Managing and Running a Small Business in Hospitality and Tourism

This document discusses the key considerations for managing and running a small business in the hospitality and tourism industry. It covers topics such as planning and allocation of resources, customer relationship management, transnational operations, and financial statements. The document provides insights and recommendations for small businesses in this industry.

MANAGING AND RUNNING A SMALL BUSINESS
MANAGING AND RUNNING A
SMALL BUSINESS
 Hospitality and tourism is one of the most important growing sectors in UK that have
generated lot of employment opportunities and revenue for people so that they can live better
live.
 Small business need to be properly managed and controlled in hospitality industry so that
best services can be render to end customers.
 Development and management of customer’s relationship is most essential in hospitality
industry for long term growth and success of enterprise.
 This report is about Verdant leisure that operates in tourism and hospitality to provide better
quality services to customers so it can earn large amount of profit.
 It has covered keys areas such as main consideration that small business needs to addressed
while planning and allocation of resources.
 The report has explained about the process that is used for customer’s relationship
management and the way small business develop transnational.
 It covers key financial statements that have contributed in effective achievements of business
objectives.
 At last it has discussed about several keys legislation that impact on operation of business
for future growth and sustainability.

Importance of planning and allocation of resources in terms of
achievement of objectives
Planning and allocation of resources are two important
processes that helps company to overcome several challenges and
plan strategies for effective utilisation of several opportunities that
are available in market. It helps manager of verdant leisure to
review its current resource and future requirements so that overall
objectives can be fulfilled. Therefore importance of planning and
allocation of resources can be illustrated as follows:
Optimum utilisation of resources: Verdant leisure is a small
enterprise that has limited resources to fulfilled needs of few
individual so top management by planning in advance about
allocation of resources is able to make optimum utilisation and
better satisfaction of customers requirements.
Manage risk and uncertainty: Manager of verdant leisure by
planning in advance is able to identify external risk and uncertain
events thus formulated effective strategies in order to cope up
with risk for smooth operation of business. Thus, company is able
to effectively operates its business and gain competitive
advantages.
Evaluation of techniques and tool that can be used in structured and allocation of
resources
Verdant leisure manager have make used of several key techniques and
tool in order to designed structure and allocate resources to employees so that task
can be easily performed and objectives can be attained. Some of the tools and
techniques that are used by manager to distribute resources for achievement of
company goals can be illustrated as follows:
Float: It is resources planning tool used by manager of verdant leisure that helps
in setting recurring tasks, easy assignment of roles and responsibilities that needed
to be performed by each individual for effective achievement of respective goals.
Schedule view of float have provide manager opportunities to review real time
reporting that helps in tracking effective utilisation of resources, evaluates or
monitor budget of team and forecast team capabilities.
Tree diagram: It is another tool and techniques which helps
manager of verdant to distribute or allocate resources so that firm
can gain competitive advantages. It helps in distribute of
complex task into small categories so that information of each
detailed can be easily examined and task can be performed
within limited time frame. Tree diagram or structure is made to
know about various roles and responsibilities will be performed
by each individual so that specific objectives can be attained.
Activity 1- Various consideration small business addressed while planning and allocation of
resources
Company in order to start and operates its business have to plan its scope of
operation in order to distribute resources within enterprise. There are several
key considerate which have been addressed by manager of verdant leisure in
order to provide qualitative products and services to end customers. Such as:
Identification of human resources: It can be stated that human is most crucial
resources for any organisation as it contributed in conversion of natural
resources into finished products so that requirements of customers can be
fulfilled. Verdant leisure manager have identified existing human resources and
future skilled required so that products or services can be delivered to guest.
Scope of project: It is one the most important factors which is considered by
manager of verdant leisure at time of planning and allocation of resources.
Scope of project refers to actual planning of company to cover specific market
share, manufacture various products and services in order to earn sufficient
profitability. Manager of verdant leisure has identified that company have
limited approaches or scope of project so it have arranged sufficient resources
for satisfaction of customer’s requirements in better manner.
Prepare in advance for uncertain risk: It is another consideration that has
been addressed by manager at time of planning and allocation of resources in
verdant leisure. Manager have identified associated risk or uncertain events that
it employees may get sick, or limited availability of resource or some
emergency case within firm like fire or theft and planned strategies to protect
resources.
Different types of resources that are needed to operate business: There are
limited resources in environment so companies need to make optimum
utilisation of products in order to delivered maximum benefits or values to end
customers. Verdant leisure manager have prioritise about types of resources that
are essential for firm while planning and allocation so that products or services
can be delivered within limited time frame.

