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Presentation1ASSET management,business plan


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Presentation1ASSET management,business plan

  2. 2. • BUSINESS ENTREPRENAURSHIP -Model • • Entrepreneurship-owner • Business formulation • • Market Research & Project Identification • • Project Report , Feasibility and Design • Company status –Incorporated-Partnership-objectives and Articles • ' • Capital –Sources and Mobilization • • HOTEL BUSINESS PROCESS • • OPERATIIONAL SUPPORT SERVICES CORPORATE BUSINESS ENCRYPT ` • 1 ACCOMODATIONS 1 SALES AND MARKETING 1 BUSINESS PLAN-BRANDING-SOPs-Trip Advisor • Opportunity Cost Decisions • 2 FOOD and BEVERAGE 2 FINANCE & HR and ADMN 2 KRA’: s /KPI ’s • • 2 A KITCHEN 2 A MATERIALS supply chain-Stores 3 ASSET MANAGEMENT • par stock, physical stock verification Balance sheet Leverage Recon ,Fixed Asset Register • GAAP-IFRS,AUTHORISATION -ALL • B STEWARDING B HUMAN RESOURCES 4 PROFIT PLAN –USAH-- Budget GOP’s cash flow • C COLD STORE AND GEN STORE C SECURITY • ENTERTAINMENT 5 CONTRACTS ,LEGAL SYSTEMS • HEALTH CLUB 3 Engineering 6 Risk Management –IT solutions /package system • SPA 3 a PROJECT • BOUTIQUE • 4 Transportation 7 Manning Guide –structure, PA,SWOT -WELFARE • trade union –mgt relations, Organization structure • DISCO job descriptions, Disciplinary process • Swimming Pool 5 IT -MIS 8 Tax Planning-SURPLUS –New Project Identification • Tours –local • Guest Transport 9 OWNING CO –OPERATING CO.- Contr. obligations • Diving • Cruise 10 PASSION AND OWNERSHIP • Sea sports • Beach sports • Cost board • A HOTEL BUSINESS MDEL—BY JAY
  3. 3. • OBJECTIVES -- Creation and protection of the company Assets , the owners and share holders EPS –Earning s per share ,property values , Investment Portfolio In Real Estates , expansion Room nights and MICE –Entertainment /Health cub /RETAIL and SHOPPING MALLS /Travel agency /GSA and Other Allied Investments/ERP-Packages for project identification • The key factor in modern management is the asset management , where after, investment decisions are made by the owners , normally on the ROI or Pay back basis, the next phase would be is to how safe the Assets are guarded , and continuous assessment of the assets performances , its imperative that the top management is circumvent to periodical asset revaluation and Management analysis
  4. 4. • Lets be proactive to define what ASSET MANAGEMENT IS ---- • Hotel asset management is the fiduciary responsibility of managing the hotel invest ment portfolios to meet the specific objectives of ownership to build value , value additions at both portfolios and property-Real estate - level , • Asset management provides insight into the operational challenges , bench marking propert performance and innovative capital improvement decision • Proactive areas of asset management are –benchmarkingasset performance assessing management companies,negotiating contracts , Operating finance and capex decisions , evaluating management company performance , decision like to hold or sell owning company operating company relationships ,operating and capital budgets , business plans risk replacement analysis of assets
  5. 5. • ANALYSIS OF KEY KPIS AND KRAS IN ASSET MANAGEMENT • Financial and operational performance monitoring and control—these aspects are correlated to , in modern concepts ,the assets management, are just not merely figures input to the balance sheet to assess profitability indexes and funds flow , but to effectively project the derivative cash flows , how the funds flows are deterministic in the growth of the company ,creation of sinking funds for replacement of machinery • The company performances financially , the Asset distributions –fixed assets and inventory management –current assets , operational control is correlative to business plan ,budget and variances , CAPEX capital budgeting decisions –like replacement analysis , funding –loans and bank consortium , ratio analysis, break even costing analysis—contribution , food and beverage cost controls , utilities cost control –like laundry telephones ,transportation , housekeeping amenities , engineering costs –like power and fuel , repairs to maintenance , depreciation • Safe guarding of Fixed assets –like land , building ,plant and machinery , equipment ,laundry equipment , entertainment equipments , furniture and fittings –SOEs ,crockery , cutlery , kitchen equipment, room and restaurant linen –analysis of breakages , wastages , discard and disposal of assets , stock inventories –WAC— FIFO –NON MOVING –MIIMUMAN-SAFETY STOCKS Non Moving EOQ—IMPORTS etc like FB ,HK, ENG, PRINTING AND STATIONERY etc valuations on WAC , Profit and loss on uniform system of accounting ,PL on costing -- break even analysis and balance sheet • ,shares marketing, evaluation of shares, cost of capital and cost of Interest KEO AND KEI , risk management analysis All these above factors contribute to effective Asset management
