Chapter one Introduction

1.1 The company

We are aware that Nepal can prosper only by two things i.e. Tourism and Agriculture. As nestled in the lap of Himalayas, the country herself is unique heaven. Not only that variety of biodiversities, flora and faunas, cultural heritages, religion, costumes, hospitality and birthplace of great personality has added other attraction to expatriates. It is said that, there are only two businesses that would exist every time and in every situation i.e. Resort and school. After thorough study, observation and research, I am planning for commencing a resort. KAHUN VILLAGE RESORT PVT .LTD will be located at KAHUN VDC. Which was establish in 2013. This company will be register as the KAHUN VILLAGE RESORT and the shortly it will be called by KVR Pvt. Ltd. The management team and structure will be as other Private company and the general hierarchy of the management team Board of Directors ,Chairman of the Board ,Member ,Member ,General Manager, Accountant, Human Resource Manager Line/Floor Manager, Marketing Manager Taking these things into consideration, I m going to establish KAHUN VILLAGE RESORT targeting the tourist from all abroad. It will be an eating establishment focusing on healthy, nutritious, and fast food to the visitors inside and outside Nepal. There would be a combination of Nepali, Indian, Chinese, Continental plus specific recipes focusing on the Pacific Northwest cuisine. Based on this distinct menu, it will follow a differentiation strategy that will provide unique, or hard to find choices to resort patrons. The keys to success for resort will be repeat business, an excellent location convenient to downtown businesses and its unique Northwest Pacific cuisine. The company will be a partnership owned by Mr.laxman Acharya, MR Tenzin wangdu, and urmila paudle. We will be providing aboutRs1800000 capital investment and there will be an additional Rs 1200000 will be raised in short-term and long term loan. Entering into this market will not be easy; the industry is highly competitive, with periodic overcapacity, low margins, and

low entry/exit barriers. In addition, there are a large number of substitutes, and the suppliers to this market have a great deal of power. In order to overcome these issues, the company has acquired an excellent locality in the downtown area and intends to provide a suitably upscale environment to draw in the company's main target market segment, the business professionals. The company will seek to provide these customers with the maximum number of services to create the greatest sales volume during the company's season. The company will have a comprehensive marketing, advertising, and promotion campaign through television, newspaper, business journals and many more. The company has planned to offer its products at a slightly higher price than that of its competitors. This is to provide credibility to its clients as an upscale establishment that provides a unique menu and lodging. This will also provide the funds to cover the higher than expected operating costs due to the differentiated and expanded menu along with lodge and cultural events. 1.1.1 corporate ,vision ,Mission ,Goal and objectives We have the vision and ability to develop this site into the preferred destination for both domestic families and international tourists to live in the lap of nature - for rest, relaxation and rejuvenation. Our concept for development is sensitive to local conditions, the environment and ensures that the ecology of the region is not disturbed. The resort can be made a happening place to hold family celebrations, inter alia to attract domestic families and international tourists, who want to just rest, relaxation and rejuvenation. The resort can be used for global conferences and conventions, strategy-related business meetings, leadership training courses for the managers, and for holding world class events. The serenity, peace and scenery can be expected to invite writers, poets, thinkers and like-minded people to take time off contemplate their new ventures. We plan to create, a unique resort along with spas for more affluent tourists. In short, we intend to provide a world class facility, where tour operators from other countries can bring tourist groups, both for work and for pleasure. We would encourage tourists to come to this resort and live in cottages, to celebrate various family events and hold receptions, as well as encourage corporate clients to bring their senior management for brainstorming and strategic-planning sessions. There is no better place where one can contemplate, introspect and plan, with inspiration provided by the bounties of the Nature. Our Resort would be an ideal product mix, both for business tourists, corporate clients and family groups - for serious business, as well as 2

the most important business of life, to celebrate, inter alia, add years to your life.We therefore plan to develop the whole area, by planting flowering trees and bushes. The space will be well defined - yet true to the natural environment. Walking trails will be created for exercising and relaxation. Recreational facilities such as swimming pool, kids zone, gaming arcade and other indoor games would be built. Our strategy is to have a clever mix of tradition and modernity to attain a superb blend of grace and style. The success of this venture lies in making it the preferred destination and making it different from a typical - busy business hotel. Our USP is to make it a place of peace and tranquility - where one can add value to life and have business with pleasure. The place will be famous for its scenic beauty, but equally known for its good service. We have learnt to anticipate needs of our clients and provide service - before it is asked for. KVR mission is to provide quality hospitality services to the guests in a comprehensive and cost competitive manner, providing the finest accommodations in pokhara valley. We intend to name this development the KAHUN VILLAGE RESORT, a new name, new identity, new way of working, making it an ideal place for ..Rest, Relax & Rejuvenate in the lap of natu re. For this we have develop some goal. Objectives of KVR ToIncrease guest health and well- being To Encourage social interaction among guest To Assembling an experienced and effective staff. To provide best quality fooding, lodging and many other services for visitors. To establish brand image To establish a successful Resort and gain a market shares in

hotel business. To Provide satisfying experiences for guest To Aid in skill development To contribute economic growth and social responsibility.

