Business Plan for Seduisant Tours

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BusinessPlan for Seduisant Tours

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TABLEOF CONTENT

  1. EXECUTIVE SUMMARRY …………………………………………….. 4 – 8

  2. PART I – THE ORGANIZATIONAL PLAN …………………………… 9 – 32

Description of the Business ………………………………… 9

Services…………………………………………………………………13

AdministrativePlan ……………………………………………………..16

LegalStructure …………………………………………………..16

CorporateOfficers ………………………………………………. 18

Management……………………………………………………… 20

Personnel………………………………………………………….21

Training……………………………………………………………21

PersonalDuties ……………………………………………………23

EmployeesProfile ………………………………………………… 29

Accountingand Legal …………………………………………….. 30

Insurance……………………………………………………………31

Security………………………………………………………………32

  1. PART II – MARKETING …………………………………………………… 34 – 44

MarketResearch ……………………………………………………………43

TargetMarket and Strategies for Sales ……………………………………..35

Competition…………………………………………………………………38

Methodsof Distribution …………………………………………………….40

AdvertisingStrategies ………………………………………………………42

CompetitiveAdvantage ……………………………………………… 43

  1. PART III – FINANCIAL DOCUMENTS ……………………………… 46 – 74

Statementof Comprehensive Income ……………………………….. 48

BalanceSheet …………………………………………………………49

CashFlow Statement ………………………………………………….51

Notesof the Financial Statement ………………………………………55

ProjectedIncome Statement ……………………………………………60

ProjectedBalance Sheet ………………………………………………..64

RatioAnalysis ………………………………………………………….70

Assumptionsof the Projections …………………………………………72

  1. EXECUTIVE SUMMARY

SeduisantTours is a niche online travel agency operator specializing in thetransportation of individuals from all age categories during theirvisit in Vancouver. This company is based on the perception that theincreasing number of people relying on the internet for information,and significant travel interests all over the world would provide alucrative market in the tourism industry (Zhang,2017).This company is efficient since it offers flexible options to theclients. Tourists can decide on the duration of their stay,destination, and budget, among others. These decisions can becommunicated to the support personnel who respond to the client’srequests via the online platform (Zhang,2017).The online platform allows the customers to design their itinerary.Clients have a capability to build a customized tour or chose anexisting one. Moreover, the personalized tour approach allows theclients to come with a route, sites, and plan that are meant just forthem. Consequently, the customers would find the engagementsinteresting and seek such experiences again in future (Hair,2015).Other functions include the provision of guided sightseeing, acompany of a dedicated tour director, rewards, privatetransportation, free travel, and a 24/7 support personnel. Thecompany will strive to offer the best travel services in Vancouver byhiring a reliable team of workers, providing quality services to theclients, and gaining trust and confidence (Hair,2015).

Theprojections prove expectation for expansion of its customer base tonew territories and markets. On the other hand, cash flow projectionsare a proof of ability to hire more staff, purchase equipment, andfor the implementation of the marketing programs (Hair,2015).

Asenior manager will head the company with the help of a team of adedicated workforce. These individuals will be interviewed to ensurethey have necessary skills for supporting the values of the company,goals, and targets. The role of the manager would be leading the teamtowards the identification of opportunities. New opportunities couldinclude new business transactions, new markets, the development andimplementation of marketing activities as well the negotiating andclosing of new contracts. Carrying out these activities requires themanager to have worked in an environment similar business (Hair,2015).The passion of working in the hospitality and tourism industry is anadded qualification for the manager.

Thereare already qualified firms in the travel industry in Vancouver(Litman,2015).Some of the major agencies in the region that will pose a significantchallenge due to their competition include Marlin Travel, RenshawTravel, Uniglobe Vision Travel, and Carlson Wagonlit Travel(Moriarty,Mitchell, Wells, Crawford, Brennan, &amp Spence-Stone, 2014).Cruise Alaska might pose the greatest form of competition since it’san online based firm just like Seduisant. However, this companyspecializes in cruise travel and tours in Alaska. On the other hand,the Cruise Connections has been offering the best cruise retailerservices in Canada. The company offers low prices for its cruisevacations to a variety of destinations. Competing with thisorganization would require allocation of maximum funds into themarketing strategies.

Theprojected growth of the company is 25% after the completion of thefirst year in business. The acquisition of the equipment, hiring newemployees, and marketing is crucial in the expansion of the businessand meeting the demands of the clients. The expectation of thecompany is to have grown the customer base to 50% by the year 2020.

Basedon a survey carried out by the Seduisant Tours, now would be the besttime to enter the hospitality and travel industry. The value of thetourism sector in Columbia is associated with the numerous attractionsites. Despite the various shocks that faced this industry in thepast, this sector has shown tremendous resilience. Externalchallenges such as the 9/11, global economic crisis, H1N1 virus,natural disasters such as earthquakes, and SARS impacted on thetravel sector in this region adversely (Chiappa,2013).However, based on recent analysis, Columbian tourism industrygenerated revenue of $13.4 billion in the year 2010. This industryhad also hired 127,400 workers in the region. The number of visitorsin Vancouver has also been growing (Litman,2015).This sector significantly contributes to the region’s globaldomestic product (GDP) (Litman,2015).On the other hand, within the industry, transportation, foodservices, and accommodation account for two-thirds of the totalrevenues generated by tourism (Zikmund,Babin, Carr, &amp Griffin, 2013).Transportation comes second after the food services andaccommodation. Travel agencies contribute for 30% of the totalrevenue generated in the tourism and hospitality sector (Hampel&amp Tracey, 2016).

Moreover,the target market of the tourists is growing significantly.Population growth and improved living conditions of the localcommunities as well as all over the globe has led to increased demandfor travel services. The elimination of the earlier problems andshocks in Colombia has also boosted the growth of the tourismindustry in the region (Abou-Shouk,Megicks, &amp Lim, 2013).Besides, surveys have proved that about 40% of the global populationhas an internet connection (Chiappa,2013).This connectivity has increased significantly given that it was lessthan 1% in 1995 (Chiappa,2013).Greater use of the web and associated devices such as smartphonesgives the company’s online marketing a good chance in thecompetitive market. Research shows that individuals spend an average8.3 hours a week online (Chiappa,2013).Older people are also conversant with the use of the internet andmay, therefore, contribute to the growth of this business since theyare known to spend most of their recreational time exploring theworld and traveling new places (Chiappa,2013).They are determined to explore new opportunities to discover whatthey might have missed in the past.

Thecompany has appropriate plans in place for attracting and retainingcustomers. Some of the approaches would be through advertising viathe website. Ads will be put on the top ten baby boomers and seniorsites to generate traffic to the business’ site. The promotion ofthe brand would also be significantly achieved through this approach.The online advertisement will be supplemented by print ads on thesenior and leisure magazines. Additional methods would target thecustomers through direct mail campaigns about upcoming tours anddiscounts, promotions, and the passing of other relevant informationto clients who have signed in as members of the website community.

Thecompany foresees that a $2.5 million will be needed as venturecapital for the start-up business. This high investment cost isattributable to the strong competition by the already existentbusiness. The functional companies in the industry would requireadequate resource allocation for the marketing strategies (Zhang,2017).

Thebusiness’ prospects are very attractive and promising. After therequired growth in the industry and market, Seduisant Tours plans fora gradual expansion to become the most successful business and thelargest market. Similar services would be offered to the newcustomers. Pleasing the customers through special event packages suchas golden anniversaries and birthdays would be very beneficial forthe retention of the customers. For uniqueness, the company plans toincorporate necessary infrastructures required for the provision oftours to the disabled (Hampel&amp Tracey, 2016).It is the belief of the company that there are very few businesses inthe market which targets this segment of the market.

Thediverse and unique services offered by the firm will lead to theattraction of a niche market. The company’s chances of success willbe further increased by its focus on quality, value, and service tothe clients. As more experience and expertise are gained, the companybelieves that it will grow substantially and succeed in its marketsegment.

  1. The Organizational Plan

Description of the Company

SeduisantTours Inc. was launched on 10th March 2015 as Travel Agency offeringcustomized tours to the customers. The company will provide the bestservices for the transportation of tourists as well as otherindividuals from region to region and country to another country. Itintends to start with the establishment of a website platform forbooking, consultation, and support for the clients at a 24/7capability. The business also will purchase a construction ofstructures that would serve as the central offices in Vancouver. Theoffices will have a garage, stores, and a parking space. In future,the company intends to purchase boats, ships, helicopters, and expandthe offices to host the new equipment. The proposed revenue growthafter a period of five years is above 150%.

Thecompany will rely on direct sales and online transactions as themajor models of service distribution. The online model will beefficient in the provision of customizable travel packages to thecustomers. This approach will engage many customers from all over theentire universe. The plan will also generate extra sales by helpingthe company market and advertise its services to very manyindividuals (Moriartyetal.,2014).However, direct sales approach will assist the company to save theextra costs required to maintain the retailers and wholesalers in thebusiness. These dealers take discounts and commissions which could beused to boost the productivity of the company. The company has alsopartnered with the Pan Pacific Hotel hence has been registered as acorporate organization. This incorporation will help the companycompete effectively due to the presence of an already establishedcorporate financial, human resource, and underlying research anddevelopment (Zhang,2017).

Mission

Ourmission is to promote the provision of trusted and professional toursand travels meant to assist non-profit organizations, corporateorganizations, and individuals in organizing all of their travel andtouring activities. We intend to position ourselves within theindustry in a way that allows us to compete as the most progressivebrand in the tours and travels in entire Vancouver. We also intend tobe among the top twenty tours and travels agency in the US after tenyears of business engagements.

Internally,our priority is the creation and nurturing of a healthy respectful,enjoyable, exuberant working environment. All the employees will befairly compensated and encouraged to form healthy workingrelationships with the customers as well as strive to offerhigh-quality services to them. The customer satisfaction will beensured through a mandatory follow-up and making future improvementbased on the client’s recommendations. We also seek a responsibleand fair profit which is adequate to sustainably maintain thecompany’s activities while fairly remunerating employees for theireffort and work.

