Enreach Hotel Business Plan

1. Enreach Enterprise LLC
Enreach Hotel
Business Plan
Business Seminar Final Project
 Albertus Billy Mahaputera
 Priscillia Wijaya
 Christian Tang
 Januarika
 Gabriella Andria
 Adrian Hartanto
Supported by:

2. Table of Contents
1. Introduction
2. Executive Summary
3. Marketing
- Research & Analysis
- SWOT
- Market Size
- Competitors
- Market Strategy
- Pricing
- Advertising & Promotion
- ProductMix
- Accommodation
- Food & Beverage
- Recreation
- Conference Center
4. Finance
- Financial Plan & Analysis
5. Operational
- Hotel Design& Layout
- Hotel Details
- Critical Risk
6. References
7. Appendix

3. Introduction
Business description
Enreach hotel is a 4-star hotel and the first member of Enreach Enterprise
LLC-the new enterprise based in Jakarta. With Hotel's strategic location,
elegant decoration and top quality facilities, we provide professional
services for your quality stay in Makassar. The hotel is 18-story high and
providing 3 types of rooms:Standard room for 256 units, suite room for 8
units, and also cottage for 8 units. Enreach provide a wide range facility to
satisfy customers. For business travelers, we have 4 rooms for
conference/meetings, one ballroom, and including all necessary
conferencing equipment and security.
Business formation
Enreach hotel was started by Enreach Enterprise in 2011. The company
form is a Limited Liability Company, LLC. Enreach Enterprise is based in
Jakarta and will employ approximately 70 people.

4. Managers/Directors
The general manager is Mr. Adrian Hartanto
The Board of Managers/Directors currently is starting up with the 5 people
in different division, which are Albertus Billy Mahaputera, Christian Tang,
Gabriella Andria, Januarika, and Priscillia Wijaya. They have the principal
responsibility for fulfillment of the hotel's mission and the legal
accountability for its operations. As construction proceeds,
managers/directors will be added many people with highly skill and
experience that fits into Enreach requirement itself.
Management team
Enreach’s management team will pass all the jobs and skill training in order
to have direct knowledge of the hospitality industry and will possessthe
necessary professional administration skills. Our team will include a chef,
front office, chief engineer, security, IT manager, housekeeping marketing
personnel, and professionals with accounting experience. The team will
tailor to the needs of the corporateclient and will provide complementary
personal services where needed.

5. Executive Summary
Mission
“To provide excellent and enriching services to our guest”
The statement above is our commitment and our mission to provide the
best hospitality experience in the area.
With this objective in our mind, we wish to achieve local, national, and
international reputation for the incoming years as a top, high-end,
consumer brand.
Vision
“Quality enrichment for our consumers, shareholders, and stakeholders”
In Enreach Enterprise, it is our philosophy to give everyone our full
contribution in delivering services at the highest quality.
Enreach strives to fully pursue the highest standard in the hospitality
services, not only for our customer, but also for our shareholders and
stakeholders.
Location
Enreach Hotel will be located in Makassar, Indonesia. This particular
location offers strategic positioning because of the geographical aspect, the
accessibility, and also the potential growth of Makassar as a tourism site.
The exact location will be explained in later details.

6. Target Market
Enreach’s primary target market would be travelers from inside the country,
specifically families and business travelers. The reason we chooseto focus
on national tourist first is to gain national fame. We think that Indonesia has
a lot of potential in creating tourism and tourist. An early start based on this
potential could give us the lead in the hospitality market.
Objectives
Main Objectives:
 Creating a local organization with international standards
 Providing opportunities for local labor force with employments and
trainings
 Helping to promote Makassar as an ideal tourism site
 Promoting the local culture to national and international markets
 Partner with universities to provide internship opportunities
 Increasing awareness in the local environment and protecting it
 Maintain quality accommodation and services
 Keep improving Enreach facilities and services to the highest
standard
Licenses
Enreach Hotel Makassar will obtain the following required licenses:
 Hotel and restaurant operating license. We have filed registrations
with the local Makassar city administration office concerning legal
rights and laws.
 All the necessary environmental permits from local, regional, and
national regulatory agencies