1.1.2 The Promoters KAHUN VILLAGE RESORT will be at kahun vdc of Kaski District in the Gandaki Zone Pokhara. The company will be a partnership owned by Mr.laxman Acharya, MR Tenzin wandu, and urmila paudle. We will be providing aboutRs1800000 capital investment and there will be an additional Rs 1200000 will be raised in short-term and long term loan. Source of fund a) Owners capital (60% ) b) Term loan (40% ) Total 100% : : Rs.18000000

Rs. 12000000 Rs 30000000

There will be 3 promoters and each will contribute Rs. 60, 00,000 and the remaining 40% will be finance by the financial institution as term loan in this loan 10% will be shortterm and 30% will be long term loan.This proposed resort called as KAHUN VILLAGE RESORT Resort shall be located in Kahun VDC , Kaski with the objective of conserving and promoting the beauty of The site was chosen because of its strategic location, as there is no good recreational centre for tourists and visitors in this area. Focusing on this we plan to open a resort named KAHUN VILLAGE RESORT. The KVR is a place for relaxation or recreation, attracting visitors for holidays or vacations. It attempts to provide for most of a vacationer's wants while remaining on the premises, such as food, drink, lodging, sports, entertainment, and shopping. It provides an array of amenities and typically includes entertainment and recreational activities. Travelers checking into Pokharas Resorts can enjoy complete peace of mind within safe holiday surroundings, allowing them to simply relax with the myriad of in-resort facilities and activities matched only by the warm. And after a day of fascinating nature and cultural tours in pokhara great outdoors, guests can always look forward to returning home to the modern comforts and convenience of their resort accommodation for a good nights rest, before starting their next exciting day so we focus visitors on. ..rest, relax & rejuvenate in the lap of nature.

Chapter Two Production plan

2.1 Product Description
KAHUN VILLAGE RESORT would be a combination of Nepali, Indian, Chinese, Continental plus specific recipes focusing on the Pacific Northwest cuisine. Based on this distinct menu, it will follow a differentiation strategy that will provide unique, or hard to find choices to resort patrons. The lodging facilities would include Deluxe, honeymoon as well as family suite with fully equipped, well furnished and decorated rooms. Its unique Northwest Pacific cuisine along with local spices will be the unique products that will attract tourists. A product is a bundle of utilities and accompanying services. Accommodation consists of elegantly appointed rooms that range from the suite to the spent house suites. Each features a seating area and balcony. Luxurious marble bathrooms with Victorian style freestanding bathtubs overlook a private walled courtyard. The proposed Resort would be a two-floor building with the following facilities. Bird view, looking laligurans. Mountaion view, car parking ,Books store, food store,Unlimited WI FI, Children park, Tv with channel in all room, Telephone in all room,24 hour room services, Central Air Conditioning system etc.

2.2 Company Locations and Facilities

My kahun village resort will be located at kahun danda, one of the most capable locations in pokhara with the height of 1443 meter above the sea level. Kahun danda has been popular for its natural beauty, view tower and green environment. From the view tower all the places of pokhara as well as beautiful flowers like laliguras and mountains are visible. The temples, houses and birds have added crisp to the location. I feel proud to say that kahun danda can be one of the best locations for tourists to visit in near future. Foreigners mostly visit this particular place for mountain views and to experience a heavenly environment. Many locals have been staying there 5

for decades and the level of their hospitality to outsiders is highly appreciable. Most tourists visit this place for a one day hiking and spent hours exploring the traditional culture and artifacts. Till now I have encountered so many tourist and most of them have suggested for a proper staying place at top of kahun danda so that they can spent evening and enjoy the beauty of nature. Our kahun village have gravel road and according to government plan within few years there will be pitch road and people can have access to good transportation. It takes around 30 minutes from mahindrapool and till now there are no single hotels or resorts. Tourists when they get tired after walks then they stay at nearby small traditional tea shop to relax themselves. My idea of opening a kahun resort is mostly because I want to see a good change in my birth place. I have received so much from it that I want to do something in return for it. With the coming of resort there will be far more tourists then before and people living there will get some sort of employment benefit. I have planned to employ people there for my resort and hope that this will help in the standard of living of local people. There are some schools at my village and children there are highly hard working and I wish to motivate them to be more ambitious in life and think beyond the box for their future career.equipment and lodging items such as foams, pillow, blankets cupboards televisions telephones and many more are necessary. The company anticipates the need for liquid cash for operating expenses, unforeseen company expenses and to help cover wages for the first six months of business.

2.3 Production plan

There will be three safe cook and at least 3 cook on each safe in each department in Restaurant, Bar, and General. They will order all the necessary items and the material and the purchase department will purchase as the order.

Chapter Three

Management and Human Resource Plan

3.1 Structure of the organization

The founding owners will supervise the entire operation of the company until a general manger (GM) is recruited and appointed. The manager will be provided training on cook, waiter, and accounting systems of the company. The manager would be responsible for supervising and sales activities. S/he would also be responsible for executing promotional campaigns to achieve target sales. S/he must be a business graduate with previous experience in managing business in a similar capacity Boardof Directors

General
Manager

Human Manager

resource

Marketing Manager

Line/Floor Manager

Financial Manager

Asst.

Bar

and

Banquet

Asst. Manager

Resort

Asst. Restaurant Manager

Fig: organization structure 7

3.2 Human resource policy

All the policy will be accounted as per act of the company. The employee recruitment and selection, hiring and firing will be accordance with company need and regulation. Employee should notice 15 days earlier before resignation. Salary will be paid on performance, education and experience basis. The company would provide attractive salaries. Besides basic salaries, it would provide two festival bonuses to all the employees: each equivalent of one months basic salary. In addition 5% dearness allowance. The company will be an equal opportunity employer. The owners would continually measure the job satisfaction of the employees in order to take steps to increase the employees work effort and commitment. The company will recruit a manager, marketing officer, employees for promotion and auditing, and distribution. The officer will supervise the activities of the entire resort. S/he will also hold the whole husbandry. Thus s/he must have a few years of previous experience of supervising, and keeping accounts. S/he must also be a computer literate with skills in using MS-word, spreadsheets, and accounting software. The officer must be a business graduate in accounting with skills in utilizing MS-word, spreadsheets, and an accounting software. 3.3 Labor Market and Availability of staffs The key labor market constraint to increased investment and faster growth in Nepal appears to be the adversarial nature of employment relations and the propensity of both employers and trade unions to adopt a winner takes all approach when in a position of power. According to a study done by ILO labor market specialist, Robert Kyloh a massive 83% of Nepalese workers do not earn enough to lift themselves and their families above the US$2 a day poverty line. Thus this study shows the availability of staffs for infrastructural development. The employment will be generated through advertisement and networking. The vacancy will be announced in the local news paper and from different web sites. Both direct and indirect staffs are recruited and selected

