Management Competiton Project Test

22nd Annual Conference Dubrovnik, Croatia 17th – 22nd November 2009

MANAGEMENT COMETITION

Management Competition Project Task

Dubrovnik cable car upper station

The best views of Dubrovnik and the surrounding area can be seen from the top of the Srđ Hill. Dubrovnik Cable Car was built back in 1969 and was always enthusiastically used by more than 2,5 million visitors who wanted to enjoy the most beautiful panoramic view. On a clear day, you can see up to a distance of 60 km (37 miles). For this reason the neighbouring fort Imperial was strategically built on this privileged spot, back in the early 19th century. 18 years after the Croatian war of Independence, Dubrovnik cable car has been going through a process of reconstruction. Cable car connects Dubrovnik old town and Srđ hill where you can enjoy the best views of Dubrovnik.

You are in position to lease upper station of the cable car on Srđ hill. Considering all future projects related to the cable car, in this enterprise you see a good business opportunity to open catering (hospitality) and other facilities. You submit your business plan to a bank to be granted a loan.

This building has 105 m2 (1130 ft2) of indoor space, divided into two floors. Upper floor has 25 m2 (270 ft2) of indoor space and 70 m2 (750 ft2) terrace. Lower floor has 80 m2 (860 ft2) of indoor and 50 m2 (540 ft2) of outdoor space. There is also an amphitheatre with 80 m2 (860 ft2) of space.

Cable car capacity is 400 passengers per hour. Two cabins, holding 30 passengers, will need less than 3 minutes to cross the 778 meter distance between the lower and upper station, passing over one tower.

Business plan should comprise:

o  competitor analysis,

o  segment demand analysis,

o  target customer forecast,

o  description of technical characteristics and premises capacity,

o  optimum employee plan,

o  project advantages and disadvantages hypothesis,

o  marketing and financial project planning in compliance with the Croatian and EU regulations, and EU Green paper which attests socially responsible business economic and financial forecast of the business plan for a three-year strategic plan.

A special attention should be paid to environmental issues.

You should define the products, facilities and services you wish to offer, bearing in mind the offer originality and the legal foundations of the business you start.

The project should be sustainable, creative and innovative in order to convince the bank to grant the credit.

For the internet research, we suggest the following website: