Justification of a Business Plan for Hotel

Justification of a bank line Plan for HotelThe Justification of a Business Plan for Rebeccas HotelIntroductionThe signification of handicraft plans in all types and sizes of strain organizations shadow never be threaten. The entrepreneurial inquiry puts the entrepreneurs in situations that require judgment. Hence, the demand and identification of an shape up to address these situations arise (Foss, Foss Klein, 2006, p. 4-5). Such as the justification for vocation plans as wiz of the progresses to address stock problems, authorityicularly in the event of uncertainties. The determination of a contrast plan is one such approach as it is defined as a formal declaration of what the melody wants to achieve. During uncertainties entrepreneurs should attend tools to manage them (Sull, 2004, par. 2). Guinipero, Denslow, and Melton (2008) indicated that high propensity risks increase the formality of condescension plans. A personal credit line plan allows the anticipation o f risks and improbabilities. A c atomic number 18fully formulated business plan should be able to communicate to stakeholders about the intended educational activity of the company. Through this, stakeholders should be guided with an netherstanding of the business situation and later enable them to execute appropriate actions (Honig and Karlson, 2004, p. 30-35). To protect their interests in the business, stakeholders can be guaranteed with action in expectation of favourable business outcomes.The justification for a business plan appears to raise the significance for business successions as they impersonate challenges. The transition of managerial control frequently simply do non elaborate out (Dalpiaz, Tracey Phillips, 2014, p. 3). Since this paper is based on the succession of a family business, the plate shoot about Rebeccas family business provides insight into the classic of business plans even for a small family- locomote hotel. This paper shall explain the grandness of a business plan for Rebeccas case and consequently convince her to undertake the dressing of a business plan. Her case shall be interpret considering the mitigating factors as to why the business plan is necessary.The mitigating factorsThe retirement of Rebeccas parents had generally prompt the bring for a business plan. noneetheless, the presenting scenario also questions its practicality as their business is started out by her parents, has perchance overcome various business challenges, and is still currently operating, all without a business plan. The remove for a business plan is followed by these conditions. beyond these circumstances, Rebeccas succession to manage the business also presents potential threats. Though Rebeccas organize as a kitchen assistant and junior cook despite having those association is recitationful for the business since the hotel includes a restaurant, but the operation and management of a bar and hotel would require competencies which may n ot be sufficiently provided by her short time be pay back she went backpacking travel in South-East Asia. Additionally, a three-year backpack travel painting may not be fitting for Rebecca to develop an understanding of the tourism industry in their locale since the activities and opportunities presented in the different locations can be varied. It is important to note the difference in the tourism needs and activities of a travel destination such as the marina compared to the tourism locale Rebecca visited in her three-year adventure.On the another(prenominal) hand, as dissipate of the family, she could have obtained insight into the business operations and her parents management style and business practices. Nevertheless, family-run organizations encounter unmatched problems due to its subjective nature (Peters Buhalis, 2004 Agyapong Boamah, 2013). Supporting writings shall clarify this in the next section.Even though Kerstin is not a part of this family but because of he r relations with Rebecca and also because of her competencies and training, she can be possibly consulted about these consequences. Though small businesses are less seeming to betroth specialists than large corporations (Wu, Bacon, Hoque, 2014, p. 7), by moral of Rebeccas relationship to her, Kirstens expertise might be confess or at least consulted. It is, however, uncertain that her international exposure at work and the level of training would be suitable for a small family-run hotel.The nature of family-run businessesFamily businesses rely on paternalism (Peters Buhalis, 2004, p. 537). Successors operate under the thoroughfare of their parents especially when the founders are still around. Successors may attempt to introduce tender systems and approach which may run contradicting to the family tradition when speed the business. But the forerunner may not be able to let go or to completely allow the decision making processes and the management of the enterprise under the new relative-manager. The fancy and goals of this relative may be inconsistent with how the parents observe the business. Likewise, Agyapong and Boamah (2013, p. 533) described family-based relatedness in their theater of operations, which appears to produce these problems. The dynamics of family relationships may get in the way of business operations. There may be a cause of separation of the family concerns and business matters, conflicts or inefficiency may be occurred in the business.Family-run businesses are also usually characterized by informal business practices. As a extend, these enterprises lack planning or the use of a magisterial approach to manage the business especially when problematic activity occur. In the family businesses they unremarkably use improvisation by the family members (Peters Buhalis, 2004, p. 5), which lead to inconsistencies. There are no product or service standardizations or appropriate consistent controls. The ease of the practice arises f rom the dynamics of the family relationship. This situation is further entangled by another(prenominal) informal business practice which is inaccurate financial recording that results in financial losses (Peters Buhalis, 2004, p. 6). Family members also make their decisions that tend to be monstrous since there appears a lack of information to guide them. In addition, misjudgement of exercise indicators also occur and consequently affect the quality of future business decisions. This information could be made consistent, reliable, and more permanent when a correct business plan is holdd.Succession in family businessesSuccession in family businesses is considered an evoke area of seek. Studies focus on examining the change which aid or obstruct the transfer of power to the succeeding generation, family relationships, and the process (Dalpiaz, Tracey Phillips, 2014, p. 6). A more nifty evaluation from the studies is the causation approach which indicates that family business es evolve linearly. In a statistical perspective, the continuity of the family business is related to certain variables which indicate the future submit of the business. In the causation approach, a set of goals is identified as one of the factors in which family businesses are described to be established on. However, the goals are treasure to lack systematic process due to the informal nature of family enterprises. Nevertheless, planning, among the other components such as intentionality and resource acquisition, are essential foundations of this approach. Therefore, the continuity of the family business relies on the continuity of establishing plans. However, this time for Rebecca, a conscious formulation and systematic approach for business planning must be used.A few studies shows the reasons why business plans become critically important for family-operated businesses. The studies of Peters and Buhalis (2004) and Agyapong and Boamah (2013) provide important insights into thes e types of business ownership, particularly in the hotel industry. Both types of enquiry emphasize the need for competitoryness in the industry. Peters and Buhalis (2004) claimed that the competitiveness of destinations is characterized by the domination of small businesses in the tourism and hospitality industry, as such in the case of Austria, the studys research locale. The operations of 240 small family businesses in Austrias tourism destination industry were part of the study in 2003. seek findings suggested that training is an essential element to run family businesses. In addition, a key component of this training includes the evolution of plans, strategies and the increase of conceptualisation of new products or services among other important areas of running the family hotel business. These special(prenominal) areas are being pick to emphasize the important usage of business plans in the small enterprise. This research further indicate the need to develop strategical plans, both as a competitive strategy and favour for the small family hotels.Growth and future sustain king are indicated to be the likely outcomes when strategic plans are created and then implemented. Meanwhile, Agyapong and Boamah (2013) conduct in their research the make of business strategies and leadership in family businesses. Family hotel businesses in gold coast were the focus of this study, cover 50 small hotels in the country. The vital findings relevant to this paper is that the use of strategies, which may be provided by business plans, offer the family business the ability to predict problems, to vision the future, and to maintain flexibility. The business environment in gold coast was described to be highly competitive, and thus, the need for well-thought of strategies enable good business performance to survive in a competitive market situation. Furthermore, the unique characteristics of family businesses can be apply in implementing particular business conditio ns such as cost leadership and differentiation strategies (Agyapong Boamah, 2013, p. 537). In the case of Ghanas family hotel businesses, competitive strategies were purposeful to provide the assertion of survival of the 50 small hotels. Hence, the advantage of the business plan is to help the family business to be competitive in its formation. Another advantage implied in the studies is that the business plan could help nutrition the inherent characteristics of small family businesses. Considering the scope of these two studies and similar competitive situations, those research indicate a broad-applicable situation for small family-run hotels.Alternative studies illustrate the importance of business plans for entrepreneurs in general. Brinckmann, Grichnik and Kapsa (2010, p. 24) cleverly stated in the title of their study Should entrepreneurs plan or just storm the castle? the quote of whether to create a