Cavendish Hotel: Small Business Enterprise Analysis and Business Plan

This report provides a comprehensive analysis of the Cavendish Hotel, a small business enterprise located in Central London. It begins by profiling the hotel, identifying its strengths, such as its location and range of services, and weaknesses, including competition and limited market share. The analysis delves into the hotel's financial performance and compares it to competitors like the Red Carnation Hotel. Solutions are proposed to overcome identified weaknesses, including problem-solving strategies, professional advice, and outsourcing. The report also explores ways to strengthen existing performance, such as maintaining performance records, building on strengths, maintaining market share, and fostering customer relationships. Furthermore, the report identifies new areas for business expansion, including establishing new locations and integrating with travel agents. The report assesses the hotel's existing business objectives and plans, and concludes with a business plan incorporating appropriate changes, an action plan for implementation, and an assessment of the impact of these changes. The report aims to monitor improvements in the hotel's performance over time, offering insights for sustainable growth and success in the competitive hospitality industry.

Small Business
Enterprise
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TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
Profile of a selected small business identifying its strength and weakness (AC 1.1) (245)........3
Analysis of business (AC1.2)......................................................................................................4
Solution to overcome the weaknesses in the business (AC 2.1)..................................................4
Ways in which existing performance could be strengthened (AC 2.2).......................................5
New areas under which business could expand (AC 2.3)............................................................6
Assessment of existing business objectives and plans (AC 3.1).................................................7
Business plan to incorporate appropriate changes (AC 3.2)........................................................8
Action plan to implement changes (AC 3.3)...............................................................................8
Impact of proposed changes on the business and its personnel (AC 4.1)....................................9
Ways to manage changes (AC 4.2)............................................................................................10
Monitor improvement in performance of the business (AC 4.3)...............................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
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INTRODUCTION
Small business enterprise is termed as an independently owned firm that is being
operated with the small numbers of workers (Bridge and O'Neill, 2012). Generally the small
sized organization does not bring forth high sum of money or gross sales. The SE's are
accountable for interpreting the innovative employment and the enabling the flushed competition
within the industry. The Cavendish Hotel is among the renowned single deluxe 4-star hotel in the
Central London. It also provide lodging, accommodation and other services so that they should
provide special and leisure experience to their guests and customers.
Presently, the report discusses the execution of small business enterprise by
distinguishing their strengths and weaknesses in the different significant areas. However, the
report also proposes the activity that will assist in get the better of their weakness of the
businesses. While, the report also devise a business plan and then revision that plan so that
management of the SE can easily incorporate the changes within the business enterprise. The
report will also measures different ways through which the organization can successfully
implement the changes within their premises. Lastly, the report will also also supervise the
different improvement in the performance of the business within the specific time period.
TASK
Profile of a selected small business identifying its strength and weakness (AC 1.1) (245)
The Cavendish Hotel is among the 4-star leisure hotel located in Central London. It
provide vast range of services to their customers for instance; housing, accommodation,
banqueting & conferencing and other services (Luiz, 2000). As all these services support the
organization in rendering leisure experience to the customers as well as their guests who prefer
that hotel. The main objectives of the business is to sustain its position in the hospitality industry
and provide distinct services for their customers and guests so that it enhances their experiences
level. Another objective of Cavendish hotel is to increase their revenue by adopting online
practices however, it will also enable the convenience for their customers (Hampel-Milagorsa,
2014).
The profile of small business also include their strength and weakness that directly and
indirectly affect the performance of Cavendish hotel. One of the strength of Cavendish hotel is
that enterprise is among major 4-star hotel situated in Central London that centres upon catering
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variety of services to their guests and customers by providing superior quality food, beverages
and accommodation services. Other identified strength of Cavendish hotel is that hotel property
is consists of 230 room with 6 suites and 1 restaurant that forcedly attract large customers to
prefer their hotel (Ayyagari, Beck and Demirgüç-Kunt, 2005). On the other hand, there are also
some weaknesses of the Cavendish hotel that is identified such as heavy competition within the
hospitality industry as large competitors shave been entered into the market that outcome in
loosing their customers. However, another weakness is that hotel existence is only in the Central
London that result the hotel in gaining limited market share. According to the given scenario,
other weaknesses of enterprise are they have shortage of funds that act as the weakness for firm
(Williams and Schaefer, 2013).
