Small Hospitality Business Analysis: Planning, CRM, and Finance

This report provides a comprehensive analysis of a small hospitality business, specifically focusing on the company 'John and Jerry.' The report begins with an introduction to small business enterprises and the importance of effective management. Task 1 delves into the main considerations for resource planning and allocation, including workforce skills, financial resources, and the company's vision and objectives. It applies tools like Gantt charts and critical path analysis. Task 2 examines customer relationship management (CRM) processes, including analytical, operational, and collaborative approaches, and evaluates the benefits and drawbacks of traditional business development and transnational operations. Task 3 focuses on financial aspects, including cash flow forecasting, break-even analysis, and the interpretation of key financial statements, along with the implications of relevant legislation and regulations. The report concludes with a summary of findings and recommendations for successful small business management in the hospitality sector.

Small Hospitality
Business

Table of Contents
INTRODUCTION ..........................................................................................................................4
TASK 1............................................................................................................................................4
P.1. Discuss the main consideration a small business or social enterprise needs to address
when planning and allocating resources to achieve business objectives ? ...............................4
M.1. Apply suitable tools and techniques in a structures and analytical way to plan and
allocate resources in context to organisation?............................................................................5
M.2. Assess the importance of planning and allocating resources to achieve the objectives of
business? ....................................................................................................................................6
D.1. Critically analyse the application of appropriate resources to demonstrate link between
resource, allocation and achievement of business objectives?...................................................6
TASK 2............................................................................................................................................6
P.2. Explain and evaluate different process of customer relationship management for small
business or social enterprise?......................................................................................................6
P.3. Explain how small business can develop traditionally and determine drawbacks and
benefits........................................................................................................................................7
M.3. Apply and evaluate the element of the customer relationship management process in
relation to achieving objectives of the business?........................................................................8
M.4. Evaluate the potential to develop transanational operation using the stage model of
internationalisation , assessing both benefits as well as challenges?..........................................8
D.2. Critically evaluate the customer relationship management process at all stage and
provide recommendation for over coming challenges of developing transnational operations.
.....................................................................................................................................................9
Task 3..............................................................................................................................................9
P.4. Produce an annual itemised monthly cash flow forecast showing fixed and variable costs
set against income for specific organisation?.............................................................................9
P.5. Explain in detail how break even analysis could be applied to an organisational situation.
...................................................................................................................................................10
P.6. Interpret key financial statements for an organisation in relation to how they contribute to
successful management of the company?.................................................................................11

M.5. Application of suitable quantitative and analytical techniques to provide detailed cash
flow forecast as well as break even analysis? .........................................................................13
D.3. Produce an accurate cash flow forecast and break even analysis with critical evaluation
of how key financial statements contribute to the successful management of the business?...13
P.7. Discuss key legislation and regulations that have implication on small business or social
enterprises?...............................................................................................................................13
M.6. Evaluate the implications of key legislation and regulations in an organisational context?
...................................................................................................................................................14
D.4. Critically evaluate key legislation and regulations that affect smalll business or social
enterprise organisation taking future developments and change into account? .......................14
CONCLUSION ............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Small business enterprises involves those organisations which need small fund to
perform operational activity. It is the duty of managers to make control over the affairs of the
company so that workforce perform their task properly which helps in achieving targets that are
set by mangers in the entity. To all type of companies it is necessary to follow all principles of
accounting ,Act, accounting standards , rules & regulations etc. so that it become possible to
formulate financial statements properly in most accurate manner (Ahmad, 2019).Various
strategies are followed by managers to run small business effectively through attaining higher
profits as well as to increase sales. Main objective of the project is to analyse need and
importance of managing small business. Company that was selected for this assignment is John
and Jerry. Various topics are cover under this assignment such as small business plans as well as
allocation of resources in terms to achieve objectives. Evaluation of small customer relationship
management are also explain in it. Cash flow analysis, budget forecasting, Calculation of
B.E.P. , interpretation of all financial statements,On the other hand implications of all regulations
on small business are tends to include in this report.
TASK 1
Overview of the chosen company
Haytor hotel is the hospitality business, It is an elegant detached early Victorian villa
established in the year 1835 and also set in beautiful gardens. The hotel is located in
conservation area on leafy and peaceful Meedfoot road.
P.1. Discuss the main consideration a small business or social enterprise needs to address when
planning and allocating resources to achieve business objectives ?
Resource allocation & their planning is very complex process as manager of hospitality
industry need to pay high attention for allocation of resources to different departments of the
company. For example Executive and management team of Havtor hotel consider many factors
to do planning. Few of these factors are explain in details in below paragraphs (Boone, 2021).
Workforce and their skills- In every organisation human resource is considered as
precious assets because they are concerned with business execution activities. Experience,

