MASTER OF BUSINESS ADMNISTRATION (MBSGA1BKA)
COURSE
:
STRATEGIC MANAGEMENT
COURSE CODE
:
MBSA 1213
PREPARED BY
:
NADIA BINTI SAAID
MATRIC NO
:
MBS211034
PREPARED FOR
:
DR. MAZUWIN BINTI HAJA MAIDEEN
TOPIC
:
THE STRATEGIC PLAN
CLO
:
PLO1, CLO1, C5
1
2
1.0
EXECUTIVE SUMMARY
Our Pet Hotel is a full-service pet care facility dedicated to providing excellent
service, quality pet care, clean furniture, and a fun atmosphere at an affordable price.
We will keep the creative happy in a workplace that values diversity, ideas, and hard
work. Animals are becoming increasingly important in our lives. And those who work
chooses to provide a good life for themselves. Loving families with active pets and an
active conscience want a better life for their pets and peace of mind, so they flock to the
country's growing number of daycare facilities.
My business is in Kuala Lumpur. With a population of 1.808 million, Kuala
Lumpur is the largest city in Malaysia. Additionally, the location is close to the
neighborhood. This is ideal since pet owners can quickly drop off their pets at Moby
Pets Hotel and seek my services. I chose the name Moby after the name of the first cat
I owned, which died in 2018 after being with me for over 15 years.
Moby Pet Hotel can assist busy pet owners concerned about leaving their pets
alone. After bringing their pets to the Moby Pet Hotel, their pets will be cared for in a
relaxed setting, and owners can request updates anytime. Moby Pet Hotel is a fullservice pet care facility committed to consistently exceeding customer expectations by
providing excellent service, quality pet care, and a fun, clean, and enjoyable
environment at an affordable price. We will continue to foster a welcoming, creative
work environment that promotes pet comfort and well-being.
1.1
Target Customers:
We have divided my target clients according to the following criteria:
Demographics:
a) Upper Class
b) Middle Class
c) Frequent Travelers
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Psychographics:
a) Owners' hectic schedules do not have to conflict with their pet's
b) Owners of pets that view their animals as members of their family
c) Who does not hesitate to spend money on their pets?
Major Market: Kuala Lumpur, Selangor, and Putrajaya
Working Hours: Seven days in a weeks
2.0
INTRODUCTION TO BUSINESS OPPORTUNITY
2.1
Business Opportunity
As the millennium continued, there was a shift in pet ownership, which resulted in
attitudes. As a result, attitudes toward pet ownership and the adoption of Western
culture have changed. A survey conducted in 2021 found that Malaysia was one of the
top ten nations with the highest growth in the humanitarian rate of pets in the year 2020
compared to the previous five years. The Malaysian Department of Statistics forecasts
that by 2020, the country's working population will contribute around 69.7 percent of the
total population. The working population is defined as people aged 15 to 64. They will
likely take in strays and adopt them as companion animals, mainly cats and dogs.
Many pet associations have also launched various initiatives to encourage pet
adoption. Voice for Paws, for example, holds an adoption drive in Kuala Lumpur,
Malaysia's largest city. Visitors can interact with the pets on display and see if they feel
a connection. People are willing to spend more money on their pets than ever before,
particularly for pet welfare, as the country's middle-class population expands and
disposable income levels rise.
2.2
The Rationale
A Harris poll conducted in 2015 shows that 95 percent of owners regard their pet as a
family member. Half of them buy them gifts for their birthdays. It also has two directions.
Non-pet owners have lower blood pressure, heart rate, and risk of heart disease. Those
health benefits could be attributed to the other playing and walking provide exercise, as
does having a reliable best friend nearby for stress relief. The "pet effect" refers to
having a pet that can improve one's health, psychological well-being, and longevity
(Allen, 2003). The vast majority of pet owners believe that their pets provide them with
benefits.
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Figure 1 – Pet Market in Asia
Figure 2- Pet ownership In Asia
Review of the Major Pet Industry Statistics
2.3
35% of Malaysians keep their pets.
Pet owners in Malaysia spend an average of RM250 per month on pet
supplies and services.
Millennials contribute to 31% of pet industry customers.
The Goods and Services
Moby Pet Hotel will offer a variety of services for pets including:
-
Boarding
Moby Pets Hotel provides boarding for pets while their owners are away for
business or holiday. Those who wish to be pampered with specialized products
and services have access to a spa and trendy grooming.
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-
Grooming & Spa
Pet’s treatment sessions are available at the Moby Pets Hotel. These sessions
will help pets recover from new and chronic injuries, relieve aches and pains
associated with aging, and provide a general relaxation session for pets.
-
Indoor Park
Walking trails and a training landscape are available indoors. All Moby Pets Hotel
members have unlimited access throughout the year. Customers can visit the
park from 10 a.m. to 10 p.m. daily.
-
Pick and Delivery
Customers don't need to visit the business location to check in their pets because
a delivery van can go to their home.
-
Live Stream Access
Each room in which a pet is placed includes a webcam that allows the pet owner
to view live-stream footage of how their pet is doing. Customers can also view
Live stream footage of other areas of the facility to see how the facilities and
employee’s work.
-
Nutritious Meals
Each pet checked into the hotel receives a nutritionally balanced meal that
considers their taste preferences and the type of food ideal for any kind of pet.
-
Pet Foods Products & Supplies
High quality toys, natural treats, and healthy Pet products.
2.4
The Relevant Market of the Business Opportunity
People view their pets as four-legged children, so pet owners are increasingly interested
in traveling with them. These elements have significantly contributed to the market
expansion of pet hotels. The timing is ideal for launching this new venture. Pets play a
larger role in our lives, and working individuals prefer to provide for their well-being.
