Small Business Enterprise: Holiday Extras Business Analysis Report

This report provides a comprehensive analysis of Holiday Extras, a small business enterprise operating in the UK's hospitality industry. It begins with an introduction highlighting the importance of small businesses in economic growth, followed by an examination of Holiday Extras' strengths, such as its innovative culture and high-quality services, and weaknesses, including lack of technology and inexperienced staff. The report then analyzes the business using comparative performance measures, including customer satisfaction, marketing tools, and financial data. It proposes actions to overcome identified weaknesses, such as investing in employee training and adopting modern technology. Additionally, it explores ways to maintain and strengthen existing performance, including employee motivation and customer satisfaction. The report also outlines new areas for business expansion, such as entering new markets, opening physical stores, and forming partnerships. Finally, the report revises business plans, prepares an action plan, and assesses the impact of proposed changes on the business and its personnel, concluding with a discussion of how to manage and monitor improvements in performance.

SMALL
BUSINESS
ENTERPRISE
UNIT 33

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Profile of selected business along with its key strengths and weaknesses............................3
1.2 Analysis of business using comparative measures of performance.......................................4
TASK 2............................................................................................................................................5
2.1 Appropriate actions to overcome the identified weakness ...................................................5
2.2 Ways of existing performance maintained and strengthened................................................6
2.3 New areas of Holiday Extras which the business could be expanded...................................7
TASK 3............................................................................................................................................8
3.1 The existing business objectives and plan of Holiday Extra ................................................8
3.2 Revise business plans to incorporate appropriate changes....................................................9
3.3 Prepare an action plan to implement the changes................................................................10
TASK 4.........................................................................................................................................11
4.1 The impact of the proposed changes on the business and its personnel .............................11
4.2 Plan how the changes will be managed in the business.......................................................12
4.3 Monitor improvements in the performance of the business over a given timescale............12
CONCLUSION .............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
In the modern era, development of small business has become important for the growth
and success of an economy. Furthermore, such kind of business contributes high by delivering
different products, services and creates employment opportunities in a nation (Burns, 2010). The
present research report is based on Holiday Extra which a small business enterprise operating in
UK. This study highlights the core strengths and weakness of the organization. Along with this,
it also analyses the Holiday extra various comparative measures of performance. At present,
hospitality industry in which the selected business is operating has become highly competitive
and this has resulted in creating obstacles in increasing sales and profits Nowadays, companies
are required to carry out aggressive marketing and deliver satisfactory services to attract more
new customer and retain old ones. The most appropriate actions which can be used to overcome
identified weakness of Holiday extra are also mentioned in the present study.
TASK 1
1.1 Profile of selected business along with its key strengths and weaknesses
The selected business enterprise which is Holiday extra, a group hotel which is located
near airports to provide services related to food and accommodation. At present, the hotel is
doing well and it is focusing upon delivering most satisfactory services to all its clients. The idea
of starting hotel initially came in the mind of Gerry pack where he noted travellers are not able to
find good place for food and accommodation near airport. After working upon this problem for
some time, he decided to open airport hotel to deliver effective services to the traveller at very
convenient prices. The key strengths and weaknesses of Holiday extra are mentioned below as: Strengths: Innovative culture of Holiday extra can be termed as one of its major and key
strength. Here, the business has developed an open culture which always promotes
innovations and creativity. This means employees are encouraged for giving highly
creative ideas to carry out operations and serve customers (Carter and Evans, 2006). The
culture has supported Holiday extra to create sense of satisfaction among its workers and
retain them for long run. On the other side of this, high quality of services which has been

provided by Holiday extra can be termed as another major strength of the company.
Quality services at very convenient prices have helped the small business enterprise to
increase its sales and profits by creating satisfaction among all its customers (Dobbs and
Hamilton, 2007).
 Weakness- Lack of technology and inexperienced staff member are the two major
weaknesses which have been faced by Holiday extra. This has created several kinds of
restrictions in increasing sales and profits of the same. In order to sustain in highly
competitive market, it is required by the company to work upon to adapt high end
technology and deliver effective training sessions and development programmes to all its
employees (Hatch and Cunliffe, 2013).
1.2 Analysis of business using comparative measures of performance
In the modern era, every business enterprise is required to carry out their analysis at the
regular intervals. The rationale behind this is that effective analysis supports them in getting
aware of their key areas which need to be improved (Down, 2010). In addition to this, such kind
of evaluation plays important role in determining effective future strategies. Holiday extra
analysis using comparative measures of performance is carried out below as: Customer satisfaction- After carrying out the assessment of Holiday extra customer
satisfaction, it can be stated that the rate of its customer satisfaction is appropriate. Most
of the time, travellers at airport wants fast, accurate and satisfactory services related to
accommodation and food should be provided to them. The small business keeps working
on its quality of services and also initiates to make required changes in the same. Marketing tools- At present, the company is using traditional marketing tools such as
advertisement on television, newspapers and promotional events. This means modern
marketing tools such as social media marketing, online, email marketing are not used by
the small business. This has somewhat created restrictions in increasing sales and profits
of the business enterprise (Gronum, Verreynne and Kastelle, 2012). Financial data – It is another comparative measure of performance which can be used to
evaluate the business enterprise (Hamel, 2008). After assess its financial data, it can be
expressed that in last few years the sales, profit and market share of Holiday extra has

