Report on Entrepreneurial Strategies for Qbic Hotel's Development

This report provides an in-depth analysis of entrepreneurial strategies employed by Qbic Hotel, a small to medium enterprise (SME). It explores the application of Porter's Five Forces, Value Chain Model, and BCG Matrix to assess the hotel's strategic position and development objectives. A SWOT analysis is used to evaluate the hotel's internal strengths and weaknesses in relation to external opportunities and threats. The report identifies five organizational objectives, formulated using the SMART technique, which include increasing sales, improving service quality, reducing employee turnover, and enhancing customer satisfaction. The report also provides recommendations on which strategies would be most effective for achieving these objectives. The research further includes an overview of Qbic hotel's current standing and future prospects. This report is a valuable resource for students seeking to understand strategic management in the hospitality sector.

ENTREPRENEURIAL
STRATEGY

Executive summary
The present report is based on range of entrepreneurial strategies that small medium
enterprises use to develop Qbic hotel. This will further describe entrepreneurs make the various
strategies that can easily overwhelmed so that they stay focused on the goal of the company for this
apply various strategies that are like that of Porter 5 force, Value Chain Model, BCG Matrix. For
the situational analysis of company this report used SWOT which helps into tracking down strength
and weakness of Qbic hotel. Through this research, the reported has developed 5 organisational
objectives with the help of SMART Technique. These objectives include increasing sales by 5% in
the next 4 months, increasing sales by 5% in the next 4 months, increasing the quality of service by
30% in the next 2 month, decreasing the employee turnover by 50% in the next 6 months and
increasing customer satisfaction by 20% by next 3 month. For increased in sales by 5% BCG matrix
strategy will be useful, for increasing volume by 10% improvement in service of hotel is helpful.
For improving quality of service by 30% porter 5 force is supportive and for decreasing employee
turnover by 50% value chain model in HR department is significant.
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Table of Contents
1. INTRODUCTION............................................................................................................................4
2. MAIN BODY...................................................................................................................................4
B. Range of entrepreneurial strategies that small medium enterprises use to develop and
consolidate the situation...................................................................................................................4
C. Strategic situation of organisation, its capability and position to develop the set objectives.....7
D. Strategy that is consistent with the situation and the implementation approach of chosen
strategy.............................................................................................................................................9
3. Recommendations:..........................................................................................................................10
4. CONCLUSION...............................................................................................................................11
5. REFERENCES...............................................................................................................................12
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1. INTRODUCTION
Entrepreneurial strategy termed out as to establish and at the same res – establishes their
fundamental set of relationships within the environment. It is the strategy that is being characterized
by widespread at the same need the simultaneous change in the way of decisions that is being taken
by the company.
Qbic hotel is in Whitechapel, near in Heart of East London and the Gherkin. This hotel is the
new concept design hotel and comes in the greenest hotel in London as located closely to bustling
brick lane with the trendy bar and art galleries also it gives special attention to eco - friendly
initiative.
This report explains the three different entrepreneurial strategy that small medium enterprise
use that are Porter's Five Forces, Value chain model and BCG Matrix.
For the situational analysis of company this report will use SWOT which will help into
tracking down strength and weakness of Qbic hotel. Through this research, the reported has
developed 5 organisational objectives with the help of SMART Technique. These objectives include
increasing sales by 5% in the next 4 months, increasing sales by 5% in the next 4 months, increasing
the quality of service by 30% in the next 2 month, decreasing the employee turnover by 50% in the
next 6 months and increasing customer satisfaction by 20% by next 3 month. For increased in sales
by 5% BCG matrix strategy will be useful, for increasing volume by 10% improvement in service
of hotel is helpful. For improving quality of service by 30% porter 5 force is supportive and for
decreasing employee turnover by 50% value chain model in HR department is significant.
2. MAIN BODY
B. Range of entrepreneurial strategies that small medium enterprises use to develop and consolidate
the situation
Entrepreneurs make the various strategies that can easily overwhelmed so that they stay
focused on the goal of the company for these apply various strategies that are:
Porter's Five Forces
Due to the economic recession, the business is to travel all over the world suffered the bad
effect on the hotel industry (Kljucnikov and et.al, 2016). After suffering from this Qbic hotel
industry manage to gain back its footing in the economic map. It is easier to comprehend the
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particulars of this industry so it is important for the Qbic hotel to find out the solution that devised
to survive the recession.
Competition in industry
Rivalry in Qbic hotel is intense as the cost of the differentiation product and switching cost
is low. At the same business growth is also required greater than the rate the business is growing.