Loving families with active pets and an active conscience are looking for better lives for
their pets and peace of mind, causing a surge in pet care facilities. This shift and
increased affection for pets has led to an increase in pet expenditures. In addition,
internet penetration is anticipated to boost market expansion by increasing the number
of pet hotels booked online shortly. Greater awareness of furry visitors in emerging
regions will likely generate additional opportunities.
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Today, pet owners expect their pets to enjoy the same lavish lifestyle as their
family members. As pet owners invest more money in their animals, vacations for dogs,
cats, and other exotic animals are becoming increasingly popular. This is why the
popularity of pet-friendly hotels has grown. For pet hotels, the phrases pet
accommodation and childcare are used interchangeably.
2.5 The Key Success Factors
2.5.1 It is not affected by economic downturns.
When circumstances are difficult, consumers tend to reduce their spending across
various areas of the economy. Some industries are significantly less impacted than
others, and one of those is the pet industry. Many people who own a pet are more
willing to make financial sacrifices and give up petty indulgences in other areas of their
lives before reducing the money they spend on their cherished animals.
2.5.2 Costs of pet care products that vary by location and are
always going up
The rising consumption rate of pet care goods such as food, veterinary treatment, and
grooming is anticipated to expand the market. In addition, the development of pet care
store infrastructure in numerous nations worldwide is expected to raise the rate of
consumption of pet-related products, consequently driving market expansion. Owning a
pet is a status symbol in upper-class societies. Therefore, lifestyle changes among the
global population are anticipated to raise the demand for animal care goods.
2.5.3 Pet Humanization Trend
With more pet owners viewing their animals as family members, the pet humanization
trend positively affects the market expansion. Because larger pets have higher
maintenance expenditures than smaller pets, urbanization forces people into smaller
spaces unsuitable for larger pets. Due to this, smaller pets are considerably more likely
to be treated and humanized than larger creatures.
As the global demand for luxury pet grooming products rises, numerous companies are
attempting to manufacture high-quality pet care products to acquire a substantial market
share. Pet owners enjoy dressing up their animals. This is good for business and will
likely help the market grow significantly over the next few years. This encourages
industry participants to introduce many unique and customized pet grooming solutions.
With numerous manufacturers investing heavily in R&D to create new and creative
products, the pet humanization wave is driving market expansion.
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2.5.4 Pet Benefit
Additionally, there are other advantages to keeping a pet. European Pet Food Industry
Federation (FEDIAF) recognizes the significance of this fact. The website emphasizes
the public health benefits, particularly for the disabled, children, and elderly. The
following advantages are listed:
In general, pets can be companions or playmates, providing companionship, affection,
and protection. They contribute to each phase of human development. In this
circumstance, for instance, adults provide reasons to interact with others, such as while
walking a dog. A study also indicates that pets can aid in coping with grief, reduce
stress, anxiety, and blood pressure, and improve heart patients' chances of recovery.
Nevertheless, the connection between people and nonhuman animals is substantially
more intense and beneficial than between humans and their pets. The recognition of the
health advantages associated with pet ownership is increasing. Pets can be used
therapeutically in hospitals and nursing homes because they give patients something to
anticipate and discuss after their visit. One example is a patient with clinical depression
who is not communicative and whose retreat can be gradually alleviated by the
introduction of cats or dogs. A psychiatrist may prescribe a specific diet for a pet to cure
sadness, lethargy, neurosis, and stress.
3.0 VISION STATEMENT
"With every connection, Moby Pet Hotel's passionate associates help bring
pet parents closer to their pets, allowing them to live more fulfilled lives."
3.1
-
Vision Statement Analysis:
Enhancing interactions is most likely a must for my business.
Operating sustainably
Promote more fulfilling lifestyles
This vision also indicates where the company seeks to be in the future and the ideal
strategy to achieve sustainable, long-term growth for consumers to spread the news
about Moby Pets Hotel through word-of-mouth communication.
4.0 MISSION STATEMENT
To provide superior animal care in a pet-friendly environment while
ensuring that our customers, both pet and owner, enjoy excellent service in
a fun and secure setting.
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4.1
Mission Statement Analysis:
We will be the market leaders in the upscale pet care market by providing a positive
environment for the animals we house. Owners will have confidence in our ability to
care for their pets in appropriate ways because of our operations.
The business acknowledges the importance of pets in people's lives. Therefore, its
mission statement includes:
5.0
Life Improvements
Exceeding desires
ENVIRONMENTAL AUDIT
5.1
External Environment
The pet industry is a profitable one that has expanded in recent years. As a result
of the rising public demand for pets, the economy has taken on a new shape. According
to my research, the market economy of the pet industry will grow in the future. People's
desire for pets is growing, and the pet industry has produced a more comprehensive
range of products thanks to technological advances and legislative support. And as
society and demographics change, the futures market for the pet industry will expand.
5.1.1 Demographic
Positive demographic trends will help the pet industry. As more senior couples
turn to their pets for companionship and as the senior population rises due to the baby
boomers, spending on pets is expected to rise.
In addition, The Parents and Children's Avon Longitudinal Study (ALSPAC)
collected pet ownership data on cats, dogs, rabbits, birds, fish, and turtles prospectively
via maternal reports from gestation up to age ten years old and retrospectively via selfreport at age 18 for ages 11 to 18 years old. The dataset also includes a variety of
potential confounders, such as demographic and socioeconomic variables.
5.1.2 Economic
Malaysia's domestic economy is expected to grow between 3% and 4% by 2021.
Increased economic activity will support the expansion as containment measures are
gradually increased. Malaysia's growth trajectory is expected to improve by 2022 as
economic activity resumes and the labor market continues to develop. As a result,
improving economic conditions will have an impact on pet owners who are willing to
invest in their pets.
