Professional Documents
Culture Documents
LLC Elit Ship" Yacht Rental Service: Business Plan Course Work
LLC Elit Ship" Yacht Rental Service: Business Plan Course Work
CONTENT
1. 2. 3. 4. 5. 6. 7. Introduction..............................................................................................................................3 What is a business plan............................................................................................................ 4 Project descriptio and main idea.............................................................................................. 5 Current situation.......................................................................................................................7 Market and marketing complex..............................................................................................12 Human resources and administrative......................................................................................15 Services and possible alternatives..........................................................................................18 Recommendations and proposed solutions........................................................................... 21
8. Literature............................................................................................................................... 26
Introduction
The project idea - yacht rental business in Trakai. Estimated start-up for the company is 2011, April. Company Elite Ship seek a range of financial, customer and business processes and staff-oriented goals, but the main goal - quality services, ensuring the proper companys profit. The investment environment is not very favorable: the economic situation remains difficult, there are legal loopholes, and speacially this is more seasonal business. This causes problems that affect the core business problem - a small number of customers and business income. Trakai, leisure and entertainment services offers 19% of working companies in Trakai, of which 3% offers yacht rental services. Estimating the prices of competitors by focusing more on each other, but their main strength is the Galve Lake. Competitors are main support measures brochures and the Internet. About 27% of visitors to Trakai likes to do or just to try water entertainment. Deviding market in the equal parts of water entertainment business to all the organizing entertainment companies gets approximately 5,500 clients. LLC ELIT Ship will seek to stand self-positioning competitors as well as quality of service. Prices will be set according to the influence of seasonality. Place of business - Galve Lake. Support tools - brochures, the Internet, souvenirs. Joint venture "Elite Ship" planned direct marketing expenses for the year is Lt 11,550. The company employs 7 employees: the Director, Accountant (half time), 5 yacht captains. Only people who has high qualification can work in this company. In addition, there will be employed workers for to promote materials for the company. The total amount of wages paid per month for all employees will be 11 900 LT. For a yachts and communications equipment will be given 206,000Lt, using a bank loan or lease. The investment will be made only in 2011 There are considered yacht rental business alternatives: yacht sailing courses, water bike rentals, pleasure boat rentals. The evaluation of alternatives pros and cons there was made a decision not to do that. Yacht rental service performance indicators: IRR = 12%, NPV = Lt 17,508.40, MIRR = 9%, investment payback period - 5.66 years.
3
Implementation of the project is feasible, but the long-term return on investment and low profitability of the project are refused
The business idea is to create a company whose activities include the yacht rental service in Trakai. The main idea is to offer our customers exceptional service, comfort and unique sensations. Customers will be offered tours in four different yachts, according to their needs (active or passive tourism). During the trip, according to customers' requests, yacht captain (a total of five) will present the Trakai region - will present the landscape, history and so on. Customers, according to the wishes will be able to choose the language in which they will communicate with the captain of the yacht during the trip ( in Lithuanian, Russian, English, German). This project is inspired by the desire to create a city of Trakai more interesting, profitable business, a number of working places and to meet consumer needs, not just during the summer season, but spring and autumn months (April, May, June, July, August, September, October). This project provides for approximately 210 000. Source of finances bank loan.
The global economic crisis is shrinking and you can barely see a slight growth of economics (Lithuania are expected 3% growth in 2011). But still there are high unemployment in Lithuania, the relatively high interest rates, a small majority (three quarters) of personal income, slow, middleclass formation, lack of state support for small and medium-sized business is not conducive to the development of internal tourism growth, while at the same yacht and rental business in Trakai. However, inTrakai most of the guests a high proportion of foreign tourists. So it should be taken to foreign countries' economic environment. According to the European Economic Review suggests that the majority of European countries have seen much higher growth than in Lithuania. As well as lower unemployment rate, higher incomes for local residents. Legal - the political environment.
