Evaluating ABCD Hotel's Business Plan: Recommendations and Expansion

This report provides a comprehensive analysis of the business plan for the ABCD hotel, a small bed and breakfast establishment in England. It begins with an introduction to business enterprises and a profile of the hotel, identifying its strengths (e.g., potential for profit, employment opportunities) and weaknesses (e.g., lack of experienced management, limited funds). The report analyzes the hotel's performance using financial statements and comparative measures, highlighting the need for improved financial planning and customer satisfaction. Task 2 recommends actions to overcome weaknesses, including government support, improved management, and customer feedback mechanisms. It also analyzes ways to maintain and strengthen existing performance through market analysis, customer experience, and employee evaluation. Furthermore, the report suggests expansion strategies using the Ansoff matrix, exploring market penetration, product development, and diversification. Task 3 assesses the existing business plans and objectives, including increasing customer numbers and expanding service offerings. Finally, the report outlines plans for implementing changes and monitoring the impact on the business, including an action plan. Overall, the report provides a detailed assessment of the ABCD hotel's business plan, offering practical recommendations for improvement and growth in the competitive hospitality market.

Business Enterprise
1

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Produce a profile of the selected small business identifying its strengths and weaknesses........3
Carry out analysis of the business using comparative measures of performance........................4
TASK 2............................................................................................................................................5
Recommend with jurisdiction and appropriate actions to overcome the identified weaknesses
in the business..............................................................................................................................5
Analyse ways in which existing performance could be maintained and strengthened................6
Recommend new areas where business can be expanded...........................................................7
TASK 3............................................................................................................................................7
Produce an assessment of existing business plans and objectives...............................................7
Revise business plans to incorporate appropriate changes..........................................................8
Prepare an action plan to implement the changes........................................................................9
TASK 4..........................................................................................................................................10
Report on the impact of the proposed changes on the business and its personnel....................10
Plan how to manage these proposed changes at ABCD hotel...................................................11
Monitor improvement in the performance of the business over a given timescale...................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
2

INTRODUCTION
A business enterprise is defined as the organisation in which employees work together for
achieving the goals and objectives of the company. There are basically two types of enterprises
small scale and large scale enterprises. The small scale enterprise is one which has limited
number of employees and also limited flow of finances and materials. The following report is
based on the business plan of two friends starting a new small bed and breakfast hotel in
England. This report will include the different factors that affects the business performance and
success in England. This report will help to analyse financial and marketing ways by which this
hotel can be successful in market. A business plan is described in this report and at last
recommendations are made for changes in business and improving the personnel.
TASK 1
Produce a profile of the selected small business identifying its strengths and weaknesses
A small business is started by entrepreneurs to earn profit and make money. It is
important for them to estimate different factors about the enterprise. The essential aspects for the
new hotel started in England naming ABCD hotel -
Size – The size of this enterprise is small as this is a small cafe cum hotel that will serve
breakfast to employees (Bridge and O'Neill, 2012). The number of staff in this hotel is very
small as there will be only 20 staff people including two managers and one vice manager.
Type – This new ABCD hotel will be a small organisation in the hospitality sector that
will provide quality and hygienic food to people in England. This is a small hotel situated near
xyz area.
Structure – The organisational structure is required by the company to have effective
flow of communication and performing the functions and business activities in an effective
manner. This hotel will have a general manager who will look after all the activities of business
and other staff which will work under him including one supervisor, a manager, a cook and other
helpers and waiters. This hotel will follow a hierarchical organisational structure.
Mission and Vision – the mission of this hotel is to provide effective services and quality
product to customers and make them satisfied. The vision of this company is to become an
example for small hotel business by performing better every year.
3