7. Marketing
Research and Analysis
Target Customer
In general, Enreach main customers will be the tourists of Makassar, people
who are looking for vacation due to its location near Trans Studio area and
Losari Beach. However, since the number of hotels in Makassar is still
relatively medium-low, Enreach also aim the business travelers, who are
usually travelling to the Makassar only for short period.
Age
Basically, the target market will involve various group of age, since it aims
more to the people who are travelling for holiday, especially family.
Nevertheless, Enreach also intended to grab business travelers, hence can
be said that Enreach target people around 21+.
Gender
Both Male and Female will be Enreach target gender
Location
General target location for Enreach customer will be both International and
National Citizens. However, Enreach will more concern on National
residents who are coming out from Makassar due to Indonesia itself is on
developing phase.

8. Income Level
Enreach is a 4-star hotel, which means the price is relatively high. In
addition, Enreach Hotel is designed for people who are ready to spend their
money to get away for a period time. Therefore, Enreach target customer
income level should be laid on Middle High Income Level customer.
Occupation
Occupation will be varied since Enreach is aiming people who are looking
for vacation, not only for businessman even tough one of the target
customer is business traveler.
Education Level
This factor will not be the basis for segmenting the customer profile.
General
Normally, the group of Enreach customers can be broadly divided into two
groups:
- Tourist: Trans Studio, which is one of the main tourism objects in
Makassar, is located near the Enreach. Trans Studio can be one of
Enreach tools to attract the customers. Visitors may come for many
different reasons other than business. These visitors can be couples,
families, or individuals.
- Business Travelers:Since the number of Business Hotels in
Makassar is not high, Enreach also aims the visitors who are coming
to Makassar with business needs. The location of Enreach, which is
located on a well-known area in Makassar, will becomeone of the
best choice for business people

9. SWOT
The following analysis highlights the internal strengths and weaknesses of
the Enreach Hotel and the opportunities and threats facing Enreach Hotel in
Makassar tourism.
Enreach hotel will constantly improve performance based on consumer
critics and responses
Strengths
 Excellent location, full of tourism sites and easy transportation
 High quality service with international standards but local pricing
 Environmentally friendly building
 Good supportfrom the local community
 Organization structure composed ofinternational and local employees
 Experienced staff member from across the world
 Always open to feedback and recommendations
 Complete facilities for all ages and purposes
 Security and safety is highly maintained
 Local fresh quality ingredients for our restaurant with local cuisine
 Low competition in the area

10. Weakness
 New brand name.
 Hotel conceptand design is quite common in the market
 Advertising might not be strong enough for our early opening
 Pricing could be a problem early on
Opportunities
 Makassar is one of the developing cities in Indonesia
 A lot of potential in tourism industry
 There is a lot of spacein nearby area, possible area to be developed in
the future
 With growing tourism in Indonesia, education in tourism is also
expanding. Many skilled workers will be available
 The presidential election
Threats
 Possible new competitors in the area
 The presidential election
 The area does not have a certain uniqueness

11. Market Size
Based on Badan Pusat Statistik Indonesia, growth of tourism in Indonesia
has been increased around 8.5% from February (702.666) until March
(765.607) 2014. While according to m.bisnis.com, number of tourism to
Makassar itself has been growing around 18% (1.864 people) on September
2013 compared to a month before. These numbers will be Enreach target
market size. Enreach does not want to aim local citizens due to excessively
infrequent local citizens that prefer to stay on hotels inside their hometown,
except for business purpose.
Additionally, Persatuan Hotel dan Restaurant Indonesia (PHRI) said that
holiday period for students did not bring significant impact to number of
Makassar visitors. Furthermore, it only gives around 2 – 3 % to the total
number of tourists. Besides that, the total of Makassar Hotels’ customers
grows significantly (around 60-65%) on post-holiday (June-July). On that
time, most Hotels are occupied for occasional purposes such as, meetings,
seminars, conferences, incentives, and exhibitions).
In conclusion, it is estimated around 1.800 individual with booking rate
80% of total room number will become Enreach target market for each
month.

