Allington Manor: Small Business Enterprise Performance Analysis Report

This report provides a comprehensive analysis of Allington Manor, a small business enterprise in the UK's hospitality industry. It begins with an introduction to small businesses and their role in economic growth, followed by a profile of Allington Manor, identifying its strengths, such as online booking and five-star services, and weaknesses, including small room sizes and limited financial resources. The report then analyzes the business's performance using comparative measures like gross margin, net margin, current ratio, and debt-equity ratio, highlighting areas for improvement. Recommendations are made to overcome weaknesses, such as hiring marketing executives, renovating rooms, and providing staff training. The report also discusses ways to maintain and strengthen existing performance through proper human resource management and communication, along with potential areas for business expansion, including domestic and international market growth and launching new services. Finally, it assesses the existing business objectives and plans, revising them to incorporate proposed changes and outlining an action plan for implementation, assessing the impact of these changes on the business and its personnel. The report concludes by emphasizing the importance of continuous monitoring and improvement in business performance.

Small Business
Enterprise

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 A profile of a selected small business identifying its strengths and weakness................3
1.2 An analysis of business using comparative measures of performance.............................4
TASK 2............................................................................................................................................6
2.1 Recommendation to overcome identified weakness in business .....................................6
2.2 Ways in which existing performance could be maintained and strengthened..................6
TASK 3............................................................................................................................................8
3.1 An assessment of existing business objectives and plans................................................8
3.2 Revising business plans to incorporate appropriate changes...........................................9
3.3 An action plan to implement changes ...........................................................................10
TASK 4..........................................................................................................................................11
4.1Impact of proposed changes on business and its personnel............................................11
4.2Ways in which changes can be managed in business......................................................11
4.3Monitor improvement in performance of business over a given time scale....................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Small businesses are playing an important role in attaining growth and development in an
economy. The operations of small business enterprises help in giving employment to a group of
people so that they can fulfil their basic needs (Acs, Audretsch and Lehmann, 2013). Small
business enterprises are companies which do not have more than 50 employees working within
it, has few resources and has a low sale in an extent. Nowadays people are being more inclined to
small business enterprises for doing and running a business as they are grabbing a specific place
within market place. This report is about Allington Manor which is located in UK and founded
in 2010. It is a small scale enterprise in hospitality industry and provides hotel facilities and
services to its customers. This assignment mentions investigation of performance of a selected
business enterprise and changes to improve management and business performance. Moreover, it
also shows revised business objectives and plans incorporate proposed changes and impact of
change management on the operations of the business.
TASK 1
1.1 A profile of a selected small business identifying its strengths and weakness
Small business enterprises are those which do not involve more than 50 employees which
are involved in activities of enterprise. These operations helps in growth of an economy since
they have given growth to economy by providing people with employment .
Allington Manor is a small business enterprise within hospitality sector along with 3
rooms within it and was founded in 2010. It is owned by private owner and is trying to expand its
markets in all over the world. Main objective of this hotel is give satisfaction to customers or
guests by providing them basic facilities within hotel place.
Mission: To provide best services to customers and exceed their level of expectation.
Goal: To expand its business in other locations of UK within two years.
Overview of Allington Manor:
Small business Allington Manor
Owner structure This business is classified as a sole
proprietorship where only a single owner runs

its business (Barber, Metcalfe and Porteous,
2016).
History This hotel started with a single room where
they only have accommodation facilities. Later
on they add more facilities and made more
rooms.
Activities Offers luxury beds as well as accommodation,
private dinning, etc.
Location It is located at Lincolnshire, UK.
Description Provide hotel services to guests.
Strengths and weakness of Allington Manor
Strengths Weakness
 Developed online websites so that
people can easily do bookings
(Bernaert and et. al., 2014).
 Provide 5 star services to their guests.
 They make delicious food so that
requirements of guests can be meet.
 They have polite staff with friendly
environment.
 Top floor room were small.
 There was not air conditioning in this
room.
 Sources of finance are not adequate.
 Not having skilled and well trained
staff.
1.2 An analysis of business using comparative measures of performance
Recently, enterprises are having difficulty to gaining sustainability in a competitive
marketplace for a longer duration. Performance of a business is determined by implementing
different tools and techniques. Here, in Allington Manor factors of performance is measured
through various other factors such as human resource management, planning and various stages
involved in planning (Chow and et. al., 2011). This hotel has many competitors as there are
various small hotels which are giving 5 star services and facilities in order to earn profits and

