Small Business Feasibility - Case Study Example

RUNNING HEAD: Small Business Feasibility Study Small Business Feasibility Study Student’s Name Institution’s Name Executive Summary The business proposed is a tour business plan to be named as Pan-Alpine Tours. The main business activity to be carried out is to a carry out tour business activity in Sydney, Melbourne and Queensland. The main base of operation would be Queensland based on its potential of being a good tourist attraction area. The main product for our tour company would be to provide travelling services, tour guide and educational services, providing access to our partners in tour business such as hoteliers and places of accommodation. Moreover our services would include on-line booking and reservations systems (Bly, 1998). In creation of the tour business one of our main aims is to be the premier tour business service provider in Australia and also to establish a good customer relation ( Bureau of Tourism Research (BTR), 2002) based on understanding, mutuality and equality for all the customers. Pan-Alpine Tours in its operation plan would seek to acquire offices and places of operation through purchase or lease agreements. The tour business through its attorneys would ensure that all legal requirements (Glenn, 2010) for the business are met. The other operational necessities such as health requirements, business permits and even licensing are all to be in good condition to facilitate carrying out of the business. The business would be managed by a two tier system one headed by the Board of Directors who are to make the major decisions of the Company. The other would be the managerial department to foresee the day to day running of the Company operations and also staff management. The employee remuneration services are also to be accounted for within the tour business. Our employees are also to be considered as the best in the country based on their Academic qualification and experience in the tour business (Department of Industry, Tourism and Resources, 2003). It will also consider hiring interns to train in the tour business skills to ensure a flow of new enthusiastic employees in the tour business to bring in new ideas and perspectives. Table of Contents Executive Summary 2 Table of Contents 3 General Company Description 4 Business Description 4 Mission Statement 4 Company Goals and Objectives 4 Business Philosophy 5 Product and Services 5 The Service Delivery Process 7 OPERATION PLAN 7 Production 7 Equipment 9 Legal Environment 9 Personnel 10 Employee Work Schedule 11 Remuneration 11 Management and Organization 11 Inventory management 13 Inventory 13 Supplies 14 FEASIBILITY STUDY 14 The Business 14 Demand of Services 15 Technical Feasibility 15 References 17 General Company Description Business Description The main reason for starting Pan-Alpina Tours is based on the fact that Australia has one of the best tourist attraction sites in the world. The gross income for the Australia government as returns from tourism is closely to $94.8 million a day as per the Australian Bureau of Statistics (Organsiation for Economic Co-operation and Development (OECD), 2003). The popular areas that attract tourist include the coastal cities such as Sydney, and Melbourne while Queensland, the Gold Coast and the Great Barrier Reef. Wildlife is also a great tourist attraction because of its abundance. Due to the great demand of tour services, Pan-Alpina will seek to meet the requirements of the tour business. Firstly it seeks to provide tourist travel-planning services for all those who want to take and view the wildlife and geographical features of Australia. It is also to capitalize on the tourism industry by being the best and most competitive touring agency in Australia to boost the economy and also bring a lot of profit as returns (Conrad, 1998). Mission Statement The main mission of Pan-Alpina Tours is to become the premier tour service provider in Australia providing services to all persons of all ages. It intends and is dedicated to provide quality customer care to tourist by employing and training only the best tour service providers with high standards, teaching and experience. The other mission is that it should be the leading tour provider by 2014 with well-established customer base. Company Goals and Objectives Company Goals The main goals of Pan-Alpine Tours are that in the next two years to be one of the leading tour service providers in the whole of Australia. It will also be one of the most trusted in customer service proving and one that needs to be emulated in terms of management and profit making. Company Objectives The touring service business being a growth industry, that is you will never lack tourists at any time of the year, the main objective of Pan-Alpine Tours is to provide services the whole year to cater for all tourists at any time of the year. It is also our main aim to surpass our estimated profits annually to above $100 million per annum due to provision of great services and the good marketing plan employed by our company (Beckwith, 1997). Business Philosophy In carrying out any kind of business, my main philosophy is based on that start small dream big. This is because a good service to one customer brings you more customers based on the already established good service base on that one customer. Every person anywhere is a potential of investment or an asset to your company and hence make sure that all services offered are equal to all persons. This will also provide a good phase of reputation that people have to the company. Product and Services The main aim of Pan-Alpina Tours is to provide for the needs of tourist who visit the game parks, national parks and the coastal areas. The main services that will be available would include; a) Providing travelling means and services to tourist from their arrival areas either from the airport or port facility and transports them to their accommodation areas or resort. b) Providing touring services to any particular park, or beach in our areas of operation, Sydney, Melbourne, Queensland and any other area of tourist attraction. c) Provision of in-house services during the voyage; that is food, drinks and snacks. d) Offering educative literature and brochures to the tourist on the places they intend to visit and also giving them a trained tour guide to take them round the areas e) Provision of on-line services and booking services for prospective tourist and issuing advisory opinions on best areas where tourists can have the best vacation. In our provision of services, our competitive advantage would be based on; I. Reliability based on the fact that we give the best services and also based on the tourist feedback provided by our previous customers would make as best places to out beat the other tour service