Business and Tourism Management Assignment Example

1. Introduction of Business and Tourism Management Example

Tourism service industry refers to arranging all the travelling, accommodating, adventure and luxurious services that helps in making the tour experience exceptional for the individual. Tourism services industry compromises of the transportation, hospitality, insurance, bank, food & beverage and the travel services. After the industrial revolution in the 19^th century, the tourism industry has shown a drastic growth that result into constant increase in the demand and need of the leisure activity. The tourism industry has provided employment to over 2.6 million employees and contributed over 108 billion pounds towards the country’s GDP (UK’s tourism industry, 2024). Among all the other tourism services, the transportation sectors are contributing significantly towards the growth and development of tourism within UK. Under this, the taxi market has earned revenue of 6.01 billion pound in year 2023 which indicates the high growth potential of the industry (Contribution of travel industry in UK tourism, 2023). From the survey, it has been identified that 6 out of every 10 tourists prefer taxi for the travel purpose as it is more convenient and comfortable for them. Further it has estimated that taxi industry is expected to grow by 5.6% in the upcoming years. In this context, an AI integrated Taxi services will be started in London named as “CitiLink taxi”. Under this, tourist will provide an opportunity to travel city streets; local sightseeing and airport pick & drop facility. This will provide an opportunity to the customers for selecting cab according to their needs and preferences. This report will provide information related to the establishment of the CitiLink Taxi. This report will outline all the plans and strategies that will be undertaken for making business more successful. It will include the business plan through which all the activities will be clearly described as the source loan of 20000 pound from the British bank. Further, the report will include the objective of the plan, targeted customer, marketing and the backup plan so that all the uncertainties could be effectively faced.

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2. Objective

Below written are the various short, medium and long term smart goals that CitiLink Taxi needs to achieve in the upcoming time.

Short-term goals:

• To increase number of customer by 2% at the end of the 3 month
• To enhances website traffic by 5% and enhances posting on social media sites

Medium-term goals:

• To receive 6% increase in the profits at the end of second quarter.
• To improve overall operational efficiency and deceasing cost by 5% at the end of 8 months.

Long-term goals:

• To expand business by adding 4 more taxis at the end of current year.
• To serve more than 15000 tourist within the year.

In the short term goals, firm is aiming at enhancing overall traffic on the firm’s website that will help in attracting the large number of customers and result into enhancement of overall profitability of the business entity. Further, in the medium term goals, organization is aiming at increasing overall efficiency which will help in attracting the large number of customers. The firm is aiming at enhancing overall profitability as the organization is planning to take loan for which regular interest needs to be paid.

3. Personal Swot Analysis

SWOT analysis assists the individual to identify own strength and weakness. This aids in taking appropriate action to strengthen the abilities and developing the weak areas for attaining the set targets. My SWOT analysis is as under: Strengths:

• During working at my previous workplace I analyzed that financial skill is one of my strength. Referring to the skill I am able in preparing budget, analyze data effectively. The skill aids me to carry out all the financial activities in the given budget and enables in making optimum utilization of fund.
• Good technical skill of mine enables me to use different emerging technologies such as AI, automation to successfully operate taxi business.
• Having a proficient communication skill enables in conveying business idea to the different stakeholders and manage team members efficiently (Dewi et al, 2020).

Weakness:

• At previous workplace while dealing with problems I analyzed that I have lack of problem-solving skill which makes difficult to overcome problem promptly.
• Inefficiency in management of time creates barriers in the completion of task on time, and thereby significantly impact the growth of business adversely.
• Lack of having competent leadership ability acts as a barrier for managing and directing team to attain the organizational goals.

Opportunities:

• Good communication creates an opportunity for me to engage with the customers, investors as well as makes taxi`s business more profitable and successful in less time to gain competitive advantage in the tourism industry.
• I have an opportunity to use financial skill for initiating taxi’s business within a limited budget as well as fund optimization for the further growth of business.
• Technical ability helps me to grasp new techniques and implement it in my taxi business which further contributes in gaining competitive advantage and enhancing the tourist’s experience.

