Documente Academic
Documente Profesional
Documente Cultură
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DECLARATION OF ORIGINALITY
I hereby declare that this project is entirely my own work and that any additional sources of information
have been duly cited.
I hereby declare that any internet sources, published or unpublished works from I have quoted or drawn
references have been referred fully in the text and in the contents list. I understand that failure to do
this will result in a failure of this project due to plagiarism.
I understand I man be called for a viva and if so must attend. I acknowledge that it is my responsibility to
check whether I am required to attend and that I will be available during the viva period.
Signed:
Shoaib Khan
Date: 17th January 2014
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ACKNOWLEDGEMENT
This project would not have been possible without the kind support and help of many individuals and
organizations. I would like to extend my sincere thanks to all of them.
I am highly indebted to Dr. Simon Speller for his guidance and for being a wonderful coordinator and
also for providing necessary information regarding the project and also for his support in completing the
project. I really appreciate his dedication towards the course and his help for completing the course.
I would like to express my gratitude towards my parents, friends and faculty and staff of Middlesex
University, London for their kind co-operation and encouragement which helped me in completion of
this project.
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Table of Contents
1.
2.
Introduction: ........................................................................................................................... 8
2.2.
2.3.
2.4.
2.5.
2.5.1.
2.6.
3.
4.
Motivational Factors and Attraction for Tourists to Participate in Adventure Sports: ....... 16
Political Instability and Militancy as a Risk Factor: ................................................................ 16
Introduction: ......................................................................................................................... 17
3.2.
3.3.
3.3.1.
Secondary Research:.......................................................................................................... 17
3.3.2.
3.3.2.1.
3.3.2.1.1.
3.3.2.2.
3.3.2.2.1.
3.3.2.3.
3.4.
3.5.
4.2.
4.3.
4.4.
4.4.1.
Product: ............................................................................................................................. 21
4.4.2.
Price:.................................................................................................................................. 22
4.4.3.
Place: ................................................................................................................................. 22
4.4.4.
Promotion: ........................................................................................................................ 23
4.4.5.
4.4.6.
People: .............................................................................................................................. 24
4.4.7.
Process: ............................................................................................................................. 24
4.5.
4.6.
4.7.
4.8.
4.8.1.
Resource Risk:.................................................................................................................... 29
4.8.2.
4.8.3.
Service Quality:.................................................................................................................. 29
4.8.4.
4.8.5.
4.8.6.
Causalities: ........................................................................................................................ 30
4.9.
5.
4.10.
Prospects: .......................................................................................................................... 31
4.10.1.
4.10.2.
4.10.3.
4.10.4.
4.10.5.
Break-even Analysis:.......................................................................................................... 34
Introduction: ......................................................................................................................... 35
5.2.
5.2.1.
5.2.2.
5.2.3.
5.2.4.
5.2.5.
5.2.6.
5.2.7.
Pricing Expectations:.......................................................................................................... 37
5.2.8.
5.2.9.
5.2.10.
5.3.
6.
5.3.1.
5.3.2.
5.4.
5.5.
Conclusion: ............................................................................................................................ 45
Specific: ................................................................................................................................. 46
6.2.
Measurable: .......................................................................................................................... 47
6.3.
Attainable:............................................................................................................................. 47
6.4.
Realistic: ................................................................................................................................ 48
6.5.
Timeframe: ............................................................................................................................ 49
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1. EXECUTIVE SUMMARY
The new business concept is to open an adventure sports company in Kashmir region. Kashmir is one of
the most attractive and intensive tourists place in India. Tourism is the major source of income for
Kashmir and there is lot of opportunities for the new adventure sports business in the city. Kashmir is
located at Northwestern region of Indian subcontinent. Until 19th century Kashmir was geographically
donated as valley between the Pir Panjal mountain region and great Himalayas. Presently it is donated
as large area covering the Indian administrated state of Jammu and Kashmir. Target customers for the
business would be tourists of age 14 to 35 years who visit Kashmir for leisure purpose and local
residents. There is a good potential exist for the business in the region. The services offered to the
customers include rock climbing, bungee jumping, free fall, and rafting, kayaking,
mountaineering, paragliding as key adventure sports. The Kashmir region has major tourist inflow
during the winter season. As per the statistics published by the directorate of J&K, 80% of the hotels and
house boats were occupied in month of January 2013. The Kashmir tourism department is expecting the
overall growth of 2 million inflow of tourists in summer 2014.During the past couple of decades, the
international tourists arrival has been grown up from 435 million to approximately 1 billion with an
annual average growth rate of 5.4%.It has been observed that there is a good growth expected by the
Tourism Ministry of India. It has been predicted that the number of tourists would increase by 15%
every year which is currently standing at 432,890, referred to table 2.3. The projected number of
tourists in 2014 and 2015 is 14734445 and 15829895 respectively and this would be the potential
customers for the new business.
In order to check the business feasibility and viability, primary and secondary research has been
conducted. In primary research questionnaire and interviews are conducted among general consumers
to understand their views and attitude towards adventure sports. Based on the analysis and key findings
obtained, it can be concluded that there is a good opportunity exist for the new business in Kashmir
region. The business need to focus on various aspects of marketing and sales to overcome from
competitive challenges at the initial stage of the business. Excitement, thrill, fun, mood change, stress
buster, enjoyment and relax would be the key motivational factors for tourists to participate in
adventure sports.