providers. II. Trade knowledge based on the fact that our employees and managing staff are well trained and experienced in providing the best services in the tour business. III. The use of modern technology and advanced software would enhance the way we interact with our customers and also how we provide our services. IV. Pan-Alpine tours having entered into various exclusive agreements with National Parks and even managers of various tourist destination, will give our customers the confidence in our ability to deliver services of the best quality and also a good value for the money paid as consideration. The pricing of our services and products would be based on; I. The number of tourists that are booked for a particular tour or voyage. II. The pricing will also consider other factors that are based on what other tour services are providing to enhance our competitiveness in the market. III. The influx of the tourist in any given year at any particular time, that is the more the number of tourist the cheaper the services offered. IV. Availability of our resources or sources of funding will also enhance how we charge fees for the services offered. The Service Delivery Process OPERATION PLAN Production The services that are to be provided by Pan-Alpine Tours are based on the normal workings of the tourism service that is providing tour guides. The services are to be provided by our branches in the tourist sites and also from referrals from hotels that persons require touring services. The qualities of our services are to be based on the customer-employee relationship that facilitates better communication and understanding of our client’s needs. The development of better and more progressive plans of tour operations are to be overseen by the managerial department. Location A touring service location needs an exotic and comfortable place to set up an office. The ideal place for setting up the Pan –Alpine Tours would most probably be in Queensland where the main operations of the service would be undertaken and also establish our main offices. This would be because of trying to move from the Capital City and try and set-up office outside it to also cater for other local services. Though, other sub-offices in Melbourne and Sydney would be able to oversee the tour activities in the areas. The office buildings however should have sufficient open space and a beautiful view of the surrounding to enable the tourist capture and familiarize them with surrounding. There should also be seats and a waiting room to ensure that our customers get the best services (Gilders, Taylor, Walpole , Burton, & Ciro, 2012). Office Layout The acquisition of the offices premises would be either by lease agreement or through purchase of the building. The lease agreement would be for at least a term of ten years and it should be in writing. In purchasing the building, the purchase price should not be more than $5,000. Thus task should be vested in the Company’s Attorney and also the Accountant subject to reporting to the Chief Executive Officer (CEO). Access The offices are to be easily accessible and in this instance all our print materials would seek to inform all the persons the location of our offices. Parking services and proximity to freeways, airports, railroads and shipping centres are all to be considered in the placing of our offices. Equipment A good tour business must have the necessary equipment require to transact the day to day activities. Pan Alpine Tours will have at least twenty computers in each of their branches to cater for customer inquiry, delivery, reservations and even customer complaints. The IT department will also be responsible for delivery of paperwork for the whole office. The number of vehicles that should be available for the tour service are to be at least three in each branch, with another one dedicated to serving the staff transport needs. Legal Environment Pan-Alpine Tours would seek to obtain licenses in order to facilitate its operations of offering touring services. The license would be renewable yearly hence we would be able to monitor our progress in the business. Business permits are also to be obtained from the Registrar of Companies (Gibson & Fraser, 2012) in order to ensure that all the requirements to carry out the business of tour travelling are taken into account. The will also be a formulation of the Pan-Alpine Tours Memorandum of Association and Articles of Association in contemplation of carrying out the business on long term basis and also provide for a basis for its incorporation. Insurance coverage of our buildings, vehicles and our employees should be undertaken to cover for any indemnity claim brought by them. The insurance cover should also be provide for our customers if they suffer any loss or damage at any particular time during the time they contract with them. Personnel The number of employees that are to be employed would be distributed equally amongst our three branches. The number of employees per branch would be at least 80. This slot of employees will be distributed as 40 full time employees, 20 part-time employees, 15 casual workers and 5 interns in business management from selected institutions of learning. The employees are to be recruited through public advertisement and being subjected to an interview process. The criteria for selection would be based on what the employee wants to do in the tour business. In identifying interns, it would be based on their applications and recommendations from their various institutions of learning. Employee Work Schedule Remuneration The employees are to be remunerated based on whether they are skilled or unskilled but it must be subject to the presiding laws on labour (Turner & Gamble Rodger, 2011). The Managerial Department and the Board of Directors are also to provide an insight on how best the employees are to be paid. A raise to be given to all employees, subject to the Company, attaining its yearly profit returns and dedication of the employees in their work and service provision (Duncun & Mulhern, 2004). Management and Organization The Board of Directors would be composed of the initial members who facilitated the creation of the company. The Board of Director will be chaired by the Chairperson and aided by the Vice-Chair. The decision of the Board of Directors would be passed by at least two thirds of the 7 members who form the board. The tour business shall have the Chief Executive Officer (CEO) who will be elected based on being the founders of the company and also the amount of contribution one has undertaken to fund the business. The CEO must be among the pioneers or promoters of the company. The CEO should be able to oversee the operations of the company in all its branches in Sydney and Melbourne and also the head office in Queensland. The academic