MGBBT0FYP Foundation Year Project Assignment Sample

Introduction:MGBBT0FYP Foundation Year Project

Tourism refers to the process of travelling to other place, domestically or internationally with the motive of leisure, business or social purpose. The tourism service industry implies for providing accommodation, hospitality, travel and banking facility to the tourists with the aim of enhancing their overall experience. The need and demand for leisure activities have increased after the 19^Th century revolutions that result into the growth and development of tourism industry. This industry is contributing drastically towards the country’s growth as it involved in offering employment to 2.7 million individual. Tourism industry provided over 107 pound GDP that indicates overall development of the country (UK’s tourism industry, 2024). From the secondary study, it has identified that out of every 10 tourist, 8 individuals prefer to take help of the tour operator’s which indicates high need and growth opportunity of these services in UK.

Further, it has been identified that market size of tour operator industry has risen by 43.9% in 2023 and it is expected to grow by 1.5% in upcoming time (Tour operator industry within UK, 2023). In this context, a tour operator business named “Global Getaways” will be established in Birmingham. The company will be involved in the planning and organizing accommodation, sightseeing, meal and adventurous services for the tourist. The company will undertake all these activities by integrating AI technology which will help in saving the cost and time for the tourist and provide effective services to them. This report highlights strategies and plan which will be initiated for the successful working of the business plan. This strategy will be clearly described with the aim of securing loan of £20000 from the British bank. It will also include short, medium and long term objectives which will be attaining within a year. Further target market, competition level, marketing plan, operations, finance and backup plan of the Global Getaway regarding loan will be clearly defined through this report.

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2. Objective

Various short, medium and long term objectives that Global Getaway wants to achieve in the upcoming time is mentioned below:

Short term goals:

• To enhance the website traffic by 3% at the end of 2 months.
• To increase the number of customers by 2% at the end of 3 months.

Medium term goals:

• To receive 5% rise in firm’s profit at the end of the 6 months.
• To reduce cost and enhance operational efficiency by 5% at the end of second quarter.

Long term goals:

• To serve more than 2000 tourists within the current year.
• To expand business by opening a new branch within London.

Global Getaway is aiming at maintaining stability within the industry because of which company is aiming at increasing online presence that aids in attracting large number of customers. Further, in the context of medium term goal, firm is aiming at increasing overall operational efficiency which helps in reducing the cost and thereby enhances overall profitability. Firm is planning to secure loan for the establishment of the business which could be effectively repay by earning an effective amount of the profits. Moreover, organization’s long term goal is to expand its operations which could be only possible through earning high revenue.

3. PERSONAL SWOT ANALYSIS

SWOT analysis is the acronym used for depicting the individual’s strength and weaknesses (Fullen and Podmoroff, 2006). This analysis helps in identifying the changes that need to be initiated for successfully attaining the set targets. Following is my SWOT analysis:

4. TARGETED CUSTOMER AND MARKET

Segmentation:

The below table indicates the target customer of the Global Getaway:

It has been identified from the secondary research that Birmingham is highly visited by US citizen as in year 2023 more than 4588000 tourists has arrived in the town. This denotes that Global Getaway will attract US citizens which will help in enhancing the overall financial position of the business entity (Griffin, 2015). Further, it has depicted that out of 10 tourists, 8 individual prefer organising the tour with the help of tour operator results in increasing scope of the business. In this context, individual above the age of 16 will be selected as people below this age do not take travel decision. People above the age of 16 initiate solo trip which requires a need of tour operator. As Global Getaway is arranging all the services for tourist so there will be high charges for such facilities which could not be afforded by all income class people.

Referring this aspect, only middle and higher income group individual will be targeted by the organization. At the initial level, firm is only providing this service to individual within Birmingham, and after some time business entity is planning to reach wider target market. Individuals who prefer conveniences and stress free tour are attracted by the company. Global getaway is providing services so that individual could fully enjoy their trips. So all the individual that prefer leisure overall cost are attracted by the company. Further, company will attract customers who spend more on travelling. These services are not undertaken by the entire tourist as it increases the overall cost for them. Therefore, tourists who are less concerned about cost and interested in spending high towards convenience will be attracted by the Global Getaway.

In the Birmingham, individuals usually prefer to travel and explore the new places. Individuals in country prefer to arrange all the tour services in advance so that uncertainties could be effectively overcome (Issakov et al, 2023). Further, people are concentrating over visiting large number of tourist destination in less time and cost. This need could be effectively fulfilled by the Global getaway. The company has initiated AI in its operation which helps in arranging all the travel activities effectively results in providing personalized travel experiences. Further customer generally faces issues in contacting with tour operators and due to lack of timely responses, customer are dissatisfied. AI powered tour operator will helps in answering all the question of customer, providing real time updates and resolving issues which result in providing utmost satisfaction to tourist (Madura, 2007). Further the AI in travel industry enhances confidence of tourist by efficiently navigating environment and support in local activities.

