運動整合型民宿商業計劃 - 政大學術集成

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(1)國立政治大學商學院國際經營管理英語碩士學位學程 International MBA Program College of Commerce National Chengchi University. 碩士論文政治. 大. 立Master’s Thesis. ‧. ‧ 國. 學 sit. y. Nat. 運動整合型民宿商業計劃 n. al. er. io. Sport-specialized Bed and Breakfast Business Plan. Ch. engchi. i n U. v. Student: Dante Chen Advisor: Professor Jack Wu. 中華民國一○三年一月 January 2014.

(2) 運動整合型民宿商業計劃 Sport-specialized Bed and Breakfast Business Plan. 研究生：陳敏麟. Student: Dante Chen. 指導教授：吳文傑. Advisor: Jack Wu. 國立政治大學. 學. ‧ 國. 立. 政治大. ‧. 商學院國際經營管理英語碩士學位學程碩士論文. er. io. sit. y. Nat. A Thesis. n. a to International MBA Program Submitted iv l C n U NationalhChengchi University engchi. in partial fulfillment of the Requirements for the degree of Master in Business Administration. 中華民國一○三年一月 January 2014.

(3) Acknowledgements I would like to thanks professor Wu for his guidance. He always gives me very practical advice that helps me go through the difficulties along the way to complete this business plan.. I also want to express my appreciation to the IMBA program as a whole. It was a fruitful experience for me. To strike a balance between work, family and school is challenging but I think this worth the effort. I really gain a lot from this learning experience. It not only broadens. 政治大. my view, but also gives me knowledge, insight and aspiration. Special thanks to Lichi and OIP. 立. office. Lichi is the answer for everything. Like a supercomputer with robust database, she. ‧ 國. 學. handles every request in timely and efficient manner.. ‧. I thank my colleagues in GE, Trend Micros and PCA Life Taiwan for their support and friendship while I am pursuing my degree. It was my privilege to have 3 great leaders wrote the. y. Nat. er. io. sit. recommendation letter for me back in 2008. Alfred Cheung, CEO of PCA Life Taiwan, is the leader I admire most. Eddie Chee, former GE Regional CIO. His wisdom in work and life. n. al. Ch. i n U. v. inspired me a lot. Wen Shu, COO of Cosmos Bank now, was Country Manager of GE Capital. engchi. Taiwan. She is the female leader I know with toughest mind and softest heart. I believe their recommendation helps a lot for me to be admitted in IBMA. Tommy Chao, my previous manager and mentor, gives me very useful advice at work, which enables me to handle work and school more efficient. The encouragement from my supervisor, Abby Chien, and my colleague, Pauline Wang, both are also school fellows of NCCU, pushes me to reach this point. The list goes too long for all my coworkers who share my workloads. I can only thank them in person.. i.

(4) My family’s support is critical for me to get through the tough 4 more years. My mother never has the opportunity to have proper education but she is the most educated woman to me. She teaches the best lessons with her whole life. My father passed away when I was 14. I believe he would be proud of me for my determination to complete this program if he were still alive. My sister, Zine, also one of my best friends, is the best listener of mine. She is the one I can call anytime, happy or sad. My wife Emily Sue takes most of the family obligation and gives me all her love without condition. She is the magician to make my dreams come true, including a. 政治大. lovely son. Now 4 years old, Rory was born at the same time I enrolled this program. He grows. 立. physically while I grow academically. I dedicate this thesis to Emily and Rory.. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. ii. i n U. v.

(5) TABLE OF CONTENTS 1. Executive Summary .............................................................................................................. 1 1.1. Mission ............................................................................................................................ 1 1.2. Objectives ........................................................................................................................ 2 1.3. Keys to Success ............................................................................................................... 3 2. Company Summary .............................................................................................................. 5 2.1. The Business Concept ..................................................................................................... 5. 政治大. 2.2. Company Ownership ....................................................................................................... 7. 立. 2.3. Company Location and Facilities .................................................................................... 7. ‧ 國. 學. 3. Services ................................................................................................................................ 10 3.1. Value Propositions ......................................................................................................... 10. ‧. 3.2. Key Activities ................................................................................................................ 11. Nat. sit. y. 3.3. Future Services .............................................................................................................. 13. n. al. er. io. 4. Market Analysis .................................................................................................................. 15. i n U. v. 4.1. Market Trends ................................................................................................................ 15 4.1.1. Tourism in Taiwan .................................................................................................. 15 4.1.2. Sport Industry Trend ............................................................................................... 16. Ch. engchi. 4.2. Customer Segmentation................................................................................................. 18 4.2.1. Semi-professional ................................................................................................... 18 4.2.2. Local Young Athletes.............................................................................................. 19 4.2.3. Casual Tourists........................................................................................................ 19 4.3. Competitors ................................................................................................................... 19 5. Strategy and Implementation ............................................................................................ 22 5.1. SWOT Analysis ............................................................................................................. 22 5.1.1. Strength ................................................................................................................... 22 5.1.2. Weakness ................................................................................................................ 23 5.1.3. Opportunities .......................................................................................................... 24 iii.

(6) 5.1.4. Thread ..................................................................................................................... 24 5.2. Marketing Strategy ........................................................................................................ 25 5.2.1. Marketing Expenses ............................................................................................... 25 5.2.2. Pricing Strategy ...................................................................................................... 25 5.2.3. Promotion Strategy ................................................................................................. 26 5.3. Sales Strategy ................................................................................................................ 28 5.3.1. Sales Forecast ......................................................................................................... 29 5.4. Strategic Alliances ......................................................................................................... 31 5.5. Corporate Social Responsibilities.................................................................................. 31. 政治大. 6. Management Summary ...................................................................................................... 33. 立. 6.1. Organizational Structure ................................................................................................ 33. ‧ 國. 學. 6.2. Management Team......................................................................................................... 33 6.3. Personnel Plan ............................................................................................................... 35. ‧. 6.4. Training.......................................................................................................................... 36. Nat. sit. y. 7. Financial Projection ........................................................................................................... 38. io. er. 7.1. Twelve Month Profit and Loss Projection ..................................................................... 38. al. 7.2. Projected Cash Flow ...................................................................................................... 38. n. v i n 7.3. Four year Profit ProjectionC............................................................................................ 38 hengchi U References................................................................................................................................ 42 Appendix ................................................................................................................................. 43 Appendix 1: Tourist Attractions near Guanshan ................................................................... 43 Appendix 2: Floor Plan ........................................................................................................ 44 Appendix 3: Summary of Key Activities ............................................................................. 45 Appendix 4: Map of Guanshan ............................................................................................. 46 Appendix 5: Hotels and B&B in Guanshan ......................................................................... 47. iv.

(7) List of Figures and Tables Figure 1: Location of Guanshan Township ................................................................................ 8 Figure 2: Population Trend in Guanshan .................................................................................... 8 Figure 3: Four Actions Framework, Blue Ocean Strategy ....................................................... 11 Figure 4: Visitor to Taiwan by Purpose .................................................................................... 15 Figure 5: Tourism Industry in Taiwan ...................................................................................... 16 Figure 6: Race Events in Taiwan (Runner's Plaza, 2014)......................................................... 18. 治政 Figure 7: Number of Rooms by Type in Taitung ...................................................................... 20 大立 Figure 8: B&B Open in Guanshan by Year .............................................................................. 20 ‧ 國. 學. Figure 9: B&B by Characteristic .............................................................................................. 21. ‧. Figure 10: Initial Organization Chart ....................................................................................... 33. y. Nat. er. io. sit. Table 1: Eliminate-Raise-Reduce-Create (ERRC) Grid, Blue Ocean Strategy ........................ 12 Table 2: Summary of Services and Products ............................................................................ 14. n. al. Ch. i n U. v. Table 3: Accommodation in Taitung......................................................................................... 20. engchi. Table 4: Twelve-month Sales Forecast ..................................................................................... 29 Table 5: Summary of Management Roles and Responsibilities ............................................... 35 Table 6: Four Year Personnel Estimates ................................................................................... 36 Table 7: Twelve Month Profit and Loss Projection .................................................................. 39 Table 8: 12 Month Cash Flow Projection ................................................................................. 40 Table 9: 4 Year Profit Projection .............................................................................................. 41. v.

