business plan masof hotel

business plan Masof hotel&SPA

Mariusz Wiśniewski & Michał Gronowski

Table of ContentsCompany description..............................................................................................4

Company mission................................................................................................4Services...............................................................................................................4Main info about hotel and staff............................................................................5Development to date..........................................................................................6

Executive Summary...............................................................................................6The Company......................................................................................................6The Company’s Mission.......................................................................................6Products and Services.........................................................................................7Marketing strategy..............................................................................................7The Competition..................................................................................................8

Covering Letter.......................................................................................................8Business description...............................................................................................9Industry analysis and trends................................................................................11

Growth and market long-term opportunities.....................................................11Barriers to entry................................................................................................12The competition................................................................................................13Comparison with Hotel OSSA (current leader):...................................................1Conclusion...........................................................................................................2Advantages over competitors.............................................................................2Barriers to entry..................................................................................................3Seasonality..........................................................................................................3Strategic Opportunities.......................................................................................3

Target market........................................................................................................4Market readiness.................................................................................................5Strategic opportunities........................................................................................5

Strategic position and risk assessment..................................................................6Industry Trends...................................................................................................6Target Markets....................................................................................................7Competitive Environment....................................................................................7Strengths, risks – SWOT analysis........................................................................7Strategic Position................................................................................................8

Masof hotel & SPA | business plan

1

Marketing plan & Sales strategies..........................................................................9Local advertising and seasonal promotions......................................................10Local networking...............................................................................................10Health Care Referrals........................................................................................10Hotel Referrals..................................................................................................11Online website...................................................................................................11

Operations............................................................................................................11First stage.........................................................................................................11Second stage.....................................................................................................12Choice of location..............................................................................................12Objectives.........................................................................................................13Strategic/Operational Goals..............................................................................13

Technology plan...................................................................................................14Software:...........................................................................................................17Hardware:.........................................................................................................17Telecommunications:........................................................................................18Consulting personnel:.......................................................................................18

Management and organization.............................................................................20Advisory committee..........................................................................................22Management style.............................................................................................23Organization culture – recognition of efforts.....................................................24Everybody is equal and has to be aware of it....................................................24Importance of team work and communication..................................................24

Community involved bad social responsibility......................................................25Development, milestones and exit plan...............................................................27

Development.....................................................................................................27Strategies to achieving goals............................................................................27Risk and strategies of avoiding traps in development.......................................27Long term plan..................................................................................................28Strategies of doing business.............................................................................29Table of priorities:.............................................................................................30Milestones.........................................................................................................30

The financials.......................................................................................................32Risks Relating to Debt Financing.......................................................................33Tables................................................................................................................35


2

Balance sheet....................................................................................................36


3

Company description

Masof is a consulting company that is operating as well in accommodation sector & provides wide branch of health services in its SPA centre located at Jarzyny 7 Street in Mikolajki. Main headquarters is situated in Lodz, at 117 Piotrkowska Street.

Company mission

Our aim is to provide customers with plenty of services in order to help them recover and at the same time become relaxed and satisfied due to our attitudes and efforts. We will do so by providing highest level of services like variety of massages, baths and sport activities and other pleasure related facilities. We are a service company that wants to base on strong relationships with our customers and enhance them to come back as often as possible. We want to set relationships and sustain them as to continually persuade customers that we are still and we will be best respondent to their varied needs. Our goal is to be known and perceived as strong customer – oriented organization with reputation of the best in Mazury region. Our goal is to become leader in Warminsko-Mazurskie voivoship region. Our attitudes are about to bring us profits by the beginning of second year of our activity and sustain annual increase in profits year by year. In range of our interest there are mostly people related to business activity.

Services

Masof Company is about „ to be next to the customer” almost all the time, from consulting advices, trainings to accommodation and finally check out from our hotel. We want to serve to our customers, be available for them all the time, support them and help whenever it is needed. We want to form partnership on basis of trust, which highly relies on our performance, which is why we care so much about our Masof hotel & SPA | business plan

4

outputs and their perception by their users. First of all we will provide customers with rooms for one, two and three people. Rooms will be equipped with telephones, Wi-Fi adapters available in reception. We are going to provide as well plenty of programs which include gym activities, relaxing Jacuzzi baths and massages, consultations with diet specialists. There are as well few halls available for trainings and annual meetings of companies. We will offer our customers facilities like swimming pool and two restaurants with variety of Italian, Mexican and traditional Polish cuisine. We offer our visitors access to two pubs and three clubs which are situated next to our resort centre. Our priority is to generate benefits going in pair with customer satisfaction. We will operate during whole year and according to market research and market analysis we are going to generate profits by the end of second year of existence, approximately during summer.

Main info about hotel and staff

General description:

3* Hotel 3 floors, 70 rooms , maximum for 180 people

o 40 for 2 peopleo 20 for 3 peopleo 10 for 4 people

Budget 40’000’000 PLN

Staff:

Maintenance crew – 10 people SPA operators – 3 people Reception – 4 receptionists 6 waiters and 4 cookers Managers(restaurants, pubs, conference halls) - 7 people Help desk – 2 people


5

Development to date

Founded in 2007 by Tomasz Jesion, Masof began operation by providing services related to safety maintenance trainings and basic self-development courses in Region of Warmia and Mazury and Świętokrzyskie voivodships. In March 2009 company opened office in Lodz and in May with previous market research, marketing campaign and brand image creation has begun with expenditures of 100’000 PLN, mainly in Super Express and Gazeta Wyborcza. We were sponsoring as well awards for two logistics events “Process” which took place in January and April to make our potential customers more familiar with our company and its image.

Executive Summary

The Company

Masof Company has its main headquarter in Lodz. Main activities are related to organizing trainings and conferences and Spa maintenance, recovery programs in Mikołajki resort. The company is owned with 45% shares by Tomasz Jesion, 30% of shares belong to Piotr Dorawa, 15 % are in hands of Justyna Nowak and 10% belong to Michał Ochnicki.