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5.1.3 Political/Legal
Political stability is vital for companies because it impacts the confidence of
customers and investors and, consequently, has far-reaching effects on the economy.
High levels of political instability severely impact consumption, investment, and the
expansion of firms. Internal and external politics in the region where the Moby Pets
Hotel Pets is currently located are stable.
Malaysian law has established basic operational requirements that pet hotels
must comply with daily operations. In addition to section 24, section 33 makes it a
criminal offense for a pet hotel to fail to exert reasonable care and supervision in
protecting animals from cruelty and maintaining their well-being. This includes ensuring
that the hotel environment is suitable for your pet and providing him with the proper
food. With section 24, pet owners will not be hesitant to leave their pets at the hotel's
Moby Pets, where each client has the right to negotiate changes to these contracts. For
example, if your pet is allergic to a particular meal, you can inform us in advance so that
we can pay closer attention.
5.1.4 Sociocultural
Pet populations are dynamic and constantly changing. The number of pet owners
is approaching a plateau. In 2022, 70% of Malaysian households owned one or more
pets. Since the inception of the survey period in 1988, the household penetration rate
for pet ownership has increased by 14%. Pets will be present in approximately 67
percent of Malaysian households by 2022. This represents a roughly 20% increase
since 1988. A typical pet owner is a married woman with children who lives in the
suburbs and works. Work demands time with children, so having a pet to accompany
the child is a thoughtful choice. People with a high standard of living cannot always
afford to spend time hanging out or hanging out with friends and family. In this fastpaced world, young people can't help but feel lonely and depressed, and pets are the
most loyal company when these feelings arise. As a result, it is not surprising that the
number of pet-owning households is increasing because it is one of the most stable
industries in the world, and the pet industry will continue to grow.
5.1.5 Technological
Technological innovations have drastically altered how businesses work.
Information-transmitting and recording infrastructures such as the internet, telephone,
and smartphones have changed the organizational structure of companies.
Similarly, in our business, we have studied technology variables and their
potential contributions. Considering technology's effects on a firm, we intend to utilize
existing technology in operations and marketing.
The marketing department will install CCTV surveillance cameras at our business
site. This will ensure that pets are handled and cared for appropriately. Similarly, under
marketing, we will utilize Facebook and Instagram extensively to provide clients with
information about our firm.
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5.1.6 Global
The global market for pet care is projected to reach a value of 148.10 billion US dollars
in 2021, with a compound annual growth rate (CAGR) of 5.1 percent from 2022 to 2030.
As the number of people who own pets continues to rise, economists anticipate
increasing consumer spending in the home and pet care categories. They are willing to
make a large financial investment to provide their animals with the best possible quality
of life, which is one of their top priorities. As a direct result, an increasing number of
individuals are prepared to spend money to board their animals in boarding facilities.
Figure 3-Global Pet services Market
Figure 4-Global Pet care market by type
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5.2 Industry Environment (Porter Five Forces)
Porter's Five Forces is a comprehensive strategy framework that shifts strategic
decisions away from analyzing the current competition. The Porter Five Forces model
examines how Moby Pets Hotel can establish a long-term competitive advantage in the
Retail industry.
Figure 5 –Porter Five Forces
5.2.1 Threats of New Entrants
According to Michael Porter (1980), the threat of newcomers is determined by barriers
to entry, which include economies of scale about the size and scope of operations
required to achieve structural viability costs, product differentiation, conversion costs,
and customer loyalty created by quality, reliability, and brand image capital
requirements about the amount of cash and financial resources required to establish
and operate a business costs disadvantages about the size and scope of the operations
needed to achieve structural viability costs, product differentiation, conversion costs,
and customer loyalty created by quality, reliability and brand image capital requirements
involving the size of cash and financial resources required to set up and run a business
costs disadvantages independent of scale versus existing competitors' advantages such
as location, patents, and experience access to distribution channels, including ways to
reach customers, government policies such as licensing, subsidies, or tax incentives.
Globally, the pet hotel industry is characterized by high capital costs and a high fixed
cost to total cost ratio. In the local Pets Industry, there is a significant economy of scale.
The highest capital costs necessitate that the hotel project is managed from the start to
achieve the most cost-effective use of resources for construction, fittings and
equipment, pre-operational expenses, and finance. Pet Hotels must also aim to fill their
rooms with the possibility of profit, both in terms of room occupancy and relative tariffs.
A good location for the close target market and quality of service are two essential
factors that allow Moby's pet hotels to differentiate themselves. This last issue is
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dependent on management to carry out properly, and the staff recruited are among the
trained and motivated employees. They have extensive knowledge of the animal world
and know how to handle pets properly.
5.2.2 Threats of Substitute Products
Michael Porter (1980) asserts that substitute products can be current or projected goods
and services that serve the same purpose. Replacement products typically come about
because technology advancement can lower costs while delivering greater quality
performance and value.
Pet Industry earnings are impacted when a new good or service satisfies the wants of
similar clients in different ways. Moby Pet Hotels should be cautious about the
possibility of competing goods or services taking the place of their own. When
competitors or businesses outside the pet sector offer more alluring services or lower
prices to compete among competitors, the threat of replacement is great.
5.2.3 Bargaining Power of Suppliers
Clients must either deal with specialized goods and services or pay exorbitant switching
fees. A client may be hesitant to switch suppliers if doing so increases one-time
switching costs. Furthermore, the client's service will suffer if the change is perceived to
lower the supplier's product quality, image, or quality. Alternatively, their clients must
deal with specialized goods and services or pay exorbitant switching fees. If switching
suppliers raises one-time switching costs, a client may be hesitant to do so.
Furthermore, if the change is perceived as degrading the supplier's product quality,
image, or quality, the service provided to the client will suffer.