knowledge and skills of employees supports company to achieve objectives that are set by firm
in advance. For doing planning and to allocate resource , manager of hospitality industry
consider the skills of workforce For example The cottage in the wood hire the staff members
through HR who can easily achieve the Targets on time.
Financial resources- For smooth business running it is important to make arrangement
of sufficient money so that day to day activities are not interrupted. At the time of doing
planning or for allocation of funds hospitality industry must check in advance whether they have
sufficient monetary resource or not. To serve this purpose financial statements are prepare by
finance team of company . For example In Edgar house on regular interval of time cash flow
statement, P&L and balance sheet are analyse and if appropriate money is not available than it
must be arrange by taking loan from banks and financial institutions. Enough funds helps to do
investment and achieve objectives of company (Carrillo Zavala, 2020)
Vision, mission and objectives- For every organisation and employer it is important to
keep in touch with work force and maintain good communication to make discussion regarding
mission, vision & objectives. This become beneficial to gain their trust as well as result in
increased engagement in their job responsibilities. At the time of allocating resources these
elements are consider by management team of hospitality industry because it provide motivation
to workforce to work hard and achieve great productivity. For example in the hotel Lvybank
Lodge When employees do their job with their higher involvement, it results as to improve their
work quality which helps to achieve goals effectively on time as well as gain competitive
advantage also.
M.1. Apply suitable tools and techniques in a structures and analytical way to plan and allocate
resources in context to organisation?
By using these tools in the business hospitality industry formulate plan and try to
allocate resources in various functional departments of the organisation.
Gantt Chart: To schedule operational activities , horizontal bar chart is prepared by
company . This technique is follow by mangers of Havtor hotel when allocation of resources to
different department is perform it is beneficial to formulate impressive and attractive business
cognition (Chan, 2019)

Critical Analysis of Path: It is a technique used to do planning which is carried on with
the intension to find number of alternatives and selecting those which is most suitable for
business situation. This can be used when allotment of fund is done. It is most suitable to
corporate entity because with the help of this suitable path is find out in which objectives can be
achieved during specific period of time.
M.2. Assess the importance of planning and allocating resources to achieve the objectives of
business?
It is necessary to plan when planning to allocation of funds at various different units of
the organisation is done. It help firm to do all the task related to operations appropriately.
Hospitality industry through proper allotment of funds results in enhanced skills of workforce
tends to increased productivity and profitability. Appropriate distribution of resources is must
because than only task can be perform successfully ( Dewnarain, 2019)
D.1. Critically analyse the application of appropriate resources to demonstrate link between
resource, allocation and achievement of business objectives?
Distribution of resources in proper manner provides benefit to the hospitality based
company due to appropriate allocation, aims of the firm can be achieved on time and business
can run smoothly than it tends to increase sales and revenues which leads to business growth and
survival. For example in Marstan hotel resources are apportioned according to the requirement
so that it can easily operate their business.
TASK 2
P.2. Explain and evaluate different process of customer relationship management for small
business or social enterprise?
Customer relationship management: To retain employees in the company this method
is commonly adopted by managers in the hospitality organisation. It is necessary to develop as
well as maintain healthy relations with audience and also employees of the company it leads to
make positive impact on sales , profitability and image of the company. In Haytor hotel most
suitable process are followed by their manager to maintain good relations with audience . The
following process are followed for effective working such as
Analytical process: In this data of customer is analysed to serve various purposes such
as , preferences, taste, needs, demands etc. most commonly it is used to set appropriate format