The Company’s Mission

Mission is to respond to business people needs according to leisure and recovering and as well handling business events and trainings. Company wants to become leader within its activities in the area of Mazury and further in whole Poland. Masof Company is dedicated and relies on customer relationship management systems, with all information about customers and their interaction with our company according to every aspect. Thanks to that we will be able to adjust our offer and promotions for every single customer, as we will Masof hotel & SPA | business plan

6

have access to his/her history and profile created on basis of experience with our company. Thanks to creating and maintaining business profiles we would know what products and services are commonly accepted, most often chose and at the same time we will posses data and opinion what to work on, what improvements should be undertaken and on the other hand, in which aspects we perform properly.

Products and Services

Our SPA centre in Mikołajki will provide exclusive relaxing programs coverage with massages and healthy baths included. We will as well provide our customers with access to well equipped gym, swimming pool with Jacuzzi baths and fabulous of healthy and delicious food restaurant. Well-equipped with audio and display devices are ready to handle business meetings and trainings.

Marketing strategy

In our aspirations is to build our brand as to be perceived as reliable and solid. We are going to address business people in our campaign. We want to ensure them that we are the ones that are providing services, with which they will be truly satisfied, and no other offer should be considered as we are out of range of our competitors. We want to implement a vision that business trips can be held also in health resort. While making business our clients would have also opportunity to charge their vital batteries and back to job with forces doubled.

The Competition

There is no leader currently in range of services that we want to provide as at Mazury there are few companies rendering as we want. We believe that key is in brand image and accurate marketing attitudes to attract people.Masof hotel & SPA | business plan

7

Covering Letter

Mr Adam GierszMinisterstwo Sportu I TurystykiUl. Senatorska 14, 00-082 Warszawa

Dear Mr Giersz

As a High official in the Ministry of Tourism, you are doubtlessly familiar with abridgement of health resorts presenting extraordinary high standards. Due to counselling of our lawyers I am writing to you as regards to our plan of creating that kind of health resort. We are currently seeking for a strategic investor; considering your pre – cadence of a minister investments we are assured that we can together develop field of future cooperation and business relationship.

Our project can be described as something “fresh” in accommodation sector. Situated in the Mikołajki, our health spa resort will be the biggest and the most luxury facilities in the region. Remote place will offer comfortable sense of privacy, highly demanded by all. Our offer will present wide variety of exclusive relaxing programs with massages and healthy baths. We will as well provide our customers with access to well equipped gym, swimming pool with Jacuzzi baths and fabulous of healthy and delicious food restaurant. One of the most remarkable facts is targeting of our project which will be aimed in the business sector. We want to introduce no way of making business, connecting it with relaxation and all pleasures that situated in bare nature health resort can offer.

All of our investors will be gratified with shares of newly created health centre. We are seeking for the last strategic investor who will be eager to invest about 40’000’000 PLN in the first run. For more detailed description please refer to attached enclosure consisting of our


8

business plan. I truly believe you will be interested in our project and will not hesitate to take part in that prospective investment. I will contact you in proximity of 14 days allowing you to analyse materials. If any questions arise please do not hesitate to contact us.

Your sincerely,Michał Gronowski

Business description

Our business is devoted to managing hotel and SPA resort. Due to our experience in field of holding trainings and courses, we would like to implement a bench of trainings in our hotel. The market is still developing. In Poland there are at least few hotels which are targeted to the business clients as well as to servicing SPA to customers. We want to implement new standards of hotels industry by merging leisure and labour. In our hotel there would a possibility to simultaneously relax and do business, attend to training and to a SPA massage. Our hotel would consist of few conference rooms restaurant, SPA centre and hotel rooms. According to the fact that we are a consulting company we would implement set of business trainings which may attract potential business clients and normal people staying in our hotel.

The key factors that will drive further visitor number growth, and hence room demand, in Polish hotels:

Poland is strategically located between Germany and the emerging markets of the CIS countries. After Poland joined the EU in May 2004, the country’s eastern borders became part of the EU’s external borders and a perfect point of entry to Eastern European markets.

While the Economist Intelligence Unit’s (EIU) country forecast (February 2005) has forecast a slowdown in GDP growth to 4.3%


9

in 2005 and 4.0% in 2006, this growth is still above that of many EU countries.

Foreign direct investment has increased at a compound annual growth rate of over 38% since 1993.

Polish companies have experienced strong financial growth and, despite disappointing levels of investment in 2004, there is expected to be a rebound in investment in 2005–06.

Between 2007 and 2011, emphasis is likely to shift from privatization to greenfield investments, and inflows of foreign direct investments should remain strong, with red tape reduced to facilitate further investment. The restructuring and eventual privatization of the financial sector.


10

Industry analysis and trends

Masof Company’s aim is to develop and become better in its performance according to three aspects: providing trainings, SPA services and accommodation. Following table represents past and future growth considering our activity and approaches:

Past and future growth of our business sector

Area of activity Past Growth Future Growth1. Training Medium High2. SPA services Low Medium3. Accommodation Low Medium

Growth and market long-term opportunities

As we are experienced in terms of conducting trainings but current trends point this aspect to develop and increase at most. Many young people start to think about their carrier during studies, and take up training, practices during studies, not to have blank CV after graduation. This is our main activity and we plan to focus and stay up to date with this issue. We have got no experience in sphere of rendering SPA services and providing accommodation and all other hotel related activities and recent trends show increase in this area of activity, mainly because of EURO 2012 that will be held in Poland and Ukraine, and many tourists from around the world are expected to visit our country. Of course those won’t be only football supporters or ordinary tourists. Business people well also have more meetings in Poland as it develops and becomes more attractive for potential investors. Current research presents that in 2010 the demand is increasing and is coming up board line of supply which represents a need for hotels, as simple as that. Making usage of this aspect we have to as well attract new-comers and make them come back again. As a Masof hotel & SPA | business plan

11

result, we decided to stress on constant development approach and what is obvious we want to increase growth of our SPA and accommodation activity as much as possible. We want to become well-qualified in SPA and hotel services, but we do not want to speed up that much, because we have to know that we are absorbing and acquiring all necessary info appropriately in order it will be useful. In other words, we want to learn as much as possible, and being in a hurry does not help and may influence future level of services, satisfaction of our customers and may result in different brand perception that we planned. We want to be solid and become a leader that is why everything is well-thought and there is only effort to stick to plan and consequently realize, step by step our strategy towards success.

