the pearl business hotel marketing plan

The Pearl Business Hotel

1. THE COMPANY AND THE PRODUCT

1.1 MISSION AND OBJECTIVES:

The vision and mission reflect the goals and objectives of the hotel. The vision is designed

considering the short term and long term goals which are achieved through strategic planning. The

vision is to become a leader in the hotel industry by creating affinity with customers, offering

distinguished service, building value and providing conducive business environment to conduct

business in order to establish value and strengthen the position resulting in achieving superior

profits.

SUBMITTED TO:MR. S.P.N. PRASAD

SUBMITTED BYSANDHYA PATTANAIK

BALRAM SEWDASAMUEL FRANCIS

SATISH KUMAR MAURYAM. SUSMITHA

The Pearl Business Hotel 2009

The mission of the hotel is to offer quality service and products to satisfy the customers on a

daily basis by providing hygienic, safe, and clean environment ensuring the maintenance of high

standards.

The hotel will build a good team, working through mutual understanding and respecting each

other by empowering decision making and expecting the customer needs which enables them to

provide excellent service and ambience.

The hotel will focus on increasing the sales volume in order to establish a market position

through publicity and good reputation. The long term objective of the hotel is to sustain in the

business and pass on the venture to the next generation.

1.2 Our values are

Consistency

Accountability

Integrity

Respect stakeholders

The Pearl Business Hotel strives to offer best services to meet the standards of the industry by

maintaining sensible workforce who respect each other and empower the decision making process

through mutual understanding and team work.

Simplicity and consistency will be maintained by the hotel to establish competitive advantage and

uniqueness in the industry.

The goals of the hotel include to be the best in terms of quality services, meeting the expectations

of customers, maintaining profitability and prosperous future of the business by expanding the into

other geographic locations.

1.3 The Product: The Pearl Business Hotel is a 3-star hotel. It is basically design to cater to the need of

corporate world. It will entertain business meetings, conferences, seminars and business travelers. Product

specifications are as follows

3 International Business Project


There are 50 rooms in two categories standard rooms and deluxe rooms.

It has 3 conference rooms which can be expanded to make a spacious hall, which will

accommodate 600 people at a time.

All rooms are equipped with business essentials.

Conference rooms are equipped with latest essentials such as projectors, web technology based

conference and meeting technology etc.

Hotel is centrally air conditioned.

One specialty restaurant

One coffee shop

1.4 Value added service: We will help our customers getting business. Our plan is to maintain a complete

database of our corporate guests including their profession. We will offer our guests to have interaction with

other guests for any business purpose during their simultaneous stay or in future. This service will be offered

after getting nod from both the parties. For this service, no extra charges.ss

1.5 Product Positioning: We are positioning our hotel as a business hotel, which mainly caters to the

people from corporate and business travelers. The positioning will be aimed at branding our hotel as a

preferable destination for business transactions.

2. Marketing Plan:

2.1 Current Market Situation

2.1.1 Market size

Available rooms- 110, 000

Current size of Indian Hotel industry is $17 billion (Rs 87,601 crore)

Industry is bifurcated in organized and unorganized sectors.

In organized, the 5- star category has 58% market share



In India, 61% of 3 star hotels’ rooms are occupied by business travelers and in Delhi-NCR it is 60%.

Also, In Delhi-NCR, average stay of a business guest is 3.8 days.

There is a shortage of 150,000 rooms in India

It is estimated that in 2001, $12 billion is going to be invested in this sector.

2.1.2 Underlying trends: Current market situation is under depression, because of the global economic

downturn. Most of the major companies are concentrating on cost cutting. For that, companies are cutting

their business travel so that cost can be reduced and this is being practiced globally. This trend has severely

affected the hotel industry, especially business hotels. This trend is certainly for short time.

However, the average room rates are being reduced drastically. Occupancy rates are tripping badly. Hotels

have started price war for making working capital at least, which is the blood of any organization. The sum

and substance is that the current situation is passing through a chaotic environment. However, there is a

good sign coming from the industry research that the hotel industry is expected to grow by 8% in the next

financial year that is 2010 and in next two to three years, demand is expected to double.

Since we are coming with the hotel in April 2009, at that time it is expected that world economies will be

recovering with a good pace. But three will be somewhat effect at that also. So the Pearl business hotel will

have to work hard in terms of positioning and marketing itself.

