Business Health Check And Objectives Assignment

Business Health Check

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 The objectives of Travelodge...........................................................................................3
1.2 The factors that impact on the business of Travelodge....................................................5
1.3 Potential improvements to business organisation of Travelodge.....................................9
TASK 2..........................................................................................................................................10
2.1 Effectiveness of Travelodge...........................................................................................10
2.2 Plans to improve business, justifying their value...........................................................11
TASK 3..........................................................................................................................................12
3.1 Current skills of management and staff..........................................................................12
3.2 Devise and justify plans for development of skills for management and staff..............13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Today, in intense competitive environment, every company seek to sustain and grow its
business profitably. For this purpose, they concern mostly on addressing their weaknesses on
time, before the same become threat for long-term success of business (Eid, 2015). In this regard,
business health check up considered as major tool for diagnosing the issues and current condition
of company, in order to formulate better policies and strategies for further improvement. It helps
in determining major strengths of business and identifying opportunities to deal with factors, that
beyond control of enterprises. The present assignment is based on evaluating factors that aid a
business to be grown successfully. Organisation hereby taken is Travelodge Hotels Limited, that
deals in hospitality industry and runs a large chain of hotels, over 500 at global level. In order to
check what this company is currently projected for long-term success and what it can be offered,
objectives, strategies and plans are briefly explained in this assignment, to transform its vision
into reality (Kim, Yoon and Shin, 2015). For this assistance, potential improvement with plans to
increase value of business is also highlighted. Along with this, evaluation of current skill set of
management and employees together with plan for its improvement is given.
TASK 1
1.1 The objectives of Travelodge
The commitment to offer great food, accommodation and even better facilities has made
Travelodge, the second largest hotel in UK during last few decades in hospitality industry
(Oskam and Boswijk, 2016). With excellent reputation and strong brand image at hotel sector,
this organisation has earned a large market share and retention of customers for longer period of
time.
History: Travelodge Hotels Limited has founded by Thame in England in the year 1985
under the guidance of Keith Hamil (Chairman) and Peter Gowers (CEO). Orignially, it was
operated under Travelodge Chain of US, but it has completely separated its ownership now. In
terms of number of hotels i.e. more than 500 in UK alone and few in other countries, it is
considered as the second largest hotel in United Kingdom (Altinay, Paraskevas and Jang, 2015).
Its major strength part shown by number of staff workers that are 11000 approx. that help in
getting high satisfaction of customers. By offering services at best available rates, with Wi-Fi

and transportation facilities to guest as well as the unbeatable value in travel and leisure, this
hotel is continuously grown its business globally.
Mission: The main mission of Travelodge is to increase affordability of leisure service, to make
it possible for all people (Sandberg, 2017). Wherever they go, Travelodge Hotel Service will be
there to welcome them.
Values: The value of Travelodge represent by its core principles that it uses to guide each
decision (Masiero, Heo and Pan, 2015). It also defines business culture and help in to leading
with strength.
 Integrity: This hotel hold itself to high standards and thus, operate business with truth
and adequate transparency.
 Accountability: It gives commitments to deliver best results by offering leisure services
on affordable rates.
 Inclusive: It welcomes all people, respecting their cultures, beliefs, ideas and more, by
providing equal facilities at per their demand (Akbar and Tracogna, 2018).
 Caring: It generously give the time, attention and action.
 Fun: It loves what business do and pass that feeling on to its each guest and owner.
Objectives of Travelodge:
The objectives of Travelodge can be classified on the basis of short-term and long-term
objectives. Here, short term objective of Travelodge is to launch the New SuperRooms within a
year, which is accounted as perfect choice with added comforts (Smagina, 2017). Here, each and
every feature is carefully selected in order to enhance comfort to stay, with a choice of soft
hypoallergenic pillows, a large screen TV and other leisure facilities, to gain retention of
customers (Ahmed and et. al., 2015). While, the long term objectives of this company can be
defined in terms of revenues and competitive advantage, where respective company mainly aims
to become the most favourite hotel by offering unbeatable leisure services on affordable rates
such as modern bedrooms, a Modo Mio Coffee machine, comfy new king size beds and more
(Boella, 2017). For this purpose, it has invested over 100m Euro on modernisation programme
for upgrading approx 30,000 rooms with 40,000 brand new Travelodge Dreamer Beds, to satisfy
customers' demand.

