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ECO-FRIENDLY HOTELS IN COLLABORATION WITH AFRICAN SAFARI TOURS

ECO-FRIENDLY HOTELS IN COLLABORATION WITH AFRICAN SAFARI TOURS

BA Hotel and Hospitality Management CourseBS 3149 – Research Methods in a Hospitality Context

Module coordinator:

Submission date:Abstract

This research paper seeks to evaluate the nature of relationship between hotels and African tour operators undertaking eco-friendly activities. The area of concentration chosen for this research is Kenya in East Africa. It is through this research, that fundamental related to the current context of how hotels and African safari tours are working to ensure they both remain profitable. For example, the contribution of tourism to Kenyan GDP is at 448.4bn Kenyan shillings, that is 12.5% to GDP contribution (Blamey 2001). Care for environment is also an important aspect covered in this task. It is evident that the wildlife population in Kenyan game parks is declining each day part of the reasons identified contributing to this decline is encroachment of wildlife habitation and increased human activity. The later is contributed by increased frequency of tourists as stakeholders in the tourisms sector seek to make more profits. In order to understand this topic in detail this research project has identified hotels in the Rift valley as well as Kenyan coat line. The hotels under investigation are deemed to be eco-friendly hotels and how the liaise with the African safari tour operators to ensure they provide the best eco-friendly services. Research methodology after reviewing the literature available will be conducted in the selected regions. Using random sampling technique the researcher will administer questionaries’ to selected population. Finally, having understood the problems facing eco-friendly tourism in Kenya this paper identifies several recommendations and how they can be implemented to solve impending challenges.

Table of Contents

TOC o “1-3” h z u HYPERLINK l “_Toc372863277″ECO-FRIENDLY HOTELS IN COLLABORATION WITH AFRICAN SAFARI TOURS PAGEREF _Toc372863277 h 1

HYPERLINK l “_Toc372863278″BA Hotel and Hospitality Management Course PAGEREF _Toc372863278 h 1

HYPERLINK l “_Toc372863279″BS 3149 – Research Methods in a Hospitality Context PAGEREF _Toc372863279 h 1

HYPERLINK l “_Toc372863280″Module coordinator: PAGEREF _Toc372863280 h 1

HYPERLINK l “_Toc372863281″Submission date: PAGEREF _Toc372863281 h 1

HYPERLINK l “_Toc372863282″1.0 Introduction PAGEREF _Toc372863282 h 4

HYPERLINK l “_Toc372863283″1.1 Research questions PAGEREF _Toc372863283 h 4

HYPERLINK l “_Toc372863284″1.2 Aim of research project PAGEREF _Toc372863284 h 5

HYPERLINK l “_Toc372863285″1.3 Research Objectives PAGEREF _Toc372863285 h 5

HYPERLINK l “_Toc372863286″1.4 Historical background into study PAGEREF _Toc372863286 h 5

HYPERLINK l “_Toc372863287″1.5 Rational of study PAGEREF _Toc372863287 h 6

HYPERLINK l “_Toc372863288″2.0 Literature Review PAGEREF _Toc372863288 h 7

HYPERLINK l “_Toc372863289″3.0Research Methodology PAGEREF _Toc372863289 h 12

HYPERLINK l “_Toc372863290″4.0 Findings and Discussions PAGEREF _Toc372863290 h 14

HYPERLINK l “_Toc372863291″4.1 historical sustainable practices in Kenyan hotels and tour operators PAGEREF _Toc372863291 h 14

HYPERLINK l “_Toc372863292″4.2 Investigation of growth and issues in tourism industry in Kenya PAGEREF _Toc372863292 h 15

HYPERLINK l “_Toc372863293″4.3 The benefits of sustainability practices among tour operators and hotels for the businesses and social life in Kenya PAGEREF _Toc372863293 h 16

HYPERLINK l “_Toc372863294″5.0 Recommendations PAGEREF _Toc372863294 h 18

HYPERLINK l “_Toc372863295″6.0 Conclusion PAGEREF _Toc372863295 h 19

HYPERLINK l “_Toc372863296″7.0 References PAGEREF _Toc372863296 h 20

HYPERLINK l “_Toc372863297″7.0 Appendices PAGEREF _Toc372863297 h 23

1.0 IntroductionThe task under this research project seeks to discuss the eco-friendly hotels in collaboration with African safari tours. The study will focus on a single location that is the situation of the discussion topic within the Kenyan context. Like in any other business sector of an economy tourism is no different and is focused on creating wealth for its country. Wildlife based tourism and safari tourism currently accounts for almost 70% of income realized in Kenyan tourism activities (Blamey 2001 14). Therefore, it is important for conservation of these wildlife resources. In this connection, the role of hotels and safari tour operators is fundamental in ensuring there are measures to ensure there is curbing further decline in the wildlife population. There is a need to know areas of potential expansion and make sure there is a sustainable wildlife resource. In the end this will ensure that the hotels keep reaping more profits but as well ensure the environment is protected for wildlife sustainability (Brandon, 2006 12).

Tourism sustainability refers practices undertaken by different stakeholders such as travellers, cultural heritage, promotes and respects local people and protects the environment. Some of the practices seen to improve sustainability includes controlling the number of visitors touring a site or hotel. In addition, promoting tourism to areas that have been previously been protected by government.

1.1 Research questionsThis research investigation will be guided by seeking answers to the following questions.

What are the ways of maintaining a steady population of wildlife in game park hotels?

What are the strategies that the African Safari Tours can employ to reduce environmental degradation?

What are the benefits that minimal environmental degradation grants tourism in terms of hotels and African Safari Tours?

1.2 Aim of research projectThe aim of the research is to evaluate the contribution of eco-friendly practices in Kenyan tourism industry while investigating the hotels and tourists.

1.3 Research ObjectivesThis research study seeks:

To review the history of sustainable practices among tour operators and hotels in Kenya

To investigate the growth and issues of safari tourism in Kenya

To find out the benefits of sustainability practices among tour operators and hotels for the businesses and social life in Kenya

These objectives would help promote sustainable lifestyles whereby environments remain preserved as hotels receive profits. This transpires through inspiring the development of sustainable and quality tourism that is culturally and socially acceptable, ecologically friendly, environmentally sustainable and economically viable.

