Sample on Business Health Check Assignment
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Added on 2021-02-19
Sample on Business Health Check Assignment
Added on 2021-02-19
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Business Health Check
Table of ContentsINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................41.1 Objectives of business in hospitality sector:.........................................................................41.2 Impact of various factors on the business:............................................................................61.3 Potential improvements in business operations: ..................................................................8D1. Contribution of Ansoff’s Growth Matrix in the improvement of Merlin EntertainmentsPlc:...............................................................................................................................................9TASK 2..........................................................................................................................................102.1 Effectiveness of business....................................................................................................102.2 Plans to improve the business effectiveness......................................................................11M2. Evaluation of how effectiveness of business can contribute to the organisational growth....................................................................................................................................................12D2. Evaluation of development plan which can lead to the improvement in business.............13TASK 3..........................................................................................................................................133.1 Evaluation of the current skills of management and staff...................................................133.2 Plan for developing management and staff skills...............................................................14M3. Analyse of current experience, skills and abilities of management and staff...................16D3. Various methods that can be used to develop the skills of management and staff............16CONCLUSION..............................................................................................................................16REFERENCES..............................................................................................................................17this place is called commercial real estate. ...................................................................................2
INTRODUCTIONIn any organisation that operated in hospitality sector, a business health check should berequired to maintain sustainability in its business operations and processes. This helps increation of clarity in the operations and provides positive environment for adopting changesin the field of hospitality. For better understanding of business health check, MerlinEntertainments Plc is chosen which deals in hotel business and operates in 127 attractions,19 hotels and 7 holiday villages in 27 countries. This report is divided into three task; firsttask describes the understanding of business focuses, its objectives and factors that impacton the business of an organisation. Second task tells about plan development stage forbusiness involving review of business effectiveness whereas third task explains current skillsof management and staff and related matters. This report also describes the plans required todevelopment of requisite skills in the management team and staff of the organisation.TASK 1Brief history of Merlin Entertainments Plc:It is a British-based company headquartered in Poole, Dorset. It is listed on London stockexchange and is a constituent of the FTSE 250 Index. Nick Varney, Andrew Carter and seniormanagement team of Vardon Plc establishes Merlin Entertainments Plc in December 1998 byprocess of management buyout.Merlin Entertainments is the second-largest amusement parkcorporation by annual attendance.1.1Objectives of business in hospitality sector:Long and short-term objectives of the hospitality sector business are as follows: Long-term goals:Long-term objectives includes specific improvements in the competitiveposition, return on investment, employee relationship and productivity and these are intended toachieve over a period of five years or more (Porter and Tanner, 2012). For growing a business,there is a requirement to have some long-term goals; as a result, company may work towardsachievements of such long-term goals. These includes the following:
Maintain the business and increase profitExpand the business and offer other distinctive servicesIncrease shareholders wealthMaintain the business and increase profit:For enhancing Merlin Entertainments Plc’s profits, there is a need to find its key profitdrivers and thereafter, make plans & strategies to enhance the profits from these key profitdrivers without increasing costs at the same time. Another way to enhance the profits andmaintain business operations is to set benchmarking standards for its critical business processes,evaluate them with actual performance of staff, and accordingly take corrective actions.Expand the business and offer other distinctive services:An organisation like Merlin Entertainments Plc should have this goal, because it helps indiversification of business in other places other than domestic location. An organisation in thissector should also provide other distinctive services related to its core business products and/orservices. For expanding the business, there is a strategy called market penetration, which mayassist the management to grow and expand its operations. In this strategy, price of the productsand/or services should be reduce to attract the new customers with lower price. Another strategyto widen the reach is to expand distribution channels for distribution of its products (Inoue andYano, 2012).Increase shareholders wealth:The main goal of an organisation in this industry is to increase the shareholders wealth inlong run by utilising funds in best efficient and effective manner. For achieving this, MerlinEntertainments Plc should set some standards of working for its staff, employees andmanagement to reduce the wastage of its key resources. Preparing budgets may be one strategyto control and supervise the workings of personnel of the company. Short-term goals:A short-term goal is something, which an enterprise wants to do in nearfuture that helps the company to make big change in business and assist in achieving its long-term goals. This goal is set for achieving over period of one year or less, it includes thefollowing:Create publicityOffer customers with best servicesBest use of management skills
Cover initial cost and expensesCreate publicity:The first most goal of any company is to create publicity of its products and/or servicesthat it provides to the potential customers. This will enhance the market demand of company’sproducts, which will lead to increase its sales and ultimately earning high profits. For this,company can do so by giving more advertisements in the newspapers, T.V. and through othermodes. An initial advertisements cost may lead to tremendous publicity of the company amongthe target customers.Offer customers with services:A short-term goal of an organisation working in this industry should include serves itspotential customers by providing best services so that customers may get satisfied.Consequently, Merlin Entertainments Plc can earn higher profits for its stakeholders.Best use of management skills:The important goal of an organisation is to optimum use of its management personnel’sskills. This is necessary for business perspective because by optimum use of skills, anorganisation can achieve its vision, mission and objectives. Cover initial cost and expenses:It should be the short-term goal of any organisation in hospitality sector to recover itsinitial cost and expenses to achieve profits in short run. This is also mandatory for its survival inthe long run because is an organisation is not able to recover its initial cost then it cannot survivein long run (Goins and Pye, 2013).1.2Impact of various factors on the business:In a business environment, there are various factors that have influences on the functioningof the business operations and processes. Some of them factors reside within the organisationand some are outside the organisation, consequently these are categorised as an external andinternal factors based on source of these factors. These factors can be explained in detail byfollowing analysis strategies: SWOT AnalysisPESTLE AnalysisPorter’s five ForcesSWOT Analysis:
Swot analysis is important tool for evaluating the internal and external factors, whichaffect the business of an organisation and for finding the actual strategic position. SWOTanalysis are as follows: StrengthsWeaknessOpportunitiesThreatsMerlinEntertainmentsshall find isinternal factorsthat providesstrengths tothe company.for example,qualifiespersonnel,competitiveadvantagesetc. Weakness are thequalities that preventanorganisationachieve its mission,vision and so more.Organisation shouldidentify those factors,whichinfluencescompanyindowngrading of itsoperations. These external factorsare present in outsideenvironment.Opportunities assist thecompany in achievingits goals and objectivesin long run. Anorganisation should becareful to recogniseopportunities and takebenefits from them forgrowth of business. Threats are those externalfactors that act as barrier insmooth functioning ofbusinessoperations.Organisation must requireidentifying these threatsand accordingly takingcorrective measure forefficient functioning ofbusiness.PESTLE Analysis:PESTLE analysis is an analytical tool, which assist the organisation in making strategicplanning. This is required to conduct for obtaining knowledge of external factors affects thebusiness operations. It is to be done in following manner:Political factors: These are the factors, which is brought by the political institutions thatcreates pressure on the organisation by providing various restrictions or initiatives. Forexample, Government policies, government term and change, grants and political trendsetc. Economic factors:These factors are key determinants of economic performance of thecompany. economic factors includes exchange rate, inflation rates, disposable income ofconsumers and so on, any change in these economic factors lead to positive or negativeimpact on the business functioning of an organisation working in hospitality sector(Abdelhak, Grostick and Hanken, 2014).
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