But where there is having the high capital cost, there is a pressure to sell the capacity by cutting the
price high (Marquez-Berber and et.al, 2015). There are many competitors of Qbic hotel within
London like that of Lucknam Park Hotel and Spa, Rocco Forte Hotels, Four Seasons, Ivy Bush
Royal and Mandarin Oriental. All of them are giving stiff competition to Qbic hotel in market with
giving high quality service to customers and increasing their satisfaction as well. This means that
competition in industry is high within hospitality market of UK. So company must also improving
their quality of work so that they could be able to develop their customer base into market.
Potential of new entrants in the industry
As this industry is globally characterised by the high cost capital that is total cost is being
required for the commercially operable status (Marquez-Berber and et.al, 2015). As the Qbic hotel
is having the advantage of local entrepreneurs in this sector so the brand image and customer loyalty
is being concerned (Köseoglu, Yazici and Okumus, 2018). The threats of new entrants to industry
which will give competition to Qbic hotel are low as it will require huge amount to get investment
into opening a new hotel.
Power of suppliers
Power of supplier in the hotel industry is relatively low as it is only subjected for the power
of labour, trained staff and for an industry that is having the huge demand of it. As Qbic is not
subjected for the bargaining power of suppliers and having the low as well as indirect pressure in
competitiveness. The leading league of the hotel is to be the cost advantage over it rivals. There are
number of suppliers of firm who are been working into market and supply the essential things to
Qbic hotel and to other hotels as well. So this means that that bargaining power of suppliers is
moderately high as there are number of suppliers and number of companies as well who buy
products from them.
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Power of Buyers
As the buyers is higher than the market players and is being subjected to high power of
buyers. In the case of Qbic hotel buyer exercise the power over the hotel industry that the
purchasing of hotel rooms in bulk is being required (Hernández-Perlines, 2016). When leisure
travellers and tourists is being taken into consideration than the hotel have to compete in the prices
As it is very common that there are number of customers who purchase products and avail the
service from companies which are also in huge number which means that bargaining power of
customers will always be high. This is due to fact that customers are having wide range of choice
from within the market from which they will chose one for availing their service or purchasing their
products.
Threat of Substitute Products
For the Qbic hotel threat for the substitute is generally low except at the time of recession
that this industry can thrive without threat. People are looking for the low price accommodation can
easily opt to live in hostels, motels or with relatives (Sibirskaya and et.al, 2015). Market is being the
price sensitive and targets the hotel audiences are for the cost conscious people. The threat of
substitute will be merely low for Qbic hotels however there are also many other low cost
accommodations which are available into market like paying guest house. So company must try to
identify them all and improve their service as compared to them for lowering down the threats.
Value Chain Model
Value chain model for the Qbic hotel is having the particular reference for the hotel room
division. As the research shows that value chain technique is useful for the service organisations.
Value chain model activity of Hotel Qbic:
Inbound logistic
It keeps the position high and maintains the good quality service for the customers. As the
hotel is having several suppliers in the city where the hotel is being situated, important areas that the
hotel has to pay attention is food, drinks, interior designing and the most important they need to
maintain the hygiene in the hotel (Marquez-Berber and et.al., 2015). The hotel is having the unique
technique in caring the goods like catering department uses the colour stickers that reminds about
the good lifetime and its deadline.
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Operations
In this stage the transformation of goods into the offering to the customers. To serve the
guest it is important for the Qbic that all the available rooms are being cleaned if the earlier
customer has done the checkout and monitored properly (Köseoglu, Yazici and Okumus, 2018).
Outbound Logistics
In this presentation of service is shows to customers as it can be for both tangible and
intangible products. For example the Qbic doing the advertisement of their room must met the
expectations of the customer what had been advertised.
Marketing and Sale
It describes the marketing communication and promotion strategies that must meet the needs
and expectations of the customers. It depends on the slogan that never feel away from home and
make them comfortable that they will stay at home (Kljucnikov and et.al, 2016) .
Service
This stage includes all kind of services that is after sales services, address the customer complaints
and handle immediately.
BCG Matrix
It is also known as the growth share matrix used by the Qbic to classify their business in to
four categories that is Dogs, Stars, Cash Cows and Question Mark. As the growth rate of the
industry and the market share of the hotel is being relative to its largest competitor present in
industry and being taken as basis of classification and it is also termed Growth Share Matrix.
Dogs
These are those products that are having the low growth with low market share and have
the few chances in showing of growth. This strategy is to be very well thought as there is having the
chances that the business might not yield the profit for the Qbic hotel. These business units and the
products are the cash traps and can never be seen as a useful source in their earnings (Hernández-
Perlines, 2016).