1.4 Historical background into studyThis study finds that there are a number of reasons have contributed to this decline of wildlife population in Kenya. For example, lack of sustainable development, land degradation, change in climate, use of unsustainable land practices and increased human population pressure. The area of interest under this study is the Kenyan Rift valley and Kenyan coast regions focusing on the hotels and national parks in these localities. Therefore towards the end of this research it will be important after studying the situation of wildlife in Kenyan context, conduct a survey into understanding the area of focus in depth. More so, discuss the results gained from the research study after which the study will establish the recommendations to ensure sustainable practices to improve wildlife population protect environment and ensure hotels remain profitable.

The project will follow have 4 sections that will entail the following sections. Firstly, literatures review section that will revisit prior scholarly studies in the same field and provide an understanding the concepts to be used in this investigation. The next section will be a methodology that will outline the various research methods to be used name qualitative and quantitative approaches to collect data. Results and findings discussion section comes next and it is here the investigation report will be discussed leading to the last section on recommendations and conclusion based on the results of the project.

1.5 Rational of studyThe limitations of these studies provide a foundation for conducting an investigation towards collaborating eco-friendly hotels and African Safari tours. To begin with, this study focuses on a single region, East Africa, as a means of investigating real impacts of creating sustainable tourism industry. The previous studies did not indicate the real-time impacts of eco-friendly activities in a single region. In addition, the studies on hotels did not cater for the ambiguity of different types of hotels. It is crucial to highlight that there are luxury, mid-scale and economy class hotels (Buckley 2001,19). The collaboration of a travel company and Eco-friendly hotels is a new concept that deserves critical attention. This is because these entities share a responsibility on ecological issues from different fronts.

2.0 Literature ReviewEcology is among the most vital concerns in the modern century. Numerous companies and organizations are facing the pressure to engage in social ventures (Corporate Social Responsibility). This entails engaging in activities that are beyond mere profit making. This pressure is also felt in the tourism industry. The tourism industry garners a significant amount of revenues and involves various players. While focusing on Africa, it is essential to note that various tourism activities affect the natural ecological state. Ecology, therefore, is a wide term that involves the association of wild animals, plants, the climate, and human activities (Wenhong 2010, 200).

The African Safari Tours is an entity that helps tourists access various scenic and interesting sites in East Africa such as the Indian Ocean, mountains, game parks, and cross-country trips. It is essential to highlight that the concept of hotels is inevitable in such situations. Tourists normally require comfortable and safe places to stay while enjoying their tour or vacation in foreign countries. This, therefore, has encouraged the construction of luxury hotels that cater for the increased demand caused by the visitors. The Hotel industry eventually benefits from tourism activities within a country. In addition, hotels feel the pressure of upgrading their services as well as infrastructure since they reflect the host country’s reputation on an international platform.

Eco-tourism is a concept of sustainability concerned with the survival of future populations. Consumers and service providers, therefore, execute their activities based on the assumption that the future population will experience the same pleasures felt by the current generation. The environmental awareness and concerns hugely influence consumer behaviour patterns toward green businesses (Darnall 2008, 459). Many customers are professing their preference towards environmentally sensitive products. For instance, their willingness to pay for green products has improved. In turn, the production and operation procedures in companies have changed tremendously.

The hotel industry has particularly manifested changes in their operations as they respond to shifts in consumer behaviour. Numerous hotels are integrating environment conservation strategies in their products and services as a way of enhancing their competitive edge (Wenhong 2010, 214). It is essential to note that these hotels do not only satisfy customer needs, but they also lower the cost of operating such businesses. This is in line with the significant reduction in energy consumption that influences low water use and reduced solid waste. Hotels’ marketers are keen on green products because such changes attract more customers and elevate the company’s image (Darnall 2008, 447). Eco-friendly hotels strive after gaining an excellent reputation in the highly competitive hotel industry..

An investigation of the customers’ decision-making process in relation to green hotels revealed interesting details. It is notable that a customers’ decision-making process is difficult to investigate because it is a typical human behavior (Han and Kim 2010, 659). Notable marketing researches confirm that customers’ purchasing decisions are vital before and after the purchases since they influence the long-term success of an organization. An understanding of the related decision-making process is instrumental in establishing effective service and marketing strategies. It is essential to highlight that the decision-making process is complex and intricate. All the same, its understanding is vital for assessing the purchasing decisions of customers. The study employed the theory of planned behaviour in understanding this phenomenon.

The study found out that satisfaction, service quality and the overall image share a positive relationship with revisit intention. In essence, the study was suggesting that hotel businesses pursue the adorable attributes and services that endear customers to their nature of operations. These excellent attributes are instrumental in influencing favourable attitudes and inducing positive evaluations that attract additional customers. These elements strongly influence a customer’s intention to repurchase a service or a product. The study also found out that the frequency of a customer’s past behaviour considerably determines the intention to revisit a hotel. As the number of prior visits increases, a customer’s intention to visit a hotel becomes more likely.

An investigation studied the customers’ readiness to go green. The study examined the eco-friendly intentions, attitudes, and demographics. The research investigated whether eco-friendly attitudes influence elements such as willingness to pay, marketing a hotel by the word-of-mouth and the probability of visiting a green hotel. The study also investigated how the attitudes differ across age, household income, education and gender. The research noted the essence of the travel industry in the tourism business. The travel companies usually enhance their competitiveness through reliance on the natural attractions and destination environment. It is crucial to highlight that the travel companies have a negative effect on the environment through emissions and erosion of natural structures. As global warming becomes a major concern among individuals, the travellers are highly likely to make eco-friendly decisions in choosing hotels (Holloway 2002). When businesses understand the customers’ attitudes towards eco-friendly products, they articulate their activities towards such elements. The study found out that a hotel’s level of responsibility is a major incentive for customers to purchase given products.

It was notable that the most effective way of influencing this attitude regards offering services that highly please current customers. Satisfied customers employ the word-of-mouth to reinstate the perceived level of responsibility in a business. Green hotels, therefore, should offer practical solutions towards sensitizing their customers on the essentials of conserving the environment. For instance, eco-friendly hotels should organize exhibitions and seminars that help sensitize the public on the importance of having sustainable practices (Han, Hsu, Lee and Sheu 2011, 353). This form of active education ensures awareness among tourists and other industry stakeholders. Besides, the hotel businesses could engage in green practices such as recycling and reduction of emissions. These activities should embed in the brand and regular operations of the hotels.