BusinessModel

Thetravel agency offers unique services through its provision of theability of the clients to formulate a specific route for their trip.This is the only company that will be providing such services via theinternet in Vancouver (Litman,2015).The business’ website will also be uniquely organized with theincorporation of engaging content and gaming functionality. Thecompany plans to open new forms of travel such as cruise in theregion.

Strategy

Ourbusiness’ strategy revolves around the need for the provision ofquality service to the target clients. In this case, the firm’sobjective is to ensure that all the visitors to the company’swebsite and individuals who purchase its services are fullysatisfied. A professional team will be recruited, the provision oftravel packages which are custom designed, and carrying outconsultations regarding consumers’ preferences will help in meetingthe needs of the clients. Eventually, the campaigning team willcreate awareness in all the target market segments. The company seeksto cease the various advantages that enable it to remain relevant inthe increasingly competitive market. The clients will be free tocarry out their core activities as we adequately take care of theirtransportation needs satisfactorily. The various marketing tools willbe professionally planned for and presented to maintain a goodreputation and image of the business. We shall position ourselves inthe market as quality and reliable commercial transportation firmthat provides customer-need right image, reliability, enjoyment, andfulfillment. The creation of a good rapport with the key stakeholderswithin the industry will also be an effective strategy in promotingsuccessful competition (Kothari,Ramanna, &amp Skinner, 2015).These stakeholders should include hotels and organizations andindividuals in charge of the various tourist attractions. A goodrelationship with persons who sell and lease traveling gadgets andequipment is also crucial (Kotharietal.,2015).Additionally, promotional materials such as well-designed brochuresare a necessity in the creation of a winning business image. Thesematerials provide an overview of the services offered by the companyto give the clients a clear definition of the benefits associatedwith hiring the company. In the tourism industry, well-done factsheets, informative brochures, and business cards often have atriggering effect on the consumers’ decision of utilizing theservices. Therefore, undoubtedly, our approaches will result in anincrease in the sales of our services. Another strategy will be thepositive contribution in the conservation of the environment andpromotion of community access through organized public activities.The overall intention of these approaches is to remain fullycommitted to supporting development and growth in the tourism andhospitality as well as the overall economy of Canada (Kotharietal.,2015).

Facility

Thecompany plans to purchase 10,000 square ft. area of land in Vancouverfor building the company’s headquarter. This area will be designedinto a fenced garage, a store with the appropriate maintenanceequipment, and departmental offices. The parking space will also beprovided in this area of land. As a land saving mechanism, thecompany intends to construct an underground parking space just belowthe corporate offices. Since most of the transactions take placeonline, the company will be required to invest in internetinfrastructure as well as the supporting software (Chiappa,2013).The company also will depend on three buses, three vans, five taxicabs, and six bicycles to accomplish its aims. The costs for thevehicles are outlined in the financial statements section. Theoffices will be connected to the water and electricity supplies. Themanagement will, therefore, be needed to contact the local stateorganizations responsible for the specified resource allocations. Theelectricity will be a requirement for lighting and the powering ofthe instruments used in the garage as well as the computer systems.

Additionally,the company’s reliance on the internet marketing and an onlinedistribution model will necessitate the need for a website (Chiappa,2013).The site is meant to offer the clients will custom travel packageswhich they can purchase from the comfort of their homes. Thecustomers will be able to make changes to the packages to design anitinerary that fits their needs. The website as an asset to thecompany must have the necessary tools and technological capabilitiesthat meet the set aims and goals of the website. It has to be linkedto the payment method that accepts funds from the clients. Directphone calls to the site and live chats have are possible (Kotharietal.,2015).Relevant furniture including office desks, chairs, and tables is alsoa necessity in the main offices of Seduisant Tours.

Services

Thecompany is a full-service agency and sells travel packages fortourists in Vancouver and other parts of the world. This firm willspecialize in offering travel services to individuals who come toVancouver for recreational and tourism activities. Additionally, thepeople who come from other cities, states as well as other parts ofthe world will be targeted as potential customers. Additionalservices include assisting the clients in acquiring passports. Thecompany will also offer to provide the customers with thetop-of-the-line supplies and equipment. The travel will befacilitated by the buses, boats, vans, and bicycles that the companywill purchase. The company will also offer cruise and aircrafttransportation intended for overseas travelers. However, in the firstthree years of business, the company expects to be outsourcing theair and water travel that involves the transportation of a largegroup of individuals to large distances. Such arrangements will beorganized for the locals who wish to travel overseas by sea or air.For the travelers who chose to travel by train, similar arrangementswill be set to suit their demands. However, in these both instances,a travel agent will be assigned to these travelers for guidanceduring the trip. Most people wish to travel in areas that they havenever been before (Kotharietal.,2015).Our company will act as the link between the communities that live inthe destination and the travelers. The company will also offertranslation services for the travelers who visit a region where theinhabitants communicate in a different language from theirs.

Thecompany will maximize in the value addition of the services it offersthrough maintenance of a diverse knowledge about the tourism andtravel issues. The company will stay updated about the safety ofdifferent parts of the world. Issues such as floods, war, insecurity,and other natural disasters can be avoided by staying informed. Thecompany should ensure the travelers’ safety during the engagement.Value addition of the services would also entail the competitiverates, expertise, and focus on the tourism travels. These approachesare intended to increase customers’ satisfaction. Increasedsatisfaction with the delivered services would lead to increasedwhich will even enable the company to introduce more services thatthe customers inquire overtime. Animal travels and gaming activitieswill also be organized and provided for the customers who requestsfor them. These plans will include group horse and camel riding.

Ourunderstanding of travel is that it does not only involve going toplaces but experiencing passions of culture, aromas, and tastes.Therefore, the agency will have a better understanding of the hotels,cultures, different traditions, and geography of the places of visit.Our team of experts will bring the clients a personal touch andexpert advice. We will be determined to discover new experiences andshare them with people who engage us in the traveling plans.

Thecompany will also offer services in traveling planning, research, andadvice to the customers. Given the wide range of experience in thefield and being the experts that the customers` trust, the company’spersonnel will be prepared to handle any travel-related challengethat the client raise. For example, in cases where the clients wantto travel new areas, and they do not the costs involved in theaccommodations, dining and traveling costs, the personnel will bewilling insight freely. The company will offer genuine, reliable andadvice. This achievement relies on the business’ ability to carryout detailed research on destinations as well as the experience ofthe hired agents.

Ingeneral, these services include the traveling consultations, guidanceon accommodations, reservations, airline service, customer sales andservice, and tariffs (Hampel&amp Tracey, 2016).These services will either be performed by the company itself or incollaboration with other firms. Individuals seeking luxury hotelaccommodation and dining services within Vancouver will be directedto the Pan Pacific Hotel. We will strive to bring more business tothe hotel. I return, this hotel will offer financial advice,popularity, skilled human resources, and trust among the buyers.Other services might require the company to outsource equipment,expertise, and products for the satisfaction of the clients (Hampel&amp Tracey, 2016).Seduisant Inc. targets partnering with many hotels and touristattractions to increase its number of customers. This is meant tobenefit the company through increased number of the clients itserves. On the other hand, the new partners will receive the visitorsat their doors with ease and reliability. The customers will be ableto acquire all the services associated with the tours such astraveling, dining, accommodation, and guidance. Our company intendsto be the leading provider of traveling and advice services to thetourists. The motto of the company encourages the people to live ahealthy life as they explore the exotic parts of the universe.

SeduisantTours will be established to offer a variety of travel-relatedservices to different customers. The customers include the localfamilies, couples, foreign visitors, the common public, and theorganizations seeking transportation services in Vancouver.Additionally, these individuals are of all ages and different incomelevels. Each of these clients will be offered an opportunity toselect services that suit the financial status among other demands.

Wewill strive in the creation of all-encompassing and bespokearrangements from individual travel to group movements of thousandsof people. We take care of the client’s preparation concernsincluding the ones that come during and prior the trip. For instance,we take care of the details regarding flights, car hires, hotels,cruise, and chauffeurs. We also guide clients through the onlineprocess of creating a perfect itinerary based on their requirements.Our website has tools that allow the customers to create personalaccounts. These individuals have an ability to receive save with usfor a period to use the money for a special event. Families will beencouraged to create these accounts and keep the funds with us forplans on traveling. Suggestions and revision of the already submittedtravel packages will be easy for the individuals who own thesepersonal accounts.

AdministrativePlan

LegalStructure

Basedon the advice offered by the financial and legal advisors Seduisantcompany will follow the format of a corporation. This is due to thepolicies of the company which entails the purchase and incorporationof pre-existing companies. Although the business will be started as asmall business, it will assume a larger and more complex structuresince as a foundation for future growth. This makes the company anindependent legal unit which is owned and controlled by thestakeholders. The business itself will be held accountable for allthe wrong actions or losses incurred at any given time. As defined inthe laws of the state, this structure will require officialregistration of the company’s name. The due process of theregistration of this endeavor will be followed with the involvementof all stakeholders. The company will seek licenses and permits atthe end of the implementation phase. The company will be subject tofederal and state taxes. This condition will call for theregistration with the state local and state revenue agencies toreceive a unique tax ID. Some of the benefits associated with thisbusiness structure include the limited liability of the stakeholders.The shareholders are only held accountable for their individualinvestments in stock of the firm. Therefore, the shareholder’spersonal assets are protected from the corporation’s debts. Thisstructure will also give the company an effective way of raisingcapital through the sale of stocks. Additionally, this form ofbusiness is known to attract motivated and high-quality workers dueto the associated potential for partial ownership via stock optionsand competitive benefits. Nonetheless, the company will be preparedto combat the problems relating to the adoption of this structure.These problems include double taxing, additional paperwork, and moretime and money spent on the company’s implementation. The corporateofficers will be responsible for the determination of the directionof the enterprise. Critical decisions regarding the corporationshould be made in the board meetings. An incentive plan will be putin place to allow the corporate members to acquire the stock of thecompany based on the set profit goals.