Barriers to entry

It is not that easy to enter market as costs are high, both related to rising a business and maintenance as well. For consulting companies it is not as well a piece of cake to enter market, mainly because reliable and knowledgeable people are needed to render advices. From the beginning we are going to base on our co-operators with whom we were working before considering hotel building. We believe that it is a good start point to become noticeable on the market.


12

The competition

Market that we want to enter consists of following companies, which are in fact our main competitors as area of activity is similar and standard of services is comparable:

Hotel Ossa Hotel Zalesie Hotel Zamek Ryn Hotel Ognisty Ptak Hotel Gołębiewski Hotel Platinum Hotel Azzun Hotel Masuria


13

28%

8%

6%

14%

12%

9%

9%

11%4%

Potential Market share in Warmia & Mazury region

OssaZamek RynOgnisty PtakGołębiewskiPlatinumAzzunMasuriaZaleseOthers

The hotel industry is highly competitive. Competition is generally based on quality and consistency of room, restaurant and meeting facilities and services, attractiveness of locations, availability of a global distribution system, price, the ability to earn and redeem loyalty program points and other factors. Management believes that we compete favourably in these areas. Our properties compete with other hotels and resorts, including facilities owned by local interests and facilities owned by national and international chains. Our principal competitors include other hotel operating companies, national and international hotel brands, and ownership companies.

We encounter strong competition as a hotel, residential, resort and vacation ownership operator and developer. While some of our competitors are private management firms, several are large national and international chains that own and operate their own hotels, as well as manage hotels for third-party owners and develop. Changes in the general availability of suitable land or the cost of acquiring or developing such land could adversely impact the profitability of our vacation ownership and residential business.

Comparison with Hotel OSSA (current leader):

Factor / Hotel Name

Masof Hotel Ossa

Location Mikołajki, Jarzyny 7 Street, center, surrounding : pubs, clubs, restaurants

Rawa Mazowiecka, surroundings: restaurant, couple of restaurants and pubs

Working hours Hotel is opened 24/7 and Business Center 8 -22.

Hotel and business center is opened 24hours/7 days.

1. Restaurant2. Sport

1. +2. +

1. +2. +


14

Center3. Car

Parking (own) for 100 cars

4. swimming pool

5. business centre, min 4 conference rooms

3. +4. +5. +

3. +4. +5. +

Advertisement Newspaper, , Internet, , Leaflets, brochures, local events, local authorities

Internet, newspapers, business events

Standard

Prices 120-2800 PLN 310 – 3750 PLN

Conclusion

The general conclusion is that Hotel Ossa provides good services on a good, appreciable level. The first step to gain market share, satisfactory in order to get majority, is to catch up to Ossa as its performance should be investigated and followed somehow.

Advantages over competitors

Our main advantage is that many of previously mentioned Hotels have got experience and knowledge how to maintain and operate as hotel but are not that much familiar with handling specific business events or conducting training. Even though, Tourism and accommodation are issues slightly new for us, we


15

can see a potential in rendering advisory services and trainings as it is the core activity of our organization.

Barriers to entry

It is extremely hard to enter this kind of market as a lot of capital should support business, a lot of experience should stand as fundament in terms of rising activity. Operating in region of Warmia & Mazury, despite big competition, is promising as recent trends show. Even though, there are many centres, which try to consist of as many facilities as possible, our target market is increasing and opportunity of addressing our campaigns and offers to foreign business people is appropriate as there is constant increase in tourism activities around Warmia & Mazury.

Seasonality

The hotel industry is seasonal in nature; however, the periods during which our properties experience higher revenue activities vary from situation on the market and depend principally upon increasing and decreasing trends. Generally, our revenues and operating income will have been lower in the first quarter than in the second, third or fourth quarters. Masof is operating during whole year and our aim is to make an effort to attract people come to us whenever it is spring or a winter.

Strategic Opportunities

We are considering two factors – satisfaction that occurs as a result of training and satisfaction after staying at the hotel.

Hotels:

Satisfied trainees – 15% Somewhat satisfied – 20% Somewhat dissatisfied – 45%


16

Highly dissatisfied – 20%

Training:

Highly satisfied – 15% Somewhat satisfied – 30% Somewhat dissatisfied – 35% Highly dissatisfied – 20%

As it is presented above, results are satisfactory and this is the aspect where our company can see chance for success. We are new in hotel industry that is why we need to catch up to competitors. We are not afraid as we believe that there is still a lot to learn from them. In case of trainings we believe that we will persuade customers and it all will end up with satisfaction and recommendation to others. We believe in ourselves as we were given certificates and diplomas (of our employees) assuring our abilities, skills and current achievements.

Target market

There has been a remarkable increase In global demand in tourism in recent years and this situation as well applies for investments in Poland, especially in Warmia & Mazury region, which is quite promising and as well supporting our efforts.

This region is attractive mainly because of nature monuments, which are in fact complex lakes and sailing in fact influences as well demand creation. In terms of conducting trainings – it is as well considered place of this training and the advantage is that conditions that we provide and conditions of environment in which we operate enable to relax and as well better focus on absorbing new information, exceeding and broadening area of skills. Mazury region is full of calmness, fresh air and that for sure influences process of learning and recovering


17

after all. This is additional advantage that we in fact include in proposals for our business customers – “learn and rest as you deserve it”.

In sphere of our interest, our hotel and consulting, SPA resorts are:

Business people that will take part in trainings in our center, conduct them and we believe that they will constitute about 55-60% of all our clients

20-30 % makes up for tourists looking for relax and recovery assured by our services

About 10% are people considering our services in terms of occasional events

Market readiness

Recent research represents data that reflect to needs of business sector employers, as follows:

95 % of employers look for employees able to cope with stress – need for conducting these kind of trainings

82% require knowledge and ability to work in teams 77% look for people using at least one foreign language 67% seek for employees with basic IT skills – Excel, Word and

Access

Strategic opportunities

On basis of demand for trainings and courses we consider ourselves needed in the market as we will be able to conduct and maintain reliable trainings, courses and after all accommodation.