The study uncovered gender differences in making purchasing decisions. It was notable that the female customers professed enhanced willingness to purchase eco-friendly products than male clients. The female customers also manifest increased willingness to employ the word-of-mouth in enhancing the reputation of a hotel company. Since the female customers manifest a stronger performance towards communication, hotels can retain the customer base by providing a learning experience (Blamey 2001).

A different research reaffirmed this position by noting that customers with positive attitudes and favourable impressions of green hotels are more willing to stay and pay more for the offered services. Marketers, therefore, should respond to such a scenario by providing incentives for customers’ influence on their sustainability programs. The hotel should also promote the image that positively influences individuals’ perceptions of their services. In addition, the research uncovered that older individuals had an increased zest to pay for environmentally friendly products (Han, Hsu and Lee 2009, 526).

Another study investigated the reasons that tourists have for visiting eco-friendly destinations. This is essential in portraying the complex set of issues that would inspire anyone to choose it (Environment.ucla.edu 2013). It investigates whether there are real incentives that would encourage a customer towards a certain tourism service. It explored different nationalities towards investigating the impact of culture in perceiving eco-friendly services. It was discernible that nature is a primary motivation for individuals when seeking new destinations, therefore, becomes an indirect incentive towards the preferred services or locations. It is essential in aspects such as romance, which is a cultural element that influences certain attitudes among individuals of different nationalities (Prebensen and Lee 2013, 111).

3.0Research MethodologyIt is fundamental to highlight that this research shall have a descriptive orientation. A descriptive research is essential for describing the state of eco-tourism as the concept thrives in the real world (Brandon 2006, 26). It, therefore, will combine elements of both qualitative and quantitative research. Qualitative data concerns with evaluating human responses to eco-tourism (Mugenda, 2003, 12). Quantitative research shall regard definite measurements in terms of tourist numbers and empirical relationships different kinds of information such as price paid for eco-friendly hotels or frequency to these parks. This data will be obtained from conducting random surveys on selected regions (Kothari 2004, 35). Human behaviour is a complex phenomenon for studies. In the context of eco-tourism, hotels can only flourish when individuals accept their services (Han, Hsu, Lee and Sheu 2011, 279).. This data, however, should be from real-time statistics about how individuals respond to given incentives to ensure they promote environment protection.

Primary research will form a major component of this research. A data collection method will entail collecting information from individuals and events. It is vital in this case because there should be practical results that address a business situation. The collaboration is a new idea that can only rely on contemporary data (Brandon 2006, 57). It is crucial to highlight that descriptive research involves portraying situations, as they exist.

Survey research would be instrumental in assessing feelings, thoughts, and opinions. Opinions and thoughts are usually subjective elements that vary depending on an individual (Wenhong 2010, 213). These subjective elements, however, are instrumental in marketing and general business activities because the researchers can use them to determine the suitability of a business initiative. Eco-tourism is a subject that should attract all the players for its profitability and success (Wenhong 2010, 213).

The survey will primarily entail a set of questions that the researcher forwards to the chosen respondents through the e-mail. In the survey technique, the population should be represented by a sample, to ensure that the research is less costly with regard to time and money. The survey will entail the use of questionnaires for sourcing responses, whereby, they will target a sample of the population of tourists and hotel staff (David et al 2006, 87). The questionnaires are instrumental because they allow respondents to accord feedback without facing the pressure of interviewers (Wenhong 2010).

The questionnaires will have a few questions that enable the interviewees to accord distinct answers in every section. These questionnaires will also be transmitted through the mail for feedback. The researcher, however, has to communicate with the hotels and respondents through the Internet because of their distant locations (Gössling 2006). They need to have prior information and offer informed response to the subject of research. The use of questionnaires will enable the researcher to illustrate the practices that are sustainable in the safari tourism in Kenya. In this connection, the random sampling technique will allow the tourists to respond to various issues regarding their selection of Kenya as a desired tourism destination (Ndurya & Marete 2010, 18). In addition, how they rank the services offered by the stakeholders more so, with respect to environment protection.

4.0 Findings and DiscussionsIn a total of 40 questionnaires prepared for this task the researcher managed to get 30 responses this represents a 75 per cent in the response rate. The questions were administered to visitors in hotels in the Rift Valley and Kenyan Coastal line region. The results through a demographic analysis illustrate that there was 11 male (37 per cent) and the female were 19 in numbers representing 63 per cent as in figure 1. Indicating that a huge number of the tourists to the eco-friendly hotels in Kenya. In terms of age analysis the biggest number is within the age bracket 30 to 39 both males and females with a score of 12 people in this bracket illustrated in figure 2.

The following results gained from using the identified research questions have been blended with ability to answer issues raised in the objectives of this study. The findings have been divided into three sections according to the nature of questions administered in this research.

4.1 historical sustainable practices in Kenyan hotels and tour operatorsIn this objective it was evident that the location of Kenya played out to be an important historical factor in influencing the number of tourist arrival into the country. In this connection, among the responses the researcher was able to get a total of 11 tourists regarded the Kenyan locality in the east African region as being favourable and a major tourist attraction factor as depicted in figure 3. This is equivalent to 37 per cent of the total key motivators. Coming in second is the value gained from touring Kenya and this is in connection to the different tourist’s attraction sites that are available for the tourists to enjoy. The value motivation factor has a score of 7 tourists and this is representative of 24 per cent. The other scores by order of scores are cleanliness, rooms and services. For purposes of this research it is important to look at the historical significance of Kenya towards sustainable ecotourism because the two main motivators have recorded a 61 per cent gaining the majority scores. In this connection, the geographical location of Kenya gives the country an important advantage over access to attraction features such as Indian Ocean, mountains, game parks, and cross-country trips (Liu 2003). The issue with this advantages is the fact that maintenance of the environment for instance to ensure there is sustainable tourism remains an obstacle (Manning et al 2002). In this connection, of the 30 respondents interviewed in this research 16 tourists felt that the tourism industry has not exhausted available initiatives that would see the sector enjoy high sustainable development as in figure 7. This is because the country of recent times has experienced decline in wildlife population (Magical Kenya 2010). The 16 tourist’s response to this issue on Kenyan tourism efforts to sustainable eco-tourism is representative of 53 per cent.

