Business Health Check: Assignment Solution

BUSINESS
HEALTH CHECK

Table of Contents
INTRODUCTION...........................................................................................................................3
1.1 Analysing the objectives of InterContinental hotel...............................................................3
1.2 Explaining the factors that impact on InterContinental Hotel..............................................4
1.3 presenting different potential improvement to Inter Continental Hotel................................7
2.1 Reviewing the effectiveness of a business............................................................................8
2.2 Developing plans to improve the business in the context of Inter continental hotel...........9
3.1 Presenting current skill of management and staff...............................................................10
3.2 justifying plan for the development of skill for management and staff.............................10
CONCLUSION..............................................................................................................................11
.............................................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business plays an effective role in an individual's life. This report helps to focus on
specific, measurable, achievable, realistic and timely management of staff as well as
managers. The actual scenario of InterContinental hotel and its objectives will be presented
here. There are more than 4400 hotels of this firm in across world and it provide the best
services to customers. The hotel also uses many strategies in order to attract more
customers. The report also presents different factors which affect the environment of
business such as political, social, economic, environmental and technological, etc. Report
focuses on the strengths and weaknesses of the hotel as well in order to determine its actual
position. By using Ansoff's growth matrix, InterContinental hotel improves its
performance and gain higher profit as well as maximizes sales. It also presents different
plans which help in the growth of business. The report also explains and understands the
key skills of management as well as staff and their coordination will take business at next
level of success. 1.1 Analysing the objectives of InterContinental hotel
InterContinental hotel is an international hotel in UK objective of which is to create a
positive relationship with public and its main target is to attract market with number of
opportunities. They also measure their performance with the help of key performance indicators
which examine their success in order to achieve hotel's strategy. Their main objective is to
generate revenue on a large scale but through lower cost. It has more than 4,400 hotels in the
world and its main purpose is to build great hotel so that people just love to visit here. There is
an increasing competitive environment and to maximize its profit, hotel always take different
steps in order to add more new brands in their list (Gonçalves, 2018). It also provides clean and
attractive rooms to customers with the best possible services. Their aim to generate revenue but
after satisfying the need of customers. There are many big hotels that come under
InterContinental hotel which also provides services to many customers. Hotel also creates
teamwork and their coordination will help in the success of business.
The objectives of hotel meet the specific goals like they wants to maintain long
relationship with customers. It also achieve all the target which are planned for the company in
order to make new innovations , it only based on realistic and attract the customers by offering
many discounts and it provide services timely without any delay.

1.2 Explaining the factors that impact on InterContinental Hotel
Macro environment affects the growth and development of business PESTEL analysis
will he;p to know the different factors and how they affect the growth of business which are
mention below:
Political factors: It has a great impact on InterContinental hotel if there is any
fluctuation in currency then it may affect the InterContinental hotel financial status as the hotel
is in debt and sudden fluctuation in currency will disturb the final status of hotel. Due to terrorist
attack in 2016, the revenue of hotel is decline throughout the year and there is decrease in
percentage of tourism because there is fear among peoples of war (Pestel analysis of
InterContinental Hotel. 2018)
Economic factors: As tour and travel contribute lot in GDP and twith increase in GDP
which affect the industry and there is increase in profit too. There is also increase in oil prices
and due to imbalance in growth and low price in oil, the shares are fallen and this affects the
airlines which affect tourism and there is decrease in the profit margin of hotel industry.
Illustration 1: pestel analysis
Text 1: pestel analysis 2018

