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Business Health Check Report and Analysis

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Added on  2020/10/05

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This assignment is a comprehensive report on business health check, which includes various tools such as Porter's five force assessment, PESTLE analysis, SWOT analysis, and evaluation of current skills of manpower. The report aims to assist in determining the current position of a hotel (Hotel Crowne Plaza) in the market and formulating effective strategies and policies for successful attainment of goals and objectives. The report also highlights the importance of employee engagement and performance in improving profitability.

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Business Health Check

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Table of Contents
.........................................................................................................................................................2
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Analysis of business objectives.............................................................................................3
1.2 Factors that influence on the business...................................................................................4
1.3 Identification of potential improvements to business organisation and operation................6
TASK 2............................................................................................................................................8
2.1 Revaluation of business effectiveness...................................................................................8
2.2 Development of plans to improve business, justifying their value.......................................8
TASK 3............................................................................................................................................9
3.1 Evaluation of current skills of management and staff...........................................................9
3.2 Devise and justify plans for development of skills for staff and management..................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12
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INTRODUCTION
Business Health Check is identified as a best tool for company that assists in determining
and reviewing potential issues of an enterprise. It refers as the present comprehensive assessment
of essential business elements (Abdelhak, Grostick and Hanken, 2014). This facilitates firm in
checking its viability so as to analyse market position. This report is based on Crowne Plaza
which is a renowned multinational chain of upscale hotels located in United Kingdom. The
assignment covers assessment of business objectives and components that influence it as well as
identification of potential improvements in operations and activities of firm. Business plan is
framed in order to review effectiveness as well as current skills of management & staff is
evaluated.
TASK 1
1.1 Analysis of business objectives
Overview of company:
Crowne Plaza is one of the largest multinational hotel chain headquartered in United
Kingdom. It was established in year 1983 in Rockville, Maryland and now offer its services all
across the globe. The firm provides its services to conventions market, meetings as well as
business travellers. It is a formal part of Inter Continental Hotel Group which includes Holiday
Inn and Intercontinental Hotels & Resorts. The company perform its operations in 52 countries
with over 400 chains, usually situated in areas like near major airports, city centers, coastal
towns or resorts.
Objectives of company:
Objectives are defined as the basic tools or ways that governs all planning activities and
strategies. It serves as basis in terms of assessing performance and framing policies. In order to
ensure growth of business organisation, it is necessary to set short as well as long term goals. In
order to attain long term goals of business, short term goals are the vital step that leads towards
it. The main objectives of Hotel Crowne plaza are:
To become a global leader by satisfying large number of customers.
To maintain large base of loyal customers by administering them high quality services as
well as unforgettable experience (Brown and et. al., 2013).
To bring constant innovation in our services by adding new features in it on regular basis.
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To increase revenue and market share of firm to 30% by 2023.
SMART objectives of Crowne plaza:
It is identified as the clear aims & objectives associated with achievable goals. For Hotel
Crowne Plaza, SMART objectives can be developed as:
Specific: Provide training for the purpose of improving skills of workforce related to
technology and add some value to services so that customers gets completely satisfied.
Measurable: Above defined objectives can be measured on the basis of satisfaction level
of customers acknowledge by its services.
Attainable: Providing good quality services with innovative technology and gain high
customer loyalty are achievable objective of hotel (Chapman, 2012).
Realistic: Plan and strategies formulated by Hotel Crowne Plaza are relevant to attain its
objectives. Introduction of new services by the use of digital technology is the realistic objective
of firm.
Time bound: Maximize revenue and market share of firm to 30% by 2023 is one of the
time bound objective of company.
1.2 Factors that influence on the business
Several forces are there which impacts on operations and activities of business enterprise
in negative or positive way. These variables are exist in internal and external surroundings of
business. In order to properly assess these factors, a tool is applied by administrator of Hotel
Crowne Plaza which are defined as follows:
PESTLE Analysis:
Political: The basic need to success is political stability. Firm has flexible legislative
framework, tax incentives for investors, political motivation for globalization, good brand image
and reputation in hospitality industry. Hotel Crowne Plaza actively engages in lobbying so as to
lower down the negative impact of political factors.
Economic: Macroeconomic situation and other factors affect business of hotel in adverse
way. Inflation and high exchange rates are the variables that impacts on performance of Crowne
Plaza in negative manner. Stagnation in wages and growing income inequality are the factors
that declines ability of people to travel & stay in hotels (Grasso and et. al., 2017).
Social: Strong ethics of firm along with some demographic variables are such factors that
affects operations, activities and performance of Hotel Crowne Plaza. Since, the company targets

