This study sought to analyze the business plan for Hbrain Ltd. In so doing, it defined the following main objectives: to achieve a competitive edge in the travel and hospitality market through the adoption of Internet technology, to maximize revenues, to enhance customer loyalty and retention in the face of global competition, to be the market leader in accommodation and to liaise with key stakeholders in the travel and hospitality industry in an effort to enhance tourism in the area.
Hbrain Ltd Marketing Strategy
Hbrain Ltd will implement the set objective by pursuing a niche marketing strategy. Thus, the firm will tap the underutilized resources by segmenting the overall market, setting clear goals and objectives and positioning for a competitive advantage. In addition, the company will realize the set objective through value addition, boosting value addition through awareness, branding, promotions and campaigns. The company will divide its target market into local and international tourists. The local market will further be divided into young and single travelers and family groups. The competitors established in this study were mainly local travel and hospitality companies.
Hbrain Ltd believes in a strong leadership team that will facilitate the set objectives. The Chief Executive officer will provide effective management and determine the company’s vision. The senior leadership team will also consist of two directors who will assist in the long-term growth of the company. The company will strive to motivate its employees to carry out their duties enthusiastically and effectively.
The financial section of the plan outlines the projected financial outlook on the first three years of Hbrain Ltd. The proposed travel and hospitality company has been subjected to the most rigorous analysis, and it can be concluded that it would be viable under all realistic scenarios. This plan demonstrates that the venture is a solid new business based on real and exciting opportunities.
The travel and hospitality industry has gained popularity as one of the leading employers in Australia. Indeed, virtually, more than half of the Australian economy is based on this industry. This is largely due to the country’s geographic positioning, the existence of a government sector that is efficient, a competitive business sector, and a labor market that is flexible.
1.1 The Business
Hbrain Ltd strives to be the market leader in the provision of guest services such as accommodation, laundry and consultations at discount services throughout Adelaide and Melbourne cities. Like many other startup businesses, Hbrain Ltd will incur various initial obligations and costs. First, we will need to obtain a trading license to legally allow Hbrain Ltd provide guest services. The company also needs to register the “Hbrain Ltd” name with the Registrar of Companies.
1.2 Vision Statement
To be the market leader in the provision of excellent guest services in Australia..
1.3 Mission Statement
The company aims to become the market leader in the Australian travel and hospitality industry by providing visitors with a panoramic experience that relieves them of the hustle and bustle of the harsh life through adoption of state of the art technologies, and taking into consideration of economic and environmentally sound practices.
- To achieve a competitive edge in the travel and hospitality market through the adoption of Internet technology.
- To maximize revenues, to enhance customer loyalty and retention in the face of global competition.
- To be the market leader in the services industry and to liaise with key stakeholders in the travel and hospitality industry in an effort to enhance tourism in the area.
1.5 Strategies for Achieving our Goals and Objectives
Hbrain Limited hopes to employ several strategies in order to penetrate in this market with ease.First, Hbrain Limited will carry out an extensive public relations campaign in the country. However, due to limited financial resources, this campaign will mainly zero in on the cities of Adelaide and Melbourne, where operations will begin. We will invest in other parts of the country once the business operations stabilize. Other strategies that will be employed include delivering superior product knowledge, and providing high quality customer care service. This will involve attending to customer queries in a professional and personalized way. Hbrain Limited intends to introduce a suggestion box where customers can provide feedback. Hbrain Limited will also create reference materials for its clients. This will help them better understand the type of services Hbrain Limited should provide for them.
1.5.1 Strategic alliances with other companies
In order to increase the company’s presence in the market, Hbrain Limited seek to develop strategic alliances with other businesses that are well established in the market. Although these companies will not be competing with Hbrain Limited for customers, they will help in the distribution of the tourism related products in the country. The business will open its initial offices in Adelaide and Melbourne. However, with this strategic alliance, the products will be distributed across the country, giving more people access to them. However, the Hbrain Limited will have to pay the contracted supermarkets a certain commission for selling these products. Although sales volume will go up, the payment of this commission may reduce the profit margin.
Another type of strategic relationship that would benefit the company involves developinga joint venture with tourism companies in Australia. This would not only increase our sales, but would also promote the brand in all areas the company will be conducting its operations. Under this agreement, Hbrain Limited would be required to pay a royalty to this development partner for their role in creating the product.
