Team 1.

3
Prepared for: Mrs de VisserAmundson Location: The Hague
Block: 15/16 C
Date submitted: 04/04/2016

Business
Model
Innovation
Written by:
Isabelle van den IJssel
Simone Kruithof
Tim Lussing
Mariska Storm
Jochem Veenstra

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Preface
For the course Business Model Innovation (BMI) at Hotelschool
The Hague, third phase students are asked to creatively innovate
the current business model of an existing company. The assigned
case company in the current course is the World Forum (WF)
meeting and convention centre situated in The Hague.
Each student team consists of five members forming a
consultancy team and are expected to first deliver three
prototypes for innovations. The client, WF, chooses one of these
prototypes that they would like to see in a further stage as a
complete concept. This concept is then researched for its
financial and market feasibility. Based on this research, the final
concept is presented to the client and lecturers from Hotelschool
The Hague together with a final recommendation whether the
final BMI is feasible or not.

Executive Summary
The team proudly presents, The Next Level, the Business
Model Innovation designed for the World Forum (WF) in The
Hague.
The Four Stages of Innovation, designed by Osterwalder, in the
book Value Proposition Design (Osterwalder, 2014) were used as
a structure to create an innovation suiting the current business
model of the World Forum. Before innovations could be
designed, a thorough analysis of the internal and external
environment was conducted.
The internal analysis shows that World Forum boasts strengths in
the form of being a leader in safety and security as well as
tailoring events to wishes of clients. Main points of improvement
lie in marketing and pressure on employees. Also, due to the
several important stakeholders, business development is
vulnerable to obstructions.
From the external analysis it became clear that the conference
industry and the hospitality industry are evolving and adapting
quickly to the creative use of new technologies and increasingly
demanding guests in terms of personalization. Adding value and
giving back to the community have become so important that it
has become expected instead of requested. Furthermore, the
economic situation is bettering since the crisis but the future still
is uncertain.

Based on the findings in the internal and external analysis the

following three prototypes were created to innovate the current
business model: The Worlds Top Secret, an old-school
gentlemens club where networking is key; Project break,
focusses on personalizing breaks of conference attendees whilst
enjoying the local community; The Next Level, combines the
sharing economy, networking and a healthy work-life balance in
a platform where innovation stands central.
The Next Level was chosen as preferred prototype and worked
out into a detailed Business Model Innovation. The Next Level,
in which heaven and the cloud are situated, flows from the
current floors; oceans, rivers, continents and mountains. The
different aspects of The Next Level were designed according to
the current needs and wants of the target market described in the
following key words; creativity, relaxation, health, networking
and sustainability.
After finishing the concept, the viability in terms of market
requirements and financial predictions has been assessed. What
could be concluded, was that there is sufficient demand to
implement the business model innovation and benefit from it
financially.
As the concept was deemed feasible, an implementation plan
describing step-by-step in which order aspects should be taken
care of and in which timeframe the phases should be realized.
The marketing plan is crucial to the implementation plan as this
concept stands or falls with attracting customers. As the Business
Model Innovation influences the business model, mainly interest
but also the influence of different stakeholders change.

The internal and external analysis and conducted feasibility

studies leads the team to believe that the BMI suits the wishes of
extra revenue perfectly, if small changes are made to the initial
concept of The Next Level. Also, additional benefits such as
involvement with the community are vital to the brand image of
the WF.
In addition to the Business Model Innovation designed at this
stage, the team believes that there are several exciting future
possibilities to develop The Next level even further, such as
implementation in other GL Events conference facilities.
In short, this BMI will raise the current business model of WF to
the next level and add value (see headings below), tangible and
intangible, whilst keeping in mind the future. For this reason, the
team advices WF, GL Events and the municipality of The Hague
to invest in this Business Model Innovation.

Value Added by The Next Level:

Financial Value
Financial Growth: Net Profit Growth of 263.458 in the next five
years.
Customer Value
Current Customer: Expand what World Forum offers to existing
customers.
New Customer: Offer an innovative work atmosphere at a unique
location.
Operational Value
Knowledge: Increase the variance and amount of in-house
expertise.
Operations: Increase capitalization on physical facilities.
Marketing: Increase brand awareness.
Strategic Value
Competition: Differentiate from the existing competitive set.

List of Abbreviations

App.
Appendix
BMC BMI
Business Model Canvas Business Model Innovation Food and beverages
F&B GDP GLE IRR Gross
MICE MTH
Domestic
NPV NSS
Product
PI GL Events
PP TNL VPC VR WACC
Internal Rate of Return
WF
Meetings, Incentives, Conventions and Exhibitions Municipality The Hague
Net Present Value Nuclear Security Summit Profitability Index Payback Period
The Next Level
Value Proposition Canvas Virtual Reality
Weighted Average Cost of Capital
World Forum

Table of Content
Preface
Executive Summary

List of Abbreviations

Introduction

11

Understand

13

2.1
Internal scan
2.1.1. BMC
2.1.2. Strengths
2.1.3. Weaknesses
2.1.4. Stakeholder Analysis
2.1.5. Conclusion
2.2
External
2.2.1. Key trends
2.2.2. Market Forces
2.2.3. Macro-economic Forces
2.2.4. Industry Forces
2.2.5. Conclusion External Analysis
2.2.6. SWOT
8.7

Innovate

3.1
Three prototypes
3.2
The Next Level
3.2.1. Building the concept
3.2.2. Value proposition canvas
3.2.3. Adjustments to BMC
3.2.4. Risk analysis

Implement

47
47
49

55
56
57
58
60
61

Final recommendation

63

Future Outlook

65

8 Appendices

67

8.1
8.2
8.3
8.4
8.5
8.6

35
35
38
40
41
43
45

Market feasibility
Financial Feasibility

5.1
New Stakeholder Analysis
5.2
Gantt Chart
5.2.1. Marketing plan
5.3
Guest Journey
5.4
Road Map

13
13
14
14
15
16
18
18
22
28
30
33
33

Validate
4.1
4.2

App. 1: Business Visitors The Netherlands

App. 2: Competition Table
App. 3: Detailed Information
App. 4: Design
App. 5: Floor plan
App. 6: Financial Scenario Best/Worst
App. 7: Balance Sheets

67
68
69
70
73
74
76

References

79

10 Word Count

85

10

1 Introduction
The Four Stages of Innovation.
In order to develop a sustainable, feasible, and profitable BMI the
four stages of innovation will be used; Understand, Innovate,
Validate, and Implement (Osterwalder, 2014). These stages
form the structure of the report, and will be elaborated upon in
this chapter.
Understand
The BMI Team has used this stage to understand the Internal
and External environment of WF, by conducting research and
analysing all the relevant elements found in the analysis. The
tool that is used for the Internal research is the Business Model
Canvas (BMC). The BMC depicts the process of value creation
for customers and how this translates to revenue and costs.
The tool that has been used for the External research is the four
leaf mode. This model contains four different segments that
surround the BMC, each of the segments will be explained
individually (Osterwalder et al., 2010).
In order to give a clearer overview of all different subjects, the
team has been using colour-coding. This will be recognized by
different colours and numbers per subject. The same numbers
and colours correspond with the SWOT-analysis that can be
found in chapter 2.2.6.

Industry Forces covers information about what is

happening within the industry a business is in. This
can be information about the activities of
competitors, new competitors, stakeholders of a
company, or about what is happening with
suppliers of a company (Osterwalder, 2014).
Market forces have an influence on the Customer
Segment; it covers information about what is
changing in the customer segment regarding the
sizes, needs and demands, market issues,
switching costs and revenue attractiveness
(Osterwalder, 2014).
Key Trends influence the value proposition; if there
is a trend that is not a part of a companys value
proposition, it could influence their business
negatively (Osterwalder, 2014).

Macro-Economic Forces are linked with the

bottom of the BMC; Cost Structure and Revenue
Streams. If the global economy or national
economy changes it will most likely influence the
costs of a company as well as the revenue
(Osterwalder, 2014).

Innovate
The Innovate stage is used to show the transformation of the
analysed research into three Prototypes.
The used method for this transformation is Group Brainstorming.
The advantage of Group Brainstorming is that it allows the BMI
Team to use the full Knowledge and Creativity of the team, whilst
making every member of the team feel like they contributed to
the development of the Prototypes (Manktelow and Carlson,
2016). The three most feasible Prototypes the BMI Team
developed have been presented to the managers of the WF as
well as the lecturers of the BMI course, whom have picked the
Prototype they deemed to be most feasible.
Validate
The chosen Prototype has been validated by performing Financial
Feasibility research, as well as Market Feasibility research. The
Financial Feasibility has been determined using the Internal Rate
of Return, the Payback Period, and Net Present Value. The
Market Feasibility has been determined by conducting
Quantitative research, which is analysed in SPSS. The
conclusions are featured in this report, whereas the research
itself is a separate document.
Implement
The Implement stage has been used to describe how the chosen
BMI will be transformed into a reality. The method used to
explain the implementation is a Roadmap, Gantt Chart, and a
Guest Journey. The Roadmap will describe every step that is
necessary for the development of the BMI in a chronological
order. The Gantt Chart will give a more detailed step-by-step
overview of what exactly will happen and how long it is going to
take. The Guest Journey is used to display what the guests of WF
will experience when making use of the new BMI.
12

2 Understand
2.1 Internal scan
2.1.1.

BMC

In order to create a good understanding of WF, the following BMC has been created of the current situation.
HBAA
CLC-VECTA
NBTC
Municipality The Hague
Novotel The Hague
ICCA (International
Congress and Convention
Association)
AIPC (International
Association of Congress
Centres)
MPI (Meeting Professionals
International)
Den Haag marketing
The Hague
Convention Bureau
Bourgonje
Effectief Schoonhouden

Production
- Event rooms
- Additional services
Problem solving
- Personal project planning
- Gathering customer
information
- Safety & Security trainings
Platform/Network
- Marketing & promotion
- Building customer
relationships

Value-driven
- Dedicated personal assistance
- Luxury facilities
Fixed costs
- Amortization and depreciation
- Salaries
Variable costs
- F&B costs
- Other operating expenses

Human resources
Service
Physical resources
Event rooms
Audio-visual facilities
Intellectual resources
Knowledge of event
management
Brand resources
Customer database

Internationalism
Flexibility, specialization
Location The Hague, city of
Peace and Justice
Professionalism
Customization,
individualization; being
present during the entire
Customer Journey
Hospitality, delivering a topclass service
Safety & security
Creating networking
opportunities, connecting
businesses by being on top of
recent affairs
Brand image

Dedicated personal
assistance, customer
attention
- Project Planner
Loyalty

Association segment
- Galas and dinners
(B2B)
Institutional segment
- Governmental
conferences
(B2B)
Corporate segment
- Large conferences
- Business meetings
(B2B)

Website
Mobile application
Social Media
Municipality The Hague
Personal contact,
repeat business
created with the
Snowball effect

Events revenue
Usage fees
- F&B revenue
Brokerage fees

13

2.1.2.

