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Business Plan of Ocean Park

Table of Contents

1. Executive Summary

2. Non-financial Analysis

2.1. Corporate Governance

2.2. Corporate Social Responsibility

2.3. Services and

3. Market Analysis

3.1. Market Segmentation

3.2. Competitive Comparison

3.2.1. Competitors Analysis

3.2.2. Competitive A

4. Company Analysis

5. Financial Analysis

5.1. Operating: Profitability and Efficiency

5.2. Operating: Assets Management

5.3. Liquidity and Solvency

6. Recommendations

6.1. Marketing Strategy

6.2. Forecast

6.3. Implementation

7. Conclusion

8. References

of Ocean Park Hong Kong

Corporate Governance

orporate Social Responsibility

and Products

Market Segmentation

Competitive Comparison

Competitors Analysis

Competitive Advantage

Profitability and Efficiency

Assets Management

Liquidity and Solvency

Marketing Strategy

Implementation and Control

1

2

3

3

3

4 - 6

6 - 7

7 - 8

8

8 - 11

12

12 - 13

13 - 14

14 - 19

19

20

20

20

1. Executive Summary

Introduction: Ocean Park (

visitors with memorable experience that combine

also pledged to foster a greener Hong

Corporation (“OPC”) is a financially independent, non

Government-appointed board which manages and controls. As a provider of public

service, the company seeks to achieve financial sound

wide range of quality services and products at competitive prices. It has developed

into a major pillar of Hong Kong’s tourism industry.

Background: The management of OP has invited our term to prepare a business plan.

Our objective is providing a value added ideas to OPC on how to enhance a clear

image. The purpose of this thesis is to evaluate business performance and advice on

future business strategies in the next three years (2011/12 to 2013/14).

Intention: This report has two main sections included analysis and recommendation

to OP. We make a broader analysis of OP, and hold an external environment factors

as political, economic, sociocultural and technology. The market situation is also

made and comparison to competito

weaknesses of internal operating, as well as opportunities and t

Furthermore, we commented

profitability, assets management and liquidity

schedule and forecast have already planned for next three years.

Executive Summary

Ocean Park (“OP”) is a unique legacy to Hongkongers

with memorable experience that combines entertainment and education

to foster a greener Hong Kong practices and initiatives. Ocean Park

Corporation (“OPC”) is a financially independent, non-profit organization with a

appointed board which manages and controls. As a provider of public

service, the company seeks to achieve financial soundness while providing visitors a


into a major pillar of Hong Kong’s tourism industry.

The management of OP has invited our term to prepare a business plan.

bjective is providing a value added ideas to OPC on how to enhance a clear



has two main sections included analysis and recommendation



made and comparison to competitors. In addition, we analyze the strengths and

weaknesses of internal operating, as well as opportunities and t

, we commented on financial performance of OP regarding its operating

profitability, assets management and liquidity and solvency. The implementation

schedule and forecast have already planned for next three years.

2

a unique legacy to Hongkongers, it provides all

entertainment and education. It

Kong practices and initiatives. Ocean Park

profit organization with a

appointed board which manages and controls. As a provider of public

ness while providing visitors a


The management of OP has invited our term to prepare a business plan.

bjective is providing a value added ideas to OPC on how to enhance a clear



has two main sections included analysis and recommendation



rs. In addition, we analyze the strengths and

weaknesses of internal operating, as well as opportunities and threats of future.

financial performance of OP regarding its operating

The implementation

2. Non-financial Analysis

2.1. Corporate Governance

Supported by a secure foundation in management and governance practices,

has possessed good corporate governance

Board and Management.

reputation, thus attaining long

OP’s operation has strong local roots

education and conservation remains solid

2.2. Corporate Social Responsibility

The OPC is committed to be a responsible corporate citizen with a positive

relationship between social involvement and economic performance.

of Hongkongers, the OPC develops appropriately community care programmes to

meet the needs of the different sectors

and people with disabilities benefit from free entry year round, but also

Kong citizen can enjoy free admission on birthday. In 2010

stars, 185,000 senior citizens, as well as 26,000 persons with disabilities visited OP

for free. The OPC also expanded their corporate social responsibility pro

provide recipients of Comprehensive Social Security Assistance with access to the

Park at a nominal cost (HK$20 daytime admission). In addition, the park continues to

offer employment and training to disadvantaged young people in community so th

they can contribute to the society

2.3. Services and Products

Services: OP provides a variety of activities including an entertain

games and rides, nature tours to visit land

activities such as interactive

Products: OP’s booths and shops

and entertainment with pleasant memories.

inancial Analysis

Corporate Governance

Supported by a secure foundation in management and governance practices,

corporate governance in order to achieve the objectives

. It also creates better corporate performance and

attaining long-term and sustainable growth is essential

has strong local roots for 35 years. Their core commitment to

education and conservation remains solid.

Corporate Social Responsibility


relationship between social involvement and economic performance.

ongkongers, the OPC develops appropriately community care programmes to

eds of the different sectors for the community. Not only to do local seniors

and people with disabilities benefit from free entry year round, but also

Kong citizen can enjoy free admission on birthday. In 2010-11, over 145,000 birthday


The OPC also expanded their corporate social responsibility pro



offer employment and training to disadvantaged young people in community so th

they can contribute to the society from now onwards.

and Products

provides a variety of activities including an entertaining

games and rides, nature tours to visit landmark and sea animals, and educational

activities such as interactive museums and feature galleries.

booths and shops have provided souvenir products,

and entertainment with pleasant memories.

3

Supported by a secure foundation in management and governance practices, OPC

in order to achieve the objectives of the

better corporate performance and

is essential. Besides,

years. Their core commitment to


relationship between social involvement and economic performance. As a theme park

ongkongers, the OPC develops appropriately community care programmes to

for the community. Not only to do local seniors

and people with disabilities benefit from free entry year round, but also every Hong

11, over 145,000 birthday


The OPC also expanded their corporate social responsibility programmes to



offer employment and training to disadvantaged young people in community so that

ing theme park with

and sea animals, and educational

, food, beverages,

3. Market Analysis

Political

1) Free trade: Political factors have a

With the support of the Closer Economic Partnership Arrangement,

a member of the World

with Mainland, Hong Kong

2) Individual visit scheme

successfully. In August 2011, Li Keqiang, the vice premier of the People’s

Republic of China, said

between the mainland and Hong Kong. Base on those figure and government

policy, the mainland tourist

Further relaxation of restrictions on the

3) Hong Kong's economic revitalization:

and play as a significant role of improving people's livelihood.