(8) 1. Executive Summary Bed and Breakfast (B&B) business has becoming popular in recently years in Taiwan. There is growing number of B&B business. By 2013, there are total 4,223 registered B&B providing 16,904 rooms in Taiwan. It has become a 2 billion revenue business in Taiwan. (Tourism Bureau, M.O.T.C, Republic of China, 2013). This paper is aimed to analyze the market and give the owners suggestion for their plan to open. 政治大. a Bed and Breakfast business in Taitung. Given the relative competitiveness in this market, the. 立. owner is going to enter this market with some specialized characteristics to differentiate itself. ‧ 國. 學. from its competitor.. ‧. Unlike traditional B&B business, the business model extends the services to other sport-related activities, which generate other revenue to make the business more profitable and sustainable.. sit. y. Nat. 1.1. Mission. al. n. execution accordingly.. er. io. Our study suggests that it is feasible to be profitable in 4 years with proper planning and. Ch. engchi. i n U. v. Internally the company intends to create and nurture a healthy, exuberant, respectful, and enjoyable environment, in which the employees are fairly compensated and encouraged to respect the customer and the quality of the service the company intend to provide. In addition, follow-up will be mandatory so as ensure customer satisfaction and make any improvements as recommended by the customers in future. The company seeks fair and responsible profit, enough to keep the company financially healthy for the short and long term, and to fairly remunerate employees for the work and effort.. 1.

(9) 1.2. Objectives Our business strategy will revolve around the need to provide quality service to our various target customers, in the process fully satisfying their needs. This shall be undertaken through recruitment of a professional team and the provision of good quality custom-designed offerings, catering to the client's particular needs.. With time our marketing campaign will increase the awareness of our services in the various. 政治大 to be reflective of our intended image and reputation. We shall position ourselves as a quality 立 market segments we shall be targeting. Marketing material shall be professionally done so as. ‧ 國. 學. Bed & Breakfast operator as well as sport event organizer that provides customer-need fulfillment, enjoyment, reliability and a good image. We intend to establish a good rapport with. ‧. all the relevant stakeholders, especially other local business and sport clubs around Taiwan.. y. Nat. sit. We also intend to have well-designed brochures and other promotional material that will enable. n. al. er. io. clients to have an understanding of the types of services we offer and advantages of utilizing. i n U. v. them. In addition well-done, informative brochures, fact sheets and business cards often have a. Ch. engchi. triggering effect on clients contemplating utilizing our services. Hence this will undoubtedly generate increased sales of our service.. In summary we intend to attain the following objectives: . Develop enthusiastically satisfied customers all of the time.. . Establish a market presence that assures short-term and long-term profitability, growth and success.. . We are fully committed to supporting growth and development in the tourism and overall economy of Guanshan.. 2.

(10) . Contribute positively to our communities and our environment.. 1.3. Keys to Success The keys to the company’s success will undoubtedly be effective market segmentation through identification of several niche markets and implementation strategies. Along these lines the company intends to implement advertising, personal selling and direct marketing strategies to the target markets. Our personal selling marketing strategies will rotate around keeping in touch. 政治大 Hence our key success factors will include the following: 立. with sport clubs in Taiwan for major customers, and advertising for more individual customers.. Excellence in fulfilling the promise: We intend to offer completely enjoyable,. ‧ 國. 學. 1.. comfortable and informative customer experiences that will ensure that sport lovers are. Timely response to customers' requests: We cannot afford to delay our clients for. sit. y. Nat. 2.. ‧. thoroughly satisfied and appreciative at the end of their trip.. io. er. whatever reason, as this will have a negative bearing on our image and reputation,. al. including future business. Hence we need to be continually communicating with the client,. n. v i n including hotels and lodgesC soh as to ensure that we e n g c h i U are constantly available to the client meeting their expectations. 3.. Solid and fruitful strategic alliances: Considering the nature of our services and our relative infancy on the market, we realize the importance of establishing and maintaining fruitful strategic alliances with various stakeholders, including sport clubs and travel agencies, amongst others, so as be assured of a constant flow of customers, fulfilling their needs at every opportunity.. 4.. Marketing know-how: As a relatively new company on the market there will be a need to aggressively market our business and the services we provide so as to be continuously. 3.

(11) at the top of our prospective clients minds. This will also act as a temporary deterrent for companies contemplating entering our market. Advertising shall be undertaken on a regular basis.. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. 4. i n U. v.

(12) 2. Company Summary The business founders are sport enthusiasts. The business idea mainly comes from one of the founders, Mr. Fu. He is now the secretary of Taiwan Marathon Association. He has attended several marathons and Triathlons himself and aggressively organizing sport events in the past few years. He has family business on pig farming, which is pretty successful. With his innovative business sense, he is one of the first farmers to adopt RFID to manage the pigs through its life cycle. (Dajiyuan.com, 2007) Since the pig farming business has become quite. 治政 stable, he shifted his focus on things he was interested 大and handed over the farm’s daily 立 operation to his younger brother. ‧ 國. 學. In the past few years, he has organized more than 22 sport events, including the first 226KM. ‧. iron-man race in Taiwan (consisting of 4KM swimming, 180KM biking and a 42KM full. Nat. sit. y. marathon). He builds a very strong relationship with sport sponsors, and have networked with. n. al. er. io. many athletes. He has a strong network in Taitung and other places in Taiwan. In his experiences. i n U. v. of event arrangement, he finds accommodation bother the attendees a lot. To find a good place. Ch. engchi. to accommodate their needs, where they can get supplies and support is a business opportunity in Mr. Fu’s view.. 2.1. The Business Concept Besides the basic accommodation and meals services, the company aims to provide sportspecialized services for sport-lovers and their families, utilizing his resources and network in the sport fields.. With 5 rooms to accommodate up to 30 people, the company hopes to build an environment that is “sport friendly”. During race seasons, the main target customers will be event participants. 5.

(13) Services from meals to supply, such as bike fixing, fine-tuning services and transportation to the race event place are the key activities. While during low seasons without races, the company will also take general tourists. They will also organize event such as training camp, injury prevention workshop and healing therapy as vacation to sport lovers. In the first floor, a coffee shop with sale of sport gears is perfect place for sport lover to chat, to exchange training tips and information. The atmosphere the company is trying to create is purely sport-centered place.. 政治大 that are most welcomed by athletes. For example, there will be massage room that helps athlete 立. To achieve the goal of sport-specialized B&B business, it will spend money on setup facilities. ‧ 國. 學. recovery from training or race events. Basic sport supplements, sport gears are sold beside the coffee shop. Mr. Fu is going to hand pick sales person with the same enthusiasm as himself so. ‧. that can provide informative and knowledgeable advices to the customers in need.. y. Nat. sit. Mr. Fu has been working in Travel Agent for 2 years before he came back to his hometown in. n. al. er. io. Guanshan. This experience along with his easy-going personality, he is perfect candidate as tour. i n U. v. guide to organize short term day tours. There are quite some nearby tourist attraction for tourists.. Ch. engchi. (See appendix 1 for nearby tourist attractions). Mr. Fu personally often participates oversea race events. With his travel agent experiences, most of the time he takes the initiative to organize the logistic stuff for his fellow event participants. Due to his reputation on organizing big sport event, his year (2013), he was invited to organize International Marathon event in Republic of Palau, one of the few diplomatic allies of Taiwan. This is another business opportunity. He can organize travel group to participate sport events oversea and charge reasonable handling fee.. 6.

(14) 2.2. Company Ownership Fu’s B&B is a Private Limited company. It is a 100% wholly owned firm by Mr. Fu and Mr. Wu.. 2.3. Company Location and Facilities Located at the southern section of Huatung Gorge, Guanshan Town borders the Coastal Mountains and Tunghe Town in the east. It connects to Cishang in the north; Haiduan Town on. 政治大 away. It has an expanse of plains, making it highly suitable for agriculture. Rice is the most 立 the Central mountain, in the east; Luye Township, in the south. And Taitung City is just 42km. ‧ 國. 學. important crop in this town. In addition to the beautiful grains of Guanshan rice, there are beautiful farms and gardens built by the pioneers. Wherever there are settlements there are. ‧. traces of history. Historical landmarks record the tough days of the outback migrants. All of. sit. y. Nat. these are precious assets and have high potential for development of tourism. The opening of. io. er. the town bicycle trail and water park began to attract tourists who love to ride the winding trails through the fields, around the ponds of ducks, and into the memories of the good old days.. n. al. Ch. engchi. 7. i n U. v.

(15) Guansahn Town. 立. 政治大. ‧. ‧ 國. 學. Nat. io. sit. y. Figure 1: Location of Guanshan Township. n. al. er. Like most of the township in Taitung, Guanshan is also experiencing population shrinking as a. Ch. i n U. v. result of urbanization. As shown in the figure 2, the population now is less than 10 thousands.. engchi. The owner intends contribute to the development of local economics. 20000 15000 10000 5000 0 1946 1953 1960 1967 1974 1981 1988 1995 2002 2009 Household. Total. Male. Female. Figure 2: Population Trend in Guanshan. 8.

