A complete project on Analysis of Hotel Vihnesh(MSME)

1. A PROJECT REPORT ON
Analysis of Hotel Vighnesh (MSME)
SUBMITTED TO SAVITRIBAI PHULE PUNE UNIVERSITY
BY
SHUBHAM SRIVASTAVA of MBA- III (2019-2021)
PRN: 2019-2307-0001-0002 / Roll No: MBA19L38
UNDER THE GUIDANCE OF
Mr. Abhay Pathak
IAEER’S PUNE INSTITUTE OF BUSINESS MANAGEMENT,
PUNE- 412115

2. To whom so ever it may concern
This is to certify that the Project Report titled Analysis of Hotel Vighnesh
(MSME), is an authentic work carried out by Mr. Shubham Srivastava from
MBA-III of IAEER’s Pune Institute of Business Management, Pune - 412115 as a
fulfillment of MBA Course of Savitribai Phule Pune University. He has worked
under our guidance and satisfactorily completed his project work.
Place: Date:
Signature of Internal Guide
Signature of External Examiner
Signature of Director / COE

3. Company Certificate
This is to certify that Mr. Shubham Srivastava of Pune Institute of Business Management has done
the project report with Hotel Vighnesh based on his MSME project guidelines.
Following are the details of the project report :
Project title: Analysis of Hotel Vighnesh, (MSME)
Business Unit: Hospitalty- Food and Beverage Industry
Project Guide: Mr. Vivek Varute , Owner of Vighnesh Restaurant
Location: Ghotawade Phate, Pirangut, Pune, Maharashtra- 412115
Tenure: 20th
November, 2019 to 02nd
December, 2019
I wish him all the best in his future endeavors.
Vivek Varute
Owner- Vighnesh Hotel

4. Declarartion
I, Shubham Srivastava, hereby declare that then prpoject report entitled “ Analysis of Hotel Vignesh
(MSME)” submitted by me to Pune Institute of Business, Pune in partial fulffilmenmt of the
requirement for the award of the degree of Masters of Business Administration (MBA) is a bonafide
record of bonafide work carried out by me under the guidance of Mr. Abhay Pathak. I further declare
that the work carried out by this project has not been submitted and will not be submitted, either in
part or in full, for the award or any other degree or diploma in the institute or any other institute or
university.
Date: Signature
(Shubham Srivastava)

5. Contents
SECTOR INFORMATION...........................................................................................................................7
Introduction ........................................................................................................................................7
Sectors within the Hospitality Industry...............................................................................................7
1. Accommodation......................................................................................................................7
2. Food & Drinks..........................................................................................................................8
3. Travel and Tourism .................................................................................................................9
Contribution to GDP............................................................................................................................9
COMPANY INFORMATION ....................................................................................................................10
Introduction ......................................................................................................................................10
Category............................................................................................................................................11
Growth ..............................................................................................................................................11
Clientele ............................................................................................................................................11
Marketing methods ..........................................................................................................................11
PORTERS FIVE FORCES ..........................................................................................................................12
Threat of new entrants.....................................................................................................................12
Bargaining power of suppliers ..........................................................................................................12
Bargaining power of buyers..............................................................................................................12
Threat of substitute products and services ......................................................................................12
Rivalry among the existing customers..............................................................................................12
SEGMENTATION- TARGETING- POSITIONING (STP)..............................................................................13
Segmentation....................................................................................................................................13
Targeting...........................................................................................................................................13
Positioning ........................................................................................................................................13
SWOT Analysis.......................................................................................................................................13
Strength ............................................................................................................................................13
Weakness..........................................................................................................................................13
Opportunities....................................................................................................................................13
Threats ..............................................................................................................................................13
FINANCE................................................................................................................................................14
Sales ..................................................................................................................................................14
Expenses ...........................................................................................................................................14
Gross Profit Margin...........................................................................................................................14
Net Profit Margin..............................................................................................................................14
HUMAN RESOURCE...............................................................................................................................15
Organization Structure......................................................................................................................15

