Managing Change in Jesmond Dene Hotel

The assignment content discusses the strategic plan for Jesmond Dene Hotel, which involves creating a new hospitality space by choosing an empty space within the hotel. The plan includes hiring architects to design the premises, allocating 3 months for construction, and staffing the space with employees from consultancy firms or using alternative options like keeping a coffee machine in the reception area. The report also outlines how the changes will impact the business, including increased productivity, revenue, and profitability. The firm is expected to conduct training sessions for less talented employees and adopt a stewardship approach to ensure success.

SMALL
BUSINESS
ENTERPRISE

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Profile of The Jesmond Dene Hotel .....................................................................................1
1.2 Analysis of the Business.......................................................................................................3
TASK 2............................................................................................................................................5
2.1 Actions to overcome identified Weaknesses ........................................................................5
2.2 Maintaining and Strengthening Existing Performance ........................................................6
2.3 New Areas for Expanding Business......................................................................................7
TASK 3............................................................................................................................................7
3.1 Existing Business Objective and Plan ..................................................................................7
3.2 Revise Business Plan to Incorporate Changes......................................................................8
3.3 Action Plan ...........................................................................................................................8
TASK 4............................................................................................................................................9
4.1 Impact of Change of Business and Personnel.......................................................................9
4.2 Managing changes in business .............................................................................................9
4.3 Monitoring Improvements within timescale ........................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
INDEX OF TABLES
Table 1: Rooms and price................................................................................................................2
Table 2: Profit of two ventures in last 5 years.................................................................................3
Table 3: Sales of the company for last 5 years...............................................................................4
Table 4: Non financial performance of Hospitality.........................................................................5

INTRODUCTION
Small business enterprise is treated as a type of business that generally employees small
workforce with not high amount of capital. These types of business ventures are generally owned
by the private players, proprietors or partnership firm. Further, these organizations are required
to develop sound strategies so that they can generally survive in the market for the achievement
of goals and objectives (Cole, Goldberg and White, 2004). Along with it, these ventures run
under the UK norms and regulations and employ less than 50 members with the turnover of less
than £6.5 million.
Further, in relation to the present report, The Jesmond Dene Hotel is taken into
consideration which is a family run bed and breakfast hotel. Further, this hotel is located
perfectly for both pleasure and business travelers as it focuses on serving guests who come from
different regions. Mentioned company also offers a range of sleeping options from a single bed
room to 5 bedded room which give customers a perfect match in terms of price and quality.
Further, cited hospitality gives free access of WiFi with an unbelievable speed to all the rooms in
the apartment. In relation to this, present report will focus on identifying the strengths and
weaknesses of the organization along with analyzing the performance that can be strengthen.
TASK 1
1.1 Profile of The Jesmond Dene Hotel
The Jesmond Dene is most centrally located St Pancras Hotels in London. It is located
near Euston Road (South Side), Camden Town Hall, St. Pancras Library. Further, this hotel is at
two minute walking distance from the King Cross underground station, five minute walk from
British Library and 15 minutes journey from the British Museum (The Jesmond Dene Hotel.
2015). Hospitality offers different types of room’s options along with competitive rates and some
of them has been explained down under:
Rooms Options Description Price (Per
Night)
Basic Single This room consists of a single
bed with LCD TV. Free Super
Fibre WIFI is available with £55.00
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unlimited access. The room has
shared bathroom
Standard Twin This room consists of 2 single
beds with private shower along
with toilet. Room has LCD TV
along with tea and coffee maker.
Free Super Fiber WIFI.
£85.00
Standard Double 1 double bed with private
shower and toilet inside the
room. Free Super Fiber WIFI is
available which is unlimited.
£85.00
Twin Basic This room consists of 2 single
beds. The room contains a wash
basin and LCD TV. Free Super
Fiber WIFI is available which is
unlimited.
£61.00
Small Standard
Triple 3 Beds
3 single beds with private
shower and toilet inside the
room. LCD TV along with tea
and coffee maker. Free Super
Fiber WIFI
£104.00
Standard Family This room comprises 1 double
bed and 2 single beds. Free
Super Fiber WIFI, LCD, with
attached toilet and shower. £116.00
Table 1: Rooms and price
In addition to it, mentioned company offers smoking free premises that generally fits the
needs and demands of the travelers as well as clients. Further, company has a feature of online
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platform where one can book the room and make payment with the help of Debit/Credit card
(Our rooms. 2015). Further, with all these features of the mentioned hotel, given below are the
strengths and weaknesses of this hospitality organization:
Strengths
 Located in the heart of city where large number of tourists visit.
