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Feasibility Study of a Convention Center

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A convention centre is a large building that is designed to hold a convention, where individuals and groups gather to promote and share common interests. Convention centres typically offer sufficient floor area to accommodate several thousand attendees. Very large venues, suitable for major trade shows, are sometimes known as exhibition centres. International Convention centres typically have at least one auditorium and may also contain concert halls, lecture halls, meeting rooms, and conference rooms. Some large resort area hotels include a convention centre.

It is purpose-built to provide facilities for conferences, and events. Domestic demand also peaks during this period, reinforcing the industry’s seasonal pattern. Managing seasonality is an important way of increasing assets use, increasing employment opportunities, reducing congestion, and improving return of investments http://www.med.govt.nz/sectors/researchprojectsandreports/Tour.0070%20%20International%20Convention%20and%20Exhibition%20Centre%20Feasibility%20Report.pdf). Conventions and Catering Services are a source of shoulder and off-season demand, and these kinds of events generate high expenditure and often include add-on leisure travel.

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Other Convention Centre has some capability for hosting small to medium sized at present (up to 1000 delegates), and has hosted some reasonably large events. It faces increasingly significant constraints and competitive disadvantages when compared to national facilities and locations, especially when compared to our closest competitors. In Local situation, Convention Centre is just a part of a hotel. Here in Zamboanga City, the biggest hotel is the Garden Orchid Hotel. They have a Convention Centre where in you can book your reservation. For a total of 10,000php and above, you need to have a down payment of 5,000php while 3,000php for a total of 10,000php and below. This is non-refundable.

http://gardenorchidhotel.com/?reqp=1&reqr=nzcdYaEvLa5pv5jLabhL3H) This current international and national situation motivates us to establish a Convention Centre and Catering Services because Zamboanga is not currently competitive in national association conferences, Zamboanga City is often passed by because it lacks an international standard facility of an appropriate scale. So, by the Objectives and aims of Noblesse Convention Hall and Catering Services, involves winning events over competing countries and hosting them with minimal compromises. We will do our best to foresee things, do more in depth research about the establishment and will always have a Contingency Plan.

Significance of the Study

The following entities will benefit from the study:

HRM Students. This study will give an insight to those Hotel and Restaurant Management graduates on how they are going to manage a convention center whenever they will engage to this particular business and also, for the employment and enhancement of skills for the new recruited.

Hospitality Industry. Develop more convenient services for the clients and contribute more options in terms of hospitality services.

Tourism Industry. Rapid growth, increased competition and shifting consumer trends make tourism a demanding industry to navigate. Changes represented by the emerging growth of competing destinations, the expansion of convention facilities worldwide, funding accountability, and security and travel concerns present constantly evolving challenges and opportunities for destinations and businesses serving the travel and tourism industries. Economy of Zamboanga City. Often conceived to support economic growth and development, convention centers serve to provide a location for meetings, conventions, trade shows, public shows, the arts, and local interests. Because our development and operations typically involve taxpayer investment, benefits are measured in terms of out-of-town visitors, occupied room nights, incremental taxes, and sales. The success of a center is measured by its ability to generate economic benefit for the community.

Objectives of the Study

Noblesse Convention Hall and Catering Services aims to:

1. Build relationships with investors, secure management contracts and successfully manage the convention centre’s investments, underpinning asset values. 2. Establish long term-human experience about different services such as Fine Dining, Buffet and other. 3. Provide a high quality products and services provide customer’s satisfaction. 4. Offer more comfortable facilities and equipments to be used in every event. 5. Achieve levels of profit sufficient to provide for reinvestment and suitable returns to shareholders and investors. 6. Manage convention halls by human resource policies which encourage and reward individual and unified effort and achievement, provide training and personal development opportunities and create a working environment in which staff can feel a real sense of job involve. 7. Adopt best commercial practice and ethical standards in dealing with clientele, suppliers of goods and services and other contacts. 8. Seek to comply with all statutory legislation and other external relevant authorities. Define and keep under review Company policy, allowing flexibility for local requirements.

Methodology

The proponents used primary data gathering to support the feasibility study. There are one thousand seventeen (1,017) registered residents in Barangay Pasonanca, Zamboanga City. The proponents conducted survey to the randomly selected thirty (30) respondents to obtain their opinions regarding the Convention Hall. This sampling technique is Random Sampling Technique which was used by the proponents to determine respondent’s insights and preferences regarding the proposed business. These chosen thirty (30) respondents are residing near the proposed location of the Convention Centre. We selected them because we believe that their insights and opinions matters much in the said establishment.