12. Competitor
According to the booking.com, recently there are around 82 hotels in
Makassar. However, Enreach only counts Colonial Hotel as the direct
competitor regarding the location. This hotel is a 3 stars hotel, which is
located on Metro Tanjung Bunga, same street as Enreach. It has 5 type of
room with the total number of 57 rooms. Have several facilities such as,
non-smoking / smoking room, safety box, air conditioner, 32” LCD TV,
mineral water, bathroom amenities, 16 local & International channel. The
rate range around Rp.500.000,00 – Rp. 1.200.000,00 /night. It also has
restaurant, laundry, and ironing service. Colonial is 5 minute drive to Trans
Studio and 35 minute drive to Sultan Hasanuddin International Airport.
In term of competing with Colonial, Enreach has advantages regardless
Colonial marketing segmentation. Enreach has various type of rates,
depends on the room type and season. The lowest one is Rp. 575.000,00 /
night (Standard Single / low season) and the highest one is Rp.
3.700.000,00 / night. This price is very affordable think that Enreach is 4
stars hotel. Almost all Colonial facilities also owned by Enreach with
another additional amenities such as, high speed internet service all over
building, 15 conferences room with additional 1 ballroom, 24 hour
medical service, swimming pool, fitness centre, bilyard, tennis table,
Garden, also free shuttle service to the trans studio, and free pick-up and
drop-offto Airport.
However, indirect competitors will come from other well-known hotels in
Makassar regardless its location.

13. Market Strategy
As a new Hotel in Makassar, there will be difficult time to gain the customer
at the first time, so for the first few years Enreach Hotel will need to be
aggressively attracting new guests. Guests then will be asked for surveys and
feedback with a purpose to improve Enreach system and quality of services.
On the first opening, Enreach will give 50% - 65% discount rate on the first 6
months to attract customer awareness. Feedback and critics are also crucial
as Enreach will use them to improve our services and facilities.
However, the product and services line offers the following additional
advantages to attract customers:
For Families:
For families, Enreach offer a huge playground in the garden and
accommodation suited for children and babies. Also we have a free shuttle
to Trans Studio.
For Business Travelers
For business traveler Enreach has 15 meetings room and a ballroom. There
are facilities provided like fax, printer, computer, wifi in every room, and
24 hours secretarial services to help you out whether you need help. Those
who wish a picked up and drop off from the airport, can directly make an
appointment first without any charge. For business manner, Enreach will
give 24 hours front desk, which is very beneficial for the business traveller
who is looking for emergency supportand service.

14. Forsingle and group travel
For those who want to experience Makassar, Enreach has a partnership
with PrimaTrans car rental and Jappa Travel agent providing a variety of
tours and also car rental service.
Forphysically impaired
Enreach is fully supported by 24 hours doctor in case of emergency. Also
there are facilities to support those who need special treatments like
wheelchair and braille words in the lift. Emergency stairs in every floor and
alarm buttons for immediate medical attention.
Additionally, Enreach wants to gain a rating on Perhimpunan Hotel dan
Restoran Indonesia (PHRI) as high as possible because approval from this
organization is so meaningful for Hotel in Indonesia. This effort can be
obtained by keeping up the quality and services of Enreach itself with the
supportfrom customer feedback and suggestion.

15. Pricing
Enreach have 3 types of room with different services on each of them. The
price rate is various as listed below:
Room Type Information Rate (Low) Rate(High)
Standard Single Bed Rp. 1.075.000,00 /night Rp. 1.575.000,00/night
Double Bed Rp. 1.500.000,00 /night Rp. 2.000.000,00/night
Suite - Rp 2.000.000,00 /night Rp. 2.500.000,00/night
Cottage 2 Bedrooms Rp. 3.250.000,00/night Rp. 4.000.000,00/night
3 Bedrooms Rp. 3.700.000,00/night Rp. 4.700.000,00/night
Advertising and Promotion
Enreach is planning to gain awareness from all over Indonesia 2 month
before the Grand Launching. In that condition, Enreach will be promoted
through social medias such as, newspapers advertising, radio advertise,
commercial Television, billboard on Makassar, Business Magazine, and
Internet advertising on some popular websites.
It appears that advertising and promotion is one of the most effective parts
that bring success to the hotel. Therefore, Enreach is willing to spend a
large amount in advertising and promotion
Grand Opening
Enreach try to attract awareness of customers on Grand Opening ceremony.
However, this ceremony invites only some officials like Governor, owner,
sponsors, etc. This ceremony will include several events, such as firework,
singer, traditional dancer, and many others.

