Qbic Hotel Business Performance and Expansion Plan

This assignment provides a detailed business performance analysis of Qbic Hotel, including an overview of its type, structure, size, goals, mission, and objectives. The report summarizes the current performance of the hotel and identifies weaknesses to be addressed. It also proposes strategies for maintaining current performance, expanding business operations, and improving overall performance through changes in management practices.

SMALL BUSINESS
ENTERPRISE

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
A. Type, structure, size, mission and goals & objectives of the organisation and internal
constraints & restrictions on the business..............................................................................1
B. Comparison of current performance of the business with the previous years...................2
TASK 2............................................................................................................................................5
A. Actions to overcome from the weakness by using model................................................5
B. Ways through which current performance can be maintained and strengthened..............6
C. Appropriate actions taken for the expansion of business..................................................7
TASK 3............................................................................................................................................9
A. Business plan for organisation with detail assessment of objectives & plan....................9
B. Revise plan with changes in business objectives & preparation of an action plan..........10
TASK 4..........................................................................................................................................11
A. Impact of changes on organisation internally & externally.............................................11
B. Plan to manage changes in business................................................................................12
C, Methods to improve performance of business after changes...........................................13
CONCLUSIONS............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Small scale enterprises are companies which owned & controlled by partnership firm &
corporation which does its operations by employing less number of employees 10-15 and having
a turnover of £2 million to £10 million. Most of the businesses running in the United Kingdom
are small scale enterprises. This report includes type, structure, size, mission & objective and
internal constraint & restrictions of Qbic Hotel. Further, this report compares current
performance of the hotel with the previous year. Furthermore, this report explains actions to
overcome from the weakness & to expand the business. Moreover, this report elaborate ways to
improve & maintain current performance of the hotel. Further, this develop a business plan and
revise the plan in accordance with the changes in business objective. Furthermore, this report
explains impact of changes on internal & external operations of the hotel. At last, this report
develop a plan on managing the changes and monitor & improve the performance of hotel after
changes.
TASK 1
A. Type, structure, size, mission and goals & objectives of the organisation and internal
constraints & restrictions on the business
Qbic Hotel is a UK based small scale hotel which is offering its services in Amsterdam &
London. It is a 171-bedroom hotel and offers cool & modern accommodation facilities to the
customers (Kandampully, Zhang and Bilgihan, 2015).
 Type- Qbic hotel is an organisation of hospitality sector and it is a type of Hotel
small scale business which offers various services such as foods & beverages,
accommodation and vehicle facility to its customers.
 Structure- Qbic Hotel follows a hierarchical structure which shows leadership at
all the levels operating in the hotel.
 Size-Qbic Hotels is Small scale hotel which generate revenue of £6 million per
annum.
 Mission-Mission of Qbic Hotel is to offer modern & affordable services to the
community and to provide cool & valued experience to the customers.
 Goals-Goal of Qbic Hotel is to expand its business in 10 more cities in UK & also
in Europe in next 7 years.
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 Objectives-Objective of Qbic Hotel is to enlarge its operations by offering
comfortable bed, peaceful bedrooms, clean accommodation, free Wi-Fi and tasty
& hygienic food.
Internal constraints & Restrictions
 Capital Availability- Qbic Hotel is a small scale business so it has a restriction on
investment of further capital turnover because turnover of this type of business cannot
exceed above £10 million (Ahmed, Wingert and Gad El Rab, 2015).
 Financial Constraints- Qbic Hotel is a small scale business so it also has a restriction on
its budget and spending. Hotel cannot spend much on improving its facilities & offerings
because it is a small scale business.
B. Comparison of current performance of the business with the previous years
The current performance (2018) of the Qbic Hotel is improved from the previous year (2017)
performance. There is an increase in cash inflows of hotel in year 2018 by 1.7% as compared to
2017. A huge increase in assets & decrease in liabilities of the hotel shows Hotel is in a good
position & it has sufficient assets to meet its all liabilities. Assets of Qbic hotel is increase by
49.03% from the previous year and liabilities are decreased by 35.07% as compare to the
previous year. Net Worth of the Qbic Hotel shows an declining trend and it is declined by
18.79% in 2017 as compared to 2018 which shows a reduction in annual growth rate. Whereas
overall operations of the hotel is in profit (Lashley, 2016).