6. Skilled vs Unskilled labour ratio........................................................................................................15
Attrition Rate ....................................................................................................................................15
Wage.................................................................................................................................................16
COMPETITOR ANALYSIS ........................................................................................................................17
Category............................................................................................................................................17
Clientele ............................................................................................................................................17
MARKETING...........................................................................................................................................17
SWOT Analysis...................................................................................................................................17
STP.....................................................................................................................................................18
Porters 5 forces Model .....................................................................................................................18
FINANCE................................................................................................................................................19
Sales ..................................................................................................................................................19
Expenses ...........................................................................................................................................19
Gross Profit Margin...........................................................................................................................19
Net Profit Margin..............................................................................................................................19
HUMAN RESOURCE...............................................................................................................................20
Organizational Structure...................................................................................................................20
Skilled vs Unskilled Labour Ratio ......................................................................................................20
Attrition Rate ....................................................................................................................................20
RECOMMENDATIONS ...........................................................................................................................21
CONCLUSION.........................................................................................................................................22

7. SECTOR INFORMATION
Introduction
The Hospitality industry is a broad category of fields within the service industry that
includes lodging, food and drink service, event planning, theme parks, transportation, cruise
line, traveling, airline and additional fields within the tourism industry.
The hospitality industry is an industry that depends on the availability of leisure time and disposable
income. A hospitality unit such as a restaurant, hotel, or an amusement park consists of multiple
groups such as facility maintenance and direct operations (servers, housekeepers, porters, kitchen
workers, bartenders, management, marketing, and human resources etc.).
Hospitality industry concentrates on customer's satisfaction by creating good services and products
that will meet their needs. This is a very competitive industry since there can be various types of
product and service such as the diversity of cuisine, dining options, drive-through option, variety
of beverage, different hotel's themes, etc. Therefore, it is important for service providers to establish
good relationship with customers so that they will come back for more.
Before structuring as an industry, the historical roots of hospitality was in the western world in the
form of social assistance mainly for Christian pilgrims directed to Rome. For such a reason, the eldest
public hospital in Europe was the Ospedale di Santo Spirito in Sassia founded in Rome in the 8th
century. On the model of the oriental world.
Sectors within the Hospitality Industry
1. Accommodation
The accommodation sector of the hospitality industry is concerned with providing customers with a
place to stay, on a temporary basis. It is most commonly associated with the tourism industry, where
people book holidays or trips and require lodgings, but the accommodation sector also caters to local
people seeking a short break from their everyday routine, or those who require temporary
accommodation for almost any other purpose.
a) Bed & Breakfasts
Bed & breakfasts, also known as B&BS, are small establishments, which offer overnight stays and
breakfast in the morning. Most B&BS owners live in the property, while guests are provided with a
private room and, in most cases, they will also have a private or en suite bathroom. Hotels
Arguably the most obvious form of accommodation that falls within the hospitality industry, hotels
cater to people who require overnight or longer-term stays. Aside from offering lodgings, they tend
to provide various other services, including room service, housekeeping, and facilities for eating and
drinking.
b) Motels
Motels are similar to hotels, but are specifically designed for use as overnight accommodation by
motorists. With this in mind, they are generally situated at the roadside, and will have free car parking
facilities. Unlike hotels, however, motels usually offer little in the way of additional services or
amenities.
c) Hostels
Hostels are a form of communal accommodation, where multiple guests will usually sleep in a shared
room, with the guests effectively renting a bed. Bathroom and kitchen facilities are usually shared and

