It is a complete business plan for my idea to set up a new travel company in Vietnam. It is the one of steps to set up an international company in Vietnam. _2014_ "The most powerful force for change in the world is a new idea in the hands of a leading social entrepreneur"_Ashoka

1. Logo
PRESENTER:
JENNIFER VU HUONG
(HUONGVUVU.HU@GMAIL.COM)
1
BUSINESS INNOVATION AND TECHNOLOGY MANAGEMENT
ZEN TRAVEL - BUSINESS PLAN

2. Business plan - Zen travel 2
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
2009 2010 2011 2012 2013
Number of visitors
The number of international visitors in Vietnam
from 2009 to 2013
(Data Source: Ministry of Culture, Sport & Tourism)
Increase
significantly

3. Company overview
Business plan - Zen travel 3
ZEN
TRAVEL
Size
20 employees 12,400 USD
Location
Hanoi,
Vietnam
Ownership
Private Ltd
company
Zen and
Paul
Ocean Park Building, Dao Duy Anh street,
Dong Da District, Hanoi

4. External analysis2
1 Mission, vision, goals
3 Internal analysis
6 Evaluation and control system
CONTENTS
5 Action plan / Business Model
4 SWOT
Business plan - Zen travel 4

5. External analysis2
1 Mission, vision, goal
3 Internal analysis
6 Evaluation and control system
CONTENTS
5 Action plan / Business Model
4 SWOT
Business plan - Zen travel 5

6. Mission, vision, goal
6
Be the leading travel and related services company of choice, providing
reliable multi-services and innovative options to all customers
To be become the best travel company in Southeast Asia in 3 years (2017)
To be true to the saying: ’Better services/price than the best services/price

7. External analysis2
1 Mission, vision, goals
CONTENTS
Business plan - Zen travel 7
Macro environment - PESTEL2.1
Microenvironment - 5-Forces, KSF2.2

8. PESTEL Analysis
 High political stability (total stability index of 4.3 in 2010)
 Government encourage and highly support investing to tourism
(Money investment and advertisement support)
 Not high tax , plan to reduce tax
 Member of ASEAN, APEC and WTO that opens more business
opportunities
 Advantages:
 Attractive emerging market
 Market oriented economy is developed quickly
 High spending power on tourism
 Low interest rates
 Disadvantages:
 Echange rate fluctuations increased
 Low disposal income
 Low currency exchange rate
 High inflation rates
 High competitive
 Population: big volume, high growth rate
 Social mobility: Standard of living increases, tourism become
demanded
 Education: low level of foreign languages
 Human resource: abundent cheap labor fources
 Traffic: bad conditions and several problems related to quality,
safety, and at prices, traffic jam and water-flood
 Acceptance of new unwellknown center
 Cutural diversity between different regions
 Rapidly developing country in technology
 Many expressways and local transport network are built
and usually upgraded
 Increase quality reduce costs of communication via
Internet and
 Blessed by the nature, with a great ecological and
hydrological diversity
 Low awareness of citizens about environmental health
 High environmental pollution
 Possible to be seriously affected by climate change
 Open-door policy
 Legal system is improved to create a favorable
environment for the development of a multi-sector market
economy as well as a more open and stable investment
environment
31 national parks
7 World Heritages
8 world zones
21 national tourist areas
3,260 kilometers Coastline

9. The spectrum of industry structures
Business plan - Zen travel 9
Perfect
competition
Oligopoly Duopoly Monopoly
Concentration
Entry and exit
barriers
Product
differentiation
Information

10. SUBSTITUTE COMPETITION: LOW
• Tourism demand is forecasted to grow
BUYER POWER: MEDIUM
• Buyers’ price sensitivity: MEDIUM
• Relative bargaining Power: MEDIUM
SUPPLIER POWER: MEDIUM
• Buyers’ price sensitivity : MEDIUM
• Relative bargaining Power : MEDIUM
Intra-Industry Rivalry: MEDIUM
• Concentration: LOW
• Diversity of competitors: HIGH
• Product differentiation: HIGH
•Excess capacity &
exit barriers: NO BARRIERS
THREAT OF ENTRY: MEDIUM
•Capital requirements: MEDIUM
•Economies of scale: MEDIUM
•Absolute cost advantage: HIGH
•Product differentiation: HIGH
•Access to distribution
Channels: EASY
•Legal/ regulatory barriers:
MEDIUM
•Retaliation: MEDIUM
Business plan - Zen travel 10
5-Forces analysis Complements:
JESTAR AIRLINE
SOUVERNIR
RESTAURANT
SHOPPING
ATTRACTIVE MARKET
HIGH INTENSE RIVALRY
> CRITICAL TO ESTABLISH
A SUSTAINABLE
COMPETITIVE ADVANTAGE