Theseleaders include the corporate’s president, vice-president, theTreasurer, Executive Manager and the Secretary and Legal Counsel.Among these persons, it’s only the president who will be working inthe day-to-day business (Abou-Shouk,Megicks, &amp Lim, 2013).The rest interacts once in a month during the board meetings. Theseindividuals may also be summoned at any other time when issuesrequiring their attention arise. The consultations between theleaders on a monthly basis offer the company honest advice andexpertise for the reduction of the enormous costs of investment andmaintenance of the firm’s activities (Abou-Shouket al., 2013).

Registrationof the Business

Dueto the delays in the registration process of businesses, themanagement has already laid down plans for earlier registration ofthe business. The registration process will start immediately afterthe completion of the financial and planning stages. This processwill allow the registration of the company as a legal entity andeliminate from various penalties that may arise from failure toregister a business before initiation. The registration is performedvia the government agencies. Seduisant Tours will be recorded as anincorporated company in the British Columbia Corporate Registry andawait approval. The business will later acquire a license. SpecificLicensing will include the Licenses for small Vessels’ operationssuch as the boats, and other water equipment less than 15 tons.Commercial Drivers’ License will also be a necessity due to theoperation of the ground transportation by limousines, cars, vans, andbuses. Additionally, the National Park Permits will be acquired toenable the business to take the visitors to various parks withoutlimitations (Abou-Shouket al., 2013).As a travel operator, the company will also pay an annual fee, beprovincially licensed, and a financial security bond. The companywill also cooperate with insurance companies to cover its losses,dangers, and for the security of the clients.

CorporateOfficers

Thecorporate leaders will be composed of the Pan Pacific Hotelrepresentative, Seduisant Inc. Director, and the representative ofeach of the department including the Human Resource, MarketingPersonnel, Customer Care, and the Travel agents. These individualswill be responsible for the management of the overall company as wellsetting new terms of the association between Seduisant and PanPacific. The head of the corporate will be Seduisant Director butwill work in close consultations with the Pan Pacific representativefor guidance and leadership.

Implementationof a reliable and sustainable corporate travel management will beeffective in the promotion of high performance of the agency(Abou-Shouket al., 2013).This function allows easy administration of the firm’s strategicapproach to travel and negotiations with vendors. Other capabilitiesare also allowed including the day-to-day operations of the travelprograms, credit card management, traveler security and safety, andthe management of data on travel and expenses (Abou-Shouket al., 2013).The duties of the agency will be clearly distinguished from those ofthe corporate organization. The day-to-day provision of travelservices to the corporate clients will be part of the implementationof what the corporation has already negotiated. These activities willbe guided by the policies and regulations already put in place by thecorporate leaders.

Additionally,the corporate will be in charge of determining the costs fortraveling. The leaders will come up with a price for all the packagesthat the client customizes. These prices will immediately show on theclients’ computer immediately they are done with the development ofthe itinerary. Subtotals of the cost will also be presented tocustomers as they add different elements to their travel. Thecorporate leaders will negotiate These costs per every detail. TheTravel and Expenses are not limited to the rail, hotel, and carrental prices but include the expenditures incurred throughout theentire trip. These costs will include the funds spent on meals,gratuities, and other requirements during the trip. A function of theAdministrative Services Department, Procurement, HR, or Finance,under the title Corporate Travel Manager, will be responsible for themanagement of these costs with the help of the entire corporateleadership.

Managementand Personnel

Management

Thetourism industry is very robust due to its global size. Even beforeother aspects of globalization had taken root, people used to movefrom one region to another to see new landforms and cultures. Thiscondition explains the early emergence of trade and the continuousgrowth even today. The tourism industry Vancouver shows a lot ofpromise for expansion (Litman,2015).Additionally, the tourism industry in the region, just like in anyother part of the world, encompasses large levels of investments. Italso provides a large number of both indirect and direct jobs. Thisindustry also embraces diverse cultures and traditional beliefs. Thestudy of all these factors and their manipulation while conductingbusiness is very complex and committed structures for ensuringefficiency. Therefore, the management of the Seduisant Inc. will be apriority for the company.

Thecorporation will be headed by the by the president and the executivemanager. The executive manager will be the representative of the PanPacific Hotels Group. Since the company will be incorporated in themanagement of this competent global company, its success isguaranteed. The parent organization has already established itself asthe best hotel management company. It has over 30 hotels, servicedsuites and resorts in Asia, North America, and Oceania. With itshotels being able to accommodate over 10,000 associates and servingover a million customers and guests annually, we believe that thecompany will believe that its leadership will over the best chancefor Seduisant Tours Inc. Our company will be willing to embrace itsbusiness model as it strives to offer the best traveling services tothe people who Pan Pacific and other hotels around the region. Theintended incorporation is expected to bring a 250% growth rate afterthe first two years of the engagement. This success is attributableto the company’s culture, diverse workforce, code business conduct,and community and environmental commitment of the Pan Pacific.Seduisant will gain an advantage from this association due to theimproved trust and confidence offered by the Pan Pacific hotel to thecustomers.

Personnel

Thecompany intends to hire fourteen full-time workers. These willinclude three office managers, five travel consultants,Administration and Human Resource manager, the chief executiveofficer, five members of the sales and marketing executive, threeaccountants, a web administrator, four supervisors, and a customercare executive. The managers are promised a monthly salary of $60,000each. The chief executive offers will be earning a salary of $80,000,while the marketing and sales personnel, the accountants,supervisors, human resource personnel, and the consultants will beallocated an average wage of $45,000. However, the sales andmarketing personnel together with the marketing specialists will beassigned a 5% commission for every new contract that the companysigns through their help. Both the president and the executivemanagers will be guaranteed a salary increment justifiable by theprofitability of the agency.

Training

Allemployees must participate in a thorough training offered by thepresident. The president will explain to the new hires about thepolicies and procedures regarding the various standards that haveset. Other forms of information to be offered by the president to theworkforce will include the provision of a landscape, safety andliability procedures, and theft and equipment care policies. Thesupervisors will be responsible for the reviewing each of theassigned account, assignment of and training on the equipment, andensure maximum precautions regarding chemicals. The vehicles andother transportation machines must be checked before and after work.The supervisors hold the users of these materials responsible incases where faults are observed.

Trainingthe employees is a critical practice within a travel agency. Both thenew and the experienced workers should be offered with trainingprograms which help know what they are doing, help the save time,have a positive attitude about the company, and start off at a goodpace. Seduisant investment in the new hire orientation programs isefficient in showing the new workers how to manage various aspectswithin the firm. The workers are introduced to the unique aspects ofthe company that may influence their ability to perform their duties.Orientation introduces the new employees to the services, businessmodels, policies, cultures, and marketing strategies of the firm.Seduisant intends to rely on this approach to improve employee’ssatisfaction and retention within the workplace. Achieving thesegoals would lead to the maximum productivity of the company which maysubsequently improve its competitive advantage.

Moreover,Supervisor Management Training is also essential for the successfulfunctioning of the company. Workplace safety, satisfaction, andproductivity will be maintained through regular training anddevelopment programs for the managers. Some of the key emphasisduring the training should be the employee motivation, managercommunication, and recognition of the employees’ input. Thecompany’s corporate officers acknowledge that the managers are busypeople. Therefore, to avoid taking much of their time, which may leadto underperformance, this group of individuals will acquire theirtraining programs via online. The schedules for their training willalways be communicated earlier. The managers will then be required tolog in into their personal accounts to the corporate website andreceive their learning packages. The packages will be formatted inthe forms of texts, images, and videos.

Theexperienced workers will also be constantly trained on variousaspects affecting their career. These issues will include theapproaches such as training on the health and safety administrationwithin the workplace. The drivers and the travel agents must betrained to the standards that ensure their safety while operatingmachines and visiting potentially risky areas. The vehicles must bekept in a particular condition which does not bring any harm to theoperators. On the other hand, employees working indoors will requireimproved environmental conditions to ensure their health and safetyare put into consideration. According to OSHA, the training is a verycritical aspect for ensuring the workers are protected from illnessesand injuries (Moriartyetal.,2014).These individuals must also be educated on fire prevention andemergency preparedness. For the travel agents, cultural diversitytraining will be paramount since they are required to interact withindividuals from different backgrounds. Team building trainingprograms are also necessary to make sure that all people can workcollectively towards the same goal.

PersonalDuties

President

Thepresident is the owner of the business will be responsible forsetting the policies and training of the new recruits (Kamal,Zawawi, &amp Abdullah, 2016).He will also be the person with the power to hire, solicit, andinterviews new workers. Other duties include the assignment ofaccounts to the supervisors, approval of the purchased goods, signingthe checks after review, and carrying out follow-ups of supervisorsales leads (Kamaletal.,2016).The president also deals with the issues raised by the customers thatthe supervisor cannot satisfactorily handle.

Thefour supervisors report directly to the company’s president. Theyare responsible for the management and forecast of the workschedules. The Office Managers also reports to the presidentdirectly. Hired employees on part-time basis report to the supervisorconcerning identified problems and also follows the instructionsissued by the directors. The president is responsible forimplementing policies set by the senior leadership and developing thecompany’s vision. This individual also has the power to direct allthe other leaders and employees in the company. In the SeduisantInc., this leader is answerable to the board of directors who formthe corporate officials as discussed. The overall functions includestrategy development, performance development, and maintenance of thepublic relations. The president creates both the long- andshort-term strategies regarding research, marketing, sales, andstaffing needs within the business. This leader has to regularlyreview the performance of the overall business in an attempt tomanage it (Kamaletal.,2016).Other departmental leaders have to brief the President throughwritten reports and sometimes in face-to-face communication. For thepurpose of accountability, the results of the president’s reviewshould directly affect the compensation of the reviewed managers.Studies reveal that the president acts as the face of theorganization he/she leads. The President involvement in addressingthe customers, speaking to the members of the media, contribution tothe non-profit organizations, and solving community crises affectsthe performance of the business. Positive contributions lead tobetter results in the productivity while poor engagements weigh downon the companies’ success.