8. hostels offer less privacy than hotels. Yet, they are usually significantly cheaper, making them a solid
option for those with a low budget.
d) Resorts
A resort is similar to a hotel, but it will provide a wider range of facilities and amenities. This means
that guests are able to access sleeping facilities, food and drink facilities, entertainment facilities,
shopping facilities and other amenities without needing to leave the resort. Many resorts also offer
all-inclusive pricing.
2. Food & Drinks
While food and drinks are necessities, most food and drinks services also fall under the hospitality
industry umbrella, due to the fact that they offer people a way of spending their leisure time and
disposable income, as well as an opportunity to socialize and enjoy an experience. Again, the food and
drinks sector caters to a wide range of customers, including tourists, locals, ex-pats and passers-by.
a) Restaurants
Restaurants provide customers with food and drinks services, with the food either being eaten in the
establishment, or taken away for consumption. This section of the hospitality industry includes fine
dining restaurants, takeaway restaurants, fast food restaurants and a variety of other restaurant
types.
b) Catering
Catering services are food services provided within a particular site, or in a more remote location,
where food and drink are not necessarily the main service provided. Examples of this include catering
provided at parks, arenas, stadiums, hotels, event venues and on certain forms of public transport.
c) Bars & Cafés
Bars and cafés provide customers with options to go out, socialize and enjoy food and drinks. They
also tend to be a more casual option than most sit-in restaurants. Cafés generally focus on coffee, tea
and light snacks, while bars tend to prioritize alcoholic drinks and soft drinks, and may also offer
additional entertainment.
d) Nightclubs
Nightclubs are one of the main ways the hospitality industry caters to people in search of night-time
entertainment. They serve alcoholic drinks, are kept open until late, and often place an emphasis on
both music and dancing. Many nightclubs have specific themes and they may cater for locals, as well
as visitors or tourists.
e) Tea & Coffee Shops
Tea rooms and coffee shops provide a similar function to cafés, primarily serving varieties of tea and
coffee, as the name suggests. With that being said, tea and coffee shops are often individual room
within larger buildings, such as hotels, and they may also sell products to be taken away, such as tea
bags and coffee beans.

9. 3. Travel and Tourism
It is important to understand that the hospitality industry and the travel industry are closely linked.
Many of the services that are classed as travel industry offerings are also hospitality offerings, because
they are linked to leisure, customer satisfaction, pleasure, experiences and the use of disposable
income. Importantly, the cross-over between the tourism industry and the hospitality industry centres
on services, rather than end-products.
Contribution to GDP
India is a large market for travel and tourism. It offers a diverse portfolio of niche tourism products -
cruises, adventure, medical, wellness, sports, MICE, eco-tourism, film, rural and religious tourism.
India has been recognized as a destination for spiritual tourism for domestic and international tourists.
In Independence speech from Red Fort, Prime Minister Narendra Modi urged people to visit 15
domestic tourist destinations in India by 2022 to promote tourism. India was ranked 34th in the Travel
& Tourism Competitiveness Report 2019 published by the World Economic Forum.
Total contribution by travel and tourism sector to India’s GDP is expected to increase from Rs 15,
24,000 crore (US$ 234.03 billion) in 2017 to Rs 32, 05,000 crore (US$ 492.21 billion) in 2028. According
to WTTC, India ranked 3rd among 185 countries in terms of travel & tourism’s total contribution to
GDP in 2018. During 2018, FEEs from tourism increased4.70 per cent year-on-year to US$ 28.59 billion.
FEEs during the period January-July 2019 were US$ 16.757 billion. International Tourists arrival is
expected to reach 30.5 billion by 2028. Foreign tourist arrivals for medical purpose increased from
427,014 in 2016 to 495,056 in 2017(P). During January-July 2019, a total of 15, 34,293 tourist arrived
on e-Tourist Visa registering a growth of 21 per cent.
During January-July 2019, Foreign Tourist Arrivals (FTAs) were 60.84 lakh with the growth of 2.1 per
cent. In July 2019, Foreign Exchange Earnings (FEEs) were Rs 18,191 crore (US$ 2.64 billion) with the
growth of 7.2 per cent from July 2018-July 2019.
Under the Swadesh Darshan and Prashad scheme various projects has been sanctioned of worth Rs
550 crore (US$ 78.70 million).
As of 2017-18, 81.1 million people are employed in the tourism sector in India which was 12.38 per
cent of total employment in the country. The Government of India has set a target of 20 million foreign
tourist arrivals (FTAs) by 2020 and double the foreign exchange earnings as well.
The launch of several branding and marketing initiatives by the Government of India such as
‘Incredible India!’ and ‘Athiti Devo Bhava’ has provided a focused impetus to growth. The Indian
government has also released a fresh category of visa - the medical visa or M visa, to encourage
medical tourism in the country. Incredible India 2.0 campaign was launched in September 2017. In
September 2018, the Indian government launched the ‘Incredible India Mobile App’ to assist the
traveller to India and showcase major experiences for travelling. The Government of India is working
to achieve one per cent share in world's international tourist arrivals by 2020 and two per cent share
by 2025.
In October 2018, Statue of Sardar Vallabhbhai Patel, also known as ‘Statue of Unity’, was inaugurated
as a tourist attraction. It is the tallest statue in the World standing at a height of 182 metre. It is
expected to boost the tourism sector in the country and put India on the world tourism map. In
February 2019, the visiting hours has been increased by two more hours and has been equipped with
e-bike tours.
The Government has also been making serious efforts to boost investments in tourism sector. In the
hotel and tourism sector, 100 per cent FDI is allowed through the automatic route. A five-year tax
holiday has been offered for 2, 3- and 4-star category hotels located around UNESCO World Heritage
sites (except Delhi and Mumbai). Total FDI received by Indian hotel & tourism sector was US$ 12.35
billion between April 2000 and March 2019.
A web based Public Service Delivery System (PSDS) had been launched by the Ministry of Tourism to
enable all the applicants seeking approval for hotel projects and track their applications online on a

