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TopLiterature Review
There is no single definition for business plans. However, classic researchers set a common foundation for constructing business plans based on four key elements: definition of strategic goals, generation of alternatives to reach these goals, evolution and decision among alternatives and implementation control (Andrews, 1971; Ansoff, 1965; Ackelsberg & Arlow, 1985; Porter, 1985).
It is also in its being to be formulated anchored on predictions of future events (Wiltbank et al. 2006). Some may say, it personifies the organizational vision and describes each step of the way required to attain it (Hill & Power, 2013; Valentin, 2015).
Authors differ in the way they appraise the economic contribution of business plans. Some find it advantageous (Bracker, Keats & Pearson, 1998; Schwenk & Schraeder, 1993) others do not (Boyd, 1991; Robinson & Pearse, 1983).
By assembling the various findings, one may conclude that business plans’ importance varies according to each business characteristics, how it is used and the phase where the business stands (initial/established). Moreover, it directs a company in every step of its way and obliges managers to think about every detail affecting the organization. Thus, obliging a greater understanding of the business, serving as a tool to avoid errors and seize not so obvious opportunities (Winicott, 2014).
As Staff of Entrepreneur Media (2015) state:
Anybody beginning or extending a venture that will consume significant resources of money, energy or time and that is expected to return a profit should take the time to draft some kind of plan.
Hostel, although a widely known concept, has no definition from a single entity accepted worldwide as a standard to describe Hostels. The one presented ahead, however, encompasses what the present paper refers to:
A hostel is a budget-oriented, shared-room (“dormitory”) accommodation that accepts individual travelers (typically backpackers) or groups for short-term stays, and that provides common areas and communal facilities.
Once again, existent literature does not delineate a fixed set of characteristics for these establishments. In this situation, articles of opinion, online forums and Hostel’s websites compose the ingredients available to build a characterization. The convergence of these, resulted in the following characterization: budget oriented, availability of dormitories and self-catering equipment, high level of social interaction and an informal environment.
TopMethodology
As a first step, there was a research over existent literature covering business plans and Hostels to better understand their nature and how the paper should be developed.
Secondly, a Market analysis was performed to retrieve information about the industry. First looking at the hospitality sector as a whole and then focusing on a more detailed assessment of the Hostel segment.
Afterwards, an organizational analysis was built based in the concept desired for the business, providing an internal analysis.
Having the internal (organizational) and external (market) analysis, the SWOT and dynamic SWOT frameworks were applied to formulate a business strategy.