IVS which (a) attract more

money to buy OP products

4) Hong Kong's econom

Kong's tourism, hotel, catering and other services and creat

employment vacancies

in the Park and provide the need

5) Able to receive more

development and there is no reception capacity saturation problem. Same as

the map size of park is very big and it

individual visitors should eventually be fully open

visitor’s market supply and demand can

Economic

1 Refer to “Hong Kong Economic and Trade

Political factors have a significant impact on the relationship of OP.

the Closer Economic Partnership Arrangement,

World Trade Organization who signed off a free

Kong has benefited from both business industry

Individual visit scheme (“IVS”): This scheme is increased the tourist arrivals

In August 2011, Li Keqiang, the vice premier of the People’s

Republic of China, said that IVS would strengthen the business and tourism

ainland and Hong Kong. Base on those figure and government

ainland tourists will be the main target customer of

Further relaxation of restrictions on the IVS of Hong Kong policy1:

s economic revitalization: HKSAR’s economy could recover rapidly

as a significant role of improving people's livelihood.

more visitors travel to OP; and (b) they would s

products.

economy is converted to services sector: It can

Kong's tourism, hotel, catering and other services and create a large number of

vacancies. Since OP is a service company, they would build hotels

in the Park and provide the needs of individual visitors.

ble to receive more Mainland tourists: Hong Kong have ample room for

there is no reception capacity saturation problem. Same as

e map size of park is very big and it can service more visitors.

individual visitors should eventually be fully open. Adjustment of the individual

visitor’s market supply and demand can enjoy economy of scale

Hong Kong Economic and Trade Association”

4

impact on the relationship of OP.

the Closer Economic Partnership Arrangement, and become

free trade agreement

industry and tourism.

This scheme is increased the tourist arrivals

In August 2011, Li Keqiang, the vice premier of the People’s

strengthen the business and tourism

ainland and Hong Kong. Base on those figure and government

OP.

s economy could recover rapidly

as a significant role of improving people's livelihood. OP benefits from

they would spend more

can improve Hong

a large number of

is a service company, they would build hotels

have ample room for

there is no reception capacity saturation problem. Same as OP,

service more visitors. In short,

djustment of the individual

of scale.

1) Global financial crisis:

purchasing power of the tourists.

with the support by China.

price conscious. IVS has

of Buzz marketing which

2) Development of three

additional visitations to OP in the first

in the first half of 2011

in 2010 rose by 14.7% which have

of stay increased to 88% as compared with the same period

Government has undertaken a number of initiatives to promote hotel

development to meet the diversified needs of visitors.

plan, the OP expects to expand its local and international corporate market and

draw more foreign tou

services appealing to a

Sociocultural

1) Hong Kong’s population has a mix of religions

different festivals which

unforgettable events and attract worldwide attention

theme which is a successful and

The bad reputation of OP arose amongst others, through the following issues:

2) Issue of the hygiene and safety of those animals:

garden, many animals

those animals are imported from other regions.

adapt to the environment in Hong Kong. They may get infected, and may die

because of the environment. Those staff

1 Recommended from “Trip Advisor, 2009

: It is important that global financial crisis

of the tourists. Fortunately, Hong Kong is recovered quickly

China. During the economic crisis, citizens become more

has provided a great opportunity for OP. OP

which have a good appreciation of OP in different

three hotels: The OPC estimates that it can bring 36800

additional visitations to OP in the first year of operating the hotels.

in the first half of 2011 is the highest record and compared with the same period

rose by 14.7% which have 19.3 million. Accommodation and

tay increased to 88% as compared with the same period


development to meet the diversified needs of visitors. With the redevelopment

expects to expand its local and international corporate market and

draw more foreign tourists to the educational park. By providing products and

a wide market, the company has a wide room

Hong Kong’s population has a mix of religions: Moreover, Hong Kong has many

which provide many opportunities to OP in order to

and attract worldwide attention, such as

successful and innovative sample.

arose amongst others, through the following issues:

Issue of the hygiene and safety of those animals: OP as a part of zoological

garden, many animals are living inside and under the care of OP

those animals are imported from other regions. However, not all of them

the environment in Hong Kong. They may get infected, and may die

of the environment. Those staff who may also be infected. In 2011, one

Trip Advisor, 2009”; “Cial! Bmch, 2009”; “About.com, 2009”

5

global financial crisis can affect the

recovered quickly

During the economic crisis, citizens become more

OP enjoys the effect

different forums1.

can bring 36800

the hotels. Visitor arrivals

compared with the same period

Accommodation and the length

tay increased to 88% as compared with the same period in last year. The


With the redevelopment

expects to expand its local and international corporate market and

rists to the educational park. By providing products and

room for expansion.

Hong Kong has many

OP in order to create

such as OP Halloween

arose amongst others, through the following issues:

OP as a part of zoological

under the care of OP’s staff. Most of

not all of them could

the environment in Hong Kong. They may get infected, and may die

infected. In 2011, one

staff of the Bird Department was diagnosed with a Chlamydia infection.

already recovered, but some visit

those animals were killed by those diseases, it

the department of environmental protection

image of OP. Either one of the above

animal development.

3) The malfunction of component affected normal operation:

of 2012, there are several accidents

of order such as the accident of Mine Train, po

be concerned about the safety of the facilities in OP. It

OP was underestimated

via the report of the media

Technological

1) Repositioning and long

and concerns on environmental protection, the

their effort in controlling the pollution and protecting the natural resources by

public education. This

opportunities for tourist industry.

2) Technological change:

for marketing and customer relationship. It can offer a great connection with huge

and immeasurable possible market. It is also important to consider the

improvement and development of the amusement machinery industry.

3.1. Market Segmentation

The target market segment of

(1) Individual and households

Local, Mainland and foreign

tourists

Reaches out to individual and

households across the various

staff of the Bird Department was diagnosed with a Chlamydia infection.

already recovered, but some visitors may be afraid of being infected. Also, if

killed by those diseases, it would be easy to be blamed by

the department of environmental protection and give negative

one of the above mentioned which it is a huge

The malfunction of component affected normal operation: In 2011 and be

of 2012, there are several accidents of mechanical failure. Some rides

of order such as the accident of Mine Train, power interruption

about the safety of the facilities in OP. It would cause

was underestimated this factor. Those visitors lack their confident to

via the report of the media.

ong term operation plan of OP: With increasing awareness

and concerns on environmental protection, the HKSAR continues to streamline


public education. This coupled with the growing trend of eco

opportunities for tourist industry.

: The Internet has increasingly become a popular medium


immeasurable possible market. It is also important to consider the


Market Segmentation

The target market segment of OP has divided into three parts:

Individual and households (2) Educations institutions (3) Corporate organizations

Primary and secondary school

students

Corporate customers comprise

the newest market segment

households across the various

Take a field trip to the park to

learn natural science and

Determined the market

segments by focusing on the

6

staff of the Bird Department was diagnosed with a Chlamydia infection. He was

afraid of being infected. Also, if

be easy to be blamed by

negative impacts for the

is a huge cost for OP’s

In 2011 and beginning

. Some rides were out

terruption. The visitors will

cause a great loss if

their confident to go to OP

With increasing awareness

continues to streamline


coupled with the growing trend of eco-tourism provide

The Internet has increasingly become a popular medium


immeasurable possible market. It is also important to consider the


Corporate organizations

Corporate customers comprise

the newest market segment

etermined the market

segments by focusing on the

income class and racial

background.

