Business plan for starting Mountview Park in Broomfield - Term Paper Example

Business plan for starting Mountview Park in Broomfield Executive Summary A business idea discovered from a hidden business opportunity will be perhaps the most successful business strategy. Mountview Park is not just another option for customers to find their needs for meals and dinner, but a restaurant that comes to the reality of bringing the most advanced technology to customize customers needs for food and drinks and to serve them in most amazing natural views. Colorado’s natural views of rocky mountains can be converted to the profitability and customer loyalty aspects of a business if the customers can be brought to the park to help them entertain and rejoice evermore from adventurous trips to rocky areas. Mountview Park is going to be an amazing experience of dining for local customers of Broomfield and tourists from around the world who come to enjoy Colorado’s southern rocky mountain. In today’s highly competitive business environment, Mountvew Park focuses on supreme quality food made in fresh fruits and vegetable ingredients with help of unique E-Oven technology. Multicultural food and drinks especially in warm and friendly environment will be of grater demand for people who not only come to enjoy parties, celebrities or other events but also to enjoy their meals when they get natural zeal in mountain views. This paper presents a brief business plan for setting up Mountview Park in Broomfield in Colorado and addresses major important contents of the business plan such as competitor analysis, business strategies, marketing mix, financial projections etc. This plan puts forward a brief outline of the main business functions of the company and detailed how it will reach to its success path. Mission, Vision, Goals and Business Objectives The Mountview Park is proposed to be a unique dinner and entertainment experience for the local people from around Broomfield, tourists from around America and other countries who visit Colorado’s rocky mountain. The business mission of Mountview Park is “to establish a multicultural restaurant for the customers to entertain in views of rocky-mountains”. In today’s changing business environment, developing business strategies and structuring business mission with a view to acquire and retain customers and to ensure customer satisfaction have become the core to the heart of preparing an effective business plan (Crego, Schiffrin and Kauss, 1995). The Mountview Park considers measuring and evaluating customer satisfaction as the primary tool to be used for gaining insight in to values and needs of prospective customer base. With a vision to discover emerging business opportunity, transform the opportunity to business reality and design and develop newer food and various multicultural organic food for meeting the needs of those who come to rocky mountains to entertain, the company thrives to function as a dynamic and sophisticated resort. The major business objectives of Mountview Park includes: Serving the customers an excellent combination of organic food and drinks, Establish a unique natural park where customers are free to entertain in areas of rocky mountains of Colorado, and Build stronger customer loyalty by converting each customer who once visits to the park to be an asset of long term profitability. The Park will provide 24/7 services and online booking and other facilities for customers from other countries. As its Financial management planned, it would achieve a gross revenues of more than $ 25, 00,000 by the sixth month and to reach total sales of more than $80,00,000 by the end of first business year. It also plans to increase the sales by 30 percent and 45 percent by first and second years. Company Overview The Mountview Park will be an inspiring experience of exciting dinner and mountain view entertainment with a strong business mission of providing quality and organic multicultural food and drinks to its targeted customers. It’s not just going to be an alternative to a traditional restaurant; but, the Mountview Park is an illuminating example for how a successful business can be brought to reality from discovering distinctive business opportunity. As Crane (2009, p. 19) noted, successful entrepreneurship begins with discovering right opportunity for right business. The business idea behind the Mountview Park is to bring people to a place where they not only find superior multicultural organic food for meeting the small treats and dining needs, but also to rejoice their life, find relaxes from boredom workplace hours and take adventurous trip to rocky mountains of Broomfield in Colorado state. With a view to build strong customer loyalty and long-term profitability, the management team is keen to facilitate legendary hospitality to its customers who comes to the Southern Mountain areas of Colorado from around the world. Mountview Park is formed as a Limited Liability Company and enjoys greater flexibility in management and legal issues related to business organization. Limited Liability Company enjoys advantages of limited liability of the owners since these types of businesses combine the limited liability protection of a corporation with pass through taxation of both sole entrepreneur and partnership firm (Brown, 2007). The management team includes CEO, directors and department managers who are responsible to take decisions and ensure smooth functioning of the company. The management team comprises of qualified professional in hotel management, experts in various areas of modern business and dedicated team of ecologists and naturalists to keep rocky mountains in its very own nature. Since the company needs chefs and cooking experts from around the world for preparing multicultural foods, staffing is done through the help