2.0 INDUSTRY ANALYSIS
2.1 Trends and Characteristics
In the recent past, the tourism sector in Australia has recorded considerable growth despite struggling global economic conditions. According to Kurtz (2013), Australia tourism is expected to increase by 4 per cent between 2013 and 2020. The buoyant in Australian tourism industry has been made possible by the existence of a government sector that is efficient, a competitive business sector, and a labor market that is flexible. The government has set forth policies that ensure that the tourist industry is vibrant. The tourism industry has also played a prominent role in the creation of jobs, regional development, and export earnings. Tourism contributes significantly to the gross domestic product (GDP) of Australia. In the services sector, tourism has been the biggest export earner. The increase in visitation to Australia has, in turn, led to an increase in the number of tourism businesses. Key indicators show that the travel and hospitality industry employed over 500, 000 workers in 2011 and paid about $70 billion (Australian) in wages to the diverse workforce (The Blue Mountains, 2011).
In Australia, restaurants are found in major towns, in uptowns, near airports and at resorts. In the face of globalization, hoteliers across Australia have embarked on franchising their hotel businesses with a view of appealing their customers. Also, most hoteliers across Australia have overwhelmingly institutionalized the culture of innovation to meet the customers’ needs. For instance, most reservations are made online. In addition, hoteliers are advertising their business online and this allows guests to review the services offered before booking.
The general trends in the tourism industry in Australia include the following:
Greater awareness of tourism, hence an overall increased demand for the best tourism products.
Preference for the individual is increasing. Tourists are looking for the destinations on a budget.
Travelers with less leisure time are opting to travel to destinations near their homes.
Intra-regional travel is expected to grow at a high rate over the next few years.
Experienced travelers are seeking to travel to remote areas, and areas that are not well known, as opposed to expensive five-star resorts.
2.2 Gaps in the Market
Despite its success, the travel and hospitality industry has faced several challenges that are hindering the realization of its full potential. One of the greatest of these is the harsh climatic conditions. Climate change influences both behavior and demand. Some of the main issues that can affect tourism in Australia as a result of climate change include the rise in the sea level, biodiversity, changes in rainfall, and changes in the fire ecology. In addition, there have been massive displacements, land ownership issues, pollution, and habitat annihilation among other issues in recent years, and this has caused conflicts in the land. Snow, rise in sea-level and other climatic conditions normally influence visitors’ perceptions, motivations and destination choices. For instance, most consumers feel compelled to visit a destination or see an attraction before it is lost as a result of climate change.
2.3 Profile of Competitors
Tourism firms in Australia have been steadily increasing. Many are well established operators with quality products and services such as Netflights, Travelbag, Austravel, Connections Adventures and Qantas Holidays. The advantage these operators have is that their brands are known all over the world. As a result, a client may opt for their products over the lesser known ones. However, these competitors have a number of disadvantages that put their businesses at risk. At first, these operators have no authority to increase or decrease the cost of services without written approval from their head offices. This may affect their performance in the event of a communication breakdown. It should, therefore, be left to the staff on the ground to make decisions and then inform their head office later thereafter.
In order to avoid all these challenges, Hbrain Limited would appoint a sales manager who will be held responsible for all the decisions he or she makes. This move will help Hbrain Limited maintain its reputation as a company where people are allowed to make decisions so long as it is for the benefit of the company.
2.4 Competitive Advantage
Although Hbrain Limited will be a new company in the market when business operations are launched, the company hopes to have a competitive advantage over the others because it aims to introduce high quality tourism products at a very competitive price. Secondly, Hbrain Limited hopes to provide better value to customers in terms of efficiency in service delivery. Hbrain Limited will also employ the latest technology available in the market to enhance customers’ satisfaction while increasing the number of repeat clients it hopes to serve in the long term.
Hbrain Limited will market itself as the only company where the consumer benefits are realized when a person does business with it. Due to the use of the latest technology in the market, customers are able to save money, the company can provide better customer service, reduce churn, and increase loyalty. Efficiency in carrying all the activities will be a time saver. The deployment of modern technology will ensure that there is no downtime whenever a customer is being attended to. As a result, there will a decrease in errors and increased sales.