Scope and Delimitation of the Study

This feasibility study was conducted at Brgy. Pasonanca, Zamboanga City. The respondents will be the selected (30) thirty residents among the 1,017 total number of population of Brgy. Pasonanca. This chosen (30) thirty respondents are used by the proponents to represent the total population of the barangay and determine their insights about the proposed Convention Hall.

Definition of terms

The following are the terms that are operationally used in the study:

Auditorium. This term means Hall or lecture room: a hall or a building with a hall that is used for lectures, concerts, and other events. The promoters will locate two (2) Auditorium in this Convention Hall.

Catering. A business which you are going to provide Food Service at a remote site or a site such as a hotel, public house or other location. The noblesse also offers this kind of service to give more convenient to our clientele.

Convention Centre. A large building or group of building designed for Convention and industrial show. The proposed business of the promoters which is the “Noblesse” is a Convention Hall.

Management. The act or skill of controlling and making decisions about a business, department, sports team and the process used by Managers in deciding on how to use something.

Sampling Technique. In statistics, quality assurance, & survey methodology, sampling is concerned with the selection of a subset of individuals from within a statistical population to estimate characteristics of the whole population.

Off-season. A period of time when travel to a particular place is less popular and prices are usually lower. A part of the year marked by a cessation or lessening of normal activity, as of a business.

MARKETING COMPONENTS

Market Description

A Convention Center is often conceived to support economic growth and development, convention centres serve to provide a location for meetings, conventions, trade shows, public shows, the arts, and local interests because their development and operations typically involve taxpayer investment, benefits are measured in terms of out-of-town visitors, occupied room nights, incremental taxes, and sales. The success of a centre is measured by its ability to generate economic benefit for the community. The Noblesse Convention Hall and Catering Services offers a venue for various occasions like weddings, birthdays, conferences, conventions and etc. It serves a delightful, mouth- watering and delicious menu with outstanding services where price is reasonable and affordable. The atmosphere is so accommodating, coupled with convenient furniture where one can feel relax and comfortable. It is also a child friendly place where in the children can enjoy the view on nature that can be seen in the lobby. The building can cater at least 150 head in every conference room or reception. The said place is just accessible to transportation too that cause no hassle at all. The environment and surroundings also provides a healthy fresh air that everyone surely loves. Moreover, the proponents will provide
advertisements, online ads in our official website and brochures where customer can choose their desired services they wish to avail.

DEMAND AND SUPPLY SITUATION

The outcome of our survey that we have conducted in Barangay Pasonanca has a result where in 29 out of 30 respondents agreed to construct new Convention Hall in their place. In other words, the demand is higher than the supply which the illustration shows below.

1. If a Convention Hall and Catering Services will be established in Pasonanca, Zamboanga City, Will you avail its products and services?
The Figure 1 explains that, among the 30 respondents there are 5 of them who disagreed to avail our products and services for reasons like, losing their small businesses but 25 respondents agreed to avail our products and services. It clearly states that majority of the respondents are willing to avail our products and service.

2. How often will you patronize our business?

The Figure 2 explains that out of the 30 respondents, there are 6 respondents who would celebrate their events/occasions in a Convention Hall monthly, 3 weekly and 21 yearly. It clearly explains that the respondents would most likely to celebrate their events yearly regarding any occasions they have.

Figure 3. “What kind of paying system would you prefer for our service?”

The Figure 3 interprets that out of the chosen 30 respondents, 3 of them wanted the paying system to be per head and the 27 of them wanted it to be Package Deal. It clearly states that about 10% of the respondents are most likely to pay Per Head and almost 90% of them, the majority of the respondents mostly wanted to pay per Package Deal.

DEMAND AND SUPPLY ANALYSIS

Situation Analysis

The Noblesse Convention Hall and Catering services is not only limited for the local Residents of Barangay Pasonanca, but also other customers that are fascinated in the services we offer. Nowadays, the status of the economy of Zamboanga City is increasing that’s why the need of convention halls and catering services are also cumulative because of various occasions.

ANALYSIS OF COMPETITORS

This in-depth analysis of our industry competitors can help us to identify opportunities for improvement within our own business. A comprehensive analysis will help us in obtaining information about important competitors, and using that information to predict competitor’s behavior. Our analysis includes the more important existing competitors as well as potential competitors such as those firms that might enter the industry, for example, by extending their present strategy or by vertically integrating. The following are the direct and indirect competitors that are threats to our business.

