need to clean the hotel rooms and provide high quality service to
the guests and ensure the complete satisfaction in responsiveness towards anticipating the guest needs.
Educational Qualifications: Any Graduate
Experience: 0-2 Years
4. Public Area Attendant: Cleans and maintains all hotel public areas by maintaining cleanliness and
maintaining quality standards. Cleans bathrooms, dusts furniture and pictures, vacuums, sweeps, mops
and maintains cleanliness.
Educational Qualifications: Any Graduate
Experience: 0-2 Years
FOOD AND BEVERAGE DEPARTMENT:
1. Food and beverage Manager: Food and beverage manager’s responsibility is to maintain effective
functioning of the restaurant, lounge, room service, and catering. He/she must ensure in managing the
aspects of food and labor control and maintain positive environment among the staff.
Educational Qualifications: BHM
Experience: 0-2 Years
2. Restaurant Supervisor: The restaurant supervisor need to control and manage the operations in the
restaurant by staff training, providing high quality customer service and stock control.
Educational Qualifications: Any Graduate
Experience: 0-2 Years
3. Room Service Supervisor: The responsibility of the room service supervisor is to assist the manager
in the activities of room service by room service telephone and keeping a track of guest orders and
the quality of the service offered. Ensures in the maintenance of by the compliance of norms of the
hotel.
Educational Qualifications: Any Graduate
Experience: 0-2 Years
4. Captain: The role of the captain is to supervise the food and beverage service, and staff to maintain
consistency throughout the operation. Answers telephone and takes or receives the room service orders.
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Educational Qualifications: Any Graduate
Experience: 0-2 Years
5. Steward: Steward operates the dishwasher and ensure the proper cleaning of the cooking utensils in
the kitchen. Keeps the stock of all the supplies used in kitchen and carries out cleaning duties
including the mopping of kitchen floors and trash removal.
Educational Qualifications: Any Graduate
Experience: 0-1 Year
6. Sommeliers: The key responsibility of the sommelier is to promote the beverage items in accordance
with the guest’s meal, receive orders and serve customers to the standards required and promote the
menu content and changes.
Educational Qualifications: BHM
Experience: 0-2 Years
FOOD PRODUCTION DEPARTMENT:1. Executive Chef: The role of the executive chef is to coordinate activities in training chef, cooks and
organizing other kitchen workers in preparing and cooking food. Plan and participate in designing
menus and utilizing the food surpluses and maintaining the kitchen supplies.
Educational Qualifications: BHM
Experience: 1-2 Years
HUMAN RESOURCES DEPARTMENT:
1. Human Resource Manager (Miss M. Susmitha ): Human resource manager must ensure to maintain
cost effective recruitment through appropriate procedures. Design and conduct induction programs for
the new recruits and manage salary processing and ensure that the hotel’s grievances and disciplinary
procedures are observed.
Educational Qualifications: MBA/PGDM
Experience: 1-3 Years
SALES AND MARKETING DEPARTMENT:1. Sales and Marketing Manager (Mr. Satish Kumar Maurya): Sales and marketing manager must
develop and strengthen new and existing corporate business opportunities in order to increase market
share. Sales and marketing manager need to be responsible for sales team members and maintain the
existing clients to achieve optimum market share.
Educational Qualifications: MBA/PGDM
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Experience: 1-2 Years
PURCHASE DEPARTMENT:
1. Purchase Manager (Miss Sandhya Pattanaik): Purchase manager ensures in maintaining the supplies
and purchases essential for the operations. The prominent responsibility is to maintain and designing
the purchasing plans, policies and procedures.
Educational Qualifications: Any Graduate
Experience: 0-2 Years
ACCOUNTS DEPARTMENT: 1. Chief Accountant (Mr. Balram Sewda): The chief accountant of hotel need to be proficient in
taxation and salary processing. He/she must be well-versed with Tally and carry out the daily
accounting work and should have good knowledge in finalization and bank reconciliation statement.
Educational Qualifications: MBA/PGDM
Experience: 2-4 Years
MAINTENANCE DEPARTMENT:
1. Chief Engineer: Chief engineer must maintain and supervise the maintenance operation, refrigeration,
heating, plumbing, heating, cooling plant operations, energy controls and efficiency of the hotel. Must
ensure the superior maintenance and operation and the completion of work projects on time.
Educational Qualifications: B.Tech/B.E
Experience: 4-5 Years
SECURITY DEPARTMENT:1. Security Officer: The main responsibility of the security officer is to offer safe environment
to employees and customers of the hotel. Monitor the security arrangements
Educational Qualifications: Any Graduate
Experience: 2-4 Years
7. The Top Management Team:General Manager (Mr. Samuel Francis)
The top management team comprises of the general manager who is responsible for final approval
of any decisions taken by the various departments of the hotel. The heads of the various
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departments report to the general manager if they are to initiate any task in the operations of the
hotel.
Building an Effective Organization:
The successful execution of strategy is directly dependent on the competency and the skills of the
employees. Therefore, it is of great importance to recruit the right candidates into the organization.
The organizational structure of the hotel is designed in such a way as to communicate easily and
meet the objectives. It enables the organization to match the strategy with structure. The detailed and
clear description of the job will enable in recruiting the right candidate. Flexibility is considered as
another important factor that the hotel possesses. Employee empowerment programs are conducted
in the hotel to motivate the employees for efficient decision making.
Recruitment Process:
The hotel resorts to adopt two types of recruitment processes in order to cater to the needs of the
organization.