Threats:

• Large competition in industry build hurdle to mark footprint of business.
• Lack of problem-solving ability works as a threat for declines uncertain issues for smooth operation of business.
• Use of technology is expensive make a threat to start business in specified and limited budget.

4. Targeted Customer and MarkeT 

Segmentation: The below table indicates the target customer of the CitiLink Taxi:

Further, it has identified that London is mostly visited by US citizen as in year of 2023 over 4587000 tourist visited the country. This indicates the huge US market for the CitiLink Taxi which will help in increasing the overall profitability of firm (Deveci et al, 2022). Further, study suggested that from every 10 tourist, 6 individual prefers taxi for travelling that result in high focus over country’s tourist. In this context, individuals above the age group of 14 has been targeted as youngster generally prefers travelling by taxi and does not like to travel in the public transports due to inconveniences. Moreover, focus has been paid on attracting the older tourist as they are not able to feel comfort in the other mode and prefer travelling by private mode. Organization is targeting at the higher and middle income class individual as fare of private taxi could not be afforded by the entire income class group. At the initial stages, company is aiming at providing services to the tourist within London and later on film will focus on expanding its target market. Further cost conscious individual does not prefer taxi as it is more costly than other transport so all the people focusing over living comfort and luxurious lifestyle are targeted by the business entity. Moreover, individual that put luxury and technology over the cost are attracted as the cab of CitiLink taxi are integrated with AI technology which help in optimising routes, maximizing utilisation and decrease overall waiting time. Further, it has identified that there is increase in the need of Taxis in the London. From the survey it has identified that more than 75% of tourist prefer taxi over tube train in London. This has been achieved as the tourist destination is far away from the London which could not be reached through tube train. Moreover, many tourists are not able to understand the booking and travelling system through tube train that creates the increasing need of the cab within city. According to some tourist the train system are very confusing which creates dissatisfaction among the tourist and shift there demand towards the cabs (Fletcher et al, 2018). It has identified that tourist prefer to travel to as many destination as possible in shorter time period and with the introduction of AI powered cab this needs could be fulfilled. Firm is able to track the traffic route and identify the best time and the routes through which destination could be reached within the limited time. The technology powered cabs are involved in getting payment through digital mode and involved in identify the busy hour and reached the destination before time as to save tourist’s time. 

5. Competition

Porter’s five force analysis

For analysing the competitive edge of the CitiLink taxi, porter’s five force analysis have been used initiated below: Competitive rivalry: There is lower competitive rivalry of the CitiLink Taxi due to the less presence of AI powered taxi company that could provide high convenience to the tourist (Porter’s five factor analysis of Taxi industry, 2023). This will help in increasing overall profitability of the business entity as large number of customer will be attracted towards the firm. Potential of new entry: The risk of new entry for the company is also low due to the high start-up cost for initiating taxi business in UK. Bargaining power of suppliers: The bargaining power of supplier is low as the large numbers of company that are providing cars so the increase in the prices may results in losing of the contract by the suppliers. Customer’s bargaining power: It has identified that there are less number of companies which involved in providing AI powered and effective experience to the customer. This in turns result into decline in the overall bargaining power of the customers (Fullen and Podmoroff, 2006). Threat of substitution: In London, the tube train are preferred by large number of customer which increases the threat of substitution for the CitiLink. Major competitors

From the above table it has identified that CitiLink is providing effective services as compare to its competitors that also at affordable price. This will help in attracting customer towards firm and support in creating competitive edge within the industry.

