Paradise Island Resort_ A Completed Business Plan

Paradise Island Resort Business Plan

Created for Zaman University, Introduction to Business Course

2011/2012 Academic Year, Instructor: Lance Chase

Team Members:

Imey Tang, Charadine Pich

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TABLE OF CONTENTS

Executive Summary 4

Part 1: The Contemporary Business Environment

Description of Business 5

Form of Business Ownership 5

Ideal customer 5

Our Advantages 5

Ethical Issues 6

SWOT Analysis 7

Social Responsibility 7

Global Issues 8

Part 2: The Management of Paradise Islands Resort

Mission Statement 9

Business Goals 9

Management 10

Organization Chart 10

Floor Plan 11

Raw Materials and Supplies 11

Quality Assurance 12

Part 3: People in the Paradise Islands Resort

Corporate Culture 12

Leadership Philosophy 13

Job Descriptions 13

Job Specifications 15

Training Employees 16

Compensation 17

Incentives 17

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Part 4: Marketing The Paradise Islands Resort

Target Market 18

Product Features and Benefits 19

Product Differentiation 20

Pricing 21

Place/Distribution Issues 21

Advertising 22

Promotions 22

Part 5: Managing Information

IT Resources 22

Customer Service 23

Cost of Doing Business Chart 23

Expected Revenue 24

Part 6: Financial Issues

Balance Sheet 25

Startup Costs 25

Financing 25

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Executive Summary

Our Paradise Island Resort will locate on beautiful beach island call ‘Bamboo Island’ in

Sihanoukville, Cambodia. We would provide excellent services and security for our

customers, and safe working environment, training, suitable salaries plus bonuses and other

benefits for the best employees. Additionally, we would be equitable and honest return to our

investors, making significant contributions to our partners and the community as a whole.

Our resort would be an environmentally friendly organization that offers more jobs

opportunity for community.

There will be incredible products and services to be offered which include an international

standard 5 stars hotel, 7 bungalows, casino, restaurants, and much more amazing places such

as amusement park, zoo, golf course, rented cruiser and sailboats which would provide

luxury services for all customers that come to visit our Paradise Resort, moreover, there will

also has airport and dock parking which is very flexible for customers to visit us.

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

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

packages that we organize for them. Consequently, we are the first business to provide this

huge resort project and full ranges of services to our customers and ensure that all of which

are of best quality in Cambodia as well as neighboring countries such as Vietnam, Laos,

Myanmar, and Thailand.

Our resort will own by CEO and General manager, which each of them must have a

minimum of 5 years experiences in managing the business and have at least Master degree

for the relevant field. They must have excellent interpersonal skills and fluent in both English

and Khmer, additionally they would have full capacities of understanding the complexities of

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both the organization and the environment and to lead changes in the organization so as to

enhance its competitiveness, especially our CEO is also an ethical leader who reflects high

ethical standard and show high moral to other employees.

Currently, we have good relations with China and move closer toward EU. As a result, we

expect to gain large majority of our guests from those countries in the future. We will make

several surveys to analyze about their experiences at our resort and adjust changes toward

their recommendations. We expect in the next five years, we would be able to invest more

into our resort by replace new equipment and expand our business to attract more guests plus

increase more job opportunity to local people in the community.

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PART 1 THE CONTEMPORARY BUSINESS ENVIRONMENT

Description of Business

Paradise Island Resort will locate on a newly built island surrounded by colorful coral under

the limpid sea. It will include: the places for extreme sports, Airport and dock parking, a zoo

and theme park, a golf course, a hotel and Casino, rented cruiser and sailboats, and especially

our guests will be delighted with the white beach. Our resort will offer a comfortable place

for all ages and all people throughout the globe to visit, relax and create an unforgettable

memory.

Form of Business Ownership

Our business will be a partnership which means we will run it together. The reasons why we

choose to be partnership rather than sole proprietorship or corporation is because we require a

lot of capital investment, talent and skills in order to operate our business. As a partnership,

we have high capacities to expand our business through adding new talents as well as skills

and money from each and every members. Moreover, we can gain tax benefits, since our

resort is a large business in which we are require to pay high tax and if we choose to be

corporation then we have to pay even more, and it is relatively easy to get loans from the

banks if we need to.

