Enreach Enterprise LLC

Enreach HotelBusiness Plan

Business Seminar Final Project

Albertus Billy Mahaputera

Priscillia Wijaya

Christian Tang

Januarika

Gabriella Andria

Adrian Hartanto

Supported by:

Table of Contents1. Introduction

2. Executive Summary

3. Marketing

- Research & Analysis

- SWOT

- Market Size

- Competitors

- Market Strategy

- Pricing

- Advertising & Promotion

- Product Mix

- Accommodation

- Food & Beverage

- Recreation

- Conference Center

4. Finance

- Financial Plan & Analysis

5. Operational

- Hotel Design& Layout

- Hotel Details

- Critical Risk

6. References

7. Appendix

Introduction

Business description

Enreach hotel is a 4-star hotel and the first member of Enreach Enterprise

LLC-the new enterprise based in Jakarta. With Hotel's strategic location,

elegant decoration and top quality facilities, we provide professional

services for your quality stay in Makassar. The hotel is 18-story high and

providing 3 types of rooms: Standard room for 256 units, suite room for 8

units, and also cottage for 8 units. Enreach provide a wide range facility to

satisfy customers. For business travelers, we have 4 rooms for

conference/meetings, one ballroom, and including all necessary

conferencing equipment and security.

Business formation

Enreach hotel was started by Enreach Enterprise in 2011. The company

form is a Limited Liability Company, LLC. Enreach Enterprise is based in

Jakarta and will employ approximately 70 people.

Managers/Directors

The general manager is Mr. Adrian Hartanto

The Board of Managers/Directors currently is starting up with the 5 people

in different division, which are Albertus Billy Mahaputera, Christian Tang,

Gabriella Andria, Januarika, and Priscillia Wijaya. They have the principal

responsibility for fulfillment of the hotel's mission and the legal

accountability for its operations. As construction proceeds,

managers/directors will be added many people with highly skill and

experience that fits into Enreach requirement itself.

Management team

Enreach’s management team will pass all the jobs and skill training in order

to have direct knowledge of the hospitality industry and will possess the

necessary professional administration skills. Our team will include a chef,

front office, chief engineer, security, IT manager, housekeeping marketing

personnel, and professionals with accounting experience. The team will

tailor to the needs of the corporate client and will provide complementary

personal services where needed.

Executive SummaryMission

“To provide excellent and enriching services to our guest”

The statement above is our commitment and our mission to provide the

best hospitality experience in the area.

With this objective in our mind, we wish to achieve local, national, and

international reputation for the incoming years as a top, high-end,

consumer brand.

Vision“Quality enrichment for our consumers, shareholders, and stakeholders”

In Enreach Enterprise, it is our philosophy to give everyone our full

contribution in delivering services at the highest quality.

Enreach strives to fully pursue the highest standard in the hospitality

services, not only for our customer, but also for our shareholders and

stakeholders.

LocationEnreach Hotel will be located in Makassar, Indonesia. This particular

location offers strategic positioning because of the geographical aspect, the

accessibility, and also the potential growth of Makassar as a tourism site.

The exact location will be explained in later details.

Target MarketEnreach’s primary target market would be travelers from inside the country,

specifically families and business travelers. The reason we choose to focus

on national tourist first is to gain national fame. We think that Indonesia has

a lot of potential in creating tourism and tourist. An early start based on this

potential could give us the lead in the hospitality market.

ObjectivesMain Objectives:

Creating a local organization with international standards

Providing opportunities for local labor force with employments and

trainings

Helping to promote Makassar as an ideal tourism site

Promoting the local culture to national and international markets

Partner with universities to provide internship opportunities

Increasing awareness in the local environment and protecting it

Maintain quality accommodation and services

Keep improving Enreach facilities and services to the highest

standard

LicensesEnreach Hotel Makassar will obtain the following required licenses:

Hotel and restaurant operating license. We have filed registrations

with the local Makassar city administration office concerning legal

rights and laws.

