Hotel Management and Business Plan
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AI Summary
This assignment focuses on the Arran House Hotel, requiring a thorough analysis of its current operations, market positioning, and financial health. Students must conduct a SWOT analysis to identify strengths, weaknesses, opportunities, and threats. The task also involves developing marketing strategies to enhance the hotel's competitiveness and creating a critical path for implementing key initiatives. Financial aspects, including revenue streams, expenses, and profitability, are also examined.
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK-1............................................................................................................................................3
1.1 Profile of Celtic Hotel...........................................................................................................3
1.2 Analysis of Business..............................................................................................................5
Task-2..............................................................................................................................................7
2.1 Actions to overcome the weaknesses.....................................................................................7
2.2 Ways for maintaining and strengthening Existing Performance...........................................8
2.3 New Areas For Expansion.....................................................................................................9
TASK-3............................................................................................................................................9
3.1 Existing Business Plan and Objectives..................................................................................9
3.2 Revise a business plan.........................................................................................................10
3.3 Action plan...........................................................................................................................10
TASK-4..........................................................................................................................................11
4.1 Measurements of improvements..........................................................................................11
4.2 Measurement of proposed change.......................................................................................12
4.3 Monitoring the Improvements.............................................................................................13
Conclusion.....................................................................................................................................13
References......................................................................................................................................15
2
INTRODUCTION...........................................................................................................................3
TASK-1............................................................................................................................................3
1.1 Profile of Celtic Hotel...........................................................................................................3
1.2 Analysis of Business..............................................................................................................5
Task-2..............................................................................................................................................7
2.1 Actions to overcome the weaknesses.....................................................................................7
2.2 Ways for maintaining and strengthening Existing Performance...........................................8
2.3 New Areas For Expansion.....................................................................................................9
TASK-3............................................................................................................................................9
3.1 Existing Business Plan and Objectives..................................................................................9
3.2 Revise a business plan.........................................................................................................10
3.3 Action plan...........................................................................................................................10
TASK-4..........................................................................................................................................11
4.1 Measurements of improvements..........................................................................................11
4.2 Measurement of proposed change.......................................................................................12
4.3 Monitoring the Improvements.............................................................................................13
Conclusion.....................................................................................................................................13
References......................................................................................................................................15
2
INTRODUCTION
Small business Enterprises are the growth engines in any economy. For any business to
sustain requires a planned business strategy and tactics. As per UK norms small business can be
defined as the one in which there are less than 50 employees and sales revenue of which is under
£10 million. In the present scenario small business are facing many challenges to sustain and
develop but are still one of major sector of growth in UK economy(Ackermann, and Audretsch,
Eds, 2013).
In the given assignment we conducted a research on Celtic hotel operating in south west in UK.
Hotel industry is facing numerous competition nowadays but many opportunities are available
which if utilized will lead to the growth of the company to a large extent. The report will present
the analysis of the present performance of the company and its areas of operations. Further
efforts have been made to analyze the weaknesses in various sectors and measures are suggested
for improvements.
TASK-1
1.1 Profile of Celtic Hotel
It is a located in Bloomsbury at Guilford Street London which is one of the most visited
places in London (Bridge and O'Neill, 2012). With an employee count of 45 people this hotel
offers a variety of other services such as spa, laundry services and has a bar and restaurant which
provides dining services. It offers different types of rooms at the following prices;
Table-1 Rooms & Prices
Room Options Price per night
Single Basin £83
Single En suite £108
Twin Basic £108
Double Basic £110
Double En Suite £120
Triple En Suite £130
The above fares are inclusive of a free morning breakfast, free premises for smoking, a free
access to wifi, tea and coffee in each room,TV lounge. All the rooms are well lit and fully air
3
Small business Enterprises are the growth engines in any economy. For any business to
sustain requires a planned business strategy and tactics. As per UK norms small business can be
defined as the one in which there are less than 50 employees and sales revenue of which is under
£10 million. In the present scenario small business are facing many challenges to sustain and
develop but are still one of major sector of growth in UK economy(Ackermann, and Audretsch,
Eds, 2013).
In the given assignment we conducted a research on Celtic hotel operating in south west in UK.
Hotel industry is facing numerous competition nowadays but many opportunities are available
which if utilized will lead to the growth of the company to a large extent. The report will present
the analysis of the present performance of the company and its areas of operations. Further
efforts have been made to analyze the weaknesses in various sectors and measures are suggested
for improvements.
TASK-1
1.1 Profile of Celtic Hotel
It is a located in Bloomsbury at Guilford Street London which is one of the most visited
places in London (Bridge and O'Neill, 2012). With an employee count of 45 people this hotel
offers a variety of other services such as spa, laundry services and has a bar and restaurant which
provides dining services. It offers different types of rooms at the following prices;
Table-1 Rooms & Prices
Room Options Price per night
Single Basin £83
Single En suite £108
Twin Basic £108
Double Basic £110
Double En Suite £120
Triple En Suite £130
The above fares are inclusive of a free morning breakfast, free premises for smoking, a free
access to wifi, tea and coffee in each room,TV lounge. All the rooms are well lit and fully air
3
conditioned. Among the other paid services of the hotel includes dining at restaurant , mock tails
and other hard drinks at its bar, luxurious spa services, and also provides a garden space for
organizing parties. In addition it provides all the facilities for conducting business conferences or
other corporate meetings. Company has an online portal through which advance bookings of
the rooms can be done by the guests. By reviewing profile of the company we came across the
following strengths and weaknesses-
Strengths
1. Location- It is located at one of the most visited tourists place in London. Hence it is an
attraction for all the visitors in London. Hence the company has a strong location factor
which would result in savings of advertisement costs. (About us, 2015)
2. Excellent House Keeping Services- It provides an excellent hospitality services by its
well trained and professional staff which helps to retain the customers.