5. COMPETITION

Porter’s five force analysis

For effectively indentify competitive edge for the Global getaway, porter’s five forces analysis has been initiated below:

Competitive rivalry: It has been identified that there are large number of tour operators in Birmingham, but the AI integrated services has not been provided by them (Murray, 2008). This results in reducing competitive rivalry and support in attracting large number of customers.

Potential of new entry: There is a high initial cost for setting up the tour operator business in Birmingham result in lowering potential of new entry.

Bargaining power of Customers:  The customer’s bargaining power is low as there are less number of firm that are providing services through AI (Porter’s analysis of Tour operator business in UK, 2024). With the help of AI, firm is able to arrange all the services in cost and time effective manner which help in managing customer’s loyalty.

Bargaining power of suppliers: There is the large number of hotels and travel options available within the town that results in reducing bargaining power of the suppliers. Due to the large number of suppliers, Global getaway is having huge options that result into reduction in the supplier’s power.

Threat of substitution: There is a low threat of substitution as the only option left with tourist is to arrange all the services by themselves.

Crucial competitors:

After analysing all the major competitors it has identified that Global Getaway will able to establish effective competitive edge in the industry. The competitors are not providing all the services which will help Global Getaway in gaining competitive advantage by availing services in cost effective manner.

6. MARKETING PLAN

It is crucial requirement of each organization to create awareness regarding the firm’s services to large market area. This will help in attracting huge number of customers. Digital technology plays a crucial role in fulfilling this need as this technology helps in providing access to the larger market. This technology also provides customer with an opportunity to communicate with organization that helps in clarify their doubt and support in taking more accurate decision. Three promotional activities that will be initiated by Global Getaway are as follows:

For successfully creating awareness within the market, a combination of traditional and digital technology will be used. Under traditional, advertisement will be undertaken through television and boarding will be used that assist in achieving the objective of increasing sales and profits. Moreover, digital promotional activities will also be undertaken by the global getaway which includes social media marketing and Search engine optimization. Under SMM, firm will provide detailed and attractive post on social media sites such as YouTube, Instagram and Facebook which will help in creating awareness in large target market within a limited time and cost.

Global Getaway will also use search engine optimization techniques which includes providing relevant content so that organization’s website could be easily found. This strategy will help in suggesting firm’s name to tourist and increase the scope of attracting large number of tourist (Wahyuningputri et al, 2022). This is the most impactful strategy in the current time as individuals take decision after searching on online platform and SEO will depict firm name on top results in influencing customer’s decision. It has been identified that all the three promotional activities will contribute towards attaining the business objective as firm is aiming at enhancing website traffic that could be achieve through this activity. Further, organization is aiming at expanding its operation so the implementation of these strategies will help in creating awareness within new target market results in successfully attaining the objective.

7. OPERATION

Stakeholders analysis/h2>

The above table indicates that media, Tourist and local people are least interested in firm’s financial position but have high influence over working of the business entity. Their experience and perception regarding firm has huge impact on organization’s goodwill and impact on overall profitability. Further investors and top level managers are interested in firm’s financial position and posses’ right to take decision for enhancing overall return. Local authority and NGOs has neither right to influence manager’s decision nor interested in the financial performance.

Further, employees and middle level manager are interested in getting their salary on time which increases their interest in organization’s financial statement. From the above analysis, it has identified that tourist and investors are two most crucial stakeholders among others. Investors will help in fulfilling financial needs that aids in smooth working of the business entity (Hristov and Appolloni, 2022). Moreover, customers are crucial stakeholder as if firm will not able to satisfy them then the overall stability and profitability position will be negatively impacted.

Organizational structure

Below mentioned is the organisational structure that will be followed in the Global Getaways:

The firm is planning to expand its operations in future so at that time the number of employees and customer service representative will be increased. With expansion, number of customers and total work will also increase which could be effectively managed by rising number of employees. Additionally, in future Global Getaway will use hierarchal structure which will help in controlling orientation and provide opportunity of specialisation (Chen et al, 2022). This structure will also aid in clearly describing responsibility and authority of the employees that result in effective management of human resource.

Operational consideration

For successfully establishing tour operator business in UK, Global Getaway needs to compile all its operations with Package holiday and package tour regulation Act 1992 (Law in setting up tour operator business in UK, 2023). This act includes the responsibility of company towards its customers and remedies in the case of breach. Below mentioned are other regulations that must be followed by the company:

• Global Getaway needs to get the tourist accommodation certification for providing accommodating services.
• Firm should also compile with the UK general data protecting regulations and data protection Act 2018 so that customer’s personal data is not misused.
• Further organization should also align with Health and safety Act 1974 so that effective food and beverages are provided to tourist.

Along with this, organization will take travel disruption insurance, property insurance, and cyber insurance so that all the unforeseen circumstances could be effectively overcame and organization’s overall working could not get impacted.

