Business Health Check Solution Assignment

Business Health
Check

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
AC1.1 Determination of the objectives of the business..............................................................1
AC1.2 Explanation of the factors that affect businesses.............................................................2
AC1.3 Explanation of the potential improvements to the business operations...........................5
AC2.1 Effectiveness of the business...........................................................................................6
AC2.2 Development of the plans to make improvement in the business...................................8
AC3.1 Evaluation of the current skills of the management of the staff....................................10
AC3.2 Justification of the plans for the growth of the skills for management and staff..........10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business health check refers to the recent comprehensive evaluation of the important
components of the business. It can be an analysis of effective determination of the operations and
activities of the business of an organisation. Business basically refer to the trading of the goods
and services from one place to another. It also include various activities like production,
planning, designing and running several activities of a company (Campanotti, Jackson and
Tognetti, 2016). The process of business health check is important because it help in effectively
monitor the performance of a firm. It help in making clarity in the aims and goals of the business
so that they can be effectively understand by the employees so that they can help in attaining
them and make impermanent in the business. This assignment is based on Holiday Inn which is a
British owned American brand of hotels and a subsidiary of Intercontinental Hotels Group. This
organisation was founded in 1952 by Kemmons Wilson and headquartered in Denham,
Buckinghamshire, UK. It operate its business in food service, lodging, conventions, meetings,
timeshares and others. This report will be discussed about the objectives of the business,
different factors impact on the business and determination of potential improvements ton the
business organisation. Further will be defined about the effectiveness, growth plans and current
skills of the employees for the development of the business.
MAIN BODY
AC1.1 Determination of the objectives of the business
Overview of the company
Holiday Inn is a subsidiary of Intercontinental Hotels Group and it is a British owned
American brand of hotels which was founded by Kemmons Wilson in 1952. This company
operate its business in at international level in the different nation of the world with the help of
1,173 hotels and more over 214,000 bedrooms. The headquarters of this hotel chain in Denham
Buckinghamshire.
Business objectives
It refers to outcomes which can be aims and goals of a company and attained by the
employees by completing their works and tasks in an effective manner on time (Capewell,
McCartney and Holland, 2015). In an organisation, objectives refers to the aim and goals of the
company which is in measurable terms or steps and achieved by the workers in a given period of
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time. In Holiday Inn, objectives of the company are set by the management which the company
in making development and growth of the business of the company. The management of this
hospitality organisation set two types of objectives like short term and long term objectives
(Chang and et. al., 2016). Short term objectives indicates to those aim which are achieved by the
employees within a year whereas there is not any specific time to attain long term objectives.
Short term objectives
 Creating effective reputation through communication with their stakeholders.
 Providing good services to its potential customers that will help in exceed their
expectations and fulfil their demands.
Long term objectives
 To maximize 15% sales of the company within 2 years.
 Make expansion in the business and provide other classifiable services.
Mission- The mission statement of this company is to make difference in the lives of the people
by working together to deliver commitment, offer quality services which provide satisfaction to
the needs and demands of them.
Vision- The vision of the company to expand the business of the firm in different nations and to
be the best 4-star hotel in Dubai.
AC1.2 Explanation of the factors that affect businesses
PESTEL Analysis
Political factor- This factor include taxation policy, trade restrictions, political stability
and others. In UK , the government of the country make change in the taxation policy and reduce
it from 35% to 30% which create favourable impact on the business of the company in term of
making development in the business. This firm operating its business in different nations so if the
government make change in its trade or entry policies then they negatively affect it.
Economical factor- It consist inflation, interest rate, deflation, foreign exchange rate,
recession and others. In UK, the economy of this nation currently suffer with recession so it
affect the life of people and making them to be more careful in spending. This negatively
influence the business of Holiday Inn (Check Hayden, 2015). Due to government's substantial
reduction in interest rates help in effective operations of the business and generating employment
opportunities.
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Social factor- This factor consist culture, values, beliefs, taste and preferences etc. In
UK, changing lifestyle and culture of the people affect their needs and demands and they prefer
low cost services with high standard of value of money (Chen and Wang, 2016). This create
unfavourable influence on Holiday Inn, in term of reducing profitability. But discount and
promotion offer make favourable impact on the sales of the it.