3.4 Role and responsibility of key staffs

The officer would be provided with training on the cultivation of mushrooms, and the accounting systems of the company. The marketing officer will work under the manager. During the initial set up of the company, the co-founder Laxman acharya will conduct the planning and 8

implementation in building the brand and the construction for the resort. Similarly Mr. tenzin wangdu will look after the public relation. Similarly Urmila will also look after the hiring staff as he has the experience of two decades on running the business of others. The planning and construction will take approximately one year, in addition to the revision and refinement process for the meat processing and settling of our own vendor it might take some months. So we are planning to open up the resort in the year 2013. The initial management team depends on the founder, with little back-up. As we grow, we will take on additional help and hire certain peoples in certain key areas. Part of our basic philosophy will be able to run our executive management as a "knowledge sharing" fellowship. We will not add additional overhead until absolutely necessary. This will mean that the initial staff support team will have to work extra. By doing this, we will keep our overhead as low as possible, allowing us to adequately staff our resort. This will also allow us and future business partners to recoup investments as quickly as possible and enjoy a higher return. At present time, three people Mr. laxman acharya and Tenzin wangdu along with Urmila Poudel will look after all the areas as far as possible. Others that have helped on the development of this business venture will be offered an opportunity to grow together with us company at the appropriate time, and when necessary. 3.5 Human resource plan Human resource planning has always benefitted many organizations and it has helped in the proper recruitment, selection and development of people in the organization for their career development and simultaneously to achieve the goal of the respective organization. Planning of human resource needs a lot of experts who have a sound knowledge about how to manage people related issues and how to retain quality and skilled people in the organizations. So for our organization we will be hiring one HR manager who will work closely with the workers and respective managers to handle labor related grievances. During the peak season period when there will be required of large number of labors, we will be hiring part time workers and pay them hour wise. This will help us in easing the labor shortages. The jobs of the respective managers will be determined according to their designations and their job description will be done wisely so that they wont be much confusion among them. The account managers will be handling task related to accounts department and operation manager will be working after task 9

related to all the operating activities. The KAHUN VILLAGE RESORT will recruit a general manager, marketing, production manager, human resource manager and other staffs. The KVR will be generating employment for 21 persons. Job Description of Critical Staffs General Manager

The general manager will handle the overall operation of the Resort. He is responsible for giving trainings and development employee. The production, marketing, HR manager and other staffs will be working under him. Financial Manager The financial manager will be record for overall income and expenses on daily basis. He will responsible for overall economy activities. Marketing Manager

The Marketing Manager will be responsible for marketing activities such as advertisement, promotion, and distribution of Resort Facilities to the customers. Human Resource Manager The HR manager is responsible for recruitment and selection of employees in consultation with the owners. He motivates employees to retain them.

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Chapter Four Environmental Analysis

4.1 Macroeconomic Analysis Despite the prolonged effects of the Economic Crisis followed by political turmoil in our country hotel and resort business witnessed growth every year. Much of this growth was contributed by increasing population of tourists. The growth is underpinned by increment in arrival of guests, such as seeking adventures and luxuries as part of their trendy lifestyle. This stimulated the rise in the number of resorts. Although there was a slowdown during the Maoist insurgency, the hotel and resort industry recovered faster than others, particularly after the peace process. Franchising became popular in this business through the introduction of resorts. We could extend it to the major cities in the country for gaining ultimate benefit. 4.1.1 Potential customers The company will cater to both business and individual customers. All national and international tourists are the potential business customers for the resort. This segment is very important to make a profit for this company. Therefore, the company will maintain good relations with these customers through instant delivery to ensure their retention. 4.1.2 Assessing the various risk The Analysis provides a comprehensive review of the Nepalese market over the last twenty years, looking at the impact of historical, political and employment relations developments on the working environment. It presents both objective evidence concerning the relationship between labor market developments and broad economic trends as well as the subjective views of employers, workers and trade union leaders on labor legislation and the functioning of the labor market.

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Political environment The political climate in a country in which business firm operates is a very important force. A hospitable and stable government encourages business investment and growth in spite of scarcity of natural and other resources. Business firms have to cope up with large number of other tensions like ideological conflicts, terrorism, traditional hostilities, government interventions, labor activism and so on. Business firms are not only influenced by the national political system; they are also influenced considerably by the international political events. The external political influences constitute the environment in which the domestic government policies as well as business activities are affected. Three major types of political risk encountered by Hotel industry: Ownership risk: This risk exposes property and life of the resort. Operating risk: This risk refers to interference with ongoing operation of the resort. Transfer risk: This risk is mainly encounter when attempt are made to shift fund from a country to another. In Nepal, it has been observed over the last 20years that the government remained in power only for a very short period. Political instability is the probability that an irregular political event will occur. Certainly, the magnitude and discontinuous nature of political events can affect the risk associated with a firms expected return. The political structure and the party system of a country exert a powerful influence on business and industry. In the tightly structured party system, business groups can do little other than support the more pro-business party financially. In a multi-party structure, business groups have enough scope for lobbying to get the decisions done in their favor. The highly divided nature of the party system, however strains business sector. The business houses have to contribute funds not only to party itself but to the different factions within it. Such a political situation leads to political instability, which ultimately affects business environment in the country. Economic environment The most significant of the all the external force with which business firm must contend in the economic environment of the country. The economic forces provide many opportunities and threats for organization. Good economic times provide organization to have an opportunity to 12