(16) The owner is planned to use Mr. Fu’s own 3 stories house for the B&B business. Therefore, they are going to name it “Fu’s B&B: Guanshan Sport Station” (傅家民宿：關山運動學園). It is at the Center of Guanshan Town, about 800M away from the train station, a perfect distance for a walk and only 2 minutes by car. It’s at the side of main road, having very high visibility to tourists by car as well. Parking is not a problem as there is plenty space around the building.. At first floor, one fourth of the space at the rear of the house will be the office. Another one. 政治大 designed that can be dynamically used for therapies to take place with movable partitions. The 立. third is multi-purpose area for activities like yoga class, workshops and seminars. It’s flexibly. ‧ 國. 學. rest space in the front of first floor is for coffee shop to offer coffee, drinks and light meals. Most importantly, a casual space for sport lovers getting together. A large screen with overhead. ‧. projectors can be used to share race videos, educational slides or simply movies. A small corner. sit. y. Nat. at the rear of the coffee shop is for displaying of sports gears, such shoes, professional sport. io. er. wears and training equipment. Second and third floors are for accommodation. There will be 5 rooms to accommodate up to 30 people. (Refer to appendix 2 for the floor plan). n. al. Ch. engchi. 9. i n U. v.

(17) 3. Services 3.1. Value Propositions The company is run by and for sport-lovers. From accommodation, meals, products and services are all sport-centralized. The two founders, Mr. Fu and Mr. We possess broad knowledge regarding sport training. They have very good network with the other event organizers and famous sport brand companies. Since they grew up locally, they also have strong local connections with school and other public sectors. More than a decade experience hosting local,. 治政 national and international events, they are famous for their 大 ability to organize small and big 立 events. They enjoys sport events themselves as participants as well as organizers. Running a ‧ 國. 學. B&B in Guanshan is just an opportunity to extend their enthusiasm and experiences to. ‧. profitable services. As Simon Sinek says, “people don’t buy what you do, they buy why you do it.” (Sinek, 2011) Their customers are not only here to find a place to stay. They stay her because. y. Nat. er. io. sit. Fur’s B&B fulfills their needs to participate sport event more convenient, to gain more knowledge, to enjoy more out of sport events and to extend their network with same group of. n. al. Ch. i n U. v. people with similar interest. Fu’s B&B business serves as a platform to match service providers. engchi. and users. His connections help link them together.. Fu’s B&B doesn’t consider itself as a competitor to the other local B&B. Instead, the founders want to create business opportunities for all the local businesses by very unique business model. By organizing medium and big events, they attract more visitors to Guanshan. The economic values are shared among businesses that provide accommodation, meals and other tourismrelated services. For travelers, they get the services they need. For local business, they enjoy the revenue increase as well.. 10.

(18) 3.2. Key Activities To create new values for its customer, Fu’s B&B offers varied service and products to distinguish the company from the other service providers.. Instead of purely providing accommodation, Fu’s B&B positions the company as travel agent and sport event organizer. By adapting Blue Ocean Strategy, the company looks for opportunities to eliminate, create, raise and reduce factors that generate new value to his target. 政治大. customers as illustrated in figure 3 below.. 立. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. Figure 3: Four Actions Framework, Blue Ocean Strategy To combine different roles in one company, Fu B&B doesn’t have enough resources to cover all aspects. Inevitably, the company needs to tradeoff between different “factors”. For example, the company will eliminate most of common services that the other accommodation place provided. The customers are happy serving themselves, while enjoy the companion with the other people sharing the same interests.. 11.

(19) Table 1 below demonstrates how they conduct the exercise of ERRC. Table 1: Eliminate-Raise-Reduce-Create (ERRC) Grid, Blue Ocean Strategy Eliminate Which. Raise. Reduce. factors Which. factors Which. Create factors Which. factors. that the industry should be raised should be reduced should be created has. long well above the well below the that the industry. competed. on industry's. industry's. has. should. be standard?. standard?. offered?. never. eliminated? Accommodation.  Room Services. 立. for  Comfort. 治 decoration, 政 athletes 大 entertainment. group  Sales of sports gears. ‧ 國.  Injury prevention clinic.  IT system. ‧.  Customer.  Service charge. n. al. er. io. sit. y. Nat. service. Sport organizer. and  Discussion. 學. Travel Agent.  Therapy.  Prize. Ch.  Mileage. engchi U. v n i Registration fee.  Race registration and. other. logistics arrangement  Ultramarathon. As an accommodation provider, they will eliminate most of the room services, while create special services for athletes such as selling of sport gears and provide As travel agent, they will use IT system to replace most of the customer services. They not only provide tour arrangement, but also to facilitate the registration to race events, both for local and oversea races. This creates special traveling experiences for sport lovers. As sport organizer, they no longer provide prize like most of the other races. It features with ultra-marathon event, which has distance over 50KM. The distance goes up to 100KM for serious athletes with sufficient training mileage to. 12.

(20) enter. In 2014, they are going to organize a very special event. Participants can run 9 full marathons in 7 days. That is about 380KM in total – only for people who train seriously.. In specific, at the initial phase, the following services are provided: . Local tours: day tour to local tourist attractions. . Race events: race event to attract visitors who love participate in festival kind of events.. . 政治大 routes in Taiwan, the various running tracks and open water for swimming, Taitung 立. Training camp: with its rich nature resources, which include one of the best cycling. ‧ 國. . 學. is the best place for endurance sport training. Sales of sport gears: the relationship with brand company helps them to get good. Coffee shop: coffee and drinks are not the selling points but the atmosphere for sport. sit. y. Nat. . ‧. discount while their reputation in sport field guarantee the sales profit. al. Accommodation: conventional services for B&B. v i n Therapy: for seriouslyC trained athletes to recover from injuries and relieve their stiff U hen i h gc n. . io. . er. lovers to get together in the place. muscles. 3.3. Future Services Besides serving incoming visitors, Fu’s B&B also like to serve his fellow citizens in Taitung. To organize travel group not only for sightseeing, but to attend race outside Taitung or even oversea is one of the services Fu’s B&B can offer. Mr. Fu had been working in travel agent for more than 2 years, he has no problem at all to play the role as a tour leader. Most people enjoy attend races outside their hometown. What prevents them from attending such event most is to go through the hassle of arranging accommodation and other logistics, such as signing up event 13.

(21) and transportation to the event venue. Mr. Fu has the knowledge and experiences. There is economic of scale for him to batch handle all the logistics for event participants. In the long run, Fu’s B&B can also consider franchising their brand to duplicate the same business model outside Guanshan. However, this is not likely happening in the first 5 years, we will not discuss franchising in the plan. To be a sport activities expert, Fu’s B&B will also consider to provide events like bike-fixing. 政治大. course for profession athlete with the skills to maintain their own equipment. For non-. 立. 學. ‧ 國. professional, especially family of the athletes, event such as mountain hiking, bike ride class to teach young kids how to ride bike are good alternative activities to make Fu’s B&B a place for. ‧. Organizing oversea race. -. Day tour. Souvenirs. n. al. Ch. y. Products. io. Local Tour. Services. sit. Travel Agent. Nat. Roles. Table 2: Summary of Services and Products. er. family.. Event organizer. Race events. Training camp. Guided Training. -. engchi. i n U. v. Meals for Athletes. Program Personal Trainer Sport shop Coffee shop. Product Advice. Sport Gears. Bike maintenance. Supplements. -. Chat room Coffee, drink and meals. B&B. -. Accommodation. Therapy. Massage,. -. Injury healing therapy, Yoga class. 14.

(22) 4. Market Analysis 4.1. Market Trends In this section, we will look at the macro market trends in both tourism and sport industry as background analysis of our business.. 4.1.1. Tourism in Taiwan Thanks to an ever-increasing number of tourists—Taiwan has welcomed a record number every. 政治大. year since 2006—tourism is a growth industry in Taiwan. In 2012, travelers from overseas made. 立. a record-high 7.3 million visits to Taiwan, an increase of 1.22 million (20.1 percent) compared. ‧ 國. 學. to 2011. Around 4.7 million (64 percent) of these visits were by tourists, which is 11.95 percent more tourist visits than the country had the year before. (Figure 4). ‧. n. al. er. io. sit. y. Nat. exhibite other 15,789 1,096,220 0% medical 15% education 58,444 62,719 meeting 1% business 1% family 62,988 1% 893,767 444,213 12.22% 6%. Tourists. 2001 1,021,572, tourist (36% ). Ch. engchi. Tourists. 2006 1,510,207 tourist (43%). i n U. v. Tourists. 2012 4,677,330 tourist (64%). Figure 4: Visitor to Taiwan by Purpose The total revenue from tourism industry has grown over 600 billion in recent 2 years. It appears that tourism is a booming industry. (Figure 5) 15.