3. Attractive Ambiance- The hotel has very large dome shaped structures and beautiful, eye
soothing and relaxing atmosphere which is an eye catching for most of the tourists.
4. Comfortable Accommodation- It provides relaxing and comfortable accommodation with
well equipped and clean rooms.
5. Free Ancillary Services- Accessibility to wifi and a large swimming pool are also one of
the factors responsible to attract people.
6. Easy Bookings and Cancellations- It provides a web platform on which there can be
advance bookings and cancellations which makes it easy for the customers to avail
rooms(Ackermann and Audretsch, 2013).
7. Variety Of Rooms at varied Prices- It offers different category of rooms which makes
flexible for the customers to book them as per their requirements and budgets.
Weaknesses-
1. High Employee Turnover- In recent years the company is facing a problem of high
employee’s turnovers due to increase in demand of the trained professionals in the
market.
2. High Competition- As there are many competitors located in the same area Celtic is
facing intense competition.
4
and other hard drinks at its bar, luxurious spa services, and also provides a garden space for
organizing parties. In addition it provides all the facilities for conducting business conferences or
other corporate meetings. Company has an online portal through which advance bookings of
the rooms can be done by the guests. By reviewing profile of the company we came across the
following strengths and weaknesses-
Strengths
1. Location- It is located at one of the most visited tourists place in London. Hence it is an
attraction for all the visitors in London. Hence the company has a strong location factor
which would result in savings of advertisement costs. (About us, 2015)
2. Excellent House Keeping Services- It provides an excellent hospitality services by its
well trained and professional staff which helps to retain the customers.
3. Attractive Ambiance- The hotel has very large dome shaped structures and beautiful, eye
soothing and relaxing atmosphere which is an eye catching for most of the tourists.
4. Comfortable Accommodation- It provides relaxing and comfortable accommodation with
well equipped and clean rooms.
5. Free Ancillary Services- Accessibility to wifi and a large swimming pool are also one of
the factors responsible to attract people.
6. Easy Bookings and Cancellations- It provides a web platform on which there can be
advance bookings and cancellations which makes it easy for the customers to avail
rooms(Ackermann and Audretsch, 2013).
7. Variety Of Rooms at varied Prices- It offers different category of rooms which makes
flexible for the customers to book them as per their requirements and budgets.
Weaknesses-
1. High Employee Turnover- In recent years the company is facing a problem of high
employee’s turnovers due to increase in demand of the trained professionals in the
market.
2. High Competition- As there are many competitors located in the same area Celtic is
facing intense competition.
4
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3. No Management Information System- Lack of a proper MIS causes many problems in
management of guests and time in accordance with the availability of rooms.
4. Inconsistent Revenues- Due to high dependency on tourists sector there are fluctuating
and unpredictable revenues.
5. Low Productivity- As the prices charged are competitive there is very low profit margins
of Celtic hotel which leads to lower value addition.
Celtic has the following Key Performance Indicators-
Occupancy Rate- The standard of Celtic during season is 100% occupancy rate and
during off season periods is 50%. This figure is maintained throughout the financial
period. The company meets the this criteria in the ordinary course.
Customer satisfaction- There is a challenge for the company to measure but through
various other methods such as feedback we can gather the approximated figures. The
company has been able to achieve customer satisfaction to a large extent due to its quality
of services provided by a professionally qualified staff.\
SMART Objectives
Specific- The objectives of this entity is related to the growth by increasing customer
satisfaction.
Measurable- The wide number of customers taking the services of this entity will ensure
its success.
Achievable- The objectives framed in real context which lies under the ability of an entity
in order to achieve it.
Reachable- The quality of services will ensure the achievement of objectives to transform
into big industry.
Time- The time frame is attached with each and every goal framed by the business entity.
1.2 Analysis of Business
For conducting the analysis of business different performance different comparative performance
indicators are incorporated which are on the basis of overall revenues from the entire set of
operations carried out, profitability and other non financial measures as depicted below-
5
management of guests and time in accordance with the availability of rooms.
4. Inconsistent Revenues- Due to high dependency on tourists sector there are fluctuating
and unpredictable revenues.
5. Low Productivity- As the prices charged are competitive there is very low profit margins
of Celtic hotel which leads to lower value addition.
Celtic has the following Key Performance Indicators-
Occupancy Rate- The standard of Celtic during season is 100% occupancy rate and
during off season periods is 50%. This figure is maintained throughout the financial
period. The company meets the this criteria in the ordinary course.
Customer satisfaction- There is a challenge for the company to measure but through
various other methods such as feedback we can gather the approximated figures. The
company has been able to achieve customer satisfaction to a large extent due to its quality
of services provided by a professionally qualified staff.\
SMART Objectives
Specific- The objectives of this entity is related to the growth by increasing customer
satisfaction.
Measurable- The wide number of customers taking the services of this entity will ensure
its success.
Achievable- The objectives framed in real context which lies under the ability of an entity
in order to achieve it.
Reachable- The quality of services will ensure the achievement of objectives to transform
into big industry.
Time- The time frame is attached with each and every goal framed by the business entity.
1.2 Analysis of Business
For conducting the analysis of business different performance different comparative performance
indicators are incorporated which are on the basis of overall revenues from the entire set of
operations carried out, profitability and other non financial measures as depicted below-
5
In comparison another hotel named Arran House operating in Bloomsbury has been taken into
consideration. The following section presents a comparative analysis of the comparison of Celtic
hotel (Arran House Hotel. 2015).