2.5 Market Needs/Demands
From the market trends listed above, it is obvious that the market demand for tourism is increasingly changing. As a result, existing tour operators are forced to develop new services that will be appealing to their clients. For this reason, Hbrain Limited will have to carry out a market research to establish what its customers on the market today need.
2.6 Potential Future Competition
The company expects competition in the tourism industry to continue to grow. The number of people visiting destinations is increasing, and therefore, the demand for tourism will remain high. In order to remain competitive in this industry, Hbrain Limited would invest a substantial amount of money in improving and expanding the business premises. It is expected that with more companies entering the market, a company will be required to come up with additional services that will attract and retain the existing clients. This will ensure that Hbrain Limited remains ahead of its competitors. The multinational corporations are also major competitors in this industry. These international companies have adequate resources at their disposal, and therefore, competing with them may be a major impediment to the growth and progress of Hbrain Limited. This means that setting up branches or distribution points may be challenging since these big companies have already set their base operations there.
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Hbrain Limited will be in competition with other well established tourism companies in Australia and the world at large. The company realizes it will be face difficulties in competing for clients with these companies, and therefore, it has to devise new ways of winning customers faith. In order to achieve this, Hbrain Limited would introduce various types of services in the market, including accommodation, attractions, transport and other amenities that visitors require during their trip. In order to gain a considerable market share, the company intends to sell its services at lower price compared to her rivals.
2.8 Research and Development
Hbrain Limited would engage in research and development activities. This department will be headed by an expert in research matters who will be based in the sales and marketing director’s office. The department would develop ideas that could help the company compete with others in the market. Research and development is very critical for any company that wants to compete effectively with others in the same industry (Kao, 2010). Kao (2010) observes that through research, a company will understand the needs of its customers better. Hbrain Limited research and development will occasionally yield innovation without input from customers or the marketplace. In order to improve Hbrain Limited research and development, the company would require additional resources in the future. These would include more people and capital expenditures to speed up the development process and to test results more efficiently.
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3.0 THE MARKET
While much of the world has been struggling as a result of the recent global financial crisis, Australia has been largely unaffected. In fact, the travel and hospitality industry has continued to see consistent grow (Woodside & Martin, 2007). The consistent growth in this industry is a signal to investors that there is potential money to be made.
3.1 Market Description
The market that we intend to penetrate first is Adelaide. Adelaide is one of the most popular destinations in South Australia (Shackley, 2012). The city is considered to be one of the most liveable cities in Australia due to its various heritage sites (Ntumy, 1993). Among the fascinating tourism spots in Adelaide include its many beaches, Barossa and Coonawarra Valleys, and Adelaide Hills among others. The city is also densely populated, which provides a ready market for travel and hospitality business. The proximity to Kangaroo Island also makes Adelaide the destination for thousands of visitors domestically and across the globe (Shackly, 2012).
On the other hand, Melbourne, being the state capital of Victoria provides yet another big market for the Hbrain Limited. This city is the second most populated in Australia, next to Sydney As a result, Hbrain Limited hopes to open an outlet there to tap the market for this growing population.
3.2 Market Prospects
Hbrain Limited believes that if more efforts are put on the local market, there is a room for a better performance with time. The company would offer high quality services at a relatively low cost to its clients so that it can attract more in the business. By offering high quality product and services, the Hbrain Limited would best be able to meet and address the needs of its clients.
Through the hiring of professionals to market the products, Hbrain Limited believes that it has the potential to drive its sales higher in these regions and others where competition is not very high.
3.3 Customer Segments
The target market for Hbrain Ltd would be divided into local and international. The local market would consist of the residents of Adelaide. The local market would further be divided into
young and single travelers, and family groups. The demographics of Adelaide provide a firm base for why it is a promising market for our company. According to the Australian Bureau of Statistics (ABS), there are 1,277,174 residents in Adelaide. In order to target the international market and boost export earnings, the company would target various regional markets such as Africa, Asia, Europe and the US.
The following are the three distinct target groups for our products:
- Young Australians between the ages of 18. This group would generally comprise of individuals with low-average-to high incomes. Thus, they are expected to be more price-sensitive.
- Australian couples and families travelling around for recreational reasons, to view beautiful sceneries or to visit friends and relatives. This group would be expected to comprise of individuals with access to average to high levels of incomes. They would be expected to seek quality, but inexpensive services.