(23) Total Tourism Earning. Foreign Tourist. Domestic Tourist. Unit: Billion NT dollar 700 636. 600 500. 514. 400 382 300 200 100. 618. 224. 219. 193 159. 102. 立. 0. 2005. 171. 2006. 2007. 349. 276. 184 187. 183 225. 238. 2008. 2009. 2010. 政治大. 165. 326. 2011. 270. 2012. 學. ‧ 國. 2004. 408 371. 310. 248 134. 2003. 391. 351. 320 218. 389. ‧. Figure 5: Tourism Industry in Taiwan. Nat. sit. y. 4.1.2. Sport Industry Trend. n. al. er. io. A series of programs designed by the government is in place to get people active and involved. i n U. v. in sports. (Executive Yuan, Republic of China Web Site, 2012) According to annual SAC. Ch. engchi. (Sports Affairs Council 行政院體育委員會) surveys, the proportion of people regularly engaged in physical activity grew from 12.8 percent in 2003 to 27.8 percent in 2011. The most popular forms of physical activity are walking, hiking, jogging and cycling. This gradual change can be partly attributed to the SAC’s six-year plan, begun in 2010, to develop Taiwan into a “sports island.” A total of NT$13.26 billion (US$446 million) has been allocated for the construction of 50 sports centers and 20 sports parks across Taiwan, as well as for programs and activities aimed at increasing the physically active population by 1 percent annually. Sports centers are to house a fitness room, an aerobics room, a swimming pool, and. 16.

(24) multipurpose badminton and table tennis courts. The current leader in providing athletic facilities, Taipei City, has a sports center in every one of its 12 districts. Meanwhile, another initiative is underway to improve the swimming ability of all citizens, particularly students.. Reflecting the growth of sports awareness in Taiwan, 7,759 sports clubs, 24 major leagues and 238 minor leagues were formed in 2011.. To spur the growth of the sports industry, the government implemented the Sports Industry. 政治大. Development Act 運動產業發展條例 in March 2012 to encourage private-sector participation. 立. in sports promotion and nurture athletic talent. The new law offers tax incentives to businesses. ‧ 國. 學. and sports bodies that invest in major public sports facilities, underwrite sports research, or sponsor sporting events.. ‧ sit. y. Nat. In recognition of their sponsorship of sports—either for events or athletes—several companies. io. al. n. 2009.. er. have received the Sports Promotion Award 運動推手獎 presented annually by the SAC since. Ch. engchi. i n U. v. As reflection of active participation of general public to the sport activities, the number attendees for race events has being growing in recent years. According to one of the most famous Taiwan race event registration web site, Runner’s Plaza, the registered race events have grown from 42 races a year in 2005 to 257 races a year in 2013. In Easter Taiwan, the races have grown from 4 to 39 races a year, almost 10 times in 9 years. (Figure 6). 17.

(25) Race events in Taiwan 257. 180 155 98. 108. 109. 124. 61. 42 4 2005. 7. 7. 12. 14. 18. 19. 26. 2006. 2007. 2008. 2009. 2010. 2011. 2012. 政治大. Race in Taiwan. 立. 39 2013. Race in East TW. Figure 6: Race Events in Taiwan (Runner's Plaza, 2014). ‧ 國. 學. 4.2. Customer Segmentation. As a sport-specialized business, Fu’s B&B is mainly focusing on niche market. However, to. ‧. maintain a sustainable business, they also offer services to casual tourist.. sit. y. Nat. er. io. 4.2.1. Semi-professional. al. v i n Ch enthusiasm in sport. They train themselves e n g seriously c h i Uand attend races from time to rime. n. Semi-professional are serious sport participants, normally have a full time job and have. Normally, they train all year long and pick 3 to 4 big races a year. They are generous to “invest” themselves to improve their race performance. For example, they may possess bike even more expensive than their cars. They like talk about sports with people and easy to make friends with the same interest in sport. With intensive trainings and races, inevitably they also get injured sometimes. In general, they are keen to learn and possess basic knowledge regarding training, performance improvement and staying in healthy condition. Some of them join sport clubs while most of them are individual only network with some close friends. This group of people are the main focus of Fu’s B&B. During race season, Fu’s B&B is the first choice for this group. 18.

(26) of people to stay. In low season, other activities, such as training camp, sport workshops and seminar are arranged to attract people in this segment.. 4.2.2. Local Young Athletes Young sport participants are mainly students from local high schools. Fu’s B&B intends to provide educational workshops and training to them. They are charged very low and even free. At the same time, they are also candidates for part-time workers in Fu’s B&B. Mr. Fu doesn’t. 政治大 those young athletes as they are the hope of Taiwan sport field. This is part of the social 立 really see them as customers. Rather, he thinks it’s very important to pass correct concepts to. ‧ 國. 學. responsibilities Mr. Fu believes he should make contribution to his home town.. 4.2.3. Casual Tourists. ‧. This group is consisting with normal tourists and family of serious sport event participants. In. Nat. sit. y. order for first segment to attend sport activities, at the same time, enjoy family time, Fu’s B&B. n. al. er. io. have different arrangement for this group of people. Day tours to nearby tourist attractions,. i n U. v. softer activities such as biking around the Guanshan route are normally very welcomed. Since. Ch. engchi. Fu’s B&B has facilities to provide accommodation, they also welcomed tourists who need only a room to stay overnight.. 4.3. Competitors In terms of accommodation, Fu’s B&B is competing with Hotels and B&B in Taitung. According to the statistics, by November 2013, there are three 5-start and one 4-start International tourist hotels in Taitung. The room rate is from three thousands to tens of thousands a night. Number of hotels with 1 to 3 start in Taitung is 12. In total, 15 hotels provide. 19.

(27) 1,663 rooms. However, they are not Fu’s B&B’s main competitors as they have different segmentation target customers. Table 3: Accommodation in Taitung Type. No.. Rooms 4. 771. 11. 892. 555. 2,281. International tourist hotel 1-3 start hotel B&B. 政治大. On the other hand, 2,281 rooms are provided by 555 B&B, which is 58% of the total number as illustrated in figure 7 below.. 學. ‧ 國. 立. 771, 19% 2,281 , 58%. 892, 23%. ‧ B&B. er. io. al. 1-3 start hotel. sit. y. Nat. International tourist hotel. v. n. Figure 7: Number of Rooms by Type in Taitung. Ch. engchi. i n U. In Guanshan, there are 2 tourist hotels and 2 normal hotels that provide 120 rooms for visitors. 27 B&B were opened in the past 11 years, which provide 99 rooms. (Figure 8) 6 5 5 4. 4. 4. 4 3 2. 2. 2. 2. 2 1. 1. 1. 1 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013. Figure 8: B&B Open in Guanshan by Year. 20.

(28) In terms of their specialty, nearly half of them feature the experience of country life. (Figure 9) The price of each room range from NT$800 to NT$8,000, depending on the size of the room. Most of them provide free bike for visitor to travel along the most famous Guanshan bike route. None of them are sport-oriented. Fu’s B&B business model remains new and unique.. Country Life. 政治大. 9. Country Life + Eco scene. 立 1. Eco scene Garden. 1. Local History. ‧ 國. 學. 1. Other. ‧. n. al. er. io. sit. Nat. Figure 9: B&B by Characteristic. y. 1. 14. Ch. engchi. 21. i n U. v.

(29) 5. Strategy and Implementation 5.1. SWOT Analysis We intend to enter a highly lucrative market in a rapidly growing economy. We foresee our strengths as the ability to provide custom whole new experience to enjoy sport even more with people of the same interests. Our key personnel will have a wide and thorough knowledge of the areas we intend to take sport lovers, which will go a long way towards penetrating the market. Below are the summarized strengths, weaknesses, opportunities and threats.. 立. 5.1.1. Strength. Passion about sport: the founders have unbelievable passion on sport events. They. ‧ 國. 學. . 政治大. participate and also organize events aggressively. They like to talk about their experiences. ‧. on training and taking part in races with people. To turn this passion into profitable. Nat. sit. y. business only makes them more engaged and willing to devote their time and energy than. . al. n. talents.. er. io. most business person. The passion about sport is also the major criteria for them to acquire. Ch. engchi. i n U. v. Good connection and reputation in sport field: the cofounders, Mr. Wu and Mr. Fu have been organizing sport events for decade. They are well-recognized in the field of extreme sport. Mr. Wu himself has been attending several ultra-marathon and Iron-man races. Most famous one was attending the 2013 International Tour de Taiwan Ultra-marathon race. He was the only Medical Doctor finished the 1,100KM tour within 14 days. As Director and Secretary of Taiwan Marathon Association respectively, Mr. Wu and Mr. Fu’s reputation can easily be recognized. They can also use their reputation to enjoy discount from major brands to sell their products. And the products they recommended are of course very convincing.. 22.

