(Solution) Business Health Check Assignment

Business Health Check

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
1.1 Explain the purpose of the business.......................................................................................1
1.2 Factors that are impacting on the business............................................................................1
1.3 Discuss the potential improvements for the business............................................................6
M1 Explain the strategies to achieve the organizational objectives............................................6
D1 Discuss the elements of model contributing in improvement of the business.......................7
2.1 Evaluate the effectiveness of the business.............................................................................7
2.2 Business Plan to improve the business..................................................................................8
3.1 Evaluating the Current skills of management and staff.........................................................9
3.2 Justifying the plan for the development of skills for managing the staff............................11
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
The term business health check is defined to as highlighting some of the areas of company
which could be treated to as potential weakness and then recommending the ways in which it
could be improved or supported. This is the best way to get the information of company about
their development pathway and checking the report which is collected from external sources. The
Business Health Check is based on the Inter-Continental Hotel Group and its business
environment. This report discusses the company's business environment. This report also covers
areas that need to be developed to improve the company's business. This report explains how to
set up a business status area to improve the Inter-Continental Hotel Group. This will be prepared
in the form of a short report that analyses the skills and management capabilities of the
company's employees. It shows how and with what technique this process works. The overall
task will focus on business reviews of the Inter-Continental Hotel Group, as shown in the case
study.
1.1 Explain the purpose of the business
Intercontinental Hotel Groups is a universal inn organization that means to make incredible
lodgings that visitors will like. Intercontinental Hotel Group, otherwise called IHG, has a greater
number of rooms under the pennant than other lodging gatherings. IHG has developed from an
exceptionally little organization to a huge organization managing different marked lodgings. IHG
has in excess of 650,000 rooms in excess of 4,400 inns in 100 nations, and the complete time
visitors spend on IHG locales is in excess of 130 million every year. With a clear priority vision,
IHG's fundamental objective is to make an incredible visitor inn love, with everything
concentrated on visitors and representatives (Allen, 2015). They work the lodging in three
distinct ways, for instance as a franchisor, director, and as his very own base. They likewise
work seven driving lodging brands including InterContinental, Crowne Plaza, Indigo Hotels,
Holiday Inn, Holiday Inn Express, Staybridge Suites, and Candlewood Suites. They lead the
largest loyalty program in the world for hotels, Priority Club Awards, with 48 million members
worldwide.
1.2 Factors that are impacting on the business
Pestle analysis
 Political elements affecting the Intercontinental Hotels Group Plc - Political elements
assume a significant job in deciding the elements that can influence the long haul return
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of Intercontinental Hotels Group Plc in a nation or market. Intercontinental Hotels Group
Plc works in excess of twelve nations in the movement and recreation division and is
looked with different sorts of political conditions and political dangers in UK. The
political soundness and significance of movement and relaxation segment inside nation's
economy will have positive effect inside IHG. While increasing level of corruption or
crime into country will be not attracting visitors within UK which means that this is
negative impact on IHG.
 Economic Factors - Large scale ecological factors, for example, expansion, reserve
funds rates, loan fees, trade rates and financial cycles decide total interest and absolute
interest in the economy. While miniaturized scale natural factors, for example, rivalry
standards influence the organization's upper hand. Intercontinental Hotels Group Plc can
utilize the nation's financial development factors, for example, development rates,
swelling and industry execution. It could be added that in the increased GDP service
sector including that of hospitality is having the largest contribution which is 0.7%.
While in could also be included that there are frequent changes of foreign exchange rates
which will be negatively impacting IHG.
 Social factors - Network culture and the manner in which things are done impacts
authoritative culture in a situation. General convictions and frames of mind assume a
significant job in how the Intercontinental Hotels Group Plc vendors comprehend clients
in specific markets and how they structure promoting messages for movement and get-
away clients.
 Technological factors affecting the Intercontinental Hotels Group Plc - Innovation
are quickly wrecking different enterprises. The transportation business is a genuine guide
to outline this. In the previous 5 years, the industry has changed in all respects quickly
without built up players having the chance to conquer these changes. The taxi business is
as of now overwhelmed by players like Uber and Lyft. The car business is moving
quickly towards mechanization, driven by innovation organizations, for example, Google
and Manufacturing.