18

Strategic position and risk assessment

Masof goal is to become leader SPA centre and business events maintenance holder in Mazury region. To achieve this goal we have and still will be developing strategic position that emphasizes:

Plenty of conference halls and training rooms Recovery programs adjusted to single customer , especially

towards his or her needs and requirements Consultation with diet specialist and as follows meals prepared

exactly according to guidelines Private consultant in terms of sport activities during recovery at

our SPA centre

Masof’s strategic position is based on analysis of following aspects:

A. Industry trendsB. Our target MarketsC. The Competitive environmentD. Strengths and weaknesses - SWOT

Industry Trends

Trends in our sector ten to diversify in order to respond to wider branch of customers, that is why innovations connected with leisure are needed. Nowadays lying on a deckchair next to the swimming pool is not the most sophisticated way of spending free time. What is to be emphasized is variety of services provided to customers, not to bore them, not to make them overwhelmed but attract and make feel comfortable.


19

Target Markets

Our target market is corporate environment with willingness to tag business expedition and trainings with relaxing services.

Competitive Environment

There is currently one noticeable competitor in Mazury region and we are full of faith that we can be not only competitive. We are aware of our ideas that are why we want to become leader in those kinds of services provided. That encourages us to take up action and as follows build strong relationships with our target market and finally establish permanent relationship with our customers.

Strengths, risks – SWOT analysis

Strengths:

We are well-organized and confident about mission and vision, we know what are our ambitions and why, what and how we want to achieve success

Capital – we have got financial stability Sufficient equipment and facilities that represents flexibility of our

company with varied offers and extras Well qualified and skilled employees will help us provide, maintain

and sustain high brand level and good image of company Broad range of services, variety of offers At the beginning – pricing methods to attract customers, which

results in acceptable and attractive prices, then we will sustain certain level of prices – commonly acceptable but still lower or similar to our competitors


20

Weaknesses:

We are new at the market, we have to find out about common trends and requirements, not only to be up to date but as well make an effort to become a leader

Lack of experience in sphere of hotel maintenance

Opportunities:

Technology – staying up to date we will be able to sustain brand image and maintain brand image and as well high level of services for our customers

Becoming leader in accommodation/trainings/business events in Warmia & Mazury region, then exceeding services to whole Poland

Attracting business people from other countries – increase of inflows and profits

Threats:

There are Hotels that are operating in the market much longer than we are – big experience and ability to understand behavior of customers, common trends and phenomena’s

We will not be able to catch up to competitors Already existing companies with similar profile and area of

activities We need to observe as well small competitors that operate only in

sphere of tourism, not to miss potential customers in our region of interest

Strategic Position

Analysing previously mentioned factors we came to conclusions that the biggest challenge is to enter market with well organized marketing campaign and build solid market position.


21

Later on we will persuade customers to take advantage of variety and quality of provided services.

We are confident that even in terms of high competitiveness in future we will be able to keep our position that in fact will be supported by our customers and corporation environment; management department employees will perceive us as we will work on.

Offering facilities will as well enhance decision people to trust our offer because key in our activities is diversification amongst fulfilling needs.

To achieve this strategic position in market we will of course need support from our qualified personnel. We recognize that their skills and abilities, patience and openness joined with effectiveness will assure customers, who are best to be picked.

Marketing plan & Sales strategies

Our firm can be easily recognized on the market because of high standards of presented offer and outstanding approach to both business and private clients.

One of the most important objectives for our company is producing a product which will be universal in several dimensions and still highly tailored to personal expectances that is why we decided to use concentration strategy. The slogans “we have all your dreams” and “business with us it’s a pleasure” presents that we are constantly a step ahead our clients’ expectances and our offer is constantly evolving to suit the clients in the best possible way.. The second slogan addressed to business clients devotes that our facility gives opportunity to merge business with relaxation in our spa resort. Assure also that we meet highest


22

standards in holding business activities in our offer. Differentiated trainings by the level of experience and knowledge in the topics give opportunity for participation for all clients interested in the topic. We are constantly about to assure our customers that co-operation with us is one of the best opportunities for them

We plan to implement promotion in the following plan:

Local advertising and seasonal promotions

Local newspaper advertising, local fliers, grand opening party kick-off and promotion for first 30 days. Continue regular advertising and plan for seasonal events like Christmas, valentine’s day, mother’s day, prom and New Year’s Eve. Promotion of business events and their maintenance with our facilities.

Local networking

Charities, women’s groups, country clubs, wedding planners, and membership with the Metropolis Chamber of Commerce in order to inform, persuade and be just next to our client.

Health Care Referrals

Prior to opening, work current contacts and create new contacts with health care providers. Also become a provider with health insurance companies that offer alternative care to their members. Most people don’t know that massage therapy is usually paid by insurance when billed correctly and when prescribed by a physician. Day Spa already has practice management software to handle medically billable massage. When the insurance does not cover the entire amount of a service the client will pay the difference. A list of acceptable insurance company plans will be maintained and those clients will be able to


23

handle massage therapy through their insurance. Any opportunity to convince allopathic physicians – MDs – to see SPA as having long term healing benefits for their patients will also be taken, since they hold to key to having spa activities paid for as “ medically necessary”. The clients will also help drive that with the physicians if they are properly educated.

Hotel Referrals

Hotels that does not offer own spa services will send their guests to our spa or use our out-call spa services. Promotions will be offered to professionals in these industries to create buzz and build relationships, co-operate, exchange know-how and as follows to have a chance to develop and keep innovation-focused approach.

Online website

Our spa will show up on every major search engine and in the phone directory. The website will have a full menu services and eventually have the ability to schedule appointments on-line. The spa software we are using will allow a user to see the schedule and make an appointment without making a phone call.

