Small Business Enterprise Assignment - Brooklands Hotel

Small Business Enterprise

Table of Contents
INTRODUCTION ..........................................................................................................................2
TASK 1............................................................................................................................................3
Profile of the business ...........................................................................................................3
Analysis of the business.........................................................................................................4
TASK 2............................................................................................................................................5
Appropriate actions to overcome the weaknesses..................................................................5
Ways in which performance can be strengthen......................................................................6
Recommendation for expanding the business........................................................................6
TASK 3............................................................................................................................................8
Existing business objectives and plans...................................................................................8
Revised plan to incorporate appropriate changes...................................................................9
Action plan for implementing the changes...........................................................................10
TASK 4..........................................................................................................................................10
Impact of the proposed changes...........................................................................................10
How the changes will be managed ......................................................................................11
Monitor improvement in the performance...........................................................................11
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................12

INTRODUCTION
Small business refers to the business that is operated at small scale and has less number
of workers, generate less revenue per annum. There are various types of small business such as
grocery stores, restaurants, small scale manufacturing companies etc. There are various forms of
small business such as it can be run by sole trader, partnership, company etc. Hospitality industry
refers to an area of service industry that includes various types of businesses such as services of
food and drink, travelling, lodging, transportation etc(Gurcaylilar-Yenidogan, T. and Aksoy,
2018). The Report will be based on Brooklands Hotel. Brooklands Hotel is located in Webridge,
United Kingdom. The Hotel offers various facilities like Spa, facilities of free Wi-Fi and
restaurants, offers packages etc. The Report will outline the analysis of the performance of the
business, recommendations for improving the weaknesses, the ways in which performance of the
organisation can be improved. The Report will also describe the objectives, incorporation of the
changes and impact of changes on business.
MAIN BODY
TASK 1
Profile of the business
Type- Brooklands Hotel is a type of small business in Hospitality business that offers
different
types of facilities such as food and drink, spa, restaurants services etc.
Organisation structure- Every type of Hotel whether it is small enterprise or large, have to
develop a structure to perform all the operations in effective way. In case of Brooklands Hotel,
there are various departments like sales, logistics, human resource, front office, food and
beverages etc.
Mission- The mission of Brooklands Hotel is to provide highest quality of the services to the
customers. To make efforts for offering flexibility, to the customers and to offer best deals to
quality customers. The Hotel will achieve the mission through personalised services to the
customers. By offering different types of services to corporate clients etc.
Vision- The vision of Brooklands Hotel is to provide delighted services and experience to
existing as well as potential clients.
Objectives-

 One of the main objective of Brooklands Hotel is to provide highest level of satisfaction
to the guests of the Hotel.
 To increase the sales of the Hotel by 10% till 2021.
 To make efforts for achieving high level of growth and profitability in the business.
Competitors- Brooklands Hotel is a small business enterprise therefore, the Hotel should
consistently monitor the existing competition in the Hospitality industry. So that, it can compete
with existing as well as emerging companies. The main competitors that are providing tough
competition with Brooklands Hotel such as McDonald's Restaurants, Bourne Leisure etc.
Strengths- There are various strengths of Brooklands Hotel such as-
 The Hotel has a strong team for that delivers great services to the customers.
 The Hotel offers flexibility to the quality customers of the hotel.
Weaknesses- The weaknesses of Brooklands Hotel are-
 It is a small business enterprise therefore, sometimes it faces financial problems.
 Lack of innovative technology of production and distribution process for delivering the
services of the hotel.
 Staff turnover around 32%((Gurcaylilar-Yenidogan, T. and Aksoy, 2018)).
 The price for one night stay in the hotel is very high.
Analysis of the business.
Performance management refers to the function of the management of organisation to
determine the performance of individual employees or group. Performance analysis of
Brooklands Hotel is as follows-
Current performance of Brooklands Hotel-
The performance of Brooklands Hotel has been improved from past years. According to Sunday
times, that has collected information from previous surveys, Brooklands Hotel in year 2016, got
the position in the list of 100 small business enterprises.
Revenue-
Revenue of the hotel has been improved from last year because, it is providing high quality
services to the clients in respect of transportation, food, spa etc. The management of Hotel
ensures safety of the workers therefore, they are motivated to work in the organisation and make
efforts for improving the level of revenue of the hotel. Present earnings of the hotel is more than
£ 35000 per year. The price of per day staying in Brooklands Hotel is £ 112(Rusu, 2016).