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Initially the business will be opened up as a sole proprietorship which would be 100% funded by owners
capital. Minimum capital investment required to start the business is estimated as INR 5 million. The
total sales revenue for the first year is expected to be INR 7.4 million and would reach up-to INR 9
million for the third year. The forecasted profit in the first year of the business is expected to be
approximately INR 1,423,604 and would reach up-to 2,254,113 in the third year. The business is
expecting to reach the break even in 1.8 years.
Potential risks identified for the business includes resource risk, poor response to service offerings,
service quality, militant attacks, economic volatility and causalities.
2. BUSINESS BACKGROUND
2.1. Introduction:
The new business concept is to open adventure sports in Kashmir, as one of the most attractive and
intensive tourists place in India. Tourism is the major source of income for Kashmir and there are lot of
opportunities for the new adventure sports business in the city. Tourism impacted the city at three
different levels namely economic impact, social impact, and environmental impact(Economist.com,
2012). There are various destinations which are the attractive places for adventure sports to tourists.
The tourism industry has significant role in the development of Kashmir and near-by
regions(jktourism.org, n.d.). This literature therefore provides the facts to support the feasibility of the
new business to be opened in Kashmir and background information to develop the business plan for the
new business.
donated
as
valley
between
the
Pir
Panjal
mountain
region
and
great
Himalayas(jktourism.org, n.d.). Presently it is donated as large area covering the Indian administrated
state of Jammu and Kashmir. The current population of the region is approximately 4 million out of
which 95% population belongs to Muslim religion and 4% population belongs to Hindu religion(BBC,
2013). In ancient times, the region was known to the world due to the export of Cashmere Wool to
other region and parts of the world(University, 2012). The economy of the region was badly damaged by
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the earthquake in 2005 which resulted over 70,000 deaths(BBC, 2013). There has been considerable
growth in the GDP of the region as presented in figure 2.1.
The following table 2.1 shows the GDP of Kashmir region for last 12 years and annualized growth.
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The population growth in the region is also significant as presented in figure 2.2 and table 2.2.
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Depending on the different socio-economic indicators the state ranked at 8th place. Per capita income of
the region is INR 24,414 however this figure is quite low as compared to the national figure of INR 33,
283(Knoema(b), 2012). The most attractive aspects for the new businesses in the region are local
government policies and incentives such as 100% excise exemption for 10 years, 100% income tax free
for 5 years, subsidizing the capital investment with the maximum limit of 3 million rupees, land
availability for the period of 90 years on lease basis, a host of incentives for capital goods, loan,
branding, working capital and transportation and finally the insurance premium reimbursement to the
extent of 100% on the capital investment for a period of 10 years to the new business units(BBC, 2013).
The indicator for tourism growth in the Kashmir region is info of tourist during the past 60 ears. The
hotels based in Pahalgam had more than 40% occupancy during the winter season of 2012. The
following table 2.3 shows the inflow of travelers in Kashmir valley since last 60 years.
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percentage of different business segments operating in tourism sector. The new business will use this
information in its sales and marketing approach to attract the tourists by coordinating these business
segments.
Percentage Break-up
9.09%
18.18%
18.18%
9.09%
9.09%
9.09%
9.09%
9.09%
9.09%
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participation in these sports is considered to be very expensive due to the high cost involvement of
trained professionals and expensive gears & equipment. The adventure sport is more appealing to
teenagers and youth. Also most of the companies take their employees on regular tour for these sports
to encourage them and increase their confidence to work as a team in difficult situations. If the right
prices are offered then the local residents can also participate in such sport and phenomenally boost the
industry growth in the region. During the past couple of decades (1990-2012), the international tourists
arrival has been grown up from 435 million to approximately 1 billion with an annual average growth
rate of 5.4% (Chauhan, 2012). The following table 2.5 shows the growth projects for tourists coming in
Kashmir region.
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2.5.1. Motivational Factors and Attraction for Tourists to Participate in Adventure Sports:
There have been several researches conducted in the past to study the sports behavior however very
few are focused towards the motivational aspect to participate in sports. These researches have
demonstrated that the motivation for a given sport i.e. the perceived benefit is not only the physical
health of an individual but number of other aspects such as mood management, enjoyment, fun, weight
control, stress, appearance and excitement(Ottevanger, 2007). There are certain differences between
the perceived benefits of an individual which are helpful to explain the differences in sport participation.
Some factors such as age and gender influence the perception of benefits or motivation to participate in
adventure sports. The researches in the past concluded that there are eight factors which motivates an
individual to participate in the adventure sports namely excitement, thrill, fun, mood change, stress
buster, enjoyment and relax(Fitday.com, n.d.). Few essential reasons for participating in the adventure
sports are improving skills, learning new skills, having fun, be physically fit and be challenged.
Researchers have cited three common threads in their research to analyze the motivation. The first,
several factors yielded the common but consistent factors such as team aspects, competition, fun,
fitness competence and affiliation. Second, children and adolescent are more inclined towards the
adventure sports participation, finally third, there were minimal age, gender and experience to sport
activity (Ottevanger, 2007).
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3.3.2.1.1.