All the necessary environmental permits from local, regional, and

national regulatory agencies

Marketing

Research and Analysis

Target CustomerIn general, Enreach main customers will be the tourists of Makassar, people

who are looking for vacation due to its location near Trans Studio area and

Losari Beach. However, since the number of hotels in Makassar is still

relatively medium-low, Enreach also aim the business travelers, who are

usually travelling to the Makassar only for short period.

AgeBasically, the target market will involve various group of age, since it aims

more to the people who are travelling for holiday, especially family.

Nevertheless, Enreach also intended to grab business travelers, hence can

be said that Enreach target people around 21+.

GenderBoth Male and Female will be Enreach target gender

LocationGeneral target location for Enreach customer will be both International and

National Citizens. However, Enreach will more concern on National

residents who are coming out from Makassar due to Indonesia itself is on

developing phase.

Income LevelEnreach is a 4-star hotel, which means the price is relatively high. In

addition, Enreach Hotel is designed for people who are ready to spend their

money to get away for a period time. Therefore, Enreach target customer

income level should be laid on Middle High Income Level customer.

OccupationOccupation will be varied since Enreach is aiming people who are looking

for vacation, not only for businessman even tough one of the target

customer is business traveler.

Education LevelThis factor will not be the basis for segmenting the customer profile.

GeneralNormally, the group of Enreach customers can be broadly divided into two

groups:

- Tourist: Trans Studio, which is one of the main tourism objects in

Makassar, is located near the Enreach. Trans Studio can be one of

Enreach tools to attract the customers. Visitors may come for many

different reasons other than business. These visitors can be couples,

families, or individuals.

- Business Travelers: Since the number of Business Hotels in

Makassar is not high, Enreach also aims the visitors who are coming

to Makassar with business needs. The location of Enreach, which is

located on a well-known area in Makassar, will become one of the

best choice for business people

SWOT The following analysis highlights the internal strengths and weaknesses of

the Enreach Hotel and the opportunities and threats facing Enreach Hotel in

Makassar tourism.

Enreach hotel will constantly improve performance based on consumer

critics and responses

Strengths Excellent location, full of tourism sites and easy transportation

High quality service with international standards but local pricing

Environmentally friendly building

Good support from the local community

Organization structure composed of international and local employees

Experienced staff member from across the world

Always open to feedback and recommendations

Complete facilities for all ages and purposes

Security and safety is highly maintained

Local fresh quality ingredients for our restaurant with local cuisine

Low competition in the area

Weakness New brand name.

Hotel concept and design is quite common in the market

Advertising might not be strong enough for our early opening

Pricing could be a problem early on

Opportunities

Makassar is one of the developing cities in Indonesia

A lot of potential in tourism industry

There is a lot of space in nearby area, possible area to be developed in

the future

With growing tourism in Indonesia, education in tourism is also

expanding. Many skilled workers will be available

The presidential election

Threats Possible new competitors in the area

The presidential election

The area does not have a certain uniqueness

Market SizeBased on Badan Pusat Statistik Indonesia, growth of tourism in Indonesia

has been increased around 8.5% from February (702.666) until March

(765.607) 2014. While according to m.bisnis.com, number of tourism to

Makassar itself has been growing around 18% (1.864 people) on September

2013 compared to a month before. These numbers will be Enreach target

market size. Enreach does not want to aim local citizens due to excessively

infrequent local citizens that prefer to stay on hotels inside their hometown,

except for business purpose.

Additionally, Persatuan Hotel dan Restaurant Indonesia (PHRI) said that

holiday period for students did not bring significant impact to number of

Makassar visitors. Furthermore, it only gives around 2 – 3 % to the total

number of tourists. Besides that, the total of Makassar Hotels’ customers

grows significantly (around 60-65%) on post-holiday (June-July). On that

time, most Hotels are occupied for occasional purposes such as, meetings,

seminars, conferences, incentives, and exhibitions).

In conclusion, it is estimated around 1.800 individual with booking rate

80% of total room number will become Enreach target market for each

month.

