Background of the target industry.
Guesthouses are premises that accommodate visitors who have no place to settle. Hotels may, however, be home to a family who intentionally live there or on vacation. The services provided at the guest house are usually indoor and outdoor, which includes washing of utensils, cleaning the floor and cabinets, the free services which are offered to include breakfast, lunch, and dinner. There are several guests at Zhuhai, gundog Ong province in china. The main reason is that Zhuhai is considered one of the best special economic zones in China. The guest house offers comfortable beds, air conditioners television sets, water supply, which has hot showers and 24 hour Wi-Fi availability. The guest house is designed differently to fit the needs of the customers. Other guesthouses serve privacy. They do not have possible entities that cause disruption, for example, taverns or inns, while there are those which accommodate the corporate customers, maybe who are supposed to party.
At Zhuhai, the average price of a room per night goes for $12. Time also determines the cost of the rooms during the holiday when there are surplus customers. The price tends to rise. Also, it depends on where a customer chooses based on their economic status. There are those five-star guest houses and ordinary guest houses.
Guesthouse investment is a great business to venture into. Recently it has attained more likes, and property development consultants highly recommend it. The venture is located at Zhuhai, Guangdong province, on the southern coast of china. It borders Jiangmen to the northwest, Zhongshan to the north, and Macau to the south. The population of the area is made up of Mandarin-speaking economic migrants from inland provinces. Zhuhai has got good infrastructure, which enables the smooth interconnection of neighbouring cities, which is convenient for the customers to run their own business. The security is also suitable as the local government protects at all times. The types of customers which the venture receives include; individual customers who have travel from different parts of the world, the V.I.P members who may require personal assistants and security, clients who book the hotel online, the rooms are reserved for the number of days ordered unless cancelled. Group clients, the venture accommodate clients of the same origin or have travelled together maybe for a vacation, or any ceremony, the other clients are corporate clients who confer at the hotel to have a business meeting. The rooms are well spacious and have all the indoor facilities. The values of the customers are respected, and service at the guest hotel is beyond the obvious. The working staff is friendly and ready at all times to serve all the customers regardless of age, gender, or race.
Managerial problems.
The venture is one of the oldest guest houses at Zhuhai; the investment is unable to compete with other hotels in the area. The competitors in the area have utilized the use of information technology (I.T) in advertisements, evaluation of customer reviews to check on the satisfactory level, also there exists the perception of customers to go for new ventures to test waters. A new venture in a town may evade the market with a perfect marketing strategy and ends up winning more customers. The new venture may decide to lower the prices to gain customers’ trust or introduce a new product in the market, which was not yet exploited by the existing enterprises. Advertisements is one of the key strategies to get more customers into a business venture. Since there is fierce business competition, a business venture which advertises herself is likely to win more market shares; the new business ventures surround the area have invested much in advertisement diverting more customers from the investment. Indulska et al. (2009).
Investing in the advertisement is like trying to inform your customers what your organization is dealing with, or what services you offer. It is just a persuasive note which captures the attention of the consumers; it should have a reason as to why consumers should choose your business and not any other. There are several methods of making advertisements, including the use of celebrity persons, ads on websites that appear on the timeline when browsing, the use of social media Facebook, twitter or Instagram, and influencers. Gretzel et al. (2000). The venture is on the aging period when a competitor wants to join a market. Market analysis and market scanning is done to identify the gaps in production or service delivery. Therefore a new business such as our guesthouse as regard suffers as the inadequacy of services to offer to make the competitors shine even more. The competitors do evaluate the socio-cultural and economic trends to know what the consumers what or what is a new way of service delivery, which consumers find best, it might be through the use of questionnaires, online surveys, press reports, and local chamber of commerce reports.
The homogeneity in the industry has made the guest house incompetent. All guests’ apartments in Zhuhai offer the same services. For accommodation, all the guesthouses offer beds of different sizes depending on the number of people; there are hot showers, TVs, 24-hour WI-FI, ample parking, conferment facilities, and all other services done by the staff of the guest houses. They include washing and ironing of clothes, house cleaning chores, and provision of health and safety such as alarm systems in case of robbery or fire alarms in case of fire outbreak. Telecommunication services are included in the package when booking a room in Zhuhai; there are toll numbers for communication within the guest houses or external communication, for example, when seeking for taxi services at odd hours.
A market in which homogeneity dominates it tends to affect the profit made by business entities, the supply is larger than the demand making the prices to be lower. While a market that offers services that are different but complement each other is likely to attract more customers and fetch more profit for business entities. For example, residential blocks at terminus or bus stops complement each other hence doing the business to be vibrant. The homogeneity also leads to a natural form of the price war. Since costumers may be fewer compared to the business entities which offer services, some business entities may decide to lower the prices making those venture which maintained the cost to run at a loss. The other business entities may, however, choose to lower their rates, but the price of the current stock versus what is made will have a wide range causing losses. It may further affect the facilitation of normal operations of the guest house, such as settling water bills, electricity bills, land rates, and payment of suppliers. In a homogeneous market, the only advantageous entities are those who have a superior brand name. Szirmai et al. (2011). Branding aids much in business as consumers trust branded products compared to standard products; it may be the brand supports or practice operations that are safe to the environment.