1.2 The factors that impact on the business of Travelodge
As business environment of organisations has become more dynamic, where growing
competition force existing ones to develop more changes in business (Dedeoğlu and Demirer,
2015). Therefore, it is essential for every company to concern on various factors before
incorporating any changes in business. It includes internal and external factor, resources,
capabilities of organisation and more (Neupane, 2015). Here, the main factor which affect
business of hotel industry is degree of competition, i.e. the way they fiercely compete with other
corporations. In context with hotel industries like Travelodge Hotels Limited, to analyse factors
that impact either directly or indirectly on its business, its management has used PESTLE
Analysis as shown below:-
Political factors: It contains the political rules and regulations which are implemented by
the government of a nation, on hotels where it operates business. As UK Government is focusing
more on increasing tourism for economy development, therefore, it only imposes those laws that
help hotel industries in offering more effective services as well as increasing their popularity
among targeted audience (Leung, Bai and Stahura, 2015). Therefore, this factor impact positively
on business of Travelodge Hotel in developing its profitability. While, political instability i.e.
changes in laws may impact on business policies of hotel industries as well, which may impact
negatively on operations. As UK has been considered as the most popular destinations, but due
to high political interference like visa checking and other, people of other countries face various
issues to visit its famous heritages (Choi and et. al., 2016). This would also impact on attracting
targeted audience towards services for Travelodge. But, as this country also considered as
profitable in terms of FDI that attracts business tycoons of other countries to make investment in
running organisations of UK. For this purpose, they generally come to attend business meeting
and other official purpose in this nation on regular manner (Char-lee, Becken and Watt, 2016).
This would aid Travelodge in targeting business people and offer them services as per their
demand to gain long time retention.
Economic factors: Increasing taxation, interest and exchange rates, etc. affect business of
every organisation. In context with UK, its economy is developing continuously which rise GDP
also, so, it reflects good purchasing power of people and tourists (Noe and et. al., 2017). Thus,
this factor also proves beneficial for Travelodge in generating high revenues with increasing in
customer base. Hereby, as per BBC report 2017, it has evaluated the economy rate of UK is

increased from 0.25% to over 0.5% (PESTLE analysis of UK. 2017) therefore, it leads to
increase per capita income of people as well as enable them to afford leisure services of hotel
during travelling. Thus, this would also help Travelodge in offering services on reasonable rates
so that, higher revenues can be earned. But, this would also increase demand of labour to get
high wages which may increase production cost of hotel industries. In this regard, increase in
pricing policies may affect customer demand and impact directly on profitability of hotels also.
Social factors: The socio-cultural factor aspects of a nation is considered as most
important factor for hotel industry (Phillips and et. al., 2017). Here, growing demand of
customers to get good food, comfort stay, a number of facilities from hotels and restaurants
shows a good signs of increasing profitability of their businesses. This factor aid Travelodge in
developing innovation in business and attainment of both of its short-term and long-term goals.
UK is considered as big consumer market, where people are classified on the basis of
demographic and geographical basis (PESTLE analysis of UK. 2017). In this regard, it forces
respective hotel to offer a wide variety of services as per demand of each group of people.
Technological factors: This aspect is directly linked with modernisation which aid hotels
in keeping up its organisation or business operations up to date with advanced technologies. It
helps in promoting business and reaching targeted audience more easily, as well as in shorter
period of time (Kim and et. al., 2016). Here, Wi-Fi, soft hypoallergenic pillows, a large screen
TV, Comfy new king size beds etc. can be implemented easily by latest technology and help
Travelodge in promoting these new services at targeted market more easily. But promoting
business through social media may impact on security and keeping business idea confidential
from potential customers, so this may affect respective hotel in negative manner as well.
Legal factors: Changing in employment laws like Health & Safety Act 1996, Equality Act
2010 and more, force organisations to pay attention on welfare of employees and provide them
equal rights and wages (Robinson and et. al., 2016). This factor also force hotel industries where
work is going on 24 x 7 hours basis, to give flexibility in working hours to their staff members
so, it might effect operational activities. Here, Travelodge also need to provide sufficient salary
and other advantages like incentives, paternity and maternity leave, insurance, medical facilities
etc. to gain high contribution of workers in offering best services to its clients. Otherwise, it may
lead to increase staff turnover rates which would impact on competitive advantage and business
more adversely.

