MANAGEMENT INFORMATION SYSTEM

MINI PROJECT
BUSINESS PLAN

THE CORPORATE HOTEL

Preface: What Is Business Plan All About?

This Business plan is about the Hotel which is named as THE CORPORATE. Actually this is designed for the Mini project presentation in the subject Management information system in the second semester of M.B.A., This business plan is designed by the group of students pursuing M.B.A., 2011-13 Batch in the F Section. This group consists of 12 students in this class. Each student is assigned a piece of job in this business plan and divided in to various departments to accomplish this plan with in a stipulated period. The department wise student list is follows:
DEPARTMENT INDUSTRY ANALYSIS AND SERVICES OVERVIEW MARKETING PLAN MARKETING STRATEGY SWOT ANALYSIS & MARKETING MIX OPERATION PLAN REG NO 3511110332 3511110336 3511110384 3511110388 3511110343 3511110386 3511110358 3511110359 3511110377 3511110344 3511110328 35111103 42 NAME TAPAN KUMAR PRADHAN RANDHIR KUMAR ASWIN ANNE DHAS .S PREETHI .J WILSON GEORGE SARATH .S VINOTH KUMAR .D SHANMUGAM K.S PREM KUMAR .E THIRU MURTHY S AMOS KELLY SYIEMIONG

FINANCIAL PLAN

MANOJ .B

Contents

EXECUTIVE SUMMARY GENERAL COMPANY DESCRIPTION 1.1 COMPANY OVERVIEW 1.2 MISSION AND VISION: 1.3 STRENGTHS AND CORE COMPETENCIES 1.4 CHALLENGES INDUSTRY ANALYSIS SERVICES OVERVIEW 3.1 SERVICES 3.2 BENEFITS AND FEATURES 3.3 WHY PEOPLE NEED THIS SERVICE? MARKETING PLAN MARKET ANALYSIS 4.1 Market Description 4.2 Market Facts 4.3 Market Size 4.4 Market Growth 4.5 Market Demand 4.6 Market Trends 4.7 Market Growth Potential 4.8 Market Opportunities 4.9 Barriers to Entry 4.10 Targeted Audience

4.11 Competition 4.14 Market Niche MARKETING STRATEGY 5.1 Value Proposition 5.2 Branding 5.3 Marketing Objectives 5.4 Strategy 5.5 Marketing Budget SWOT ANALYSIS MARKETING MIX OPERATIONAL PLAN 8.1 Service Execution Timeline 8.2 Location 8.3 Legal Environment 8.4 Personnel MANAGEMENT AND ORGANIZATION 9.1 Management Strength 9.2 Bankers 9.5 Advisor

FINANCIAL PLAN 10.1 Start-up expenses 10.2 Revenue Forecast (3 - Year)

10.3 Profit and Loss Projection (3-Year) 10.4 Pro forma Cash Flows (3-Year) 10.5 Projected Balance Sheet
10.6 Breakeven Analysis

Executive Summary
1. THE CORPORATE HOTEL will provide HI TECH RESTAURANT, BAR, BOARDING & LODGING SERVICES. 2. THE CORPORATE will offer automated services to all segments of customer. 3. Owners are well educated and dedicated towards hotel business. 4. Hotel market is on the boom in Chennai. 5. Market volume is expected to reach 69 billion by the year 2014

6. A large segment of market is still untapped. 7. Current Hotel facilities record high causing increase in HI TECH HOTEL demand. 8. Low income market segment is ignored by key competitors. 9. Hotel market is competitive in Chennai but provides equal growth opportunities. 10. THE CORPORATE will have their own Software development group with state Of the art Software technology equipment from quality manufacturers.

General Company Description 1.1 Company overview: THE CORPORATE HOTEL is situated in Chennai, Tamilnadu, India. It was formed by SRM Students in March 2012. THE CORPORATE will provide Hi- Tech Facility in Restaurant Fields With tablets in tables for menu selection and billing. And also provide the Safe and secure Hi-Fi Boarding and Lodging to the Corporate Peoples in the pleasant environment. 1.2 Mission and Vision: Vision: To reach all over the world as the corporate peoples prefer our hotel as First choice. Mission: To provide dignity and HI-FI Stay to corporate peoples 1.3 Strengths and Core Competencies:

Demand for the business is high. Certified Technical supporters with Experience to build it up. Various Kinds of Cases are instantly available to precaution our plan.

