HNHM346: Analysis of Managing a Small Hospitality Business Report

This report provides a comprehensive analysis of managing a small hospitality business, addressing key aspects such as resource planning and allocation within small and social enterprises, evaluating customer relationship management (CRM) strategies, and discussing the advantages and disadva...Read More

MANAGING A
SMALL
HOSPITALITY
BUSINESS

Table of Contents
INTRODUCTION ...............................................................................................................................4
TASK 1.................................................................................................................................................4
P1 Describe the consideration of small or social enterprise when planning and allocating
resources..........................................................................................................................................4
TASK 2 ................................................................................................................................................5
P2Evaluate (CRM) customer relationship management for social and small enterprise................5
P3 Discuss advantages and disadvantages of transnationally operating business in relevance with
social and small enterprise ..............................................................................................................6
TASK 3 ................................................................................................................................................7
P4 Implements a cash flow forecast showing fixed and variable cost against income for a specific
organisation......................................................................................................................................7
P5 Briefly examine break even analysis in relevance with organisation ........................................8
P6 Analyse the financial statements and their contribution towards successful management of the
organisation....................................................................................................................................10
TASK 4...............................................................................................................................................11
P7 Analyse the regulations and legislations implications on small business and social enterprises
........................................................................................................................................................11
CONCLUSION..................................................................................................................................14
REFERENCES...................................................................................................................................15
BOOKS & JOURNAL:.................................................................................................................15

INTRODUCTION
In business, planning is important and is required at every phase because it helps in
maintaining well organised structure in the firm. In hospitality industry, business activities,
functions, operations are operated in a systematic order and which clarify the mission of
organisation which is to be achieved. Adam and Company PLC, headquartered in UK is a small
bank and provide services within the region. The management of the enterprise perform their roles
and responsibilities in proper manner and which help in identifying the needs and requirement of
both customers as well as entity. This report includes planning of allocation of resources, customer
relationship management process and implications of regulation as well as legislation on social
enterprises. Also, techniques and methodologies has been used in some sections for clear
understanding and results.
TASK 1
P1 Describe the consideration of small or social enterprise when planning and allocating resources
Small and social enterprises need planning and resources for carrying out their business
activities smoothly and effectively. Allocation of resources is necessary so that they are used at
optimum level. In hospitality industry, equipment’s related to field are being considered important
Adam and Company PLC. This bank is small and performs its activities within the region and this
also lead to acquiring of resources within the region and at larger level. They use their premises as
well as equipment’s appropriately. Moreover, customer needs and requirements are their priority so
that all the resources which are required for fulfilling customer satisfaction are pre-planned and
reserved for future and present use. In small and social enterprises business plan is needed when
change is to be applied in the firm or due to rise in competition forces entities to prepare plan for
sustainability in the market.
When planning and allocating of resources is done small business mainly focuses on labour
and intermediaries. With help of distribution channels, functions and operations are carried out in
proper manner. Whereas social enterprise main consideration is acquiring market and efficient
manpower with skills as well as knowledge. Both small as swell as social entities perform
differently according to the market situation and trends. Adam and Company PLC, use their
equipment’s when they are actually required and this results to saving the resources for future use.
So, identifying the consideration is important as it helps in analysing the requirements that are
required in the firm for growth. Thus, planning assists the firm to use its premises and tools in

appropriate order. This is the reason due to which management theories and concepts are crucial for
entities.
(Ramanathan, 2016).
TASK 2
P2Evaluate (CRM) customer relationship management for social and small enterprise
Customer relationship management plays an important role for the success and growth of
business firm. Through CRM process, the company interact with its user in order to retain them for
a longer period of time. It helps in increasing the brand image and goodwill of the business
organisation. This is crucial process in business because customer switching behaviour is analysed
in properly which leads builds up a trust and strong network between both the party. So, both social
and small enterprise needs to adopt this method to acquire more customers and to generate profit as
well as sales revenue. Moreover, strategies and tactics are implemented in effective manner so that
customer stability remains for longer period of time. Thus, there is to be a proper market research of
the target market so that right products are sold to right customers and profit is generated in
appropriate manner. So, process is to be done with proper planning and measurement methods for
running the business smoothly and effectively.
In context of Adam and Company PLC, the manager focuses on maintaining a good relationship
with its customer for increasing their confidence and satisfaction level which is going to be
mentioned below:
 Acquire & Retain
It is important to make an optimum utilisation of resources in order to sustain them for a
longer period of time. In addition to this, the manager of the Adam and Company PLC focuses on
collecting the necessary information in order to identify the need and wants of consumer for
retaining them for longer time period. Therefore, the bank manager focuses on making good
relationship with its customer for increasing their trust and loyalty level at workplace. Along with
this, they protect the data and information of customer form the third party.
 Understand and differentiate
It is essential to assess the need and wants of customer in order to satisfy them. Every
consumer has different need regarding the goods and services and provide them for increasing their
satisfaction level at workplace. They offer the high quality products and services to its user in order
to gain competitive advantage over rival firm. In context of Adam and Company PLC, they offer
high quality services to its customer according to their need and wants in order to achieve
competitive benefit over rival firms. Understanding as well as differentiating are essential so that
perception of individual is known in appropriate manner.