Strengths

WFs BMC has been analysed and benchmarked against the

competitors as described in the industry leaf. From this
analysis strengths and weaknesses have been identified.

As The Hague is known as the city of peace and justice the WF

has a very strong position in comparison with competitors when
talking about high profile conferences (e.g. NSS). WF has proven
that it is able to cope with these conferences and therefore
boasts a strong image. Another important aspect of high
profile conferences is safety & security, due to the location of
the WF in the international zone this is relatively easy to
arrange and accommodate. In line with recent terrorist threats
this is a strength that is invaluable to WF.
As all clients have different needs and demands, the WF
offers a flexible service where everything for events is tailor
made. This shows professionalism and know-how of the
hospitality business. This is highly valued by clients of WF.
Customization also plays an important role in the physical layout
of WF, most of the spaces are designed in such a way that
guests wishes can be complied to.
WF gives, but also uses the community in a smart way, by
helping educational institutions with facilities; investments are
made in the future of The Hague. Furthermore, the
connection with the MTH enables WF to have repeat business
and maintain a good image.

2.1.3.
1

Weaknesses

Technology and innovation are becoming increasingly important

in business; WF is not up to date concerning the latest trends.
This poses a threat to a possible competitive advantage. A
website, (interactive) app and social media accounts are
standard for comparable businesses. WF is either not featured or
is not up to date on opportunities these media platforms offer.
So far WF ensures repeat business through word of mouth, and
connections via other events. The Hague Convention Bureau is a
partner who attracts customers from time to time, however this
is costly. WF does not fully utilize the possibilities of using
different channels to retain clients.
WF is ranked as one of the sustainable leaders due to the golden
level of GreenKey. However, nowadays this has become a
hygiene factor for hospitality companies. Not excelling in many
sustainable levels means staying behind in the growth of
sustainability.
Maintaining employee satisfaction is an important and wellresearched subject within businesses. The experience of the
team is that all employees were extremely helpful answering all
questions. However, it was mentioned a few times that the
employees make extremely long hours, and quite a few end with
a burn-out due to the work pressure. WF could put more
emphasis on the value of providing benefits tangible or intangible
to their employees and the results it will bring.
A low occupancy percentage is most unfavourable in hotels and
conference centres. In the months February, July and August,
and weekends, WF has very low occupancy percentages, due to
low business season. Offering alternative programs in this period
could result in more revenue and profit.
(World Forum, 2016) (Middendorf, 2016) (World Forum, 2014)

14

2.1.4.

Stakeholder Analysis

In the analysis of a company, all stakeholders need to be taken

into consideration. Especially in the hospitality industry,
companies enjoy many stakeholders, from guests, owners,
management and shareholders. Below an analysis has been done
scaling every stakeholder of WF on its influence and interest of
the company (Figure 1).

Keep Informed
The key partners, suppliers, and outsourcing companies have a
high interest in WF due to the fact that they can make money
with their involvement with WF. Their influence is considered as
low, because they do not make any decisions regarding the WF.
The only influence any of these stakeholders have, is that if one
of them would discontinue their service to WF, it needs to be
replaced. The media has a relatively high interest in WF, because
of high profile (political) events taking place.

Keep Satisfied
The City of The Hague as well GL Events (GLE) have a high
influence in WF since they are the owners of the building and
management. They mainly influence the decisions that the
management of WF could make. Their interest is relatively low,
because they are less involved in the day-to-day operations of
WF; their main concerns are the annual budgets and revenue.
Engage Closely
This quadrant is for stakeholders with a high degree of influence
and interest. The management of WF is considered to have the
highest interest and influence, because it is their responsibility to
make the right decisions for WF to perform at the optimum level.
Furthermore, the employees and clients have a high influence,
because their performance or opinions can be really valuable for
the performance of WF, and because of their close connection to
WF their interest is also considered as high.
Monitor
The delegates have a lower interest and influence in WF, because
they are the secondary stakeholders to satisfy; the client is the
one to organise and pay for events, and is therefore considered
as the primary stakeholder to satisfy.

Figure 1 Stakeholder Analysis

15

2.1.5.

Conclusion

As can be concluded from the internal analysis, WF has several

strengths; being a leader in safety and security and as well
making tailor made events for clients. However, weaknesses such
as the use of out-dated marketing tools and the pressure on
employees have been identified as well. Moreover, the
stakeholder analysis displays the levels of engagement of the
different stakeholders. Management, clients and employees are
the primary stakeholders to engage closely with WF. MTH and
GLE need to be kept satisfied, suppliers, key partners and the
media should be kept well-informed and the local community and
delegates are stakeholders that need to be monitored for needs
and demands.

16

2.2 External
The external analysis has been conducted by using
the four-leaf model as a tool. The four different
components; market forces, industry forces, key
trends and macro-economic forces, are all analysed
and the most important findings are elaborated upon
(Osterwalder et al., 2010). These findings are either
described as a driver or a constraint. A driver means
a factor which positively drives the environment
while a constraint is a factor that is holding the
industry back.
Technological

2.2.1.

Key trends

Trends
Personalization Virtual
Reality Technology Rehab

Societal cultural
trends
Bleisure
K
no
wl
ed
ge
ab

le
C
us
to
m
er
s
H
ea
lt
hy
W
or
kLi
fe
B
al
an
ce

Socioeconomic

trends

Increase in Self-Employed Entrepreneurs

Technological trends:
Personalization
More and more personalized services are present in mobile
applications, filtering information of your personal interests for
certain products and services. This is also showing in operating
systems such as IOS. Siri, the virtual assistant of Apple, provides
you with searching terms that interests you based on your
location, time of the day and other variables (Apple, 2016).
Context rich systems are very similar and are going to new
lengths when creating individual content. In the near future it
will for example be possible to connect cross platform to
profiles of the same person, making it possible to link the
different data. Big Data is a large emerging trend benefitting any
service- focussed industry in the future. This could be an
enormous driver for the WF in the future. Attendees of
conferences could be scanned beforehand and offered
individualized options, which would possibly have a very
positive influence on the peripheral revenue (Danova, 2014)
(Insight Succes, 2016) (Hamstra, 2015).

Technology rehab, striving for simplicity

Due to the abundance of different applications and new
technologies, people start valuing simplicity; less is more. As
explained earlier, many applications are used for personalization.
The rise of striving for simplicity is seen as a constraint as it
makes it difficult for the WF to offer customized service, as there
is not much information gathered about the current visitors
through which a decision-making app can be developed and thus
missing out on an opportunity (Desmarais, 2016).

Virtual reality (VR)

VR is a trend that is growing in popularity and in viability for all
sorts of business segments, from healthcare to entertainment.
This new technology places environments in a 3D experience by
means of goggles and opens a wide range of possibilities of
consumer interaction. VR is becoming an affordable product,
Google for example offers carton goggles, and therefore available
for the public. This means that more content will be created as
well. The WF can use VR as a driver as it can be implemented in
conferences and meetings and sales of event rooms (event setups can be shown via 3D virtual walkthroughs, engaging guests
in their decision-making process), giving the WF a head-start
technology wise (Carson, 2015).

19

Societal cultural trends:

Bleisure
This trend concerns business guests combining leisure activities
to their business trips. Business guests bring for example their
families on a business trip to combine it with leisure activities.
This is a driver for the WF to examine possibilities for leisure
activities combined with meetings and conferences
(HotelREZ, 2015).

Knowledgeable customers
Guests are more knowledgeable due to all information that is
accessible through the Internet. This leads to guests wanting to
know/compare everything before buying/booking something. This
influences the WF as a constraint in such a way that costly
marketing needs to be put in place, and transparency must be
clear for all clients (World Forum, 2016).

Healthy work-life balance

A research conducted by Rand Europe (Hafner et al., 2015),
shows that a lack of sleep, no focus on mental health and a
negative work environment all results in a loss of productivity.
Some companies shut down the email and other
communications systems during the weekend, leading to
employees deliberately cut off from work during the weekend.
Other companies sponsor their employees to have hobbies such
as sports and offer free gym memberships. Another research
(Deshpande, 2012) has shown that offering meditation and/or
yoga sessions results in workplace efficiency and improve stress
management and in this way it has a positive effect on the
organisations success. The result of this trend is that companies
focussing on the well-being of employees experience more
productivity and organisational success. For WF this is a driver
as this can be valuable information to satisfy the current needs
of guests (Hafner et al., 2015).

Socioeconomic trends:
Increase in self-employed entrepreneurs
75% of all businesses in The Netherlands are self-employed; this
trend has been growing for the past 20 years. This brings
opportunities as these people require knowledge from experts as
well as help with their start-ups. Many of these entrepreneurs
are seeking for places to engage with other industry experts to
share knowledge. An article written by ANP (2016), shows that
self-employed entrepreneurship is a trend for the long-run,
since 1 in 10 entrepreneurs stay individual for over ten years.
This is a driver for WF when focussing more on the individual
entrepreneur instead of large(r) organizations. For this reason,
this can also be a minor constraint due to less, larger
businesses (ZZP Nederland, 2015).

