Social Welfare and Smart Grid Development

The assignment delves into two distinct yet interconnected topics: the impact of social welfare reform policies on vulnerable populations in the UK, drawing upon qualitative research studies, and the development and application of smart grids for energy management within communities. It requires analysis of academic papers examining both social welfare challenges and technological advancements in areas like demand-focused energy solutions.

Individual Report

EXECUTIVE SUMMARY
Smart Fast Hostel is an attempt to alter the manner in which hostel are views by travellers
visiting the United Kingdom. The flexibility and private accommodation which has been desired
by contemporary travellers is being provided by building technology oriented hostels. The
present of such accommodation over online platforms have given it the much needed push to
develop in the UK market. The reliance on technology has ensured that there is minimal errors in
service delivery but are provided with essential human interactions so customers are left with an
unmatchable experience.

CONTENTS
Contents...........................................................................................................................................2
CHAPTER 1: Introduction..............................................................................................................1
CHAPTER 2: Development Plan....................................................................................................1
CHAPTER 3: Feasibility of the new product/ Service....................................................................2
CHAPTER 4: Sustainability of new Product/ Service....................................................................4
CHAPTER 5: Factor that limit development of product/ Service...................................................6
CHAPTER 6: Conclusion................................................................................................................8
REFERENCES................................................................................................................................9

CHAPTER 1: Introduction
Hospitality industry is an organisation which is known to deliver services relates to
housing and entertaining of guests. It is referred to be one of the most crucial industries in the
United Kingdom prior to the rise of the travel and tourism in the country (Caragliu, Del Bo, and
Nijkamp, 2011). The hospitality sector comprises of the numerous segments such as hotels,
hostels, restaurant and pubs. The contribution of this segment in the economy of United
Kingdom stands at 4%. Hostel can be referred to a crucial element of the hospitality industry in
the United Kingdom. They are known to deliver budget-oriented services to traveller ranging
from lower middle class. They are often perceived to be properties who are known to offer
shared accommodation to people across the country.
The concept of Smart Hostel is relatively a newer concept which aims to deliver better
service through reliance on technological developments. This report focuses on the Smart-Fast
Hostel, it is an smart hostel which is emphasizing on providing services at the affordable rate.
The report will focus on the considering feasibility of this organisation in the market of the
United Kingdom. The sustainability of this business will be measured along with identification
of the factors which lead to limit the growth of this business in the market so that they could be
addressed (Biswas and Kobayashi, 2013).
CHAPTER 2: Development Plan
The development plan of the hostels in the contemporary market can be ascertained
through undertaking a competitive analysis. The analysis helps in determination of the factors
which can be termed as favourable for the organisation. The application of porter's five forces
will help in forming a development plan for hostel in the contemporary hospitality industry. The
various elements of the porter's five forces are as follows:
Competition in the industry: It can easily identify that there is an intense competition in
the hospitality industry in the United Kingdom. There are numerous organisation catering similar
services and there is a low switching costs for consumers. There are numerous hostels which are
offering up-to-date services to people at competitive prices. The name of such rival organisation
are YHA, Generator, Joe&Jo, St. Christopher which have been able to successfully establish
themselves in the market and are earning good profits. Therefore, this smart hostel brand to make
sure that services offered are at par with mentioned hostel organisations.
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Potential of new entrants in the industry: when considering the hospitality industry it is
comparatively difficult to venture due to requirement of the high capital cost. Whereas, presence
of hostel businesses provides an opportunity to investors to venture in hospitality segment with
lower capital. The presence of such established businesses makes it difficult for new organisation
to venture in to the segment and sustain their operations in the business for longer generations
(Patrick, 2014). Therefore it can be determined that it is relatively easier for investors to venture
in hostel business but scenario is not the same in case of hotels.
Bargaining power of suppliers: The bargaining power of suppliers in hospitality industry
is less. The power in this case lies with personnel as there is a huge demand for the people in
mentioned sector. But to be on the safe side, organisation have been making efforts to achieve
operational efficiency so that better results and profitability could be achieved. The presence of
cost advantage to an organisation will cater a business with the competitive edge.
Bargaining Power of Buyers: The buyers in hospitality sector possess a greater
bargaining power due to availability of numerous choices. The consumers can exert great
pressure on the hospital organisation to deliver qualitative products and services. While
evaluating bargaining power of clients is considered bulk consumption is considered. The buyers
from various schools and universities can exert pressures on hostel businesses to offer suitable
services and that too at affordable prices. Therefore it is very important for Hostel businesses to
fulfil their demand to achieve higher sustainability.