Table:2 Profit of both companies of last 5 years
Particulars Celtic Hotel Arran House
Year Profits after taxes
(000) in £
Profits after taxes
(000) in £
2015 456 479
2014 415 418
2013 339 343
2012 308 316
2011 295 304
Analyzing the above figures it can be concluded Arran House enjoys higher profits as compared
to Celtic Hotel. Hence the Celtic should bring a change in its policies and strategies in order to
survive in long term. Further it is also it can also be interpreted that the profits although are
lesser than the competitor but are consistently increasing year after year. Hence he company
should maintain a consistent revenues policies and should make strategies to conquer more
market share(Bridge and O'Neill, 2012).
Table -3 Sales of the company of last 5 years
Year Celtic Hotel (000) in £ Arran House (000) in £
2015 653 680.95
2014 596 617.63
2013 523 563.32
2012 536 546.32
2011 368 396.32
Ratios
The current ratios are calculated on the basis of forecast figure of profit and assumed figure of
sales generated by this entity over the years.
Figures Formula 2015 2014
6
consideration. The following section presents a comparative analysis of the comparison of Celtic
hotel (Arran House Hotel. 2015).
Table:2 Profit of both companies of last 5 years
Particulars Celtic Hotel Arran House
Year Profits after taxes
(000) in £
Profits after taxes
(000) in £
2015 456 479
2014 415 418
2013 339 343
2012 308 316
2011 295 304
Analyzing the above figures it can be concluded Arran House enjoys higher profits as compared
to Celtic Hotel. Hence the Celtic should bring a change in its policies and strategies in order to
survive in long term. Further it is also it can also be interpreted that the profits although are
lesser than the competitor but are consistently increasing year after year. Hence he company
should maintain a consistent revenues policies and should make strategies to conquer more
market share(Bridge and O'Neill, 2012).
Table -3 Sales of the company of last 5 years
Year Celtic Hotel (000) in £ Arran House (000) in £
2015 653 680.95
2014 596 617.63
2013 523 563.32
2012 536 546.32
2011 368 396.32
Ratios
The current ratios are calculated on the basis of forecast figure of profit and assumed figure of
sales generated by this entity over the years.
Figures Formula 2015 2014
6
Sales 653 596
Net profit 456 415
NP ratios NP/Net sales*100 69.83% 69.63%
Interpretation
NP ratio- The net profit will determine the impact of taxation which decreases the overall profit
incurred by an entity in a particular year. The complete profit that is the net profit is decreasing
from one period to another due to the higher impact of taxation imposed on an enterprise.
Based on the above it can be analyzed that Celtic Hotel earns a lower revenues that that of its
competitor. Although the revenues are progressively increased as and when compared to the
previous years. With this scenario it is inferred that the competitor has the competitive edge over
the sales revenues(Cowling and Ledger, 2012 ). Therefore Celtic should implement effective
strategies to increase the shares in revenues.
Table-4 Non Financial Performance of both the companies
Year Ending 2016 Celtic Hotel Arran House
Staff turnover 16% 12%
Absenteeism 9 days 8 days
Job satisfaction 93% 91%
Job offers acceptance 15% 11%
As is evident from the above table performance when measured in non financial terms Celtic
Hotel has an edge over its competitor. Its staff turnover and absenteeism is high comparatively
while has a high job satisfaction and job acceptance ratio. These positive ratios would lead to
serve as a key motivator for the company to improve. With time Celtic can effectively attain its
objective by maintaining a quality in its services.
Table 5 Customer perception of both the Hotels
Year ending 2015 Celtic Hotel Aaran House
It is worth for money charged 6 5
Possibilities for improvements
in performances
4 4
Comparative services offered 4 5
7
Net profit 456 415
NP ratios NP/Net sales*100 69.83% 69.63%
Interpretation
NP ratio- The net profit will determine the impact of taxation which decreases the overall profit
incurred by an entity in a particular year. The complete profit that is the net profit is decreasing
from one period to another due to the higher impact of taxation imposed on an enterprise.
Based on the above it can be analyzed that Celtic Hotel earns a lower revenues that that of its
competitor. Although the revenues are progressively increased as and when compared to the
previous years. With this scenario it is inferred that the competitor has the competitive edge over
the sales revenues(Cowling and Ledger, 2012 ). Therefore Celtic should implement effective
strategies to increase the shares in revenues.
Table-4 Non Financial Performance of both the companies
Year Ending 2016 Celtic Hotel Arran House
Staff turnover 16% 12%
Absenteeism 9 days 8 days
Job satisfaction 93% 91%
Job offers acceptance 15% 11%
As is evident from the above table performance when measured in non financial terms Celtic
Hotel has an edge over its competitor. Its staff turnover and absenteeism is high comparatively
while has a high job satisfaction and job acceptance ratio. These positive ratios would lead to
serve as a key motivator for the company to improve. With time Celtic can effectively attain its
objective by maintaining a quality in its services.
Table 5 Customer perception of both the Hotels
Year ending 2015 Celtic Hotel Aaran House
It is worth for money charged 6 5
Possibilities for improvements
in performances
4 4
Comparative services offered 4 5
7
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by competitors
On the basis of the feedback of the various customers when asked to rank between 1 to 10 the
services on the basis of the questions mentioned in the table the following inferences were
drawn-
There are more satisfied customers than that of the competitor who feels that the services
are better as and when compared to the competitor. Also it suggests that there is a little
opportunity for the improvements in the services.
Many of the customers feel that the services are value for the money spend and thus it
can be inferred that it provides quality services to its clients.