6. Marketing Plan

There is urgent need to create awareness regarding the firm’s services so that large number of customers could be attracted and overall profitability could be enhanced. Digital technology plays a crucial role in forming the perception of individual regarding the company (Murray, 2008). Moreover, digital technology aids in reaching out to larger targeted market within the limited time and cost results in improving overall business profitability. With the help of technology, customers are able to easily contact to the organization which aids in attracting tourist. Below are three promotional activities which have been used by the CitiLink for promoting its services:

For promoting services of the CitiLink taxi, social media marketing, advertisement and search engines optimisation strategies has been used by the organisation. Under traditional method, boarding will be displaced on the roads and advertisement will be providing on television which will help in creating awareness within large target market. Company is also planning at undertaking contract with hotels which helps in suggesting firm’s name to the entire tourist. Additionally, Social media marketing will be used in which attracting videos and photos will be shared on the social media site of the company through which large number of customer could be attracted (Madura, 2007). This mode of advertisement also provides opportunity to tourist to communicate with company that helps in clarifying customers doubts and support in taking final decision. It has identified that firm’s short term goal is to increase website traffic which could only be achieved by using SMM as it support in covering larger target market within limited cost and time. Further, CitiLink has focused over using SEO techniques as tourist generally makes every decision after searching for the relevant topic on the Google. SEO will help in suggesting company’s name to all the interested tourist which will help firm in increasing its overall sales and result in attaining short and long term goals.

7. Operations 

Stakeholders

From the above table it has identified that tourist and media are least interested in the profits of the business entity but have power to change the decision of the organization. Stakeholder or investors and top level manager are highly interested in firm’s performance as it will define their overall profitability. NGOs and local government does not pays emphasis over firm’s profits and does not have any rights to take decision. Employees and trade Union has emphasis over indentifying firm’s overall profitability position as it will decide their wages but they does not have rights to take part in the decision making process of the business entity. Among all the others, customers and investors are the two most crucial stakeholders of the firm. Investors help in providing funds and support in fulfilling the financial need of the organization which make them the most crucial aspect of the business entity (Neuwahl, 2021). Further, customers are second crucial stakeholders as if the needs and wants of the tourist will not be fulfilled then overall profitability and sustainability position of the business entity get affected.

Organizational structure:

Below table indicates the total number of employees that are required for effectively carried out the task of the CitiLink Taxi:

At the initial level the firm will operate with 11 employees that will help in managing cost while carrying out firm’s operations. With the expansion plan, firm will involve in hiring new drivers and employees as to manage organization’s function. Enterprise is planning towards introducing more taxi at the end of year which requires CitiLink taxi to hire more drivers. After expanding business operation, firm will adopted hierarchical structure which will help in clearly describing authority and responsibility of each employee (Tcai, Wijekoon and Liserre, 2023). This organization structure has been selected with the aim of managing business operations and promoting structured business environment.

Operational considerations:

For setting up the travel company in UK, CitiLink Taxi needs to align with the package travel and linked its action with Travel arrangement regulation 2018 (Laws in setting Taxi business in UK, 2024). Along with the regulation, firm need to compile with the three necessary regulations for hiring a driver which are as follows;

• Firm needs to hire driver that are having EU or IN driving licence for at least or more than 12 months.
• The driver must have the age of 18 or 21 based on the area of operations
• Manager needs to initiate medical test, skill test and background check for maintaining safety of the passengers.

Further, the company will undertake Taxi insurance, engine secure insurance and the personal damage insurance which will help organization in overcoming uncertainties and support in maintaining stability.

8. Finance

After the analysis of cash flow table, it has identified that firm is having high financial viability as firm is generating high amount of returns. It has depicted that profit of the organization is increasing and there is regular cash inflow which is the positive indicators for investors. For establishing CitiLink taxi, a sum of 20000 pound is needed which will be used in the below described manner: In this context 1000 pound will be paid towards rent, 1500 pound towards insurance expenses, 13000 pounds for vehicles and the rest amount will be used for marketing expenses. The bank loan will aid in fulfilling initial level fund requirement and support in effective establishment of firm. From all the other expenses, cost of goods sold and the investment towards the fixed asset are the two largest expenses. In the taxi company, Firm needs to purchase or lease taxis which require high expenditure by the business entity. Further firm has focused over initiating highly automated techniques and integrating AI in all operations which increases cost for the business entity. As for is aiming at providing utmost effective services’, the cost of good sold is high for the company.

