Business Health Check Report for Travelodge: Analysis and Plan

This report provides a comprehensive business health check for Travelodge, a major player in the hospitality industry. It begins with an introduction to the company's objectives, vision, and mission, followed by an analysis of factors impacting the business using PESTLE and SWOT frameworks. The report further explores potential improvements through the Ansoff growth matrix and defines SMART criteria for achieving objectives. It reviews the effectiveness of the business, designs a plan for upgrades, and assesses the current and future skills of management and staff. The analysis covers key areas like product and service effectiveness, marketing, sales, and staffing, concluding with recommendations for improvement. The report highlights Travelodge's strategies, market position, and potential for growth within the competitive landscape of the travel and tourism industry.

Business Health Check

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Objective of the business..................................................................................................1
1.2 Factors that impact on the business..................................................................................2
1.3 Potential improvement in context of business operation..................................................4
M1 SMART criteria for travel-lodge to achieve their objectives...........................................5
TASK 2............................................................................................................................................5
2.1) Review the effectiveness of the business........................................................................5
2.2) Design a plan in order to upgrade business. ...................................................................8
TASK 3..........................................................................................................................................10
3.1 Current skills of management and staff..........................................................................10
3.2 Plans for the development of skills for management and staff......................................11
M3 Analyses of current skill that impact on hospitality business........................................12
CONCULSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Business is refer to the form of investment through which individual or organisation offer
product or services to enough customers. This process helps them to earn sufficient amount of
profit. Usually most of the organisation are focused for satisfying present need of its customers.
For this business health check is executed by organisation it helps them to analysis the current
elements that are present in the business. The work done for this report is based from the
perspective of travel lodge which is operating their business in hospitality industry. Its
headquarter is situated in Thame, London. This assignment covers objective of the business and
different factors on its operations and activities of organisation. Along with these PESTLE and
SWOT are included to predict the environment and for analysing strength and weaknesses of the
country. At last some skills are mention that are required by management and staff in order to
attain organisational goals effectively.
TASK 1
1.1 Objective of the business
Objectives helps an organisation to formulate the targets that they want to achieve within
time period along with utilisation of current resources. For this task Travel lodge is the chosen
organisation which operates huge number of hotels inside and as well as outside the UK. It is a
division of hotels which was established in the year 1980. It is a British brand which provide
effective hotel services to its customers. It includes different factors like accommodation,
catering etc. along with this in recent years organisation also enters in travel and tourist services
to increase their market share (Cosh, Fu and Hughes, 2012).
Vision statement - The vision of travel-lodge is to expand their business at global level as
an independent hotel chain. Along with this to register themselves in top list of hotel chains.
Mission statement- Mission of the organisation is to develop their hotel with smooth and
unique design to provide value services to their customers.
Short term objectives of the travel-lodge
The main objective of travel-lodge is to reach at the top position of British value chain in
hotels. Along with management want to become largest hotel brand which operates their
business independently. Another objective for business is to become the ideal choice of
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customers in hospitality industry. This helps them to develop hotel that are suitable for all
budget.
Lone term objective for business
Long term objective of travel-lodge is to become the favourite value chain for business
which determines that they want to generate high value for their services. They seek to offer
unbeatable value for their services. The other objective of organisation is to reach in different
markets by delivering effective services to customers such as smooth design and comfort rooms
that work as USP for the organisation (Dignum, 2013).
1.2 Factors that impact on the business
Organisation is surrounded by different factors that impact on its activities. Therefore
PESTLE is implemented in this task which helps organisation to predict the external
environment.
Political factor- Travel-lodge is operating their purpose at global level which determines
that they are international organisation. The term political includes policy, rules, regulations etc.
that are formulated by government. In context of travel-lodge it is essential for them to follow all
the policies because they are performing their operations at global level. UK is developed
country therefore there is less probability that government develop some changes in policies and
rules of hospitality industry.
Economical factor- Policies that relates with financial terms of the organisation are
included in this factor. It includes interest and inflation rate, tax and fiscal policy that impacts on
business. Like after the Brexit the economy of UK is down which creates some issue for all types
of business. Due to this travel-lodge face up and downs in market which create hindrances for
organisation in order to achieve their goal (Fletcher and Williams, 2013).
Social factor- The term social factor represents the society that impact on business on
constant bases. It governs that business deal regularly with individuals, groups and society. For
these factor organisation analysis different factors like the trend in society, market conditions and
needs and wants of the society. Like in UK there is high per capita income of individuals which
determines that they spend on luxury. Therefore it is a plus point for travel-lodge because it
increases their customers.
Technological factor- In present scenario technology is the major factor that impact on
business and its daily operations. It is an major aspect that impacts on business which determines
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that technology play crucial role in present market industry. Travel-lodge invested huge amount
of money on technology which helps them to gain competitive edge from rivals.