Traveland Tour Consultant

Theseindividuals are responsible for the clients’ booking of thetickets, booking of the shuttles, taxi cabs, hotels, cruise linebookings, and renting cars among other services related to the traveland tours (Kamaletal.,2016).They will also be charged with the planning, designing, and producingevents while ensuring the management of the delivery elements of theproject delivery are taken care of within the set time limits.Liaising with the clients to identify their needs and perceptionregarding the company is a paramount action meant to ensure customersatisfaction. These people must also ensure compliance with safety,insurance, health, and legal obligations.

Theworkers specialize in the booking and coordinating of the travelarrangements for the groups, individuals, and businesses. Althoughthe Bureau of Labor Statistics argues that 14% of these specialistswork independently, the company offers the best services by hiringsome of the most competent personnel (Kamaletal.,2016).The company values the role of these individuals in research, advice,and book trips. They carry out diligent research on travel optionsfor the enterprise. Apart from the necessary information regardingthe hotel rates and the airfare, these individuals offer insight intothe aspects such as the best places for accommodations, visits, idealdates, and eligible promotions or discounts currently in theindustry. This information is offered while considering the budgetarylimits of the company.

Theresearch helps the travel agents to provide reliable advice to thecompany. The senior management relies on the insights provided bythese people while making decisions. Clients will be able to trustthe company due to the professional advice offered to them.Therefore, these individuals also play a vital role in attracting andretaining the buyers in the firm (Kamaletal.,2016).Other daily duties of the agents will be to liaise with the clientsover the phone, email, or in person. They also prepare customizeditineraries for the clients, issue the tickets, and other relevantdocuments, and participating in ongoing training with other workers.

Adminand HR Manager

Theperson is responsible for the overseeing appropriate administrativeand HR tasks for the company. The Manager also ensures there isefficiency in the processes, procedures, and policies. The manager isalso responsible for maintaining a reliable supply of resources inother departments with the organization by checking stocks,expediting orders, and evaluating new products. The HR Manager willalso achieve the definition of the recruitment positions for the newemploys.

Thisdepartment is responsible for the maintenance of administrative staffby orienting, recruiting, training, and selecting of the employees.The maintenance of a secure and safe environment is also a pivotalrole of this department. The manager of the Seduisant’s HRdepartment is charged with the creation of opportunities foremployees’ personal growth. Additionally, activities such as theprovision of historical references by utilizing and developing of theretrieval systems are the duty of the Administration and HRDepartment.

Marketingand Sales Personnel

Theseindividuals will be assigned a duty to sell the insurances coverrelated to traveling. They also will be required to convince theclients to purchase the travel book guides as well as the foreigncurrencies. They will also be charged with writing professionalproposals and negotiating rates and fees in line with the companypolicy (Kamaletal.,2016).Another pivotal role of this department is developing, executing, andevaluating new plans for the expansion of increase sales.

Thefunctions of these workers directly influence the profitability ofthe company. These duties reflect the strength of the services thatcompany offers to its clients. These individuals are required tosegment the market into groups that can be handled by specifiedprofessionals. These parts are classified regarding age anddestination. Each of the professional is assigned a category wherehe/she is most competitive. The destination is divided intogeographical region allowing the marketers to concentrate theirresearch on a smaller area. These individuals should also come upwith effective strategies for their individual segments. Differentpopulations require varying approaches towards effective marketingand influencing their willingness to purchase the custom itineraries.The formulation of the marketing plan is also a responsibility of themembers of this team of professionals. The decision of thepromotional approaches and the pricing is a responsibility of theindividuals responsible for each segment. However, it’s the duty ofthe marketing manager to ensure that the pricing are not inconsistentand the promotion practices are not contradictory. The manager isalso responsible for promoting an efficient and cohesive marketingteam (Kamaletal.,2016).The team will be able to balance the marketing environment as well asthe company’s sales towards the achievement of a common goal whileeach leader of the segments takes responsibility for their roles.These persons should also meet the sales and marketing objectives setby the management. For example, in this case, these individuals haveto work extra hard to ensure the company achieves its targeted 50%growth rate in the year 2016. These people protect the value of thecompany by making sure the collected data on sales, purchase, andcustomer preferences are kept confidential.

Accountant

Theseindividuals are very critical in the travel agency because theyprepare financial reports, accounting statements, and developbudgets. In this company, these people will be engaged in the riskanalysis and financial forecasting. They payment of the otheremployees will be facilitated by these individuals since they will beresponsible for the administering payrolls. The management and thedevelopment of financial policies and systems cannot be achievedwithout the help of the accountants (Kamaletal.,2016).

ClientService Executive

Thesepeople will be responsible for welcoming the guests into the mainoffices, respond to their phone calls, emails, and phone textmessages. They must be highly skilled in the communication skillsthat should be used to develop the clients’ interests in thecompany. They will be needed to stay abreast with the new informationregarding the company’s services (Kamaletal.,2016).This approach allows them to respond to the customers` questions andclaims professionally.

Finally,the Part-time employees and the laborers report to the supervisor fordirection and approval of their wages. These individuals will berequired to work on specific short-term duties such as makingdeliveries, installation of new equipment, and servicing andcheck-ups of the vehicles. They are responsible for reporting anychallenges that may affect the company adversely in their area oftheir engagement (Kamaletal.,2016).They also follow the instructions issued by the supervisor.

Employees’Profile

Thecompany will manage and evaluate the skills and capabilities of theemployees to ensure they are reliable in meeting set goals andobjectives. Some of the qualities which every worker is assessed oninclude a neat appearance and hard work, possession of excellentcommunication skills, like working outdoors, love for nature, abilityto follow directives. The president possesses five years’experience in a management position. The other senior managers alsohave expertise in the managerial sector ranging from 3 – 5 years.All the permanent employees have educational qualifications toperform the specific roles charged with n the office they occupy.Moreover, all employees must portray good communication skills,willingness and desire to work outdoors, and spirit of team work(Kamaletal.,2016).The ability to follow the directives issued by the superiors, theresponsibility of safety concerns, and the dedication of performingoutstanding jobs are a vital requirement for the employees (Hampel&amp Tracey, 2016).

Lettingthe customers fill their professional profiles allow people areworking remotely to have a sense of the values and levels of eachother. No chain of emails or number of phone calls can bring aboutthe perfect representation of the individuals’ personalities. Theemployees will be forced to work most of the times outdoors as theymeet the clients and guide them through the tours. Therefore, theseworkers may find not the time to interact with each other in theoffice. However, the knowledge of an individual’s know-how andpreferences is crucial in the creation and maintenance of strongworking relationships. These profiles also help the employees tonetwork even outside the business (Hampel&amp Tracey, 2016).The applications such as the LinkedIn allow the employees to createlong lasting relationships with other professionals. Talent scoutingis enabled through the definition of these individualcharacteristics. As the company grows, the number of the employeesalso increases. The employers judge the workers through the review ofthese skills and background information contained in the profiles. Ifthe profiles are accurate, adequate, and regularly updated, theyoffer means of saving time for the management team which seeks tocarry out analysis aimed at selecting specific individuals forcertain critical roles (Hampel&amp Tracey, 2016).

Accountingand Legal

Accounting

Thebook and record keeping will be regularly stored on the computer.These files will be printed at the end of every year. The printeddocuments are given to the accountant for accounting and auditing todetermine their accuracy. The prospect database and the customer baseare stored in the ACT software from the Contact SoftwareInternational (Donelson,McInnis, &amp Mergenthaler, 2016).This application allows effective management and scheduling ofaccurate accounts. On the other hand, the Microsoft’s OfficeProfessional enables the development of customized spreadsheets,development of the proposals and presentations, and the performanceof WP (Donelsonetal.,2016).These programs are off-the-shelf are easy to support at a veryaffordable cost (Donelsonetal.,2016).

Legal

Thebusiness strives to ensure that all the legal matters and contractsare handled by a professional who is experienced in the law. Thecompany plans to hire a lawyer who will serve as a board and tackleall the issues that arise in the company seeking the attention oflegal judgment.

Insurance

Thecompany has engaged the Columbia Insurance Group to insure itsproperty, assets, employees, and the overall business. The chargesfor the insurance of Seduisant with this company are as follows:

Carrier: Columbia Insurance Agent: Scott Mukensnabl

8000NE Parkway Dr STE 150

Vancouver,WA 98662-6732

Typesof the Insurance:

Business/Personal 500,000

Deductible 3,000

Liability 1,100,000

Equipment: 40,000

Deductible 500

Liability 1,800,000

Vehicles: 12,500

Deductible 1,100

Liability 1,1100,000

AnnualPremium: 7500

MonthlyPremium 500

EmployeesComp. 1.23/1Kg gross payroll

Security

Thecompany must be protected against both external and internal theft.The management has developed protective measures for enabling thecompany to combat the challenges early enough. These securityconcerns should be addressed before the existence of the actualproblem. This approach will be meant to eliminate the losses andtroubles that may be experienced due to theft cases. Internal theftand dishonesty among the employees lead to significant losses(Donelsonetal.,2016).Shoplifting of the supplies in the organization could be solvedthrough the installation of four circuit cameras in the offices andcorridors. The team must also be prepared to deal with the cashthefts. The theft of the $600 the petty cash limit can be controlledthrough the introduction of the daily receipts to be received for allthe withdrawal. Avoidance of the falsified signatures within thecompany can be monitored a thorough check of the President’s signedchecks. The workers’ orientation is important in the reductionstress and theft in the enterprise. The monthly inventory will bewell-managed by the managers to ensure the supervisors account allthe products and equipment. Additionally, the company must alsostrive to reduce the external disturbances related to the workplace.The cameras will be placed in the garage, main gate, and parkingarea. Seduisant has also implemented the alarm sat in the offices.These alarms should be directly connected to the police posts tooffer quick means of seeking emergency help.

  1. Marketing

MarketResearch

Themarket research will entail a careful analysis of the buyers and thebusinesses already in the market (Westwood,2016).A workable plan should involve an increase of the chances ofacquiring new customers and retaining them within the firm (Westwood,2016).In this process, the demand for the product should be evaluated and apossible price range established for the services. As establishedduring the business survey, the inhabitants of the city are activeparticipators in the tourism industry. They are willing to offer aconsiderable amount of money for amusement and enjoyment. Thebusiness will invest in the identification of the potential buyersand set aside funds intended for the implementation of the strategiesthat ensure maximum competition. Identification of the sales andmarketing activities to be conducted is also paramount in a startupbusiness. Additionally, the firm invests in maintaining novelstrategies in the performance of its duties meant to satisfy a broadrange of customers (Westwood,2016).Informed decision-making arises from the adoption of a perfectbusiness marketing plan (Westwood,2016).