20

2.2.2.

Market Forces

Market issues

Employee Engagement

Market Segments

Green Segment
Cultural Segment
Luxury Segment
Tech-Savvy Segment
Business Guests in The Netherlands

Needs and Demands

Future of Workspaces
Growth in the Need of Office Spaces

Switching

Importance of Brand image

Costs

Market Issues
Employee Engagement
A research by BIWorldWide (2016) makes a very clear
statement: all employees want is to feel recognized, enjoy their
work and find meaning in it, rather than declaring loyalty or
planning a long-term career. The following trends have been
identified for the year 2016: Build a social platform through
devices your employees are familiar with, create social
recognition platform and areas to gather, such as break rooms,
create custom tailored learning to engage each individual
personality, and offer short bites of learning (two to three
minutes) through mobile devices.
The results of implementing such employee engagement
strategies are more satisfied employees and an increase in work
productivity that is a driver for WF.

Market segments
Green Segment
This market segment is focussed on tradition, safety and
sustainability. This segment has environmental concerns and
cares for corporate social responsibility. Lastly, this segment is
economic and environmental friendly and seeks social
involvement (Amadeus, 2015; NBTC, 2014a, 2014b).

23

Cultural Segment
3
The Cultural Segment uses holidays as an opportunity to immerse in an unfamiliar culture. They thrive on coming out of the comfort zone and sincerely engage in a tota
of trends are words describing cultural explorers.

24

Luxury Segment
4
This segment is characterized as conservative, etiquette quality, hierarchy, work and status. This segment focuses on self- indulgent travel that combines luxury with se
2015; NBTC, 2014c).

25

Tech-savvy Segment
This segment is characterized by being career and status driven,
thrill seeking and individualistic. The main source of information
is the Internet; Social Media, Weblogs, and review websites.
They believe Social Media enriches experiences and adventures.
Business travellers fall under this segment, also called obligation
meters. Restricted travellers will most likely improvise other
leisure activities around the primary purpose. The Tech-savvy
market segment values a very high degree of personalisation and
level of contact whilst being very productive (Amadeus, 2015;
NBTC, 2014c).

26

Business guests in The Netherlands

In 2014 the amount of international visitors to The Netherlands
was 13.9 million, of which 3.6 million were business visitors.
Business visitors can be divided into two groups: MICE
(Meetings, Incentives, Conventions and Exhibitions) (25%) and
Individual businesses (75%). Most of the 25% MICE visitors
came to The Netherlands for a corporate meeting (NBTC, 2015a).
The increasing number of international business visitors to The
Netherlands is a driver for the conference industry.
As shown in App. 1, one can see that the United Kingdom and
Germany are the main countries that visit The Netherlands with a
business purpose. App. 1 reveals that walk through a town/city,
visit a bar or caf and walking are the top three activities
undertaken by international business visitors. This can be
considered as drivers for conferences to adjust their events
upon.
Needs and Demands
Future of workspaces
Teknion (2015) has conducted a research showing that
architectural workplace designs have many healthy beneficial
impacts on individuals. Creating office spaces with adjustable
furniture allows people to change postures and stay moving
during a working day. Moreover, incorporating nature into design
will be a trend for the upcoming years. Another trend that has
been observed is the multipurpose workspace, no more cubicles
but non-assigned seating is requested. In addition, the research
states several aspects to include in design to boost creativity,
productivity and happiness in the work environment:
- Designated lounge areas
- Use of colours
- More interaction: community tables

All these aspects are demands of the future office space, as

mentioned before; these demands will boost creativity,
productivity and happiness in the work environment and is
therefore a driver for the conference industry (Dishman, 2015)
(Teknion, 2015).
8
7

Growth in need for office spaces

According to the research conducted in 2009 by the MTH, the
need for office spaces will increase at least until 2020. This is
therefore a driver as it opens up possibilities for the conference
industry to be more flexible and increase occupancy
(Stijnenbosch and Nordeman, 2010).
Switching Costs

Importance brand image

In 2016 branding is shifting from impersonal and unapproachable
skins to interactive, personal and connective state. A companys
brand represents everything about the business; values,
employees and what it produces. Consumers are now expecting
more interaction with brands, demand new products and services
and become a more active part of the conversation (HamptonSmith, 2015). Brand experience, personalization, humanizing and
sourcing internally are the rising trends in 2016. Companies must
seek a positive experiential interaction with the customer and
create an on-going relationship in order to effectively meet the
customers needs. This is a driver for companies applying this
evolving approach.

27

2.2.3.

Macro-economic Forces

Global Market Conditions

Instability
Decreasing Unemployment rate

Capital Markets

Stability

28

Global market conditions

Instability
The growth of the global economy will be led by America in
2016. Even though China is the number one in GDP growth,
America will lead the global economy since they have the largest
trade deficit in the world (Mathews, 2015). On average the
European economy is growing, and the unemployment level is
decreasing, however, this average consists of outliers such as
Germany and Greece, which imbalances the average. The fact is,
that the unemployment levels are still too high, which slows the
economic growth of Europe, while the government debt levels
steadily rise (Mathews, 2015). The instability of these factors
form a constraint for the economy in The Netherlands and
therefore the conference industry.

Capital Markets
Stability
The vision for the capital markets for 2020 is increased stability
and a revised structure of the capital markets
(PricewaterhouseCoopers, 2015). The stability of the capital
markets will be ensured by interference of the government,
which aims to avoid the possibility of another financial crisis. The
structure of the capital market will be influenced by the change in
landscape of the financial institutions; changes such as:
government policies, innovation, operational restructuring, and
technology (PricewaterhouseCoopers, 2015). This stability of the
capital markets is a driver for the conference industry.

Decreasing unemployment rate

The unemployment rate is currently decreasing in The
Netherlands by around 14.000 people per month. The result of
this is that more people require training and have spending
power. If this trend continues, a positive result on the business of
conference industries could occur due to a possible increase in
amount of customers and with that, revenue. Therefore, this is a
driver (CBS, 2016).

29

2.2.4.

Industry Forces

Competitors

RAI Amsterdam
Ahoy Rotterdam
De Doelen Rotterdam
Jaarbeurs Utrecht
MECC Maastricht

Substitute Products
and Services

The Sharing Economy

Event Apps

Suppliers and other

Value Chain Actors

Suppliers
Understanding the Offer of Sustainability

30

Competitors
1

The competitors of WF have been identified concerning the

capacity, products and services they have to offer (see App. 2).
This is comparable with what WF has to offer, to be able to
benchmark the companies against each other. All competitors are
large conference centres, located in a well-known Dutch city. The
fact that there are five large conference centres, all targeting the
same customer segment is a constraint for the conference
centres in The Netherlands. It makes it difficult to differentiate,
which leads to a large supply of essentially a homogenous
product. The RAI Amsterdam is seen as the largest competitor
for WF. They are leading in space, sustainability, and innovation.
Both RAI Amsterdam and Jaarbeurs Utrecht offer a digital
platform, enabling customers to hold conference meetings online
with the help of these conference centres. By doing this, both are
innovating and keeping up with the needs and wants of the
customer segment, and since WF is behind on this innovative
matter it is seen as a constraint.
Substitute products and Services
The sharing economy
Companies such as Seats2Meet, Deelstoel, Meetberry, Letshare
have created a whole new business model within the MICE
industry. These companies offer the flexibility of always finding
a workspace nearby. The costs are low, since an online platform
is used to connect guests to businesses nearby. They have
answered to the need of the guest always wanting to book a
workplace any moment, any place. Due to the increasing amount
of people profiting from this form of sharing economy, these
concepts are seen as a constraint for large conference centres
since they are not adapting to this new market (Kreis, 2015).

Three companies have been identified in The Hague, offering

creative meeting spaces in flexible terms via platforms of the
sharing economy (Seats2Meet and Ebrella). Igluu is a company
using Seats2Meet offering flex offices 24/7 for entrepreneurs and
freelancers. Caballero Fabriek uses Ebrella.com to create a coworking community offering creative meeting spaces to work
together with people from different industries. Spaces is another
creative workplace offering office spaces, however they use their
own reservation system (Seats2meet, 2016)(eBrella, 2016)
(Spaces, 2016).
Event apps
Event apps have been created to replace information distributed
3
on paper, saving some trees, and logistics management. A
floor
plan, info concerning the event program, etc. have all been made
available using event apps. Now companies are working on using
the event apps as customized marketing, tracking their guests
likes, dislikes of the event. Moreover, analysing systems
implemented in event apps will result in event improvement.
Using this technology to closely analyse your guests and the
hiccups of an event, can only result in the driver of improving
your service for the future (Corbin Ball, 2015) (Hamstra, 2015).

31

Suppliers and other Value Chain Actors

Suppliers
Convention centres around the world depend heavily on
convention bureaus and tourism companies to supply clients and
projects. Destination Management Companies specialize in the
organisation of events and meetings; these companies are more
focussed on getting international business towards Holland.
Examples of destination management companies: Holland
Destination Management, ITBHolland, Incentive Europe
(Holland.com, 2016). Besides these companies, convention
centres wouldnt be able to operate without their audio-visual,
food & beverage, housekeeping, security systems, and supplier
companies. There are many companies in The Netherlands for
convention centres to choose from, which results in high
competition. This high degree of competition is a driver for
convention centres in The Netherlands, since competition leads to
high quality and lower prices.
Understanding the offer of sustainability
Corporate Social Responsibility has been a trend for a while
within the hospitality industry, now it has shifted to being a
hygiene factor. It is expected from every company to contribute
to sustainability. The difference now, is that the sustainable plans
are requested to be part of event programs. Delegates want to
be involved contributing their part of sustainability. Meaning that
conference centres will need to train event planners to have the
creativity and knowledge of implementing sustainability into
event programs, and ensuring delegates will feel as a part of the
social responsible culture. If this is not understood and done
correctly, many businesses will seek conference centres elsewhere
and therefore this is a constraint for conference centres, not
being up to speed with the sustainable need of business travellers
(Nieset, 2015) (NBTC, 2015).