productivity. In their initial stage when enterprise started their business they could not compete
with other hotels as they were having issue of shortage of funds.
While, little hotel had sufficient amount of funds and it was giving good competition to
their rivals. They are not giving training to their employees which can lead to decrease in
productivity as well customers are not satisfied at times (Cowling and et. al., 2015). Moreover,
they are also coming up with more expansion and innovative ideas to give competition to their
rivals.
Gross Margin:
Particular 2016 2017 2018
Gross profit 2139 2066 2143
Net sales 4456 4561 4810
Gross margin ratio 48.00 45.30 44.55
Net margin:
Particular 2016 2017 2018
Net profit 1987 1739 1793
Net sales 4456 4561 4810
Net margin ratio 44.59 38.13 37.28
Current ratio:
Particular 2016 2017 2018
Current assets 1922 2549 3408
Current liabilities 828 1039 716
Current ratio 2.32 2.45 4.76
Debt equity ratio:
Particular 2016 2017 2018
External liabilities 2943 4587 5113
internal liabilities 11439 11967 12515

Debt equity ratio 0.26 0.38 0.41
From above analysed data, it is being determined that small amount of funds is available
with the Allington Manor hotel and office supplies and other equipments need a low level of
investment. Moreover, company has also taken a loan and has certain liabilities towards the
hotel. Also, company has a common stock with small amount of funds and requires supervision
by the government in order to expand its business operations.
TASK 2
2.1 Recommendation to overcome identified weakness in business
Every business in recent scenario is having some weakness and strengths while doing
doing activities of business. Weaknesses in a business lead to its decrease in profitability as well
as its productivity. To earn profit and sustainability in a competitive market place, it is duty of a
manger to analyse weakness and find out measures to overcome those weaknesses. Actions to be
taken to overcome weaknesses in Allington Manor are given below.
 It should hire marketing executives which will help them to analyse from which of
finance, funds can be acquired. So that they can have adequate amount of funds which
they can use in their promotional strategies as well as to expand their business (De Silva
and et. al., 2012).
 They should re-built their small rooms with more facilities or use that room for relaxation
or entertainment activities. So that guests do not hesitate while booking that (Dickson and
Weaver, 2012).
 Firm should provide training to their staff members so that they can increase their
knowledge and skills. This will also lead to increase in performance and and productivity
of employees as well as hotel.
It can be concluded that it is necessary to identify weakness within hotel because it will
lead to success in a business. Moreover, plans must be made and actions must be taken to
overcome weakness faced so that they can earn profit and increased their productivity (Forsman,
2011). It also helps in smooth and effective running of a Allington Manor hotel.

2.2 Ways in which existing performance could be maintained and strengthened
In order to maintain existing performance of employees as well as firm, it is essential for
chosen organisation Allington Manor to organise various training and development sessions with
a motive to improve skills and competence of its employees. This leads in making efficient and
effective workforce in a competitive business environment. There are some ways through which
a business entity can maintain performance of its employees, which are discussed below as:
(a) Proper human resource management: Every organisation's success or failure
depends on its human resources department as it helps a business entity in motivating its
employees towards their aims and objectives (Hansen and Hamilton, 2011). In this context, it is
necessary for human resource department of Allington Manor to formulate effective business
strategy in order to improve efficiency of its employees in a dynamic business environment. It is
also essential for human resource department to build healthy workplace and motivate employees
by compensating and rewarding them on basis of their performance. All this will ultimately help
hotel in improving efficiency of employees and enables them to offer quality services to
customers which in turn improves its productivity and performance.
(b) Maintaining good communication: In this context, it is also important for the
chosen organisation Allington Manor to maintain good communication with its employees, this
leads in achieving organisational goals and objectives. It is necessary for managers and leaders
of a business entity to communicate with its employees in order to solve problem faced by them
related to their specified task. This leads in building positive and healthy relationship among
employees of a business entity, which eventually help a business entity in enhancing their overall
growth and development (Hilmersson, 2014).
2.3 New areas in which business could expand
In this context, the chosen organisation Allington Manor is operating its business
activities on a smaller level but it has an opportunity to expand its business operations in a global
market. There are some recommendations, which are discussed below as:
(a) Expanding the domestic market: In this report, the chosen organisation is Allington
Manor which is a small business. In order to expand its business activities, it is necessary for the
chosen organisation to concentrate on the local market. This leads in generating some revenue
and improving their brand image in domestic market as there are large number of customers and
popularity of the chosen organisation in their local market segment. So, it is important for