  6. 6. • Projects –PERT and CPM –critical path methods of project evaluations, funding process • Operational proposals –profit plan projections for EVENTS , estimated cost analysis for new project and proposals • Daily operations • Daily briefings and MIS, target revenues and cost analysis , guest complaints –redressal of complaints , duty management reports , night managers reports , night audit reports • —Forecast analysis , Revenue management , effective services , FRONT OFFICE –Management FB cost controls menu planning and costing , housekeeping upkeep and amenities cost , power and fuel distribution • Restaurants and kitchen planning , stewarding department – washing and cleanliness , hygiene factors in kitchen , rooms , and public Areas • Planning of utilities –internets –Business centres , Laundry ,misc hospitality services—like bob carts , medical centers , herbal clinics , massage , discotheque etc
  7. 7. • Human resources management—Hotel human resources are treasure to the company and service being the main factors employees are the main contributors to the marketing concept,--- Motivation retention of employees—performance appraisal on SWOT BASIS , recruitment and manpower development , ABILITY to PAY-NIKKEREAN TO PAY, MANPOWER UTILISATIONS ,leadership Grid Analysis –X and Y Theories –employee orientation or results • Property inspections—Property management services ASSET VALUATIONS AND FIXED REGISTER routine preventive maintenance schedules , engineering contracts overseeing, depreciations and Asset replacement analysis,CAPEX • Market position surveys ---market segment positions reviews , of corporate , travel agents business, Airlines crew and non crew , internet ,others , loyalty programme ss and points • Management franchise contracts –Implementation of owning company –operating company contractual clauses , obligations like fire , Riot –insurances, guest liability insurance • Leasing and tenant relations • Leasing of utility equipments –like generators ,compressors , telephone systems laundry equipments etc • Leasing agreements tenancy agreements ,adequate cover on collection of advances , gross assets less depreciation concept , net assets ,charges of deprecation to lease, • Staff housing tenancy agreements , discotheques , hair cutting saloon , fitness centers , massage , karaoke , shopping malls , bank extension counters • Accounting and financial reporting---entire financial reporting –Daily revenue reports , daily cost reports –cost of power and fuel consumptions , • Market plan development and review—detailed business plan is attached -sample • Budget operating and capital development and review—detailed budget is attached –sample • Ad valorem taxes—note on ---taxes is attached
  8. 8. • Renovation and expansison –renovations are to upgrade the hotel , offer better guest facilitations , --upgrade from 4 * to 5* or More , development of products new product line and value additions , expansions-- additional rooms , additional restaurant and entertainment facilitations , after project and feasibility studies of market demand and cash flow generations • Property acquisition and disposition—portfolio investments , MOUs on share of pother companies , holding company and subsidiary company –mergers , real estate investment s, disposal of properties with provisions of companies act , take overs , operating , managing • And franchising analyzing feasibility payback rate of return • Analyses of management performances - EPS –REVENUE AND COST ,BREAK EVENS -GOPS- EBITDA- REV PAR- REAL ESTATE MARKET VALUE – OPERATING MARGINS , RATIO ANALYSIS , CAPITILASATION RATES,BALANCE SHEET SURPLUS –SHARE VALUE APPRECIATIONS –LIQUIDITY --CASH FLOW KPI –Key performance Indicators , KRA-s Key result areas, average rates, REV PAR-Occupancy ratio , food and beverage cost , utilIty cost reports –telephone , laundry ,Daily revenue to purchases reports ,etc unit cost per room , variable cost per room , contribution per room Guest analysis –room recovery per guest , FB cost per guest , Business plan , budget and forecast s, HR motivations, training and development , Retained earnings –uniform system of accounting –profit center Basis • SOP –standard operating procedures and manuals would reflect stands set for operational and administrative efficacy –I have with around 100 SOPS made for use , SOP If implemented mitigates and minimize asset losses
