Managing Change and Improving Performance at Beaufort House

The report highlights the importance of managing change effectively to achieve more customers for Beaufort House, a small company. The proposed change involves opening a café on the roof, which will affect existing employees and lead to rivalry among them if not managed properly. To mitigate this, the company must offer cross-department training to develop bonding between employees. Additionally, Kotter's model of change management can be applied to ensure a smooth transition. Moreover, monitoring performance regularly through meetings and balance scorecards is essential to track deviation and make necessary adjustments.

Small Business
Enterprise

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Business Profile of Beaufort House.......................................................................................1
1.2 Analysis of Business using Comparative Measure of Performance......................................3
TASK 2............................................................................................................................................5
2.1 Activities to Overcome Weaknesses of Beaufort House.......................................................5
2.2 Methods for Enhancing the Existing Performance of Beaufort Hotel...................................6
2.3 New Areas for Expanding the Business of Beaufort House..................................................7
TASK 3............................................................................................................................................8
3.1 Existing Business Objective and Plan of the Hotel...............................................................8
3.2 Revised Business Plan for Beaufort Café..............................................................................8
3.3 Action Plan for Adopting Business Plan...............................................................................9
TASK 4............................................................................................................................................9
4.1 Impact of Change on Business and Personnel.......................................................................9
4.2 Management of Change in Beaufort Hotel..........................................................................10
4.3 Monitoring Improvements for the Performance of Business..............................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
It is essential for the company to develop sound plan and tactics so that it can grasp the
opportunities in the market and hence can sustain for longer. In preset era, there is significant rise
in the competition and companies are facing serious issues in terms of high competition, low
profitability, easy availability of substitute products and other related (Calcagnini and Favaretto,
2011). Therefore to address the same, company need to manage their operation by developing
appropriate strategy. However, small business needs to face further challenges due to
competition and high extent of rivalry. Also, small business needs to compete with giant
organization that again increases the complexity further (Lorette, 2011). However, small
business can be referred to an organization that are privately owned or partnership and it does not
employs more than 50 employees. Further, company that having turnover of less that £6.5
million is also refereed to small business in the UK (Ricketts, 2002).
Since, small business works in a limited area therefore it possess huge scope for
expansion and growth. In order to brief the same, present report has been prepared. For this,
Beaufort House has been taken into account which is a bed and breakfast located at
Knightsbridge, London. It offers luxury apartments to guest that meet the satisfaction level of
employees. In this regard, present report focuses on developing new plans for the cited company
so that overall efficiency of the firm can be increased. Further, procedures to implement those
plan are also considered that aids in attaining revised business objectives in an effectual manner.
TASK 1
1.1 Business Profile of Beaufort House
Beaufort House is a luxury apartments that offers different types of room from 1 bedroom
to 4 bedrooms. It is a boutique hotel that certainly meets with the expectation level of in-house
guest and hence makes them satisfy with pleasant ambiance. It is located at the walking distance
from prominent places of London such as Harrods department store, Sloane Street, Hyde Park
and Buckingham Palace (Beaufort House, 2015).
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Figure 1: Beaufort House
The hotel offers smoking free premises that meet with the expectation of varied
customers. To add value in customer experience, it offers facilities like English breakfast, TV
area, free Wi-Fi access, beautiful garden at entrance and other related. The organization has
sound and elegant websites that offers convenient to visitors in booking rooms from anywhere in
the world. In this context, following are the strength and weakness of the mentioned hotel:
Strength
 This hotel is located at the center of the city that helps in gaining attention from large
number of visitors.
 Prominent places of London i.e. Harrods department store, Sloane Street, Hyde Park and
Buckingham Palace and other related are at the walking distance that again act as a
strength for the company.
 It has different types of room option, from single bedroom to 4, that certainly meets the
need of varied visitors
 It is a boutique hotel that offers quality and attractive ambiance through which needs of
the customers is met in effectual manner.
