The Key Aspects of the Feasibility Analysis - Assignment Example

FEASIBILITY ANALYSIS INTRODUCTION Kenvisit Tours and Travels will be tours and travels undertaking based in Kenya. It will provide tourism and travels related services to tourists both local and international. Provision of these services will be in order to assure the tourists of transportation immediately they land at the country. According to the Kenyan tourism analysis, the most visited and desired tourist destination is the Maasai Mara. Based on this, the venture will be centrally located at the vast Maasai Mara Game Reserve. The feasibility analysis report below focuses on the establishment of the venture with a motive of growth of the customer numbers and in the creation of loyalty of the customers to the venture. ANALYSIS OF KENYAN TOURISM Over the recent past, Kenya has witnessed increasing numbers of visitors to its game parks and reserves. Tourism has for a long time been the backbone of the economy of Kenya. The other major tourist sites in Kenya include old cities like Mombasa and Lamu situated on the Kenyan coast. The Maasai Village located in the Maasai Mara is also another attraction site in the country. The Kenyan beaches also are one of the best in the region. Fun activities around the beach which include surfing, water boarding and an experience of the equatorial sun are some of the desirable and unforgettable moments for the tourists. Kenya is also home to many lakes most of them located on floor of the Rift Valley. These lakes are attraction sites since the hold in them rare animal and bird types. These include the endangered rhino species and birds like flamingoes. The view of the valley from the view point is also an unforgettable experience. INDUSTRY TRENDS Kenyan tourism has been on the growth for the past several years. This was however largely affected by the disputed 2007 general elections which resulted to massive destruction of property and loss of lives. This made the tourist numbers to drop at very high rates due to the fear of their security. The country at that period of time was a very insecure place to be in. the drop in the tourist’s levels was attributed to this. After peace and reconciliation was restored in the country, these numbers have gradually increased. In 2010, the tourism revenues grew to 73.68 billion shilling from 62.46 billion in 2009. Tourism in Kenya contributes to about 10% of the Gross Domestic Product of the country. Similarly, in the Vision 2030 of Kenya, it is stated as one of the six pillars of economic growth. This means that tourism in the country is an essential sector. DRIVING FORCES AS TO THE SUCCESS OF THE TOURISM INDUSTRY Over the recent past, tourism in Kenya has been on the rise. This has occurred because of the fact that Kenya is home indigenous cultures exampled by the Maasai culture not forgetting the vast scenery of the country. The prime location of the country on the equator gives it a perfect climate for tourism. The tourism ministry in the country has also put in place major stepping stones as to the betterment of tourism industry. This includes the improvement of infrastructure in and around the tourist attraction sites and reduction of tourism related costs in an effort to stimulate the growth of the industry. The government can also put in place several factors to boost the industry. They include among others; a. Increasing the household income b. Reducing the cost of air travel c. Rising the number of retired baby boomers with time and money to spend DESCRIPTION OF PRODUCTS AND SERVICES Kenvisit Tours and Travels aims at offering tours and travels services to our customers. We believe that so as to be on the upper hand in competition we have to offer the best tours and travels facilities in the region. By this, the tourists will be able to comfortably drive in our vehicles and cruisers. Tours facilities will enable us to pick our customers e.g. from airports and take them to liaison accommodationservice providers. We will also provide transport them to their destinations of choice. This will include drives across the Game Parks and Reserves. To enhance easy picking of the tourists, we will put in place an online travels booking protocol. Through this, the tourists will be able to properly communicate as to the times, dates and places of arrival so as to ensure efficiency in our response. To effectively offer transportation to and around tour destinations, we have to fully develop some of our services which include; a. Fleet management Fleet management bases its focus on the management of tourist cars. A proper schedule should be put in place so that each vehicle should be at a specific location at a specific period of time. This helps in reducing delays caused by lack of proper planning. Proper fleet management is an indication of good service delivery by the firm. Timeliness of activities helps create trust by the customers to the company. a. Tour guiding services Well trained tour guides should be hired for the provision of best services. They should be well versed with the locations and history so as not to offer contradictory and misleading statements to the tourists. By offering best services to the customers company loyalty is created to the firm. b. Security Well trained and armed security personnel should be hired. This is to ensure that the security of the tourists is maintained at high levels. This is because insecurity incidents results to lack of trust by tourists to the firm. c. Condition of the assets The vehicles and cruisers used for transportation should be maintained at the best conditions. They should be able to withstand all the weather conditions and provide efficiency as to the viewing of wild animals and comfort in transportation. This attracts the tourists to the company’s services. Product differentiation is necessary so as to maintain a competitive advantage in the tourism industry. By putting in place the above listed services which include; maintenance of good asset condition, improvement of security, proper fleet management and effective tour guiding services, the company is able to maintain high standards in the competition market. Similarly, they can have a trademark color for designing their vehicles. This means that all the vehicles in the fleet can have a color that disguises them from