Business Health Check Report

The Business Health Check Report is a detailed document that assesses the organisational context, focuses on elaborating the business structure and managing operations. It includes analyses such as SMART objectives, PESTEL analysis, SWOT analysis, and Porter's Five Forces model for a chosen organisation. The report also evaluates development skills and management of staff members and justifies plans for skill development.

BUSINESS HEALTH CHECK

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Objectives of the business.....................................................................................................1
1.2 Factors that impact on the business.......................................................................................2
1.3 Potential improvement to the business organisation and operations....................................4
TASK 2............................................................................................................................................5
2.1 Effectiveness of the business................................................................................................5
2.2 Plans to improve the business and clarify their values.........................................................6
TASK 3............................................................................................................................................7
3.1 Measurement of current values of management and staff....................................................7
3.2 Address and justify the plans for the development of skills for management and staff.......8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business health check indicates towards evaluating the plans and strategies in terms of
boosting the structure of organisation. Business health check is mainly associated with
evaluating the health of business which contains measurement of strength and weakness of
organisation for effective evaluation (Harshbarger and et. al., 2017). This helps to check viability
of organisation in order to determine the business context. This report is prepared to analyse the
objective of the business, factors that impact on the business, Develop plans and strategies
defined in this context. Business effectiveness, development plans to enhance the business and
values are justified below. Skills and managements are also defined in organisational context.
Intercontinental Hotels Group travel and tourism industry is selected organisation to address the
requirement of business.
TASK 1
1.1 Objectives of the business
Overview of business
Objectives and aim of the business are the essential aspects in terms of growth and
development of organisation. It is considered the effective strategy and plans are the key
elements which leads organisational structure towards its desired success. Intercontinental Hotels
Group objectives are centralised around it's strategy which is which is providing true hospitality
for every one. This is the main aspect which remain associated with preparing plans regarding
improving quality and customer satisfactory hospitality services.
As pre strategic report of IHG, organisation is focused towards its core business
operations, create values, diversify and inclusive culture which embodies our commitment to
deliver true hospitality. Its main target is to launch a new three year IHG responsible business in
the four areas which are Environment suitability , community impact: our people and responsible
procurement (Forbes and Watt, 2015). Intercontinental Hotel Group Plc is one of the leading
international hotel company which is working almost 100 countries and have a broad portfolio of
hotel brands. IHG started its journey form 1777 from brewery in Burton on Trent, UK. In 1949,
Fist intercontinental Hotel were established in Belem, Brazil. Till 1999 organisation be able to
acquire 500 sites from punch Taverns.
Short term objectives of IHG
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IHG is concerned with its short term objectives and plans to assist the organisational
structure with in the organisation. Main short term objectives of organisation is to create values
and brand image in local areas. As per the Chief Executive Officer's statement looking forward
and anticipating, targeting, plan, believe, aim, goal and intended to similar aspects related to
defining the Intercontinental Hotel Group. This statement also indicates towards inherently
predictive, speculative and remains involve in risk and uncertainty. This mainly associated with
assigning the risk and assessment for developing strategies and plans. Gaining stakeholders
interest and reputation is one of the short term objective of organisation.
Adhering compliance strategy to develop a transparent hospitality structure is also one of
the short term objective with in the organisation. This is the main factor which affect the
business and financial results related to strategic reports.
Short term objectives
 To attain standard and quality management in hospitality organisation
 To build a leverage scale
 To enhance revenue delivery
 Evolve owner proposition
 To optimise preferred portfolio of brand
Long term objectives
 To achieve long term high quality suitable growth in cash flows and profits
 To get sustainable growth and development
 To create great hospitality structure across the globe.
SMART Targets of IHG
This defined the clear aim and objectives related to achievable goals (Craven and
Harris, 2017). SMART objectives is one of the strategic tool which clearly defines the aim and
objective of organisation. SMART objectives classify the goals and objectives for stakeholders,
shareholders, directors and members of organisation. SMART stands for Specific, Measurable,
Attainable, Relevant and Timely.
Specific:Launching environmental sustainability, and community impact is the specific
objective of IHG.
Measurable: Effective evaluation and measurement of performance evaluation is one of
the measurable target which is considered essential.
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Attainable: gaining the customer interest and providing True hospitality is considered as
attainable targets of IHG. This mainly associated with core objective.
Relevant: managing the operations and management as per client perspective is one of
the essential objective which reflect the relevant nature of organisation.
