Introduction
The XYZ is a company that thrives in the tourism and hospitality industry. The company has a total of five 4- 5 star hotels as well as 250 3-star motel Franchisees in the USA. This proposal intends to examine how the company will budget for USD$125 million for investments and expansion over the next five years. In addition, various prospective areas of investments, which include the Times Shares Companies, will be considered.
Background
The primary purpose of this proposal is to provide a glimpse on how the company may use the available resources to invest and expand its market niche to other parts of the globe. The analysis offers the picture of the company over the next five years in relation to its present internal and external strategic management systems. This proposal is intended for the approval of the Executive Directors.
The strategic objective of the company on the intended investment and expansion involves a design with the following components
- Increase efficiency of the existing hotels and motels. SVP Finance-Mr. B will help in drafting a budget for this mini-project according to the extent of requirement.
- The executive under the leadership of the CEO- Mr. A, should decide whether to extend the company’s investment to the other parts of the globe or focus on internal investment. Then a clear-cut budget for the intended expansion should be projected.
- In the case of creating a new target implementation strategy, the management through the VP Marketing & Sales- Miss C, should lay down the most efficient marketing strategy that will see effective implementation (Kotler, Philip, Donald, Haider, and Rein, 15).
Investment area
Since most of the executive listed traveling, skiing and sailing, the management should give priority in Time Shares Companies, so that, part of the US$125 million can be allocated to the project. The Time Shares Company will be of immense profitability to the executive shareholders and any other individual who may want to be part of the shareholding in term of reducing the expenditure during vacations (Jagels, Michael, Coltman, and Coltman, 11). The Times shares offers the shareholders a privilege of spending at such resorts and restaurant at the allotted time. This is less expensive compared to the individual vacation spending. The SVP Finance, Mr. B, should be tasked with the duty of feasibility and negotiating for better pricing. This project should be projected along side the intended expansion of the company.
The budget for this project should be minimized because; it does not form the primary investment of the company. The top executive should assess the profitability of the project and the impending obstacles before giving the final affirmation. The dynamism of the structure of the present management team is superior and their consideration of this project will be a great boost for the company, because it will save a lot of expenditure on vacations (Olsen, Michael and Zhao, 27). In addition, the company will increase its profitability level through the shareholders’ contributions.
The action plan and estimate of the Project costs and time scale
This project involves the following purchasing of the required materials, procuring labor and making a period projection. In this case, all the members of the management team have a role to paly to ensure the success of this project. Consider the following table with detailed information on the intended Times Share Companies.
A piece of land that is 1 hectare in size,
The land that will host the Times Share Company will be sourced through and agents and the estimated price of one hectare in Qatar is USD$ 8 million, constructing the intended modern resort will cost an estimate of USD$7 million. The project is anticipated take a duration of one year. In the case of economic and natural uncertainties, a sum of USD$ 3 million is set aside to cater for any work that will remain after the projected period (Ingram, Hadyn, and Ransley, 12). The management team should work in togetherness to ensure that, all the timelines and attributed costs are met. The completion of this project will be a primary boost to the economic growth of the XYZ Company.
Merging the Investments areas with the Directors’ expertise and background
Times Share Companies
This company will have its image shaped by Mr. A, the CEO of XYZ and it is anticipatable that it will gain a good reputation. Mr. B will enhance integration and continued development of the company. Miss. C will market the company in both the local and international spheres. Mr. D, will offer managerial services to the company. Mr. E will organize the operations of the company and ensure reduced costs of delivering high quality serves to the clients. On the other hand, Mr. F will ensure that the IT systems are well-structured and remain functional throughout. Mrs. G will add managerial skills and experience in consultancy to the company. Finally, Mr. H, will carry all the analytic work that relates to finances (Hospitality Investment Survey. He will assist in constructing a financial model that fits the company’s operations.
This study finds out that the serves and responsibilities that will be extended to the other investments: 24hrs restaurants & Car Rental investment are similar to the frits project with the exception of the Car Rental financial model, which is a bit different. This will require Mr. H, to study, the milieu in which this business will thrive and create a relevant model, which will work well in tandem with the management and client’s expectations.
Work cited
Hospitality Investment Survey. Los Angeles, Calif: Pannell Kerr Forster, 2000. Print.
Ingram, Hadyn, and Josef Ransley. Developing Hospitality Properties and Facilities. Oxford: Butterworth-Heinemann, 2004. Internet resource.
Jagels, Martin, Michael M. Coltman, and Michael M. Coltman. Hospitality Management Accounting. Hoboken, N.J: J. Wiley, 2004. Internet resource.
Kotler, Philip, Donald H. Haider, and Irving J. Rein. Marketing Places: Attracting Investment, Industry, and Tourism to Cities, States, and Nations. New York: Free Press, 1993. Print.
Olsen, Michael D, and Jinlin Zhao. Handbook of Hospitality Strategic Management. Amsterdam: Butterworth-Heinemann, 2008. Internet resource.