10. real time basis. Tourism Ministry is also developing several theme-based tourist circuits of Swadesh
Darshan Scheme to promote tourism.
Under Union Budget 2019-20, government introduced a Tax Refund for Tourists (TRT) scheme like in
countries such as Singapore to encourage tourists to spend more in India and boost tourism.
India is a large market for travel and tourism. It offers a diverse portfolio of niche tourism products -
cruises, adventure, medical, wellness, sports, MICE, eco-tourism, film, rural and religious tourism.
India has been recognized as a destination for spiritual tourism for domestic and international tourists.
COMPANY INFORMATION
Introduction
Established in 2015, Vighnesh Restaurant, owned by Vivek Varute is multi-cuisine restaurant operating
at the macro level. It is located at Ghotewade Phata, Pirangut, in the outskirts of the Pune City. Its
primary customers in the initial stages were his friends and family. As time progressed, the positive
word of mouth spread about this food joint and the footfall significantly increased. It offers food from
mainly two cuisines – Indian and Chinese. Now the initial target market are students due to a lot of
colleges being established in the local area. These colleges, mainly PIBM, has got their hostels near
Ghotewade Phata, enabling the food joint to attract its potential clientele. Also, the presence of
various residential complexes in the area ensured middle aged Men and women also visited the
restaurants with their families. Currently it’s just a dining restaurant and Mr. Vivek is looking forward
to collaborate with Swiggy to start delivering food at doorsteps and various offices.
About the owner
Mr. Vivek Varute is a B.Com Graduate from the Tilak Maharashtra University. He is 34 Years old and
always had a keen interest to open his own business. Initially after completing his Graduation, he
worked at various BPOs before deciding to venture out on his own to follow his dream of owning
restaurant chains. The Land on which the restaurant is built is a property of his father Mr. Dinesh
Varute. The owner plans to open one more branch of this food joint in the city by 2021.