 Environmental factors - Various markets have diverse natural gauges or benchmarks
that can influence the productivity of organizations in this market (Bailey and Chorniy,
2016). Indeed, even in specific nations, nations regularly have diverse ecological laws
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and commitments. For instance, in the US, Texas and Florida, there are different
statements of duty regarding mishaps or natural debacles. Likewise, numerous European
nations give tax cuts to organizations dynamic in the sustainable power source area. Legal factors - In various nations, legitimate structures and foundations are not
sufficiently able to ensure the protected innovation privileges of an association.
Organizations should cautiously consider before entering the market all things
considered, in light of the fact that this can prompt robbery of the association's mystery
sauce and hence the general upper hand.
Porter Five service analysts
 Threats of new entrants - New Lodge members develop, open new roads, and put
weight on InterContinental Hotels Group PLC through lower evaluating techniques, cost
decrease, and new offers. They should confront every one of these difficulties and
assemble viable hindrances to keep up its upper hand.
 Bargaining power of suppliers - Most organizations in the cabin business take crude
materials from a few providers. Predominant sellers can diminish the edges that
InterContinental Hotels Group PLC can accomplish available. Elite specialist
organizations utilize their exchange abilities to get more expensive rates from timber
organizations. The general effect of higher contract quality on providers is that the
general gainfulness of lodging development is decreased.
 Bargaining power of buyers - Purchasers are frequently extremely requesting. They
need to purchase the best offer accessible by paying a base cost. This has a proceeding
with negative effect on the productivity of the InterContinental Hotels Group. The littler
and more grounded the client base of InterContinental Hotels Group PLC, the higher the
market quality of clients and their capacity to search for expanded limits and offers.
 Threats of substitute products or services - At the point when new items or
administrations react in various approaches to comparable client needs, the benefit of the
business will endure. For instance, administrations, for example, Dropbox and Google
Drive supplant equipment stockpiling gadgets. The danger of substitute items or high
substitution administrations in the event that they offer an incentive that is plainly unique
in relation to the present business contributions.
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 Rivalry among the existing competitors - At the point when rivalry between players in
an industry is tight, costs are brought down and in general industry productivity
diminishes. Inter-Continental Hotels Group PLC works in a profoundly focused industry.
This challenge influences the generally long haul productivity of the association.
SWOT analysis
Strengths
 They have profoundly gifted workforce through effective preparing and preparing
programs. Inter-Continental Hotels Group PLC puts tremendous assets in the instruction
and preparing of its workers to make exceptionally high caliber, yet additionally inspire
representatives to accomplish more.
 Operational automation has resulted in consistent product quality at Inter-Continental
Hotels Group PLC, enabling companies to grow and decline in accordance with market
demand conditions.
 Outstanding performance in new markets - Inter-Continental Hotels Group PLC has
extensive experience in opening up new markets and their success (Check, 2018). This
enlargement has helped organizations take advantage of new revenue sources and
diversify business cycle risks in the markets they operate.
Weaknesses
 Day stockpiling is high contrasted with contenders, which implies that organizations will
gather progressively funding to put resources into channels. This could influence the long
haul development of Inter-Continental Hotels Group PLC
 They need greater interest in new innovation. With the size of extension and the different
geological region where organizations mean to create, Inter-Continental Hotels Group
PLC must put more cash in innovation to incorporate procedures all through the world.
At present, innovation speculation isn't in accordance with the organization's vision.
 The net profitability and share ratio of Inter-Continental Hotels Group PLC is below the
industry average.
Opportunities
 Market improvement will decrease the advantages of contenders and permit
InterContinental Hotels Group PLC to expand its intensity with respect to different
contenders.
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 Decreasing transportation costs in view of lower transportation expenses can likewise
diminish the expenses of InterContinental Hotels Group PLC items. Along these lines,
organizations can build gainfulness or move advantages to clients to pick up piece of the
pie.
 With this new innovation, InterContinental Hotels Group PLC can seek after various
estimating techniques in new markets. This enables the organization to hold steadfast
clients with fantastic administration and draw in new clients through worth based offers.
