Hospitality Firm Performance Analysis

This assignment delves into a detailed performance analysis of a hospitality firm. It examines various aspects like sales, profitability, and financial/non-financial indicators to identify strengths and weaknesses. The analysis aims to pinpoint problems hindering the enterprise's effectiveness and proposes practical solutions. The revised plans encompass strategies for enhancing both employee and customer satisfaction, ultimately driving better performance.

UNIT 33
SMALL BUSINESS
ENTERPRISE

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Producing the profile, strengths and weaknesses of Church Street Hotel........................3
1.2 An analysis of the business using comparative measures of performance.......................4
TASK 2............................................................................................................................................5
2.1 Justification and appropriate actions to overcome the identified weaknesses in business 5
2.2 Analysing the ways in which existing performance could be maintained and strengthened6
2.3New areas in which the business could be expanded........................................................7
TASK 3............................................................................................................................................8
3.1 Plans and objectives of existing business.........................................................................8
3.2 Revised business plans to incorporate appropriate changes.............................................9
3.3 An action plan to implement the changes.......................................................................10
TASK 4..........................................................................................................................................10
4.1 Impact of the proposed changes on the business and its personnel ...............................10
4.2 Change Management in the business.............................................................................11
4.3 Monitoring the performance...........................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Small business enterprises (SBE) are those which employs small number of individuals
working in it. These enterprises are generally owned by the private person or a group of people.
Size of this business is small as compared to the large enterprises. In many countries, it includes
various services such as retail shops of grocery, bakeries, restaurants, hotels, guest houses, etc.
SBE allows people to make profits from their business (Avgerou, 2008). One of the major
benefits of this is that it requires low start-up cost which is beneficial for the firm. SBE are
beneficial for building up the friendly relationships with the customers and its employees. It
develops the new and innovative ideas. These are more flexible in making the changes.
Church Street Hotel is a small enterprise which is situated in the heart of London. It is a
Spanish American Oasis hotel of London city and is approximately 150 years old. It is the hotel
with all facilities that easily attract customers (Bass and Riggio, 2008). It facilitates the great
accommodation facility to their customers. The size of this enterprise helps in making more
profits on the lower sales.
TASK 1
1.1 Producing the profile, strengths and weaknesses of Church Street Hotel
Church Street Hotel (CHST) is situated in the heart of London city. It consists of three
town houses and is one of the oldest hotels of London. It is a small business enterprise which
includes fewer number of employees. It is one of the most individual boutique hotels of city. In
this, 27 rooms are established which are run by two brothers who are half Spanish and half
English. As it is a small-sized hotel, it follows the flat organizational structure. According to this,
it includes only management and the employees. There is no mediator involved in this structure.
Small businesses generally adopt this type of structure to run its business because it has fewer
number of employees and therefore, different layers of management to manage the functions are
not required (Bass and Riggio, 2008.). The strengths and weaknesses of this hotel are discussed
as below:
Strengths
 It provides 24 hour services to its customers.
 It facilitates rooms at low cost as compared to the other hotels.

 It is located near to the local market. It takes only few minutes to reach at most of the
parts of city by regular buses outside the hotel.
 There is also over ground and underground rail facility at 10 minutes walking distance.
 There are more many places located nearby it like restaurants, pubs, clubs, galleries,
music venues, retail store, street markets, etc.
 This hotel also facilitates three attractive venues to relax and unwind along with the grand
hall for various events such as wedding, conferences, seminars and other functions.
 It facilitates complimentary organic teas and coffees to guests along with the bar facility
in each room.
 There are standard as-well-as the luxurious room facility which involves Casita style
rooms Mexicasa bathrooms, forged iron work beds, floringo towelling as well
complimentary DVD players and 24 hours room service.
Weaknesses
 It does not provide services to the customers like free Wi-Fi, LED TV's.
 As it is the small business enterprise, people does not know much about this hotel. It
means people are not aware about this hotel.
 Parking facility is not available here.
 As it is the oldest hotel of city, it provides small sizes of rooms which are not liked by
today's generation. It does not provide the family rooms.
1.2 An analysis of the business using comparative measures of performance
To analyse the business performance of any firm or enterprise various comparative
measures are to be consider like sales volume, profits, financial and non financial measures, etc.
for the comparison of the performance of Church Street Hotel, MacDonald Hotel is taken into
consideration (McAuley, Duberley and Johnson, 2007). It is located in London near Kings Cross
and St. Pancras Eurostar Station. It is a family run budgeted hotel. It facilitates various services
like basic rooms with free Wi-Fi and breakfast and housekeeping. It is located near to the bus
and train station that provide convenience to the customers.
In addition to this, it can be said that the sales of Church Street Hotel is low as compared
to its competitor that means organisation is not holding competitive advantage on MacDonald
Hotel. It has also been noticed that the performance of MacDonald Hotel is also impressive
because workforce are well skilled. It also affects the overall development of MacDonald Hotel