CompetitorAccording to the booking.com, recently there are around 82 hotels in

Makassar. However, Enreach only counts Colonial Hotel as the direct

competitor regarding the location. This hotel is a 3 stars hotel, which is

located on Metro Tanjung Bunga, same street as Enreach. It has 5 type of

room with the total number of 57 rooms. Have several facilities such as,

non-smoking / smoking room, safety box, air conditioner, 32” LCD TV,

mineral water, bathroom amenities, 16 local & International channel. The

rate range around Rp.500.000,00 – Rp. 1.200.000,00 /night. It also has

restaurant, laundry, and ironing service. Colonial is 5 minute drive to Trans

Studio and 35 minute drive to Sultan Hasanuddin International Airport.

In term of competing with Colonial, Enreach has advantages regardless

Colonial marketing segmentation. Enreach has various type of rates,

depends on the room type and season. The lowest one is Rp. 575.000,00 /

night (Standard Single / low season) and the highest one is Rp.

3.700.000,00 / night. This price is very affordable think that Enreach is 4

stars hotel. Almost all Colonial facilities also owned by Enreach with

another additional amenities such as, high speed internet service all over

building, 15 conferences room with additional 1 ballroom, 24 hour medical

service, swimming pool, fitness centre, bilyard, tennis table, Garden, also

free shuttle service to the trans studio, and free pick-up and drop-off to

Airport.

However, indirect competitors will come from other well-known hotels in

Makassar regardless its location.

Market StrategyAs a new Hotel in Makassar, there will be difficult time to gain the

customer at the first time, so for the first few years Enreach Hotel will need

to be aggressively attracting new guests. Guests then will be asked for

surveys and feedback with a purpose to improve Enreach system and

quality of services.

On the first opening, Enreach will give 50% - 65% discount rate on the first

6 months to attract customer awareness. Feedback and critics are also

crucial as Enreach will use them to improve our services and facilities.

However, the product and services line offers the following additional

advantages to attract customers:

For Families:For families, Enreach offer a huge playground in the garden and

accommodation suited for children and babies. Also we have a free shuttle

to Trans Studio.

For Business Travelers

For business traveler Enreach has 15 meetings room and a ballroom. There

are facilities provided like fax, printer, computer, wifi in every room, and

24 hours secretarial services to help you out whether you need help. Those

who wish a picked up and drop off from the airport, can directly make an

appointment first without any charge. For business manner, Enreach will

give 24 hours front desk, which is very beneficial for the business traveller

who is looking for emergency support and service.

For single and group travel

For those who want to experience Makassar, Enreach has a partnership

with PrimaTrans car rental and Jappa Travel agent providing a variety of

tours and also car rental service.

For physically impaired

Enreach is fully supported by 24 hours doctor in case of emergency. Also

there are facilities to support those who need special treatments like

wheelchair and braille words in the lift. Emergency stairs in every floor and

alarm buttons for immediate medical attention.

Additionally, Enreach wants to gain a rating on Perhimpunan Hotel dan

Restoran Indonesia (PHRI) as high as possible because approval from this

organization is so meaningful for Hotel in Indonesia. This effort can be

obtained by keeping up the quality and services of Enreach itself with the

support from customer feedback and suggestion.

PricingEnreach have 3 types of room with different services on each of them. The

price rate is various as listed below:

Room Type Information Rate (Low) Rate(High)

Standard Single Bed Rp. 1.075.000,00 /night Rp. 1.575.000,00/night

Double Bed Rp. 1.500.000,00 /night Rp. 2.000.000,00/night

Suite - Rp 2.000.000,00 /night Rp. 2.500.000,00/night

Cottage 2 Bedrooms Rp. 3.250.000,00/night Rp. 4.000.000,00/night

3 Bedrooms Rp. 3.700.000,00/night Rp. 4.700.000,00/night

Advertising and PromotionEnreach is planning to gain awareness from all over Indonesia 2 month

before the Grand Launching. In that condition, Enreach will be promoted

through social medias such as, newspapers advertising, radio advertise,

commercial Television, billboard on Makassar, Business Magazine, and

Internet advertising on some popular websites.

It appears that advertising and promotion is one of the most effective parts

that bring success to the hotel. Therefore, Enreach is willing to spend a

large amount in advertising and promotion

Grand OpeningEnreach try to attract awareness of customers on Grand Opening ceremony.