Additionally, If a supplier's product plays a significant role in the industry's success, it
will have more negotiating leverage. The customer's product and service success
depend on the supplier's involvement. The company's potential suppliers are pet stores
selling animal food and other pet accessories. They are not necessary for all situations,
as some customers can have preferred animal food brands for their pets or even be the
ones to buy the food. There are also several options available to the company, with little
differentiation between the different stores. As a result of this, the bargaining power of
suppliers is low.
Moby Pet Hotel must find suppliers that can bargain for both sides. This is to ensure
Moby pet Hotel can easily manage its budget by improving its products and services. It
is necessary to find low-cost suppliers with high-quality services or products.
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5.2.4 Bargaining Power of Buyers
According to Porter (1980), buyers of goods and services from an industry can be
influential if they are more concentrated than the industry's players, forcing down prices
and reducing the industry's margin. They can buy bulk from the sector, lowering costs or
raising prices by increasing demand for higher-quality goods and services. Buyers can
easily find acceptable alternative sources of supply if the products and services they
purchase lack differentiation or switching costs. Buyers can pose a backward integration
risk because many buyers can acquire the supply source. Price sensitivity increases if
the buyer's product and service are not dependent on industry input. Buyers have a
strong incentive to be robust if their purchases from the industry consider a significant
portion of their total costs.
The buyer is significant in this business because there is competition; information is
easily accessible, mainly through the internet; there are few substitutes, and price
sensitivity is very high. However, customers are unlikely to switch companies because
their level of trust in the company is so important. In conclusion, despite the lower
likelihood of trading companies, buyer power remains high, and referrals are essential in
this business.
5.2.5 Rivalry within Industry
According to Porter (1980), the number and size of direct competitors determine the
intensity of rivalry, as numerous and equally balanced competitors can lead to intense
competition. This is because the desired level of business growth exceeds the industry's
growth rate. When switching costs and product differentiation are low, competition for
market share becomes fierce. Competition in fixed costs becomes more intense in most
metropolitan cities, particularly in high preservation/carrying cost industries such as the
Pet Hotel Industry.
Since it is a service, the most significant distinguishing feature is the people who supply
it and the level of client trust they inspire. Established businesses that have gained
consumers' trust through trustworthy staff enjoy client loyalty and positive word-ofmouth. However, the price difference is noticeable due to the company's current
economic state. Moderate levels of rivalry exist in this industry. Moby Pet hotel will
ensure that we can compete with other pet businesses in the future and bolster our
business.
5.3 Competitor Environment
The Pet Industry aligns its marketing strategy with pet owners' relationships with their
animals. There are two types of enhancements to competition arenas: One increases
the competition in each arena, that is, the lower level and the price. In contrast, the "Big
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Five" devote most of their time and resources to brand strategy and branding, despite
all companies providing comparable services.
Due to its location in Kuala Lumpur, the Moby Pets Hotel must compete with numerous
rivals. Cocomomo Urban Pet Hotel and Furball Haven have been identified as the
area's most formidable competitors.
Competitor
Location
Product and Service
1.
Cocomomo Urban Pet 139, Indah UPC Business Boarding, Grooming and Spa,
Hotel
Centre, 3 1/2 Miles, Jalan Swimming Pool, Indoor Park
Klang Lama, 58100 Kuala advice and services for pets.
Lumpur,
Wilayah
Persekutuan
Kuala
Lumpur
2. Furball Haven
Mon’t Kiara, 1-1, Jalan Pet Hotel, Grooming and Day
Solaris 4, Solaris Mont care
Kiara,
50480
Kuala
Lumpur, Federal Territory
of Kuala Lumpur
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COMPETITIVE PROFILE
MARKET
Critical
Success
Factors
Variety Of
Services
Innovation
Advertising
Brand Name
Customer
Services
Price
Competitiveness
Technology
TOTAL
MOBY PET
HOTEL
COCOMOMO
FURBALL
URBAN PET
HAVEN
HOTEL
Rating
Score
Rating
Score
Weight
Rating
Score
0.25
4
1.00
3
0.80
3
0.75
0.10
0.20
0.20
0.15
3
2
1
4
0.30
0.40
0.15
0.60
2
3
4
2
0.20
0.60
0.60
0.30
1
4
2
2
0.10
0.80
0.40
0.30
0.05
3
0.20
3
0.15
4
0.20
0.05
1.00
3
0.15
2.80
1
0.05
2.70
2
0.10
2.65
Table 1-Competitive Profile Market
This table depicts the company's and its competitors' competitive scenario in the Pet
Hotel industry. This table demonstrates that Pet Moby Hotel receives higher scores
(strengths) in various services and considers minor strengths in customer service,
advertising, and innovation. Nonetheless, the company has a significant disadvantage
with its brand name. The overall score is 2.80, while the total scores of its competitors,
cocomomo Hotel and Furball Haven, are 2.70 and 2.65, respectively. According to this
competitive profile matrix, Pet Moby Hotel has a 0.10 competitive advantage over the
other two companies.
5.4 Internal Environment
-
Management
Moby Pet Hotel will be organized and managed innovatively and creatively to
achieve extremely high levels of customer satisfaction. We will create a work
environment that promotes personal development and satisfaction among our
employees. A policy manual will be written and put into effect. The competencies
and skill set that will be required will be identified through the development of roles
and responsibilities. Professionals who work well in groups and have common goals
will be hired. Staff meetings will be held weekly to discuss ideas, suggestions, and
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operations. We intend to hold an annual motivational seminar and develop an
employee recognition program. As the company expands, it will offer all employees
an employee benefits package that includes health and vacation benefits.