For this research, the target universe is general population of age more than 18 years who belongs to
middle class income group (household income more than INR 25,000) and lives in semi-urban and urban
cities in India. Considering the universe random sampling methodology has been used to select the
samples as it allow equal chance to each person to get selected in a sample. Since the sampling is
random and individual consumers were selected, there are no biasness in the questionnaire response
(Saunders, et al., 2007). The researcher has collected opinion of about 200 respondents.
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respondent for a longer period of time and discussed the desired topics during the interview in a relaxed
and peaceful environment.
3.3.2.2.1.
Researcher has used snowball sampling to find out the target respondents for face to face interviews. In
snowball sampling researcher has identified one respondent who wishes to visit Kashmir region for
leisure in next six months and willing to participate in adventure sports. Respondent has further asked
the respondent to share the references of like-minded people in his circle and developed the database
in the similar way. Researcher has completed 15 face to face interviews.
of 15 as standard practice. According to (Churchill, 2009), if the Chronbachs Alpha score is more than
0.6 then the questionnaire is reliable and acceptable. In the current questionnaire, the Chronbach Alpha
score was 0.78 which shows that questionnaire is reliable and not bias.
The new business will follow the necessary requirements to obtain the license to offer adventure
sports company. In order to ensure the safety during the sports participation of tourists, the new
business will adhere to guidelines laid down by tourists department and obtain the certificate for
professional service from the local government. Some of the legal requirements laid down by the
Ministry of Tourism and Government of India to set-up adventure sports business includes the following:
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4.4.1. Product:
Being into the adventure sports, the business will sell its service instead of any physical product. The
services offered to the customers include rock climbing, bungee jumping, free fall, and rafting,
kayaking, mountaineering, paragliding as key adventure sports. It will attract people who are
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enthusiastic towards these sports, people who want to try these sports as recreation and
business corporates for weekend getaway for their employees.
4.4.2. Price:
Since the business is new and it would need good efforts to attract the customers and remain
competitive in the marketplace. Therefore the new business would offer both customized and standard
packages to customers. The bare minimum price for a particular activity would be ranging from INR 500
to INR 1000 depending on the sports selected. Various promotional offers will be run as described in
the promotion section to attract the customers and pass on the cost benefits depending on which
promotional offer they choose.
4.4.3. Place:
The key competitive advantage for the business would be its online presence in terms of place. A
comprehensive and attractive website will be created to promote the business and create the
awareness. However, the new business will set-up the physical office at central location at Sonmarg. The
business will increase its virtual presence than the physical presence. As a part of strategy, the business
will tie up with hoteliers, shikara owners, houseboat owners and travel & tourism companies to
promote its services among the target customers. These would be the best place to create awareness
and attract the customers. In addition to this website will be the key means of communication where
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the tourists/potential customers can visit and know about the sports activities, related prices, packages,
discounts, promotional offers and many more.
Independent Packages:
1. Selecting any one sport INR 500 INR 1000 depending on sport selected
2. Selecting more than 2 sports Discount 10% on total price
3. Selecting all sports Discount 15% on total price + 1 complementary gift
Collaborative Packages:
1. Selecting any one sport INR 700 INR 1300 depending on sport selected
2. Selecting more than 2 sports Discount 8% on total price
3. Selecting all sports Discount 12% on total price + 1 complementary gift
There will be additional discount of 5% will be offered if more than two person in a group participates in
the sport activity.
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Promotional activities will be marketed through social networking sites, YouTube videos, and search
engine optimization, pamphlets to be placed on reception of hotels, shikara owners, boathouses and
billboards around the Kashmir region.
4.4.6. People:
As per the guidelines and regulations of Ministry of Tourism, only experienced professionals will be
hired for the sports activities and will assist the tourists and supervise them during the adventure sports
activities. Profile of key staff will be published on the website so that it gives the confidence to the
customers that the company has experienced staff and they are safe & secure during the activity.
4.4.7. Process:
In order to book the packages, few options will be offered to the customers. They can book the package
online directly from the company website or bundle the package with other tourists services online
from the facility provided by hotels, tour & travel companies like makemytrip.com, yourtravel.com,
yatra.com etc. Once the package is booked, email confirmation along with the activity timing, reading
manual and other information will be sent to the customers on their desired email id. Based on the
timing schedule they can avail the package and participate in the sports activity on given date and time.
A demo process will be mentioned on the company website itself so that the customers are fully aware
and there should not be any lack of communication.
the website. The business will provide an option to select the preferred and suitable package online and
make the online payment. Online chat option and 24 hours toll-free helpline service will also be
available to the customers for any query. Another mode of selling would be through collaboration with
hotels, shikara owners, boathouse owners and tour & travel companies to promote its adventure sports
service in their service package. The new business will pay appropriate commission to these partners for
each successful sale. The new business will also tie-up with the local taxi operators to get the contact
information of tourists and sell the services.
It has been observed that the key competition for the new business is limited in the region. Some of the
major competitors are Snow Leopard, Wonder Lust and Adventure Sports. None of these companies
have published proper information on website and their fee is too high for adventure sport activities.
The new business will utilize this information to make the website more comprehensive and provide as
much detail as possible to give the comfort to the customers. There will be the following unique selling
points to be used to promote and sell the services:
Human Resource
Administration Support
Trainers
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Information Technology
Driving
Finance
The new business will hire the following staff to run the business operations.