Technological factor- This factor consist R&D, digital technology, automation, advance
technology and others. In Holiday Inn, the management of the company make various
technological changes like mobile application, online payments and others. The management of
this company use mobile application to book the room and online payments which is easy fro the
target audience. It help in maximizing the profit and increasing the sales.
Environmental factor- It include climate, recycling procedures, carbon footprint, waste
disposal, CSR and others. In Holiday Inn, the management of the company have developed a
strong CSR policy and a small part of the whole profit is invested in the CSR activities which are
organised by the company for the welfare of the society. The firm effectively follow all the
environmental laws like carbon emission, pollution act, wastage law and others which affect its
business in favourable way.
Legal factor- This factor consist various laws and regulations which are developed by the
government of the country for the effective running of the business operations and activities like,
employment act, consumer protection act, trade regulations and others. In UK, the government
has been maximized wage rate 15.5% cause of which costs an increase in operating cost of hotels
budget. It increased the cost of product which affect the policy ton provide competitive price to
consumers.
Porter's five force model
Threats of new entrants- There are less risk of new entrants to Holiday Inn because there
are more capital and fund required to establish a business in hospitality sector to compete the a
large brand. There are various rules and regulations which are designed by the government of the
nation to set up a business and operating it in hotel industry.
Bargaining power of suppliers- There numerous suppliers in the market and they provide
required material and services to the company as per its requirement so the power of suppliers is
also low (Ferrell and Fraedrich, 2015). In context of Holiday Inn, suppliers refer to travel
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agencies, agents and others which help in providing customers to the company for developing
the business of the company.
Bargaining power of buyers- In Holiday Inn, the hotel offer its services around 70,000
customers per year. So according to it, the bargaining power of buyers is low due to quality
services and products of the company which are offered by it affordable prices (Fonarow and et.
al., 2015).
Threats of substitutes- There are number of hotels in hospitality sector and they offer
different similar services to the customers at reasonable prices. So the threat of substitute is high
for Holiday Inn.
Rivalry among existing competitors- There are various competitors of Holiday Inn like
Marriott, Hyatt, Ramada Inn, Hilton and others. So the risk of rivalry is high to this hotel because
they also offer same services to the customers by using effective pricing strategies.
SWOT Analysis
Strengths Weaknesses
 Holiday Inn offer quality services
through more than 1200 hotels
worldwide.
 The company use effective technology
for the promotion of its services like
digital marketing social media and
others which help in increasing the
customer base of it.
 Limited market share due to unlimited
competitors in the market is the main
weakness of the company.
 Penetration in the emerging economy is
another weakness for the business of
Holiday Inn.
Opportunities Threats
 By making expansion in its business
the company can gain various
opportunities because travellers are
searching for new locations and
destinations.
 To make innovation in its existing
services or providing particular
 The main threat is that there are various
competitor in the market and they offer
similar services which affect the
business of this company (Forbes and
Watt, 2015).
 Terrorist attack, natural disasters and
other factors affect tourism sector
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seasonal offers according to the nation. which negatively influence the business
of this firm.
AC1.3 Explanation of the potential improvements to the business operations
In current era, business structures are searching for long lasting development and and
potential to carry out business activities and operations till long period of time. During the time
of buying and selling products and services, organisations have to be insure about to make
increment in the strategic position to make improvement in the profitability to earn capacity of
companies (Groenenberg and et. al., 2015). To make development in the business of the
company, the management of Holiday Inn can use Ansoff Matrix. This model can be basically
used by the firm for expanding the business of the organisation in various ways and make
improvement in the profit and productivity. The description of this model is as following:
Ansoff Matrix
Market penetration-It is a growth strategy which can be used by organisation make
development in the business of a company. It is a less risky development strategy because within
the firm make growth with the help of existing products in existing market. The main n objective
of the firms to make development in market share of the company by using this strategy. In
Holiday Inn, the management of it can use this strategy by making decrement in the price to
getting attention of potential and new customers.
Market development- It is another growth strategy which can be implement by the
management of different organisations to make development in their business. There are high
risk then penetration because in it, the management can make development by launching its
business in new market or nation with the help of existing products and services. In Holiday Inn,
the management can use this growth strategy to invest in R&D to make development in new
products to launch in existing market (Ismail and Atkin, 2016). By making partnership with
others this organisation can launch its business in different locations and making growth in its
business.