Environmental factors: Economic growth i.e. with increase in globalisation, a number of
organisations are running within same sector, where to gain high competitive advantage,
companies instead of focusing on sustainability, concerning on earning profitability (Font, Garay
and Jones, 2016). So, this affect directly the ecosystem where, development of tourism increase
wastages of resources like dumping of waste on roads and public places, water and energy
consumption, transportation etc. increase environmental issues. So, concerning on this factor,
Government of UK, NGOs and various charitable trusts to hotel and tourism related industries to
adopt the concept of ‘go green’ by making investment in CSR activities (Cetin and Walls, 2016).
If Travelodge avoid to increase sustainability in business and making investment in corporate
social responsibility, then it may affect negatively on brand image of its business.
To analyse the competitiveness in detailed manner and the market analysis of Travelodge
Hotel business, it is better to use following models:-
Porter's Five-force model: This method is mainly used for carry out detailed analysis on
presence of competitors in marketplace, by using following five factors: Bargaining power of supplier – The supply in hotel industry is mainly based on FMCGs
i.e. Fast Moving Consumer Goods, which states that organisations dealing in this sector
are generally buy raw materials or other related products in bulk (Eid, 2015). Therefore,
this fact has limited the bargaining power of suppliers due to ready availability of goods
for Travelodge Hotels. Bargaining power of buyers – As Travelodge offers a wide range of options to its clients
to book rooms as per price and ultra-luxury services, on different price rates (Noe and et.
al., 2017). Therefore, to bargain with pricing strategies of this hotel, where same services
are offered by other hotels sometime on less rates, are considered less because it mostly
depends on brand image of a company in hotel sector that offers luxury services. Threat of new entrants – It is considered as main factor that may affect business of
Travelodge where, opening of new branches of existing hotels and entry of locally or
internationally hotels at marketplace increase competition among other organisations
(Phillips and et. al., 2017). So, threat of new entrant is high for firm. Therefore, this
factor force Travelodge to offer something new service that will help in retaining the
loyal customers with its business.

 Threat of substitutes – This factor affects the entire business of Travelodge in higher
manner, where a range of substitute is available in marketplace of every kind of
accommodations it offers (Kim and et. al., 2016). But, as people concerns of quality and
pricing strategy first before purchase any service, therefore, concerning on both factors
while developing strategies may reduce threat of this factor for respective company.
 Rivalry among competitors – It is fairly much high where presence of established hotels
like Marriot, Hilton and more, affect high profitability of Travelodge Hotels in UK
marketplace.
SWOT Analysis: This analysis helps in evaluating the internal capabilities and factors that
effect business of Travelodge in following manner:- Strengths – This company operates own and other 500 hotels in UK marketplace within
major cities and regional areas. It serves more than 13 million people in a year which
helps in generating a high revenue as well (Research and Markets: Travelodge Hotels
Ltd.: Company Profile and SWOT Analysis – 2012). It also offers business account card
that helps customers in getting more fast and quick services. Commitment towards
sustainable business shows its environment concern and provide a competitive edge over
others. Weaknesses – The major weakness of Travelodge Hotels is its less diversification of
services, where it fails to gain attention of customers towards its offerings due to basic
facilities, in terms of aesthetic and decoration (Robinson and et. al., 2016). To remove
this weakness, now its management has developed short-term and long-term business
goals i.e. to introduce new beds having king size, a Modo Mio Coffee machine,
hypoallergenic pillows etc. to increase luxury services and gain high satisfaction of
customers. Along with this, instead of diversify the business, it focuses more on people
centric approach which have arisen issues to earn less revenue as well. Opportunities – To expand business in other countries and increase accessibility of brand
in eyes of foreign tourists will give opportunity to Travelodge in getting high competitive
advantages.
 Threats – Intense competition and increase of new entrants within hotel industry, create
threat for business of Travelodge in high manner (Font, Garay and Jones, 2016). along