  9. 9. • Risk analysis --A risk analysis involves identifying the most probable threats to an organization and analyzing the related vulnerabilities of the organization to these threats.Most businesses depend heavily on technology and automated systems, and their disruption for even a few days could cause severe financial loss and threaten survival. The continued operations of an organization depend on management’s awareness of potential disasters, their ability to develop a plan to minimize disruptions of mission critical functions, and the capability to recover operations expediently and successfully. The risk analysis process provides the foundation for the entire recovery planning effort. Insurance coverages, Marketsurvey, Indexes- commodity, share property values Accounts Receiveable /payable ageing analysis—ANALYSIS OF CURRENT RATIO, QUICK RATIO • MIS –Computerisation—UNIFORM SYSTEM OF ACCOUNTING -ERP ---Entreprenaul resourcing planning, Project Identifications and planning --Implementations and hands on experience in Micros Fidelio, prologic, --integrations –-Dot pos , protel ---sun system (back office ), AGPAC , Microsoft projects, BOSS, PMS , IDS, QUICK BOOKS , TALLY infront, etc- etc
  10. 10. • LEGAL –corporate laws –company regulations and act , board meeting and resolutions ,a ppointment of auditors , directors remuneration ,conduct of ordinary and spl business in AGMS , company law board issues ,Income tax and VAT –revenue and vat purchases set off • Labour statutes governing discipline , wages payments , gratuities etc, law of contracts , sale of goods act , liquidated damages employment contracts , eng and IT contracts Purchase vendor contracts hotel facilitations service conatracts and agreements , GSA – SALES CONTRACTS • AUDIT –External audit , Internal audit and manpower audit , maximizes values , crushes costs and justifies opportunity cost • Material procurement –are the basic funda of asset managements ,good quality material , procured at low prices would annihilate the profitability as well maintain the good will of the company , Low inventories and accuracies in inventories are essential , standardizationand specifications of material are essential ,Central Purchases ,committees • PREOPENING S –project planning and preopening are important aspect of management • MARKETING COMPATABILITY—OBJECTIVES • Strategic increase in Market shares of the product—to sell additional room nights and MICE –Meetings –Incentivesconferences and events • Brand building Product and New Product development-Strategy Revenue generations cost saving enhances the GOPS, there by Financial surpluses accrues and growth is encompassed, advertisements ,loyalty programmes , Room and MICE Sales contribute to growth extensively, Sales and marketing personnel –Call reporting,Measurement of sales • training , change management , manpower utilizations and Nikkerean Models- Ability to pay analysis are the need of the hour, REV PAR –analysis , Government Agencies and Support policies on Tourism /exhibitions /hotel management and catering colleges ,Deforce situations of Management crisis • REAL ESTATE –MANAGEMENT--, project –feasibility, Real estate development And Appreciations ,Residential building shopping Malls ETC - Goodwill , Benchmarking new Investments and Portfolios for value Additions expansion Room nights and MICE – Entertainment /Health cub /RETAIL and SHOPPING MALLS /Travel agency /GSA and Other Allied Investments/ERP-Packages for project identification /financial controls and profitability –with uniform system of accounting
  11. 11. Business PlanBusiness Plan • Business Analysis and financial planning • KEY NOTE FROM FINANCIAL CONTROLLER • WINDSOR PLAZA HOTEL BUSINESS PLAN 2009 • THE BUSINESS PLAN for WINDSOR plaza hotel envisages trends for business activities on a little pessimistic note , with global inflations projected , and depression economics in the foreplay , It is but natural , That we play safe on the revenue , but concentrate more on savings and costs , a quite optimistic feature would be to sustain the inflationary revenue with marginalizing the cost and savings and ensure a sustained GOP • • Objectives –The Windsor plaza hotel is situated in Ho Chi Minh City the hotel has its operations