Assignment No.

: 2

Assignment Cover Sheet

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of all members)
Name ID

Nguyen Hoang Phuc E2200258

Office
Module/Subject Information Acknowledgment
Module/Subject Code MGT200
Module/Subject Name Small Business Management
Lecturer/Tutor/ Mr. Vu Hai Nam
Facilitator
Due Date 19/05/2025
Assignment Title/Topic Assignment 2
Intake (where applicable) UFM
Date/Time
Word Count 3348 words
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Signature: Date: 16/05/2025

Email: hphuc280703@[Link]

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Feedback /Comments*

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 Phuong Nam Travel: An Introduction and business registration

Phuong Nam Travel is established as a joint-stock company (JSC) with its registered office in
District 1, Ho Chi Minh City. Following formal registration on the National Business
Registration Portal, a Business Registration Certificate and a tax identification number are given.
Following incorporation, the enterprise will apply for a Travel Service License from the Ministry
of Culture, Sports and Tourism. It is necessary to have a qualified tourism professional as the
legal representative and ensure that the required deposit from tour operators is sent. With the
license, the tour operator will be able to plan tours inside its own country as well as abroad,
offering a variety of travel services to customers (Vietanlaw, 2023).

The organization seeks to provide guests with amazing travel adventures that feature Vietnam’s
rich culture and nature. With the goal of excelling as the country’s top sustainable travel
company, Phuong Nam Travel plans to apply eco-friendly methods in all its activities. Following
the recent promotion and opening up of Vietnam’s tourism market, the sector has seen
tremendous growth in both domestic and international visits. Thanks to a selection of top-quality
tour packages and superb customer service, the company tries to satisfy the growing demands of
picky tourists and grab new chances in the market.

Phuong Nam Travel Logo (Source: Author created)

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 Industry analyses, Competitor analysis, and Target customer

PESTEL Analysis:

Vietnam’s travel industry benefits from strong political and economic support. Government
initiatives (visa exemptions and marketing campaigns) have driven a record 6 million foreign
arrivals in Q1 2025 (Mai, 2025). The market is projected to grow rapidly: it was worth about
$17.9 billion in 2024 and is forecast to exceed $42 billion by 2030 (CAGR ≈15%) (Research and
Markets, 2025). Rising disposable income and urbanization are fueling domestic tourism
(Research and Markets, 2025). Surveys show that after the lockdown, Vietnamese are choosing
travel for their leisure activities more frequently. Today, more people are booking tours online
using apps for traveling rather than traditional methods. As far as sustainability, the tourism
industry is increasing its green options and we will adopt similar guidelines. Legally, the industry
is regulated: a travel company must hold the proper licenses and comply with tourism laws
(Vietanlaw, 2023).

Vietnamese Travel and Tourism market forecast (Source: Research and Markets)

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Competitors:

Vietnam’s leading tour operators are companies such as Vietravel, Saigontourist, BenThanh
Tourist and HanoiTourist. Vietravel has experience spanning decades and provides many services
and tours both within Vietnam and around the world (inboundvn, 2024). Saigontourist is another
seasoned leader in arranging tours, both into and out of Vietnam, as well as MICE events. In
North Vietnam, HanoiTourist leads the tourism sector and gives customers a wide range of
national tours. There are also companies that work quickly (e.g. Vietnam Booking) and those that
provide specific travel options (e.g. cultural or adventure specialists).

Target Customer Segments:

 Domestic leisure travelers: Middle-income Vietnamese families and young couples

living in the major cities (HCMC and Hanoi) often choose organized tours to tourist areas
in their own country (for example, the Mekong Delta and Central Highlands) or travel
overseas for shorter trips. Domestic travel is recovering a lot and is now boosted by the
release of new travel packages and more people making more money.

 International tourists: Chinese visitors, tourists from South Korea, European tourists
and tourists from North America comprise a significant group of international tourists in
Vietnam. There was a steady increase in tourists from Europe and ASEAN countries, but
China and Korea recorded the highest number of visitors in Q1 2025en. Asian tours and
destinations far from Vietnam will be among the packages designed for these groups.