Social factors: People travel different place just to enjoy their social life and see
different culture because human being are more curious to examine different peoples and their
culture. As the population increases, their desire to visit all over the world also gets enhanced
and it will create a positive impact on the hotel life because it will help InterContinental hotel to
maximize profit. This hotel easily understands the customer's attitude and behavior which help to
share more beliefs and faith towards the customers.
Technological factors: Technology plays an important role in hotel industry.
InterContinental hotel not only uses new technologies but it also determines which technology
disrupts the company. It also adds many new features such as online bookings and advertise the
same on social media which help to raise the goodwill of hotel (Gonçalves, 2018). It also collects
a lot of data through computer which help to identify individuals. Even they provide digital
customer service which is the biggest reason to attract more customers.
Environmental factors: InterContinental hotel keeps the environment free from pollution
by using green engage system. They always take care of weather and climatic change; they use
the products which are helpful in recycling. Recently, they are planning for water consume
strategies which help to restore the waste water.
Legal factors: A new law had been introduced that is travel restriction which will reduce
the booking in UK up to 70 to 80 percent. InterContinental Hotel face data breach because they
are fail to protect all data which are saved in credit and debit cards and due to this its image is
also deteriorate
PORTER'S FIVE FORCES MODEL
Porter's five forces model will also help to know the InterContinental hotel's growth and
it focuses on competitive advantage in travel sectors. This helps to analyse the key factors of
hotel which are as follows:

Threats of new entrants
 New products and services help to attract more customers Providing products and
services in lower cost will help to maximize the profit and increase sales. New innovative ideas should be applied in the existing products to enter it in industry.
 Bargaining power of supplyHotel should build an effective supply chain to let people
know about their products and services. Doing experiment with the product using different material so that price will go up then
raw material then the company may shift into another (Welford, 2018).InterContinental
hotel should develop third party manufacturer because it completely depends on them and
this third party will help in less bargaining power.
 Bargaining power of buyersCapturing a large number of customers will help to reduce
the bargaining power of buyers and help to maximize the sales with more profit.
 If hotel continuously innovates a new product with the best services, it will help to attract
more customers with great offers and discounts. Introducing new products will help to reduce the competitive power.
 Threats of substitute product InterContinental hotel should reduce the switch cost for
customers in order to reduce the threat of substitute product. Should know the need of customer rather than what they buy from store.
Illustration 2: porters five force model

 Rivalry among existing competitorsTo compete better with the rivals, it is necessary to
build large scale.
 Attraction with competitors will help to increase the market size rather than competing
with small markets.
SWOT ANALYSIS
SWOT analysis helps to know the strengths, weaknesses, opportunities and threats of a
hotel which are discussed in detail below:
 StrengthsThe hotel is continuously generating cash and become asset free by adopting
franchise from US (Lee, Oh and Hsu, 2017).
 As it has wide market which help to earn more profit rather than other of its rivals.
 The hotel easily knows attitude and behavior of customers which help to attract more
customers.
 They mainly focus on customer’s experience and make a strong customers relationship.
 It analysis different environment, then open its new branch which help them in good
experience for guest to meet their need.
 It also allows digital and online booking for the easiness of customers which creates a
strong brand image among its customers.
 WeaknessesIt serves all types of customers other than providing economic class which is
the biggest weakness.
 It also has poor information system when the hotel is affect by the malware and its almost
system are affected in 12 locations. It shift to 3rd position from its second position because the profit margin is quite low due
to its new adopted technology (Andreu, Claver and Quer, 2017).
Opportunities
 Inter continental hotel wants to become branded hotel market from all view through
financially strong and by having good public relationship.
 It increases its international tourist because of its good and best services it take advantages of new technology by booking online for convenience of customers.
Threats

 Airbnd is the biggest threat for inter continental hotel because it mainly focuses on the
experience and also adopt zero model. Airbnb had 10 million stays and can easily attract
lot of customers with their value for money.
 Sudden wars are also affect the revenue of Inter continental hotel
 its main revenue is originate from multinational and local agents who gain their market
share and create impact by its competitors.
1.3 presenting different potential improvement to Inter Continental Hotel
Inter continental hotel is a hotel which provide best services to the hotel in order to
maintain public relations. To improve its performance level it uses Ansoff's Matrix which are
mention below:
Market Penetration:
 Targeting youngsters will help to improve its marketing and loyality.
 Increase middle class customers will help to speed up in business by offering them
different offer and discounts and new campaigns (Tuominen, 2018).
Illustration 3: Ansoff's matrix