Staff-
Currently there are 106 workers working in Brooklands Hotel. Among 106 employees, 33% are
male and 67% are female employees((Bohari, Hin, C.W. and Fuad, 2017)).
Bedrooms-
Currently, the total number of bedrooms in Brooklands Hotel, Surrey is 120. The hotel is also
providing the facilities of spa and there are total 8 treatment rooms, restaurants and cocktail bars
in the hotel.
TASK 2
Appropriate actions to overcome the weaknesses.
There are various actions that can be taken by Brooklands Hotel for overcoming the
weakness as already discussed above. Various actions that can be taken by Brooklands Hotel are
as follows-
 One of the weakness of Brooklands Hotel is that, business is facing is financial problems.
Whether an organisation is small or large, it need funds to carry out the operations such
as delivering food and drink, fund is also to required to provide different types of services
of the hotel.
 To overcome this weakness, Brooklands Hotel can take assistance from the Government
of the country. In case of small business enterprises, the Government is always ready to
provide the necessary support in the form of loan and advice. Brooklands Hotel can
obtain funds under the scheme of enterprise finance guarantee(Storey, 2016).
 Another major weakness of the hotel is staff turnover. The management of the hotel
should develop a proper plan for the activities to be perform by the workers. This will
provide clarity regarding the work to be perform. This will help to improve job
satisfaction and employees will not leave the Hotel.
 Another major weakness of the hotel is the price it is charging for room per day. The
price is very high and to gain competitive advantage over the competitors, the hotel
should lower the price.
 Brooklands Hotel should use Porter generic strategies models for reducing the price for
staying in hotel per day. Porter generic strategy model was develop by Michael Porter.

The model has provided various strategies like cost leadership, focus and differentiation
that will help to gain competitive advantage.
 To improve the retention level of employees, Brooklands Hotel should use ERC model.
Ways in which performance can be strengthen.
Currently, the performance of the Brooklands Hotel is good because, it has achieve the
position in the list of 100 best small companies of UK. There are various ways to enhance the
current performance of the Hotel. They are as follows-
 Brooklands Hotel is having a strong team of workers that helps to deliver high quality
services to the clients. To further enhance the quality of the services of spa, bars and
restaurants of the hotel, the management should conduct market research to determine
collect information regarding the trend of the demands of guests of the hotel.
 The hotel should implement a process of collecting feedbacks from clients. So that, it will
help in implementation of the changes that are required in the hotel to improve its
performance.
 The management of the hotel should encourage all the employees for giving their
feedback(Rusu, 2016). The leader of the team of the hotel should adopt participative
style of leadership to involve the employees in decision-making of the hotel. This will
help the organisation to improve the level of job satisfaction and level of motivation of
the employees. As a result, the workers will not leave the Hotel and they will make
efforts for improving the current performance of Brooklands Hotel.
 The operations manager of the hotel should set the standards for the performance of the
employees in respect of the quality of the services the are delivering to the guests. The
performance management mechanism will help to identify any type of deficiency in the
performance of the workers.
Recommendation for expanding the business.
The scale of the business of Brooklands Hotel can be expanded in many ways. The
management of hotel will use Ansoff Matrix for determining the various strategies for
expanding the operations of the business of the hotel. Ansoff matrix has provided different types
of strategies and they are as follows-
 Market penetration-