 Specialty groups: Corporate or incentive (“MICE”) clients and niche travelers. Phuong
Nam Travel intends to focus on offering team building and conference tours, as well as
adventure and eco-tourism packages to attract more customers in these fields.

 High-end custom travelers: Tourists desiring top-class and individually planned trips.
Through CRM and market research, we will profile customers by age (millennials vs.
retirees), purpose (leisure vs. business), and preferences to tailor offerings.

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 Marketing plan

4Ps Strategy

 Product: Phuong Nam Travel will provide a variety of tour packages to customers.
Among their domestic products will be holidays featuring the Mekong River, Da Lat’s
highlands, central coast beaches and nature trips to Vietnam’s parks. Popular trips will
take place in Thailand, Cambodia, Japan, Korea and various European locations.
Uniquely designed products such as food tours and heritage visits will also be developed
to make our brand unique. Every package will include excellent services such as rooms,
guides and travel between destinations. The logo for our brand will include a lot of green
and blue colors to represent the gentle south winds and the landscapes of Vietnam. We
will ensure that the logo, colors and fonts are applied to all materials and uniforms.
 Pricing: We will set our prices based on what is considered to be fair in the marketplace.
Package prices will be decided by using the cost-plus and tiered models. Because many
people sign up for group tours, the prices for these trips are lower than those for custom
tours. Our team will observe what other companies are charging (such as Vietravel’s
rates) and act accordingly. Room costs will change with the seasons: during holidays and
hot seasons, the prices are higher and during off-peak seasons, they are lower. There will
also be a promotion on combined services (flights, hotel and tour) to motivate more
people to buy. Payment will be easy for customers as they can make installments or pay
online.
 Place (Distribution): Phuong Nam will sell its products by using online and physical
stores. A well-designed website and mobile app will allow visitors to book directly and
payments will be processed seamlessly, along with up-to-date management of their plans.
Firms will use travel websites and online agencies to sell their services. On-site, the plan
is to base our head office in District 1 and collaborate with local agencies in Hanoi, Da
Nang and leading provinces to help our customers in the area. Participating in national
travel shows such as Vietravel International Travel Mart will help increase exposure.
Partnering with worldwide groups such as international tour wholesalers and airline
consolidators, will help fill seats on flights going overseas. Locally, alliances with hotel
chains and attractions will secure better rates and exclusive access.

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 Promotion: Facebook, Instagram, TikTok and YouTube will be used for social media
advertising to attract youthful visitors. To ensure valuable posts and reviews, Phuong
Nam Travel will work with influencers and bloggers in the travel industry. Performing
SEO/SEM on our marketing will put the website in the answers to travel searches online.
Newsletters and loyalty programs will ensure customers return rate. To promote the
adventure, tourism will use travel expos, roadshows and support from Vietnam Airlines
and Visa counters in popular destinations. Targeted ads in China, Korea and Europe will
attract tourists who will visit our country. Unusual holiday packages (Mekong Delta
Explorer, etc.) will be promoted through travel magazines and press releases to attract
customers. Everything used to advertise the business will keep the brand on track,
carrying the same slogan (“Journey with the Southern Breeze”) and company logo.

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 Operations and Development Plan

Daily operations and workflow

Phuong Nam Travel mainly focuses each day on organizing bookings, designing trips and
providing customer service. Call center workers address inquiries via the CRM and ensure all
services such as travel and ground transport are confirmed for the customer (admin, 2024). The
tour design team customizes trips both in the country and abroad (such as city tours and cruises
on the Mekong River). Customer service representatives use phone, email, chat and other means
to handle customer problems. Along with this, they rely on Zoho’s travel CRM to collect issues
and automate tasks for follow-up (Shivasharan M, 2022). It all begins when a customer makes an
inquiry and plans a trip, including visas and price details if necessary. This process follows
through with securing the booking and sending them itinerary documents and e vouchers. After
that, the operator should provide all on-trip services. Leaders and managers organize briefings
for the team and supervise live tours, staying ready to fix any issues as soon as possible (flight
delays, alterations to the plan, etc.).