However, this ceremony invites only some officials like Governor, owner,

sponsors, etc. This ceremony will include several events, such as firework,

singer, traditional dancer, and many others.

Electronic MailEnreach will send invitation regarding description of Enreach and Grand

Opening to several potential customers (Business Traveller), including

companies as well. The following email will be send two weeks after the

first one and it will describe the opening discount program of Enreach.

Newspaper and Magazine Launching of Enreach will be sent through several newspapers and

magazines (mostly business magazines). The description of Enreach also

will be described on there.

Radio and TV CommercialAdvertising through commercial will be conducted on first 6 months.

Guest Reward ProgramMembership program for Enreach customer will be delivered to some

benefits, such as discount and point system. This point can be exchanged to

rewards like, souvenirs, restaurant ticket, or ticket for staying in Enreach

itself.

Flyer, Banner, and PosterTo spread news regarding Enreach, flyer, banner, and poster will be

delivered to several places such as, tour and travel agent, restaurant,

tourism objects all around Indonesia, and several offices. In this banner and

poster, Enreach also give information about Makassar tourism objects in

order to attract tourists to come as well.

WebsiteTechnology has been rapidly developed lately, as well as development of

website. Enreach is no exception with this technology and therefore, a

website will be created, which will be maintained by the IT department.

Marketing Product Mix

AccommodationEnreach Hotel has 3 different types of rooms (Standard, Suites, and

Cottages), which are facilitated with full facilities such as, private

balconies, high speed-internet access, Air Conditioner, Cable TV, safety

box, bathroom, work desk, and small bar with a refrigerator. Standard

Room has 2 available options to choose in term of bed (single & double),

also has fully facilitated like mentioned before. This room is suitable for a

short-trip guest. However, Suite Room provides double beds with an extra

city + beach view. This room more suggested for a honeymoon couple.

There is also Cottage, which is designed for family tripper. There are 2

available options for cottage. First option has 2 bedrooms, one Master

bedroom, and one Single bedroom. While another one is consist of 3

bedrooms, one Master bedroom, and two Single bedrooms. Moreover, it is

facilitated with a complete kitchen set, living room, and dining table.

Food – Room ServiceEnreach will provide buffet breakfast for the tenants at the restaurant. Each

food will be delivered from professional chef, who was elected based on

high standard of the hotel. The Breakfast period will valid 06.00 – 10.00

a.m. However, Enreach still provides room services for the customer, who

wants to order the foods from the restaurant. Also, Enreach’s kitchen will

ready to serve convention customers who have meeting on the hotel.

RecreationEnreach Hotel is facilitated with recreational facilities such as, swimming

pool, tennis table, bilyard, and fitness centre. All these facilities are

available only from 06.00 – 21.00 and can be accessed with using hotel

room access card only. Additionally, Enreach also has Garden for their

customer to get a plantation shades. This facility also can be used for many

occasions, such as wedding party, birthday party, barbeque, and many

more.

Conference RoomEnreach offers 15 conference rooms with additional 1 ballroom, which can

be used for meetings, seminars, party, etc. Each conference room can suit

up to 20 people, while for the ballroom has capacity of 400 individual

(tables) – 700 individual (chairs). Other extra equipment such as projectors,

fax, and multimedia can be provided later by request.

FinanceFinancial Plan & Analysis

Profit & Loss

1 2 3

IDR(4,000,000,000) IDR(2,000,000,000)

IDR- IDR2,000,000,000 IDR4,000,000,000 IDR6,000,000,000 IDR8,000,000,000

IDR10,000,000,000

Net Income/Loss

Net Income/Loss

As shown in the chart above, Enreach hotel will experience a Net Loss of IDR 2,369,619,806. This is due to the high initial starting cost Enreach has. However, by the second year, our financial forecast will show that there will be a net profit of IDR 1,080,287,344 and it will increase in year 3.

Financial Position

1 2 3 IDR484,000,000,000 IDR486,000,000,000 IDR488,000,000,000 IDR490,000,000,000 IDR492,000,000,000 IDR494,000,000,000 IDR496,000,000,000 IDR498,000,000,000

Total Assets

Total Assets

There are no expansion done within three years, therefore, the fixed asset each year remain the same. On the other hand, current asset will rise along with the raise of profit.

