The document is an agenda from Phoenix Consulting Group presenting recommendations for a resort in Brazil. It summarizes the resort's business structure and issues, proposes hypotheses to address financial, operational, human resources, and technological problems. Recommendations include implementing career plans, training programs, standardized processes, and an integrated IT system. The additions are projected to increase occupancy rates and profitability over three years, with increasing net present values and prices for the proposed solutions.

1. PHOENIX CONSULTING GROUP
Prepared by Group 1:
Habib ABOU SALEH
Anthony-George HASBANI
Rafael MOHREZ
Alexey SYROEZHKIN
April 15th 2015

2. AGENDA
 Who we are?
 Our clients
 Resort Business Structure
 Tourism Business Environment – Brazil
 Tourism Competitive Conditions - Brazil
 Resort Size Up – Major Problems
 Hypothesis
 Hypothesis Analysis
 Recommendations
 Adding Value
 How to Reach Us

3. WHO WE ARE?
“We are a Management Consulting Company focused on Strategy, Performance
Improvement and Development of Opportunities in Hospitality and Tourism
Business”

4. Inspire
Others
Interactive
Business
Strategies
Think
Globally
Risk
Management
OUR CORE VALUES
That build our business…

5. OUR CLIENT
 Located in FORTALEZA – CE, Brazil
Vision - “ We will go to extraordinary lengths to know our guests,
creating emotional attachments by delivering highly personalized
service with humility and grace. We will create lifelong memories”

6. RESORT BUSINESS STRUCTURE
CEO
Finance Department
Operation Department
HR Department
IT Department
GM

7. THE BUSINESS ENVIRONMENT - BRAZIL
Political
• Corruption and bribery: Petrobras scandall
• Political tensions and instabilities due to the Presidential Elections in 2014
Economical
• 7th largest economy (64% Services, 8% Agriculture and 28% Industry)
• Unemployment rate at 5%
• High interest rates
• PAC and PIL : Programs for infrastructure investments – USD 240 Bi
Societal
• Social disparities: 11% High Class; 52% Middle Class; Lower 37% (10% access to over 40% income)
• Illiteracy level: 9.6%
• Crime rates in big cities
Technological
•Technological agreement: Ex, European Union
• Highest level of patents in South America
• High cost for IT and Information System
• Internet in some areas is inefficient

8. TOURISM COMPETITIVE CONDITIONS - BRAZIL

9. RESORT SIZE UP
Financial Size Up
 Elusive profitability due to higher than anticipated marketing costs and staff severance packages.
 Currently suffering from tight cash flow despite the strong interim profit performance.
 High inventory which reflects inability to turn inventory into cash in a short period of time.
Operations Size Up
 Absence of formal Quality Management systems ISO 9001 Certification and Quality Control Procedure
 Abscense of ISO 14001 Certification in Hospitality and Environmental Management
 Too much inventory in the Warehouse due to the absence of Inventory management. Loss of cash flow
Human Resources
 Employees’ turnover
 Deteriorating relationship between employees due to top management disputes and disagreements
 Lack of Motivational incentives
Technology Size Up
Absence of a strategic information system in order to retain customers.

10. HYPOTHESES
Finance
Technology
Tight cash flow limiting new bank loans to finance sustaining and expansion investments
Operations
Human Resources
Lack of systemic vision and process standardization generating inefficiencies
Lack of team work and poor relationship impacting performance and services 'quality
The implementation of a strategic information system would leverage the level of service
and customer retention

11. HYPOTHESIS ANALYSIS
• The Debt-service
Coverage Ratio Is 3,02
(>1), Meaning Adequate
Level Of Cash Flow
Finance
• Employees In
Management Position
Without Training Plus
Limited Source Of
Talent Aquisition
Human
Resources
• BROWN PAPER:
Divergences In
Processes And
Understanding Of
Internal Clients
Operations
• No Membership
Program To Retain And
To Better Serve
Customers
Technology

12. RECOMENDATIONS
• Career Plan And Incentive Package Based On Performance
• Job Training For The Managerial Level
• Job Descriptions + Training + Team Building Activities
Human
Resources
• Build A RACI For All Activities And Roles
• Draw The Main Processes With Inputs And Deliveries. Who Is My Internal Client?
• Create Operational KPIs (BSC) for each Department
Operations
• Implement The Integrated IT System
• Implement And Promote The Membership Program And Data Analysis Systems.Technology

13. ADDING VALUE
PROFITABILITY THROUGH HIGHER OCCUPANCY RATE
Today
(Y)
Y+1 Y+2 Y+3Past
Operations
HR
Technology
Time
35%
57%
50%
47%
45%
49%
84%
57%
65%

14. ADDING VALUE - NPV X PROPOSED PRICE
10%
20%
35%
Y+1 (Operations) Y+2 (HR) Y+3 (Technology)
Occupancy Rate
$353,565
$742,486
$1,364,317
Y+1 (Operations) Y+2 (HR) Y+3 (Technology)
Increased Gross Profit
Y+1 Y+2 Y+3
Average rate 229 240 252 USD
Rooms 90 90 90 #
Occupancy Rate 10% 20% 35% %
Gross Revenues
$2,061 $4,328 $7,953 Day
$61,830 $129,843 $238,587 Month
$752,265 $1,579,757 $2,902,803 Year
Gross Profit $353,565 $742,486 $1,364,317 Year
NPV Operations $331.084
NPV Operations +
HR
$982.153
NPV full $2.102.425
Price Operations $82,771
Price Operations + HR $245,538
Price full $525,606
* NPV WACC Hotels and Resorts 6,79%
** Price not include consultant expenses
*** 50% payment before the project start 50% when delivered

15. Click on the globe to start
PHOENIX CONSULTING GROUP
Brookfield Place, 181 Bay St
Toronto, ON, Canada
+1 416-955-4200
Email: Phoenixconsulting@O2.ca
Skype: PhoenixConsultingGroup
LinkedIn: www.Linkedin.com/in/PCGLTD
Twitter: PCGLTD
Web: www.PhoenixConsultingGroup.com
HOW TO REACH US

16. “We Cannot Direct the Wind but We Can Adjust The Sails ...”