Operational for Kundu Travels - Business Plan Example

Business operational plan The operations objectives Kundu Travels is committed towards facilitating the sustainability and profitability in tourism operation. It is a new entrant into the tourism sector. The company’s main operational objective is to development of new destinations and tourism products by positioning land for tourism development, extending assistance with the help of regulatory processes, encouraging with a cooperative policy environment with all round services in Goa. It would encourage people to visit Goa by offering their extensive world class services and products. This tourism industry is full of attractions, proper facilities and events designed to attract people from different part of the world. A tourists place is such destination where people would come from different part of the world. It is very important for Kundu Travels to create such an installation that covers all factors related to its tourism business. It includes a number of factors like food, drinking water, hotels, transportation, services etc. The operational objective of Kundu Travels is to meet the expectation of worldwide tourists and to provide an unparallel all-round services and products to its customers. World class services and products would help the company to get a competitive advantage. The company is clearly focusing towards world class services and products as operational objectives to earn competitive edge in Goa. Kundu Travels is trying to create a revolutionary tourism business which would provide all the facilities under one single umbrella. The proposed location  Goa which is located on the western part of India has been chosen as location for the business. This location is very famous worldwide for tourism. Tourists come from different parts of the world, stay and visit the place. The place is having lots of beaches with natural beauties. Beaches of that place attract lots of tourists around the world. The environment and the climate in Goa have made that pale very famous among tourists. Total place is covered with scenic beauties and under lap of nature (Reuvid, 2012). This spot is always having higher number of tourists throughout the year. This place is geographically well located as nearest major metro city i.e. Mumbai is not that much far away from here. International tourists find this place very attractive for the place is less expensive but a very well place for spending vacations. Large number of tourists visits this place throughout the year making it proper for Kundu Travels to open their account in Goa. International tourists are generally less aware of the local situations. Here comes the scope of providing all-round services. That is why Kundu Travels has chosen this location for starting their business in Goa. Every place is having its disadvantages. Goa is also having some disadvantages like labour union problems, as the place is full of tourists so there are other existing players in the market which would cause problems for the new entrant like Kundu Travels. Local mafias are can be a great problem for the company. Acquisition of premises Here Kundu Travels’ premises acquiring planning and justifications will be discussed. There are three options in front of the company to buy, built or can go for lease. Kundu Travels is going for leasing method. Here company is going for 3 years lease with local person. The details of the contract are given below. Period of lease Value (INR) 5years 25 Crore The strategy is justified because it would get a ready establishment of different facilities. It would help Kundu Travels to start its business in very fast pace. This short term lease is lower in terms of cost. Kundu Travels would get some deduction in terms of taxes. It would get some tax benefits for taking lease of the property (Hutt and Speh, 2012). The company has the right to terminate the contract of leasing at its will help the company to invest less in terms of short term capital needs. The leasing property is flexible in nature. It would help Kundu Travels immensely to start up its business for the first time. The company can take decisions according to situation. The company should go for this strategy to avoid high financial risks. It is very clear that leasing imvolb less financial risk. New tourism companies like Kundu Travels must be very calculative in terms of its capital investment. It would help the company to save lots of timing for setting up total establishments. It would reduce the psychological pressure of the company. Service process (Source: Chakravarty and Eliashberg, 2005) Tourism is a totally service based industry. Offering service towards tourists is the main objective of this industry. Kundu Travels must design its service process very well. The above flowchart is showing various stages of service process suitable for the Kundu Travels. In the first step idea creation for the services related to tourism industry is very important for the company. It is the inception stage of a particular service. In this stage the basic concept comes in mind about the service. The next step is identifying different requirements company must achieve for that service. After the recognition of requirement then the services has to be designed. This step is resultant of previous two steps. Here Kundu Travels with come up with a new and effective service (Jenster, Hayes, and Smith, 2005). Then that designed service has to be implemented by the company in their business. Implementation must be accurate in nature. As soon as the service is implemented by the company it means company has started producing their services. After the production of service the evaluating part is going to be very important for Kundu Travels. In this step company must evaluate performances of its services. Constant evaluation is very important for measuring the performance of services. After the evaluation of services company must come up with replacement services if it is needed. It is often being noticed that all the services cannot perform in a similar way. The company must be ready in terms of its replacement services (OaShaughnessy, 1995). A graphical illustration of the layout to enhance service efficiency Idea creation , idea assessment New concepts would be there which can come