16. Electronic Mail
Enreach will send invitation regarding description of Enreach and Grand
Opening to several potential customers (Business Traveller), including
companies as well. The following email will be send two weeks after the
first one and it will describe the opening discount program of Enreach.
Newspaper and Magazine
Launching of Enreach will be sent through several newspapers and
magazines (mostly business magazines). The description of Enreach also
will be described on there.
Radio and TV Commercial
Advertising through commercial will be conducted on first 6 months.
Guest Reward Program
Membership program for Enreach customer will be delivered to some
benefits, such as discount and point system. This point can be exchanged to
rewards like, souvenirs, restaurant ticket, or ticket for staying in Enreach
itself.
Flyer, Banner, and Poster
To spread news regarding Enreach, flyer, banner, and poster will be
delivered to several places such as, tour and travel agent, restaurant,
tourism objects all around Indonesia, and several offices. In this banner and
poster, Enreach also give information about Makassar tourism objects in
order to attract tourists to come as well.
Website
Technology has been rapidly developed lately, as well as development of
website. Enreach is no exception with this technology and therefore, a
website will be created, which will be maintained by the IT department.

17. Marketing Product Mix
Accommodation
Enreach Hotel has 3 different types of rooms (Standard, Suites, and
Cottages), which are facilitated with full facilities such as, private balconies,
high speed-internet access, Air Conditioner, Cable TV, safety box,
bathroom, work desk, and small bar with a refrigerator. Standard Room has
2 available options to choose in term of bed (single & double), also has
fully facilitated like mentioned before. This room is suitable for a short-trip
guest. However, Suite Room provides double beds with an extra city +
beach view. This room more suggested for a honeymoon couple. There is
also Cottage, which is designed for family tripper. There are 2 available
options for cottage. First option has 2 bedrooms, one Master bedroom, and
one Single bedroom. While another one is consist of 3 bedrooms, one
Master bedroom, and two Single bedrooms. Moreover, it is facilitated with
a complete kitchen set, living room, and dining table.
Food – Room Service
Enreach will provide buffet breakfast for the tenants at the restaurant. Each
food will be delivered from professional chef, who was elected based on
high standard of the hotel. The Breakfast period will valid 06.00 – 10.00
a.m. However, Enreach still provides room services for the customer, who
wants to order the foods from the restaurant. Also, Enreach’s kitchen will
ready to serve convention customers who have meeting on the hotel.

18. Recreation
Enreach Hotel is facilitated with recreational facilities such as, swimming
pool, tennis table, bilyard, and fitness centre. All these facilities are
available only from 06.00 – 21.00 and can be accessed with using hotel
room access card only. Additionally, Enreach also has Garden for their
customer to get a plantation shades. This facility also can be used for many
occasions, such as wedding party, birthday party, barbeque, and many
more.
Conference Room
Enreach offers 15 conference rooms with additional 1 ballroom, which can
be used for meetings, seminars, party, etc. Each conference room can suit
up to 20 people, while for the ballroom has capacity of 400 individual
(tables) – 700 individual (chairs). Other extra equipment such as projectors,
fax, and multimedia can be provided later by request.

19. Finance
Financial Plan & Analysis
Profit & Loss
As shown in the chart above, Enreach hotel will experience a Net Loss of
IDR 2,369,619,806. This is due to the high initial starting costEnreach has.
However, by the second year, our financial forecast will show that there
will be a net profit of IDR 1,080,287,344 and it will increase in year 3.
Financial Position
There are no expansion done within three years, therefore, the fixed asset
each year remain the same. On the other hand, current asset will rise along
with the raise of profit.
IDR(4,000,000,000)
IDR(2,000,000,000)
IDR-
IDR2,000,000,000
IDR4,000,000,000
IDR6,000,000,000
IDR8,000,000,000
IDR10,000,000,000
1 2 3
Net Income/Loss
Net Income/Loss
IDR484,000,000,000
IDR486,000,000,000
IDR488,000,000,000
IDR490,000,000,000
IDR492,000,000,000
IDR494,000,000,000
IDR496,000,000,000
IDR498,000,000,000
1 2 3
Total Assets
Total Assets