 It has well furnished rooms and bathroom which essentially boost the satisfaction level of
customers.
 Hotel has an online portal that aids in making wireless contact with customers and offers
them an option of booking and paying for room.
 Free Wi-Fi access act as a strength for the hotel
Weakness
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 Hotel lacks elevator facility which causes difficulty to elder people to move up and down
in the hotel.
 Hotelier staff is semi-skilled and due to this, discrepancies in services are witnessed every
now and then.
 Also, customers don’t have an option to view the image of the rooms from the website so
that they can make decision regarding the same.
 No doubt hotel offers sound ambiance and facility, but its brand awareness is very low as
compared to other bed and breakfast hotels.
 The hotel doesn’t have a MIS (Management Information System) from which
management of rooms becomes messy for front desk staff (Beaufort House. 2015).
1.2 Analysis of Business using Comparative Measure of Performance
In order to analyze the business, comparative measure of performance is incorporated in
which performance of Beaufort House is done with one of its direct competitor i.e. Keslake
Towers. For the purpose of comparing the performance, different KPI have been considered
namely profit margin, non-financial measures, turnover and perception of the customers. Keslake
Towers is a bed and breakfast hotel that offers variety of services to attract the customers
towards it. In this regard, following are the comparative performance of above mentioned Hotels.
Table 1: Profit of the Hotels
Year Beaufort House Keslake Towers
Profit Before Tax
('000)
Profit After Tax
('000)
Profit Before Tax
('000)
Profit After Tax
('000)
2010 171.45 137.16 143.5 114.8
2011 177.75 142.2 161.35 129.08
2012 193.05 154.44 196.7 157.36
2013 235.35 188.28 210.35 168.28
2014 269.55 215.64 228.55 182.84
With the help of above table, it has been evident that Beaufort House is having high
profit then that of Keslake Towers. This is favorable for the company as this will help the
company can invest for expansion or for making provision of delivering sound services. It also
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signifies that Beaufort House has high profit that will aids it in sustaining in the market for
longer. Apart from it, the hotel can increase its profit margin by developing and sound and
appropriate strategies.
Table 2: Sales of the Hotels
Year Beaufort House Keslake Towers
2010 381 410
2011 395 461
2012 429 562
2013 523 601
2014 599 653
From table 1 and 2, it can be state that Beaufort Hotel is having profit margin of around
45% whereas Keslake Towers with the profit of 35%. From this, it can state that former hotel
possess good value and this will essentially help it in attaining an edge over their rivals. In
addition to it, high profit increases the chances of sustainability as well and this will help the
company in developing its operational base as well. Moreover, Beaufort House can even develop
its services from the profit earned through which customer satisfaction level will increased
immensely. Hence, it aids in developing high brand image among the target population.
Table 3: Non Financial Performance
Year Ending 2014 Beaufort House Keslake Towers
Staff turnover 13% 17%
Sick Leaves/Absenteeism 35 days 21 days
Job offers acceptance 91% 82%
Job satisfaction surveys 93% 89%
Above table signifies the non financial performance of mentioned hotels which signifies
that both the hotel has some positive aspect and some negative. Within the context of staff
turnover, Keslake Towers has 17% attrition rate from which this hotel is not able to offer better
services to customers. On the other hand, Beaufort House has 35 days sick leaves from which
operational efficiency of the company gets reduced. However, it has high acceptance level for
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job offers and 93% as a satisfaction rate of job which is relatively high than other organization.
From this, Beaufort House has high performance than that of other organization.
Table 4: Customer Perception
Year Ending 2014 Beaufort House Keslake Towers
Is it good value 5 6
Can it really deliver superior performance 4 6
How does it compare with competitor
offerings 5 6
How will it compare with competitor
offerings in the future given competitive
innovations
5 5
Rating from the scale of 1 to 7
1: Lowest
7: Highest
Table 4 signifies the value that been derive from the customer perception of both the
hotels. From this, it has been evident that Beaufort House lacks somewhere in offering quality
and sound service to customers as compared to other hotel. Therefore, it is required that the hotel
must incorporate practice from which better service scan be offered to their guests. In this
context, regular training and development can be offered to employees. Also, proper monitoring
is required so that standard services can be shared to employees.