OperationsHotel Design & LayoutLevel 4-13, 17, 18

Level 15

Level 16

Level 14

v

Indoor RestaurantKitchen

Outdoor Restaurant

Changing Room and ShowerSauna, Steam,

Yoga, Fitness Room

Level 1

Level 2

Level 3

v v

v

v

Hotel DetailsTotal Area: 31,523.1 m2

Hotel: 2,415.5 m2 Ballroom: 2,667.6 m2 Parking Space: 2,250.7 m2 Cottages: 6,755.2 Sidewalk and Landscape: 17,434.1 m2

Total Rooms: 256 rooms Standard Room: 24.91 m2

Level 4 – 13: 180 rooms Level 15 – 16: 32 rooms Level 17 – 18: 36 rooms

Suites: 51.36 m2 Level 14: 8 rooms

Meeting Rooms Level 1

Meeting room (45.3 m2): 2 rooms Ballroom (1100 m2): 1 room

Level 2 Meeting room (48.2 m2): 5 rooms

Level 3 Meeting room (41.5 m2): 6 rooms Meeting room (45.3 m2): 2 rooms

Restaurants: Level G Outdoor: 159.1 m2 Indoor: 800.23 m2 Kitchen: 327.8 m2

Hotel Facilities: Level G Kiddy’s Pool: 135.9 m2 Swimming Pool: 369.277 m2 Pool Bar: 46.98 m2 Changing Room: 75.4 m2 Sauna, Steam & Yoga: 149.68 m2

Cottages 2 Bedroom: 198.7 m2

Room Area: 36.6 m2 Total: 6 rooms

3 Bedroom: 217.6 m2 Room Area: 37.2 m2 & 32.6 m2 Total: 2 rooms

Budget Plan

JOB DESCRIPTION TOTAL COST

Structure, Infrastructure, Foundation Rp. 91,100,000,000

Architecture Rp. 93,300,000,000Interior and Furniture Rp. 16,400,000,000

Mechanical and Electrical Rp. 52,700,000,000

Contingency Rp. 17,600,000,000Permission Fee Rp. 4,500,000,000

Consultant Fee Rp. 4,500,000,000

Pre Opening Expenses Rp. 2,700,000,000

Technical Hotel Operation Rp. 980,000,000

Land Cost Rp. 10 Million/m2 = 314,155,000,000

TOTAL COST Rp. 597,935,000,000

Design and interiorEnreach hotel using a concept of minimalistic hotel which gives a modern

impression with white as the main colour of the interior of this hotel

combined with grey colour. All the design and the furniture harmoniously

set to embrace the minimalistic concept. The lighting itself is using

concealed lighting to add the modern trace to every space in this hotel.

LocationEnreach Hotel located in Metro Tanjung Bunga, Makassar, South Sulawesi.

This location has been selected because as we know that Makassar is

considered as one of the fastest developing city in Indonesia. Metro

Tanjung Bunga has almost all the accessibility that customer needs while

leisure in our hotel such as shopping mall (GTC Mall), theme park(Trans

Studio Resort Makassar) and Losari beach. This hotel is open for business

24/7 throughout the year.

Location Description

Immediate Area

Type of area City Side area and 40 minutes from airport

Adjacent uses Shopping Centre (GTC Mall), Theme Park

(Trans Studio Resort Makassar), Losari

Beach

Benefits Busy area as the location near

entertainment area

Proximity

Customer Type Mainly business traveller also tourist who

loves water sports

Potential Customers People interested investing in Makassar,

local or international guest

Competitors Only 1 main competitor called Colonial

location of the hotel is located at the same

street but Enreach has an advantageous of

1 star more than the Colonial Hotel

Traffic Volume

Situation Easy access to main road

Pedestrian Active pedestrians near this area

Periods People going to and from office, 7 in the

morning and 4 in the afternoon

Accessibility

Close to major streets 15 minutes from main street

Easy entrance/exit 1 main entrance with security check and 1

exit

Visibility

From road Visible from major roads

Appeal of exterior New construction as of 2014

Landscaping Landscaped area inside the hotel

Shifting

Security

This division divided into several shifts to provide the best working

period and the effective security for Enreach Hotel. Each shift for

security officers are not more than 8 hours and would be available seen

in the key area of the hotel anytime. The shifting would be done if the

next shift officer already arrives at the specific station which already

assigned to enhance the safety of the hotel by preventing the station

from being unguarded.

