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Importance of Investment Plan - Essay Example

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The paper "Importance of Investment Plan" highlights that the implementation plan is significant in the generation of ideas for new services in hotels and motels to generate more profit than before. In addition, the plan is supposed to enhance the hotel's image globally. …
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Importance of Investment Plan
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Extract of sample "Importance of Investment Plan"

? Implementation Brief Task Introduction An investment plan is a future process where a company plans the milestones they want and hope to achieve (Davidson, 2003, p 1). This implementation plan is majorly based on the financial department of the Eagles Nest Inc. Eagle’s Nest Inc is a chain of hotels and motels across the globe. They have over twenty there outlets worldwide which means they have a brand reputation to keep and profits to make to maintain the hotels. The implementation plan is based on their two main ideas of increasing profits that is creating a fitness centre where clients who stay in the hotel can exercise. Secondly, they want to organize some night events to encourage clients to stay in the hotels, enjoy and come back easily and frequently. This article examines the financial implementation plan of Eagles Nest Inc. Overview of the Investment Idea being implemented This implementation plan is for the Eagles Nest Inc. the hotel has a chain of twenty-seven, three stars hotels, and motels worldwide. The implementation plan is significant in the generation of ideas for new services in the hotels and motels to generate more profit than before. In addition, the plan is supposed to enhance the hotels image globally. New services that could increase sales include night events and fitness room. Therefore, this implementation plan is majorly for the finance department. Impacts on the Financial Department The financial department is the most affected since news services means more expenditure in the financial department. Firstly, new services like fitness room require more staff that includes trainers, cleaners, nurses, accountants, and secretaries. This is an additional expense to the company although it ensures that many customers’ com and stay in the eagles nest hotels. Equipments like gym weights, air conditioning, and electricity will be much costly. Secondly, new services like might events use finances in the organization and hosting of the night events at the hotel. These night activities enhance stays and enjoyment of clients but they take a lot of time and money to organize (Ripinsky, & Williams, 2008, p 182). A single night event can cost up to ten million dollars to be successful. This is the catering, refreshments, entertainers, and space creations like stages and outdoor furnishings. Finally, the investment idea will affect negatively the financial department in that commodities like water, electricity, and cleaning detergents will be used more often and in large quantities than before. The investment idea ensures more clients hence more activities and more expenses in the hotels and motels globally. Time Plan Creation of job positions 1 week (duration) Start week 2 Lasts for 1 week No slack Advertisements of job vacancies 1 month Week 10 Week 13 4 days slack Short listing of candidates 1 week Week 14 Week 15 3 days slack First interviews 2 weeks Week 16 Week 17 3 days slack Second interviews 2 weeks Week 18 Week 19 2 days slack Short listing of successful candidates 1 week Week 21 Week 22 5 days slack orientation 1 week Week 30 Week 31 2 days slack Job placement 2 weeks Week 35 Week 37 9 days slack Links and Dependencies Departments must depend on each other for the improvement and implementation of the investment idea. Dependant on Precursor to Creation of job positions Number of available staff. Number of available vacancies. Staff to create the job descriptions. -advertisement placements. -Financial position of the company. Advertisements of job vacancies --job vacancies available. -the media outlet used for advertisement. -short listing of candidates. Short listing of candidates -applications received. -First interviews. -Second interviews. First interviews - Qualifications of applicants. -second interviews Second interviews -Qualifications of applicants. -Interviewers training. -Short listing of successful candidates. Short listing of successful candidates -arrival of short listed candidates. -Competency of the short listed candidates. -orientation. -staff appointments. Orientation -knowledge ability of staff. -job placement. -Promotion review Job placement -competency of staff. -staff promotion. Milestones Milestones are achievements that are overcome and achieved at the set time which mark a great step for a company. Eagle’s nest Inc will have to achieve the following milestones. Milestone Date Responsibility Creation of a fitness centre January 2014 Program manager Night events March 2014 Facilities manager Property acquisition June 2014 Operations director merger March 2015 Design team leader Joint ventures December 2014 Marketing director Risk Plan Risks pose a threat to impending milestones (International Finance Corporation, & Mcclure, 2003, p 11). They are listed according to priority in that A, B and C mean high, moderate and low. Risk Priority Pre-Warning Signs Actions To Avoid The Risk Action To Mitigate The Risk Lack of funds to build the fitness centre. A Low profit levels in the eagles nest hotels Other services boost to enhance profit levels. Thorough use of the fitness centre to ensure high profits. High costs of fitness centre equipments. A Lack of bargains at fitness equipment stores. Prior