Direct competitors:

Competitor:
Melriss Convention Hall and Catering Services – located at Tumaga, Zamboanga City.

Strengths:
They manufacture wherever they can produce high quality product at the lowest possible price. Their location is accessible and accommodation is fairly well. Offers discounts in every package deal you would wish to have to call the attention of the consumers. Competitive strengths.

One of the known convention hall in the City.

Weaknesses:
Lack of attractions.
Cannot accommodate a very large number of customers.
Lack of facilities.
Lack of space in the location.

Competitor:
Terra Cotta – located at Tumaga, Zamboanga City.
Strengths:
There’s a perception of safety and convenience with parking and accessibility. Offers discounts in every package deal you would wish to have to call the attention of the consumers. Offers different kind of options on how you would want your event to be done. Weaknesses:

Lack of complete facilities.
Lack of amenities.
Not competitive enough.

Indirect Competitors:

Garden Orchid Hotel – is just five minutes from the international airport and ten minutes away from the bustling city, known for its well-appointed, spacious and comfortable accommodations. Offers uniquely satisfying combination of Asian and Western cuisine and enjoy market-fresh food or sample our exquisite menu selections.

Hotel Perlita – From the outside the Hotel Perlita looks like a hotel straight out of the Spanish times but once inside, one will realize that this Zamboanga hotel is very modern. Hotel Perlita has a ballroom perfect for events such as birthdays or wedding receptions and the function room can accommodate up to 50 people. There are two restaurants at this Zamboanga hotel and they are the Lobby Café and the more stylish Montemar Restaurant.

Marcian Garden Hotel and Convention Center – dubbed as a preferred home away from home. Specially designed to cater to your comfort and convenience. A perfect venue for banqueting and business meetings, conferences, seminars, weddings, baptisms, birthdays, anniversaries, cocktail parties and other events.

MARKET SHARE

The Market Share will be 25% of our initial investment of sixty million pesos (60,000,000php) since one of our promotion strategies is to utilize a low-cost, low-visibility promotion program because of our limited ability to grow rapidly in the first year.

Proposed Marketing Programs

Channels of Distribution

The channel will start with the producer of the convention. The productions of all the committee will be done before and the day of booked occasion. Our group, which is composed of 10 members, will do the entire production. Charmaine B.Lunjas, Alvee Rey F. Husain, and Estella V.Narciso will be in charge of the Food and Beverage committee. Sheena Mae G. Kilat, Nor Aineh R.Barazon, Jonalyn E. Yanson, and NadzraMisuariwill be in charge of production and decorating committee in the designated area of occasion booked. Michelle H.Desiderio, Ronalyn V.Cataylo and Genesee M.Tabunyag will be in charge of invitations and programme.

Promotion Strategy

Noblesse Convention Hall and Catering Services plan is to utilize a low-cost, low-visibility promotion program because of our limited ability to grow rapidly in the first year. This promotion program includes the following:

1. Total facilities management.

2. The quality of the products and ingredients used in the preparation of meals is of primary importance

3. Prioritize taste, dietary nutrition and balanced eating. We are surrounded by qualified staff that work in partnership with our clients to create their menus

4. Food safety: compliance with the specifications documents and process verifications

5. Occupational risk prevention: continuing vocational training and development of a safety manual for our collaborators in order to decrease the number of accidents at work

Website

We will introduce our business to a number of target markets via a website campaign. We will use various networking sites like Facebook, Tweeter and Multiply. We plan to continue this campaign as we move closer to and after launching the business, keeping potential customers apprised of our development and eventually, of the menu and services we offer.

Word of Mouth

The business will be marketed through marketing campaign by the customers. Those who already booked our works will tell their colleagues and they would most likely to visit the establishment and hopefully recommend us to their families, friends, co-workers and relatives, so on and so forth.

Fliers

2,000 flyers will be distributed in the adjacent neighborhood and on the whole city of Zamboanga the day of convention with the pictures of the production printed to increase the booking visibility among the patrons. The production will be peddled round the Zamboanga City by the team members.

Tarpaulin

4pcs. of 4×5 tarpaulins with the company logo, pictures of the product and the venue of sales. It would be set up in various locations prior to launching the business to attract potential consumers and inform them of the productions being offered.