 Walking distance from King Cross underground station, British Library and British
Museum.
 Attractive ambiance which attracts large number of travelers.
 Well-furnished accommodation facilities which give more comfort and pleasure to the
travelers (The Jesmond Dene Hotel. 2015). Online booking facilities for reaching the overseas customers.
Weakness
 Lacks in giving digital room management system which shows inefficiency of the cited
firm.
 Organization does not have Management Information System (MIS) which leads towards
conflicts and mismanagement.
 With small establishment, company does not have lift facility in building which makes
old guests uncomfortable
 Lack in promotion of organization and due to this company is not able to attract more of
the customers.
 Non-availability of skilled staff as mentioned company fails in giving sound services to
its clients and travelers.
1.2 Analysis of the Business
For analyzing the performance of Jesmond Dene, different comparative measures can be
taken into consideration like customer perception, profitability, sales volume and non-financial
measures. Further, for comparing the performance, Church Street Hotel is taken into account
which is located in South London, UK. This hotel offers the same accommodation and facilities
which is offered by Jesmond Dene but management practices of both the ventures are different
from each other and this characteristic makes them unique from each other (The Jesmond Dene
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Hotel. 2015). Considering this, following section possess comparative analysis of both the
business ventures that has been discussed below:
Table 2: Profit of two ventures in last 5 years
Year Jesmond Dene Hotel Church Street Hotel
Profit Before
Tax ('000)
Profit After Tax
('000)
Profit Before
Tax ('000)
Profit After Tax
('000)
2010 39.2 31.8 35.2 29.1
2011 39.8 31.9 41.2 34.3
2012 41.2 37.3 45.6 39.1
2013 55.4 47.5 59.1 51.2
2014 62.4 51.5 63.4 52.8
According to this table, it can be stated that after 2010, Church Street hotel has been
enjoying high profit margin each and every year. Further, by comparing the same, it is observed
that Jesmond Dene needs to develop some effective strategies for increasing their profit margin
in coming half a decade so that they can stay longer in the competitive environment of
hospitality (Church Street Hotel. 2015). Moreover, it is also evident that there is consequent rise
in the profit in past few years for Jesmond Dene which intends that company is having ability to
attract customers but they have to do in a constant manner for getting competitive advantage.
Table 3: Sales of the company for last 5 years
Year Jesmond Dene Hotel ('000) Church Street Hotel ('000)
2010 415.45 437.66
2011 438.33 467.23
2012 477.56 548.28
2013 561.12 606.17
2014 622.63 656.14
From 3rd table, it is concluded that Jesmond Dene hotel has low sales volume in
comparison with Church Street hotel. However, it is also articulated that Jesmond Dene is having
high profit margin of almost 11& to 13% and on the contrary, Church Street Hotel is
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emphasizing on low profit margin of just 6%. From this statement, it is inferred that Jesmond
Dene has a competing advantage over Church Hotel even with low sales and this will help it to
stay in the competition in the hospitality industry.
Table 4: Non financial performance of Hospitality
Year Ending 2014 Jesmond Dene Hotel Church Street Hotel
Staff turnover 8% 14%
Sick Leaves/Absenteeism 6 days 16 days
Job offers acceptance 14% 7%
Job satisfaction surveys 93% 86%
From the point of view of non- financial performance, it is concluded from table 4 that
Jesmond Dene has better performance as compared with Church Street Hotel. It is analyzed that
mentioned company is effective and efficient in every field (staff turnover, sick leaves, job offer
acceptance, job satisfaction) as compared with the competitior. From these figures, it can be state
that Jesmond Dene can attain their objectives significantly and along with it they can rely on
various opportunities which they have.
TASK 2
2.1 Actions to overcome identified Weaknesses
By reviewing the official portal of Jesmond Dene company it has been found that there
are some sorts of weaknesses in the firm and mentioned hospitality have to take appropriate
actions by making some strategies for the same. From analyzing, it is found that company not
having MIS software and due to this, company is facing different operational issues. In context
to this, cited venture can implement simple for of MIS where PC can be installed in different
departments of the venture (Spence and Rutherfoord, 2003). Different department will include
the front office of the hospitality, house keeping arena and also in the kitchen. With the help of
it, Jesmond Dene hotel will be able to check the revenue, inventory, management of room and
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other organization related expenses. Further, with the implementation of this software, cited firm
will also come to know regarding the poor management of rooms. Moreover, this software will
also help cited firm to have a crystal clear and sound communication within different
departments and venture will be able to give best of the services to the customers (Thurik and
Wennekers, 2004). Although, installation of software will increase the operational overhead but
it will give several benefits to the firm as mentioned company will be able to increase their
productivity and revenue in short time period.
