Report: Wembley International Hotel Business Analysis and Plan

This report provides a comprehensive analysis of the Wembley International Hotel, a small business in the hospitality sector. It begins with an introduction to the hotel, its mission, goals, and organizational structure, followed by an examination of its internal constraints and current performance compared to the previous year. The report then recommends strategies to overcome weaknesses, maintain and strengthen current performance, and expand the business. A detailed business plan is presented, including market analysis, competition, sales, and marketing strategies. The report also addresses potential impacts of changes on the organization and outlines a plan for managing these changes, along with methods for monitoring and improving performance. The analysis covers financial ratios, liquidity, and solvency, offering insights into the hotel's financial health and strategic direction. The report concludes with a summary of findings and recommendations for the hotel's future success, emphasizing the importance of adapting to market dynamics and leveraging opportunities for growth.

Small Business Enterprise

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1 ...........................................................................................................................................1
A) Profile of hospitality business ..........................................................................................1
B) Current performance of business in relation to previous year ..........................................3
TASK 2............................................................................................................................................4
A) Recommend with justification to overcome weakness ....................................................4
B) Ways to maintain and strengthen current performance ....................................................5
C) Appropriate actions to expand Business of Wembley international hotel........................5
TASK 3............................................................................................................................................6
A. Business plan of Wembley international hotel.................................................................6
B. Revising plan to incorporate changes and business objectives of the organisation and
preparing an action plans to implement changes in Hotel......................................................8
Action plans to implement change........................................................................................8
TASK 4............................................................................................................................................9
A. Report on the potential impacts, the changes may have on the organisation both internally
and externally on Wembley international hotel.....................................................................9
B. A plan outlining how the changes will be managed in Wembley international hotel.......9
C. Methods to monitor and improve the performance after the changes are implemented..10
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Small business in hospitality sector are run by individual who are mainly motivated by
causes that refers as lifestyle need cause than desires for development and profits maximization.
The small enterprises play valuable role in economy specific in these current economic climate,
because of these businesses looks as performance for decreasing very high level of employment.
This study is based on Wembley international hotel. It is the centrally situated London Wembley
hotel and superior choice for guests selecting hotel near Wembley Stadium. This report will
produce profile of selected hospitality business by identifying type, size, structure, mission and
goals. It will identify internal constraints and restrictions on business. It will analysis current
performance of business in relation to previous years that involves revenue, operational data like
occupancy percentage, REV PAR and key financial ratios. It will produce business plan to detail
assessment of current objectives for organization. Furthermore, report will recommend
appropriate actions to overcome weakness of firm.
TASK 1
A) Profile of hospitality business
a) Identifying type, structure, size, mission and goals of business
Types and Size:
Wembley international hotel is 3 star plus hotels which is centrally situated integrates 165
spacious designed rooms, Empire Restaurant, meeting rooms, conferences and event services
provide for up 250 guests and clients (Dias and et.al., 2018). Hotel offers free parking for cars
on first come basis. Company has proud reputation of offering excellent personal services events.
It is privately limited company. The priority of the hotel is to create visit relaxed and enjoyable
experiences. This makes one of the best Wembley hotel to select when visiting Landon
Wembley.
Mission:
The mission of Wembley international hotel is to grow business at national level and
improving position of hotel sector and hospitality industry.
Goals and Objectives:
1

The objectives and goal of Wembley international hotel is to providing the high standards
and comfortable product and services to guests for increasing sales and growth of business in
hospitality industry.
Structure:
Wembley international hotel follow divisional organization structure which involves two
divisions such as food and Beverage as well as front house. In order to that, food & beverage
manager handle subdivisions head chef and restaurant manager. Front house manager handle
head receptionist and housekeeper. Ultimately all divisions and subdivisions are connected with
general manager of hotel.
b) Identifying internal constraints and restriction of business
Wembley international hotel has many weaknesses, internal constraints and restriction
that effects on operation and objectives of business.
Resources: Small scale hotel has limited resource that is weakness of business. With it,
hotel is not able to provide high quality services and product to guest. Resources involves
financial, human resources, technological resources etc. If hotel has limited human resources, so
that they unable to give appropriate services to customers (Bell, Bryman and Harley, 2018). If
Wembley international hotel has restricted financial resources, so that hotel is not able to provide
high quality services to clients.
2

Expertise: If Wembley international hotel has restricted expertise such as unskilled
workers, poor knowledge about hotel services and products which is internal constraints of
business. Without expertise, it effects on growth and development of business in hospitality
sector.
Technological: Wembley international hotel face weakness by adopt limited
technological resources in their business, because of, it takes high costs which is difficult to hotel
in relation to give appropriate product and services to customer.
B) Current performance of business in relation to previous year
Businesses has suffered loss from the last year in terms of profits and sales. Wembley
international hotel has managed to do fewer bookings this year by covering its targeted audience.
Revenue has declined by 10% this year and Hotel has managed to earn less revenue from every
room. In addition to this, the rooms were booked less by people and also the service system of
Hotel has been declined (Alphonse and et.al., 2018). So it can be said that overall current
performance of Hotel has been declined in relation to previous year.
As per the balance sheet of Wembley international hotel it has been determined that its
plant and equipments are not purchased more for expansion of the business of the organization.
Financial ratios says that overall net assets has been reduced due to less collection of Cash and
Bank accounts than previous year.
Liquidity ratio as per the Balance sheet
3