infrastructure, simplifying tourist visa and other entry into Lithuania procedures governing public institutions, non-governmental organizations, business interaction rule base. These legal gaps complicates business investment in tourism infrastructure and other services
The physical environment. Comparatively small District of the environment (air, water, soil) pollution. Strongest pollution source is the Lithuanian Power Plant (currently Elektrenai municipality) in the area of pollution due to the small distance (approximately 25 km) fall and Trakai. The main local sources of air pollution of the Trakai district municipality has a boiler, grass and trash burning, periodically repeated peat fires, automobile transport. State Department of Tourism data Trakai district in 2008 in the District water released 8.8 million. m3 of sewage. Of these, 23.5% of under-treated. This is after city of Vilnius the largest contaminated of wastewater of Vilnius County. Lithuania has a transitional climate - cold winters and warm summers. It is influenced by the seasonality of the business
3. CURRENT SITUATION
3.1. DETAILS OF ECONOMIC OPERATOR AND KEY DATA
Company name: LLC "Elite Ship Company code: 312134543 VAT number: LT100004547210 Address: Kestucio 4, LT-21104 Trakai Telephone: (8528) 53941 E-mail. E-mail: info@eliteship.lt Bank: AB Swedbank Current account: LT267300010112723094 LLC Elit Ship Yacht rental office in Trakai, scheduled to open in 2011, in April. It is then that starts sailing yachts in Trakai season and lasts until November. The company will seek to meet the various expectations of our customers, and Trakai residents and visitors will be offered:
Sightseeing, entertainment yacht trip; Regatta (boat race); Romantic sailing yacht; Customer's request, to an individual program;
Elit Ship legal status - a limited liability company. The company is guided in its activities of the Civil Code of Lithuania, the Lithuanian Company Law and other laws provided for in legislation.
MISSION:
Constantly bring joy to each of our client, surprise gifts and entertain them in high-quality, full of excitement and unforgettable pleasure.
VISION:
Become recognized as the most loved and valued and constantly evolving leisure activities of firms. THE COMPANYS GOAL:
Become a reliable and long-term partner, the maximum satisfaction of customer needs, giving people who work in the company's livelihood.
Given the company's mission and vision and the main objective can be formulate strategic goals. These objectives are divided into four groups which is called perspectives (financial, customer, business processes, personnel). Prospects of joining the common strategy of the company.
FINANCE:
To occupy 20% market share. Net profit margin - more than 15%. Debt indicator value is less than 0.6. Dividends payable - about 50% of net profit. However, the annual dividend rate will depend on the company's financial situation and needs substantial investment.
Be flexible and be able to take into account individual situations. Shedding of service quality, the highest level in a show of customer requirements are met.
BUSINESS PROCESSES:
To achieve synergy. Develop the organization's availability with (flexible working hours, exclusive of individual orders, etc.). Minimize downtime. Accountable work environment.
STAFF:
Create a supportive work atmosphere and a unique organizational culture. To ensure equal opportunities for the company staff (gender, race, religion and so on. Terms). Maintain constant staffing company. High-qualified staff.
City
2007
2008
2009 9
For water activities there are four suitable lakes next to the Trakai and one the upper trailing Verkne route (Vilkoksnis lake, Verkn lake, Sienio lake, Navos lake and below).
10
Problem Tree
Difficult situation of competition Yacht rental service and business development stop Contradictions between different laws Low purchasing power of customers
11
Leisure and Recreation Service Providers as a Cost-Effective Measures Identified on-line (five-point system 4.75 points), email (4.6 points) and Specialized Exhibitions (4.3 points).Relatively ineffective as a marketing tool for radio advertising, advertising in the Press reports. After the yacht rental websites review in Trakai, has been noted that the information is presented in very general terms, is reporting on major activities and contacts. Lack of visual information, a house the photos or short films, corporate services delivery.
12
Water activities in Trakai offers four companies and four individuals. 5 of them offer similar services, yacht rental company as well as the Elite ship . According to the Trakai Information Center water activities are very popular among the guests. Even 27% of which came to Trakai test various proposed water activities. After the calculations, it can be noted that these companies offer entertainment during the year, attracts about 44,496 customers. For subsequent calculations (where all the players get in on the market) can be assumed that each market participant per year is about 5,500 customers.
The company LLC "Elite Ship's target market - who are interested in yacht rental services in the town of Trakai residents and guests. The target market can be segmented.Company "Elite Ship distinguishes these yachts rental market segmentation techniques in Trakai:
The geographical (local, regional, national, international); demographics (age, marital status, income, occupation (profession)); psychographic (values and way of implementation, social class); Conduct (business, tourists, families / friends and visitors day / weekend tourists,holidaymakers and traditional),
The important thing is the positioning of competitors. Company Name (LLC EliteShip) will be aimed at a potential consumer's mind to create a unique serviceassociation. English language use in the business name and poteciali to local customersand foreign tourists in the mind to form a company offering yacht rental services elit image.With a loud name of the company we are trying to lead the customer in mind to LLC Elite Ship "brand to the top shelf.". The company's products yacht rental service is intangible in the physical sense, immeasurable individual units, but also to all other tangible and has its own essence
13
andquality. According to customers' needs will be offered yacht rental services to meet differentconsumer wants. Much attention will be paid to the quality of services - high demands boats(comfortable, spacious, good equipment and so on.) Service staff (sailing skills, foreignlanguage, the history of Lithuania knowledge, communication skills, presentable appearance). Yacht rental service is characterized by the consumption of its properties will be expressed in terms of functional properties. Unlike other areas of services trade, renting a yacht in the positive emotions create a client will be provided at one particular service, but several interrelated services, by using components such as natural resources, culture, architecture andhistorical sights, the measures necessary for the operation of the service, etc.. Service price will be determined by focusing on demand. Yacht rental business is highlyseasonal, so tourists at peak lactation ration (summer months), when demand is higher, will be determined and above Yacht rental price. Decline in demand, the cost of services will also be reduced. Company "Elite Ship yacht rental services to customers and not through intermediaries but directly. Deployment of the company yacht marina location will be near Trakai Castle, where touristsare most intense. This location offer their services and most water activities in Trakai,providing competitors. Therefore, to distinguish themselves from competitors in the company will need the active support of the program. According to the National Department of Tourism conducted questionnaire-based studies, suggests that advertising in the press or radio advertising is ineffective in the development of yacht rental business. Company "Elite Ship will attempt to reach potential customers via the Internet (detailed description of the company's website, active in the social websiteFacebook). Also will focus on outdoor advertising and print advertising (flyers, brochures)for distribution in Trakai.