Themarketing plan for the company relies on three critical approacheswhich are analyzing the market, the definition of a winning salesstrategy, and advertising (Braun,Haynes, Lewis, &amp Taylor, 2015).The marketing plan will act as a defined process of acquiring moresales and the subsequent high profit. The program offers anexceptional influence in the targeted market segments. Through thisapproach, the company will be able to evaluate the characteristics ofthe buyers in each segment and strive in the elimination of possibletrade barriers. This plan sets a clear path on the ways through whichthe customers will be reached and informed about the well-being ofthe offered services. The process also entails the conversion of thisawareness into a number of sales sold within a specified of time(Braunetal,2015).It’s the duty of the marketing personnel to carry out an analysiswhich shows the impact of their efforts in the overall success of thecompany. Marketing planning gives the businesses the ability toconduct forecasts through the estimation of the value of sales thatmay be achieved from specific marketing efforts. These salesforecasts will subsequently be used to come up with a productionschedule. The financial budgets will make use of these estimates todevelop resources. Moreover, these financial predictions are alsoimportant for the human resource department to prepareemployees-related plans. The formulation of goals sets a clear guideof the activities to be carried to achieve maximum productivity. Thebusiness will follow this written directory to promote its services.Proactive involvement of the management in the success of its salesis allowed through the early planning of the marketing strategies.

Themarketing process of our services will involve not only just themanager but all the aspects of the financial functions of thebusiness. This approach will help bring the management and otherdepartments of the organization come together in developingstrategies that would enable the business to reach maximum plans.This method also entails the consideration of various vintage pointsincluding finance, legal, operations, and marketing (Braunetal,2015).A comparison of the company’s services to those of the competitorswill be necessary to determine the best modes of commoditydevelopment and improvement. The principal evaluations will entailreviewing our services concerning their quality and customerpreferences and the responses portrayed by the consumers. Thisprocess of determining the relevance of the services to the marketwill be performed continually (Braunetal,2015).On the other hand, the company will adopt a pricing system whichattracts the customers to the enterprise. However, the managementwill regulate the prices to ensure they are not too low to cost thebusiness losses. The major aim of every business is the generation ofrevenue through the attained profit (Westwood,2016).Therefore, the business will be carrying out a monthly review of theincurred costs and the acquired benefits. Consequently, the managerswill be charged with the responsibility of devising strategies whichmaximize the profits without necessary increasing the expenses of theservices. In cases where the price is increased, the management willensure the quality of the services remains competent to retain thecustomers and attract new buyers as well.

Consumerbehavior is also an important aspect of the marketing planning. Suchresponses will be analyzed by answering the questions: When do thevisitors travel (Westwood,2016)?Where do the majority of the travelers come from? What are theeducation and economic level of the client? What means of travelingand accommodations do they prefer (Westwood,2016)?

TargetMarkets and the Strategies for Sales

Psychographicsand demographic composition of the travel industry cut acrossindividuals from all walks of the world there lacks cleardistinction between six who are naturally inclined to purchase theseservices and the ones who can’t. Some of the agencies in Vancouvertarget only the rich clients while others have shown an interest inthe corporate clients. However, Seduisant Tours Inc. appreciates thefact that all individuals who can afford to move one place to anotherthrough paid means of transport are potential customers in thisindustry. Therefore, this company intends to offer these services toall the clients. The company’s target is to cut across the localand international boundaries. The business proposes a concept thatwill enable it to work with highly placed corporations and people inVancouver and at the same time take care of the needs of smallerbusinesses and low placed people. In particular, the company will beready to offer good travel and tour deals to potential couples,corporate organizations, blue chip companies, politicians, publicsector, and sports organizations. Schools, families, andentrepreneurs would also form important groups of buyers.

Oneof the unique approaches to be adopted by Seduisant to increase thecustomer base is the classification of the buyers in profiles. Theprevious surveys reveal that the business’ potential customers canbe classified into profiles A, B, and C (Zikmundetal.,2013).Some of the variables used in the identification and classificationof these individuals include age, income levels, shopping trends, andthe gender, among others. The business aims at selling to individualsfrom all these categories. However different customer profile willrequire different approaches of advertisement. Seduisant intends toidentify the best market through the conduction of a reliable marketresearch. In the hotel and tourism business, there exist differenttypes of individuals acting as the buyers.

Seduisantwill target the wealthy people while marketing its services. Thisgroup is composed of health conscious individuals who are hardworkingand ready to take a vacation during their free time. Their averageincome is above $75,000. The rich are willing to pay for servicesthat meet their needs. Their primary concern is satisfaction andluxury. Some of the approaches to market to these individuals willinclude of use of powerful language. Maintenance of a high show ofexpertise while serving the wealthy is also an efficient strategytowards impressing to continue visiting the business premises(Zikmundetal.,2013).The wealthy are not willing to waste money on inexperienced and arewilling to pay more for experienced and professional services.Therefore, it will necessitate the company to hire workers who areexperienced in the hotel business and traveling services. Resourceswill also be allocated for the training of the employees on how tomaintain a professional image among other reliable skills that wouldhelp the business outcompete other firms (Chiappa,2013).Seduisant will strive to become an expert in travel, financialinvestment and planning, customer advice, and planning of specialevents. The management must talk about themselves to clients throughthe same attitude. Clients should not be taken advantage of sincethey would like to purchase services that are worth their money andtime. The brand must have an ability to communicate about the majorbenefits of the company to these individuals. The company must alsobe willing to spend more for it to attract more customers from thiscategory.

Theprofile B as discussed earlier is likely to engage travel programsthat involve their families. These people are willing to purchasethat make their families enjoy good holiday experiences. Therefore,marketing to these individuals would require planning for holidaytravels that suit their need. Seduisant plans to capture theattention of these individuals by preparing and advertising travelpackages for the families. These packages will be classified by thecost of the services, a number of people in the family, and the kindof services for the families (Westwood,2016).This approach would also enable individuals from different economicclasses to select packages that fit their budgets. Profile C whichcomposed of the youths in college and other middle-class citydwellers will also be targeted in the business. Some of theactivities will be initiated to acquires buyers from this segmentwill include the organized, skiing, swimming, and visits to theselected attraction sites. The company’s bus will be used totransport the clients who travel together to reduce the costs. Thisapproach will work efficiently for the youths who have little moneyand who love to socialize with their age mates. Special programs withstandardized will also be organized for the young couples who wouldlike to travel alone. Outdoor activities are highly recommended forthese people. The single travelers will be required to hire thebusiness’ taxi cabs among other requirements.

Apartfrom the private entities discussed above, the business will alsotarget corporate institutions. Examples of corporate travel includethe seminars, business workshops, team building, retreats, incentiveprograms, large events, meetings, conferences, and congresses. Due tothe complexity of this sector, the travel agency will partner withthe companies which specialize in conference services management. Ourfirm will act as a Destination Management Company to offer travelservices and deliver incentive programs and events.

Thecompanies which their employees to tours and training programs mayseek transportation services from the Seduisant. Maintenance of agood relationship with the hotel businesses within Vancouver willhelp the company expand its service delivery (Litman,2015).The hotels and other businesses which outsource travel services forboth their clients and customers serve as a good source of income forthis business. Strong ties and networking with the corporate firms inthe region are very important. The business will also actprofessionally and distribute its printed business profile to thesepotential purchasers for review and possible hiring. The three targetpopulations are significant for the company because they have beenobserved to spend a higher amount of money on the adventure trips.However, the company will not make any exclusion for both men andwomen because there is little variations on travel preferences basedon gender. Those requiring special attention based on gender, age, orother differences will still be able to select unique services on thewebsite’s customizable travel options.

Competition

Theprimary competitors of the Seduisant Tour Inc. are the Marlin Traveland the Renshaw Travel. Although these two companies have beenoperational in the region for some years, Seduisant is prepared toassume an upper hand in the market. These businesses target luxurioushotels and resorts hence eliminating the high population of themiddle class and low-income earners. As evident in the Seduisant’smarket plan, our business will concentrate on three segments whichinclude even the poor and the youths who may not be willing to spendtheir money on luxurious tours. Our company has found the right nichein the overly crowded and competitive market. Based on a surveyconducted during the planning process of the startup, the buyingattitude of the residents of Vancouver is highly influenced by thenew web technologies (Litman,2015).Consumers have a high demand of shopping and conducting other formsof business at the comfort of their homes. Seduisant seeks to takeadvantage of this requirement as an opportunity for expansion sincemost companies’ online presence is not entirely dependable. Thecompany will rely on customizable travel routes designed by thecustomers themselves via the company website. The organization of theinformation on the site, advertisements, and programs posted on thesite will all be designed and developed to meet the customers`demand.

Thecustomizable packages will be fully detailed eliminating the need forthe clients to visit our offices for travel application. The paymentof the services will also be made online. The customers will beallowed to pick from a variety of destinations, routes, hotels,tourist attractions, and other numerous recreational activities to bein incorporated in their tours. The current travel agency within thecity does not offer such customizable services. For instance, MarlinTravel’s website offers packages that allow the customers to choosejust a destination and date of the activity. According to customers,this is not sufficient (Moriartyetal.,2014).They are forced to call or email other details to the company. Toavoid wastage of resources and time our company intends to maximizeon its site to receive booking information and respond to thecustomers. The customers will be receiving calls to congratulate themfor a successful application. Customers who engage our agents fortour guidance will be picked from their point of departures and takenback after the tour not unless if they advises us differently.