flourish. The economic dimension indicates the purchasing power and pattern of consumption of the people. The balance of payment statement and exchange rate measures external economic performance. Internal economic performance includes measures of aggregate result in term of output, price and employment. Limitation on capital affects all other related economic related factors. The financial manager of a resort must be aware of many financial forces, which originate outside the business firm. Inflation, taxation and fiscal and monetary policies directly affect business firms. Inflation: It has a direct impact on the cost of borrowed money. High inflation rates make capital expenditure planning more difficult. Taxes: Taxes have profound impact on the business. Even though business firms act as tax collectors rather than bearing the ultimate burden, it is in their interest if they can minimize the burden of taxation. With lower tax burden, they can lower prices to their customers or make higher profits with which to pay higher wages and dividends. Their stock price tends to rise, and they can be a better customer for the components and raw materials they buy from others. Monetary policy: It covers aspects such as money supply, interest rates, and exchange rates. The monetary policy needs to be consistent with the macroeconomic objectives of the program. Fiscal policy: It deals with the collecting and spending of money by government. It thus addresses to improving the quality of government expenditures more than the levels. Currency-exchange rates: Foreign currency exchanges gains or losses on payables, receivables, assets, and liabilities can substantially alter a firms profit or loss and balance sheets. Socio-cultural environment: A business firm must keep a close watch on the changing patterns of the socio-cultural make-up of a society in which it operates. The socio-cultural environment is a very strong environmental force. The buying and consumption habit of the people, their language, belief and values, custom and tradition, taste and preferences, education are all factors that affects business. The sociocultural forces should therefore, be properly analyzed and understood while formulating business policies and strategies. 13

Technological environment Technological environment consists of the invention techniques and the vast store of organized knowledge of ways of doing things. Technological changes result in modification in product and services in the way they are produced and marketed. The invention of computer and other electronic data processing equipment has changed the whole system of decision making. Legal Environment Laws protect business firm from unfair means, consumer from unfair business practices and protect the interest of society from unrestrained business behavior. The Hotel industry should use their awareness of the growing complexity of the legal environment in the country to avoid situation that might result in conflict misunderstanding or outright violation of national laws. Global Risk There may be some risk from the global economic crisis like as in 2008. That affect the inflow if the international tourist. Which is the source of the earning foreign currency and that may also affect the national economic level but the Resort can target more focus on the national or internal tourism for the development.

4.2 Competitive Comparison KAHUN VILLAGE RESORT would have several advantages over its leading competitors: Strategic planning will be followed to analyze opportunities and threats in the

environment. Will access the strengths and weakness and match them for competitive advantage for

long term prospective. Will be the market leader after establishment onwards.

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The differentiation strategy in food beverages and lodging facilities aimed to gain

competitive advantage. Will be well renowned. Superior service than any other competitors. Will maintain high customer satisfaction rate. We will expect a high degree of enthusiasm and offer a fun store with friendly staff that reflects the company's youthful and energetic culture. 4.2.1 Sales Literature Kahun village RESORT will use advertising and mass promotion programs to get the word attached with pokhara If gained recognition, we will establish branches in Kathmandu valley along with other main boundaries. For this, we need promotion in International level. Hoarding boards will be there from the gate of airports to bottlenecks from India Visual add and broadcasting will be managed in the leading television channels.

4.2.2 Sourcing The well furnished amenities will be brought from renowned Gautam furniture House. Carpets, handicrafts, blankets etc. will be managed from our own local industries. Most of the ingredients and raw materials will be managed locally. But items for Asian Pacific Cuisine will be brought from East Asian nations like Thailand, Myanmar, Cambodia, and Laos and even some European nations like Italy, France, Germany etc.We will be in touch with our regular vendors, suppliers, and distributors as well. 4.2.3 Future Products We will be focusing on providing excellent services to the service seekers. Our core products will be Chinese, Nepali Indian, Continental and Pacific northwest Cuisine. However, as we grow further, we will add new categories to our menu. In near future, our growth strategy will be opening up the branches in major cities of the country as well as opening up off highway resorts as a franchise too.SWOT analysis 15

SWOT analysis stands for strength weakness opportunity and threats. Strength Our resort strength will be the human resource including the management and all those workers who are skillful in their own work. We believe that to make or break it depends a lot on the human resources that you have. If people are motivated, efficient, skilled and educated then our business will be much easy and smooth going. So knowing about the importance of human resources we hope to train them, develop them and direct them to bring creativity in their work. Weakness Our firm weakness will be the experience and lack of awareness about our firm in the market. Experience counts a great because it gives us some idea about the industry in which we are doing our business. Lack of awareness about our resort in the market will affect our business a great deal because tourists look after those businesses which are branded and popular like Fishtail, Barai,Mt Kailash, and many more. Opportunity Opportunities are those external factors which are prevalent in the environment and which are in favor of our firm. So for our resort our opportunity will be the location. . Kahun village is one of the most reputed places in pokhara and most tourists prefer to visit there. So first of all thinking about the need of market and future success of our business we plan to establish our business at Kahun village. Threats Threats are all those unfavorable conditions existing in the market and which makes our business hard to operate. So knowing about the threats in the environment our first task will be to direct our business away from that particular threat and capitalize on our strength. This seems quite easy but in reality it will be really hard as we need to employ all our resource in one particular area and it might not bring return for a time being

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Chapter Five Marketing Plan

Firstly we will seek our "market testing area," and as we will go further other places also. In attracting guests, we will provide see-through lodges, so that people will see how we are committed to freshness in our products. The lodges will also let out an aroma of our fresh surroundings area, so that guests will come and stay in our resorts. Looking at the trend of tourists expenditures for lodging and fooding in the valley gives the positive vibes to open up the resort. The increasing number of new establishments such as Mirlung Resort, Machhapuchre View Resort, Mt.Dhaulagiri Resort, Lake View Resort,and sun and sons Resort etc. has shown growth in this sector. The only thing we need keep in mind is quality with the value for their money. So for this we will be focusing to all type of age groups people. Family unit - We will appeal to families with children. Gender - We will target for couples due to their greater attention to travelling and dietary

concerns. Income - We will appeal to the high income guests and to all in the lower medium

income bracket. Age - Elderly, Youngsters, single, enrolled in educational institutions or associated to

organization abroad or even within the nation. Country wise-Europeans, Americans, Africans, Asians, Australian, Chinese, Japanese,

Korean etc. On the basis of survey about 19 - 65 years old guests from different nations, 52% of those interviewed like to enjoy in resort rather than in five star hotel.. 70% of them like continental and pacific north-west cuisine. The survey also provided the following particular reasons for the increasing popularity of resort. International guests love to dine in resorts corridor and to stay in exclusive suites.

