Business Health Check Report: The Milestone Hotel, UK, Analysis

This report provides a comprehensive business health check for The Milestone Hotel, examining its objectives, operational factors, and potential areas for improvement. The report begins with an introduction to business health checks and their importance, followed by an analysis of The Milestone Hotel's objectives, both short-term and long-term, aligning them with SMART criteria. It then delves into factors affecting the business using PESTLE, Porter's Five Forces, SWOT, and Ansoff's Matrix analyses. The report assesses the effectiveness of various departments, including marketing, sales, finance, and human resources, and proposes plans for business improvement and skill development for management and staff. The analysis highlights the hotel's strengths, weaknesses, opportunities, and threats, providing valuable insights for strategic decision-making and sustainable growth within the hospitality industry. The report concludes with a summary of findings and recommendations.

Business Health Check

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Analysis the objectives of the business............................................................................1
1.2. Explaining the factors affecting the business..................................................................2
1.3 Determine potential improvements to the business organization.....................................4
TASK 2............................................................................................................................................5
2.1 Review the effectiveness of the business.........................................................................5
2.2 Develop plans to improve the business............................................................................6
TASK 3............................................................................................................................................6
3.1 Evaluate the current skills of management and staff........................................................6
3.2. Devise and justify plans for the development of skills for management and staff..........8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business health check is a key part of that process. BHC is a defined as a current
comprehensive assessment of the essential factors of business. There are majorly two parts of the
Business health check and it is also known as Business vitality check. In this process of BHC,
the strength and weaknesses are evaluated and it also describes the ways to improve it. In this
report The Milestone Hotel has chosen for assessment. This reports also discuss the long term
and short term objectives of business. The objectives of business are achieved by meeting the
'SMART' criteria. Further the report also explain the factors that affect the operation of business.
Pestle Analysis, Porter's Five Forces Model, SWOT analysis and Ansoff's Matrix, all these
models are discussed in this report. Moreover, the current skills and traits of management and
staff is also included in this assessment.
TASK 1
1.1 Analysis the objectives of the business
The Milestone Hotel in UK is considered to be one of the well known organizations. It
was built as a house in the year 1884 by John Freeman-Mitford. Then in the year 1922, it was
converted into a hotel. Cited firm aim at understanding the need and requirement of customers
and take initiative to improvement them appropriate manner. The vision and mission of company
is to produce aspirational quality to all and regain its leadership by meeting the changing
demands and needs of clients and developing competitiveness (Grasso and et.al, 2017).
Mission, Vision and objectives of The Milestone Hotel.
For achieving the targeted objectives and goals, The Milestone Hotel is setting some
objectives to become the leader in hospitality industry. Majorly there are two types of objectives
and goals of the company such as long term goals and short term goals. Long term goals are
those goals which can be achieved within or more than one year while short term goals are those
goals which can be achieved within or under 6 months of period.
The short term objective of The Milestone Hotel is to meet the general goals like any business
is started to make or earn profit and earn maximum return by investment of shareholders within
six months.

The long term objectives are also very important as company does not want to end up there
business in short time. Businessman start their business with the intention to remain and sustain
their business for long time. The long term goals of The Milestone Hotel is brand recognition.
Brand awareness and recognition of name is not an easy task. This is a long term task but is not
end or stop as brand recognition is an ongoing procedure.
Company is following the criteria of SMART goals such as goals and objectives should
be specific, it should be measurable, achievable, relevant and time bound. In order to gain long
term and short term goals of company, it is very important that the goals should be specific and
clear. If it is not understandable and clear, company cannot focus and even efforts are also waste
if goals are not clear and specific (Harris and et.al, 2017).
Another factor that company should keep in mind is that the set goals should be
measurable which means source of management should be identified and has capacity to track
the outcomes. The Milestone Hotel is comparing its plan and strategies with its competitors.
The gaols and objectives of The Milestone Hotel needs to achievable either it is long tern
or short term. It should not be too far to achieve.
The objectives sand goals which are achieved may be reliable bit it does not mean that it
is simple. Company have enough resources to execute the goals is known as reliable.
The last and most crucial factor in deciding the goals and objectives of company is it
should be achieved in time. It should be in schedule. The Milestone Hotel should have managed
the time to fulfil their objectives.
1.2. Explaining the factors affecting the business
PESTLE Analysis
Pestle analysis is a tool which is based on the principles of marketing as well this tool
helps in identifying the external factors and its impact on business. It helps in tracking the
environment where The Milestone Hotel is going to launch its services in the market. There are
six factors included in these tools are political, economic, social, technical, legal and
environmental factor.
Political- The government of UK has some legislations, rules and regulations which abide by
some laws of British Standard. The Milestone Hotel has to follow these rules and legislations,
government takes actions on them or sometimes force closing it (Rossi and et.al, 2017.).