In view of the current market segmentation of OP, the main market segment is

visitors from the mainland.

and strengthen their marketing

Life cycle of OP: It is estimated the local visitors has reached the declining stage

while the mainland visitors is

million visitors in past year, 54%

representatively. On the hand,

March 2012. Obviously, OP

situation.

Current marketing situation

educational and recreational destination by developing

in order to differentiate itself from

was viewed as a major tourism

Although HKDL has animated cartoon characters,

genuine animals and natur

enabled OP to establish its brand.

3.2. Competitive Comparison

3.2.1. Competitors Analysis

Competitor profiling

Hong Kong Disneyland

(“HKDL”)

HKDL is a major competitor for

OP among the local theme park.

HKSAR owns a majority HKDL interest of 53%. Attendance reached a

record high of 5.9 million

from the Mainland. HKDL ha

expanding plan will ultimately add three new themed areas. The last

attractions anticipated to debut in spring 2013.

Shanghai Disney Resort

(Open in 2016)

The first Disneyland

Shanghai International Tourist Resort and

25 billion. The phase 1 Disneyland is expected to attract 7.3 million visitors

per

history, etc. or visit the park for

exposure to issues within the

scope of their courses.

needs of customers and

keeping track of the

process.

In view of the current market segmentation of OP, the main market segment is

OP would continue to grow the footprint in

marketing approach to meet the market trends.

t is estimated the local visitors has reached the declining stage

ainland visitors is sharply increasing. For OP, visitors reached a record 7

past year, 54% and 35% from the mainland and the local

On the hand, OP opens a new theme zone (Old Hong Kong zone

OP expects to attract the local market and create a win

ituation: OP is positioning itself in the market as a unique

educational and recreational destination by developing its nature conservation slogan

to differentiate itself from HKDL. When HKDL opened to visitors

was viewed as a major tourism “Cash cow” that the city's economy would be aroused

animated cartoon characters, the visitors can have

natural environment in OP. This manner of

its brand.

Comparison

Analysis


record high of 5.9 million in 2011, with rise 13% from

from the Mainland. HKDL has two themed hotels with


attractions anticipated to debut in spring 2013.

The first Disneyland in the Mainland. It will be included in the 988 acres

Shanghai International Tourist Resort and three theme parks


per year. Shanghai Disneyland metro line has three new stations.

7

needs of customers and

keeping track of the buying

In view of the current market segmentation of OP, the main market segment is the

footprint in China’s market

to meet the market trends.

t is estimated the local visitors has reached the declining stage

. For OP, visitors reached a record 7

and 35% from the mainland and the local

Old Hong Kong zone) in

market and create a win-win

is positioning itself in the market as a unique

its nature conservation slogan

When HKDL opened to visitors in 2005, it

would be aroused.

visitors can have fun with

. This manner of positioning is


13% from 2010, which 45% are

with 1000 rooms. Its


It will be included in the 988 acres

three theme parks which cost


year. Shanghai Disneyland metro line has three new stations.

Customer focus

Aimed at local, the Mainland and

Southeast Asia regions and has

positioned as a premier destination for

families and targeted at the children.

The target market is obviously

middle-higher class citizens.

3.2.2. Competitive Advantage

1) Cost advantage: OP offers cheaper compared

the ticket prices will remain co

location where the main urban districts

Ticket

Price

Adult

Child (aged 3-

Senior (aged 65 or above)

Opening Hours

2) Differentiation advantage

the first organization to offer more and new features and shows than the second

organization. It also offer different features and services compare

competitors primarily

nature, while Disneyland focuses on fantasy.

3) Value creation: The core competency of the organ

helped them to know more about the behavior

and foreign visitors. Furthermore, it enables the company to create an image that

is considered as one of the most important aspect in gaining and maintaining

competitive advantage.

4. Company Analysis

Strengths

1) Strong local brand: OP

educational and entertaining activities tied to environmental conservation. Its

strong brand finds expression in the diversity and variety of educatio

Key advantage

Mainland and

s

positioned as a premier destination for

families and targeted at the children.

It holds the name of the Disney which is well

world in terms of entertainment. Thus the whole park of the

different rides and attractions that focuses on different

well-known Disney characters. This can

attract more visitors from different part of the globe,

particularly those who are from the US and Europe.

Competitive Advantage

OP offers cheaper compared with HKDL and OP

will remain constant in 2012. In addition, OP

the main urban districts nearby.

Ocean Park HK Disney

HK$280 HK$399

-11) HK$140 HK$285

(aged 65 or above) Free HK$100

10:00am - 7:00pm 10:00am

Differentiation advantage: It is considered as bigger than HKDL


organization. It also offer different features and services compare

competitors primarily HKDL. It focuses on showing the reality regarding the

nature, while Disneyland focuses on fantasy.

The core competency of the organization gives it

helped them to know more about the behavior and culture of their different local



competitive advantage.

Analysis

OP has developed a unique reputation for providing


strong brand finds expression in the diversity and variety of educatio

8

holds the name of the Disney which is well-known in the

world in terms of entertainment. Thus the whole park of the

different rides and attractions that focuses on different

known Disney characters. This can help the company to

from different part of the globe,

particularly those who are from the US and Europe.

nd OP claimed that

In addition, OP is in favorable

HK Disneyland

HK$399

HK$285

HK$100

:00am - 8:00pm

HKDL, thus enabling


organization. It also offer different features and services compare with its

t focuses on showing the reality regarding the

ization gives its advantages. It

and culture of their different local



reputation for providing


strong brand finds expression in the diversity and variety of educational and

� Logo of OP HK

entertainment can offer

Hong Kong. The cost of

2) Diversification function:

provide diverse activities and

also cater to individuals and groups enabling

3) Identification of customer

the demands and behavior of the visitors.

and highly professional skillful staff to control and complete the difficulties that will

happen in the future.

4) Maintaining various internal procedures:

prepare for challenges, which

various risk registers.

5) Diverse business model

creating value-added programmes for the business community and strengthening

their dining and retail offerings. They also

corporate community.

6) Sponsorship of redevelopment cost

are allocated for the operation of the park

Plan of the OPC was endorsed by the Chief Executive in Council in October 2005,

and the funding arrangement was a

December 2005.

7) Tax exemption: Only non

Ordinance Chapter 112 Section

exemption status in Hong Kong.

8) The reputation of the organization

reputations have economic value to the company because it will be difficult to

imitate. Since the objective of OP is close to nature, the reputation is built via the

educational aspects regarding the

can offer for a wide market segment. Also, OP is famous park in

he cost of advertisement is not high because everyone knows it.

Its integrative brand communication implies its ability to

provide diverse activities and features for the different customers. The activities

also cater to individuals and groups enabling OP to target various considerations.

stomer needs: OP is considered as experienced and knows

the demands and behavior of the visitors. The Park has many good infrastructures


Maintaining various internal procedures: OP has a risk management system

, which provides with a systematic framework to manage

Diverse business model: By growing their promotional partnership network,

added programmes for the business community and strengthening

their dining and retail offerings. They also reinforce the relationship with the local

lopment cost: There are sufficient financial resources that

are allocated for the operation of the park. The 5.55 billion Master Redevelopment

was endorsed by the Chief Executive in Council in October 2005,

and the funding arrangement was approved by the Legislative Council in

Only non-profit organizations that qualify for Inland Revenue

Ordinance Chapter 112 Section 88 are charitable organizations and

xemption status in Hong Kong.

reputation of the organization: It is the most important tangible resource


Since the objective of OP is close to nature, the reputation is built via the

l aspects regarding the environment.

