Business Analysis Report: Claridge's Hotel Performance and Strategies

This report provides a detailed analysis of Claridge's Hotel, a luxury establishment, examining its objectives, internal and external factors, and potential areas for improvement. The analysis includes a SWOT analysis, PESTLE analysis, and Porter's Five Forces to assess the hotel's strengths, weaknesses, opportunities, and threats. The report also discusses the hotel's objectives, including price increases and staff training, and evaluates its effectiveness through operational planning and marketing strategies. Furthermore, it explores potential improvements using Ansoff's Matrix to analyze market development, product development, and diversification strategies. The report concludes with an assessment of Claridge's Hotel's performance, emphasizing its revenue generation and global selling strategies. The report highlights the hotel's competitive environment and the importance of adapting to changing customer demands and market dynamics.

Business Health Check

Table of Contents
INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................1
AC 1.1 Analysing the objectives of the business........................................................................1
AC1.2, M1 & D1 Factors that impact the business.....................................................................2
AC1.3 Potential improvements to the business organisation and/or operation..........................4
LO2..................................................................................................................................................5
AC2.1 Effectiveness of the business...........................................................................................5
AC2.2 Plans to improve business................................................................................................7
LO3..................................................................................................................................................7
AC3.1 Current skills of management and staff...........................................................................7
AC 3.2 plans for development of skills for management and staff............................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
The business is very important part of organization to understand the need or
requirement of customer and make sure that they plan a new strategy to met all the need of
client. Th organization is always analysis the whole business process and performance of
employee in different areas. For, Development, it is required for each and every organization to
expanding their business in all over the world. This report is mainly determines the essential
stages that are needed for development. Claridges hotel is leading brand that has promoting
their services and facilities effectively and efficiently.
They are mainly focused to provide the best services and high quality of work to their
customer. This report will cover all the important factors that would affect the business process
and their operations. It will improve their business strategies and planning to make an effective
business environment. This planning and strategies is very helpful for expanding the business in
other countries as well as city.
LO1
AC 1.1 Analysing the objectives of the business
Claridge's Hotel is very popular in London and it is established in 1812. This hotel is
mainly famous for richness, royalty, nobility and world leaders. The name of hotel is based on
the symbol of style and their effective personal quality. They provide the world class services to
their customer. This hotel is totally for upper class person provide the luxury services. The
structure of hotel is beautiful and well design in proper ways. The interior area is very beautiful
design and furnished, maintained. There are maximum 8000 location which established their
business in all over the world. They have an effective staff to understand the requirement of
people and giving the best services to their client. At that time, there are many competitors in
market to expanding their business in all around the world (Shah and Sapkota, 2017). This hotel
is try to marinating their facilities and services.
The main objective of this hotel to solve the problem of customer and issues because in
most of the cases, some clients are not satisfied with their facilities. This is main advantages of
each and every organization. Some times, it causes the positive impact on the customers. Time
to time, the hotel can change their style and services because most of the customers wants a new
and trendy facilities. They demand very high class services so that it is very helpful for business
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to provide an effective service. This organization is fix some criteria and targets for business
process to meet all the criteria in effectively.
There are some effective objectives that would be fix by Claridge's are:
 It raises the price of services by 20% at the end of year.
 They provide an effective training and development services to their employee so that it
will enhance their business capabilities and performance.
In this way, if the criteria is match so that it will increase the profitability and productivity in
marketplace. This is the important part of organization generating high revenue in marketplace.
AC1.2, M1 & D1 Factors that impact the business
There are various type of tools that is very helpful for analysis the whole business
internal and external factor of organization. They use SWOT analysis to identifying their
strength and weakness of Claridges.
Strength Weaknesses
 It is top most organization in the world.
They expand their business in all over
the world.
 They have strong financial position in
marketplace because of high demands.
 They provide an effective quality of
services to their regular customer and
then new client are also connected
because of their high quality of
facilities.
 Some times, the financial conditions is
not good due to less customer
interaction, high interest rate, price of
services is very high so that middle
level peoples can not be affords this
luxury services.
 They facing many issues related
infrastructure and design.
Opportunities
 They are trying to expand their
business in all over the working.
 They use different marketing strategies
and planning to promoting their
services in marketplace in very
effectively.
Threats
 The main important threat of
organization is level of competition. It
increases in day by day.
 In marketplace, there are many small
organization establish their business in
all over the world in which it will
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 They are try to innovate a new idea that
would be implemented for
development. This is the best
approaches to generating an effective
market positions.
increase their branches in other
countries.
 They rate of substitutions is very high
for the customer.
On the basis of PESTLE and Porter's Five Forces analysis the external and internal factor of
organization. This is the best way to identifying their specific role and responsibilities towards
the business planning and activities.