32

2.2.5.

Conclusion External Analysis What can be seen

from the environment of the conference industry and
hospitality industry in The Netherlands is an
immense increase of creative usage of technology. Besides the
trends of technology guests are demanding more and more
personalized services to exactly cater to every individuals needs.
This can also be seen in the four market segments described.
Another important aspect is that businesses need to evolve, grow
and become successful faster and faster and means people need

2.2.6.

SWOT
Strengths

to become more and more productive, solutions are created

through office designs. Moreover, adding value with a company
to the community and environment is still an important trend,
however it may now be seen as expected rather than requested.
Lastly the economic situation remains a combination of
instabilities and stabilities, European economy is growing and
unemployment is decreasing however the unemployment rate is
still too high and slowing down the growth of the economy.
Capital markets will experience stability created by interference
of governments.

Weaknesses

A SWOT analysis
hasofbeen
in order to clearly
visualize
1 City
1 Technology
peacemade
and justice
trends the specific strengths, weaknesses, drivers, and constrains. This has been used as the basis
2 Safety & Security
2 Difficulties with retaining
for the prototypes.
3 Tailor made services
4 Connection with municipality
enables repeat business
5 Connection with municipality

1
2
4
6
7

enables repeat business

Drivers
Personalization
Virtual reality
Bleisure
Healthy work-life balance
Increase in self-employed
entrepreneurs
Employee Engagement

1
6 Business guests in the
Netherlands
7 Future of workspaces
8 Growth in need for office spaces
9 Importance of brand image
2 Decrease unemployment rate
3 Stability capital markets
3 Events app
Suppliers

customers
3 Behind in growth of sustainability
4 Employee benefits
5 Low occupancy %
Constraints
3 Technology rehab, striving for
simplicity
5 Knowledgeable customers
7 Increase in self-employed
entrepreneurs
1 Instability global market
1 Competitors
2 Sharing economy
5 Understanding the offer of
sustainability

4
Table
1 SWOT Analysis with corresponding colour-codes

3 Innovate
3.1 Three prototypes
After applying Group Brainstorming for a creative brainstorm session based on the internal and external scans, the following three
prototypes were developed and presented to the WF

Link with
External
Environment
Key Trends
The Worlds Top Secret
A secret rooftop bar exclusively accessible to
the ones that know about it and are invited.
Worlds Top Secret is aimed at adding an
extra dimension and experience to
conferences and surrounding international
organizations. The bar will be nothing like a
modern day bar, but will be in line with an
old school gentlemens club reinvented.
After conferences, delegates can be
contacted via the new World Forum app
where they receive an invitation to discover
the secret! During the weekends this
location will also be open to outside guests.
The aim is to create a social meeting place
for people working in the surrounding
international organizations. By keeping the
location a secret, only invitees will know
about it, and by maintaining a loyalty
system, the customer base can be
managed.

Market Forces

Macro-Economic
Forces

Industry Forces

Project Break
A concept that will introduce delegates with
the local culture of The Hague. A concept
where personalization is essential.
This concept is aimed at optimizing the
experience international business people
have during their visit at the World Forum.
Business people visiting conferences most
likely have long days and limited breaks,
and of course, during your break you prefer
to actually get into another environment.
Therefore, we want to connect these breaks
with what the city The Hague has to offer,
through the options: experiencing the local
culture; sports activities; peace & justice;
voluntary work.
These options will be offered by
implementing an application for the
delegates; within this application delegates
may indicate their break preference.

Links to
External
Environment
Key Trends

Market Forces

Macro-Economic
Forces

Industry Forces

36

The Next Level

Following the current floors of World Forum: Oceans; Continents;
Rivers; Mountains, two new dimensions will be added: The Cloud and
Heaven. A creative and innovative addition to what World Forum has

Links to External Environment

to offer.
The cloud will be a creative space, completely out of the ordinary.
Available to members and one-time visitors, this space will raise the
bars on innovative working spaces.
The key word with heaven is relaxation, featuring sleeping pods and
meditation space that will help guests to focus. Through combining
these two parts, a highly innovative, unique and healthy environment
is created.

Key Trends

Macro-Economic
Forces

Market
Forces

Industry Forces

37

3.2 The Next Level

The Next Level (TNL) was chosen as the preferred prototype,
below you may find a detailed description of the concept.
This BMI concept features two different departments; the cloud
and heaven. The key word for the cloud is creativity. Heaven
focuses on relaxation and self-actualization.
Why?
Many clients book conferences, exhibitions or conventions at the
WF. These events take up one or several full days. Delegates of
events need to be present at a full program of listening to
presentations and speeches. This customer segment has certain
needs and wants displayed in the value proposition canvas (VPC)
(See page 39/40). In addition to this, the amount of self-employed
entrepreneurs is growing and flexible working and meeting spaces
are in demand. To satisfy these needs, the WF needs to innovate.
Also, this concept will add a completely unique selling point to the
WF within the competitive set.
What?
The Cloud:
As mentioned, creativity is the key to this new area. The cloud
offers a stimulating atmosphere where business meetings can be
held and people can work on new ideas. The cloud will be located
on the current roof terrace and made of mainly glass (see figure
2). The cloud will be created in the most flexible way possible, with
moveable walls and other office utensils. The advantage of this is
that the cloud can accommodate a whole variety of groups and
individuals. As the environment needs to be as stimulating as
possible, a whole range of activities are placed in the room, from
Rubiks cubes to gaming consoles and VR headsets. The
possibilities are limitless. For a detailed list of everything the cloud
will feature please refer to app. 3 & 4. Furthermore, to enhance the

creative spirit within the cloud, a pop-up area will be created where
companies can book the space for one month introducing their
newest products to delegates/business segment booking the office
spaces.
Heaven:
Heaven will be created, for the delegates to recharge from the full
program offered, to take a moment for themselves during their busy
schedule. It will be focused on relaxation and meditation. This
setting is created by a very low tech setting. Upon entering mobile
devices will have to be handed in and will be charged during the stay
of the guest. Guests can either choose for a power nap in one of the
sleeping pods, a master class in for example yoga, or a stroll on the
rooftop garden. After a nap or activity, a healthy, freshly pressed
juice can be enjoyed before returning to the conference or work,
completely recharged.
For whom?
The cloud and heaven will be available for clients of WF to book
entirely as a break area possibility, innovating the offer of conference
breaks. In this way, the delegates experience a complete different
environment from the conference for their breaks, enjoying gams,
comfortable seats, the rooftop garden, and privacy rooms.
The cloud and heaven are both offered for self-employed
entrepreneurs on a membership bases and on a one-day only bases,
with the help of partnerships (see page 41). When clients of WF
would book TNL entirely for breaks, the creative meeting spaces will
be reserved for members of TNL. Please see app. 5 for a floorplan of
TNL.
By whom?
The aim is that the concept is implemented by a project manager of
WF and investment by GLE and the MTH.

38

39

3.2.1.

Building the concept

Sustainability is nowadays very much integrated in society and

has become more of a must than an innovation. For this reason,
the design of TNL consists of as many environmental friendly
materials as possible. Also, in order to reduce the ecological
footprints different solutions are implemented. This chapter
focusses on the design and the used materials for the concept.
Building
As the concept is located on top of the current building, the build
has to be in line with the current structure. To create the feeling
of Heaven and the cloud, the choice has been made to use
mainly glass. Also, as previously mentioned, sustainability is an
important aspect. The three following additions will be
incorporated in the design of TNL.

Rain harvesting system

Each square meter in The Netherlands receives an average of
800 litres of rainwater each year. Neglecting this opportunity is a
waste of money and energy. For this reason, the choice has been
made to implement a rain harvesting system where this
rainwater is stored and used for different purposes such as; flush
water and irrigation of the rooftop garden (Postma Pomp
Systemen, 2016).
Elevator
and
Staircases
The elevator will be extended to the WFs rooftop in order to
make the accessibility easier. Additionally, the staircases will be
renovated to get every zone in WF aligned with the concept.
The design and attributes

Smart Energy Glass

Conventional glass has no benefits except for the view it
provides, Smart Energy Glass will be used in the build of the
concept providing the following benefits:
- It supplies solar energy from which the building can make use
that ultimately saves costs.
- Windows can switch into different shades; privacy, dark and
normal. If for example privacy is required.
- The glass is climate efficient, providing cooling in summer and
heating in winter.
(Peer+, 2016)
Bamboo Floors
The floors of TNL are important as it has to be made from
durable material and should be easy to maintain. Bamboo offers
a cost and eco-friendly solution (Duurzaamthuis, 2016).

Figure 2 Vision for TNL

40

3.2.2.

Value proposition canvas

The VPC has been used as a tool to adapt the BMI to the needs and wants of the two different target markets.
VPC Entrepreneurs using sharing economy

Gain creators:
Different/unique office space offered
Place to network and co-work together
with other entrepreneurs
Professional office space, but playful
as well, to boost creativity and
productivity

Products &
Services

Creative offices
and meeting
spaces
Space to work on
personal job
Office facilities
offered

Gains:
Making connections
with new/other
entrepreneurs Sharing
ideas
Meeting spaces
boosting creativity and
Customer Jobs:
productivity
Enjoyable office spaces

Pains:

Pain relievers:
F&B available, healthy options as
well to mix work-healthy lifestyle
a professional environment for
focus and productivity of work. No
distractions from personal life

Design

Finding a
professional
environment
Daily work to be done
Need for networking

Working from home results in pains

such as not able to network, not a
professional office environment,
F&B available prepared by
someone else.

