Project for Building an Integrated Resort - Essay Example

TABLE OF CONTENTS I . Executive Summary ................................................................................... II. Preliminary Requirement Analysis............................................................ i. Part 1 - Application Overview -Objectives.................................. ii. Part 2 - Client brief and Project manager's Functional Requirements.................................. . iii. Part 3- Project rollout requirements- tenders and recruitement. III. Process to be followed, in different Phases................................................. i. 1st Iteration.............................................................................................. ii. 2nd Iteration............................................................................................. iii. 3rd Iteration............................................................................................. IV. Suggested Deliverables.................................................................................. Technical Feasibility...................................................................................... V. Stake holders' analysis 1. Cost-benefit analysis and economic benefits. VI. Visibility...................................................................................................... VII. Risk Analysis............................................................................................... VIII-. Conclusion................................................................................................... Appendix: Citations noted. PROJECT FOR BUILDING AN INTEGRATED RESORT. Feasibility Report. I. EXECUTIVE SUMMARY The following project is intended for the use of all the future tourists who shall visit Singapore. They will include MICE executives, ( Meetings, incentives, conventions and exhibitions in an atmosphere of understated comfort and luxury are quite enough to make one want to use that same venue again and again.) as well as families out upon an outing. The basic goal of Las Vegas Sands Corporation is to design an integrated resort from inception to completion. Having been a multicultural, law abiding bridge between east and west and a tourist haven for so many years, one of the mainstays of Singapore's economy has been the tourism industry. This tourism sector is worth Singapore dollars 12.4 billion (2006) annually. On the other hand, Hong Kong, with its proposed Disneyland and a new cultural centre at West Kowloon that is seven times the size of the Esplanade, Dubai Japan and Bangkok are Singapore's greatest competitors in the tourism sector. Their multimillion dollar tourism projects to lure tourists from all over the world are ominous enough to make any forward thinking government which is driven by economic consideration, plan to think of new ideas to attract tourists to their country. One of them is to think up new tourism based themes which can make investors think that Singapore is transforming itself into a diversified service-based economy. One of these steps is by opening up an integrated resort. II. PRELIMINARY REQUIREMENTS ANALYSIS Part I - Application Overview Objectives The basic objective of an integrated resort is to attract tourists. It would not be limited to just casinos. They should include convention centers, hotels, restaurants, shopping, convention space, theatres, museums and theme parks. The government can thus hope to be able its overall goal to generate tourism receipts of $9. 5-billion annually by 2015,1 which is half the target set by the Singapore tourism board. Apart from this, the other completion of a project successfully and its performance at Marina South can be targeted to bring in the international convention market. This can eventually boost up the Singaporean tourism sector and economy to make it on par with its nearest competitors. Business Objectives The project aims to complete the project within time limits and the given budget, generated extra employment, bring about a significant increase in tourist revenue while adding a new standard of an excellent track record in making this futuristic yet very in keeping with traditional Singapore ethos and culture resort. Singapore's aura of the bridge between East and West will be enhanced by a luxurious, beautiful and income-generating integrated resort. Through this project, the Tourism Board of Singapore hopes to reach the same level of hospitality as their nearest competitors, Dubai, Hong Kong, Japan, and Thailand. This project is also expected to greatly benefit the people of Singapore because of an increased demand of work in the Service industry like hospitality, aviation, travel and tourism and banking etc. Client brief. Our company is one of the leading international developers of multi-use integrated resorts. We are the proud owners of The Venetian Resort Hotel Casino and the Sands Expo and Convention Center in Las Vegas At the moment we are constructing two integrated resorts, The Palazzo Resort Hotel Casino in Las Vegas and The Venetian Macao Resort Hotel Casino in Macao. 