- Foreigners visiting Australia to view attractive scenarios, on business travel or to visit friends or relatives. Individuals in this segment would be expected to have access to high levels of incomes. They would therefore be expected to seek for premium services.
3.4 SWOT Analysis
The company will carry out a market analysis in order to gain an insight on the attractiveness and the dynamics of the tourism industry. An analysis of the market allows marketers to identify the key success factors, threats, opportunities, trends and to create strategic questions that can guide information gathering and analysis (Dibb & Simkin, 1996). Thus, the company would be able to predict how the Australian travel and hospitality market is going to develop both in short-run and long-run by conducting a market analysis.
Research conducted by Hitt Ireland & Hoskisson (2011), defined strengths as something a company is good at doing or characteristics that give it enhanced core competence, such as physical assets, brand name, original intellectual property right, highly motivated workforce among others. The travel and hospitality company has significant strengths and competitive advantage in effective leadership team and narrow product line.
According to Hitt, Ireland & Hoskisson (2011), weaknesses are the failures that prevent a firm from attaining its set objectives. Among the major inadequacies of Hbrain Ltd could include the narrow service line may hinder the company from meeting its marketing objectives. Additionally, the company would incur huge losses if customers switch to competitors’ products.
Hitt, Ireland & Hoskisson (2011), in their studies, argued that opportunities are those aspects that enable a firm to perform exceedingly well and achieve its set goals. Opportunities play a crucial role as far as the firm’s growth and profitability are concerned. The high population growth in Adelaide presents a great opportunity for the company’s services. Research indicates that young and well educated people in Australia are the main consumers of travel and hospitality products (Year Book Australia No.,67; Issue 1983, 1983). In addition, they have a high disposable income, and thus, Hbrain Ltdwould is in a better position to enhance its sales volume.
Hitt, Ireland & Hoskisson (2011), in their studies, argued that threats are aspects that inhibit a firm from realizing its full potential. According to Hitt, Ireland & Hoskisson (2011), threats inhibit growth, slow down productivity or erode the firm’s competitive advantage. A factor that could hinder Hbrain Ltd’s ability to realize its full potential is that in the recent past hospitality businesses across Australia have engaged in massive advertising campaigns. The hospitality business spends a considerable amount of money advertising their products. As a new business, Hbrain Ltdwould lacks the huge advertising budgets to compete effectively.
3.5 Marketing Strategies (4Ps) and Differentiation
Hbrain Ltd would sell both inbound and outbound retail travel services, targeting recreational and business travellers. In addition, the company would offer room accommodation services with safe and comfortable facilities. The company would exploit the opportunity and offer professional services and consultations to travellers. Additional services will include destination packages, custom packages, car rentals, rail passage, airfares, pre-arranged tours and consultations among others.
The company will offer customized travel services. This will be achieved through innovation of numerous services to suit the different consumer segments and to market them through the most effective approaches. Initially, the company would focus on inexpensive services with desirable qualities. This will be attractive to Australian travellers, who are likely to be the first clients that seek our services. With time, premium services would be included in order to suit clients that are seeking quality.
Hbrain Ltd would strive to maintain a competitive pricing policy by keeping its prices slightly below that of rival firms. However, as the company builds its reputation, it expects to be able to charge comparable rates to other tourism companies by offering premium services.
3.5.3 Distribution (place)
Distribution for all marketing and promotional materials will focus the whole of Australia. Personal attention and consultation details would begin with initial in-office consultations in an office that would be located in Adelaide. Face-to-face meetings between clients and staff would also be conducted in other places chosen by clients. The company would develop a website that will form a major distribution channel.
The sales would be channeled through; three major distributors and three wholesalers. They would be given target quotas to achieve on a monthly basis. Incentives would be given to high achievers.
The business would be very competitive in terms of service delivery, quality products, benchmarking and cost effectiveness. In order to perform better than its rivals, Hbrain would benchmark its services against those of the competition in the industry. The company would also consider robustness for its services. Robustness will provide Hbrain Ltd with core competency by making it hard for the rival firms to imitate. Also, Hbrain Ltd would strive to deliver quality products. To attract customers, the prices would be reduced at the rate of 3% from the normal price that the competitors are charging. Due to high price and poor services offered by competitors, there would be an advantage since the company would render services at a reduced cost but of high quality. The company would strive to manage costs in order to keep the price tourism products as low as possible.