2.1.3 Current Rivals: There are myriad no of business hotels in Delhi. In Noida three are only 8 hotels,

in which one is 5star, one is 4 star, three are 3 star and two are 2 star and remaining is more of guest house.

We are not competing against five star and luxury hotels. We are competing in the 3 and 4 star categories.

Although direct rivalry does not exists. However, we are considering two players in Noida as our

competitors. These are

Mosaic: A 4 star hotel situated in Noida

1. 48 rooms

2. Conference hall accommodation 100 people

Address:



Mosaic Hotels

C – 1, Sector – 18, Noida – 201301

Tel: +91 120 4025000

Direct reservation: +91 120 4025001

Direct Restaurant : +91 120 4025002

Fax: +91 120 4025111

Sales Head: +91 120 4025051, email: sales@mosaichotels .com

Raghav Residency:

1. 35 rooms

2. A conference hall

Address: B - 5 Sector 52, Noida, Uttar Pradesh, 201301

2.1.4 Competitive analysis table

Competitors Raghav

Residency

Mosaic The

Pearl

Product and/or service

Quality

Selection

Price

5

5

6

6

5

6

9

9

7

Location/Physical appearance

Traffic

Appearance

Visibility

Convenience factors

4

4

6

4

5

6

7

7

8

9

8

9

Total

34 42 58



It is clear from the above analysis that we are at better position as opposed to our competitors

2.1.5 Potential Rivals and substitute:

Upcoming new hotels

Virtual conference halls

Web technology meeting/ conferencing

Video phone technology

With the development in above mentioned technologies, company will reduce their business travel. So our

hotel will to be armed with latest distance meeting technology.

2.2 PESTEL (Political, Economic, social, Technological, Environmental and Legal) analysis

Political: Now India has got a stable government, which is a very good sign for corporate world.

Indian government has been very proactive and working hard to fuel the economy. Indian

government is try very hard and increasing professional as well as financial back up for bidding and

getting host of international conference and conventions to be held in India in association with

members of ICBP. Government is also providing stimulus package for the betterment of the service

industry including hotel industry.

Economic: Because of economic downturn and massive job cut in the industry, the business

outcome has abated very badly. Because of this crisis, corporate activities have reduced by great

extent, which imposed adverse impact on service and hotel industry. Since economy is expected to

recover by end of the year so the good news for hotel industry. Depreciation of INR against US

dollar is good for hotel industry.

Social: Lifestyle and living standard is improving and amount of disposable income. Because of the

increasing purchasing power industries like FMCG, services, manufacturing sector are getting good

business. Companies are focusing more on rural area for getting more and more business.



Technological: There has been rapid growth in technology .With the robust improvement in

communication technology, the operations of the functioning have become very fast. Also there has

been better use of technology in service sector like hotel. From check-in, customer service to check-

out. The international reservation system helps hotels interlink themselves across the globe.

Environmental: Concern over global warming, increasing terrorist attacks have hit hotel industry

badly. There has been pressure from the government to better operations so that there can be least

harm to nature, which actually causing increase in expense to control the carbon emission, garbage

etc.

Legal: Hotel industry has to pass through almost 18 types of rules and regulations. From the

electricity, pollution control board, water resources authority to ATC (air traffic control). So getting

approval from these bodies consumes both time and money.

2.3 Competitive advantage

2.3.1 Initial competitive advantage:

1. Resource based advantage: Our initial resource based competitive advantage will be the strategic

location of the hotel, conference and banquet hall, because at present none of the hotels in Noida has

such a huge accommodation capacity.

2. Value Proposition based advantage: Special value added service offered to the customers that help

customer get business. With this of service, we are going to get first mover advantage that will help

us get long term competitive advantage.

These initial advantages will help us attract key accounts and lay foundation for long term

competitive advantage.

2.3.2 Long term competitive advantage:

1. Reputation based: The long term competitive advantages will be the customer relationship and

loyalty, corporate image, our integrity achieved by our value chain network.



2. Value Proposition based: The big corporate network built on years of relationship. These

competitive advantages will help us establish competitive positioning in the industry for future

growth.

2.4 Resource based view

Physical Resource Strategic location on Taj express way and near upcoming airport and

F1 race court, close to gateway of Delhi from Noida. Centrally air-

conditioned building, spacious conference room with capacity of 600

people at a time, a corporate ambience.