in positive manner. It is necessary for Church Street Hotel to make sure that the training and
development programs are being conducted in appropriate manner so that workforce skills can
be improved. Cash management within Church Street Hotel is also not appropriate that also has
negative impact on the overall performance. By having effective focus on activities that are
significant for better management of cash inflow and outflow the business firm can have
sustainable development. Performance of the business can be measured by the customer survey
and satisfaction level of consumers (Muondo and Perkins, 2013). It has been witnessed that the
customer satisfaction level among Church Street Hotel is not appropriate that also affects the
overall performance. Management of Church Street Hotel must have application of quality
standards so that more and more customers can be attracted. By having proper consideration of
quality standards the customer needs can also be accomplished which is advantageous for long
term success.
Moreover, the supply chain of Church Street Hotel is effective as compared to
MacDonald Hotel. It allows management of Church Street Hotel to cut down the cost of
operations and gain better advantages as compared to its competitors.
TASK 2
2.1 Justification and appropriate actions to overcome the identified weaknesses in business
Church Street hotel provides good hospitality and accommodation facility to its
customers. It has so many strengths along with weak aspects. The weak areas of it are related to
not providing MIS services, lack of customers' satisfaction, non-availability of family rooms and
no parking facilities. To overcome from these problems, various appropriate actions have to be
taken by the hotel management. It is the responsibility of managers of hotel to provide the
required facilities to their guests. To overcome from these weaknesses, following measures have
to be taken by the management: Establishment of MIS Services: MIS refers to management information system. It is
related to the latest technology. It is such system which should be available at every
organization or business whether small or large. As this enterprise deals in the hospitality
and the hotel management, it is necessary to use this system to overcome from the
occurrence of such problems. Complete work should be done on the computer (Mullins,

2010). It makes the work easy for individuals to maintain the past and present records of
hotel. It also helps in providing service like Wi-Fi which is run by the internet. Parking Facility: Another area of development is to provide parking facility of
customers as well as employees of the hotel. They have to make plan to provide such
facility. People usually get attracted by various services provided to them. So, many
people avoid staying in this hotel due to not providing the parking facility. Thus, it is
essential to facilitate this to their guests to attract them. Facilitating family rooms: Most of the time, family rooms are demanded by customers.
As it is the oldest hotel, it avails small-sized rooms to the guests. It has to provide family
rooms also to attract families.
Launching Website: To make the customers aware, it has to launch its website. In today's trend,
people generally choose the online method for booking accommodation facility (Clark, 2012).
By creating this the number of customers will come to know about this hotel and its services. It
is the best way to aware the individuals.
In addition to this, it can be said that the company can also focus on internal and external
factors that may allow to have improvement in services so that issues can be overcome. By
having improved focus on quality planning the business firm can design diverse activities that
may allow to cut down negative impact on quality of services. New standards can be set out by
the management in order to ensure about quality. It can be considered as quality assurance so
that quality of hospitality services can be improved. Along with this, new monitoring tools like
six sigma and TQM can also be adopted by firm in order to promote quality work practice.
Other than this, company can also focus on diverse auditing tools in respect to analyse the
quality of services and improve overall performance. By having improved focus on marketing
survey, company can identify key issues that impact overall performance. Innovative ways can
also be identified to have long term sustainability. Financial audit will assist is make sure about
allocation of funds. If final outcome of financial audit is positive that means company is offering
high quality of services. It means by considering external factors quality issues can be overcome
in appropriate manner.