(30) . Good relationship with local partners: One of the keys to success for our business is the relationship with local partners. As a start-up with limited resources, the company has to rely on its partners to deliver services to their customers. The founders are all local people, who has be living in Guanshan for generations. Their good relation with the partners, such as free-lancer tour guides, the physical therapists, yoga instructors and even temp contractors are just like their neighbor. They work not only for money. They work based on trust. They also share the same value to develop local economics, to create jobs and to. 政治大. attract tourist around the Island. With the same shared vision, they can leverage each. 立. other’s strengths. This advantage build high entry barrier and keep outsiders from. ‧ 國. 學. competing in the local market. . Wide knowledge on sport area: Mr. Wu’s medical background is very convincing for. ‧. providing advice on training as there are based on science. They trained themselves with. y. Nat. sit. scientific methods and proved working with their own performance. This attracts people. n. al. er. io. with the same interests to join this community from local and eventually with the words spreading, from outside people.. 5.1.2. Weakness . Ch. engchi. i n U. v. Knowledge on tourism industry: although both Mr. Wu and Mr. Fu have experiences on business – they have pig farming and clinic of their own – to open a B&B is another story. They may need to go through steep learning curve before they can master this business.. . Dependency on key partners: to leverage resources from their partners reduce their own initial investment. But it is a disadvantage to rely on their partners to deliver. It’s also a management overhead to work with various partners. Some of the core competences are not at their own hands. 23.

(31) . Lack of reputation for B&B business: their “brand” on race events and sport field are so strong, it is skeptical to some customers at the beginning. It takes time for the new image to build up.. . Limited financial base compared with major player in the tourism industry. We need to build reputation quick to enjoy the first mover advantage before major players enter this field.. 政治大 Booming Market: statistics shows growing trend in both sport and tourism industry. With 立. 5.1.3. Opportunities . ‧ 國. 學. nature beauty, nice weather and fresh air, Eastern Taiwan is one of the best place to invest for sport and tourism.. Government support: the implementation of Sports Industry Development Act (運動產. ‧. . y. sit. Awareness of healthy and environmental protection: more and more people are health. io. al. er. . Nat. 業發展條例) in 2012, encourages private sector participation in sport industry.. n. conscious. Our image of health, sporty and fun is attractive for customers with health consciousness.. Ch. engchi. i n U. v. 5.1.4. Thread . Copy cats: our business model is relatively easy to imitate. First mover advantage maybe very short after this business model is successfully built.. . Lack of knowledge worker: people is no doubt the most important asset for our business. To attract passionate and knowledgeable talents to stay in Eastern Taiwan is a challenging work.. 24.

(32) 5.2. Marketing Strategy One core element of our strategy will be that of differentiation from our competitors. In terms of marketing we intend to ensure that our name and services are marketed on an extensive basis so that customers are aware of our existence. In price, we intend to offer reasonable and competitive prices in comparison to competition and we need to be able to sustain that. Our service marketing will strive to ensure that we establish long relationships with clients.. 政治大 Initial marketing and training expenses will be relatively high as we seek to become known on 立 5.2.1. Marketing Expenses. ‧ 國. 學. the market and staff get trained in the professional provision of our services. This will be brought about by the development of sales literature and advertising expenses. As our market. ‧. share increases and capital is generated, further marketing programs and the expansion of those. sit. y. Nat. in existence at the time will be undertaken, to ensure market development. However with time. io. n. al. er. these programs will start generating revenue for the business, which we shall in turn reinvest.. 5.2.2. Pricing Strategy. Ch. engchi. i n U. v. We will be competitively priced in relation to the dictates of the market. Due to the introductory nature of our services we intend to implement a penetration pricing strategy which will ensure that potential customers are not frightened away by our prices, up until our services are appreciated and fully operational. However this will dictate that our costs are prudently kept so as to ensure our financial goals come to fruition.. We intend our income structure to match our cost structure, so as to ensure that the salaries we pay to our employees to assure good service are balanced by the cost we charge to the customer.. 25.

(33) 5.2.3. Promotion Strategy This strategy will be based primarily on informing potential customers of the existence of our services and making the right information available to our target customer. The intention will be to highlight the benefit of utilizing our services, which will include: . Access to the knowledge and experiences shared by the community. . Enjoy the companion of people with same interests in sport.. 政治大 that make our services look less than they are. Hence we intend to leverage our presence using 立. In such a market we cannot afford to appear in or produce second-rate material with poor labels. ‧ 國. 學. quality brochures and other sales literature, including promotional material such as pens, complimentary slips and pads. We intend to spread the word about our business through the. sit. y. Nat. 1. Advertising:. ‧. following:. n. al. er. io. This shall be undertaken through trade and industry publications, which are read by tourists, as. i n U. v. well as the local newspapers. A constant look out will be made of any special editions in the. Ch. engchi. local newspapers, which may provide an opportunity for us to advertise our services and business name. Fu’s B&B will also be advertised through professionally done brochures, and other such sales literature, which allow enough detail to be communicated about the services offered by the company. This literature will be mainly targeted at potential clients and placed or made available at strategic points, such as travel agencies. With time we also intend to utilize billboards to advertise ourselves, likewise located at strategic points. Hence we intend to design and put up posters communicating the services we provide located around hotels, lodges,. 26.

(34) airports and other such areas where tourists typically pass by. However in doing so we always intend to obtain the consent of the respective authority.. 2. Personal Selling: Undoubtedly customer solicitation face-to-face will be a powerful form of promotion mainly due to the fact that its flexibility will enable us to match the customer's needs to specific attributes of our services as well as giving concise details of what we have to offer. Another. 政治大 market. As such, potential customers/clients will, to a certain degree, be skeptical towards the 立 important determinant in utilizing personal selling is the fact that we are relatively new on the. ‧ 國. 學. intended services and how they are able to benefit from them.. In cases where the opportunity of obtaining a large order exists it may be necessary for the top. ‧. management to go out personally, especially considering the fact that we are still a relatively. y. Nat. n. al. er. io. relative infancy.. sit. new firm on the market. However this shall be the situation in the majority of cases due to our. 3. Trade shows:. Ch. engchi. i n U. v. These are increasingly becoming important as more firms establish in the country and hence the need to be known. The organization aims to promote itself through attending trade shows and expositions. Not only will these increase awareness of our services and business name, but also enable us to interact with potential clients who may decide to utilize our services.. 4. Internet Marketing: The increasing growth of the Internet as an information source provides an opportunity for ourselves that we may exploit. This is particularly so in view of the increasing dissemination of information over the World Wide Web, as individuals and groups look at obtaining the best deal 27.

(35) possible. More often than not these individuals and groups seek out information over the Internet due to its relatively low cost and ease of use helping to minimize time wasting. However this will require adequate planning so as to ensure that all information on the website is accurate and up-to-date, ensuring we market a professional image.. In all the above we intend to communicate our ability to deliver a good service that will satisfy the customers’ needs. Hence our messages will influence the engagement decision of. 政治大 that we are different from our competitors. All the above promotional tools shall be well 立 prospective customers by emphasizing our customer focus and, persuade prospective clients. ‧ 國. 學. integrated and utilized in tandem so as to maximize their effect.. 5.3. Sales Strategy. ‧. For the short term at least, the selling process will depend on personal selling/networking and. y. Nat. sit. advertising to lure and inform potential customers about the services we offer and the benefits. n. al. er. io. of utilizing our services. Our marketing does not intend to affect the perception of need as much as knowledge and awareness of the service category.. Ch. engchi. 28. i n U. v.