TASK-2
2.1 Actions to overcome the weaknesses
To control its employee turnover ratios company should implement proper incentives and
other monetary benefits to employees. It will serve as an encouraging factor for the employees
and thus by providing them such monetary benefits retention can be made. Company can also
implement various training and development program mes which will help to improve the
performance of the employees by simultaneously making their value addition.
As the company is facing high competition serious efforts should be made to increase the
quality of services in competitive prices. Also an additional discounts should be offered
to the regular customers to retain them(Burrows ,2015).
The company with the help of professionally qualified people develop a customized
management information system. This will enhance the occupancy rate and hence would
generate high revenues for the hotel.
The company operates on a low profit margin and hence to maintain a competitive
margin it should take help of the professionally qualified people to suggest a profit
margin ratio. After proper analysis should develop a profit margin that is competitive and
yet best to optimize he resources available and simultaneously generating maximum
profits (Bridge and O'Neill , 2012).
8
On the basis of the feedback of the various customers when asked to rank between 1 to 10 the
services on the basis of the questions mentioned in the table the following inferences were
drawn-
There are more satisfied customers than that of the competitor who feels that the services
are better as and when compared to the competitor. Also it suggests that there is a little
opportunity for the improvements in the services.
Many of the customers feel that the services are value for the money spend and thus it
can be inferred that it provides quality services to its clients.
TASK-2
2.1 Actions to overcome the weaknesses
To control its employee turnover ratios company should implement proper incentives and
other monetary benefits to employees. It will serve as an encouraging factor for the employees
and thus by providing them such monetary benefits retention can be made. Company can also
implement various training and development program mes which will help to improve the
performance of the employees by simultaneously making their value addition.
As the company is facing high competition serious efforts should be made to increase the
quality of services in competitive prices. Also an additional discounts should be offered
to the regular customers to retain them(Burrows ,2015).
The company with the help of professionally qualified people develop a customized
management information system. This will enhance the occupancy rate and hence would
generate high revenues for the hotel.
The company operates on a low profit margin and hence to maintain a competitive
margin it should take help of the professionally qualified people to suggest a profit
margin ratio. After proper analysis should develop a profit margin that is competitive and
yet best to optimize he resources available and simultaneously generating maximum
profits (Bridge and O'Neill , 2012).
8
2.2 Ways for maintaining and strengthening Existing Performance
From the analysis made it is evident that the company has significant benefit areas. This will
help in attainment of objectives in an effectual manner. Moreover by implementing the following
suggestions and measures the performance can be enhanced or strengthened-
Hotel in addition to offering a free wifi service can offer a laptops or a tablet to create an
ease and improve the quality even to greater extent. To develop a brand image it an
provide a local sim cards to the customers which can help them to increase their free
calling and data usage capacities(Cowling and Ledger, 2012).
There can be an arrangements of a pick and drop cab services to the customers from their
respective places. This will provide an additional facility to the customers and helps in
building the brand image. Moreover it will generate an additional revenue for the hotels.
Guide services can be provided to the customers who are visitors to create an ease in the
traveling to different tourist areas of London.
Company can expand restaurant services by providing food of different cuisines along
with the snacks. This will help the customers to dine in the same place of stay and hence
will generate an additional revenues for the company.
The company should advertise its spa services so that other than customers of the hotel
several other residents can also use them. This will be another source of revenue for the
company.
2.3 New Areas For Expansion
As far as the services of the hotel is considered it is delivering almost all the ancillary
services which are related to its business. However it can open branches different area of
London so that the revenues get maximized by serving more customers. Also it will create a
brand value for the hotel as the number of branches in the cities increase.
Apart from that it can develop it Bar and restaurant for the local residents. To develop this
service one should focus on providing different varieties of food and cuisines. Quality will play a
major role in this aspect. Thus quality of the edible items in respect of the prices charged should
maintained.
Moreover renovation of the rooms and increasing the number of rooms will lead the increase in
occupancy rate of the hotel and will generate higher profits and revenues for the business.
9
From the analysis made it is evident that the company has significant benefit areas. This will
help in attainment of objectives in an effectual manner. Moreover by implementing the following
suggestions and measures the performance can be enhanced or strengthened-
Hotel in addition to offering a free wifi service can offer a laptops or a tablet to create an
ease and improve the quality even to greater extent. To develop a brand image it an
provide a local sim cards to the customers which can help them to increase their free
calling and data usage capacities(Cowling and Ledger, 2012).
There can be an arrangements of a pick and drop cab services to the customers from their
respective places. This will provide an additional facility to the customers and helps in
building the brand image. Moreover it will generate an additional revenue for the hotels.
Guide services can be provided to the customers who are visitors to create an ease in the
traveling to different tourist areas of London.
Company can expand restaurant services by providing food of different cuisines along
with the snacks. This will help the customers to dine in the same place of stay and hence
will generate an additional revenues for the company.
The company should advertise its spa services so that other than customers of the hotel
several other residents can also use them. This will be another source of revenue for the
company.
2.3 New Areas For Expansion
As far as the services of the hotel is considered it is delivering almost all the ancillary
services which are related to its business. However it can open branches different area of
London so that the revenues get maximized by serving more customers. Also it will create a
brand value for the hotel as the number of branches in the cities increase.
Apart from that it can develop it Bar and restaurant for the local residents. To develop this
service one should focus on providing different varieties of food and cuisines. Quality will play a
major role in this aspect. Thus quality of the edible items in respect of the prices charged should
maintained.
Moreover renovation of the rooms and increasing the number of rooms will lead the increase in
occupancy rate of the hotel and will generate higher profits and revenues for the business.