House Keeping

For housekeeping, the shift is divided into 3 period of time: morning,

afternoon and night shift with specific job and timing every day. There

are 4 main positions in this division which is Head Housekeeper, Floor

Housekeeper, Room Maid and Linen Maid. The Head Housekeeper is

mainly in charge of supervising the other 3 division. The Floor

Housekeeper also supervises the work of lower division like Room

Maid and Linen Maid. The Room Maid in charge of cleaning in and out

of the room. The room cleaning is done every day to ensure the

cleanliness of the room during specific time of the day. Last but not

least is Linen Maid which has a responsibility of towels and sheets

replacement. The stocks and laundry schedule also is the part of Linen

maid responsibilities.

Accommodation from airport Enreach will provide accommodation from or to airport without additional

charges by having an appointment to pick up in advance of minimum one

day prior to arrival. The trip itself spends around 40 minutes from and to

the airport.

Popular tourist destinationBesides business travelers as our main target, tourist who loves water sports

activity would be Enreach target because Makassar is well known for its

beach especially Losari Beach. Located near Trans Studio Resort would

also attract customers to stay at our hotel.

PremisesEnreach has a total area of 31.000m2 which includes the building itself, the

parking spaces and all the operations of the hotels. The total room of

Enreach is 256 rooms inside the building and 8 resorts outside the building

which has the view of Losari Beach. The cottage has 2 types of bedroom, 2

bedrooms and 3 bedrooms with total spaces of 198.7m2 and 217.6m2

respectively.

The rooms itself divided into 3 types. First is the Standard Single Bed room

located at 15th and 16th floor with a total of 32 rooms available with an area

of 24.91 m2. Second type is the Standard with Queen Size Bed of 100

rooms and two single size beds of 80 rooms spread between 4th until 13th

floor and 17th along with 18th floor which has also a total area of 24.91 m2.

Last type is the Suites room located in the 14th floor and having a total of 8

rooms with an area of 51.36 m2.

ParkingFull capacity of 500 available parking lots. Valet parking also available to

facilitate customer needs. Parking spaces for customer and staff are

separated to maximize customer’s ease of access. With the single space

detection system which will inform whether the parking space is available

by giving out green light and red light if the space is already taken.

Maintenance

Regular maintenance by Enreach Hotel is done to prevent the unwanted

cost that may occur if the system and management in this hotel fails to

operate when needed. The maintenance itself divided according to several

parts. Maintenance for repairing the wear out condition of equipment as

well as scheduling for immediate replacement if needed, maintenance for

the software used in the hotel system such as the booking system and the

hotel website, maintenance for the personnel to provide the best strategy of

effective performance while doing the reparation and replacement of the

equipment. This maintenance policy could change in the future if new ideas

which could improve our system arise.

Training The training distinguished into top management group, supervisory

management and the front line employee which directly interact with the

customers. The top management includes the general manager, directors,

managers and assistant manager from every departments available in the

hotel which mainly taking care of the decision making. With this kind of

responsibilities, training like building proper economic view, forming sales

strategy, marketing and cost controlling would be suitable for this position.

Supervisory management group includes the supervisor of the hotel which

trained for the professional knowledge, customer services and dealing with

guest complaints. The front line staff trained for the technical competencies

and working attitudes while greeting customer to improve the atmosphere

at our hotel. There are also content training based program such as

Apprentice training to introduce hotel general information, Certification

training to get professional approve for the practical and theoretical,

Simulation training to improve the effectiveness of the job handled by the

staff and Language training which is required for the hotel staff speaking of

minimum one or two foreign language either passive or active.

