Small Business Case Study: Luna & Simone Hotel

This assignment presents a case study of Luna & Simone Hotel, a small business operating in London. Students are tasked with analyzing the hotel's success by examining its operational strategies, challenges faced, and overall performance. The analysis should consider various aspects such as marketing, customer service, financial management, and competitive landscape.

Small Business Enterprise

TABLE OF CONTENTS
INTRODUCTION......................................................................................................................3
TASK 1......................................................................................................................................3
1.1 Company Profile..............................................................................................................3
1.2 Analysis of Hotel through Comparative Measures..........................................................4
TASK 2......................................................................................................................................6
2.1 Ways to Mitigate the Weakness of Luna and Simone Hotel...........................................6
2.2 Manner for enhancing Existing Performance..................................................................7
2.3 Business Expansion Areas...............................................................................................7
TASK 3......................................................................................................................................8
3.1 Existing Business Objective and Plans............................................................................8
3.2 Revise of Business Plans..................................................................................................8
3.3 Action Plan to implement the change..............................................................................9
TASK 4....................................................................................................................................10
4.1 Impact of Proposed changes on the Business and Personnel.........................................10
4.2 Management of Change.................................................................................................10
4.3 Monitoring Improvement in the Performance of the Business......................................12
CONCLUSION........................................................................................................................12
REFERENCES.........................................................................................................................14

LIST OF FIGURES
Figure 1: Rating at Trip advisor: Luna and Simone Hotel.........................................................7
Figure 2: Rating at Trip advisor: The Windermere Hotel..........................................................7
Figure 3: Travellers Rating: Luna and Simone Hotel................................................................7
Figure 4: Travellers Rating: The Windermere Hotel.................................................................8
Figure 5: Kotter's Eight Steps Change Management Model....................................................13

INTRODUCTION
In the economy, small business plays a significant role in contributing into GDP. With
time, government are concentrating on this sector as well in order to boost employment
opportunity and also to streamline the standard of living of people. There are always a way to
expand the business and this options are even better for small company as they are operating
at small scale. In order to gain better understanding about the ways in which small business
can be expand, present report is prepared. For this purpose, The Luna Simone Hotel has been
taken into account as a small business. It is basically a bed and breakfast (B&B) hotel that
offers pleasant and friendly hospitality service to its guest. Main areas that are included in
this report are company profile and performance, ways to expand business, manner to
implement expansion and controlling the same.
TASK 1
1.1 Company Profile
As a small business, The Luna Simone Hotel has been taken into account. It is located
at 47 / 49 BELGRAVE ROAD, LONDON which is one of the central location of the city.
The hotel is highly focused on giving sound accommodation service with pleasant hospitality
to its guest. The property is been established in 1970 and is a family owned business. It is
located at central location and is well connected with local transport system. It has well
furnished rooms developed with required facilities for customers that offer great comfort to
guests. Additionally, it offers different set of facilities such as TV, Wi-Fi, hair dryer,
tea/coffee facilities, safe deposit box and other related. It offers English breakfast to guest and
prepared food as per the special requirement as well (Luna Simone Hotel. 2017).
Underneath, mentioned strength and weakness of the mentioned hotel:
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Strength:
 It is located in nearby areas of public transport that certainly increases its customer
base.
 It offers cosy and friendly environment to guest that aids in satisfying the needs of
customers.
 The property is well established at a place from which key attraction of the city can be
reached in lesser time frame.
 Well-furnished bedrooms and customized room services aids in meeting diverse needs
of customers.
 Different en-suite facilities are available such as TV, Wi-Fi, tea/coffee maker, hair
dryer and other related.
 Variety of rooms are available that suits meet different types of customers.
 Infrastructure is well constructed that gives the touch of ancient London (Luna
Simone Hotel. 2017).
Weaknesses:
o Due to fierce competition, there is poor awareness of the hotel that affects its sales
volume.
o Less number of staff that affects business operation at the high peak loads.
o Communication among employees are done through intercom which is not received
by employees if it is not at their place.
o Room system are still been done through manual register only and lacks hotel
management system.
o Less number of reviews on travel websites like Expedia and tripadvisor.com.
o Staff of the hotel are mostly semi-skilled.