9
Considering the data and facts of the company expansion is highly recommended. Through
expansion it can create a brand image, higher revenues which will lead to higher profits, increase
in the number of customers to be served due to provision of services to local as well as visitors.
Thus it will increase the overall satisfaction level of the customers.
Illustration 1: ans off matrix
The business expansion model will focus on four segments which is given as below:
Market penetration- The current product offered by an entity to the local customers are
presented in the attractive form to enhance its overall market share.
Product development- The current accommodation services provided by this organization will
be extended to another market such as hotel or restaurant. The products are supplied by this
entity to all the restaurants.
Market Development- The accommodation services are provided to the another market by
collaborating with the hotels and event management companies.
Market diversification- The current products or services are offered to the variety of customers
by opening club in the existing premises.
TASK-3
3.1 Existing Business Plan and Objectives
Following are the present business objectives of Celtic hotel
10
expansion it can create a brand image, higher revenues which will lead to higher profits, increase
in the number of customers to be served due to provision of services to local as well as visitors.
Thus it will increase the overall satisfaction level of the customers.
Illustration 1: ans off matrix
The business expansion model will focus on four segments which is given as below:
Market penetration- The current product offered by an entity to the local customers are
presented in the attractive form to enhance its overall market share.
Product development- The current accommodation services provided by this organization will
be extended to another market such as hotel or restaurant. The products are supplied by this
entity to all the restaurants.
Market Development- The accommodation services are provided to the another market by
collaborating with the hotels and event management companies.
Market diversification- The current products or services are offered to the variety of customers
by opening club in the existing premises.
TASK-3
3.1 Existing Business Plan and Objectives
Following are the present business objectives of Celtic hotel
10
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Its strives to offer high quality services sound accommodation and high quality of
hospitality services to meet the expectations of its customers.
It consists of an online platform to pre-book rooms and pay for them simultaneously on
the same website. In addition to it it provides facility to check the availability status
which saves the customer from the inconvenience (Arran House Hotel. 2015) .
It has an objective to implement a sound advertisement and marketing plan to serve wide
range of customers belonging to varied class and countries.
It aims to achieve higher level of customer satisfaction by enhancing the quality of its
services and by providing a clean, hygienic and a relaxing atmosphere.
It aims at creation of Brand image and recognition across the globe.
One of the key objectives is to become a crucial competitor for the new entrants as well
as existing companies.
It aims to establish a balance in work and recreation for the employee by providing
various recreational activities(Burrows ,2015).
3.2 Revise a business plan
As per the case study, the organization is facing several issues such as high employee
turnover, low productivity, in consist revenue and no MIS in the organization system. However,
the organization needs to make a plan to overcome the stated weaknesses (Cowling and Ledger,
2012).
For the purpose of involving hotel, the operations of Celtic revising of business plan is
required. In this context, collecting the finance is of the primal care and aforesaid will be done
partial from bank loan and owner capital. In addition to it, varied employees will be recruited for
making the restaurant operational. In this context, chefs, accessory force and server will be
needed and hence same will be enlisted in the mean time when hotel is developed. Considering
this, 1 head chef will be recruited which will guide 5 supportive staff. In order to raise the
productivity of the hotel, the management will be required to give proper training and
development programmes. This will help in importing their current performance which leads to
attain the goals and objectives of the stated hotel. This will also help the management to lower
down the employee turnover issues (Cowling and Ledger, 2012 ). This leads to save the cost of
recruitment of the new employees.
11
hospitality services to meet the expectations of its customers.
It consists of an online platform to pre-book rooms and pay for them simultaneously on
the same website. In addition to it it provides facility to check the availability status
which saves the customer from the inconvenience (Arran House Hotel. 2015) .
It has an objective to implement a sound advertisement and marketing plan to serve wide
range of customers belonging to varied class and countries.
It aims to achieve higher level of customer satisfaction by enhancing the quality of its
services and by providing a clean, hygienic and a relaxing atmosphere.
It aims at creation of Brand image and recognition across the globe.
One of the key objectives is to become a crucial competitor for the new entrants as well
as existing companies.
It aims to establish a balance in work and recreation for the employee by providing
various recreational activities(Burrows ,2015).
3.2 Revise a business plan
As per the case study, the organization is facing several issues such as high employee
turnover, low productivity, in consist revenue and no MIS in the organization system. However,
the organization needs to make a plan to overcome the stated weaknesses (Cowling and Ledger,
2012).
For the purpose of involving hotel, the operations of Celtic revising of business plan is
required. In this context, collecting the finance is of the primal care and aforesaid will be done
partial from bank loan and owner capital. In addition to it, varied employees will be recruited for
making the restaurant operational. In this context, chefs, accessory force and server will be
needed and hence same will be enlisted in the mean time when hotel is developed. Considering
this, 1 head chef will be recruited which will guide 5 supportive staff. In order to raise the
productivity of the hotel, the management will be required to give proper training and
development programmes. This will help in importing their current performance which leads to
attain the goals and objectives of the stated hotel. This will also help the management to lower
down the employee turnover issues (Cowling and Ledger, 2012 ). This leads to save the cost of
recruitment of the new employees.
11
3.3 Action plan
Following are the action plan that will be used for implementing the change:
Infrastructure development: It is recovered that one of the top-quality point for development
eating house is protection of the hotel and therefore needed alteration will be made in the same.
For this, project manager will be employed in order to create plan and execute the same. In order
to attain this purpose the organization will be required to have time of 5 months.
Staffing: In the average time, personnel will be done by devising interaction with various
enlistee. From this, empty places of head chef, accessory staff and waiters will be occupied so
that business activity can be start as soon the work of re-engineering gets completed.
