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Facility Planning

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Submitted By Sindyeung
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1. Introduction
To begin with the development of the business center, it comprises serviced office, virtual office & meeting room rental with fully equipped office facilities & furniture. It is located in the developing business hubs of Kowloon East district – Kwun Tong where is proposed to develop as another business core district by the government (Policy Address, 2011-2012).
With the growing demand of office space, it is important to utilities and extends the flexibility of the design of the office space; to provide necessary services and facilities to adapt the needs and expectation of business clients through analyzing the planning strategies and key feasibility issues, result in generating sufficient revenue and profit to the business center.
2. Methodology
The methodology for carrying out this feasibility study has three main components. The first one comes with studying academic theories, the Hospitality Concepts (Ransley & Ingram, 2004) and the Three Product Levels (Kotler, 1994) are applied in this facilities planning project in order to measure the feasibility of business center development.
Besides that, in order to illustrate the planning of the business center development, the existing companies in the market are used; the examples are Compass Office, OneStart Business Center and Vantage Business with reference of their office facilities, meeting equipment and service provided.
Thirdly, the use of market research data in terms of web-based searches, press searches and research report to support the appropriateness for the market, the demand characteristics, market supply and competition.
3. Concept & Design Stage
3.1 Hospitality Concepts
To start with a business, it is crucial to understand the hospitality concept. A hospitality concept “normally consists of service delivered in a purposely-designed property, whose quality, atmosphere, service style and content, supported by a specified operation and management in a specified location, determine price and define the product” (Ransley & Ingram, 2004, P. 5) In general, the hospitality concept is the image of the property which creates its own brand images via the special design or operational style to differentiate itself to the other properties, it also delivers the service experience.
3.2 Product Levels
Kotler (1994) identifies the three levels or components of a product as being core, tangible and augmented.
The core product is to fulfill the client’s needs for all-in-one office services in the business center. It provides lease for serviced offices and meeting room rental with a productive and comfortable environment. In addition, virtual office suits the needs for the clients who plan to grow the business without having to pay for space. It offers a prime business address, dedicated phone or fax number, receptionist service to have the incoming mail handled and phone call be picked up with the tailored script.
The tangible product is the physical benefits offered, it offers fully equipped facilities& contemporary furniture including electricity central air conditioning supply, meeting rooms & private offices with working desks and chairs, break area with beverage supply, personal computers with high speed internet, video-conferencing & audio-visual equipment, etc.,
The augmented product is the unique services to make the product different from others. Business center offers flexible in leasing offices and customize package options, personalize reception services with secretarial assistance, IT and other support services such as concierge service, hotel & ticketing booking and flight scheduling. All-in-one services in the business center allow clients to start the business opportunity as ease and extension of flexibility is convenient for business entry at any points in terms of the pricing and packages. What’s more, discount on meeting room renal is special offered for the existing clients.
3.3 Components of design:
The Exterior design consists of Innovative, modern, ready-to-use office space and fully furnished business center with comfortable serviced office space, virtual office facilities and meetings room equipment.
As for the Interior design, it is essential to better utilize of the limited space in terms of layout, capacity and circulation space. There are “L” shape reception desk, main corridor, and serviced office space with ten working stations, a meeting room capacity for 10 people, three separate private offices and hundred racks for mailbox. The interior design is mainly maintained the flexibility on facilities that the settings can be easily moved as anticipated turnover.
Factors affecting design is a considerable issue to establish a new business, it involves the function of space, the business center is opened for lease office and room hire, it therefore design as separate rooms. The second factor is business strategy, it aims to better use of the limited space to generate more profits. Furthermore, budget may constrain the design process as the size of space is all depends on the proportion of investment.
4. Planning & Development Stage
4.1 Proposed location and site: Kowloon East district - Kwun Tong
Kowloon East has potential to develop as second core business district with lower rental cost than the Central district (Colliers International, 2011)
4.2 Transportation & accessibility
High accessibility in Kwun Tong with well-developed public transportation, construction of monorail will be the transportation infrastructure in the future that will link with Kwun Tong and Kowloon Bay stations
4.3 Market Segmentation
Focus on the Business market, for small & medium size business to starts-up or setting contact point in Hong Kong, frequent business traveler
4.4 Competition – Supply & Demand
Supply of Grade A office is increasing, more new office develop in sub-district of Kowloon East, potential of new entrants
Higher demand for lower rental cost due to affordability of smaller business or cost-efficient clients, we offer flexible package for short-term rental with multi-service to fit the client’s needs
4.5 Legislative Consideration
Individual ownership of a leasehold property
Application for Business Registration in Inland Revenue Department
4.6 Finance & funding
Debt capitals from banks, mortgage rates, product life-cycle, evaluating return on investment
4.7 Sustainability
Operate in green manner e.g. energy saving and materials recycling
5. Conclusions
Fundamental requirements: Extend flexibility and adaptability to the design of the facility and better utilize of saleable space and facilities to generate revenue
Changes of business trend: Provide multi-services and ready-to-use equipment to adapt guest’s need and offer better service experience
Future plan: Potential growth of office space under Kowloon East project, stimulate same type of business development, market competition leads business become profitable and beneficial to overseas expansion.
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