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BUSINESS PLAN Executive Summary The tourism industry has undergone rapid growth of unsurpassed nature over the last several decades. This has mainly been due to the advent of a 'borderless' world and increased information dissemination about the majestic sceneries throughout the world, with the southern African region being no exception. Our services will be positioned very carefully: they will be of extremely high quality, comfortable, informative and tailored to the clients needs such that they will enable individuals to have a greater appreciation of the natural environment and its intricacies. Our marketing strategy will be based mainly on ensuring customers know about our existence and the service(s) we fulfill. Hence our intention is to make the right information available to the right target customers. This will be done through implementing a market penetration strategy that will ensure that we are well known and respected in the tourism industry. We will ensure that our prices take into consideration peoples' budgets, that these people appreciate the service(s), know that it exists, and how to contact us. The marketing will convey the sense of quality in every picture, every promotion, and every publication. Our promotional strategy will involve integrating advertising, events, personal selling, public relations, direct marketing and the Internet, details of which are provided in the marketing section of this plan. It is important to recognize that we do not intend to just take individuals on sightseeing excursions, but also to ensure that they appreciate nature through informative briefings on objects' origins. This element will assist in differentiating us from our competitors and contribute towards the development of a sustainable competitive advantage. Hence we need to engage the right people in the right place at the right time if we are to ensure optimum growth. We intend to develop our team so that our people can grow as the company grows - a mutually beneficial relationship.

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Objectives Our business strategy will revolve around the need to provide quality service to our various target customers, in the process fully satisfying their needs. This shall be undertaken through recruitment of a professional team and the provision of good quality custom-designed travel packages, catering to the client's particular needs. For our target customers,we w覺ll supply secure flying services.For fullfilling this,we will have experts for flying services.like experienced pilots. With time our marketing campaign will increase the awareness of our services in the various market segments we shall be targeting. This is particularly so with the organization looking at establishing a clear advantage(s) in an increasingly competitive market. We will provide clients with the opportunity to focus on their core activities whilst their transportation side needs are fully satisfied. Marketing material shall be professionally done so as to be reflective of our intended image and reputation. We shall position ourselves as a quality commercial transportation operator that provides customer-need fulfillment, enjoyment, reliability and a good image. We intend to establish a good rapport with all the relevant stakeholders, especially hotels and travel agents. We also intend to have well-designed brochures and other promotional material that will enable clients to have an understanding of the types of services we offer and advantages of utilizing them. In addition well-done, informative brochures, fact sheets and monthly magazines (LIFE) often have a triggering effect on clients contemplating utilizing our services. Hence this will undoubtedly generate increased sales of our service.

Mission Internally we intend to create and nurture a healthy, exuberant, respectful, and enjoyable environment, in which our employees are fairly compensated and 2


encouraged to respect the customer and the quality of the service we intend to provide. In addition follow-up will be mandatory so as ensure customer satisfaction and make any improvements as recommended by the customers in future. We seek fair and responsible profit, enough to keep the company financially healthy for the short and long term, and to fairly remunerate employees for the work and effort.

Company Summary Hot air ballooning in Cappadocia, which has now identified with the region, started in 1989. The common opinion reached at International Balloon Festivals is that Cappadocia is the most pleasant place in the world to fly a balloon. During the past 20 years the number of companies doing commercial flights has reached nine. And due to competition for profit instead of quality has resulted in the fact they have overlooked important issues such as service quality and passenger safety. Since the day it was founded, our company, seeing this defect, has not made any concessions concerning safety and new equipment and has not refrained from any expense that will lead to being the “best there is”. None of the twenty five balloons in its possession are promotional advertisement balloons and they are all the companys own property. The fabric used on all of our balloons enjoys special quality and design and they all bear the name of our company. All the baskets we use are designed for VIP use, and its only in the baskets of our company that you will see the same number of safety belts as the number of passengers. All our baskets are insured according to the number of passengers. The insurance covers total basket insurance, individual accident insurance and insurance against third parties. The amount of insurance for our smallest 10 passenger basket is € 2,500,000 and according to the size and capacity of the baskets, this figure goes up to € 8,000,000. Another source of pride is the 35 passenger balloons and baskets produced by Lindstrand, one of the greatest balloon manufacturers of the world, who is producing all our equipment. Another balloon that only we have is the one person Cloudhopper. This balloon will be used for promotional purposes during festivals and it will also be rented out to clients who have a pilots license. We have a very professional team and equipment for festivals abroad and for promotional activities. This team will act as tourism ambassadors and follow all aviation festivals around the globe, naturally including all balloon festivals. In short, we have a capacity of 350 passengers in one flight (as of October 30), which makes us THE BİGGEST BALLOON COMPANY OF THE WORLD. To deserve this title and to keep it, we have employed pilots and ground crew who are professionals with long years of experience behind them. Our office staff also consists of very experienced professionals, specializing in this area. Our pilots and 3


ground crew as well as our office staff have been awarded with an ISO 9001-2000 quality certificate as a result of the training they received by “American Systems Registrar”, and this is the first time this happens in this sector.