2.2 Analysing the ways in which existing performance could be maintained and
strengthened
Church Street hotel provide various accommodation facilities to their customers. The
profits to the hotel helps in achieving the various business goals and objectives. There are so
many other ways through which the existing performance of this hotel may be improved and
strengthen. The various facilities which should be provided by the hotel is discussed as under: Lift facility: The hotel management has to provide the lift facility to its guests. This hotel
is consists of number of floors. And that make difficult to the customers to go by walk.
The guests may be of different age groups and have different demands according to the
situations. By providing this facility the management will get the positive feedback from
the customers. Cab Services: The hotel has to facilitate the cab services to their guests. Today
individuals are more attracted to those hotels which provide the cab facility to their
customers (Hansen, 2010). This facility helps in boosting the customers' satisfaction
level. For this, the hotel has to hire the cabs for their customers to satisfy their needs. Gym: Along with the above facility, this is also required to be provided by the hotel to
attract the youngsters. Usually, the demand of the youngsters are related to their fitness.
By establishing this, it will helpful in the strengthening the performance of the business. Better Room services: Along with the facilities like Wi-Fi and LED TVs, the another
services like providing tablet facility. Each room should have the facility of tablet and
mobile phone facility. It also has to provide air conditioner rooms to their guests. By
providing this the customers will be more attracted toward this hotel.
 Hiring Guide: Hotel management has to hire the guides for the visitors. Generally, the
tourists visited to the hotels for the accommodation (Clegg, 2009). And therefore, this
facility will be very much beneficial for those who want to visit the city and came for the
visiting purpose. These people (guides) helps them in knowing and visiting the different
ares of the city which are unaware by the tourists.
2.3 New areas in which the business could be expanded
Every organization wants to expand its business by providing the additional facilities and
services to the customers. Here, Church Street Hotel also want to expand its business to attract

more and more customers and to increases its profitability. There are so many new and
innovative areas in which this hotel can expand its business. These are as follows: Cafe: The hotel can open a cafe in the hotel premises or nearby it. It is such place where
most of the local as well as the outsider or foreigner like to visit. It is the place where the
people visited on the daily basis and that will be beneficial for the hotel in increasing its
revenue. Family Restaurant: The another factor which helps this hotel to expand its business is
creation of family restaurant (Carr and Hancock, 2015). Through this service not only the
outsider customers will attract but also the local people will get interest by visiting in this.
A multi cuisine restaurant is more demand-able by the people of this city. This restaurant
can be established inside or outside the hotel. There will be a positive impact on the
productivity and the profitability of this hotel. Establishment of the restaurant in hotel
will meet the dining requirements of the guests staying there and also for the outsiders. Pub/ Club: As London is the city of those people who visit the pub and night clubs on
daily basis. So it is the another area for expansion of the business. It is beneficial for both
the guests of the hotel and the local people. It is much more effective in creating or
generating the revenue of the business.
 Business expansion: It is also possible that company can have business expansion in
international market so that goals and objectives can be accomplished in appropriate
manner. Customer base and market share can also be improved by having application of
business expansion activities. It is significant to have designing of activities as per market
needs so that business can be expanded in appropriate manner.
From the above discussion it is clear that this hotel may have various areas in which it
can expand its business (Essers, Böhm and Contu, 2009). All the above areas or expansion will
help in increasing the revenue of the business as well attract the more customers towards this
hotel. Establishment of the restaurant in hotel will meet the dining requirements of the guests
staying there and also for the outsiders.

TASK 3
3.1 Plans and objectives of existing business
Each organization is establishes for the achievement of the set goals and objectives of it.
For which the various plans have been made by the management. The various business
objectives of the existing business of Church Street Hotel are given below:
 The main aim of the establishment of this hotel is to facilitate accommodation facility by
providing better hospitality services which meet the requirements of the customers. It has
to provide luxurious service to their guests.
 It also has aim to provide the better marketing of its products and services.
 The another object of this is to provide the accommodation facility at the low costs to
their guest. Price is the main factor which the customers first choose to be low.
 To maintain the cleanliness in the hotel premises. It can be possible by providing the
spotless house keeping throughout the premises (Buchanan and Huczynski, 2010). It is
one of the challenging task of every hotel management company to maintain the
cleanliness at their workplace.
 The another aim of this is to provide training to the employees working there in that
hotel. Through this training the various problems of the enterprise can be solved out such
as dealing with the customers' demands, handling the complaints of the guests,
interpersonal communication, etc. It is the responsibility of the management to provide
training to the management of the company.
 It also has to satisfy the customers to increase the brand loyalty of the enterprise which
will in turn help in increasing the process of the hotel. The activities of the enterprise
should meet the requirements of their guests.
 To provide the better management information system facility (Buchanan and Huczynski,
2010). It involves the latest technology which should be adopt by this enterprise. It is the
another aim of the management of the hotel to fulfil the needs of the customers and
satisfy them.
3.2 Revised business plans to incorporate appropriate changes
A business plan should be revised to whenever any appropriate changes made in the
operation of the firm. The atmosphere of the working enterprises make it more vital to reconsider