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Cash Cows
These are the low growth products having high market share, as the products that are the
market leaders in the Qbic hotel is not to be expected to see the major growth in the future. As these
are the products that are money churners at the same require less investment to sustain the
leadership.
Star
These are the high products that are having high growth having the high market share,
products and the business units of Qbic hotel holds the high market share and it is considered that
they grow in the future and positioned as stars (Herath and Karunaratne, 2015). Qbic Sessions is
regarded to as star of hotel as it is the most high growth and high market share product.
Question mark
Products that are having high growth market by containing the low market share. Products
and the business units that are still in the nascent stage in their product life cycle but they can
become a revenue generator as they take the position of the star and they may also turn as the loss
making machine for the future Qbic hotel (Ahmad and Saber, 2015).
C. Strategic situation of organisation, its capability and position to develop the set objectives
Organization strategic situation that is used to set the objectives:
SWOT Analysis
Strength- Qbic is the flexible hotel industry and has a brand image that handles the changes
relatively easy. This industry creates job opportunities for the people who are residing in the nearby
area (Marquez-Berber and et.al, 2015). Brand image is also another strength of company as
customers are very much attracted towards hotel due to its good image into market.
Weaknesses- Low Productivity having low profit margins and low added value. Having the high
dependency on the season for most part of the sector.
Opportunities- There is having the trend of higher trend to invest less in food for the employees and
put high taxes on this.
Threat- Lack in efficient skilled personnel that jeopardise the quality of sector. Terrorism as well as
political unrest
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PESTLE Analysis
Political Factor
It is the major factors that affect the Qbic hotel as they are the danger in terrorism,
international relations and political climate for the popular tourist destination (Herath and
Karunaratne, 2015). As this focus on the political environment of the country that includes laws,
government regulations, foreign investment policies for the Qbic hotels it is important to examine
the political factor. So company should be making flexible policies so that they could be able to
sustain in market for longer time with having changes into political environment of UK.
Economical Factor
This factor is also important as the growth of the Qbic hotel is depended on the economic
factor. As this represents the economic size both nationwide and worldwide as it involves the
various area that is growth rate of national economy, unemployment rates etc. due to the economic
reformation the nation encourage the small business to move forward (Köseoglu, Yazici and
Okumus, 2018). The economic policy of company should be very good and intended towards better
financial position of Qbic in UK.
Social Factor
Factors that influence the growth of the Qbic hotel is social as well as cultural factors, this
includes the area of the culture and the society that where the firm is located that includes the
education level, birth rate, belief etc. and this can be seen that these changes are having a
tremendous impact in the performance of the business as well as on the service. Manager of the
hotel need to monitor the consuming the behaviour of the customers so that they order to maintain
the customers in the market (Herath and Karunaratne, 2015). The taste and preference of customers
will keep on changing into market due to which Qbic hotel need to modify their policies so it is very
much important that they are doing proper market research.
Technological Factor
Technological factor is the important factor and plays an important role in the hotel industry,
it is important to update themselves in the online sites so the consumer can book a hotel anywhere
from the country and it also contributes to the quality and quantity of products as it enables the firm
to create more opportunity in the market and it will increase the efficiency and profits of the Qbic
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Hotel (Sibirskaya and et.al., 2015). Following and implementing latest technology into hotel is also
essential for them for which they need to be updated of trend within market.
Five organisational objective that is being taken into consideration by the company are:
1 Increase sales by 5% in the next 4 months
2 Increase the turnover by 10% in the next 3 months
3 Increase the quality of service by 10% in the next 2 month
4 Decrease the employee turnover by 50% in the next 6 months
5 Increase customer satisfaction by 20% by next 3 month
D. Strategy that is consistent with the situation and the implementation approach of chosen strategy.
Qbic hotel has set the goals so that they attain the specific objectives in the world of small
business so it is important for the business to apply the principles of SMART goal setting. SMART
technique stands for Specific, Measurable, Assignable, Realistic, Time-Based.
Increase sales by 5% in the next 4 months
Sales are important for all businesses as it ultimately lead to generate revenue. So it is
important for the Qbic hotel to increase sales in the next four months by focusing on the factors that
increase the sales at the same also measure the goal by keeping the targeted goal in the mind. At the
same there is a need to assign the task to particular head of department to monitor the activity by
watching the time. BCG Matrix strategies can be used to attain this goal (Hernández-Perlines,
2016).
Increase the Volume by 10% in the next 3 months
For the restaurant owner it is important that their 100% of the tables is too filled during the
service period. So it is important for Qbic hotel to fill all room occupancy as well as restaurant for
this the owner need to target the particular area so that they can attract more customers and guests
and need to measure it from the earlier rush and this need to be monitored by the responsible person
at the same need to consider that this is how much viable for the company to perform (Jogaratnam,
2017).
