Hospitality industry is a big part of service industry that includes event planning, tourism sectors, hotels, transportation, event planning, theme planning etc. Main objective of this industry is to provide such services to the customers that may fulfil all their requirements. Various new businesses are launching under hospitality sector and it is very important for them to formulate a proper business plan so that all the activities can be performed appropriately (Boella and Goss-Turner, 2013). Different types of services are provided by hospitality industry in which they render all of them to the public so that they may acquire higher amount of profits by satisfying their customers.
Success of all the business who provide services depends upon customer satisfaction. In this report business development for FILS Limited which is a service delivery company for food and drinks in South Bank Centre in London have been discussed. Different aspects are included in this assignment that are a development plan for the new business, different methods of development and feasibility of new services that are launched in the market.
Chapter 2: Development Plan
Development plan is a detailed description of the activities that are going to be performed by the work force of a company in order to expand business and attain higher profitability. It is mainly created to guide managers to execute all the development strategies for the purpose of achieving growth. For FILS Limited it is very important to create a development plan so that business can be developed and successfully accomplish all the business goals (Boone and et.al., 2013). It will help to establish the business in the market. A detailed development plan for FILS Limited is as follows:
Identifying target market: While a new business in launching it self in the market it is very important to identify the target market to establish it successfully. First of all marketers of FILS Limited have to determine its target customers to attain development. For this purpose a survey can be conducted by the managers so that detailed information of target market can be gathered. As FILS Limited is a new business hence it should select a narrow target customers so that their feedback can be recorded to formulate strategies.
Research about the issues of target market, buying behaviour and competitors: In second step the marketers are suggested to conduct a market research in which issues of target audience, their buying behaviour and existing rivalry in the same market can be determined (Business Development Plan, 2018). While introducing delivery services in UK FILS Limited can consider all these elements to make decisions as they may help to modify services according to the perception of target market. The competitors who may leave impact upon business of FILS Limited are Booze Runners, Cubana, Arancini Brothers Old St. etc.
Identification of competitive advantage: In this step the organisations have to identify their competitive advantage in which they needs to analyse that what unique products or services they are delivering to the market that make them different from others. FILS Limited is going to deliver services to the food and beverage sectors in London the unique feature which is going to added is fast and low cost services as compare to other companies who are already delivering the same type of services.
Selection of overall business development strategy: In this stage the managers of FILS Limited have to select the best business development strategy for its elf so that business can acquire growth in market. Marketers of the firm are going to use incremental development strategy which is going to provide benefits to the company in long term as it is slow and steady (Brotherton, 2012).
Choosing business development tactics:For the business development it is essential to select effective tactics that may lead through out the way of success. FILS Limited should assure the quality of service, make balance between digital and traditional techniques so that it can capture large market share.
Specification of the way in which implementation and impacts are going to be monitored: At last FILS Limited should analyse the impact of all the business activities so that it can be assured that it is not conducting any illegal activities and also not harming society. All the strategies that are made should be implemented to get positive and favourable results.
When FILS Limited is willing to achieve development than it is essential to follow all the abode mentioned steps so that business can be expanded successfully.
Method of development:
These are the set of tools that are mainly used to attain development for business. There are two major methods of development that are going to be undertaken by FILS Limited. Both of them are as follows:
Aggressive marketing campaign:
It may help the company to aware large number of customers about the delivery services that are going to be rendered by FILS Limited. An aggressive marketing campaign is an effective method that can be used by the organisation in order to provide weight to its marketing activities (Chen and Shen, 2012).
Identification of competitors:
It is very beneficial for an organisation to identify its existing competitors so that effective strategies can be formulated to achieve growth and development for the business. FILS Limited will get information of all the existing rivalry in service sector for the purpose of attaining higher profitability.
Chapter 3: Feasibility Of The New Product Or Service
Feasibility depends upon the decision making process of the managers of the company that enhance viability for the business. For FILS Limited it is very important to be feasible in the market so that a positive market image can be established in the market. It is essential to establish the business successfully so that long term goals can be achieved (Cook, Hsu and Marqua, 2014). The feasibility can be acquired with the help of financial and accounting schedules of the company and the financial projections that are based on market and the services that are going to be rendered by FILS Limited. Financial statements of the company are as follows that may help to be viable in the market:
Profit and loss account:
Cost of Goods Sold
PROFIT BEFORE TAX
Taxes - 20%
- Acc Depreciation
- Net Value
TOTAL EQUITY + LIABILITIES
Cash flow statement:
From the above financial statements it can be analysed that organisation can establish its business successfully in market. As FILS Limited is generating profit whether it is large or small this can help to evaluate total profitability of the company and the managers can also analyse that organisation will be able to attain success and profits in upcoming years or not. Profits that are determined from the profit and loss account of FILS Limited are 3712, total cash inflow for the organisation is 1400 and total equities and liabilities of FILS Limited are 6140. It shows that organisation is feasible and can operate business with higher profits in future.