4.2 Investigation of growth and issues in tourism industry in KenyaIn order to investigate this objective it was important to understand the issues or trends in Kenyan tourism industry and the visitor’s perception about these aspects. The tourists ranked the scenery of the big five are the reason many of the respondents fly into Kenya and enjoy the view of the animals. In fact, 13 respondents gave this as their main reason for coming to Kenya which is about 43 per cent of the total respondents as in figure 4 below. A decline in the population of wildlife that includes the big five would be a major blow to the Kenyan tourism industry. Over the last two years Kenya has experienced high incidences of poaching activities with over 1300 elephants being killed in a period of 2 years between 2012 and 2013 (Robb 2008). This is affecting the growth and expansion of the industry as the tourists by the time the get into the national parks the number of big five available for seeing is declining each year. In addition to, other environmental issues such as the hotels initiatives to provide eco-friendly services captured the interest of this research. For example the tourists responded that existing features in the hotels were a major reason they visited the selected regions (Putzker 2013). In this criteria use of environment friendly towels and sheets reuse programme recorded the highest score with a total of 11 scores representative 37 per cent as depicted in figure 5 below. This is followed on closely by the ability of the hotels to raise awareness on allergy through handling of furniture in the structures around the hotels with a score of 6 respondents agreeing on these initiatives. The ability to conserve water and energy were other issues identified to be of importance to the tourists. This is not only beneficial towards environment protection but also help the hotel owners save on costs from the water and energy expenses. The amount of money saved through such initiatives goes into funding other responsibilities such as corporate social responsibilities (Ndurya & Marete 2010). Carrying out service provision to the communities around the hotels is an important effort in ensuring there is growth of tourism with the local communities around the other stakeholders (Eco Tourism Kenya 2013). The respondents also expressed that in the 5 years they would want to see use of more local products in the tourism industry. A total of 12 respondents which is 40 per cent in the total population who undertake this survey expressed this need for local products. This can be in the use of green roofs and renewable energy. The country has depended on increased importation of goods from China that has seen increased use of foreign products in the industry (Holloway 2002). For example, most of low flow shower systems and fluorescent light accessories are imported from China but assembled in the country. 14 respondents were dissatisfied with the reuse of linen as they felt not comfortable because of hygiene as shown below in figure 10. This is more of a perception issue and has no any significant impact on affecting tourist visiting the eco-friendly hotels (Manning et al 2002). It serves the purpose of highlighting the need for handling the reuse measures with utmost care and to highest hygiene standards. Other issues of concerns were that the use of low flow shower systems came in second followed by use of local products. Fluorescent lights and the least score where the tourists felt dissatisfied were within use of green roofs.

4.3 The benefits of sustainability practices among tour operators and hotels for the businesses and social life in KenyaTourists visiting the country are an important source of revenue towards contributing to GDP growth of Kenyan economy. To investigate this matter the researcher needed to understand if the amount of costs incurred by the tourists was a representative of the services rendered in the hotels. As illustrated in figure 8 below, 19 respondents felt that the services rendered did match the costs they incur this is 63 per cent of the total population. To this end, the main argument is that the Kenyan economy has experienced lots of setbacks that in many cases there have been a decline in the GDP growth (Eco Tourism Kenya 2012). Despite these challenges the tourism stakeholders have been able to integrate the best practices to foster eco-friendly environments. This is the reason for instance, there are installations of green roofs and initiatives to save on energy and water to make life of tourists enjoyable and same time help the hotel owners reduce operating costs (Pricewaterhouse Coopers 2007). The tourists rated the services as being good at 14 scores which are 46 per cent while those who felt the services as being above good were 9 in number which is 30 per cent (figure 9). Combining these two reactions on rate of services gives a total of 76 per cent level of rating. This indicates that if the tourists had an opportunity of coming back to Kenya they would take up the chance and visit other tourist’s attraction sites. This means that Kenya has the benefit of experiencing economic growth despite the available challenges that would be deemed as deterrence towards the industry growth (Prebensen & Lee 2013). This is realized through come back tourists an example of the benefits of fostering sustainable eco-tourism initiatives. The comeback visitors are illustrated through surveying the number of tourists who have been in Kenya at least 5 years ago which has the highest score of 16 (figure 11). This is representative of 54 per cent and qualifies to be the majority number of year on average that visitors wait before going back into the country. The visitors who responded to this survey felt that there was need for increased awareness about eco-tourism. Using the sample population used in this survey a total of 20 tourists which is 67 per cent felt that more needed to be done to have increased awareness (figure 12).

5.0 RecommendationsHaving studied the historical, growth and issues facing the tourism industry in Kenya with relation towards promoting eco-tourism this study has identified several recommendations.

Firstly, there is need for protection of the wildlife more so the big five animals that are being faced by eminent problem of extinction (Robb 2008). This can be done by the government introducing harsh penalties on poachers for example, legislate on heavy fines that is beyond amount collected through poaching illegal economic activities.

Secondly, this research paper recommends the need for exploiting local products to promote eco-tourism practices. For example, invest on exploring the various ways of supplementing green roofs that are imported from China with materials extracted from the country (Ryan 2005). Eco-tourism is not about visitors, parks and hotels but should lead towards community development. In this connection, by exploiting locally available products will lead to setting up industries to produce the local products to use in tourism industry thereby employing the local men and women.

Thirdly, this research notes a need for increased awareness on the benefits of eco-tourism practices to the environment and community. This can be achieved through full participation of all stakeholders that is the local residents, hotel and safari tour operator owners as well as the government of Kenya (Wenhong 2010). This will lead to growth of the industry with incorporation of all other stakeholders in an economy.

6.0 ConclusionIn this research it is evident that a lot is to be gained from the tourism industry in Kenya. One way is through increasing the number of tourists flocking into the country on annual basis. This can be achieved if there is effective marketing on what the industry offers to the foreign visitors. Kenya offers a

Eco-friendly Buildings

Eco-friendly Buildings

Green architecture can be broadly defined as the construction of buildings that minimize on the consumption of natural resources and are environmentally friendly. On the other hand, sustainability can be defined as economic and social development that meets the needs of the present without compromising the ability of future generations to meet their own needs. On an architectural point of view, sustainability can be viewed as the ability of maintaining the ecosystem without depleting its natural resources today whereby the effects will be seen in the future. Green architecture came into the limelight in 1970s in response to visible evidence of environmental damage and rising fuel prices and this gave birth to the first Earth Day occasion. Minimization of wastage on natural resources makes architectural designs economically friendly. For the buildings to qualify as environmentally friendly, they should be built in such a way that there are no harmful emissions to the atmosphere and no dumping of waste materials into the environment.

