London South Bank: Hospitality Business Development Strategies

This presentation focuses on the expansion plan for London South Bank's hospitality business. It suggests three Strategic Business Units (SBUs) based on market opportunities and includes a financial forecast to assess project feasibility. The analysis covers the customer markets, highlighting existing hospitality businesses and potential markets like art gallery visitors and late-night attendees. The presentation recommends three separate hospitality SBUs: a taxi facility for convenient transportation, a spa and massage facility to enhance customer experience, and a guided tour service to assist visitors. The recommendations are designed to improve competitive advantages and customer satisfaction within the hospitality sector. The presentation concludes with a thank you, summarizing key insights and strategic directions for business development.

London South Bank - New
hospitality ideas

The presentation discussed about what expansion plan
should be adopted by London South Bank to grow its
business. Suggestion for three different Hospitality SBU’s
have been recommended in this presentation. Suggestions
are based on three market opportunities available with
London South Bank. To know feasibility of suggested
projects; financial analysis in the form of one forecast has
been done.
Introduction

Analysis of London South
Bank’s customer markets
The Southbank Center is probably the largest trade
association in the UK. It has an annual turnover of
over £ 40 million and 470 full and small
maintenance staff. It attracts over 30 million visits a
year to its London headquarters and sells over 1
million tickets to exhibitions, shows and events. Held
every Friday to Sunday in Southbank Center Square,
behind the Royal Festival Hall, this market is home
to more than 40 producers, remembering the
masters of meat, flavors, sweets and then some.

Existing Hospitality business
in London South Bank
Numerous Hotels have grab the opportunity to get customers
in London South Bank; some of the top hotel businesses
named Sea Containers London, Park Plaza Westminster
Bridge London, London Marriott Hotel County Hall and
Premier Inn London County Hall hotel have received above 4
ratings from their customers. These hotels have targeted
collective customer markets like arts, craft, homewares,
collectibles, exotic items, designer fashion and so on. The
customers are mainly foreigners and are from London
leaving far from London South Bank. The main reason behind
staying there is late night show and art exhibition. Hence,
customers are not limited to foreigners only.

Evaluation of potential
markets
The potential markets for hospitality sector in
London South Banks includes:
1. Outsiders who visit South Banks to see the art
gallery and exhibition.
2. People from London who stays far from South
Bank and not able to get back to their home late
night.
3. Participants and staff of art gallery and other
musical concert.

Forecast
1 2 3
Sales Revenue £500,000 £350,000 £400,000
Less: Cost of sales £200,000 £200,000 £200,000
Gross Profit £300,000 £150,000 £200,000
Add: Operating incomes
Receipt from hotel parking £75,000 £110,000 £15,000
Income from other sources £150,000 £150,000 £150,000
Receipt from food department £85,000 £25,000 £88,000
Less: Operating expenses
Salaries £75,000 £75,000 £75,000
Parking charges £30,000 £30,000 £30,000
Electiricity £35,000 £35,000 £35,000
Interest £36,000 £36,000 £36,000
other expenses £80,000 £65,000 £90,000
Net Profit £354,000 £194,000 £187,000
Potential markets (1 year)

Recommendation
In business, a special purpose unit (SBU) is a community of benefits
focused on the supply of items and market share. SBUs typically have a
covert presentation plan, conflict analysis and a transparency effort,
although they may be necessary for more commercial content.
An SBU could be a separate entity within a larger company, or it could
be a business in its own right or as a subsidiary. Companies can have
several SBUs, each of which is dependent on its own profitability.
General Electric is a matter of an organization with a similar business
association. SBUs can influence most of the factors that influence their
performance. Managed as separate organizations, they are capable of
parent company.
Company needs to analyses both internal and external factors of market
before stretching the business. This can be beneficial in improving the
possibilities of attaining success.

Three separate Hospitality
SBU’s1. Taxi facility: This facility will give advantage towards generating
income through providing taxi to pick and drop from destination. This
facility will also save customer’s time from booking and waiting for taxi.
As customers are consume hi services for daily basis that may improve
the possibilities of getting competitive benefits in market place.
2. Spa and massage facility: This service will give competitive
advantage to Hotel by giving additional facility to the customer within
hotel. This can be easily change the customers perception towards the
hotel and at the same time also improve their competitive brand image
at market.
3. Providing guide: Taking responsibility to show the city by trusted
guide would facilitate customer to get rid of all these three problem with
just only one click at the time of booking a hotel.

Thank You