Need for office

facilities

Observe

Figure 3 VPC Entrepreneurs using Sharing Economy

41

VPC Clients/Delegates

Gain creators:

Products &
Services

Different/unique meeting space

offered
introducing new ways of using
breaks in programs
Offering playful engagement
during meetings/breaks

creative & relaxing

break rooms
creative
offices pop-up
area,
Pain relievers:
introducing
No dull coffee breaks, but an option
innovative products
to go to heaven in your break.
Health-incorporation in F&B offered
Partnering with sharing economy,
closing the gap between large
conferences and business meetings

Design
Figure 4 VPC Clients/ Delegates

Gains:
CSR policy
Top AV-facilities
High-class F&B offered
Innovative conference programs
Unique venues
Delegate engagement
Differentiation in
experiences

Customer Jobs:
Sharing

experiences/knowledge
Finding event venues
Planning events
Creating
unique and
Pains:
meaningful
events
Finding unique experiences
Ineffective breaks
Long conferences
Unbalanced work-healthy
lifestyle Sharing economy,
offering an

alternative to event room

booking

Observe

3.2.3.

Adjustments to BMC
TNL will add value into all nine building block of the BMC. Below the adjustments that will add value to the BMC of WF are displayed.

Municipality The Hague

University Leiden
Seats2meet
Deelstoel
Meetberry
Letshare
Mindfulness
coach
Interieuracademie

Production
Designing TNL
environment
Additional services,
such as F&B and
audio-visual facilities
Break activities, and
outside
availabilities
Platform/Network
Bringing people
together (sharing
economy)

Physical
- Renovating
top level
- Rooftop garden
Intellectual
- Partnerships
Human
- Creative architects
Financial
- Investments

Value-driven
- Exclusive services
Fixed costs
- Amortization and
depreciation
- Salaries
Variable costs
- F&B costs

Newness
Creativity
Differentiating
Innovative
Relaxation
Energetic

Co-Creation
Communities,
exchanging
knowledge
Self-service

Customization
Flexibility, specialization
Sharing knowledge
Professionalism
Networking
Design
Unique
Setting
Inspiring environment
Creativity

Segments
- Self-employed
entrepreneurs
- Conference
Clients
- Conference
delegates

Mobile application
Social Media
(LinkedIn)
Personal Project
Planner (for clients)
Sharing Economy
Intermediary (S2M)

Events revenue
- Renting out (for clients)
Usage fees
- Membership fees
- One day only fees
43

Conclusion BMC
As can be concluded from the adjustments to the current BMC
and VPCs displayed above, TNL is a BMI, innovating all aspects
of the current BMC. The link between the Value Proposition and
Customer Segments is explained in the VPCs, showing that pains
such as; needing a professional environment to work (selfemployed entrepreneurs), and long conference days (conference
delegates) will fit in well in TNL concept. The co-creation
communities will build the customer relationship between the
customer segments and the TNL offers. Sharing economy
intermediaries, such as Seats2Meet and Meetberry will be added
to channels to reach the customer segments. In addition to this,
the following key partners are added to the new BMC of WF:
Seats2meet, Deelstoel, Meetberry, Letshare. In order to attract
entrepreneurs using the sharing economy, it is essential for WF
to partner up with these intermediaries. Entrepreneurs will book
via these peer-to peer businesses, which will result in a higher
occupancy percentage. The rooftop of WF currently needs to be
renovated, needing physical and financial resources. The coststructure will stay value-driven, and revenue streams will ensure
membership and rental fees.
In conclusion, it can be seen that the TNL BMI results in changing
the entire BMC of WF.

44

3.2.4.

Risk analysis

To properly asses the risks involved with the implementation of TNL, the following matrix has been created. All scores were given by the
team based on their individual opinions and from that averages were calculated to determine the risk of each aspect.

Risk Assessment The Next Level

Business Level
Length
Complexity
Technology
Number of organizational units involved
Costs
Overall risk of failure

low

low

long
unknown

many

low
low

10

high

well established

high

short

one

high
high

Table 2 Risk Assessment

Explanations
Business Level: Does the project have a strategic importance for the organization?
Length: How long is the intended implementation time?
Complexity: Does the project cover various business areas / objectives?
Technology: Is the technology to be applied well-established or is it a technology which yet has to be developed?
Number of organizational units involved: cross functional / geographical areas, etc.
Costs: estimated costs of the project
Overall risk of failure: How would you personally rank the risk that the project cannot achieve the objectives with the intended resources?
Conclusion
What can be concluded is that there are risks involved with implementing TNL, the cost aspect in combination with the length of time to
implement the concept has been identified as the riskiest, due to the substantial costs involved with building the concept. This goes hand
in hand with the intended implementation time as the development of TNL costs time (+/- 1 year). Consequently, this leads to a longer
time before any return on investments can be expected.

4 Validate
This chapter consists of two major parts; market feasibility and
financial feasibility. These two components are vital when
validating the viability of TNL.

4.1 Market feasibility

To ensure the success of TNL, a market feasibility study has been
conducted. The research paper examined two populations
(entrepreneurs using the sharing economy and clients/
delegates) and its preferences in order to make suitable
conclusions and recommendations. A literature synthesis was
created to acquire thorough insight in the sharing economy,
customer profiles, creativity and productivity enhances.
Afterwards, two structured quantitative questionnaires were
conducted for both populations and the basic findings were
described. Then, statistical testing was executed in order to find
means, relations and differences between the hypotheses.
For entrepreneurs using the sharing economy, the main
outcomes were; an average age of 29,48 years and the majority
of this customer segment is female with 54,8%. The need for a
professional environment and networking opportunities were
indicated as the main reasons for using the sharing economy.
One break of 30 minutes and one of 15 minutes was specified as
most desired in which there is the possibility to walk outside for
fresh air, engage with other people and enjoy a cup of coffee and
a snack. The entrepreneurs also indicated that an environment
stimulating their creativity is of high importance as well as
natural light and comfortable seating options.

47

Additionally, meditation/mindfulness and yoga sessions as

relaxation moments are both desired by 16% of the respondents.
Lastly, varied music, privacy for calls and healthy food options
are indicated as special requests by entrepreneurs. The price
they are willing to pay for TNL is on average 25,48.
With regards to the second population; conference delegates, the
main results were as follows; an average age of 34,90 years and
the majority of the respondents being female with 54%. The
delegates mostly prefer two short breaks of 30 minutes with the
option to have healthy food choices. The room set-up mostly
preferred is a playful design. Indicated as the number one
productivity booster is fresh air (30%), followed by
meditation/mindfulness sessions (26%) and yoga sessions
(23%). Even though a powernap was indicated as the greatest
productivity booster in general, this is not desired during a
conference break. Other suggestions are technology innovations,
privacy options and neck and head massages.

The following recommendations for the WF are suggested to

make TNL into an ultimate success. Concerning the
entrepreneurs using the sharing economy, a professional
environment with the possibility to network is suggested, as well
as an area to enjoy fresh air and engage with one another on the
rooftop garden. Natural light, implemented through floor-toceiling windows, and nature-inspired design is suggested e.g.
using natural materials. Comfortable seating options should be
offered and lastly, no sleeping pods should be offered, since
powernaps are not desired. The concept should be offered for a
daily pricy of 25 per person.
With regards to the conference delegates, it is recommended to
offer healthy food options during two short breaks e.g. using
seasonal and biological products. Additionally, it is suggested to
implement a playful and creative atmosphere where the
delegates feel completely distracted by using swing chairs, bean
bags and video games. For this customer segment it is also
recommended to not offer sleeping pods, as powernaps are not
desired. After the implementation of TNL, the concept can be
taken to the next, next level by applying virtual reality and sound
proof phone booths for privacy.
The research paper was used in order to adapt and finalize the
initial concept TNL. For detailed information concerning the
design of TNL, please see app. 3 and 4.

48

4.2 Financial Feasibility

In this financial feasibility study, the financial viability of TNL is assessed. This chapter features information about the finances of TNL. To explore all possibilities three sc
Initial investment
As the concept needs to be built physically, numerous investments
are involved. Before the transformation of the roof can begin,
architects have to make drawings and floor plans. As two main
parties benefit from implementing the concept the total
investment will be split up between the MTH and GLE. The
reason for the investments: The MTH owns the building and will
therefore also benefit from the implementation of TNL as the
value of the building increases. GLE is the managing company of
the WF and therefore has a financial interest in the form of
profits in TNL.
The total investment of the project was estimated by a
professional civil engineer/architect to be between 1.2 1.3
million Euros (Heitzman, 2016). As GLE benefits more from the
investment, not only financially but also in experimental value,
the majority of the investment will be funded by GLE (Table 3).
Total investment
GLE Equity
MTH Equity

1.300.000 EUR
900.000 EUR
400.000 EUR

Table 3 Investment Division

The investment costs are split between two timeframes; Project

Costs and Operational Costs. Project costs indicate all costs
occurred before and during the build of TNL. Operational costs
concern the costs incurred during operations.