 Sponsoring famous international club will help to improving in marketing as well as earn
fame. As new innovative product is launch in market display it using social sites and proper
advertisement, and let people know about new product.
Product Development:
 use new product and transportation system in order to consume time like using
helicopters for transporting special guest will help to attract more customers. Introduce new product with low cost will help to increase sale.
Market Development:
 open many new branches in the countries but those branches are not belong to Inter continent hotel.
Diversification:
 it also provide many new dishes in their hotel like special coffee under its name only .
 It also open branch in sea shore in order to provide more facility to customers and
maintain long public relations.
D2. options for improvement its operations:
The hotel has no proper information system in some locations, they should be improved
with the usage of new technology . The online booking system must be developed and
management should include proper banking system in order to confirm the booking by cash or
net banking system.
2.1 Reviewing the effectiveness of a business
The effectiveness of a business can be done through many points such as :
Products/services:
 Intercontinental hotel provide best accommodation with low price which no other hotel
provide (Segura, Morales and Somolinos, 2018).
 It also has restaurant facility where breakfast, lunch and dinner is available but it is quite
up in range. It also provide online booking but it is not up to the mark.
Marketing:
 whenever new innovative products is introduced, the hotel display it by proper
advertisement

 uses social sites and websites to let people know about their product (Moutinho and
Phillips, 2018). Attend conferences and meeting to understand the addition of new and latest technology
in their business.
Sales:
 as it provide accommodation facility and takes feedback from customers in order to know
its positive and negative points. It also provide different vouchers to visitors and offer discount on staying more than 5
days in a hotel.
Finance:
 the financial status of a hotel is increasing year by year maximizes more profit and increase in sales
Staffing:
 it takes care the whole staff and motivate them for innovations
 coordination between staff and management team is also good but there is
communication gap (Gonçalves, 2018). they understand the need of customer and complete it on time
Business Image:
 it has brand image in whole over the world develop many new branches as to maintain public relations.
Record Keeping:
 As it have good financial status but it's record keeping system is not good
 it does not have proper billing and vouching system
 it have tally operator but all the records are kept on computer only no physical evidence
is available for cross checking.
2.2 Developing plans to improve the business in the context of Inter continental hotel
To improve the business, business planning is needed. Business planning is a process
which done before the actions. In the context of Intercontinental Hotel there is need to increase
marketing and sales because it only display its new product. Proper website should be develop
where images of room with proper description should be written so that people come to know
about hotel's offer and products. Intercontinental hotel has best financial management system but

poor record keeping system, the financial status of hotel is increases year by year and there is
need to improve the books keeping, online billing system is good but there should be hard copy
of bills which help at the time of audit, last seven years of records should be maintained properly
and balance sheet should be filled every year in order to know the current financial positions. As
it does not have proper communication system between staff and management and to improve
this, proper trainers should be allotted who takes care their work and proper seminars should be
organised in order to increase team work (Keinan, 2018). The coordination power between staff
and management team is quite strong, they follow and complete all the responsibilities which are
allotted by the higher authority. The hotel have poor information system, to improve this they
should develop and adopt new technology which help to communicate proper. They should adopt
latest technologies in order to maintain its online booking.
3.1 Presenting current skill of management and staff
There are different skills which staff and management should posses such as
Technical skills: these are the abilities which are needed to perform particular task
Operational skills: these are the abilities which used to perform operations in a company.
Managerial skills: these skill are used by management to perform management functions and
applying multiple roles.
If the staff are expert in technical skills only, then he can only perform in particular task
and other field remains vacant and it will affect the efficiency of company. The company and
staff with management system , all should be transparent and neutral with honesty in their work .
The staff and management should proper communicate and there is no communication gap
between them the goals and aims of hotel should be clear and share with employees because it
will help them to achieve the targets (Cagnin, 2018). Staff should be skilled in every field and
hotel should be hire persons for completing particular task. In order to evaluate the company's
performance they need special skilled staff and management team for extra growth and complete
the targets.
3.2 justifying plan for the development of skill for management and staff
To develop skill in staff and management, firstly analyses their strength and weaknesses
and earn respect of colleagues and get them know on both personal and professional level
through various activity (Cubas‐Díaz and Martínez Sedano, 2018). Proper communication will
also help to develop skills and if they need any kind of help, proper trainer should be allotted in