with this, increasing terrorism also affect tourism within UK which effect business of all
companies, whose businesses are highly depended on tourists.
1.3 Potential improvements to business organisation of Travelodge
In order to identify areas where improvement is essential for further growth of business,
Ansoff Matrix tool is generally used by all companies. In context with Travelodge, the potential
improvement in company’s product can be identified as –
 Market Penetration – Travelodge can gain loyalty of customers by offering luxury
services as other hotels serves in same marketplace (Cetin and Walls, 2016). This would
give chance to build stronger position as well in hotel industry.
 Market development – Making investment in expansion of business in other areas and
increase its market can give chance to Travelodge in earning high amount of revenue
after development of its business.
 Product development – Giving main focus on development of service package via
improving infrastructure, ambiance and culture of business, can aid respective company
on offering high quality of its products to customers (Eid, 2015).
 Diversification – Diversify own business from other competitors can give best
opportunity to Travelodge in getting attention of new customers and loyalty of existing
ones for develop its brand image more profitably.
In order to being a clear market leader within hotel industry in terms of hospitality,
Travelodge Hotels Limited need to expand its business in more countries. Due to presence of a
number of competitors such as Starwood, Marriot, Hilton, Sheraton and more, which are giving
tough competition to Travelodge, the main marketing strategy of this company is to differentiate
itself among them, in terms of giving exceptional customer service (Kim, Yoon and Shin, 2015).
For this process, diversification is the perfect strategy for making potential improvement in
business. Apart from this, via building an effective brand image as well as increasing the
communication with targeted customers that are business class people and tourists is also needed
to concern for making diversification (Oskam and Boswijk, 2016). In this regard, for launching
new services, it has to make more investment in marketing programs for attracting more new
customers and keeping existing ones as well. For example- Guest loyalty program, Membership
privileges under brand name can be designed to provide rewards to loyal customers, who are
taking the hotel services from longer period will aid Travelodge in getting high satisfaction of its

customers (Altinay, Paraskevas and Jang, 2015). For this purpose, some important features that
needs to be includes in these marketing programs are discounts and rewards, VIP treatment and
many more. These programs will help respective company in increasing awareness among
customers about its new services and the way it diversify its business from others.
TASK 2
2.1 Effectiveness of Travelodge
The degree to which objectives of a business are achieved as well as the extent to which
major issues are handled and solved is known as business effectiveness of a company. In contrast
with meaning of efficiency that is based on ‘doing the things right’, effectiveness of a company
defines way to "doing the right thing” (Sandberg, 2017). In context with Travelodge,
effectiveness of its business can be measured in terms of following main components –
Product/service – Travelodge Hotels give outstanding and exceptional services as well as
high facilities to its guests like Wi-Fi, comfy bed size, hypoallergenic pillows and more, for
satisfaction of its customers. Apart from this, it also concerns more on offering high quality of
services that are worth the price, which a customer is paid for own satisfaction. It also run
programs like providing various rewards and benefits to those customers who are taking its
services on repetitive manner (Masiero, Heo and Pan, 2015). The product range of this hotel
includes honeymoon packages, business class ambience I.e. conference facilities where privacy
and confidentiality concerns more and other room amenities.
Marketing and brand building – In order to build brand image, it concerns on various
aspects of business like increasing specialisation, development of infrastructure with changing in
demand and patterns of marketplace, optimisation of human resource and more concern on
marketing the business at large manner via social media, advertising and other sources (Akbar
and Tracogna, 2018). This would aid in building its high brand image and promoting its business
in other countries as well for influencing both domestic and foreign tourists towards business.
Trained and efficient staff – As every customer seek to get best treatment in the most
hospitable or best possible manner, therefore, Travelodge concerns more on introducing well-
trained staff members who provides efficiency to business when it comes to deal with the
customers more appropriately (Smagina, 2017). For this purpose, it provides apprenticeship

training to its entire staff members which are more than 11000 including overall branches, for
enhancing their skills and make them able to give best customer service.
Thus, it has been evaluated the innovation in product and service, high skilled and well-
trained workers, efficient marketing and brand building etc. are some factors that shows
effectiveness of business of Travelodge and its strengths to gain high competitive advantages.
2.2 Plans to improve business, justifying their value
Business plan can be defined as a document that helps a company in making
improvement in their business and achieve objectives in set period of time (Boella, 2017). In
context with Travelodge, its main objective is to launch the New SuperRooms, account to perfect
choice with added comforts within a year, help in offering luxury services to its targeted
audience. In order to diversify this product or services, Travelodge needs to develop a proper
business plan which includes overall strategies starting from planning to execution as stated
below:-
Marketing Planning – To offer services that allows customers to mask actual room rates
with features, as well as services that add value to staying at hotel, Travelodge will make more
investment on designing its web pages more attractively (Ahmed and et. al., 2015). This will
provide entire information related to offers of additional services such as fitness classes and spa
treatments, different package rates with a range of accommodation for a great deal etc. will
encourages customers to use its services they may not have previously experienced in other
hotels (Dedeoğlu and Demirer, 2015). Furthermore, marketing team also will also consider on
collaborating the business with tourist attractions and make advertisements to newspapers,
company’s websites and social sites in population centres in the vicinity promoting midweek
breaks which include transportation tours, wine tasting trips, or a live concert.
Sales and productivity – To increase sales and productivity of business, latest
technology will bring in Travelodge Hotel that help in influencing customers towards its new
services and giving them demo how it will satisfy their needs and increase expectation level
(Neupane, 2015). For this purpose, investment in marketing the business will help in increasing
accessibility of business and enhancing sales performance as well. While for increasing
productivity of business, special training will also provide to staff members for providing best
services to its clients.

