Elm Tree Hotel: Business Performance, SWOT, and Improvement Strategies

This report provides a comprehensive analysis of The Elm Tree Hotel, a small business enterprise, examining its strengths, weaknesses, opportunities, and threats. It begins with an introduction to small businesses and the hotel's profile, including its services and infrastructure. The report then delves into a SWOT analysis, identifying key internal and external factors influencing the hotel's performance. Comparative measures of financial performance are presented, including profit and loss statements and balance sheets from 2016 and 2017. The analysis extends to actions taken to overcome identified weaknesses, such as problem-solving strategies, staff training, and research. The report also explores ways to maintain and strengthen existing performance, including maintaining performance records, market position, and relationships with suppliers and customers. Furthermore, it discusses potential areas for business expansion and integrates business plans for appropriate changes, including action plans. The report concludes by assessing the effects of proposed changes on the hotel and its personnel, along with strategies for managing these changes and improving performance over time.

SMALL BUSINESS
ENTERPRISE

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1...........................................................................................................................................1
1.1 Profile of Elm Tree small hotel identifying its strengths and weaknesses............................1
1.2 Comparative measures of performance of business..............................................................3
TASK 2 ...........................................................................................................................................4
2.1 Some actions taken by Elm Tree hotel to overcome the identified weaknesses.................4
2.2 Ways in which existing performance of Elm Tree hotel could be maintained and
strengthened................................................................................................................................5
2.3 Some new areas in which the business could be expanded.................................................6
TASK 3............................................................................................................................................7
3.1 Assessment of existing business objectives and plans..........................................................7
3.2 Business plans to integrated appropriate changes.................................................................8
3.3 An action plan to apply the changes.....................................................................................9
TASK 4..........................................................................................................................................10
4.1 Effect of the proposed changes on The Elm Tree hotel and its personnel..........................10
4.2 Changes will be managed...................................................................................................11
4.3 Improvements in the performance of The Elm Tree over a given timescale......................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
......................................................................................................................................................14

INTRODUCTION
The small businesses are those enterprises which are owned and managed independently
and the size and revenue of these type of organisations are small. Small number of employees are
working in small business firms. These are generally private organisations and also controlled or
managed in partnership, corporations and also sole proprietorship. The Elm Tree hotel is a small
hotel and it provides luxurious and comfortable rooms, lounge, guests houses etc. In this present
business report studied about the comparative analysis of financial performance of This company
(Bridge and O'Neill, 2012). This hotel takes some appropriate actions to overcome from its
weaknesses. In this business report also describes that this company can expand its business in to
new sectors. The Elm Tree hotel prepares a business plan and also some strategies for the
purpose of making changes in business or can say at work place. Under this report also mentions
about the improvements in the performance of business over some past years. Managers make
some policies for the purpose of managing change in company and also understand to staff
members about the benefits of change. There is a discussion about the effect of changes that will
have on personnel as well as business.
TASK 1
1.1 Profile of Elm Tree small hotel identifying its strengths and weaknesses
The Elm Tree is a small hotel and somewhere it falls among the breakfast, bed and
boutique. An infrastructure of this hotel is good and attractive. The cost of this hotel is
reasonable and it provides good customer service to its guests, clients, visitors etc. It is engaged
in many different activities like for an instance hiking and also cycling. In this hotel, few staff
members are working and sales or revenue of this hotel is small. It main motive is to provide
satisfactory services to its consumers such as clean room, food facilities, lounge, a big hall, better
customer care services. In this hotel, there are total 14 rooms and the designs of all rooms are
good. It gives free Wi-Fi connection to its clients and it also has the honest bars and garden with
an attractive view (Blackburn, Hart and Wainwright, 2013). This hotel is only for the couples.
The Elm Tree hotel is a traditionally constructed. It is necessary for this hotel is to identify its
strengths and also its weaknesses. There are some strengths, weaknesses, opportunities and
threats are given below as above:
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Strengths:
 This hotel provides good job opportunities to local people who have limited and
not much high education.
 The main disadvantage of this hotel is that it uses new technology and software in
its business.
 The infrastructure of this hotel is attractive and and every employees know very
well about their reporting manager (Malhotra and Temponi, 2010). .
Weaknesses
 The revenue of Elm Tree hotel is less.
 It is not for the family purpose and in this children, are not allowed.
 There is a high dependency on the visitors.
 The reputation and awareness of this hotel is not much high at market place.