As per the above table, Wembley international hotel has improved its solvency by
flowing of more cash inwards. 2:1 is the best current ratio for a successful liquidity if a business.
The same should be focused more on by management of Hotel.
TASK 2
A) Recommend with justification to overcome weakness
Wembley international hotel can follow different ways to overcome weaknesses and
internal constraints which effects on business growth and development in hospitality industry.
Know Strengths: It is necessary to take time consider that strengths of business.
Therefore, Wembley international hotel could be seen their employees, goods, customer loyalty,
procedures and locations of business. They could be evaluate marketing expertise and excellent
consumers services (Munandar, 2016). Hotel could consider listing delivery employee's attitude
to overcome weakness of business.
Identify Weaknesses: It is necessary try to take time to look objective at every views of
business by improving product and services. Thus, Wembley international hotel can identify any
field of expertise that is lacking in the business. They can improve all aspects to overcome the
weakness of business.
Spot Opportunities: It is needed to spot opportunities by know about strengths and
recognize weakness in the business. Wembley international hotel can identify their core activities
and changes in highlight areas to grab chances to overcome the weaknesses.
Analysing Opportunities: Wembley international hotel could analysis opportunities by
follows different ways such as technological development, wide achieving in another field and
4

implement new procedures to increase products. Therefore, they could follow actions to
overcome weakness of business.
Watch Out for Threats: After analysis opportunities then Wembley international hotel
could watch out for threats. It requires some guess work which involves competitors, new
technology that can be help to overcome the weakness of business.
Use Analysis: Wembley international hotel could build on strengths, utilising their whole
potential and overcome the weaknesses to business. They could also try threats into chances that
help to growth and development of business.
B) Ways to maintain and strengthen current performance
To maintain the current performance management should ensure that all the facilities are
being managed in the same way in the future (Callot, 2017). Different models has been used to
enhance the time management and skills of the leaders and managers. The model which is best
for the improving the performance will be continued to maintain the performance. Everything
will be analysed properly in order to understand the reason behind decline and the same will not
be followed in the future. The different ways to strengthen and maintaining the performance are
as follows :
Training and developments : All the staff of Hotel should be trained properly in order
to provide best and fast services to the visitors. This will help in enhancing the overall services
and better management from the staff always strengthen the performance of Hotel. Staff
members will also be able to enhance their skills through training and development programmes.
Utilize technology : This is a tool where the front desk with technology at Hotel will
improve the experience of guest. This will also help in working more efficiently and effectively
which allows more people to visit again. So this utilisation of technology will help in
strengthening the current performance of the business.
Treat guest Like VIP : Wembley international hotel should treat the guest as if they are
very important to them. This will give a sense of satisfaction to the people and it will allow them
to pay and they will not regret for their money. Every person wants to have the best services and
meeting this need will enhance the performance of Wembley international hotel.
C) Appropriate actions to expand Business of Wembley international hotel
In order to expand the business of Hotel there are various majors on which the
management should focus on.
5

Focus on target market: Marketing manager should prepare different business strategies
for covering the target market. Business can be expanded only when the organization is able to
cover its target market so that sales and revenues can be enhanced.
Offer better price than competitors : It is really important to provide the best facilities
at lower price than that of the competitors. It allows attracting the customers and they book those
Hotels which are available at the best prices and provide good services. This is one of the action
which can be taken by Wembley international hotel for expanding its business.
Connect with Online Travel Agencies : This is one of the major way to expand the
business in Hospitality industry. It is really important to understand that travel agencies are the
best way to market about the Hotel, booking and letting the customer know regarding the prices.
It also allows increasing the sale as more and more people get connected with the Hotel due to
different travel agencies (Roy and et.al., 2017). In context to Wembley international hotel, Hotel
is already dealing with some travel agencies. Currently it has major concentration on dealing
more and more with travel agencies and provide them best prices so that the business can be
expanded more.
TASK 3
A. Business plan of Wembley international hotel
Executive summary: Wembley international hotel is planning to expand its sales by 5%
till the end of this financial year. Hotel is majorly focusing on improving its services so that its
new business plan can be achieved.
Organisation overview: Wembley international hotel is centrally situated in London
Wembley which offers all the facilities which include international menu, bar and air conditioned
rooms. Other than this, Hotel also has conferences and Banquet hall along with a big parking
space.
Market analysis and competition: To achieve the business plan organisation first need
to target its customers. Wembley international hotel is targeting people of middle class. As the
business is small scale they want to get preference to middle class people which they can afford.
The major competitors of Wembley international hotel are those small scale Hotels
which are Green man pub and Hotel and Euro Hotel.
Business Green man pub Euro Hotel Wembley
6