Ideal Customer

Our ideal customer will be a high-class and middle-class family as well as couples.

Customers will come to spend their vacations at our resort and they will be impress with their

unique experiences and amazing atmosphere during their stay together with excellent services

offer. We will also have special packages available for families and couples.

Our Advantages

Our resort will provide unique experiences for our guests in which we will focus on

reasonable prices, comfortable atmosphere, excellent services, special foods and

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promotions. There will be many different kinds of restaurants in our resort and we will

provide different types of foods such as: Korean, Japanese, Western, Italian, and

Cambodian. For our special promotions, we will have packages for families and couples, kid

clubs that take good care of children so their parents will not need to worry about them plus

they could spend good times as a couple. Our resort will also be a good place for couples to

create unforgettable honeymoon memories. Our Paradise Island Resort also has many kinds

of rooms, which includes club suites; junior suites, executive suites, deluxe suites and

bungalows that all will be available with beautiful landscapes and environment to satisfy our

guests’ demand.

Ethical Issues

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

friendly is our priority in operating the business.

3 core principles

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

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

them feel very delightful.

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

products and services will be of high quality and hygienic. To provide services to

customers from heart is our obligation.

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

marketing” to our customers.

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SWOT Analysis

Org

aniz

atio

nal

Strengths Weaknesses

• Excellent services and security

• Good location and amazing landscape

• Reasonable prices and numerous activities offered

• Modern facilities and clean atmosphere

• Fresh foods

• Local cultures and traditions involve

• Need a lot of capital

• Transportation

• Competitors

Env

iron

men

tal

Opportunities Threats

• Unique services offered in the region

• More profit earning

• More visitors

• Increase GDP in the country

• Job opportunities

• Risky for transportation

• Trash from construction

• No clean water

• No electricity

• Weather and natural disasters (Storm..etc)

Social Responsibility

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

1. Supplier: we will make good relations with all of our suppliers to guarantee high quality

products and minimize delay or late supplies and especially eliminate betrayal. We will

buy high quality products, include our inventory and furniture, from countries around the

world but we will buy fresh seafood from fishermen located near our resort.

2. Employees: we will treat all of our employees fairly and motivate them to work more by

offering bonuses and other benefits plus training courses in order to improve their work

performances. Our employees must be over 18, given full rights and privileges as well as

offering suitable wages and responsibilities.

3. Investor: we will definitely be honest with them and we will not betray our investors by

given all sort of fake financial transactions include financial reports, accounting analysis,

stock-price, share, and so on. We will cooperate together to expand our business and

discuss any problems together to find solutions to it.

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4. Customers: we will obey consumerism by using high quality products plus providing

excellent services to them and get rid of unfair pricing, especially we will not practice

collusion. Moreover, we will listen to their comments and adjust changes if possible.

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

friendly. We will have water purifier system to convert dirty or used water to clean water

before we flow it into the sea. Furthermore, instead of using electricity supply, our

business will equip with solar power to generate energy throughout the resort. We will

regulate daily waste-control throughout the resort especially the beach.

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

particular days or events and many other special occasions as well. During those days, we

will invite orphans teams from some organizations to perform their special talents, such as

tradition dance and music, and the revenues from those performances will directly given to

orphans rather than our resort’s revenues. As a result, our customers perhaps might feel

that they are also engaging in those charity programs as well.

Global Issues

Our business will have to concern about global issues for sure because our customers are

from different countries around the world and somehow have different cultures as well as

ways of living. First of all, we have to concern about the cultural difference. Our resort

provides flexible services that customers would satisfy, for instance, we will offer

multicultural foods include Western and Asian foods as well. Secondly, the issue that we

have to focus on is the economic stabilizations. If the global economy has significant grow,

then tourist attractions in Cambodia is also increase and at the same time we expect that more

tourists will come to our resort. In contrast, if the global economy goes down, the number of

customers in our resort will decline and it would affect our revenues since people are not

willing to spend so much money especially for travelling during economic downturns.