1.2 Analysis of Hotel through Comparative Measures
The cited hotel possess competitive position within the content of bed and breakfast
hotel. It offers sound and pleasant hospitality that assists in meeting with needs of customers
in effectual manner. In order to analyse the position of Luna Simone Hotel, its competitor is
considered i.e. The Windermere Hotel. Upon analysis, it is found that Luna Simone hotel
possess sound premises which assist in meeting the needs of customers. Also, it offers variety
of services to customers that aids in meeting their satisfaction level. Contrary, Windermere
Hotel possess less capability as compared to former hotel. It possess less number of room and
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staff due to which more of guest cannot be entertained at a same time. Also, premises of later
hotel is less as compared to former.
Figure 1: Rating at Trip advisor: Luna and Simone Hotel
(Source: Tripadvisor: Luna & Simone Hotel. 2017)
Figure 2: Rating at Trip advisor: The Windermere Hotel
(Source: Tripadvisor: The Windermere Hotel. 2017)
It is even evident from the rating at Trip advisor that both hotels possess equal rating
i.e. 4.5 out of 5. However, it is found that former hotel possess more reviews as compared to
later one. This signifies that Luna and Simone Hotel possess high number of customers as
compared to other business in the sector. Also, it is more prominent in the industry as
compared to its competitors. This certainly helps the cited hotel in boosting its revenue by
enhancing sales in different season.
Figure 3: Travellers Rating: Luna and Simone Hotel
(Source: Tripadvisor: Luna & Simone Hotel. 2017)
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Figure 4: Travellers Rating: The Windermere Hotel
(Source: Tripadvisor: The Windermere Hotel. 2017)
Apart from it, travellers rating for Luna and Simone Hotel is considerable high than
that of The Windermere Hotel. It is found that, 1084 customers rated the hotel as excellent
whereas only 334 have rated Windermere Hotel as excellent. However, by analysing the
review of customers, it is found that staff of Luna and Simone Hotel lacks somewhere in
ambiance whereas Windermere Hotel has attractive ambiance. Hence, the hotel must focus on
this area in order to attract more of customers towards it.
TASK 2
2.1 Ways to Mitigate the Weakness of Luna and Simone Hotel
By assessing the position of cited hotel, it is found that it possess certain sort of
weakness which certainly needs to overcome in order to boost to gain competitive edge
within B&B sector. In this regard, the cited hotel must focus on installing an integrated
system through which record of booking and orders placed by in-house guest can be tracked.
This will help in increasing the efficiency of business by offering the requirement of
customers in appropriate manner. Also, it will reduce the waiting time of guest which is
usually done due to gaps in communication. From this, customer will be offered with
required information and it will support hotel staff in serving better. Through this, monitoring
can be done in proper manner of whole property (Wiklund, Patzelt and Shepherd, 2009). In
addition to it, property manager can ask its guest to leave a comment on website travelling
websites like Expedia, Trip advisor or other related so that potential visitors can able to know
about this hotel. Through this, awareness of the property will be increased which will
essentially aids in increasing overall revenue.
Moreover, the business must give proper training and development session to its
employees so that they can serve the guests in better manner. From this, issue of semi-skilled
staff will be resolved and hence aids in boosting customer satisfaction. Beside this, hotel can
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focus on doing online marketing through SEO in order to reach the end users. From this,
online traffic on the website will increase which will help in boosting the sale of the
company. In addition to it, actively marketing on social media platform will support the hotel
in increasing its customer base. For enhancing the communication, walky-talky can be given
to employees so that gaps can be bridged (Barber, Metcalfe and Porteous, 2016). This way,
weakness of mentioned hotel can be overcome.
2.2 Manner for enhancing Existing Performance
Upon analysing the performance of Luna and Simone Hotel, it is found that it is
enjoying a good position in B&B sector. Also, it is able to attract more of customers as it is in
direct reach with public transport. However, it is required that business must take
considerable action in order to enhance its position further in the sector. In this regard, the
hotel can give an option of offering a laptop to its business customer and tab to customers in
family in order to meet with their objectives. This will be an innovative step in the field of
hospitality that will aids in meeting with diverse needs of customers. Also, this step will aids
the guest in making their trip more pleasant and memorable which will surely results into
word of mouth marketing (Stokes, Wilson and Wilson, 2010). Apart from it, Luna and
Simone Hotel can initiate a concept of hiring a guide and taxi right from hotel only. It is
evident that large number of travellers are visiting London with a sole motive to explore the
city. To meet this objective of customers, cited hotel can offer guide to each of its guest so
that better exploring can be done. This will essentially aids in meeting with the needs of
customers in different manner. Beside this, company can tie up with prominent hotel booking
websites in order to increase its sales further. This way business will flourish and it also aids
in gaining repeat purchase. Hence, these measures can be considered by the hotel in order to
strengthen its business performance.