The services of this company would be promoted in various types of media, including televisions, radios, newspapers, magazines and online. Research conducted so far indicates that most of the target customers are Internet users and, in fact, most of them purchase travel and hospitality services online. Thus, the Internet offers a great opportunity for this company to advertise its services and to communicate with clients. The company would therefore develop a fully functioning website that would provide details about its services and would allow clients to book online. Advertisements would also be made in social media platforms, including Facebook and Twitter. The users would be able to post comments. They would also be able to post pictures of various events, offer advice and tips and rate vendors. The main advantage of this strategy is its minimal total cost.
3.6 Market Positioning
Market positioning is imperative for the company in creating a niche in the travel and hospitality market in Adelaide. This can be realized through the branding of the products, campaigns and promotions for Hbrain products, as well as ensuring consistency in the look and quality of the services. The services should also be easy to differentiate from other brands and services. In so doing, the consumers will be made aware of the service and its superiority over the other brands that provide them. The branding process will ensure the product’s uniqueness and align consumer’s expectation with the service (Dahlen, Lange & Smith, 2010).
4.0 The Organization
Hbrain Limited would practice efficient and effective hiring and training procedures that will facilitate its set objectives. Thus, Hbrain Limited will encompass the proper staff with the right leadership skills to make sure that the company achieves success and continued growth over the long term. . The care taken during the selection of candidates will provide this company success.
4.1 Management Team
Our management team will include men and women who are experts in their fields of specialization with many years of experience. They include the chief executive officer, who will be the head of the company, sales and marketing director and the human resource manager. There will be other employees who will work below these senior members.
Hbrain Limited Organization Chart
4.1.1 Chief executive officer/ president
According to Blackwell (2010), the success or failure of organizations in the modern business panorama largely depends on managerial leadership of the CEO. The CEO would clarify the Hbrain Limited strategic intent by setting a clear vision. He or she would be required to build a strong organization by developing a common mission that drives both management and employees. In addition, the CEO would be expected to shape the organizational culture by building values and beliefs that will shape the organization positively. The CEO will liaise with the executive and the marketing director in order to enhance growth and profitability.
The main roles to be performed by the CEO of the Hbrain Limited are:
- To make sure efficient and effective internal controls and information management system are closely monitored.
- To liaise with the Board members of the company to make sure that the company’s objectives and strategy are met in order to record growth in the stipulated time.
- To make sure that the company is organized well. This would entail developing a human resources department that is capable of hiring the most suitable candidates who have the company’s objectives in their heart.
- To ensure that the company’s expenditures are within the authorized annual budget. This would help address the issue of unnecessary expenses that may not be accounted for.
- To ensure that Hbrain Limited maintains high standards of corporate citizenship. He or she would also address the issue of social responsibility where the company may participate in social activities in its areas of operations.
- To be the liaison between the company and the management board.
- As the Hbrain Limited grows, it would be expected that it would offer public shares. Should this occur, Chief Executive Officer would be responsible for communicating with the shareholders, government agencies and other stakeholders in the country.
To consult with other board members to decide the company’s annual meeting with the shareholders.
To ensure the integrity of all public disclosure by the company.
- To ask the board members to set agendas to discuss whenever there is a meeting.
4.1.2 Sales and marketing director
The sales and marketing director would be entrusted with the role of ensuring that the company’s services are properly advertised. As such, this individual should have a marketing background, be social and outgoing. In addition, the director must have superb communication skills. He would be expected to have a good background of Adelaide and Melbourne in order to assist in identifying the right group of clients. The marketing director would conduct frequent meetings with the CEO and the executive manager in order to discuss where Hbrain Limited stands in the market.
Some of the roles delegated to the sales and marketing director are:
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- To make sure that marketing led ethos are instilled in the company in all its business activities.
- To carry out a research and report to the CEO of the available external opportunities.
- To establish a good customer relationship, so that customers can feel comfortable whenever they are being attended to by the staff.
- To prepare a marketing strategy and plan that the company would follow in every financial year.
- To ensure that the customers ‘needs are promptly attended to.
- To devise marketing strategies the company would adopt in order to gain more clients in the market. The success of the company depends on its profit margins. Therefore, if the marketing director uses an advertisement that is appealing, the chances are higher that sales volume will go up and lead to more profits.