GardeningRegular watering needed to obtain the maximum beauty of the

garden. The watering itself is scheduled once a day in the morning to keep

the freshness of the garden. For the garden walking path, Enreach Hotel

will use house rubble. The reason Enreach Hotel uses house rubble is to

minimize our cost and in the other hand, house rubble will give a natural

look to the walk path of the garden because the texture of the rubble

compliments the natural look of the garden itself. Other option, Enreach

Hotel will use dimension stone. Dimension stone is not as cheap as the

housing rubble but it will give more natural look for the walk path. Both

stone selections have advantage in common it is the stone is not slippery

when the walk path is wet with rain.

Organizational Structure

General Manager

Sales & Marketing

Sales Director

Public Relation Director

Revenue Manager

Innovative Marketing

Finance

Accounting

Auditor

Head Cashier

Operational

Security Engineering Critical Risk IT Housekeeping

Head Housekeeper

Linen Housekeeper

Floor Housekeeper

Food & Beverage

Executive Chef

Banquet Manager

Restaurant ManagerCC

Room Service

Human Resource

Front Office

Reservation Manager

Chief Operator

Duty Manager

Critical RiskSimilar to other business, the hospitality industry is not accident free. In

fact, hospitality industry is more prone to accidents and hazards than any

other sectors. Here in Enreach Hotel, we take our pre-cautions to the very

limit. It is in our priority to maintain safety for our customers and our

employees. Enreach strive to main the standards that the HACCP

maintains.

However, accidents can happen even with us taking precautions to the

extreme. This section will explain the emergency step that Enreach will

take if any form of accident should ever happen in the hotel.

Fire

Whenever fire alarms rang or fire sprinkler turn on, if it’s happen only in

one room, we will immediately check on the room and make sure

everything okay. And if big fire appears, all the employees that have been

trained for this will help our customer to the evacuation place. Emergency

lights will appear and guide the customer to exit way. All the employees are

responsible to notify the manager before taking action and orders to first

investigate a fire alarm before calling the fire department or notifying

guests. Enreach have to make sure first because premature notification of

guests due to false or nuisance alarms always concerns hotel management

because they don't want to inconvenience guests.

Earthquake

If the hotel is dealing with earthquake, Enreach hotel will firstly make sure

of the earthquake scale, whether it’s just small scale of earthquake or a big

scale of earthquake that can lead to danger. If it is just a small earthquake,

we would make an announcement that everything is under control and

going fine, several employees are assigned in each story to make sure all

guest feeling safe. And if it is a big scale of earthquake, Enreach will make

a direct announcement and turn on the emergency light to the emergency

exit and straight to the evacuation area. All the employees are assigned to

help each customer before they taken care of their own.

Tsunami

If there’s a tsunami alert, announcement are directly come out informing all

the guests to come out immediately at that time, and guide them to

evacuation place, when the guest gather, we guide them to safe location

that above 100m of sea level. The guest safety is our number one priority.

Employee accident

To run the business, we need workers to operate the hotel. However,

workers may make mistakes and lead to hurt themselves. For example,

food poisoning, if left unrefrigerated, or if meat or poultry is undercooked,

hotel restaurant food can poison the customer. Besides that unsanitary

kitchen conditions, employees with unclean hands, and improperly

sterilized utensils can all transfer bacteria to guests. And also burns can

occur when hotels set hot water thermostats too high. Showerheads can

flow scalding water on an unsuspecting guest's skin, resulting in first, and

sometimes second-degree burns. Irons with faulty gauges or switches that

fail to shut down properly can easily burn a guest's hands or workers who

work in the laundry part, resulting in scarring. Similar to fire disaster, the

solution is to give all employee insurance. Therefore, whenever bad

accident happens, the medical cost will be covered by insurance.

Furthermore, we have to make clear standard operation to minimize this

accident happening, such as giving new workers training first before they

operate the hotel.

Loss of key employee

Not all employees can be given certain task, especially task that needs extra

trust and responsibility, such as managerial position. Key employees are the

employees that have important tasks and influence to the company. Even

though company has given high salary and best facilities, key employees

can leave for other reason. To assign somebody new to this position is not

that easy and this vacancy may hamper daily operation.