for developing marketing campaign so large audience get aware of those items which are sold
by the company Haytor. Product pricing related decision making , their development as well as
target market are concerned to the respective process (Edberg, 2020)
Operational process: It is the process adopted by company with the intention to take
care their end-users . Various process related to marketing , sales, etc are connected to this
process. It directs executives of Haytor to emphasise on improvement on complain redressel so
that huge customer base are attracted. The main objectives of this process is to generate lead and
capture large share of market.
Collaborative process: In this direct interaction with audience is made that includes that
a regular interval of time collect feedbacks, reporting queries as well as their issues. With the
help of websites , e mails, voice mails interaction can be done . Managers of Haytor follow this
procedure to manage and control customer relationship because it help organisation to retain
already exist clients as well as attracts huge new customers also (ElSaid, 2019).
P.3. Explain how small business can develop traditionally and determine drawbacks and benefits
Traditional development of business indicates the process of performing operational
activity beyond the boundaries. Generally it is concerned to international trade in which products
and services are supply by business all over the world with the intension to enhance profitability.
Whenever it is decided by organisation to expand business across the overseas than it is
necessary to analyse internal and external environment of that countries so that smart policies
and strategies are frame by managers to overcome with the challenges that are faced by company
is a company who decided to start an Information Technology business as specialising in e
commerce industry. It is a partnership firm. Their services is developing e-commerce sites for
existing and new businesses .For this extra efforts is put Haytor hotel to grab opportunities which
provide development and success. By introduce business transnational , various benefits and
drawbacks are observe by the organisation such as -
Interdependence: For business development and expansion , owner and top management
plays an important role as they are responsible to take effective decision for business growth. In
Haytor hotel management team formulate decisions regarding expanding business transnational
which results to enhanced revenues (Fayos-Solà, 2019).
Foreign Trade: when self internationally company launch it than it leads to raise foreign
trade regarding that entity. As it results to increase funds to perform operational activities and it

also increased profitability. On the other hand if Haytor nationwide supply their services than it
tends to increase liquidity which supports to run business smoothly without interrupting activity
that perform to achieve goals.
Drawback
Long time period: IT is not easy to expand business globally as it takes lot of time to
establish. Haytor hotel wait for long term to expand their business in transnationally.
Risk of money shortage: At the time of launching product/ service transnationally than
shortage of finance is the most common risk that face by the company. The main reason behind
it is that small firms do not have appropriate fund all the time to operate business. Thus Haytor
hotel not have sufficient amount to do promotional activities to create awareness regarding their
business (Isaac, 2019).
M.3. Apply and evaluate the element of the customer relationship management process in
relation to achieving objectives of the business?
Few example of elements are describe as follows-
Gain customers trust: By offering good quality service/ product Haytor hotel creates good
brand image as it maintain trust of customers in their products (Majid, 2019)
Retaining Customer: Haytor hotel provide employment benefits in terms to salary,
perquisites and healthy working environment to retain their workforce for long term. It also
increase motivation as well as provide satisfaction to customers.
Understanding clients as well as market: If organisation wants to expand business than it
is important to analyse market condition and needs of audience so that according to that they
plan to new product/ service.
M.4. Evaluate the potential to develop transanational operation using the stage model of
internationalisation , assessing both benefits as well as challenges?
Stage model- It is called as process theory of internationalisation which involves
acquisition, integration as well as use of knowledge and skills for the purpose to take entry in
global market by launching their business. Haytor hotel used this model when they are interested
to introduce itself in foreign market. This model has certain benefits but it also possess some
challenges-
Benefits-