Allington Manor to first attract their potential customers of local marker in order to increase their
productivity (Korsgaard and Anderson, 2011).
(b) Expanding the international market: In this regard, the chosen organisation
Allington Manor is operating its business activities in London. In order to maximise profitability,
it is essential for the chosen organisation to expand their business activities in international
market. This will help a firm in gaining competitive advantage in a dynamic business
environment. For expanding their business operations in international market, then it is necessary
for the chosen organisation to be financially stable in arranging appropriate resources and
technology required to enter international market.
c) Launching new product or services in emerging marketplace: In this manner, it is
recommended to managers of Allington Manor to offer new services at new marketplace. For
example: First customer will get 50% discount on billing, help in attracting more people towards
services of this hotel.
As per the above discussion it has been evaluated that the chosen organisation will first
have to capture their local market in order to maximise their profitability. This will eventually
helps them in in capturing international market (Mason and Brown, 2013).
TASK 3
3.1 An assessment of existing business objectives and plans
There are various factors in a business which contribute in achievement of goals and
objectives of a business. These goals are connected to each other along with process of planning.
Therefore all plans are being implemented in a proper manner to get effective results and higher
productivity.
Executive summary: Allington Manor is a small hotel in UK which provide 5 star hotel
services. It has 3 rooms that is garden room, dining room etc.
Objectives: This hotel wants to expand its market within 2 years in an emerging market place.
Mission and Vision: Mission is “to put hotel services in a highest quality which will satisfy
requirements of customers.” While vision is “to do continuous improvements and setting highest
standards of quality service.”
STP:
 Segmentation: Its market segmentation is done on the basis of demography.

 Target: They usually target families, business executives and travellers.
 Positioning: Giving best eco vacation services to travellers.
SWOT:
 Strength: It focuses on retaining old customers so that they can gain po0pularity among
people by way of word-of-mouth publicity from guests.
 Weakness: Staff is not competent. They are not skilful enough to resolve queries and
grievances of customers in an effective and timely manner.
 Opportunities: As there is rise in globalisation, it will lead to more international tourists
and travellers.
 Threats: Black marketing can be a threat for their business.
Budget:
Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year
Initial money 5000 8000 10000 13000 15000
Investment 2000 3000 5000 7000 9000
Total 7000 11000 15000 20000 24000
Marketing outlay
Promotion 4000 7000 8000 10000 14000
Sales publicity 5000 6000 10000 11000 13000
Total 9000 13000 18000 21000 27000
3.2 Revising business plans to incorporate appropriate changes
Business plans and their strategies are essential need for every business such as
Allington Manor hotel. In context to this hotel, they must implement plans and procedures which
will result in growth and development of industry. Since there is a lot of competition in market
place hotel must come out with innovation ideas and technology advancements in order to
incorporate changes coming in dynamic market place (Mitchelmore and Rowley, 2013).
One of major and best plan of Allington Manor is to achieve their objectives of
expanding its market within 2 years, hotel is sourcing funds from banks. Moreover for this
promotion through advertisements and different types of campaigns programs can be conducted
in a large scale. This will also lead to popularity of hotel and they will hold a good reputation and
place within competitive market place. Revising business plans helps in eliminating negative
issues which are causing problems for hotel (Obeng and Blundel, 2015). They also help in
analysing difficulties rising in a market place while performing activities of business operations