 Training is less provided to staffs (SWOT Analysis, 2017).
 It does not conduct so much research on customers and market.
 The quality of management is not good.
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Illustration 1: SWOT Analysis
Source: (SWOT Analysis, 2017)

Opportunities
 It can expand its business in to new sectors and in to new areas.
 It can also allow family in hotel.
 It can also deal in tourism sector (Obeng and Blundel, 2015).
 Political stability
Threats
 Venture of big size hotels with new markets.
 Enhancing the competitive pressure.
 In the hotel industry, there are many strong competitors of this (Stokes, Wilson
and Wilson, 2010).
1.2 Comparative measures of performance of business
The Elm Tree is a small hotel and its major purpose is to providing the all type of
services such as food facilities, room cleaning, transportation etc. to its clients, guests (What is
an SME? 2017). This hotel does not conduct any activity which can harm the external
environment and local community. For the purpose of measuring its present performance with
the existing performance, the finance department of this hotel prepares a statement related to
profit and loss and also a balance sheet. These two are given below:
Profit and Loss Account
(30 April 2016 and 30 April 2017)
2016
£
2017
£
Sales 250 320
Cost of Sales 190 230
Gross Profit 60 90
Overheads 40 50
Net. Profit 20 40
Balance Sheet
(30 April 2016 and 30 April 2017)
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£ 2016 £ 2017
Fixed assets 80 60
Stock 65 85
Debtors 35 55
Bank 0 1
Total 100 140
Current liabilities
Creditors 8 14
Bank overdraft 0 4
Total 8 18
Current ratio = current asset / current liability
2016 2017
100000/8000= 12.5 times 140000/18000= 7.7 times
Interpretation- From the profit and loss statement is clear that the net profit in the year
2016 is £20 and also £40 in 2017. The total number of fixed assets in 2016 are 80 and in year
2017 is 60. The current ration of year 2017 are 12.5 time and 7.7 times. The balance sheet and
photocopy of and loss statement both are helpful in measuring the performance level company of
last year with the current in an effective and better way.
In Elm Tree hotel, there are some departments are works at small level and these are
human resource, finance, operating, marketing, customer care etc. They all are together work and
also try to satisfy the needs and preference of this company (Franco and Haase, 2010). The
marketing department designs its menu properly and to increment the customer care services and
skills of employees, the human resource manager provides them training so that they can give
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their best performance and also work for the goodwill of hotel. The finance manager manages
the money for company and arrange the funds for every activities of business.
TASK 2
2.1 Some actions taken by Elm Tree hotel to overcome the identified weaknesses
For the purpose of identification of its weaknesses, the manage of The Elm Tree hotel
conducts an internal research so that company can easily know its weaknesses and also can work
properly. After identify its weaknesses, the management of this hotel should make plan or can
say strategies to get over from all these and makes the operative and activities of business
effective. It will be helpful in enhancing the productivity, income level and goodwill of this
small size hotel. With the help of this the performance level of The Elm Tree hotel will be
enhanced. This hotel is not a big brand in the market (Williams and Martinez, 2014). So in
context to this, it has to promote hotel name and its services at large level. The management of
this hotel makes some strategies for overcome from its weaknesses:
Problem solving strategy- The main weaknesses of this hotel is that manager does not
listen the problems and issues of its employees carefully or can say properly. From this, the
performance level of employees is reduced and its impact is negative on the performance level of
hotel. So in regards to this, it is necessary for get over from it that manager should communicate
with its workers in a proper way, listen their issues carefully and also provide them the
satisfactory and good solution. Manager should also give the safe and healthy working
environment to them and also them. There is a requirement of employer is to provide guidelines
related to new machineries.
Provide training- The major weakness of this hotel is that there is a lack of training
provided to staff members and it impacts bad on employees’ performance level. From this they
are not work according to new changes and with the new techniques, machineries and also
technology. With the help of giving training, the skills, abilities and competencies of staff
members are increased and from this their level of motivation will also be maximised.
Uses of outsourcing in some specific areas and availability- It is necessary for this
hotel is to use a specific resource in the particular area (Fen Tsen and et. al., 2010). From this
there will not be unavailability of resources. The availability of resources should be on proper
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time and for this manager should select a good supplier who provided materials or necessary
resources on particular time period and also at reasonable cost.
Conduct research- From this, the hotel can know easily about the preferences and needs
of consumers and services of existing hotel at market place. On the basis of this manager of The
Elm Tree hotel will try to make good improvement in its services.