Another weakness of the company is no lift in the apartment which is leading towards
shifting of travelers to other hotels. Mentioned company can install the lift by actually
identifying the arena that whether outside or inside so that operation of the company don't get
affected (Street and Cameron, 2007). With the installation, sale of the company will increase and
the profit margin will to increase upto a great extent. Further, the lift installation will move this
weakness into the strength of the firm and they will be able to grasp the competitive advantage as
well.
Further, Jesmond Dene hotel is also facing the problem in attracting the targeted
customers. In order to sort out this, organization can implement a promotional plan which will be
advertised with the help of different advertising sources. Moreover, apart from advertisement in
newspaper, radio, etc. cited firm can use social media marketing for attracting large customer
base towards the hotel. Company can make their own Facebook page, twitter account and can
post all the deals and discount offers to grab the attention of the target audience (Fowler, 2002).
Further, linking and getting collaborated with different tour operator sites can also influence the
sale and revenue of the venture.
2.2 Maintaining and Strengthening Existing Performance
Jesmond Dene hotel enjoys significant benefits in varied field and this is only due to
some strength which organization process and these strengths of the venture giving them a
competitive edge (Beaver, 2002). Existing strength of the mentioned organization is their
attractive ambiance, well-furnished accommodation facilities, online booking, etc. Further, there
are different ways through which existing performance of Jesmond Dene hotel can be strengthen
few has been discussed below:
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 Mentioned hospitality can hire guides for travelers so that clients get satisfied and they do
not have to roam around unnecessary. This will assist organization to make a loyal
customer base.
 Currently, Jesmond Dene hotel is offering free WiFi access to its customer. In order to
improve their services, cited firm can provide additional option of giving tablet so that it
will be easy for travelers who coming from different countries (Perren and Ram, 2004).
Moreover, local SIM card can be issued which can help customers to talk with their
relative and friends without suffering from international roaming charges.
 Arrangement of cab at door step help in boosting the satisfaction level of customers as
guest do not have to roam around the city for vehicle. Further, Jesmond Dene can give
various options to guest with respect to type of cab they require which fits the
requirement of customers.
 Hospitality can tie up with restaurants and make arrangement regarding delivering the
food of customers choice direct to the room (Yew Wong and Aspinwall, 2004). This
method will surely help Jesmond Dene to improve their effectiveness and efficiency and
can give competitive advantage to the rival competitiors.
2.3 New Areas for Expanding Business
Expansion in general terms means expanding the operational activities of the hospitality
in order to achieve the new opportunities and getting a competitive edge. Considering this,
aforesaid hotel possess varied expanding options and some of them has been discussed below:
 Cafeteria: Hospitality can open a cafe in apartment as the hospitality is located at a place
where mass of individuals visits daily to see the natural beauty of London. With the help
of this, Jesmond Dene hotel can incur good amount of revenue from cafe and can also
provide accommodation who are in need of (Ricketts, 2002).
 Bar and Lounge: Jesmond Dene hotel can have another expansion in the form of bar
where foreigners along with local citizen get attracted and can come to the same
constantly in order to get refreshed. However, it has some disadvantage as it might
disturb the in-house guest and those who are non-alcoholic will not like to stay if it
possesses any sort of bar or lounge.
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From the above discussion, it is highly recommended that Jesmond Dene hotel should go
for cafeteria option in order to expand and increase their revenue and profitability. With the new
establishment, aforesaid organization can gain high amount of attention from different customers
and firm will be able to achieve their goals and objectives (Jenkins, 2006).
TASK 3
3.1 Existing Business Objective and Plan
Given below are the business objectives of Jesmond Dene hotel:
 Mentioned company offers rooms to people with some shared facilities. Further, private
rooms have attached bathroom facilities along with complimentary tea and coffee
facilities. Further, AC rooms are also available on the request of the travelers.
 Organization has an online platform as well from where audience can book the room in
advance and can make the payment from the same platform only with the help of plastic
money (Woods and Mattern, 2006).
 Jesmond Dene hotel has an objective of conducting sound marketing activity over
internet platform so that they can raise more of the awareness among travelers and
individuals.
 Taking effective feedback from the customers at the time of departure will help them to
make the necessary changes in the organization (Zahra and et. al., 2009). This will help
firm to grow and they will surely get the competitive edge in coming time period.