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Thirdly, we should emphasize our country relations with particular country. Currently, we

have great relations with China, Japan and South Korea and we can realize that a large

portion of tourists come from those countries as well.

PART 2 THE BUSINESS OF MANAGING

Mission Statement

Our Paradise Island Resort will provide unique experiences in the region, an attractive

landscape, excellent services and security for our customers. We will provide safe working

environment, education and training, suitable salary plus bonuses and other benefits for the

best employees. We will earn their trust by organizing regular financial transactions to our

investors and make sure that those information are accurate. We will improve the quality of

life of our local community and practice environmental friendly.

Business Goals

Our resort are setting three terms goals as follows:

Short-term Goals: (less than 1year)

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

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

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

most.

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

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

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

salary plus great benefits to maintain effective workforce.

Intermediate: (1-5 years)

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

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

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

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

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

Long term goal: (5year and over)

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

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

new one.

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

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

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

Management

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

follows:

• General Manager

• Operations Manager

• Marketing and Advertising Manager

• Accounting Manager

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

Organizational Chart

Our resort will consist of two levels of management with sub-division of their employees that

they would be responsible for. As business grows more further, more employees would be

needed in our daily operations.

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Floor Plan

Raw Materials and Supplies

Our resort will start from scratch, therefore, we have to build and purchase everything new.

The first types of raw materials and supplies that we’ll need to run our business are building a

new island, we’ll include a lot of new structure such: Hotel, Restaurant, Airstrip and port,

Nightclub& bar, Golf club, Zoo& Theme park and solar power providing.

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Building an island resort:

- Island building (900$/sq.m)…………………………............3,000sq.m= $ 2,700,000

-1 hotel building (250 rooms)…………………………………$ 2,000,000

-7 Bungalows (15,000$/per)…………………………………..$ 105,000

-7 Luxury Restaurants…………………………………………$ 700,000

-Airstrip and port………………………………………………$ 900,000

-Nightclub & bar………………………………………………$ 100,000

-Casino………………………………………………………...$ 400,000

-Golf club……………………………………………………...$ 500,000

-Zoo & theme park…………………………………………….$ 1,000,000

-Solar power providing & water supply………………….........$ 500,000

Total:……………………………………………………………………$ 8,905,000

Quality Assurance

All employees will have responsibility to ensure quality, but we believe quality begin with

the management team. The Operations manager is responsible for the host of the resort and

the performance of the servers and security to treat the customer feel comfortable and safe.

And the Marketing and Advertising manager is responsible for pleasing the customer. Also,

the General manager will ensure that everything is done like the planning and train the entire

employees. The entire management team will work to ensure that our resort have excellent

services.

PART 3 PEOPLE IN ORGANIZATIONS

Corporate Culture

Our culture is reflected in our mission statement. We want prefect in every parts of our resort,

and every employee must understand how to achieve this standard once they have their

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training. Every employee must have a commitment to pleasing the customer, both friendly

and in the overall experience they will have once they are inside the resort. Our employees

will be encouraged to improve the quality of the resort through their own suggestions and

input. We are also committed to improving our community through participation in events

that make our island a better place to live.

Leadership Philosophy

The decisions held within the business will take place only in the higher authorities of the

business in which CEO and all the first-line manager meet up, held the discussion and make

decisions. Employees and other subordinates will not involve in the decision-makings

because their managers already held the discussions, thus they can bring out their

subordinates’ concern, and it would be very difficult to have all the employees coming

together and make the decisions at once plus it would be impossible to proceed because our

business is very huge therefore our employees will be employ.

Job Descriptions

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

• CEO will be responsible for monitoring the overall performances of the business as

well as the effectiveness of each manager’s performance contributes to the business.

Moreover, she will also has to report the business’ operation performances such as the

progress, financial transactions, marketing, business’ operations compare to its competitors,

so on and so forth to the investors. She will has to use all of his strategies and skills such as

decision-making skill, conceptual skill, technical skill, human relation skill and time-

management skills to bring forward the success of the business in the sense to maximize the

business’ revenues, minimize the costs and get ahead of its competitors.

