Business Simulation Game Analyzing Heritage Tavern Company

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We intend to achieve cost leadership in our segment. Our competitors include other budget hotels and bed amp. breakfast places. By achieving the lowest costs of operations we will be able to pass some of the costs savings to our customers in the form of lower prices. Also, we will be able to operate at higher margins than our competitors.
Threats: The threat comes from the intense competition in the hospitality industry. The hospitality sector is also very vulnerable to economic and business cycles, terrorist attacks and other global political and social factors.
The company will operate an international chain of heritage bed amp. breakfast hotels in historical cities of Europe. These bed amp. breakfast hotels will be housed in buildings which are more than a century old. The company has been registered as a limited liability corporation under the name of Heritage Tavern.
Business Owner: The two promoters of the company will also be the Managing Directors and Chief Executive Officers ( CEOs) of the company. They will hold 30% equity of Heritage Tavern. The remaining 70% of the equity will be held by a Switzerland based venture capital fund that will provide the seed capital ( initial investment of $ 150,000.)
Location: The first Heritage Tavern property will begin its operations in the city of London at the end of this month. This property is located in the historical Westminster Area of Central London.
The rooms will be priced at $ 175 per night. These will be exclusive of taxes. This will also include the costs of complimentary breakfasts. The London property of the company will have 40 rooms. The Switzerland property will have 30. Each of these rooms will be double-bed rooms. Every room will have a television, attached bathroom and toilet. Both the properties will have access to wi-fi facilities. The d├ęcor of the rooms will be in sync with the heritage architecture of the property.
The hotels will not have restaurants nor will they serveany other meals except the morning breakfasts. In this sense, the hotels will be strict, bed amp. breakfast. The guests of the hotel will get all other facilities during their stay that they get in a full-service hotel.