Comprehensive Business Health Check Report: Hotel Crowne Plaza

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This report conducts a comprehensive business health check for Hotel Crowne Plaza, a leading multinational chain in the hospitality industry. It begins with an introduction to the business and its objectives, followed by an analysis of factors impacting the business, including PESTLE, SWOT, and Porter's Five Forces models. The report then evaluates the effectiveness of the business, proposes improvements, and addresses the current skill sets of management and staff. It also devises and justifies plans for skill development within the organization. The report covers both long-term and short-term objectives, mission, and vision of the company, along with an in-depth analysis of the external environment. The report also provides recommendations for improvements in business operations and employee skill development to ensure long-term sustainability and success in the competitive hospitality market. Finally, the report concludes with a summary of the key findings and recommendations for Hotel Crowne Plaza.
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Business Health Check
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Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Objectives of the business.....................................................................................................1
M1...............................................................................................................................................2
1.2 Factors the impact business...................................................................................................3
1.3 Potential improvements to business organisations or operations..........................................7
D1 ...............................................................................................................................................8
TASK 2............................................................................................................................................9
2.1 Review the effectiveness of business....................................................................................9
M2 ............................................................................................................................................10
2.2 Development of plan for improvement of business............................................................10
D2 .............................................................................................................................................11
TASK 3..........................................................................................................................................11
3.1 Current skill of management and staff................................................................................11
M3 ............................................................................................................................................13
3.2 Devise and justify plans for development of skills for management and staff...................13
D3..............................................................................................................................................15
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16
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INTRODUCTION
Business refers to actions of individuals or group of individuals for achieving same aims
and objectives. Main aim of business is to earn good amount of profits and achieve long term
sustainability in industry. There are different types of business in society which have different
aims and objectives such as to provide home appliance, electronic devices, etc. Hospitality sector
is the sector which works to t provide services such as accommodation, banquet hall, conference
hall, dining place, travel and tourism services , etc. With passing time, there is increment in
scope of hospitality industry because people prefers to avail different services for official
purpose, family outing, etc. Hence it is important to check working performance of association in
context of external market. In order to make business existing in context of long term, there is
requirement to analyse external market and then actions has to be taken (Arntz-Gray, J., 2016).
This report is based Hotel Crowne Plaza which is one of the leading brand in hospitality
industry. This organisation has multinational chain with full leisure hotel services. This
association has head quarter in UK founded in 1970. In this report, there is discussion about
objectives of business, factors which has impact on business, potential improvements in working
style of association, effectiveness of business, development of plans to improve business
operations. At last there is discussion about current skills of management and staff at association,
at last there is discussion about development plan for improving skills of employees and overall
management.
TASK 1
1.1 Objectives of the business
Business objective define the companies goal which are to be achieved in definite time
period. It is a measurable step used by organization to execute the plans. Objectives and goals
differ from one another such as goals are regarded as future statement and objectives define
minimisation of expenses, reducing workforce, making profits for the company. The companies
strategic objectives are provide within a layout that shows that how much profit a company is
going to earn in a certain time period. The objectives are designed by the management of the
company for growth purposes so that the firm can develop strategies. Hotel Crownee Plaza is a
multinational chain of services it was founded in 1970. headquartered in Denham, United
Kingdom It serves worldwide at 410 different locations in 52 countries with 112,317 rooms. The
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parent brand of this hotel is Inter Continental hotel group who purchased the holiday inn family,
and Crownee Plaza in 1990. the first resort of this hotel was opened in 1999 in Madeira,
Portugal.
Objectives of the company
Hotel Crownee plaza is a multinational chain which serves globally. Its main focus is to
full-fill customers demand with different range of product and services (Boedker, C. and et. al.
2017). The organization has planned strategies to achieve long term and short objectives.
Long term objectives
expanding 10% market in upcoming 1 year.
To provide development in hotel sector.
Promoting online bookings. Introducing online payment methods.
Short term objectives
Proper flow of information for customers through promotions.
Creating brand awareness among the customers to retain them for long period of time.
To appreciate the human assets by fair performance evaluation.
Mission and Vision of the company
Mission defines objectives of organization and focuses on the current task to achieve the
goal and objectives of the company. Hotel Crownee Plaza's mission is described as:
To deliver the best services in the current market to expand the market share of company.
Vision statement define the companies future positions as where the company want to
establish its growth possibility in the upcoming years.
To retain the customers for future by delivering them quality services.
To deliver proper knowledge and information for customers to enhance goodwill of the
company
To expand its operations worldwide for growth of the hotel industry.