9

Also, OP is famous park in

is not high because everyone knows it.

Its integrative brand communication implies its ability to

features for the different customers. The activities

target various considerations.

as experienced and knows

The Park has many good infrastructures


risk management system to

provides with a systematic framework to manage

By growing their promotional partnership network,

added programmes for the business community and strengthening

relationship with the local

financial resources that

5.55 billion Master Redevelopment

was endorsed by the Chief Executive in Council in October 2005,

pproved by the Legislative Council in

profit organizations that qualify for Inland Revenue

and entitled to tax

most important tangible resource. The


Since the objective of OP is close to nature, the reputation is built via the

Weakness

1) Higher maintenance cost

electric and entertainment facilities ha

wear and tear. Some part of the facilities and features of the organization are

considered as obsolescence

that must be exerted, it will take some time in order to come up with the ever

changing demand of the visitors

a timetable for regular maintenance

maintenance and insurance will increase

2) Limited of flexibility for

through the introduction of various themes and features, but there

for improvement. The

environment due to the non

3) Unfavorable structure

limitation regarding the land development because the location is hilly.

4) Higher operating cost:

period of time to develop new ride

innovative enough to enhance the attractiveness as a major tourist destination to

the local market.

Opportunity

1) Master redevelopment plan

phases by 2012, featuring over 70 attractions

hotel accommodations.

attraction - Polar Adventure opening

penguins and Chinese giant

panoramic view of penguins in an Antarctic setting.

2) Strong economy in the

market with 12.7 million arrivals in the first half of 2011, representing an increase

aintenance cost: As OP has already operated many years, some of it

electric and entertainment facilities has been used for a long time and

Some part of the facilities and features of the organization are

obsolescence, and in great need for renovation, as well as effort


changing demand of the visitors. To avoid those problems, OP will have to make

etable for regular maintenance in order to ensure the safety of visitors. The

maintenance and insurance will increase.

for changing market demand: OP has made improvements

through the introduction of various themes and features, but there

. The flexibility is limited in responding to the competitive

due to the non-profit structure of OP.

tructure of geographic location: This is the fact that they have the


The growth of local market is still declining. It takes a long

period of time to develop new rides or other facilities. The product feature is not


Master redevelopment plan: The work has been started and will

featuring over 70 attractions. OP would be able to provide

hotel accommodations. The new theme zone is the latest attraction

Polar Adventure opening in July 2012, which will feature spotted seals,

penguins and Chinese giant salamanders, together with a restaurant offering a

panoramic view of penguins in an Antarctic setting.

mainland: The mainland continued to be the


10

many years, some of its

a long time and result of

Some part of the facilities and features of the organization are

, and in great need for renovation, as well as effort


To avoid those problems, OP will have to make

to ensure the safety of visitors. The

has made improvements

through the introduction of various themes and features, but there is a wide room

to the competitive

This is the fact that they have the


he growth of local market is still declining. It takes a long

or other facilities. The product feature is not


The work has been started and will be delivered in

would be able to provide three

is the latest attraction. New

n July 2012, which will feature spotted seals,

salamanders, together with a restaurant offering a

the largest source


of 21.1% and accounting for 65.7% of total visitor arrivals.

focuses on the IVS of China, as well as the improving relationship of the

to the China, that had helped to improve the number

3) Expanded the Mainland market

of overall attendance, OP will be opening in the coming fiscal year a fourth office

in Chengdu, which targeted Central China region. OP evaluates the

effectiveness of advertising campaigns in six emerging source cities in China.

The findings will enhance the effectiveness of future campaigns.

4) Strong marketing support

to the foreign visitors. It is also important to consider the development of new

transportation - South Island Line that would

direct to the Park for the foreign and local visit

5) Network promotion: The

range of possible customers. The OP website will showcase the background of

the company, the portfolio of all the past and current online events. It

user-friendly for members and interested visitors.

online ticket purchase

6) Social media trends: OP

account. These are an

and at the same time promote

Threat

1) Shift consumer’s tastes

changing in the preferences and needs of consumers. With the limited flexibility

of OP, it could face problems

activities are introduced, market tastes could have changed already.

2) The uncontrollable threaten from environment

heavy rain warnings and typhoons, and the outbreak of the human

the year 2008-09 has put a strain on

of 21.1% and accounting for 65.7% of total visitor arrivals. The main opportunity

of China, as well as the improving relationship of the

to the China, that had helped to improve the number of the visitors in the country.

the Mainland market: As visitors from Mainland account for over 50%


Chengdu, which targeted Central China region. OP evaluates the



Strong marketing support: From the local government that recommends the


South Island Line that would be convenience and fast access

direct to the Park for the foreign and local visitors.

The Internet can help the organization to connect to a vast


the company, the portfolio of all the past and current online events. It

mbers and interested visitors. The website also

service which become more convenient.

OP has Facebook fan page and Sina Micro

an inexpensive tool by which can interact with customers,

and at the same time promote OP.

consumer’s tastes: The strong competition compounded by the fast pace of

in the preferences and needs of consumers. With the limited flexibility

, it could face problems in meeting needs in a timely manner. By the time


The uncontrollable threaten from environment: For unprecedented number of

heavy rain warnings and typhoons, and the outbreak of the human

has put a strain on attendance of OP.

11

The main opportunity

of China, as well as the improving relationship of the country

of the visitors in the country.

ainland account for over 50%


Chengdu, which targeted Central China region. OP evaluates the



rom the local government that recommends the OP


convenience and fast access

nternet can help the organization to connect to a vast


the company, the portfolio of all the past and current online events. It is

The website also offers the

Sina Micro-blogging (weibo)

interact with customers,

: The strong competition compounded by the fast pace of

in the preferences and needs of consumers. With the limited flexibility

in meeting needs in a timely manner. By the time


For unprecedented number of

heavy rain warnings and typhoons, and the outbreak of the human swine flu for

5. Financial Analysis

5.1. Operating: Profitability and Efficiency

Ratio

Operating Margin Surplus from

Net Profit Margin Net

Basic Earning

Power

Return on Assets

(ROA)

Net

Return on Capital

Employed (ROCE)

The level of operating margin

City in the beginning of 2011

revenue. Its operating margin increased 5%, proving this is a profitable decision.

Compare with HKDL, OP enjoys a comparat

For net profit margin, is around 7% which is a significant drop compared with the

operating margin. It shoes the relative efficiency of the firm after taking into account

all revenues and expenses. It is an alarm that the operating expenses

the firm’s pricing policy and cost control should be improved. Compare with the

increasing net profit margin

share will be narrow. The figure of the

respectively. It has shown that the management effectiveness of OP is stable in terms

of the use of total assets and total capital available.