11. Key Success Factor
Business plan - Zen travel 11
KSF
What do
customers want?
How does the firm
survive competition?

12. Key Success Factor
 Differentiation and low costs
 Excellence in fulfilling the promise, timely response
 Solid and fruitful strategic alliances
 Training and development system
 Marketing know-how (marketing communication)
Business plan - Zen travel 12
(For the next three years)
- Focus on building a profitable and sustainable business platform
- Establish a market presence that assures short-term and long-term
profitability, growth and success in Vietnam then, Southeast Asia
- Be committed to supporting growth and development in the tourism,
overall economy and the environment of Vietnam

13. External analysis2
1 Mission, vision, goals
CONTENTS
Business plan - Zen travel 13
Value chain analysis3.1
Resources and capabilities3.2
3 Internal analysis

14. Value chain analysis
Business plan - Zen travel 14
Transportation
ZEN TRAVEL
Plane
Bus
Ship
Car
Cyclo
Taxi
Hotel
Resort
Guest-
house
Restaurant
Traditional
food
Bar
Coffee shop
Traditional
activities
Festival
Bar
Disco
Souvenir shop
Shopping
center
Super market
Night market
Beach
Mountain
Orchard
Temple
Accommodation Food Entertainment Shopping Visit experience
Local
hosts

15. Resource & Capabilities
Resource Characteristic
Tangible
Financial  Invest by ourselves (20 people)
Physical
 Size: 20 members
 Corporate with the other food/transport/flight companies
 Office at Ocean Park Building, Dao Duy Anh street, Dong
Da District, Hanoi
Culture  High collaboration, no one is smarter than all of us
Intangible
Technology  All staffs are trained in tourism, MBA,…in foreign countries
Reputation  New brand name
Human
 Enthusiastic and confident teams: high soft skills and
high understanding different cultures; nonstop learning
with several training courses delivered by experts
Business plan - Zen travel 15

16. Resource & Capabilities
Resource Importance Relative
strength
Capabilities Importance Relative
strength
R1: Financial 8 5 C1: Marketing 9 4
R2: Size 5 5 C2: Tour
development
9 6
R3: Location 3 8 C3: Tour operating 8 7
R4:Technology 6 8 C4: Corporate
relations
8 6
R5: Reputation 8 2 C5: Financial mgt 8 3
C6: HRM 4 3
C7: IT 7 8
Business plan - Zen travel 16
Both scales range from 1 to 10
(1= very low, 10= very high)

17. Resource & Capabilities
Business plan - Zen travel 17
Relativestrength
Strategic Importance
R1R2
R3R4
R5
C5
C2
C4
C3
C1
C6
C7
1
1 10
10

18. External analysis2
1 Mission, vision, goals
3 Internal analysis
CONTENTS
4 SWOT
Business plan - Zen travel 18

19. SWOT Analysis
Positive aspects Negative aspects
STRENGTHS WEAKNESSES
Internalfactors
- Enthusiastic and confident teams
- High quality training systems
- Good relationships with local authorities,
residents and youth community at the
visited destinations
- Poor reputation
- Finance problems
OPPORTUNITIES THREATS
Externalfactors
- Members of WTO, ASEAN
- High population volume and growth rate
- Unstable politics in neighboring nations
- Having a great deal of beautiful and
unexploited sightseeing
- Possible to open branches
- Possible to develop an international
brand name
- Growing competition from
local companies and
international companies
- Same services will be
implemented by competitors
- Languages barriers
19

20. External analysis2
1 Mission, vision, goals
3 Internal analysis
CONTENTS
5 Action plan / Business Model
4 SWOT
Business plan - Zen travel 20

21. Marketing plan – Market Analysis
Business plan - Zen travel 21
Percentage of market by nations
Vietnam
Southeast Asia
Other Asian countries
Europe
America and Austrilia
Others
: foreign customers
low prices, convenience, differentiation
(quality of services, tour guides, transport, accommodation, traditional food)