Threats
 Sources of commodities can jeopardize the profitability of the InterContinental Hotels
Group. The deficiency of talented work in certain worldwide markets compromises the
enduring development of InterContinental Hotels Group PLC's benefits in these business
sectors. Interest for top of the line items is occasional and each occasion that is preposterous
during the pinnacle season can influence the organization's productivity in the short to
medium term.
Ansoff’s Matrix
Igor Ansoff displayed the Ansoff's network which concentrated on the present
circumstance of the organization and its items and markets. This network takes a gander at
different sorts of development through existing items and markets, just as new items and
markets. In view of this mix, Inter-Continental Hotel Group Hotels infiltrates different markets
by offering a wide scope of items and administrations at reasonable costs. Items incorporate
honors and advantages and offices gave in all lodgings. After the section of the organization, the
organization started to grow new offices and improve advertise execution. With the expanding
prominence and selection of a huge number of clients, Inter-Continental Hotel Group has an
incredible chance to further infiltrate existing markets, reach more up to date advertises, and
build up its items for new and existing markets. As a perfect head in cordiality, Inter-Continental
Hotel Group has made real acquisitions under its image. These incorporate Homewood Suites,
Promus Hotel Corporation and numerous others. In 2007, the organization ended up one of the
biggest inn organizations on the planet, with around 3,500 inns in 80 nations. To the extent
contenders, Starwood, Marriot, Sheraton and Wyndhan are concerned, rivalry is troublesome.
The organization's fundamental advertising methodology is to separate itself from its
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rivals for outstanding client administration. This is likewise part of a promoting system to
fabricate a successful homestead picture and improve client correspondence. At long last, Inter
Continental Hotel Group has propelled two fundamental advertising projects to pull in more
clients and hold their current clients. These projects are a visitor devotion program and Inter
Continental Hotel Group participation rights. With these projects, steadfast clients are over and
again compensated for utilizing lodging administrations. The principle highlights of the program
incorporate limits and grants, collected focuses and miles, VIP care and that's only the tip of the
iceberg. This is Inter Continental Hotel Group Hotels' principle advertising methodology.
Presently we will talk about the market for inn administrations for promoting plans in more
detail.
1.3 Discuss the potential improvements for the business.
 The entrance to the market - The organization's development system must be
connected if the organization accepts that the quality, brand quality, conveyance or
different parts of the item or administration are adequate to pick up piece of the pie from
current contenders without making changes to items and advertising, among others. also,
correspondence plan.
 Product development - This business development technique centers around item
advancement. It accentuates that the quality of the brand can be moved from the
organization to different items than those as of now available. The organization
endeavours to extend its item range and offer new items to similar clients in a similar
market that are as of now working.
For instance, organizations that sell cleanser may begin selling cleanser in a similar market, at
that point scent and different toiletries.
 Market development - Entering new markets is a development technique for
organizations where organizations are attempting to put their items in different markets.
For instance, the cleanser organization referenced above just works in two nations, so it attempts
to work in a few different nations by extending its dissemination system or sending out its items
to different nations, or simply attempting to achieve other age gatherings.
 Diversification - Enhancement emerges when an organization attempts to develop by
making new items for new markets. We should expect that our cleanser organizations are
merged in the grown-up cleanser advertise, however at this point need to sell available
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for youngsters' items or available for infants. In addition to the fact that you need to
change a few items, flavors, smells, and so forth., yet additionally bundling, names and
different highlights to cause this new item to develop in another market.
M1 Explain the strategies to achieve the organizational objectives
Inter-Continental Hotel focus on finding ways to accelerate their established and successful
strategies and accelerate growth. The strategic model establishes approach and is fundamental to
their efforts to achieve high-quality, long-term growth and cash flow earnings. Through Their
strategic model, they focus on building value by building a preferred brand, offering superior bid
owners using scale, and earning revenue through the cheapest direct channels. They focus on a
portfolio of focuses that, coupled with the application of strategy disciplines and their
commitment to responsible work, results in better return on shareholders (Visser, 2017.). In an
increasingly competitive environment, IHG is in a good position to accelerate their core business
growth and maximize revenue from new initiatives such as adding new brands to portfolio.