M1
As per long term objective of Hotel Crownee Plaza there is objectives of expansion in
market up to 10% within 1 year. This objective is specific, measurable, attainable and time
bound, so this is SMART objective for Hotel Crownee Plaza which is more effective as
compared to normal objectives.
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1.2 Factors the impact business
Business is the organisation which runs in society for achieving their set objectives. In
order to understand specific changes wand making policies through which business growth is
possible. Hotel Crowne Plaza is the hospitality organisation has good rating because of their
lavish services and proper handling of consumer grievances. There are many factors which has
impact on business performance. This impact can be positive or negative as per external
environment of society. In hotel industry, there are many organisations which are working such
as Holiday Inn, Hotel Hilton, etc. So competition is more hence it is responsibility of mangers to
understand changes and implement it to business operations (Camp, C. J. and et. al., 2017).
In order to identify such factors there is requirement of specific techniques such as
PESTLE, SWOT, Porter's Five force model, etc. which is specific and relevant in context to
current market. It is essential to analyse internal strength and weakness of Hotel Crowne Plaza
through which planning can be made to overcome weakness and making strong policies to polish
strength.
PESTLE
PESTLE analysis refers to the frame work which is specific and relevant in order to study
external market trends and its influence on business operation of Hotel Crowne Plaza. PESTLE
analysis includes political, economical, social, technological legal, environmental factors of
industry. With change in these policies, there is impact of business operations of Hotel Crowne
Plaza. PESTLE analysis of Hotel Crowne Plaza is discussed as under-
Political factor- Political factors includes components which are related to government
and has influence on economy of country. This also includes tax policies, revenue generation,
trade tariff, etc. There are positive tax and tariff policies for growth and development of hotel
sector of UK because stability of government party is stable (Camp and et. al., 2019). There is
financial support to hotel organisations through which they can implement best technique and
give best services to consumers. So it is easy for Hotel Crownee Plaza to get financial assistance
from different sources which assist them in growth of Hotel organisations.
Economical factor- This includes factors which are related to inflation rate, change in
purchasing power, per capita income, interest rate, foreign exchange rate, Gross Domestic
product (GDP), etc. of country. In current market, it is evaluated that employment rate of UK
gets up 8% (approximately) because of hotel industry. GDP rate of UK improves because there
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are many tourists who visits Europe. Hence there is regular and appropriate foreign currency
management for hotel sector through which Hotel Crownee Plaza can operate effectively in
European countries (Campanotti, Jackson and Tognetti, 2016).
Social factor- Social factors refers to the culture, trend prevailing in industry. This is
specific and relevant in context of business growth and development because of change in
geographical region. People are ready to visit different places in UK due to which they are ready
to spend their household income. This gives tourist to know about the trend of UK. Hotel
Crowne Plaza provides best services to consumers related with leisure and corporate outlook of
UK, so people prefers to visit this place. Hence there is growth prospects for Hotel and they are
able to maintain long term sustainability in industry.
Technological factor- This includes innovation in technology and its impact on
operations of association. There is requirement of proper research related to technological
changes. Technological development are rapid in UK, so it is easy for Hotel Crowne Plaza to
implement it and perform business operations in better ad effective manner. For instance with
use of multimedia technology it is easy to get registration through online sources. With online
website, it is easy for managers of Hotel Crowne Plaza to communicate about new products and
services to consumers. This improves sales and revenues of hotel and they are able to gain good
brand image among competitors (Chang and et. al., 2016).
Legal factor- This includes legal laws and regulations related with hospitality sector.
This assist in performing operations of industry within specified time. There are specific and
relevant laws related with employees through which workforce get satisfied regarding working
efficiency. VAT rate at UK is around 20% for hotel facilities which is high and it affects growth
of Hotel Crowne Plaza negatively because of high tax burden on consumers. Hence there are
possibilities that there is issue in
Environmental factor- Environmental changes includes variation in climate,
environmental offset, agriculture, etc. and other components of environment such as global
change. UK is one of the best destination for people for holidays, corporate purpose, etc.
However, the working of Crowne Plaza Hotel does not impact upon the environment, but the
Hotel could join or start some environment enhancement programs which will help in creating
the brand awareness of the Hotel. Additionally, it will also help in creating a good brand image
of the hotel in the mindset of customers (Char-lee, Becken and Watt, 2016).
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PORTER'S FIVE FORCE MODEL
Porter's Five Force Model is the management technique through which competitiveness
in industry can be know. For Hotel Crowne Plaza it is important to know level and competition
in industry and make strategies to improve profitability of association. In this model, there are
five forces which provides complete information about industry structure. These five forces are
discussed as under-
Threat of New entrance- Hotel Crowne Plaza is five star hotel having chains all over the
world. There is requirement of capital for establishing such hotel which is tough to raise from
different sources. Hence threats of new entrance to Hotel Crowne Plaza is low.
Bargaining power of Suppliers- Bargaining power of supplier is low for Hotel Crowne
Plaza because there and many sources through which raw material such as eatables, décor items,
manpower can be collected for providing better services to consumers. Hence there is low
bargaining power to suppliers (Cookson and et. al., 2016).
Bargaining power of Customers- There are many three, four, five stars hotels in UK, so
consumer can avail services from them if cost of accommodation this lower there. Hence
consumers has high bargaining power. Consumer can compare with other hotel with comparing
their price and get attracted because if their promotional strategy.
Threat of substitute- There are many substitutes to Hotel Crownee Plaza are available in
market where consumer can avail services if they do not want to stay at five star hotel such as
low budget hotels, staying at relatives place, B&B (Bed and Breakfast) facility, etc. So there is
high threat of substitute.
Competitive rivalry- There is high risk of competitive rivalry, because there are many
organisations which are working in same sector with best quality services to consumers. So if
cost of services offered by competitors such as Holiday Inn, Marriott, etc. is low, then they
consumers will switch to other organisation (Devnath, PalChaudhuri and Roy, 2017).
SWOT ANLYSIS
SWOT analysis refers to the management strategy through which internal strengths and
weakness of association and external opportunities and threat can be known. So with evaluation
it is easy for managers of Hotel Crowne Plaza to make strategies for improving position and
overcoming with weaknesses. SWOT analysis of Hotel Crowne Plaza is as under-
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Strength
Brand image of Hotel Crowne Plaza is
one of the biggest strength because if
which people prefers to avail services
from them.
Have accessibility for disable people,
so consumers are ready to get services
from them.
Location of Hotel Crowne Plaza is at
Porsche places so classy and high class
people are consumers. This maintains
standard and good environment at
organisation.
Quality of services served by Hotel
Crowne Plaza is best because of there
courteous staff.
Weakness
There is lack of proper communication
technique through which they can not
communicate with staff members and
business operations gets affected.
Management of employees and
operations are not effective. Employees
are not aware about their roles and
responsibilities so business activities
gets diluted.
Opportunities
Managers of Hotel Crowne Plaza
should think about diversification of
business in retail sector, travel services,
etc. This boost their brand image and
get more satisfied services (Ismail and
Atkin, 2016)(Howard, 2017).
Technological advancement must to be
accepted by Hotel Crowne Plaza
through which they can communicate
with internal as well as external parties
of association.
Threat
Increase in competition is one of the
major threat in hotel industry because
of many related associations in
industry.
Economic condition of UK is not
stable, so there are possibilities that
affects cost structure of Hotel Crowne
Plaza.
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1.3 Potential improvements to business organisations or operations
There are many organisations working in hotel industry such as Holiday Inn, Marriott,
Leisure Inn, etc. because there is scope of development as trend among people for hotel industry
gets changed. But at the same time there is increment in level of competition so it is important to
consider changes which are taking place in external market. Hotel Crowne Plaza operates in
different parts of country, so it is essential to make strategies according to environment of
particular geographical region. In order to analyse ways through which Hotel Crowne Plaza can
get success in market, mangers can use Ansoff Matrix. This tool was introduced by H. Igor
through which best strategy for product development can be evaluated. There are four types of
strategies for product development such as market development, product development, market
penetration, and diversification (Iyer and Samociuk, 2016).
(Source: Ansoff's Matrix, 2018)
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Illustration 1: Ansoff's Matrix
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Market Penetration- As per this strategy existing product and services are targeted with
existing consumers for achieving aims of market share through promotion. If this strategy is
adopted by Hotel Crowne Plaza, then managers make strategies to communicate about their
existing product to existing consumers. Aim behind this strategy is to increase profits and sales
of organisation.
Market development- As per this strategy there is communication about existing services
to new target market. This is the way through which Hotel Crownee Plaza can expand their
business to new geographical region. If this strategy is implemented by Hotel Crownee Plaza,
then there is requirement of some USP which is not available with competitors in industry
(Matinheikki and et. al., 2017).
Product development- Under this technique, new product and services are communicated
to existing target consumers. If this strategy is accepted by managers of Hotel Crownee Plaza,
then managers plans for launching new which makes them different from others. There is
increment in market share but possibly there is risk that there services are not accepted by
society.