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premium customer group so, if any fluctuation takes place in economy, the sales of hotel are not
get influenced by it.
Technological: Technology made huge impact on business of Hotel Crowne Plaza in
form of providing online rental services like Airbnb, that lets private peoples homes or rent
rooms directly to travellers. The major threat that it poses to traditional hotel is avoidance of
some taxes and regulations which shows that they have lower operating costs (Hayden, 2015).
Legal: Health and safety laws, Consumer legislation etc. are some legal variables that
highly affects business functioning. Complying with such laws assists Hotel Crowne Plaza in
running its operations smoothly and effectively.
Environmental: Currently, Fuel prices are the major environmental variable that could
disrupt business of Hotel Crowne Plaza. Sudden increase in costs of fuel would be the potential
threat for company while falling prices leads to decline in travel costs and simultaneously
increase demand for rooms.
Porter's Five Forces model
It is an analytical tool that facilitates firm in evaluating its competitiveness as well as in
recognizing the improvement areas that supports company in increasing its profitability. It
consist of five forces which are mentioned below:
Threat of new entrants:
Threat of new entrant is low for hotel Crowne Plaza as highly rated hotels in industry are
dominated by few rivals. Therefore, it is hard for new entrants to enter in luxury hotel market as
it requires large capital requirement (Ikeda and et. al., 2011).
Bargaining power of suppliers:
In hotel industry, bargaining power of suppliers is weak. As Hotel Crowne Plaza provides
services, it needs a lot of workforce to run its business and administer high quality services to
customers. So, they are the main supplier incharge of day to day operations.
Bargaining power of buyers:
When competitors are more, bargaining power of customers are relatively high. As there
are many rivals of Hotel Crowne Plaza, power of buyers will be high as they are able to compare
among different hotels. In order to attract large group of customers, firm use different types of
pricing and promotional strategies.
Threats of substitutes:
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Threat from substitute is high as there are various competitors of Hotel Crowne Plaza are
available that administers standard services at reasonable prices. So, as there are various
alternatives available to customers, it can be considered that there is high substitute threat.
Competitive Rivalry:
Competitors rivalry can lead to aggressive promotion and pricing strategy that helps in
attracting more number of customers. For Crowne Plaza, competitive rivalry is high as switching
cost for guests is low so, they can change hotel anytime (Kinderman, 2016).
SWOT Analysis:
Strengths Weaknesses
Strong global presence and worldwide
known brand.
Strong reputation for delivering high
quality customer service.
Known for its adaptability to changing
socio economic trends.
Take relatively long time to pay back
liabilities.
Highly leveraged therefore, less
resilience and increased risk.
Operational inconsistency.
Opportunities Threats
Proper distribution of sales resources.
Decrease debt amount in relation to
equity.
Growing foreign market.
Global recession that leads to decline in
lodging demand.
Uncontrollable events like terrorist
attacks, natural disasters etc.
Political instability.
1.3 Identification of potential improvements to business organisation and operation
In every business organisation, there are some areas available which needs
improvements. Sustainable development and advancement significantly based on enhancing the
slacking sections and areas that are remain maintained a strategic distance from administration
point of view (Kitchin and Dodge, 2011). It mainly connected with breaking down the current
marketing procedures and plans
Ansoff growth matrix:
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This assessment tool assist in measuring the development and growth techniques to
penetrate the current market and build up the market area of association. Following key
components are assessed in this matrix which are characterized in Crowne Plaza unique
circumstances:
Ansoff growth matrix
It is identify as an effective evaluation technicians supports to measure the growth
strategies in order to penetrate the present market and create the market place of organisation.
Following key components are evaluated under such matrix which are analysed in Hotel Crowne
Plaza context;
Market development: There are different opportunities or chances are present in front of
Hotel Crowne Plaza to create the present marketplace in different foods and services (Lin,
Verizon Patent and Licensing Inc, 2012). By adapting new ideas and methods it is tried to
assistance the present market of business organisation.
Diversification: Hotel Crowne Plaza is planning and designing to innovating products
and services in an effective manner. In this hotel differentiate their all products and services as
per the needs and requirement of customers. Thus it will support in the future growth and
development. It is important and foremost for the hotel industry to maximise their profit and
sales by providing effective and affordable services and products to the customers as per their
choice and preferences. Thus, it assist the business entity to maximise their development and
progress.
Market penetration: Sell a an present product and services to a unique marketplace,
existing own goods range in a various manner. It is also important for the company to produce
their products and services to the customers at affordable price. It benefited to the organisation to
maximise their sales and profitability within a predetermined period of time. Sponsoring global
football club as Barcelona, which will enhance the marketing as well as loyalty for our trade
name (Lluch, 2011).
Product development: It is another important and essential Using Helicopters for
transporting special clients from airport to the specific hotel. Hosting Monuments Display for 1-3
weeks, with particular serves, in Hotel Crowne Plaza across the globe. Dishes line and Plates and
production; to increase the cost and innovates our own plates.