those of the competitors. Due to the fact that we are only seeking to offer tours and travels services only to the tourists, we will put in place a liaison with a company or a venture which is specializing in the provision of accommodation and hotel services to the customers. Through this, we will be assured that our customers get the best accommodation services possible. An advantage of this is that we will be able to properly specialize on our services and hence the improvements are possible to make. We will also have a large customer base due to the fact that we will partner with a firm which is only having accommodation services to the customers. Through this also, we will have a double application protocol; one on our website and the other on the website of the partnering company. OPERATIONS PLAN Operations plan ensure that Kenvisit Tours and Travels offer the best available services to the customers. Our goal is offering a once in a lifetime service to our customers. We strive to our best to make it possible. We would like our customers to have an irresistible urge to experience more of our services soon after the first encounter with us. 1. Operations objectives The operations objectives help ensure that there is maximum utilization of the resources available to the organization. By this, there is reduction of wastages in the processes therefore increasing profitability and hence improve service levels and standards. 2. Proposed location We intend to construct the main branch at Narok town. This is because of the strategic location of the town next to the main tourist destination in the region – Maasai Mara. This will help improve efficiency as to the movement to, from and around the Mara. It will also help reduce the costs of transport to the Park. Other branches will be situated at Nakuru, Mombasa and Nairobi City. The Mombasa resort will be strategic due to the location next to the beautiful coastal beach. The Nakuru branch will be similarly strategic as a result of its location at the middle of the Rift Valley. The presence of Lake Nakuru National Park nearby will also be well accounted for. Nakuru town is also situated next to other tourist attractions which include Lake Elementaita, Lake Baringo, Lake Bogoria and the Menengai Crater. The Nakuru escapement offers a lifetime view of the Great Rift Valley. The Nairobi City branch will be useful in the control of arrivals from the main airport. This is due to the strategic location on the largest city in the East and Central African region. This is the preferred entry point and arrival place for most tourists in the region. 3. Acquisition of premises The main branch at Narok Town will be built so as to meet all the specifications and room requirements. By this it will be possible to make all the decorations and carvings easier for a better view and appearance. It is however very expensive to purchase land and building materials next to the Game Park. Currently, an acre of land next to the Game Park is retailing at a price of Ksh 20,000,000. Due to the unstable prices of land, an option of renovating a premise is available. Due to lack of prime spaces in the other branches, the premises will be rented from property owners. It is however very expensive to hire premises at prime locations e.g. at the Central Business District. 4. Service process Kenvisit Tours and Travels as the name suggests will offer tours and travels and other related services. These services include among others tours to various destinations, tour guiding, flight ticketing andhotel bookings. A channel of transportation will be put in place between the liaison hotel and the branch so as to be able to pick up the customers in time and take them back in god time. The service process chart can be simplified as follow BOOKING ARRIVAL RECEPTION TRANSPORT TO LIAISON HOTEL HOTEL RECEPTION TOURING SERVICES TRANSPORT BACK TO PORT The service process is a cycle. It begins with booking by the customers. Booking can be online or by the visit of various branches of the firm. Upon booking arrangements are made and reception of the customers is made at the predestined points which include airports, seaports, railway stations or bus stations. Upon reception, the customers are transported to the firm’s main branch or to the nearest branch to that effect. Upon arrival, registration process takes place and transportation to the partnering hotel service provider. During the subsequent days, the customers are driven to the tour destinations they had indicated and back to the hotels. On lapse of the time period of the visit, the customers are transported back to the departure points which include among others the airports. The service process is a cycle because it is a repetitive process and the same procedures are used for the customer incase of another visit. Timeliness is the key to business success. A strict time schedule should be maintained in order to enhance efficiency. 5. Facilities Different equipment is needed to enhance a smooth flow of activities. Efficient performance of this equipment to optimality ensures smooth flow of activities. They include; a. Vehicles and cruisers- they are very crucial in the transportation of tourists from one place to another. The destinations include from the pick-up points which include the airports and sea ports to the branches. They should be well serviced and maintained at the best of conditions. 