Organizational Resources Decentralized structure, lest possible power distance

employees at lower are given decision making power for better service

recovery

Intellectual and human

resources

A team of skilled people for the seamless operation of hotel, working

with objective of wealth maximization of the stakeholders

Technical resources Service recovery and improvement R & D team.

2.5 VRHN:

Valuable We value for money not only in terms of our quality service but

helping our customers get business through our corporate network

built on concrete relationship.



Hard to copy Our value chain network. Because any physical and independent

resource can be copied but a network of organization cannot be

copied thoroughly.

2.6 Alternative Business models: Based on our resources and capabilities, we have two business model

alternatives

Hybrid model

Focused differentiation

2.6.1. Business Model Chosen:

We are adopting focused strategy in our category. We are focusing mainly on cliental based customer

segment and independent business travelers.

2.6.2. Marketing Strategy:

The objective of our marketing strategy will be to create awareness about our product (i.e. hotel). We will

strive to focus directly on our customer to communicate the issues of quality and value.

The marketing strategy will enable us creating our brand awareness and brand image, its values and to build

concrete relationships with our guests and to figure out their needs in an effective manner. Continuous

differentiation and growth will be goals for us.

2.7 Value proposition:

The Pearl hotel will provide a good, personalized service to the customers. We will have business essentials

in each room such as Wi-Fi connection, a nice business desk, and will provide latest possible technology

required for business meetings and catering for late meetings.

Since our product is a service. Services have four in-built qualities, which are inseparability, variability,

perishability and heterogeneity and that is why, unless it is consumed or experienced, it is very hard to

evaluate it. Our focus is our commitment of providing a peaceful and corporate cultured ambience. Our



focus will be on continuous improvement in operational effectiveness with incremental innovation in our

service. Our focus will be not only our client’s satisfaction but improvement in their performance after using

our service. So we need to address the following critical issues

2.8 Critical issues:

To maintain differentiation from the competitors and offer value added services to our customers.

Gaining customer loyalty and repeat business

Utmost satisfying our customer needs

2.9 Marketing Objectives:

Conveying our strategic objectives to the customers.

Offering a commendable experience to our customers

Exceeding our breakeven target within stipulated time and allocated budget.

Penetrating new markets and locating new markets for our customers.

2.10 Target market: Our main targets include

Small and midsized companies.

Individual business travelers.

Business schools.

2.11 Messaging: It will be very important for Pearl hotel to keep up the level of its facilities and service

quality that the hotel is going to position itself. And so the messaging strategy will be reflecting the brand

positioning and value added services associated with it. For that, we will have to incur a bit more spending

on our marketing materials such as printing brochures with good quality materials with high quality pictures

to communicate the professional ambience of our hotel.

2.12 Marketing Mix

2.12.1. Place:



Location: The hotel is located in peaceful premises Noida on the Taj express way, a 40 minute

drive from Delhi international airport. This is a strategic location for us because it is situated near

the gateway to Delhi from Noida and also in future a new airport and Formula one race track are

imminent close to the hotel.

Distribution channel: The product will be sold by personal selling, telephonic selling, and

online selling. The delivery channel incorporates travel agents and international reservation

system

2.12.2 Price: Our pricing strategy is in coordination with differentiation objective, to offer value added

service for a sound price and is not meant to discount or belittle our product.

Room rates for per night, per room are as follows

Executive room: INR 6500.0 + 5 % Luxury Tax

Standard room: INR 8000.0 + 5% Luxury Tax

2.12.3 Promotion: Since we are in a start-up business, we need to adopt aggressive promotional strategy.

3. Promotion: Our promotional objective is to create awareness, recognition and acceptance of our brand

and product. We will be using the following promotional tools

Advertising

Direct marketing

Sales Promotion

Personal selling

3.1 Advertising: We will be advertising by the following means

Print Media: Business magazines and Times of India

We will be advertising in the magazine twice in a month for the first two quarter and from the next

quarter it will be reduced to once in two month.

We will advertise in newspaper once in a week for the first quarter and from the second quarter, it

will be reduced to twice in a month for the first financial year.



However, for the first week of the launch of hotel, newspaper ad will be daily. From second

financial year, we will not advertise in newspaper.

Outdoor advertising: We are placing hoarding near Delhi-Noida toll bridge. It will be there forever

(in most likely scenario).