Project Costs
The following table shows the investment specification before
and during the build of a duration of approximately one year. For
an overview of the costs and balance sheets, please refer to app.
5.
What?
Contractor/project
developer/physical
building

Cost
1.100.000

Interior architect

5.000

IT Systems

13.500

Office Utilities
Furnishing

1.000
100.000

Building permits

n/a

Marketing
Accessories

3.300
50.000

Safety and security

Unexpected Costs
Table 4 Costs Before Build

1.000

10.000

Note
Man hours and
materials based on
estimate of
building engineer.
(Heitzman, 2016)
Designers:
Plaisier Interieur
Microsoft Surface
Hubs, Printers, and
Routers
Only furniture
(no accessories)
Municipality owns
building
Chapter 5.3.1
I.e. Lego,
Rubiks cube,
pool table,
PlayStations
I.e.
Firefighting
attributes + fire
department check

Revenues
Revenues, in the case of TNL, originate from F&B sales,
membership fees and booking fees. The revenue is expected to
increase after the implementation period of one year and is
expected to stabilize after three years. The following tables
depict the expected revenues per month for the first five years
and the capacity and selling prices for TNL.
Clients
Members
Meeting rooms sold per month
One day users
Number of activities
Client Rentals
Revenue
Membership fees
One day only
Meeting rooms
F&B Revenue
Client Rentals
Total revenue
The next level

Year 1

Year 2

Year 3-5

35
44
30

55
50
40

60
58
50

0
50

0
75

0
100

9.625,00
750,00
13.200,00

15.125,00
1.000,00
15.000,00

16.500,00
1.250,00
17.400,00

2.775,00
1.500,00
27.850,00

4.325,00
2.250,00
37.700,00

4.750,00
3.000,00
42.900,00

Meeting rooms

Flex working spaces

50

Fee one day only

25,00

Membership fee monthly

275,00

Client Rental Per Person

Booking cost meeting rooms
Average F&B Spending p.d.p.p.
Number of visits of members per month
Table 5 Expected Monthly Revenue

30,00

300,00
5,00
15

50

Operational Costs
Costs Monthly

Year 1

Year 2

Year 3-5

Payroll*

4.800,00

4.800,00

4.800,00

G/E/W 1

1.000,00

1.000,00

1.000,00

100,00

100,00

100,00

200,00

200,00

200,00

Internet/telephone

Office supplies
F&B cost 2

555,00

865,00

950,00

Maintenance

1.000,00

1.500,00

1.500,00

ICT

1.000,00

1.000,00

1.000,00

Housekeeping

750,00

750,00

750,00

Marketing 3

100,00

100,00

100,00

9.505,00

10.315,00

10.400,00

Total costs
*Staff 5
Amount of staff needed
Average monthly wage

3
1.600,00

Table 6 Expected Monthly Costs

1.
2.
3.
4.
5.

Estimates, gas/electricity/water might be low due to

sustainable build of TNL.
Based on an average F&B costs percentage of 20%.
Marketing costs are specified in the marketing plan (see
page 57).
Internet/telephone costs are researched and rounded
off (XS4ALL, 2016).
Based on averages for younger person (age: 20-30)
working in the hospitality industry (Gemiddeld
Inkomen, 2016).

The worst and best case scenarios concerning expenses are

displayed in app. 6.

Investment Appraisal
Method:
To asses if an investment is viable, an analysis has been made where the net present value (NPV), internal rate of return (IRR),
profitability index (PI) and payback period (PP) are calculated by means of the cash flows. Another important aspect of realistic numbers
is the weighted average cost of capital (WACC), when the IRR is higher than the WACC, value is being created, and hence the investment
is worth pursuing. For this reason, the choice has been made to depict the three scenarios with two different WACCs. The lowest WACC
is calculated based on the annual report of GLE in 2014 (see figure 5 for the numbers used). The other WACC is derived from the annual
report registration form from GLE where a targeted WACC was described of 7,08%. The scenarios logically differ from each other as the
revenues and costs differ. Underneath, the expected situation is depicted with the lowest WACC from the annual report. The other two
scenarios are displayed in app. 6.
Year 2

Year 3

334.200,00

452.400,00

514.800,00

519.948,00

(1.300.000,00)

334.200,00

452.400,00

514.800,00

6.660,00
57.600,00
49.800,00
114.060,00

10.380,00
57.600,00
55.800,00
123.780,00

(1.300.000,00)

220.140,00
260.000,00
(39.860,00)
(39.860,00)

328.620,00
260.000,00
68.620,00
68.620,00

260.000,00

260.000,00

260.000,00

260.000,00

260.000,00

220.140,00

328.620,00

390.000,00

395.148,00

400.347,48

WACC
3,28%
3,28%
3,28%
3,28%
3,28%
Present Value of Future Cash Flows
(1.300.000,00)
213.159,04
308.108,43
354.061,74
347.359,33
Investment Overview
Total
Net Present Value
263.458,33
Payback Period
4,23
Internal Rate of Return
9,54%
Profitability Index 1,20
Table 7 Investment Appraisal Based on no residual value of the investment with a lifetime of 5 years.

3,28%
340.769,79

Initial Investments
Revenues
Residual Values
Total Revenue
Operating Costs
Variable costs
Payroll & Benefits
Other occupancy and operating costs
Total Operating expenses
Cash flow
Change in EBITDA
Depreciation & Amortization
EBIT
Adjusted Net Income

Year 0
1.300.000,00

(1.300.000,00)
(1.300.000,00)

Added Depreciation
Change in Future Cash Flows

(1.300.000,00)

Year 1

Year 4

Year 5

Calculation WACC

519.948,00

525.147,48
525.147,48

Total Equity
Total Debt
Total D+E

11.400,00
57.600,00
55.800,00
124.800,00

11.400,00
57.600,00
55.800,00
124.800,00

11.400,00
57.600,00
55.800,00
124.800,00

Cost of Equity

3,50%
3,73%

390.000,00
260.000,00
130.000,00
130.000,00

400.347,48
260.000,00
140.347,48
140.347,48

Cost of Debt
TAX
WACC

395.148,00
260.000,00
135.148,00
135.148,00

382,9
299,1
682

20%

3,275%
In Million EUR based
on Annual Report 2014
(GL Events, 2014)
Figure 5 Calculation WACC

Conclusion
From the investment appraisals, with the three different scenarios,
can be concluded that the investment is a financially profitable
decision. Even in the worst case scenario the NPV, IRR and PI are
positive. Table 8 summarizes these indicators. The depreciation
calculated is based on a lifetime of investment of five years,
however the lifetime of the investment will most probably be
around ten years. Therefore, the outcome of the NPV will be even
more profitable than displayed now. However, the choice to depict
five years has been made to show that the quite large investment
is already profitable within the required five years.
As can be seen from the overview, in almost all cases a decent
overall return on investment will be created, therefore TNL is a
most feasible project to take on.

Investment Overview WACC

Present Value of all future cash
Internal Rate of Return
Profitability Index
Payback Period
Return on Investment
Investment Overview WACC
Present Value of all future cash
Internal Rate of Return
Profitability Index
Payback Period
Return on Investment

3.28%
flows

7.08%
flows

Table 8 Investment Overview

Total Expected

263,458
9.54%
1.20
4.23
20.27%

94,763
9.54%
1.07
4.67
7.29%

Total Best Case

748,938
20.47%
1.58
3.25
57.61%

533,894
20.47%
1.41
3.52
41.07%

Total Worst Case

31,578
4.04%
1.02
4.90
2.43%

-115,746
4.04%
0.91
-8.90%

5 Implement
To ensure a structured and effective implementation process of
TNL, an implementation plan was created that will guide the WF
in successfully implementing the new BMI. First of all, a new
stakeholder analysis has been created to create an overview on
how the positions of stakeholders changed compared to before
the BMI. After having identified the new positions, a planning
for the implementation is provided in the form of a Gantt chart.
The marketing plan is a vital part of the implementation plan as
the BMI should be made public to be successful. To create a
more concrete view on how users of TNL will experience the
newly implemented BMI, a customer journey has been created.
Finally, to summarize, a roadmap of the whole implementation
plan is depicted.

5.1 New Stakeholder Analysis

TNL will influence the stakeholders in several ways. In order to
provide a more in depth view of what will change for the
stakeholders, the specific changes will be described per
stakeholder.
New target markets
This is a completely new stakeholder; they are the new target
markets WF will attract because of TNL. These stakeholders have
a relatively high interest in WF because of their interest in TNL.
Their influence is also quite high because of the (Implementation
plan).
City of The Hague
The interest and influence of the City The Hague will increase,
due to their investment in TNL as well as the possible benefits
they can experience whist TNL is implemented. These benefits
include free publicity for The Hague and WF, and an increase in
office spaces for which there is a need in Scheveningen
(Denhaag, 2015).

posted on Linked-In and featured in newspapers (see

marketing plan).
Competitors
The influence of the competitors will decrease, because of the
differentiation TNL will create for WF; having a secondary
business next to their core business gives WF a stronger
competitive position. WF gains a unique selling point other
companies cannot yet compete with.
Media
The interest of the media will increase, because WF already is an
interesting topic for the media to write about due to high profile
events (NSS), and the innovative qualities of TNL can contribute
to that.
Key partners
Due to the fact that companies such as Seats2meet will be
partners. Their influence will increase as the BMI will
partly require their booking platforms.

GL Events
The interest of GLE will increase because of their investment in
TNL, as Mr Middendorf stated: GLE has low influence on
operations, they are more interested in monitoring the financial
status of WF (Middendorf, 2016).
Delegates
The interest of the delegates will slightly increase because of the
media and social media attention WF and TNL will receive; it is
expected that delegates will read articles about WF which are

Figure 6 New Stakeholder Analysis

56

5.2 Gantt Chart

The following Gantt Chart (Table 9) shows a more detailed step-to-step overview of what exactly will happen during the implementation
phase and how long this will take.

Table 9 Gantt Chart

57

5.2.1.

Marketing plan

Marketing plan
In order to make the BMI a success, a fitting marketing plan is a
necessity. As previously explained, two target markets have been
identified: Entrepreneurs using the sharing economy and
clients/delegates. As the concept is mainly focussed on the first
group, this will be the primary target market and the
clients/delegates will be the secondary group.
In this chapter all aspects are explained on how to reach these
markets, which costs are involved and the planning.
Channels
General:
To create maximum awareness for our target market, a few
basics will be part of the marketing plan:
- High search results on Google with searching terms:
Flexwork, Creativity, The Hague and World Forum.
- Local media coverage on the opening of the concept.
Primary market:
To reach this market, the channels that are frequently used by
this market need to be identified. The main channels of
communication are digital in the form of Social Media. As this is
a business segment, channels like LinkedIn are very favourable
(PriceWaterhouseCoopers, 2015). For this reason this will be the
primary marketing channel used. To increase the accessibility of
TNL, Seats2meet and MeetBerry are used as partners.
Secondary market:
Current clients of the WF allow for repeat business and therefore
have priority. These clients will be informed about the new
concept by means of a brochure containing all details. The same
procedure is followed when the WF is approached by new clients.