Market Analysis Summary Thus far the directors have contributed one hundred and sixty seven thousand pula (P167,000) to purchase helıum balloons currently in its possession and P30,000 for cash expenses.

START-UP

expenses assets loans investment

 Company Locations and Facilities Anatolian Balloons – Cappadocia,Adnan Menderes Cad. No: 34,Goreme - Nevsehir – TÜRKIYE Our company is in Göreme.Göreme is a small and touristic town of Nevşehir.Also it is in the centre of Cappadocia.  Services Anatolia Balloons is a Hot Air Flying company that intends to deliver leisure travel excursions to customers. This analysis will be based on user profiles, set by the consumers, which includes preferences such as: 4


  

Budget Activities sought Time of flying

A tourist will hence be able to select areas of interest based on their preferences .On our flights, well travel anywhere from 2 to 15 miles depending on the wind speed and directions we encounter flying at various altitudes. During the flight the pilot will vary the balloons altitude from tree top level, a height that allows one to reach out and commune with nature, to heights of several thousand feet, where one may look out in a visual sweep, and see much of Cappadocia. Whatever the altitude, lighter-than-airflight offers a truly unique flying experience.

 Competitive Comparison There are presently few competitors offering flying services similar to ours. However considering the pace of change and current growth rate of the tourism industry luring many companies into the sector, this may be short-lived. Hence there will be a need to not only firmly establish ourselves on the market, but also strongly differentiate ourselves from these other businesses. However on a broader scale our competition comes in several forms: 

instead of directly competing with them we intend to establish good working relationships in the form of strategic alliances such that we are able to offer the service for their clients and thus enabling them to concentrate on their core activities whilst ensuring customers are fully satisfied. Our key advantage in this regard will be our specialty of the service and hence wide knowledge ensuring customer satisfaction at all times as well as flexibility in providing the service.

we try to create an institutional identify and we want to show this to our competitors.

 Sales Literature 

The business will begin with a general corporate brochure establishing its position on the market. This brochure will be developed as part of the start-up expenses including the business cards and Company Profile, mainly for the large organizations that often recommend services to potential customers. Compliment slips are also intended so as to raise awareness of the company and its services. We also intend to have information pamphlets that will provide information on our various tour packages. Literature and mailings for the initial market forums will be very important.

 Fulfillment

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The key fulfillment and delivery will be provided by the employees of the company. The real core value will be professional expertise, provided by a combination of expertise, experience, hard work, and education (in that order). Hence we intend to ensure that the work we undertake is always thorough and relevant to the clients' needs. We will turn to reputable companies for supplying the necessary individuals and groups for our services. Hence the need to establish good relationships with our strategic allies

ORGANIZATION SCHEME

GENERAL DIRECTOR

EXPERT OF ADMINISTRATION AND QUALITY

MANAGER OF GROUND TEAM MÜDÜRÜ

SALES AND MARKETING

OPERATIONS MÜDÜRÜ

MÜDÜRÜ

LOGISTC

OPERATONS

ELEMANLAR

SORUMLULARI *

OPERATIONS ELEMANLARI **

 Future Services In putting the company together we have attempted to offer enough services to allow us to always be in demand by our customers and clients. The most important factor in developing future services/products is market need. Our understanding of the needs of our target market segments shall be one of our competitive advantages.

Market Analysis Summary

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We are today experiencing a rapid growth in the economy of unsurpassed nature. This has been brought about by, amongst other things, the relaxation of foreign exchange policies and macroeconomic policies geared towards attracting foreign investors into the country. The fiscal and monetary policies of the government geared towards maintaining growth with social justice have largely contributed towards this, evidenced by our economy averaging a growth rate of 7% since 2006 - very high by international standards.We have got many transportation vehicles whıch are used for ground operations also helium balloons among our competitiors.  Target Market Segment Strategy Our marketing strategy will be based mainly on making the right service(s) available to the right target customer. We will ensure that our services' prices take into consideration organizations' and peoples' budgets, and that these people know that we exist, appreciate the value of our services, and how to contact us. The marketing will convey the sense of quality in every picture, every promotion, and every publication. Our intension will be to target those individuals and groups looking for leisure activities and places to visit. We realize the need to focus our marketing message and our service offerings. We need to develop our message, communicate it, and make good on it

 SWOT Analysis We intend to enter a highly lucrative market in a rapidly growing economy. We foresee our strengths as the ability to respond timeously to the market dictates and to provide custom designed travel excursions to travelers. Our key personnel will have a wide and thorough knowledge of the areas we intend to take travelers, which will go a long way towards penetrating the market. Below are the summarized strengths, weaknesses, opportunities and threats.