2
Il
lustration 1: Annual Revenue
Source: (Qbic Hotel Revenue, 2015)

Revenue of Qbic Hotel is showing and upward trend year by year which shows that performance
of the hotel is getting stronger every year and business of the hotel is expanding which results in
increase in customers, market share and profits of the Hotel.
Ratio analysis of Qbic hotel is enumerated below:
Particulars Formulas 2016 2017
Current assets 1074136 1600771
Current liabilities 948873 1281602
Current ratio Current assets / 1.13 1.25
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I
llustration 2: Revenue Growth
Source:(Revenue growth of Qbic Hotel, 2015)

Current liabilities
Long-term debt 9051884 9523336
Shareholders’ equity 2421758 2976806
Debt-equity ratio Long-term debt /
Shareholders’ equity 3.74 3.20
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Interpretation: Outcome of ratio analysis shows that current ratio of QBIC increased from
1.13 to 1.25. However, in comparison to ideal ratio such as 2:1 company’s liquidity position is
not good. Thus, focus needs to be placed on maintaining current assets within the firm in line
with the level of liabilities. Further, as per ideal framework debt-equity ratio of the company
should be .5:1. On the other side, current ratio of the company exhibits that company fulfilled
most of its financial need through debt rather than equity. Thus, at the raining funds company
should keep in mind ideal ratio which in turn assists in developing optimal capital structure.
Currently, both liquidity and solvency position of Qbic can said to be good.
TASK 2
A. Actions to overcome from the weakness by using model
Strength & Weakness of Qbic Hotel can be analyzed by using SWOT Analysis, which is
discussed below
SWOT Analysis
Strengths Weakness
 It is a small enterprises thus, it has less
competition in market which enhances
customer base & profitability of Qbic
 Qbic hotel faces a problem in retaining
and acquiring talented employees in
work place.
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Hotel.
 Qbic Hotel use innovative technology
and ideas which is a strength for hotel.
 Hotel is not able to provide quality
service to its customers which is also a
weakness of Qbic Hotel
Opportunities Threats
 Demand of Hospitality business is also
increasing thus, it is an opportunity for
Qbic Hotel.
 Qbic hotel also has an opportunity to
expand its business
 Many new hotels are opening in
hospitality industry which is a threat for
Qbic Hotel.
 Threat of various innovative
technology used by its competitors.
Qbic Hotel offers affordable & cool facilities beside this some weakness are also
identified in the hotel such as shortage of skilled labours and quality of services. Hotel can
overcome from all these weaknesses in the following ways-
 Shortage of skilled Labour- Weakness of Qbic Hotel is, it is not able to retain qualified
& skilled labours in its business. For overcoming from this problem it is recommended to
the manager of the hotel to organize training & development programs for its existing
employees so that they can learn new & innovative skills which attracts customers. HR
manager of the hotel also has to develop a systematic recruitment plan so, that hotel can
employ talented workforce in the business. Qbic Hotel uses E-HRM Model for
maintaining data of its staff and their skills. With the help of this model Hotel is able to
retain & acquire talented staff in hotel. Thus, this model helps in overcoming from this
weakness.
 Quality of Services- It is also an identified weakness for Qbic Hotel and for overcoming
from this weakness hotel has to use Total Quality Management model with this model
hotel can improve quality of its services according to the demand of customers because
this model motivate its employees to commit continuous improvement of products &
services and take online & offline feedback from its customers which helps the hotel
manager in improving quality of its services. Hotel also can improve quality of its
services by reviewing operations of its competitors (Lugosi and Jameson, 2017).
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B. Ways through which current performance can be maintained and strengthened
Qbic Hotel has to maintain & improve its current performance which helps hotel in
generating more revenue and increases customers base and market share of the hotel. Qbic hotel
can maintain & improve its offerings in the following ways discussed below-
 Revise Prices of Rooms- For maintaining performance Qbic Hotel has to maintain its
prices and change the prices according to the competition in the hospitality industry and
change in economic factors. This helps the hotel in retaining its customers and
maintaining profits because affordable prices attracts customers.