2 We are also working with the Zhuhai Municipal People's Government to master-plan the development of a leisure resort complex on Hengqin Island in the People's Republic of China. This new project is going to be spread out in a total area of 6 million square feet. The project cost is $3.6 billion. We have funds up to $5 billion, in store for this project. This will include the land price and the associated capital cost. Two-thirds of the funding will come from project financing and the rest via equity. We have an in-house Association with the professionals needed to complete this project. Our design team includes -Moshe Safdie and Associates -Design Architects .Aedas - Architect .Peter Walker and Associates - Landscape Architect.RG Vanderweil -Mechanical and Electrical Engineers. Arup - Structural Engineers .EC Harris - Quantity Surveyors. Thanks to a distinctive design of wave like roof forms for the lower levels, and a sky Park above the hotel towers, the aesthetic beauty of Marina Bay will be preserved. Future developments if necessary can be added because the overall design and composition is planned in a befitting manner. The visitors can have a hundred and 360 degree view of the city, Marina Bay and the gardens between Marina Bay and the marina South . the hotel towers are designed and planned in such a manner that pedestrian circulation can be done with great ease through the atriums. The public will gain excess to an Events Piazza, an amphitheatre, and the areas of activity in the Grand Arcade. Singapore is a city in a garden. The halls, roof terraces, atriums and circulation areas shall be provided with canopy structures and trellises so that there is plenty of shade for the visitors. . Hotel A total of about 2,500 rooms across three hotel towers, including more than 2,300 five-star Luxury Gardens rooms and more than 100 five-star plus suites. Expected total GFA of 206,900 sqm. Celebrity Chef Restaurants featuring international chefs such as Charlie Trotter, Alfonso Iaccarino, Tetsuya Wakuda, Thomas Keller, Pierre Gagnaire, or Hiroyuki Hiramatsu This futuristic yet environmentally viable, panoramic and beautifully designed integrated resort would consist of three hotel towers with 2,500 rooms, a 200,000-square foot arts and sciences museum and a convention centre with 1.2 million square feet of space, capable of accommodating over 52,000 people, a casino; and a 4,000 car garage. . The waterfront Promenade is going to be enhanced with a multi-storied retail. In fact, this is going to be the dynamic new face of a thoroughly sophisticated, enterprising, innovative new country stepping proudly into the 21st century. Project Manager Roles and Responsibilities Administrative Role: The ability to control human resource and supplies. Keep track of the time schedule and progress. Capacity to make split-second decisions and frame new contingency plans. Ability to communicate new plans to his subordinates in written and verbal form. This project will be built from scratch, using the help of the design team and the wok force personnel selected from different fields like Engineering, materials management, stores and purchase, administrative for human resource, budgeting and finance,etc. Production Rollout Considerations - tenders and recruitment. The project design and development, construction of the buildings, the design and architectural layouts, and generation of progress reports are expected to be carried out in a phased manner over periods of six months for every stage. Inspections shall be held regularly, taking into view budgetary constraints, time considerations, quality control, stock and material storage, Part II - Project Requirements The criteria for a successful completion of a project are excellent communication, and weekly reporting, up-to-date data bases, trustworthy suppliers, excellent networking for back up suppliers, more than adequate storage capacity, well experienced and professional managers and an effective and contented workforce. Our state-of-the-art and up-to-date databases make sure that we have access to the records of all our employees at any moment. Not only is this useful to get the necessary teams out at the required site when wanted, it also helps in the dispersion of the regular salary packets and bonuses, if earned, for jobs excellent done before time. This naturally keeps our employees very satisfied and keeps them upon their toes, ready for new challenges. This friendly competitive spirit between teams not only makes for a healthy and happy work environment; it gets the work done in a manner which brings personal and job satisfaction to our employees. They have achieved something excellent which shall gain the admiration and respect of all those who see it and marvel at their skill and dedication. This is in keeping with the work ethics of the people of Singapore. Honesty integrity and a commitment to high standards of ethical and moral conduct are the core values of our company. (Goldstein.)3 Apart from this, our ambitious project can create about 10,400 jobs, in the resort itself. 