2.3 Business Expansion Areas
As a small business, it is required to explore the ways through which business can be
expand or increased in order to get rid from fierce competition. Considering this, Luna and
Simone Hotel need to determine varied ways in which its business can be expand. In this
context, cited hotel can open a bar with cowboy theme in order to give a different feeling to
customers. This act will support the hotel in attracting visitors and also becomes a point for
local people as well. Cited hotel is centrally located therefore it will surely give high business
through bar. Major target market for the bar will be in-house guest, travellers and youngsters.
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Through this, business will flourish further and hence aids in meeting the needs of customers
in better manner (Byrd, Ross and Glackin, 2013). From this, popularity of hotel will increase
which will even support in attracting more of customers towards it.
In addition to it, the hotel can even open a fine dine restaurant in order to expand its
business in food sector. It is obvious that hotel and restaurant goes hand by hand therefore
this option will be fruitful for mentioned organisation. From this, local people and visitors
will be attracted that will help the company in boosting its business. Hence, Luna and Simone
Hotel can open a fine restaurant in order to settle the needs of in-house guest and can even
attract other people (Wiklund, Patzelt and Shepherd, 2009). From this, marketing of hotel
will increase and hence aids in attaining high amount of attention from the customers.
TASK 3
3.1 Existing Business Objective and Plans
One of the most common objective of cited hotel is to offer wide range of quality
services to their customers. Keeping consumers happy and satisfy by providing them quality
accommodation services is their major concern. The major objective of Luna and Simone
hotel is to increase their sales by providing quality services with delivering personal care to
customers. The existing business plan of particular hotel is to keep their consumers happy
and satisfied (Halabí and Lussier, 2014). In Just to keep them happy, they have offered varied
range of services & offers to all their in-house guests. In this, they have provided them free
Wi-Fi services with complementary spa services. In order to meet with their diverse range of
demands different amenities provided to them such as fully furnished and well equipped
room. Here, they have offered them twin sharing and double sharing rooms. Along with this,
various facilities such as room service, TV, safe deposit etc provided to them. One of the
most attractive session for customer is easy hotel booking services over the internet (Bridge,
2009). They can easily book their holiday trip over the internet and it supports them in
attaining their objectives in effectual manner.
Different sort of plans helps them in boosting their sales and enhancing their brand
image as well. In this concern, it can be stated that the existing business plan of cited hotel
helps them in attaining their objectives.
3.2 Revise of Business Plans
Within this competitive business environment it is becoming highly essential for
small business enterprises to change their business strategies to boost their sales. In this
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regards, the cited hotel requires to set their objectives again or to revise them in effective
manner. Just to incorporate appropriate change they need to apply for bank loan or they can
also opt for fund from capital of owners. It helps them in achieving their objectives in more
sound ways and also not hamper their financial stability (Caan, 2009). It is the most suitable
form on the basis of which they can entail technological advanced services within their hotel.
They can also recruit new and experienced staff members to maintain high level of service
quality. Under thus, they need to appoint highly active and experienced front office staff
members. There is a great saying that first impression is always a last impression. Having
well trained front office staff members greet their guest in best attractive way.
In addition to this, good head chefs need to be appointed to provide delicious food to
guests. An appropriate integrated marketing and branding helps them in increasing their
customer base (Regni, 2009). Moreover, Luna and Simone hotel can boost up their sales and
provide best experience to customers after entailing this plan into their business. After
incorporating all these changes cited hotel can increase their sales revenues and also
enhancing overall efficiency along with boosting of customer experiences.
3.3 Action Plan to implement the change
After developing various strategies for changing their business plan hotel owner need
to develop appropriate action plan. It helps them in incorporating all changes in a most
effective way. For this action plan, they need to implement various steps such as:
For appropriate integrating marketing and branding hotel owner requires to put their
hoardings introducing their hotel and various offers (McAuley, 2011). It helps them in
increasing their customer reach. Under this, they need to place banners with all those
crowded places where mostly tourists visit. These banners and hoardings should be very
attractive.