5.2. Operating: Assets Management

Ratio

Debtor Collection

Period (Days)

Trade Receivable x

Assets Turnover

(Times)

The debtor collection period for OP, it was decreasing form 12.7 in 2009 to 6.9 in 2011

Financial Analysis

Profitability and Efficiency

Formula 2010/11 2009/10

%

Surplus from Operations

Revenue

Ocean Park 27.2 23.9

HK Disney 13.9

Net Operating Surplus

Revenue

Ocean Park 7.2

HK Disney (6.5) (23.8)

Profit beforeInterests

Total Assets

Ocean Park 2.0

HK Disney (1.2) (4.1)


Total Assets

Ocean Park 1.2

HK Disney (1.5) (4.9)

Profit beforeInterests

Capital Fund

Ocean Park 2.2

HK Disney (1.3) (4.6)

The level of operating margin has a slightly increase after they launched the Aqua

City in the beginning of 2011 which attract more guests in order to increase the


enjoys a comparative advantage.



all revenues and expenses. It is an alarm that the operating expenses


ng net profit margin of HKDL, it will be a threat to OP that the gap

The figure of the ROA and ROCE are around 1.2% and 2.2%


ts and total capital available.

Assets Management

Formula 2010/11 2009/10

Trade Receivable x 365

Sales Ocean Park 6.9

Sales

Total Assets

Ocean Park 0.2

HK Disney 0.2

eriod for OP, it was decreasing form 12.7 in 2009 to 6.9 in 2011

12

2009/10 2008/09

% %

23.9 21.8

7.3 (2.8)

6.5 7.5

(23.8) (51.8)

1.6 1.5

(4.1) (6.4)

1.0 1.4

(4.9) (9.1)

1.7 1.7

(4.6) (6.0)

has a slightly increase after they launched the Aqua

which attract more guests in order to increase the




all revenues and expenses. It is an alarm that the operating expenses are large and


, it will be a threat to OP that the gap of market

are around 1.2% and 2.2%


2009/10 2008/09

7.0 12.7

0.2 0.2

0.2 0.2

eriod for OP, it was decreasing form 12.7 in 2009 to 6.9 in 2011

and it shows that OP has improved their method of collecting debts and reduced the

risk of bad debts and administrative expenses. OP may be tightened up the credit

policy to get this improvement.

Assets turnover indicates the efficiency of utilization of assets

from 2008 to 2011, both OP

both of parks cannot able to generate more revenue through of using assets.

need to consider about the

assets. Meanwhile, the majority of the assets

(“PPE”). In 2011, PPE increased by $819 million. To our best knowledge, OP will

expand and build the hotels in the coming year. It would enter for more

equipment. To face the variation of PPE, OP may need to set the timetable review on

non-current assets and PPE performance. On the other hand, OP needs to examine

the senescent PPE to determine whether need to written off or not since the

maintenance expense will be its burden. It is indisputable that OP needs to have

enough reserves to cope with the maintenance expenses in the future.

5.3. Liquidity and Solvency

Ratio

Current Ratio Current Assets

Current Liabilities

Debt to assets Total

Leverage Ratio Total

Interest Coverage

(Times)

Net

OP’s current ratio kept in a high level which is more than 1 from 2009 to 2011. It is

because OP is holding too many idle

Nevertheless, by comparing the short

liquidity level of OP is healthy enough. Since

to meet its short-term liabilities

improved their method of collecting debts and reduced the


policy to get this improvement.

urnover indicates the efficiency of utilization of assets to generating revenue,

both OP and HKDL is in the similar figure at 0.2,

both of parks cannot able to generate more revenue through of using assets.

the method of generate revenue and the depreciation of the

Meanwhile, the majority of the assets are the property, plant and

). In 2011, PPE increased by $819 million. To our best knowledge, OP will

expand and build the hotels in the coming year. It would enter for more


current assets and PPE performance. On the other hand, OP needs to examine

PPE to determine whether need to written off or not since the

xpense will be its burden. It is indisputable that OP needs to have

to cope with the maintenance expenses in the future.

Liquidity and Solvency

Formula 2010/11 2009/10

Current Assets

Current Liabilities

Ocean Park 4:1 4.9:1

HK Disney 0.7:1 0.6:1

Total Liabilities

Total Assets

Ocean Park 0.8

HK Disney 1.6

Total Liabilities

Equity

Ocean Park 367.4% 308.6

HK Disney 34.4% 51.4


Total Interest

Ocean Park 1.5

HK Disney (5.4) (6.8)


because OP is holding too many idle shot-term assets or resources.

Nevertheless, by comparing the short-term solvency ratios of OP and

liquidity level of OP is healthy enough. Since HKDL did not have sufficient liquid funds

liabilities. That was the reason why its current ratio

13

improved their method of collecting debts and reduced the


to generating revenue,

which shows that

both of parks cannot able to generate more revenue through of using assets. OP may

depreciation of the

the property, plant and equipment

). In 2011, PPE increased by $819 million. To our best knowledge, OP will

expand and build the hotels in the coming year. It would enter for more new


current assets and PPE performance. On the other hand, OP needs to examine

PPE to determine whether need to written off or not since the

xpense will be its burden. It is indisputable that OP needs to have

to cope with the maintenance expenses in the future.

2009/10 2008/09

4.9:1 3.3:1

0.6:1 0.6:1

0.8 0.7

0.3 0.3

308.6% 218.1%

51.4% 53.7%

1.9 8.1

(6.8) (3.4)


term assets or resources.

term solvency ratios of OP and HKDL, the

did not have sufficient liquid funds

ratio is less than 1.

For OP’s debt to assets, it is less than 1 which indicating adequacy of total assets to

finance all debt. Compare with

Since the construction of polar adventure

capital is needed. OP could issue bond debenture with low dividend to reduce the

burden in the future. There is no doubt that the

the surplus in the first few years.

Besides, leverage ratio indicates the extent to which the organization is reliant on

debt financing versus equity. OP has a higher ratio than

borrowing money. In OP case, it is d

coverage measures how many times your net profit covers your interest expense

obligations. It is decreased from 8.1

indicates that OP faced the challenges to meet the

repay the loans in the short perio

6. Recommendations

6.1. Marketing Strategy

1) OP suggested target markets are

Mainland visitors market:

Middle

class

All ages can participate in and enjoy as individuals or in groups

They undoubtedly are OP main target market. The consumer target is middle class; believe

that experiences are as valuable as, if not more valuable than, material things.

We should understand the needs of visitors, and

Mainland visitors; OP is one of the necessary scenic spots in Hong Kong. “You never come

to Hong Kong if you did not go to OP” also serves as the tagline on all marketing materials

and printed materials.