- To develop guidelines to be followed when marketing company in the country and the world at large. In the contemporary world, the use of social media has in fact increased companies market share. Hafford-Letchfield (2010) argues that the use of Facebook and Twitter for instance has increased, and therefore, if an advertisement is posted in any of these sites, millions of potential clients could see it and in turn decide to purchase such services.
4.1.3 Human resource manager
This individual will be in charge of managing the welfare of the employees in the company. These are all key responsibilities that will ensure Hbrain Limited runs smoothly and error free. As such, the candidate would be expected to have a managerial background, as well as good communication skills. Having a background in the hospitality industry would be a plus, but is not necessary.
The roles to be delegated to the human resource manager would be:
- To recruit the most qualified candidates to work for Hbrain Limited. He or she would be required to prepare a shortlist of candidates for an interview. He or she would then select the most suitable candidate(s) to fill the vacant positions. However, some of the interviews would be conducted in liaison with the sales and marketing manager to make sure the selected candidates are the most qualified.
- The human resource manager would organize training workshops for the members of staff. In addition, the human resource manager would also organize team building activities.
- It would also be the responsibility of the HR manager and CEO to determine the amount of salary to be paid to other employees in the company. Depending on an employee’s performance in a year, the human resource manager might recommend to the CEO that the best performing employees to be given bonuses.
- The human resource manager will also be the link between the employees and the top management of the company. The employees would be required to raise their concerns to the HR manager who would then pass them up to the company’s top management for deliberations. Other roles may include, policy recommendation to the top management, measuring employee performance, organization development and leadership.
4.1.4 Sales and marketing executives
This group of people would be the main ambassadors of the company in the field. They would play an important role in making sure that the company is marketed out there to the potential clients. They would be required to have prior knowledge in the sales and marketing field. This would l help the company spend less time training on them. Though not a necessity, experience in travel and hospitality industry would be an added advantage to the candidates.
Their roles would include:
- To promote the company’s products and services in Adelaide and Melbourne. This would include placing advertisements in strategic places where potential customers can best see them.
- Sales and marketing executives would also be required to communicate with the targeted people and manage customer relationship.
- Whenever Hbrain Limited wants to place an advertisement, it would be the responsibility of sales and marketing executives to make sure that such is properly designed to attract more customers.
- In addition, sales and marketing executives would have to make a follow up and know how the customer is fairing with the services they received from Hbrain Limited. This idea will make the customer is satisfied with that kind of service. As a result, he or she might recommend his or her friends to our company.
- Sales and marketing would be required to keep and update the clients’ database. Since they would be in contact with the customers, each one of them would need to note the number of customers he has talked to and their response towards Hbrain Limited. This would help them when offering recommendations to the senior managers on what ought to be done.
- The company would provide opportunities for the sales and marketing executives to attend events and workshop that would help them understand the current trends in the marketing field.
- Other roles include conducting market research such as customer questionnaires and focus groups to understand customers’ needs. Carrying out market research is critical because the company would know the taste and preferences of its clients. Truitt (2002) argues that market research is important because it helps the company produce and sell what people are in need of.
- Sales and marketing executives would be tasked with monitoring the activities of other competitors in the industry. This would help the company understand and embrace better marketing strategies than her rivals.
- They would also support the marketing director in implementing the marketing strategies decided upon by the company’s top management.
4.2 Other Employees
These are the people who would be helping in the management of the company. Such staff would include the accountants, the receptionists, office messengers and the customer service agents. Although these people are not directly involved in the management of the company, they would play a critical role in ensuring that company policies are implemented to the letter. The above employees would need to have prior experience in their relevant field before taking up their positions in the Hbrain Limited. In the reception area, for instance, there would be two workers to ensure that there is always at least one staff in the office. The workers would l be responsible for taking phone orders, organizing client’s meetings and supplying information regarding all the products. They would also be required to update the human resource manager on a timely basis. The accountant would need to be a certified accountant with relevant experience.
5.1 Employment Benefits
Hbrain Limited employees would be given 13 paid holidays annually as stipulated in the Holidays Act 1910 (SA). The employees would also have 10 full vacation days. However, they must ensure that the vacation days are approved by the human resource manager. Prior to taking up their positions, the employees would be required to sign a letter of acceptance. The letter would contain their monthly salary and the benefits associated with their ranks in Hbrain Limited. Hbrain Limited understands the importance of sick days since everyone gets sick. Therefore, the company would encourage its employees to take 10 sick days.