9. Back-Up Plan 

These sections of report will discuss on the measures that will be adopted for paying off loan in case of firm’s failure. It has identified that Taxi Company is having high growth potential in UK which will contribute towards successful repayment of the Loan and the interest amount, but due to occurrence of any uncertainties. If the firm will not able to work then the personal saving of owner will be used to pay off the interest and principle amount. During repayment of loan, if the personal saving is not enough to pay off the entire loan then the investment and fixed assets will be sold out. Additionally, owner is having effective market that will help in arranging the amount easily and support in clearing all the dues. The credit score of the owner is also high and effective which indicate that there is no liability on the owners and the creditors are always paid on time. The backup plan is recognise as realistic as the value of the fixed assets are higher than the loan amount which denotes high efficiency of owner in paying off all the loan and interest thereon without any default.

10. Conclusion

By summing up the report, it has identified that CitiLink taxi is viable as there is increase in need of such services within tourist. The goal of the organization is to attract large number of customer and to expand business operations in long term. The firm is targeting towards the individual of high and middle income group that are willing to spend towards comfort. CitiLink is using SEO, SMM and advertisement as the source of creating awareness within market. Further, customers and investors are recognized as two most crucial stakeholders for the long term growth of the business entity. Firm is having high cash inflow indicating financial viability of the business entity in long run.

References

Books and Journals

• Deveci, M., Çiftçi, M.E., Akyurt, İ.Z. and Gonzalez, E.D.S., 2022. Impact of COVID-19 pandemic on the Turkish civil aviation industry. Sustainable Operations and Computers, 3, pp.93-102.
• Dewi, V., Febrian, E., Effendi, N. and Anwar, M., 2020. Financial literacy among the millennial generation: Relationships between knowledge, skills, attitude, and behavior. Australasian Accounting, Business and Finance Journal, 14(4), pp.24-37.
• Fletcher, J., Fyall, A., Gilbert, D., Wanhill, S. 2018. Tourism: principles andpractice.Harlow:PersonEducation.
• Fullen, S.L. and Podmoroff, D., 2006 How to write a great business plan for yoursmallbusinessin60minutes or less.Ocala: AtlanticPublishingCompany.
• Griffin, M.P. 2015 How to Write a Business Plan: A Step-by-Step Guide toCreatingaPlanThat GetsResults:AMA Self-Study.
• Madura, J., 2007 Introduction to Business. 4th edn. Thomson Higher Education.Availablein Additional Resourcesin Moodle.
• Murray, J.W., 2008. The Complete Guide to Writing Effective and Award-WinningBusinessProposals:Step-by-StepInstructions.Ocala:AtlanticPublishingCompany.
• Neuwahl, N., 2021. Services in Transatlantic Trade Deals: Potential for Progress after 2020?. RJT ns, 55, p.361.
• Tcai, A., Wijekoon, T. and Liserre, M., 2023. Harmonic Analysis of Quasi-2-Level Medium Voltage Super-Switch. IEEE Transactions on Industrial Electronics, 71(5), pp.4663-4672.

Online

• UK’s tourism industry. 2024. Online. Available through: < https://www.statista.com/topics/3269/travel-and-tourism-in-the-united-kingdom-uk/#:~:text=Travel%20and%20tourism%20contribute%20significantly,estimated%20237.1%20billion%20British%20pounds.>
• Contribution of travel industry in UK tourism. 2023. Online. Available through: < https://wttc.org/news-article/new-report-from-wttc-reveals-uk-travel-and-tourism-sector-is-expected-to-create-700000-jobs-over-the-next-decade#:~:text=According%20to%20the%20report%2C%20the,%25%20of%20the%20total%20economy).

Author Bio

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