Hotel international hotel
Annual revenue £2,00,000 £2,50,000 £3,00,000
Employees 150 120 80
Prices Average More than Average High
Quality Low Average High
Now the Hotel is planning of lowering its prices than its competitor so that sales can be
enhanced. To achieve the business plan and deal with the competition Hotel can also focus on
better technological uses in providing services. This will help in being better than the competitor
and achieving the new business plan.
Sales and marketing plan: In order to achieve the new business plan Wembley
international hotel is planning to make a new plan for sales and marketing so that sales can be
increased by 5% by the end of this financial year.
Services offering: Hotel has the planning to give best services by way making facilitate online
booking and allowing them to visit the Hotel before booking. This will help the clients in
knowing regarding the rooms and their preferences are being met or nit before confirming the
booking.
Pricing strategy: Wembley international hotel is planning to adopt the strategy of competitive
pricing where the prices must be lower than that of the competitor (Burns, 2016). This will allow
the customers to book rooms and sales can be enhanced through the same.
Advertising and promotion: Wembley international hotel should focus more on advertising so
that more people can come to know about the Hotel. Advertising can be done through different
social media platforms regarding the booking and prices they are offering. The best way will be
adopted to reach the people and as the hotel is targeting to cover middle class people. Marketing
manager should focus more on such medium through which it is easy to reach middle class
people. Such as newspaper advertising, advertising through social media etc.
Financial plan: This will help in knowing the estimation organisation is planning for the
entire year regarding the cash that will be generated from the coming year.
Cash flow projections
Quarters Cash inflow
7

Quarter 1 £50,000
Quarter 2 £55,000
Quarter 3 £62,000
Quarter 4 £64,000
B. Revising plan to incorporate changes and business objectives of the organisation and
preparing an action plans to implement changes in Hotel.
After forming the above plan and going in depth it has been determined that certain changes are
required to be implemented. This changes in the plan will help in aching the objectives in better
way.
 Training will be provided to staff members so that they can work more effectively
towards achieving the new business plan.
 Better advertising medium should be selected for reaching the target customers such as
dealing more with the travel agencies and offering better discounts than the competitors.
Along with this, For better advertising chosen source will be determined and
implemented after knowing its entire effect. Certain changes like focusing more on services which will help in attracting major
customers. As every client likes to have the best services while staying and using the
different facilities at any Hotel.
Action plans to implement change
Required Changes Implementing strategies Time taken
Training and development Expert will be hired for
providing training to the staff
members.
3 months
Better Advertising policies Advertising through different
medium and research on the
same will be carried by
2 months
8

marketing manager of Hotel.
Enhancing services Customer reviews will be
taken so that services can be
improved where it is lacking.
1 month
TASK 4
A. Report on the potential impacts, the changes may have on the organisation both internally and
externally on Wembley international hotel
By implementing the changes there will certain impact on the Hotel which are detailed
below in detail :
 By focusing more on the advertising the organisation can be able to reach more people
and this will help in knowing them regarding Hotel, its prices and services. This will help
in increasing the sales of the Wembley international hotel
 Organisation will get more booking on dealing with travel agencies and this will also help
in earning more reputation and goodwill to it. As when Hotels deal with different travel
agencies it enhances its sales and goodwill to a great extent.
 Changes like training to staff members for offering best services and treating best with
the clients will help in building strong internal base as well. As staff members will be
able to enhance their skills and get job satisfaction. This will retain them for long term
and thus, organisation gets a strong team for working and able to build strong internal
base.
B. A plan outlining how the changes will be managed in Wembley international hotel
Certain changes are required to be implemented for achieving the new aims and
objectives. To manage the same an action plan is prepared which will help in knowing about the
management of such changes.
Plan for managing the changes :
Changes
implemented
Responsible
authority
Managing strategy Time taken
Training and Human resource To manage it entire 3 months
9

development department outline for training
programme will be
prepared. Goals
behind the training
will be set and then
action will be taken
accordingly.
Better Advertising
policies
Marketing department
of Hotel
For better advertising
chosen source will be
determined and
implemented after
knowing its entire
effect.
2 months
Better Services Front desk and all the
employees are
responsible for
managing the change.
To manage the
services feedbacks
from customers will be
taken so that impact
can be determined of
new services.
1 month
C. Methods to monitor and improve the performance after the changes are implemented
There are various methods to monitor the changes and performance after the changes are
being implemented. Wembley international hotel is following the below mentioned methods for
monitoring the same.
 Firstly the goals that are being set should be determined and all the changes are analysed
that weather they are being implemented properly or not.
 Make sure each staff member of the Hotel knows their roles and job responsibilities in
relation to all the proposed changes. Like they should know that they have to focus on
giving better services. Feedbacks will help in knowing that weather better services are
being provided or not.
10