14
Promotion costs: Web page (about 2000Lt); Information stand (about 1000 Lt); Print ad (layout 50, brochures (one year) of Lt 6000); Souvenirs to customers (1000 Lt);
General of LLC "Elite Ship" planned direct marketing expenses for the year is 11,550 Lt. The company also incurred costs and indirect marketing, such as marketing, responsiblefor personnel costs, communication costs, and so on. However, these costs would bemore appropriate to assign a company's costs.
Director
Accountant
yacht captains(5)
15
Director of the company will be responsible for the planning, organization and control. He also engage activities in marketing (market analysis, will coordinate the marketing mix elements and so on.). In addition, the responsibility will be to ensure the effectivemanagement of personnel (in conflict situations, staff motivation, training, etc.) Accountant will work on bookkeeping, payroll, inventory and various documents, etc.. Yacht Masters will be the company's employees who are directly interacting with customers. Their responsibility will be to provide customer service chosen by all the servicerequirements.
Captains, sail yacht tourists, non-registered in advance is always working on weekends, as they are receiving all major tourist flows. Captains work schedule: 1 Captin Opening hours: Wednesday, Thursday, Friday, Saturday, Sunday; 2 Captin Open: Saturday, Sunday, Monday, Tuesday, Wednesday; 3 Captin Opening hours: Tuesday, Thursday, Friday, Saturday, Sunday. Tourists are served from 10 am. up to 19 hours. except when there is a reservation. Captains skills are very high. All of them are more than 10 years of sailing experience, participatedin world sailing competitions and regattas. Qualification shows captainssailing yachts a vailable for crew members of a diploma. Yacht captains are responsible for the yacht rental service in advance who had reservation for the yacht customers are charged 30Lt per hour wages (in exceptional cases where the ordersafter 22 hours. 40Lt is paid hourly wages). Remaining masters who work in the schedule, amonthly remuneration of 1800Lt. Captins works under seasonal labor contract since April till the end of November. becauseonly at that time, according to climatic conditions, potential yacht rental services in Lithuania. For months, when conditions are unfavorable Lithuania boating, yacht captainsusually spend a swim in warmer waters. This is the kind of training are. It should be noted that the company will also hired additional staff, distribution of promotional material. Provided the employee's annual salary budget 8000Lt.
17
Preparation of the yacht (under special customer requirements or standard) Meeting a client which did not had an advance booking
Real and intangible cultural heritage and history associated with statehood; favorable natural conditions and other professional and amateur water sports; A small area of urban development, landscape; Developed area and the edge of the trunk road network, railway; Trakai district is rich in recreation and tourism appropriate resources and beautifulscenery.
Weaknesses of the district: Visitors come for a short period of time; Large seasonal nature of tourism; Cultural organization of tradition and experience only partially meet the modern needs, cultural requirements of users and a representative at district level; Lack of highly skilled staff; Thousands of tourism service, they are unevenly located in the area;
20
The analysis of several alternative business under the same criteria (potential customers,the need for investment, personnel needs and qualifications, expected income) can bedescribed as the most attractive business opportunities in this study, the yacht rental business and as an alternative to the pleasure boat rental business. Both businesses arefaced with the same investment needs, and a similar number of potential customers. Staffqualifications are similar, but in order to provide yacht rental services is greater need forstaff. However, services are more flexible, responsive to individual customer requirements(creating a certain exclusivity), the pursuit of yacht rental business can be expected to behigher income and higher business entity's financial position.