• Accounting manager will be responsible for the financial transactions and the money

circulations of the business. She will analyze and report the business’ revenues, expenses,

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and eventually profits to the CEO in response to the business’ performance and immediately

coordinate with CEO to find solutions for the business if financial crisis present. She will also

monitor her subordinates, financial manager, in the above-mentioned performances. She will

then responsible for the deposit of money into the bank, withdraw for use if necessary and

interact closely with the bank for the financial records together with the contract agreements

of the business regard to profit-and-risk shared among partners.

• Operating manager will be responsible for the daily processes and operations of the

business. He will has to ensure that the business is in order and stability since the resort is

very huge, therefore everywhere has to be safe for customers. In addition, he will has to

monitor and manage the products and materials available at stock, make sure it would not run

out and that it meets the customers’ demands. He will responsible for the IT system of the

business as well which include the wireless connection, business’ software, latest technology

of food orderings, security camera and so on and ensure that all the technology system used

within the business are function properly by manage and monitor her subordinates also.

Moreover, he will direct that enough foods and beverages are being provided to customers.

Other than that, he will report the business’ overall daily operations to CEO to seek out the

weaknesses in order to improve the business’ performance as well as to identify the progress

or the decline of the operations.

• Marketing and Advertising manager will responsible for the advertisements and

market of the business. He will also responsible for the locations and payments of those

advertisements as well as in which sectors will the business’ advertisements going to held

such as billboards, spot advertisements on television programs, newspaper, magazine,

stickers, so on and so forth. He will have to use all of her strategies, most importantly her

creativity, to ensure that people get to know our business and that our business is being

promoted since our business is pretty far from the city, Bamboo Island at Sihanouk Ville,

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therefore people will have to spend a lot of money to get there. So eventually our business

has to spend enormous amount of money on advertisement at first race. He will also manage

the promotions of the business in each session, especially during important festivals which is

a great opportunity to attract landslide of customers to the business such as New Year eve,

Christmas, and many other Khmer celebrations.

• General Manager will be responsible for the hiring, training, firing, motivating,

encouraging, and sponsoring the employees within the business as well as the compensations

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

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

those who do not show ethical behaviors toward the business. Additionally, she will has to

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

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

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

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

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

out to seek the solutions and adjust to changes.

Job Specifications

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

• CEO must have a minimum of 5 years experiences in managing business (es) and

have at least Master degree for the relevant field. She must have excellent interpersonal skills

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

would have full capacities of understanding the complexities of both the organization and the

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

is also an ethical leader who reflects high ethical standard and show high moral to other

employees.

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• Accounting Manager must be at least engage in Master degree of Accounting or

Finance majors and have at least 3 years experiences in related fields. She must be specialize

in organizing and advance in conceptual and time management skills.

• Operation Manager must be at least engage in Master degree of Business

Administration or Management majors and have at least 3 years experiences in related fields.

He must be specialize in planning, leading, organizing, and controlling. Additionally, he must

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

management skills.

• General Manager must have minimum Master degree of Business Administration or

Management majors and have at least 5 years experiences in related fields. She must

specialize in planning, leading, organizing, and controlling as well as advance in technical,

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

• Marketing and Advertising Manager must be at least engaging in Master degree in

Marketing majors and have at least 3 years experiences in related fields. He must be

specialize in planning, organizing, creative, controlling and advance in technical, human

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

Training Employees

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

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

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

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

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

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

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

exposure to other parts of the business and allow them to take part in new activities. After

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training, it can provide big payoffs for the employer in increasing staff productivity,

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

improve employee’s performance and effectiveness.

Compensation

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

except the profit that we will get from the business. Operation manager will earn $ 42,000 per

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

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

operations. Marketing and Advertising manager will receive $ 33,600 per year because he

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

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

consumer’ desires. Accounting manager will earn $ 36,000 per year because she will have

heavy duties on financial transactions of the business operations.