Advertising and Promotion

PROMOTION & ADVERTISING

ITEMS

PIECES/ PACKS

PRICE
Fliers
Php 2,000
(ink and printing)
1,000 colored copies
Php 2,000
Tarpaulins
Php500/pieces
Proposed location:
Pasonanca
Sta. Maria
Canelar
Baliwasan
Putik
Guiwan
San Jose Road
Tetuan
Talon-Talon
Tugbungan
4 pieces
Php2,000
TOTAL

Php 4,000

FACEBOOK PAGE

One of our advertising strategies is by the website. Since we all know that facebook nowadays became the most popular and ever visited website because of its many functions like for communication, business, and many more. The importance of this is for those people who are not fun of roaming around the city, and those who mostly stays at home, for them not to be exhausted in visiting the establishment just to ask for an information regarding the establishment. They could just go visit the website and all information, and contact numbers are provided in the said website.

Company Logo

Projected Sales

Organization and Management Aspects

Description of Organization

The Noblesse Convention Center and Catering Services is a Corporation form of business ownership which will handle the management of the business. There is a store manager who is overall in charged for the day-to-day operation of the business. Also, there are 2 assistant managers who are assigned at the back-up plans, and other things that the general manager is not capable of doing so. One is assigned at the technical aspect and the other is assigned at the market aspect. At the present, the establishment has the total of 23 employees and as the business grows, new employees will be hired for the minor business operations. Through an organized organizational structure, there will be smooth operations of the business.

Organizational Chart

Job Description and Job Specialization

The person(s) appointed will be expected to take part in some or all of the following: Jointly coordinates all services structured to assure the proper management of the Convention Centre’s events. Provision of advice and support to Departments on a wide range of training of employees and development issues. Managing in-service and external training activities including management of budgets. Designing, organizing and delivering different forms of services that can attract patrons. Provides leadership and training to all mid-level supervisors relative to employee actions. Assures that consistency exists in all departments relative to City and Convention Center personnel policies, rules, and procedures. Continuous learning in relation to best practice and new ideas in Convention Centre and other aspects of staff development. Managing and developing staff in the Civil Service Training and Development Centre. Ongoing liaison with other service providers engaged in the delivery of products and services. Such other functions as may from time to time be required to fulfill the business objectives of Noblesse Candidates should note that on appointment, some travel may be required to deliver training in regional locations and when this occurs, appropriate travel and subsistence arrangements will apply. Effective practices/programs for provision of quality customer service and monitoring of service delivery. Principles and practices of public administration, municipal budgeting and expenditure monitoring, supervision, and public building management. Job Specification

Required Knowledge, Skills, and Abilities:

1. Must have comprehensive knowledge of human resources, labor relations, training and development, and administering policies and procedures. 2. Must have good knowledge of public assembly facilities services and practices. 3. Must have the ability to communicate effectively, both orally and in writing. 4. Must be able to effectively interact with elected officials, government and business leaders and executive level representatives. 5. Must have the ability to establish effective working relationships with clients and co-workers. 6. Must have the ability to interview, select, and place job applicants. 7. Must have good personnel management skills and knowledge of long-range planning practices, administrative analysis, and public and community relations. 8. Must have good negotiating skills.

9. Must have good leadership skills.
10. Must have a strong focus on quality customer service.
11. Good motivational skills and be capable of working well on one’s own or as a member of a team. 12. A proven record of willingness to take the initiative and adopt a proactive approach.

Minimum Education and Experience Requirements:
Education A bachelor’s degree in business, human resources, hotel and Restaurant Management, industrial psychology, or related field from an accredited college or university. Experience – Five years of experience in a hotel/restaurant. Recruitment and Selection Process

1. Sourcing – Our establishment initially sources employees from its deep professional relationships as well as conferences and data base searches. 2. Screening – Applicants are screened through our proprietary system, which analyzes the funds both on a relative peer group basis as well as stand-alone basis. 3. Evaluation – The evaluation goes through a detailed due diligence process including an analysis of the asset management firm, its investment process, risk management and operations. 4. Selecting – After thorough assessments of the funds, an approved list of applicants and products are constructed. 5. Monitoring – continuous risk monitoring for performance, style drift and organizational changes.

Cite this Feasibility Study of a Convention Center

Feasibility Study of a Convention Center. (2016, Jul 17). Retrieved from https://graduateway.com/feasibility-study-of-a-convention-center/

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