Strengths  

Diversified client base: This will reduce our dependency on one particular market. Combination of skills in employees: The directors intend to engage wellqualified and experienced employees to jointly develop business strategy and long-term plans, so as to attain company objectives. Extensive advertising and marketing: The company will undertake extensive advertising and marketing, promoting both its name as well as service/product awareness. Hence an aggressive and focused marketing campaign with clear goals and strategies shall be one of our mainstays.

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Weaknesses 

  

Lack of a reputation in comparison to our competitors. This is due to the fact that we are still new on the market. However this shall be addressed as shown in the marketing section of this plan. The introduction of new organizational practices and personnel who have not previously worked together presents a challenge to the organization. A limited financial base compared to the major players in the industry. Lack of clear strategic allies.

Opportunities

Current drive by government towards encouraging the participation of indigenous entrepreneurs in tourism presents an opportunity which we may fully utilize. Current growth rate of tourism presents an opportunity for ourselves which we may take advantage of. This is further supported by the current marketing campaigns by both the government and regional tourism body

Threats The present growth in the tourism sector may result in an increasing number of firms entering the market. This may led to increased competition emerging from a variety of given sources including: New marketing strategies and tactics by established companies aimed at providing excursions of our intended nature. Existing competition.

 Financial Plan The financial plan shall be essential if we are to meet our objectives. The intention is to finance growth through cash flow and equity. One of the most important factors will be the payment terms as agreed between the client or customer. We can't push our customers hard on collection days, because they are extremely sensitive and will normally judge us on our terms. Therefore there is need to develop a permanent system of receivables financing systems mutually agreed between both parties. Hence in the financial plan we intend to have the following: 1. A fundamental respect for giving our customers value, and for maintaining a healthy and congenial workplace. 2. Cash flow as first priority, growth second, profits third.

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3. Respect for realistic forecasts, and conservative cash flow and financial management. ďƒ˜ Business Ratios The following table shows some important ratios for the Air craft tourism transportation.

Ratio Analysis

Year 1

Year 2

Year 3

Industry Profile

0.00%

59.00%

13.21%

4.00%

Accounts Receivable

13.80%

16.61%

14.34%

22.30%

Inventory

3.09%

3.72%

3.21%

0.70%

Other Current Assets

0.00%

0.00%

0.00%

42.80%

Total Current Assets

44.19%

57.75%

67.78%

65.80%

Long-term Assets

55.81%

42.25%

32.22%

34.20%

Total Assets

100.00%

100.00%

100.00%

100.00%

Current Liabilities

6.06%

4.11%

3.51%

33.10%

Sales Growth

Percent of Total Assets

9


Long-term Liabilities

0.00%

0.00%

0.00%

16.40%

Total Liabilities

6.06%

4.11%

3.51%

49.50%

Net Worth

93.94%

95.89%

96.49%

50.50%

Sales

100.00%

100.00%

100.00%

100.00%

Gross Margin

80.00%

80.00%

80.00%

40.10%

Selling, General & Administrative 56.07% Expenses

62.40%

60.52%

30.80%

Advertising Expenses

4.71%

3.26%

3.17%

0.80%

Profit Before Interest and Taxes

28.83%

21.20%

23.47%

1.20%

Current

7.29

14.05

19.29

1.66

Quick

6.78

13.15

18.38

1.29

Total Debt to Total Assets

6.06%

4.11%

3.51%

49.50%

Pre-tax Return on Net Worth

35.89%

31.13%

29.57%

2.70%

Percent of Sales

Main Ratios

10


Pre-tax Return on Assets

33.72%

29.85%

28.53%

5.30%

Additional Ratios

Year 1

Year 2

Year 3

Net Profit Margin

24.03%

17.60%

19.23%

n.a

Return on Equity

29.92%

25.84%

24.22%

n.a

Accounts Receivable Turnover

4.24

4.24

4.24

n.a

Collection Days

56

70

81

n.a

Inventory Turnover

10.91

9.30

8.05

n.a

Accounts Payable Turnover

8.95

12.17

12.17

n.a

Payment Days

27

32

28

n.a

Total Asset Turnover

1.17

1.41

1.22

n.a

Debt to Net Worth

0.06

0.04

0.04

n.a

Current Liab. to Liab.

1.00

1.00

1.00

n.a

Activity Ratios

Debt Ratios

11


Liquidity Ratios

Net Working Capital

$114,101

$212,022

$333,168

n.a

Interest Coverage

0.00

0.00

0.00

n.a

Assets to Sales

0.85

0.71

0.82

n.a

Current Debt/Total Assets

6%

4%

4%

n.a

Acid Test

4.51

9.11

14.30

n.a

Sales/Net Worth

1.25

1.47

1.26

n.a

Dividend Payout

0.00

0.00

0.00

n.a

Additional Ratios

12

TURKEY  

TURKEY BUSINESS PLAN

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