Increase the quality of service by 30% in the next 2 month
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Service quality plays an important role in the hotel and restaurant industry so the company
has set the objective that the quality of service is being improved in 2 months for this the company
has use the techniques in which the goal must remain specific about how they can improve the
service quality and keep watching the phase that improves it by considering the appropriate time.
Porter's Five Force strategy can be used by doing the research on market (Köseoglu, Yazici and
Okumus, 2018) .
Decrease the employee turnover by 50% in the next 6 months
To do the growth it is important to maintain the employee retention in the company for this
the human resource department needs to monitor the issues that are being faced by the company. As
in this HR department need to see the issues and try to bring the solution and the indication for the
process. Hotel also have to measure that the issues are the quantifiable or not and take the
reasonable time but it should not exceed six months. Value model chain strategy can be used their
(Marquez-Berber and et.al, 2015) .
Increase customer satisfaction by 20% by next 3 month
Customer satisfaction is the ultimate success for the hotel industry and the company needs to
focus on this aspect as the customers change their preference very fast (Seilov, 2015). Through the
help of SMART Technique hotel need to focus on the goal and pull the things and resources
towards it. Goal without having any outcome is like the sport competition without the scorecard at
the same it is also had to be considered that if building the billion dollar business overnight can
discard the plan as often. There is a need that the goals are to be based on the current conditions and
on the realities of the business climate and the goals need to be relevant by having the proper time
frame that should not be more than 3 months, otherwise it will be too late to retain customer
satisfaction. Value Chain Model can be used for the satisfaction of customers (Sibirskaya and et.al.,
2015).
3. Recommendations:
Qbic hotel should adopt these strategies and also focus on environment scanning in order to
understand the needs and the desire of the customers. It also helps in assessing the preferences of
the society and in analysing the external factors that influence the operation of the company. It
should make situational analysis where it could be able to assess the external and the internal
environmental factors for understanding the capabilities of Qbic hotel, its customers and its business
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environment. This in turn helps in implementing the strategies for the purpose of achieving the
oirganizational objectives effectively and efficiently.
4. CONCLUSION
From the above report it is being concluded that this report is about the organisation
strategic situation that is being done through doing a SWOT analysis as well PESTLE analysis of
the Qbic that elaborate the strength, weakness, opportunity and threats of the company at the same it
explains the factors that are Political, Economical, Social, Technological, Legal and Environmental
factors. This report also apply the SMART technique that is specific, Measurable, Assignable,
Realistic and Time-Based factors for each objective of the company and also mention the strategy
that helps the company to implement each objective (Yun and et.al., 2017).
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5. REFERENCES
Books and journal
Ahmad, S.Z. and Saber, H., 2015. Understanding marketing strategies with particular reference to
small-and medium-sized hotel businesses in the United Arab Emirates. Tourism and Hospitality
Research, 15(2), pp.115-129.
Herath, H.M.T.S. and Karunaratne, H.D., 2015. Issues and Challenges of Born Global
Entrepreneurs: Information & Communication Technology (ICT) Exporters in Sri Lanka.
Hernández-Perlines, F., 2016. Entrepreneurial orientation in hotel industry: Multi-group analysis of
quality certification. Journal of Business Research, 69(10), pp.4714-4724.
Jogaratnam, G., 2017. The effect of market orientation, entrepreneurial orientation and human
capital on positional advantage: Evidence from the restaurant industry. International Journal
of Hospitality Management, 60, pp.104-113.
Kljucnikov, Aand et.al., 2016. The entreprenurial perception of SME business environment quality
in the Czech Republic. Journal of Competitiveness, 8(1).
Köseoglu, M.A., Yazici, S. and Okumus, F., 2018. Barriers to the implementation of strategic
decisions: Evidence from hotels in a developing country. Journal of Hospitality Marketing &
Management, 27(5), pp.514-543.
Marquez-Berber, S.Rand et.al., 2015. Technical and entreprenurial training for horticultural
production in Mexico. Procedia-Social and Behavioral Sciences, 174, pp.2757-2761.
Seilov, G.A., 2015. Does the adoption of customer and competitor orientations make small
hospitality businesses more entrepreneurial? Evidence from Kazakhstan. International
Journal of Contemporary Hospitality Management, 27(1), pp.71-86.
Sibirskaya, Eand et.al., 2015. Strategy of systemic development of entrepreneurial infrastructure of
regional economy. European Research Studies, 18(3), p.239.
Yun, J.Jand et.al., 2017. Growth of a platform business model as an entrepreneurial ecosystem and
its effects on regional development. European Planning Studies, 25(5), pp.805-826.
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