order to help them. After analyzing them set proper training sessions to develop qualities and
extra technical, operational and managerial skills. If the training session is completed get proper
feedback from the staff and see what they learn from the training period.
It may be possible some learn good things and some did not learn anything and in that
case seminars and training both should be conduct and then get feed back. If it seems that there is
positive impact on staff and management then allot responsibilities to each and every person and
then see the efficiency individually (Welford, 2018). It will help to examine the performance
individually and motivate them to do creative work to achieve the targets of a company. To solve
their problem, hire leaders in order to solve problems. Proper leaders and trainers help the staff
and motivate them when they face any big problems.
CONCLUSION
From the above report it is concluded that Intercontinental hotel is strong financial
company, it has many branches in all over the world. The report presents internal and external
environment which affect the growth of company. The report also presents company's strength
and weakness and also develop plan to improve its weakness. It also shows different key skills of
both management and staff. The report explains Ansoff matrix of Intercontinental hotel which
help to know different new units. The report also explains the key roles and responsibilities of
staff and managers to performing monitor and perform best in business. The overall project is
show and understand different skill and management plans which help to take business in next
level of success.

REFERENCES
Books and Journals
Andreu, R., Claver, E. and Quer, D., 2017. Firm-specific factors and entry mode choice: An
analysis of Chinese hotel chains. Tourism Economics, 23(4), pp.756-767.
Cagnin, C., 2018. Developing a transformative business strategy through the combination of
design thinking and futures literacy. Technology Analysis & Strategic
Management, 30(5), pp.524-539.
Cubas‐Díaz, M. and Martínez Sedano, M.Á., 2018. Measures for sustainable investment
decisions and business strategy–A triple bottom line approach. Business Strategy and the
Environment.27(1). pp.16-38.
Gonçalves, J., 2018. Analysis of F&B best practices in the hospitality industry to improve the
attractiveness of intercontinental restaurant in Lisbon-Akla (Doctoral dissertation).
Keinan, E., 2018. The 82nd Annual Meeting of the Israel Chemical Society, February 13–14,
2017, David Intercontinental Hotel, Tel‐Aviv, Israel. Israel Journal of Chemistry, 58(1-
2), pp.151-175.
Lee, S., Oh, H. and Hsu, C.H., 2017. Country-of-operation and brand images: evidence from the
Chinese hotel industry. International Journal of Contemporary Hospitality
Management, 29(7), pp.1814-1833.
Moutinho, L. and Phillips, P., 2018. Strategic analysis. In Contemporary Issues in Strategic
Management (pp. 46-79). Routledge.
Segura, E., Morales, R. and Somolinos, J.A., 2018. A strategic analysis of tidal current energy
conversion systems in the European Union. Applied Energy, 212, pp.527-551.
Tuominen, M., 2018. POLITICAL ENVIRONMENT AND BUSINESS DEVELOPMENT IN
THE ARCTIC: Strategic opportunities and threats for Finnish companies.
Welford, R., 2018. The launch of a new journal, Business Strategy and Development. Business
Strategy & Development, 1(1), pp.4-5.
Online
Pestel analysis of InterContinental Hotel. 2018.Available
through<https://www.swotandpestle.com/inter-continental-hotels-group-ihg/>