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Most guests prefer the recreational freshness such as swimming pool, cultural programs,

television, Wi-Fi, cleanliness, sanitation within the long stay. 5.1 Gap analysis In business and economics, gap analysis is a tool that helps companies compares actual performance with potential performance. At its core are two questions: "Where are we?" and "Where do we want to be?" If a company or organization does not make the best use of current resources, or forgoes investment in capital or technology, it may produce or perform below its potential. This concept is similar to the base case of being below the production possibilities frontier. 5.2 Marketing strategy There will be qualified trained efficient and courteous staff properly groomed. The aim would be to provide the best possible service to the guest and for the tie up keep of the hotel. The promotion advertisements will be through print media and hoarding. An attractive brochure would be given along with it. The proposed resort has a great potential to capture a large share of the developing market. The proposed resort can expect a good occupancy. Recommended marketing mix Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives. Marketing mix: In common parlance, marketing is the process of selling something at a shop or market place. A market is regarded as a single or an aggregated or relationship between consumers and producers who are separated by place and time and have a potential to strike an exchange of goods and services. Marketing is concerned with business and the functions, product planning, pricing, selling and advertising. When the functions mentioned above are interlocked in a planned and systematic manner to attain a given objective.

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Place The place can define as The aggregate of forces or conditions within which buyers and sellers make decision that result in the transfer of goods and services can be segmented geographically into: Region or place Climate In the geographic base, regional differences in terms of topography, climate, population and its density, from the base for market segmentation and differentiated marketing effort. Choosing the right location is an important and vital decision for any hospitality business. Certain factors have to be taken into account to decide the right place. Some of the factors that decided the selection of proposed hotel place are: Airport 8Kms from resort. Main City is just 5 km from the proposed site. Easy accessibility to town area.

Product: A product is a bundle of utilities and accompanying services. The proposed three star Resort would be a two-floor building with the following facilities. Car Parking Food store Books store Clothing shop Para gliding Telephone in all room Bird view Boating and self fishing Trekking Unlimited WI FI access Loking Laligurans Mountain view

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The important features of the resort are that it will have 6 Single Rooms, 4 Double rooms , 2 Suite rooms The resort will have a Multi-cuisine restaurant with 20 covers, and a bar with 10 covers. The resorts and staff will be at their best services to their customers. Promotion: To make the product and price known and acceptable to the target customers, it is essential to communicate, persuade and motivate them. Promotion can be effected through,

Personal Selling Advertisement Sales Promotion Public Relation

Personal selling:The resorts sales persons, who are on its customers so as to make an offer of sale, motivate them to positively respond to it and finally clinch the ideal. Advertising: The proposed resorts prompted through advertisements, by giving complementary to the guest and also by suggesting other 3* and 4* hotels by suggesting the name of the hotel if the guest has his company here, so that it is easily accessible in the same way the proposed hotel also in return will help. Advertisement could be referred to as the use of mass communication media to influence existing or potential through newspaper, T V ads. Etc. Advertisements will have positive effects such as: It will help to raise awareness about the company. To increase safer for the company. 20

To create favourable image and confidence of company. A direct marketing (direct mail) package consisting of a tri-fold brochure, letter of introduction, and reply card will be sent to a list of potential guests. This list can be obtained from Business Lists, and is compiled from tax records (by upper-income geographical areas, Secretary of State Incorporation registrations, business license applications, and announcements from newspaper clippings). The brochure and letter introduces The Kahun village Resort stresses the importance of having a good time in comfortable surroundings, provides information on our resort services, and describes what sets us apart from other area hotel and lounge properties. The initial mailing may contain a promotional offer: the opportunity to receive a 10% discount on the first night's room rate.Approximately two months after the mailing, an additional letter shall be sent. The potential guest would be asked to address any questions and the follow-up would remind them to drop in for a property tour on their next trip to phewa Lake. Additionally, new businesses will be targeted and sent information. 5.3 Marketing challenges Firstly we Identify and assess our company's current marketing efforts. Rate our company with our survey and target problem areas by understanding challenges, issues and strategies. General marketing challenges are: 1. 2. 3. 4. 5. The Role of Marketing The Classic Dilemma The Selling Process Product Planning Growth and Change

Marketing is the "man in the middle"--mediating between Customers, Prospects, Sales, Development, and the Executive Team. As such, Marketing is pulled in multiple directions. Marketing is the critical intersection between Development, Sales, Customers, and the Executive Team. 21

Marketing has an obligation and need to support both Development and Sales. However, the simultaneous demand and contention for limited Marketing resources may cause one or the other to lose out. Creative thinking is required to assure that the needs of all parties are met. Identifying and understanding your target customer and documenting the selling process are critical success factors. Proceeding without this information is like taking a long road trip without having a map. As the saying goes, "Quality. Cost Schedule. You can have any two of the three!" Defining a new offering and getting it out the door is an exciting and challenging balancing act. The key is to do your homework in advance and then make skilful trade-offs. Company grows, the market changes, and you are challenged to turn the resulting process breakdowns into breakthroughs. 5.4 Pricing policies Pricing is the most challenges job in any organization, price are the amount paid by the customer for using the goods and services. It is not easy to set the price. There are various factors that affect the pricing and Competitive pricing: Use competitors retail (or wholesale) prices as a benchmark for own prices. Price slightly below, above or the same as competitors are set, depending on positioning strategies. We must collect competitor pricing information by observation rather than by asking them. Otherwise it could be seen as collusion. Since there are not any organizations that are running business as hotel and resort in Kahun we can charge the price according to our benefits. Cost plus mark-up: This is the opposite of competitive pricing. Instead of looking at the market, we look at own cost structure. Decide the profit you want to make and add it to your costs to determine selling price. While using this method will assure a certain per-unit margin, it may also result in prices that are out-of-line with customer expectations, hurting total profit. This is the best pricing strategy to our product and services.