TASK 2
2.1 Activities to Overcome Weaknesses of Beaufort House
From the company analysis, it has been evident that company is facing varied issues with
regards to management and customers service and this certainly act as weaknesses. Firstly, cited
hotel must install a simple version of room management system so that they can able to
overcome the issues of poor management. Through this, better room management will be done
that will aids in offering sound services to customers. Further, this system will help in tracking
record of inventory, daily expenses, track on revenue and other related from which better
monitoring can be possible (Street and Cameron, 2007). In addition to it, MIS will assist in
offering proper and clear information to individuals related to availability of room. This will aids
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in meeting the requirement of the client and aids in offering sound services. Further, monitoring
of resources will become clear through this that certainly aids in taking corrective actions.
In addition to it, the hotel can even install small elevator in the premises so that elderly
people can use it. By installing this, customers will not shift to other organization just for the
reason of no elevator in the hotel. From this, operational efficiency of the company gets
increased. Additionally, mentioned hotel can be promote on social media such as Facebook so
that it can reach to large number of target customers. From this, weakness of poor brand
awareness will get omitted (Riding and Orser, 2007). In addition to it, company can even
promote the hotel on the varied tourism websites through third party banner in order to increase
the number of guest in the hotel. It is also evident that company is facing issue with regards poor
service in the hotel. In this context, company can conduct proper training and development so
that skills of employees get increased and they are able to offer standard services to each and
every customers. Hence, these are the measures that can be taken into account for overcoming
the weaknesses of the hotel.
2.2 Methods for Enhancing the Existing Performance of Beaufort Hotel
Through company analysis, it has been evident that mentioned hotel is enjoying high
profit margin and job satisfaction that certainly aids the company in attaining the business
objectives. However, it is required to strengthen further so that prevailing performance of the
company can even be increased. In this regard, following are the measures that can be taken into
account by the mentioned hotel:
 The hotel is already offering free Wi-Fi services to their in house guest that aids them in
meeting the needs. However, hotel management can even issue tab or mobile with local
SIM to their guest as a value added services. This will help guest in different manner and
it will certainly aids in boosting the existing performance (Lamprecht, 2005).
 Another facility that can be offered to guest is related to offering foods to guest in their
room. Since, this hotel is bed and breakfast therefore there is no provision for lunch and
dinner in the premises. Therefore, the hotel staff can arrange foods from nearby hotels so
that requirement of food by customers can be fulfilled. In this regard, menu card can be
arrange in the room itself and same can be ordered to hotel staff who will further collect
the order from restaurant and serve in the room. This will aids in boosting the
effectiveness of service of the cited establishment (Evans, 2002).
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 In addition to it, common music room can be made in Beaufort House where guests can
listen to songs which they like. This will make them feel fresh and hence develops craze
as well. It is one of the unique facility that can aid value to hotel in attracting more of
customers towards it.
 Hotel can even offer facilities of cab arranging of different types in order to offer
convenience to guest. For this purpose, hotel can tie up with local cab company in order
to boost the satisfaction level of employees. From this, hotel can increase their source of
revenue that aids it in expanding further (Reid, 2007).
2.3 New Areas for Expanding the Business of Beaufort House
It is required that business expansion must be practiced so that new options of revenue
can be attained. In this regard, cited company can even expand into several new areas in order to
increases the profitability and efficiency. Considering the present position of the cited
organization, following areas for expansion are recommend:
1. Bar and Pub: Hotel is located in prominent place of London and therefore it can open pub
in the premises as part of expansion. In this regard, small area needs to be arrange where
arrangement for pub can be done. However, this option is not acceptable on the grounds
that by opening pub, in-house guest will not feel comfortable (Wiklund, Davidsson and
Delmar, 2003). Also, it will make them disturb from which customer satisfaction will
decline. This will certainly affect the main revenue stream of the Beaufort House.