22. Marketing plan – Main competitors
Business plan - Zen travel 22

23. Marketing plan – Sales strategy
Business plan - Zen travel 23
Services Popular of each
service to
customers
Zen travel (me) National competitor
(Viet travel)
International competitor
(Couchsurfing)
Find hosts *** Free Not available Free
Entertainment ** Free Not available Free
Offer
temporary jobs
** Free Not available Not available
Tours *** 80 USD domestic
200 USD Southeast Asia
150 USD domestic
300 USD Southeast Asia
Not available
Adventure tours ** 300 USD one night one day Available but not regular Not available
Accommodation *** At the price of cooperating
hotels/hostels
Not available Not available
Transportation *** At the price of transport
company
Higher Not available
Food *** At the price of restaurants in
visited places
Higher Not available
Shopping *** At the price of souvenir
shopping center
Not available Not available

24. Operational plan – Channels of distribution
Business plan - Zen travel 24
Internet Phone
Office Community
Conferences

25. Organizational plan – Organization chart
Business plan - Zen travel 25
Center
Administration
Marketing team
Flyer Online support Forums Websites
Website
development
team
Receptionist
Tour guide
team
Event
management
team
Action team Speakers DJ team MC
Volunteers
Management
board(Zen and
Paul)
Key
management
personnel
Passion
Power
Patience

26. Financial Analysis
 Starting year: 2015
 Estimate of start-up costs
• Fixed costs
• Operating costs
 1 year forward
 2 years forward
 3 years forward
 Profit monthly, yearly, break-even
 Projected income
 1 year forward
 2 years forward
 3 years forward
Business plan - Zen travel 26

27. Start-up cost and operating cost
Operating cost Year 1 (2015) Year 2 (2016) Year 3 (2017)
Payroll $100,000 $150,000 $200,000
Sales and Marketing and Other Expenses $15,000 $17,000 $21,000
Rent $12000 $12100 $12500
Travel $500 $1000 $1500
Insurance $12000 $13000 $14000
Maintenance $10000 $0 $0
Payroll Taxes $0 $0 $0
Others $500 $700 $900
Total Operating Expenses $150,000 $193,800 $249,000
Business plan - Zen travel 27
Start-up Requirements
Start-up Expenses
Legal $300
Equipment $500
Brochures $500
Insurance $500
Rent $100
Others $500
Total Start-up Expenses $2400
Start-up Assets
Cash Required $10000
Total Requirements $12400

28. Profit monthly
Business plan - Zen travel 28
-4000
-2000
0
2000
4000
6000
8000
10000
12000
14000
16000
Profit monthly (USD)
Profit monthly (USD)
Start getting profit

29. Profit yearly
Business plan - Zen travel 29
0
20000
40000
60000
80000
100000
120000
140000
Year 1 (2015) Year 2 (2016) Year 3 (2017)
Profit yearly (USD)
Profit yearly (USD)
Nonstop increase

30. Break-even Analysis
Business plan - Zen travel 30
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
0 50 100 150 200
Turnover(USD)
Cost(USD)
Break-even when the number of sold products is 120

31. Projected Cash Flow
Business plan - Zen travel 31
-20000
0
20000
40000
60000
80000
100000
120000
140000
Cash follow
Cash balance
Start getting profit

32. External analysis2
1 Mission, vision, goals
3 Internal analysis
6 Evaluation and control system
CONTENTS
5 Action plan / Business Model
4 SWOT
Business plan - Zen travel 32

33. Evaluation and control system
 Track results of the business plan and make sure that we
implement it
 Maintain the market segment focus
 To ensure that we are meeting their expectations at all
times
Business plan - Zen travel 33

34. Conclusion
Business plan - Zen travel 34
Implementation
Investigation and adjustment
B Business plan
Size Services Partners

35. ‘Fly feeling’ with ZEN TRAVEL
Business plan - Zen travel 35

36. References
 Lectures of professor Dr. Pilar Marquès Gou
 "International visitors to Vietnam in December and 12 months of 2011". Vietnam National
Administration of Tourism. Retrieved 26 January 2012.
 http://www.vietnamtourism.gov.vn/english/index.php?cat=012041&itemid=6308
 The Economist 2013
 Ministry of Culture, Sport & Tourism
Business plan - Zen travel 36

37. Logo
ZEN TRAVEL
37Business plan - Zen travel