1.4 Challenges: THE CORPORATE will face a challenging situation in creating its brand image and attracting customers towards their services due to presence of already established players in the local market such as: HILTON LE MERIDIAN AQUA BENJARONG DAKSHIN SIX O ONE

Industry Analysis
Brief profiles of players in the Industry Best Hotel Chains Of I n d i a M e n t i o n e d the significant hotel chains of India, Taj Group of hotels in India: The most popular name that is almost synonymous to hospitality in India is that of the Taj Group. Offering the best hotels across various genres like business hotels, heritage resorts, luxury hotels and even sea resorts, the Taj Group is definitely the best in the field. The Oberoi Group of Hotels in India: One of the most prominent names among the hotel chains of India is the Oberoi Group. It also owns several properties in exotic places like Australia and Mauritius. With its world class facilities and efficient staff to manage and play the perfect Indian hosts, the Oberoi hotels is no doubt a great feather on the grand cap of tourism in India. Le Meridian Group of Hotels: The Le Meridian Group of Hotels has played an instrumental role in playing the perfect host to the millions of tourists and guests coming here. It is a luxury brand of great fame and reflects the inherent Le Meridian touch of elegance and class through all its properties in India. It is no wonder one of the exclusive hotel chains of India. Best Western Group: A world famous name when it comes to hospitality and service, the Best Western Group owns several properties across India. Each of the hotels has been equipped with numerous features to enable a cozy comfortable stay to the guest.

Services Overview
3.1 Services: THE CORPORATE will provide following services: BOARDING LODGING BAR RESTAURANT CONFERENCE HALLS PARTY HALLS

3.2 Benefits and Features: State of the art facility with latest equipment from quality manufacturers Lodging facility is fully automated & safe than others in industry.
Restaurants with the HI-Tech tables that contains tablets to order the

menus and for billing. 3.3 Why people need this service? Safe and Highly dignity stay in hotel. Near to airport & located in the pollution free pleasant environment Highly technical way of automated hotel in the country.

Market Analysis:
4.1 Market Description
According to a survey by Our team through the internet in year 2012, it was mentioned that there are more than 150 Five star high class hotels in Chennai in which most of them are concentrating the party halls, meeting rooms, conference halls, multi cuisine and the boarding and lodging in high class standards but none of the one is concentrated to the automated robotic hotels infrastructure that we are trying at the first time in Chennai particularly targeting the corporate peoples.

4.1.1 Industry Life Cycle:

Hotel Industry in CHENNAI is still in the growing stage, although it has been More than two decades of active operations. It is clearly explained in the following graph

4.1.2 Cyclical trends in Industry:

HOTEL business is not affected by different seasons and keeps running smoothly throughout the year

4.2 Market Facts:

Hotels market in Chennai has grown rapidly in the last 10 years, following are the key points related to the hotel industry growth in Chennai.

 Out of the total 4,681,087 members in Chennai, 2,357,633 are male and 2,323,454 female and 34% of them are used to go for this like hotels at least a day. Average annual income of hotel member is Rs 76,000. The benefits we are offering are not yet came in process in the current industry.

4.3 Market Size:

Total market size in Chennai is almost 10638834; members are often used to go this like of hotels. The percentage of estimated Customers is high were there is a reliable proof to have a good probability status for this.

4.4 Market Growth:

Hotel business in Chennai has grown at a very healthy rate in the last decade. As of 2007, hotel Industry market reached $.17.6 billion. It has doubled in size at almost 12.56% that was $7.8 billion in year 1995. It was a 24.1 million members market in The year 1995 this has grown at almost 7.13% to reach 41.3 million in 2005. See the Chart below to understand market growth.

4.5 Market Demand:

Hotel industry market in USA is getting more and more demanding with the passage of time. Following are the common demands that have arise in recent past. CUSTOMISATION EASE OF SERVICE EFFECTIVE OF EXCERCISE. Factor Causing Market Demand Per Capita Income Increase: Continuously increasing per capita income in the Last decade has enable people of Chennai to encourage them to spend a lot like this way. The mentality of the Chennai peoples also increases the demand of such hotels in Chennai.

4.6 Market Trends:

HOTEL industry has been changing its trends very quickly of late. Last five years have seen major changes in trends such as following: 1. Individual growing mentality to lead a luxurious life.

2. Corporate peoples feel to be secure and pleasant space to make their parties, conferences and to spend their week ends.

4.7 Market Growth Potential:

Hotel industry has a lot of potential in the future for both existing and new investors. Market is expected to reach 60 Thousand Customers by the year 2014. Market volume which is Rs.17.6 billion as of 2010 is expected to reach Rs.31.8 billion by the year 2014.