D1 Discuss the elements of model contributing in improvement of the business
Market Penetration - With this strategy, companies conquer the current market for current
customers by selling existing products or services more effectively by promoting products,
repositioning brands, etc..
Market development - With this strategy, companies bring current products to new markets by
making them accessible to an entirely new audience.
Product Development - With this strategy, the company launches new existing products.
Examples of product development are when existing models are updated or replaced and then
sold to existing customers (Hesse-Biber, 2016). Both the technology and the automotive industry
often use product development.
Diversification - With this strategy, the company introduces new products to attract new
customers.
Ansoff matrix is useful for companies that compete only based on market movements.
However, the model does not consider all the elements that can affect the market. Useful
Strategies for Growth As Ward said, the weakness of the Ansof matrix refers to the fact that
external forces from markets that can manage markets independently are not taken into account.
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2.1 Evaluate the effectiveness of the business
 Begins with great contracting - The quality endures when new workers don't meet the
desires for the inn director and keep on performing inadequately notwithstanding
rehashed disciplinary activities. Quality endures when wasteful directors get jobs that are
past their range (Maroukis, 2018). Between Continental Hotel have powerful quality
administration begins with the enrollment procedure, which must incorporate exacting
rules for procuring administrators to screen references and tests of new workers for a
specific timeframe.
 Acknowledge all workers - Inter-Continental Hotel's representatives are relied upon to
give outstanding client administration. From the workers who orchestrate the rooms,
front work area, bolster staff to directors, staff must keep on being prepared and thought
about to recall their spells. Quality administrators who adequately join client audits in
their ordinary surveys. Singular representatives are surveyed and improved dependent on
their work. Successful quality administration implies that a group cooperates to keep up
and improve the nature of their administrations.
 Displayed in benefit - Advantages in the accommodation business are legitimately
identified with the quantity of rooms involved each day. Employment levels are the most
significant marker of gainfulness, as per an investigation at Cornell University. Brands
that have earned a notoriety for quality can request the most noteworthy costs in specific
fields. This isn't the measure of administration visitors get, however they impact view of
the quality and way in which administrations are given (Williams, 2015). Therefore, less
expensive inns with steady quality will in general be more beneficial than progressively
costly inns with complete offices and less reliable conveyances.
 Arrangement situated - This Organization works together 24 hours per day, seven days
seven days, occasions and climate occasions, something must not be right.
Representatives become ill during available time, PC frameworks are down and some of
the time you can even rework significant visitors returning. Compelling quality
administration is choice situated and utilizes aptitudes to take care of the best director's
issues. An administrator who can clean a room or reserve a spot is as significant as a
chief who constructs an effective group. Administrators must be handy and inventive in
taking care of client and representative issues to keep up the nature of the inn.
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2.2 Business Plan to improve the business
Business planning is the planning done for the future course of organization is a written
description about the future of business and it is the document that tells about the plans about
how to make and implement the plan. Business plan are strategic in nature and in the hospitality
sector it includes event planning, theme park, planning marketing, sales and productivity and
many more. Business plan helps the Inter Continental Hotels Group in improving their business
in perspective to increase the sales that generate the revenue and ultimately this will give the
profits to the company.
Planning Marketing
In the Inter Continental Hotel Group it will make the business plan by doing the focus on
the uniqueness of particular product and attract the customers to use the services and also make
the plan that how it will benefit to the customers while taking the services. They will add this
aspect about the features of the product, attributes, relevant feature and how they are different.
Sales and Productivity
It is the primary goal of every business plan to make the people buy their services and it
will be measure by the increasing revenue for the company. In this they will make the plan how
to increase their sales productivity and can improve the health of the business. They will do the
productivity distribution between the service of high-medium, low performing sales. They spend
more time in the research.
Plan the financial management system of the organization
Financial management is the task in which the hoteliers make the budget of expenses and
make the cash flow statements and it is the planning by the company that how they will manage
to afford their strategic goals (Dedeoğlu and Demirer, 2015). But in the Inter Continental hotel
group they prepare the methodology and the software for the organization that will use to
oversee their income and expenses having the objective to maximize the profits and ensure the
sustainability.