11. Category
The restaurant comes under the hospitality sector. Hospitality sector contributes 19% in the total GDP
of India and employs 12.8% of the population. Vighnesh Restaurant is a multi-cuisine restaurant
serving veg and non veg food along with soft drinks.
Growth
Hotel Vighnesh has faced difficulty in the initial stages and hence they had a slow growth and grew at
just 5.25%.
Clientele
The potential customers of the hotel consists mostly students with age group of 17-24 and also
working professionals and middle aged men and women come with their families.
How they Contact clients– The huge hoarding placed at the entrance of the hotel does the part.
Promotional activities is not adopted because of low work force.
Marketing methods
Hotel Vighnesh has been doing well with the help of Word-of-mouth advertising (WOM advertising),
also called word of mouth marketing, is the process of actively influencing and encouraging
organic word of mouth discussion about a brand, organization, resource or event, it saves their cost
of advertisement and time and motivates to serve better so that more potential customers gets
attracted and get to know about their hotel. With the help of this marketing strategy not only the
hotel has grown it is also a well-known place to relax and spend time with family or friends.
The hotel also uses customer reference marketing to share their experience with their friends and
families and any other person who is searching for a good place to eat and spend time.

12. PORTERS FIVE FORCES
Threat of new entrants
Although the market being a competitive one, there are fair chances of entry for the new players as
the growth in this sector is attractive. The residential projects that are being undertaken in this area
ensures a huge market for the sector.
Bargaining power of suppliers
Abundance of numerous wholesalers in the market makes sure they maintain good relationship with
the restaurant owner or else they might switch to different suppliers’ for their daily inventory. As the
number of wholesalers is more, the hoteliers dominate them.
Bargaining power of buyers
Vignesh mostly provides Chinese and Indian cuisines which are mainly targeted towards Millennials
who are always in a run for search better deals and trying various other options available in the
market. As a result, customers are totally dynamic and not at all brand loyal at this point
Threat of substitute products and services
The substitute products are mainly form the local street food which includes Dabeli Pav, Pani Puri (and
its variants), bakery food items, etc. which don’t really pose a great threat to the cuisines offered by
the restaurant. Substitute products have got their different clientele, and they don’t coincide with the
ones being offered by Hotel Vighnesh.
Rivalry among the existing customers
With dominant players like Sraddha Garden and Durba Restaurant, The Vignesh Restaurant faces huge
competition from the two. They both are in the industry before the latter, as a result holds a potential
high market share. In fact they have got their loyal customers as well, and they have home delivery
facilities also.

13. SEGMENTATION- TARGETING- POSITIONING (STP)
Segmentation
The hotel segmented the market as per their Psychographic terms as Indian families like to have Indian
cuisines they have one segment for them and for the youth and millennials they like to have fast foods
mainly Chinese so they have a fast food stall at the entrance of the hotel so that the congestion is less
and they get the food faster and the counter serves as their take away counter also.
Targeting
The hotel has mainly targeted the people who likes to have fast food or eat outside at a cheaper rate
than others and they promise to give a better service they have targeted the millennials the youth
working and studying here and the middle aged men and women and their families.
Positioning
The hotel has successfully positioned them as a pocket friendly family restaurants that offers tasty
food and a good ambience to spend quality with your dear ones.
SWOT Analysis
Strength
• Pocket friendly restaurant
• Good décor
• Fast service
• Well trained staff
• Well maintained hygiene
• Variety of food items
Weakness
• Slow service in preparing food
• Lack of enough workforce
• Difficulty in managing crowd
• No home delivery service
• No proper management
Opportunities
• Home delivery service
• Proper management
• Work force should be increased
Threats
As there is a huge scope in this sector, entry of new competitors is a greater threat for the hotel as the
prospects are more and if any other competitor enters the market with a different cuisine then they
will have a better chance to grow in this market.
Their competitors like Durba, Red spice, Sraddha are doing well in this market because they provide
home delivery service and people prefer to have food at their own place as most of them are students
or working professionals, it becomes difficult for them to visit the hotel and have food there.