Marketing: This is the most effective tool which can be adopted by the organization. This
process will the period of 20 days where the plans and strategies will be prepared. This will help
the company to decide the appropriate adoption of the tools and techniques.
Operation: Moreover, the management need to install the MIS system so that requisite data and
information can be stored. This will help the management of Hotel to make good contacts with
the customers.
TASK-4
4.1 Measurements of improvements
There are various techniques through which improvements are measured ad
evaluated.
Kurt Lewin change model will be applied in the current business process of this enterprise
which is given as below:
Unfreeze- The owner of this entity will convey the changes takes lace in the future with their
personnel in advance in order to prepare them for facing tough challenges. The owner can
provide various perks and incentives such as increasing salary, incentives, bonus, allowances,
knowledge of new technologies, increasing job role.
Change- The employees can resist regarding changes takes place in their traditional working
practices by informing all the positive benefits of these changes.
Freeze- The employees will work in their normal pace as they are aware with the changes and
enjoying their work due to the positive impacts of the changes.
12
Following are the action plan that will be used for implementing the change:
Infrastructure development: It is recovered that one of the top-quality point for development
eating house is protection of the hotel and therefore needed alteration will be made in the same.
For this, project manager will be employed in order to create plan and execute the same. In order
to attain this purpose the organization will be required to have time of 5 months.
Staffing: In the average time, personnel will be done by devising interaction with various
enlistee. From this, empty places of head chef, accessory staff and waiters will be occupied so
that business activity can be start as soon the work of re-engineering gets completed.
Marketing: This is the most effective tool which can be adopted by the organization. This
process will the period of 20 days where the plans and strategies will be prepared. This will help
the company to decide the appropriate adoption of the tools and techniques.
Operation: Moreover, the management need to install the MIS system so that requisite data and
information can be stored. This will help the management of Hotel to make good contacts with
the customers.
TASK-4
4.1 Measurements of improvements
There are various techniques through which improvements are measured ad
evaluated.
Kurt Lewin change model will be applied in the current business process of this enterprise
which is given as below:
Unfreeze- The owner of this entity will convey the changes takes lace in the future with their
personnel in advance in order to prepare them for facing tough challenges. The owner can
provide various perks and incentives such as increasing salary, incentives, bonus, allowances,
knowledge of new technologies, increasing job role.
Change- The employees can resist regarding changes takes place in their traditional working
practices by informing all the positive benefits of these changes.
Freeze- The employees will work in their normal pace as they are aware with the changes and
enjoying their work due to the positive impacts of the changes.
12
Regular meetings : Regular meetings is one of the best tool to improve or evaluate problems .
Company could arrange regular meetings where all the relevant members must be invited
who are related with the organisation and business operations. Under such meetings
problems could be discussed, views can be considered through which problems could be
identified. Accordingly corrective measures and appropriate decisions could be taken by the
company. This promotes effective growth of the organisation on the whole.
Documents and Records : Improvements can also be measured by regularly maintaining the
proper documentations and maintaining appropriate records of the organisation in every
aspect required. Documentation brings transparency for both the organisation and outsiders.
Keeping regular documentations helps in identifying the prevailing trends and graphs of
improvements and growth. Also helps in making comparison with the past records plus
forecast can be done for the future(Cowling and Ledger, 2012). It gives a detailed idea of the
present working of the organisation.
Feedback : Feedback plays a vital role in any organisation. Its an another best technique to
measure growth , evaluate improvements. Feedbacks could be taken from all the relevant
persons of the organisations. It could be taken through various ways like preparing
questionnaire, survey from distinguished areas or regions, 360 degree etc. Feedbacks helps
out in knowing the satisfaction level of the employees and the members working in a
company where they can share their views , thoughts, regarding any particular aspect they
want to share.
Balanced scorecard : Under this technique certain measures are set and through which it's been
judged that till where a employee has reached till long term or short term goals. Here the
actual performance is measured that with the set or desired performance by the management
of the organization.
4.2 Measurement of proposed change
For managing any kind of change in an organization 8 steps model can be used for effective
change and for better results (Arran House Hotel. 2015). All the steps are give below:
13
Company could arrange regular meetings where all the relevant members must be invited
who are related with the organisation and business operations. Under such meetings
problems could be discussed, views can be considered through which problems could be
identified. Accordingly corrective measures and appropriate decisions could be taken by the
company. This promotes effective growth of the organisation on the whole.
Documents and Records : Improvements can also be measured by regularly maintaining the
proper documentations and maintaining appropriate records of the organisation in every
aspect required. Documentation brings transparency for both the organisation and outsiders.
Keeping regular documentations helps in identifying the prevailing trends and graphs of
improvements and growth. Also helps in making comparison with the past records plus
forecast can be done for the future(Cowling and Ledger, 2012). It gives a detailed idea of the
present working of the organisation.
Feedback : Feedback plays a vital role in any organisation. Its an another best technique to
measure growth , evaluate improvements. Feedbacks could be taken from all the relevant
persons of the organisations. It could be taken through various ways like preparing
questionnaire, survey from distinguished areas or regions, 360 degree etc. Feedbacks helps
out in knowing the satisfaction level of the employees and the members working in a
company where they can share their views , thoughts, regarding any particular aspect they
want to share.
Balanced scorecard : Under this technique certain measures are set and through which it's been
judged that till where a employee has reached till long term or short term goals. Here the
actual performance is measured that with the set or desired performance by the management
of the organization.
4.2 Measurement of proposed change
For managing any kind of change in an organization 8 steps model can be used for effective
change and for better results (Arran House Hotel. 2015). All the steps are give below:
13
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Increase urgency : First and the foremost step of this model is to identify the objective for
making the change and communicate the same to the subordinates so that help from their
part could also be taken and considered. Also important to know that the changes which
are being planned must be taken in practice.
