Mongolia Adventure, Inc Term Paper

Pages: 4 (1324 words)  ·  Bibliography Sources: 2  ·  File: .docx  ·  Topic: Business

Mongolian Tourism

Mongolia Adventure Inc.

Key Issues

Oyun Ganbaatar wants to know first if he should start his own tourist business, similar to the company for which he works today.

If the answer is that he should, then he has to determine what packages to offer, what prices to charge, and how to make the company a success.

There are only two alternatives for this question, so that either Oyun Ganbaatar should start a business such as he contemplates or he should not. These are the alternatives, and analyzing them considers the same general set of issues. Oyun Ganbaatar has worked out the expenses involved in the sort of office he contemplates, and the cost, while reasonable by Western standards, is high by Mongolian standards. The costs are certainly higher than the money Oyun Ganbaatar makes tody as a representative for a different company.

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Oyun Ganbaatar should consider both the costs of creating this business and the potential the business has to attract sufficient business to cover those costs. He has enough experience to know the rates charged by various companies today and to know the expenses for giving service, and he has included these in his business plan and done a good job of setting forth the steps to be taken, the costs for each step, and even the long-term costs in terms of ongoing expenses, depreciation, and other factors. Oyun has enough money on hand to start the business, but his margin for error is quite small. His initial costs would be around $1,650 for equipment and the web design, along with some $688 in monthly costs. The initial outlay might be reduced if he can pay for his computer and furniture on time, but this possibility is not clear from the details given and would add to his monthly costs, also increasing the total outlay over time because of interest charges. Still, he would have more capital to use in the beginning of his business.

Term Paper on Mongolia Adventure, Inc. Assignment

As noted, his margin for error is small, and developing sufficient business to pay for the monthly nut may be more difficult than he thinks. The longer it takes, the more outlay he will have to make. He could start his business while keeping his present job and make enough for the nut, assuming he also has enough to live on as well. However, doing this would mean he would have to turn daily operations over to his other sales person and his secretary, which might be problematic, especially for a start-up company that needs its founder present and in control. The Mongolian government might offer some assistance, given the attitude taken by the government toward this industry: "The Government of Mongolia considers the tourism industry highly important for the further economic development of the country, and it promotes foreign investment in this industry" ("Mongolia: Steppes in the Right Direction" para. 7). Oyun may not be in a position to attract foreign investment now, but he could be in the future. If we assume that the business can be developed fast enough and that Oyun will be able to fund it for the first year or so and keep it going, then he should start the company and see what happens.

Issue Two

The second issue is what will decide the success or failure of the first decision. The alternatives for this decision are as follows:

1. Emulate existing companies and provide the same packages they provide.

2. Develop the new route to the Kazakh eagle hunting site in Western Mongolia.

3. Do both at the same time.

Alternative 1:

The three common tours are well-established and have a clear appeal for Western tourists. Each site has a history and a particular appeal for a particular group of people. The Gobi Desert tour has a scientific element in the dinosaur diggings along with certain cultural sites. The Khentii Wilderness Ride is for those who like a trek on horseback through the mountains. The Great… [END OF PREVIEW] . . . READ MORE

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