Onthe other hand, Renshaw also concentrates on offering luxuriousservices which can only be accessed by a small proportion of thepopulation. For example, it gives discounts on accommodation anddining at the Four Seasons Resort. This is a valued hotel, and hencemost people from the middle and lower economic classes may neitherafford to dine nor enjoy their living there. Therefore, theapproaches adopted by this travel agency are seen to leave out a verylarge population. Even with 50% discount offered by Renshaw, theaverage resident of the city cannot afford to spend a night in someof these luxurious hotels. Seduisant intends to serve theseindividuals who have been left without ways to enjoy theirhoneymoons, vacations, leisure time, and other special occasions.Renshaw’s website is also not user-friendly and does not offercustomizable packages to the customers. The clients’ applicationprocess is limited. Interested buyers have to visit the physicalpremises to make a detailed booking.

DistributionMethod

Thecompany also intends to devise effective models of distributingservices to all the consumers (Zikmundetal.,2013).Distribution will be a critical aspect of the marketing plan whichhas a significant influence on the profit margins, brand image, andthe volume of sales. A review of the options for distribution and howeach fits in the marketing strategy help in the brand protection andmaximization of profit and sales. According to research, differentmodels differ in resource requirement, complexity, customerrelationships, and the costs (Moriartyetal.,2014).It is the responsibility of Seduisant’s management personnel tocome up with a model that reinforces and matches the objectives andgoals of the company’s marketing plan. One of the approaches to beadopted in the company will include direct selling to the populationswhose interest in the tourism industry is high and continues to grow.In this model, the business assumes a direct-sales channel thatallows the management to keep all the revenue under the company’scontrol. Additionally, this approach is effective since it allowsthe management to choose the clients, conduct market research, aswell set the price of the services. However, this method ofdistributing the services to the clients requires a lot of planningand implementation in business (Braunetal,2015).This condition may hinder productivity by taking the focus away fromthe central preoccupation such as the production of high-qualityservices. The capability of the Seduisant Inc. to segment, identify,and research on new opportunities in the market will lead to easeimplementation of this method of service distribution.

Thebusiness will also greatly rely on the online channels to sell anddistribute the services. As discussed earlier, the business willdepend on the utilization of customizable packages on the company’swebsite. This approach will help reach a large population who mightend up purchasing the services. The site provides a capability forthe customers to select and pay for the services based on theirpreferences. The selection is flexible and includes a high number ofdetails to be identified by the client. The approach cuts out themiddleman but maintains the ability of the business to sell to abroadly-based market making the method very attractive for the travelagency (Braunetal,2015).This process will entail the online ad campaigns, social networks,and message boards as ways of spreading the word for the quickachievement of a substantial volume of sales. A strategic directionwill be needed to keep the potential customers engaged and to avoidchallenges of significant variations and instability. Additionally,the online presence will allow the company to utilize other popularwebsites to market and receive more sales for their services.Private, government and daily deal websites will be engaged for thispurpose.

Ourdecision of the distribution method is based on the customers’preferences. Most clients’ in the hotel and tourism industry likesto buy the services in a way that does not take much of their time.They prefer booking the services via a phone a call or any othermethod that does not involve their traveling to the company’sphysical location. The decision relies on the evaluation of where thecompany could best compete in the market. Impacts of selling inparticular regions should be continually evaluated over time andchanges in the distribution patterns implemented to ensure maximumsales (Braunetal,2015).

Sellingdirectly to the customers will lead to the elimination of the extracosts that would be paid as commission to the retailers. Instead,this commission is paid to the marketing and sales personnel tomotivate them in the expansion of the company. The involvement of thewholesalers and retailers is also associated with bad debt within abusiness.

Advertising

Weparticipate in both paid and unpaid business advertising approaches.One of the paid methods of marketing utilized by this companyincludes the Newspaper ads (Ogilvy,2013).These ads are identical in all the areas where they are posted.Similar ads should be added to newspapers belonging to differentcompanies. The management also strives for uniqueness to bring aboutthe identity of the firm. The timing for these ads will be monthly.The ads will preferably be added to the section of the Gazettetackling the tourism and travel industry (Ogilvy,2013).Interested people of this part might find the services offered by theSeduisant. The ad will also consist of the contact information andany other information regarding the company that might influence theclients’ buying decision.

Thephone books will also have relied on the advertisement of Seduisant’sservices to the public. The management will finance the publishing ofthese ads to the NYNEX Phone Book (Ogilvy,2013).Additionally, including these advertisement materials in the LocalCable channels will also be effective in creating awareness of thecompany.

Thecompany will also rely on the direct mails to reach the target marketsegments in this business. On the other hand, since the companyrelates to the visits intended to enjoy the nature, the company mayeducate young people about the benefits of taking care of theuniverse. This sensitization is done through brochures, signboards,and word of mouth (Ogilvy,2013).This approach serves as a way of community involvement in the fundingof advertising of the company’s services.

Competitiveadvantage

Thecompany will emphasize on the improvement of its services’ quality.The management will invest in three basic approaches to promotingcompetitive advantage which include services and niche strategies,costs approaches, and differential commodities. We intend to offercompetitive prices along with good consumer services. For customerswho wish to be driven within the beautiful city, the average costswill be similar to those of an individual using other means oftransport on a normal day. The costs for the overseas tours will bereduced by purchasing tickets to a block of seats in a scheduledaircraft. This approach will eliminate the need to hire a private jetfor the sake of a few travelers and subsequently reduce the travelingcosts by over 50%.

Oneof our greatest competitive advantages will be the ability tomodernize the ways of operation to enable easy provision of qualityservices. The company’s specialization in the delivery of outdoorexcursions and adventure travels will act as a compelling competitiveadvantage. This approach will aim at offering different services tovarious individuals as indicated on the agency’s website. Differentindividuals have varying tastes which influence their purchase power.Since the company seeks to offer the best and satisfy the needs ofall the clients, it will ensure that it has an ability to conductsurveys to identify the changing needs of the customers.

Additionally,our company doesn’t concentrate on offering luxury travel only.Despite the high demand for luxury tours, our company has developed astrategy that makes sure that there is no limitation for individualswho are willing to travel and enjoy their vacations. Theselimitations could be caused by lack of money, desire to visit areaswhere existing companies do not visit, and lack of knowledge to planfor a visit. The company offers solutions to these challenges tocater for the demands of the middle-class people. Despite the wealthypeople, who are willing to pay more money to get more fun, the poorcannot afford the luxury. These individuals do not view exotic travelas a lifestyle.

Inan attempt to accommodate more customers, the company also values thetravel needs of the disabled. We provide the disabled with moretraveling opportunities than ever. The company offers this group ofindividuals their right to explore the universe. Based on a paststudy, this group of individuals is estimated to spend over $3.3million annually on travel. The company will purchase modify thebuses, boats, and vans to serve this purpose. The purchase of oxygenand nebulizers will also be a necessity for travelers withrespiratory problems. Facility accessibility for the people withphysical limitations is very necessary while planning for tours. Thetravel agent will seek to determine whether the individuals bookingthe services have any physical conditions which might necessityacquisition of unique requirements. The management will also ensurethat the cost of serving these individuals is not higher despite theaccusations of extra materials. The analysis of the destination isalso a key role that the company will strive to gain competence. Forexample, the agency will find out to know a museum which the clientwants to visit has stairs, elevators, or other factors that may limitthe activities of the disabled. In this case, the management willrequest for modifications via the management of the museum forsuitable solutions. This approach is also applicable for the overseastravels. Planning and research will be a necessity for the assuranceof enjoyable and safe trip for all the clients. The companyacknowledges that the standards regarding the disabled vary from onenation to another.

Theniche of the travel agency and the location of the companysignificantly influence the competition levels of the enterprise.It’s the dream of the company that the expertise andprofessionalism demonstrated by the workers will welcome the clientswith a passion and desire to come back again. Apparently, everyperson wants to work with highly authentic people. Although thecompany will also offer travels to honeymoons, overseas trips, andcorporate travels, it will be specializing in the tourism-basedtravels. It will target both the local and the international touristswho want to enjoy a vacation or other special occasions. Thisspecialization will be effective given the company’s knowledge,skills, and exposure concerning the tourism both within the city andin the entire world (Braunetal,2015).This approach will also uniquely position the business as well as itsselling point facilitating the clients’ ability to find it (Braunetal,2015).The selected niche helps in the marketing and sale of the services.The design for the print and digital marketing materials will also bemade easier since the advertisement would be at times used to targetonly the clients within the niche. Visitors of the company’swebsite will easily identify what the company offers and evaluateavailable options. Our choice for the tourists was influenced by thewillingness of these individuals to spend money and readiness to beaccompanied by an expert.

Thecompany will also invest in the human resource as a competitiveadvantage. Although Seduisant Inc. is a profit business, the hiredpersonnel will be the individuals who view the business as a hobby.Engaging people who are passionate about the tourism industry andtravel is very critical. Additionally, the corporate level thesuperior corporate financial, research and development, and humanresources also act as a competitive advantage. The company will beincorporated in the Pan Pacific Hotel. This company already has anestablished business structure that will promote its ability toremain highly competent. Seduisant Inc. will gain name protection andcredibility form this association. Since many people prefer toconduct businesses with an incorporated firm, the partnership willpromote the building of the brand and marketing.