Goals and objectives – The major objective of ABCD organisation is to give quality food
and services to people and provide them good ambience and environment while eating food.
Other goals include providing them hygiene and clean environment at hotel premises.
Strength and weakness of starting ABCD hotel
Strengths
 This will help in creating new hotel business and increasing the profits of the
entrepreneurs.
 Services and food offered to people will help in making both the hotel and chef popular.
 This will help in providing employment to more number of people.
 This will be a good place which offers food for both lower class and middle class people.
Weaknesses
 There is no good management and administration as entrepreneurs are new to hotel
business.
 There are no enough funds to make hotel more attractive and provide services of high
quality
 Queries and problems of customers are not solved effectively at initial stages.
Carry out analysis of the business using comparative measures of performance
According to researches it is concluded that the small enterprises present in United
Kingdom can earn a lot and make profit in less time. On the other hand, the larger enterprises
have more employees and make more profits than small enterprise but market value is important
for such kind of enterprise (Schaper and et. al., 2014). When median of small enterprises was
compared it came around 8,000 British pounds in the year 2017 and it increased to 9,000 British
dollars in the year 2018. It has been concluded from this data that small enterprises help in
employment to people and supports in earning profits for the company. The following statistics
shows the financial statement of the hotel given below -
Assets
Cash $ 8000
Accounts Receivable $ 2000
Office Supplies $ 2000
4

Office Equipment $ 6000
Total Assets $ 18000
Liabilities
Bank Loan $ 4000
Accounts payable $ 2000
$ 6000
Equity
Common Stock $ 9000
Net income $ 3000 $ 12000
Total liability and Equity $ 18000
From the above data it is analysed that there are small funds present with ABCD hotel
and they need to work upon improving their profits. This organisation has taken loan from bank
and it has some liabilities. This company has less stocks and it is not a good sign if business has
to be enhanced.
TASK 2
Recommend with jurisdiction and appropriate actions to overcome the identified weaknesses in
the business
There are some measures that help in overcoming weakness faced by ABCD while
operating its business. These are listed below-
Support from the government – It is essential for the government to provide enough
funds to companies so that they can help small enterprises in doing business effectively.
Government should provide funds to organisations at reasonable price. This will help ABCD
hotel to use money for providing good quality products to customers.
Proper administration and management – The managers of hotels should have proper
plan and organise the ideas for making suggestions and ideas for accomplishing tasks and
activities of hotel business like food, beverage, etc. This helps in increasing profit and managing
business activities of hotels.
5

Record and monitor of customer complaints – The managers of the company must
record and monitor all activities of the company and it should ensure that there are minimum
problems and queries of customers regarding services (Storey, 2016). Feedback is an effective
way to know about the needs and requirements of customers and this helps in resolving various
conflicts and fights. Feedback of customer experience helps in improving the quality of food and
services of hotel.
SWOT analysis will help in analysing the weakness and strength of the company. The
SWOT analysis helps in identifying the weakness and opportunities that occur while operating
business. The weaknesses of operating small business can be resolved by using the SWOT
analysis of the company. In context of ABCD hotel, the entrepreneurs will be able to analyse the
factors that will help in attracting more customers and guests. The opportunities for small hotel
business is to provide services that attracts people because of good ambience and quality food.
Analyse ways in which existing performance could be maintained and strengthened
There are following weaknesses of ABCD hotel while operating business of small hotel
in England. There is no proper management and administration of all activities in hotel. This
hotel is also facing fund issues and this is a big obstacle for the company for smooth operation of
the organisation. It is important for ABCD organisation for increasing performance of the
company. These ways are listed below-
 The ABCD hotel company must estimate the market area for avoiding any problem while
operating the hotel. It is important for company to analyse the actions and plans of
competitors for making more better operations that will attract more customer base.
 Customer experience feedbacks of the company will help in knowing about the activities
to work upon and how services and quality of services can be increased.
 The ABCD organisation adopts participative decision making process that helps hotel in
giving best performance in business (Burns, 2010). There is a proper delegation of
responsibility and authority that reduces conflicts and fights that can occur while doing
operational and functional activities of operating a hotel.
 Employees and staff members of should be evaluated on basis of performance appraisal
as this will helps in motivating workforce to achieve goals and objectives of the company
and this also helps in removing barriers in efficient working of the company.
6