Over the years, architecture has evolved to include in its designs technologies that avoid wastage of resources like water and electricity. Architecture has also adopted ways of recycling materials to minimize on consumption and wastage of these materials. This paper seeks to establish examples of this type of architecture and its benefits to the environment.

Construction companies have incorporated ways of saving energy in their designs, as well as ways of reducing emission of carbon into the environment. Buildings in cities account for about 15% of carbon dioxide emissions, hence being responsible for climatic change problems and the solutions to these problems. By fitting in modern methods of construction, carbon dioxide emissions into the environment can be reduced significantly. One method that construction companies have incorporated in buildings is energy saving. They have employed the use of solar energy which is far more economical than electricity. Other energy saving features in today’s green architecture include well- distributed lighting fixtures and demand controlled ventilation. The lighting takes advantage of daylight such that there is no need of putting on power during the day.

The daily damage being inflicted on the environment has left architects with a huge responsibility of taking care of nature. They understand that natural resources do not last forever and have to be protected. They are aware of a new sensibility that links architecture to environmental concerns. Eco- efficient buildings release less emissions into the air, send less waste materials into the landfill and make less dangerous chemicals. Eco-efficiency comes along with reducing, reusing and recycling of materials. Architectures of eco-efficient buildings employ different tools to minimize energy loss. Buildings are tightly sealed to reduce heat and cooling loss, hence reducing the need for air filtration. Dark-tinted windows that emit light but reflect heat lowers solar income into a building, therefore lowering the need for air-conditioning. This cuts on fossil fuel consumption and the power plant in turn releases fewer pollutants into the atmosphere.

Formal innovations can also be used to make big buildings more resource efficient. For example, Edificio Malecon, a 125,000 square Ft building was designed to reduce the heat of the sun by pinching its long narrow mass on the East and West ends and using sun-shades to screen its broad northern and southern sides. These innovations eliminate direct solar radiation during peak cooling months.

Recycling building materials and retrofitting building mass are also ways being employed to reduce the environmental impact on large buildings. For example, renovation of the Audubon Society’s offices in a 100-year old building in Manhattan preserved 300 tons of steel, 9000 tons of masonry and 560 tons of concrete while making the building a model of high-tech energy efficiency. As an emerging market of reusable materials like glass, sheetrock and carpeting becomes more stable, the use of these materials will be a rule more than an exception. Dematerialization, the strategy of using fewer materials to make things, is also another technique being employed in green architecture to reduce resource consumption.

The choice of building materials have been proved to affect the health of the people living in a building , the ones building it and those who dispose off the construction materials. Certain construction materials, e.g., (polyvinyl chloride) PVC, which is a common ingredient in doors, windows, floors and wall coverings, contains heavy metals that are carcinogenic and endocrine disrupting. These materials seep-off and accumulate in tightly sealed buildings making the air that the people in those buildings breathe harmful. Green architecture employs use of materials that are less toxic like glass, steel and concrete. The use of less toxic materials reduces enormous illnesses and improves the living standards of people. Clinica Verde is an example of a non-profit organization that seeks to address and combat health problems among the impoverished. Their work is to take care of the health needs of the people while at the same time designing a clinical structure that incorporates highest possible standards in sustainable building practices. The structure will demonstrate respect for the shared resources of the world.

Another resource that is largely wasted in architecture is water. Architects attempt to curb run water, reduce waste water and use natural plant materials to mitigate the impact buildings have on their surroundings. Large buildings can consume millions of gallons of water a day while during rainstorms millions of gallons of water are lost to practical use. Water runs off to sewers and into the ground absorbing toxins from the construction materials. Architects have come up with ways of using this run-off undrinkable gray water in sinks and toilets. This saves a lot of clean water that is otherwise used in drinking and other household chores. Greenery, which helps promote health by converting carbon dioxide into oxygen, is also employed in green architecture to treat chemically saturated run-off water before releasing it into the environment. In some instances, greenery and other organisms are even being used to transform waste water into safe drinking water.

Dumping of waste materials at construction sites have also become a major concern for many environmentalists. The construction materials mix with rain water and seep through the soil. This leads to degradation of the topsoil and increases desertification. The same rainwater is carried to water bodies e.g. rivers and oceans and pose a great danger to marine life. Waste water (sewerage) from buildings also poses a great danger to the environment when dumped into water bodies. Green architecture employs tapping of the rain water and directing it to some other use like toilets, while making sure that waste water doesn’t reach water bodies.

Another way that green architecture is employing to conserve the environment is the use of eco-roofs planted with sod and native grasses. The green roofs help lower a structures energy use by promoting natural evaporation in summer and providing insulation in winter. The green roofs also contribute to the beautification of cities, but most importantly, green roofs contribute to the clean, fresh air in the city, which is hard to come by. The shrubs absorb the emitted carbon dioxide and releases oxygen into the air. They also control runoff water, reduce sound reflection and transmission. The green roofs also help maintain local wildlife though small scale and counteracts the harmful effect of urban heat island which makes urban areas a few degrees warmer than rural areas. A good example of a building that has eco roofs and gardens is the Commerzbank in Europe. The building has green gardens after every 10 floors. It also uses double glass walls that naturally ventilate the offices and sets a new standard for the high-rise monotonous repetition of floors common in other buildings.

Another green architecture method is the use of density in designing structures. Density reduces a society’s overall drain on resources. City dwellers occupy less space and have no lawns to water, share heating systems with their fellow neighbors and use public transport. Their counterparts in suburbs live in single family houses that occupy large space and use more resources. The most successful green projects in cities are moderately dense and clustered. Low-impact materials and technologies are on the rise in residential areas and they take advantage of green development methods for commercial buildings. Builders have made great impact in reducing environmental impact by making use of harvested lumber and recycled materials, installation of non-toxic and energy-efficient systems, selection of construction sites that take full advantage of solar and wind power. The conversion of industrial buildings into residential properties is also intrinsically green. Re-use of old structures by renovating them is also a good way of preserving the environment.