business plan or not. This analysis study specify that planning is benef icial, although that factors such as culture and the newness of the enterprise affect the planning-performance relationship. germane(predicate) to this, the newness of the enterprise may not be a concern for Rebeccas case, since the business has existed during her parents time. Culture appears to be a critical factor as to touch on to the norms, values, and relationships within the family. Since this is identified to affect the planning-performance relationship, the guarantee of success for Rebeccas family business is heretofore to be determined. Besides, another research, Zahrani, Nikmaram and Latifi (2014, p.245) specified the need for developing a strategic plan, which is especially useful for succession planning. It is important for the successor to have the proper(ip) outlook about the business plans. Furthermore, according to Aronoff and Ward (2014, p. 2), shared tactual sensation help conquer conflicts within the family organizations. It is believed that since visions ar e reflections of values, shared visions should also result in more unify outcomes for a family business. Visions and values can be clarify when they are justify out rather than assumed. Identifying and specifying them in a business plan should help in making decisions which link to the family expectations. endSuccessions in family-run businesses present potential problems. This is further complicated by the inherent features of family-operated enterprises since they lack planning and is characterized by informality which results in inconsistencies, conflict, and lack of control. Research has provided evidence based on the need to develop strategic plans to cover the future performance of the business. The planning-performance link support needs for business plans as a family-oriented business culture is identified a plausible parapet to the business success. Business plans offer the business successor a government agency of continuing the business with the appropriate business ou tlook one that reflects family vision and values. Furthermore, business plans provide a means for avoiding the consequences arising from the inherited nature of family-run enterprises. Studies specific to the hotel industry have also identified that competitive market environments can be survived by developing strategic plans. Presented with the benefits of developing strategies and the analysis of Rebeccas situation, Rebecca should be convinced that a means for her successful succession of the family-run hotel is through the development of a business plan.ReferencesAgyapong, A. and Boamah, R. (2013). Business strategies and competitive advantage of family hotel businesses in Ghana The role of strategic leadership. The diary of Applied Business Research. Volume 29. figure 2. Accessed at cluteinstitute.com. (Accessed 15 March 2017).Aronoff, C. and Ward, J. (2016). Family business values How to assure a legacy of continuity and success. New York Palgrave and MacMillan.Dalpiaz, E., Tracey, P. and Phillips, N. (2014). Succession narratives in family business The case of Alessi. Entrepreneurship Theory and Practice. Accessed at https//www.repository.cam.ac.uk/bitstream/ portion out/1810/245758/ETP%20Revision%20Final.pdf?sequence=1isAllowed=y. (Accessed 14 March 2017).Foss, Foss, and Klein, (2006). veritable and derived judgment An entrepreneurial theory of economic organization. Organization Studies. Accessed at https//brage.bibsys.no/xmlui/bitstream/handle/11250/164282/soldp200601.pdf?sequence=1isAllowed=y. (Accessed 15 March 2017).Guinipero, L., Denslow, D., and Melton, H. (2008). Risk propensity, risk perception and business plan formalization a conceptual investigation. International Journal of Entrepreneurship and knowledgeability Management. Volume 8. Issue 4. Accessed at http//www.inderscienceonline.com/doi/pdf/10.1504/IJEIM.2008.022312. (Accessed 16 March 2017).Honig, B. and Karlson, T. (2004). institutional forces and the written business plan. Journa l of Management. Vol. 30. Issue 1. 29 48. Accessed at https//www.researchgate.net/ indite/Benson_Honig/publication/228264253_Institutional_Forces_and_the_Written_Business_Plan/links/54ae9e6a0cf21670b35862b8.pdf. (Accessed 17 March 2017).Peters, M. and Buhalis, D. (2004). Family hotel businesses Strategic planning and the need for education and training. Department of Strategy and Tourism Management. Center for Tourism and good Economics. University of Innsbruck. Accessed at http//epubs.surrey.ac.uk/1109/1/fulltext.pdf. (Accessed 14 March 2017).Sull, (2004). Disciplined entrepreneurship. MIT Sloan Management Review. Accessed at http//sloanreview.mit.edu/article/disciplined-entrepreneurship/. (Accessed 15 March 2017).Wu, N., Bacon, N. and Hoque, K. (2014). The adoption of high performance work practices in small businesses the influence of markets, business characteristics and HR expertise. The International Journal of Human Resource Management. Accessed at http//irep.ntu.ac.uk/id/e print/26446/1/3876_Wu.pdf. (Accessed 16 March 2017).Zahrani, M. Nikmaram, S. and Latifi, M. (2014). furbish up of family business characteristics on succession planning A case study in Tehran industrial towns. Iranian Journal of Management Studies. Vol. 7. No. 2. 243- 257. Accessed at https//ijms.ut.ac.ir/article_36616_8ced89c13f3bb574ef88de90a9581858.pdf. (Accessed 14 March 2017).