Operations

First stage

One of the most important objectives for our company is generating output which will be universal in several dimensions and still highly tailored to personal expectances. We hope that our resort is one of a kind. Presenting this sort of solution on the market gives us the opportunity to fully take advantage of what we can offer. Our proposal for clients consists of well equipped


24

spa centre and four conference rooms. Due to our experience as a consulting company we want to continue offering our trainings which will be available for everyone who stays in our resort but what is more, we are supporting ourselves with all necessary equipment needed for handling trainings, meeting and related to business activity sphere. Advertisements will be also present on our website. Clients who will be our guests at a moment and would like to participate in the course will be honoured with discount dependent on the longitude of their visit and, basis on our customer relationship system, on their general participation related to our business existence, profile and experiences. We are also opened for corporations who would want to conduct their own courses in our facilities. The method works the other way round so if business clients who are staying only for the conferences would want to take advantage from a spa centre will get a discount on the same rules. Discounts will be also available for clients who want to purely enjoy the nature and benefit just from the location. We also propose door to door courses, in which we are able to prepare previously discussed course and conduct it in the third party firm’s location.

Second stage

In the second stage of our operations we would want to implement bench of outstanding integrating events for stuff teams and managers who will be able to find themselves in new situations like orientation runs or survival micro expeditions. Experiences involved on such events could be easily transferred to daily situations and real life problems and help in enduring bonds between co-workers.


25

Choice of location

The choice of location was one of the major points. We were hoping to find the remedy for distant places resorts and noisy one due to urbanization in the proximity. The settlement in the Mazury region, benefit us with possibility to attract clients with healthy environment situated remotely form the crowded capital city of Warsaw. However it is still near enough to be comfortable for business sector of clients, who want to participate in courses or make their own in our facility.

Objectives

As a consumer lifestyle company with a branded hotel portfolio at its core, the Company operates in a competitive, dynamic and challenging business environment. In step with this mission and environment, it has the following key objective:

• Attract and Retain: We seek to attract and retain talented executives from within and outside the hotel and accommodation industry who understand the importance of innovation, brand enhancement and consumer experience. We are working to reinvent the hotel and accommodation industry, and one element of our plan is to bring in key talent from other industries. Therefore, overall program competitiveness must take these other markets into account.

• Motivate: We seek to motivate our executives to sustain high performance and achieve Company financial and strategic/operational goals over the course of business cycles and various market conditions.

Strategic/Operational Goals

The strategic/operational performance goals for our Company under the Executive Plan consists of “Big 5” and


26

leadership competency objectives that link individual contributions to execution of our business strategy and major financial and operating goals. “Big 5” refers to each executive’s specific deliverables within the Company’s critical performance categories — win with talent, execute brilliantly, build great brands, deliver global growth, and drive outstanding results. As part of a structured process that cascades down throughout the Company, these objectives are developed at the beginning of the year, and they integrate and align an executive with the Company’s strategic and operational plan.

Technology plan

Masof is a consulting company that owes resort and as it is obvious, technology is crucial aspect in terms of our activity. We must always follow trends, technology innovations and maintenance because of two reasons. First is that we want to sustain our employees in self-development approach. By enabling them access to technology they not only become familiar with technology that is implemented in our business and at the same time is supporting it but our employees are becoming experts in sphere of used technology, which result in increase of experience, development of skills and of course meets with job satisfaction and self esteem at high level. Second reason why we have to stay up to date with technological issues is that our services highly rely on that.

What we are stressing on and want to be certain about is that our employees are fully capable in terms of usage of our technology. In our consulting centre people need to be trained and gain appropriate certificates to ensure us and at the same time be aware of their own abilities in order to provide successful


27

service. People responsible for all SPA supporting devices like hydro massage initiator systems, peeling brushes, bath steering systems have to know exactly how those devices work, what are their features and in case something goes wrong, they are empowered to fix any problems because of being well-oriented and familiar with this technology. Employees responsible for conferences maintenance as well have to be skilled and informed in terms of audio and display devices, computers and all supporting software and hardware because those are people who have direct contact with our customers, those are people who represent our company and one of the most important tangible profs of our company image, its consistency and professionalism. Even people responsible for checking our customer in have to be skilled in computer usage, database management systems maintenance and they have to know where to locate information and if necessary, where to look for needed one.

We cannot forget that we are not only offering our customers conference maintenance but as well we are providing much training for our customers. To enable our participant acknowledge every aspect of presentation, every aspect of training we have to stress on way of passing information and knowledge which also highly relies on technology. We cannot provide our trainees with raw materials, dry information that trainer says. We have to make sure that trainee is interested in training and our aim is to make as much as it is possible for him to acquire knowledge as fast as possible and as much as it is distributed to him. That is why we have to be up to date for example with projectors and maintenance systems, with audio systems and sounds and visualization not only diversify how knowledge is presented and passed but it’s aim is as well keep our trainee with trainer, make him follow what is going on,


28

attracting him and making him feel comfortable in whole process. We lease our computers during trainings that is why, if we want to sustain close relationships with our customers, if we want to benefit from them we have to make provide them appropriate equipment, provide conditions that will result in satisfaction. Printers and copiers have to be as well at high speed as trainees would have access to case studies and materials that would be needed in their future life.

We have to remember that we have got our internal local area network and we have to choose best supporting software and hardware to provide high-speed Internet access both for our employees in consulting centre but and for our resort quests as it is one of plenty facilities provided, even that it is one of many, it has the same level of importance, the same influence on future perception and brand image of our company

Technology is very important not only to keep our customers delighted with our outputs, our services but as well to stay in touch with those customers, in letting know that we are in the market and attracting new customers with our offers, persuading to choose our offer. We are handling our website, where we are presenting current prices related to our services and all special offers for our users and guests. Internet is channel of communication that is why we have to be still in touch with those who have already chosen our offer and those potential ones who will, hopefully, decide to co-operate with us. It is important because we are not only distributing information about our equipment and plenty of facilities, but we can as well provide our customers with on-line cameras showing what is going on in our resort, movies and pictures representing our facilities which is also important in process of persuasion of customers. We are allowing our customers to check in on-line as well.