Further, they can set out a well-developed infrastructure with entailing several
technological advanced equipment. Under this, they can also install elevators for each reach
of customers towards their rooms as well as restaurants.
Deadline can be given to HR manager of hotel to fill various vacancies with most
experiencing and skilled candidates. Under this deadline, he needs to recruit desired
candidates so that restaurant business can be run in an effectual manner (Burns, 2011). Luna
& Simone can easily maintain better working by installing appropriate MIS system into their
hotel. Under this, they can maintain their customer’s database and also stay in touch with
them for future. It helps them in regularly update their customers with latest offers.
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Deadlines should be set for each specific task in particular action plan and for the
same all these changes should be monitored through checklist and prioritizing of activities.
This is best way to achieve all tasks on given deadline. Hence, all these changes can be easily
entailed in the cited hotel and it helps them in upgrade themselves with the time and
attracting huge base of customers.
TASK 4
4.1 Impact of Proposed changes on the Business and Personnel
With the changing time and environment up-gradations are becoming essential. With
changing their business plan and setting their new objectives Luna and Simone hotel can
reach up to lot more people. With their strategy for appropriate branding and promotions they
are able to grab customer’s viewpoint towards their hotel. It is one of the most common thing
which they any entrepreneur needs to do just to boost up their sales (Bessant, 2011). By
attracting more number of customers they can enhance their brand image and build lifetime
loyalty. With the help of achieving their target to recruit highly efficient and skilled staff
members they can provide quality services to their guests. It also creates a positive
impression in their mind-set and they also give positive reviews within their family and
friends. Through this entire phase of development they are able to boost their overall sales
and profitability of business.
However, with this increasing consumer base existing staff members’ services may
get hampered and they can go for change of service. It can also be managed by applying the
theory of change of management such as they can apply various technological advanced
equipment’s and also use several software’s to make their services more smooth and effective
(Kavanagh and Ashkanasy, 2006). It reduces work pressure from employees and they can
easily manage their quality of services they use to give their guests. From all the above
changes overall competency of the firm gets increased. By providing appropriate training to
staff members best quality services can be provided to customers and it helps them in
boosting their sales and making their positive brand identity in the mind-set of customers.
Moreover, it can be stated that there is both positive as well as negative impact of
proposed changes on both business as well as personnel. Somehow, if it helps in keeping
their personnel satisfied by providing right and appropriate training their overall business and
sales can be boosted up.
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4.2 Management of Change
It is highly essential to make an appropriate plan to manage all the changes within
their business organization. Survival for small business enterprises is becoming highly
difficult if they do not incorporate changes appropriately. These changes can be managed by
applying various modes of techniques and models. Proper staff training needs to be provided
where workers objective of expansion will be briefed so that support from their side can be
attained.
With the help of applying Kotter’s change management model they Luna and Simone hotel
can easily manage changes into their business. By applying this model management team of
this hotel can easily re-direct the use of resources, business process and also set out their
budget allocations.
Figure 5: Kotter's Eight Steps Change Management Model
(Source: Kotter International, 2011)
With the help of applying above given model management team can easily create a sense of
urgency among staff members and communicates the importance of acting immediately
(Todnem, 2005). It makes their business process to move smoothly.
According to Kotter, they need to convince people that change is necessary and they
should apply strategies to develop their knowledge and also upgrade themselves with time
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and changes. It also makes string leadership and support from key people from management
team. On the next step he suggested to develop their vision for creating any type of change
and what theory look after it happens. It also makes it possible to clarify that how future will
be better after applying all such changes (Aladwani, 2001). In next step, he suggested that
communications needs to be very strong and message should send with strong urge. Mainly
all their staff members leads to talk often about their vision for this change. It boot their
confidence level to perform well and work hard.
All barriers like insufficient process need to be removed just to maintain smooth process.
Under this, people should be motivated for change by providing them rewards for their hard
work as well as taking quick action for removing such obstacles. In last two steps they can
create short term wins in which they can track their progress and boost up themselves for
hard work. By institute change they work hard until they remove their old habits and make
themselves use to for new changes.