 Develop and customize
In the competitive world, it is not possible for the small companies to take regular update, improve
as well as customize the products and services. In relation of Adam and Company PLC, they adopt
this method after conducting the effective research so that structure of the organisation has not been
affected. Therefore, the company offer superior quality products and services to its customer in
order to satisfy them. Also, change is done a when there is requirement and by using proper market
research. Develop and customize are important because they help in improving the and enhancing
the performance level of business and which results to higher growth and development. So, skills
and knowledge play vital role when change is to be adopted in the organisation. With help
customize, new opportunities can be explored appropriately. Products as well as services offered by
the bank are changeable according to market and trends as well as customers need and demand.
Thus, sustainability time period of the firm increases for longer period of time.
Interact & Deliver-
Customer interaction is one of the important stage that helps in increasing the productivity
as well as profitability level at workplace. It is important to interact with customer because it is on-
going process and cannot be neglected. Also, it helps in building the good relationship between the
company and its user. In addition to this, the company focuses on delivering the right kind of
products and services in order to satisfy them. It helps in increasing the brand image and goodwill
of the business organisation. In relation of Adam and Company PLC, the manager focuses on
interacting with its customer in order to retaining them for a longer period of time.
Therefore, Adam and Company PLC provide the innovative and unique products and
services to its customer in order to gain completive advantage over rival firm. It helps in retaining
the customer for a longer period of time. It increases the productivity as well as profitability level
within organisation. With help CRM process goals and objectives can be achieved in proper manner
and within a period of time. So, effectuve strategies and tactics are to be used to achieve the positive
results.
P3 Discuss advantages and disadvantages of transnationally operating business in relevance with
social and small enterprise
Transnational businesses are complex and require multitasking skills so that goals as well as
objectives are achieved in appropriate manner. Small and social enterprises adopt these to expand
the business and explore more opportunities at wider level.
ADVANTAGES-

 Adopting transnational operation helps both social and small enterprises to expand the
business at wider level and to make strong network and establish large distribution channel
in the market.
 This also assists in using resources in proper manner and providing numerous services
which results in increase in the goodwill of the firm (Bhat, 2016).
 New strategies and tactics are formed when entities use transnational operation in the
business which leads to sustainability in the market for longer period of time.
DISADVANTAGES-
 Rules and regulations over labour, business, production and distribution process etc. affect
the firm growth and development at broad as well as wider level.
 Small and social enterprises mostly are unable to find skilled labour and employees when
transnational business is run by the firm.
 This process of transnational operation is time consuming and distract the entities from
achieving the goals as well as objectives.
Expertise and researcher are required for this operation of business and which is not
affordable by small enterprises. Transnational operating business often find it difficult when they
look out for labour in different regions. So, when going with transnationally, preventive measures
are to be taken along to overcome with challenges and threats.
( Anshari, 2019).
TASK 3
P4 Implements a cash flow forecast showing fixed and variable cost against income for a specific
organisation
Cash flow is important when it comes to business because it involves mobility of cash from
one account/ business to another. In context to John and Jenny e commerce service, finance and
audit team of the firm make ensures that every transaction is recorded in appropriate manner.