Brooklands Hotel should adopt market penetration strategy for offering its existing services in
the existing market of hospitality industry. So that, sales of the hotel will maximise. The hotel
should focus on direct bookings through the website of the hotel. This will help to understand the
demands of clients in a better way. The hotel should reduce the per day prices of the rooms.
Setting the correct price will help the hotel to attract more and more customers.
 Market development-
Brooklands Hotel can also start its business in other geographic areas to target new geographic
segments for offering the services of the hotel such as restaurant service, spa etc. But, this
strategy may not be feasible because, the hotel is not having sufficient resources for starting
business in new geographic areas(Ravanfar, 2015).
 Product development-
The hotel should use product development strategy for developing new products or services for
existing as well as new customers. Brooklands Hotel should modify the portfolio of the products
for attracting large number of guests. This will increase the cost but, it will also offer new
opportunities to the business.
 Diversification-
Brooklands Hotel should adopt diversification strategy to set off the loss it has incurred due the
turnover of employees of the hotel. The hotel can start retail outlets for selling food or drink
items that it is currently offering to the clients. To diversify the business, firstly, the management
of the hotel should identify the niche segment.
TASK 3
Existing business objectives and plans.
The current objectives of Brooklands Hotel are as follows-
 One of the major objective of the business of the hotel is to provide high level of
satisfaction to the guests of the hotel. To achieve this objective, the employees working in
the hotel should make efforts for implementing the improvement in the process of
production and distribution of various facilities of the hotel(Mungai, E. and Ogot, 2017).
 Another major aim of Brooklands Hotels is to increase the profitability and sales of the
products or services of the hotel. To achieve this, it should set the target for the

performance of the employees that are working in different departments of the hotel. One
of the negative point is that, the efforts of the management of the hotel is not effective in
guiding the employees of the hotel. The hotel should develop the ways of achieving the
above mentioned objectives.
 Plan-
Vision- The vision of Brooklands Hotel is to provide delighted services and experience to
existing as well as potential clients.
Mission- The mission of Brooklands Hotel is to provide highest quality of the services to the
customers.
SWOT analysis-
Strengths- The Hotel offers flexibility to the quality customers of the hotel.
Weaknesses- The price for one night stay in the hotel is very high.
Opportunities-Brooklands Hotel has an opportunity to enter new geographic markets.
Threats- The hotel is facing intense competition from other hotels in the industry.
Segmentation- The hotel will segment the whole market on the basis of demographic factors of
the people such as on the basis of age, occupation, lifestyle etc(Gürel, E. and Tat, 2017).
Targeting- Brooklands Hotel will mainly target middle and high income group peoples for
offering its services.
Positioning- The hotel will use unique techniques of marketing so that, it can position the brand
image in the minds of targeted group of customers.
Revised plan to incorporate appropriate changes.
To overcome the existing weaknesses, the management of the hotel will have to develop
a revised plan. Brooklands Hotel will use the model of Mc Kinsey 7's to define the objectives of
the hotel in effective way.

Strategy- To overcome the existing weaknesses of the hotel, the organisation will adopt the
strategy of cost leadership strategy according to the porter generic strategy. The hotel should
develop and implement this strategy for reducing the operational cost for providing the services
to the clients. Reduction in the operational cost will help the hotel to reduce the price to be pay
by guests per day of staying in the hotel rooms. The strategy will provide the benefits of
competitive advantage over other hotels.
Structure- The management of the hotel should adopt a decentralised system for decision-
making. There must be a proper chain of communication at all the levels of the hotel.
System- Brooklands Hotel should make efforts for improving the system of offering the services
to the guests of the hotel. There must be a proper structure of reporting the information regarding
the performance of employees to the supervisor(Goss, 2015).
Skills- To remove the weaknesses, the management should provide proper training to the
workers of the hotel. This will help to provide improved services to the clients.
Staff- The manager of the hotel should develop appropriate policies for evaluating the
performance of the employees. This will help the hotel to improve the level of coordination
among the employees.
Figure 1 McKinsey 7's Framework
Source : (McKinsey 7's Framework,
2017)