14. FINANCE
Hotel Vignesh
Income statement for the year ended
31st
March, 2019
PARTICULARS AMOUNT (₹)
SALES 35,28,000
(-) COST OF GOODS SOLD 23,56,000
GROSS PROFIT 11,72,000
(-) SELLING, GENERAL & ADMINISTRATION EXPENSE 3,29,000
EBITDA 8,53,000
(-) DEPRECIATION 16,000
EBIT 8,27,000
(-) INTEREST 73,250
EBT 7,53,000
(-) TAX 1,76,250
PROFIT AFTER TAX (PAT) 5,77,500
Sales
₹ (9800*30*12) = 3,528,000
Expenses
Wages 5, 28,000
Raw Materials 12, 60,000
Overheads 2, 88,000
TOTAL EXPENSE 20, 76,000
Gross Profit Margin
(Gross Profit / Sales)*100
11, 72,000 / 35, 28,000 = 33.22%
Net Profit Margin
(Net Profit / Sales)*100
5, 77,500 / 35, 28,000 = 16.37%

15. HUMAN RESOURCE
Organization Structure
The structure of organization for Hotel Vighnesh is very narrow there is only one superior that is the
owner itself and under him all the workers, he personally looks after all the work going on and he
decides what to purchase and what not, the recruitment process for hotel is also undertaken by the
owner and he tastes the food personally and decides to select the employee or not the employees are
from different states and different lifestyle like Assam, West Bengal and Maharashtra.
The organization structure is as follows:
Mr. Vivek Varute the owner of the hotel has kept the workforce low to lower the cost, which is creating
a problem of serving a larger crowd, he wants to have a partner so that he can grow his business, and
will be able to increase the amount of capital invested.
Skilled vs Unskilled labour ratio
The owner plays different role such as Manager, supervisor, etc. so he and the cooks, waiter is
considered as the skilled labour and the cleaning staff is the unskilled labour.
The skilled and unskilled labour ratio is= 5:1
Attrition Rate
As the information provided by the owner, the attrition rate of the workers is moderate every year
one worker leaves the job and the attrition rate is 20% which makes it difficult for the owner to run
the business because the cost of recruitment is high and time consuming as well, it is also difficult for
the hotel to serve the customers well because of the decreasing workforce. The owner does not put
efforts to retain his workers and he do not increase their pay to retain them when they are leaving.
Mr.VivekVarute(Owner)
Cooking Staff
Cleaning staff
Waiter

16. Wage
The wage provided to the workers is not high according to them but considering the market share of
the hotel the wage is satisfactory the initial wage for a new worker is Rs.6000 approx. and the
maximum hike that a worker gets is around Rs. 9000 (the data is given by one of the worker itself).
The hospitality industry does not provide good number of leaves and it is the same for Hotel Vighnesh,
the workers are given leave on the last Monday of every month.