Analysis of business (AC1.2)
For the success of small enterprises it is essential to measure different factors that support
the organization in improving their performance. Hilton hotel is consider as one of the major
competitor of Cavendish hotel thus, manager must analyze the business using comparative
measures so that they can succeed in the hospitality industry (Paesai, 2015). With the help of
comparative analysis company can also focus on delivering amended service with focusing on
comparing different services and facilities provided by the rivalries in the same sector.
Therefore, it is vital for the enterprise to focus on different components like finance, marketing,
sales, production, operations and human resources information.
Through analysing the financial performance of both the companies manager will get
adequate and reliable information regarding the ratios, profit ratio as well as their financial
position in the hospitality industry. However, with the help of analysing internal financial
information they also get information regarding the sources through which they can acquire and
gain finance for operating their businesses (Llewellyn, 2011). The financial performance of
Cavendish hotel is lower than the Red Carnation hotel. As Red Carnation hotel features
luxurious room that attracts the visitors to visits their places. However, comparatively the Red
Carnation hotel has high profit margin as compared to the Cavendish hotel. In addition to this,
Cavendish hotel is consider as 4 star deluxe hotel with 230 rooms and 6 suites while, the Red
carnation hotel have 30 deluxe room that is lower than the Cavendish hotel.
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Solution to overcome the weaknesses in the business (AC 2.1)
From the above identified strength and weaknesses of the small business enterprise,
consultancy must focuses on providing different solutions to overcome their identified
weaknesses (Lin, Ansell and Andreeva, 2012). As, it will support the business in minimizing the
weakness and result in providing quality services their customers. Different solution to overcome
their weaknesses include:
 Problem solving strategies- According to the scenario, being small sized Cavendish hotel
have flat structure and CEO deals with the business itself that result in increasing burden
on the CEO. Therefore, this act as the major weakness of the enterprise.
 Availability of professional advice- As per the given scenario, small enterprise that is
Cavendish hotel does not have experts within their premises that act as major weakness
because experts or professionals supports the organization in providing proper advice for
the organization (Herstad, Sandven and Solberg, 2013). Therefore, to overcome this
weakness they must focus on sourcing the professional advice from consultancy will help
in providing proper solution of the problem.
 Use of outsourcing function- To reduce burden on the CEO and shortage of funds within
the organization they must focus on using outsourcing for specific functions like payroll,
debt collection etc as it will support the organization in gaining proper outsourcing
services at minimum costs.
Ways in which existing performance could be strengthened (AC 2.2)
For maintaining or strengthening the current performance of Cavendish hotel there are
different ways that assist the enterprise in enhancing their image. The different ways are: Maintaining appropriate performance records- One of the effective ways in which
Cavendish hotel could strengthen and maintain their existing performance is through
maintaining proper performance record of the enterprise (Ackermann and Audretsch,
2013). With the help of maintaining adequate record of the organizational performance
Cavendish hotel can easily target their future activities by considering the past
performance record. In addition to this,maintaining appropriate records within the
hospitality is also essential in knowing their workforce strength so they can render quality
services.
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 Building on business strength- Another effective way to maintain and strengthen the
existing performance include building their strength that is they must focusing on
improving their services as well as condition of their rooms so that it would result in
enhancing their performance (Ciampi and Gordini, 2013). However, the main strength of
Cavendish is their rooms and suites so manager must focus on amending their ambiance
so it can provide leisure experience to their guests and customers. Maintaining market share- It is considered as an effective way through which Cavendish
hotel can maintained and strengthen their existing performance. Organization can
maintained its market share by providing other facilities and services to their customers
that attract them to prefer their services (Cole, 2011).
 Maintaining effective relationship between the customers: Another manner through
which Cavendish hotel can keep and modify their existing performance is through
maintaining impressive relation with their guests, advisers and provider by whom they
acquire the raw material for their hotel premises and food production systems (Bernaert,
Poels and De Backer, 2014). Therefore, Cavendish hotel can maintain their relationship
through conducting or taking regular feedback from their customers and guests.
However, gaining positive feedback from the customers will result in amending their
facilities and services that will also strengthen the enterprise activities.