29

What is more, we are providing additional assistance after training sections. We are handling all materials on our database and those who wish can be provided with password-protected areas where all presentations and materials used during their training sections are maintained, and because of that if somebody is not certain about any issue, he or she can get to information on our site – distance learning and reviewing support approach.

We have come up with our company’s’ needs and areas that utilize technology, which are divided into four parts:

Software:

Accounting operations system – handling all inflows and outflows Finance system supervision of our company’s’ situation Inventory and goods management systems Communication channels with our business co-operators Inventory maintenance reports Communication with customers and as well amongst our

employees (managers, board directors) Human resources management, databases with employees data Database materials maintenance – materials that customers may

review Website – internet marketing Room entrance system and cards Customer relationship management systems and database –

maintenance of relationship, tightening it

Hardware:

Desktop computers – for reception and offices, accounting department, management

Room entrance card readers Portable computers for our trainers


30

Printers and copiers – 1 in each conference hall, 2 in reception, 1 in each manager’s office

One Transmitter - Wi-Fi connection in hotel Credit card readers – customers are paying with card for extras Server responsible for Internet maintenance, website

maintenance, situated in server room, next to the reception USB Wi-Fi adapters – peripherals for customers Server responsible for backuping information

Telecommunications:

Fax machine – one in reception and one in each managers room Phone site –central is in the reception and one phone is located in

every guests room, manager’s office, conference hall Portable phones and pagers– only internal connection set, for

employees, staff, managers to contact with each other Internet access – 20Mbs connection by Netia

Consulting personnel:

Systems design/maintenance – system for maintenance and enabling information from hotel database and consulting company database

Technical support/ help desk – reception gathers information about problems and contacts people from our help desk staff (2 people)

As we have to be aware of future costs we decided to present it in table. Contents are related to technology usage and maintenance and are necessary to sustain level of our services. Technology and costs are as follows:


31

Year 1

Year 2

Year 3

Year 4

Year 5

SoftwareAccounting 6000 5500 5500 5500 5500I&G management system

4000 4000 4000 4000 4000

HRM database system

1500 1200 1200 1200 1200

Communication channels

1000 1000 1000 1000 1000

Entrance Cards 800 800 800 800 800HardwareDesktop computers 8000 8000 8000 8000 8000Card readers 3000 3000 3000 3000 3000Portable Computers 6000 6000 6000 6000 6000Wi-Fi Transmitter 10000 10000 10000 10000 10000Credit card readers 1500 1200 1200 1200 1200Server 20000 20000 20000 20000 20000Peripherals 3000 3000 3000 3000 3000Printers and copiers 2000 2000 1500 1500 1500TelecommunicationsFax machine 1000 1000 900 900 900Portable phones and pagers

2000 2000 2000 2000 2000

External phones 3000 3000 3000 2750 2750Internet access maintenance

1500 1500 1500 1500 1500

Consulting personnelSystem design/maintenance

5000 5000 5000 5000 5000

Technology support/help desk

4000 4000 4000 4000 4000

Total 83300 82200 81600 81350 81350


32

Management and organizationOur organization structure is designed in order to enable

successful communication amongst all departments. We distinguish following departments:

Directors Board – stakeholders and shareholders responsible for crucial decision and problem solving activities. Their role is to represent company and supervise it.

Advisory Committee – they are supervising prospering of hotel, spa, restaurants, pubs and clubs. They are cooperating with Board of Directors and support them with their knowledge about company and processes that take place within company.

Human Resources Department – Their duties concern interviewing and employing people, organizing social events, organizing trainings and places where trainings will be held. They are gathering information about employees’ effectiveness, fulfilling duties – general work performance aspects. They are to be informed when employee will not be present at work.

Accounting department – they deal with all accounting issues from balance sheet preparation, income statements, cash flow statements to calculating wages and salaries of all employees.

IT maintenance – they sustain high level of IT effectiveness and deal with any mistakes and errors in terms of IT devices.

Marketing department – responsible for delivering our offers to customers, letting them know about our current activities and promotions. Involved in campaigns, communication with media, events creation, direct marketing, sales promotions and sponsorship activities.

Maintenance department – last group is classified as employees not related to previous groups. These include cleaning staff, maintenance of inventory and facilities, reception staff and so on.


33

CEO

HRM Accounting Marketing IT Maintenance

Advisory board

We stress on information flow and good communication that is why we decided to take up horizontal structure with elements of vertical one:

Following table presents members of Board of Directors and their main compensation in company:

Name & Surname

Position

% of shares

Professional Expertise

Tomasz Jesion

CEO 40 Finance Quality management Negotiations with

clients and co-operators

Piotr Dorawa CEO 35 Strategic Management

Crisis management Change management Day-to-day operations

Justyna Nowak

CEO 15 Accounting HRM Policies

Michał Ochnicki

CEO 10 IT Process Quality Logistics Distribution channels

Meetings of Board of Directors are held twice a month. List of responsibilities:

Implementing changes and innovations Supervising all logistics processes Problem solving in case of crisis


34

Sustain key cultural values of company Distribute information appropriately ( inform about decisions) State risk management and crisis management policies

Advisory committee

Meetings are held twice a week. These people are supporting CEOs with their knowledge and skills. They prepare reports concerning areas of activities and general comments about performance.

Name & Surname

Position Experience Area of interest

Maciej Kornacki

Member of Ac

2000-2009Finance consultant in MoneyPro

Finance Logistics

Maciej Wściubiak

Member of Ac

2003-2005IT support in Hestia

2006-2009HRM manager in IKEA (Targówek)

IT support HRM support

Norbert Mazur

Member of Ac

2000-2008Marketing department manager in Unilever

Marketing Maintenance

and quality of services


35

Management style

From the beginning employee is assigned to his job by recognizing his skills and abilities. From the beginning employee is informed what is the area of his/her interest, what are his/her duties, what are company’s’ policies (e.g. full time employees have got 26 days of holiday a year) and what are his rights and on basis of it he will be assessed. We are creating environment in which employee will feel comfortable, will have opportunities to develop himself or herself and we expect him to fulfil duties properly – according to rules and policies. He has present values that are key one’s in organizational culture. Employee is responsible to obey commonly existing rights and hierarchies.