These are the estimates that are made according to the current data of the company. These are made to reserve funds for the future activities that are going to be performed by the organisation (Grissemann, Pikkemaat and Weger, 2013). If a business is having sufficient funds for the operations than it will help to execute business properly. Financial projections for FILS Limited are as follows:
Research and development
It has been estimated that FILS Limited should reserve 39000 that can be invested in various activities of the organisation in future. To evaluate sustainability of an organisation under hospitality industry it is very important to evaluate financial strength and its market image which is required to successfully set up the business. The above attached accounting and financial schedules can help to evaluate feasibility of a company. There is a possibility that FILS Limited will achieve success in future as it is generating profits according to its profit and loss account.
Chapter 4: The Sustainability Of New Product Or Service
Sustainability can be defined as the process of maintain fluctuations in the balanced pattern that help to utilise all the available resources effectively. It helps to enhance investments for the business and also facilitate to develop technologies in the business by providing transparent information of the business to the investors and other stakeholders. It can be defined with the help of three main factors that are social, environment and economic (Jones, Hillier and Comfort, 2016). For FILS Limited it is essential to achieve long term sustainability so that huge success can be acquired. Higher level of customer satisfaction and meeting their basic needs are the main tools that can help to be more sustainable in the market. FILS Limited is a new company who is going to supply delivery services in London, if the managers are able to manage all the activities effectively and appropriately than it can help to achieve long term sustainability.
Importance of sustainability:
Sustainability is very important to operate business effectively as it help to establish a good market image (Importance of Sustainable Development,2018).
For FILS Limited it is essential to be sustainable in the market so that competitive advantage can be attained.
Organisation can meet the higher level of sustainability with the help of satisfied customers which is result in higher profitability.
While a business entity is willing to formulate such strategies that may help to utilise all the resources of business appropriately than sustainability can help for the same as it guides for the proper exploitation of resources.
Three are three major pilers of sustainability that are required to be focused while formulating business related decisions. All of them are described below:
For the managers of FILS Limited it is vital to consider economic factors when they are making decisions for the betterment of the organisation. They have to look out that their decisions are economically sound or not. It also includes the benefits of employees that are bonus, incentives and others. If FILS Limited remain economically strong then it can offer high benefits to its employees according to their performance so that their work quality can be enhanced (Swarbrooke and Page, 2012). An organisation who is having sustainability but not economically developed than it is not possible for it to be succeed in the market. For all the business entities who are operating business under hospitality industry it is very important to be economically developed as this can help to remain competitive in the market.
Source: Sustainable development, 2018
Organisations are only interested in sustainability if it is having such employees and managers who are well educated. In hospitality industry all the organisations are suggested to be developed socially in which they are aware of all the legislations that can affect business of the companies. As FILS Limited is a new company who is going to develop its business in market than it should assure that it is not harming the society by its business operations. To enhance the strength of social development FILS Limited required to develop its economic strength because it is not possible to be educated or socially aware without having sufficient economic resources. FILS Limited is rendering delivery services to the market and it is a part of hospitality industry hence it is very important for the company to train its employees so that they can contribute in social development by enhancing their work quality (Prud’homme and Raymond, 2013).
It is the last pillar of sustainable development which is required to be focused by the organisations who are operating business under hospitality industry. According to this element the companies should not perform such activities that can harm the environment. For FILS Limited it is vital to be more involved in environment protection activities that may help to be easily adopted by the society. As it is offering delivery services to the customers than it can use such vehicles or equipments for the delivery process that are eco friendly and not affecting environment.
All the above mentioned factors should be considered by FILS Limited so that it can attain higher level of sustainability and develop its business successfully. When the organisations are focusing on all the three pilers than it can help to achieve long term sustainability in the market.
Chapter 5: Factors That Limit Development Of The Product Or Service
There are various different types of factors that can limit the development of the products or services that are offered by newly launched company. FILS Limited should gather information of all such type of factors and than formulate strategies accordingly so that business can be operated effectively. If the company is not able to deal with all these kinds of factors than it may affect the operational capacity of the organisation and also result negatively. In hospitality industry there are various limitation that are affecting the development process of the business that are a part of this sector. All the limitations for the development of products or services in hospitality sector are described below:
Insufficient information of market:
It is the major limitation of the development of services in hospitality industry because it the information is not sufficient than it will misguide the managers of FILS Limited and they will formulate wrong decisions that can affect the development of its services. While making any kind of judgement the mangers should assure that they have sufficient data to attain success in the market.