  1. Financial Statements

Seduisant Travel Inc

Statement of Comprehensive Income

for the Period Ended 31st DEC. 2015

$

$

INCOME

Landscaping

Residential

1,500,000.00

Business

5,540,000.00

Government institutions

5,234,000.00

Customized

2,450,000.00

Snow removal

14,724,000.00

Residential

2,400,000.00

Business

1,500,000.00

Government institutions

4,500,000.00

Customized

3,100,000.00

11,500,000.00

Total Service revenue

26,224,000.00

Less cost of sales

Purchases

14,558,000.00

Add Sub contract

2,000,000.00

Less : closing stock

(4,508,000.00)

Cost of goods available for sale

(12,050,000.00)

Gross profit

14,174,000.00

Less Expenses

Variable cost

General office supplies

1,300.00

Wages

1,290,000.00

Electricity

14,000.00

Water

15,000.00

Motor vehicle expenses

Fuel

1,500,000.00

Parking Fee

34,000.00

Telephone

15,000.00

Transport

250,000.00

Bank charges

2,500.00

Postage

3,000.00

3,124,800.00

Fixed cost

Depreciation expenses

972,000.00

Salaries

6,000,000.00

Lease for the year

125,000.00

Insurance

100,000.00

Internet Services

24,000.00

Marketing

45,000.00

Professional fees – Auditing

50,000.00

Security

360,000.00

7,676,000.00

Total operating expense

(10,800,800.00)

Net profit before tax

3,373,200.00

Other incomes

Interest income

3,500.00

Less Income tax

Federal

843,300.00

State

337,320.00

(1,180,620.00)

Profit after tax

2,196,080.00

Balance Sheet

As At 31st Dec. 2015

ASSETS

AMOUNTS

OWNERS EQUITY AND LIABILITIES

AMOUNTS

Current assets

$

$

Current liabilities

$

Pre paid lease

250,000.00

Unpaid sub contractors fees

3,563,300.00

Inventory

4,508,000.00

Accrued salaries and wages

1,892,000

Bank

1,811,000.00

Income tax

Cash

15,000.00

Federal

843,300.00

Total current assets

6,584,000.00

State

337,320.00

Total Current Liabilities

6,635,920.00

Fixed asset

Equipment

2,300,000.

Accum. Dep

(460,000.00)

1,840,000.00

Motor vehicle

1,000,000.

Accum. Dep

(200,000.00)

800,000.00

Equity

Furniture and fittings

560,000.00

Capital

1,000,000.00

Accum. Dep

(112,000.00)

448,000.00

Retained profit

2,196,080.00

Computers

200,000.00

Total Equity

3,196,080.00

Accum. Dep comp

(40,000.00)

160,000.00

Total fixed asset

3,248,000.00

Total assets

9,832,000.00

Total Equity and Liabilities

9,832,000.00

Cash Flow Statement

for the Period Ended 31st DEC. 2015

Cash Receipts

$

$

A. Sales revenue

Landscaping

Residential

1,500,000.00

Business

5,540,000.00

Government institutions

5,234,000.00

Customized

2,450,000.00

Snow removal

14,724,000.00

Residential

2,400,000.00

Business

1,500,000.00

Government institutions

4,500,000.00

Customised

3,100,000.00

11,500,000.00

B. Interest income

3,500.00

Total cash available

26,227,500.00

Cash Payments

  1. Cost of goods sold

Purchases

14,558,000.00

Subcontractors fee

2,000,000.00

Total cost of goods sold

16,558,000.00

B. Variable cost

General office supplies

1,300.00

Wages

1,290,000.00

Electricity

14,000.00

Water

15,000.00

Motor vehicle expenses

Fuel

1,500,000.00

Parking Fee

34,000.00

Telephone

15,000.00

Transport

250,000.00

Bank charges

2,500.00

Postage

3,000.00

Total variable cost

3,124,800.00

C. Fixed cost

Depreciation expenses

972,000.00

Salaries

6,000,000.00

Lease for the year

125,000.00

Insurance

100,000.00

Internet Services

24,000.00

Marketing

45,000.00

Professional fees – Auditing

50,000.00

Security

360,000.00

Total fixed cost

7,676,000.00

Total operating expense

27,358,800.00

Net income from operations

(1,131,300.00)

Net profit before tax

3,373,200.00

Less provision for taxes

Federal atxes

843,300.00

State taxes

337,320.00

1,180,620.00

Net profit after tax

4,553,820.00

Noteson the Financial Statement

AccountingPolicies

Thesestatements are regulated by the set laws and regulations (Strumickas&amp Valanciene, 2015).The methods, rules, and procedures regulating the measurement systemsembraced in the formulation of these documents are paramount(Strumickas&amp Valanciene, 2015).Although Seduisant has several unique approaches in financialstatements, it strives to make sure that the approved practicesconform to both International Financial Reporting Standards (IFRS)and the Accepted Accounting Principles (GAAP) (Abernathy,Hackenbrack, Joe, Pevzner, &amp Wu, 2015).IRS serves as a global language in accounting that ensures theaccounts of a business are comparable and understandable across theinternational boundaries (Abernathyetal.,2015).On the other hand, GAAP is a combination of authoritative rulesacceptable to all organizations as the perfect ways of recording andreporting financial information (Braunetal,2015). The management of this company allows flexibility to allow theaccountants to devise other policies which might benefit theorganization. Seduisant highly recommends the practice of thefollowing set of standards:

Basisof preparation

Thispreparation will be carried out by the set laws and regulations setby the Seduisant management through consultations with theaccountants. Additionally, the system is also required to rely on thehistorical cost convention (Braunetal,2015).This protocol dictates that the financial statements should beprepared by the international financial reporting standards(Strumickas&amp Valanciene, 2015).The financial functions are also defined by use of the US dollarregardless of the currency involved in the transactions (Cortinhas&amp Black, 2014).

RevenueRecognition

Thestandards under this category determine the specific conditions foraccounting for and recognizing the revenue (Cortinhas&amp Black, 2014).This principle is found under the GAAP guidelines (Cortinhas&amp Black, 2014).Based on this specification, the revenue can only be recognized incases where particular events have occurred, and its value ismeasurable. However, Seduisant will make exceptions when certainsituations dictate.

Propertyand Equipment

Thisaspect of the accounts on the balance sheet represents the summationof all the firm’s purchases of hardware and assets. In everyreporting period, the accounts are re-measured due to the effects ofthe amortization deduction (Strumickas&amp Valanciene, 2015).However, the attained value is affected by many other factors. In thebeginning, all property and equipment are recognized at theirpurchase price.

Additionally,the straight line method is relied on as a means of calculatingdepreciation of the assets (Strumickas&amp Valanciene, 2015). This approach is effective in the gradual reduction of the carryingamount of a fixed asset based on its estimated useful life (Morrison,A. 2013).Its design reflects the consumption patterns of the individual assets(Morrison,A. 2013).The ease of the calculating the depreciation using this method isalso effective in the reduction of the errors (Morrison,A. 2013).For Seduisant Company, the asset cost is written down to its residuevalue over its useful life using the rates below:

%rate

Motorvehicle25

Officeequipment12.5

Computers 30

Inevents when it might be hard to recover the carrying amounts,property and equipment are reviewed for impairment (Cortinhas&amp Black, 2014).

Capital

Capitalin the financials is not the loan but cash contribution by the owneron commencement of business. In this case, the Company’s owner, thepresident, defines the startup capital for Seduisant as the amount ofmoney needed to take care of office installations, licenses,marketing, purchase of furniture and vehicles as well as paying forthe water and electricity. Seduisant’s President contributed to therequired startup costs. This money was utilized to finance the earlyoperations of the business with the aim of establishing a constantstream of profit that would eventually fund other activities of thefirm. The success of the business is attributable to the president’sskills in management (Cortinhas&amp Black, 2014).The president must be prepared to manage the little capital to leadthe company to greater heights. The track record and the capabilitiesof the business may also determine how much money to be invested inthe startup (Cortinhas&amp Black, 2014).

MarketingExpenses

Thisincludes the cost of placing advertisements in the local newspapersin the months of January and February to create awareness to thepublic about the company. As discussed in this paper, the marketingstrategies are essential in driving more traffic to the company’swebsite and in the increment of the number of sales made with a givenduration. Therefore, the company will invest a significant part ofthe financials in the advertisement and marketing of the services.However, the unpaid advertisement approaches will also play a majorrole in the business’ productivity (Rapoport&amp Hult, 2017).

GeneralOffice Supplies

Generaloffice supplies entail all supplies for the smooth running of thefirm’s operations. It includes printing and stationeries, andsnacks, such as milk, sugar, and tea bags. These will be offered tothe clients who visit the office for serious talks with the staff.The employees will also utilize these supplies.

Wages

Thecompany will cater for the costs of hiring the laborers whoseservices are required on certain days or occasions. For instance, theindividuals hired to clean the offices, and trim the fences to makethe company appealing will be paid by the company varying wages. Thecompany will also be required to set aside the funds for maintenanceand repair of the offices, furniture, as well as the vehicles. Theactual cost for these activities cannot be determined, and hence thecompany works with a rough estimate. The management makes sure thatthe amount estimated is not lower than the actual cost. The moneyabove the real cost is returned to the company’s savings as anasset for the next budgetary year.

Security

Securitycost entails the cost of outsourcing guards to man the firms’premises. The alarm backup cost for the whole year is also a part ofthe security costs. These costs add up to $130,000.00. This high costspent on the security systems is a necessity to prevent theft ofdestruction of property by intruders which may lead to even greaterlosses. The motor vehicles will also be kept secure by installingtrackers to ensure each one of them sticks to the designed route ofthe trip. The movement of these vehicles will be monitored from theheadquarters via the already installed computer systems. The vehicleswhich divert from the agreed route will be suspected to have beenhijacked, and the area police will be notified for investigations.

IncomeTax

Thetax varies with the amount of the taxable profits in theorganization. In our company, the assumption is that the totalfederal tax is charged at the rate of 25% and state tax at the rateof 10% on the reported net profit for the year. The tax projectionsfor the company in the subsequent years will be estimated as aproduct of these tax rates and the total income attained (Cortinhas&amp Black, 2014).Additionally, it’s just the net gain from the sales of property orthe services provided for sale will be considered as taxable income.

UnpaidSubcontractors’ Fee

Theunpaid contractors’ fee is for the assignment on transport done inthe month of November and December that hasn’t been paid. This debtwill be paid from the intended increase in the number of sales.