10 vehicles are required for efficient transportation. The purchase option for the vehicles is very cost efficient. One vehicle is retailing at a price of Ksh 1,000,000 and a purchase discount of 10% is offered on the purchase of more than five vehicles. b. Computers and printers- they are very essential for communication purposes. The computers should have internet connectivity so as to enable online updates of the websites. It is also essential for the purpose of monitoring online ticketing and bookings by the clients. The printers on their part are necessary for printing of receipts and tickets. Computers recommended are laptops for the purpose of portability and fewer complications involved in them. A good laptop can be purchased at an amount of Ksh 45,000. About 20 laptops are required so that they can be distributed to the other branches and the main branch. c. Stationery- stationery is also required. They include field note books, receipt books, biros and rulers. They can be purchased from the Halo Industries at a price of 10,000 all inclusive. d. Furniture- furniture is required for effective performance. The furniture includes office desks and chairs and the workers desks. The furniture can be acquired at a total price of Ksh450,000. MAINTENANCE PROCESS The vehicles need monthly maintenance so as to improve their effective performance. According to the costs involved to have an internal maintenance department, it is cheaper to outsource the services from GM Motors Ltd. On the part of the computers, it is more expensive to outsource an IT specialist. So it is advisable to hire a permanent IT specialist. His role will be program updating and regular checkup of the condition of the computers and computer related devices like the printers. MATERIAL AND SUPPLIES AND SUPPLIERS There is different supply materials required. filing system, toners, envelopes, files, letterheads, promotional materials, booking record forms, , vouchers, airline tickets, re-validation stickers, credit card charge forms, credit cards, bill heads, luggage labels, ticket wallets , compliment slips among others. To ensure timeliness in their delivery, there should be early ordering dates. There should also be trusted suppliers. By this the chances of default should be low. Similarly, the suppliers selected should be those offering the shortest lead-times. To find the best category of suppliers, a competitive selection process should be adopted. A competent selection/ recruiting staff should be put in place. It should not be biased in any way. The tendering process should be timely to give enough room for the selection panel to pick the best in terms of quality, quantity, lead-time and cost. INVENTORY MANAGEMENT SYSTEM Competent staff should also be sought so as to well mange and control the flow of inventory. Inventory control programs should also be adopted so as to reduce delays occurring in the process. A first in first out (FIFO) method should be applied. This advocates that the first received supplies should be the first to be spent. Through this, wastages are reduced in the system. Proper management should be emphasized in areas especially in; a. Inward flow of inventory b. Storage of the inventory c. Management of inventory levels d. Outward flow of inventory SEASONALITY OF DEMAND The Kenyan tourism industry encounters seasonality of demand. This is evidenced by increase in the number of tourists during the wild beast migration period and decline in the numbers after that period. So as to ensure normal continuity before, during and after tourist influxes, different measures should be put in place. They include among others; a. Hiring of part time staff to meet the high demand period b. Vehicle leasing during the high demand period c. Putting in place precautionary stock so as to meet the high demand during peak seasons. RELEVANT REGULATORY AND LEGAL ISSUES Different regulatory issues and standards must be adhered to in order to ensure smooth flow with the authorities. They include among others: a. Licenses- the licenses should be paid in time to the licensing regulatory authority in Kenya, the Kenya Revenue Authority. The business should be duly registered to meet the standards of licensing. b. Vehicle standards- the transport vehicles should meet all the specifications listed by the Ministry of Transport so as to be allowed to use the Kenyan roads. To ensure strict adherence to the set rules and standards, the employees should be given regulations to follow failure to which disciplinary action will be taken against them. The firm should also observe timeliness in fulfillment of certain requirements. EMPLOYEES REQUIRED As a result of the various departments involved, different employees are required for the normal business running. They include among others, security officers, tour guides, receptionists, cleaners, marketers, ticketing staff, IT personnel, finance officers and drivers. Due to our goal of offering the best quality services, we strive at having the best fit employees for the jobs. Remuneration for the employees will vary according to the working hours and the type of work. There will be annual promotions offered to the best performing employees. Salary increments will also be annual but the rate will also be dependent on the job group and the type of job. TECHNICAL FEASIBILITY ASSESSMENT Kenvisit Tours and Travels is a business venture whose chances of success are very high. Several factors can be outlines that can make this seamlessly possible. They include among others; a. The commitment of the Kenyan Government on the improvement of the tourism sector. This can be evidenced by the government listing of the tourism sector as one of the six pillars of the economy in the Vision 2030 project of the country. This insinuates that business prosperity in the future is assured following government commitment on tourism. b. The increase in the number of visitors touring Kenya over the years. This is an indication of increase in demand for tours and travels in the country. Through this, the business venture will be well placed to have increasing returns over the years. c. Suitability of the location. The location of the firm next to the Mara is a very positive factor to the development and growth of the firm. There are many reasons attributed to this. They include the inevitable fact that the Maasai Mara is the most visited Game Park in the region and one of the most preferred tourist sites in the world. The location of the other branches is favorable to the organization. This is because of the existence of near extinct species in those Game Parks for which people travel from far and wide to come and see. CONCLUSION In conclusion, embarking on the establishment of the Kenvisit Tour and Travels venture is therefore advisable. Some of the leading challenges to the venture development include the ever increasing competition. Many ventures are being established but this can be responded to by offering of super standard services to the customers. Through our goal of specializing in one line, we are assured that we will offer super standard services to our customers. The prospects of the future development and growth of the venture are clear and hence the venture should be established. Read More