with 403 rooms and many FB –and entertainment outlets , and has exclusive banqueting facilities for conducting international events of great stature and nature . Has the potential to cater to guest –foreign tourist groups ,local customers, diplomatic and the government sector of Vietnam , the company is incorporated with the local laws of the country • The company offers guest facilitations both room with exquisite rooms modeled to high profile and VIP status guest and also affords the economy tourist who primirarily wish to visit Vietnam to study the culture, the monuments the pagodas • And other places of ancient and historical inheritance, it offers • A palate of Vietnams wonderful food cuisines and buffets , delicious ,tasty and an international buffets with score of variety food carved out with exquisite chef culinary from various parts of the world and the continent ,it offers a wide range of beverages alcoholic and no alcoholic , cocktails ,mock tails with the food and beverage services as an epitome of Vietnamese culture
  12. 12. • It also facilitates to guest sophisticated modernized health club, business center-, a travel counter, beauty parlour and an exclusive Disco , • Covering impeccable guest services and entertainment, and and an adjoining shopping arcade • The hotel is set to an ambience of the beautiful Ho Chi Minh City , • Thus the main task of this business plan would be to achieve the Priorities , targets set to the company’s objectives and philosophy ,set to legal standards of the country with an effective Operational ,Engineering ,Marketing, Material ,human resources utilizations ,financial, information technology , commitments to achieve theses tasks , targets set out in the business plan, thus the objective of this plan is an sustained effort in Managing by objectives and results • Organisation and role of Windsor plaza business plan • This business plan is an approved document of the owners and top management • • The company in order to meet its standard of operation is managed by a team of professionals headed by the general manager ,and his departmental heads, governed by the standard operating procedures, efficient operations-front office ,food and beverage Management , effective sales and marketing strategies , and the legal systems, International accounting norms , manpower utilizations ,standardized material procurement, computerization automation preventive and project engineering • VISION OF THIS PLAN –FOCUS –VALUE ADDITIONS • PRODUCT –WINDSOR PLAZA HOTEL –Ho Chi Minh City • VIETNAM • - A marketing plan, with a distinctive advertisement strategy, message driven to various segments of the market to exploit the market situations, confirms to marketing budget expenses would have to realize the room nights business with appropriate recoveries – Average Room Rates , and Revenue penetration so also with the food and beverage income and other income, with the recoveries and the yield per night on total income
  13. 13. • comparable to industry actual .hence this note would be to highlight the hotel revenue in term of the previous year and current year revenue ,A proactive analysis Of departmental profits, gross Margins and net margins with the Manning guide –Manpower utilization and training stock inventory Management, Revenue management and growth diversifications , project Identifications feasibility reporting, governing the Earning per share ,protect the interest of the owners contributions, equity share holders contributions , the company property and wealth with computerized fixed asset management with an ideally GAAP Analysis of accounting and financial management system Company profile • The Windsor Plaza Hotel is a 25 story, 400-room, 5 star hotel located in the heart of Ho Chi Minh City. Its clients are a mix of leisure and business guests from Asia-Pacific, Europe and the United States. It also has several restaurants serving a variety of cuisine and an expansive banqueting/catering/conferencing facility. • Company history • • The Van Thinh Phat Company developed the Windsor Plaza Hotel. The Company's first hotel was called the Windsor Saigon Hotel and it transferred the "Windsor" name to the current hotel. • • The Windsor Plaza Hotel began operations in November 2004. In 2006, it became the first Vietnamese-owned hotel to receive the 5 star certification from the government. An Dong Investment Corporation assumed ownership of the Windsor Plaza Hotel in 2007. Van Thinh Phat Company is a significant shareholder in An Dong Investment Corporation.