increased to a great extent. However, the company has potential to perform well in case if
it is able to overcome all its major weakness in an appropriate manner.
 Speed of services- Holiday extra is delivering fast, reliable and accurate services to all its
guests and travellers. This has supported the company in developing good image in
market and attracting more customers in the long run.
TASK 2
2.1 Appropriate actions to overcome the identified weakness
In order to carry out smooth flow of all its operations and activities, it is required by
Holiday extra to take corrective measures and appropriate actions to overcome all its major
weaknesses. As it has been already discussed that the competition among hospitality industry has
become highly intense and this has restricted the firm to increase its sales and profits.
Inexperienced staff member has been identified as the key or core weakness of Holiday extra. It
can be stated that in hospitality business, it is required by companies to operate with productive
and competent staff which can deliver satisfactory services to guests (Carter and Evans, 2006).
One of the best ways to overcome this weakness is by focusing upon training and development
of all its employees. The selected small business enterprise has an opportunity to carry out
effective training program at regular intervals and enhance existing skills of all its employees
(Massa, Farneti and Scappini, 2015). Along with this, the brand can also carry out hiring of
people who have relevant experience in working with hospitality industry. This will help in
developing staff members who will be competent and capable enough to deliver satisfactory
services to guest.
Lack of technology is another major weakness which has created obstacles in increasing sales
and profits of the brand. In order to stay competent in present scenario and carry out more
effective operations, it is required by the small business to implement and use modern
technology. This is because use of such kind of technology will support in delivering fast,
accurate and more satisfactory services to their clients (Williams and Schaefer, 2013). Thus, it

can be stated that above mentioned are the two most convenient and effective actions which can
be taken by Holiday extra to overcome all the major weakness which it is currently facing.
2.2 Ways of existing performance maintained and strengthened
Holiday Extras has highly motivated employees and they feel proud in working in the
organization (Best companies, 2016). The above cited firm's staffs are satisfied with their jobs
and all take part in the company’s weekly activities (Gronum, Verreynne and Kastelle, 2012).
The management care about individuals and also take care about the satisfaction level of human
resource in the job. Through this, the company get better result and output which helps to
achieve its goal and enhance its customer satisfaction. To maintain their satisfaction and
performance of cited organisation, the management should make effective strategies to maintain
their performances. Quality performance is important to satisfy the customers. The customers are
individuals who develop business of the company. Acceptance of the enterprise products and
services are also important for the success and growth of the business (Rummler and Brache,
2012). The following firm provides quality products and services to its customer. It becomes
necessary for the firm to maintain this quality performance and try to increase it in the future.
Holiday Extra always looks for better opportunity for its customer satisfaction.
To maintain satisfaction of customer, the firm can carry out the research or survey on the
customer regarding understanding the quality of its product and services and to take feedback of
them. The mentioned organization compares its product and prices with its competitor company
(Quilliam, 2015). After this comparison, organisation tries to keep the price of the products and
services at the lowest possible level and provide better quality to strengthen the performance.
The company can maintain its peak performance thorough proper training and development
program which is update staff of cited firm and helps to running organization in smooth way.
With the changes of time and customer preferences, the enterprise should design product and
services according to their needs and wants. The firm also needs to maintain quick delivery of
products and services to the customer (Howard-Grenville, Tsoukas and Langly, 2016). The
company increases its market share through providing products at reasonable prices and services
which also enhances the position of company (Mowday, Porter and Steers, 2013). Hence, the