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Source: Ansoff Matrix,(2019).
Product development- There are more risk than market development strategy because in
it the management can make development by launching new products and making innovation in
its existing products an services in existing market according to the neds and demands of the
customers (Hyppönen, Hämäläinen and Reponen, 2015). The management of Holiday Inn can
apply this strategy by proving extra services like fitness services, Gym and others to its
customers to increase the profit and enhance the productivity.
Diversification- There are high risk in this strategy because in it the company enter in a
new market with new products and services. Within this the firm can use two ways of
diversification like related and unrelated diversification. In Holiday Inn, in related
diversification, the management can offer new services like free Wi-Fi and others. In Unrelated
diversification, it can provide fitness and gym services to its customers which help in making
growth in the business of this company in term of profit and productivity.
As per the above information can be monitored that the management of Holiday Inn can
apply diversification strategy of growth. Because with the help of it, this firm can make
development in its business by launching its business at new location and offer new services
cording the needs and demands of the customers (Joshi and Cheung, 2015).
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Illustration: Ansoff Matrix

AC2.1 Effectiveness of the business
Effectiveness of the business
Business effectiveness indicates to the quality of result which are monitored by the
management of the company after completion of the work and tasks which are provided to the
employees. In Holiday Inn, for the effectiveness of the business, the manager and leader of the
company develop plans and policies so that the employees can effectively complete their work.
This will help them in easily attaining their aims and objectives in set period of time (Kim, Park
and Park, 2016). In context of Holiday Inn, business effectiveness can be a degree to which
objectives are attained and the extent to which reference point problems can be solved. So that
the firm can effectively operate its operation in efficient manner. In an business environment,
effectiveness is a term that defines the accuracy and efficiency of the efforts associated by the
persons within the organization to achieve its objectives. In other words, business effectiveness
is the capacity to achieve the business goals and solving the problems on time with minimum
efforts and maximum profit. some of the major functional areas which needs business
effectiveness:
Products/Services: Products or services are the key components to run a business. An
organization is known of the products or services it provides to its customers. An efficient
business effectiveness is must in this area. Hotel Holiday Inn provides so many services to its
customers like luxury rooms, olive tree restaurants, club, wedding halls, meeting halls etc. The
organization is managing to maintain the standard in providing these services so that it can
increase the profitability.
Marketing: Marketing is a term that related to the production, advertisement, selling,
distribution and after sale services. Marketing strategies is very important to sale the product or
services of the organization. The marketing team of the Hotel Holiday Inn adapts new marketing
strategies and use digital marketing tools to attract customers, conduct surveys to know the
market trends and competitive analysis.
Sales: Sales is a major source of business income. To run a business effectively, it is a
necessity to increase sales of the product and services. For attracting new customers, Hotel
Holiday Inn uses new sales strategies every time. It provides discounts to new customers,offers
to existing customers (Laws, 2015). It organise events to attract customers. These strategies are
helpful in increasing revenue.
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Finance: Finance management is a tuff task in any organization. Money is the first factor
that shows the profitability of the organisation. It is well known fact that financial stability is
must to run a business efficiently (Moskvitch, 2015). The finance team of Hotel Holiday Inn
maintain a proper records of the financial information. It creates an effective budget and
structure to maintain the financial balance in the hotel.
Staffing: An energetic, enthusiastic and zealous staff is must for an healthy environment
and strong relationship with customers. Hotel Holiday Inn follows a policy to hire a staff with
professional attitude and hospitality expertise. It provides training sessions to its employees so
that they can comply with the industry terms.
Record Keeping: Accounting and record keeping is a healthy habit for an organization
because it helps in tracking the transactions and activities of the organization. Hotel Holiday Inn
have a different accounting department that keeps the record of all the transactions and also
provides the reports how effectively the activities taking place in the organization.
AC2.2 Development of the plans to make improvement in the business
Business planning is the process of clear and concise process to include resources, plans,
polices and strategies to achieve the designed goals and targets of the business in an effective
manner. Business planning help in supporting the firm so that it can make overall planning on
marketing, sales and productivity to attain the aims and objectives. In Holiday Inn, the
management of the company can make plans and do business planning for the growth of the firm
so that the employees can perform their work and complete their task in an effective manner.