up with different unique ideas. Requirements Need of the services would identified. It would help immensely to recognize the main motive of the s of the service. Designing According to the strength of the Kundu Travels new service would be designed which would enhance the efficiency of the company. Implementation Proper implementation of the service would enhance its efficiency. Proper implementation of services is must for Kundu Travels to enhance its services. Service Production Services will be offered to tourists. Evaluation Service evaluation would enhance service efficiency by continuous evaluation. It would help Kundu Travels to measure performing and non performing services. Replacement Replacement of nonperforming services and inclusion of performing services would certainly enhance service efficiency. This graphical representation shows that all the above steps are having a cascading effect for the enhancement of service efficiency. Kundu Travels must follow all these steps in their business for enhancing its service efficiency. Every step is very important for Kundu Travels. Any mistake from Kundu Travels can cause for service disaster for the company. It is very important to care these things for the company (Coade, 1997). There is no scope of complacency regarding services in the tourism industry. Kundu Travels must enhance the efficiency of its services in continuous manner after regular interval. Facilities Here in these section different facilities required for the business and lists of their cost are given below. Leasing items and their cost Items Costs (INR in Crore)/ year Building 1 Land 2 The company is eyeing for expansion in terms of their buildings. It is eyeing for double growth in first five years in terms of their building items. It is focussed for modernization in terms of their furniture and utensils which are used in their hotels. Kundu Travels is planning for double expansion in these two things in upcoming five years (Navarro, 2006). The company is thinking of offering state of the art technical facilities regarding every aspects of tourism within the next five years. It is planning to come up with new modern parking slot for tourist to perk their cars. It is also coming up with an artificial water bodies surrounded by nature. This expansion program will take place within next five years. Apart from this entire big expansion plan the company is coming up with various small expansion plans also like more and more electrification of the place and some inclusion of more and more modern lighting effects. Maintenance of the facilities Maintenance is a very important factor for Kundu Travels must takes care. Every facilities and establishments faces erosions from nature. Every service needs maintenance time to time. It is very important to do maintenance of everything after regular interval of time. Kundu Travels must do maintenance of their building after every 3 years (Chaston, 2004). It can start from the older one. In terms of building company can maintain its oldest part of the building at very first. It can maintain its garden on a daily basis to keep its beatification alive. It can maintain all the electricity lines after every fifteen days. All the internet facilities can be checked after every week. Painting of the building can be done after every 5 years. Utensils used in hotels and cafeteria can be maintained after each quarter. Cleaning process of the total premises can be done on a daily basis. Maintenance is very important to keep the good health of business. If all facilities are not well maintained then the business would have an adverse effect. Suppliers analysis Different materials would be required. This portion would discuss about different materials and suppliers. Lists of the materials are 1) Milk 2) Food products 3) Beverages 4) Vegetables 5) Grocery 6) Room related products. Kundu Travels would require good set of suppliers. Different suppliers will provide different materials to the company. There are lots of criteria based on which company is going to choose its suppliers. Suppliers must be efficient. An efficient supplier can reduce the time of supply can help the company to get quick supply of material and company can forward its quick services to its tourists (Singla, 2011). Suppliers must supply good quality of products. Quality products supply is a very important criterion for choosing proper suppliers. Cost effectiveness is also a very important criterion for choosing suppliers. Kundu Travels must go for low cost but good quality suppliers. In this industry of total tourism bargaining power of the suppliers is very high. Company must maintain a good relationship with suppliers. The company must choose suppliers on the basis of its experience and on the basis of its past records. The company must deal with transparent suppliers. Transparency of the suppliers is a very important criterion for Kundu Travels (Rao, 2008). It should do in an agreement basis. The suppliers would supply different materials to the premises. The agreement will state that suppliers would carry all the materials up to premises of Kundu Travels. Transportation costs will be dived among them. Kundu Travels would give 50% of transportation costs and suppliers would bear 50% of costs. Inventory management system Inventory management system is very important for running the business properly. Inventory system is the backbone of any tourism industry. Inventory management system can be discussed on the basis of following factors. Ordering times of Kundu Travels for different material is very important. Ordering time must be very less. It must not be more than 24 hrs. It means that company can order its required material only 24 hrs ago; suppliers can deliver it within the stipulated time. It would reduce the inventory holding cost of the company. Company need not stock too much items for longer period of times. The company must maintain a high safety stock level. Business is full of contingencies (Fox, 2007). Kundu Travels should be ready for any contingencies. It must maintain at least 5days of safety stocks to offer uninterrupted services to its customers. Safety stock is very important to counter unavoidable situations. Safety stocks require higher investments but that investment is very important for uninterrupted