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Membership or trade discounting: This is one method of segmenting customers. Attract business from profitable customer segments by giving them special prices. This could be in the form of lower price on certain items, a blanket discount, or free product rewards. From this strategy we can attract more and more high profile people and business person to our resort. This also can be next policy to set price. 5.5 Sales forecasting Sales and Marketing strategies and plans are critical for any business. Why leave them to chance? These prewritten and fully editable sales and marketing procedures can help us quickly and effectively take control of our sales and marketing processes to achieve consistent results. The sales of the organization and customer loyalty will increase if the once visited guest visit again they are satisfied enough, so all the marketing campaign will focus to delight customer and to make them happy on their special occasion. And customers are the key factor to success of the any organization. Timely evaluation of the marketing technique and the services offered to customer are necessary for the growth of the organization so we evaluate our-self as; Are our sales processes effective? How well do our marketing tactics really work? Do our marketing and sales teams coordinate their efforts to achieve maximum results? Policies and procedures based on proven best practices can help align our sales and marketing processes to mange prospects and customers through the sales pipeline and achieve improved performance. 5.6 Distribution channel Kahun village resort will have a distribution channel that will link properly with the supplier of the raw materials and the immediate customers. This distribution channel will play a linking role and it will have to play a key role in the timely availability of all the needed resources at the right time in the resort at proper quantity, quality and cost. With this function we can know the significance of any distribution channel in any organization today. Our management has planned to establish a proper distribution channel in our resort so that in days to come we wont face many problems in any area of business and hamper the level of customer satisfaction and quality of service. The quality of distribution channel in this present environment is judged time and 23

often and those organizations who have strong channel will survive in the market. Sometime we can also call it a supply chain management. Suppliers (Raw materials) Figure: Distribution channel of Resort 5.7 Market Needs A recent analysis identified the following needs among our target markets. Our core group: Wants variety and flavor in its food items. Looks for speed of service Wants an entertaining and fun experience Insists upon a clean, friendly, and attractive environment Adopts a global lifestyle Excellent lodging and recreational activities to be well developed Readers Resort Customers

According to a Report published from various organizations market is booming in pokhara in these recent years. The globalization has led to lifestyle changes that are influencing peoples purchases, food, and entertainment choices. Some changes taking place include the curiosity and interest in excursion, visiting and travelling among people all around the globe. 5.8 Competitive Edge Our unique and tongue licking taste blend with local flavor gives value to the guests. Enthusiastic and friendly staff Supporting merchandise items that support company's brand building. Our food items are made of 100% fresh meat exported from local fresh house unlike the

frozen meat from abroad used by competitors. 24

Innovative ingredients mixed with 25 varieties exported from different continent will

position us in the different level than competitors. resorts. 5.9 Brand Challenges Our logo will be distinct as fresh, energetic and playful with color elements that are eye Exclusive lodging with well furnished and fully equipped amenities unique than other

catching. Product name will be geared toward the target market so that it will make the guests easy

to remember. 5.10 Marketing Programs We will deploy three different marketing tactics to increase the tourist arrival in our resort. Our most important tactic will be international advertising. This will be by far the cheapest and most effective of our marketing programs because of the high traffic in targeted Places. The second tactic will be local marketing. These will be low-budget plans that will provide community support and awareness for our resort. The last marketing effort will be utilizing national media. This includes visual media as well as paper media. Although, this will be the most costly, this tactic is the most effective and huge mass covering and flourish it in international level. Local Marketing Distributing brochures and pamphlets containing our concept and product detail. Wall posters and design concepts. Standing signage inside malls lobby/aisle. Grand opening promotion. Party catering and local media Direct mail piece containing brochures sent to surrounding addresses. 25

International magazines that target our core guests. Newspaper campaign placing several large ads throughout the month to aware our

resort to the local area. 5.11 Positioning Statement We will direct all of our tactics and programs toward the goal of explaining who we are and what we are all about. We will price our products fairly, keep our standards high, and execute the concept so that advertising in international level will be our main marketing force. 5.12 Sales Strategy The sales strategy is to build and open new locations in order to increase revenue. However, this plan will be implemented when the one "market tester" resort showed potential growth. As each individual location will continue to build its favorite over the first years of operation, The total sales of Rs 57,095,000 in annual sales. 5.13 Strategic Alliances Our business requires a long relationship with raw suppliers as well as partner vendors which we called business bonding. We will build a long and good standing relationship with local meat suppliers. So we will continue it in Kathmandu and Pokhara too, and we hope to strengthen further our business relationship.

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Chapter Six Financial plan

The following sections will outline the important financial details. 6.1 Description of initial investment The business would require an initial investment outlay of Rs.30000000.There will be three promoter each promoter will contribute Rs. 6000000. Contributing 60% of the amount. The rest of Rs. 12000000 would be borrowed from financial institution division of bank. Among which the proportion of short term debt is 10% and long term debt is 30% The proportion of debt and equity are 40% debt and 60% equity. 6.1.1 Requirements of fixed assets A long-term, Fixed asset held for business use and not expected to be converted to cash in the current or upcoming fiscal year, such as manufacturing equipment, real estate, vehicle and furniture etc. have fixed assets of Rs. 27,740,790 This project also has various requirements for fixed assets. The fixed assets used in these projects are shown in annex. 6.1.2 Estimation of working capital The projected net working capital for the company is Rs.2,259,210 Working capital measures how much in liquid assets a company has available to build its business. The number can be positive or negative, depending on how much debt the company is carrying. In general, companies that have a lot of working capital will be more successful since they can expand and improve their operations. The working capital is to meet different operation in the project and expenses. 6.2 Capital Structure Capital is raised from the sources, equity and debt. The promoters will have 60% of the capital that is raised from the owners equity Rs. 30000000 and 40% loan has been taken as a debt which include both long term and short term debt.