Organization culture – recognition of efforts

Everything which takes place within Masof Company highly relies on organization culture. We recognize every employee as a skilful and dedicated towards work. We care and reward efforts because employee’s contribution in work as to come from inside of him, from motivation and job satisfaction, not only from work description, job assignment and management decisions. We respect employees opinion, as everybody has right to speak loud and clear. We care about employees’ observation because this is factor that influences our development approach. As we are aware that some aspects are visible from other sides, we rely on employees’ opinion and that is why we reward any helpful suggestion.

Everybody is equal and has to be aware of it

We perceive every employee in the same way. Everybody’s contribution is equally important for company and each that is why we stress on awareness of duties importance, how single


36

input affects general outcome of company. Every employee is allowed to make suggestions, to be rewarded for effort.

Importance of team work and communicationTeam work in Masof Company is basis of success and lets

our company to perform as well as we wish, that is why we want to sustain this attitude. Our employees have to be able to share work, co-operate and help each other to see positive results. Crucial in this approach is influence of communication which is promoted and mentioned in every statement of our company. Employees are taught by experience how important is flow of information, what are positive results of co-operation and that “none of us is as strong as all of us”.

Community involved bad social responsibilityi

A

Asse

ss Whatever we do is relevant for our business as well as society. We are considering all issues that affect our company and markets and find solutions to them. Think about the issues that affect our company, staff and.

C

Com

mit

Clear ethical values from the top down. A leader – manager who would guide and manage with commitment whole facility. He has to model the behaviour of workers they want to see in their co-workers if they are going to be credible. They also need to be given the authority to make any necessary changes.

T Tell

Set out our ethical and business cases, communicate them and promote them at every opportunity. We make responsible business an agenda item on all team meetings. We would put impact on communicating with staff, clients, customers, suppliers and others. Establish effective, two-way dialogue is crucial. There are real business benefits to informing people through local/trade press, notice boards, newsletters, websites and achieving awards.


37

IIn

tegr

ate

We would make responsible business behaviour across different functions and activities within the business. Identify issues that are affecting your bottom line and how responsible business practices can help address these. List the risks that your company faces or might face and the actions you need to take to address these.

O

Orga

nise

We will prepare project management rich in details and resources, relevant for business and set targets. We take a look at building a long term relationship with community organisation/s. Also collate the results and thank any staff for their involvement.

N

Nurtu

re

We involve our clients and supply chain. Once our programmes are established we can have greater impact and raise our profile by widening our resources. We will measure and report what we are doing and feedback that learning into our business planning. Measuring the benefits we have made to the business and the wider community helps motivate staff, customers and investors. Reporting can be done informally through word of mouth, staff team briefings, presentations to business networks or more formally through management systems and achieving relevant standards.

Hotels play an important role in the tourism and travel industry, which contributes to the economic development of local communities around the world. Our ambition is to take a leadership role in the area of Responsible Business within the international hospitality industry, and to achieve full recognition of this position and to enjoy value growth as a result of it. We realise that we cannot thrive without the help of the community and the surrounding environment. We take our role seriously; facilitating for the preservation of local traditions as well as supporting the protection of cultural heritage sites and the natural environment. A tourism industry that grows without regard for the community and environment, risks destroying the vital resources it depends upon. Moreover, a poorly planned and irresponsible expansion of the tourism sector can result in overcrowding. The consequences of too many people in one place, all demanding resources and generating waste, can be difficult for a community to manage. Ultimately, this may lead to harmful effects on the cultural and natural heritage, which will Masof hotel & SPA | business plan

38

ultimately detract from the tourist experience. To do our share, we have implemented the Responsible Business programme, with policies, objectives and benchmarking indicators. We have equipped stuff with several tools to better manage their local cultural heritage, community involvement, employee well-being, health and safety and environmental performance. The CEOs have the authority and all the necessary tools and facilities to optimise the performance of the property they run. This is followed up on an annual basis through an Intranet based reporting tool. With our Responsible Business programme in place, we feel well equipped to meet current and future community problems.

Development, milestones and exit plan

Development

According to our previous analysis and assumptions we can conjecture that Masof business hotel and spa will steadily grow during few upcoming years, gathering more and more of market share and building image of a comfortable place where business meets leisure

Strategies to achieving goals

In order to develop steadily we would have to observe the market and be aware of the situations on it. Widening our offer would be with no doubts crucial to stay attractive to our potential private and business clients. During the years we would implement new attractions and facultative programs. We will also stay in mainstream of what is in seek of companies and tailor our menu of courses and training to rebuild major of business weaknesses and shortages in day to day business problems.


39

Risk and strategies of avoiding traps in development

As we are talking about development we should not only consider possibilities and niches on the market but potential level of risk which could be a majority in case of development. The risk can be defined as hazardous in three easily drawn fields such as: personal / family risk, business environment risk and market environment risk.

What we want to achieve in short term:

To be recognizable and visible in community and on the market. To build organizational culture which will be crucial in developing

level of services Being first in servicing innovative trainings Being first in implementing new natural methods of SPA wellness

centre Establish high prosperity business with traditions and customs


40

working over hoursaccidental catastrophe or other personal lossfamily problems

Personal family risk

stress inside the companyfights between workerslack of management, culture, visible goals

Business environment risk

high competitionlack of clients due to economy situationlaw problems

Market environment risk

Long term plan

One year

Five years

Ten years

Number of employees

10% increase

20% increase

25% increase

Annual Sales

25% increase

85% increase

185% increase

Profits 400,000 PLN

1 mln PLN

1.8 mln PLN

Strategies of doing business

In the first year:

We would like to focus on promotion and advertising. Probably a lot of strategies to attract clients would be implemented: member cards for customers, free trainings, vouchers for free weekends, talons for spa curacies. We still are considering organizing mass events for example promoting region or healthy lifestyle. Those kinds of events could be held in our centre.

In the next few years:

After completing the first stage of our strategy we believe to be recognizable competitor on the market. Our goals would be to strengthen our position on the market and still build professional and still friendly appearance.