Recommend new areas where business can be expanded
Ansoff matrix will help ABCD hotel for identifying areas of expanding operations of
business. This matrix has four dimensions that reflects various strategies for growth and
expansion. These categories are described below-
Market penetration – This is the measure of amount of sales or adoption of a service or
product compared to total theoretical market for the service or product. This strategy helps a
company in increasing the sales. The managers of ABCD hotel can use different new techniques
to serve customers. One of them is to provide food and breakfast meals through online bookings,
drive through services, food on call services, etc. This will help company in expanding it's
business.
Product development – The managers of ABCD must modify the product line and attract
more customers and provide them good and quality services. This hotel provides good services
and quality of products. Such services like WiFi facilities and new dishes, continental foods,, etc.
The hotel must meet the needs and requirements of customers. This increases cost of investment
and helps in growth and development of business (Blackburn, Hart and Wainwright 2013).
Diversification – The hotel diversifies it's product line in this stage for managing profits
and losses that occur in business. As ABCD hotel is a new hotel, it is not able to diversify the
business. When this hotel will start making money and profits, then it can diversify its business.
Market development – According to this strategy, the main focus is on increasing the
profit of business. This helps in giving opportunities to expand business and make more profits.
This is not suitable for organisations at initial stage as they are not earning much that they could
invest money in other businesses.
TASK 3
Produce an assessment of existing business plans and objectives
There should be successful plans and objectives of hotel so that business can be
successful and grow profits. The business plans and objectives of small ABCD hotel in England
are listed below-
Business objective - The objective of ABCD hotel is to increase the number of potential
customers and attract a lot of customers by providing quality services to customers. This hotel
7

wants to be elegant and budget hotel that provides mesmerising ambience to customers to enjoy
breakfast and snacks (Stokes, Wilson, and Wilson, 2010). The main aim of ABCD hotel is to
increase its services of hotel. As ABCD hotel is offering breakfast and snacks and this
organisation has the objective to grow and include main course food and meals as it's products.
This company wants to increase it's business in other areas of England within two years.
Business Plan – There are various plans that are made by business which includes
various effective decision process for managing different tasks of the company. There are
various objectives of ABCD hotel for making plans and providing good services to customers.
The business plans of ABCD hotel are listed below-
 Providing standard services to all the customers.
 Taking record of feedback of customers and making appropriate actions to remove the
problems and making customer's satisfied.
 Proper levels of management are formed in order to communicate information to all staff
members.
 Company has made certain plans which will helps the hotel to improve their services
moreover helps in customer retention and employee satisfaction within the company.
Revise business plans to incorporate appropriate changes
It is important for a company to overcome weakness of business plan and this requires to
be developed so that business plan of the company is more profitable. The different elements in
the business plan are listed below -
Strategy – The ABCD hotel analyses all operations and must ensure that all departments
including marketing, finance and operations are working efficiently. A good marketing strategy
will help the organisation in promoting the place and food effectively and making more money
and earning profits (Malhotra and Temponi, 2010). ABCD hotel must use good marketing
strategy for advertising and promoting the place and food. This helps in achieving goals and
objectives of the organisation in less time.
Structure – A good organisational structure helps in maintaining proper flow of activities
and operations so that there will be no inefficiency in smooth functioning of the company. The
ABCD hotel must include perspective decision making which involves all staff members and
provide them opportunity to achieve the targets. This hotel will adopt hierarchical organisational
structure for effectively managing all operations of hotel management.
8