Disposed of service levels (units / m) Sightseeing, entertainment travel Regatta Romantic travel Individual program Disposed prices, LT / units. Sightseeing, entertainment travel Regatta Romantic travel Individual program
22
Indicators of economic viability 1. 2. 3. 4. 5. net profit margin Debt ratio Loan recovery rate Liquidity ratio Debt-equity ratio
One of the LLC "Elite Ship" financial goals is the profitability ratio of net value - more than 15%. Predicted that the result until 2014 not be reached. During the first year of netprofitability ratio value (2.0%) is less than a good indicator of the minimum value (5.0%).However, the 2012 2014 index value is greater than 5.0% and the trend is coming to the expected 15% of the category. The debt ratio over the analysis period to exchange large range. In 2011 this ratio veryclose to 1. This is due to the company's own lack of capital and the acquisition of assetswith borrowed funds (taken by a bank loan). 2012 - 2014 in index value is 2014, and company reaches the maximum desired value, which is still 0.9% higher than the wellregarded value. Loan recovery rate in 2012 is the less than 1, which means that LLC "Elite Ship" annualcash flow is less than a year, payable to the bank. 2013 - 2014 in index value exceeds 1, but still below the recommended target value. Company "Elit ship" is able to cover its current liabilities from current assets its liquidityvalue index 2011 - 2014 more than 1.2. However, the 2012 - 2014 value of the indicator is growing rapidly and preferably stored beyond the range (1.2 - 2). This is a signal that the company operating assets freeze of funds, ie assets are managed poorly. Analysis of the company's operations, high debt-equity ratio can testify about the increasedrisk, as it can be difficult to cover their interest payments and repayment of debt and obtainsufficient resources for further funding. Economic viability are important indicators of financial analysis of business prospects, butkeep in mind the company's evaluation and performance indicators. They are presented in Table 7.
23
Corporate perfomence indicators IRR NPV The discount rate MIRR Reinvestment rate Investment payback period 12% 17.508,40 Lt 7% 9% 4,50% 5,66 m.
In order to assess the break-even take into account the internal rate of return (IRR) and net present value (NPV). In this case, the investment is safe because the IRR is achieved >7% and NPV>0. Then should be noted that the payback period is the 5.66 years, NPV =17,508.40 LT. In order to accurately determine the project's profitability is calculated by a modified internalrate of return (MIIR). Calculation of this indicator is the an assumption that the project cashflows are reinvested in accordance with the capital costs, while the IRR method assumesthat project cash flows are reinvested in accordance with the IRR of the project.Reinvestment in terms of capital costs is the correctness, the MIRR is a better indicator ofthe true profitability of the project. LLC "Elit Ship" MIRR value is equal to 9% the projectis the acceptable.
the investment payback period is the 5.66 years. That means in 5.66-year will be earned only 17 508.40 Lt. In addition, both the internal rate of return and modified internal rate of return value is low. Economic viability of the indicator values are also informed by the low profitability and high risks. Implementation of the project is feasible, but the same business profitability is not high. Investment payback period is the inadequate who earns money. Debt and debtequityindicators inform the high values of the significant risk for the development of a businessusing borrowed capital. Implementation of the project are all possibilities, but the outlook is not good design. Recommendation - refuse yacht rental business project.
25
8. Literature:
1. Turizmo sektoriaus konkurencingumo stiprinimas Vilniaus apskrityje (sektorin studija), 2010 (priega per internet): http://www.apskritis.lt/stotisFiles/uploadedAttachments/Sektorine%20studija_Turizmo %20sektoriaus%20konkurencingumo%20stiprinimas%20Vilniaus%20apskrityje.pdf 2. Lietuvos turizmo ir komunikacijos ir rinkodaros strategija 2009-2013 m. (priega per internet): http://www.tourism.lt/informacija/Turizmo%20rinkodaros%20strategija-081224.doc 3. Turizmo pltots strategija (priega per internet): http://www.ukmin.lt/lt/strategija/doc/13.%20turizmo%20pletotes%20strategija.doc 4. Trak rajono turizmo pltros programa (priega per internet): http://webcache.googleusercontent.com/search?q=cache:36SzPlqBHoJ:www.tourism.lt/ dom/docs/31_traku_progr.doc+trakai+rinkodaros&cd=12&hl=lt&ct=clnk&gl=lt 5. Statistikos departamentas (priega per internet): http://db1.stat.gov.lt/statbank/SelectVarVal/saveselections.asp 6. Trak rajono savivaldyb (priega per internet): http://www.trakai.lt/index.php?2234172880 7. A.V. Rutkauskas, R. Tamoinien Verslo projektavimas, Vilnius Technika 2002. 8. Sky Advisory (priega per internet): http://www.skyadvisory.netii.net/index.php?p=1_6 9. EVPA (priega per internet): http://www.evpa.lt/lt/paslaugos/galimybiu_studijos_investiciniu_projektu_rengimas
26