the goals, targets and strategies. For the small hotels like Church Street Hotel, an effective
operating plan helps the managers to identify the inefficiency of the both employees and the
management to meet the desired goals and targets (Butler, 2010). In developing the plans
managers has to include the different measures to be used to identify the problems and solve
them.
The revised plan must be flexible and should be adopted by the employees working their.
The change should be done according to the requirement of the organization and to fulfil the
needs of the both customers and the employees. This plan must be consists of the various cases
like expected and the worst cases. The various plans have to be made by the enterprise to skilled
up their employees which will in turn help in the growth of the business. It this respect, the new
employees are to be recruited for creating the better operations of the hotel. The requirements of
the staff is to be identify by the management like providing various training and development
programs and also the setting up the standard which need to be established at each areas of
operation.
For incorporation of these plans various and to meet the requirements of the enterprise a
budget is to be mapped that includes the capital equipments needs, cost control, employee
training, safety measures, market tactics, etc. The enterprise also need to identify the
inadequacies of the staff and the other areas of the operation (Hotho and Champion, 2011). With
the help of this the hotel may able to provide the better hospitality services to their customers.
The integrated approach of marketing will help in promoting the hotel as well as the restaurant.
From this the hotel management will be success in boosting the awareness among the public. By
accomplishing the objectives of the company the profitability ratio of the business will be
increase.
3.3 An action plan to implement the changes
The various action plans have to be taken in consideration to implement the changes in
the operation of the management at Church Street Hotel. These are states below:
Recruitment and Selection: It is the process where the new employees for the company
are selected through the recruitment (Clegg, 2009). Here the candidates have to go through the
various processes of this program. Under this new, qualified and skilled personnels are selected
for the better production of the company. Through this process the need of the human resources

in the premises is fulfilled. Under this, the requirement of the higher level of management also
fulfilled.
Training and Development: The plans which are determined in the earlier part of this
study is now implemented by the management. Providing an effective training and development
program to the will help the management to achieve the set targets of the company. It is one of
the best way to aware the individuals of the premises about the changes made in the organization
(Clark, 2012). It is easy to make changes in the organization but difficult to implement in it. So,
the through providing training to the employees and staff of the hotel it will become easy to
communicate with them. Under this, the positive impact of these changes will be shown to the
staff members.
Marketing: It is also the integrated part of the operating plan. The market plans helps the
organization to attract the customers and guests and also differentiate it with the other
enterprises. The different marketing tactics are to be used such as print media, digital media and
also the social websites are to be used to boost the awareness among the public about the hotel.
Motivation: The action plan should be first communicated to the employees and workers
of the hotel. It is very necessary to adopt the changes by them (Hansen, 2010). The different
methods to be used to motivate the work force of this hotel such as providing incentives, bonus
and other rewards for their appraisal in monitory or non monitory terms.
TASK 4
4.1 Impact of the proposed changes on the business and its personnel
As per the detailed study, it can be said that management of Church Street Hotel need to
ensure that the employees' involvement in decision making process is accurate. These kinds of
changes will have positive impact on the organisation as well as its professionals. According to
the known statement that people are resistant to adopt changes and they do not take action
effectively in this type of actions. It indicates that the proposed action plan can have influence on
business in positive as well as negative (Mullins, 2010). Designed activities will also improve
communication between management and employees. It is significant to have long termed
success because it will also have positive influence on the workforce motivational aspects. It will
also have direct effect the overall performance of organisation. With an improved level of
motivation the operations and departmental activities can be accomplished in desired manner.