Admin Manager
Number of
Staff
15,000
Trainer
25,000
IT Executive
Driver
1
1
20,000
8,000
Job Responsibilities
Receive the bookings
Preparing weekly MIS
Documentation
Attending customer calls/enquiries
Explain the activities to the customers
Guidance, instructions and supervise the customers
Ensure the security and safety
Equipment testing
Managing the website update and maintenance
IT Maintenance and support
Search Engine Optimization
Online content management
Pick and drop for customers and other transportation
The sales and finance function will be managed by the owner itself. The business will hire the above staff
from experienced human resource consultancy. It will ensure to find out the desired skills in time and
cost efficient manner and right set of people will be hired for relevant job. In addition to this some of
the job portals will also be used for hiring such as Naukri.com, timesjobs.com, monster.com etc. A
robust screening and interview process will be conducted for hiring which will include the written test
followed by couple of rounds of detailed interviews.
On the job training will be provided to each employee to make sure they comply with their job
responsibilities and carry forward the organizational value to achieve higher level of customer
satisfaction. The following table shows the daily pro forma roaster of each employee.
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Start Time
End Time
Owner
Admin Manager
Trainer
IT Executive
Driver
8:30 AM
9:00 AM
9:30 AM
9:30 AM
8:00 AM
9:00 PM
6:00 PM
7:00 PM
7:00 PM
8:30 PM
Owner will be the sole decision maker of the business and all the employees will report to the owner
directly. The following figure shows the organization chart of the business.
Owner
Admin Manager
Trainer 1
Trainer 2
Trainer 3
IT Manager
Trainer 4
Trainer 3
Driver
In terms of equipment for adventure sport, it has been observed that business would need at least INR
10 million of investment. Therefore in the initial years of operations, the business will hire the
equipment on rent.
A comprehensive website will be designed to ensure the online presence. In addition to the company
pages will be crated on social networking sites such as Facebook, LinkedIn, Twitter and regularly update
them to create the awareness among potential customers.
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Start-up
in INR
Start-up Expenses
Salaries
2,016,000
1000000
Stationery etc.
50,000
Rent
240,000
Equipment
Internet Web page
1200000
10,000
100,000
4,616,000
Start-up Assets
Cash Required
Total Requirements
400,000
5,016,000
Number of Staff
Admin Manager
15,000
15,000 x 12 = 180,000
Trainer
25,000
25,000 x 5 x 12 = 1,500,000
IT Executive
20,000
20,000 x 12 = 240,000
Driver
8,000
8,000 x 12 = 96,000
Total
2,016,000
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In order to mitigate this risk, business will use discounting and promotional strategies to encourage the
customers to spend within their budget.
4.8.6. Causalities:
There is always a risk of causalities and life danger during the adventure sports activities specifically
while doing skiing, freefall and mountaineering. In order to mitigate the risk, the rescue operations will
be prepared before start of each sport activity on the spot. Also the casualty insurance will be taken to
recover the losses, if any.
The potential risks and associated strategies underlined in the previous section will be prepared in
advance by analyzing the business environment on regular basis and identify the areas impacted by such
risks. Based on the findings, relevant action will be taken to protect the business from such unseen
event.
A contingency plan will be prepared to successfully implement the activities of business plan. All the
activities will be taken care of by the owner itself. In order to track and monitor the business
performance, weekly sales report will be generated and accordingly undertake the action. Monthly
meetings will be conducted with the hoteliers, Shikara owners, houseboat owners and travel & tour
companies across the region to ensure regular inflow of tourists towards the participation in sports
activities and generating sales.
Customer satisfaction is extremely important for the business to ensure customer loyalty and
generating new business through reference. Hence the business will design a short
questionnaire and ask the customers to fill it after completing the sport activity.
4.10.
Prospects:
Year 1
Year 2
Year 3
Year 1
Year 2
Year 3
Rock climbing
600
750
825
908
450,000
495,000
544,500
Bungee jumping
900
600
660
726
540,000
594,000
653,400
Free fall
700
1,200
1,320
1,452
840,000
924,000
1,016,400
Rafting
500
2,500
2,750
3,025
1,250,000
1,375,000
1,512,500
Kayaking
750
2,200
2,420
2,662
1,650,000
1,815,000
1,996,500
Mountaineering
1,000
750
825
908
750,000
825,000
907,500
Paragliding
1,000
1,000
1,100
1,210
1,000,000
1,100,000
1,210,000
Skiing
1,000
1,000
1,100
1,210
1,000,000
1,100,000
1,210,000
10,000
11,000
12,100
7,480,000
8,228,000
9,050,800
Total
It has been expected that the new business will generate total revenue of INR 7.4 million in the first
year, INR 8.2 million for the second year and INR 9 million for the third year. It shows good growth for
the business in the coming years.
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Year 1
Year 2
Year 3
7,480,000
8,228,000
9,050,800
748,000
822,800
905,080
6,732,000
7,405,200
8,145,720
850,000
935,000
1,028,500
Web Promotion
150,000
165,000
181,500
1,000,000
1,100,000
1,210,000
Utilities
7,480
8,228
9,051
74,800
82,280
90,508
Rent
240,000
240,000
240,000
Equipment
1,200,000
1,200,000
1,200,000
Salaries
2,016,000
2,016,000
2,016,000
Stationery etc.