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TASK 2
2.1 Revaluation of business effectiveness
Business effectiveness refers to enhancing performance of firm that leads it towards high
success and growth. In order to evaluate performance of business, some potential areas are
evaluated by administrators of Hotel Crowne Plaza. Different elements are monitored so that
business operations can be performed in better manner. Finance, marketing, sales, services,
business records and image etc. are the aspects that are analysed by firm.
Sales and marketing: This is consider as one of the most effective approach in context of
promoting goods and services in the market place. It is primarily important for every
organization to determine actual needs and wants of target audience so that company can develop
product accordingly (Thorat and Neuman, 2012). Today there are various promotional tools that
are highly effective and needs to be critically taken into consideration. For example: Social
Media and advertisement are two main promotional channel through which Hotel Crowne Plaza
can advertise about its services.
Finance: It is another core element that play key role in measuring the overall
performance of the company. From the last annual record it has been figure out that £604009
revenue was recorded in last financial year which is near about 15% increased from the revenue
of 2016.
2.2 Development of plans to improve business, justifying their value
Development and growth of firm highly relies on imaginative technologies, ideas and
approaches. By executing appropriate plans and strategies, better assessment methods can be
developed for measuring performance of company. It is essential for Hotel Crowne Plaza to
build up strategies that helps in increasing efficiency and performance of company. It is essential
for hotel to develop business plan by considering various aspects such as financial management,
sales, profitability, information handling, performance management etc.
Future business plan:
For developing effective business plan, Hotel Crowne Plaza needs to consider various
aspects. Financial resource management, target sales group and team management are the
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variables that are structured by firm in proper manner (West and Dawson, 2012). By 2023,
organisation wants to increase its market share and revenues by 30%. For this, firm wants to
improve its services by introducing technology and innovation in its operations. This will help
hotel in attracting large group of customers and gaining their loyalty.
Sales and Marketing:
Managers of Hotel Crowne Plaza are more emphasized towards improving its services so
that they enable to provide valuable experience to their guests. Development of appropriate plans
and strategies related to its services and marketing helps company in improving its sales and
profits (Wu and et. al., 2014).
Target:
As per the annual report of Hotel Crowne Plaza, firm is seeking to invest money on
expanding its business in other countries. This will help in expanding operations and activities of
hotel in other new nations and also assists firm in maximizing its market share.
Financial Management:
For managing financial resources of Hotel Crowne Plaza, there are particular provisions
which are assigned by company. Provisions and funds are categorised as reserves for investing in
development and innovations, funds for research and development as well as funds for service
development.
Performance Monitoring:
It is required by manager of Hotel Crowne Plaza to evaluate and monitor performance of
firm on regular basis so that improvements can be made if required. By adhering various laws
and regulations, firm creates value for guests. They set a standard criteria for its services and
measure it with actual (Chapman, 2012).
TASK 3
3.1 Evaluation of current skills of management and staff
Effective management of team is one of the effective way that helps in managing
operations effectively and development of better strategies and plans. There are some core values
of company that defines about its vision, mission and objectives. In Hotel Crowne plaza, skills
and competencies are evaluated and measured by assessing performance of workforce. Proper
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management and better quality control are the two fundamental aspects on which growth and
development of firm rely.
Current skills and Team administration
Some measurable and technical aspects are needs to be considered in subject to determine
core values and its impact on global brands that are overseen at everyday premise. Performance
management is one of the main objective of company that is done only by evaluating current
skills of both manpower as well as management. Effective team evaluation needs to be done by
manager of Hotel Crowne Plaza for effective team performance. While developing training and
development plans, quality standards and measurement aspects are considered by manager of
hotel (Hayden, 2015).
3.2 Devise and justify plans for development of skills for staff and management
There are some basic components such as innovative approach, new developments,
artificial intelligence, advanced technology etc. that needs to be considered by Hotel Crowne
Plaza in its future skills development plan. Firm has its individual management and operational
team which are centred around emerging capacity of company to develop plans and formulate
strategies. Creation of effective skills development plan helps company in increasing efficiency
of its manpower. The firm is mainly associated with deploying such plans that provides effective
development and growth. In order to enhance skills of management and staff, managers of Hotel
Crowne Plaza develop proper training sessions.
For formulating effective training programme, administrators of hotel are require to
determine current skills of manpower. This makes it easy for them to develop suitable learning
sessions that allows them to increase their competencies and potential. Skills development
increases efficiency and performance of both employees as well as firm (Ikeda, 2014). This will
assist in maximizing motivational level of manpower and enables them to perform their duties in
well manner. By this, Hotel Crowne Plaza enables to offer high quality services to their guests
and satisfy them in more better manner.
CONCLUSION
As per the above mentioned report, it has been concluded that business health check is an
essential aspect that assists in determining current position of Hotel in market. Porter's five force
assessment, PESTLE Analysis, SWOT etc. are the various tools that helps firm in formulating