8. FINANCE

After analysing the cash flow table, it has identified that firm is having high financial viability as company is earning high amount of return. Further it has identified that firm is having regular cash inflow which help in attracting large number of investors. For establishing “Global Getaways” a bank loan of 20000 pound will be required which will be used in following manner. A sum of 1500 will be paid towards insurance, 7000 will be used for marketing and advertisement purpose, rent of 1000 will be paid, utility and telephone expenses of 8000 and rest will be used for transport purpose. This bank loan will help in fulfilling initial level finance needs that result in successful establishment of the business entity.

The two largest expenses for the Global getaway are cost of goods sold and staff salary. Organization is aiming at integrating AI technology in its operations and focuses over providing high quality services which results in increasing cost of goods sold. Further, Global; Getaway operates in service providing industry which requires large number of employees for giving exceptional experiences to the customers. For managing customer’s satisfaction and retention, a high amount has been incurred towards staff salary which will help in successful working of the company.

9. BACK-UP PLAN

The backup plan is related to various measures and strategies which will be used if the organization is unable to repay the bank loan amount. From the secondary research, it has identified that there is high need and demand of tour operators in Birmingham which will help in successfully paying off the interest and initial loan amount. However, due to some unforeseen circumstances, if the business does not able to generate an adequate amount of return then the personal assets will be sell off to repay the loan. Further the personal saving will also be used for paying interest and principle amount of Loan. There is adequate market image and reputation of the owner that will help in arranging all the required funds and successfully paying off the debt. From the past analysis, it has been identified that owner is having high credit scores indicating capability in paying off all the liabilities on time without any defaults. The backup plan is practical and realistic as the owners is having high amount of personal saving which will help paying off liability. Further the values of fixed assets are higher than loan amount which ensures that bank loan could be recovered from owner.

10. CONCLUSION

By summing up the report, it has identified that there is high need of tour operator business in Birmingham indicating huge growth opportunity for Global Getaway. Organization is aiming at expanding business operations and focuses over attracting large number of customers. Global getaway is targeting over individual above the age of 16 which belongs to high income class. Advertisement, SEO and SMM are various promotional tools, used to attract individual and investors and tourists are two crucial stakeholders. Further organization is having regular cash flow which denotes high financial feasibility. Personal saving and assets of owner will be used to pay loan if the organization is unable to succeed.

REFERENCES

Books and Journals

• Chen, R.J., Chen, C., Li, Y., Chen, T.Y., Trister, A.D., Krishnan, R.G. and Mahmood, F., 2022. Scaling vision transformers to gigapixel images via hierarchical self-supervised learning. Inem>Proceedings of the IEEE/CVF Conference on Computer Vision and Pattern Recognition (pp. 16144-16155).
• 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.
• Hristov, I. and Appolloni, A., 2022. Stakeholders' engagement in the business strategy as a key driver to increase companies' performance: Evidence from managerial and stakeholders' practices.em>Business Strategy and the Environment,em>31(4), pp.1488-1503.
• Issakov, Y., Kamelkhan, G., Imanbekova, B., Zhoya, K., Zheldibayev, A., Molzhigitova, D. and Dávid, L.D., 2023. Study of the problems and prospects of small tourism business development in the city of Almaty.em>GeoJournal of Tourism and Geosites,em>46(1), pp.293-303.
• 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.
• Pompurová, K., Sebova, Ľ. and Scholz, P., 2022. Reimagining the tour operator industry in the post-pandemic period: Is the platform economy a cure or a poison?.em>Cogent Business & Management,em>9(1), p.2034400.
• Wahyuningputri, R.A., Hendra, H., Putra, A.N., Levyta, F. and Djati, S.P., 2022. The role of tour manager in assessing and planning travel opportunities in Covid-19 new normal era for the locals.em>JOURNAL OF TOURISM, CULINARY AND ENTREPRENEURSHIP (JTCE),em>2(1), pp.1-17.

Online

• Law in setting up tour operator business in UK. 2023. Online. Available through: < https://wptravel.io/how-to-start-a-travel-agency-in-the-uk/#:~:text=Register%20the%20travel%20agency%20with,Reference%20(UTR)%20if%20required.&text=Obtain%20the%20necessary%20licences%20and,membership%20for%20specific%20travel%20services.>
• Porter’s analysis of Tour operator business in UK. 2024. Online. Available through: < https://www.ibisworld.com/united-kingdom/market-research-reports/tour-operators-industry/>
• Tour operator industry within UK. 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-
• 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.>

Author Bio

Rebecca Jones   5 years | MBA

Hello, I am Rebecca and I have done an MBA from Edinburgh Business School. The experience gave me good exposure to learning writing skills. I have competed with many academic writers and proved to be among the best ones. I can help you write excellent business assignments as I know all the techniques to grab professors's compliments.