17. COMPETITOR ANALYSIS
“Competition is always a good thing. It forces us to do our best. A monopoly
renders people complacent and satisfied with mediocrity.”
It is true that competition breeds champions. It’s the vigil of the true capitalist. In nascent markets, it
can even be in your own best interest to collaborate with competitors to grow the overall market size.
Having said that Hotel Vighnesh has got a lot of competitors – Sraddha Garden Family Restaurant,
Hotel Durba, and Red Spice Restaurant etc. We are going to do the competitor analysis of Sraddha
Garden, the market leader with 39% of share.
Sraddha Garden is a family restaurant owned by Mr. Dhumal Prakash is an 18 year old restaurant
located in Kasar Amboli, Pirangut just 2 kms away from Hotel Vighnesh. Despite being located away
from the hustles of the town the footfall is moderately high during weekdays and all the tables are
booked during weekends. The owner, nicknamed “Seth Ji” maintains friendly relationship with every
client making sure the number of repeated consumers increase with every visit. The wide array of food
items including starters and main course from Indian and Chinese Cuisine are one of the finest. The
prices are quite competitive. Target market includes College Students of PIBM and a lot of business
men and working professionals in the nearby 5km circle.
Category
The restaurant comes under the hospitality sector. Hospitality sector contributes 19% in the total GDP
of India and employs 12.8% of the population. Vighnesh Restaurant is a multi-cuisine restaurant
serving veg and non veg food along with soft drinks.
Clientele
The potential customers of the hotel consists mostly students with age group of 18-24 and also
working professionals and middle aged men and women come with their families.
MARKETING
SWOT Analysis
Strengths- Sraddha offers quality food at moderate pricing, and it has a good well trained workforce
for handling huge crowd all managed by the interpersonal skills of the owner, Mr. Dhumal Prakash
also known as “Seth Ji”.
Weakness- Delivery service is not prompt which demotivates the customer from buying, it has some
limited time slots when it delivers food and it is usually late to deliver the food.
Opportunities- they should introduce student friendly combo meals at an affordable rate which will
attract the primary target market better. They can also increase the number of delivery personnel so
that home delivery of food can be done with more ease and they can also increase range for delivery
Threats- the biggest threat for Sraddha is Hotel Durba with 30.5%. They have got swift delivery service,
affordable rates and almost provide the same menu as Sraddha.

18. STP
Segmentation- Sraddha has segmented the market in two categories: The people who only want to
have food and the people who will prefer some drinks along with food.
Targeting- the main target of Sraddha are the students of PIBM who live in the hostel near it and the
businessmen’s, local residents and working professionals.
Positioning- They have positioned themselves as “The best place to have quality food”, and
maintaining the service and the food quality.
Porters 5 forces Model
Threat of new entrants:
Although the market being a competitive one, there are very less chances for new competitors to
enter because Sraddha has maintained a good relationship with its customers and has a good brand
image in the area.
Bargaining power of suppliers:
Abundance of numerous wholesalers in the market makes sure they maintain good relationship with
the restaurant owner or else they might switch to different suppliers’ for their daily inventory. As the
number of wholesalers is more, the hoteliers dominate them.
Bargaining power of buyers:
Sraddha mostly provides Chinese and Indian cuisines along with alcohol which are mainly targeted
towards working professionals and Millennials who are always in a run for search better deals and
trying various other options available in the market.
Threat of substitute products and services:
The substitute products are mainly from Hotel Durba providing the same type of food and KGN who
is providing Biriyani at a very cheap rate and satisfactory quality with home delivery service, but the
alcohol service they offer is not available nearby.
Rivalry among the existing customers:
Sraddha Garden has less number of rivals such as Durba and hotel Vighnesh who are not able to give
good competition to him.

19. FINANCE
Sraddha Garden
Income statement for the year ended
31st
March, 2019
PARTICULARS AMOUNT (₹)
SALES 69,22,800
(-) COST OF GOODS SOLD 38,76,000
GROSS PROFIT 30,46,800
(-) SELLING, GENERAL & ADMINISTRATION EXPENSE 2,10,000
EBITDA 28,36,000
(-) DEPRECIATION 1,24,000
EBIT 27,12,000
(-) INTEREST 1,32,000
EBT 25,80,000
(-) TAX 7,74,000
PROFIT AFTER TAX (PAT) 18,06,000
Sales
₹ (19230*30*12) = 69, 22,800
Expenses
Wages 16, 92,000
Raw Materials 16, 22,000
Overheads 4, 72,500
TOTAL EXPENSE 37, 86,000
Gross Profit Margin
(Gross Profit / Sales)*100
30, 46,800 / 69, 22,800= 44.01%
Net Profit Margin
(Net Profit / Sales)*100
18, 06,000 / 69, 22,800= 26%