We should also focus on the cooperation. For example, in festival day, we can decorate the

shopping malls such as the decoration in Langham Place, Festival Walk and New Town

Plaza. As we can see that the shopping malls in Hong Kong have many beautiful

decorations in every Christmas. Also, the spectacular decides which are tall and huge that

can allow customers talk photos. Sometimes, in a particular period, the malls design some

special theme such as Harry Potter’s theme in Time Square. We can observe that these

can attract many tourists to visit. So, OP can design some theme and use in the game


finance all debt. Compare with HKDL, it has an increased trend more than 1 in 2011.

of polar adventure and hotels in OP, the large amount of


re. There is no doubt that the finance cost will increase and reduce

the surplus in the first few years.

e ratio indicates the extent to which the organization is reliant on

debt financing versus equity. OP has a higher ratio than HKDL, it is an indicator for

borrowing money. In OP case, it is difficult to borrow more money.

many times your net profit covers your interest expense

obligations. It is decreased from 8.1 times to 1.5 times in 2009 and 2011. This

that OP faced the challenges to meet the interest expenses.

period of time in order to reduce the burden

Recommendations

target markets are:

Characteristics

ll ages can participate in and enjoy as individuals or in groups with the purchasing power



Positioning

We should understand the needs of visitors, and deliver the message to them especially for



d also focus on the cooperation. For example, in festival day, we can decorate the



in every Christmas. Also, the spectacular decides which are tall and huge that



n attract many tourists to visit. So, OP can design some theme and use in the game

14


, it has an increased trend more than 1 in 2011.

hotels in OP, the large amount of


finance cost will increase and reduce

e ratio indicates the extent to which the organization is reliant on

it is an indicator for

ifficult to borrow more money. The interest

many times your net profit covers your interest expense

times to 1.5 times in 2009 and 2011. This

interest expenses. OP may need to

the burden of finance costs.

the purchasing power.



deliver the message to them especially for



d also focus on the cooperation. For example, in festival day, we can decorate the



in every Christmas. Also, the spectacular decides which are tall and huge that



n attract many tourists to visit. So, OP can design some theme and use in the game

booths. We can give some surprise gifts such as food items, candy or souvenir to

visitors. Last but not least, we can provide the 90% discount coupons of OP to them.

New local market:

Aged

55-70

Family entertainment:

bonding outing. They are mostly retired, and enjoyi

a good place for family

per travel plan for the

encourage them to travel

So we can cooperate with the local travel agency to design one

force on the centers for the elderly and the community center that they can

OP family day. We can provide the one

lunch coupon. Because this is

36. We can also cooperate with some restaurants (e.g. Jumbo Seafood

those group-orders can go to the restaurant after playing in OP. Although the age

over 65 year-old is free

admission income and purchasing power in OP.

Aged

19- 30

Young married with and without children

They also like playing with

environmental groups. Secondary markets include staff

For local marketing, OP can consider using collective memory, the core message of local

customers is “OP is our home, OP is Hong Kong’s garden.” This can encourage them to go

to OP at least once per year,

2) Plan of the services and products

i. Franchising: The food courts can

Because OP developed the facilities and provided utility services to the entire food

court but leased them to food and beverage franchises. The sales and marketing

group assigned to the food court handle

engaging in the lease mean

should offer adequate accessibility of the food court to consumers

service to visitors. And all prices will be competitive and fair to the customer. In

addition, particular projects need to estimate separately.

A. Invite the restaurant in Michelin gu

Hong Kong was chosen for the publication of a Michelin guide, which put Hong Kong on the global

map of gourmets and connoisseurs. Those restaurant can be opened

and hotels, in orders to follow the trends and increase the image of OP. Some popular local food li

booths. We can give some surprise gifts such as food items, candy or souvenir to

, we can provide the 90% discount coupons of OP to them.

Characteristics

: It is where grandparents take grandchildren of all ages to have a

They are mostly retired, and enjoying their time with their family

family day and a good celebrating for their grandchild.

per travel plan for the elderly which can save the transportation cost for them and

encourage them to travel around, especially go to OP.

So we can cooperate with the local travel agency to design one-day trip in OP. We can

force on the centers for the elderly and the community center that they can

We can provide the one-day package which is cheaper and include a

lunch coupon. Because this is a group-order so the minimum number of people group is

36. We can also cooperate with some restaurants (e.g. Jumbo Seafood

orders can go to the restaurant after playing in OP. Although the age

old is free admission, their family members will go with which increased OP

admission income and purchasing power in OP.

Young married with and without children. OP can provide a good dating place for them.

playing with some excited activities for fun. They may be

environmental groups. Secondary markets include staff in the college and

Positioning



once per year, which give them a warming and family feeling.

services and products:

The food courts can follow business-to-business consumer approach.


to food and beverage franchises. The sales and marketing

signed to the food court handle functions directly affecting business firms

meanwhile providing direct services to consumer.

offer adequate accessibility of the food court to consumers

ll prices will be competitive and fair to the customer. In

addition, particular projects need to estimate separately.

Invite the restaurant in Michelin guide


map of gourmets and connoisseurs. Those restaurant can be opened in OP with

and hotels, in orders to follow the trends and increase the image of OP. Some popular local food li

15

booths. We can give some surprise gifts such as food items, candy or souvenir to the

, we can provide the 90% discount coupons of OP to them.

It is where grandparents take grandchildren of all ages to have a

ng their time with their family. OP will be

a good celebrating for their grandchild. MTR provides $2

which can save the transportation cost for them and

day trip in OP. We can

force on the centers for the elderly and the community center that they can propagate the

day package which is cheaper and include a set

order so the minimum number of people group is

36. We can also cooperate with some restaurants (e.g. Jumbo Seafood Restaurant) that

orders can go to the restaurant after playing in OP. Although the aged who are

, their family members will go with which increased OP’s

OP can provide a good dating place for them.

be supporters of

and young faculty.



give them a warming and family feeling.

consumer approach.


to food and beverage franchises. The sales and marketing

functions directly affecting business firms

while providing direct services to consumer. The park

offer adequate accessibility of the food court to consumers and completed

ll prices will be competitive and fair to the customer. In


with new sightseeing

and hotels, in orders to follow the trends and increase the image of OP. Some popular local food like

noodles, congee, steamed rice roll, etc

B. Franchising stores or restaurants

OP may cooperate with some franchising stores or restaurants to let them

OP since the visitors especially the local citizens would more acceptable these kinds of brand name,

e.g. 759 store for snacks and beverages

ii. Improve their environment equipment

A. Public transports:

(1) Nowadays, there are tailor

to the park. Besides, City bus

creation of MTR Fare Savers can let customers enjoy the

customers can have the return of $3 when they enter in the specified MTR station such

as Admiralty Station. They can also get the MTR interchange discounts of saving $6

when they are back and forth by MTR.

(2) We would like to suggest have more and clear signpost at t

Tunnel. Furthermore, it should

increase the visitors, for instance, Mong Kok, Tse

B. Enhance park facilities:

(1) Provide lockers services:

personal belonging, the visitors only need to give $5 refundable deposit inside the locker

and get its own key which could raise their confidence. They could be relieved and

reduce the thefts, robbery and the loss of their properties.

(2) Free wireless internet access services:

and share their interesting things which happen in the park on the social networks such

as Facebook and Sina Micro

(3) Provide more open space:

summer, OP could provide more pavilions and sitting

the surroundings in OP.