Internal Recruitment:
This type of recruitment takes place within the organization. We allow the employees of the
organization to refer other candidate who is suitable and fit all the essential criteria mentioned in
the job description. Internal job postings would be advertised during the staff meetings in order to
facilitate flexibility in the communication process. Internal recruitment is used depending on the type of
job.
External Recruitment:
Advertisement of the vacancy is widely used source in the external recruitment process where the
job vacancy is notified in the newspaper or a online job portal to hire the right candidate.
Educational Institutes are also chosen as the potential external recruitment sources wherein the
candidates are selected on campuses of the hotel management institutes in order to give an
opportunity for fresh talent who possesses adequate skills in the concerned area of work.
Recruitment Agencies are chosen as the potential recruitment methods to hire the right candidate as
it gives an opportunity of selecting from a large pool of applicants.
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Human Resource Management:
The efficient human resource management is of primary concern for any organization in order to
facilitate the healthy working environment and effective internal operations. In hotel industry it is
mandatory that the services are offered with utmost vigilance as it lot more conspicuous. Unlike
any other businesses the workforce in the hotel are supposed to be swift in anticipating the
customer needs and offer best services.
There is a constant fluctuation in the workflow as the business changes on a daily basis and the
primary objective of the employees is to make sure that all the needs are met.
In hotel industry the product and services delivered are directly dependent on the productivity and
efficiency of the workforce. Therefore, it is essential to recruit people with right skills and attitude.
The standards on the basis of which the hotel is judged are mostly intangible or subjective in
nature which include the hospitality, services, and cleanliness factors. We ensure the maintenance
and building of amiable relationship with the guests and train the employees accordingly to build
credibility.
Organizational commitment is considered as an essential virtue in the work environment as it
motivates the employees to be more productive. It builds loyalty, reliability and cooperativeness
among the employees thus allowing them to align themselves with the organizational objectives and
meeting the expectations. Organizational commitment helps in building a stable workforce that
contributes to the increased productivity in the organization.
Laws and Organizational Policies: The organization abides by certain laws which are strictly
followed in the premises of the hotel. The main aim of these laws is to promote the sense of the
equality among all the workforce thus creating a conducive working environment.
Act of data protection 1998 - Knowledge
Race, color, religion, nationality - Title VII civil rights-1964,
Act of race relations-1976,
Act of Race Relations-2000
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The Pearl Business Hotel 2009
Act of sex discrimination 1975 - Gender
Human rights act 1998 - For equality
Act of work time regulations 1998 – Working hours
Act of equal employment 1984 - Training, equal employment.
Term and Conditions:The hotel abides by certain rules and regulations which encompasses various
factors that are result in efficient functioning and operations. All the guests are supposed to abide
by the rules and regulations listed below. The norms of the hotel are designed to create ease and
flexibility in the operations by following certain standards. These include:
Tariff
Proof of Identity
Settlement of bills
Departure
Luggage and belongings
Management’s Rights
Damage to Property
Relation between hotel and visitors
Hazardous goods
Government rules and regulations
Amendment of rules
FINANCIAL PLAN
The total funding required for the proposed business plan is INR 23 Crore. The structure of financing the
business is as follows:
Venture Capitalist’s fund INR 15 CroreOwn Funding INR 8 CroreTotal INR 23 Crore
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The Pearl Business Hotel 2009
The percentage of
stake offered to
Venture Capitalist
in equity has been calculated by using Net Present Value (NPA) analysis. The present value of INR 23 Crore
has derived on the basis cash flows that this project expect to generate in 5 years. The discounting factor of
40% has been used under the most likely scenario. While when we consider discounting factor to be 50%
the net present value of Pearl drops to INR 94 crore. Pearl would return 15 Crore exclusive of dividend (3
times of the investment) to Venture Capitalist in three unequal installments within 4 years of business in
order to buy back shares.
The financial plan is based on the following assumptions:
We have assumed that variations in sales are based on the seasons. During rainy season we have
assumed that sales would increase.
We have calculated COGS (electricity, water charges etc.). The secondary data has been collected
through government website.
The sales of additional services of are based on the market research
Valuation of fixed assets are done on the basis of quotation represented by dealers
The depreciation is charged in under Companies act 1957 and we assume that rules and regulation to
remain unchanged for next five years.
Corporate Tax charge at the rate of 33% (inclusive of all charges) under Income Tax Act and and service
tax charge at the rate of 12.5% to remain constant for next five years.
We would be investing excessive cash in 3months government securities as it is highly liquid assets; we
have assumed that we will be able to sell it without material loss to meet our obligations.
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Stakeholders Percentage Stake Number of share issuedBalram Sewda 13% 60 LakhSandhya Pattnaik 8% 3 CroreShatish Maurya 2.6%% 60 LakhSamuel Francis 13% 3 CroreSushmitha M. 3.4% 80 LakhVC 65% 15 CroreTotal 100% 5,00,000
The Pearl Business Hotel 2009
By adding 9.6% (interest rate of bank deposits) and risk factor of 10% we have arrived at discounting
factor of 20%.
Ask and Offer
Ask: Pearl is looking forward an investment of INR 15 Crore from an optimistic investor
Offer: Pearl is offering 65% stake in equity.
3 times the return of the investment within 4 years of operation of business.
Conclusion:
The total initial setup cost is INR 23 Crore. Pearl’s is now looking for an investment of INR 15 Crore. This
investment will be used to set up the business which will utilize the growth potential of this untapped
market. Pearl offers the investor a 65% percent stake.
Pearl represents an exciting and very rewarding investing opportunity with high growth and returns. The
Management team of Pearl looks forward to having discussions with you at the earliest opportunity.
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