Threat of substitute products: there is a high threat of substitute as none of the
organisation catering their operations in the hospitality domain has been successful in forming a
distinct image in the minds of the consumers except for Airbnb. There is an absence of right
marketing strategy which will be employed by an organisation to form a distinct perception
relates to products and services of an enterprise. There lies a great deal of price sensitivity
amongst buyers and marginal shift in prices or service will drive away customers (Dacombe,
2011).
CHAPTER 3: Feasibility of the new product/ Service
Feasibility study focuses on the conducting an assessment so that it can be analysed
whether undertaking this business will be viable or not. This concept focuses on the undertaken
business ventures so that it can be identified whether undertaking such business will be profitable
in the longer run or not. A business is considered feasible when it is able to earn sufficient profits
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and cash-flows. The concept of smart hostel can be termed as a newer concept therefore it is
essential to conduct a feasibility study so that decision can be formulated. The crucial elements
of the feasibility study are as follows:
Industry Feasibility: This segment focuses on determination of the attractiveness of the
industry for a new business. The concept of Hostel business emerges as feasible relating to this
industry and can be evaluated through success which has been obtained by organisation such as
Airbnb and generator. The capital requirement for venturing in this segment is relatively smaller
and scope of expansion in hospitality sector is great as well (Tushar and et. al., 2016). The rise
in globalisation has made sure that there is more inflow of visitors from other nations. The niche
segment which has been opted for this segment are student belonging to various institutions and
universities ranging in the age-group of 18 to 35. the reason being this niche is considered
profitable is that student generally does not possess higher spending power which restricts them
from using services of a hotel therefore concept of smart hostel can be profitable for an
organisation.
Product or service Feasibility: This element of the feasibility study focuses specifically
on the products and services which are to be offered by the organisation. The demand of those
services is considered in the context of the market so that viability of the business could be
identified (Watts and et. al., 2014). The various services which are being offered by this
enterprise will be online booking services, automated check-ins, room and bed upgrades and
additional 24*7 services.
The furthermore evaluation is being considered on the aspect that mentioned services can
be offered to client in a profitable manner or not. The level of competition is considered and have
identified whether such competitive prices can yearn profits for businesses. All these aspects are
identified through conducting a primary and secondary research which assures that all the
aspects are covered.
Financial Feasibility: The concept of financial capital helps in identifying amount of
start-up capital which will be required to initiate the business of smart hostels. The crucial
purpose behind conducting a financial feasibility revolves around consideration of financial
aspects of business such as capital, expenses, revenues and income.
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It can be said that financial analysis of an organisation will consist of 3 crucial elements
which are to be emphasized so that better results are fulfilled. The brief mention of vital elements
for financial statement is as follows:
Capital Requirement: there is a decent amount of capital requirement to venture in the
hospitality sector. The technological factors which are to be incorporated will cost business
sufficient amount of funds. The capital requirement for this business will be ranging between
50,000 to 100,000 euros.
Financial projection for future of business: the projection for the future can be carried out
effectively with the help of break-even analysis which help in determining the time in which
business will be achieve no profit and no loss situation (Viitanen, Connell and Tommis, 2015).
Interpretation: it can be interpreted from the above analysis that there will be a requirement
of approximately 18,000 euros per month to achieve break-even point and anything beyond that
can be referred to be profit for this organisation. Considering the circumstances of environment,
this target seems achievable during the peak season very easily.
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Cash flow statement for Smart-Fast Hostel
Balance sheet for smart-fast Hostel
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CHAPTER 4: Sustainability of new Product/ Service
Sustainability is defined to measures with which an organisation is able to maintain their
operations in market for longer durations. The services which are offered by an organisation
must possess an operational efficiency along with ensuring that there is a minimum negative
impact upon the environment (Brotherton, 2012). The service in the hospitality sector is mostly
intangible but requires contribution of the various factors and resources to accomplish the same
in the ideal manner. The organisations which are catering their services in hospitality sector are
enforced to review the system through products and services are offered to people. The emphasis
in this sector is on delivering right quality services along with considering its effect on the
environment and ultimately minimising the same.