2.2 Ways in which existing performance of Elm Tree hotel could be maintained and strengthened
The main and primary purpose of this hotel is to serve better to its consumer which can
satisfy their needs and wants. Its main strength is its staff, they do their job in a proper manner
and also give the good customer services to its guests and consumers. In its process, The Elm
Tree hotel adopts new technology in its products and the office process. This business firm
provides better and clean room services, transportation facilities and it only provides its rooms to
couples. This hotel wants to expand its business in to new sectors and earn more profit. For the
purpose of enhancing the skills and competencies of staff members, employer provides training
to its staff members (Turban, Bolloju and Liang, 2011). It will helps in enhancing their morale
and also the motivation level. Some of the following points are involved regarding maintaining
its level of performance and also its strengths of current business:
Maintaining the performance record- For the purpose of maintaining the strength of
company it is necessary to keep the records regarding the past performance of this hotel. It is the
responsibility of manager is to maintain all the records related to its performance. It is necessary
to keep record of 2-3 years. From this manager can measure the last year performance with the
current year.
Maintaining the market position- If the position of The Elm Tree hotel at market place
will be good, then it will be beneficial for it and it will also helpful in enhancing the growth of
this hotel. It is necessary for it to conduct the promotional activities at larger scale. So, it will
help in aware many people about the hotel and its quality services.
Building the strength of hotel- For maintaining the good performance level, it is
necessary to increasing the skills and their performance level (Williams and Nadin, 2012). It is
important for this hotel is to increase its name at market place. It will helps in increasing the
sales and performance level of this hotel.
Maintaining harmonious relationship with suppliers and consumers- The good and
healthy relationship always impact positive on the business. To it is necessary for this company
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is to develop the health relationship with its customers by providing them good and quality
services to them. Hotel can attract the consumers or its guests by giving them satisfactory
customer service. It is important to maintain the better relationship with its suppliers so that they
will provide raw materials on specific time period. 2.3 Some new areas in which the business
could be expanded
From expand the business in to new areas the productivity of hotel will be increased and
also its profit level. From increasing the business in to new areas or sectors, The Elm Tree Hotel
can target new consumers or clients. It will help in enhancing the productivity and development
of this hotel. It is important that manager should identify the weaknesses and strengths of this
hotel and after this it should work on to overcome from weaknesses. The Elm Tree hotel can
expand its business process in niche markets. It refers to the subset of a market place where this
hotel can focus on providing the particular services.
For the purpose of expanding the business, the cited hotel can enable it for the family
people not only couples (Hotho and Champion, 2011). From this more number of people will
come in hotel and enjoy its services. It will help in increasing the goodwill and profit level of it.
In context to expansion of business, it is necessary for the management of this hotel is to start the
programme of research for knowing the position of market, demand and also preferences of
customers. Regarding it, hotel can collect the data and information with the help of primary as
well as secondary. Company can start its new brand and office in to another area, so from this it
will be easy to target more customers. But for this, it is necessary for The Elm Tree hotel is to
manage the funds for it in a proper manner. It is necessary for marketing department is to make
attractive promotions or also some promotional activities. From which customers will be
attracted.
TASK 3
3.1 Assessment of existing business objectives and plans
The Elm Tree is a small hotel and under this many few staff members are working. The
manager of this hotel always supports them. The main motive of this Elm Tree hotel is to attract
large number of customers towards its services. During providing the services, the employees of
this hotel always deal with its customers in a polite manner (Davies and Crane, 2010). It always
take care of its stakeholders and fulfil their demand. In regards to this, the top management of
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this Elm Tree hotel develops a plan and according to this its employees do the work. Plan helps
in doing the business activities in a proper as well as systematic way. To improving the operation
of hotel, the manager monitors all the activities and control them in a proper way. Employer
motivates its employees to work in a team from this they can achieve its goals and objectives in a
particular time period and also from this the relationship among employees will be harmonious
and strong.
Framework of The Elm Tree hotel's objectives
Vision for employees- The vision of this hotel is to give effective services to its
employees so from this their performance level will be enhanced. The employer of this hotel
always listens the employee’s problems and give them a satisfactory solution.
Vision for shareholders- It is necessary for company to increase its business in to new
areas for enhance its profit level and performance. The main objective of shareholders is to earn
more money so in context to this, they provide funds for making the business operation proper.