Projected Income Statement

for the Periods:

2016

2017

INCOME

$

$

$

$

Hospitality

Residential

2,250,000.00

2,925,000.00

Business

8,310,000.00

10,803,000.00

Govt institutions

7,851,000.00

10,206,300.00

Customized

3,675,000.00

4,777,500.00

Snow removal

22,086,000.00

28,711,800.00

Residential

3,600,000.00

4,680,000.00

Business

2,250,000.00

2,925,000.00

Govt institutions

6,750,000.00

8,775,000.00

Customized

4,650,000.00

6,045,000.00

17,250,000.00

22,425,000.00

Total Service revenue

39,336,000.00

51,136,800.00

Less cost of sales

Purchases

21,837,000.00

28,388,100.00

Add Sub contract

3,000,000.00

3,900,000.00

Less : closing stock

(6,762,000.00)

(8,790,600.00)

Cost of goods available for sale

(18,075,000.00)

(23,497,500.00)

Gross profit

21,261,000.00

27,639,300.00

Less Expenses

Variable cost

General office supplies

1,950.00

2,535.00

Wages

1,935,000.00

2,515,500.00

Electricity

21,000.00

27,300.00

Water

22,500.00

29,250.00

Motor vehicle expenses

Fuel

2,250,000.00

2,925,000.00

Parking Fee

51,000.00

66,300.00

Telephone

22,500.00

29,250.00

Transport

375,000.00

487,500.00

Bank charges

3,750.00

4,875.00

Postage

4,500.00

5,850.00

4,687,200.00

6,093,360.00

Fixed cost

Depreciation expenses

1,458,000.00

1,895,400.00

Salaries

9,000,000.00

11,700,000.00

Lease for the year

125,000.00

125,000.00

Insurance

150,000.00

195,000.00

Internet Services

24,000.00

24,000.00

Marketing

67,500.00

87,750.00

Professional fees – Auditing

50,000.00

50,000.00

Security

360,000.00

360,000.00

11,234,500.00

14,437,150.00

Total operating expense

(15,921,700.00)

(20,530,510.00)

Net profit before tax

5,339,300.00

7,108,790.00

Other incomes

Interest income

3,500.00

Less Income tax

Federal

1,334,825.00

1,777,197.50

State

533,930.00

(1,868,755.00)

710,879.00

(2,488,076.50)

Profit after tax

3,474,045.00

4,620,713.50

Projected Balance Sheet

As at :

2016

2017

ASSETS

AMOUNTS

Current assets

$

$

$

$

Pre piad lease

375,000.00

487,500.00

Inventory

6,762,000.00

8,790,000.00

Bank

2,716,500.00

3,531,450.00

Cash

22,500.00

29,250.00

Total current assets

9,876,000.00

12,838,200.00

Fixed asset

Equipment

2,300,000.00

2,300,000.00

Accum. Dep Equip

(920,000.00)

1,380,000.00

(1,380,000.00)

920,000.00

Motor vehicle

1,500,000.00

1,500,000.00

Accum. Dep M. Vehicle

(400,000.00)

1,100,000.00

(600,000.00)

900,000.00

Furniture and fittings

560,000.00

560,000.00

Accum. Dep F&amp Fittings

(224,000.00)

336,000.00

(336,000.00)

224,000.00

Computers

200,000.00

200,000.00

Accum. Dep comp

(80,000.00)

120,000.00

(120,000.00)

80,000.00

Total fixed asset

2,936,000.00

2,124,000.00

Total assets

12,812,000.00

14,962,200.00

Owners’ Equity And Liabilities

Current Liabilities

Unpaid subcontractors fees

1,435,120.00

707,013.00

Accrued salaries and wages

2,352,000.00

898,800.00

Income tax

Federal

1,456,325.00

1,777,198.00

State

582,530.00

2,038,855.00

803,219.00

2,580,417.00

Total Current Liabilities

5,825,975.00

4,186,230.00

Equity

Capital

1,000,000.00

1,000,000.00

Retained profit

5,986,025.00

9,775,970.00

Total Equity

6,986,025.00

10,775,970.00

Total Equity and Liabitities

12,812,000.00

14,962,200.00

Projected Balance Sheet

As at :

2016

2017

ASSETS

AMOUNTS

Current assets

$

$

$

$

Pre piad lease

375,000.00

487,500.00

Inventory

6,762,000.00

8,790,000.00

Bank

2,716,500.00

3,531,450.00

Cash

22,500.00

29,250.00

Total current assets

9,876,000.00

12,838,200.00

Fixed asset

Equipment

2,300,000.00

2,300,000.00

Accum. Dep Equip

(920,000.00)

1,380,000.00

(1,380,000.00)

920,000.00

Motor vehicle

1,500,000.00

1,500,000.00

Accum. Dep M. Vehicle

(400,000.00)

1,100,000.00

(600,000.00)

900,000.00

Furniture and fittings

560,000.00

560,000.00

Accum. Dep F&amp Fittings

(224,000.00)

336,000.00

(336,000.00)

224,000.00

Computers

200,000.00

200,000.00

Accum. Dep comp

(80,000.00)

120,000.00

(120,000.00)

80,000.00

Total fixed asset

2,936,000.00

2,124,000.00

Total assets

12,812,000.00

14,962,200.00

Owners’ Equity And Liabilities

Current Liabilities

Unpaid sub-contractors fees

1,435,120.00

707,013.00

Acrued salaries and wages

2,352,000.00

898,800.00

Inicome tax

Federal

1,456,325.00

1,777,198.00

State

582,530.00

2,038,855.00

803,219.00

2,580,417.00

Total Current Liabilities

5,825,975.00

4,186,230.00

Equity

Capital

1,000,000.00

1,000,000.00

Retained profit

5,986,025.00

9,775,970.00

Total Equity

6,986,025.00

10,775,970.00

Total Equity and Liabitities

12,812,000.00

14,962,200.00

RatioAnalysis

2015

2016

Historical

Projected

1

Networking Capital

Total assets

$ 9,832,000.00

$ 12,812,000.00

Minus Total liabilities

$ (6,635,920.00)

$ (5,825,975.00)

Networking capital

$ 3,196,080.00

$ 6,986,025.00

2

Current ratio

Current assets

$ 6,584,000.00

$ 9,876,000.00

Current liabilities

$ 6,635,920.00

$ 5,825,975.00

Currents ratios

0.99

1.70

3

Quick ratio

Current assets – Inventory

6,584,000 -4,508,0000

9,876,000 – 6,762,000

Current liabilities

6,635,920.00

6,635,920.00

Quick ratio

0.39

0.53

4

Gross profit Margin

Gross profit

14,174,000.00

21,261,000.00

Sales

26,224,000.00

39,336,000.00

Gross profit Margin

0.54

0.54

5

Net profit Margin

Net profit

2,196,080.00

3,789,945.00

Sales

26,224,000.00

39,336,000.00

Net profit margin

0.08

0.096348002

9

Vertical income Statement analysis

Total sales

26,224,000.00

Cost of goods sold

12,050,000.00

0.46

Gross Profit

14,174,000.00

0.54

Operating Expenses

10,800,800.00

0.41

Net income operations

2,196,080.00

0.08

Interest incomes

3,500.00

0.00

Interest expense

2,500.00

0.00

Net profit( Pre tax )

3,373,200.00

0.13

( As a % of total sales)

10

Vertical balance sheet

Current assets

6,584,000.00

0.67

Inventory

4,508,000.00

0.46

Total Assets

9,832,000.00

1.00

Current liabilities

6,635,920.00

0.67

Total liabilities

6,635,920.00

0.67

Net worth

3,196,080.00

0.33

( Stated as % of total liabilities + Net worth)

Assumptionsmade in the Projections

Oneof the assumptions made in the projections is that Sundeisant travelagency will experience a 50% increase in sales year 2016 and 30% inthe year 2017. These thoughtful projections are based on theperceived benefits of the marketing and advertising strategies(Ogilvy,2013).Survey on the current markets and their supposed satisfaction levelswith the company’s products were also considered in thedetermination of the likely growth rate. However, the deductionscaused by the costs of required commodities also play an importantrole in the business transaction. These projections help in thedevelopment of staffing and operational plans that will enable thefirm to succeed in the tourism industry.

Additionally,the increase in sales revenue and purchases are expected to rise by50% and 30% in years 2016 and 2017 respectively. It’s assumed thatthere will be no variations in the market that may alter the growthtrends for the entire years. Factors such as the country’s economyand the changes in the population of the tourists in the region withtime are assumed to cause minor variations in the normal income.

It’salso assumed that the subcontractors are always involved during thefestive season when some or all the employees may not be on duty.However, it’s clearly assumed that other factors will not lead tothe rise of the need to engage these people. Other factors mayinclude when the company has a large workload when holding specialevents requiring larger services team, and if the workers are onstrike.

Thedemand for the casual laborers has been revised on the projectedsales by 50% and 30% for the two respective years. Electricityconsumption has been estimated to increase by 50% and 30% for theyear twenty sixteen and twenty seventeen respectively. Motor vehicleexpenses have been reviewed to factor in the projected increase insales. However, this is a key assumption of the costs involved in theoperation of the vehicles may not directly be influenced by thenumber of tours. It is assumed that the more use of the vehicles byan increased number of customers will impact on the cost ofmaintaining the buses, vans, and boats. However, some factors likethe changes in the costs of the oils, diesel, and petrol may bringabout variations in the costs projected for the vehicles’maintenance (Rapoport&amp Hult, 2017).The management has assumed that these variations have minimal impactsin the running of the company in the long term.

Transportand postage cost has been reviewed since there will be an increase intransport cost and postage cost brought about by the projectedincrease in sales revenue. The transportation costs and the postageexpenses are subject to abnormal variations due to the impact of acouple of other factors (Rapoport&amp Hult, 2017).

Moreover,it is assumed that the firm will not acquire any new Property andequipment in the first four years. Therefore, the costs for thepurchase and installation of new materials are left out in thefinancial analysis. There might be unrepeatable damages or loss ofproperty that may necessitate replacement through the purchase of newones. The company does not account for these costs since it isexpected that the insurance company will be responsible for anyunexpected outcomes within the organization.

It’salso assumed that the firm will meet the set demands for growthwithout hiring new employees. Workforce challenges such as employeesturn over, demand for a pay rise, and low skills are ignored in thedetermination of the future growth rates of the company. Therefore,the company assumes that the same workforce will remain committed tothe well-being of the company as well as its set goals andobjectives. It is also expected that the amount of salary paid to theemployees will remain constant ant for the next four years. The onlyvariations in the salary will be due to the commissions were given tothe agents and marketing personnel for bringing more sales to thecompany. Lease, the internet, security, and professional fees for theauditors will remain constant over the period. These factors don’thave any correlation with the projected increase in sales revenue.

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