SECTION (A)

Executive Summary

The Oxford Tours Company has formed a special program to provide travel packages to people all over the world to experience a rare opportunity to visit London in its celebration of the 2012 World Olympics. The 2012 Olympics will be held in London around July- August 2012. The tour services are held before and during the World Olympics and the other for a tour throughout London.

The company’s target clients are middle to high-income individuals, individuals interested in nature and historical appreciation, adaptable in terms of weather and environment and the like. These are businessmen, executive, families and professionals. The major clients are projected to in urban areas European and US cities. It is also projected that clients more likely to be married with 60% men and 40% women.

Oxford Tours will price its services at the middle of the market. It will provide a quality service with excellent value. Its prices will be affordable for most middle-class travelers with proper budget. The service will be priced based on similar middle-class competitor prices and the value more or less of our offer. The company will be priced based on similar competitors but we offer more services and tour places that the average. The company is targeting relatively big market, volume will be tremendous. In this forecast, the company will be able to get a very high gross profit margin.

Oxford Tour Company’s objectives for its operation include:
• 1. To create a service and customer oriented company whose goal is to provide the excellent;
• 2. programs and services;
• 3. To capture 30% market share of the middle-class travel industry during the business implementation;
• 4. To create a profitable and enjoyable business;
• 5. To achieve a 60% return rate of customers after its initial implementation this year, 2012;

Tour 1: Before the Olympics

Tour Name: Late Afternoon
Target: The Art Enthusiasts
Price: Adult – $175; Child – $125 (package includes, entrance to the venues, snacks, tour guide and bus ride)

This tour starts after lunch break. It aims people who want to explore London as an art masterpiece. It will showcase the different notable and historical places in London. But unlike any other tour, tourists can interact and join in the activities per venue. It is a very suitable place for everybody who wants to experience peace and joy. At the end of the tour, it will surely create a perfect ambiance for the people out of their busy work mind.

Pick-up time: 1PM from your hotel
1:30 Hampton Court Palace
*Special Event: The Wild, the Beautiful and the Damned
A new temporary exhibition about the story of beauty, debauchery and decadent art at the late
Stuart Court.
5 April 2012- 30 September 2012
2:30-3:00 Break
3:00-3:30 Travel time to next destination
3:30-4:30 London Film Museum
*Special Event: New exhibition space in Covent Garden on 21st of April
4:30-5:00 Travel Time
5:00-5:30 Souvenir shopping at Camden Market
6:00 End of Tour
*Tourists can pick whether they want to be drop of at Her Majesty Theatre, London Palladium or
back to their hotels.

Computations of the prices are based on the actual prices of the venues. The tour is package so that all the venues and activities will be synchronized. Here are the websites of the venues to be visited:
www.hrp.org.uk/HamptonCourtPalace
www.londonfilmmuseum.com
www.hermajestysthea
www.hermajestystheatrelondon.info
www.londonpalladium.org

Tour 2: During the Olympics

Tour Name: Royal Sports
Target: The Sports Fanatics

Price: Adult – $275; Child – $225 (package includes, entrance to the venues, snacks, tour guide and bus ride)

This tour is held in conjunction with the Olympics in London. During this tour, tourists will experience the London sporty theme. Aside from the tourists becoming audience in the Olympics, they would also be toured around London like they’re participants in the Olympics. The tourist would definitely enjoy it!. This tour will make tourists feel that they are at home. That is a very interesting goal which not a lot of tours think of. Everybody should be in their physical attire and get ready for a very unforgettable experience. This aims to all type of people- young, old, boy, girl, mother, father, etc.
8:30 Pick-up time from hotel
9:30-11:30 Beechley Riding Stables: Horseback Riding Lessons
11: 30-12:30 Lunch Break
12:30:1:00 Travel Time
1:00-3:00 The Manchester Museum
Focus: Simon Archery Collection
3:00 Souvenirs
3:30 End of Tour

Computations of the prices are based on the actual prices of the venues. The tour is package so that all the venues and activities will be synchronized. Here are the websites of the venues to be visited:
www.london2012.com
liverpool.gov.uk/leisure-parks-and-events/horse-riding-and-stables
www.museum.manchester.ac.uk

Tour 3: Anywhere in the United Kingdom (UK)

Tour Name: Day at the Museum
Price: Adult – $200; Child – $150 (package includes, entrance to the venues, snacks, tour guide and bus ride)

This tour aims anybody who wants to visit England and view some of the best tourist spots in their land. The museum theme is set to cater all the people who want to enjoy and learn about the historical England. But unlike other tours, the museum theme is designed to be highly-pleasurable and not boring. It is very interacting and delighting. After the tour, the people will be delighted so much about England and will surely come again either for leisure, personal or business. The whole day tour will make the tourist feel at home in England.

Target: Museum Lovers
9:30 Pick-up from hotel
10:00 The British Museum
*Special Event: Shakespeare: staging the world
19th of July- of 25th November 2012
11:30-12:30 Tate Gallery
12:30-1:00 travel time to new destination
1:00-3:00 Natural History of Museum
3:00:4:30 Victoria and Albert Museum
4:30-5:00 Back to the Hotel

Computations of the prices are based on the actual prices of the venues. The tour is package so that all the venues and activities will be synchronized. Here are the websites of the venues to be visited:
www.britishmuseum.org
www.nhm.ac.uk
www.vam.ac.uk
www.tate.org.uk

(a) Selling price of each of your company tours.

(b) Per unit cost statement

(c) Four Month Budget using marginal costing principles

(d) Sensitivity analysis such as Break-Even point and Target profit

(e)Provide recommendations for the tour business and a conclusion.

The business plan made is quite idealistic. It sees the possibility that for every succeeding months, the sales would increase as well. It is forecast like that because of the tourism attraction towards the Olympics. Studies have already shown that months getting nearer an event particularly big international events like the Olympics create an increasing growth in sales. The recommendation here is to create more possible tours which the tourists can pick. More advertisements and possible discount packages can also be encouraged. In conclusion, the whole tour plans are well planned and organized including the venues, hotels and other packages. The tour can be easily arranged also because there are so many hotels and places to visit in London.

(a) From this case study, the initial understanding was to build a business plan for the upcoming 2012 London Olympics. The scheduled tour plan is very unique because it only happens once every four years. Furthermore, it only happens in specific months (i.e. July and August 2012). Meaning to say, the customers cannot change their travel periods in other months because the essence of the tour will be disregarded. Hence, precedents in which the company compare possible sales are very irrelevant. The last Olympics was held in Beijing and everything there was different from London (i.e. venue, audience, cost of living, places to visit etc.). It’s like doing everything from scratch. That’s why a good improvement is to create a Feasibility Study and Financial Study on the target place a year before the actual event. This is to give way to tremendous numerical and factual research as well as qualitative and quantitative projections and forecasting.

(b)This is a very good opportunity for everybody to learn how to create your own business
project. It is very pressured because you have to maximize all the financial budget versus the constraints like the time, people, environment etc. It’s actually the real way of deploying a business plan because you have to do so many analysis and forecasting. Yet as later on concluded, this is just a “dummy” where everything is purely research-based. It is however useful for everybody that can be used for current and future study.