 Focus on value- Qbic Hotel has to improve quality of its services by offering innovative
designs, location and healthy & tasty services. Beside, all this hotel has to offer value
added services like free spa, parking, discounts and vouchers to attract customers of the
hotel. Thus, this helps in maintain current performance of the hotel because variety of
services attracts customers.
 Managing Social Media-Social media is most powerful way of managing & improving
performance of Qbic Hotel. Thus, hotel has to maintain all its social media sites with the
high ratings and availability this attract youngsters and modern customers.
 Building Relationship- For maintaining position in the hospitality industry Qbic Hotel
has to build relationship with its customers by taking feedbacks from them and improving
services of the hotel according to the feedbacks. Hotel also has to maintain relationship
with its employees and suppliers which helps in improving quality of services offered by
Qbic Hotel because good relationship attracts customers and existing customers also
helps company in introducing new customers (Gerba and Viswanadham, 2016).
 Increasing use of Digital Technology- Digital technology helps the hotel in improving
its services with the help of this Hotel can provide online booking facility and receiving
online feedback from its customers. All this services are given by hotel through
developing customised online website and by using online sites such as Facebook &
Twitter.
C. Appropriate actions taken for the expansion of business
Qbic Hotel can expand its business in the hospitality sector and it can be done by using
Ansoff Matrix-
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Market Development- Qbic hotel can expand its business in market by offering its
existing services in new market. Hotel can does so by establishing new hotel in different areas.
Qbic Hotel is planning to establish more hotels in 10 more countries of United Kingdom this
helps company in its expansion and it also helps hotel in earning more profits and enhances
market share of hotel by increasing its customer base.
Market Penetration- Market penetration is a strategy used by hotel for expansion of its
business. According to this strategy Qbic Hotel improves offerings of its existing products in
existing market. In accordance with this strategy of Ansoff matric Qbic Hotel can attain success
by offering services to the customers at affordable or competitive prices. In this regard, hotel unit
needs to lay emphasis on improving distribution network and other aspects. This in turn helps in
reducing cost and enhancing profitability to a great extent. This helps hotel in maximising
customer base and market base of hotel. Hotel also implement this strategy by remaining active
on all the social media sites such as twitter, Facebook, Instagram, Trip Advisor &
YouTube(Hallberg, 2015). Hotel can also improve quality of its services and offerings by giving
training to its employees & staff and by encouraging the staff to use innovative technology
which attracts the customers and require less time in offering services of the hotel.
Product Development- Product Development is a strategy in which company introduce
new product in existing market so that customers can get attracted. By using this strategy Qbic
Hotel needs to introduce new product in market such as Spa Facilities, Swimming, Gym and
club. Introduction of new services by hotel helps hotel in strengthening its customer base and
market share. It also helps hotel in getting higher profits. This strategy also require less
investment thus, it is the best way to expand business for a small scale organisation like Qbic
Hotel.
Diversification- Diversification is a strategy through which organisation expand its
business by developing new services and offering them in new market. Thus, for attaining
success in the competitive business arena Qbic should lay focus on opening restaurants in
developing countries. Hence, by introducing new food items in emerging market such as India
according to the taste & preferences of customers company can get desired level of outcome..
This strategy further helps Qbic Hotel grabbing customers which in turn increases revenue and
profits of the hotel.
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Thus, Qbic Hotel can expand its business by using these strategies. It is recommended to
Qbic Hotel to use Market Penetration strategy as business of hotel is small and it is unable to
invest much in its expansion. Thus, this strategy is most suitable as it requires less investment,
time and cost. This also helpful for hotel in diversification and creating awareness in existing
market it also benefits hotel in earning more profits.
TASK 3
A. Business plan for organisation with detail assessment of objectives & plan
Business plan is important for Qbic Hotel to grow in hospitality industry as it helps
employees of company in enhancing performance of business and helps in achieving its
objective. Business plan of company is described below-
 Executive summary- Qbic hotel is a London based which offers services related rto
accommodation, foods & beverages and many other ancillary services. In this business
plan Qbic hotel will operate its business in a way in achieving its objectives. Further,
hotel will analyse its market & competitors. Furthermore, manager will compare its
financial performance and make plans to increase its profits & revenues. At last, manager
will develop marketing ideas & strategies so that company can increase its customer base
& market share.
