Omani Royals Limited: Innovation In Ice Skating Facility Expansion Essay.

Brief Background and Introduction

The organization which is taken up for this report is Omani Royals Limited. The company has made innovation in a new product which includes the ice skating business. There are many procedures that are taken up by the organization which insures that the organization follows the statutory and legislative requirement. The company wants to expand themselves in this profile and thereby it will help the company to grow in their business and to use the various sources for arrangement of capital which is required for expansion (Kivilahti, 2016). 

The facility of ice skating will be provided to all the people living in different parts of the Country and thus this will attract many people to invest in the product. The company has the facility in arranging skating competition in the Country on the basis of rental. The company can take the facility to train the people including the young and the old in exchange of fees (Aho and Uden, 2016). This skating facility will be given for cinematographic purpose and thus it will contribute to the revenue of the organization.

The company expects to innovate and open the facility in Muscat and it will be estimated around 1200 square meter rink and thus the company expects an increase their profit of around OMR 105000.00. The overall revenue is expected to grow at a constant rate of 20% over the next 10 years period after which the skating rink will have to be reconstructed and overhauled completely with fresh investment (Ohtonen,2014) 

The main aim of the company is to capture the market and thus it will enable them to maximize shareholders earnings and wealth. The company is mainly focused to attract the customers of the group of youth since they are interested to participate in various sports and skating competitions. The companies have made plans so as to provide concession of plans to those who are poor so that they can learn the art of skating and this is done so as to increase the economy of the Company (Butler et al.2015). Considering the huge population of the youth in the country the company’s vision includes encouraging the children and youth of the country to actively participate in the outdoor sports and other activities. Providing the people with highest standards of ice skating facilities in the country is one of the top priorities mentioned in the mission and visions statement of the company.

Innovation of Product Or Services

The company will be able to target the youth as well as the children so as to attract the attention and help them play the sport of ice skating. It is a very attractive sport and outdoor event thus, attracting the youth and children would not be very difficult. The company aims to provide world class skating rink which will provide value proposition of the company (Egresi, 2015). The Country of Qurum will thus provide a world class skating facility in Muscat which will attract the attention of the youth and children to the skating rink. 

The political scenario is very stable and therefore the Country gives attention to tourism. Therefore policies and rules are favorable for opening sporting centers like ice-skating (Rinehart,  2013).

The economy of the Country plays a major role for the success of the Company. There are many factors which is vital and is favorable for the industry.

The social factors are the population age, health consciousness of the population. The population in Oman is youthful and is found engaging in the adventure and ice sports. There the ice sports industry is expected to grow in the near future (Heinonen, 2013).

The company will be able to use the equipment which will enable to build top quality ice skating rink in Muscat for providing best training facilities to the budding sport enthusiasts. 

The company will be appointing Chief Financial Officer who will be looking after the management and helps in the efficiency of the company. The company will have the management team who will look after the affairs of the company (Mälkki,2016).The management  of the company will be appointing trainers in the skating rink and the employees will be appointed for that requirement.

The company has started the business operation which requires incurring the expenses and it was assumed on the basis of market condition and requirement of preparation of ice skating rink and on doing business in the country (Massachusetts Gaming Commission, 2014).

The area of land with 1500 square meter will be taken on an annual lease of OMR 40000.00 from the Government of Oman. The annual lease will increase by 10% annually. The equipment required for the development and maintenance of ice skating rink in 1200 square meter would cost the company around OMR 180000.00. The company will have to incur preliminary expenditure of OMR 15000.00 to complete all procedures necessary for the registration and other legislative purposes to start operation of the company in 2018. The depreciation charge that the company will be allowed as expenditures for tax purposes will be OMR 18000 per month. The tax rate applicable to the company on the amount of net profit is 30%.   

The company has maintained a ratio of 3:1in the equity and debt market company. The founder’s contribution would be 75% of OMR 420000.00 and loan amount obtained initially is 25% of OMR 140000.00.

References 

Aho, A.M. and Uden, L., 2016, July. On Demand Innovative Course for Regional Development. In Proceedings of the The 11th International Knowledge Management in Organizations Conference on The changing face of Knowledge Management Impacting Society (p. 46). ACM.

Butler, P., Lavelle, J., Gunnigle, P. and O’Sullivan, M., 2015. Skating on thin ICE? A critical evaluation of a decade of research on the British Information and Consultation Regulations (2004). Economic and Industrial Democracy, p.0143831X15610205.

Egresi, I., 2015. Tourism and shopping malls in Istanbul, Turkey: A great synergy”. In Annual Conference of the Turkish Association of Geographers, Ankara, Turkey, May (pp. 21-23).

Hartley, W.G., 2017. The Nauvoo Exodus and Crossing the Ice Myths. Journal of Mormon History, 43(1), pp.30-58.

Heinonen, T., 2013. Development project for sports facility maintenance: Creating a web service–www. liikuntapaikkojenhoito. fi.

Kivilahti, N., 2016. Youth Ice Hockey Development in Qatar.

Lehtinen, A., 2014. Market research: case HH Technology's plans to enter the Swedish market.

Mälkki, K., 2016. Figure skating coaching in the contemporary sport culture: Finnish figure skating coaches' perceptions about their work.

Massachusetts Gaming Commission, 2014. In the Matter of: Application of Blue Tarp reDevelopment, LLC for a License to Operate a Category 1 Gaming Establishment In Region B.

Ohtonen, K., 2014. Developing intrinsic motivation in junior ice hockey.

Philpot, D.K., 2017. Focalizing Structures. In Character Focalization in Children’s Novels (pp. 45-93). Palgrave Macmillan UK.

Rinehart, R.E., 2013. Inline skating in contemporary sport: An examination of its growth and development. Paul Cowan