In order to prevent instances where employees fail show up for the job for being sick beyond the designated 10 sick days, Hbrain Limited would require all its employees to get a letter from a recognized hospital to support their claims. The company would partner with a local hospital where its employees would be attended every time they become sick. With this kind of arrangement, Hbrain Limited would monitor the attendance of its employees. Senior managers would have insurance coverage that will also involve their immediate family members, including their spouses and children below the age of twenty one. These benefits are meant to boost the morale of the employees, and provide incentive to work harder for the realization of the company’s objectives.
Hbrain Limited would also reward all its top performing employees with cash incentives, and issue them with recommendation certificates. In addition, the company would make it a policy to have an annual salary increment to its employees. This is in addition to the annual office party that the company would offer its employees. After one year in office and in the field, Hbrain Limited wants its employees to have a get together where they can eat and drink. This is to promote unity and cohesiveness amongst them and promote communication between the senior staff and the junior employees.
Hbrain Limited would offer free training to all its employees regardless of the position in the company. Hbrain Limited is aware that customer satisfaction begins the moment a client steps in the company or the kind of reception he or she gets. Therefore, all members of staff would undertake a mandatory course on customer service to improve the company’s name amongst clients.
5.2 Labor and Employment Laws
Australia has several labor and employment laws that aim to protect the employees and employers against lawsuits (English & Moate, 2010). Hbrain Limited would, therefore, abide by all Australian labor and employment laws. In order to promote and motivate the employees, the Hbrain Limited would engage all its employees to make sure that no issue is taken before a court of law. Secondly, employees would be allowed to join trade unions so that their grievances can be addressed with utmost concerns. Although trade unions have been blamed for inciting employees against their employers, Hbrain Limited would engage the employees and the labor unions in a professional way, to make sure that all pressing issues are solved amicably.
Australian employers are required to keep records of all employees in order to determine the tax returns. The company would follow the tax laws to the letter. Keeping good records will also enable the company to monitor its progress, prepare financial statements and keep track of deductible expenses (Hall, 2004).
6.0 THE FINANCIALS
The financial analysis for Hbrain Limited would begin from the point of the initial investment of startup costs. Further, it would explain a 3 year financial projection for the sales revenue as well as related costs. Additionally, it would explore the net income of the investor. We will conclude by showing the projected profitability figures of the business with a break-even analysis. The expenditure and investment funds would be put on priority of value addition, and profit generation cost control parameters. The management would outsource monthly auditors to ensure all accounting procedures are adhered to. The financial control would prepare the document that is; Trial balance, financial budget and Profit and loss account.
6.1 Start-up Costs
Hbrain Limited is easy to start because the initial investment required is low. The startup cost of the Hbrain Limited is $18,200.
6.2 Projection of a 3 Year Financial Statement
The financial reports for Hbrain Limited start from January 1st each year and end on December 31st.
6.2.1 Balance sheet
The Balance Sheet for Hbrain Ltd demonstrates the basic financial situation for the first 3 years.
6.2.2 Sales revenue and costs
Hbrain Limited first year sales revenue is 160,000 UAD or 13,333 UAD per month. However, the sales revenue is projected to increase by 40% and 30 % respectively. The sales would be low at the beginning due to the fact that it is a start up business. As more people in Adelaide know the business, the sales revenue will increase until the third year when it stagnates.
The proposed travel and hospitality company has been subjected to a very rigorous analysis, and it can be concluded that it would be viable under all realistic scenarios. This plan demonstrates that the venture is a solid new business based on real and exciting opportunities. The business would be operated within the legal frame work of Australia’s Tourism Act. The business would obtain all licenses and permits through laid down procedures. From the market analysis, it is clear that the company has a chance to achieve and maintain a competitive edge through cost leadership, product, promotion, distribution and pricing strategies. The company would mploy a cost leadership strategy to attract clients and outdo competitors. After determining the needs of the business, it is recommended that company establish a strong management and operating plan that would enable it to run effectively. Though the short-term and long-term financial projections for this company are somehow conservative, they indicate that the proposed business will be profitable. Therefore, the return on investment will be extremely high. In conclusion, Hbrain Ltd would be a great business opportunity.