These kinds of factors are beneficial to have gain better competitive advantage in market so that
goals and objectives can be accomplished effectively.
Along with this, the market share of Church Street Hotel can also be improved by
ensuring that the measures are correctively applied (Hotho and Champion, 2011). Issues in
regard to skilled workforce can also be improved by having effective development of recruitment
and selection process. Selection of right person at right place is essential to make sure that the
activities are being accomplished in appropriate manner. Work culture can be transformed in
positive way which is beneficial to meet goals and objectives effectively. By adopting theses
business plans and changes enterprise can improve their sales and profitability in the every
market segments. It is also advantageous for better customer loyalty which has direct positive
impact on the organisation. Proper consideration of action plan allows management of Church
Street Hotel to have effective development of sustainable opportunities in the market. Moreover,
the organisation can also have better relationship with employees so that activities can be
accomplished effectively. Better strength can also be provided to the organisational policies to
have sustainable development.
4.2 Change Management in the business
In order to have sustainable development, it is significant for business entity to have
effective focus on change management activities (Bass and Riggio, 2008). By having improved
focus on change management activities, number of issues can be resolved in effective manner. It
is significant for management of Church Street Hotel to make sure that the changes are being
implemented effectively to have improvement in performance, quality, development, process so
that better success can be attained.
It has been noticed that the Lewin change management model is one of most critical
factor that helps business firm to meet goals and objectives. In this respect, key stages need to be
followed by organisation such as unfreezing, changing and refreezing. In initial stage, the
model forces management to have focus on activities that can make sure about the resistance
level of workforce present within organisation. During implementation, employees mostly
oppose to the change activities because they are not having appropriate information about the
change. In order to overcome such kind of issue, it is necessary for business entity to focus on

activities that can enhance the morale of employee's (Avgerou, 2008). Improvement in
communication system is also necessary because it also facilitates in performance advancement.
It is also significant for management of Church Street Hotel to have effective
implementation of change management. In this, management need to have application of diverse
motivational techniques so that morale of employee's can be improved. With an improved level
of morale the application can be accomplished in desired manner. Church Street Hotel manager
must focus on team work and leadership style to have improvement in performance. Proper blue
print of change activities also need to be provided to the employees in order to overcome issue.
Along with this, the information about benefits of change must be provided to employees under
refreezing. Number of advantages can be attained by having advancement in profit and sales.
Effective consideration of rules and regulations is also necessary because it allows ensuring that
the employee's are feeling motivated in respect to change (Butler, 2010.). Changes in procedure
also need to be considered effectively from the management of Church Street Hotel so that goals
and objectives can be accomplished effectively.
4.3 Monitoring the performance
Monitoring is considered as one of critical aspect for every organisation because it helps
in ensuring that the goals and objectives are being accomplished in effective manner. It has been
witnessed that by having improved focus on monitoring of activities the business entity can have
decreased the risk factors. It is beneficial to have advancement in sales and profit margin ratio.
Each and every activity need to be monitored as per key standards of monitoring policy. If
monitoring measures are not implemented in appropriate manner then critical issues may be
occurred for the organisation. Along with this, the risk in regard to financial aspects can also be
reduced (Bass and Riggio, 2008). It has been noticed that the management of Church Street
Hotel can have effective comparison of financial records in order to make sure that the standards
are being applied in appropriate manner. If business firm is not having improved focus on
measures then the performance may be decreased which will have direct negative influence on
the sales and profit margin ratio.
In addition to this, it can be said that the use of Gantt chart is also beneficial because it
helps in monitoring of activities. Monitoring plan can be designed as per goals and objectives of
organisation so that overall performance can be improved in desired manner.

Activity/ Month 1 2 3 4 5 6 7 8 9 10 11 1
2
Achieving high market share
New product development
Customer satisfaction
Create a brand image
Global Expansion
Above monitoring plan indicates that the management of Church Street Hotel is focused
towards improvement in market share. In this, it is significant for management to make sure that
the monitoring is being accomplished as per designed time frame (Buchanan and Huczynski,
2010). If time frame is not considered effectively then overall performance can be affected so
management need to ensure about it. In order to have improvement in customer satisfaction level
the business firm can have better consideration of feedback system to have monitoring of
activities. It means the products and services of organisation also need to be developed as per
customer needs so that objectives can be accomplished effectively.
CONCLUSION
The above study is based on the functioning of the small business enterprise. It
concluded the study of Church Street Hotel which is a SBE. It categorised in four parts. The first
part describe about the profile and the various strengths and weaknesses of the firm which is
related to its hospitality services. A comparison is made on the basis of the different measures
like sales, profits and financial and non financial basis. It identifies the various problems occur in
the functioning of the enterprise and also provide the solutions to them. The revised plans are
made by the hotel management to accomplish the set objectives. The last part of this study
explains about the various changes made by the firm for the better performance of the employees
as well as the employers to attract more customers.

REFERENCES
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