Analysis + Memo. Playa Dorada Case Study Example | Topics and Well Written Essays - 1250 words

Analysis + Memo. Playa Dorada - Case Study Example I hope that I will be able to highlight the potential feasibility, profitability and suitability of the proposed expansion, in such a way that enhances our investment returns. Welcome. Background To begin with, you are aware that the Playa Doranda Beach & Resort in Florida has been doing very well in setting up a residential center alongside highly esteemed hotels. The residents and guests in these two units are expected to reach maximal capacity soon, thus increasing the number of people using our facilities. Further, the usage of tennis facilities has been on the increase and is likely to push us above our current capacity in the next few months. Based on vocation and tourist arrivals, there is a likelihood that our tennis facilitates will soon be inadequate. Our marketers and strategic business planners have already guaranteed increased growth of tennis demand in the location. Considering that our 18-hole golf course and Olympic sized swimming pool were also essential future inves tments that are now legendary in returns, it is strategically logical to conclude that we now need to extend our tennis infrastructure. Between 2004 and 2007, our court usage increased from 18.4% (by 2,789) players, to reach 47.3% (by 32,816 players). This was a nearly 30% increase of tennis court usage within three years. This rate or growth predicts when our tennis facilities as they are now, will be inadequate. With that kind of growth rate, our tennis courts face maximal over use in less than five years from 2007. Proposal My proposal for the next financial year is to amend the current pricing structure, and make it more competitive. Our tennis facilitates are impeccable in quality and the best in these regions. As such, since we have and we will sustain a maximal demand among players and visitors, we can optimize our profitability by increasing our prices, and being more expensive in our tennis programs. Further, even with increased prices, our tennis facilities are likely to r egister extreme numbers of potential players, as we are now, if not more when occupation increases. As such, I propose that we need to increase our tennis facilities and infrastructure, by building new courts and extending those that are currently operational. This will continue to optimize our revenue generation, not only because of new facilities, but also with the increased pricing structure. It is a highly expensive investment proposal, but the potential optimal returns are as gigantic. Conclusion Building a hotel and residential infrastructure have been central to tradition, our history and the consequent success as was demonstrated by our lucrative villa sales a few years ago. In this understanding, investing in better facilities and preparing our company with an essential expansion of our tennis club is essential. That is my proposal, hoping to maximize on the future returns on our investment, within a market that is most likely going to grow extremely huge in the near future . Thank you. SWOT Analysis The SWOT matrix can be used to analyze the potential benefits of the proposed expansion. SWOT helps profile the Strengths, Weaknesses, Opportunities and Threats of a business proposal. This will help justify the essence of the proposal, based on strategic analysis of future market of tennis courts and tennis facilities. As such, the following is a brief SWOT analysis of the proposal: A) Strengths (Potential returns for the business proposal over possible alternatives). The expansion proposes the construction