Eco-friendly building should also be easy to access. That means that a building should be connected well to public transport. People living in urban areas are more likely to use fewer resources than those living in places away from the city. This is because a person living far uses fuel driving to their place of work while the one living in the city might just walk. Planners are narrowing the commuting distance between the commercial and residential areas and designing complex transportation systems within residential areas. Planners and green architects think about the environmental impact of their structures by including transportation costs in their calculations about the sustainability of different materials. With the recyclable resources, existing infrastructure and density of suppliers, cities have turned out to be the best sites for home building.

Eco-Beauty Centre Beauty Business Plan

Eco-Beauty Centre Beauty Business Plan

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Table of Contents

1.0 Business Description ………………………………………………………………………….3

1.1 Executive Summary …………………………………………………………………………..3

1.2 Mission, Vision and Objectives ………………………………………………………………3

1.3 Financial and Strategic Objectives ……………………………………………………………………………….4

1.4 Performance Highlights ………………………………………………………………………………………………5

1.5 Location of the Business …………………………………………………………………………………………….6

1.6 Ownership and Management ………………………………………………………………….7

1.7 Sources of Finances and Funds ……………………………………………………………….7

1.8 Keys to Success ……………………………………………………………………………….8

2.0 Company Summary …………………………………………………………………………..8

2.1 Start-up Summary …………………………………………………………………………….8

3.0 Products and Services …………………………………………………………………………9

4.0 Marketing Strategy and Implementation ……………………………………………………..9

4.1 Competitive Edge ……………………………………………………………………………10

4.2 Marketing Strategy …………………………………………………………………………..11

4.3 Sales Forecast ………………………………………………………………………………..12

4.4 Milestones ……………………………………………………………………………………14

5.0 Management Summary ………………………………………………………………………15

5.1 Personnel Plan ……………………………………………………………………………….16

6.0 Financial Plan ………………………………………………………………………………..17

6.1 Projected Cash Flow …………………………………………………………………………18

6.2 Projected Balance Sheet …………………………………………………………………….19

6.3 Financial Assumptions ………………………………………………………………………21

Bibliography …………………………………………………………………………………….22

BUSINESS DESCRIPTION

1.1 Executive Summary

Eco-Beauty Centre will be 24/7 salon and beauty center that will be dedicated to providing superior and quality beauty and salon services to its clients mainly to satisfy their diverse needs and demands. Its primary objective will be to ensure that quality services and products are offered to its customers at affordable prices. Eco-Beauty Centre aims at rendering exceptional quality products and set an environment that is comfortable for the clients/customers and the staff members. Eco-Beauty Centre’s management and the staff will focus on creating a customer friendly environment by considering the diversity of customers’ ideas, cultures, and preferences. As the name suggests, Eco-Beauty Centre will focus on promoting environmental awareness and conservation in its services and products to the larger community and the preservation of nature. The spirit of hard work and undying efforts of this noble idea will be facilitated by the high demand from our potential customers at friendship level. Besides, the recruitment of highly qualified beauty professionals to support the venture will make it a potential creation.

1.2 Mission, Vision and Objectives

Our Mission: The mission of Eco-Beauty Centre will be to offer and supply beauty products and services that will enhance the physical beauty and mental relaxation of the clients, thereby promoting healthy living in the society.

Vision: To become the preferred and most affordable beauty center in London over the next three years.

Our Motto: “The Trend Begins with Eco-Beauty Centre!”

Overview of Key Objectives

To provide quality and professional beauty and salon services and products to its customers.

To offer services and products at differentiated rates in order to make them affordable to all income groups.

To increase the access to beauty and salon services to the low and medium class groups in London and its surrounding.

Capturing more than half of the existing market size in this industry within three years.

1.3 Financial and Strategic Objectives

To post a net earnings (after-tax profit) of over £50,000 within the first three years of its operations.

To achieving a good command of the beauty market share in London over the first two years.

To realize an asset base of £500,000 within the first three years of its operation in London.

1.4 Performance Highlights

1.5 Location of the Business

This venture has will be started at the right time and in the best location. After a relentless exploration of possible sites for seven months, it was established the London will be the best location. The choice of London is founded on the high population in the city that potentially represents a strong customer base. Besides, being a preferred business hub in U.K., the city enjoys favourable business environment characterized by higher business returns and auxiliary services that enhances business growth and development. The higher number of learning institutions and students of medium income level in London are one of the target customers for Eco-Beauty Centre, hence the decision to locate the enterprise in London. Preferably, the enterprise will be located in Cambridge Center. The site of the business is strategic given the heavy human traffic that uses the road and will likely bump on the magnificent salon. It is at a junction and this will increase its accessibility to many potential clients/customers from either side of the city.

1.6 Ownership and Management

Since the idea was generated by Janet Thatcher and David Hey, Eco-Beauty Centre will be owned by the two partners, hence a partnership form of business. David Hey, co-owning this venture with Janet Thatcher, has a wealthy experience in running and managing business enterprises of the same nature given that have managed some high class salon and beauty supermarkets in UK. David has excellent skills and attractive dexterity when handling customers and this will be responsible for the fame that Eco-Beauty Centre will have over its competitors. Janet, on the other hand has gained years of experience in business management while serving as the sales and marketing manager at Birmingham Group Enterprises. Eco-Beauty Centre expects will therefore rely on the exceptional managerial and leadership abilities of its co-owners to play a role in the success of the enterprise.

1.7 Sources of Finances and Funds

The primary source of finance to start the business will be partners’ contributions and personal assets. In addition, given the higher financial demands for setting up the venture, Eco-Beauty Centre will seek to source additional finances through loans, donations, and family support. Existing assets and personal guarantors will serve as the collateral for the borrowed resources. These loans will be repaid from the firm’s revenues.

1.8 Keys to Success

The keys to the success of Eco-Beauty Centre enterprise will include:

Prime Location: Eco-Beauty Centre will be located in London, the heart businesses in UK that boast of highly population, hence potential customers. Besides, the location of London makes it accessible and open to all groups of people independent of their income.

Quality Products and Services and Environment: The management of Eco-Beauty Centre will strive to ensure comfort to their customers through use of ultra modern equipment for relaxation coupled with quality and affordable services and products.

Convenience: To ensure total satisfaction of the clients, Eco-Beauty Centre will provide a variety of services under one roof 24/7.

Reputation: The public image and perception of people about the staff and management of Eco-Beauty Centre will be important on the basis of excellent and faithful service to customers.