3) Promotion plan:

The promotional activities will be targeted advertising and strategic networking.

aim is to create new customers in order to increase the income by gaining the number

of admission fees.

i. Promoting through different media channels

A. To maximize publicity through cost effective

media. First, we can connect with Hong Kong Tourism Board and make more

videos. Then, we can

innovative application of multimedia and Internet technology skills to make some

steamed rice roll, etc. will be welcome by local civilian.

stores or restaurants

e franchising stores or restaurants to let them to open the branches in


store for snacks and beverages; Maxim’s for fast food.

nt equipment: Specifically, the main services offered are:

Nowadays, there are tailor-made route of buses available to Aberdeen Tunnel and walk

City bus Route 629 runs daily from Admiralty MTR to OP.

creation of MTR Fare Savers can let customers enjoy the advantages



en they are back and forth by MTR.

We would like to suggest have more and clear signpost at the bus stop of Aberdeen

it should add variety routes around different districts in order to

increase the visitors, for instance, Mong Kok, Tseung Kwan O, Yuen Long, Tin Shui Wai.

In order to let customers to play joyful without carrying their



, robbery and the loss of their properties.

Free wireless internet access services: It is convenient to visitors surfing the web freely


Sina Micro-blogging (weibo).

Provide more open space: Since OP is located near the hills and it is so hot in the

summer, OP could provide more pavilions and sitting-out areas, where visitors can enjoy

will be targeted advertising and strategic networking.


Promoting through different media channels:

To maximize publicity through cost effective promotion in collaboration with

irst, we can connect with Hong Kong Tourism Board and make more

videos. Then, we can cooperate with university’s students who have the


16

open the branches in


main services offered are:

made route of buses available to Aberdeen Tunnel and walk

daily from Admiralty MTR to OP. The

advantages. For example,



he bus stop of Aberdeen

add variety routes around different districts in order to

ung Kwan O, Yuen Long, Tin Shui Wai.

In order to let customers to play joyful without carrying their



It is convenient to visitors surfing the web freely


Since OP is located near the hills and it is so hot in the

out areas, where visitors can enjoy

will be targeted advertising and strategic networking. Our


promotion in collaboration with

irst, we can connect with Hong Kong Tourism Board and make more

s students who have the


educational programs or documentaries.

and also organize familiarization tours so that the media can learn more about

OP. For instance, TV station Discovery Channel and local pop stars were invited

to introduce OP’s conservation contribution and awards.

B. Cooperate with Hong Kong movie ma

are 3 new free of Charge TV channels which are City Telecom,

For the supply of the broadcast is increasing, OP could enjoy

advertisement. Moreover, OP can

background, e.g. The Grand Aquarium, Cable Cars

successful example is

iii. To hold the photography

can bring many fresh ideas, OP may consider

public or sponsoring some photographic organization

are enthusiastic on photo taking

(1) The topic can be the OP’s aims: Ocean and Fun.

(2) The videos from the competition can be a perfect promotion for OP.

(3) OP can invite some movie makers

OP when those movies are on cinema

(4) The movies that can be uploaded to some popular website such as Youtube.com

(5) People can comment on those movies a

a very powerful tool for businesses of any size and it is the most popular video sharing site

(6) Nowadays, online marketing is a trend for promoting business. YouTub

people for promoting products in an effective manner through the

facilities, seasonal events, discount, etc. It can be an effective way for OP’s marketing and

ii. Web advertisements: The website and email newsletter

the website or via Facebook offers information on specials at the store as well as links

to other local businesses that support environmentalism, local envir

activities, and advertisements for environmentalist groups

iv. Design “OCEAN FUN” s

people will be happy to see that OP has its own APP for them to download for

information, tickets, enquiry, etc.

educational programs or documentaries. Not only invite the media to publicize



conservation contribution and awards.

Cooperate with Hong Kong movie maker and directors. Besides that, since there

are 3 new free of Charge TV channels which are City Telecom, PCCW, Cable TV.

For the supply of the broadcast is increasing, OP could enjoy

advertisement. Moreover, OP can provide tourist spots and facilities for movie

The Grand Aquarium, Cable Cars, Ferris wheel, etc. Some

“You Are the Apple of My Eye”.

graphy or make video production competitions

can bring many fresh ideas, OP may consider to organize some competition

public or sponsoring some photographic organizations which attract the people who

are enthusiastic on photo taking in OP.

pic can be the OP’s aims: Ocean and Fun.

The videos from the competition can be a perfect promotion for OP. It can build up the arts atmosphere in Hong Kong.

to use the facilities in OP as their background of the movies. It

OP when those movies are on cinemas or theaters since this can draw the attention to the people who love

to some popular website such as Youtube.com.

eople can comment on those movies as a reference for OP. Using Youtube to describe OP is a good way since Video is

a very powerful tool for businesses of any size and it is the most popular video sharing site in the world

Nowadays, online marketing is a trend for promoting business. YouTube is a popular website that can be used by the

products in an effective manner through the Internet. Though this platform, OP can promote its

, discount, etc. It can be an effective way for OP’s marketing and promotion.

The website and email newsletter are available for sign


to other local businesses that support environmentalism, local envir

activities, and advertisements for environmentalist groups

smartphone APP: As most of people have smart phone


enquiry, etc. The main function is park map. The APP for users

17

Not only invite the media to publicize



. Besides that, since there

PCCW, Cable TV.

For the supply of the broadcast is increasing, OP could enjoy the low-priced

tourist spots and facilities for movie

Ferris wheel, etc. Some

s: As competition

some competitions for the

attract the people who

It can build up the arts atmosphere in Hong Kong.

s. It is a good promotion for

to the people who love movies.

s a reference for OP. Using Youtube to describe OP is a good way since Video is

in the world.

e is a popular website that can be used by the

this platform, OP can promote its

promotion.

available for sign-up on


to other local businesses that support environmentalism, local environmentalist

As most of people have smart phones,


The APP for users

can understand the location of the facilities they want to go. This function can also

include some routes that can teach the users how to go to their destination

Other functions are QR code

Kong. They provide some games

and send a postcard in a specific location

people can have fun. Also, for convenience, the APP can provide service for people

to buy tickets online or enjo

of introduction for each sea animal

choosing such as Cantonese,

4) Brand management:

We need to set strategy to create an image for

share the important moments of their life.

celebration instead of a theme park. This image is very important for future product

and market development.

i. Branding elements: OP could provide the subsidy to invite the local artists or

designers to create the series of iconography and album. It could distribute in the

different popular attractions

the new branding concept and provide a sense of continuity from the previous brand.