The concept of ethical tourism is very popular now-a-days which focuses on providing numerous
benefits to people along with considering environmental factors. This concept mainly focuses on
the issues which relates to social injustice, human rights and welfare of animals as well as
environment. This latest concept pleads people as well as the industry to avoid participating in
the activities which tends to create a negative impact on any of the above mentioned components
(Law and et. al., 2013). The attempts with this approach are undertaken to make people aware
about responsible tourism as it can be a huge encouragement to communities who are relying on
tourism activities. There are numerous elements which analysing sustainability of upcoming
venture of smart hostels in the United Kingdom. The characteristics which are essential in
sustainable tourism are as follows:
Customer Satisfaction: The first and foremost feature which is crucial in incorporating
sustainability in services is customer satisfaction. It states the capability of offering to satisfy
needs and demands of the consumers when failing to do so, services which have been provided
by this organisation will become useless and economically unrelated. The concept of smart
hostels is aiming to fulfil needs of people who are belonging from a socially backward class and
still wish to travel the world. The services which will be offered to visitors such as self-check in
system and online booking will match with the services that are offered by multinational
corporations and will be affordable as well which will fulfil the needs and expectations of
visitors.
Dual focus: It is essential for an enterprise to be concerned of social and ecological issues as
well so that development of sustainability practices and policies takes place. The brand Smart
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Fast host attempts to create an unmatchable environment with the help of technology so that
wonderful experience for the consumers could be created. This enterprise is attempting to
streamline its operations so that there are minimum wastages in terms of resources and efforts
along with creating interactions which would be helpful in delivering services as per their
requirements (Pechlaner and Volgger, 2012).
Life cycle orientation: It can be said that services acts as a solution to persistent problems or
challenges in the society. Therefore every service provider should make sure that their offering
should be able to provide solutions to issues at all life cycle stages. The hostels are known to
offer budget accommodation to people amidst of the inflation in the market and help them in
fulfilling their dreams and wishes of travelling in a cost friendly manner. This enterprise must
make attempt relating to reusing and recycling of products so that there is minimum use of non-
renewable raw material.
Continuous improvement: The approach to continuous improvement makes sure that
services are improved overtime with the use of upgraded technologies, expanded knowledge and
influence of normative factors. The concept of continuous improvement is referred to be a
crucial characteristic of the sustainability in business operations as it ensures that services are
delivered in an improved manner with minimised use of resources and factors of production
(Slåtten and Mehmetoglu, 2011). It has become crucial for organisation to consider strategies of
continuous improvement as conditions of the market along with customer requirements are ever-
changing. The economic efficiency which has been attained by the business provides a
management to perform under difficult economic circumstances. The reliance of Smart Fast
Hostel on technology will be much appreciated by the customers and innovative practices which
are undertaken will make sure sustainable products and services are offered to travellers.
CHAPTER 5: Factor that limit development of product/ Service
It can be identified that there are numerous factors in business environment which pose as a
major threat hindering the development which could be achieved by this organisation. To
conduct examination of the business environment PEST analysis could be undertaken. This
analytical tool helps in identification of the negative influence of the factors pertaining in
external environment of a business organisation. The discovery of threat which relates to
development of Smart Fast hostel will help in making decisions which relates to future strategies.
Brief descriptions of elements of PEST analytical tool are as follows:
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Political Factors: It can be said that tourism/hospitality industry in the United Kingdom is
too vulnerable to factor which lies in the external environment. The political factors create deep
impact on this industry. The recent instability on the political grounds as Britain decided to exit
European Union. These disturbances on the political grounds have let a noticeable impact on the
hospitality industry in the United Kingdom which now perceived as less attractive by the visitors
of the neighbouring nations (Ali, Amin and Cobanoglu, 2016). Another factor which can be
referred to be threat of smart hostels is instance of terrorism in the country. Such instances make
embed fears in the minds of visitors. The secondary factors which tend to reflect state of tourism
in the country are security and safety of the people living in the country.
Economic Factors: Economic factor can be termed as another crucial factor which
possesses the ability to restrict development of smart hostels in the country. The rise of labour
market has made sure that people in the country possess more disposable income which can be
spent on tourism activities. The prediction states that tourism in the coming year will flourish
which might be good news for businesses in hospitality domain. Threat for hospitality institution
in this domain revolves around rise in the operations cost which have created significant impact
on level of profitability which was entertained by organisation working in this sector. There is an
immense amount of pressures which has been created on enterprises to deliver qualitative
services at lower costs. The economic slowdown is another factor which tends to restrict
development on smart hostels in the country.
Social Factors: The social trends such as trends and preferences of people tend to shape
fortune of tourism sector in the country. There is a complete shift in the manner in traveller
expects accommodation to be and have been more inclined in private accommodation rather than
institutionalised based arrangements (Tsang and Hsu, 2011). The hostel organisation mainly
Airbnb have emerged to be a major challenge to established hospitality organisations. It is very
important for a business to possess favourable customer sentiments so that profitability could be
enhanced. The threat which can limit the developments of smart hostels in the country can be
unfavourable trend in the market.