business entity follows different ways which helps in maintaining and strengthening the
performance of the business effectively.
2.3 New areas of Holiday Extras which the business could be expanded
To develop the business of holiday extras, it is important to expand its activities in
various areas properly. By involving competition level and other factor it is recommended that
the company may try to expand its business through entering in new markets to grow its
business. Before entering, the enterprise must do research first. This will help the organisation to
understand wants and needs of customer and then develop products and services in accordance
with their requirements which satisfy them (Smither, Houston and McIntire, 2016). The
company must operate its work in new locations or also the company can enlarge its business
through open franchisees in various places.
The organisation in existing time mainly provides its products and services via online to
the customer. So the cited company can expand its business by providing its products and
services by physical store in various places. When the company provides its services outside the
national border through online or physical store than the firm can generate more revenue and
enhance awareness of services of the following company. This expansion helps in increasing
customer of the organization (Rummler and Brache, 2012). It also creates different products and
services with better quality which is purchase by also low household income individuals. It
creates products and set prices according to level of income of buyer (Cummings and Worley,
2014). This helps the enterprise to attract low, medium and high income people which increases
market share of the company. It is also recommended to go for partnership with low, medium
and high budget of hotel with its services which will enhance its reputation in the hospitality
industry.
The company can provide extra additional benefits and offers with its products for
valuable and regular customer. This will help to potential customer in long term period. This
helps to attract different types of customer which buy its products and services. The organisation
products and services are already purchase by customer. But it is recommended that the firm can
increase cost of its purchase and improve customer loyalty by providing additional services such

as rewards, additional benefits and other also which customer might be need (Bruno, 2016). It
can also use updated technology for its customer to grow its business. Hence, the cited enterprise
could expand its business by entering into the new recommended areas (Howard-Grenville,
Tsoukas and Langly, 2016).
TASK 3
3.1 The existing business objectives and plan of Holiday Extra
The objectives of Holiday Extra:
 To provide a high standard of service for customer where they can feel relaxed,
comfortable and have memorable experience.
 To increase growth and development of enterprise in tourism and overall economy of UK
 To develop enthusiastically satisfied customer by providing better services.
 To offer excellent services at very reasonable prices.
Plan of Holiday Extra is to achieve its objectives by making different strategies. The
company can increase its market share by rendering services at the reasonable prices. The
company can achieve its target by making different marketing strategies which includes defining
product and services, research target markets and identifying competitors (Gronum, Verreynne
and Kastelle, 2012). After this, they can implement the price and promote its products through
various ways. The company ensure that the resources are available or not which is necessary
exist in organization to achieve its goal. It can also achieve its goal through making creative
products and services which attracts the customer. This helps to increase sales of the
organization and earn more profit. The company meets its goal through recruiting right people in
the company (Burke, 2013). The management should have clear goals and vision of business to
its employees.
The employees can work effectively when they understand clearly goals and objectives of
company which helps to achieve business goals. The cited firm provides better services which
are not given by any other competitor’s organization. This will help to attract more customers.
The cited firm promotes its activities through online and advertising. The consumers now access
lots of information of travel related information through internet so the firm must make good

website and promote its services through e- marketing. The company updates their technology
time to time to earn more revenue. It also achieves its objectives by providing services according
to the customer needs (Carlile and et. al., 2013). The cited firm should observe or analyze the
user needs and wants which are rapidly changing in the present scenario. The company can also
motivate its staff to increase more productivity and enhance morale of the workforce. Hence,
there are many strategies which the firm can make to achieve its objective efficiently and helps
to expand its business.
3.2 Revise business plans to incorporate appropriate changes
Developing business plan is necessary for the improvement of the company. In the
modern business world, the preferences of customer regarding product and services are changing
day by day. To adopt with this changing atmosphere, the enterprise need to make strategies and
develop flexible business plan. The Holiday Extras company has faced the changing preferences
of the customer in the products and services of its organization. People are now a day’s
becoming more upgraded and aware about products and services of different company. They are
attracted to those products which are innovative and value for the money (Hatch and Cunliffe,
2013). To attract more customer company already give impressive services and give additional
benefit to its valuable customer. The company has promoted their services by many different
ways like advertising and e-marketing etc.
To grow its business an enterprise ensures that they grow or develop in the local market. The
relationship with local community helps the firm in improving its market condition effectively.
The main changes in this cited organization is that they make impressive products and services
which attract different types of customer in its target market. To meet the customers’ demands,
the organization should set prices for new products according to the customer requirements
(Gronum, Verreynne and Kastelle, 2012). To effectively make business plan, the firm should
research and do survey to understand the customer preferences (Khundrakpam and et. al., 2013).
The company can use the technology to provide its products and services information and
increase its brand awareness. The organization can give valuable customer addition benefits and
discounts to attract and retain more customers. Every individual wants that they should purchase