Vendor partnerships and Quality assurance

It is essential to have strong ties with your vendors. Phuong Nam will conduct business with
these companies by signing structured contracts. They will outline all agreed prices,
circumstances for cancellation and what clients can expect (Denzon, 2024). Hotel alliances
opened up the chance to provide hotels with combined travel-and-tour packages. As another
author points out, matching memorable activities with accommodation fosters an effective
relationship that increases customer satisfaction and helps the company develop. A list of our
favorite suppliers will be created, and their performance will be tracked by the centralized SAP
tool.

ISO-based processes will ensure the quality of the services provided (Naagar, 2024). In keeping
with ISO 9001 requirements, the company will set up ways to get feedback from customers and
audit its activities often. Following every tour, the clients submit satisfaction surveys; the results
of these surveys are discussed in quality meetings monthly. Any insights received help improve
future steps in the continuous improvement (Plan-Do-Check-Act) process. By following ISO
standards, we aim to maintain identical levels of services for all customers and motivate fewer

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complaints. Every so often, managers rebook, offer bonuses or warn suppliers to uphold their
performance. By combining both, reliable service is reached on every tour.

5-Year Development Roadmap

 Year 1: Set up the basic operations and the online system. In the HCMC headquarters,
select and hire the main staff and implement both the Salesforce CRM and SAP ERP
systems. Make an official company website where clients can book and also see their
reservations. Team up with big hotels, carriers and travel companies in the southern
region. Introduce guidelines and offer training to the team. First concentrate on winning
local customers through marketing.
 Year 2: Expand business to the north by operating a branch in Hanoi. Hiring staff from
the region who are acquainted with North and Central Vietnam is advisable. Make use of
the CRM to obtain leads from the North. Carry out the same procedures in Hanoi that
have been used in HCMC, involving the various staff teams. Sign more deals with
businesses in the north and begin developing special travel packages from Hanoi to Ho
Chi Minh. Provide more training to staff members and let knowledge management
systems distribute information across the branches.
 Year 3: Conduct marketing efforts to each region and focus on digital progress. Put
emphasis on advertising aimed at both Southeast Asia and Vietnam’s secondary cities in
search results and on social media. Allow users to explore the site and app in two
languages (Thai and English) and use the tool to easily create their itineraries. Introduce
special services for meetings, incentives, conferences and exhibitions, meant for
corporate clients by creating corresponding packages. Connect with local convention
centers and travel agencies. Use the CRM system to help run customized campaigns for
customers (e.g. loyalty programs).
 Year 4: Divide the main brand into different sub-brands and trial arranging tours for
participants abroad. Develop new tourist experiences such as adventure travel and eco-
tours and give them their own brand and marketing strategies. International tour
businesses from ASEAN can work through partnerships in Thailand and Singapore to
open tour trips for Vietnamese clients at first and, in turn, send overseas clients to these
countries. Offer training guides new opportunities to certify themselves in special areas

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 (for example becoming eco-guides). Extending relationships with hotels and inbound
agents from other nations.
 Year 5: Increase activities in new countries. Establish a regional office in Bangkok or
Singapore to handle all outbound and inbound tours for the company. It will be
responsible for handling arrangements with local airlines and aircraft operators. Set up
multi-country itineraries for Asian countries (ASEAN tours). Improve the tools on the
internet for handling global bookings and providing customer service. Thanks to the
processes and technology developed in earlier years, Phuong Nam can quickly grow its
business. After 5 years, Phuong Nam will have grown from a travel agency serving local
clients to an operator providing services in different countries.

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 Management team

The company will be organized by a founding CEO with plenty of relevant experience. The CEO
will lead the planning and development of partnerships. A tour management expert and someone
who has experience in finance, among the founders, is also needed ([Link], 2023). Leaders in
their areas are being recruited: for example, as Head of Product Development for making new
tour packages and Head of Partnerships responsible for relationships with hotels and airlines.
There may be outside investors, who take part in Phuong Nam initially as a JSC. The plan is to
negotiate with local travel-focused funding groups or companies such as a hotel group, for Series
A funding, but the founders will still hold the majority control. If all goes well, an IPO could take
place at the local stock market within 5 to 7 years. All in all, the group draws from its skills in
tourism and effective management to handle and deliver the plan.