Activity -2 Different process of customers relationship management for
small business
Evaluation of manner in which small business can develop
transnational operation
Transnational operation can be one of the best opportunities
for verdant leisure to expand its business operation and market share in
tourism and hospitality sector. Company can easily enter into foreign
countries and takes accurate decision as per market condition of
particular country for smooth operation of business. Benefits and
drawback of transnational operation for verdant leisure can be
illustrated as follows:
Benefits: The biggest advantage of transnational operation is that
company can easily expand its business operation as it can enter into
various countries for generation more profitability. It can also
contributed towards reducing over operating cost of firm as it have
decentralised business operation which means it can hired, recruit
employees, arranges resources at lower cost for satisfaction of
customers requirements.
Drawback: It can be stated that drawback of transnational operation is
that Company have less knowledge about market condition of foreign
country. Therefore it is one of the most crucial shortcomings which can
impact on growth and sustainability of business. At the same time
verdant leisure has less control over business that is operating across
different countries for earning profitability.
Customers are most crucial for organisation as it run its operation in order to fulfil
their requirements in best possible manner so that it can enjoy sufficient amount of
profitability. There are various processes that are used by management of verdant
leisure in order to build strong relationship with customers for long term growth and
success of enterprise. There are five process followed by manager to retained
customers loyalty and satisfaction such as:
Identified target customers and value proposition: Manager have segmented
people on basis of their respective preferences, taste, age, interest and income level in
order to target specific group of customers for increasing sales volume and profit
margin of firm. It has also planned in advance services that it will delivered to target
customers so that they are motivated to select specific enterprise in future.
Defined Customers relationship management strategy: It can be stated that
manager of verdant leisure have planned effective strategies such as use of digital
media to market or create awareness about company products and services among
large customers so that they can be motivated to make select their company as
compared to other competitors.
Manner in which customers needs to handle: Verdant leisure have planned in
advance manner in which different customers needs to be handle so that no
complication can be created in future circumstance and needs of guest can be fulfilled
in effective manner.
Selection of CRM software for measurements process: Manager have make used
of software in order to measure performance of its strategy so that appropriate action
can be taken for growth and expansion of business.
Reengagement of customers: Digital medium had been used by manager of verdant
leisure to reengage customers with company such as it have send email, post various
promotional offers on official sites so that people may have a look and select best
possible option for fulfilment of their respective requirements.
Recommendation
Verdant leisure in order to make optimum
utilisation of transnational strategy have to conduct
market research in order to know about taste and
preference of customers, technological development,
income level of customers and so on. It can use digital
medium to create awareness among customers about its
various operations in different countries so that they can
take right decision to select specific products and
services of firm.

Activity 3- Analysis and interpretation of key financial
statements
Importance and application of cash flow statement: It can be stated that cash flow statement helps to understand
in and out flow of cash from business. Cash flow statement is important for verdant leisure as it explained or warns
company that it does not may have enough cash to meet several operating expenses. Company is able to know in
and out flow of cash during annual year such as payment to supplier, amount due from creditors or received from
customers.
Importance and application of Break even analysis: It is economic tool that is used to find relationship between
variable, fixed cost and revenue of firm. Verdant leisure by application of break even analysis is able to find cost at
which it needs to sold units of products or services to customers in order to earn profitability.
Contribution of key financial statement in successful management
Financial statements are formal record of business that are made in order to provide information to investors,
government and customers about market position and profitability of firm. Cash flow statement, balance sheet and
income statement are key financial statements that have contributed in effective and successful management of
organisation.
Profit and loss: It comprises total expense, cost and revenue earned by verdant leisure during specific period of
time that is in an particular year. Verdant leisure manager is able to know overall profit it earned after paying
several expenses or cost incurred in manufacturing of products and services of company. Thus, formulate effective
strategies to manage loss or extra expense so that maximum value or benefits can be renders to end user.
Balance sheet: It is core financial statement which is used to evaluate performance of business in hospitality and
tourism industry. It comprises of total assets, liabilities and stakeholder equity of verdant leisure that have attracted
more investors to plan to invest their capital in enterprise in order to earn more return on their investment.