3.2 Direct Marketing: Direct marketing will enable us reach our potential customers directly and help us

build relationship. For that, we will maintain a database our potential customers. This database will contain

information regarding address, profession and date of birth and wedding anniversary.

We will be using the following tools

Direct mails and email: We will be sending mails to companies and customers regarding our hotel,

new offerings etc. We will send wishing cards o1n our guests’ birthday or wedding anniversary; this

will help us create long term relationship.

3.3 Sales promotion: The objective of sales promotion will be to increase occupancy rate. It will be for

short period. In sales promotion, we will have following items

Discount offers during off season

Discount on bulk bookings

Bundle offer

However, items may change, depending upon current situation.

3.4 Personal Selling: We will be having trained sales executives for personal selling that will help create

long-term relationship with our customers. These executives will be going to corporate offices on regular

basis. Initially we are going to hire 6 sales executives for Delhi and Noida.

3.5 Web Plan: We will be having our own website, which will have all relevant information about hotel.

The web page will contain

Home page with navigation

Hotel’s online brochure

Online reservation facilities



Downloadable and printable brochure of hotel

Availability updates

Promotional updates

Contact information

Also, we will have to make sure that major search sites contain our URL, so that customers can click on that

and reach us.

3.6 Total marketing budget:

First year : Rs. 10535000

Second year: Rs 5391305

Third year: Rs. 5923900

Fourth year: Rs. 6411532

Fifth Year: Rs. 3441034

Total: Rs. 3170277.0

There is a decrease in budget allocated to the marketing expenses because we are reducing

advertisement budget and increasing sales force. The reason behind is that we are focusing more on

relationship marketing through personal contact with our key accounts. The emphasis is more on

building long term relationship.

3.7 Implementation Schedule: Our marketing campaign will start from March, 2010, keeping the launch of

the hotel in mind in April. This effort will be tracked through the year to measure the effectiveness the

campaign so that any corrective action can be taken depending upon the current situation.

3.8 Sales Plan: Our sale plan depends on sales strategy, the sales process and prospecting.

3.9 Sales Strategy: Our sales strategy will be aimed at getting repeat business by our large accounts. For

that, we will have to build up long-term relationship with companies and with new accounts as well. So, it

will be imperative to be price competitive and consistent on quality service, good ambience and facilities. At

Pearl Business Hotel, we will be striving to attract key accounts.



3.10 Sales Process: We will be sending mails to corporate companies containing information about

corporate packets. These packets will have promotional plan especially for corporate. This will be done once

in every quarter. The major part of this process depends on relationship with customers. We have to make

sure that our guests will always have very positive impression about our hotel. We have to know them

personally regarding their likes and dislikes. We will also have to create good relationship with department

of the company which arranges these business travels.

3.11 Prospecting plan: Whenever a guest walks-in in our hotel for stay, we have to identify whether it is a

leisure or business. And, if he is for business purpose, we have to get the guest’s database so that we can

contact directly regarding our package to the organization and make them aware about our corporate pricing

and facilities

4. Risk reduction strategies:




Risks Degree of

seriousness

Proactive actions Reactive actions

Security risk 1 High security surveillance

without disturbing guests

more, check-in, check-out

database, technology help,

mock drill of security check

up , contingency security

proof blueprint of hotel

premise

Instant security check up,

instant first aid, instant

contact to city control room,

Service failure

risk

1 Hire skilled people, training

on soft skills and guest

management, faster service

recovery policy, reduced

power distance, distribution of

decision making authority to

staffs

Instant personal official

apology from GM, fast

recovery, make guests sure of

no such problem in future

Supply of

skill

2 Tie-up with hotel

management institutes,

maintain sufficient level of

skilled force, control of

attrition through internal

marketing by HR department

HR department will do new

recruitment,

Insufficient

usage of

materials

3 Install efficient inventory

technology, skilled and

experienced kitchen crew,

good power management,

regular inventory assessment

Respective departments will

be accountable

Pollution risk 3 Getting Ecotel certification,

proper waste management

An official public apology

from hotel, taking corrective

action for avoidance


5. Exit and Harvest strategies: We are proposing the following exit and harvest strategies

1. Private sale of personal equity: Individual owner can sell all or partial portion of the

shareholdings in the hotel and thus convert into cash. The Ownership agreement should stipulate

who, if anyone is explicitly prevented from buying the shares.

2. Sale of assets: Cash may be obtained from business by the sale of assets and distribution will go

among owners.