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effective strategies and policies that leads it towards successful attainment of goals and
objectives. Evaluation of current skills of manpower as well as staff helps in improving
performance and profitability of company.
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REFERENCES
Books and journal
Abdelhak, M., Grostick, S. and Hanken, M. A., 2014. Health Information-E-Book: Management
of a Strategic Resource. Elsevier Health Sciences.
Brown, M.W., and et. al., International Business Machines Corp, 2011. Providing consumers
with incentives for healthy eating habits. U.S. Patent 8,078,492.
Chapman, L. S., 2012. Meta-evaluation of worksite health promotion economic return studies:
2012 update. American Journal of Health Promotion. 26(4). pp.1-12.
Grasso, S., and et. al., 2017. The effect of health claim information disclosure on the sensory
characteristics of plant sterol-enriched turkey as assessed using the Check-All-That-
Apply (CATA) methodology. Food quality and preference. 57. pp.69-78.
Hayden, E. C., 2015. Racial bias haunts NIH grants. Nature. 527.
Ikeda, N., and et. al., 2011. What has made the population of Japan healthy?. The Lancet.
378(9796). pp.1094-1105.
Kinderman, D., 2016. Time for a reality check: Is business willing to support a smart mix of
complementary regulation in private governance?. Policy and Society. 35(1). pp.29-42.
Kitchin, R. and Dodge, M., 2011. Code/space: Software and everyday life. Mit Press.
Lin, Z., Verizon Patent and Licensing Inc, 2012. Messaging engine health check. U.S. Patent
8,284,052.
Lluch, M., 2011. Healthcare professionals’ organisational barriers to health information
technologies—A literature review. International journal of medical informatics. 80(12).
pp.849-862.
Thorat, S. and Neuman, K. S., 2012. Blocked by caste: economic discrimination in modern
India. Oxford University Press.
West, M. and Dawson, J., 2012. Employee engagement and NHS performance. London: King's
Fund.
Wu, E. H. K., and et. al., 2014. Cross-platform mobile personal health assistant APP
development for health check. In Advanced technologies, embedded and multimedia for
human-centric computing (pp. 1257-1268). Springer, Dordrecht.
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