50,000
50,000
50,000
10,000
10,000
10,000
Gross Margin
Operating Expenses
Marketing & Sales Expenses
100,000
100,000
100,000
3,698,280
3,706,508
3,715,559
4,698,280
4,806,508
4,925,559
2,033,720
2,598,692
3,220,161
610,116
779,608
966,048
1,423,604
1,819,084
2,254,113
Taxes Incurred
Net Profit
The forecasted profit and loss statement shows that the business would be able to generate profit in the
first year of the business with approximately INR 1,423,604, 1,819,084 for the second year and
2,254,113 for the third year.
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Year 1
Year 2
Year 3
5,984,000
6,582,400
7,240,640
119,680
131,648
144,813
6,103,680
6,714,048
7,385,453
Long-term Assets
374,000
411,400
452,540
Accumulated Depreciation
11,220
12,342
13,576
385,220
423,742
466,116
6,488,900
7,137,790
7,851,569
Current Liabilities
648,890
713,779
785,157
Accounts Payable
973,335
1,070,669
1,177,735
Current Borrowing
324,445
356,890
392,578
1,946,670
2,141,337
2,355,471
Paid-in Capital
2,733,406
2,753,627
2,775,869
Earnings
1,423,604
1,819,084
2,254,113
Total Capital
4,157,010
4,572,711
5,029,982
6,103,680
6,714,048
7,385,453
Assets
Current Assets
Cash
Inventory
Total Current Assets
Long-term Assets
Total Assets
Liabilities and Capital
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Year 1
Year 2
Year 3
Cash Sales
5,984,000
6,582,400
7,240,640
5,984,000
6,582,400
7,240,640
1,496,000
1,645,600
1,810,160
1,496,000
1,645,600
1,810,160
Cash Spending
359,040
394,944
434,438
Bill Payments
119,680
131,648
144,813
478,720
526,592
579,251
935,000
1,028,500
1,131,350
149,600
164,560
181,016
1,084,600
1,193,060
1,312,366
411,400
452,540
497,794
Cash Balance
411,400
452,540
497,794
Cash Received
Cash from Operations
Expenses
Break Even
Total Sales = 7,480,000
Variable Cost = 1,232,280
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Based on the calculation, it has been observed the break-even point is 1.8 which mean the business
would be able to earn income after meeting all expenses and cover the cost in 1year and 8 months
time.
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and remaining 50% of the responses were received for Northern region of India which mainly includes
Kashmir, Leh and Laddakh. It signifies that there is a tremendous opportunity exist for the new business
and hence the business will develop robust sales strategy to acquire such customer segment.
Also respondents were asked which adventure sport they want to participate. 15% respondents replied
for Bungee Jumping, 20% replied for water sports, 10% replied for sky diving, 25% replied for
paragliding, 5% replied for rock climbing, 10% replied for free fall and rafting and remaining 15%
replied for kayaking and mountaineering. It shows that the consumers have positive attitude
towards the adventure sports and they would like to enjoy most exciting sports during their travel.
Respondents were probed further to understand their experienced from adventure sport if they
participated in the past. It has been observed that respondents have high motivation and excitement.
They replied that adventure sport is one of the ways to get out of stress and it was amazing experience
in the past from adventure sport activities. 55% of the respondents replied that they had a very good
experience in the past and would like to repeat that experience again, 30% of the respondents relied
that they never participated in adventure sports however they have viewed other trying this and
remaining 15% of the respondents replied that they had a moderate experience in the past. It shows the
majority of respondents have already experienced the adventure sports in the past and they would like
to try this again in the future and hence proves that there is a good opportunities available for the new
business in the market.
INR 250 to INR 700 and remaining 25% replied that the pricing should be more than INR 1500 depending
on the different sports. It signifies that consumers have a well mind set to pay good amount for
participating in the adventure sports. Based on such observation, the minimum price is kept at INR 500
as referred to section 4.15.2.
Further respondents were probed around whether they would attract to avail the service directly or to
be included in the package. About 90% of the respondents replied that they would like to pursue this
service in their package itself and remaining 10% replied that they want to buy this directly from the
provider and should be independent from their travel package.
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Political Factors:
Government policies
Safety guidelines are more stringent
Political risk
Corruption
Taxation policies
Employment act
Pressure groups and lobbying
Government restriction to some spots
Economic Factors:
Cost of living
Interest rates
Inflation rate
Seasonal factors
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Social Factors:
Lifestyle trends
Change in demographics
Rise in disposable income
Changing travel needs of consumers
Buying behavior
Price sensitivity
Online purchase behavior
Influence of social media
Peer group influence
Cultural shifts, beliefs and values
Oil prices (Petroleum)
Militant attacks
Technological Factors:
Internet penetration
E-commerce development
Online travel portals growth
Mobile internet trends
Environmental Factors:
Environmental regulations
Carbon effect
Energy conservation
Legal Factors:
Ethical business
Fair business practices
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It has been observed that political, economic and environmental factors would have large impact on the
business. Within the political factors taxation, government policies and safety guidelines have greater
impact on the business(Chowdhary, 2011). Travel and tourism in Kashmir region is highly sensitive due
to the militant attacks and regular military actions. It might be possible that government could change
its regulatory policies to safeguard the tourists and citizen from such risk factors. The local and state
government policies towards the taxation system is highly instable in the country(Navlakha, 2009). If the
taxation policies are revised then it will directly impact the business profitability. In addition to this, if
the government changes the safety regulations, then there is a possibility that the business need some
major investment to comply with such regulations.