20. Operations
Hotel Design & Layout
Level 4-13, 17, 18
Level 15
Level 16
Level 14

21. Indoor Restaurant
Kitchen
Outdoor Restaurant
Changing Room
and Shower
Sauna, Steam, Yoga,
Fitness Room
Level G

22. Level 1
Level 2
Level 3

23. Hotel Details
TotalArea: 31,523.1 m2
 Hotel: 2,415.5 m2
 Ballroom: 2,667.6 m2
 Parking Space:2,250.7 m2
 Cottages: 6,755.2
 Sidewalk and Landscape: 17,434.1 m2
Total Rooms:256 rooms
 Standard Room: 24.91 m2
 Level 4 – 13: 180 rooms
 Level 15 – 16: 32 rooms
 Level 17 – 18: 36 rooms
 Suites: 51.36 m2
 Level 14: 8 rooms
Meeting Rooms
 Level 1
 Meeting room (45.3 m2): 2 rooms
 Ballroom (1100 m2): 1 room
 Level 2
 Meeting room (48.2 m2): 5 rooms
 Level 3
 Meeting room (41.5 m2): 6 rooms
 Meeting room (45.3 m2): 2 rooms
Restaurants: Level G
 Outdoor:159.1 m2
 Indoor: 800.23 m2
 Kitchen: 327.8 m2

24. Hotel Facilities: Level G
 Kiddy’s Pool: 135.9 m2
 Swimming Pool: 369.277 m2
 PoolBar: 46.98 m2
 Changing Room: 75.4 m2
 Sauna, Steam & Yoga: 149.68 m2
Cottages
 2 Bedroom: 198.7 m2
 RoomArea: 36.6 m2
 Total: 6 rooms
 3 Bedroom: 217.6 m2
 RoomArea: 37.2 m2 & 32.6 m2
 Total: 2 rooms
Budget Plan
JOB DESCRIPTION TOTAL COST
Structure, Infrastructure, Foundation Rp. 91,100,000,000
Architecture Rp. 93,300,000,000
Interior and Furniture Rp. 16,400,000,000
Mechanical and Electrical Rp. 52,700,000,000
Contingency Rp. 17,600,000,000
Permission Fee Rp. 4,500,000,000
Consultant Fee Rp. 4,500,000,000
Pre Opening Expenses Rp. 2,700,000,000
Technical Hotel Operation Rp. 980,000,000
Land Cost Rp. 10 Million/m2 = 314,155,000,000
TOTAL COST Rp. 597,935,000,000

25. Design and interior
Enreach hotel using a concept of minimalistic hotel which gives a modern
impression with white as the main colour of the interior of this hotel
combined with grey colour. All the design and the furniture harmoniously
set to embrace the minimalistic concept. The lighting itself is using
concealed lighting to add the modern trace to every space in this hotel.
Location
Enreach Hotel located in Metro Tanjung Bunga, Makassar, South Sulawesi.
This location has been selected because as we know that Makassar is
considered as one of the fastest developing city in Indonesia. Metro
Tanjung Bunga has almost all the accessibility that customer needs while
leisure in our hotel such as shopping mall (GTC Mall), theme park(Trans
Studio Resort Makassar) and Losari beach. This hotel is open for business
24/7 throughout the year.

26. Location Description
Immediate Area
Type of area City Side area and 40 minutes from airport
Adjacent uses Shopping Centre (GTC Mall), Theme Park
(Trans Studio Resort Makassar), Losari
Beach
Benefits Busy area as the location near
entertainment area
Proximity
Customer Type Mainly business traveller also tourist who
loves water sports
Potential Customers People interested investing in Makassar,
local or international guest
Competitors Only 1 main competitor called Colonial
location of the hotel is located at the same
street but Enreach has an advantageous of
1 star more than the Colonial Hotel
Traffic Volume
Situation Easy access to main road
Pedestrian Active pedestrians near this area
Periods People going to and from office, 7 in the
morning and 4 in the afternoon
Accessibility
Close to major streets 15 minutes from main street
Easy entrance/exit 1 main entrance with security check and 1
exit
Visibility
From road Visible from major roads
Appeal of exterior New construction as of 2014
Landscaping Landscaped area inside the hotel