Timely: As per chief executive statement organisation is seeking towards implementing
four business targets as environmental sustainability, community impact and people responsible
procurement shows the timely objectives.
1.2 Factors that impact on the business
PESTEL analysis of IHG
Intercontinental hotel group is seeking to expand the operation and management of
business in Asian countries (Zipperer, 2017). By considering business expansion plan PESTEL
analysis done below;
Political:There are diverse political situations are found in Asian countries such as
Phnom Penh and Cambodia. IG have to deal with the protesters and the management have to
deal with this protesting business culture of organisation.
Economical: As per global economic report the GDP rate has been increased by 0.8% in
the third quarter of 2017 and and there is a huge contribution was recorded by the hospitality
industries in Cambodia. It increased by 0.7% and the output was recorded as 1.4% in aggregate,
0.05% was recorded in construction and 0.7% was recorded in services (PESTEL analysis of
Intercontinental hotel group, 2017).
Socio cultural: It is seen that obesity is one of the major problem in US and Asian
countries. People are seeking for quality standard food products and lifestyle. It indicates
towards favourable outcomes for IHG.
Technological: Telepresence robots, artificial intelligence and MIS are some
technological factors which remain associated with analysing the shortage of staff members and
raw material stick with in the organisation (Vos, 2015).
Environmental: Hospitality is closely linked with the environment and the environmental
factors. In European countries consumption level of coal, electricity which mainly affect the
environment.
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Legal: There are some rules and legislations that are passed recently in US regarding
same sex marriage which opened more opportunities for hotel industries for designing rooms and
themes.
Porter's Five forces model
This is also an analytical tool used to evaluate the competitiveness of organisation in
current market and analyse the potential areas to improve and maximise profitability. Basically,
this tool evaluate the competitiveness parallel to other similar organisations and framing of
market strategies and plans accordingly.
Conflicts in entry: There is a competition increasing in hotel industry subject to price,
cost, value proposition to clients.
Threats of substitutes: There are substitute services are also provide by the competitive
organisation which may attract clients perspective towards organisation (Streiner, Norman and
Cairney, 2015). Drop box, mail services, customer care services are some substitute services
provided by organisation.
Competitive rivalry: For Hilton hotel group, Marriott hotel groups are some competitive
organisations considered as rivalry organisations.
Bargaining power of buyers: Clients demand for regarding discount, offers, extra
services at minimum prices. IHG have to deal with its customers and provide exited offers to
visitors (Nelson and Staggers, 2016).
Bargaining power of suppliers: There are number of suppliers found in terms of
providing raw material at regional price.
SWOT analysis of IHG
Strength
 Strong base of assets and capital
structure
 Wide geographical presence
 occasion wise brand portfolio Successful employee engagement
Weakness
 Prices of hotel room services are high
 lack of accurate information and
security standards.
 Dropped to 3rd position in hospitality
organisation
Opportunities
 Opportunities to develop hotel market
 enhance the international travelling
Threats
 Threats of changing economical
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industry Chances to adopt the advanced
technological fields
structure
 Uncertain events and accidents
 Dependency upon intermediators
1.3 Potential improvement to the business organisation and operations
Improvement areas and sections are available in every organisation. Sustainable growth and
development is majorly based upon improving the lagging areas and sections which remain
avoided form management perspective. This mainly associated with analysing the existing
marketing strategies and plans (Jepsen, Troske and Coomes, 2014). There are several types of
management strategies and market plans are required to be considered in Ansoff growth matrix
which mainly associated with exploring the existing market share of organisation.
Ans off growth matrix
this is one of the strategic tool used to explore existing market share of organisation by
analysing overall market position.
Market development: Current market statistics of Intercontinental Hotel Groups is in
strong position. As per chief executive report published in December 2016 shows 9.5% increase
in current hotel market and the profitability increased by 23%. the cash generated model
underpins the business decision models up to $400 million and the proposed divided was counted
as 11%.
Diversification: There is a diversification found in terms of market share. Organisation is
seeking towards exploring the services as per requirement and needs of clients and visitors of
Asian and Chinese. Price of product and services raised in these countries. It is one of the
essential aspect in terms of dividing the services in various form.
Market penetration: Intercontinental Hotel Group changes changes the existing price
and cost structure of products and services (Capewell, McCartney and Holland, 2015). With
some major and minor changes in product and services organisation is trying to expand the
hospitality industry in Asian countries and Chinese countries. There are vast opportunities terms
of expanding the market in Americas, European AMEA and G. China.