Guiding Coalition: It is important to set the vision for the particular plan. Under this team
or group can be developed for increasing the competency ad to apply various strategies to
attain the goal.
Developing change vision: Vision to change must be adopted by the team members so
that effective measures and decisions could be taken for the same which may give rise to
the entire sales volume and profit margin of the company on the whole.
Communicating the vision: This is the crucial step under which the changes are to be
communicated among the team so that it can be implemented effectively in an efficient
manner. The company has to communicate the same in a written format (Cowling and
Ledger, 2012).
Empowering broad based action: Till this stage barriers are removed entirely ad a
effective team could be developed for taking corrective actions in an efficient manner.
Short term win: Short term targets to be implemented which may increase the motivation
level of the employees.
Incorporating change into culture: According to the culture at last changes will be
incorporated so that regular benefits can be achieved.
4.3 Monitoring the Improvements
As a part of consistent improvements effective monitoring on the regular basis will be
carried so as to identify the effectiveness in the measures of the improvements that took place.
Consistent monitoring will help to improvise the strategies if considered necessary on the basis
of the demands of the circumstances. Each and every objective will be monitored by a separate
set of professionals who will analyze the performance effectively on the basis of set parameters
often called benchmarks (Cowling and Ledger, 2012).
Additionally, financial performance of the hotel will be reviewed on the basis of KPI (Key
Performance Indicators) of the industry in order to ensure that ultimate objectives in attained
with the defined changes. Evaluation of task will be done along with determined task from which
14
making the change and communicate the same to the subordinates so that help from their
part could also be taken and considered. Also important to know that the changes which
are being planned must be taken in practice.
Guiding Coalition: It is important to set the vision for the particular plan. Under this team
or group can be developed for increasing the competency ad to apply various strategies to
attain the goal.
Developing change vision: Vision to change must be adopted by the team members so
that effective measures and decisions could be taken for the same which may give rise to
the entire sales volume and profit margin of the company on the whole.
Communicating the vision: This is the crucial step under which the changes are to be
communicated among the team so that it can be implemented effectively in an efficient
manner. The company has to communicate the same in a written format (Cowling and
Ledger, 2012).
Empowering broad based action: Till this stage barriers are removed entirely ad a
effective team could be developed for taking corrective actions in an efficient manner.
Short term win: Short term targets to be implemented which may increase the motivation
level of the employees.
Incorporating change into culture: According to the culture at last changes will be
incorporated so that regular benefits can be achieved.
4.3 Monitoring the Improvements
As a part of consistent improvements effective monitoring on the regular basis will be
carried so as to identify the effectiveness in the measures of the improvements that took place.
Consistent monitoring will help to improvise the strategies if considered necessary on the basis
of the demands of the circumstances. Each and every objective will be monitored by a separate
set of professionals who will analyze the performance effectively on the basis of set parameters
often called benchmarks (Cowling and Ledger, 2012).
Additionally, financial performance of the hotel will be reviewed on the basis of KPI (Key
Performance Indicators) of the industry in order to ensure that ultimate objectives in attained
with the defined changes. Evaluation of task will be done along with determined task from which
14
each set of objectives will be attained(Burrows ,2015). Thus it can be concluded that monitoring
helps in the evaluation of the performance effectively and to take the necessary rectification steps
and finally lead to improved performance of the company.
ustration 2: Gantt chart
15
helps in the evaluation of the performance effectively and to take the necessary rectification steps
and finally lead to improved performance of the company.
ustration 2: Gantt chart
15
Illustration 3: Critical path
CONCLUSION
With the help of the above analysis it can be said that small business enterprise can
improve its performance and capability utilization of opportunities from the external
environment. However the capabilities of the companies should be reviewed to ensure that it
addresses the external available opportunities in an effectual manner. Further taking effective
and timely decisions will help in boosting the performance and competency of small business in
the market. By implementing the above stated measures would help to increase the growth and
development of the company in a consistent manner. Moreover coherency and coordination in
the implemented activities would form one of the major factor for the success of the small
business enterprise (Cowling and Ledger, 2012).
16
CONCLUSION
With the help of the above analysis it can be said that small business enterprise can
improve its performance and capability utilization of opportunities from the external
environment. However the capabilities of the companies should be reviewed to ensure that it
addresses the external available opportunities in an effectual manner. Further taking effective
and timely decisions will help in boosting the performance and competency of small business in
the market. By implementing the above stated measures would help to increase the growth and
development of the company in a consistent manner. Moreover coherency and coordination in
the implemented activities would form one of the major factor for the success of the small
business enterprise (Cowling and Ledger, 2012).
16
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REFERENCES
Books and Journals
Ackermann, S.J. and Audretsch, D.B. Eds., 2013. The economics of small firms: A European
challenge(Vol. 11). Springer Science & Business Media.
Bridge, S. and O'Neill, K., 2012. Understanding enterprise: entrepreneurship and small
business. Palgrave Macmillan.
Burrows, R. ed., 2015. Deciphering the Enterprise Culture (Routledge Revivals):
Entrepreneurship, Petty Capitalism and the Restructuring of Britain. Routledge.
Cowling, M., Liu, W. and Ledger, A., 2012. Small business financing in the UK before and
during the current financial crisis. International Small Business Journal,.30(7), pp.778-
800.
Eid, R. and El-Gohary, H., 2013. The impact of E-marketing use on small business enterprises'
marketing success. The Service Industries Journal, 33(1), pp.31-50.
Goss, D., 2015. Small Business and Society (Routledge Revivals). Routledge.