4.9 Barriers to Entry:

No such barriers in the entry of Hotel industry in Chennai.

4.9 Targeted Audience:

THE CORPORATE will be starting its operations in Chennai, Tamilnadu. This market houses targets the corporate peoples who looks to stay at Chennai either for Business purpose or for the Week end or summer or winter trip.

4.10 Competition: THE CORPORATE will enter in a highly competitive market of Chennai, but following three will be direct competitors of them due to their presence in the current trend. 1) THE HILTON 2) LE ROYAL MERIDIAN 3) TAJ CORAMANDAL 4) RAIN TREE 4.11 Market Niche: THE CORPORATE will enter in the market to serve the highly income corporate

peoples as the customer that forms 2.1% of total population in Coral Gables who are earning more than Rs. 50,000. THE CORPORATE will provide high price services with many more discounts as an introductory offer in the start to attract masses, and eventually set it to competitive rate.

MARKETING STRATEGY
5.1 Branding: THE CORPORATE will create their official website for creating a brand and company image in the market, as well as providing Online room, party hall booking and the online demo of our hotel architecture.

5.2 Value Proposition:

State of the art facility with latest equipment from quality manufacturers High dignity and systematic hotel facility with the current trend updating. Personal qualified system Maintainers to help to achieving results without wasting much time

5.3 Marketing Objectives:

THE CORPORATE will focus on creating a brand image in the corporate vicinity. They will participate in the routine events going to held at the Hotel.

5.4 Strategy:
THE CORPORATE will start by targeting the corporate peoples in the industry. They will convince people about the Technology and the safety that we have adapted in our hotel. . This will be accomplished by aggressively pursuing interaction and relationships with other corporate peoples as well as we are going to market our hotel directly to the top

level companies mostly IT Sectors.

5.5 Marketing Budget:

THE CORPORATE has allocated Rs.1,000,00 for marketing in the year 2013. This budget will be used for advertising on newspaper, television and printing brochures and also direct HR advertising in the reputed companies.

SWOT Analysis

Strengths:
Management committed towards to a result orientated approach to attract and maintain customers in a highly competitive market. The architecture and the facility of the hotel are well-thought according to the need of corporatist. Highly Dignified, Automated and Safe service than the existing market.

Company will hire qualified and trained staff to complete this project with in the specified time.

Weaknesses:
Personal training services can be high in costs. The hotel is low in staff that can be problem in providing service to a large Pool of members. Hotel is short of marketing budget to attract large business client.

Opportunities:
Hotel business market is rapidly growing.
Increasing Spending power is causing people to pay attention to spend week ends with this hotel. Corporate peoples are searching for this like of hotel services in Chennai.

A large segment of market is still untapped, corporate companies will be of special

focus Hotel which is totally non concentrated by the existing competitors

Threats:
Recession and economic downturn can slow down the growth of HI TECH HOTELS.

High cost offer than the well established competitors. Although its a small level threat due to a fact that market is rapidly growing.

Marketing Mix
THE CORPORATE HOTELS marketing mix is based on the following factors of product, cost, distribution, advertising and publicity

Product:
Hotel Services: Restaurant Boarding Lodging Party Halls Conference Halls Bar

Price:
Penetration Pricing: THE CORPORATE will face a challenging situation in highly competitive market of

Hotel industry in Chennai. Therefore our hotel will offer the hi tech automated restaurant also in the same price that the existing hotels providing rather to increase the customers visiting and gradually our hotel will increase its price even after break even point occurs.

Place:
THE CORPORATE hotel will be located at the OMR road were there is a pleasant environment and the traffic less way from the airport which makes all the corporate peoples to reach our hotel in efficient way. It will not involve in any kind of franchise or branch network.

Promotion:
Media Advertising: Our hotel will use internet, newspapers and magazines as the medium of advertisement. In addition they will print 5,000 brochures for creating aware in the market about our hotel services and facility and distribute those broachers to all the corporate companies around the country through courier, speed post and also uses the direct HR dealings with easy internet service to order and book the halls in our hotel.

Operational Plan Purchasing plan

Buying vs. Renting

Purchasing a Location Lease Negotiations Net vs. Triple Net Free Rent Modifications Location Considerations

Legal Environment:
There are no current legal obligations for The Hotel.