Environmental factor- From recent years environment factors are majorly included in
this factor among overall world. It includes different factors such as environmental law, in
context of travel-lodge they are operating their business in travel and tourism industry. So it is
essential for them to save natural resources due to which more customers are attracted for
visiting their local country (Gallie and et al, 2012)
Legal factor- Each country formulate some laws to protect their local industry. It
includes employment act, safety law etc. that are essential for saving the interest of small and
local firms for their business. Like travel-lodge follow all laws so that they perform their
operations smoothly in each country.
Porter five force analysis- It is an analytical framework for the organisation that helps
them to gain competitiveness in the organisation. This forces are mention as below:
Threat of new entrants- Travel industry is growing with rapid face therefore it attracts
more number of companies to enter in market. For hospitality industry this force is moderate to
approach because it attract more customers to enter in market while new players also required
high investment to enter in hotel market which create difficulty for them.
Competition in the industry- Their is intense competition in the hotel industry because
the switching cost for customer is low. So this force is high in approach which results that it
create difficulty for existing organisation to sustain in market. Industry in which high capital cost
is required the stress to sale goods in society is also high.
Power of supplier- This force is low in approach because travel-lodge is mostly
depended on the power of human resources like labour, staff, employees etc. So the industry
demand skilled employees. In order achieve top position in market cost advantage is effective
tool hence bargain power of supplier does not impact on organisation directly (Heerde and et al,
2013).
Power of buyer- This approach is just the vice versa of supplier it is high in approach as
the main concentration of each organisation is to attract more customers due to which there is
increase in their sale. Some groups of buyers are high in approach like tour operators,
international and domestic airlines, event organizer etc.
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Threat of substitute products- The threat of substitutes products in hotel industry is
relatively low. Hotel industry is price sensitive market therefore they focus on targeting their
audience. Management of travel-lodge put more emphasis on accommodating large group of
customers such as business travellers and tour operators.
SWOT analysis of travel-lodge
Strength
 Travel-lodge provides room at
affordable price to their customers.
This helps them to increase their
market share.
 Travel-lodge promote their hotel in
unique way. Like organising different
CSR activities that helps to retain them
at top position.
Weakness
 Travel-lodge is dealing in most of
budget hotels therefore they does not
provide luxury hotel services.
 Companies is not able to manage their
services for large number of customers.
Due to lack of space and other facilities
that create barrier to provide services
for large group or organisation.
Opportunities
 Organisation has option to grow their
business outside the local boundary.
 Travel-lodge build positive relations
with other firms. These helps them to
increase their market share and number
of customers also.
Threats
 Most of budget hotels are price
competitive that create that reduce the
profits of travel-lodge.
 The large number of customers of
travel-lodge are only UK based. So if
they found new alternative then they
lost their loyal customers.
1.3 Potential improvement in context of business operation
To improve the business operation of travel-lodge it is essential for them to implement
Ansoff growth matrix in their activities. It works as planning tool for organisation that helps
them to determine their product.
Market penetration- Travel-lodge is offering their sale existing services in current
market by promoting and advertising their products through different platforms. This helps them
to attain their market with efficiency and effectiveness.
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Market development- In context of travel-lodge management target their customers by
introducing their services into new market. It is risky for them but it also creates new customers
for the organisation.
Product development- For this hotel comes up with new services through which they
target their customers of different segment. It is beneficial for travel-lodge because it increases
number of customers as well as product range through which it is easy for them to sustain in
market (Lencioni, 2012).
Diversification- Travel-lodge implement different range of products for its customers
into new markets. It is a risky approach because organisation invest their money to develop new
process that is difficult as it is complex and time consuming process.
M1 SMART criteria for travel-lodge to achieve their objectives
It refers to develop and formulate transparent and effective objective that contain some
essential elements that help to achieve their goals easily. Some major objective of travel-lodge
are as follow:
Specific- The major objective of Travel-lodge is to expand their business among overall
world by providing effective value to them.
Measurable- Management of travel-lodge decided to increase their market share with
more 40% to increase its business size.
Achievable- To achieve their goals travel-lodge divided their task into small projects to
cover the market.
Realistic- It is essential for organisation to develop those goals through which are real
like they want to establish their budget among overall world.
Timely- After deciding and formulating all the above objectives of an organisation it is
essential for travel-lodge to implement them so they achieve their target within specified period.
TASK 2
2.1) Review the effectiveness of the business.