Technological Factors: The technological factors can be mentioned to be as one of the
biggest architects of tourism in the country. The technology has been successful in redefining the
manner in which booking and marketing practices are carried out. The evolution of technology
has definitely impacted the manner in which communication takes place. Travellers have been
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taking assistance form the technology in finding best deals from various hospitality
organisations. Smart Fast Hostels have been keeping technology as central when it comes to
fulfilling demands of consumers. The kiosk which have been planned by the enterprise are
digital and are more in use due to technology. The technology have been a motivator for tourism
but threat which has been encountered in this domain is that rumours and false news spread
extremely fast and are beyond control of an organisation (Kandampully and et. al., 2015).
Therefore it can be said that the major threats which are encountered by this enterprise
will be instability in political environment, rise in operational cost, unfavourable trends and
spreading of rumours and false news which tends to affect the ability of this organisation to
attain growth in target market.
CHAPTER 6: Conclusion
It can be concluded from the above report that hospitality sector in the United Kingdom
stands crucial. The rise in tourism and travelling activities has persuaded many entrepreneurs to
venture in the market. The concept of smart hostel is an attempt to redefine the manner in which
hostel accommodation are perceived by the travellers. The students from schools and universities
who are willing to travel the country with minimal financial resources will be able to fulfil their
dreams. It is extremely important to measure viability of the business so that it could be
identified whether to pursue with it or not. The operations of business are to be carried out giving
equal consideration to ecological factors so that sustainability could be enhanced. The limitation
relates to business are to be identified so that contingency plans could be formed.
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REFERENCES
Books and Journal
Caragliu, A., Del Bo, C. and Nijkamp, P., 2011. Smart cities in Europe. Journal of urban
technology. 18(2). pp.65-82.
Biswas, J. and Kobayashi, H. eds., 2013. Inclusive Society: Health and Wellbeing in the
Community, and Care at Home: 11th International Conference on Smart Homes and
Health Telematics, ICOST 2013, Singapore, June 19-21, 2013, Proceedings (Vol. 7910).
Springer.
Patrick, R., 2014. Working on welfare: Findings from a qualitative longitudinal study into the
lived experiences of welfare reform in the UK. Journal of Social Policy. 43(4). pp.705-
725.
Dacombe, R., 2011. Can we argue against it? Performance management and state funding of
voluntary organizations in the UK. Public Money & Management. 31(3). pp.159-166.
Tushar, W., and et. al., 2016. Smart grid testbed for demand focused energy management in end
user environments. IEEE Wireless Communications. 23(6). pp.70-80.
Watts, B., and et. al., 2014. Welfare Sanctions and Conditionality in the UK. York: Joseph
Rowntree Foundation.
Viitanen, J., Connell, P. and Tommis, M., 2015. Creating smart neighborhoods: insights from
two low-carbon communities in Sheffield and Leeds, United Kingdom. Journal of Urban
Technology. 22(2). pp.19-41.
Brotherton, B. ed., 2012. International Hospitality Industry. Routledge.
Law, R., and et. al., 2013. Progress and development of information technology in the hospitality
industry: Evidence from Cornell Hospitality Quarterly. Cornell Hospitality Quarterly.
54(1). pp.10-24.
Pechlaner, H. and Volgger, M., 2012. How to promote cooperation in the hospitality industry:
Generating practitioner-relevant knowledge using the GABEK qualitative research
strategy. International Journal of Contemporary Hospitality Management. 24(6). pp.925-
945.
Slåtten, T. and Mehmetoglu, M., 2011. Antecedents and effects of engaged frontline employees:
A study from the hospitality industry. Managing Service Quality: An International
Journal. 21(1). pp.88-107.
Ali, F., Amin, M. and Cobanoglu, C., 2016. An integrated model of service experience,
emotions, satisfaction, and price acceptance: an empirical analysis in the Chinese
hospitality industry. Journal of Hospitality Marketing & Management. 25(4). pp.449-475.
Tsang, N.K. and Hsu, C.H., 2011. Thirty years of research on tourism and hospitality
management in China: A review and analysis of journal publications. International
Journal of Hospitality Management. 30(4). pp.886-896.
Kandampully, J., and et. al., 2015. Customer loyalty: a review and future directions with a
special focus on the hospitality industry. International Journal of Contemporary
Hospitality Management. 27(3). pp.379-414.
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