quality products and services (Newsome, Thompson and Commander, 2013.). So the company
provided to its customer quality products with additional services which is helpful for the
organization to grow its business and expand their operations.
3.3 Prepare an action plan to implement the changes
Changes are important in every organization to survive in the long term period. With the
change of time, the organization must adopt modifications which are taking place. The
individuals are changing rapidly and with the changes, preferences in the services and products
are also changing rapidly. To adopt this condition, the holiday extra enterprise has developed
some action plan to implement the changes (Simons, 2013). The firm should build up the
relationship with the local market than the overseas target market. The cited organization first
selects its target market through survey to implement the changes. It designs the products or
services in such a way which attracts individual and use those products and services. The
enterprise motivates the suppliers to give quality products and services to them.
The company has developed its standard and it has made the payment procedure easy where
customer can pay for their products and services (Appelbaum, 2013). It has also developed their
products and services or set prices as per the requirement of customer preferences. The cited
organization should try to make a system which provides a specific and guarantee system to its
customer. To implement the changes, the firm has also made a system to identify the fake
founder of the organization and make individuals and consumers notified about the whole system
process which can reduce the chance of falling into fraudulent situation (Hřebíček and et. al.,
2014). In action plan, the management provides training to staff to understand new changes of
business operations which helps to implement the modifications effectively.
Kurt Lewis change management process: Kurt Lewis change management is a three stage
theory of change which is referred as unfreeze, change and freeze. If organization wants to begin
any successful change process then it can be done through understanding change. Following are
steps of this process: Unfreeze: It is the first stage of change which involves break down of existing status to
accept the change which is necessary. For preparing of Holiday Extra successfully,

everyone need to start with beliefs, values, attitude and behaviours. First part of change is
usually difficult and stressful. Change: After completing of first stage, change step is occur. In this stage people of
Holiday Extra start to believe and act in that way which support to them with new
direction. In order to change and contribute, people need to understand that how change
will benefit to them. Time and communication is essential in success for changes to
occur. When people managing change, it is required to great dealing with time and efforts
with using of best approach.
 Refreeze: When changes taking place and people of chosen business working with new
way of direction, company is ready to refreeze. This step is helpful to people and
organization internalize and institutionalize. This step makes sure that all the changes are
incorporated in day to day business operations.
TASK 4
4.1 The impact of the proposed changes on the business and its personnel
For the growth or development of the business organization, it is important to include
each and every component and factor very properly. Proper consideration of factor is helpful for
the organization to achieve its goal and objectives. As the time changes, the overall business
condition also changes with its human resources. So it is important to cope up with the changing
business operations of the enterprise. However, the impact of the proposed changes on business
and its personnel is effective. Changes in trends will impact the business by actually making
customers more concerned about the impressive offers in travel and hotels. The better and
impressive offers attract more customers rather than normal services in the today's business
world (Howard-Grenville, Tsoukas and Langly, 2016). This has further affected in increasing
sales of products and services. Expanding in outside the country or new location has increased
employment and also enhanced the job responsibilities of human resource of the enterprise. The
caring attitude by the cited firm towards staff is essential to gain customer satisfaction. This
attitude also needs to be enhanced with the changes of time. Changes can help a business to stay
competitive and act according to the current industry trends. This can make the business more
attractive to potential customers. As a result of this, Holiday Extra will be able to retain its
existing customers.

The company is adopting and handling changes which will create an environment that
encourages innovation at the workplace. An individual who feels that their ideas will be
considered by a management or owner might be more willing to think creatively which will be
helpful for the growth of business. A good product or service or marketing idea can improve
success of a small medium enterprise. Further, changes can enhance the efficiency of work
processes which can make the customer as well as the workforce satisfied (Hatch and Cunliffe,
2013). A new delivery process can increase the speed of service delivery. It also improves the
attitude of the human resource of organization. It increases morale and positive effect on
employee attitudes creates relaxed working environment.
4.2 Plan how the changes will be managed in the business
Management is an essential part in business organization. The proper management of
operation helps the chosen company to develop its position in the competitive market. The
Holiday Extras produces products and services for low and medium income household
individual. So with these changes, there, there will be a requirement of making certain
modifications within the business. If the following company manage these changes properly
then it will be helpful for them in the growth and development process. Holiday Extra can
manage changes by providing proper training and development program to its employee which
will help in adopting the modifications in business operations (Crosby, 2013). The staff training
is helpful for the organization to manage up gradation of technology and operation of the cited
firm. Customers are essential part of every organization in success. So to be successful, the cited
company is also providing a careful customer services to gain customer's satisfaction and loyalty
over their services and products. The concerned company tries to render customize services to
its customer which help in managing the changing condition properly. To manage changes
successfully, the management is to keep the staff informed about the changing activities. The
supervisor start communicating with employees to inform the changes as early as possible. This
is required so that the individuals have time to understand and work for the implementation of
the changes. Holiday Extra can manage its fluctuation by taking feedback of human resources
and customers.