Organizational Structure
Manager
Administrative
Staff
Accountant
Receptionist
Operation Staff
Pet Care-takers
Pet-Groomers
Security-guard
Cleaners
An organization's hierarchy is often defined by its organizational structure. A strong
organizational structure fosters a sense of mission. The organizational structure
specifies the roles and responsibilities of each employee at Moby Pet Hotel and
provides a graphic picture of the structure of our organization. Activities including
work distribution, coordination, and supervision focused on achieving organizational
goals make up an organizational structure.
-
Marketing
Marketing goals
• Recruit new members
• Establish a distinct market presence.
•To raise public awareness, increase media coverage to at least five stories in
2022
Marketing is critical to a company's survival in the marketplace. Pet Moby Hotel
keeps our business running smoothly and promotes our pet store. Moby Pet
Hotel needs to improve its marketing to attract more customers, especially in our
area of Kuala Lumpur. Ways to serve customers can make mentioning their
professional and personal brand a critical part of Moby Pet Hotel and marketing
their pet store is essential. People who interact with her daily have the potential
to spread the word about their store and business, so we want them to have a
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positive experience. Marketing can be applied in various ways, which Moby Pet
Hotel can use to increase the store's productivity and visibility.

Marketing Mix
Product/ Service
The leading service that our small company will offer is accommodation for
pets. Our hotel will accommodate pets for a more extended period (overnight
care service) or only for days (daycare service). In addition, we offer other
services such as grooming and spa, training, and transportation for pets. All
services are premium, high quality, and of the highest standards. Our
company will focus on hostel services compared to competitors, with pet
accommodation as a second activity. Our customers will leave their pets in a
place that offers safety, excellent conditions for accommodation and daily
activities, and medical supervision performed by trained staff who are very
fond of animals.
-
Production/Operation Plan
The location of a business is a crucial factor in its success. If a business
chooses the incorrect site, it may not have appropriate access to clients,
personnel, transportation, resources, etc. Consequently, location frequently
plays a big impact on the profitability and overall success of a business.
Formulating a strong location plan requires consideration of elements such as
the availability of potential customers whose demographics match the
business, viability, logistics, labor, infrastructures, and access to suppliers,
among others. A solid placement strategy would maximize business
opportunities while avoiding expenses and hazards.
-
Management Information System
Moby Pet Hotel will use a functional level system: which can help assist
operations managers by tracking basic hotel activities and transactions such
as bookings, reservations, sales, payments, payroll, customer registration,
and supplies. This category includes transaction processing systems (TPS).
TPS is used to record and keep detailed records of the day-to-day operations
of an organization. This system's key attributes contain complex data,
processes a large amount of data, contains historical data which describes
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the activities that take place in my firm), and the input data and information
generated is highly structured, including the accounting information system.
6.0 FINALIZATION OF SWOT
6.1 Opportunities
1. Market: The Pet Industry market is expanding, and we have additional
opportunities because not everyone knows about our existence.
Therefore, we would increase our efforts to promote our business.
2. Expansion: After establishing a presence in the market and growing our
customer base, we will have the chance to expand by opening other
outlets or hiring more employees.
3. Franchising: If we can develop a brand with sufficient strength and a
large customer base, we may consider franchising and providing
possibilities for other motivated entrepreneurs to expand under the Moby
Pets Hotel brand.
4. Profit: While our passion for industrial pets will be paramount, the
possibility of eventually making a profit is a strong motivator. When our
company makes a profit, it opens up many new doors.
5. The attitude of the pet owner toward the pets: The pet industry will
significantly contribute to the economy; however, the 'owner' of the pet
will remain responsible. Of course, the way they spend money on their
pets is how we can provide services and make a profit. Families
nowadays treat their pets as children rather than as house pets. A new
survey in Australia has proven the concept of pet "parents" rather than
"owners." The findings indicate that people have a solid emotional bond
with their pets. Most are responsible, love, protect, and spend money on
their pets. Statistics from the pet industry point to a lucrative market for
new entrants. The pet care industry has evolved into a publicly
recognized service industry, and new types of services will emerge to
attract profits.
6.2 Threats
1. Economic Downturn: The economic downturn could affect the large pet
industry market. Since 2021, the global financial crisis has overshadowed
the lives of the people where covid-19 has hit the world, including
Malaysia. People tend to reduce spending. As a result, pet costs will be
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reduced to some extent. In such an economic environment, it will impact
our market strategy. Many of our market strategies will be ineffective.
2. Competitive Services: One of the services we offer to pet owners, pet
grooming, poses a clear threat to our company. They will instantly have an
advantage over us because we are new to the market. Our names are not
yet well-known. But we want to look into what other commercial services
entail and mix that with what clients want from pet-grooming services.
Then, we'll use this information to ensure we provide top-notch services
that satisfy all demands while keeping prices as low as possible.
3. Customer loyalty: is important for understanding marketing and attracting
new customers, and retaining existing customers (Toufaily et al., 2013)
from a practitioner's perspective, it is one of the most permanent assets
owned by a company. Developing and maintaining customer loyalty
assists businesses in developing long-term, mutually beneficial customer
relationships. Expecting those customers to return, these loyal customers
demonstrate attachment and commitment to the company and are not
drawn to competitors' offers. Furthermore, loyal customers are frequently
willing to pay more because expectation guarantees express higher
purchasing intentions and resist conversion (Evanschitzky et al., 2012). In
this regard, our company must have loyal customers in order to create and
maintain sustainable operations in the future.