Vision for consumers- The vision of this hotel regarding its clients or guests is to
provide them quality services which can satisfy their demands.
Business plan
It is the duty of top management is to develop the effective and proper plan. The manager
has the responsibility is to execute the plan and policies in a proper manner. After this, it is
necessary for manager is to monitor all the business activities (Luckham, 2011). The manager
knows the competencies of very employees and according to that it gives the tasks. Along with
the business plan, manager also makes the motivational plans for employees. This plan is helpful
in increasing the strength of every employee.
3.2 Business plans to integrated appropriate changes
If at workplace, there is any need of any kind of change, it is required to make an
effective and systematic plan. It is necessary that changes will implement on the basis of
conditions of market and the its present position in market. The business plan is generally to
know about the business and also good for the future prospectus (Lautenschläger and Haase,
2011). To make the business effective, it is necessary to make time to time changes in the
existing plan and on the basis of market and organisational conditions. From changes in the plan,
at workplace new working environment will be created and employees work in a proper manner.
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To unified the changes, it is necessary for Elm Tree Hotel is to create a methodology for
the purpose of conducting the research programme. The manager should understand and identify
the various ways of collecting information and data. The management should those methodology
which can provide the good outcomes and results for business. In addition to the business plan,
some of the following points given below as above:
Structure of unified business plan- For the purpose of enhancing the efficiency of
business plan, all function of Elm Tree hotel like sales, customer care, marketing, human
resources and finance work in a team to accomplishing its common objectives. At the time of
making a plan, top management take suggestions and opinions from representatives of all
departments.
Use of business plan- By following the business plan, the management of The Elm Tree
hotel will do its business activities in a proper and systematic way.
Incorporate changes- For making any kind of change in the business plan, it is
necessary for manager is to discuss with its employees (Aremu and Adeyemi, 2011).
Budgeting- For implementing the plan and policies at workplace, hotel needs the money.
In addition to it, the finance department manage money and also segment it on the basis of
activities and operations of hotel.
3.3 An action plan to apply the changes
For the purpose of executing the change in an organisation, it is necessary for the top
management of The Elm Tree hotel is to creates a business plans. Its major motive is to
achieving the targets in a particular period of time. At the time of execution of business plan, the
management of this hotel follow the 7's of planning. The 7p's are structure, style, staff, system,
shared values, skills and strategy. There are some of the following points are included in the
action plan:
Implement changes and makes plan- For the purpose of execution of any changes, it is
required for manager is to formulate a plan and with the help of this, it can do its business
activities in a systemic way (Kinda and Loening, 2010).
System to manage- For implementing and managing any type of change in the working
environment, this hotel will do its business operations in an effective and efficient manner. It will
be good and beneficial for business and from the level of performance of The Elm Tree hotel
will be increased.
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Setting deadlines- After providing the tasks, manager should set a deadline. So, from this
employees will achieve its business objectives in specific time period.
Monitor and determine changes- After execution, it is the responsibility of employer is
to measure all the tasks and activities in a proper manner and also see the effectiveness of plan.
Measure performance- It is necessary for manager is to see and evaluate the
performance level of staff members. If their performance will be god, then it is beneficial for
business.
TASK 4
4.1 Effect of the proposed changes on The Elm Tree hotel and its personnel
Any type of change on the business activities and it process can develop the negative as
well as positive impact. Change can not only impact on the growth of hotel bust in also impact
on the environment under which business operates and conducted (Hamilton, 2011). During
implementation of change, manager should discuss with employees, who are the part of an
organisation. Otherwise, it can be created a bad impact on the development and productivity of
business. Manager has to enhance the morale of employees and convince them to deal with the
change properly. Some of the proposed changes are given:
Morale- In hotel, Human Resource manager hire the new candidates for the vacant
positions or on the same position of existing staff members. From this, there is always a fear in
present employees and they think that they will be replaced by new candidates. So, in this
context, employer motivate current employees and assure that they are valuable people of this
hotel and nobody can replace them.
Structure of company- It is necessary that the infrastructure of hotel should be
attractive, so from this the tourists will be attracted more and from this large number of people
will come (Cavusgil and et. al., 2014). It is necessary that the structure should be framed in the
systematic and proper way, employees should show about its reporting manager and also clear
with its roles and responsibilities at workplace.
Workload- The more load of works stress employees and also reducing their ability to
work. The level of work should be similar not too much, not low. From this, the work pressure
will be minimum and they will do their work in a proper time period. To increasing the working
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