Planning sales, marketing and productivity- These all are effective and appropriate areas
for each organisation which help in making plan fro marketing and sales of the goods and
services of a company. In Holiday Inn to make increment in the sales and productivity, the
management of the company design strategies and policies so that it can make increment in its
sales. For the marketing of its services, the firm used various marketing strategies like
promotional strategies, pricing strategies and others (Murphy, McGloughlin and Walkin, 2015).
In this company, the management of the company can used different analysis with help of all
resources which are able to make improvement in the sales and creating awareness about the
product which help in m,maximizing productivity in an effective and efficient manner.
Planning financial management system- Holiday Inn is the subsidiary of
Intercontinental Hotel group so it help in generating revenue and help in maximizing profit by
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using effective accounting standards and formates. In Holiday Inn, the management use
accounting standards and norms with the utilization by which they can use book keeping to
manage the entries. This firm belongs from hospitality sector so it consider financial year of 1st
April to 31st march to maintain and record the accounting and financial transaction of the
company in an efficient way (Nelson and Staggers, 2016). Financial system management help in
managing the financial actions and activities of the company so that it can specifically maintain
the business transactions and statement of the firm. For this the management use different tools
of finance like cash flow statement, budgets and others.
Roles and responsibilities of staff and management- To make increment in the sales
and productivity, maintaining financial information and others activities, there are different roles
and responsibilities are playing by the staff and management. In Holiday Inn, the roles and
responsibilities are assigned by the manger and leader according to the skills and competencies
of the employees. For example, in this company, the customer service officer are responsible to
to provide information about the services of the company and solving queries and issues of the
customers. Front desk officer play role and duties by managing the proper information about the
clients and guests who are entering in the hotel to take benefits of it. If the employees are not
able to perform their responsibilities effectively then the management of the company provide
training and development sessions to them so that they can make improvement in their
competencies and complete their task in effective manner.
Planning performance monitoring- Within it, the management of Holiday Inn will make
plan to analyse the performance of the workers who are working in the organisation. To monitor
their performance, the management will make comparison between the actual performance and
standard performance. Another method can be used by the company to organise appraisal
process and getting feedbacks. Performance monitoring is an effective process because with the
help of the management of the company can easily analyse the capabilities of the employees that
are working effectively or not and able to perform different task in proper manner.
All these planning stages are beneficial for the organisation because they help in making
improvement in the profit and productivity in the business (Ojala and Tenold, 2017). These all
stages are beneficial for planning of the business in effective manner because by making
increment in the sales and productivity the firm can make growth in its business.
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These all areas of business effectiveness are essential for making contribution in the
development of the company through participate. In an organisation, products and services of the
company are main factor of growth and help in generating or earning profit (Campanotti,
Jackson and Tognetti, 2016). In Holiday Inn, the development of the business is totally based on
the services which are provided by the company to provide satisfaction to it customers needs and
demands according to their interest. By suing promotional channels, the firm create awareness
about the services which help in maximizing the sales and productivity. All these activities help
in creating values for the development of the business in effective and efficient way.
AC3.1 Evaluation of the current skills of the management of the staff
The companies need skills to accomplish the task effectively, manager, leaders and
employees are considered as important asset as human resource for the companies. The
workforce of organizations should follow some techniques which differentiate them from others .
Holiday inn's manager define task and activities which should be completed by employees to
accomplish task and objective of organization . Here some skills are explained as: Technical skill: This is also defined as hard skill where the managers of Holiday Inn
should be technically enhanced such as knowledge of language, degrees, accounting,
typing technique, machine operation, programming language and software knowledge.
These skills are acquired with the help of knowledge such as training, coaching and
books. These skills are useful to monitor the computers and software within hotel. Typing
techniques are useful to write emails which are circulated to provide additional
information. Managerial skill: It is defined as certain capabilities and skills of workers and managers
in order to attain the task of organization. Management skills can also be explained as
soft skills because these skills can be enhanced through practical learning. Holiday Inn
leaders and managers use their managerial skills to handle micro and macro
environmental factors. Management skills plays an important role to transfer the
important information and ideas from top level to lower level.