PESTLE Analysis:
Political Factor- This factor is affect the organization that has relationship with the
other countries, political climate change, terrorism in the environment etc. these are main
factors that would be affect the political environment (Boulanger and Ghods, 2015). In most of
the cases, the terrorism attack that can be affect the people who has adopted a negative
perception towards the country. In this way, it will reduce the rate of travellers and reduce the
earning of company. This is the main disadvantages of organization that would be affect the
whole system.
Economic Factor- At the time of recession, the organization face many problems
regarding the customer issues, services, facilities etc. Clargdes hotel always changed the rate of
services according to the demand of customer therefore, they can use the facilities and delivered
an effective service to their clients. Economic Factor is directly impact of business
environment.
Social Factor- This is important factor in which clargdes understanding the need or
requirement of customer that provide the better services. This is essential because it changes
their services and provide many benefits to their client. It can be maintain the relationship with
the regular customers (Vos, 2015).
Technology factor- Clarigdes is use differnet technology for increasing their value in
marketplace. With the help of technology, it can be achieve their goals and targets easily. It is
very helpful for business to complete their task in very fast and easily. It is favourable part to
achieve their goals.
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Legal Factor- Each and Every countries has follows some effective laws, rules and
regulation that would be generate by government. It is important part of organization to
increases their productivity and profitability in marketplace.
Environment Factor- This factor is affect the price of equipments and fuel. It will
increase the price of airlines. This is directly impact on the passengers who has suffers many
problem related rate, price etc. this is negative impact on the business process and operations.
Porter's Five Forces:
Threats of New Entrants- There are various type of new organization has establishes
their business in all areas so that the competition level is increases and they have reduced their
productivity and profitability in market (Joodi, 2015).
Buyer Power- Buyer has reduced their rate of product in market so that there are many
numbers of people attracted towards the brand. It can be increases the high brand value that
would be beneficial for organization.
Supplier power- the supplier provide the best quality of product in which it develops a
proper relationship with other organization and peoples.
Threat of Substitutes- the substitute rate is very high so that the customer is finding the
other options and hotels because they can be fulfil the requirement of people.
Degree of Rivalry- this threat is uses as a logical and financial to maintain the
requirement of customer and identifying the budget of organizations.
AC1.3 Potential improvements to the business organisation and/or operation
Claridges Hotel is leading organization that has many hotels in different countries in all
over the world. This organization is increases their services and facilities to continuously
improve their market position and share (Boulanger and Ghods, 2015). They are developing an
effective product and services so that the customer is attracted towards. They are mainly
focused to expanding their business chain in differnet regions therefore, there are so many
territories attack has been done.
Each and every organization has essential part to mainatin their market position and
bran image. Claridges has provided many opportunities to their customer and employee to
improve the performance in proper manner (Tienand Chung, 2018).
For development and growth, the organization is use different tools that implemented in
the business process such as Ansoff's Matrix model. This model is helpful for identifying the
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differnet area or location which develop the business process and improve their growth in the
business. This Ansoff's Matrix is applicable in business process to managing the development
process, arranging the different procedure (Villa-Real, 2014). This model is directed towards
the future policy and demand.
The Ansoff's Matrix is important part of organization that are useful for Claridges hotel which
discuss in given below:
 Claridges hotel is focus on to sponsored a new game like Football as Barcelona, this
provide helps for organization to improve their marketing process and build a trust on
the customer.
 This hotel is also gives services to middle class people to improve the profitability and
services in marketplace. This hotel is use different online campaign, provide discount,
offers to achieve their goals and targets.
Market Development and growth-
 This hotel is increases their business in different regions to that covered all the areas. It
also increases their sales, productivity and profitability in marketplace.
Product development and growth-
 This hotel is increases their services so that more customers are attracted towards
because time to time, they provide many facilities such as transportation, room services,
private helicopters etc.
 They provide many schemes and discount to increasing their demand in marketplace
which is very helpful for organization to developed their style, marketing strategy etc.
Diversification-
 The most important role of organization to exchanging their product and services in
different areas. It is developing a new idea such as provide a new dish, variety of items
etc.
 It established a new place or areas such as cruise so that many customers are attracted
towards.
LO2
AC2.1 Effectiveness of the business
In 2017, Claridges earned lot of money because more than 20 million peoples are stay
on this hotel and more than 40 million rooms are booked per night. There are many functions
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and operations performed by the hotel to increases their value in market. It also increases more
revenue generated. There are some important functions performed by organization discussed in
given below:
 Global selling- the selling aim is very clear of claridges because they are mainly
focused on to developing their business need and it can be maintain the relationship
with the customer. They focused on customer demand and identify what they want.
They always provide the best services to customer which is the main objective. Time to
Time, it always finding the high value and attractive things so that the customer are
interacted towards the organization (Corsi and Lockshin, 2016).