Good training ensures that everyone is up-to-par with expectations and minimum performance
standards. Orientation teaches new employees about the way the company runs, uses its
CRM/ERP and how to serve customers. Phuong Nam Travel plan to keep a Knowledge
Management System – perhaps as an internal wiki or CRM – where it will save manuals, all
necessary vendor details and resources for handling problems. After each tour, the necessary
points are recorded and sent to the rest of the team. Having frequent training ensures that
employees maintain high standards when providing tours; according to one guide, tour managers
have to screen and train staff to ensure tours are of good quality. In addition, employees will have
quarterly workshops to help them practice their skills, learn about new cultures and remain
informed about the destination. Thanks to this, service delivery is always consistent as the team
expands.

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 Critical risks

External risks

Travel is exposed to events occurring outside the country. An increase in health-related issues
(such as COVID-19) or tightening of travel restrictions may drastically decrease air travel. Visa
regulations or political conflicts in the countries we get students from are another risk factor.
When there is an economic downturn or a fluctuating currency, tourism often declines. There is
strong competition among tour operators; more so, prominent companies or new online players
may lower companies’ profits. If the government makes new regulations such as higher taxes,
that might cause the insurance price to rise.

Internal risks

As a new company, Phuong Nam Travel struggles with making its brand known and with relying
on its most experienced employees. Reliable suppliers may not be available if we depend
excessively on some hotels or guides. Tracking finances is important as hotels usually charge a
deposit before you arrive. Over-expanding might lead to a shortage of resources.

Mitigation strategies

The firm will make sure at least 10–20 percent of the budget goes into a contingency fund to
cope with financial difficulties. Thanks to international and national marketing, Phuong Nam
Travel are not put at risk by being dependent on only one market. Having various associations
with airlines and hotels will help prevent them from being trapped by one and well-trained
employees will mitigate situations where important people leave. By allowing flexible bookings
and secure insurance to help protect the profit. Being relied on strong IT and data backup
systems, operations are unlikely to stop suddenly. If the company monitors monthly financial and
market indicators, the management can easily make the necessary changes.

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 Exit strategy

Shareholders of Phuong Nam Travel are expected to realize their value under set circumstances
when exiting the company. When the venture attains its targets, the exit could occur 5–7 years
later. They may choose one of these options: (1) An acquisition by another travel or hospitality
business active globally; (2) Offering shares to an interested airline, hotel firm or other strategic
partner; or (3) Purchased by the company’s founders or managers. An IPO on the Ho Chi Minh
Stock Exchange can be considered if the company needs larger funds to achieve its goals.

If business objectives are not complete, the company may still end with liquidation. When a
company liquidates, its non-essential intangible assets like the brand, lists of customers and
unique tour routes can be rented or sold and items like furniture and vehicles are normally
auctioned. Exit planning will include conditions in the agreement. If sales, intended profitability
or similar goals are not reached in a set time, the agreement may call for a shareholder exit. It
encourages flexibility, so that if shares are sold, important assets stay in the business and when
closing, everything is done in an organized manner. Preserving customer service level during the
transition will uphold the goodwill of the business.

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 Financial Plan

A 5-year financial overview is shown using benchmark data and estimations. With the proposed
plan, the company is expected to gain revenues from tour packages (both domestic and
international) as well as from hotel reservations, help in obtaining visas and travel insurance
commissions. 60% of our income will be expected from international tours, 30% will be from
domestic tours and the last 10% will come from other services. Taking guidance from Vietourist
Holdings’ revenue of VND 158.17 billion last year, the goal for Phuong Nam to generate first-
year earnings of between VND 180–200 billion which is 10 to 15% more than Vietourist (DNSE,
2025). Subsequent years will see an annual growth between 10 and 15%.

