Phoenix Consulting Group

Prepared by Group 1:

Habib ABOU SALEHAnthony-George HASBANIRafael MOHREZAlexey SYROEZHKIN

April 15th 2015

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AgendaWho we are?Our clientsResort Business StructureTourism Business Environment BrazilTourism Competitive Conditions - BrazilResort Size Up Major ProblemsHypothesisHypothesisAnalysisRecommendationsAdding ValueHow to Reach Us

Who We Are?We are a Management Consulting Company focused on Strategy, Performance Improvement and Development of Opportunities in Hospitality and Tourism Business

Our Core ValuesThat build our business

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Our Client

Located in FORTALEZA CE, Brazil

Vision - We will go to extraordinary lengths to know our guests, creating emotional attachments by delivering highly personalized service with humility and grace. We will create lifelong memories

Resort Business Structure

The business environment - Brazil

Petrobras have filed charges against 35 people including executives from some of the nations biggest construction firms

Around 12 % interest rate

The Logistics Investment Program (PIL) aims at increasing public and private transportation and infrastructure investments, integrating Brazils highways, railroads, ports, and airports. It encourages expanded transport capacity and reduced operating costs, promoting efficient systems that strengthen Brazils competitive advantage.

Growth Acceleration Program (PAC) has planned and executed Brazils most significant energy, logistics, and infrastructure projects, spurring the countrys rapid growth and sustainable development.7

Tourism COMPETITIVE CONDITIONS - Brazil

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Resort Size Up

Financial Size Up Elusive profitability due to higher than anticipated marketing costs and staff severance packages. Currently suffering from tight cash flow despite the strong interim profit performance. High inventory which reflects inability to turn inventory into cash in a short period of time. Operations Size UpAbsence of formal Quality Management systems ISO 9001 Certification and Quality Control Procedure Abscense of ISO 14001 Certification in Hospitality and Environmental Management Too much inventory in the Warehouse due to the absence of Inventory management. Loss of cash flowHuman ResourcesEmployees turnover Deteriorating relationship between employees due to top management disputes and disagreements Lack of Motivational incentivesTechnology Size UpAbsence of a strategic information system in order to retain customers.

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HypothesesFinance

Technology

Tight cash flow limiting new bank loans to finance sustaining and expansion investments

Operations

Human Resources

Lack of systemic vision and process standardization generating inefficiencies

Lack of team work and poor relationship impacting performance and services 'quality

The implementation of a strategic information system would leverage the level of service and customer retention

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Hypothesis Analysis

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Recomendations

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Adding ValueProfitability through higher occupancy rateToday(Y)Y+1Y+2Y+3PastOperations

HRTechnologyTime

35%57%50%47%45%49%84%57%65%

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Adding Value - NPV x Proposed PriceOccupancy Rate

Increased Gross ProfitY+1Y+2Y+3Average rate229240252USDRooms909090#Occupancy Rate10%20%35%%Gross Revenues$2,061 $4,328 $7,953 Day$61,830 $129,843 $238,587 Month$752,265 $1,579,757 $2,902,803 YearGross Profit$353,565 $742,486 $1,364,317 Year

NPV Operations$331.084 NPV Operations + HR$982.153 NPV full$2.102.425

Price Operations$82,771 Price Operations + HR$245,538 Price full$525,606

* NPV WACC Hotels and Resorts 6,79%** Price not include consultant expenses*** 50% payment before the project start 50% when delivered

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Click on the globe to start

PHOENIX CONSULTING GROUPBrookfield Place, 181 Bay StToronto, ON, Canada+1 416-955-4200

Email: Phoenixconsulting@O2.caSkype: PhoenixConsultingGroupLinkedIn: www.Linkedin.com/in/PCGLTDTwitter: PCGLTDWeb: www.PhoenixConsultingGroup.comHow to reach us

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