Positions Compensation CEO

General Manager

Operation Manager

Accounting Manager

Marketing and Advertising Manager

--

--

$ 42, 000 annually

$ 36,000 annually

$ 33, 600 annually

Incentives

We know that wage alone dose not create motivation for our employees, so our resort will

have bonus for hard-worker and special programs for all the employees to relax and enjoy

after working. We also have health insurance for all our employees, because we want them to

feel like a family and they are also a part of our resort that we don’t want to lose them. If they

work harder, we will include life insurance for them. For the holiday, we’ll have 2 days off

per month, and we will divide employees as the teams for decide to choose by themselves.

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For 1year, we will promote the best employees, and give them special reward such as bonus,

paid holiday and vacation.

PART 4 PRINCIPLES OF MARKETING

Target Markets

Our resort will focus on two main target markets:

• Our first group of target customers are whose direct targets on hotel and other

entertainment categories within our resort such as zoo, amusement park, beach and so on.

They are in the range of 20-49 years old as young married (or couples) with or without

children, old married with children under or above 18 years old; additionally their family size

are normally over 4 people. With these aspects, they are those who want to entertain

themselves as well as enjoy the time with their families and notably for some families who

depend heavily on their children’s wishes because our resort provide flexible entertaining

environment that base on different people’s desires. Moreover, our customers are whose

education level is in the range of college to advanced degrees and their incomes range from

$25,000-45,000 annually since our resort will provide luxurious services to our customers

thus they are basically in the higher and upper-classes people in the society.

• Our second groups of target customers are whose direct targets on hotel and golf course

within our resort. They are in the range of 35-64 years old as senior or old married with (or

without) children above 18 years old; additionally their family sizes are normally between 2-

3 people. Moreover, our customers are whose education level is in the range of college to

advanced degrees and their incomes are over $45,000 annually. According to these features,

they are senior who want to enjoy themselves during their retirement period and this happens

very often to many elite groups who like to spend their money and time to enjoy travelling

especially to luxurious places like our resort and their target place is usually the golf course.

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In addition, some of them are also business people who use the golf course as their means of

communication and meeting arena for their business purposes.

Product Features and Benefits

The Paradise Island Resort will provides full ranges of services that consumers are able

to experience with numerous categories. When arrive at Bamboo Island as well as our resort,

customers will experience the 5-star hotel and amazing view of the sea. Our hotel also

provides large dining halls, conference rooms and hall, swimming pool, spa, gym, steam,

sauna, Jacuzzi, souvenir shops, cultural theater, and sky bar. We will ensure that all the

equipment and materials to be use throughout the hotel are of high quality standards in order

to guarantee the customers’ satisfactions. For our amusement parks, all of our entertaining

instruments include rollercoaster, Ferris wheel, training ride, water ride, dark ride, transport

ride and all of which are new instruments to enhance the customers’ safety. Our zoo will be

home to major local endanger species such as birds, mammals, lizards and many other types

of species. We will also bring some popular species from abroad so that local people can

experience it such as giraffe, ostrich, wolf, eagle, zebra, penguin, and seal as well. Also most

of these species have special talents to perform numerous activities to audiences. Our resort

provides a large golf course with 18 holes, which is very convenient to customers plus it,

meets the international standards as well. In addition, we also provide a small portion of the

whole golf course as training course for those customers who are beginners and expect to

improve their golfing skill, moreover, for those who are interested to learn how to play golf

also. Enlarge on that, membership card is also available for yearly payment customers and

they would have unlimited access to our golf course as they wish, actually this would benefit

for those who are golf lover. On the other hand, for customers who are rarely access to our

golf course, they can choose to pay as walk-in payments separately. Uniquely, our resort also

has airport and dock parking available to customers. Customers can fly directly from Phnom

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Penh City and other local regions include Thailand, Vietnam, Laos, Singapore and Malaysia.

Therefore, customers from the city or even abroad can visit our resort more easily. For

customers who stop-by at Sihanouk Ville and want to extend their trips to our resorts, they

are warmly welcome by our large dock parking through rented cruiser and sailboats

according to their desires and also depend on the booking time arrivals and payments.