The economic factors which could have greater impact on the business includes inflation rate, interest
rates and rupee versus dollar fluctuation. Over the period of one year, there has been significant change
in the inflation rate. Last year in the same month of January, the inflation rate was 7.74% which have
been fluctuated month by month and currently at 7.52%(Trading Economics, 2013). The fluctuation can
be seen from the following bar graph. Inflation rate can impact the consumer spending power.
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loan. Interest rate on bank loans are continuously increasing. It might impact the debt cost if the
business would expand using bank loans.
Government is very strict for every business to comply with the environmental regulations. In order to
protect the nature as well, strict regulations are imposed by the government and some of the spots are
restricted or penalties are levied to potential harm the nature (Srivastava , n.d.).
Industry Rivalry:
There is a good competition in adventure sports business in Kashmir region.
Some of the major players include Royal Saffari, Kashmir Tours, Shahnama
Tours, Gaffar Kashmir, Kousa and Travel Kashmir(Economist.com, 2012). Apart
from this, there are many local operators who provide adventure sports services
in the region. Hence the industry rivalry power is high in the industry. However
the new business will use robust marketing and sales strategies to quickly grab
the market share and become a leading provide in the adventure sport business.
Buyers Power:
There are several choice available in the market at the doorstep and consumer
can conveniently chose either of them. The services are not high involvement
purchase and therefore immediate decisions can be made. In addition to this
the cost of purchasing the service is not very high(Research Matic, 2012). There
are many options available in the market place to choose from Therefore the
buyers power in the industry is very high.
Suppliers Power:
Suppliers for adventure sports business are only those who provide the
equipment. There are limited number of suppliers in the industry and the
business in planning to hire those equipment on rent. These equipment cannot
be simply used in any other way. Therefore the suppliers power is relatively
weak(Infobanc, n.d.).
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Weakness:
New entrant
Limited resources
Limited capital investment
Equipment are rented
Opportunities:
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Threats:
Highly fragmented market
Intense competition
Militant attacks
Medical causalities
Resource bargaining
Based on the SWOT analysis, it has been observed that the business has enough strength to get hold of
the market and grow with opportunities exist in the market place. A strong marketing and sales
approach can help the business to overcome of its weaknesses. The key competitive advantage for the
business is that both the partners have good experience in travel business and they can quickly grow the
business and establish it as a competitive market player. Further the collaborative approach would help
the business to attract more and more customers which ensure the regular flow of business. Another
benefit to the new business is its experienced staff. It will help the business to provide great comfort
and high level of satisfaction among its target customers and deliver the best to increase the customer
loyalty and get repeat business. Also the satisfied customers would help the business to get new
customers through word-of-mouth marketing.
5.5. Conclusion:
Based on the analysis and key findings obtained, it can be concluded that there is a good opportunity
exist for the new business in Kashmir region. The business need to focus on various aspects of marketing
and sales to overcome from competitive challenges at the initial stage of the business. It would also
require for the business to have collaborative and robust partnership approach with other providers for
travel and tourism services such as hoteliers, Shikara owners, boathouse owners, travel agents and tour
& travel agencies. It will help the business to attract customers and get reference of new customers.
Being a preferred and attractive place for scenic nature, Kashmir would be the optimal location for the
business. There is a robust pricing strategy to be adopted to attract more and more customers and
remain competitive in the market place. Since the buyer power is high in the industry, the business
would need to offer various promotional offers and discounts. One of the potential risks and threats for
the new business would be from militant attacks and consequently the regular military actions in the
region. Due to such threat and attack, there is a usual shutdown of the region during that period and it
could incur potential loss for the business. This is uncontrollable factor and its impact cannot be
minimized.
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6. ACTION PLAN
This section of the business plan describes the action plan to implement and execute the successful
business strategies. The action plan has been described using SMART approach.
6.1. Specific:
In order to establish the business and run it successfully, there are certain goals developed to be
achieved by the business as listed below.
Business owner would be responsible to run the operations and keep track on both short terms and long
term goals. Meeting all the short term and long term objectives, the business would reach in a
competitive position and reach its expected valuation of INR 30 million.
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6.2. Measurable:
In order to track and monitor the progress, a robust management information report will be created.
The report will include weekly and monthly sales information to help the owner to identify the sales
growth, trends and pattern. Accordingly the suitable sales and marketing strategy will be developed to
boost the sales and meet the defined sales targets. The second MIS report will include the customer foot
fall and source of information to know about the sources as well as mode of buying the adventure sport
package. This information will help the business to design the sales strategy focused towards a particular
channel to attract more and more customers and finally boost-up the sales.
Monthly meeting will be conducted with the trainee staff to understand how customers responding to
the services, their satisfaction and if the staff is facing any operational challenge. Depending on the
meeting, the short goals will be set to overcome from operational challenges and deliver the best
services to the customers.