4. The customer's role: now far outweighs anything that existed previously,
and the customer has the potential to determine the company's future. As
a result, it's clear how critical it is to understand customers while meeting
and exceeding their expectations. Because of customer interaction,
persistence and timeliness of feedback are essential. Monitoring will occur
quickly enough to elicit a positive response or slowly enough for negative
comments to exist online here. Customers may be dissatisfied with us
because we are still new in the industry. The customer function has
evolved into a co-ownership of the brand and its success potential. Loyal
customers will go above and beyond in their concerns about the online
company, offending or hurting the same customers. It becomes simple to
express an opinion in a non-punitive environment or to determine the
integrity of any comments made.
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5. Cost increases: There is always the possibility that company and
material costs will increase. Since we rent a facility and utility costs can
fluctuate, the rental price of the building could increase in the future.
6.3 Strengths
1. Various Services: In addition to pet-friendly accommodations, we intend
to provide a variety of other services for our company. We want to
reassure our customers that we will care for their pets in some capacity.
Bathing, grooming, clipping, massaging, walking, sitting, nail
polish/pedicure, lice rinse, aroma care, and general health are among
them (lice, tooth cleaning, skin condition, ear examination). Potential
customers can be met through a variety of sales models. Needs to
increase market share and a variety of business models are more
conducive to rational and efficient use of existing resources and cost
savings by pet retail stores.
2. Products: We'll take the veterinarian's advice. This can be beneficial in
advertising and marketing. Obesity rates in cats and dogs are increasing,
according to anecdotal industry sources. There is a correlation between
obesity and various health issues, including diabetes and osteoarthritis. As
a result, we can now sell pet health and wellness supplements. If a
customer is unsure which product to purchase, we may present them with
a list of the top ten products.
3. Effective Research and Development (R&D): The Moby pets Hotel has
an innovation-driven culture and spends significant profits on R&D
initiatives.
4. Operational resilience: understanding fundamental industry factors,
building diversified operations across different geographies so that
disruptions in one part of the world do not affect the firm's overall
performance, and integrating diverse operations and business processes
through its digital transformation drivers.
5. A passion: Work and compassion for animals will increase customer
Satisfaction and positive feedback, resulting in highly effective publicity.
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6.4 Weakness
1. New To the market: Since we are relatively new to the market and
customers are not particularly familiar with us, reaching and engaging
consumers about our company will be challenging. Due to our limited
marketing budget and the fact that we are a new business, we may not be
able to execute all our intended marketing actions and plans at this time.
2. The scarcity of land and space: particularly parking in our neighborhood
may cause customer unease.
3. Location: Because our location is in the middle of the city, the distance
between us and our rivals may not be that great.
4. High operating expenses: The operating costs of Pet Care Services are
high. This may be more difficult to maintain in the face of new competition
from nimble players who use technology to attract customers.
5. Low market penetration in new markets: Outside the market, Pet Care
Services will need to spend more promotional, marketing, and advertising
efforts to penetrate the market.
7.0 FORMULATION OF ORGANIZATIONAL OBJECTIVE
7.1 FINANCIAL OBJECTIVE
Moby Pet Hotel will begin small, with the primary goal of quickly entering the market and
reaching potential customers. As a result, as the new service is introduced to the
market, the company may incur losses in the first year. This will aid in understanding
more customers in the coming year and beyond. We decided to start with a business
bootstrap, with each contributing partner half of the total start-up costs. Once we have a
steady flow of consumers, we will begin investing in a considerable fund to spread our
reach outside Kuala Lumpur.
Our company's financial objectives are as follows:
- Increase membership by half in the second year.
- To achieve break-even in the third year and profit in the fifth.
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7.1.1 Assumptions
Our budget is based on assumptions. So, here are some fundamental assumptions:
- Every year, all operating expenses are raised by 12%.
- Based on performance, the annual salary will be increased by 4-5 percent.
- Using the straight-line method, depreciation on furniture is 5% and on machinery and
Equipment is 10%.
- Inventory is completed on time.
- The renovations will be completed within five years.
- Customers will increase by 30% in the third year and will begin to increase by 40%
- The pickup and drop-off facility will be used by 50% of customers.
- Service charges will be raised by 5% in the third and subsequent years.
- Every year, sales of goods will increase by 20%.
- After the break-even point, employees will be added as needed.
- The same employee will perform the front counter and accounting tasks for the first
two years.
- For the first year, one employee will perform pet grooming and care work, and the
number will be increased accordingly.
- We assumed that as demand for services raises, so will sales, but there will be no
increase in fixed assets; thus, the output fixed asset turnover ratio may rise.
7.1.2 Developing a key account culture: Finance deals with important relationships
like suppliers, bookers, and purchases. These relationships can and will result in lower
prices, more frequent deals, increased knowledge, improved processes, and other
benefits. Our friendship is critical to the overall success of the Moby Pet hotel.
Any operation will perform better if its objectives are clear. Setting goals, both short and
long-term, will result in teamwork.
7.1.3 Business Loan
We will use debt bank financing to open the five facilities required to quickly reach Moby
Pet Hotel market coverage. The loan will be secured for the purchase and construction
of pet care facilities. As collateral for the loan, land, and facilities will be offered.
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The owner's priority is for growth to be funded internally and through debt withdrawal,
supported by a pet care facility and a loan with a maximum loan value of 70%. Owners
believe their high equity position will be maintained, and lower debt financing costs are
an ideal source of business funding. As business capital assets grow, they will obtain
future financing at a lower loan-to-value ratio. Excess cash from operations is expected
to be generated and reinvested in the business to enable growth with a low debt level.
As the Moby Pet Hotel concept proves successful in the future, it can implement the
franchise strategy to enable the country's rapid business growth. Additional can find
additional capital in the equity market if this scenario occurs. Because of the tax
implications for Moby Pet Hotel owners, the owner will take a dividend of 28 percent of
the business's net income to cover personal tax liabilities. Future dividend decisions will
be made at the discretion of the Board Director and will be based on the company's
financial experience.