75% of these jobs would be reserved for Singaporeans. In this manner we would contribute in boosting up the economic strength and increasing the tourism based revenue of Singapore, while keeping in view the social, historical, ethical, traditional and cultural background of this land of the Lions. II. PROCESS TO BE FOLLOWED For this project, we have decided to follow an iterative refinement approach that involves beginning with a design team "test product mockup" and gradually adding functionality and innovations according to budget until all of the client's requirements are met. Las Vegas Sands chose this particular method due to the client's concern over having an over ambitious project in hand which was not attempted before in Singapore. This test product has to be in keeping with the design, quality and expectations of the client as denoted and depicted in the client brief. It is also required to be well within the "test period time limit" chosen by Las Vegas Sands so that the confidence put in them in the assignment of this project is not misplaced. A clear cut project definition and conceptual design stages can significantly influence the shape of the project and ensure that every aspect of the proposals add value to the end product. . By using an iterative method, Las Vegas Sands Corporation can quickly design and redesign the blueprints based upon the budget allocation and time constraints. During this time Las Vegas Sands will be inspecting the blueprints for the next stage, calling in tenders for construction material, report progress upon stages of construction, coordinating between different teams- design, engineering, architecture, landscaping, finance, material (stores and purchase) , well in advance before the start of phase II. This should begin from the middle of Phase I itself. This process is repeated during all the phases till the completion of the project. Below is the proposed outline of the iteration stages and milestones including what Las Vegas Sands Corporation expects to have completed at each stage. Process Outline Inspection and updating of progress throughout: At each milestone, Las Vegas Sands Corporation will present the progress to their clients for evaluation and approval. Although the project will not initially be fully complete during the early presentations, it will give the client an idea and approximation of the look, quality and standard of the project. 1st iteration (2006-04-06) Requirements - Las Vegas Sands Corporation will prepare a formal document that will detail the client's requirements for the project. The client will categorize these requirements into required, desired, and optional features. After the document is approved by the client, Las Vegas Sands Corporation will design the initial product design for the client's evaluation. Mockups: Designs by Moshe Safdie and Associates ,Aedas ,Peter Walker and Associates RG Vanderweil, Arup and EC Harris are submitted, in keeping with client specifications. The design section of Las Vegas Sands Corporation will make a duplicate record in a nonfunctional interactive level database and computer interface which will have the required data fields. This will help in designing an effective blueprint. 2nd iteration (12-4-2006 ) Design Document and Presentation A formal document will be prepared that details both the design of the project, its architectural , engineering, landscaping and structural details and the purpose behind it. A breakup of the budget allocated to the different phases of the project will also be submitted. In describing the design and budget of the project, the material quality, quantity, cost , suppliers, and overhead costs will be specified. Details about the project will be given to the client by Las Vegas Sands Corporation so that future maintenance, upkeep, redesigning and other costs can be calculated and approved by the client. Las Vegas Sands Corporation will also hold a forty-five minute presentation as a progress report for the client. As part of this progress report, Las Vegas Sands Corporation will update its task schedules to ensure that the project will be satisfactorily completed by the end of the final iteration. Revised project details. Based on feedback from the client concerning the first iteration deliverables, Las Vegas Sands Corporation will modify the design as needed. This modification can include more planned structures and advanced features that will enhance the attractiveness of this resort.. Again, during this iteration, the project may not have all planned features, but will have all those required for this stage of development. 