 Mission- Mission of Qbic Hotel is to offer healthy & hygienic food to its customer and to
provide clean accommodation to customers.
 Vision- Vision of Qbic Hotel is to generate more profits and to maximise market share &
customer base of hotel.
 Objective-
 To widen customer reach by using digital technologies.
 To maximize productivity & profitability by making optimum use of resources &
reducing cost level.
 To enhance brand image by using environment friendly technologies.
 Market Analysis- Travel & tourism are increasing day by day which leads an
opportunity for Qbic hotel because its increases customer base of company. Competition
in hospitality industry is increasing day by day it is threat for company but Qbic Hotel
use innovative services and technologies which differentiate it from its competitors which
helps hotel in enhancing its profits. Visitors prefer law price accommodation and it is a
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strength for Qbic Hotel that it follow law pricing strategy (Cortes, Berry and Ishaq,
2017).
 Financial projection- Profits & revenue of Qbic Hotel shows an increasing trend from
last 5 years which shows company has potential to expand & earn more profits in
upcoming years and company is also able to achieve its objectives. Profits earned by
hotel helps hotel in further investment. Thus, company decided to invest 70% of its
profits in expansion of its business and wants earn profits up to 15% in next 2 years as
objective of hotel is to diversify its business and its plan is to diversify number of its
offerings.
 Marketing ideas & Strategies- Qbic Hotel use various marketing strategies to promote
its offerings & to expand its business with the hospitality industry. Hotel develops a
attractive website to facilitate online booking of rooms, giving detailed information about
the offerings of Hotel and for collecting reviews & feedback from its customers. Hotel
also advertise its business through social media websites such as Instagram, twitter and
Facebook for enhancing its customer base. Staff of hotel also focuses on building
relationship with its customers which helps in enhancing brand image of Qbic Hotel.
B. Revise plan with changes in business objectives & preparation of an action plan
Changes in Business Objective- Revised objective of Qbic Hotel is to redesign its interior by
recycled products, use environmental friendly techniques for cooking and to offer clean &
hygienic accommodation services to its customers.
This revised objective of hotel support Qbic Hotel in expanding its customer base by
attracting customers and helps company in further expansion of its business.
Action Plan-
Objective Task Time scale Responsibility Evaluation
To Increase use
of Eco-friendly
techniques for
cooking.
For achieving this
objective company
has to offer foods in
containers which can
be recycled and does
not harm
environment. Qbic
6-10
months
It is responsibility of
managers of Qbic
Hotel to take time to
time actions so that
hotel can achieve its
objective on time.
Manager of hotel is
After
implementing
this plan it is
evaluated Interior
designed by Qbic
Hotel can be
recycled and all
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Hotel also use solar
energy for cooking
foods & beverages
(Aremu and
Adeyemi, 2017).
also responsible for
conducting training
programs for
motivating
customers to use
techniques which
does not harm
environment.
the disposable &
packing material
used by hotel is
environmental
friendly. This
initiative attracts
customers and
which further
increases
revenue.
Developing
marketing
strategies.
To promote offerings
of Qbic Hotel,
Marketing manager
of hotel uses various
digital technologies
such as social media
such as Facebook &
twitter.
2-4 months Marketing manager
of Qbic Hotel is
responsible for
making changes in
marketing strategies
according to
requirement of
customers and
change in
technology.
Use of Social
media &
customized
website by Qbic
Hotel enhance
customers of
hotel and which
helps company in
maximizing its
profits & market
share (Cortes,
Berry and Ishaq,
2017).
TASK 4
A. Impact of changes on organisation internally & externally
Qbic Hotel made various changes in its strategies and offerings. This changes made by
Hotel has an impact on over all workings of business internally & externally. Customers,
suppliers and competitors are external factors of company and internal factors includes
employees, technology used, management & financials of hotel. Diversification in offerings of
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products and services of hotel has an impact on competitors of hotel, it reduces competition in
the market as all hotels does not provide variety of services and it also helps Qbic Hotel in
enhancing its customer base as hotel introduce innovative & digital technology in its operations
(Olsen, Ching-Yick and West, 2018).