After then years:

We believe that our position would be stable enough to start promotion in foreign countries whose companies are searching for


41

business place. We will be searching for a partner companies to develop and wider our offer. Dynamic growth in new fields after becoming a leader in the segment.


42

Table of priorities:

Priorities Description Rating scale

Increase marketing

Crucial point for recognition on the market. Partners which will offer our vouchers, trainings, hotel’s portfolio on business gatherings

7

Increase profit margin

Increase value of a company is crucial in staying on the market. Good economy allows us to succeed

6

Merging and evolving

Might be important when it will come to expanding on other markets. We do on exclude opening other hotels under same brand

4

Culture and branding

In our opinion it is one of the most important factors if we want to attract more and more clients. We have to be the best on the market not only by offer but by values which will be presented in our hotel

9

Milestones

Name: Description Form of completingLand Acquiring rights for using the

land and regulating all law commissions.

Written summary and reports from all stages prepared by our lawyer.

Plan Preparing architectural and environmental plan of our hotel

Blue prints, plans and description prepared by architects and confirmed by local government.


43

Character Final decision about the characteristics of our hotel, standards, politics, and further aims.

Summary from ceo’s board meeting

Marketing Preparing and starting first marketing campaign which aim would be to promote our hotel and trainings

Written summary of the campaign with all details and costs.

Finance Stabilizing financials, acquiring needed credits and donations from the European Union.

Written reports and accounting books from our accountant.

Starting the investition

Starting whole project, building hotel acquiring licences and all further needed permissions.

Whole description with all needed details for each move.

Management Hiring staff for newly built hotel, decorating organizing work duties and shifts

Written report with needed details.

Marketing II Starting informational and promotion campaign in 3 months before opening the hotel

Written report with all answers from potential clients and market predictions.

Hotel start Big open of the hotel with special guests and promotions in the first month.

Movie.

Finance II Stabilizing finance Reports and account books

Marketing III Starting campaign which main aim would be build our position on the market and promote the brand

Reports from each stage.


44

Finance III Stabilizing finance, paying back debts, increasing profits and maximizing number of clients by month

Reports

Export Starting strategy which main aim would be promotion and development outside the region and in later years possible outside the country

Summaries and market trends. CEO boards meetings and written planning strategies.

Through increased leadership, sales and diversity training, benchmarking and recognition of excellence, we are driving results in a virtual cycle of self-improvement.

The financials

In January of 2010 we completed our Activity Value Analysis, a rigorous process to address costs and lay the foundation for future growth, which resulted in stabilizing financials and gives us opportunity to gather all savings for further investments. We also rolled out our revenue management tools to the CEO board, allowing us to improve forecasting so we can better manage our mix and optimize rates. We initiated efforts to further enhance our global sales force.

The Company financial goals under the Executive Plan consist income increase and stabilizing after making recognizable profit, with each criteria accounting for half of the financial goal portion of the annual bonus. As the Company generally sets target bonus award opportunities above market median, the Company financial and strategic/operational goals to achieve such award levels are considered challenging but achievable, representing a superior level of performance. Consistence with


45

maintaining these high standards and subject them by achieving the satisfactory profit. However the risk analytics and other factors retains the ability to consider whether an adjustment of the financial goals for any year is necessitated by exceptional circumstances, e.g., an unanticipated and material downturn in the business cycle that triggers on the Company’s performance relatively to the industry.

Risks Relating to Debt Financing

Our debt service may adversely affect our cash flow. As a result, we are subject to:

the risk that cash flow from operations will be insufficient to meet required payments of principal and interest,

restrictive covenants, including covenants relating to certain financial ratios and ability to stay on the market without additional borrowings

Interest rate risk. Although we anticipate that we will be able to repay or refinance our existing indebtedness and any other indebtedness when it matures, there can be no assurance that we will be able to do so or that the terms of such refinancing will be favourable. Our leverage may have important consequences including the following:o Our ability to obtain additional financing for acquisitions,

working capital, capital expenditures or other purposes, if necessary, may be impaired or such financing may not be available on terms favorable to us.

o A substantial decrease in operating cash flow. A substantial increase in our expenses could make it difficult for us to meet our debt service requirements and restrictive covenants and force us to sell assets and/or modify our operations.


46

General economic conditions may negatively impact our results. Moderate or severe economic downturns or adverse conditions may negatively impact our operations. A tightening of the labour markets may result in fewer and/or less qualified applicants for job openings in our facility. Higher wages, related labour costs and the increasing cost trends in the insurance markets may negatively impact our results as wages, related labour costs and insurance premiums increase.


47

Tables

Income statement2010 2011 2012

A. Total revenue: 1100000 1400000 1555000Sales of products and services

1043500 1300000 1482000

Sales of materials 31500 40000 45000Change in inventory 0 0 0Extraordinary incomes 0 0 0Other revenues 25000 50000 6000B. Total costs: 1802550 1940000 2005000Depreciation 100000 96000 100500Materials and energy 100000 125000 120000Sales salaries 65500 72800 74100Cost of services 35750 37500 42000Financial expenses 74500 78000 81000Costs of goods for resale 0 10000 5000Taxes 20000 20000 20250Other costs 0 0 0Extraordinary losses ? ? ?C. Profit (loss) gross value: A-B 1634000 2176700 2464650D. Income tax 0 0 0E. Net income 0 0 0


48

Balance sheet

NON-CURRENT ASSETSLand & BuildingsEquipmentFixture & fittingsTotal fixed assets

15,000,00014,000,0008,000,00043,000,000

CURRENT ASSETSAccounts receivableCashTotal current assets

15,00030,00045,000

EQUITYShare holders equity 14,987,000NON-CURRENT LIABILITIESLong term loans 30,000,000CURRENT LIABILITIESAccounts payableAccrued payrollTaxes payable

8,00030,00020,000

Total current liabilities 58,000


49

i http://rapidbi.com/created/corporatesocialresponsibilityCSR.html

business plan masof hotel

Documents

hotel referruls

struteglc opportunltles

growth und murket

products und servlces

industry trends

struteglc posltlon

compuny mlsslon

locul networklng