If the data which is used by the marketers and managers is unreliable than formed strategies will respond negatively and unfavourably for the company and also reduce the possibilities of being developed. As FILS Limited is a part of services industry if the markets use any in-transparent information than it will lead the company toward failure.
Lack of qualified employees and work force:
The employees of the company are required to be educated if they are not well educated than they will not be able to perform the tasks that are provided by the mangers to them. This will affect the development of FILS Limited because uneducated workers will not be able to use technology and other latest facts that can help to be developed (Martínez, Pérez and Rodríguez del Bosque, 2013).
Frequent changes in economy:
If the economy changes frequently or the inflation or deflation rates falls or rises than it will affect the development of the services of hospitality industry. When changes are made in inflation rates than it affect purchasing power of customers if customers are not able to pay the appropriate amount for the services that are rendered by FILS Limited than it will affect on the development process. It is very important for the company to keep information of all such type of variations so that appropriate strategies can be formulated to respond appropriately to all the changes.
It includes the lack of coordination among employees of the company, involvement of political factors etc. As FILS Limited is a new company who is willing to be developed in the market hence it is very important for the mangers to be coordinated with the work force so that they can perform all their duties effectively. If these is higher involvement oh political parties in the operations of the business than it can also affect the development process of the company.
High level of illiteracy:
when there is a high level of illiteracy in the society than it is obvious that they are not aware as well as friendly with technology this will also limit the development of services that are going to be offered by FILS Limited. Higher literacy level can help to accomplish development in less time because educated society can adapt new technologies and concepts that are launched in the market (Law and et.al., 2013).
All the above described limitations are currently affecting all the enterprises who are executing business under hospitality industry. For all the companies like FILS Limited who are going to introduce something new in the market it is vital to be aware of such factors that may affect their development in short or long term. Products are adopted by the individuals very easily but services are not adopted by the customers as they are highly intangible. Individuals are highly concerned with the quality of services and they cannot adopt such services that are introduced first time in the market.
Chapter 6: Conclusion
From the above project report it has been concluded that hospitality industry is mainly concerned with providing services to the market. It is very important for all the companies who are executing business under this industry should be more competitive, feasible and sustainable so that they can attain all their objectives and business goals. It is essential for the organisations to focus on three different pilers of sustainability that can help to be developed effectively. These pilers are social development, environmental protection and economic development. If a company is willing to achieve higher level of feasibility than financial and accounting schedules can help to attain the same.
Boella, M. and Goss-Turner, S., 2013. Human resource management in the hospitality industry: A guide to best practice. Routledge.
Boone, J. and et.al., 2013. Rethinking a glass ceiling in the hospitality industry. Cornell Hospitality Quarterly. 54(3). pp.230-239.
Brotherton, B. ed., 2012. International Hospitality Industry. Routledge.
Chen, T. L. and Shen, C. C., 2012. Today's intern, tomorrow's practitioner?—The influence of internship programmes on students' career development in the Hospitality Industry. Journal of Hospitality, Leisure, Sport & Tourism Education. 11(1). pp.29-40.
Cook, R. A., Hsu, C. H. and Marqua, J. J., 2014. Tourism: the business of hospitality and travel. Boston, MA: Pearson.
Grissemann, U. S., Pikkemaat, B. and Weger, C., 2013. Antecedents of innovation activities in tourism: An empirical investigation of the Alpine hospitality industry. Turizam: međunarodni znanstveno-stručni časopis. 61(1). pp.7-27.
Jones, P., Hillier, D. and Comfort, D., 2016. Sustainability in the hospitality industry: Some personal reflections on corporate challenges and research agendas. International Journal of Contemporary Hospitality Management. 28(1). pp.36-67.
Bharwani, S. and Butt, N., 2012. Challenges for the global hospitality industry: an HR perspective. Worldwide Hospitality and Tourism Themes. 4(2). pp.150-162.
Law, R. and et.al., 2013. Progress and development of information technology in the hospitality industry: Evidence from Cornell Hospitality Quarterly. Cornell Hospitality Quarterly. 54(1). pp.10-24.
Martínez, P., Pérez, A. and Rodríguez del Bosque, I., 2013. Measuring corporate social responsibility in tourism: Development and validation of an efficient measurement scale in the hospitality industry. Journal of Travel & Tourism Marketing. 30(4). pp.365-385.
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