Product development: There are type of products and services provided by organisation
as room services, conference halls, Banquet halls for office parties, weeding ceremonies,
personal parties etc. it also provides hospitality services to outsiders rather than hotels.
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TASK 2
2.1 Effectiveness of the business
Business effectiveness stands for analysing the capacity of completing the task and
projects without consuming and wastage of time and resources. IHG plc is is one of the
successful and reputed hospitality industry in the UK. Intercontinental hotel group achieved
success in terms of profitability and financial stability. Effectiveness of business can be
evaluated by following areas :-
Services and products: There are hospitality services majorly provided by organisation
as rooms services, vacation services are the essential key services boosting the revenue records
of organisation.
Marketing: IHG has a strong market structure as per the sustainability report
organisation be able to achieve the target of establishing 150 hotel franchise in term of deriving
the strategies and plans. Kimpton hotels and restaurant chains, Indigo hotels and the HUALUXE
are the hotel chains which are key units of IHG plc.
Sales: Sales records shows positive figures as per 2016 financial reports sales was
counted as £1715 million and £1803 million for the year 2015. the sales was decreased during
the year 2016 due to rises in tax rates and policies changes. There is -4.9% change was recorded
for the year 2016.
Finance: As per analysis of financial reports $400 millions special dividend to be
proposed till the end of financial year 2017. there was an increment of 11% recorded in terms of
proposing dividends for the financial year 2017. Global comparable RevPAR increased by 1.8%
and led by rate up 1.2% and the records were qualified as full occupancy. Net Room growth was
recorded as £24.5 billion in total and the gross revenues are counted as 2% incremental growth
(Bernstein, 2017).
Staffing: There are 375000 people are working at present across in 100 countries. There
are type of recruitment and placement strategies adopted by organisation in terms of maintain
professionalism in hospitality industry. Eligibility, skills, qualification and abilities are critically
analysed before placing employees within the organisation.
Business image: IHG has a brand and fair image not only in the UK market but also
across the globe. It is famous for providing luxury hospitality services. At present organisation is
providing services in Asian, European, China and north American countries.
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Record keeping: There is a proper data retaliation policy is adopted by IHG in order to
maintain records of staff members, financial records, records related to products and services
provided by organisation during the year. Proper management and control only become possible
with appropriate finance, administration records. It also affect the management strategies.
2.2 Plans to improve the business and clarify their values
Growth an development of organisation depends upon innovative ideas, approaches,
technologies. By implementing effective strategies and plans and better evaluation methods
performance of organisation can be emerged and boosted. It is very important for organisation to
develop the business plans by considering sales and productivity, financial management, roles
and responsibilities of staff and management, performance monitoring, information handling and
administration are essential aspect in terms of managing business plans.
Financial management
There is a specific share and provision is decided in terms of managing the financial
resources of organisation. Funds and provisions are categorised as funds for product
development, funds for research and development, reserves for investing in innovations and
development.
Performance monitoring
Organisation is concerned with its customer loyalty and brand image. IHG is maintaining
its brand franchises by adhering adequate performance monitoring tools as internal audit,
standard quality control, rules and relations related to gust safety, data integration, safeguards to
health and safety are some major elements which are considered in performance monitoring.
Financial management and administration control are two main aspects which are
considered subject to in this context to elaborate the essential aspect in terms of achieving the
financial stability and management.
Information handling and administration
This is integrated that how crucial information and data are maintained and utilised for
preparing growth and development plan (Core values and strategies of Jaguar, 2016.). There are
type of information as growth and strategic cost reports, strong fee cash flow generation, fuelling
investments, occupancy and rooms division related informations used for effective management
and control.
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TASK 3
3.1 Measurement of current values of management and staff
Effective team management and staffing is one of the effective aspect for developing the
plans and strategies for better evaluation and plan. As per staff and member loyalty reports there
IHG has set the benchmarks in hospitality industry. It has achieved various hospitality rewards
and recognition at domestic and international hospitality industry. IHG is operating one of the
leading cloud based guest reservation and staff management system to track on roll and being out
in 2017.
As per digital revenues of £4.3 billion and up to £0.3 billion year on year, delivering over
50% digital traffic and £1.6 billion subject to gross distribution of salary to staff members and
employees. There are also some health and safety feature defined in this context subject to
elaborating the gross revenues and globally of 60% of direct booking in greater china.