2. Café: Another option that can be considered by the cited hotel is related to café. In this,
company can open roof top café where snacks and beverages will be available. This will
aids in attracting more of customers to hotel along with local people to café. From this,
sales of the company get increased and it will help the firm in attaining high growth
(Small and et.al., 2011).
3. Fine Dine: Apart from pub and café, Beaufort House can even open fine dine instead of
café on roof. From this, company can earn more revenue than that of café and this will
essentially help in attaining an edge over their rivals. From this, company can attract both
visitors and local people through which profit margin of the hotel gets increased.
However, it is required to recruit chefs of different cuisine and varied employees for
operating restaurant successfully. Also, it requires high investment.
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Considering these three option, it is advisable to hotel that it should open a café on the
roof of the hotel in order to attract more of customers. It is a feasible solution because it requires
low investment and space, further it will aids in increasing the footprints in the hotel from which
brand awareness can be increased further. Through this, in-house guest will also not get disturb
as this operation will be running on roof (Islam, 2009). Hence, Beaufort House must open café as
part of expanding the business activity.
TASK 3
3.1 Existing Business Objective and Plan of the Hotel
By considering the scenario of Beaufort House, it has been evident that company has
business objective of offering quality and effectual accommodation facility to guest. Also, it
aims to fulfil the needs of customers in every sense so that they can be satisfied in every sense.
Also, the company has a plan to tie up with application that offers option to book room through
mobile only. From this, overall sales volume of the company gets increased and hence they can
able to attain an edge over their rivals. Additionally, it also wants to run effective marketing
campaign as part of increasing its sales volume and to spread the awareness among target
customers. In this regard, it has tie up with local marketers helps them in conducting integrated
marketing activity (Bridge and O'Neill, 2012). Through this, promotion is done on internet,
newspaper, magazines and other relevant sources. From this, they are able to attract large
number of customers towards it. Apart from it, company also has an objective of boosting its
brand loyalty by meeting with the needs and wants of the customers in an effectual manner.
Another concern for boosting brand loyalty is that they can gain benefits in terms of repeat
purchase (Balogun, 2010).
3.2 Revised Business Plan for Beaufort Café
In order to develop the café in the premises of the hotel, it is required to incorporate
changes so that ultimate objective can be attained. In this regard, company needs to arrange
finance so that they can develop infrastructure for the café. To arrange the same, half portion can
be attained from retained earnings and remaining either from bank loan or from owner’s capital.
This will help in minimizing the cost of capital for the hotel and hence less interest will be paid
on it (Athayde, 2012). In addition to it, manpower is another concern and same need to be
recruited in order to offer services in the café. In this regard, 1 chef and 2 assistant to it will be
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recruited that will aids in offering services to customers (Fowler, 2002). Further, 2 serving staff
will be recruited so that whole process can work without any flaws. With the help of it, turnover
of the mentioned hotel can be increased and it will aids in attaining an edge over their rivals.
Also, it has been evident that this plan will support the company in increasing its profit by 7-9%
in the initial 2 years.
3.3 Action Plan for Adopting Business Plan
In order to apply the business plan, following action plan will be taken into account:
 Development of Infrastructure: Since, café will start on roof therefore it need to develop
the infrastructure for the same. For this purpose, a contractor will be hired that will make
plan for construction and accordingly change will be incorporate on the roof. Further,
kitchen will be build and required equipment will be installed so that better and timely
services can be offered to customers (Parsa and Kwansa, 2002). For this purpose, time of
2 months is allotted in which whole construction related work will be compered.
 Staffing: It is required to employ 1 chef and 2 assistant so that effectual services can be
offered to the customers. Further, 2 serving staff will be recruited so that whole process
can work without any flaws. In this context, employees will be recruited from references
of existing employee. Further, chef will be recruited from consulting company so that
highly skilled and experiences person can be selected (Soriano, 2012).