27. Shifting
 Security
This division divided into several shifts to provide the best working
period and the effective security for Enreach Hotel. Each shift for
security officers are not more than 8 hours and would be available seen
in the key area of the hotel anytime. The shifting would be done if the
next shift officer already arrives at the specific station which already
assigned to enhance the safety of the hotel by preventing the station
from being unguarded.
 House Keeping
For housekeeping, the shift is divided into 3 period of time: morning,
afternoon and night shift with specific job and timing every day. There
are 4 main positions in this division which is Head Housekeeper, Floor
Housekeeper, Room Maid and Linen Maid. The Head Housekeeper is
mainly in charge of supervising the other 3 division. The Floor
Housekeeper also supervises the work of lower division like Room
Maid and Linen Maid. The Room Maid in charge of cleaning in and out
of the room. The room cleaning is done every day to ensure the
cleanliness of the room during specific time of the day. Last but not
least is Linen Maid which has a responsibility of towels and sheets
replacement. The stocks and laundry schedule also is the part of Linen
maid responsibilities.

28. Accommodation from airport
Enreach will provide accommodation from or to airport without additional
charges by having an appointment to pick up in advance of minimum one
day prior to arrival. The trip itself spends around 40 minutes from and to
the airport.
Popular tourist destination
Besides business travelers as our main target, tourist who loves water sports
activity would be Enreach target because Makassar is well known for its
beach especially Losari Beach. Located near Trans Studio Resort would
also attract customers to stay at our hotel.
Premises
Enreach has a total area of 31.000m2 which includes the building itself, the
parking spaces and all the operations of the hotels. The total room of
Enreach is 256 rooms inside the building and 8 resorts outside the building
which has the view of Losari Beach. The cottage has 2 types of bedroom, 2
bedrooms and 3 bedrooms with total spaces of 198.7m2 and 217.6m2
respectively.
The rooms itself divided into 3 types. First is the Standard Single Bed room
located at 15th and 16th floor with a total of 32 rooms available with an area
of 24.91 m2. Second type is the Standard with Queen Size Bed of 100
rooms and two single size beds of 80 rooms spread between 4th until 13th
floor and 17th along with 18th floor which has also a total area of 24.91 m2.
Last type is the Suites room located in the 14th floor and having a total of 8
rooms with an area of 51.36 m2.

29. Parking
Full capacity of 500 available parking lots. Valet parking also available to
facilitate customer needs. Parking spaces for customer and staff are
separated to maximize customer’s ease of access. With the single space
detection system which will inform whether the parking space is available
by giving out green light and red light if the spaceis already taken.
Maintenance
Regular maintenance by Enreach Hotel is done to prevent the unwanted
cost that may occur if the system and management in this hotel fails to
operate when needed. The maintenance itself divided according to several
parts. Maintenance for repairing the wear out condition of equipment as
well as scheduling for immediate replacement if needed, maintenance for
the software used in the hotel system such as the booking system and the
hotel website, maintenance for the personnel to provide the best strategy of
effective performance while doing the reparation and replacement of the
equipment. This maintenance policy could change in the future if new ideas
which could improve our system arise.
Training
The training distinguished into top management group, supervisory
management and the front line employee which directly interact with the
customers. The top management includes the general manager, directors,
managers and assistant manager from every departments available in the
hotel which mainly taking care of the decision making. With this kind of
responsibilities, training like building proper economic view, forming sales
strategy, marketing and cost controlling would be suitable for this position.
Supervisory management group includes the supervisor of the hotel which