3rd iteration (2006-5-26) Final Testing Period . Las Vegas Sands Corporation plans to reserve two weeks before the final presentation so that the client can look at the prototype of the projected design in its intended environment. All functional requirements in a designed model will have been met before this point. Final Documentation and Presentation Documentation for the final version of the product will be presented to the client so that the end product can be maintained and utilised in the future. This will include information on all required features, which will be fully implemented in the final product. The documentation will also cover any desired and optional features that have also been implemented. Las Vegas Sands Corporation will also provide know how about personnel and materials needed so that the integrated resorts can function to the optimum of their value and ability. Final System The final design will include all features that Las Vegas Sands Corporation and the client have agreed are required, such as the following, three 50-story hotel towers containing 1,000 rooms each, crowned by a two acre Sky Garden bridging across the towers offering 360-degree views of the city and the sea, outdoor amenities for the hotel such as jogging paths, swimming pools, spas, and gardens; an Arts and Sciences Museum on the promontory; one-million square feet of integrated waterside promenade and shopping arcade; a state-of-the art one-million square foot convention center; two 2,000-seat theaters; a casino; and a 4,000 car garage. All this will be taking up 6 million square feet of ground. IV. SUGGESTED DELIVERABLES To satisfy the client's need for a fully functional integrated resort at Marina Sands these final work products will be delivered to the client: (1) Periodic Status Reports Throughout the building of the Integrated resort, periodic reports will be written and presented to the client to maintain process visibility and enhance Las Vegas Sands Corporation's responsiveness to the client's needs. It is understood that the client would like to inspect, comment upon, and respond to the development of the project and its progress. We shall strive to adjust the progress level according to the client's needs. The client's feedback is a necessary and essential part of this project. The team understands that the client will wish to comment and respond to the development progress. Periodic status reports will detail the feasibility of the project, its exact requirements, its design, and ultimately, its final form and implementation. These will be written documents that are presented to the client and any other individuals . (2) Periodic Presentations Accompanying requirements, design, and final reports will be periodic presentations where Las Vegas Sands Corporation will demonstrate different progress aspects of the project in development on-site. Thanks to an iterative approach and visible progress that can be inspected upon the side itself , the design can be adapted, modified, rectified and implemented, keeping in view specific areas of the client's need. Immediate feedback will be put into account as soon as possible. This is going to be done in our computerised database and databank for access, and retrieval for the design team and the Finance section. 3.Good Faith Requirements Agreement After the project requirements have been discussed and reviewed with the client, a requirements Agreement will be presented to the client to clarify exactly what the project intends to accomplish. The agreement will explicitly spell out which features and objectives Las Vegas Sands Corporation intends to deliver. (4) Documentation for future reference. Las Vegas Sands Corporation will provide documentation about the specifications of the project to the client for future reference. (5) Training. If the client requires the training of personnel to manage the different departments of the resort, Las Vegas Sands Corporation will be glad to offer that assistance. That training shall be done to the client's satisfaction. This will be done either in groups or trainer/trainee at the resort itself. Hands on experience will thus be given to the employees. V. TECHNICAL FEASIBILITY The feasibility of the project's requirements can be judged by identifying and outlining at least one essential feature that will satisfy the client's needs. As this project necessitates identifying the client's requirements, it is useful to identify them: Requirements: (1) Building an integrated resort at Marina Sands. This project will need to incorporate all the features designed and viewed by the client. These include three 50-story hotel towers containing 1,000 rooms each, jogging paths, swimming pools, spas, and gardens Arts and Sciences Museum a state-of-the art one-million square foot convention center; two 2,000-seat theaters; a casino; and a 4,000 car garage. (2) Generating 10,400 jobs for Singaporeans. The moment this resort becomes functional, there will be an automatic generation of jobs in different sectors of the service industry like tourism, aviation and hospitality. (3) Getting increased tourism revenue. The economy of Singapore depends largely upon the tourism sector. With a onetime investment upon this ambitious project, Singapore will immediately move into the ranks of one of the countries which tourists prefer to visit. 