Determining cash flow assist firm to maintain and manage cost incurred in the firm for its
activities, functions and operations. Also, these help entities to identify the position of the firm so
that borrowing and raising of funds are done properly (Kryvovyazyuk, 2019). Any omission of
accounts can be analysed easily with help of cash flow/ statement. John and Jenny e commerce
service maintains their accounts and data so that all the information within the corporations are
recorded and used for present as well as future use. In this cash flow statement, variable and fixed
costs are focused by entity. These costs are essential for business because combining both results to
total cost and which can be used in further process. Economies of scale and volume of goods are
affected by these types of costs at wider level. In hospitality industry, transactions are recorded on
daily basis on both online as well as offline mode. Thus, with help of cash flow financial condition
of the enterprise is known easily.
P5 Briefly examine break even analysis in relevance with organisation
In organisation, it is not necessary that position and profit/ sales revenue will be fixed
because of rise in competition and due to dynamic market. In context to John and Jenny e
commerce service, they remain well aware about changing trends in business as well as market.
Break even analysis is tool which is used by firm to identify the stage when to invest or not in the
products or services or when there will be chance of profitability. Accounting and auditing team of
the entity is responsible for handling all the finance decisions, planning and accounts. So, firm
maintain a high degree of confidentiality so that information or strategic planning is not misused by
third party.

Break-even is situation in which there is no profit and no loss. (He,2019). With help of
BEA, revenue, variable and fixed costs are understandable and which are used in accounting
concept or process. This assists in maintaining the information about the organisation and helps to
determine the profit& loss at different degree of business and its activities.
Elements of Break Even Analysis-
 Variable costs- These are costs are dynamic in nature; increase as well as decrease
scale depends upon raw materials, production process, packing cost etc. In context to
John and Jenny e commerce service value of output is managed and maintained so
that variable cost is analysed accurately (Pitkänen, 2016).
 Fixed Cost- These costs are fixed and are static in nature. Organisation use this cost
to determine the break even analysis situation and profit criteria of firm. In relation
with John and Jenny e commerce service, they use this cost to overcome with
competition and rivals in market. There are various type of fixed cost such as
insurance, depreciation, property taxes, rent, salaries, utilities etc.
Advantages-
 By using break even analysis, firm is able to prepare profit planning which can be
used in the organisation as competitive advantage.
 This method helps in determining the financial performance of business and also
improves the progress and enhances productivity of the entity at broader level.
 When this method is used, it helps entities to perform effective decision making
and which results in minimisation of conflicts and errors in the business activities.
 Also, this profit earning and capacity is identified in proper manner which assist
firm to decide whether improvement is needed in the organisation or not.

Disadvantages-
 It is often said that Break Even Analysis is a not profitable for the entire firm especially
for those entities in which fluctuating cost or price changes continuously.
 Time and manpower effort is involved at wider level.
 To implement the BEA, resources are required and some organisation does not use
resources at optimum level and this results to scarcity.
 This analysis does not provide all the information regarding the entity, limited
credentials about the financial condition of company is known.
 Moreover, it does not provide accurate data when different mixes of product on
profits are evaluated.
 This tool also has many irrelevant and unrealistic assumptions such as cost like
variable are not same as always. Due to these assumptions, wrong data and information
is gathered by the researcher or entity.
After a brief analysis of above matter, it is stated that Break even analysis is important so
that position of social as well as small enterprise are known effectively. This assist in formulation of
strategies and tactics in proper manner. Organisation use this tool so that all the funds are used
invested in the weaker section of the firm.
P6 Analyse the financial statements and their contribution towards successful management of the
organisation
In business, to run the all the functions and operations smoothly it is important to focus on
finance and audit department of organisation. There are three essential financial statements which
are being focused by small and social enterprises such as income statement, balance-sheet and cash
flow statement. John and Jenny e commerce service use these financial statements so that
creditability of the firm is analysed in the market (Frischmann, 2019).
Financial statements are important because they assist entities to make effective decisions
and give guidance to corporates to invest in areas in which return on investment (ROI) is high.
 Balance sheet- This is statement which provide information about assets and
liabilities of the firm, expenditure and income of the organisation. With help of this
statement investors and shareholders can look into company’s accounts and determine
the rate of return value. In relation with John and Jenny e commerce service they use
this balance sheet carefully so that all the accounts within the firm are monitored