All cash withdrawals, expenses, and cash handling procedures will be monitored. The
supervision of the Moby Pet Hotel's Chief Financial Officer a virtual private network will
connect cash registers used in pet care facilities with data consolidated in a financial
database. The pet Facility Manager will be responsible for cash integrity. Moby Pet
Hotel will provide a qualified external auditor.
7.2 Strategic Objective
7.2.1 Skills in Social Responsibility and Entrepreneurship
Knowing how to improve quality is critical for our company's growth. Customers typically
select the best services and products. Furthermore, quality improvement will meet the
needs of organizations to improve performance and durability, maintain economic
viability, visual and aesthetic appeal, service delivery excellence, and a good reputation
for quality assurance. Thus, using quality improvement and organizational change
action plans presents an action plan that will facilitate long-term business profitability is
value and quality improvement (Scarborough, 2012). The success puzzle for quality
improvement and the delivery of change management strategies in a dog hostel
business operates on the outskirts of soft skills, including a timeless vision of
organizational principles.
7.2.2
Vision and Mission
For our company's marketing to succeed, it must have both a vision and a mission.
They serve as guidelines and points of reference. A vision and goals are used in
business to determine whether or not it is making progress. The company's vision is to
be a market leader in boarding for pet owners without a pet handler. Instead, the
marketing goal for the first six months is to gain ten customers per week. In addition, the
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company will add value to the lives of its target clients by offering free optional services
and pet delivery upon their return. The company will use marketing to ensure that
consumers continue to benefit from pet hotel services at all times.
8.0 STRATEGY FORMULATION: GENERATE TOWS MATRIX
INTERNAL FACTORS
EXTERNAL FACTORS
OPPORTUNITIES
O1.Market,the Pet Industry
market is expanding
O2.Expansions
have
the
chance to expand by opening
other outlets or hiring more
employees
O3.Franchising and providing
possibilities
04. Profit
O5.The attitude of the pet
owner toward the pets
THREATS
T1.Economic Downturn
T2.Competitive Services
T3.Customer loyalty
T4.The customer's role
T5. Cost increases
STRENGTHS
WEAKNESSES
S1. Various Services
S2. Products with veterinarian's advice
S3. Effective Research and Development
(R&D)
S4. Operational resilience
S5. A passion Work and compassion for
animals
W1. New to the market and
customers are not particularly
familiar
W2. The scarcity of land and space
W3. location is in the middle of the
city, the distance between us and
our rivals may not be that great
W4. High operating expenses
W5. Low market penetration in new
markets
STRENGHTS-OPPORTUNITIES
WEAKNESS-OPPORTUNITIES
S4O1 Focusing on cost optimization,
rapid technology adoption, new revenue
streams, and the expansion into new
markets and customer segments, we've
modified our strategies to survive these
difficult times by concentrating on cost
reduction, new revenue streams, and
market and customer expansion.
W4O4 Profits can be increased
through
the
provision
of
supplementary services, which may
include the provision of extra
playtime and grooming in addition to
Pet snacks and toys.
STRENGHTS-THREATS
WEAKNESSES-THREATS
S3 T2 Change Research and Technology
and Meaning-based innovation begin
with an awareness of subtle and implicit
social and cultural dynamics and create
new meanings and languages.
W1T3 Regular customers spend
much money if they are devoted to
our company. Thus, we must
demonstrate that we sincerely adore
and pamper their pets because they
enjoy these additional touches.
When these extra touches are
connected with our company, it will
be much simpler for me to gain new
clients. My dedicated base will
gladly extend my reach with
fantastic evaluations and referrals.
Table 2- TOWS Matrix for Moby Pet Hotel
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9.0 STRATEGY RECOMMENDATIONS
9.1 Corporate Level Strategies
A corporate strategy is a plan that helps our company decide which markets to enter.
This strategy will guide the expansion of our company.
9.1.1 Market Development
-
Extension
One corporate strategy our organization can implement is using extensions (Martin,
2009). Our organization needs to branch out into new business areas worldwide to
expand its current market share. This can be accomplished by expanding into other
companies that deal with pets and animal care. Our company may get involved in
advertising pet clubs in different countries. Finally, the pet club's profits will be
distributed to the corporate organization.
-
Quality Assurance
Our company will take several steps to ensure that the quality of our services remains
high. First and foremost, we will require that all employees receive extensive animal
care training. Second, the facilities, staff, and furry guests will be subject to ongoing
management supervision to ensure everything runs smoothly. Third, each animal in our
care will be treated as if it were our own. The cleanliness of our animals and facilities
will indicate this. Finally, at the end of each animal's stay, the owner will be given a
Satisfaction Survey so that we can learn what we did right and where we went wrong.
Maintaining this level will be the management team's responsibility or whoever is in
charge on a given day.
Sales Forecast
Pet owners are becoming more affectionate toward their pets and regard them as
human beings due to various statistics and facts. Consequently, the demand for
services comparable to ours has increased and will continue to increase soon. Because
of our strategic location in Kuala Lumpur, we are optimistic about meeting and
exceeding our revenue targets within the first year of operation. We are confident in our
ability to sustain and grow the business.
We thoroughly examined this company. We hired a sales consultant to research the
market and determine our chances of generating revenue and meeting our goals in as
few months.
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Sustainability and Expansion Strategy
Every company that wishes to have a long life cycle must have a strategy to ensure that
the company operates for as long as the owner desires. A business must continue to
generate revenue to be sustainable, which can be accomplished if enough customers
keep an eye on it. To gain customers, a company must create publicity and effectively
market its services and products while having efficient employees handling each task.