of recruitment agencies and most skilled in all the aspects such as servicing, public relation, customer care etc are preferred to various jobs. Increased attraction of tourists to rocky areas of Colorado, customers’ increased trend to multicultural food and small treats, customer spending on entertainment of music and dances especially in rocky natural areas are some of the major strengths of the company. Diversity among the staff, quality ingredients and latest technology to be used in the hotel can also add advantages to its business. Season variation, competition from other hospitality firms and online or agency tourism etc are some of the major threats that the company may face in its future. Though the company doesn’t plan to operate branches in other countries for the first few years, it will find major four tourist agencies from UK, Japan, Australia and Canada to work in strategic alliance so that these agencies can recommend tourists directly to Mountview Park by providing convenient travelling to Rocky Mountain Metropolitan Airport near to the company. Product Strategy Since most of the products available in the market have shorter life cycle and companies face fierce competition, companies have begun to design, develop and select most appropriate strategy for majority of the business functioning such as product development, marketing, financing, purchasing and so on. Mountview Park adds ‘customization’ to core of its product strategy rather than generally naming it fast food. As Blecker and Kaluza (2005, p. 12) noted, customization is perhaps one of the most effective product strategies to provide individualized products to meet individualized needs. For this goal to be achieved, Mountview Park has already contracted with a technology company to develop an E-Oven that not only functions as an oven, but also performs multi-tasks in a way that the company can save fifteen employees in kitchen. The E-Oven is an advanced computerized machine that the company has already given detailed inputs of data related to various recipes of multicultural food and drinks. The central processing unit of the E-Oven works by processing data to prepare a particular recipe and sends messages to the output unit where the oven starts working by combining ingredients to produce final output. Moutview Park feels proud to be the first company in the world to use the most advanced E-Oven to facilitate customization to its customers. No matter where the customer comes from and what specific kind of food he orders, the chef only needs to give the name to E-Oven and the machine works to combine all the required ingredients and to give the final product within the sharp time. Apart from providing customized food and drinks to the customers, the company takes extreme care of using fresh and quality ingredients and the products to be offered in moderate low prices. The multicultural food in most natural rocky mountain views along with quality services will make our customers feel always welcomed. This is how the company plans to build strong customer loyalty and retention strategies. Apart from online reservation of rooms and days especially for international customers, the company proposes to facilitate efficient parcel system so that customers who want to take adventurous trips to and spend spare hours in high ranges of rocky mountains can already get their meals ready for the day. Competitive Strategy Designing a specific competitive strategy to help the firm predict the extent of the competition rivalry and evaluate the strengths and strategies of the competitors in the market is critically important and one of the foremost steps in planning the business (Ireland, Hoskisson and Hitt, 2007, p. 162). There are many small and big sized hotels and fast food restaurants in Broomfield and other parts of Colorado. From individually owned small huts of fast food and hotel shops, the Hotel industry has grown to operate large multinational company with advanced amenities to attract wider population and mainly the tourists. Mountview Park faces rigorous competition from many large scale hotels and resorts such as Hotel Estes, Comfort Inn Estes Park, Lakeshore Lodge, Stanley Hotel, Hotel Teatro etc. Though the major competitors are large in number, the proximity to Rocky Mountain Metropolitan Airport, natural zeal of mountain views that customers would rejoice along with superior dining experiences, E-Oven technology to facilitate greater customization will be added advantages to face the competition. Mountview Park plans to use effective supply chain to achieve competitive advantages. Customers are becoming increasingly aware of the fresh and quality food ingredients and therefore the company plans to directly import fresh fruits, vegetable and other resources that are required for preparing food and drinks. By designing a strategic supply chain effectively, the company will be able to eliminate costs in distribution and to get more fresh and quality raw materials directly from farmers and suppliers. Marketing Plan Armstrong and Kotler (2005, p. 72) emphasized that a company can be said to have defined its marketing very effectively only if it is able to deliver high level of customer values and greater customer satisfaction than its competitors do already provide to the customers in the same industry. Segmented and Targeted Market The total market within the industry can further be segmented according to how and whom the company plans to approach with its products or services. It is basically breaking down the whole market in to distinct sub groups such as geographical, demographic, psychographic etc (Lancaster and Reynolds, 2001, p. 68). The market of Mountview Park can be segmented in to two based on geographic segmentation. These are- 1) local people from Broofeild where the