Real Life Case Study Individual Report for Hotel Globe Trotter

REAL LIFE CASE STUDY
INDIVIDUAL REPORT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
USP of the business.....................................................................................................................3
PESTLE analysis of hospitality industry.....................................................................................3
Competitive analysis using Porter's 5 Forces Model...................................................................4
SWOT analysis of Hotel Globe Trotter.......................................................................................5
Key success factors in Hospitality Industry.................................................................................5
Forecasted Income Statement for the year 2024 to 2026............................................................6
Balance Sheet for the year ending 2024 to 2026.........................................................................6
Cash Flow Statement...................................................................................................................7
Ratios...........................................................................................................................................8
Interpretation................................................................................................................................8
Finance.........................................................................................................................................9
Sources of finance........................................................................................................................9
Personal Reflection....................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
A start up is a brand new company that has been set up by one or more business owners
in order to develop products and services that are unbeatable and unique. The main objective
behind developing a start up is to collaborate the efforts of the individuals working within an
organization and innovate something meaningful. The present report is based on setting up a
small hotel in the London, United Kingdom. The current report includes a SWOT analysis,
environmental analysis, and key success factors in the hospitality industry. It also covers a
financial forecast of the start up including an income statement, balance sheet, and cash flow
statement and the ratios with respect to the start up.
MAIN BODY
USP of the business
The start up will be named as Globe Trotter. The Unique Selling proposition of the start
up will to focus on providing the customers with exclusive and premium class services to
customers which helps the hotel in influencing the customers, enhancing the brand image of the
hotel and increasing the satisfaction of the consumers (McKeever, 2018). The main objective of
the hotel will be to provide the customers with a homely yet an exclusive environment merged
with extraordinary services.
PESTLE analysis of hospitality industry
PESTLE analysis is a framework that is used by several organizations in order to
determine the macro environmental factors that affects the functioning of a business
organization. The PESTLE analysis with respect to the Globe Trotter is as follows:
Political factors
The government policies within United Kingdom with respect to the hospitality sector is
getting liberal gradually. On the past two years, due to the outbreak of COVID 19, the hospitality
and tourism sector were badly affected due to the imposition of lock down across the globe
(Fichter, and Tiemann, 2020). But now, the risk of COVID19 has reduced and the government of
United Kingdom is focusing on increasing the tourists within the country by following liberal
policies. This will be a positive factor which will help the Hotel Globe Trotter in increasing its
revenue.
Economic factors

It has been identified that tourism and hospitality are one of the major contributors in the
development of a country. The rise in the income level of the travellers across the world has
given rise to the hospitality industry.
Social factors
The increase in the use of social media also influences the peers of the travellers within
the country and helps in increasing the number of travellers across the globe.
Technological factors
The Hotel Globe Trotter will provide its customers with advanced features within the
hotel such as Wi-Fi, booking through apps and online portals, lifts, intercoms and all kinds of
facilities.
Legal factors
It has been determined that the Government of Europe is providing tax deductions to the
hospitality industry within UK (Chen, and Gong, 2019). This is a positive indicator for the Hotel
Globe Trotter for the purpose of initiating the business.
Environmental factors
In today's world, the customers are well versed with the negative and harmful impacts of
the operations of an organization. Therefore, it is essential for the Hotel Globe Trotter to keep in
mind the environment of the nation and take steps for the same.
Competitive analysis using Porter's 5 Forces Model
The competitive analysis with respect to the Hotel Globe Trotter is as follows:
Threat of new entrants
It has been examined that the hotel Globe Trotter might face difficulties in entering the
hospitality industry in terms of the location. As there are several hotels that already exists within
the London which might be considered as tough competitors for the hotel.
Bargaining power of buyers
The Hotel Globe Trotter will aim to provide the customers with premium services at
affordable prices. Therefore, the bargaining power of the buyers will be low (Ross, and et.al
2019).
Threat to substitutes
The threat to substitute under the hospitality industry will be low as setting up a hotel
requires extensive capital to be invested.