Management and Leadership Experience: The co-owners of Eco-Beauty Centre have in the past managed large business enterprises, thus giving the much needed experience for the success of the enterprise.

2.0 COMPANY SUMMARY

Eco-Beauty Centre is planning to commencement operating in February, 2014. The enterprise will deal in a range of beauty products and services that will meet the diverse needs of the potential customers. Eco-Beauty Centre will offer high quality and affordable nail, hair, and skincare services and variety of the global class beauty and skin care products. The Eco-Beauty Centre will be committed to acceptable business ethics and code of conduct to set pace ahead of its competitors in beauty and skincare services and products. This will be enhanced by providing the services under one roof in a convenient location.

2.1 Start-up Summary

The initial plan was to acquire an established salon but after this failed, the co-owners reached a decision to start Eco-Beauty Centre. Being a capital intensive venture, more capital and financial resources will be required to pay for the lease cost of the premises, finance interior design of the salon, and acquire essential assets and operational machines and equipments for the beauty center. The capital requirement for leasing is approximated at £32,500 while the acquisition of the basic salon equipment will approximately cost £27,000. There will be personal investment by the owner amounting to £50,000 per partner. 3.0 PRODUCTS AND SERVICES

Eco-Beauty Centre is set to scale the heights of a full service beauty and skin care center. The range of services and products enlisted by its management on offer will include:

Hair: relaxers, curling, perms, colors, cuts, shampoo, conditioning, curling, weaving, and waving

Nails: pedicures, polish, manicures, and sculptured nails.

Skin Care: Modern facials, body waxing, and massage.

Skin care products: body lotions, petroleum jelly and other skincare herbal oils.

Consultancy: The firm will offer free consultancy services to the clients/customers on basic beauty care issues and facts and myths surrounding skin care chemicals.

4.0 MARKETING STRATEGY AND IMPLEMENTATION

The strategic plan of Eco-Beauty Centre will be to win customers’ loyalty and through offering quality products and services at affordable rates for its customers. In addition to quality services and products, the enterprise will also focus on excellent customer relationship and creation of comfortable environment for its esteemed customers.

4.1 Competitive Edge

Eco-Beauty Centre will be committed to set standards in London and become the beauty place of choice for the customers. Given the large number of competitors in London offering the same services and products, Eco-Beauty Centre will therefore has to be smart to gain a competitive advantage over its competitors. In order to realize this, Eco-Beauty Centre will be unique in its services and products. Unlike the majority of the competitors that only offer limited services and products, Eco-Beauty Centre will deal in range of highly differentiated products and services. Eco-Beauty Centre will also offer these services and products within the same premise under one roof and thus saving the customers from distance walk in search of products and services.

The second competitive advantage that Eco-Beauty Centre will have over its competitors is affordability and relatively low cost products and services. Unlike its competitors that charge higher prices to maximize on the returns and sales revenue, Eco-Beauty Centre will be aiming at building a sustainable long relationship in the market. For this reason, the enterprise will offer lower rates (lower than what its competitors are charging) in order to make it affordable to the lower and medium income groups who have currently been economically marginalized given their lower purchasing and income powers.

The location of Eco-Beauty Centre will be important in taking care of the beauty demands of all clients drawn from different socio-economic classes and background. This will give Eco-Beauty Centre a competitive edge over similar ventures that are located in the middle of the town targeting only elite class and discriminating the middle and lower class. Eco-Beauty Centre will provide a relaxing and cozy environment for customers as they get served. Additional free services like soft drinks will be offered to customers at the waiting bay. The facility will also be fitted with entertainment devices including a television set for global and local news updates and music.

4.2 Marketing Strategy

The salon and beauty centre will engage the customers who profess satisfaction from services they have received to market itself. This will be strongest and economical marketing tool for the Eco-Beauty Centre. When clients leave the premise with products that meets the desires and expectations and sells the idea to their peers and friends within the community, more customers will enquire where the services or products were purchased and this will go a long way in building positive image of Eco-Beauty Centre and promoting its products and services. For this reason, Eco-Beauty Centre will rely on customer marketing as a method of promoting its products and services and exploring new customer markets with great potentials.

From the Eco-Beauty Centre market research and survey, beauty business does not require a lot of promotional campaign but instead it requires well structured oral advertisement of one on one. In support of this strategy Eco-Beauty Centre will offer special services as a mode of marketing mix. Customers who have been served and drawn satisfaction from the Eco-Beauty Centre services and products will serve as the primary marketing and promotional tools. Such customers will be entitled to fringe benefits, monetary compensations, and discounts for every customer referred to Eco-Beauty Centre. There will also be a lottery draw for a trip to the annual global beauty contest venue. In this case, the client will be provided with cards to drop each time they come to be served, purchase, or refer a new client and the higher the number of cards, the greater the chances of winning a fully sponsored trip to the annual beauty event.

To small extent, Eco-Beauty Centre will advertise its products and services to the public through social and electronic media such as television adverts and magazines. This will be important especially for the first few months of its operation. At the stage, the enterprise is not popular to many and therefore such media of advertising will be essential in promoting and popularizing its products and services. In the beginning of its third year of operation, Eco-Beauty Centre will take part in corporate social responsibilities including sponsoring sporting and social events in London inter-school and inter-university games. Such as move will further be vital in strengthening the public image of the enterprise; thereby potentially increasing its customers base in London and beyond.

4.3 Sales Forecast

Eco-Beauty Centre’s projected sales for a three year period of three is provided in the charts and table below. In summary, Eco-Beauty Centre expects a steady increase in the volume of projected sales revenue for the three year period. This would be possible as the business (Eco-Beauty Centre) will continue to build a strong reputation and image among the public and potential customers. Besides, the services and stylists of the beauty shop and other beauty products of the enterprise, Eco-Beauty Centre anticipates rapid rise in its market share, therefore, a possibility of increase in the sales volume as the enterprise grows in the industry. Unlike the first year of its operations, Eco-Beauty Centre’s sales is expected to increase by 25% in the second year. This will be attributed to increase resource allocation to products and services marketing and promotion. In the second year of operation, the business plans to introduce new product and services as a way of increasing its sales revenue and volume. These anticipated products and services over the second and third years will be essential in increasing the level of sales and service delivery.

NB: direct cost related to sales or services are not accounted for in this table but instead, only direct costs for products are included.