Economical- In the present era of modernization, economic outlook of people is uncertain which
affect largely to cited firm. People do not have enough money to spend in luxury hotels. The
Milestone Hotel has been largely hit by economical factor and in conditions of recession and
inflations has negative impact over the business.
Social- This factors helps in analysing the current trends, fashions, demographic profile and
preferences of people. These elements are included in the social environment. The Milestone
Hotel need to conduct market research so that they are able to understand the requirement of
customers.
Technological- Changes in technology take place frequently. Company has to manage the brand
of the company very carefully and it is important that they update or use new technology.
Creating brand awareness in the mind of people is not an easy task as company has to spend
much more on advertising and promoting.
Legal- Policies, legislation are ever changing. The Milestone Hotel has to work according to the
norms and rules of government. Company is paying taxes properly to government.
Environmental- This factors covers all the elements which have impact on business and are
analysed by the surrounding. The Milestone Hotel are being pressured to alter and modify their
style of production when there is pressure exert by clients (Zipperer, 2017).
Porter's Five Forces
It is the model which helps in analysing the competition of a business. There are five
forces included in this model which describes competitive intensity and attractiveness of market.
Five Forces are-
Bargaining power of supplier- It is the pressure exert by the suppliers on the company. The
Milestone Hotel is also facing large amount of pressure from their suppliers. Company is
maintaining contracts from so many suppliers to control the bargaining power of suppliers.
Bargaining power of buyer- It is the pressure exert by buyer on company. The bargaining power
of The Milestone Hotel is very high. People are more sensitive about the price of the products.
Cited firm is adopting consumer oriented strategies instead of product oriented strategies.
Threat of entry- In the hospitality sector, the threat of new entrants is not so high as it is not easy
in this sector the cost of operation is very high. The Milestone Hotel has to elaborate its channel

of distribution which requires huge amount of money. Thus, because of high capital the threat of
entry is low.
Threat of substitutes- Threat of substitute is high in hospitability industry. Customers are more
sensitive towards the price of the products. Increase in price of the products, shifts the customers
to another (Borley and et.al, 2018). The switching cost is very high in hospitability industry.
SWOT Analysis
Strength
 High quality.
 Customer Service.
 Training and Development.
 Diversified range of products.
Weakness
 Debt reduction.
 Slow sales growth.
 Low cash flows.
 High operational cost.
Opportunities
 Diversification of products.
 Health and beauty.
 Further development and growth in
international growth.
Threat
 Price war.
 Overseas return could fall.
 Challenges form competitors like
Hilton, Marriott hotel, etc.
 International expansion.
1.3 Determine potential improvements to the business organization
Improvement plays crucial importance in the development and growth of any business or
company. The Milestone Hotel is also doing regular improvement in the business. Improvement
is not a onetime procedure, it is on continuous basis. The management of company has gone
through all the planning and strategies which are made for accomplishing the task. Continuous
evaluation or improvement is quite easy as mistakes and loopholes are sought out at potential
stage (Arroyo and et.al, 2017). The Milestone Hotel has its tool for doing continuous evaluation
as the management of the company shake the comfort zone. It is done only because staff of cited
firm often refuse changes only because of their comforts. Company also have to improve its
competitive position in the market by doing continuous evaluation.
Company is using Ansoff's Matrix to development and growth of company.

It is a tool that helps in strategic planning that renders a framework which executives,
managers devise schemes for the growth of future. There are four quadrants in Ansoff's Matrix.
Market Penetration- The focus on this quadrant is to increase the magnitude of sales of existing
products to the company's existing market.
Product Development- This quadrant focus on achieving the target of existing market with the
new products (Bravo and Hoffman-Goetz, 2017).
Market Development- This quadrant focus on using of existing product to acquire the new
markets.
Diversification- This quadrant is unique as this focus on the product differentiation. The focus is
to launch new products in new market.
TASK 2
2.1 Review the effectiveness of the business
Business effectiveness refers to the degree to which goals and objectives are gained or
achieved and what extend the problems or issues are solved. In general meaning, effectiveness
means doing the right thing at right time (Wang and Byrd, 2017). The Milestone Hotel is doing
its best in achieving its targeted goals and objectives. Effectiveness in business is very significant
as it is the most common problem that the management of company have discovered that they
can apply strategies and techniques to become efficient. The image of The Milestone Hotel is
very good, as customers are satisfied and happy by their products and services.
A review of the effectiveness of areas of The Milestone Hotel are as follows-
Marketing department- The Milestone Hotel has set some objectives in order to achieve the
targeted goals. Company has formulated the plans of developing the products and services,
increase the quality of products, packaging styles, make use of different tools and techniques of
marketing of products and services of company. The effectiveness of The Milestone Hotel is in
the quality of products and its packaging. Customers are very much attracted towards the
products of company.
Sales department- The sales department of The Milestone Hotel has the main objective to
increase the sales and maximise the sales revenue (Borchers, Chang and Gershwin, 2017). It is
very important to have set the goals for enhancing the sales of company. Company is using