Operational Plan:

6. Structure and Ownership:

The administrative capability and the management are given prominence in order to add to the

competitive advantage of the hotel. The selection of right people for key positions helps in the

improved performance by the structural component of the organization. It further develops nurtures

the skills and competencies which are formed on the basis of vision, mission, goals and objectives

of the organization. The general manager of the hotel is the owner of the hotel who has an

inclination towards the hospitality industry which is an added advantage for the hotel.

7. Key Personnel:

Staff and employees and their titles:

The organizational structure of the hotel comprises of the following departments:

1. Front Office Department

2. Housekeeping Department

3. Food and beverage Department

4. Food Production Department

5. Human resources Department

6. Sales and Marketing Department

7. Purchase Department

8. Accounts Department

9. Maintenance Department

10. Security Department



There are 10 departments and the number of staff is 75. In this project work, there are five members who are

responsible for their work. The GM is Mr. Samuel Francis, HR Manager is M. Susmitha, Sales and Marketing

Manager is Mr. Satish Kumar Maurya, and Purchase Manager is Sandhya Pattanaik.

The outline of the key tasks, job descriptions, and responsibilities of the various departments are as follows:

FRONT OFFICE DEPARTMENT:1. Front Office Manager: Being at the forefront of the hotel the key role of a front office manager

is to be a hub of communication. Therefore, he/she needs to be self motivated, structured and

disciplined to accomplish the task.

Educational Qualifications: UG – Any Graduate.

Experience: 0-2 Years

2. Guest Relation Executive: Guest relation executive has a responsibility in providing quality guest

services. The prominent duties of the guest relation executive lies in registering repeaters, VIP, and

forwarding invitations to the guests, reporting the requests, and solving guest complaints or problems

if any. He/she must be proficient in additional languages which would be a definite asset in

communicating efficiently with the guests.

Educational Qualifications: Any Graduate

Experience: 1 Year

3. Receptionist: The key responsibilities of a receptionist are to help the guests with their requests by

being friendly and helpful. Hershel needs to have good computer skills in organizing and passing on

messages and communicate efficiently.


Experience: 0-1 Year

4. Bell Boys: Bell boys help in delivering and collecting the baggage of the arriving and departing

guests, deliver the in-house items to the various departments in hotel, and deliver the mail, faxes,

messages, packages, flowers etc. They need to cultivate good working relationship with the various

departments.

Educational Qualifications: 12th STD


HOUSE KEEPING DEPARTMENT:

1. Executive Housekeeper: Executive housekeeper manages the housekeeping department by monitoring

the maintenance and the quality of the service that is offered in the hotel. The key responsibility lies

in ensuring that the hygiene and safety is maintained.

Educational Qualifications: BHM




2. Floor Supervisor: The primary responsibility of the floor supervisor is to manage all the operations

in the assigned department of the floor. Must ensure the cleanliness of the hallways, rooms, and

lobbies by maintaining the standards of hotel.



3. Room Attendant: Room attendant need to clean the hotel rooms and provide high quality service to

the guests and ensure the complete satisfaction in responsiveness towards anticipating the guest needs.



4. Public Area Attendant: Cleans and maintains all hotel public areas by maintaining cleanliness and

maintaining quality standards. Cleans bathrooms, dusts furniture and pictures, vacuums, sweeps, mops

and maintains cleanliness.



FOOD AND BEVERAGE DEPARTMENT:

1. Food and beverage Manager: Food and beverage manager’s responsibility is to maintain effective

functioning of the restaurant, lounge, room service, and catering. He/she must ensure in managing the

aspects of food and labor control and maintain positive environment among the staff.



2. Restaurant Supervisor: The restaurant supervisor need to control and manage the operations in the

restaurant by staff training, providing high quality customer service and stock control.



3. Room Service Supervisor: The responsibility of the room service supervisor is to assist the manager

in the activities of room service by room service telephone and keeping a track of guest orders and

the quality of the service offered. Ensures in the maintenance of by the compliance of norms of the

hotel.



4. Captain: The role of the captain is to supervise the food and beverage service, and staff to maintain

consistency throughout the operation. Answers telephone and takes or receives the room service orders.





5. Steward: Steward operates the dishwasher and ensure the proper cleaning of the cooking utensils in

the kitchen. Keeps the stock of all the supplies used in kitchen and carries out cleaning duties

including the mopping of kitchen floors and trash removal.