Based on the brochure clients can choose to book the facilities

with their events. Should the client decline this offer, the client is
asked to inform the attendees with additional information about
the concept and that individuals can make on the spot bookings
for a working/meeting space.
Timeline and specifications
By means of a Gantt chart (Table 10) the time of execution of the
different aspects of the market plan are indicated. Under the
Gantt chart a more detailed explanation is given on each
different aspect.
Primary Target Market
Post On LinkedIn &
Article in Local News Paper &
Article in Meeting Magazine

This is an article to introduce the

target market to
The Cloud & Heaven, and to
announce when it will
open. It will be visible to everyone
that follows WF on LinkedIn, as well
as all the readers of the local
newspaper

Advertisement on LinkedIn

This will be the same article as the

original LinkedIn post, but it will
be distributed as a recommended
article amongst all LinkedIn users.

Blog

A blog will be started in order to

inform readers about new products
and activities at The Cloud &
Heaven. This blog can be viewed on
Social Media and the website of WF.

58

Secondary Target Market

News Letter to Customer Base

Brochure

This will be the same article as the original LinkedIn post, which will be sent to everyone in the client
data-base of WF.
A brochure will be sent to all the companies that WF works with or had worked with.

On Location Promotion

Several banners will be placed throughout WF, promoting the presence of The Cloud & Heaven.

Post On LinkedIn

An article aimed at conference delegates as well as clients will be written and posted on LinkedIn.

Cost

Article in Meeting Magazine:

Advertisement on LinkedIn:

1450 (Meetingmagazine 2016)

560 (LinkedIn 2016)

Brochure (5000):

890 (Drukkerij123 2016)

Banners (10):

320 (Drukwerkdeal 2016)

Staff Costs (10 Hours):

130 (Loonwijzer 2016)

Grand Total:

3300

Marketing Planning
Planned Duration

ACTIVITY
Primary Target Market
Post On LinkedIn
Article in News Paper
Advertisement on LinkedIn
Flyering at Target Locations
Blog
Secundary Target Market
News Letter
Brochure
On Location Promotion
Post On LinkedIn
Table 10 Gantt Chart

PLAN

PLAN

START DURATION

Weeks
1

10

10

59

5.3 Guest Journey

Part of the implementation plan, the team created the guest journey for both the delegates as the sharing economy user. This map is a
tool which is used to visualize the complete customer experience showing the different touchpoints between the guests and WF. Also, the
guest journey map will help WF identify any possible gaps between the guest expectations and what WF delivers, which will ensure the
optimization of the guest experience.

60

5.4 Road Map

A roadmap is created explaining all milestones WF needs to reach
in order to successfully implement the new BMC. The milestones
are divided into five stages: Design & Develop, Settlement,
Introduction & Improve, Launch and Continuous Improvement.

61

6 Final recommendation

view years. Continuing, as described in future outlook as well,

this concept will be of value for the WF employees as well.

Based on the market and financial feasibility research, the

following final recommendations for TNL are given.

The financial feasibility shows that TNL will be a viable concept,

resulting in a NVP of 263.458,33 and a ROI of 20,27% in the
expected case. Moreover TNL will contribute to WF differentiating
itself from its competitors. As explained in the future outlook,
this concept will boost local companies as well, introducing new
products and constantly innovating the industry.

Recommendations for self-employed entrepreneurs

The team recommends creating an environment for professionals
to network and be as productive as possible. The main break
activities used by entrepreneurs are going outside for some fresh
air, which is underpinned by the external analysis as well.
Therefore, the implementation of the rooftop garden is a vital
subject. Moreover, F&B offered should mainly focus on
healthy options, and it is recommended to combine innovation
of technology with the creative design of TNL. Soundproof
phone booths (as described in app. 4), are for example
suggested to ensure entrepreneurs are able to make private
phone calls.
Recommendations for conference delegates
The team recommends to mainly focus on break activities for
conference delegates, to offer a complete distraction from the
conference day. Via an event application, the offers of TNL (such
as the game room, meditation room, privacy rooms, and rooftop
garden) will be available as conference breaks. In this situation
again, the market feasibility has shown that the rooftop garden
will be vital for the success of TNL.
Moreover, the team recommends to not immediately implement
the pop-up space, but after the launch of the next level as is
described in the future outlook (see chapter 7). In addition to
this, it is suggested to not implement sleeping pods either, since
the market feasibility has shown that the target markets are not
ready for it yet. It may be applicable to implement this idea in a

Based on all of the above, the team believes that TNL will add
value to all stakeholders through non-event activities, and is
therefore very suitable to be implemented in WF.

7 Future Outlook
The future outlook, is based on expansion options the team
deemed to be value adding.
Application
When the new concept is becoming more popular, the WF should
seriously consider revising their current mobile application as it is
fairly outdated. An event app (specialized per event) with
booking possibilities for the breaks (for example the game room,
meditation room) could save manpower and administration and
thus costs.
GLE
For GLE the implementation of TNL can be seen as an
experiment. If this concept is a success, GLE might want to
incorporate it in more of their locations throughout Europe. This
can be beneficial for WF as the knowledge acquired by WF can be
shared with other locations.
Balcony
The balcony situated on a level lower than the roof terrace,
where TNL will be built, is very suitable to use as an extension of
the current concept. Extra F&B and outdoor working spaces could
be created here.
VR-room
As VR is becoming more affordable and more content is made
available, a VR room might be in demand by workers. Also, VR
could be offered during meetings.

Future outlook Pop-up

When TNL becomes more popular, it becomes an attractive
location for companies to display new products. To facilitate this,
a pop-up tent can be created where, for example, one company
per month can show their new (office) product(s) to create
awareness amongst the entrepreneurs and delegates. WF can
benefit from this, as in return for making space available, the
products may be kept to use in TNL, and new partnerships may
be created.
WF staff
There is an additional benefit for the WF concerning the TNL. As
previously explained, having proper breaks boosts productivity.
The staff of WF could use the facilities TNL has to offer to also
boost their own productivity.
Own Produce
TNL already features a rooftop garden which is used for
relaxation and breaks. A vegetable garden could be added in
order to provide the F&B facilities with own, biologically grown
vegetables. This is not only environmentally friendly but can also
save costs.

8 Appendices
8.1 App. 1: Business Visitors The Netherlands

Figure 8 Developments international business visitors The Netherlands,

(NBTC 2015a)

Table 11 Inbound Bussines Travel

Figure 7 Purpose international visitors to The

Netherlands, (NBTC 2015a)

Figure 9 Top 10 activities international business visitors,

2015a)

(NBTC

8.2 App. 2: Competition Table

Company

Organisational structure

Customer segment

RAI Amsterdam

Two shareholders: 25%

city of Amsterdam,
75% RAI Association

- Large-scaled events as well as

small-scaled meetings
- National and international
- Leisure and business

Rotterdam Ahoy

De Doelen
Rotterdam

- Building is owned by
the city of Rotterdam
- Management is
handled by Ahoy.
De Doelen operates as a
foundation since 2006

- Large-scaled events as well as

small-scaled meetings
- National and international
- Leisure and business
- Concert customers and congress
customers
- National and international

Jaarbeurs Utrecht

Jaarbeurs Group

- Leisure and business

- Business (trade) segment
- National and international

MECC Maastricht

WF

City of Maastricht
has ownership of the
building as well as
management of
MECC
Maastricht
Public/private
ownership
Public: city of The
Hague Private: GL
Events

- National and international

- Leisure and business

- Large-scaled events,
business clients
- National and international
- Leisure and business

KPIs
- Extremely large halls, as well as small meeting
rooms.
- Flexibility and multifunctional
- Leader in sustainability in MICE
industry Netherlands
- Employee incentives
- Transparency
- Digital platforms
- Focussed on congresses, music events and sport
events
- Multifunctional
- New international congress centre
- Focussed on sharing culture
- Adds value to the music culture
- Talent development, cooperation with Codarts
and Royal Conservatorium The Hague

- Focussed on exchanging knowledge through

expositions
- 11 halls, and congress halls
- Bringing people and trade markets together
- Digital platforms
- Organizes fairs, conferences and events
- In top 3 of most popular congress locations in the
Netherlands
- Sustainable responsible
- Quality over quantity
- Flexibility, customization
- Hosted NSS, top-class security
- Educational development company
- Multifunctional

Cost structure

Vision

Awards

- Variable costs: outsourcing and other

operating costs
- Fixed costs: wages, depreciation, taxes
- Making profit
- Value-driven

The power of connections

- Best International Venue

2015
- RAI Amtrium: four-star
New Construction Design
Certificate by BREEAM-NL
- 5 hammers
- Gold Green Key

Not available

Rotterdam Ahoy. Built for

experiences

No hammer classification

- Variable costs: other operating costs

- Fixed costs: wages, depreciation,
interest, taxes
- Making profit
- Value-driven

The core activities of De Doelen

are presenting live music and
facilitating meetings

- ANBI status

- Not making profit

- Value-driven

Jaarbeurs. Puts trade into

movement

- 5 hammers
- Gold Green Key
No hammer classification
- Gold Green Key

- Variable costs: outsourcing and other

operating costs
- Fixed costs: wages, depreciation, taxes
- Making profit
- Value-driven
- Variable costs low
- Fixed costs high
- Making profit
- Value-driven

MECC Maastricht offers

a successful partnership.

- 4 hammers
- Gold Green Key

Using our reliability and

flexibility, we aim to create
a
personal
environment for
high- quality events that
matter.