(36) 5.3.1. Sales Forecast Table 4: Twelve-month Sales Forecast Fiscal Year Begins. Jun-14. 12-m onth Sales Forecast. Jun-14 Local tour units sold. Jul-14. Aug-14. Sep-14. Oct-14. Nov-14. Dec-14. Jan-15. Feb-15. Mar-15. Apr-15. May-15. 5. 20. 20. 5. 5. 5. 5. 5. 20. 5. 5. 5. Sale price @ unit. 1,000. 1,000. 1,000. 1,000. 1,000. 1,000. 1,000. 1,000. 1,000. 1,000. 1,000. 1,000. Local tour TOTAL. 5,000. 20,000. 20,000. 5,000. 5,000. 5,000. 5,000. 5,000. 20,000. 5,000. 5,000. 5,000. Race event units sold. 1,500. 2,000. 1,500. 2,000. Sale price @ unit. 1,000. 1,000. 1,000. 1,000. Race event TOTAL. 1,500,000. -. -. 30. 30. 5,000. 5,000. 150,000. 150,000. Training Camp units sold Sale price @ unit. Sport gears units sold Sale price @ unit Sport gears sales TOTAL. Sale price @ unit Coffee & Bar TOTAL Accomm. units sold. 40 2,000. 40,000. 80,000. 100. 200. 200. 立. 40. -. 1,500,000. -. -. 10. 30. 30. 10. 5,000. 5,000. 5,000. 5,000. 150,000. 150,000. 政治大 -. 50,000. -. -. 2,000,000. -. -. 50,000. -. -. 20. 30. 20. 20. 40. 40. 20. 30. 20. 2,000. 2,000. 2,000. 2,000. 2,000. 2,000. 2,000. 2,000. 2,000. 2,000. 80,000. 40,000. 60,000. 40,000. 40,000. 80,000. 80,000. 40,000. 60,000. 40,000. 200. 100. 100. 100. 100. 100. 200. 100. 100. 100. 200. 200. 200. 200. 200. 200. 200. 200. 200. 200. 200. 20,000. 40,000. 40,000. 20,000. 20,000. 20,000. 20,000. 20,000. 40,000. 20,000. 20,000. 20,000. 150. 180. 180. 150. 60. 60. 150. 60. 180. 150. 60. 60. 500. 500. 500. 500. 500. 500. 500. 500. 500. 500. 500. 500. 75,000. 90,000. 90,000. 75,000. 30,000. 30,000. 75,000. 30,000. 90,000. 75,000. 30,000. 30,000. 50. 50. 50. 50. 50. 50. 50. 50. 50. 50. 150. 150. 150. 150. 150. 150. 150. 150. 150. 150. Therapy TOTAL. 7,500. 7,500. 7,500. 7,500. 7,500. 7,500. 7,500. 7,500. 7,500. 7,500. 7,500. 1,647,500. 387,500. 387,500 2,147,500. 172,500. 102,500 1,647,500. 292,500. 387,500 2,147,500. 172,500. 102,500. sit. io. n. al. 7,500. 7,000,000. 700,000 340. 680,000 1,500. 300,000 1,440. 720,000 600. 90,000. 9,595,000. er. Monthly totals: All Categories. y. 50 150. Nat. 50. 150. Theraphy units sold. 105,000. 140. Sale price @ unit. Accom m odation TOTAL. 105. 7,000. ‧. Sale price @ unit. 20 2,000. -. 學. Coffee & Bar units sold. -. ‧ 國. Training cam p TOTAL. 2,000,000. Annual Totals. Ch. i n U. Sales forecast are estimated based on assumptions below:. engchi. v. Local Tour 5 people a month in low season and up to 20 people on peak seasons during summer and Chinese New Year vacation. Average charge per person is 1 thousand NT dollars. Half of the charge will be paid to contracted tour guide for their services. 40% margin is expected.. Race Events 4 big race events will be organized in partnership with local government. According to past experiences, 1,500 to 2,000 participants will register the event at an average of two thousand. 29.

(37) registration fee per person. Sponsorship incomes are not calculated as revenue. In average, 70% will be paid for logistics, support personnel. 25% margin is a reasonable estimate.. Training camp 6 training programs are provided for serious sport participants, including young athletes, people who want to improve their race performance, prevent injury and learn latest knowledge. Professional coaches and assistants from Taitung University, physicians and nutritionists from. 政治大 60% tuition will be paid for personnel. 20% for meals and other materials. A margin at 20% is 立. local hospital (慈濟) and professional athletes will be hired to provide guided training program.. ‧ 國. 學. expected from the camp.. Sales of sport gears. ‧. In normal time, 20 items sold in average at the price of 2 thousands each, including shoes, sport. y. Nat. sit. wears and training equipment. During peak months when there are races and training camp,. n. al. er. io. sales increase is expected to raise from 50% to double of normal time. 20% to 30% margins for each item sold, depending on different brands.. Ch. engchi. i n U. v. Coffee and bar Sales of coffee and drinks is not main source of revenue. However, it is important for building of the community, for people to chat, exchange information and share interests. 15% margin from coffee and drink sales is expected, not include real estimate cost.. Accommodation Around 30 bed in total, 10% occupy rate during low season, 25% to 30% in peak season contribute to the 720K estimated sales. 40% running cost except cost of real estate is for accommodation. 30.

(38) Workshop and Therapy This category includes non-medical pain release, injury curing treatment, yoga class and special educational workshops and seminars. To utilize the facilities, local people are target customers with special discount. Trainer and physician from hospital, certified yoga instructors and trained therapists are brought in to provide satisfied services. Most of the profits goes to those longterm contractors. Fu’s B&B only serves as a platform of sport-related activities of this kind. Only a minimum of 10% handling fee will be charged by Fu’s B&B.. 立. 5.4. Strategic Alliances. 政治大. ‧ 國. 學. In today's competitive environment it is becoming increasingly essential for organizations to concentrate on their core activities so as to gain and maintain a competitive advantage. This. ‧. brings out the advantage of undertaking strategic alliances with organizations that the firm may. sit. y. Nat. benefit from and vice versa. We intend to establish strong partnerships with local freelancers,. io. regular stream of customers from various establishments.. n. al. Ch. engchi. er. travel agents and other local businesses. These alliances will assist in ensuring that we obtain a. i n U. v. At this writing, strategic alliances with several companies are possibilities, given the content of existing interest and discussions. However ultimately it is the quality of our services and the skill and experience of the staff that will attract customers. During the start-up phase word-ofmouth from satisfied customers will play a large part in increasing awareness and gaining exposure for our services.. 5.5. Corporate Social Responsibilities Fu’s B&B recognizes the fact that as it is involved in the tourism sector of the overall economy there is need to be involved in a wide range of social responsibility engagement programs so as. 31.

(39) to invest back into the community in which we operate. We believe that through our social responsibility programs we can indeed assist in improving people’s lives. We believe that if we are to contribute to development in a sustainable way, we need to support numerous projects.. However, before we commit ourselves to projects we intend to ensure that they will be beneficial to the community, particularly in the long term. We know that we cannot address all the development needs of our society. Where we can, we assist and sometimes may form. 政治大. partnerships so as to increase capacity.. 立. One of the ways the company intends to be involved in corporate social responsibility is through. ‧ 國. 學. organizing cleaning campaigns with various communities. Basically this will involve briefing the community on the advantages of having a clean environment, now and in future. In order. ‧. to entice the community to get involved in these campaigns, as well as to increase awareness. y. Nat. sit. about our business and services we intend to give out T-shirts and caps with our company name.. al. n. citizen.. er. io. These campaigns will also assist in us being perceived and appreciated as a good corporate. Ch. engchi. 32. i n U. v.

(40) 6. Management Summary 6.1. Organizational Structure The business will take sole proprietor as legal form of ownership. As a small start-up, we intend to keep the organization flat. Temporary employees will be filled according to the sales volume. Students from National Guan-Shan Vocational Senior High School are the best candidates for part-time workers. The school is only 2KM away from the B&B venue. They have students from Department of Restaurant Management and Business Administration. To work in the B&B,. 治政 students gain practical experiences while the company enjoys 大 a good source of talents. 立 ‧ 國. 學. 6.2. Management Team. The key positions are taken by the co-founder and their close friends. They are all sport. ‧. enthusiasts and share the similar values to promote sport and local development.. n Marketing Director Mr. Wu. er. io. sit. y. Nat. al. CEO i v n Ch Mr. Fu U engchi Operation Director Mr. Liu. HR Director Dante Chen. Figure 10: Initial Organization Chart Mr. Fu is the most key person of the company and will take on the role of CEO. He possesses easy-going personality and always network people with ease. In his previous experiences on 33.