Experience: 0-1 Year

6. Sommeliers: The key responsibility of the sommelier is to promote the beverage items in accordance

with the guest’s meal, receive orders and serve customers to the standards required and promote the

menu content and changes.



FOOD PRODUCTION DEPARTMENT:1. Executive Chef: The role of the executive chef is to coordinate activities in training chef, cooks and

organizing other kitchen workers in preparing and cooking food. Plan and participate in designing

menus and utilizing the food surpluses and maintaining the kitchen supplies.



HUMAN RESOURCES DEPARTMENT:

1. Human Resource Manager (Miss M. Susmitha ): Human resource manager must ensure to maintain

cost effective recruitment through appropriate procedures. Design and conduct induction programs for

the new recruits and manage salary processing and ensure that the hotel’s grievances and disciplinary

procedures are observed.

Educational Qualifications: MBA/PGDM


SALES AND MARKETING DEPARTMENT:1. Sales and Marketing Manager (Mr. Satish Kumar Maurya): Sales and marketing manager must

develop and strengthen new and existing corporate business opportunities in order to increase market

share. Sales and marketing manager need to be responsible for sales team members and maintain the

existing clients to achieve optimum market share.





PURCHASE DEPARTMENT:

1. Purchase Manager (Miss Sandhya Pattanaik): Purchase manager ensures in maintaining the supplies

and purchases essential for the operations. The prominent responsibility is to maintain and designing

the purchasing plans, policies and procedures.



ACCOUNTS DEPARTMENT: 1. Chief Accountant (Mr. Balram Sewda): The chief accountant of hotel need to be proficient in

taxation and salary processing. He/she must be well-versed with Tally and carry out the daily

accounting work and should have good knowledge in finalization and bank reconciliation statement.



MAINTENANCE DEPARTMENT:

1. Chief Engineer: Chief engineer must maintain and supervise the maintenance operation, refrigeration,

heating, plumbing, heating, cooling plant operations, energy controls and efficiency of the hotel. Must

ensure the superior maintenance and operation and the completion of work projects on time.

Educational Qualifications: B.Tech/B.E


SECURITY DEPARTMENT:1. Security Officer: The main responsibility of the security officer is to offer safe environment

to employees and customers of the hotel. Monitor the security arrangements



7. The Top Management Team:General Manager (Mr. Samuel Francis)

The top management team comprises of the general manager who is responsible for final approval

of any decisions taken by the various departments of the hotel. The heads of the various



departments report to the general manager if they are to initiate any task in the operations of the

hotel.

Building an Effective Organization:

The successful execution of strategy is directly dependent on the competency and the skills of the

employees. Therefore, it is of great importance to recruit the right candidates into the organization.

The organizational structure of the hotel is designed in such a way as to communicate easily and

meet the objectives. It enables the organization to match the strategy with structure. The detailed and

clear description of the job will enable in recruiting the right candidate. Flexibility is considered as

another important factor that the hotel possesses. Employee empowerment programs are conducted

in the hotel to motivate the employees for efficient decision making.

Recruitment Process:

The hotel resorts to adopt two types of recruitment processes in order to cater to the needs of the

organization.

Internal Recruitment:

This type of recruitment takes place within the organization. We allow the employees of the

organization to refer other candidate who is suitable and fit all the essential criteria mentioned in

the job description. Internal job postings would be advertised during the staff meetings in order to

facilitate flexibility in the communication process. Internal recruitment is used depending on the type of

job.

External Recruitment:

Advertisement of the vacancy is widely used source in the external recruitment process where the

job vacancy is notified in the newspaper or a online job portal to hire the right candidate.

Educational Institutes are also chosen as the potential external recruitment sources wherein the

candidates are selected on campuses of the hotel management institutes in order to give an

opportunity for fresh talent who possesses adequate skills in the concerned area of work.

Recruitment Agencies are chosen as the potential recruitment methods to hire the right candidate as

it gives an opportunity of selecting from a large pool of applicants.



Human Resource Management:

The efficient human resource management is of primary concern for any organization in order to

facilitate the healthy working environment and effective internal operations. In hotel industry it is

mandatory that the services are offered with utmost vigilance as it lot more conspicuous. Unlike

any other businesses the workforce in the hotel are supposed to be swift in anticipating the

customer needs and offer best services.