New areas under which business could expand (AC 2.3)
From the above ways of maintaining and strengthening the existing business, consultant
also identifies different new areas and field under which they could spend their business
activities so that they can easily captures and enhances their market area (Juntunen and et.al.,
2010). Several opportunities as well as new areas under which Cavendish hotel could expand
their business include-
 Setting up new business in different geographical location: Cavendish manager must
direct the enterprise in expanding their activities by setting up new hotel in different
location so that large customers can get attracted towards it (Ayyagari, Beck and
Demirgüç-Kunt, 2005). Moreover, setting up new business in some other geographical
location will also support the hotel in serving their services to different cultural
customers. In the contemporary scenario, the recommended area that is setting up new
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business is quite effective for the organization as customers or visitors are preferring to
visits new hotels. Therefore, initiating hotel in new geographic location would result in
enhancing the market area of business as well as it will also outcome in raising their
profit level (Wagener, Gorgievski and Rijsdijk, 2010).
 Relationship or integrating with travel agents: Another new field under which Cavendish
hotel could spread out their services and activities is through integrating or merging their
services with the travel agents. Integrating services with the traveling agents will assist
the hotel in marking and providing the services to the various customers. Through
integrating or agreed with the travel agents they will emphasis their customers for staying
in the Cavendish hotel. Therefore, having relationship with the travel and tourism agents
it result in enhancing or raising the image of hotel among the vast region (Mshenga and
et.al., 2010).
Assessment of existing business objectives and plans (AC 3.1)
With the change in the market scenario as well as change in the external environment, the
company also modifies their objectives as well as plans that would help in resisting the change in
the effective manner. As, Cavendish Hotel renders superior services as well as accommodation
facilities to different guests who prefer their hotel services. Presently, the hotel is operating their
business activities in Central London and fulfill the requirement of guests and customers those
are residing close to the area (Bridge and O'Neill, 2012). The key objective of Cavendish hotel is
to furnish leisure and luxurious experience to their guests by presenting services like food,
accommodation, banqueting or conferencing services. Through assessing the current
performance of Cavendish the existing business objectives are:
1. To present leisure experiences to their guests those are staying in their hotel and enjoying
their services.
2. Other objective of the Cavendish hotel is to become the leading established hotel within
the Central London.
3. The objective of Cavendish hotel is to present the top-grade housing and food services to
global customers for attaining large market share (Luiz, 2000).
In the contemporary scenario, with the increasing technological advancement, raising
income level of the customers, increasing overall growth of the economy, increasing demand of
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their customers etc. will lead to modify the objective of Cavendish hotel. All these changes will
also impact in changing the business plan so that they might attain overall objective of the
enterprise.
Business plan to incorporate appropriate changes (AC 3.2)
After assessing the business objectives with the help of measuring current performance,
manager have identified certain changes in the external environment that need to be incorporate
within the organization. However, they must focuses on devising business plan that would assist
in incorporating the changes within the Cavendish hotel (Hampel-Milagorsa, 2014). The
business plan include following steps:
1. Structure of integrated business plan- The first step focuses on structuring or constituting
the integrated business plans that include assessing the finance, sales, level of production
and level of output as well as personnel rendering services within the organization.
Measuring all these will support the Cavendish hotel in proposing the changes (Ayyagari,
Beck and Demirgüç-Kunt, 2005).
2. Evaluation of plan against business objectives- Another step include measuring the plan
against the determined business objectives. So, they can easily measure the deviation and
also determine that structured plan is effective in achieving the organizational objective
or not (Williams and Schaefer, 2013).
3. Incorporating changes in the plan- While, evaluating plan against the business objective
manager must identify the issues and problems within the plan so that they can easily
incorporate change according to their requirement.
4. Budgeting for changes- Another step include budgeting for changes for implementing or
incorporating changes within the plan. Budget help the organization to successfully
implement the change without occurring any loss (Paesai, 2015).
Action plan to implement changes (AC 3.3)
For successfully implementing the change within the organization they must focus on
preparing an action plan that consists of different steps so that Cavendish hotel can successfully
implement the change. For example, with the increasing technology Cavendish hotel will prefer
to implement technological changes within organization. The action plan possess different steps
for instance;
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 Systems to manage change- The foremost step of action plan include implementing
different systems within the Cavendish hotel so that they can successfully manage the
change (Lin, Ansell and Andreeva, 2012). For instance, Cavendish manager must focus
on implementing MIS systems within the organization so that all the departments
working under the hotel get connected with each other. in the action plan include
implementing the adequate systems to manage the change. However, they can also
implement the processed or computerized system for managing their records in the
effective manner.