population is estimated to be 55,800 and 2) tourists from both in and out of the country. Tourists who come from parts of Colorado, other states and other countries will account around 85 percent of the total customers of the company. These customers can again be segmented in to four they are white collar workers from around Broomfeild, Celebrators who come from Colorado and other parts of the country and young as well as other tourists from other countries. Once the market is segmented, the marketer next needs to target a group of people by designing, preparing, implementing and maintaining particular marketing mix strategy with a view to meet specific requirements of the customers it targeted (Lamb, Hair and McDaniel, 2008, p. 220). There can be different targeting strategies such as mass marketing, product specialization, single segment strategy, selective targeting etc (Ferrel and Hartline, 2008, p. 178), but Mountview Park aims at concentrating on mass marketing strategy as the company plans to meet varying needs of all of its customer segments. Business risks and opportunities The company has greater opportunities for developing natural parks in areas of rocky mountains, but same time, risks related to people’s adventurous trips to rocky areas will be higher and the insurance costs will also be greater than the normal expenditures for hotels and restaurants. Marketing Mix Hospitality industry is one of the fastest growing industries in USA and other countries. Mountview Park is a hospitality firm that can serve customers with food and drinks and high-valued customer services that in turn will be the most appropriate tool to build customer loyalty. In order for any company to prepare a successful business plan, the company primarily needs to design the four basic elements of marketing namely product, price, promotion and place (Wilson and Gilligan, 2005, p. 536). As depicted above, the product mix of Mountview Park shows that the company delivers quality food made in quality and fresh ingredients, provide high-valued in-restaurant services and facilitates most advanced natural park for customers to enjoy adventurous efforts to rocky mountains. All of its products and services are moderately priced and the food pricing will be comparatively cheaper to that of its competitors since the company used E-Oven for its food making processes. Supply chain strategy that the company uses for both the distribution of inputs and outputs will add more advantages to its competitiveness. As far as promotional communication is concerned, the company will go for international promotion schemes in alliance with the four agencies in Japan, Canada, UK and Australia to attract wider population to Colorado’s calm atmosphere. Social Responsibility In very recent years, public worldwide has become increasingly concerned about ethics and social responsibility of the businesses they approach for meeting their wants and needs and this has in turn made tremendous changes in social responsibility concepts worldwide. As Kotler and Lee (2005, p. 3), social responsibility a firm’s commitment to ensuring community well-being and its discretionary practice in a way that it doesn’t harm the nature when it depends on it for resources. When it comes to Mountview Park, protecting the natural beauty of rocky mountain and allowing the public to entertain the nature are core concepts to its business ideology. In order to bring this message to the public, the company will work with government and agencies of archeology to protect the rocky areas with out making harm on earth surface. Technology Plan As far as the technology that Mountview Park proposes to use is concerned, it will be the most important aspect to its marketing, competitive and other business strategies. By using the very latest technology, Mountview Park planned to use two different systems, one is E-Oven and the other is Mountview-Map. E-Oven is a multi-purpose computerized electronic device that can be used for setting various international recipes, menus, mixes of ingredients and preparing customized food. Often, customers enter to hotels and go out when they don’t find their interested food from the menu given to them. E-Oven is developed with a view to provide any food in any style and any taste. It is a double-system computer since there are two processors and two output devices. The output device of the first processor will be the inputs to the second processor and the second output will the final food or drink that is required by the customer. What it makes this E-Oven unique from other currently available machines is that it connects to internet and gathers data related to any international meal and assembles information for further processing. Another technology that the company proposes to use is Mountview Map which is a software linked to its website that helps its customers to locate all different routes and areas in the park. This also can be used to locate areas where they can get customer services and areas where they need to take extra care etc. This software will be made available to cell phones so that customers can access quite conveniently. Financial Plan According to the financial projections, the company will be able to generate reasonable profits from the first quarter of second year. Initial investment needs huge spending on rocky areas, building parks and technology of both E-Oven and Mountview Map. Initial spending is projected to be 30,00,000 US dollars and it is expected to generate a profit of $ 120,000 by the first quarter of second year. As shown below, the total sales in the first year will be $80,00,000 but the company will face a net loss of $ 12,00,000. By the end of the second year, the company will be able to generate a profit of $32,00,000. 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