Solution for this problem is to make resign policy that employee that want

to resign must inform company. By doing so, it gives time for company to

seek replacement. While looking for the vacancy, company can assign

employee who usually works with the leaving key employee as the

substitute or even get that position.

Production cannot meet customers’ demandHotels have many decisions that need be careful to decide it such as

capacity decision, quality decision and the others. In capacity decision,

there are long term and short term decisions. In short term situations, hotels

must make sure that they have enough employees to register arriving

guests, to clean hotel rooms, and to provide food and beverages to

customers. These decisions must be made carefully to avoid excessive

labor costs from having too many employees for the number of customers

being served. The other is quality decision. The decision relating to quality

is not “how much” quality to have. If asked whether they support high

quality in their organization, virtually all managers will respond

enthusiastically that they fully support high quality! Rather, the quality of

services is determined by numerous decisions throughout the organization

that have both long-term and short-term consequences for the

organization’s quality performance. For example, while all managers may

say they support quality, how many will support the capital expenditure to

purchase new equipment that can meet tighter tolerance requirements more

consistently? The outcome of these decisions will most certainly affect an

organization’s ability to produce outstanding quality in products and

services. Quality improvement efforts require a great deal of analysis and

teamwork, as well as a determined effort to make quality a top priority in

the organization. Improving quality requires everyone to adopt a

“continuous improvement” philosophy, where everyone approaches their

work with the view that there are always opportunities to improve on the

organization’s key performance measures. Continuous improvement efforts

are complex, multidimensional, and require partnerships among workers,

management, suppliers, and customers.

Booking is lower than expectedBooking lower than expected is classic problem for all startup hotels. Even

though we have prepared our business plan well, in reality we do not know

how the markets response to our brand new hotel. In our business plan, we

set the booking rate to 80% of total rooms but it may less than that. Thus, it

will affect hotel’s profit lead to the delay of our business plan schedule.

Therefore, in case of lower booking rates, the emergency measure that we

should take firstly is to aggressively attract consumer first by giving

discounts rates and promotions. The idea here is to gain more customers so

that we are able to spread our name by using the word-of-mouth media. A

slight loss may happen during this period, but the potential increase in the

future should make this strategy a worthwhile choice to make. Enreach will

also cooperate with travel agent and online ticketing company to advertise

Enreach Hotel.

Harvest Strategy

Liquidity eventIn the beginning, hotel’s capital is divided into 2, 60% for the original

owners of Enreach Enterprise LLC, and 40% for the hotel’s sponsors. Each

owner has around 10% company’s share. For 2 years, capital cannot be

disbursed and all the profit will become hotel’s modal. After 2 years,

whenever an owner want to cash their shares and out of this business,

liquidity event will happen in which the remaining owner has to cover the

share that had by the leaved owner or look up for substitutes to cover it.

After the first 2 years, profit will be distributed to all shareholders and the

distributed profits will be discussed depends on hotel’s condition at that

time. Whenever all of owners want to leave the business, sale of business

happens and the sale will be distributed according to owned shares.

Continuity of business strategyThis hotel will try to improve their current products and services by getting

the best quality material and controlling the quality and our hotel. If more

capital is needed, company will open to public.

Identifying SuccessorBelow are the criteria for successor of the company

Having broad knowledge and experienced in hotel business

Good leadership skills (Able to communicate effectively)

Having same vision and mission to accomplish company’s objectives

Understand financial concepts so that company’s financial can be

managed well

ReferencesBasari, M. T. (2013, February 11). Kunjungan Turis ke Makassar Naik 18%, Tingkat

Hunian Hotel Melonjak 49%. http://m.bisnis.com/. Retrieved June 23, 2014,

from http://m.bisnis.com/quick-news/read/20131102/78/184266/kunjungan-

turis-ke-makassar-naik-18-tingkat-hunian-hotel-melonjak-49

Statistics Indonesia. (n.d.). Statistics Indonesia. Retrieved June 23, 2014, from

http://www.bps.go.id/tab_sub/view.php?

tabel=1&daftar=1&id_subyek=16&notab=14