properly.
 Income Statement- Further come the income statement in which focuses is on
entities expenses and revenue. This depicts the financial performance of the enterprise
for a period of time. This report is then submitted to SEC (security exchange
commissions). Income statement mainly includes four terms which are gains, losses,
revenue and expenses. These are used in the business so that degree of financial
performance is known and enhanced for future perspective (Mazzarol, 2020).
 Cash Flow Statement- Further come the cash flow statement in which all the data
related to cash inflows are shown which are received from external sources and
operations. This statement contribute to management of the business at wider level
and make ensure that all the transactions within the firm are recorded in appropriate
manner.
TASK 4
P7 Analyse the regulations and legislations implications on small business and social enterprises
In business, it is important to keep knowledge about legislation and laws which affect the
growth and development of organisation at wider level. In context to John and Jenny e commerce
service legal team of firm make ensures that all the rules, regulations as well as legislations are
being followed by company in proper manner. Regulations and laws which affect the business are
mentioned below-
 Employment and labor law- These are the legislations which are governed by
government in which rules and policies related to pay and leaves, wages, salary, bonus are
specified. In relation Adam and Company PLC, they have goodwill in the market and
leaders as well as managers of the firm maintain a relationship between personnel and labor.
In context to Adam and Company PLC bank, they treat their employees as equal and involve
them in decision making process which results in stability of business for longer period of
time. They affect the business at wider level and took time when to solve disputes when
problems related to employee and labour occurs. Managers and leaders of the bank are
highly specialised and handle all the obstacles and hurdles whenever such issues arises.
(Nguyen, 2020).
 Antitrust laws- Competition in market is increasing at rapid level. In antitrust laws, it
includes conspiracy towards rivals as well as competitors, allocation of resources, acquiring
customer etc. This laws depicts that limit and line is to be maintained when adopting these

strategies and tactics.
 Consumer Protection Act- This act states that all the consumers and customers are treated
fairly. Small business and social enterprises must consider this act as priority so that a
relationship is developed between firm and consumers. With help of this act, firm is able to
maintain trust and strong between end users and organisation. So, those who are producing
food and beverages products should work with ethics and provide health and hygienic
products to the customers. (Kelly, 2019).
 Contract law- Further come the contract law in which agreement, contract, breach, and
remedies are govern by the government. According to this law, an agreement is carried out
by two or more than two people and all the rules as well as regulations are maintained and
managed mutually so that conflicts does not arises in future. It is responsibility of the legal
team of the entity to have proper knowledge and manages relationship amongst the party
who are in the process of contract.
Importance of laws and legislations:
 Legislations are important for business they assist in safety and security of the
society as well as business environment.
 By applying these laws, discipline is maintained amongst the members of the
organisation.
 Also, disputes in the firm or outside the firm are settled and unity as well as
equality is raised at wider level.
 With help of laws and legislations, degree of competition is also controlled and
a limit is put between rivals and competitors so that manipulation is not done in
the market by anyone.
Difference between regulations and legislations
Regulations- These refer to process through which need and requirement of business are
analysed and directs the firm how to acquire them. There are various sources of regulations such as
self-regulation and government regulation.
Self-Regulation- These are those in which business owner or person has the knowledge and
power to know at what level the requirements are needed and laws related to it are followed but
how to use those regulations is in the hand of owner. With help of these regulations, dependency on
the government is reduced and entities can perform their roles and responsibilities in appropriate
manner.

Government Regulation- Further come the government regulation, which states that ways of
requirements includes laws which are governed by government and are to be followed by firm so
that objectives is achieved in appropriate manner. In context to Adam and Company PLC Bank,
they follow (GR) which so that bank perform its functions and operation activities in proper
manner.
Legislations- These refer to law enforced by government at both national and international
level. Legislation is important for organisation because they help in protecting the right of the
people and discipline and balance is created in the society as well as environment. Moreover,
responsibilities and authorities are evaluated in theses which helps individual to know the
importance of their duties which is to n=be fulfilled in proper manner under government
consideration. In this, involvement of government is high and has deep impact on surroundings.
Strict actions are taken against those who do not follow rules and regulations specified in this tool.
After a brief analysis of above matter it is seen that without these regulations and
legislations firm cannot operate their activities in proper manner. By following these laws, goodwill
of entities increases in market and which results in availability of resources at wider level. So, legal
time is hired by the corporates so that organisation performs their roles and responsibilities under
government consideration. Proper market research and high level of expertise knowledge is
required in so that all, the rules as well as regulations are understood by every member in the entity
in proper manner. To have a proper balance between the society and government it necessary to
adopt these two factors appropriately.

CONCLUSION
After a brief analysis of above report it is concluded that it is important to manage small
hospitality business. In business, planning is essential to achieve the goals and objectives in
appropriate manner. Social and small enterprise need to develop plan so that allocation of resources
is done properly. Customer relationship management process is used by firm to examine the
customer’s switching behaviour. Cash flow forecast is prepared in the enterprises to know the
financial position and further break even analysis help in providing the knowledge area to invest or
not. Regulations and legislations are crucial because they decide the limit of business and policies
which has to be adopted and followed effectively. Thus, managing business is time consuming and
complex procedure.

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