Recently, IHG awarded with best employee and staff management. As per the report and
the total assessment and contribution paid by hotels to the system fund in 2017 were £1.9 billion.
As per capital allocation structure ratio in terms of distribution of salaries and contribution also
managed in well organised manner so that good and healthy employee relations.
Current skills
At present organisation is focused around improving skills of handling guest flows and
effective addressing skills. Front office services, training and development services. Proper skills
and development programs and evaluation approaches are adopted by organisation to improve
quality are the essential aspect in terms of deriving business operations and management.
Team management skills
Management and leadership skills are the essential elements of organisation in terms of
managing and operation the business at its desired success. IHG has great team of managers and
leaders in terms of effective management and skills for sustainable development and growth of
organisation.
3.2 Address and justify the plans for the development of skills for management and staff
New inventions, innovative approach, advanced technology, Artificial intelligence are
some essential elements which are considered in future skills and development plans. There are
some supplier's skills and managements are defined subject to defining strategies and plans for
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shares in skills forum subject to best practices and challenges (Abdelhak, Grostick and Hanken,
2014). IHG is seeking towards establishing and enhancing the business structure at global level.
At international level there are challenges regarding legislations, permits, international
competition faced by IHG. To over come these challenges and plans organisation is adopting
competitive strategies and skills development plans.
Skills to be Develop
Royalty Club is one of the essential aspect in terms of diving the skills and management
of business operations in effective manner. IGH launched the Royalty club scheme for its
potential clients and customers. This scheme have some drawbacks in terms of profitability and
royalty. This mainly associated with analysing the current skills and management of employees.
Skills and development program in terms of developing the skills and management related to
handling and operating the software and programs considered in this context.
Advancement and technology
There are technology skills and management developed for developing the structure in
terms of better execution and enforcement of work ability to work. IHG has adopted advanced
management information management system to keep the records and aligning the information
for more effective and execution and evaluation of strategies and plans which are considered
while sustainable growth and development of organisation.
Robotics and artificial intelligence is also one of the essential aspect in terms of deriving
the skills and management of staff members and management.
CONCLUSION
As per above defined report, importance of business health check defined in
organisational context. Focus of the business done subject to elaborating the business structure
and managing the operations defined in this context. SMART objectives, PESTEL analysis,
SWOT analysis, Porter's Five forces model are defined subject to chosen organisation. There is
an evaluation of development skill and management and staffs defined in the above report.
Justification of plans for the development of skills for management and staff done in the end of
this report.
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REFERENCES
Books and Journals:
Harshbarger, C. and et. al., 2017. Positive health check: developing a web-based video
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Forbes, H. and Watt, E., 2015. Jarvis's Physical Examination and Health Assessment. Elsevier
Health Sciences.
Craven, R. and Harris, A., 2017. The Check-in Strategy Journal: Your Daily Tracker for
Business and Personal Development. John Wiley & Sons.
Zipperer, S., 2017. Health Check. AJN The American Journal of Nursing. 117(11). p.41.
Vos, M., 2015. Communication Health Check: Measuring Corporate Communication
Performance. Journal of Business Studies Quarterly. 7(1).
Streiner, D. L., Norman, G. R. and Cairney, J., 2015. Health measurement scales: a practical
guide to their development and use. Oxford University Press, USA.
Nelson, R. and Staggers, N., 2016. Health Informatics-E-Book: An Interprofessional Approach.
Elsevier Health Sciences.
Jepsen, C., Troske, K. and Coomes, P., 2014. The labor-market returns to community college
degrees, diplomas, and certificates. Journal of Labor Economics. 32(1). pp.95-121.
Capewell, S., McCartney, M. and Holland, W., 2015. Invited debate: NHS Health Checks—a
naked emperor?. Journal of Public Health. 37(2). pp.187-192.
Bernstein, A., 2017. Undertaking legal audits to check the health of the home. Nursing And
Residential Care. 19(12). pp.700-702.
Abdelhak, M., Grostick, S. and Hanken, M. A., 2014. Health Information-E-Book: Management
of a Strategic Resource. Elsevier Health Sciences.
Online
Core values and strategies of Jaguar, 2016. [online]. Available
through:<https://www.jaguar.in/fleet-and-business/why-choose/technology-and-
innovation.html>.
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