 Marketing: For the café to be famous, marketing need to be done. In this context,
marketing for new café need to be done in an integrated manner so that brand awareness
can be increased. In this regard, promotion can be done through social media, email,
mobile marketing, newspaper and banners. Through this, local people came to know
about the café and hence sales will increased.
TASK 4
4.1 Impact of Change on Business and Personnel
Opening café is a big change for small hotel like Beaufort House and it will cause serious
impact on the business and personnel of this hotel. From the café, business will witness high
sales and profit which will certainly increase the efficiency of the company in the market area. In
addition to it, operational efficiency of the company will get increase through it and this will aids
in supporting company in boosting its profit margin as well. Through this, hotel will able to
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employ new technology and advancement in operations that aids in boosting the efficiency of the
company (Fink and Kraus, 2009). Apart from it, hotel will able to do better management of
inventory that aids in reducing cost and optimum utilization of resources. In addition to it,
marketing of company will be done that aids in increasing the awareness and hence it leads to
attainment of more customers.
On the other hand, this change will affect the performance of existing employee as they
will isolated as new set of employees will be joining the company. From this, rivalry among
employee will be increase and it can lead to interval conflict. Through this, performance of the
company may get affected. However, to manage the same company must offer cross department
training so that bonding between employees can be developed (Bridge, O'Neill and Martin,
2009). This will help in rectifying the issue of confluent and workplace disputes.
4.2 Management of Change in Beaufort Hotel
For the purpose of managing change, Kotter’s model of change management can be
applied. This has been enumerated below:
 Creating sense of urgency: Here, management can influence employees for gaining
change in the organization so that work can be managed in an effectual manner.
 Building guide coalition: After this, key employees can be identified and same will be
used for applying change in the organization. This will aids in attaining change in the
company and aids in managing resistance to change (Blankson, 2000).
 Formation of vision and initiatives: Company can develop long and short term goals so
that same can be attained by the team. This will help them in showcasing that things are
working correctly.
 Enlisting a volunteer army: At this moment, the company can track the employees that
are willing to change their department from hotel staff to café staff. With this, transfer
can be done and they will feel motivated.
 Enabling actions by removing barriers: barriers can be removed by negotiating with
employees and developing plan for future course of actions (Morrison, Breen and Ali,
2003).
 Celebrate short term wins: Here, short term wins needs to be celebrated.
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 Sustain Acceleration: Hotel need to enhance the capabilities on regular basis for
incorporating change in the organization.
 Institute changes- At the final stage, proper relationship among new behavior and
existing culture of company need to done so that change can be accepted at every stage
(Thurik, 2004).
4.3 Monitoring Improvements for the Performance of Business
It is essential to monitor the performance of business so that deviation can be tracked. In
this context, company need to conduct meetings on regular basis so that review on performance
can be made. Further, practice of balance scorecard can be incorporated in which performance
can be tracked on different point (Yavitz and Newman, 2006). Apart from it, following are the
steps that can be incorporate to monitor the performance of the Beaufort House:
Table 5: Activities
Goals Time Period
(Months)
Preceding
Initiate project 1
Collect the Facts 2 1
Market analysis 1 1,2
Collection of funds 3 3
Application of strategies 1 4
Installation of new assets 1 4,5
Talk to suppliers 2 6
Installing New technologies 1 7
Training employees 2 8
Managing the change 1 6,7,8
Monitoring 2 9,10
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Figure 2: Gantt Chart
CONCLUSION
From this report, it has been concluded that small company can improve their
performance by employing small changes in their operation or by investing in related business
opportunities. In this regard, Beaufort House can able to boost their operational efficiency and
market share by opening café on the roof.
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Online
Beaufort House. 2015. Available through: <http://www.beauforthouse.co.uk/destination.asp>.
[Accessed on 11th December 2015].
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