service process. Kundu Travels must maintain higher minimum stock level. It must not wait for inventories to come very close to minimum stock levels. This is the level below which stock must not go. It also should maintain a calculated maximum stock level. It must not store unnecessary stocks in its ware house. Kundu Travels must store its inventory very well. There are lots of perishable products are there inventory. The company must store those products with especial care. It must use very modern storing systems for keeping it inventory in a good health (Laurie, 2007). Strategies for managing any seasonal variations Kundu Travels must design its strategy according to different seasons in Goa. It must be flexible in terms of their strategies. Goa is full of tourists during the New Year eve. It must go for a special strategy for that time. The demand of the rooms in the hotels and demand for the party hall are on the higher side in that period of time. In the summer time tourists are less in numbers in Goa. At that point of time Kundu Travels may come out with some discounting strategy to attract more number of tourists. Kundu Travels must take a different approach for rainy seasons. Different vegetables are absent in different season (Hill and Jones, 2009). It must design their food items or menu according to seasonal variations. For that it can arrange special seasonal menus suitable for that particular season. Regulatory and legal issues Keeping every legal thing properly is very important for Kundu Travels. It must abide by all the legal rules related to state of Goa. There are certain additional federal rules of India are there apart from Goa’s state rule. All those federal rules are have to be keeping in mind and must do business according to that. The regulatory policies and legalities are very important to keep the business transparent. The company must go for proper licensing for every required domain. Especially licenses for bars, pubs, Night clubs and Casino (Cunningham and Harney, 2012). The company must go for all the required certificates related with the environment. It must look after all the legalities related with human health care and social health care. It is very important part to run business smoothly. Human resources Position Number of employees Terms of Employment Recruitment sources CEO 1 Full Recruitment Advertising Vice President 2 Full Referral Associate Vice President 4 Full Recruitment Advertising Consultants 8 Part time and Full Time Referral Associates 20 Part time and Full Time Referral Training and development It is a very important process for the company. Here workforces are getting training about the industry. In case company is training a batch of young members with the help of an orientation process. This orientation process is of 2 months long where associates are trained in details about the whole industry. After that those people are being fitted into the on job training for 3months with Kundu Travels under the supervision of consultant. Here associate is assigned with real time experiences. They are assigned with fixed task. After 3 months those associates are given some leading role like managing different teams (Abraham, 2012). This whole training and development process is very important for the company as the future workforce will be produced from this training and development program. Continuous performance assessment must be done for all employees. This would enable company to know that which employee is performing good and which employee is not performing that good. It needs a performance monitoring system to assess the performance of different employees. A company is very much dependent on its workforces. Well trained workforce is can be a differentiator for any company. Tourism industry is full of services a well trained employee is very much needed for offering supreme services towards tourists (Mazzucato, and the Open University, 2002). Remuneration package Position Remuneration (INR) CEO 10lakhs/Month Vice President 8lakhs/month Associate Vice President 5lakhs/month Consultants 1lakhs/month Associates 0.5lakhs/month Superannuation is totally performance based there is no fix system for this. This portion is very important for any company. Appropriate remuneration can keep good and expert employees with the company. There are lots of other competitors are there in the market they can offer good remuneration to Kundu Travels’ existing employees. So to keep attrition rate under control company must offer competitive remuneration to its employee. References Abraham, S. C. (2012). Strategic Planning: A Practical Guide for Competitive Success. Emerald Group Publishing: London. Chakravarty, A. K. and Eliashberg, J. (2005). Managing Business Interfaces: Marketing and Engineering Issues in the Supply Chain and Internet Domains. Springer: Germany. Chaston, I. (2004). Knowledge-Based Marketing: The 21st Century Competitive Edge. SAGE: India. Coade, N. (1997). Managing International Business. Cengage Learning EMEA: UK. Cunningham, J. and Harney, B. (2012). Strategy and Strategists. Oxford University Press: London. Fox, W. (2007). Managing Organisational Behaviour. Juta & Co: South Africa. Hill, C. and Jones, G. R. (2009). Strategic Management Theory: An Integrated Approach. Cengage Learning: USA. Hutt, M. D. and Speh, T. W. (2012). Business Marketing Management: B2b. Cengage Learning: USA. Jenster, P. V.,  Hayes, H. M. and Smith, D. E. (2005). Managing Business Marketing & Sales: An International Perspective. Copenhagen Business School Press DK: Denmark. Laurie, J. M. (2007). Management and Organisational Behaviour: Financial Times. Prentice Hall: UK. Mazzucato, M. and The Open University. 2002. Strategy for Business: A Reader. SAGE: London. Navarro, P. (2006). The Well-Timed Strategy: Managing the Business Cycle for Competitive Advantage. Pearson Prentice Hall: USA. OaShaughnessy, J. (1995). Competitive Marketing: A Strategic Approach. Routledge: New York. Rao, P. (2008). Management And Organisational Behaviour (text, Cases & Games). Himalaya Publishing House: India. Reuvid, J. (2012). Managing Business Risk: A Practical Guide to Protecting Your Business. Kogan Page Publishers: USA. Singla, R.K. (2011). Management process and organisational behaviour: Global publication pvt ltd: India Read More