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Security of loan The land purchased for the company will be mortgaged as the collateral for the security in the bank. The fixed assets will be appreciated over 5 years due to the increasing value of land. 6.2.1 Loan Repayment Schedule: Loan is divided into long term and short term loan which will be paid over 5 years i.e. 40% of investment. The loan amortization schedule is shows at the annex amount of each installment and how much principal and/or interest is repaid each month. The loan installment payment in this project is Rs. 2,648,943 and the cost of capital from financial institution. 6.3 Estimation of Sales / Revenue: The revenue estimation of the company is accordance to the production capacity and the market coverage. Its capacity utilization is 60%, 65%, 70%, 75% and 80% over the five different years and the revenues are Rs.33175500,Rs 35940125 Rs 38704750, Rs 41469375 andRs 44243000 respectively. It has been estimated that there is increase in the revenue through goodwill of our product and the awareness to purchase by our prominent customers. Besides this we will expand the sales in different districts around i.e. market geographical coverage. 6.4 Estimation variable Costs Variable costs are corporate expenses that vary in direct proportion to the quantity of output i.e. Rs18011895,Rs 19512886 , Rs21013878 Rs 22514869 and Rs 24015860 respectively. The

table showing the details of variable cost for five years is shown in ANNEX. 6.5 Estimation of operating or fixed cost Operation cost includes utility, staffs etc in the office operation that does not vary depending on production or sales levels, such as rent, property tax, insurance, or interest expense. All the details are clearly shown in Annex

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6.6 Estimation of Interest The short term and long term interest payment over five years are shown in annex. The interest and principal for long term loan are paid over five years which are Rs 2,648,943 paid each year and Rs 3,480,000 for short term loan. 6.7 Projected Income Statements Income statement reflects management's performance as reflected in the profitability of an organization over a certain period. As in the project revenue increases so on income. It itemizes the revenues and expenses of past that led to the current profit or loss, and indicate what may be done to improve the results. It is based on a fundamental accounting equation (Income = Revenue - Expenses) and shows the rate at which the owners equity is changing for better or worse. In the operation of the business we have profit of Rs 4,526,235 on the first year where as profit for next four years are in increasing trend showing dividend payment and reserve and surplus. 6.8 Projected Balance Sheet Projected Balance sheet is a financial statement that summarizes a company's assets, liabilities and shareholders' equity at a specific point in time. Here in our project the assets and owners equity is in increasing trend and long term loan is in decreasing trend. These three balance sheet segments give investors an idea as to what the company owns and owes, as well as the amount invested by the shareholders. 6.9 Projected Cash Flows Statement It shows the flow of cash in the financial statement in first year we have cash balance of Rs.6,741,000, Rs 13,717,991 in 2nd, Rs. 21,452,095 in 3rd, Rs. 29,962,979 in 4th year and Rs. 39,258,889 in the fifth year. 6.10 Financial ratios Financial ratios are useful for evaluating the performance of the any organization. Financial ratios are one of the most common tools of managerial decision making. Ratios may serve as indicators, clues, or red flags regarding noteworthy relationships between variables used to measure the firm's performance in terms of profitability, asset utilization, liquidity, leverage, or

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market valuation. The average ROA, ROI and ROE are 16%, 38% and 20% respectively. The average Total Assets Turnover Ratio is 0.86 6.11 Projected Break Even Point The break-even point in any business is that point at which the volume of sales or revenues exactly equals total expenses -- the point at which there is neither a profit nor loss -- under varying levels of activity. Break even sales at average is Rs. 13767077. BEP percentage is 36% and safety margin with 64% respectively. 6.12 Pay Back Period Payback period for the project is 3.17 years. Since this method ignores the time value of money and cash flows after the payback period, it can provide only a partial picture of whether the investment is worthwhile. Length of time required to recover the initial amount of a capital investment. 6.13 Net Present Value The Net present value of the project is Rs 62,052,636 In NPV method used in evaluating investments whereby the net present value of all cash outflows (such as the cost of the investment) and cash inflows (returns) is calculated using a given discount rate, usually a required rate of return. An investment is accepted as the NPV is positive. 6.14 Internal Rate of Return The internal rate of return of the project is 26.45%. The rate of return that would make the present value of future cash flows plus the final market value of an investment or business opportunity equal the current market price of the investment or opportunity. The internal rate of return is an important calculation used frequently to determine if a given investment is worthwhile as it is greater than cost of capital.

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Chapter Seven Assumption / basis of financial Calculations

Underlining Assumptions

7.1

Capacity Utilization

The capacity of production is increased as 60%, 65%, 70%, 75%, and 80% in 1st year, 2nd, 3rd, 4th and 5th year .It will be not affected by the fluctuation in demand as Nepal is promoting tourism year 2011 and targeting 4 million international tourist by the year 2030. Number of days of operation

The annual working days of the company are 350 days. There won't be any disturbances from the political as from other forces like Band, strike and other disturbances. Cost, Interest rates and inflation

In this business plan assume a strong economy, without major recession and no unforeseen changes in economic policy to make our service immediately obsolete or unwanted. The cost of materials, utilities, operation expenses etc. doesnt change and affected by the inflation and increase in interest rate. During the project life the tax rate, deprecation rate for fixed assets will remain constant and insurance fee is assumed to one percent of net assets that remains constant throughout the year of the operation company. Inflation rate will remain constant so that Salary level of the staff will be unchanged for five years as per the rules and there is steady basic monthly salary. The cost of capital is constant in the entire business plan. Where cost of capital is the sum of interest rate and the risk premium.

