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Business health check TABLE OF CONTENTS INTRODUCTION

   

Added on  2021-02-19

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BUSINESS HEALTHCHECK

TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1LO 1.................................................................................................................................................11.1 Business objective .................................................................................................................11.2 Factors influencing business .................................................................................................21.3 Improvements to business operations ...................................................................................5LO 2 ................................................................................................................................................72.1 Business effectiveness ..........................................................................................................72.2 Business improvement and development plan ......................................................................8LO 3.................................................................................................................................................93.1 Evaluating the current skills of management and Staff.........................................................93.2 Justifying the plans for the development of skills for the management and staff................11CONCLUSION..............................................................................................................................14REFERENCES..............................................................................................................................16

INTRODUCTIONBusiness health check is defined as the process to examine and evaluate various factorswhich influences the goals and objectives of the business and the ways to achieve those goals. Itis very essential for the business to understand the aspects influencing its performance so thatnecessary improvements can be integrated with the business process. The evaluation of internaland external business environment factors as well as growth strategies of business assist tominimise the business associated risks and to encourage success (Wang, 2016). In order to makeoperational activities highly effective there is need to identify the existing skills of managementand staff members. The study will provide a development plan to fill the existing skill gaps in theorganisation and their impact on overall growth and development of the business. The report willprovide a situational and market analysis of Travelodge organisation so that its businessoperations and effectiveness can be understood. It will also discuss the potential growth strategywhich can be used by the company for its expansion in the era of globalisation. Further the reportwill also provide business development plan so that its performance can be improved. LO 11.1 Business objective Travelodge is private organisation providing hospitality services all over UK. The hotelchain has also expanded its operational chain across different countries. Formerly theorganisation was known as Forte Travelodge and was part of the Forte hotels. However, in1980the US Travelodge brand was introduced in Britain. Within 5 years of its launching in Britain itbecame first value hotel brand of UK (Our company, 2019). At present the organisation ownsmore than 560 hotels in UK, Spain and Ireland. The long term goal of the organisation is to growas one of the most value added hospitality chain and to provide unbeatable quality services inbusiness travel and leisure. In short term hotel aims at opening around 250 more hotels so thatdespite Brexit uncertainty and cost pressures it can gain raise its profits against other luxury hotelchains (Another strong year from Travelodge, 2017). The objectives chosen by the organisation are as per the SMART criteria which makesthem highly effective. The objectives are highly specific in terms of business growth and valueadded services in low prices. To achieve these objectives Travelodge has chosen a time frame of10 years and the progress is measured by evaluation of the financial performance and market1

share of the company. These aspect makes objective reliable and beneficial for the long termgrowth of the organisation. 1.2 Factors influencing business In order to gain the competitive advantage it is very essential for the organisation toperform its self evaluation so that it can develop its strategies in a way that it can incorporate itsresources to improve operational efficiency. SWOT analysisStrength:The key strength of the organisation is its affordable prices. Travelodge provides highlyattractive rates for families and business customers. Along with this the special servicesprovided to premium customers, good will and brand image and effective customer loyaltyprograms have also helped organisation to establish its good position in the market. Weakness: The budget limitations make it hard for the Travelodge to deliver broad range ofservices and products as provided by other luxurious hotels of UK. The lack of services such asporter or room services makes hotel rooms less impressive. This aspect is one of the weaknesswhich minimises the customers (Unger, Uriely and Fuchs, 2016). In addition, the policies suchas overbooking, poor customer service are prime weak points of the Travelodge services. Threat: The biggest threat faced by the organisation is competitive threat due to other luxurioushotels which provides very broad range of quality services. Travelodge has very limitedinternational presence thus a growing number of international hotel chains are giving toughcompetition to Travelodge. The economic crisis leading to decline in tourism patterns, terroristattacks, security concerns related to hospitality industry are also the major threats which areexperienced by the organisation. Opportunity: By using the global reputation and budget hotel chain Travelodge can have growthopportunities across different countries. Along with the opportunities of global expansion hotelcan also adopt and promote the green hospitality and ecotourism (Harrington, Chathoth andMarlowe, 2019). This approach will help organisation to enhance its productivity and brandvalue and its public image will be improved to great extent leading to increased profitability. 2

PESTLE ANALYSIS The analysis of external factors which regulate the business operations can be done byfollowing PESTLE model. Political: The political factors such as tourism policy, labour law, and political stability affect thetourism development and thus it directly affects the operational continuity and profitability ofthe organisation. Several government policies such as data security and physical security of thecustomers, apprenticeship programs are required to followed by the company. The securitystrategies of Travelodge is influenced by political factors or the political relations of UK withother countries. Economical:The decline in the economic stability affects the rate of tourists visiting any country.Thus, the hike and decline in the customers can be influenced by the economic factors. Inaddition to this the supply and cost of raw materials is also regulated by price fluctuations andother operational cost (Dzhandzhugazova, Nikolskaya and Bondarenko, 2016). The purchasingdecision of the customers of Travelodge are influenced by economy. Social:The social beliefs, cultural values and lifestyle of the individuals not only affect thepurchasing decision but also influence the staff members. For instance since Travelodgeservices are based on low cost and thus many influential and socially upper class groups mayfind its services as ineffective. Such type of social groups may prefer luxurious hotels.Similarly, the organisation is also required to assure that the social and cultural diversity of staffmembers is also provided equal respect. In order to provide customers highly satisfactoryservice's hotel must also assure that religious, cultural and social beliefs of their clients arefulfilled and respected (Ariffin, Soon and Alam, 2018). Technological: In this era of digital marketing the performance and operation of Travelodge is basedupon several technical advancements. Several operations such as online booking andreservation system, digital marketing, data management by various tools and analysis ofcustomer needs through monitoring tools help Travelodge to continuously improve the qualityof its services and performance of its employees. 3

Legal: For the continuity of the business operations businesses are liable to follow the legalpractices. Travelodge strategies are developed in a way such that they follow their legislationssuch as employment and labour law, fundamental laws and other legislation laws related tofinance and business. The failure to comply with such regulations can lead to legal penalties.Such legal conflicts also have adverse impact on the public image and brand value of the hotel. Environmental: The sustainability has been one of the major concern for the hospitality sector. Forencouraging the concept of sustainability and to minimise the environmental hazards.Travelodge has proper waste management strategies so that hospitality waste generated can bereduced. The hotel is also incorporating the strategies to recycle and reuse its products (Christo,Babu and Prerna, 2016). This strategy is reducing operational cost as well as helping companyto fulfil its corporate social responsibility. Porter's five forceFor the analysis of competitive forces porter's five force model can be used. The modelcan help organisation to assess the competitive forces and to improve strategies for gainingcompetitive advantage. Competition in the industry: Travelodge is experiencing strong competition from local as well as globalorganisations. The competitive hotels such as Britannia, Hilton and Marriott serves good qualityof services and thus low power in the market. Contrary to this the market segments in whichTravelodge has low competition organisation can also have greater power to put high prices forits services. Threats of new entrants: The dominance of organisation is influenced by the new entrants. With the globalisationand technology hospitality service providers are getting huge scope for growth (Li, Qiu and Liu,2016). Thus, Travelodge must also ensure that its popularity and success is not influenced bynew entrants. This can be done by high quality and operational excellence. To overcome thisTravelodge can enter into markets in which its competitors find it hard to enter due to costconsiderations. 4

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