ACTIVITIES IN A CONSTRUCTION PROJECT

(TIME LINE)
PRE-LAND PURCHASE DUE DILIGENCE (EXPECT 2-4 WEEKS) SITE SCHEMATIC DESIGN (EXPECT 1 TO 4 WEEKS)

PLANNING AND ZONING APPROVAL (EXPECT 2 WEEKS TO 4 MONTHS) SITE PLAN PERMIT DOCUMENT PREPARATION (EXPECT 2 TO 3 WEEKS)

LAND DISTURBING ACTIVITY EROSION CONTROL- GRADING PERMIT (EXPECT 1 TO 2 WEEKS) SITE WORK GRADING THROUGH BUILDING PAD (EXPECT 2 TO 8 WEEKS) BUILDING SCHEMATIC DESIGN (EXPECT 1 TO 3 WEEKS) BUILDING PERMITTING DRAWINGS (EXPECT 3 TO 8 WEEKS DEPENDING UPON PROJECT COMPLEXITY) PROJECT PRICING (COMPETITIVE OR NEGOTIATED) (EXPECT 2 TO 3 WEEKS) VALUE ENGINEERING AND CONTRACT NEGOTIATION (EXPECT 2 WEEKS) CONSTRUCTION (EXPECT 6 TO 12 MONTHS)

Clearing the Lot Footings and Foundations Framing Windows and Exterior Doors Plumbing, Mechanical, and Electrical Roughs Siding, Roofing, and Exterior Trim Insulation and Drywall Interior Doors and Trim Cabinets, Tile, and Glass Painting, Paper, and Floor Coverings Hardware, Equipment, and Fixtures Finish Plumbing, Mechanical, and Electrical Finish Grading and Landscaping

SERVICE EXECUTION TIME LINE

TASK

Execution Period

Jan 12

Feb- Jan Dec 13

Feb Mar Apr May 13 13 13 13

Choosing location Construction of building Web site development Interior finishing work Promotional activities Opening the Hotel

Management and Organization

Management Strength: This hotel is a partnership concern were all the management peoples in this group are M.B.A., graduates from academic year 2011-2013 passed out. in the

BANKERS: 20% of the total investment is by the entrepreneurs balance amount is borrowed by the bank which providing the loan with the lowest interest rate and easy return EMI.

Financial Plan
Start-up expenses
The start-up expenditures for THE CORPORATE HOTEL are summarized below:

Startup Expenses
THE CORPORATE, Sources of Capital

Investment requirement Rs. 4,00,00,000

_______________

Total Investment
Startup Expenses

Rs.4,00,00,000 --------------------

Land purchase Building construction Interior Design Hi tech Equipments Promotion System Development Opening Function exp.

By Bal c/d (for the further Maintenance expenses)

1,00,00,000 1,00,00,000 50,00,000 1,00,00,000 1,00,000 20,00,000 9,00,000 _____________ 3,80,00,000 ______________ 20,00,000

Revenue Forecast (3 - Year)

The Revenue forecast here is generated in the concept of customer arrival expectation and the earning per customer is estimated to be at the minimum of 5,000 it is briefly described in the following table.

REVENUE FORECAST (3 Years) THE CORPORATE

Year 1

Year 2

Year 3

CUSTOMERS: Year 1 : 5,000 (5,000 x 5000) Year 2 : 7,000 (7,000 x 5000) Year 3 : 10,000 (10,000 x 5000) 2,50,00,000 3,50,00,000 5,00,00,000

2,50,00,000 3,50,00,000 5,00,00,000

Note: The above revenue statement is only the expectation it is not at all reliable source and it is just for the companys calculation at its own break even level.

Projected Balance Sheet

Balance Sheet (Projected)

Particulars

Beginning

Projected Year 1

Assets
Current Assets
Cash in bank Accounts receivable Prepaid expenses Total Current Assets 2,50,00,000 3,50,00,000

2,50,00,000 2,00,00,000 1,50,00,000

3,50,00,000
1,80,00,000 1,48,00,000 3,28,00,000 6,78,00,000

Fixed Assets
Land & Building Furniture Total Fixed Assets TOTAL Assets

3,50,00,000 6,00,00,000

Liabilities and Equity

Current Liabilities
Accounts Payable Long-term Debt Bank loans payable Total Liabilities 000 00000

Owners' Equity
Retained earnings - beginning Retained earnings - current Total Owners' Equity Total Liabilities & Equity

6,00,00,000

6,78,00,000

6,00,00,000

6,78,00,000

6,00,00,000

6,78,00,000

Appendix

Web sites:
http://www.bizplancorner.com/samples/health-club-business-plan.pdf www.google.co.in www.bizplan.com Reference: Buisness plan of the hotel Mayo @ California through net. http://www.bizplancorner.com/samples/health-club-business-plan.pdf