Hall, C.M. and Rusher, K., 2013. Risky lifestyles? Entrepreneurial characteristics of the New
Zealand bed and breakfast sector.Small Firms in Tourism, p.83.
Henrekson, M. and Sanandaji, T., 2014. Small business activity does not measure
entrepreneurship. Proceedings of the National Academy of Sciences.111(5). pp.1760-
1765.
MacDonald, R. and Coffield, F., 2015. Risky business?: youth and the enterprise culture.
Routledge.
Mason, C.M., 2015. Spatial variations in enterprise: the geography of new firm
formation. Deciphering the Enterprise Culture: Entrepreneurship, Petty Capitalism,
and the Restructuring of Britain.–1991,–Р, pp.74-107.
Rainer, R.K., Cegielski, C.G., Splettstoesser-Hogeterp, I. and Sanchez-Rodriguez, C., 2013.
Introduction to information systems: Supporting and transforming business. John Wiley
& Sons.
Ricketts, M., 2002. The economics of business enterprise: an introduction to economic
organisation and the theory of the firm. Edward Elgar Publishing.
Schaper, M. ed., 2016. Making ecopreneurs: developing sustainable entrepreneurship. CRC
Press.
Spence, L. J. and Rutherfoord, R., 2003. Small business and empirical perspectives in business
ethics: Editorial. Journal of Business Ethics. 47(1). pp. 1-5.
Street, C. T. and Cameron, A. F., 2007. External relationships and the small business: A review
of small business alliance and network research. Journal of Small Business
Management. 45(2). pp. 239-266.
17
Books and Journals
Ackermann, S.J. and Audretsch, D.B. Eds., 2013. The economics of small firms: A European
challenge(Vol. 11). Springer Science & Business Media.
Bridge, S. and O'Neill, K., 2012. Understanding enterprise: entrepreneurship and small
business. Palgrave Macmillan.
Burrows, R. ed., 2015. Deciphering the Enterprise Culture (Routledge Revivals):
Entrepreneurship, Petty Capitalism and the Restructuring of Britain. Routledge.
Cowling, M., Liu, W. and Ledger, A., 2012. Small business financing in the UK before and
during the current financial crisis. International Small Business Journal,.30(7), pp.778-
800.
Eid, R. and El-Gohary, H., 2013. The impact of E-marketing use on small business enterprises'
marketing success. The Service Industries Journal, 33(1), pp.31-50.
Goss, D., 2015. Small Business and Society (Routledge Revivals). Routledge.
Hall, C.M. and Rusher, K., 2013. Risky lifestyles? Entrepreneurial characteristics of the New
Zealand bed and breakfast sector.Small Firms in Tourism, p.83.
Henrekson, M. and Sanandaji, T., 2014. Small business activity does not measure
entrepreneurship. Proceedings of the National Academy of Sciences.111(5). pp.1760-
1765.
MacDonald, R. and Coffield, F., 2015. Risky business?: youth and the enterprise culture.
Routledge.
Mason, C.M., 2015. Spatial variations in enterprise: the geography of new firm
formation. Deciphering the Enterprise Culture: Entrepreneurship, Petty Capitalism,
and the Restructuring of Britain.–1991,–Р, pp.74-107.
Rainer, R.K., Cegielski, C.G., Splettstoesser-Hogeterp, I. and Sanchez-Rodriguez, C., 2013.
Introduction to information systems: Supporting and transforming business. John Wiley
& Sons.
Ricketts, M., 2002. The economics of business enterprise: an introduction to economic
organisation and the theory of the firm. Edward Elgar Publishing.
Schaper, M. ed., 2016. Making ecopreneurs: developing sustainable entrepreneurship. CRC
Press.
Spence, L. J. and Rutherfoord, R., 2003. Small business and empirical perspectives in business
ethics: Editorial. Journal of Business Ethics. 47(1). pp. 1-5.
Street, C. T. and Cameron, A. F., 2007. External relationships and the small business: A review
of small business alliance and network research. Journal of Small Business
Management. 45(2). pp. 239-266.
17
Thomas, R., 2013. Small firms in tourism. Routledge.
Thurik, R. and Wennekers, S., 2004. Entrepreneurship, small business and economic
growth. Journal of small business and enterprise development. 11(1). 140-149.
Van Der Wijst, D., 2012. Financial structure in small business: Theory, tests and applications
(Vol. 320). Springer Science & Business Media.
Online
About us. 2015. Arran House Hotel. [Online]. Available through: <http://www.arranhotel-
london.com/about-us.html>. [Accessed on 25th November 2016].
Arran House Hotel. 2015. [Online]. Available through:
<http://www.lonelyplanet.com/england/london/hotels/arran-house-hotel>. [Accessed on
25th November 2016].
Church Street Hotel. 2015. [Online]. Available through: <http://churchstreethotel.com/>.
[Accessed on 25th November 2016].
18
Thurik, R. and Wennekers, S., 2004. Entrepreneurship, small business and economic
growth. Journal of small business and enterprise development. 11(1). 140-149.
Van Der Wijst, D., 2012. Financial structure in small business: Theory, tests and applications
(Vol. 320). Springer Science & Business Media.
Online
About us. 2015. Arran House Hotel. [Online]. Available through: <http://www.arranhotel-
london.com/about-us.html>. [Accessed on 25th November 2016].
Arran House Hotel. 2015. [Online]. Available through:
<http://www.lonelyplanet.com/england/london/hotels/arran-house-hotel>. [Accessed on
25th November 2016].
Church Street Hotel. 2015. [Online]. Available through: <http://churchstreethotel.com/>.
[Accessed on 25th November 2016].
18
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