 Operation planning- Claridges will assist to other to provide the best resources in hotel
such as an effective food services, retail and spa facilities, room services, engineering
and event managing etc. The management of hotel is creating a new idea and
innovation that implementing on the different services so that it increases the number of
customer. It assists to brand value to maintain the standard of business operations and
process.
 Marketing- this organization is always tried to find out the new techniques for selling
and promoting in market. They are always tried to putting some efforts to increases
their product (Harshbarger and et.al., 2017). The marketing functions are essential part
of organization ans with the help of this function increases their brand value in
marketplace. There are various functions includes such as management of revenue,
marketing support, e-commerce etc. these functions are developed an effective brand
image in front of the customer, generated high demand. Optimize revenue etc.
 Training- Training is important part conducting a new training session to developed
their skills and knowledge. Claridges hotel is recruit those people who has capabilities
and skills to manage their customer and fulfill the need of client. The staff of Claridges
is efficient to handle any situation in effective ways (Vandesande and et.al., 2018).
Time to time, they are giving many opportunities to their employee related salary,
facilities and others.
 Multicultural workforce- The Clarideges has developed multicultural in which they are
only 26% management belongs in minorities while 47% are covered by women. They
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are planning a new strategy for growth and development. They invest $2 billion in
women and suppliers.
AC2.2 Plans to improve business
To improve the performance and operations of organization to performed variety of
functions like finance and marketing etc. Claridges hotel is mainly focused on to adopting a
new strategy for increasing their productivity in marketplace. They are use differentiation
strategy which is helpful for organization to increases their productivity in marketplace. This
hotel is operates its business activities and process in all over the world (Trivedy and Philpott,
2017). It is a leading brand in United Kingdom. This hotel is mainly focused on to developing a
variety of competitors in market because there are various small organization is established
their business branches in different areas. The advantages of organization to provide an
effective cost, services etc. This hotel was follows some strategy to increases the brand value in
marketplace. The hospitality industry is play important role to developing innovation in
product.
This approach is very beneficial for company to earning a lot of money for growth and
development. With the help of efficient approaches, it can be creating better in market while
fulfil the requirement of clients. It uses different marketing scheme or technique to promoting
their product in market with the help of tools and techniques, it can be easily exploring their
product in global world. This technology is useful for creating a strong image in-front of client.
It covers all areas and locations to promoting their services and product in market so that it
enhance the productivity and increases the demand.
LO3
AC3.1 Current skills of management and staff
There are different type of skills and capabilities required for organization to performing
a function that would be achieving their goals and objectives. There are different skills are
discussed in given below:
 Communication skill- This is very important skill to communicate with other people
and easily understand the need of customer. This is very best medium to easily interact
with client. This skill is helpful for every organization to start their business in proper
ways. Claridges is uses different techniques to improve their communication because it
is essential for identifying the requirement of employee (Rühli and Schneider, 2017).
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 Operational skill- This skill has need many types of properties required to control the
whole management system. There are different attributes performed in operations such
as time management skills, Taking right decision etc. they have efficient staff to
maintain the operations of business.
 Technical skill- Claridges is uses different tools and technology for increasing their
profitability and productivity in marketplace (Dalton and Kelly, 2017). For
development, technical knowledge and abilities also require to increasing their business
in all over the world. This hotel is uses high technology for maintaining the performance
of business operations. Claridges always hire those candidates, who has sufficient
knowledge of technology and highly skilled person.
AC 3.2 plans for development of skills for management and staff
The new employee has required for training to improve their skills and knowledges for
development of hotel. This training is important for people to increasing the abilities and
performing various task for development (Schulte and Forreste, 2017). In order to established
their business that can be implemented new ideas and design for growth.
Skills Action Resources Dead line
Work experience
It Provides an
effective training
program and
Internship sessions.
Money
time experience
02/07/18
Sales and
marketing
Available on internet,
Daily reading 20
minutes.
Internet
study materials
e-books
02/07/18
Negotiation skills
Daily reading in 40
minutes every day
e-books
study materials
Internet
02/07/18
Communication Watching movies,
attain seminar,
sessions.
Online watching
internet
02/07/18
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1. Time management- this is important part of hotels to managing the time to provide the
services on time. Each and every organization has fixed some goals and targets
completed within time intervals.
2. Listening aptitudes- it always open the mind to archiving their goals and targets because
the manager of hotel is directly interacted to client to understand the requirement of
business. This is the best way to planning a new strategy for growth and development.
CONCLUSION
This report will identify that Claridges is a leading organization that operates all
business operations in proper ways. There are variety of factors affect the business operations
and reducing the performance of employee. This hotel is determines the improvement of
business planning and increases the skill of staff and management. It also developing a new
business strategies and planning.
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