3.2 Revise Business Plan to Incorporate Changes
In order to build a cafeteria in the hospitality arena, Jesmond Dene hotel have to revse
their business plan. For the implementation, finance will play a crucial role and organization
either can take help from their profit fund or can apply from loan from any of the financial
institution (Coleman, 2002). Further, organization will be in need of skilled and multi talented
staff for quality preparation of coffee. Further, a sound individual who have effective
communication skills will also be required in order to take order from customers. These people
will be recruited by the time establishment of cafeteria takes place.
Furthermore, for promoting this cafeteria integrated marketing approach will be used as
organization have to promote both as well as their new establishment. Moreover, objective of
cited hospitality is to increase the profit of business by 10% in coming financial year.
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3.3 Action Plan
 Infrastructure development: For developing the cafe premises, cited company can choose
the side space of the hospitality which is vacant (Prater and Ghosh, 2005). Architect can
be hired in order to have appropriate measure and 3 months are allotted for the
construction of premises.
 Staffing: Staffing will be done by giving contract to consultancy firms as they will
provide best of the employees to Jesmond Dene hotel. Alternative option is also adopted
by the firm by keeping the coffee machine in the reception arena of the hospitality.
 Operation: With the installation of MIS software customer can book rooms and coffee
tables by applying online from the official website of the company. Further, this will help
in boosting the efficiency of the firm.
TASK 4
4.1 Impact of Change of Business and Personnel
With all these changes, mentioned hospitality will be gaining a core advantage and it will
also influence their productivity, revenue and profitability. People in mass both locally as well as
foreigners will be attracted towards Jesmond Dene hotel and they will be able to achieve the
goals and objectives efficiently and effectively. Further, with implementation of new and
innovative technology, skillfulness of hotel gets increased and hospitality is able to win the
hearts of their existing as well as new customers (Longenecker and et. al., 2013).
Further, mentioned company is also focusing on conducting appropriate training session
for less talented employee's so that they will too get the same perfection.
4.2 Managing changes in business
In order to manage the change, Jesmond Dene hotel requires some leadership style which
can motivate the employees to work with best of their efficiency and capability. In context to
this, cited firm can implement democratic leadership style. Under this, employees will be told
about the changes which organization is making and will be in need of their valuable suggestion
so that they can do relatively well in order to gain competitive advantage (Still, Soutar and
Walker, 2004). In addition to it, regular meeting with the contractor and review of progress work
will be seen by the manager or hotel owner.
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4.3 Monitoring Improvements within timescale
As part of monitoring different practice will be conducted and progress of change will be
review on daily basis so that variation can be identified and strategies can be developed for the
same (Miller, Breton‐Miller and Scholnick, 2008). Further, each of the objectives will be
monitored on timely basis so that hospitality operational cost do not increase that much. In
addition to it, financial performance of the company will also review on the basis of KPI (Key
Performance Indicators) in order to ensure that ultimate objectives in attained with the mentioned
changes.
CONCLUSION
From the above report it is articulated that small business can improve their functioning
and performance by evaluating different opportunities that exists in environment. Further, this
report showcase the capability of the firm to address the opportunities to increase their
profitability in effectual manner. Moreover, taking effective decisions timely will help
organization to have a competitive advantage along with healthy market share.
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REFERENCES
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Fowler, M., 2002. Patterns of enterprise application architecture. Addison-Wesley Longman
Publishing Co., Inc.
Jenkins, H., 2006. Small business champions for corporate social responsibility. Journal of
Business Ethics. 67(3). pp. 241-256.
Longenecker, J. and et. al., 2013. Small business management. Cengage Learning.
Miller, D., Breton‐Miller, L. and Scholnick, B., 2008. Stewardship vs. stagnation: An empirical
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Perren, L. and Ram, M., 2004. Case-study method in small business and entrepreneurial research
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Still, L. V., Soutar, G. N. and Walker, E., 2004. Generational differences in the start-up goals
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Street, C. T. and Cameron, A. F., 2007. External relationships and the small business: A review
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Management. 45(2). pp. 239-266.
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Thurik, R. and Wennekers, S., 2004. Entrepreneurship, small business and economic
growth. Journal of small business and enterprise development. 11(1). 140-149.
Woods, D. and Mattern, T., 2006. Enterprise SOA: designing IT for business innovation. "
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Online
Church Street Hotel. 2015. [Online]. Available through: <http://churchstreethotel.com/>.
[Accessed on 18th December 2015].
Our rooms. 2015. [Online]. Available through:
<https://www.thebookingbutton.co.uk/jdh/properties/jesmonddenedirect>. [Accessed on
18th December 2015].
The Jesmond Dene Hotel. 2015. [Online]. Available through:
<https://www.jesmonddenehotel.co.uk/>. [Accessed on 18th December 2015].
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