feasibility study of the critical issues and considerations in the proposed extension of the Royal Resorts Suites

feasibility study of the critical issues and considerations in the proposed extension of the Royal Resorts Suites

The report will engage in a feasibility study of the critical issues and considerations in the proposed extension of the Royal Resorts Suites. A feasibility study provides an objective, independent, and impartial appraisal of a proposed development project and adequate information to give all the stakeholders a clear path on what decision to take concerning the project as well as coming up with effective ways on how the project will be run (Sangree, 2019). The feasibility study will evaluate the business environment and the prevailing market forces of demand and supply by using an effective survey. Additionally, the survey will offer essential information for planning and negotiations as well as potential investors or lenders. The key issues and considerations for the project are concept and design, market, finance, and legislation. The study will employ secondary research, also known as desk research, to collect, collate, and analyze existing data.

Key Issues

The discussion will primarily focus on the key issues and considerations in the proposed extension of the Royal Resorts Suites, which are as follows;

Concept and Design

The section will discuss the conception of the idea and its subsequent transformation into a design, which comprises planning, diagram, and arrangement of structures, as the idea transitions into reality (Yang, Mao, & Tang, 2017). The design outlined should emphasize on;

• Marketing- the design developed should consider the effective preference of the potential customers as well as ensure it is meet the requirement of the current condition in the market to provide an effective competitive advantage over the competitors.
• Ambiance- the place should be designed considering the ideal, cool, and attractive environment that perfectly meets all the customer’s specifications.
• Operations- the design also should be selected by considering the ease in general operation not only by the customers but also by the internal staff.
• Maintenance- the design should consider effective management methods and also effectiveness in managing the premises.
• Capital costs considerations- the design should be within the budget of the organization as well as be an effective asset to the organization rather than a liability.

Additionally, this section will explore the need for compromise in design to ensure a satisfactory meeting of the expectations of all stakeholders while also addressing the design constraints (Camillo, 2015).

Market

Market analysis will explore the potential of various market segments for the additional suites by considering;

• size market- the study will generally outline the market at large, and the dynamics involved in the market.
• Growth- under market discussion, growth analysis will be undertaken to come up with a projection of future performance of the market as well as understanding the benefits of the project in the near future.
• Accessibility- a clear explanation of how to get to the new markets or how to tackle already existing markets and to maximize operation for large profit margins.
• Existing consumer needs-there will be a clear explanation of new consumer needs through interaction and the prospective preferences of future customers.
• Customer power- analyzing the ability and power of the customer not only to the operation but the performance at large.
• Competition- there will be a clear explanation of the competitors in the market and their market power and their significant role in the market.

The five forces framework provides an excellent tool approach for analyzing the competition (Dale, 2013).

Financehttps://studygroom.com/project-initiation-and-overview-of-project-planning/

The major issues are the identification of the capital costs, preparation of detailed financial projections, the overall economic viability, and the risk assessment of the addition of other suites (Landman, 2019). Another critical area of concern is the availability of the necessary finances, which can be acquired directly, indirectly, or both. Most projects use debt and equity capital for finance acquisition, project development, expansion, renovation, and repositioning.

Legislation

The section will deal with the operating model of the business and the legal basis of land and property ownership, acquisition of furniture, fixtures and equipment, and obtaining the relevant legal and planning approvals for the extension of the Royal Resorts suites (Hodari & Samson, 2014). Conformation to statutory requirements, acquisition of applicable licenses, and the assessment of contract award, restrictions, and problematic terms and conditions will also be covered.

Conclusion

A feasibility study is essential for providing an objective, independent, and impartial appraisal of a proposed development project to enable key stakeholders to decide whether the project should proceed and in what manner. The study also influences the concept and design of the project to ensure the attainment of all critical stakeholders’ goals and objectives. While market analysis determines the market forces and how best to compete, the financial analysis provides a way forward on capital acquisition and utilization, and conformation to regulations eliminate possible legal tussles.