A short survey will be designed and executed from each customer who availed the service to understand
their feedback and satisfaction. The data will be analyzed on monthly basis to understand the gaps in
services, level of dissatisfaction, attitude, behavior and trends. Depending on the analysis and findings,
appropriate action will be taken to achieve high customer loyalty and satisfaction. In addition to this,
analysis will be used to compare the satisfaction results and set the benchmark.
6.3. Attainable:
In order to attain the define goals, there will be few skill sets that needs to be developed within the
internal staff and hire few skills sets.
Content Writing Skills Owner will develop the IT sills and content writing skills to develop the
marketing material for the firm. Newsletter is an important and effective tool for the adventure sports
business as t increase the awareness and excitement among customers to avail services as well as new
development within the organization. A monthly newsletter will be designed and published on the
company website. Further the newsletter will be distributed via emailing and social networking. Other
contents will be developed to be published on social networking sites, company page and keep the
website updated. Owner has the management and business skills, therefore it would be essential for the
owner to acquire content writing skills.
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Customer Relationship and Hospitality Skills - Customer relationship and hospitality skills will be
developed among admin manager and trainers to ensure customer feel happy and satisfied and respect
during their visit and participation in the adventure sports. Owner will also develop those skills to
increase the customer satisfaction at every step of the service.
Sales Skills In order to achieve the revenue targets and profitability, couple of new sales people will be
hired. Only experienced sales people in the industry will be hired so that they start selling the services
from day one and no need for training. Owner will also nourish such skills over a period of time.
Data Analysis Skills In order to get effective use of information from customer satisfaction surveys and
feedback analysis and develop the benchmarking reports, owner will develop the data analysis skills.
Further experienced data analyst will be hired after five years when further expansion is needed and
huge set of data base is developed.
Marketing and Sales Strategy Development Skills In order to develop effective marketing &
communication plan and design robust sales strategy, it is essential for the sales people to understand
the various management concepts. Hence the owner will initially use the management concepts related
to marketing and sales and execute them I practical. Later it will be transferred to the new hire sales
staff.
Apart from the above skills, the business would design the marketing and amend such plan in every six
months to increase its efficiency. Sales plan will be developed every quarter to ensure annual sales
targets are achieved. The business will also acquire few software such as SPSS for data analysis, CRM for
effective customer service and benchmarking to improve the process.
6.4. Realistic:
In order to achieve the underlined goals, all the resources are planned. Sales and revenue related goals
will be achieved through developed sales skills and hiring sales staff. Business operations will be run
mainly by the owner while the key people responsible for the operations include trainees and admin
manager who are already in the plan and will be hired immediately. Further, the expansion of the
business would lead to more workforce and it is already planned to increase the trainers from 5 to 10.
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6.5. Timeframe:
The following Gantt chart outlines the different activities to be performed by the business and
estimated timelines for completion.
Strategy Development
Selection and Closing
Strategy
Market Research
Data Analysis
Business Plan
Marketing Plan
Business Registration
Completing Legal
Formalities
Account Books
Development
Establishing Suppliers
Relationship
Office Equipment
Purchase
Inventory Purchase
Employee Hiring
Business Opening
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Week 4
Week 3
Week 2
Week 1
Sep-14
Week 2
Week 3
Week 4
Week 1
Aug-14
Week 4
Week 3
Week 2
Week 1
Jul-14
Week 4
Week 3
Week 2
Jun-14
Week 1
Week 4
Week 3
Week 2
Week 1
May-14
Week 4
Week 3
Week 2
Week 1
Apr-14
Week 4
Week 3
Week 2
Tasks
Week 1
Mar-14
REFLECTIVE LEARNING
Reflective learning in my opinion provide the clear view of individual in terms what skills he/she
acquired and improvement made after completion s particular task. I am presenting my reflective
learning after completion of business plan to open a new adventure sports company in Kashmir region.
This includes the areas of improvement, skill acquired and challenges faced by me during the
implementation and execution of business plan development.
Before started the business plan, I had a concept in my mind about the business but nothing else. My
researching skill was a bit weak and I was not very sure of how to structure the plan. In addition to this
writing a business plan was my first experience as I never done such tasks in the past. My planning skills
were also poor which could have troubled me during the completion phase of the project. I was aware
of the various sources to get the information about the adventure sports business but I really did not
know how to structure the approach to get all the information and how to fill the gap in the information
if it exist at all. My professional writing skill was also weak as I did not have the idea about how to write
a research report. This was one of my weakest points which I want to overcome since I have to write the
report by my own.
My intellectual skills and personal skills were even though good enough. I had a good knowledge about
secondary research and primary research but had a limited knowledge of executing it into practical. In
order to improve my skills sets and areas where I was weak I had taken several steps.
In order to learn the professional writing, I started reading research related books, management
journals and research reports. It enabled me to gain the knowledge about various research methods. I
have also taken guidance from my supervisor and faculties to gain understanding about the approach as
well as right set of books to read further. I also started reading previous research report from previous
scholars to understand the structuring of sentences in the report, paragraph formation, formatting,
writing style etc. I referred journal articles which contain lot of information about the research
methodologies and approaches and steps that need to be taken care of before starting any research
work. Now I was clear in my mind about how to start the research work. I had taken help from my
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seniors in the college and guidelines provided by university to understand how to design a basic
framework for research for a particular topic.
In order to improve my writing skills I have gone through various research materials, past research
reports, business plans, journals and books. It gave me the confidence to learn professional writing
report. I had amazing experience during the project completion phase.