30. trained for the professional knowledge, customer services and dealing with
guest complaints. The front line staff trained for the technical competencies
and working attitudes while greeting customer to improve the atmosphere
at our hotel. There are also content training based program such as
Apprentice training to introduce hotel general information, Certification
training to get professional approve for the practical and theoretical,
Simulation training to improve the effectiveness of the job handled by the
staff and Language training which is required for the hotel staff speaking of
minimum one or two foreign language either passive or active.
Gardening
Regular watering needed to obtain the maximum beauty of the
garden. The watering itself is scheduled once a day in the morning to keep
the freshness of the garden. For the garden walking path, Enreach Hotel
will use house rubble. The reason Enreach Hotel uses house rubble is to
minimize our cost and in the other hand, house rubble will give a natural
look to the walk path of the garden because the texture of the rubble
compliments the natural look of the garden itself. Other option, Enreach
Hotel will use dimension stone. Dimension stone is not as cheap as the
housing rubble but it will give more natural look for the walk path. Both
stone selections have advantage in common it is the stone is not slippery
when the walk path is wet with rain.

31. Organizational Structure
General Manager
Sales &
Marketing
Sales Director
Public Relation
Director
Revenue Manager
Innovative
Marketing
Finance
Accounting
Auditor
Head Cashier
Operational
Security Engineering Critical Risk IT Housekeeping
Head
Housekeeper
Linen
Housekeeper
Floor
Housekeeper
Food & Beverage
Executive Chef
Banquet Manager
Restaurant
ManagerCC
Room Service
Human Resource
Front Office
Reservation
Manager
Chief Operator
Duty Manager

32. Critical Risk
Similar to other business, the hospitality industry is not accident free. In
fact, hospitality industry is more prone to accidents and hazards than any
other sectors. Here in Enreach Hotel, we take our pre-cautions to the very
limit. It is in our priority to maintain safety for our customers and our
employees. Enreach strive to main the standards that the HACCP
maintains.
However, accidents can happen even with us taking precautions to the
extreme. This section will explain the emergency step that Enreach will
take if any form of accident should ever happen in the hotel.
Fire
Whenever fire alarms rang or fire sprinkler turn on, if it’s happen only in
one room, we will immediately check on the room and make sure
everything okay. And if big fire appears, all the employees that have been
trained for this will help our customer to the evacuation place. Emergency
lights will appear and guide the customer to exit way. All the employees are
responsible to notify the manager before taking action and orders to first
investigate a fire alarm before calling the fire department or notifying
guests. Enreach have to make sure first because premature notification of
guests due to false or nuisance alarms always concerns hotel management
because they don'twant to inconvenience guests.

33. Earthquake
If the hotel is dealing with earthquake, Enreach hotel will firstly make sure
of the earthquake scale, whether it’s just small scale of earthquake or a big
scale of earthquake that can lead to danger. If it is just a small earthquake,
we would make an announcement that everything is under control and
going fine, several employees are assigned in each story to make sure all
guest feeling safe. And if it is a big scale of earthquake, Enreach will make
a direct announcement and turn on the emergency light to the emergency
exit and straight to the evacuation area. All the employees are assigned to
help each customer before they taken care of their own.
Tsunami
If there’s a tsunami alert, announcement are directly come out informing all
the guests to come out immediately at that time, and guide them to
evacuation place, when the guest gather, we guide them to safe location
that above 100m of sea level. The guest safety is our number one priority.
Employee accident
To run the business, we need workers to operate the hotel. However,
workers may make mistakes and lead to hurt themselves. For example,
food poisoning, if left unrefrigerated, or if meat or poultry is undercooked,
hotel restaurant food can poison the customer. Besides that unsanitary
kitchen conditions, employees with unclean hands, and improperly
sterilized utensils can all transfer bacteria to guests. And also burns can
occur when hotels set hot water thermostats too high. Showerheads can
flow scalding water on an unsuspecting guest's skin, resulting in first, and

34. sometimes second-degree burns. Irons with faulty gauges or switches that
fail to shut down properly can easily burn a guest's hands or workers who
work in the laundry part, resulting in scarring. Similar to fire disaster, the
solution is to give all employee insurance. Therefore, whenever bad
accident happens, the medical cost will be covered by insurance.
Furthermore, we have to make clear standard operation to minimize this
accident happening, such as giving new workers training first before they
operate the hotel.
Loss of key employee
Not all employees can be given certain task, especially task that needs extra
trust and responsibility, such as managerial position. Key employees are the
employees that have important tasks and influence to the company. Even
though company has given high salary and best facilities, key employees
can leave for other reason. To assign somebody new to this position is not
that easy and this vacancy may hamper daily operation.
Solution for this problem is to make resign policy that employee that want
to resign must inform company. By doing so, it gives time for company to
seek replacement. While looking for the vacancy, company can assign
employee who usually works with the leaving key employee as the
substitute or even get that position.