The fact that OP features educational aspects regarding the environment, gives it a

reputation that is close to nature. This message can draw out through images and

language that furthers this idea.

panda and its duty care, so

ii. Public relations: To increase and sustain its customer traffic,

finishing its redevelopment plan set for completion in 2012. As such, investing in

market research methods such as observation

customer surveys and research, and trends analysis supports the sales and

marketing objectives of the company by enabling the company to relate or establish

the location of the facilities they want to go. This function can also

include some routes that can teach the users how to go to their destination

are QR code can be added in APP, QR usage is growing fast in Hong

rovide some games for users to get mark points, such as treasure hunt

postcard in a specific location. The mark points can exchange pr

so, for convenience, the APP can provide service for people

to buy tickets online or enjoy different kinds of discount. APP provides the recording

of introduction for each sea animals and landmark which has several languages for

choosing such as Cantonese, Putonghua, English, Japanese, etc.

e need to set strategy to create an image for OP where people can celebrate and

share the important moments of their life. OP can provide an image of a place for


OP could provide the subsidy to invite the local artists or

series of iconography and album. It could distribute in the

s to attract more customers to visit OP. They will work with


es educational aspects regarding the environment, gives it a


language that furthers this idea. Also, popular bloggers can be invited to experience

panda and its duty care, so that they could recommend OP to their fans.

To increase and sustain its customer traffic,


market research methods such as observation, customer feedback surveys, external



18

the location of the facilities they want to go. This function can also

include some routes that can teach the users how to go to their destination in the park.

, QR usage is growing fast in Hong

k points, such as treasure hunt

. The mark points can exchange presents so

so, for convenience, the APP can provide service for people

APP provides the recording

which has several languages for

where people can celebrate and

can provide an image of a place for


OP could provide the subsidy to invite the local artists or

series of iconography and album. It could distribute in the

hey will work with


es educational aspects regarding the environment, gives it a


Also, popular bloggers can be invited to experience

that they could recommend OP to their fans.

To increase and sustain its customer traffic, OP is currently


, customer feedback surveys, external



links with the buying process of its customers.

5) Enhancement of internal organization

i. Build a relaxing workplace:

atmosphere; a better way to improve the effectiveness and motivated behavior. For

instance, Google’s Hong Kong Office.

ii. Full-time staff training programmes:

keep the staff motivated about learning new concepts, it needs to develop the

employee training within the framework of a comprehensive, ongoing, and consistent

employee training program.

enhance their communication and language skills like English and Putonghua, etc.

OP can assess training needs by job analysis, customer feedback and observation of

employees. Training will include:

place; OP core message and branding

marketing; Front-line staff and performers both need to face those people

from different places so they need to know how to deal

6.2. Forecast

(Without effect of recommendations)

1. Attendance (million)

2. Revenue

3. Operating cost

Surplus from operation

1. We are expected attendances grow at a rate of 5% to 10% each year. The main driving forces for

attendances will be marketing, customer satisfaction, and networking.

2. Revenue are expected to rise 5% in the first year and then 10% annually in the second a

years, includes admission, merchandise and catering income and other.

3. Cost items are not bigger change, includes sales, marketing, administration, and related items.

Many of these are fixed costs. However, marketing costs are expected to level

networking and word-of-mouth becoming more prominent. We expected the operation cost grow at a

rate of 8% on the first year since OP will expand during this year, and return to the rate at 6% on the

second and third year.

links with the buying process of its customers.

f internal organization:

i. Build a relaxing workplace: Build good relationships with employees


instance, Google’s Hong Kong Office.

training programmes: A quality staff training program is essential to



. It can improve staff management to solve



will include: Safety courses can promote a security working

OP core message and branding; Plan and control website and online

line staff and performers both need to face those people

from different places so they need to know how to deal with emergencies.

Forecast for the next 3 years of OP

2010/11 2011/12 2012/13 2013/14

5.9 6.49 7.14 7.85

HK$ million HK$ million HK$ million HK$ million

1248.7 1311.1 1442.2 1586.4

(909.5) (982.3) (1041.2) (1103.7)

89.3 93.9 114.6 137.9

We are expected attendances grow at a rate of 5% to 10% each year. The main driving forces for

attendances will be marketing, customer satisfaction, and networking.

Revenue are expected to rise 5% in the first year and then 10% annually in the second a

years, includes admission, merchandise and catering income and other.

Cost items are not bigger change, includes sales, marketing, administration, and related items.

Many of these are fixed costs. However, marketing costs are expected to level off in future years with

mouth becoming more prominent. We expected the operation cost grow at a


19

Build good relationships with employees with a relaxing


A quality staff training program is essential to



to solve challenges and



Safety courses can promote a security working

Plan and control website and online

line staff and performers both need to face those people who come

with emergencies.

2013/14 Growth rate

7.85 10%

HK$ million

1586.4 5% - 10%

(1103.7) 6% - 8%

137.9

We are expected attendances grow at a rate of 5% to 10% each year. The main driving forces for

Revenue are expected to rise 5% in the first year and then 10% annually in the second and third

Cost items are not bigger change, includes sales, marketing, administration, and related items.

off in future years with

mouth becoming more prominent. We expected the operation cost grow at a


6.3. Implementation and

Implementation plan Start date

Hire blog editor Mar

New print ad design Mar

Enter Photo contests Jun

Web advertisements Jun

Create new APP Jun

Educational movie Aug


Video Competition Jun



New print ad design Mar


Internal control system: Each project investigates the different stages of the buying process of

customers relative to the roles of the executive and assesses the effectiveness of the role to draw

recommendations for improvements and contingency planning.

7. Conclusion

To sum up the above analysis of external and internal

inbound tourism in Hong Kong is booming. With government support on tourism,

economy upturn, change of life style and demand of entertainment facilities, there are

great advantage for OP to develop. It is clear that

reposition itself on the market to maintain its attractiveness, differentiate itself

competitors, and sustain its competitive advantage.

8. References

Environmental Protection Department

Hong Kong Disneyland. <hkcorporate.hongkongdisneyland.com

Hong Kong Tourism Board. <

Ocean Park Hong Kong. <oceanpark.com.hk>

Tourism Commission. <www.tourism.gov.hk>

and Control

Start date Duration Particular

Mar 12months Salaries: bloggers (HK$7,500)

Mar Once Salaries: local artists

Jun Once Competition

Jun - -

Jun Once -

2011/12 Total

Aug Once Cooperate with University


Jun Once Competition

Jun Once -

2012/13 Total


Mar Once Salaries: local artists

Jun - -

2013/14 Total



improvements and contingency planning.

To sum up the above analysis of external and internal environments factors



to develop. It is clear that OP needs an innovative plan to

osition itself on the market to maintain its attractiveness, differentiate itself

competitors, and sustain its competitive advantage.

ental Protection Department. <www.epd.gov.hk>

hkcorporate.hongkongdisneyland.com>

. <www.discoverhongkong.com>

oceanpark.com.hk>

<www.tourism.gov.hk>

20

Budget

HK$

(HK$7,500) 90,000

30,000

15,000

10,000

50,000

2011/12 Total 195,000

Cooperate with University 400,000

(HK$7,500) 90,000

15,000

10,000

2012/13 Total 515,000

(HK$7,500) 90,000

30,000

10,000

2013/14 Total 130,000



environments factors, the



needs an innovative plan to

osition itself on the market to maintain its attractiveness, differentiate itself from

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