 It supports to launch product/ service in international market. It tends to enhance sales and revenues of the organisation.
Challenges-
 Lot of time is needed for business expansion in foreign countries (Kalra, 2020)
 Managers need heavy amount to do marketing and advertising in foreign countries as it is
difficult for company John and Jenny to bear high expenses.
D.2. Critically evaluate the customer relationship management process at all stage and provide
recommendation for over coming challenges of developing transnational operations.
To all business entities it is necessary at all stage to develop as well as manage
customer relationship. If appropriate and effective audience relationship is adopted than it leads
to increasing sales, revenues as well as higher rate of customers retention. When transnationally
company launch their product than many challenges and issues are face by Hayto Hotel. Long
time period and shortage of financial resources are the most common challenge that are faced by
every organisation (Laškarin Ažić, 2020).
Recommendation: To solve the problems smart managers of company frame strategies
and policies. They also prepare budget to analyse the actual requirement of funds that are needed
to run the business smoothly. As Without sufficient resources it is not possible for workforce of
Haytor hotel to achieve the targets on time effectively so appropriate arrangement of funds and
resources must be done by managers for business survival and growth (Mehrez, A., 2019)

Task 3
P.4. Produce an annual itemised monthly cash flow forecast showing fixed and
variable costs set against income for specific organisation?
P.5. Explain in detail how break even analysis could be applied to an organisational situation.
Break Even analysis: It express the situation in which company not to earn any profit and to
face any loss.
BEP = Fixed cost/ selling price per unit – variable cost per unit
Calculation of BEP=
Fixed cost= 12000
Selling price per unit= 10
Variable cost per unit= 4
BEP= 12000/10-4

BEP= 12000/6
= 3000.
The organisation needs to sell 3000 units to recover all its expenses.
As John and Jenny is currently run business successfully in UK by analysing break even
point
Application of BEP:
 actual point where the entity can gain higher profits is analyse with the of it.
 To set appropriate cost it is done by managers.
 Managers may get the idea by calculating BEP that how much unit is to be produced
where business stands in no profit no loss position.
Illustration 1: Break even point
Fixed costs remain same for the production and variable costs vary according to
production units (Falkner and Hiebl, 2015).
P.6. Interpret key financial statements for an organisation in relation to how they contribute to
successful management of the company?
Financial Statements: It is most important document for any business as the statement are
prepare by accountants and it is verified and finalised by chartered Accountant. These reports
shows that where the business stands is runs in profitable manner or not. These documents are
signed and sealed by the CA who are engaged in practice. The main reason to prepare such
statements is to analyse actual position of entity. These documents are in safe custody of top
management of the company. On the basis of these statements it is decided that whether it is
necessary for company to done audit or not. As it is responsibility of chief executive officers or

directors of the company to approve these document by signing on them. These are also prepare
for outsiders such as Banks, Financial Institutions, Debenture Trustee, merchant bankers,
underwriters, stakeholders etc. Because on the basis of these documents loan grant by financial
institutions and investment is done by shareholders. These are prepare once in every financial
year (Ngoasong, 2019)
Profit and Loss statement- It this all the revenues and income are recorded so that actual
loss or profit can be ascertain. John and Jerry prepare this statement on the basis of vouchers and
accounting transactions. In this all the transactions related to the financial year are consider. It
reflects true position of company and shows whether respective business is profitable or not. It is
prepare by using appropriate per forma (Přívara, 2020)
cash flow statement- It shows the actual position of cash. With the help of this it become
possible to analyse whether cash generated or deploy in operating activity, financing activity or
in investing activity. It is compulsory to prepare in manufacturing concern or for the company
which is listed on recognised stock exchange. The statement reflects that how much cash inflow
and outflow from different source of activity. In this statements cash in hand in the beginning
and cash in hand/ bank in the closing is shown.
Balance sheet- It cover the details of assets and liabilities as it is prepare at the end of
every financial year. Adjustments are made on the notes to accounts. The statement reflects
whether the organisation has sufficient assets to meet their liabilities. Financial Institutions and
Bank deeply analyse balance sheet before providing loan to organisation. This must be prepare
by company in the format which is set as per company law. Every year B/S and other financial
statement are open to public so that they can understand whether company earn good profit or in
stands in profitable position or not(Sanchez-Franco, 2019)(Boğan, 2019). On request of
creditors, shareholders all these statements are send to their house in envelop and if number of
shareholders are large in numbers than it shows in official websites of the company (Rather,
2019)