Table 12 Competition Table

(RAI, 2016)(Rotterdam Ahoy, 2016)(De Doelen, 2012) (Jaarbeurs, 2016)(MECC Maastricht, 2016)(Vergaderhamer, 2016)(Greenkey,
2016)(WF, 2014)

- 5 hammers
- Gold Green Key

8.3 App. 3: Detailed

Information
Opening times
After having benchmarked TNL with similar concepts and in
order to generate the maximum revenue and incur the lowest
possible costs the team decided the following opening times:
07:00 until 22:00, seven days a week.
Entrance
When entering the WF, clients are required to sign up at the
service desk downstairs, where they will be checked in and
welcomed by a WF receptionist. Membership guests receive a
membership card in order to ensure a smooth process.
Afterwards, guests will be accommodated to the elevator which
will go all the way up to the cloud and heaven. Here the guests
will be welcomed by one hostess who will guide them to the
assigned rooms, if reserved beforehand; otherwise the hostess
will allocate the guests to unoccupied meeting spaces.
F&B
Regarding the F&B offered, several healthy food options will be
at the guests disposal. The main goal of these F&B options is to
re- energize the conference guests and entrepreneurs making use
of the sharing economy. As mentioned in the research report
(chapter 4), healthy food options serving as a productivity
booster is highly desired. Since the self-employed entrepreneurs
desire short breaks, the variety of F&B options will be kept
simple including seasonal and biological ingredients. Examples
are; yoghurts with fresh fruits and muesli, a variety of fresh and
healthy juices/smoothies, great coffees with the options of soyaor almond milk, and several unique, healthy sandwiches.

Rooms
The floor plan (see app. 5), displays the allocated rooms within
The Cloud and Heaven. Six creative meeting spaces will be
designed, and in the middle will be a large open flexible working
space. One meditation room, a game room and a privacy rooms
will be created for the desires of the guests. In the centre of TNL
a square F&B outlet will be present. In the right corner, stairs will
lead to the rooftop garden.
Safety and security
Safety & security is one of the five core competencies of WF. This
department gained a lot of experience during the Nuclear
Summit. For TNL the same safety & security policies will apply
and an evacuation plan for the rooftop will be created in order to
ensure fire safety.
Extra detailed information
High-speed Internet service will be implemented to ensure quick
accessibility to all websites. In order to mix technology with
creativity, each creative meeting space will include a Microsoft
Surface Hub (see app. 4). To answer to the request for the
possibility to make phone calls in private, soundproof phone
booths are implemented (see app. 4). Moreover, parking is
available located underneath WF. Furthermore, no phones will be
allowed in Heaven in order to maximize relaxation. However,
safety lockers with phone chargers will be available.

8.4 App. 4: Design

Chapter 4.1 explains the outcome of the market feasibility
research. From this outcome the following aspects will add value
to the concept.
To support these needs and wants, several characteristics will be
implemented into the new BMI:

Expected costs:
Pool table: 500
Mini football table:
250 PlayStation 4:
350
Rubiks cube: 1,60 per cube

Mindfulness & Meditation

Mindfulness Meditation is a form of meditation that is designed
to develop the skill of paying attention to our inner and outer
experiences with acceptance, patience and compassion. This will
take place in the meditation area. It is a useful manner to spend
your break, to gain new positive energy and to ensure you are
fully aware of the present (Meditation Science, 2016). These
short mental and physical activities will provide conference
delegates with energy, relaxation and focus for the remaining
conference day (Sorrells, 2015).
Expected costs:
Is outsourced, thus no costs.
Game room
Games such as a pool table, PlayStations and a mini football
table will be placed in the game room, a separate room is created
to ensure silence for the entrepreneurs and a playful area for
conference delegates during breaks. Also there will be a lounge
area with Rubik cubes and Lego placed on the tables, it has been
proven that using these tools will keep your brain active and
sharp (ChalkStreet, 2015). Therefore Rubik cubes and Lego will
be placed on the tables of creative meeting spaces as well.
(Google, 2016)(Oculus VR, 2016)(Kognitio, 2016)

70

Framery (Soundproof phone booth)

The soundproof phone booth of Framery is the perfect way of
creating a silent space where it is perfect to make important
calls, to participate in videoconferences and to have a quiet
space to focus on demanding tasks. The design of the booth
allows it to be placed even in the middle of a room and thus
boosts realizing an open office. This is a perfect fit for the needs
and wants of the sharing economy users and the delegates. Also,
the booth can be selected in different colours and will therefor
perfectly fit with any interior of the company (Framery
Acoustics, 2016).

Seating options
Creative meetings spaces will be designed in order to boost
creativity and productivity. Think about ball pits and swings.
This will ensure that the target market will get out of their
normal working space and surroundings that will trigger
creative and innovative ideas. These extraordinary seating
options as displayed below, will add value to the creative
environment The Cloud creates. These seating options are
implemented in the Creative meeting spaces and in the open
flexible office spaces.

Imagine being able to focus on the

things you want to achieve.
Imagine being able to communicate
clearly in privacy and silence.
(Framery Acoustics, 2016)
Expected costs:
600 1000

(Designboom, 2016) (Home Designing, 2016)

Expected costs:
To be determined after interior design is made.

Microsoft surface hub

Microsoft surface hub is the advanced technology for the modern
workplace and is designed especially for group work. It helps
enabling group meetings to be more engaging and productive.
These surface hubs are basically, technological canvases where
people can instantly draw on and construct ideas. This enables
people to work together on ideas at the same time, and boosts
brainstorm sessions. The software can be linked on multiple
devices and therefore you have all your information or ideas at
all times. By having this system on large screens you will no
longer need whiteboards, it is an all-in-one system (Microsoft,
2015).
Expected costs:
9325 (Microsoft, 2015)
Costs
All these estimated costs are taken into consideration in the
finances.

8.5 App. 5: Floor plan

The floor plan depicts a basic outline of
how the space will be designed.

8.6 App. 6: Financial Scenario Best/Worst

Best case scenario
Year 0
Year 1
Year 2
Year 3
Year 4
Year 5
1.300.000,00
466.680,00
581.340,00
624.000,00
630.240,00
636.542,40
-

Initial Investments
Revenues
Residual Values
Total Revenue
Operating Costs
Variable costs
Payroll & Benefits
Other occupancy and operating costs
Total Operating expenses
Cashflow
Change in EBITDA
Depreciation & Amortization
EBIT

(1.300.000,00)

466.680,00

581.340,00

624.000,00

630.240,00

636.542,40

10.128,00
57.600,00
56.400,00
124.128,00

14.964,00
57.600,00
63.600,00
136.164,00

16.200,00
57.600,00
63.600,00
137.400,00

16.200,00
57.600,00
63.600,00
137.400,00

16.200,00
57.600,00
63.600,00
137.400,00

(1.300.000,00)
(1.300.000,00)

342.552,00
260.000,00
82.552,00

445.176,00
260.000,00
185.176,00

486.600,00
260.000,00
226.600,00

492.840,00
260.000,00
232.840,00

499.142,40
260.000,00
239.142,40

Change in Net Income

(1.300.000,00)

82.552,00

185.176,00

226.600,00

232.840,00

239.142,40

260.000,00

260.000,00

260.000,00

260.000,00

260.000,00

(1.300.000,00)

342.552,00

445.176,00

486.600,00

492.840,00

499.142,40

3,28%

3,28%

3,28%

3,28%

3,28%

3,28%

(1.300.000,00)
Total
748.937,75

331.689,18

417.389,32

441.760,11

433.236,60

424.862,54

Added Depreciation
Change in Future Cash Flows
WACC
Present Value of Future Cash
Flows
Investment Overview
Present Value of all future cash flows

3,28%

Worst case scenario

Initial Investments
Revenues
Residual Values
Total Revenue
Operating Costs
Variable costs
Payroll & Benefits
Other occupancy and operating costs
Total Operating expenses
Cashflow
Change in EBITDA
Depreciation & Amortization
EBIT
Adjusted Net Income

Year 0
1,300,000.00

Year 1

Year 2

Year 3

Year 4

Year 5

246,720.00

352,080.00

443,400.00

447,834.00

(1,300,000.00)

246,720.00

352,080.00

443,400.00

447,834.00

452,312.34

452,312.34

4,944.00
38,400.00
41,550.00
84,894.00

(1,300,000.00)

161,826.00
260,000.00
(98,174.00)

259,734.00
260,000.00

(266.00)

348,690.00
260,000.00

88,690.00

353,124.00
260,000.00

93,124.00

357,602.34
260,000.00
97,602.34

(1,300,000.00)

(98,174.00)

260,000.00

260,000.00

260,000.00

260,000.00

260,000.00

161,826.00

259,734.00

348,690.00

353,124.00

357,602.34

3.28%
156,694.26

3.28%
243,522.11

3.28%
316,558.43

3.28%
310,417.66

3.28%
304,385.76

(1,300,000.00)

Added Depreciation
Change in Future Cash Flows

(1,300,000.00)

WACC
3.28%
Present Value of Future Cash Flows
Investment Overview
Present Value of all future cash flows

3.28%
(1,300,000.00)
Total

31,578.22

7,896.00
38,400.00
46,050.00
92,346.00

(266.00)

10,260.00
38,400.00
46,050.00
94,710.00

88,690.00

10,260.00
38,400.00
46,050.00
94,710.00

93,124.00

10,260.00
38,400.00
46,050.00
94,710.00

97,602.34

8.7 App. 7: Balance Sheets

Before project
Debit

Credit

Assets

Liabilities

Cash

1.300.000,00 Loan

Property

- Equity

Office utilities

- GL Events

900.000,00

Furniture

- Municipality TH

400.000,00

Total Assets

1.300.000,00

Total Equity and Liabilities

1.300.000,00

After completion
Debit

Credit

Assets

Liabilities

Property
Equipment/Furniture
Office utilities
Cash

Total Assets

1.100.000,00 Loan

163.500,00 Equity
1.000,00 GL Events
16.200,00 Municipality TH

1.280.700,00

Total Equity and Liabilities

880.700,00
400.000,00

1.280.700,00

Specified
project costs
Cash

1.300.000,00

Building &
man- hours
Interior design
IT systems
Office utilities
Furnishing
Marketing
Accessoires
Safety & Security
Unexpected Costs
Total project costs

1.100.000
5.000
13.500
1.000
100.000
3.300
50.000
1.000
10.000
1.283.800

Cash reserves

16.200,00

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10Word Count
Word count report:

The total amount of Words is 10788 excluding appendices.

Word count infographics:
1.416
Word count
total: 12.204