and accordingly plans could be made to overcome that and attain growth and success of a
business.
When respective company review the business plan they identify some weaknesses or
threats which help them in attaining their goal and objective in effective and appropriate manner.
They identify that their employees has not enough skills to conduct particular task and work in
appropriate manner. So to overcome respective issues Allington Manor managers design and
develop training and development programmes which enhance skills and ability of their
employees. This help employees as well as organisation in certain ways such as employees able
to complete their work in appropriate manner and in given time by this management able to earn
more profitability.
3.3 An action plan to implement changes
Changes are required within an organisation at every level and are natural thus firms need
to create plans so that they can easily adapt those changes without disturbing operations of
business. Action plans are essential tools through which enterprises can implement changes
coming in policies and plans which will also help in achieving goals and objectives of a business
effectively and efficiently. All long as well as short term goals of a business must be identified
so that business have smooth functioning of its operations.
A strategy to implement change which is used by hotel is Concerted action in which it
needs delegation of change so that improvisation can be implemented properly to the entire
company (Sharma, Chrisman and Gersick, 2012). But it still needs changes to get adjusted in
entire strategy of business.
Allington Manor must assure that they must recruit qualified and skilled employees
which will help them to achieve organisational goals effectively and efficiently within a
specified time duration. Changes that are arising in business should be used according to allotted
timings since it is helpful in giving satisfaction to their customers. Staff members must be given
training with help of video conferencing, CCTV, presentations, etc. The required action plan to
apply the changes are being discussed below :-
The hotel should make a better provision and updated system which will help in selecting
and recruiting in an effective manner. This will be required for monitoring and implementing
changes. To lead and control different types of changes qualified and skilled employees are
required. A proper and fair test should be taken while interviewing candidates.

The respective company may also enhancement and innovation in their technology which
help in conducting work in appropriate manner. For this they can put visual presentation screen
and CCTV can be set at the entrance of hotel through which all activities of hotel can be easily
monitored.
They can also improve their promotional activities which help them in attracting more
and more customers for their hotel. They can also plan their menu according to demand of
customers and visitors.
TASK 4
4.1Impact of proposed changes on business and its personnel
As there is increased demand in hotels therefore Allington Manor must adapt some
changes in their operations so that they can achieve objectives and goals (Wang and Altinay,
2012). If changes are being adapted within an organisation then they must be properly observed
in order to achieve goals and objectives. These changes has a direct impact on productivity and
growth of an enterprise.
Impact of changes on business and personnel:
The changes in Allington Manor has impacted a lot to both personnel as well as the
organisation. Changes will raise productivity of the business and will also increase profits of
the firm which lead to effective and efficient achievement of goals and objectives. Moreover
when changes are done in a hotel, it will help them to attract new guest who will come to take
their services. Whereas personnel is also being impacted as they have to do their work easily
with the help of technology advancements and if expansion is done their income will also
increase.
4.2Ways in which changes can be managed in business
As changes are not isolated and they impact the entire organisation as well as personnel.
Here in Allington Manor changes are common as it is a small hotel which has daily activities in a
huge extent. Moreover to maintain existing changes and do well in present market place, hotel
must be aware and create various types of activities in a wider range. For this hotel changes are
natural and managers should be responsible for handling matters like rest of the employees who
are working within an industry. Here managers can implement and develop some system within
a hotel. This hotel wants bring skilled and qualified employees which will help them to achieve

organisational goals effectively and efficiently within a specified time duration. There are
various kinds of models which can be used to manage and plan changes which are mentioned
below.
 Researching matters: Before initiating work of managing changes and planning company
as well as authority of hotel should do various types of research about the subject which
is to be managed and planned. The data which required or needed must be collected and
gathered by manager of hotel (How to use Kotter's 8 Phases model to deliver sustainable
change, 2017).
 Following the instruction: For doing research and work, a third party which is highly
skilled and competent can be called out. As they will determine possible outcomes for
the issue. Here in determining matters, the experts which are from third party can give
orders to managers of Allington Manor hotel and industry should abide by those orders.
 Taking initiatives: After abiding by experts instructions, manager must take proper
initiatives and steps in order to handle and control situations. Manager must focus on
implementing proper steps within hotel.
 Performance evaluation: Under this stage, hotel or any kind of third party must measure
performance of various activities within hotel in matter of change management and must
take effective steps to implement all the procedures (Mitchelmore and Rowley, 2013).
Therefore with the help of these ways changes can be managed highly within hotel.
4.3Monitor improvement in performance of business over a given time scale
There are different types of modifications which are appearing within an organisation.
For monitoring the improvements process of Allington Manor, managers can adopt Balance
score card method. It is a tool which is used to measure performance of a company. This tool is
being implemented by managers of Allington Manor hotel to monitor and measure performance
activities at various levels. There are four parameters of this tool which are being discussed
below.
 Financial: This includes measuring sales growth, operating income as well as return on
investment.
 Customer satisfaction: This perspective analyse retention as well as satisfaction of
customers.