Having the right employees is critical to the success of the business. Businesses will
continue to lose money in layoffs and recruiting new owners if they do not have the right
employees to understand their company's values and corporate policies. That is why we
carefully select resources for those who work for us now. They are efficient,
experienced, and dedicated to our goal of being the best pet hotel in Kuala Lumpur.
We understand the value of having customers and how important it is to keep them
loyal to us. We have the best customer service, ensuring that all our customers'
questions and complaints are promptly addressed. We also provide a discount to repeat
customers and a reward to those who refer us to others. We continually search for ways
to provide our consumers greater value than we already deliver. One of our objectives is
to generate constant and effective publicity for our firm. We want to ensure that we build
the methods to enable us to achieve a big market share while effectively competing with
other companies. We are confident that if we take these three things seriously, we will
be able to sustain and expand our business.
Product Development
Moby Pet Hotel will offer all the services described in the Product Review. This includes
our primary pet accommodation services, grooming, and grocery stores. Unlike other
pet lodging options, the Moby Pet Hotel enclosure is spacious, bright, clean, and wellventilated. The ventilation system will keep pets from sniffing each other and make the
environment more pleasant. A soft bed with a blanket will put the pet at ease.
In addition, for the safety of all animals and pet owners, each pet will be examined by a
veterinarian and a trainer to ensure it is in good health. We also ensure that any pets
that come to live with us are socialized with other animals. Otherwise, we will teach and
allow them to interact under strict supervision. Our professional trainers will also teach
pets how to behave and interact with their owners through obedience training. Pets will
be kept on a schedule that includes play, walks, and sleeping time.
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Pricing Strategy
Moby Pet Hotel provides three packages for its core accommodation services to its two
distinct target groups. Our goal is for all pet owners with varying budgets to be able to
provide good pet care. According to pricing research, nearly half of pet owners spend
less than RM 300 per month on their pets. To increase customer satisfaction and the
number of customers we serve, we strive to provide competitive pricing and exceptional
service to all of our customers. We intend to generate revenue in terms of customer
turnover by maintaining low-profit margins and providing superior service. This price
reflects the strategy of (1) attracting desired customers and (2) competing for market
share with other pet care alternatives. The cost of pet care is essential to the majority of
pet owners.
9.2 Business-level Strategies
A business-level strategy is a creative way for a company to highlight its unique
assets, increase its competitive edge, and assist its components in functioning as a
cohesive whole. This strategy focuses on improving how departments interact with
one another and perceive their roles within the company while also establishing
guidelines to achieve an overarching goal.
In this case, we go with Leadership-Low Cost. A cost leadership strategy entails a
company organizing and managing its value-added activities to be the industry's
lowest-cost producer of a product (good or service). A successful cost leadership
strategy will almost certainly rely on various organizational characteristics. The
arrangement of value chain activities is critical to achieving a cost leadership
position. My Companies implementing a low-cost strategy will often use one or
more of the following elements to establish their low-cost positions:
1. Precise demand forecasting and high capacity utilization: Benefits to the
budget: Capacity planning helps identify how services are provided and the
reasonable period and several employees required to meet current demand and
cover all operational expenses. This is a crucial aspect when establishing an
annual budget to efficiently allocate funds for expenses. Utilizing demand
planning and forecasting software aids in the development of our company's
financial projections.
2. Economies of scale: Created when the cost of supplying goods and services
decreases due to our company's ability to sell more goods. Furthermore, we will
instruct our suppliers, such as pet food, toys, and grooming items, to sell items to
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us at ever-lower prices. Part of these savings is then passed on to customers in
the form of price reductions in our stores.
3. Technical advantages: Some of the methods we use to improve production
facilities and thus reduce production costs include using smart phones, online
platforms, new software, enhanced hardware, or a combination of both. Not only
will the use of technology reduce costs, but it will also reduce the likelihood of
errors occurring due to human intervention.
10.0 SUMMARY
The pet industry has expanded tenfold since the late 1990s. It is an industry that is
thought to benefit humans by providing emotional support, reducing stress and
loneliness, and assisting us in improving positive emotional development. Because
of the public's proclivity to prioritize and spend large sums of money on their pets,
even during difficult economic times, the pet industry has been lauded as one of
the most stable in the world. According to research, there is and will be a demand
for these pet hotels due to the previously stated increase in the number of
households owning a pet. Another point raised is that the names of those pet
hotels frequently do not include the word "hotel," or if they do, they are combined
with something more relatable than "pet hotel." It is frequently referred to as a
positively related word, such as "home" or another word to which people can more
easily relate. The concept is based on recognizing the constant changes in
customer demands or needs, such as realizing how people increasingly regard
their pets as children.
As a result, pet hotels have some potential markets. Furthermore, there is a clear
vision and mission statement to serve as a guidepost, particularly when developing
strategies. Pet hotel industries will thrive in the market by providing high-quality
services and implementing an effective marketing strategy. Furthermore, many
Malaysians are willing to spend money on their luxurious pet life.
Moby Pet Hotel is a high-end pet care facility. Our main business is pet boarding.
We also provide pet daycare, grooming, and veterinary services, as well as food,
toys, and pet care products.
This company's market has a lot of potentials. Many small, owner-operated
kennels of moderate to low-quality splinters are on the market. Given the trends in
pet ownership and the market's fragmentation, Moby Pet Hotel is well-positioned to
achieve rapid market penetration and market share.
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The management team to make Moby Pet Hotel a reality is exceptionally qualified.
Has the breadth of expertise required achieving the projected results, led by a
team with extensive experience with pet care centers.
30
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Appendix A
Figure 1- Moby Pet Hotel Exterior
Figure 2 – Moby Pet Hotel Interior
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APPENDIX B
Figure 3 – Moby Pet Hotel Front Desk
Figure 4 – Moby Pet H
Figure 4 - Moby Pet Hotel Layout Plan
33