20. HUMAN RESOURCE
Organizational Structure
The organization structure of Sraddha is a bit broader than Hotel Vighnesh, with more number of
waiters, cooks, manager and cleaning staff. Moreover, the owner strictly maintains the staff and the
financial records every day he even stays at the cash counter to have a conversation with the
customers and maintain a good relation with the customers.
The organization structure of the hotel is as follows:
Skilled vs Unskilled Labour Ratio
The skilled and unskilled labour ratio is 11:5 including the manager and other staffs.
Attrition Rate
The attrition rate in Sraddha is very low because of the good manpower management and a good
wage rate, another reason is due to the good behaviour of the staff with the clients and they pay them
a good amount of tip in return.
Owner
Cooking
Staff
Waiters
Staff
Cleaning
Staff
Restaurant
Manager
Bar
Manager

21. RECOMMENDATIONS
The Hospitality industry is growing day by day and both the food joints are doing well in this market
and they are giving tough competition to each other and providing service and food at their best but
if some improvements are been made then the pace of the growth will be faster and will sustain in
the market, changes such as:
• Employee satisfaction: Hotel Vighnesh should focus a bit more on its employees and try to
retain them by monetary motivation which will increase their morale of doing the work and
they may stay.
• Promotion: The hotel should spend more on promotional activities because till now they
have spent only the price of the name hoarding placed at their hotel and word of mouth but
this will help for a limited growth, and for that reason they should spend more on promotion.
• Hygiene and Sanitation: They should work on maintaining hygiene and sanitation which will
help them to retain customers, they should have a proper washroom for all which is still not
there, and workers should use clean clothes while cooking or serving the food which they
didn’t have. Maintaining these things will attract customers and initiate them to visit again.
Mr. Vivek Varute, the owner of Hotel Vighnesh is continuously working for the improvement of the
hotel and his will power and hard work will surely bring positive results in the days to come.

22. CONCLUSION
“There is no love sincerer than the love of food.”
What we are trying to tell you is that advertisement plays a greater role in a business. Therefore, one
of our recommendations especially to Hotel Vighnesh is to do the same thing. As an attractive
advertisement campaign will acquire more local customers, increasing the reach of its potential
market. People also maintaining better quality of food on a constant basis will help to retain those
customers. Major Players like Sraddha Garden Family Restaurant and Durba Restaurants are lacking
in providing better Indian cuisines as well as Chinese cuisines consistency but still they kept the prices
significantly higher than Hotel Vighnesh, which the food joint could easily take advantages while
providing better quality food at cheaper rates. As Swiggy and Uber Eats fails to deliver in Pirangut,
Home delivery is amongst the top priority for its competitors, they should start home delivery as soon
as possible.
Another recommendation is to introduce lounge areas and better hospitality, while replacing hard
plastic chairs and tables with sofas and attractive lightning. And also making the right use of space of
the AC Room, it could have been better if Hotel Vignesh provided with FREE Wi-Fi access as its
competitors fails to deliver such facilities. It will help those customers who wish to go to that particular
fast food restaurant can use it either for educational purposes, or just to hang out with their friends,
not just eating.
The other recommendation would be the location. Also the fact that workforce is quite low in the
outlet, the number of workers on the payroll should go up, in order to handle the demands of the
growing footfall in the current days.

23. MSME Project Report Assignment
Name: Student number:
Assessment Criteria Full
Marks
Marks
Scored
Feedback
(also see assignment)
EvaluatetheSituationAnalysisoftheIndustryin
whichtheOrganizationoperates.Providea brief
history and atimelineon themajorchanges the
organizationhasmadeduetoshiftinindustry
trends and practices.
15
Critically analyses the marketing strategy adopted by
the organization in dealing with competition in
managing the business & attract the customer.
25
Critically analyses the financial status of the company
Fund Generation, Net Revenue ,Govt. Support etc.
25
Analyze the management structure, Labor ratio
(skilled/Unskilled), Recruitment Policies, Training
programs/seminar.
25
Group photograph with company persons
(Preferably @ Company location ) 10
Total 100
OVERALL FEEDBACK (also see comments on assignment)
1st Marked by: Signed: Dated: Grade