I used my interpersonal skills to carry out secondary and primary research. I learned various techniques
in both secondary and primary research. In secondary research, I was able to figure out how to extract
the relevant information and I improved my reading skills, vocabulary and analysis skills. In primary
research, I was able to learn project design, sampling approach, and survey design and data analysis
skills.
I improved my intellectual skills through increasing my interaction with general public in Delhi-NCR
region during the interviews. I also listened to conversations on youtube.com which helped me probing
and interviewing the individuals.
Honey and Mumford (1982) presented a framework to describe the learning styles of individuals. The
author stated that, learning process is nothing but a way of acquiring new skills and knowledge by
various means. According to the author, an individual can be activist, theorist, pragmatist and reflector.
Based on the characteristic of learning style, my style of learning is activist. I have learned several things
in this dissertation using problem solving technique and was actively engaged in discussion with my
peers, friends and supervisor. I acquired the knowledge about research methods in this research by
practical implications such as questionnaire designing and executing the questionnaire among target
respondents, collect the primary data and conduct the analysis from the data to draw the conclusion. I
sought new opportunities through created new ideas and more of experience based knowledge. I
learned the writing skills by reading and discussing with my peers.
After completing my business plan, the first knowledge I acquired was how to write a report. It was a
great experience writing a research report which consists of introduction, methodology till data analysis
and conclusion and recommendation. I was able to understand different research methods and I have
improved my researching skills significantly. I was also able to improve my intellectual skills which would
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helpful to me in interacting with people in my professional career. Biggest advantage and knowledge I
gained by completing this business plan is the importance of market & business analysis which is highly
valuable in the professional career path and improved the decision making in a real business situation. I
got good familiarity of various components of business plan.
I had a little knowledge about the business plan and its components. I learned the depth of each
component of business using a role play where I asked my friend to conduct a brain storming session
and generate the ideas to start a business and discussion around various components of business plan
such as marketing and sales strategy, macro environment analysis, human resource strategy, hiring and
selection, financial planning and implementation. In marketing and sales strategy, I was aware of the
theoretical concept such as Marketing 4Ps, Consumer Behavior as studied during my coursework
however I really unfamiliar with applying such concepts in real life situation. While developing the
business plan, I gained the understanding of applying such concepts in real life situation. Similarly I
studied the various components of macro environment analysis such as PESTEL framework, SWOT and
Porters Five Forces but really not applied these concepts in real life situation. In human resource
planning, I acquired the knowledge about recruitment and selection process, how to develop the pro
forma roster, designing the compensation structure, reporting and organizational chart development. I
developed the knowledge further to understand how to prepare the comprehensive financial reports
such as profit & loss account, cash flow statement and balance sheet statement. Finally from the
implementation part I was able to understand how to develop the plan and timeframe design for
completion of each activity. I was able to develop the comprehensive business plan step by step as per
the guidelines provided by university which helped me to gather detailed knowledge for each and every
components and its importance.
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REFERENCES:
Knoema(b), 2012. Jammu & Kashmir, Key Regional Socio-Economic Indicators, 2012. [Online]
Available at: http://knoema.com/MOSPIKRSEI2012/india-key-regional-socio-economic-indicators-2012
[Accessed 22 December 2013].
Knoema, 2012. Jammu & Kashmir - Gross domestic product, constant prices (Percent change). [Online]
Available at: http://knoema.com/atlas/India/Jammu-and-Kashmir/GDP-growth
[Accessed 11 December 2013].
koausa.org, n.d. Adventure Sports in Kashmir. [Online]
Available at: http://www.koausa.org/Nature/Adventure/
[Accessed 15 November 2013].
Mushtaq Ahmad Bhat, N. Q., 2013. Tourist Satisfaction in Kashmir. Journal of Business Theory and
Practice, March, pp. 152-166.
Navlakha, N., 2009. Kashmir: The Clash of Identities. [Online]
Available at: http://www.beyondintractability.org/casestudy/navlakha-kashmir
[Accessed 19 December 2013].
Ottevanger, H.-J., 2007. Sport Tourism: Factors of influence on sport event visit motivation, UK:
Bournemouth University.
Research Matic, 2012. Consumer's Personality Traits And Buying Behaviour. [Online]
Available at: http://www.researchomatic.com/Consumers-Personality-Traits-And-Buying-Behaviour101490.html
[Accessed 13 December 2013].
Saunders, A., Lewis, P. & Thornhill, L., 2007. Research Methodology. 2nd ed. London: McGraw Hill.
Sharma, S., 2011. Jammu and Kashmir: The State Profile , New Delhi: PHD Research Bureau,
PHD Chamber of Commerce and Industry.
Srivastava , R. k., n.d. Jammu & Kashmir: Assembly Election Issues. [Online]
Available at: http://zeenews.india.com/Elections08/JKStory.aspx?aid=482916
[Accessed 11 November 2013].
Trading Economics, 2013. India Inflation Rate. [Online]
Available at: http://www.tradingeconomics.com/india/inflation-cpi
[Accessed 22 December 2013].
University, C., 2012. Kashmir. [Online]
Available at: http://www.infoplease.com/encyclopedia/world/kashmir-land-economy-government.html
[Accessed 2 November 2013].
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