The other problem which the venture faces is the easy coping of operations done. When a business strategic plan or procedures can be easily copied, then that venture can easily collapse within a short period of time. A hired manager, for example, may decide to leave and start his/her own business because he has the idea and concept of running the business at hand. The strategic plan, including the mission and vision statement, should remain the most observed in the organization, not unless the owner of the business has thought of selling out the store. Newbies in the industry may enter the market and refurnish the operation manner in which an existing business use and get a larger market share which remains a threat to the current business. Hodgetts (2001). An organization should have an elaborate management plan and unique methods of operation. Which competitors will find it hard to manipulate the process; this requires high trust amongst the management team and the employers. The objectives of an organization should be interpreted to make the workers identify methods on how to work so that the organization can achieve her vision. The shortcomings of the business should be dealt with immediately to avoid further losses. Continuous accumulation of losses will cost the venture as many funds will be required to resume the operations.
Objectives of the project proposal.
Under this project proposal, the main objective is to establish a new business entity that compliments the existing venture within a stipulated time framework using the minimum available resources. This project proposal will ensure that the vision of this organization is realized in a cost-effective manner, which will check on the cost of production together with other factors that undermine the operation of the organization. This project proposal considers the outcomes of the actions before choosing amongst the alternatives. This project proposal will enable the venture to realize its vision despite the problems which it had encountered before. And to make more sales compared to other competitors at the market, to identify the gaps in the market which have not been fully exploited than to establishing strategies that will aid in the exploration of the identified differences in the guest hotel industry. Timmons (1985). By the end of this project, the venture will have to resume her operations, which will be highly ranked at the market enabling the investment to be vibrant and compete favourably with other guest hotels. This project aims at establishing a software structure that will be used by the venture in her operations. The software system will control sales, customer care services, which will assist in reaching more customers; this project aims at establishing a plan for the allocation of resources for the development of structures for other businesses, which boosts the existing quest hotel. The project aims at achieving a complete refurbishing of the current equipment, partial redesigning of the facility to best fit the current needs of the customers as well as boosting standards to meet the current trends. This project aims at reviewing the existing strategic plan for the guest hotel and identification of the parts which are likely to be redefined to help the guest hotel to achieve her goals. By the end of this project, the guest house will have to establish a better method of dealing with price fluctuation which has been undermining her operations, and this proposal aims at creating a strong sales team who will be advising the management on actions to be done in order to achieve increased sales. This proposal will seek to review other case studies on how other successful projects were implemented and made the entities to shine again. This proposal will help in the establishment of parameters which will continuously evaluate the progress of the project.
The project action plan.
Goal 1.
Establishment of a nursing home.
Action.
Party responsible.
Date to begin
Due date.
Resources required.
Desired outcome
Notes.
Acquisition of premises for the establishment of a nursing home.
The investor
12-1-2020
12-4-2020
Human resources
Financial resources
This outcome of this is to promote the currently existing business of the guest hotel.
Goal 2.
The Refurnishing of the quest hotel.
Action.
Party responsible.
Date to begin
Due date.
Resources required.
Desired outcome
Notes.
The hiring of interior designers
The investor
31-12-2019
1-3-2020
Human resource
Financial resources.
This will help renew the guest hotel to have a new look.
Goal three.
Establishment of more soft wares.
Action.
Party responsible
Date to begin
Due date.
Resources required.
Desired outcome
Notes.
The hiring of information technology experts to help design new software.
The investor
31-12-2019
1-3-2020
Human resource
Financial resource.
It will enable the guest hotel to have the best software to run the business.
Goal four.
To establish an advertisement platform for the guest hotel.
Action.
Party responsible
Date to begin
Due date.
Resources required.
Desired outcome
Notes.
Advertisement of the guest hotel in printed media
The local and international media company
1-1-2019
1-2-2019
Human resource
Financial resources
will help reach more customers to the facility
References.
Gretzel, U., Yuan, Y. L. & Fesenmaier, D. R. (2000). Preparing for the new economy: Advertising strategies and change in destination marketing organizations. Journal of Travel Research, 39(2), 146-156.
Hodgetts, R. M., & Kuratko, D. F. (2001). Entrepreneurship: A contemporary approach. South-Western/Thomson Learning.
Indulska, M., Recker, J., Rosemann, M., & Green, P. (2009, June). Business process modeling: Current issues and future challenges. In International Conference on Advanced Information Systems Engineering (pp. 501-514). Springer, Berlin, Heidelberg.
Szirmai, A., Naudé, W., & Goedhuys, M. (Eds.). (2011). Entrepreneurship, innovation, and economic development. Oxford University Press.
Timmons, J. A. (1985). New venture creation. Tata McGraw-Hill Education.
Winterhalter, S., Zeschky, M. B., & Gassmann, O. (2016). Managing dual business models in emerging markets: An ambidexterity perspective. R&D Management, 46(3), 464-479.