  14. 14. • Change management strategy –focus Training • Key note on business plan Implementation • Peter F drucker • We now accept the fact that learning is a lifelong process of keeping abreast of change. And the most pressing task is to teach people how to learn • Value Additions • The hotel is setting up an exclusive restaurant in the 25th floor offering vietnamese Cuisine for the year 2009 ,Ice cream kiosk are to open soon • The Disco , of Windsor plaza is an exclusive • Entertainment centre Offering the musical vibrations in Saigon • Information technology and computerization • The Windsor plaza hotel had taken a stand to meet the hotel standards of business with a facility to provide to guest a total automated and computerized environment, in order to stream line accounting accuracies and define the financial and hotel set up, with an international system of accounting-the Uniform system of accounting -- committed to Profit centre and cost centre analyses, the company had identified the total front office and back office integrated computerized • System the front end system protel –defining room and allied revenue sales and the dot Pos system at the restaurant
  15. 15. • Training and change management strategy • The realities of modern hotel management would be to offer to guests a highly sophisticated, automated environment, with cultural values, Guest services as a priority. The focus in this area would be that as the hotel is prone to competition from neighboring hotel it is essential the product and line is kept away from obseletion , that is our product should add new features so that the guest would not feel stale , new avenues to provoke the interest of the guest should be looked into , in order to adhere and adapt to swift changes in the company business trends , training of staff becomes absolutely essential , management change concepts , are ideally essential to mitigate and stifle the competitors and groom the staff to new styles of functioning and enable marketing thrust And penetration , it is necessary training needs are identified and trainers are appointed to inculcate innovative business styles of functioning to staff within the companies policy and philosophy • SWOT Analysis is a tool for auditing an Organization and its environment It is the first stage of planning and helps marketers to focus on key issues .SWOT stands for Strengths , weaknesses, Opportunities, And Threats . • Strengths and weaknesses are internal factors, Opportunities and Threats are external factors. • • The next key strength of SWOT is analyzing the performances of the employees, performance appraisals of employees should be based on SWOT analysis, to substantiate the marketing strength of the hotel in maintaining service standards • BPR -Business process Reorganizations and Change Management strategies are changed styles of Management towards better Results
  16. 16. • Project planning and development-the obvious objective of the corporate entity would be to roll out plans for generating the funds flow –to mobilize from operations and external sourcing –optimizing revenue management for new product development • And identification of new projects of the hospitality and allied products from diversifications in the fields of farming –dairy farming, agriculture, aquaculture, meat and poultry farms • • The financial solutions would be assessing the total investment outlay and arriving at net cash flow on PLs –derivative would be the payback in years and rate of return on investment • VALUE ADDITIONS and REVENUE MANAGEMENT-CASH FLOW GENERATIONS • FLIGHT KITCHEN • It was suggested By FC that the Chef would explore the possibility of • Setting up flight kitchen contracts with airlines for exploring additional revenue for the hotel as a strategy for upfront revenue management • BOWLING ALLEYS • This sport is getting popular and is played every where , its an agenda in the Olympic s and world sports sizable revenue is earned on this account • To Increase cash Flow generation-projects can be made Chef/fc • Feasibility proposal ---- IT department a feasibility proposal On fixing computer in all executive floor VIP rooms • Apart from guest usage ,--the front office billing system could be fixed n these computers and the guest could have access to His Bills any time , check outs can be carried out from the rooms , mobile credit card machines are available for slashing the bills for credit facility
  17. 17. • Check EAM –material costing computer package • Payroll accounting package • Assessing wealth of the company • Fixed Asset Management –The Fixed Asset Valuations are being assessed • And the fixed Asset ledger is being customized with Accuracies of the Fixed Asset Structure in the Assets , this work is completed ,Revaluation of assets is a modern financial leverage, which can encompass a better borrowing capacity ,and create a potential for increased cash flow generations , • Renovation Plans of windsor plaza hotel is on a hectic note • The groups Time square project is around to take Off with a an emphatic cash flow • other Pending Issues • Fixing up of meters for Measurement of Electricty a few meters are to fixed to ensure power consumptions • Mini bar control-This task has been set up • Archive room for Accounts key hotel document record keeping as per Audit norms-- • Insurance coverage-fire insurance ,fidelity ,Medical Insurances , • Theft Insurances • Inventory and storage Facilities • Vouchers –as marketing strategies—systemize the Issue of Complimentary guest Vouchers of all categories –Authority and Accounting • Insurance policies • Disposal of fixed Assets • Gate Pass System –Returnable Non Returnable • Appointment of External Auditors –To be more stringent • Appointment of internal auditors , an exclusive function to carry out daily accounting audit -Vouching of all vouchers and support monthly audit system , to carry out manpower audit on manpower Utilisations , payroll and attendance audit • Energy Audit • Depreciation of Assets ---Replacement Analysis • Depreciation Sinking Fund
  18. 18. • The company s ability to satisfy guests and customers • The company’s ability to procure and standardise material • The company ability to pay • The company’s relationships, public and liaison, governmental relations • The company’s in house training and management development programmes • The company’s financial liquidity, profit centre management, break even analysis • And project financial management ,CPM and PERT • The company Ability to protect and safe guard the company property • Thru an effective engineering process , • To keep the guest satisfaction options abreast thru Utility services • And thereby accrue Revenue to the Hotel Revenue