arrangements of purchases at manufacturers. Maintenance of the fitness equipments. Low ticket sales for the night events C Bad weather discouraging clients to attend night events. Proper date setting for the events. Cheap ticket sales on bad weather days. Low turnout for the night events. A Bad weather and high traffic jams. Proper timing of events. Starting events early and finishing at a good time. High competition in the acquisition of property thus high prices. B Strategic positions of acquisition properties. Early bookings and closure. Formation of friendly links with the company concerned. Resource Requirements Resource Date Cost Funds for all departments expenditure Week 1 $ 30,000,000 Legal assistance Week 5 $ 1,000,000 Information on mergers, joint ventures and acquisitions Week 20 $ 200,000 staff Week 4 $ 2,000,000 Systems- IT and web Week 3 $ 5,000,000 premises $ 3,000,000 Financial Plan The estimated budget at the eagles nest is $50million. The implementation plan is to generate new services in the Eagles Nest hotels and motels to improve brand image and boost profits. The new services come with different cost and expense, as services of different personnel are needed (Mckinney, 2004, p 1). The money should be given out in different weeks. Staffing The new services like fitness room will require a large number of staff at the hotels. The number of extended employees can be around two thousand additional employees. Salary Employees at eagles nest are paid $2000 each. Therefore, for the two thousand employees the total will be around four million. This is the average pay, as different job levels are paid differently. Gym trainers 200 $2000 week 1 Assistant trainers 200 $1000 Accountants 150 $3000 week 3 cleaners 250 $1500 week 1 secretaries 300 $1000 week 2 Assistant secretaries 350 $800 First aid nurses 250 $2500 week 5 Security personnel 300 $1000 Mergers This is the integrating of two companies together to have the same goal and work under the same management (Cassiman, 2006, p 1). Mergers cost money because of shared profits thus each company has to part with equal or an agreed amount. Eagles nest has parted with ten million on mergers with three different hotels, which are Hilton, grand regency, and the intercontinental. Acquisitions This is the taking over of an old or bankrupt investment and making it one with the main company in form of innovation (Cassiman, 2006, p 2). As part of the investment plan, eagles nest has acquired two premises and one fallen company. The renovation of the buildings and money for acquisition pays off the debts and the rents. Eagles nest will use twenty million to acquire these premises. Joint ventures Joint ventures are those events that are hosted by more than one company. (Glover & Wasserman, 2003, p 2) Eagles nest plan of new services include doing joint ventures with other leading companies. These ventures include night events and promotion shows. These require a lot of money and Eagles Nest Inc will use sixteen million dollars for these events but they are worthy investments (Glover & Wasserman, 2003, p 9). Staffing=2000 workers Salary= $4,000,000 Mergers=$10,000,000 Acquisitions=$20,000,000 Joint ventures=$16,000,000 Conclusion Implementation plan is a process that forecasts a company’s goals and mission. Eagles nest is a hotel, which seeks to increase their profits by implementing a plan for the hotels (Ripinsky, & Williams, 2008, 278). The plans are to create a fitness centre to ensure clients stay longer at the hotels since they have everything they need. They also want to implement the idea of a night events, which are to ensure that clients attend in big numbers, and not get bored while on stay in the hotel. The article examined the financial part of the investment idea. The financial department was all about creating a fitness centre, organizing night events, acquisition of property, mergers, and joint ventures. All these affected in a negative way for the financial department since they all required a lot of money. Even though they are beneficial to the company in boosting profits, they were proving to be too much for the financial departments of eagles nest hotel, which had not had good profits in the recent past. However, the hotel implemented the ideas since they had to increase their profit and enhance their brand reputation since it is a leading three star hotel. Therefore, they had to increase staff members, they created departments like the fitness centre, and they organized joint ventures and night events. Appendix The investment implementation plan was to increase client base and increase profit levels of eagles nest hotels. There is a very significant difference between the hotel before the plan and after the plan. The following are graphs showing the rate of customer base in eagles nest hotels before the investment idea and after the investment ideas. After the investment implementation graph. Before the investment plan implementation. Bibliography Cassiman, B. (2006). Mergers & Acquisitions: The Innovation Impact. Cheltenham [U.A.], Elgar. Davidson, A. (2003). The 10-Week Flexible Investment Plan: A Beginner's Guide To Stock Market Success. London, Kogan Page. Glover, S. I., & Wasserman, C. M. (2003). Partnerships, Joint Ventures & Strategic Alliances. New York, N.Y., Law Journal Press. International Finance Corporation, & Mcclure, P. (2003). Innovation, impact, sustainability: IFC's commitment ; 2003 annual report. [Washington, DC], International Finance Corp. Mckinney, J. B. (2004). Effective financial management in public and nonprofit agencies. Westport, CT, Praeger. Ripinsky, S., & Williams, K. (2008). Damages in International Investment Law. London, British Institute Of International And Comparative Law. Read More
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