effective distribution channel and promotional tools to maximise the sales but still The Milestone
Hotel has to bring efficiency in its distributional channels.
Finance department- The finance department of The Milestone Hotel is doing its best in its
filed. Company has adequate resources to meet the challenges of market. Company can easily
acquire fund from outside because of the name of brand.
Human Resource Department- The human resources' department of The Milestone Hotel is very
effective towards their work. Employees are the heart of any business. The employees and staff
of company is well qualified but still they need training bringing effectiveness in them.
2.2 Develop plans to improve the business.
Effective planning of business is the key to success. It is a written documents of the
future of business. In this document of business the plans or strategies are written which are
implement by the management of company in order to achieve the target and goals of market. In
formulating the business plans, there is some requirement of resources and abilities to make the
plan of business effective.
The Milestone Hotel is developing it markets planning by making effective use of tools
and techniques of marketing (Yang and et.al, 2018 ). Company has set its objectives to increase
the profit by 2%, after setting the objectives, the management of company is analysing its market
by using pestle and porter's five forces. Company also done its internal analysis with the help of
SWOT analysis. Beside this, company evaluate and calculated its available finance for
developing the plans as because without fund no plans can be implemented.
The Milestone Hotel is developing its plans effectively but in order to make the plans
complete, there are some roles and responsibilities of the staff of company. The employees in the
organization has to work in a manner that the goals and objectives are achieved in time and it is
of good quality. They have to work for common goals in order to make the business plans
effective. Furthermore, the managers of the company has to monitor the performance of staff at
regular basis so that improvement is done.
TASK 3
3.1 Evaluate the current skills of management and staff
The Milestone Hotel has effective staff and employees in the company.

Operational skills- Operational skills is very essential skills which helps in directly contribution
to success of the company. By developing organizational skills in the employees, they
understand the needs of customers, communicates effectively and understand the financial
performance of company. So it is very important to have operational skills.
Managerial skills- Managerial skills is the most important skills which is very important to have
in each and every employees (Tien and Chung, 2018). The role played by manager is
multidimensional. So to become a manager, one has to develop so many skills for performing its
duty. It included technical skills, human skills as well as operational skills.
Technical skills- Technical skills is the ability and knowledge required to perform for specific
work. Technical skills includes mechanical, IT, mathematical and scientific works. Technical
manager requires the entire knowledge of languages, programming, mechanical equipment’s.
Current skills of management and staff of The Milestone Hotel are as follows-
There are so many skills present in the staff and managers of The Milestone Hotel such as
communication skills, motivational skills, skills of trust and honesty, skill of learning.
Communication skills- The staff and managers of The Milestone Hotel has the best
communication skills as they interact with each other in most effective way. The managers and
staff are friendly speaking to each other’s. They have high level of confidence in speaking. They
are open minded.
Motivational Skills- Motivation is the essence of the business. The manager and staff of The
Milestone Hotel has the best motivational skills in them (Park, Kim, Ahn and Kim, 2018).
Manager always motivate their subordinates in order to complete the task from them. The staff
member of The Milestone Hotel are also very passionate towards their work which shove the
level of motivation in them.
Learning Skills- The managers and staff of The Milestone Hotel has the good learning skills.
They are very creative and innovative. They always try to learn new things from their seniors
and from opportunities. Staff of company is learning leadership skills by their team leaders.
Skills of honesty and trust- Honesty and trust is the backbone of business. It is very important to
have trust and honesty within the organization staff and managers.

3.2. Devise and justify plans for the development of skills for management and staff
The above skill of managers and staff of The Milestone Hotel are adorable and excellent.
The skills which are present are improved too much extends. Company has to develop those
skills more in order to bring efficiency in work. These all skills will help the new employees to
develop these skills in them. Communication skills are very much important as without
interaction no work can be executes. Learning skills also plays vital role in the development and
growth of business as because in today's era there is high level of innovation and creation which
requires high level of learning (Kondo and Ishikawa, 2018). These all current skills of staff and
managers will be develop and grow by giving more training to them. As by training their skills
will be increased and enhance more and more.
CONCLUSION
From the above report it is concluded that Business health check plays a vital role in
development and growth of the business. It is very essential to have continuous improvement in
the activities of business. The reports also conclude the long term and short term objectives as
well as meeting the SMART criteria. Pestle analysis, porters five forces model, SWOT analysis
and Ansoff's Matrix is also understood in this report.

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