A Virtual Business Design

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Section 1: Introduction
This report aims to use industry statistics, theory, and literature of management to outline key aspects of the boutique hotel chain, Zahra. It will specifically look at Zahra‟s mission statement and goals based on an analysis of the country, industry, and firm environment; as well a reflection on corporate citizenship, and company ethics. Additionally, this report will look at how senior managers of Zahra will work together to resolve the problems that arise when running the business. Finally this report will briefly conclude, reflecting on how successful the decision making process was and what the firm recommends for the future. Readers of this report should assume its part of a five year plan, where each team member has a vital role in the organisation (Appendix A). Outline of Business and Service

Zahra hotels are a chain of Boutique Hotels located in remote coastal regions around Australia. They primarily target the affluent international market, as statistics show that this market will grow by 3.2 million people of over the next nine years (Tourism Australia 2008). In the low season Zahra aim to target the domestic market however it is not a primary market as Tourism Australia (2008) has found that growth in this area of tourism has been relatively flat over the past twenty years. Building on our core strengths (see Appendix C- SWOT) our competitive advantage is that Zahra provides more than just a hotel stay; we provide an experience like no other. Refer to Appendix B for further description of the firm. Mission Statement

According to the literature, a mission statement should outline “who we are, what we do, and why we are here” (Thompson, Stickland and Gamble 2005, 20). It acts as a key indicator of the stakeholder‟s wants and needs and is used so a firm can gain their 2

continued support (Hill, Jones and Galvin 2004, 43; Abrahams 1999, 13). Internally it defines a common purpose and nurtures a sense of loyalty and community, and externally it gives insight to organisational values and future direction (Bartol et al 2008; Nash 1988). The mission and vision of Zahra have been created with the situation analysis in mind; accordingly the firm has exploited their strengths of being a deluxe, unique hotel, which is all about the experience. Thus Zahra’s mission is: “Located in premium beach destinations, we are a deluxe, intimate hotel, whose devoted staff are committed to providing guests with a unique hotel experience.” In line with Microsoft‟s inspirational vision, “a computer on every desk of every home” Zahra’s vision is (Abrahams, 1999). “An experience to remember.”

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Section 2:Situational Analysis
Zahra has undertaken SWOT, PESTLE and Porter‟s 5 forces analyses (see Appendix C) to gain an understanding of the internal and external environment (Stapleton and Thomas 1998; Bartol et al 2008). Through both the PESTLE and Porters 5 Forces analysis the firm was able to enhance their understanding of the country and hotel industry. Consequently, Zahra could determine a competitive advantage and create a firm which exploits opportunities like the growing international market. Furthermore, remote coastal regions were chosen as the ideal location because they offered a lesser threat of competition and new entrants to the market (see Appendix C- Porters 5 Forces). A SWOT analysis allowed management to find the strengths and weaknesses of Zahra, which have been utilised in the company mission statement, vision and goals. Zahra’s most advantageous core strengths include its strong competitive advantage of providing a service like no other, together with extras that exceed consumer expectations. 4

Section 3:Organisational Goals
Bartol et al (2008) argue that “setting goals and developing plans leads to goal attainment and ultimately to organisational efficiency and effectiveness”. Thus Zahra’s mission statement and SWOT analysis link directly to their goals; addressing strengths and weaknesses,...
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