35. Production cannot meet customers’ demand
Hotels have many decisions that need be careful to decide it such as
capacity decision, quality decision and the others. In capacity decision,
there are long term and short term decisions. In short term situations, hotels
must make sure that they have enough employees to register arriving guests,
to clean hotel rooms, and to provide food and beverages to customers.
These decisions must be made carefully to avoid excessive labor costs from
having too many employees for the number of customers being served. The
other is quality decision. The decision relating to quality is not “how much”
quality to have. If asked whether they support high quality in their
organization, virtually all managers will respond enthusiastically that they
fully support high quality! Rather, the quality of services is determined by
numerous decisions throughout the organization that have both long-term
and short-term consequences for the organization’s quality performance.
For example, while all managers may say they support quality, how many
will support the capital expenditure to purchase new equipment that can
meet tighter tolerance requirements more consistently? The outcome of
these decisions will most certainly affect an organization’s ability to
produce outstanding quality in products and services. Quality improvement
efforts require a great deal of analysis and teamwork, as well as a
determined effort to make quality a top priority in the organization.
Improving quality requires everyone to adopt a “continuous improvement”
philosophy, where everyone approaches their work with the view that there
are always opportunities to improve on the organization’s key performance
measures. Continuous improvement efforts are complex, multidimensional,
and require partnerships among workers, management, suppliers, and
customers.

36. Booking is lower than expected
Booking lower than expected is classic problem for all startup hotels. Even
though we have prepared our business plan well, in reality we do not know
how the markets response to our brand new hotel. In our business plan, we
set the booking rate to 80% of total rooms but it may less than that. Thus, it
will affect hotel’s profit lead to the delay of our business plan schedule.
Therefore, in case of lower booking rates, the emergency measure that we
should take firstly is to aggressively attract consumer first by giving
discounts rates and promotions. The idea here is to gain more customers so
that we are able to spread our name by using the word-of-mouth media. A
slight loss may happen during this period, but the potential increase in the
future should make this strategy a worthwhile choice to make. Enreach will
also cooperate with travel agent and online ticketing company to advertise
Enreach Hotel.

37. Harvest Strategy
Liquidity event
In the beginning, hotel’s capital is divided into 2, 60% for the original
owners of Enreach Enterprise LLC, and 40% for the hotel’s sponsors. Each
owner has around 10% company’s share. For 2 years, capital cannot be
disbursed and all the profit will become hotel’s modal. After 2 years,
whenever an owner want to cash their shares and out of this business,
liquidity event will happen in which the remaining owner has to cover the
share that had by the leaved owner or look up for substitutes to cover it.
After the first 2 years, profit will be distributed to all shareholders and the
distributed profits will be discussed depends on hotel’s condition at that
time. Whenever all of owners want to leave the business, sale of business
happens and the sale will be distributed according to owned shares.
Continuity of business strategy
This hotel will try to improve their current products and services by getting
the best quality material and controlling the quality and our hotel. If more
capital is needed, company will open to public.
Identifying Successor
Below are the criteria for successor ofthe company
 Having broad knowledge and experienced in hotel business
 Good leadership skills (Able to communicate effectively)
 Having same vision and mission to accomplish company’s objectives
 Understand financial concepts so that company’s financial can be
managed well

38. References
Basari, M. T. (2013, February 11). Kunjungan Turis ke Makassar Naik 18%, Tingkat
Hunian Hotel Melonjak 49%. http://m.bisnis.com/. Retrieved June 23, 2014,
from
http://m.bisnis.com/quick-news/read/20131102/78/184266/kunjungan-turis-ke-
makassar-naik-18-tingkat-hunian-hotel-melonjak-49
Statistics Indonesia. (n.d.). Statistics Indonesia. Retrieved June 23, 2014, from
http://www.bps.go.id/tab_sub/view.php?tabel=1&daftar=1&id_subyek=16&not
ab=14