Furthermore, we provide these cruiser and sailboats for rent to our customers to travel around

the island and experience the nature especially from the middle of the sea, as well as to look

at the whole view of our resort. Additionally, there are plenty of restaurants available

throughout our resort; each different category has one special restaurant of their own.

Therefore, customers can experience different food specialty with respect to different

environments they are in.

We will provide both tangible and intangible benefits to our customers. For tangible

benefits, they are able to experience the first international standards resort in Cambodia plus

full ranges of services that has not been found here yet. For intangible benefits, customers

will experience a relaxation and entertainment environment at our resort after full periods of

works and stress.

Product Differentiations

There are varieties of choices for customers to entertain themselves nowadays and most

importantly resort is their priority. There are numerous resorts available currently in

Cambodia, located in different places and have their own specialty. Despite the fact, we are

the first business to provide this huge resort project in which none of the business here has

ever experienced before. As mentioned, we provide full ranges of services to our customers

and ensure that all of which are of best quality. Compare to other local resorts, the majority of

them only provide accommodation and restaurant sectors, garden and park for hanging

around while some of them also provide zoo and little entertaining instruments. In contrast,

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we offer international standard resort to our customers and they can find everything they

want plus we will make it to be a best relaxation resort ever in Cambodia. For regional

competitors, our location would be an advantage. Bamboo Island surrounds by the sea, Gulf

of Thailand, and totally natural that customers are demanding for. Our beach also has been

rank as the best beach in the world, which is one part of the strength to our business as well.

Pricing

Our pricing strategy is penetration pricing in the sense that we will keep the price as

low as possible but it also has to cover up the daily operation costs as well in order to

generate little profits on hand. We will not practice price skimming that the initial prices

would be very high to cover new products cost in an attempt to straightly generate a profit. If

it is so, the price of each and every service of our resort would be extremely high because we

have invest enormous amount of capital to start-up this business. It would not be convenient

and suitable for our local people compare to their incomes therefore it would not be popular

among them as well and thus we have lose our customers since the first stage of our business.

Our attempt is to attract more and more customers to get to know our business first then the

next step will be to generate profit by increasing the prices little by little.

Place (Distribution) Issues

Our business will provide services to customers so there will not be any distributions to

retailers or wholesalers. Moreover, we will distribute our services to customers through two

main distribution channels. The first one is the Channel 1: Direct Distribution that delivers

our services directly to customers without intermediaries. The second one is the Channel 4:

Distribution by Agents or Brokers that depends on travel agents to help advertise and

promote our resort to customers. In contrast, the location of our resort would be a great

distribution issue to deal with. Locate on one of the tropical island in Sihanouk Ville

Cambodia, the Bamboo Island, would attract the customers’ attentions to thirst for visit. With

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natural environment plus new creativity, it would capture their interests even more. In fact,

we will serve the best services to our customers ahead of our competitors locally and later on

we will strive to compete internationally.

Advertising

Our first advertising strategy is to advertise our business on billboard. Because

billboard plays an important role in advertisement as the majority of people can see it, our

target location for this type of advertisement will be held in Phnom Penh City. Obviously, our

resort will locate at Bamboo Island, Sihanouk Ville province but the majority of people

especially our target customers are in the city also our purpose is to spread the word-of-

mouth among customers since we are the new business. The second advertising strategy is on

local newspapers (the Cambodia Daily and Phnom Penh Post) and television spot (especially

on most popular television network and television shows) in which once again the majority of

people especially our target customers can see it.

Promotion

Our resort will organize our own website and we will post update information and

especially various types of promotion on our website so that our ideal customers can realize

it. Moreover, we will build connections with numerous travel agents in order to promote our

business. When local and international tourists sign up for trip to Cambodia or directly

Sihanouk Ville, the travel agent companies can introduce them to our resort therefore more

and more customers are getting to know our business very well.