Use of advance technology also helps hotel management in offering efficient & faster
services which in turn attracts customers and increases profits of hotel. Financial position of
hotel also gets strengthened if company changes its marketing strategies and pricing policies.
Hotel plans to invest more of its profits in expansion which has an impact on management of
hotel, brand image & market share. In other words, it can be presented that company’s strategy
pertaining to social media marketing (SMM) will place positive impact from both the
perspectives internal and external. At internal and external level, strategy pertaining to SMM will
enable firm to maximize both productivity and profitability. Moreover, through using SMM
strategy business unit can widen its reach at global level and thereby enhance customer base
significantly. Along with this, eco-friendly business practices will also help company in making
optimum utilization of resources. Further, environment friendly practices assist company in
creating distinct image in the mind of customers and meanwhile enhances brand image.
B. Plan to manage changes in business
Changes Responsibilities Evaluation Time Scale
Change in
Marketing
Strategies
After adopting new
marketing strategies
management of Qbic
Hotel is responsible for
monitoring the
strategies and also for
making changes in
strategies if required.
Managing changes in
marketing strategy
helps Qbic Hotel in
expanding its customer
base and profitability of
hotel(Schmidgall,
2016).
1-2 months
Expansion of
Offerings
Qbic hotel diversify its
business by including
more services in its
portfolio so, now it is
Expansion of
operations of Qbic
Hotel helps in meeting
its objectives with this
3-4 months
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responsibility of hotel
manager to check that
these services are liked
by customers or not by
collecting feedback
from customers.
revenue of hotel also
increases by 9 % in
following financial
year.
Kotter’s 8 step leading change method:
Figure 1Kotter's 8 stages model
(Source: Kotter’s 8 step Model of Change, 2019)
In accordance with translating and bringing adequate changes in the leadership as well as
organizational performance on which there have been requirement of bringing the adequate
strategies and executional operational ascertainment which would be effective in raising the level
of operational performance. However, there has been various stages which are required to be
followed by the leaders in brining appropriate changes in operations.
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C, Methods to improve performance of business after changes
Different methods are used by Qbic Hotel to monitor & improving its overall
performance which are discussed below-
 RevPAR- By calculating revenue per available room Qbic Hotel can monitor changes in
revenue of hotel. If RevPAR of hotel is increasing day by day after implementing
changes than it shows that performance of hotel is improving and by calculating RevPAR
company also increase its revenue by setting up new objectives. Thus, this method
improves improves performance of company because if RevPAR is decreased at any time
than company can make changes in its offerings according to that.
 Management by Objectives- Managers of Qbic Hotel can monitor performance of its
employees by using this method. According to this method managers set goals for staff of
hotel provide them facilities so that they can achieve goals. This method improves
efficiency of staff members of hotel which leads to increased performance, profitability
and market share of company. Managers of hotel use various applications to improve
performance of staff such as training & development, coaching & motivation.
 Feedback- Qbic Hotel also can improve its performance by taking feedbacks from
customer and its staff members. This helps hotel in monitoring that changes helps
company in improving its performance or not and how hotel can further improve its
performance by taking actions in accordance with feedback received from customers and
according to their demand(Williams and Dobelman, 2017).
 Benchmarking: This technique is required to be implicated by a hospitality industry with
reference to make proper records of activities performed by the employees. Leaders and
managerial professionals at QBIC hotel will have benefits through such implication as
they can motivate and enhance the operational capacity of workforce.
 TQM: it entitles Qbic hotel professionals in analysing the quality of services are being
offered by them among their consumers. However, which would be adequate and
bringing control, execution as well as relevant changes in the process which would
positively impact on enhancing the quality of offerings.
CONCLUSIONS
This report outlined type, structure, size, goals, mission & objectives of Qbic hotel and
internal restrictions. Further, this report summaries current performance of business with
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previous year's performance. Furthermore, this report concludes actions to resolving weakness.
Moreover, this report outlined ways to maintain current performance of business. Further, this
report outlined actions for expanding business of hotel. Furthermore, this report summaries a
business plan and develop an action plan to implement changes in hotel. Moreover, this report
outlined impact of changes on external & internal operations of hotel. Further, this report
outlined a plan to manage changes. At last, this report concluded methods of improving
performance after changes.
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