(41) race event organization, he built very good relationship with key sport brands. They will be the company’s key suppliers of sport gears. His creative and sometime wild ideas are good for the business development.. Mr. Wu is a medical doctor. He owns a clinic in Guanshan and current still practices medicine on regular basis that he can only devote some time to run the business. Currently, he is the Director of Taiwan Marathon Association. He was the 2nd Director of Taitung Iron-man. 政治大 in sport events. With his strategic thinking mind and good network in the local public and 立. Association. He has been participating sport event since young and still actively participating. ‧ 國. 學. private sector, he will be taking the role of Marketing Director.. Mr. Liu is a retired police officer. Originally from Hualien, he had served in Guanshan for 25. ‧. years before his retirement at the age of only 50 in 2012. He has family here and Guanshan has. y. Nat. sit. long become his second home town. Now worked part-time as tour guide and volunteer in. n. al. er. io. Guanshan Police Historical Museum, he spends his leisure time in sport activities. That’s what. i n U. v. he got to be close with Mr. Wu and Mr. Fu. With his strong discipline and ability to focus on. Ch. engchi. details, he will be responsible for the daily operation, including taking orders and servicing customers. Procurement will also fall under his responsibility.. Dante Chen, candidate of IMBA, is working in an international insurance company as department head of IT infrastructure. He grew up in Taitung and had his education before high school there. After 25 years away from his hometown, he will be joining the co-founders to have his own business that is meaningful to him. His expertise in IT, project management and business administration will be beneficial to the start-up business. As the new business will. 34.

(42) heavily reply on temp workers, to recruit the right talents and train them effectively will be the main focus for Dante as Human Resource Director.. Emily Su, wife of Dante Chen, is now working in Executive Yuan. As a licensed CPA holder, she will be working part-time as accountant at initial phase. Table 5: Summary of Management Roles and Responsibilities Roles. Name. Responsibilities. CEO. Mr. Fu. 立. . Marketing. . Public Relationship. . Service delivery. . Order taking. . Procurement. Mr. Dante. . Recruiting. Chen. . Training. n. al. Ch. e n Payroll gchi. y. sit er. Mr. Liu. io. HR Director. Business Development. Nat. Director. . Mr. Wu. ‧. Operation. Financial management. ‧ 國. Director. . 學. Marketing.  Strategic Decision-making 治 development 政 Business 大. i n U. v. 6.3. Personnel Plan The annual personnel estimates are included here. Given the relatively lower average wage in Taitung, we believe this plan is a good compromise between fairness and competitiveness, and meets the commitments of our mission and business objectives.. We intend to compensate our personnel well, so as to retain their invaluable expertise and to ensure job satisfaction and enrichment through delegation of authority. Our compensation will. 35.

(43) include health care, generous profit sharing, plus a minimum of two weeks’ vacation. Fu’s B&B recognizes that our employees contribute fundamentally to the company's long-term prosperity, acknowledging our obligation to pay them competitively. We intend to enhance our capacity to attract and retain people of quality through competitive packages. For cost and sustainability consideration, the 4 directors, also co-founders of the business are not going to be paid in the first year.. 政治大. Table 6: Four Year Personnel Estimates. Cleaner. Total. 4. $2,400. $300. -. $0. 1. $300. $300. -. $0. 1. $300. $300. -. $0. -. $0. $240. -. $0. -. $0. $360. 1. $360. 1. $360. $180. 1. $180. 1. $180. $180. -. $0. -. $0. -. $0. -. $0. $300. al. n. Mechanic. $0. io. Nightwatchman. 4. Nat. Sales & Marketing. H/C. Year 4. Salary. H/C. Salary. 4. $2,400. 4. $2,400. 1. $300. 1. $300. 1. $300. 1. $300. $300. 1. $300. $0. 1. $240. 2. $720. 2. $720. 1. $180. 1. $180. $0. 1. $180. $300. 1. $300. 1. -. y. Driver. Salary. ‧. Tour Guide. H/C. -. er. Accountant. Salary. $600. ‧ 國. Personal Assistant. H/C. Year 3. 學. Directors. 立. Year 2. sit. Annual salary estimate. Year 1. v 6 $ 540 8 $ 3,540 i n Ch engchi U. 1. 11. $ 4,500. 13. $ 4,920. 6.4. Training In-house training shall be continuous so that we are continuously up-to-date in meeting customer requirements. With time we also intend to undertake regular external training particularly following any new developments in the market. This will ensure we are implementing the latest techniques and aware of customers’ expectations. By setting our standards against industry benchmarks we will be able to ensure a regular flow of customers as they are continually referred to us.. 36.

(44) Internal training will not only include service and technical aspects, but also expand to give much greater knowledge of customers, market trends, services, new technology aids, and time management amongst other such variables. Marketing sessions in particular will be a regular occurrence, as this will ensure that our personnel continuously portray a positive image of the business, assisting in bringing in more business.. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. 37. i n U. v.

(45) 7. Financial Projection The financial plan shall be essential if we are to meet our objectives. The intention is to finance growth through cash flow and equity. Some of the more important underlying assumptions are: . We assume a strong economy, without major recession.. . We assume, of course, that there are no unforeseen changes in economic policy to make our service immediately obsolete or unwanted.. 政治大. 7.1. Twelve Month Profit and Loss Projection. 立. For the first year, cofounders are not going to be paid.. . The facilities owned by Mr. Fu., for the first year, rental fee is discounted at 50%.. . Estimated profit is 16% at first year. 1.5 million. ‧. ‧ 國. 學. . y. Nat. 7.2. Projected Cash Flow. er. io. sit. The cash flow indicates that. n. al 7.3. Four year Profit Projection Ch. engchi. i n U. v. . 10% sales growth for 2nd year, 25% growth for 3rd and 4th year. . Directors begin to get pay from 2nd year @600K a year. . Expense control to less than 10% growth year over year. . Tax assumption: 15%. 38.