 Monitor and evaluate changes- Another step emphasis on monitoring and measuring the
change that is department are adopting computerized systems for their activities or not
(Herstad, Sandven and Solberg, 2013).
 Performance measures- After that manager of hotel must measure organizational
performance by determining or analyzing the business activities. However, they can also
measures the performance of hotel by enabling more and more technology within the
premises to make the work easy.
Impact of proposed changes on the business and its personnel (AC 4.1)
The planned modification within he Cavendish hotel has impacted the overall business as
well as it has also impacted on the personnel or the workforce those are catering services within
the hospitality organization (Ackermann and Audretsch, 2013). Therefore, the overall impact of
projected modification on the business results in-
 Leading change in all the areas of the business: Cavendish hotel by emphasising on
incorporating technological changes within the hotel will lead to change in all the areas of
business leading change will support the organization to emphasis on systematic records
as they will use computerized systems to store past and current financial data (Ciampi
and Gordini, 2013).
For instance, implementing technological changes also impact the personnel those who
are working in the organization. As, with the increasing technology they might use technical
equipment for cleaning their room. However, with the increasing technology Cavendish hotel
will also prefer to focus on booking their services and rooms online as per the convenience of
their customers.
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Ways to manage changes (AC 4.2)
In the competitive marketplace it is essential for an organization to successfully
implement the change to survive in the market (Cole, 2011). There are different ways through
which Cavendish hotel manager can easily manage and incorporate the changes i.e.
 Proper monitoring- With the help of proper monitoring manager of hotel can easily
manage the changes within the premises. Proper monitoring in the the regular time period
will assist the organization to overcome the loop holes and issues in managing the
successful change. However, it can be stated that monitoring is an effective way to
manage change because manager have constant observation on the activities those are
involved in the implementing changes (Bernaert, Poels and De Backer, 2014).
 Revision of plans- Another way to manage the changes include revision of the action plan
in the certain time period so that manager can successfully mange the change. Reviewing
the action plan in the correct time period assist in determining the deviation and mistake
those are happening within the business so that manager can manage them to accomplish
the potential result (Juntunen and et.al., 2010).
 Effective organizational climate- One of the effective way to manage the change in the
organization include focusing on the effective organizational cultural so that employees
and staff rendering services in the hotel can successfully implement and manage the
change. However, with the proper organizational climate it will also avoid issues and
misunderstanding (Wagener, Gorgievski and Rijsdijk, 2010).
Monitor improvement in performance of the business (AC 4.3)
The Cavendish hotel manager should monitor the advancement in the organizational
performance through different ways that is: Increase in the market share: The improvement or betterment in the Cavendish
performance must be measured and analyzed by observing the whole share of their
targeted market (Wagener, Gorgievski and Rijsdijk, 2010). As, Cavendish hotel is mainly
situated in the central London thus, with the setting up new business in the other location
will result in increasing their market share with attracting customers. Furthermore,
addition in market share represent that Cavendish manager has successfully organized or
merged the projected changes within the enterprise (Mshenga and et.al., 2010).
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 Customers satisfaction: Another manner through which Cavendish manager would
monitor the change of state in the organizational performance is through measuring the
satisfaction level of customers. Customers are the cardinal stakeholder for whom
enterprise renders their services, therefore it is essential for the hotel manager to
incorporate the changes according to the requirement and needs of the customers. Thus,
the level of customers satisfaction will also result in increasing the profit margins of the
small business enterprises (Bridge and O'Neill, 2012).
CONCLUSION
Conclusively, it can be stated that small business enterprise must focus on adopting and
integrating changes according to the external environment in which they operates their
operations. Thus, it will outcome in attaining success within the competitive scenario. The report
has also concluded revision of business plan so that manager can successfully incorporate the
changes within the organization without any prior error. While, the report also devise a business
plan and then revision that plan so that management of the SE can easily incorporate the changes
within the business enterprise. Moreover, the report has also undertake the impact of change and
managing the change within the organization. Lastly, the report has also suggested different
ways through which organization can easily manage the change that is with effective
organizational climate, proper monitoring, revision of the action plans etc. all these ways have
impressively manage the change and minimizes their effect on the organization.
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