Roles and responsibility of the staff and management
In the procedure of preparing the business plan in order to improve the business of Inter
Continental Hotel as it is one of the biggest group in the hospitality sector having many
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departments and the staff so it is very important for the industry to define the roles and
responsibility of each and every member of the staff as per their department.
Monitoring the planning performance
It is the last step in the business plan but one of the important step in the whole process as
it is the last but not least it is tool that is being used to plan and also manage in collecting the
performance data of each department and do the analysis. In this they will monitor the
performance of all the functional department and the measure it from the plans they made and
the plan that is executing and also prepare the self monitoring tools (Torres, Singh and
Robertson-Ring, 2015).
3.1 Evaluating the Current skills of management and staff
As the organization consists of various different types of operations and management so
it is very important to develop the required skills among the staff members. The development of
the skills and personality development among the employees of the organization allows the staff
to accomplish the main objectives effectively and efficiently. As the intercontinental Hotel group
manages carry out various different types of operations within the company in order to
accomplish the main objectives (Huertas-Valdivia, Braojos and Lloréns-Montes, 2019).
Therefore, it is very important to enhance the learning, development and knowledge within the
staff in order to improve the process of operation which will contribute towards the sustainable
growth of the Intercontinental Hotel group. However, the employees are considered as a assets to
the firm therefore the hotel needs to concentrate towards the individual grooming and personality
development programs via trainings and skill development campaigns. So the current skills
within the management and staff of the intercontinental hotel Group are as follows:
Technical skills
This is the ability to understand the technology and develop a knowledge about a
particular field. These skills helps in strengthening the efforts of all those employees who
belongs to the IT department, as these skills develop a proper knowledge about the programming
and Codding along with the implementation of the new technology within the firm. It may
includes the multiple programming languages, applications, certifications, coding, computing
and hardware skills. Also these skills will allows the employees of Intercontinental Hotels group
in order to execute and implement the updated technology improvement within the organization.
Along with this, the current technological skills also includes the Maintenance of the machinery
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and network architecture used within the company in order to exchange the data and information
among different departments in order to derive the final information to know the actual status of
the hotel in terms of inflow and outflow within the organization.
Along with this The current staff and management requires the development of the proper
skills regarding the social media marketing and Digital marketing (Brown, Thomas and
Bosselman, 2015). In order to enhance the marketing strategies within the company which
contribute towards the increased sales within the firm.
Managerial skills
These skills is mainly required by the managers in order to manage the employees and
staff within the Intercontinental Hotel Group. The managerial skill among the managers and
leaders of the Intercontinental Hotel group helps in motivating the staff members as well as it
allows the team members to improve the individual performance. This skill can be achieved by
developing a strong interpersonal relationship via strong communication, problem solving and
decision making skills. So the current skills among the staff members and management of the
intercontinental Hotels Group. The current skills among the managers of the organization
includes the Organising, Planning, leadership, communication and problem solving attitude of
the managers which derives the effective and efficient productivity among the individual
employees (Prashanti, 2018). In Intercontinental Hotel groups, there is a lack of the decision
making and problem solving qualities among the managers which may derives the ineffective
and inefficient operations within the organization.
Operational skills
This is one of the important skill of the Intercontinental Hotel groups as the hotel mainly
involved in various different types of operations which are aimed at satisfaction of the
employees. The effective operations within the company generate the maximum output which
helps the hotel to produce higher profitability within the firm. These skill helps the organization
to analyse the skill gap within the firm which may allow the leaders and managers to change
their leadership as well as management style in order to make the team perform better. This skill
can be effectively applied within the Intercontinental Hotel Group by maintaining the strong
interpersonal relationship and also by communicating and coordinating the tasks of individuals in
order to accomplish the common goals.
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3.2 Justifying the plan for the development of skills for managing the staff
Required skill Importance of skill Strategies Time Frame
Communication skill Development of the
communication skill is
very important for the
firm as it allows the
organization to
effectively circulate
the commands and
instructions of the
higher management
people in order to
make the employees
follow the rule. So
adopting the effective
communication skill
will allow the
intercontinental hotel
groups to perform the
operations in a
systematic and
efficient way.