Sales Forecast (a 3-year plan)

Sales/Costs Year 1 Year 2 Year 3

Stylist 1 45,000 50,000 58,000

Stylist 2 22,000 23,500 27,000

Nails & massage 18,500 21,000 23,000

Products sales 45,000 51,000 62,000

Barber 14,000 21,000 23,000

Total sales 144,500 166,500 193,000

Direct sales cost 15,000 18,500 14,000

Products’ costs 45,100 43,000 30,000

Net Sales £84,400 £105,500 £149,000

This figures show that the business will report a constant net sales figured over the first two years. However, in the third year after establishing itself, Eco-Beauty Centre beauty will post a masive increase in sales volume, hence, more net sales.

4.4 Milestones

This is a sample charts and tables showing the details of the actual programs and activities which Eco-Beauty Centre plans to undertake in a given financial period. These programs are designed such that they will be controlled and regulated by specific managers and with a restricted financial budget. Throughout the year, Eco-Beauty Centre will keep track of its implementation against the plans and report the planned activities.

Milestones Duration (months) Budget (£) Manager

Business plan 1 100 Owner

Acquiring Financial Resources 2 200 Owner

Grand opening 1 day 300 All the staff

Marketing programs 1 1000 Marketing manager

Plans vs. Reviews 1 0 Planner& owner

Break-even 1 0 Financial manager

Hiring staff 1 150 Human resource

Business plan upgrading 1 week 100 All the staff

Total 1,850 5.0 MANAGEMENT SUMMARY

Eco-Beauty Centre will be structured, managed, and organized in an innovative and creative fashion in order to generate higher levels of profitability index as well as satisfy the diverse need of its customer. Besides, the management will focus on creating a positive and conducive working environment to foster economic satisfaction of its staff and facilitate personal development among the staff. The employees will be trained on a regular basis to build their knowledge and skills on the range of products and services the business (Eco-Beauty Centre) will be offering to its customers. Eco-Beauty Centre will consider offering employment packages and benefits including vacations, insurance cover, and healthcare to its staff, depending on the economic growth and other financial bearings. To enhance its competence and competitiveness, Eco-Beauty Centre will only employ persons with at least two years experience in beauty and salon and must have specialized in beauty therapy and solon management.

Janet Thatcher and David Hey (the co-owners) will also form part of the management team of Eco-Beauty Centre. David Hey has a wealthy experience in running and managing business enterprises of the same nature given that have managed some high class salon and beauty supermarkets in UK. David has excellent skills and attractive dexterity when handling customers and this will be responsible for the fame that Eco-Beauty Centre will have over its competitors. Janet, on the other hand, has gained years of experience in business management while serving as the sales and marketing manager at Birmingham Group Enterprises. Eco-Beauty Centre expects will therefore rely on the exceptional managerial and leadership abilities of its co-owners to play a role in the success of the enterprise.

5.1 Personnel Plan

To oversee its operations, a personnel planner (a receptionist) will be employed in order to receive customers and offer the guide on the range of products and services Eco-Beauty Centre will be offering. Eco-Beauty Centre will specialize in more than five hair styles, beauty products, and barber shop. The business with therefore employ 5 hair stylists, a barber, nails technician, a massage therapist, and one facialist. Except the receptionist, the rest of the staff will be employed on contract, and given a sliding commission rate based on their personal performance. As the business grows, Eco-Beauty Centre plans to hire a shampoo technician in order to expand on the quality of the services it offers to its esteemed customers. In the first year of operation, Eco-Beauty Centre will only hire three hair stylists, part-time nail, massage and facial technicians, and one barber. The business with then expand its workforce as it continue to establish itself in the market. In the first year, part-time employees will be paid a monthly basic salary and commissions estimated at £ 15,000.

Personnel plan Year 1 Year 2 Year 3

Owner (stylist) 24,000 24,500 25,000

Receptionist 12,000 13,000 15,000

Shampoo Tech 8,000 10,000 12,000

Barber Part time 12,000 14,000

Massage Specialist Part time 15,000 15,000

Stylists Part-time 30,000 50,000

Total £44,000 £104,500 £131,000

6.0 FINANCIAL PLAN

This being a profit making entity, our core objection is to remain profitable from the onset to the end. However, over the first few months of its operations, Eco-Beauty Centre will not post high profitability index until it establish itself in the market. The business will generate its start-up capital from owner’s contribution, financial lending, family and friends’ contribution.

6.1 Projected Cash Flow

The business is expected to generate excess revenue over the expenditures in order to remain profitable over the three years.

Pro-Forma CF Year 1 Year 2 Year 3

Cash-Inflows from operations £300,000 335,000 420,000

Additional Inflows 10,000 15,000 30,000

TOTAL CIF £310,000 £350, 000 £450,000

Expenditures Operational Exp. 35,000 10,000 10,000

Cash Exp. 5,000 5,000 5,000

Bills/Recurrent Exp. 100,000 120,000 100,000

Fixed Asset Repayment 15,000 15,000 15,000

Sales tax, HST, VAT 0 0 0

TOTAL COF £155,000 £150,000 £130,000

NET C/F £155,000 £200,000 £320,000

6.2 Projected Balance Sheet

The net-worth of Eco-Beauty Centre is expected to be healthy for the three years as tabulated below:

Balance Sheet

Item Year 1 Year 2 Year 3

Current assets (cash) 17,000 166,000 260,000

Long-term assets 100,000 200,000 500,000

Less Acc. Depreciation (8%) (8,000) (16,000) (40,000)

TOTAL ASSETS £117,000 350,000 700,000

Current Liab. payables 9,000 25,000 30,000

Long-term Liab. 31,000 45,000 70,000

TOTAL LIAB. 40,000 70,000 100,000

NET WORTH £77,000 £280,000 £600,000

6.3 Important Assumptions

The financial operations of Eco Beauty are laid on the following assumptions:

The annual growth rate for revenues is estimated at 15% from first to their quarter. In the last quarter of the year, the revenues will increase to 20%.

Provision for depreciation of the fixed assets will be accounted for in the financial records at 8% per annum.

The costs of goods sold are excluded in calculating the net sales. Other expenses are used in working the net sales figures for each accounting period.

Our products sales are estimated using the common low-ball approach to sales and hence provided for at £850 per month.

The financial resources will be acquired at the effective market rate of interest.

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