By applying this model, change can be easily managed by all staff members of the
hotel and they can easily enhance their hotel’s brand image by providing several attractive
services to their consumers (Halabí and Lussier, 2014). Also, it will help them in offering
quality services to customers of varied nature. Further, the overall change can be easily
monitored and maintained by applying Kotter’s model appropriately. It becomes a best
possible way to manage all changes in an effective way and making their strong vision to
achieve these changes.
4.3 Monitoring Improvement in the Performance of the Business
After applying all the changes in business plan hotel’s management team can easily
monitor the improvement of their business performance. For this, they can incorporate
several measures such as:
Business related meetings can be organized for the purpose of monitoring the target
achievements and implications of all these changes. On the very next hand, they can also
organize regular meetings with concern workers to gain idea about the change and benefits
that been attained from it. Moreover, they can measure their increased customer base with
increasing financial stability (Bridge, 2009). Through all these, they can get appropriate idea
about the benefits they get through the changes. In case of no good results, they can set
benchmark and take several corrective measures to boost their sales. In this regards, it can be
stated that with the help of applying certain techniques impact of all changes applied in
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business plan can be monitored. Hence, it helps in improvement of the Luna & Simone
Hotel’s overall performance.
CONCLUSION
On the basis of this report, it is found that small business can do relative business
expansion in order to boost its performance. In this context, The Luna Simone Hotel can
expand into restaurant sector by making necessary adjustments in business. Through this,
business will earn more profit by attracting varied set of customers. Conflict may arise but
same can be managed through negotiation and counselling. Further change management
model will aids in accommodating the changes in due time and in proper manner.
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REFERENCES
Books and Journals
Aladwani, A.M., 2001. Change management strategies for successful ERP implementation.
Business Process management journal. 7(3). pp.266-275.
Barber, J., Metcalfe, S. and Porteous, M., 2016. Barriers to growth in small firms. Routledge.
Bessant, J. R., 2011. Innovation and Entrepreneurship. 2nd Ed. Wiley.
Bridge, S., 2009. Understanding Enterprise: Entrepreneurship and Small Business. Palgrave
Macmillan.
Burns, P., 2011. Entrepreneurship and Small Business. 3rd Ed. Palgrave Macmillan.
Byrd, K., Ross, L. and Glackin, C., 2013. A preliminary causal analysis of small business
access to credit during economic expansion and contraction.
Caan, J., 2009. The Real Deal: My Story from Brick Lane to Dragons’ Den. Virgin.
Halabí, E. C. and Lussier, N. R., 2014. A model for predicting small firm performance:
Increasing the probability of entrepreneurial success in Chile. Journal of Small
Business and Enterprise Development. 21(1). pp.4 – 25.
Kavanagh, M.H. and Ashkanasy, N.M., 2006. The impact of leadership and change
management strategy on organizational culture and individual acceptance of change
during a merger. British Journal of Management. 17(S1). pp.S81-S103.
McAuley, A., 2011. Lost or just at a crossroads: is entrepreneurship the way forward for
marketing? Journal of Research in Marketing and Entrepreneurship. 13(2). pp.161 –
166.
Regni, R. J., 2009. Entrepreneurship in Action: A Retail Store Simulation. Fairchild.
Stokes, D., Wilson, N. and Wilson, N., 2010. Small business management and
entrepreneurship. Cengage Learning EMEA.
Todnem, R., 2005. Organisational change management: A critical review. Journal of change
management. 5(4). pp.369-380.
Wiklund, J., Patzelt, H. and Shepherd, D.A., 2009. Building an integrative model of small
business growth. Small Business Economic. 32(4). pp.351-374.
Online
Luna Simone Hotel. 2017. [Online]. Available through: < http://luna-
simone.squarespace.com/info/> [Accessed on 13th April 2017].
Tripadvisor: Luna & Simone Hotel. 2017. [Online]. Available through: <
https://www.tripadvisor.in/Hotel_Review-g186338-d254575-Reviews-
Luna_Simone_Hotel-London_England.html> [Accessed on 13th April 2017].
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Tripadvisor: The Windermere Hotel. 2017. [Online]. Available through: <
https://www.tripadvisor.in/Hotel_Review-g186338-d210760-Reviews-
The_Windermere_Hotel-London_England.html> [Accessed on 13th April 2017].
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