PART 5 MANAGING INFORMATION

IT Resources

We will create a website which will cover the details of our resort include the features and

services offered plus update promotions and customers can also use it as online booking as

well. We will use technology resources such as database and other software to keep track of

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customer information when check-in in our hotel and golf membership cards also. In our

restaurant, technology would also use as bill payments for the customer and the information

will proceed to the database as daily revenues. Our camera and Internet system will equip

with full capacity cameras and high speed Wi-Fi Internet access throughout the hotel building

and other places in our resort.

Customer Services

As mentioned, we will use technology resources such as database and other software to keep

track of customer information when check-in in our hotel and golf membership cards as well.

This would be beneficial for our business to make future decisions, for instance, we can keep

track of different guests who come from varieties of countries and cultures and therefore we

could create and adjust new business promotions according to their desires and interests. For

example, nowadays the majority of tourists come from China so this would help us make

decisions whether to adjust changes to meet their demands. We would use the information

available such as their e-mail to ask them to send us feedbacks about our resort, impressions

about their stays and especially their suggestions for adjusting various changes. Additionally,

we would send them some special promotions and organize events that we consider it

interesting for them.

Cost of Doing Business Chart

Expenses Expected Expected Monthly Cost Yearly Cost Rent $17,500 $210,000 Salaries and Wages $45,000 $540,000 Supplies $9,500 $114,000 Transportation $750 $9,000 Advertising and Other Promotions $6,800 $81,600 Utilities $2,800 $33,600 Telephone and Internet $5,000 $60,000 Security $4,500 $54,000 Insurance $1,500 $18,000 Total Expenses $93,350 $1,120,200

25

Expected Revenues

In this section, we are going to classify it into different categories of our services include

restaurants, hotel, amusement park, zoo, cruiser for rent, sailboat for rent and golf course. We

expect that we can gain approximately 4,500 customers in total of our 7 different restaurants

and the average fees for meals is around $30 which mean we could make $135,000 per week.

For hotel, we expect that 650 customers would check-in per week and the average rates for

our hotel is roughly $150 per night, hence, we would earn $97,500. Moreover, we expect to

gain about 5,500 customers and each of them would spend around $28, thus, we would get

$154,000 of the amusement park’s revenue per week. Furthermore, we will charge $19 for

one entry and we expect to gain 2,800 customers which make a total of $53,200 per week. In

addition, cruiser for rent will cost $55 per person and we expect to gain 650 customers which

totally make $35,750 per week. Our sailboat for rent will cost $15 per person as well and we

expect to have 150 customers who rent it. Finally, it will cost $1350 for each golf-

membership customers and we expect to have around 75 customers per year and so it makes

$101,250. Likewise, for those who sign-in for golf training course, it will cost $55 per entry

and we expect to have 25 customers every week, thus making $1,375. Although, the number

of customers are our expectation but it could varies depending on different days and times of

the year. We would experience some traffic on special days and occasions throughout the

year. We would make approximately $23,096,850 as overall revenues per year.

26

PART 6 FINANCIAL ISSUES

Balance Sheet

Startup Costs

Our total asset is $26,550,000 as shown in the balance sheet. As a result, we will require

start-up cost of $16,050,000 in addition to the two investors’ invested capital of $13,000,000.

Financing

Our two investors, CEO and General Manager, will invest $ 6,500,000 each into the business

which make a total of $ 13,000,000. The remaining $ 6,050,000 will be request from bank

financing as loans.

Assets Current Assets Cash $13,000,000 Inventory $50,000 Prepaid Expenses $- (insurance) Total Current Assets $13,050,000 Fixed Assets Machinery and Equipment $5,500,000 Furniture and Fixtures $3,500,000 Real Estate/Buildings $4,500,000 Total Fixed Assets $13,500,000

Total Assets $26,550,000

Liabilities & Owner's Equity Current Liabilities Accounts Payable $2,500,000 Total Current Liabilities $2,500,000 Long-Term Liabilities Bank Loans Payable $13,550,000 (greater than 12 months) Total Long-term Liabilities $13,550,000 Total Liabilities $16,050,000 Owners' Equity (Net Worth) $10,500,000

Total Liabilities and Owners' Equity $26,550,000