Business effectiveness can be stated as degree to which set standards and consumers
issues are addresses in the market. In an organization business effectivenesses is raised by taking
right decision at particular time period. Travelogue is a leading private company operating in
hospitality industry across the globe (Meier and et.al., 2013). The effectiveness of the
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organization can be raised by formulating effective strategies and coming up with innovative
idea in the market. In order to survive in the cut throat competitive world business associates
does improvement in certain area such as , sales, marketing, product and services, staffing,
business images etc. In order to upgrade the working efficiency in the administration product,
marketing, sales etc. are explained as follows:
Product and services: Travelogue is able to attract huge customers in the competitive
world because they come up unique ideas and services for their potential customers. By doing
the effectiveness of the organization is increased at a rapid scale. Employees work day and night
to meet the changing needs, wants, demands and preferences. This helps the firm to achieve the
set standards on time. Administration motivate their employees to work effectively and
efficiently in order to raise productivity and profitability level in the market. Example:
Travelogue provide free entertainment activities to the children who are less then five years. This
services given by travelogue to their customers directly increase their working effectiveness in
the market. Due to which tough standards are set in the marketplace (Piotrowicz and
Cuthbertson, 2012).
Marketing: In order to survive in the neck to neck competition and to raise their
effectiveness in business travelogue adopts push and pull marketing strategy. By doing so firm
frame tactics through which customers are pulled towards their product and services. It directly
leads to raise in their effectiveness in working style as well as leads to profit maximization.
Organization also, adopts push strategies in which services benefits are pushed to the customers
ion order to increase the customer base for the unique ides. Example: Travelogue is coming up
with premium economy rooms or super Rooms in UK. In order to make aware about the unique
service they are adopting both push and pull marketing tactics. Due to which sales volume raise
and profits is maximized at a large extent.
Sales: In order to increase the sales ratio in the competitive market place Travelogue
adopts low- cost pricing policy. By doing so potential customers can be bind for the services for
longer time duration. By doing so switching cost of customers to other brand also decreases
which is a positive sign. Low-pricing strategy with quality services assists to increase the
effectiveness of the organization. Due to which huge profits is maximized and goodwill is raised
in the market. Example: The prices set in the food and beverages menu is affordable for the
customers as well as provide organic and healthy food items to their clients. By doing so
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goodwill is raised in the eyes of the customers and firm work more effectively to remain on the
top.
Finance: Money is the backbone of every organization in the global market. In order to
increase the workforce effectiveness in the premises of Travelogue sufficient funds should be
there. Lack of funds decrease the productivity level due to which emerging needs of the
customers are not meet on time. Travelogue is stable in terms of money so it is easy for them to
carry out effectivenesses of business activities in smooth manner. Example: Travelogue
required huge funds to promote their Super rooms in the market. Availability of funds in the
market encourage them to work effectively in order to meet the set goals on time. Funds act as a
backbone for the firm to uplift their workforce effectiveness in the market (Simoneaux and
Stroud, 2011).
Staffing: The effectiveness of enterprise upgrades when there is skilled and capable
workers working day and night to meet the goals. Lack of employees leads to unproductive
results in the market. Lack of competences and abilities in workers indirectly decreases the
effectiveness of the organization. Due to which objectives are not meet on time. Travelogue hires
capable employees for their vacant post in the market due to which market value is raised in the
market. Also, potential and loyal customers are bind with the firm. Example: Staff with required
abilities and skills help Travelogue to grow and develop in the global market. Providing them
proper training helps them to retain in the firm for longer time duration. Skilled staff increases
effectivenesses of working in the company which leads to gain competitive advantages in the
market.
Business image: Organization wok day and night to meet the emerging needs of the
customers. By doing positive business image is build in the eyes of the customers which leads to
raise in sales volume. It directly or indirectly raise the effectiveness of the business in the market
place. Top level management frame tactics to increase the market place in the customers eyes so
that objectives can be achieved. Example: Travelogue is providing organic and healthy food to
their customers and fulfil their emerging needs. By doing positive strong goodwill is created in
the customers eyes which directly encourage firm to raise their workforce effectivenesses of
business.
Record keeping: To grow and flourish in the market Travelogue keep record of
everything in their firm. For example, amount of cash inflow and out flow carried out during the
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year, inventory cost, customers preferences etc. are mentioned by the organization so that
effectivenesses of the business does not affect. By doing so proper evaluation can be done of the
funds and tactics can be framed accordingly. Example: Travelogue keeps record of the customer
taste and demand and serve the same services to them whenever they visit. By this act emotional
bonding is build and organization is motivated to perform better.
2.2) Design a plan in order to upgrade business.
Business plan is a written blueprint document in which information like, type of product,
marketing strategies, targeted customers etc. are mentioned in order to achieve the set standards.
This is designed by the organization so that short term and long term goals can be achieved
respectively in the global market (Singh and et.al., 2012). Travelogue design business plan to
attract investors, secure loans, attracting strategic business partner. The blueprint framed by the
business associates provides a rough idea weather the designed plan is capable enough to
generate profit or not. The main purpose of the business plan is to explain the employees,
investors, suppliers, partners etc. the the set goals and duties. The business plan designed by
Travelogue are discussed as follows:
SMART Objective:
To increase the sales by 20% in the coming 1.5 years.