Break even analysis and Cash flow forecast
The main aim of cash flow forecast is to predict actual amount of capital that will be needed by enterprise to
cope up with future uncertain changes and effective delivery of products and services to end customers. Company
have sufficient amount of cash which helps manager to knows key areas in which it need to invest in order to
maximum return and effective achievement of organisational goals.
It can be illustrated from break even analysis that Verdant leisure has stable and strong position in tourism
and hospitality industry as it is able to meet all fixed cost of firm. It can be illustrated that verdant leisure has high
sales volume and customer’s satisfaction which contributed towards increasing profitability of firm. Company
have effective control and monitor its cost so that maximum numbers of customers are influenced to make
purchased for satisfaction of their respective requirements. Break even analysis also helps verdant leisure to set
specific target that it wants to achieve in near future in order to gain competitive advantages. Therefore it can be

P7 MajorLaws, Regulations and Legislations That Can Influence and Impact Operations of Small Business
Organisations and Social Enterprises
There exist various legal laws, regulations, rules and legislations which are legally mandated by the governing
authorities of UK to be mandated by all the various types of business organisations that operate in the country, with
these regulations, laws and legislations having an immense impactonthe overall operational and financial performance
of the small sized business organisation such as French Popotte. The most significant legal laws and regulations are as
follows:
Health and Safety at Workplace Act of 1974: All business organisations in the UK are legally mandated to adhere to
this legislation, which requires the business organisation to carry the onus of providing their workforce and employees
with a safe and healthy working environment which does not jeopardise or endanger the physical or mental safety or
health of their employees in any manner while conducting their daily operations for the business organisation (Motter
and Santos, 2017). Through this legislation, French Popotte is legally mandated to provide to its employees all the safety
equipment and apparel that might be required to ensure their physical safety and health at the workplace such as safety
shoes, google, helmets etc., The business is also legally mandated to train all its employees to ensure that their physical
health and safety is not endangered in any manner while operating at the workplace. Failure to comply with this
legislation can result in cancellation of license and legal litigations for the business.
Minimum Wages Act of 1998:This is also another legally mandated legislation which requires all small sized
businesses to at least pay their employees and workers the minimum amount of salary and wages that have been created
and set by the governing authorities of UK (Mendes and et.al., 2017). This act ensures that no business organisation is
able to take unfair advantage of their workforce and failure of a business to comply with this act can also result in the
cancellation of license and legal litigations.
CONCLUSION
Through thisfactsheet, it is concluded that various managerial operations are required to be conducted in an
immensely effective and efficient manner in order to ensure that a small sized business organisation such as French
Popotteis able to operate successfully within the hospitality industry. This factsheet the main considerations for small
sized businesses such as French Popotte when planning and allocating their organisational resources. The factsheet also
assesses the customer relationship management process for French Popotte. Then the factsheet evaluates transitional
development of small businesses and their drawbacks and advantages. Further the factsheet designs an annual monthly
cash flow for French Popotte and details its fixed and variable operational costs. Further the factsheet also applies break
even analysis to the operations of French Popotte. The factsheet also evaluates the financial statements of French
Popotte and assesses how these contribute to the effective management of the business. Finally, the factsheet determines
the key regulations and legislations that impact the operations of small businesses such as French Popotte.

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