There is a constant fluctuation in the workflow as the business changes on a daily basis and the

primary objective of the employees is to make sure that all the needs are met.

In hotel industry the product and services delivered are directly dependent on the productivity and

efficiency of the workforce. Therefore, it is essential to recruit people with right skills and attitude.

The standards on the basis of which the hotel is judged are mostly intangible or subjective in

nature which include the hospitality, services, and cleanliness factors. We ensure the maintenance

and building of amiable relationship with the guests and train the employees accordingly to build

credibility.

Organizational commitment is considered as an essential virtue in the work environment as it

motivates the employees to be more productive. It builds loyalty, reliability and cooperativeness

among the employees thus allowing them to align themselves with the organizational objectives and

meeting the expectations. Organizational commitment helps in building a stable workforce that

contributes to the increased productivity in the organization.

Laws and Organizational Policies: The organization abides by certain laws which are strictly

followed in the premises of the hotel. The main aim of these laws is to promote the sense of the

equality among all the workforce thus creating a conducive working environment.

Act of data protection 1998 - Knowledge

Race, color, religion, nationality - Title VII civil rights-1964,

Act of race relations-1976,

Act of Race Relations-2000



Act of sex discrimination 1975 - Gender

Human rights act 1998 - For equality

Act of work time regulations 1998 – Working hours

Act of equal employment 1984 - Training, equal employment.

Term and Conditions:The hotel abides by certain rules and regulations which encompasses various

factors that are result in efficient functioning and operations. All the guests are supposed to abide

by the rules and regulations listed below. The norms of the hotel are designed to create ease and

flexibility in the operations by following certain standards. These include:

Tariff

Proof of Identity

Settlement of bills

Departure

Luggage and belongings

Management’s Rights

Damage to Property

Relation between hotel and visitors

Hazardous goods

Government rules and regulations

Amendment of rules

FINANCIAL PLAN

The total funding required for the proposed business plan is INR 23 Crore. The structure of financing the

business is as follows:

Venture Capitalist’s fund INR 15 CroreOwn Funding INR 8 CroreTotal INR 23 Crore



The percentage of

stake offered to

Venture Capitalist

in equity has been calculated by using Net Present Value (NPA) analysis. The present value of INR 23 Crore

has derived on the basis cash flows that this project expect to generate in 5 years. The discounting factor of

40% has been used under the most likely scenario. While when we consider discounting factor to be 50%

the net present value of Pearl drops to INR 94 crore. Pearl would return 15 Crore exclusive of dividend (3

times of the investment) to Venture Capitalist in three unequal installments within 4 years of business in

order to buy back shares.

The financial plan is based on the following assumptions:

We have assumed that variations in sales are based on the seasons. During rainy season we have

assumed that sales would increase.

We have calculated COGS (electricity, water charges etc.). The secondary data has been collected

through government website.

The sales of additional services of are based on the market research

Valuation of fixed assets are done on the basis of quotation represented by dealers

The depreciation is charged in under Companies act 1957 and we assume that rules and regulation to

remain unchanged for next five years.

Corporate Tax charge at the rate of 33% (inclusive of all charges) under Income Tax Act and and service

tax charge at the rate of 12.5% to remain constant for next five years.

We would be investing excessive cash in 3months government securities as it is highly liquid assets; we

have assumed that we will be able to sell it without material loss to meet our obligations.


Stakeholders Percentage Stake Number of share issuedBalram Sewda 13% 60 LakhSandhya Pattnaik 8% 3 CroreShatish Maurya 2.6%% 60 LakhSamuel Francis 13% 3 CroreSushmitha M. 3.4% 80 LakhVC 65% 15 CroreTotal 100% 5,00,000


By adding 9.6% (interest rate of bank deposits) and risk factor of 10% we have arrived at discounting

factor of 20%.

Ask and Offer

Ask: Pearl is looking forward an investment of INR 15 Crore from an optimistic investor

Offer: Pearl is offering 65% stake in equity.

3 times the return of the investment within 4 years of operation of business.

Conclusion:

The total initial setup cost is INR 23 Crore. Pearl’s is now looking for an investment of INR 15 Crore. This

investment will be used to set up the business which will utilize the growth potential of this untapped

market. Pearl offers the investor a 65% percent stake.

Pearl represents an exciting and very rewarding investing opportunity with high growth and returns. The

Management team of Pearl looks forward to having discussions with you at the earliest opportunity.


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