To raise the profitability ratio for super rooms in UK by 25% in the coming two years.
Planning marketing: Proper marketing planning helps the organization to reach out their
set goals on time. In order to raise 20% sales for super Rooms in the coming 1.5 years firm need
to design plans respectively. In-effective marketing panning leads the companies market value
fall gradually and are unable to gain profits. In order to gain 25% profitability ratio the marketing
panning should be unique . So that huge customer base can be raised for the service. Before
entering into the market Travelogue need to frame unique tactics for marketing the Super Rooms
which is a new service in the market. By doing so best outcomes and huge market ratio can be
achieved. Product and services launched in the market with effective marketing planning will
leads to raise in sales volume. As well as effectiveness of the business will be upgraded
respectively (Van Velsen, 2017)..
Sales and productivity: In order to increase the sales and productivity Travelogue
adopts push and pull marketing strategies. In order to attain 20% sales for the product or services
companies productivity need to be raised respectively. By doing so Super Rooms sales can be
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increased and customers can be made satisfied accordingly. Which will lead to raise in profits
ratio by 25% in the coming two years. Firm is lancing this service in UK market in order to build
strong business image in the eyes of the customers. This innovative service will be able to build
more customer base. Due to which profits can be maximized at a large scale and growth and
expansion is done accordingly. It directly or indirectly raise the effectiveness of business in the
cut throat competitive world.
Planning with organizationals financial management systems: This is also a part of
business plan which helps the organization to design effective budgets. Planning for the product
is based on the amount of budgets company is holding. In order to raise the sales of the services
by 20% in the coming 1.5 years there should be proper planning to achieve it. The funds
requirement should be examined accordingly for the best outcomes. Effectiveness in staffing
helps the businesses associates to work effectively and efficiently in the market. Sufficient funds
available with the organization helps Travel-lodge to run the business activities smoothly.
Adequate funds with the administration aid to hire skilled and potential customers so that
productivity level increases and profits can be maximized (Van Velsen, 2017).. In order to gain
25% profitability firm should plane the tactics effectively so that organizational financial
management systems can accomplish it. Due to which business growth and development take
place as well as business effectiveness is raised.
Planning the roles and responsibilities of staff and management: In order to attain
20% sales for the super rooms in the UK market. Organization need to achieve this staff workers
are assigned their obligations and rights according to their profile. By doing best results can be
achieved in short term duration. Travelogue effectively assign the roles and responsibilities to
the skilled and potential employees so that 25% profits can be accomplished. By Assigning roles
and responsibilities according to their skills will help the organization to work effectively and
efficiently. Proper planning of roles and obligations helps to increase the effectiveness of
business and leads to growth and development in the market. Top management assign the roles
and responsibilities according to their abilities so that effectively resources can be utilized.
Planning performance monitoring: To be successful in the cut throat competitive world
proper evaluation of work should be done. By doing Travelogue can eliminate the errors in the
initial stage and best results can be achieved respectively. This leads to increase in effectiveness
of business activities directly. To attain the sales ratio of 20% in the neck to neck competition
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proper evaluation should be done. A systematic examination of performance helps the firm to
grow and develop accordingly. It also assist the business associates to accomplish 25% profits in
the competitive market place. Travelogue is planning to monitor performance on continuous
basis so that set objectives can be achieved in the set time duration (Taghian, D’Souza and
Polonsky, 2015).
TASK 3
3.1 Current skills of management and staff
In an hospitality industry it is essential for each and every organisation to recruit skilled
employees that helps to provide effective services to customers. Along with these it helps an
organisation to increase their market share because satisfy customers promote their services in
society and also become loyal customer for the organisation. Some essential skill are mention as
follow:
Technical skill- It includes those skill that help an employee to satisfy customer through
implementing some technique or methods. Communication skill- Employees who are working in hospitality industry need to face
physical and mental challenges on constant basis. Therefore to complete work effectively
lot of communication is required between employees, staff and customers. Multi task- Usually every job in hospitality requires some elements of multi-tasking. Like
the staff deal with customers at parallel time they also deal with the management to
transfer the need of customers.
Managerial skill- This skills refer that how an individual manage their work within the
organisation. Some of them are mention as below: Interpersonal skill- Communication is the key to gain success in hospitality business
while interpersonal skill are the major part of it that help to build effective
communication between them. It includes patience, professionalism and integrity in
employees (Peltier, Zhao and Schibrowsky, 2012). Team building- In service sector like Travel-lodge it is essential for the organisation to
accomplish their goals with the help of team. So they increases the skill of their
employees in order to create positive environment in the organisation.
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