This skill will be
developed by adopting
the effective strategy
via employing a
particular email
system within the firm.
This allows the flow of
the information and
data in a systematic
way (Pizam, Shapoval
and Ellis, 2016).
Along with this, in
order to develop the
communication skill,
Intercontinental Hotel
may develop the
internal site for the
company like a
messaging application,
this allows the
effective and efficient
flow of the data within
the organization.
This skill will be
developed by taking
the proper training
sessions during 1
month to implement
such Email system and
internal website to
flow the information
among all the
employees.
Customer relationship This is one of the
important skill which
needs to be developed
among the staff
members of the
This skill can be
developed by
improving the
capabilities of the
customer care support
This skill will be
developed within 3 to
4 weeks.
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intercontinental Hotel
group in order to
increase the customer
approach which
derives the higher
sales and increased
profitability of the
Services which are
provided by the Hotel.
team. This allows the
customer care team
members to solve the
queries and issues of
the customers which
attract the customer
towards the particular
goods and services.
Therefore effective
customer care team
will contribute the
company towards the
achievement of the
organizational
objectives.
Technology skills This skill will allow
the organization to
implement the updated
technology within the
business. This helps in
improving the
technological aspects
within the firm and
also it allows the
employees to
implement the better
changes within the
firm.
This skill will be
developed by
implementing the
functional strategies
which allows the
managers and leader to
find out the effective
tools and equipment in
order to enhance the
efficiency of the work.
This will be achieved
within 5 top 6 weeks.
Operational skills In order to develop the
effective operational
In order to develop
this skill, managers
This will be
accomplished within 5
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tasks, it is very
important for the
employees to possess
the complete
understanding and
knowledge of the work
or main operations
which are carried out
within the firm
(Pizam, Shapoval and
Ellis, 2016). So this
leaders and managers
may help the staff to
develop the
operational skills by
providing the effective
ideas to carry out such
operations.
and leaders have to
implement changes
within the computer
software which allow
the staff members to
carry out the
operations
automatically. This
allows the staff of
intercontinental Hotel
groups to enhance the
operations by adopting
the updated methods
to improve the
performance. It will
eliminate the human
efforts and helps the
firm to sustain for the
longer time in the
market.
to 6 weeks of training
of the employees.
Cultural awareness This skill helps the
firm to develop the
positive environment
at workplace. This
skill allow the
manager and leader to
motivate the
individuals within the
business which
contributes towards
the improved
This skill can be
achieved by
influencing the main
goals through the
inspirational
communication of the
leaders and managers.
In order to implement
this strategy, company
need to create new
guidelines, policies
The formulation of the
new policies and
guidelines will be
restructured within 15
to 20 weeks. This
takes the long time as
it includes the
implementation and
execution of such
policies among the
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productivity and
profitability. Cultural
awareness can be a
great deal which need
to be promoted among
the employees.
and procedures for the
staff members in order
to influence the
positive environment
at workplace.
employees.
Management skills This skill is required
because it helps the
organization in
managing, organizing
and coordinating the
tasks of the employees
(Pizam, Shapoval and
Ellis, 2016). Therefore
development of the
effective managerial
skills among the
managers will allows
the staff members to
improve the individual
performance which
have contributed
towards the improved
productivity and
profitability within
Intercontinental Hotel
Groups.
This skill will be
developed by
maintaining the
coordination and
effective interpersonal
skills within the firm.
This skill is mainly
required by the
managers within the
firm who are aimed at
managing the staff
within the
organoization.
This skill will be
accomplished within 2
to 3 weeks.
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CONCLUSION
An overview of terms and conditions is a process that determines the situation and status of
a business strategy. These are indicators that measure the health and performance of a company
based on market share, business volume, and other responses to competitors. In short, companies
can continue to assess their products, business efficiency, and strategies to keep customers and
customers alive. This will help to make timely and appropriate changes and to make the
necessary changes. Inter-Continental Hotel even needs to evaluate the skills and competencies of
management and employees. This, in turn, will create new types of training and new skills that
will help fight the competition.
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