4. Building of an entertainment zone featuring games and videos, an out door event plaza capable of seating 10,000 people, a 20,500 square metre Art and Science Museum which can be turned into an amphitheatre at night for a light and water show. Added to this is a 117,100 square metre area allocated to the shopping-centre which will have international branded retail brands.4. 5. Singapore is going to be the in place for Meeting, Incentive, Convention and Exhibition (MICE) Facilities with a 41,000 square metre Exhibition Hall the largest Grand ballroom in Asia, capable of accommodating up to 8000 people and with a 9200 square metre area. Apart from that the meeting room complex shall have 48,000 square metres of ground floor area. This huge complex will bring in plenty of clients for Conventions, exhibitions, and other business undertakings. V. Stake holders' analysis. The total investment is about $5 billion, out of which two thirds of the funding will come from project financing and the rest via equity. Las Vegas Sands Corporation has a very strong capital structure with low leverage relative to peers following its December 2004 IPO. End of year 2004 cash on hand was estimated at ($1.3 billion), compared with total debt of $1.8 billion.5 Thanks to our good standing in the market, the stock holders will not have to worry about any eventual loss. VISIBILITY It is necessary to maximise the visibility of the project and the development process at every phase, through inspections. Only this can ensure that the project is being developed according to the specifications of the client. And feedback can give plenty of scope for rectifying any deviations, if any. These will take the shape of on the site inspections, in person meetings, through e-mails and regular meetings, both with the client and with all the heads of departments in order to map out progress and check out any difficulties. Presentations and inspections will be part of the different phases in the project. Reports will be given regularly to the client so that they are well aware all the details going into the project. VI. RISK ANALYSIS As with any project, this undertaking is not entirely risk-free. If there is a reduction in discretionary consumer spending as a result in the downturns of the economy, brought about by fear of war, terrorist attacks, general economic condition, and fears of recession, there would be a lessening of consumer demand for our luxury products like casinos, hotels and conventions. The excellent transport services and willingness for tourists to travel to Singapore also is a major factor which can affect the future success of this project. In 2003, there was an epidemic of severe acute respiratory syndrome in Asia. It is now under the grip of sporadic outbreaks of avian flu. Such epidemics can affect the amount of tourists coming to Singapore. The only way to minimise this epidemic risk is to do our best, and hope for the best. But as the transport system in Singapore is quite excellent, there is little chance of tourists deciding to take it off their itinerary. VIII CONCLUSION From the results of the feasibility study, Las Vegas Sands Corporation finds that the project for designing and building Marina Sands is feasible in terms of technicality, skill of team members, and budget.. Given the time limit of three years,Las Vegas Sands Corporation believes the scope of the project is manageable and that the client's requirements can be satisfactorily fulfilled upon the completion of the project. Las Vegas Sands Corporation employees also possess the adequate skills to design and carry out the project because they are familiar with the know how of constructing integrated resorts all over America and Asia. The conclusion of the feasibility report is to go ahead with this Integrated resort.project. . APPENDIX and Citation references. 1.http://finance.google.com/financeq=LAS VEGAS SANDS CORPORATION http://phx.corporate-ir.net/phoenix.zhtmlc=185629&p=irol-stockchart&control_javalowerindicator2=&control_javalowerindicator1=&control_javachartfunctions=&control_javaapplet= 1. Financials (In millions of USD) IncomeStatement Quarterly (Dec'06) Annual (2006) Annual (2005) Total Revenue 636.26 2,236.86 1,740.91 Gross Profit 308.77 1,072.75 867.46 Operating Income 166.32 574.10 352.45 Net Income 113.64 442.00 283.69 BalanceSheet Total Current Assets 1,093.56 1,093.56 644.71 Total Assets 7,126.46 7,126.46 3,879.74 Total Current Liabilities 734.65 734.65 460.37 Total Liabilities 5,051.30 5,051.30 2,270.20 Total Equity 2,075.15 2,075.15 1,609.54 CashFlow Net Income/Starting Line 113.64 442.00 283.69 Cash from Operating 174.11 -196.72 589.92 Cash from Investing -296.89 -2,235.86 -1,126.01 Cash from Financing 97.27 2,442.98 -302.72 Net Change in Cash -25.64 11.22 -838.05 Key Statistics & Ratios Quarterly (Dec '06) Annual (2006) Annual (TTM) Net Profit Margin 17.86% 19.76% 19.76% Operating Margin 26.14% 25.66% 25.66% EBITD Margin - 30.62% 30.62% Return on Average Assets 6.56% 8.03% 8.03% Return on Average Equity 22.64% 23.99% 23.99% Employees 15,280 - Financial Information - Stock Chart Top of Form Bottom of Form Read More