1. Concept
The concept for this business plan is a small apartment complex of 20 rooms. This apartment will be located in the city Buriram, a fast growing city in Middle-Eastern Thailand. The business name will be P&A which is an abbreviation of both my parents’ name (Patrick and Am). The name is short, simple and personal since it will be a family business. We will target group we have in mind are working adult and university students in the area. Our apartment will offer facilities such as swimming pool and parking area for our residents. Besides these facilities, we will also have 24-hour security for the safety of our residents.
2. The internal analysis
For this part of the analysis the method of McKinsey 7s model was chosen to analyze the micro environment factors. This model covers important internal aspects and show the links between all the factors. Another reason for us to use this model is because the result of this analysis will give us a clear picture of how we could organize our internal structure since the apartment does not exist yet.
2.1 The McKinsey 7s model
Shared values (Which of our principles help us and why do we do what we do in the way we do?)
Our aim is to provide a quality apartment for a reasonable price (the price befitting of the quality that we provide). As well as an apartment where our residents will feel safe to live in. So, our core values will be aimed at the quality and price of the apartment and the safety of our residents. So, for us to be able to provide a quality apartment for a reasonable price, we will have to make sure that we communicate well with the engineer and the constructing firm of what we want and what we find important before the building start. We have to make sure that our values match with the understanding of these people. Our staff that will be in charge of the security should also be instruct and made clear of what we find important and how we want things to be done.
Strategy (What should we do to solve the specified business problem?)
To achieve our aim as mentioned earlier, there are a few things we have to focus on. First, for us to be able to provide a quality apartment for a reasonable price, we will have to think about the design of the apartment and the use of the building materials. As happens in many Asian countries, some constructing firms use materials that are not up to standard in order to keep the costs low. The apartment may look good, but will not last long and will need a lot of reconstruction in the future. We do not want that to happen. So, our strategy is for us to be closely involve in every procedure that will happen while building the apartment from the start. We will leave the design of the apartment to the engineer in charge. The building materials will be check to keep the quality we want while keeping the prices in mind. Second, to provide safety, we will hire a security guard to oversee the safety of our residents, as well as the necessary tools needed (such as security camera’s etc.). If these strategies are implemented, we surely will be able to achieve our aim.
Structure (What structure do we need to execute the strategy?)
Our apartment is a small-scale apartment. Since it will be a family business, the family member will have to pitch in where needed. As mentioned above, we will hire personnel for security. The personnel will have to report to the owner and will have no control over the decisions making process within the business. Though the hierarchical structure is top to bottom, we are open to listen to the opinion and suggestions of our personnel.
System (What business system do we need to execute the strategy?)
The core values of the apartment revolve around quality, price, and safety.
Staff (How should we help our staff in their growth?)
When hiring our personnel, we will focus on the motivation, the experiences and the skills needed for the particular job. For the security job, we want someone who is responsible, fit, and knows how to handle in certain situations. Someone who will be able to work well without supervision as the owners will not always be there to supervise especially at night.
As mentioned earlier, we will listen to the opinions and suggestions of our staff. We as owner are open to listen any time. For us, especially in the beginning, the personnel’s opinion and suggestions are very important. These suggestions can help us improve where needed.
To motivate and get to know our personnel better, we will occasionally organize personnel outings. There may be additional courses we can do together during these outings to improve our skills and knowledge.
If the business makes enough profit, we will also reward our personnel for their hard work and input. This could be in the form of end of the year bonus for example.
Style (What leadership style and cultural qualities will help us achieve our strategic objective?)
In most Asian countries, there is a clear employer-employee style of working. Which means that the employee does not have a say at all in the way they work. Though we will set a clear procedures and guidelines of how we want our personnel to do their job. We will listen to their opinion and adjust our way of working or the way our personnel should work accordingly. We believe that this way of working will help us build a good working relationship with our personnel. Which in turns will have a positive influence on the work mentality of our personnel.
Skills (What are the specific skills that will help us and what do we need to develop?)