 Costs: The fixed costs of a business are office rent, electricity bills, pay for staff
members who are never put on leave and marketing. Based on competitor analysis,
running expenses would be close to VND 12–15 billion every year as Phuong Nam Travel
expand. Around 70% of the revenue from a tour comes from the variable costs for
transport, hotels and guides. Other expenses are payments to travel agents and fees
charged for each transaction. The travel service deposit and insurance have also been
included in costs on the statutory side. The budget is usually increased by 15% to handle
future unplanned expenses.
 Projected P&L: Assumption for the first year’s P&L is revenue estimation of
VND 180 billion. Deducting the COGS (about 126 billion) and all the expenses related to
marketing and admin (approximately 40 billion), EBITDA is predicted to come out at
about 14 billion. Amortization and depreciation account for very little in the company’s
finances. All these situations are assuming that interest bills on loans are not big. The rate
for taxes in the U.S. is assumed to be 20%. As a result, the company is expected to earn
around VND 11 billion in the first year. Net profit is set to rise from VND 10–15 billion to
VND 20–30 billion by Year 5. Retained earnings will increase on the balance sheet as
equity also grows.
 Cash Flow: During the first year, the cash flow is believed to be positive and a portion of
working capital will come from equity and another portion from short-term credit. Setting
up an office and computers does not require a lot of funds and will be paid for from the
money provided. A minimum amount of cash will be maintained by the company.

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 Investment metrics: The internal rate of return (IRR) should be over 20% if an initial
equity investment (including deposit) of VND 30–40 billion is made. When the project
requires VND 40 billion and the cash flows are shown, the IRR is higher than 30% and
the NPV at 10% is also positive. It will take less than 3 years to receive a return on the
investment. The project is expected to flourish no matter how conservative the different
analysis shows. The figures mentioned above take Vietourist’s recent performance as
their base. In short, the financial plan is built on good budgeting, market revenue
expectations and adds in a 10 to 20 percent cushion as a backup. Based on the forecasts,
the company can expect solid earnings and pleasing returns.

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 Conclusion

Its goals, regulatory compliance and status as a JSC match up with the increase in tourism in
Vietnam. Robust and detailed PESTEL analysis, customer-based 4Ps marketing, solid
business activities, strategic partnerships, risk handling and strong five-year financial
outlooks against top businesses in the sector help ensure the venture achieves steady and
continuous growth.

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 References

admin. (2024, January 17). Benefit of Salesforce for Travel Industry. CRM Masters - Digital

Transformational Group; CRM Masters. [Link]

industry/

Denzon, G. (2024, May 2). Maximizing Local Partnerships: A Guide for Tour and Activity

Operators. [Link]; Ticketing Hub.

[Link]

operators

DNSE. (2025, February 6). BCTC Quý 4/2024 VTD - Doanh nghiệp lỗ 5,26 tỷ đồng. Entrade X

by DNSE; DNSE. [Link]

nghiep-lo-526-ty-dong-34108126

inboundvn. (2024). Inbound VietNam. [Link]. [Link]

10-list-of-reputable-travel-brands-in-vietnam

Mai, C. (2025, April 10). Tourism takes off: Vietnam welcomes 6 million foreign visitors in Q1

2025. Vietnam Economic Times | VnEconomy. [Link]

[Link]

Naagar, J. (2024). Lets Grow Your Business Together | Raj startup. [Link].

[Link]

Research and Markets. (2025, March 5). Vietnam’s Tourism Boom: Market Set to Grow at

15.3% CAGR Through 2030. GlobeNewswire News Room; Research and Markets.

[Link]

[Link]

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SAP. (2024). Travel Industry Software and Transportation Industry Software | SAP. SAP.

[Link]

Shivasharan M. (2022, February 23). Optimize your business processes with Travel Agency

CRM. Zoho Blog. [Link]

[Link]

[Link]. (2023). Tour Manager - ‫فيلينتس‬. Velents. [Link]

manager/

Vietanlaw. (2023, November 24). Conditions for establishing a tourism company in Vietnam -

Viet An Law. Viet an Law. [Link]

company-in-vietnam/

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 E2200258_MGT200
Assignment 2
by NGUYEN HOANG PHUC -

Submission date: 19-May-2025 05:10PM (UTC+0800)

Submission ID: 2679628698
File name: 27063_NGUYEN_HOANG_PHUC_-
_E2200258_MGT200_Assignment_2_616711_1474203506.docx (1.46M)
Word count: 3584
Character count: 20442

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E2200258_MGT200 Assignment 2
ORIGINALITY REPORT

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