MKTM033 | Business Plan For Formation Of New Venture Essay

Discuss about the required to produce a comprehensively researched business plan for the formation of a New Venture, including a clear strategy for growing the business in the medium term.

Answer:

Industry and Market Analysis

Tourism plays a significant role in the development of the Mauritius economy and is also a major contributor to the foreign exchange reserves of the following country. The transformation of the country from a low income economy to a developing middle income one is mainly because of the developmental steps being carried out by the government in the last couple of decades (Jaufeerally and Carlsen 2017). The tourism sector thus holds a great significance in the country and Ramoo travels can utilize the opportunities to turn into one of the largest Tourism companies of the following country.

SWOT Analysis

STRENGTHS

OPPORTUNITIES

? Natural Resources and beauty of the island country

? Economies of Scale

? Customer Loyalty

? Dedicated and Experienced workforce

? Innovation

? Use of Technology

? Emerging markets

WEAKNESSES

THREATS

? Presence of many staffs

? Weak Management

? Non Utilization of many resources

? Weather

? Volatile Currencies

? Unstable Economy

? Government Regulations


  • Strengths-The natural resources and the beauty of the different islands is a great advantage for the country as it acts as a natural source of tourism promotion. Apart from that the customer loyalty program and the dedicated and experienced workforce of the tourism industry of the following country is an additional asset for the organization.
  • Weaknesses-The presence of a large number of people in the tourism industry is a problem for the industry. Apart from that the weak management of the tourism industry has also created a large number of problems for the proper expansion of the industry. There are also many islands that are under the jurisdiction of the country which have not been utilized by the tourism department of the following country.
  • Opportunities-The emerging fields in tourism activities and the use of the latest technologies have proven to be a game changer in the Mauritian Tourism industry. The better the innovation and use of technology, the better will be the utilization of the resources and the growth of tourism in the following country.
  • Threats-There are lots of different threats that can have harmful impacts on the growth of the tourism industry. The threats include the likes of adverse weather conditions, volatile currencies and most importantly the unstable economy of the following country (Jaufeerally and Carlsen 2017).

PEST Analysis

  • Political-Political factors play a key role in the growth of tourism in the country. Though the country faced a large number of problems in the beginning of 2002, the formulation and implementation of a large number of bold measures helped the country to become one of the best overseas destinations for foreign nationals.
  • Economical-The economic reform of the country in the year 2005 helped them to overcome the crisis in the beginning of the 2000’s. The country was successful in handling the global competitive challenges and overcome different fiscal problems (Pudaruth 2018). The tourism industry was provided all the necessary help from the Government and thus it was able to turn into one of the best performing sectors of the country.
  • Social-Social Factors enables the understanding of customer demographics through the distribution of income. In Mauritius there are both Governmental and Non-Governmental organizations that work for the social development of the country.
  • Technological-Use of modern technology has turned the tourism industry of Mauritius from a traditional normal one to the most advanced one. The technological changes include the use of GPRS system, use of modern vehicles and use of smart technologies to display the different attractions of Mauritius tourism (Naidoo Pearce and Sharpley 2017).

Customers and Value Proposition Risks

As mentioned earlier the main customers targeted by the following company will mainly involve the likes of the foreign internationals. However there will also be exceptions in the form of the local people who will form a significant part of the tourism economy of Mauritius. The main aim of the company will be to provide the best value for the customers for their investment. The company will introduce different tour packages that will have different benefits like sightseeing, travelling and accommodation and can also involve local food along with fashion.

Risk management has been going through a global transformation and Ramoo Travels must also design and implement its strategies in such a way that it meets the criterion of the business. The company will use the enterprise risk management and will try to align the risk with the strategy and performance. The main steps that will have to be carried out by the management of the mentioned tourism company are as follows;

  1. Definition of the objectives of the organization- This will involve the process of the business or the programs of the business along with the objectives of the project. It will also involve the performance measures and the risk tolerance measures that will be followed by the management of Ramoo travels.
  2. Identification of the risks or the events- The management of the organization will have to identify and categorize the risks and the events of the organization.
  3. Analysis of the drivers and effects-The following process of enterprise risk management will involve the analysis of the sources of risk and the harm that it can create.
  4. Determination of the significance and livelihood-The following step will identify the impact or the amount of threat that the risks possess to the successful operations of the business.
  5. Method for management of the risks-According to, Kavoura and Stavrianea (2014) the method for the management of risks will involve the organization to avoid risk, accept the risk and reduce the acceptable level of the risk involved in the tourism business of the country.
  6. Designing the mitigation strategies- The organization must identify the ways and processes to mitigate and control the risks that will be involved in the operation of the tourism business in Mauritius.

Strategic Options

The main strategy of the business will be to ensure its sustainability in Mauritius and to create a brand name of its own. The strategic analysis that will be carried out by the management of the company will be based on the implementation of 5 different steps one after the other in a chain and effective process. This includes,

  1. Understanding-The understanding of the market and competitor strategies.
  2. Planning-It will involve the determination of the people who will be involved in the formation of the strategy and the resources need for the strategy formulation and implementation.
  3. Creating-Creating will involve the creation of a strategic plan which will be implemented in the future.
  4. Implementing-Implementation of the strategic Plan.
  5. Measurement-Measurement of the success rate of the strategic plan in the market.

Key Milestones

Some of the key milestones of Ramoo Tourism will include;

  1. Tourism Working Group meeting
  2. Development of New Tourism Policies
  3. Market Analysis
  4. Implementation of a prototype Planning
  5. Measurement of the success Levels of the Initial Planning
  6. Implementation of the Final Planning after test of success

References

Jaufeerally, K. and Carlsen, J., 2017. An Analysis of Tourism Trends in Mauritius. In Tourism and Economic Development(pp. 128-139). Routledge.

Kavoura, A. and Stavrianea, A., 2014. Economic and social aspects from social media's implementation as a strategic innovative marketing tool in the tourism industry. Procedia Economics and Finance, 14, pp.303-312.

Naidoo, P., Pearce, P. and Sharpley, R., 2017. The Contributions of Enclave Tourism to Community Wellbeing in Mauritius: Host Community Perspective. In Balancing Development and Sustainability in Tourism Destinations (pp. 179-188). Springer, Singapore.

Phillips, P. and Moutinho, L., 2014. Critical review of strategic planning research in hospitality and tourism. Annals of Tourism Research, 48, pp.96-120.

Pudaruth, S.K., 2018. Cultural Tourism in Mauritius From Rhetoric to Reality. Global Journal of Human-Social Science Research.

Seebaluck, V., Naidoo, P. and Ramseook Munhurrun, P., 2015. Prospects and challenges of business tourism: A case of mauritius.

Seetanah, B. and Sannassee, R.V., 2015. Marketing promotion financing and tourism development: The case of Mauritius. Journal of Hospitality Marketing & Management, 24(2), pp.202-215.

Tribe, J., 2016. Strategy for tourism (No. Ed. 2). Goodfellow Publisher Limited.

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