Project Paper

Project Paper

Order Details:

a)Describe your company and its operations, relative size, and so forth. Give reasons for your decision to go international.

Modern Beach Resort? is a medium size, 4 stars resort that comprehends two 8 floors buildings separated by 600 feet from each other, and 900 acres of private beach. Each building has 192 rooms, a 30? x 50? swimming pool, a fully equipped gym with a Tennis court, 3 restaurants, and 4 full bars including a pool bar. The resort is located few steps away from Old Town Key West, in the Florida Keys. The business operates as a partnership confirmed by 3 owners. It has a top management team including a GM, a Director of Operations, a Director of Accounting and Finance, a Director of Sales and Marketing, and a Director of Food & Beverage. The resort has a total of 820 employees including managers and supervisors of the 5 functional departments: rooms division, sales, food and beverage, housekeeping, and engineering.
The resort totaling 384 rooms accommodated for a maximum of 4 people each, has a maximum capacity of 1,536 guests, which remain between 98% and 100% of the capacity during the high season months: October through March, and fluctuates between approximately 78% and 90% of the capacity during the slow season months: April through September, according to statistical reports of the last 6 years.
The rooms have a standard size, but the rates vary according to the amount of guests from 1 through 4, the beds sizes and the season. The resort has been successfully operating for 14 years, with a satisfactory internal rate of return of 22.5 %. The sales activity also shows a stable growth rate due to a constant increase in sales volume, and the domestic markets and foreigner visitors have shown an increasing loyalty to the brand. Considering the solid performance of the company, owners and top management have decided to expand the business internationally.
Major reasons to do so are:
Extend the sales of the service by finding new markets, reduce dependence on the market developed in the US, compensate the fluctuations in demand due to seasonal changes, and learn how to compete against foreign companies.

b) Decide on an appropriate country in which to operate, and give your rationale for this choice

The chosen country to start international operations is Brazil. Two major reasons for selecting the place are the geographic situation and conditions. Brazil is worldwide recognized for having beautiful beaches and a warm, attracting culture. It is located in South America, which is not extremely far from the U.S, but at the same time it is in the opposite hemisphere of Earth, offering the advantage of opposite seasons that are the main influence in our service demand. This means that when we have the slow season for beach in the US, there will be high season in Brazil and vice versa, which helps to keep sales and revenue constant throughout the year. Another reason for choosing this country is that Brazil is the leader of South American economy with a high GDP, which indicates that logistics and transportation systems are also well developed.

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