 Operational skill: It define proper handling of current skills gap by different
programmes. Here the proper selection of tools are determined for managing the conflicts
in an organization (Rietveld, Van Kippersluis and Thurik, 2015). The managers of
Holiday Inn assist proper training classes to execute the projects. effective
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communication is very important in operational skill, Without two way communication
the employees can not understand rules and procedures of projects.
Current skills
skills are defined as the ability of an individual which are used to complete the task with
full energy. It is also explained as effective knowledge that enables a person to do something
imaginative and creative (Smith, Stormshak and Kavanagh, 2015). Skills are defined as soft and
hard skill, soft skills are unbuild in an individual which define the behaviour and attitude of
individuals and hard skill are explained as technical skills which are enhanced with the help of
knowledge as training, coaching, books etc. Holiday inn management and staff has skills which
determine their abilities to handle the organization and customers. Communication skill: The communication skill of manager and staff should be effective
to share knowledge and ideas with every individual of the organization. Teamwork skill: The management and staff focuses on group action with the help of
teamwork, here Coordination and cooperation of workers is essential to manage the
projects of Holiday Inn. Problem solving skill: This skill of manager is very important to solve the conflicts of
customers and employees regarding organizational issues.
Decision making skill: This skill of employees and managers should be smart to plan long term
and short term strategies. Proper decisions developed by managers leads to success of
organization.
AC3.2 Justification of the plans for the growth of the skills for management and staff
In organisation management is defined as the total of their manpower efforts and in this their
skills are also included after completing the analysis of them. In holiday inn hotel the staff
which is working is considered as the managerial staff and they are capable to do any assigned
work which is given by their manage. When the manager assign work to them than the skill and
traits of an employee is extended (Thompson and French, 2016). Skill play essential role in every
organisation to perform the task or activities in a good way or in effective way. Holiday. Inn is
currently thinking of expanding its staff skill for achieving the goal and objective of the
organisation. Aim of this organisation is increasing the revenue by 10 % higher in one year. The
objective which is explained is the smart objective of organisation where time , measurable,
determine and define accurate time in which the objective is achieved.
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Skill gap analysis:
in an organisation management required effective skills to perform the task in good
manner. The current skill of staff is include the communication, analytical and periodical skill
and also have the quality of people engagement and ability to people in proper defined manner.
But in order to achieve the smart of objective management need to follow desired which are
explains as follows: verbal skills- non verbal skills, power of communication, ultimate
confidence to the employee, leadership such and democratic, autocratic, laissez fair etc. And the
managerial role which is effective in accomplishing the goal of the organisation (Capewell,
McCartney and Holland, 2015). Leadership style is also considered as the effective skill in which
democratic leadership considered as the best leadership style in which employee are free to
share its point of view with its leader. These skill are found as the skill which has been found
valuable and desired after doing the appraisal and feedback from employees and peers to know
these n skill which is in the staff is relevant and suitable. This has been also defined or
identified that technical skilled are also required in the organization because this is very
effective in saving the time and for reducing cost. This technical skill considered as one the most
effective skill which employee have in organisation. This has been also identify that human
resource skill are also required to achieve defines SMART target before the deadline of this.
Action plan: action plan are define as the plan which is work practically in
organisation. These demanded will be accomplished using the method of training and
development also the part of orientation to creates first of all awareness about these skill (Chang
and et. al., 2016). For maintaining the action plan effectively take the proper action planning
such as practical training, situation to solve these skill in given period of time. In this
expectancy is also high at the time of achieving these skill for management to work in effective
and in the proper manner.
CONCLUSION
As per the above information it can be monitored that business health check is an
effective factor because it help in providing information about the actual condition of the
business s of a company. If there is any issues which is faced by the company the it help in
providing information about it to the management of the company. Business objectives are also
beneficial for the company because by setting the aims and objective the company can effective
achieve the gaol of the company. There are different factors which create impact on the business
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like external factors, internal factors, competitive factors and others. To monitor all of them the
firm can use different analysis like PESTEL, SWOT and Porter's five force analysis etc. For the
development of the business sit can implement growth and development strategies of Ansoff
matrix. For making growth, it can develop plans to improve the business through planing
marketing, financial management systems and planning performance monitoring etc. To evaluate
the skills of the staff the management can monitor different skills of the employees and devise
plans for the development of skills for management and staff.
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