Planning for finance management – In order to keep budget properly and distributes
the finance more effectively, Travelodge also need to concern on financial management
planning, by making a list of factors where investment needs to be done (Leung, Bai and
Stahura, 2015). A proper financial plan will help in developing changes in room services and
transfer into SuperRooms.
TASK 3
3.1 Current skills of management and staff
Since, Travelodge is going to launch new services i.e. SuperRooms, which is account to
perfect choice with added comforts within a year, therefore, to achieve this objective, it is
essential for this hotel to concern on current skills of management and staff (Choi and et. al.,
2016). Hereby, it has evaluated that currently it has staff of more than 11,000 workers who are
highly skilled and experienced in respective field. They all possessed knowledge how to deal
with special demand of customers and how quickly has to be completed. Along with this,
management of this hotel is also equipped with effective leadership and managerial qualities that
helps in offering timely and possible services to its clients for higher satisfaction (Char-lee,
Becken and Watt, 2016). This hotel has provided learning programs to each staff member to
enhance knowledge of different languages, so that it would become easy to interact with foreign
customers in their languages more easily. It also helps in increasing confidence of each staff
member to offer best services.
Operational Skills: In order to work efficiently and give optimum outcomes, it is essential for a
management of a company to have effective operational skills.
 Conflict Management- Managers of Travelodge need to possess such skills for resolving
conflicts among members and bring collaboration among them.
 Finance Management- It is highly important for managers of Travelodge to implement
best approaches for managing the finance and optimise budget in better manner.
Managerial Skills
For managing entire business and monitor that each function operates efficiently,
managerial skills are also needed to be development among higher authorities of Travelodge. It
includes -

 Decision making skills – For implementing new policies in business, timely decision
making plays an important role, therefore, managers of Travelodge must work on
developing this skill.
 Interpersonal skills – In order to interact with guests, staff members and entire
stakeholders, managers of given company also require to enhance interpersonal skills.
3.2 Devise and justify plans for development of skills for management and staff
Though management and staff members of Travelodge are highly equipped with effective
communication and interactive skills, but still they are needed to enhance abilities for offering
better services. As there are more than 11000 workers are currently working so, it becomes
difficult for management to handle such a large workplace and maintain positivity at workplace,
especially while distribution of roles and responsibilities (Char-lee, Becken and Watt, 2016).
Therefore, Travelodge need to provide some management classes to managers of each
department for developing managerial skills so that they can perform at their level best. Along
with this, due to large workplace, there is a high chance of conflicts among workers that
sometime effect their relationship and workers start to avoid work in collaboration. In this
regard, management will provide both on-line and off-line training to them to develop team-
working skills in them and reduce knowledge gap as well (Noe and et. al., 2017). For this
purpose, a development plan is given below :-
Learning objective Target
proficiency
Development opportunities Time scale
Managerial skills 15 For managing entire business and
influence workers to perform at
their level best, managerial skills
will aid managers of Travelodge to
manage entire workplace more
efficiently.
75 to 90 days
Technical skills 15 For working with new
technologies and promote business
at both international and domestic
50 to 60 days

level, marketing, operational and
managers of other department need
to enhance their technical skills
also
CONCLUSION
It has been concluded from this assignment that in order to check effectiveness of
operational activities to determine if a company is able to achieve its future objectives or not,
business health check-up is a perfect tool. It helps a company in oversee entire strengths and
weaknesses as well as impact of internal and external factors on business, that may either create
barriers or opportunity to achieve short-term and long-term objectives in set period of time. It
also provides chance to a firm in making improvement in business for long-term success and
earning of high profitability.

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