NEW VENTURE CREATION
MACSPORRAN & MACPHIE
TABLE OF CONTENT
Page Executive Summary Overview 1.0 Industry 2.0 Market Analysis 3.0 Competitive Advantages 3.1 Proprietary Advantage 3.2 Strategic Differentiation 4.0 Marketing Plan 4.1 Products 4.2 Price 4.3 Promotion 4.4 Place 5.0 Key Persons 6.0 Organisational Plan 7.0 Operation 8.0 Financials 9.0 Harvest Issue 9.0 Conclusion 10.0 References 11.0 Group Key Learning Points 1 2 3 3 4 4 5 5 5 6 6 7 7 9 11 12 15 16 17 18
One of the cornerstones of starting a business is a good business plan that will attract prospective investors to venture into the business. The business plan should cover all aspects of the proposed business from market analysis, products, marketing plan, operations, organization and, most importantly, financial forecast. The purpose of this review is to analyse the Business Plan of Walking Peru in its effort to tap into Peru‟s flourishing tourism industry where opportunities can be created through environmentally friendly activities. The creative idea from Walking Peru will open a great opportunity for tourists to see Peru from a different viewpoint, enjoying nature while breaking away from traditional moulds. The review will comment on whether the Business Plan for Walking Peru is feasible and whether the Plan contains all the information needed to lure investors into venturing into the business. Suggestions have been made where there are weaknesses to the Plan.
Peru has been attracting thousands of tourists every year to its excellent geographical, archaeological, art and cultural heritage. Its outstanding infrastructure, world class airports and entertainment venues attract throngs of adventure seekers and tourists who flock to Peru to have a taste of its unique tourism attractions, which ranges from nature to culture. To take advantage of the growing tourism industry, Walking Peru was started in August 1997 using a concept developed at the Graduate MBA program at the Lima Graduate School of Business (ESAN). The business vision is to tap into recreational tourism thereby creating an option for tourists to experience Peru through environmentally friendly activities which focuses on passive recreational sports that require no knowledge or training. The uniqueness provided by Walking Peru will have tourists viewing Peru in a different way. . Its first product line will allow tourists to fly through the view having a bird‟s perspective and yet in a way that is natural, safe and fun. The idea is fascinating compared to the conservative way of touring a city in groups or just travelling from one place to another by land. Market research has been conducted and, in line with the vision of the company, Walking Peru will have five business lines to be implemented tentatively to the schedule below.
Peru is one of the most attractive tourism destinations in the world. It‟s stable political and economic landscapes, added with favourable investment policies, makes it an attractive investors target. Tourism in Peru is growing at 29% annually and this figure is only bettered by the telecommunications industry. Domestic and foreign tourists flow is increasing at a promising rate as shown in the table below: Tourist flow 1994 1995 1996 1997 1998 1999 International 386,000 485,000 668,000 861,000 1,110,000 1,420,000 Domestic 1,007,000 1,347,000 1,855,000 2,391,000 3,055,000 3,944,000
In Peru, tourism growth in recent years has been focused on archaeological, historical and adventure tourism. Recreational tourism in these recognized archaeological, historical and adventure tourism is still an untapped business opportunity served by independent individual suppliers. None of these independent suppliers operate as organized companies. Critique: Based on the figures presented, the tourism industry looks like a favourable sector for investment as it is on the rise and the growth...
References: Sahlman, W.A. (1997) “How to Write a Great Business Plan”, Harvard Business Review, July – August 1997 Gerber, M.E. (2005) “E-Myth Mastery”, HarperCollins Publishers Inc. Scottish Enterprise Foundation & Employment Department Group Training Agency “Good Ideas Don’t Come Out of the Blues – You Have to Work at Them”
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