(46) 0.2. 5,000. 2.9. 5,000. 93.1. 0. 0.0. 0. %. 5,000. 0.0 2,000,000. YE AR LY. 5.2. %. y-1 5. 0. Ma. 20,000. 0.0. %. 1.7. 0. Ap r -1 5. 5,000. %. 0.3 91.0. r-1 5. 5,000. 0.0 1,500,000. Ma. 4 4.9. %. 0. Fe b-1 5. 5,000. 0.0. %. 2.9. 0. Ja n -1 5. 5,000. %. 0.2 93.1. De c -1. 5,000. 0.0 2,000,000. %. 5.2. %. No v -1 4. 14. 0. Oc t-. 20,000. 0.0. %. 5.2. 0. p-1 4. 20,000. Se. 0.3 91.0. %. %. Au g-1 4. Ju l-1 4. 5,000 1,500,000. B/A %. Ju n-1 4. Table 7: Twelve Month Profit and Loss Projection. Revenue (Sales) Local tour Race event. 105,000. 1.1. 0.0 7,000,000. 73.0. 0. 0.0. 150,000. 38.7. 150,000. 38.7. 0. 0.0. 50,000. 29.0. 0. 0.0. 0. 0.0. 150,000. 51.3. 150,000. 38.7. 0. 0.0. 50,000. 29.0. 0. 0.0. 700,000. 7.3. Sport gears. 40,000. 2.4. 80,000. 20.6. 80,000. 20.6. 40,000. 1.9. 60,000. 34.8. 40,000. 39.0. 40,000. 2.4. 80,000. 27.4. 80,000. 20.6. 40,000. 1.9. 60,000. 34.8. 40,000. 39.0. 680,000. 7.1. Coffee & Bar. 20,000. 1.2. 40,000. 10.3. 40,000. 10.3. 20,000. 0.9. 20,000. 11.6. 20,000. 19.5. 20,000. 1.2. 20,000. 6.8. 40,000. 10.3. 20,000. 0.9. 20,000. 11.6. 20,000. 19.5. 300,000. 3.1. Accomm.. 75,000. 4.6. 90,000. 23.2. 90,000. 23.2. 75,000. 3.5. 30,000. 17.4. 30,000. 29.3. 75,000. 4.6. 30,000. 10.3. 90,000. 23.2. 75,000. 3.5. 30,000. 17.4. 30,000. 29.3. 720,000. 7.5. Theraphy. 7,500. 0.5. 7,500. 1.9. 7,500. 1.9. 7,500. 0.3. 7,500. 4.3. 7,500. 7.3. 7,500. 0.5. 7,500. 2.6. 7,500. 1.9. 7,500. 0.3. 7,500. 4.3. 7,500. 7.3. 90,000. 0.9. 387,500 100.0. 387,500 100.0 2,147,500 100.0. Cost of Sales 60.0. 12,000. 0. -. 0. 0. -. 120,000. 80.0. 120,000. 80.0. Sport gears. 30,000. 75.0. 60,000. 75.0. 60,000. 75.0. Coffee & Bar. 16,000. 80.0. 32,000. 80.0. 32,000. 80.0. Accomm.. 30,000. 40.0. 36,000. 40.0. 36,000. 40.0. Theraphy. 6,750. 90.0. 6,750. 90.0. 6,750. 90.0. 1,135,750. 68.9. 266,750. 68.8. 511,750. 31.1. 120,750. Salary expenses. 45,000. 2.7. Payroll expenses. 4,500. 0.3. 3,000. 0.2. Training Camp. Total Cost of Sales. 3,000. 60.0. 3,000. 3,000. 60.0. 70.0. 0. -. 0. - 1,050,000. 70.0. 0. -. 40,000. 80.0. 0. -. 0. 30,000. 75.0. 45,000. 75.0. 30,000. 75.0. 16,000. 80.0. 16,000. 80.0. 16,000. 30,000. 40.0. 12,000. 40.0. 6,750. 90.0. 6,750. 266,750. 68.8 1,485,750. 69.2. 31.2. 120,750. 31.2. 661,750. 45,000. 11.6. 45,000. 11.6. 4,500. 1.2. 4,500. 1.2. 3,000. 0.8. 3,000. 0.8. 3,000. Expenses. 60.0. 12,000. 60.0. 60.0. 3,000. 60.0. 3,000. 63,000. 60.0. 70.0. 0. -. 0. - 4,900,000. 70.0. 0. -. 40,000. 80.0. 0. -. 560,000. 80.0. 75.0. 30,000. 75.0. 45,000. 75.0. 30,000. 75.0. 510,000. 75.0. 32,000. 80.0. 16,000. 80.0. 16,000. 80.0. 16,000. 80.0. 240,000. 80.0. 40.0. 36,000. 40.0. 30,000. 40.0. 12,000. 40.0. 12,000. 40.0. 288,000. 40.0. 6,750. 90.0. 6,750. 90.0. 6,750. 90.0. 6,750. 90.0. 6,750. 90.0. 81,000. 90.0. 68.9. 217,750. 74.4. 266,750. 68.8 1,485,750. 69.2. 122,750. 71.2. 67,750. 66.1 6,642,000. 69.2. 511,750. 31.1. 74,750. 25.6. 120,750. 31.2. 661,750. 30.8. 49,750. 28.8. 34,750. 33.9 2,953,000. 30.8. 43.9. 45,000. 2.7. 45,000. 4.4. 4,500. 0.3. 4,500. 3,000. 2.9. 3,000. 0.2. 3,000. 5,000. 4.9. 5,000. 80.0. 120,000. 80.0. 30,000. 75.0. 60,000. 75.0. 60,000. 80.0. 16,000. 80.0. 16,000. 80.0. 12,000. 40.0. 30,000. 40.0. 12,000. 90.0. 6,750. 90.0. 6,750. 90.0. 122,750. 71.2. 67,750. 66.1 1,135,750. 30.8. 49,750. 28.8. 34,750. 33.9. 45,000. 2.1. 45,000. 26.1. 45,000. 4,500. 0.2. 4,500. 2.6. 4,500. 3,000. 1.7. 5,000. al. 102,500 100.0 9,595,000 100.0. 3,000. 120,000. 0.1. 172,500 100.0. - 1,400,000. -. 60.0. 15.4. 45,000. 11.6. 45,000. 2.1. 45,000. 26.1. 45,000. 43.9. 540,000. 5.6. 1.5. 4,500. 1.2. 4,500. 0.2. 4,500. 2.6. 4,500. 4.4. 54,000. 0.6. 3,000. 0.8. 3,000. 0.1. 3,000. 1.7. 3,000. 2.9. 36,000. 0.4. 0.3. v. 1.0. 5,000. 1.7. 5,000. 1.3. 5,000. 0.2. 5,000. 2.9. 5,000. 4.9. 60,000. 0.6. 10,000. 9.8. 10,000. 0.6. 10,000. 3.4. 10,000. 2.6. 10,000. 0.5. 10,000. 5.8. 10,000. 9.8. 120,000. 1.3. 5,000. 4.9. 5,000. 0.3. 5,000. 1.7. 5,000. 1.3. 5,000. 0.2. 5,000. 2.9. 5,000. 4.9. 60,000. 0.6. 3,000. 2.9. 3,000. 0.2. 3,000. 1.0. 3,000. 0.8. 3,000. 0.1. 3,000. 1.7. 3,000. 2.9. 36,000. 0.4. 2.9. 5,000. 4.9. 5,000. 0.3. 5,000. 1.7. 5,000. 1.3. 5,000. 0.2. 5,000. 2.9. 5,000. 4.9. 60,000. 0.6. 3,000. 1.7. 3,000. 2.9. 3,000. 0.2. 3,000. 1.0. 3,000. 0.8. 3,000. 0.1. 3,000. 1.7. 3,000. 2.9. 36,000. 0.4. 0.2. 5,000. 2.9. 5,000. 4.9. 5,000. 0.3. 5,000. 1.7. 5,000. 1.3. 5,000. 0.2. 5,000. 2.9. 5,000. 4.9. 60,000. 0.6. 5,000. 0.2. 5,000. 2.9. 5,000. 4.9. 5,000. 0.3. 5,000. 1.7. 5,000. 1.3. 5,000. 0.2. 5,000. 2.9. 5,000. 4.9. 60,000. 0.6. 1.3. 5,000. 0.2. 5,000. 2.9. 5,000. 4.9. 5,000. 0.3. 5,000. 1.7. 5,000. 1.3. 5,000. 0.2. 5,000. 2.9. 5,000. 4.9. 60,000. 0.6. 5,000. 1.3. 5,000. 0.2. 5,000. 2.9. 5,000. 4.9. 5,000. 0.3. 5,000. 1.7. 5,000. 1.3. 5,000. 0.2. 5,000. 2.9. 5,000. 4.9. 60,000. 0.6. 2.6. 10,000. 2.6. 10,000. 0.5. 10,000. 5.8. 10,000. 9.8. 10,000. 0.6. 10,000. 3.4. 10,000. 2.6. 10,000. 0.5. 10,000. 5.8. 10,000. 9.8. 120,000. 1.3. 5,000. 1.3. 5,000. 1.3. 5,000. 0.2. 5,000. 2.9. 5,000. 4.9. 5,000. 0.3. 5,000. 1.7. 5,000. 1.3. 5,000. 0.2. 5,000. 2.9. 5,000. 4.9. 60,000. 0.6. 7.2. 118,500. 30.6. 118,500. 30.6. 118,500. 5.5. 118,500. 68.7. 118,500 115.6. 118,500. 7.2. 118,500. 40.5. 118,500. 30.6. 118,500. 5.5. 118,500. 68.7. 118,500 115.6 1,422,000. 14.8. 23.9. 2,250. 0.6. 2,250. 0.6. 543,250. 25.3. -68,750 -39.9. -83,750 -81.7. 393,250. 23.9. -43,750 -15.0. 2,250. 0.6. 543,250. 25.3. -68,750 -39.9. -83,750 -81.7 1,531,000. 16.0. 0.3. 5,000. 1.3. 5,000. 1.3. 5,000. 0.2. 0.6. 10,000. 2.6. 10,000. 2.6. 10,000. 0.5. Car, delivery and travel. 5,000. 0.3. 5,000. 1.3. 5,000. 1.3. 5,000. 0.2. 5,000. Ch. Accounting and legal. 3,000. 0.2. 3,000. 0.8. 3,000. 0.8. 3,000. 0.1. 3,000. 1.7. Rent. 5,000. 0.3. 5,000. 1.3. 5,000. 1.3. 5,000. 0.2. 5,000. Telephone. 3,000. 0.2. 3,000. 0.8. 3,000. 0.8. 3,000. 0.1. Utilities. 5,000. 0.3. 5,000. 1.3. 5,000. 1.3. 5,000. Insurance. 5,000. 0.3. 5,000. 1.3. 5,000. 1.3. Taxes (real estate, etc.). 5,000. 0.3. 5,000. 1.3. 5,000. Interest. 5,000. 0.3. 5,000. 1.3. 10,000. 0.6. 10,000. 5,000. 0.3. Total Expenses. 118,500. Net Profit. 393,250. Misc. (unspecified). 60.0. 0. 5,000. Depreciation. 3,000. -. 10,000. Advertising. 60.0. 0. n. Supplies (office and operating) Repairs and maintenance. 3,000. - 1,400,000. Nat. Gross Profit. 60.0. ‧ 國. 12,000. 70.0. 387,500 100.0 2,147,500 100.0. ‧. 60.0. 292,500 100.0. 學. 3,000 1,050,000. Race event. 102,500 100.0 1,647,500 100.0. io. Local tour. 立. 172,500 100.0. y. 1,647,500 100.0. sit. Total Revenue (Sales). 政治大. er. Training Camp. 4.9. 10,000. 2.9 5.8 2.9. engchi. 39. i n U.