Hospitality management – facilities management


Student’s NameInstitution 1Table of Contents1 Introduction1.1Aims and objectives of the report– the report discusses the major issues, as well as considerations,which must be incorporated in a feasibility study involving thedevelopment of a facility/property project. The facility is a smallfast food business, which targets school-going children. It will belocated close to a school, where it is easier for children to buyeateries at their convenience. 1.2Research approach1.3Methodology – informationrequired for the study involves determining if the location issuitable for the facility the number of children in the schoolwhether the fast food will meet their demands and what foods thechildren may want. Data will be collected by observing the buyingbehavior of the children. It will also be conducted throughinterview, which involves asking the students questions on what theywould like to buy from the fast food, if many of them buy foods fromsuch facilities and how often the buy fast foods.2Key issues and considerations in afeasibility study of a property/facility development2.1Market2.1.1Businessenvironment analysis

Macro-environmental influences on property/facility

Micro-environmental influences on property/facility

2.1.2Marketanalysis –

It involves the evaluation of possible market segments throughconsideration of market information. The analysis accesses the charmand dynamics of a particular market in a particular industry. Itdepicts the business and market knowhow. Size, Growth,Accessibility, Consumer needs, wants and benefits sought and Customerpower.


It entails splitting a wide target market to divisions of consumersthat have similar needs and precedence, and formulating andimplementing strategies that target potential clients. Comprises ofanalyzing the different variables entailed in segmentation, whichare:

Benefits sought by potential consumers from the facility

Business segments

Price segments

Social classes amid target consumers, which are likely to affect thefacility development

Demographic segments – includes issues like age, education andearning among others

Purchase series and frequency

2.1.4Competitionanalysis –

It is important to consider possible competition prior to facilitydevelopment. This informs on the possibility of success of thefacility within a given region. There are numerous types ofcompetitors and competition differs on different aspects.

Existing and prospect competitors

Direct and indirect competitors

The market share of competitors

The abilities and resources available to competitors

Strengths and weaknesses – at this stage a SWOT analysis will benecessary in determining the competitive advantage that may beavailable for the new facility.

The possibility of new entrants in the similar property/facilitydevelopment

Competitors’ differentiators and profitability

2.1.5Locationand Site

Location – it is necessary to consider the location for the projectdevelopment, which entails bearing in mind issues like the expectedcompetition, prospect changes, and economic possibility of the regionand infrastructure.

Site – refers to the intended place where the facility will besituated. In determining the site, key issues and considerations aresite availability, expenses incurred in acquiring the site,development restrictions, local demand and footfall sequences, accessand business related flows.

2.2Finance2.2.1Sourcesof funding –

The facility is a partnership hence, the sources of funding willcome from all partners. Every individual is expected to contributedan agreed upon price towards the project.

2.2.2Concernin securing the funding –

Concerns include the possibility of some partners being incapable ofproviding the specified amount and in time to commence the project.

2.2.3Financialviability of proposal –

It is important to assess the general financial viability of theproposal, which refers to the capability of recouping initial capitalexpenditure over an accepted period.

2.2.4Riskassessment –

It is important to conduct a feasibility study, which determineswhether the project will generate enough money as expected to ensurea healthy cash flow.

2.3Legislation2.3.1Analysisof issues linked to suggested business operating model –

They include joint ventures, sole trading, limited company,franchise, management agreement, partnerships, and networkorganization among others.

2.3.2Recognitionof legal basis –

Relating to land/property ownership like hiring, leasehold orfreehold


When planning to operate a fast food business, key feasibility issuesand considerations need evaluation. These include market, finance andlegislation.


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