qualifications are also to be considered that is to have a degree in business management and also being able to have the adequate leadership skills. The CEO will be able to work under a managerial team with three people all of whom should have a degree in management and also an experience in the tourism business. A consultant would also work with the team to provide guidance on how to carry on business and advice on various prospective areas and venture of the business. This arm of the company will be considered as the management advisory board. Managerial Structure The other members of my employees will be composed of an attorney who will be the head of the legal department and deal with all the legal suits, document drafting and advising the company (Kameri-Mbote, 1995). An attorney must have a master’s degree in law and at least some basic knowledge of company law. An accountant will also be responsible for the accounting department and will be assisted by a Banker who will cater for all bank transactions and also the company’s financial transactions. An insurance agent will also chair the insurance and claims department to sufficiently cater for all insurance needs of the company either as indemnity, motor, life or any form of insurance that faces the company. Inventory management Inventory The inventory will be in-charge of keeping the records of all cars, machines and equipment that are used in provision of tour services. The inventory must be kept by regular updates and also regular inspection. They will also keep track of food stuff and supplies that are needed by the tourists during their voyage with the company. Averagely, the valued stock of our company is about $10million and are all insured. The inventory is also in charge of taking into account of when the items are needed most and also ordering their supplies. In case of a cut back in tourist, based on it being seasonal, certain measures are to be taken to cut out the excess stock that is in place. Supplies Suppliers will be sourced from all over the three branches that house our offices. They are all to submit written applications on what kinds of items that they are to supply. They should also outline their history on having worked in the supplies business and their reliability as suppliers. The suppliers are also to be able to meet the daily demands of the company requirements. The company will also be able to initiate good credit and delivery policies for all their services. FEASIBILITY STUDY The Business In the contemplation of carrying out the tour business under Pan-Alpine Tours I considered the main elements and attributes linked to touring business. This mainly involves the ability to have a sufficient fleet of vehicles to cater for tourists travel, access to accommodating facilities and hotels, links to tourist entry points such as airports, rail roads and the harbour. Additional service provision also need to be catered for that are linked to the touring business such as guided tours, lessons such as skiing and also the provision of reservation services ( Australian Bureau of Statistics (ABS), 2003) (Hatch & Jackson, 1999). This will necessitate the company to create of establish multi-lateral contracts with other service providers to ensure this services come in one package (Campbell, 2007). There is also a need to ensure that there is sufficient office space to cater for tourist, employees and potential partners for a good working environment. The staff should also have adequate housing facilities that are next to the premises or office building. Adequate medical cover and services also needs to be provided in ensuring that all the needs of the customer are attended to. In the tourism business, there needs to be a unique product experience offered to a tourist, this would be our main goal in establishing a good customer relation service (Hatch & Jackson, 1999). Demand of Services There is always a need of tour services in Australia because of the frequent visits by various nationals from all over the world. It is also graced with having local tourist, especially the Australian people themselves who spend their vacations in various tour destinations around the country. This therefore means that as long as vacations exist, there will be tourists. The current trends of tourism in Australia despite the global economic crisis and national disasters in the years 2010-2011 shows that there is a growth in the number of International Visitors who visit the country. There are also a significant number of domestic tourists who continue to take tours. The types of tourist categorized as international are from China, the United Kingdom, United States, Japan, Singapore, South Korea, and Germany are considered to be the most frequented number of visitors. Backpackers are also a major source of tourist because of their need to explore the Australian landscape. Technical Feasibility The Initial Market Research conducted, showed that in order for Pan Alpine Tours to become a reality, there must be a good product experience to the customers, assessing of the business environments and also a widening of the scope of potential clients or customers. The Pan Alpine Tours products are to be modelled in a way that satisfies the needs and requirements of our customers. The secondary and primary target markets for the tour plan are both domestic and international tourist. The ability of Pan Alpine Tours to tap into these two categories of clients will boost the company’s operations. The Tour agency should be able to at least tap into 65% of the customer base in order for it to sufficiently carry out its objectives and goals. Pan Alpine Tours is also supposed to come up with a comprehensive plan that meets the off season variation of tours through scaling down or lowering its operation of the business. The business environment offered by the local residents and business will be sufficient to boost the tour operations. The major players in this instance are business men, locals and also the government through revenue collection and also an opportunity to open up for the tourists. References Australian Bureau of Statistics (ABS). (2003). Australian National Accounts 2001-02. Canberra: Tourism Satellite Account. Bureau of Tourism Research (BTR). (2002). Show Me the Money. Canberra: BTR. Beckwith, H. (1997). Selling the Invinsible. Toronto: Warner Books. Bly, B. (1998). Business to Business Direct Marketing. New York: NTC Business Books. Campbell, D. (2007). International Securities Law and regulations. Sydney: York Hill Law. Conrad, J. (1998). Guerrilla Marketing (3rd ed.). London: Houghton Mifflin. Department of Industry, Tourism and Resources. (2003). Green Paper. Canberra: Commonwealth of Australia. Duncun, T., & Mulhern, F. (2004). 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