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Chapter Eight Conclusion & Recommendation

8.1 Conclusion
Examining the financial statements, ratios analysis and cost of capital in capital budgeting we found Business Development Plan feasible and profitable. KAHUN VILLAGE RESORT is profitable business and maximizes the value of the share holders. From the projected data we have taken in to account from the different sources are more appropriate to our project evaluation and selection. The project evaluation from the NPV, IRR, cash flow, discounted cash flow and many more methods are providing the more feasibility to establish the project in near future. From the given feasibility report we can say that there is the profitability ratio in to our investment, which is favorable in all aspects. From the given financial indicator we can confirm that the capital expenditure is viable to our project. Analyzing different financial statements and ratio analysis such as income statement, balance sheets, statement of cash flow etc. it seem viable business development plan. The income is enlarged every year and the assets are increased as well which maximizes the promoters value. Criteria of evaluation of the project Ratio Percentage Return on Assets 16%

Return on Investment 38% Return on Equity 20% 0.86

Total assest turnover ratio

The different ratios are examined in which ROA, ROE and ROI and other ratios are feasible for doing business which is clearly shown above. 32

8.2 Recommendation
Taking consideration of the above analysis and projection based on the assumptions, I would like to recommend that project is profitable for equity investor and maximizes the shareholders value and wealth as it recover the cost with in a year of operation as well as growth has opportunity in the business.Kahun village is promising to provide long term benefits in term of profitability, fixed assets and liquidity. I had performed successful analysis of "KAHUN VILLAGE RESORT". The data which i used in this analysis to perform different calculation are real case data that was reference from actual Business Development Plan. The different financial calculation and projection and found the projected revenue budget, income statement, balance sheet, cash flow statement. Similarly, found the financial requirement and made the financial plan to carry out our Business Development Plan. Finally, I recommend anyone to own the business as the shareholder and assure they will be the successful entrepreneur.

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Ta
Acknowledgement Executive summary Chapter one ..................................................................................................................................... 1 Introduction ..................................................................................................................................... 1 1.1 The company........................................................................................................................ 1 1.1.1 1.1.2 corporate ,vision ,Mission ,Goal and objectives ....................................................... 2 The Promoters ........................................................................................................... 4

Chapter Two.................................................................................................................................... 5 Production plan ............................................................................................................................... 5 2.1 Product Description .............................................................................................................. 5 2.2 Company Locations and Facilities ........................................................................................ 5 2.3 Production plan ..................................................................................................................... 6 Chapter Three.................................................................................................................................. 7 Management and Human Resource Plan ........................................................................................ 7 3.1 Structure of the organization................................................................................................. 7 3.2 Human resource policy ......................................................................................................... 8 3.4 Role and responsibility of key staffs ..................................................................................... 8 3.5 Human resource plan ............................................................................................................ 9 Chapter Four ................................................................................................................................. 11 Environmental Analysis ................................................................................................................ 11 4.1 Macroeconomic Analysis.................................................................................................... 11 4.1.1 Potential customers ...................................................................................................... 11 4.1.2 Assessing the various risk ............................................................................................ 11 4.2 Competitive Comparison .................................................................................................... 14 34

4.2.1 Sales Literature ............................................................................................................ 15 4.2.2 Sourcing ....................................................................................................................... 15 Chapter Five .................................................................................................................................. 17 Marketing Plan .............................................................................................................................. 17 5.1 Gap analysis ........................................................................................................................ 18 5.2 Marketing strategy .............................................................................................................. 18 5.3 Marketing challenges .......................................................................................................... 21 5.4 Pricing policies.................................................................................................................... 22 5.5 Sales forecasting ................................................................................................................. 23 5.6 Distribution channel ............................................................................................................ 23 5.7 Market Needs ...................................................................................................................... 24 5.8 Competitive Edge................................................................................................................ 24 5.9 Brand Challenges ................................................................................................................ 25 5.10 Marketing Programs.......................................................................................................... 25 5.11 Positioning Statement ....................................................................................................... 26 5.12 Sales Strategy .................................................................................................................... 26 5.13 Strategic Alliances ............................................................................................................ 26 Chapter Six.................................................................................................................................... 27 Financial plan ................................................................................................................................ 27 6.1 Description of initial investment ......................................................................................... 27 6.1.1 Requirements of fixed assets ....................................................................................... 27 6.1.2 Estimation of working capital ...................................................................................... 27 6.2 Capital Structure ................................................................................................................. 27 6.2.1 Loan Repayment Schedule: ......................................................................................... 28 6.3 Estimation of Sales / Revenue ............................................................................................ 28 35

6.4 Estimation variable Costs ................................................................................................... 28 6.5 Estimation of operating or fixed cost .................................................................................. 28 6.6 Estimation of Interest .......................................................................................................... 29 6.7 Projected Income Statements .............................................................................................. 29 6.8 Projected Balance Sheet ...................................................................................................... 29 6.9 Projected Cash Flows Statement ......................................................................................... 29 6.10 Financial ratios .................................................................................................................. 29 6.11 Projected Break Even Point .............................................................................................. 30 6.12 Pay Back Period ................................................................................................................ 30 6.13 Net Present Value ............................................................................................................. 30 6.14 Internal Rate of Return...................................................................................................... 30 Chapter Seven ............................................................................................................................... 31 Assumption / basis of financial Calculations ................................................................................ 31 7.1 Capacity Utilization ....................................................................................................... 31

Chapter Eight ................................................................................................................................ 32 Conclusion & Recommendation ................................................................................................... 32 8.1 Conclusion .......................................................................................................................... 32 8.2 Recommendation ................................................................................................................ 33 ANNEX

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