Style- The leader of Brooklands Hotel should adopt participative leadership style to involve the
team members in the decision-making process of the hotel.
Shared values- The owner of the hotel should restrict the discrimination among the employees
that are belong to different cultures.
Action plan for implementing the changes.
The changes that Brooklands Hotel will made in the existing plan will help to improve
the performance of the organisation. The management of the hotel should properly manage the
changes that has been proposed so that, there will be no confusion among the employees. For
proper implementation of changes, Brooklands Hotel will use Kurt Lewin's Theory(Curran, J.
and Storey, 2016).
Unfreeze- Before implementing the strategy for making changes in the hotel, the management
will explain the employees the inefficiency in existing process of providing services to clients.
At this stage, the owner will make efforts for clarifying the doubts of employees.
Change- Now, all the employees will follow new process and methods for growth of the
business of Brooklands Hotel. At the stage of implementing the changes, the workers will realise
the advantages of the changes that are being implemented in the hotel.
Refreeze- At refreeze level, the hotel will achieve the improvement in the level of productivity
and cost reduction.
TASK 4
Impact of the proposed changes.
Due to the implementation of various changes in the hotel, the organisation will realise
various outcomes. They are as follow-
Positive impact- There are various positive impacts on the operations of the hotel after
implementing the strategy of cost leadership to reduce the cost of operations of the hotel. To
reduce the cost of operations, Brooklands Hotel has implemented advanced technologies such as
artificial intelligence, internet of things etc(Bridge, S. and O'Neill, 2017).
This has resulted in improvement in the satisfaction level of the guests of the hotel. Participative
leadership style helps to improve the job satisfaction level of employees and level of employee
retention has been reduced.
Negative impact-

The resistance level of workers in respect of the proposed changes is high in respect of change in
the technology of production and delivery of the services to the clients. This may affect the
profitability of the hotel.
How the changes will be managed .
To manage the changes in the hotel in effective manner, the management of Brooklands
Hotel will use Kotter's 8 steps model to manage the changes. There are various steps of the
model they are as follows-
Developing urgency- Firstly, management will create urgency so that, employees will feel the
requirement of bringing changes in the hotel. So that, they will feel importance of change in
growth of hotel.
Guiding coalitions- Now, leader of Brooklands Hotel will use the leadership skills to influence
the employees so that, they will not resist the changes(Bohari, Hin, C.W. and Fuad, 2017).
Developing vision- Now, management of hotel will develop the vision so that, employees can
easily adopt the changes in the process.
Communication- Top level management of the hotel will provide all the relevant information
related with the change to the employees of different departments.
Removing the barriers- Now, Brooklands Hotel will focus on removing the barriers that are
occurring during the implementation of changes in the hotel.
Short term achievement- The management of hotel will develop short term objectives to
achieve the success.
Gains- Now, the impact of changes will be monitored to determine positive and negative impact.
Change in culture- At last, all the people that are working in the hotel will follow organisation
culture to achieve the benefits of the changes.
Monitor improvement in the performance.
After implementing the various changes in the process of production or delivery of the
services to the clients. Brooklands Hotel will use various methods, tools and techniques for
monitoring the performance of the operations of the hotel. They are as follows-
 Feedback- The management of the hotel will develop the process of collecting feedbacks
of the guests of the hotel. Collecting the feedbacks from the clients will help to determine
the performance level of the workers of Brooklands Hotel. This will help to further

improve the process of delivering the services to the clients(Binder, Mair, Stummer, K.
and Kessler, 2016).
 Company can also use Balance Scorecard for measuring the performance by integrating
the strategy of the hotel with different functions. This will help to evaluate the current
performance of the hotel.
 Hotel should conduct performance appraisal of the employees once in every six months.
So that, the performance of individual employees can be effectively monitored.
CONCLUSION
The above Report has outlined the organisational structure, objectives, mission, vision of
Brooklands Hotel. There are various weaknesses in the operations that may impact the
performance of the hotel such as lack of financial resources, innovative technology etc. The
Report has also described the current performance of the hotel in terms of revenue, price per day
of staying in the hotel etc. The management of hotel should take assistance from government for
resolving the financial problems and the use of porters generic model for overcoming the
weaknesses. Further, the Report has explained that there must be a process of collecting
feedback, evaluating the performance of employees so that current performance can be
improved. The hotel can expand business with the help of strategies as provided by Ans-off
matrix. The Report has described the use of McKinsey model for incorporating the changes and
the importance of Kurt Lewin in managing those changes. There are various wys of monitoring
the performance.
REFERENCES
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Online-
McKinsey 7's Framework. 2017. [Online] Available Through :
<https://www.cgma.org/blogs/using-the-mckinsey-7-s-framework.html>