Diversification- This is the last strategy of Ansoff's Matrix which says there is innovation
in product and services and target market too. If this strategy is implemented by managers of
Hotel Crownee Plaza then there is new market i.e. targeted consumers are different and services
are also new. This strategies is also known as “Suicide Cell” but advantage is it assist in
attractive consumers and reduce risk of overall business portfolio actions (Mizik and et. al.,
2018).
From the above discussion, knowledge about different product development strategy is
learned. Out of these technique, market development is best strategy because this assist in
expanding business in different countries which similar services. For implementing this in better
and effective manner mangers has to provide best services to consumers with less cost as
compared to competitors. So there is some specific USP for which consumers are ready to avail
services from them.
D1
With the market development as element of Ansoff's Matrix, it is easy to get
improvements in working style of Hotel Crownee Plaza can develop their business and take
actions to expand business in different parts of country. There is requirement of taking actions to
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improve quality of product or services through which they can make good brand image in
industry.
TASK 2
2.1 Review the effectiveness of business
Effectiveness refers to the level of quality with which task or working effectiveness of
organisation is up to the mark. With the help if effectiveness, it is easy for organisations to work
by considering demand of consumers in mind. In order to achieve effectiveness in operations,
there is requirement of proper training and to employees, so they can perform actions in better
and effective manner.
At Hotel Crownee Plaza, there are different departments such as marketing, sales,
finance, HR, etc. which are working in order to improve quality of services offered to consumers
at Hotel Crownee Plaza. Some departments are discussed as under through which effectiveness
of quality of services can be improved-
Product and Services- Hotel Crownee Plaza is the organisations which deals in
restaurant, accommodation services, banquet, lounge, etc. So there is requirement of maintaining
proper quality of food, services has to be up to date regarding hygiene and cleanliness. This gives
good impression in mind of consumers and they prefers to avail services from them. There must
be training to workers regarding serving, decoration, room service, etc.
Marketing- Marketing refers to the process through which promotion of product and
services through research and development and advertising is possible (Nelson and Staggers,
2016). There are many organisations which are dealing in hotel sector such as Leisure Inn,
holiday Inn, Marriott, etc. so it is crucial to communicate with consumers in impressive manner
using different marketing tool such as social media, newspaper, etc. These days there is
requirement of new and different marketing channels such as social media, television
advertisement, paid promotions, etc. But market strategies must be planned after considering
target consumers. In vacations marketing manager of Hotel Crownee Plaza has to think about
different discount offers or vouchers, coupons, etc.
Sales- sales is the department which make strategy to get money in return of product and
services. It is important that sales department has to communicate with consumers in polite and
humble manner. As there is competition in hotel sector, so consumers negotiate in price of
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different services, so in this case it is responsibility of manager has to interact in polite and
pleasure manner. This gives positive impact to consumers and they are ready to avail services
from Hotel Crownee Plaza.
Staffing- Staffing refers to hiring of individuals as per their skills, competencies and
qualities in accordance to job role. Hotel Crownee Plaza has good brand image industry, so it is
important to communicate with consumers and deliver best services to consumers (Yang and et.
al., 2018). HR manager has to hire individuals who are competent to current market and they
have knowledge about latest trends and technological aspects. Employees have knowledge about
how to deal with consumers and solving their grievances, way of speaking, etc.
M2
With the help of above mentioned departments i.e. marketing, sales, staffing, etc. there is
improvement in growth and development of Hotel Crownee Plaza. When marketing activities are
as per targeted consumers, then there is improvement in sales. Staffing of employees helps to
give best services to consumers.
2.2 Development of plan for improvement of business
Development plan is a legal and formal way to make strategies through which they can
make pathway to deal improve skills and knowledge of individuals. With considering this plan,
there is systematic and reliable way through which working style of Hotel Crownee Plaza gets
imp[roved. With improvement, it is easy to maintain quality of product and services offered to
consumers and making policies to improvise working style (Ransbotham and et. al., 2017).
Development plan for improving business operations is as under-
Executive Summary- This is the overview of plan for which planning is done. In this
business plan actions are taken to improve productivity of employees and its positive impact on
sales. In executive summary there will be complete overview about what has been done.
Opportunities- In this step, her will be evaluation of opportunities which Hotel Crownee
Plaza will get through improving productivity of organisation. There will improvement in sales
and revenue of Hotel Crownee Plaza and consumer base will get improved. Employees feel
satisfied because they are able to improve their skills which makes them existing as per current
market. Employees are able to improve their performance and able to know their roles and
perform actions in better and effective manner.
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