Skills – It is important for the organisation to have skilled workers in the organisation as
this will help in achieving the tasks and targets of the company in given time. Employees of
ABCD should work effectively and apply services and food that will help in increasing the
satisfaction level of customers (Burrows, R. ed., 2015).
Staff - Staff ids responsible for providing services to customers that visit the hotel.
These individuals are those who represent the hotel service by giving food, greetings and good
facilities to customers. Staff members are treated effectively for increasing the level of
Prepare an action plan to implement the changes
There are a number of changes that take place in an organisation and these changes have
to be adopted by employees for increasing the profits of new business. Changes that helps in
growth and development of business includes change in organisational structure, technical
changes, environmental changes , etc. An action plan is a necessary tool for implementing
changes and making new and effective policies and plans that helps in attainment of goals and
objectives. The following table shows a successful action plan for ABCD hotel of England.
Action plan should be taken Requirements Time duration
Advertisements and
promotions
Advertisements and
promotions are important for
hotel to attract more number of
customers.
The promotions and
advertisements of hotel are
effective during holidays and
vacations. Also on weekends
ABCD hotel can offer
discounts and special meals.
This will help to grab attention
of more customers.
Hierarchical system of
The management system is
required in an organisation for
effective flow of
communication among all
levels of the management of
company. In case of hotel
The hotel will take around 40
days for implementing
management and control in the
organisation. This will help to
enhance the operations of hotel
business.
9

management industry, it is important that
they should follow hierarchical
system of management as it
will help in knowing who is
responsible for giving orders
and subordinates have to
report to whom and do quality
work in hotel (Ackermann, and
Audretsch, eds., 2013.).
Discounts and offers to
customers
Offers and discounts are
essential for increasing the
performance of business and it
is important for the company
to attract more customers and
guests for increasing the profit
of the company.
These are given to the potential
customers during holidays and
festive season for attracting
more number of customers.
TASK 4
Report on the impact of the proposed changes on the business and its personnel
Changes must be adopted in organisation and the main limitation of ABCD hotel is
provide quality products and services to people. This hotel must keep changing the food menu
and food products
Positive impact- The change in leadership style from autocratic to participative will be
helping to motivate employees and make them perform better. There will be competitive
advantage in market.
Negative impact- There are some staff members who are not working effectively and
there is less coordination between employees.
10

Plan how to manage these proposed changes at ABCD hotel
A good management of employees and staff members is important for increasing the
efficiency of organisation. In context of ABCD hotel, several changes are to be implemented for
increasing the productivity and profits of the company.
 Change are managed in hotel by doing a proper evaluation of employee’s performance
and checking the record of balance sheet of business whether the company has earned
profit or loss after the change has been implemented.
 Changes can also be managed by taking or following initiatives to fulfil the plans made
in accordance to achieve the business objectives.
 Conflict management tools should be properly implemented to resolve the conflicts
arising because of change and make the employees aware about the benefits of change
to manage them effectively.
Monitor improvement in the performance of the business over a given timescale.
The monitoring of the organisation requires improvement in performance of employees.
This helps in tracking progress and removing any obstacles in the progress of the company
(Gronum, Verreynne, and Kastelle, 2012). A balance scorecard will help ABCD hotel to analyse
it’s performance and make strategies and plans according to this. The balance scorecard will help
this company in the following manner-
Financial stewardship- This will help in analysing revenue of the company and also
turnover of company of the company of four to six months. This provides estimating the
financial performance of the organisation.
Customer satisfaction- The level of satisfaction is determined by taking feedbacks from the
customers. This will help in identification of gap between service and satisfaction level of
customers.
Internal business process- This process helps in determining the flow of information. This
helps in providing coordination and collaboration among staff of ABCD hotel. This enhances
efficiency level of the company.
Organisational capacity- The capacity ABCD organisation can be enhanced by identifying
various ways that helps in performing functions and tasks of the company.
11

Performance measures and targets- Performance of the employee can be measured by
performance appraisal which provides clear picture of each workers performance.
CONCLUSION
From the above report it has been analysed that small business can be successful only
when needs and demands of customers are met in less time. There are some social and cultural
issues that affects the business but these enterprises have to overcome such problems and
become successful in marketplace. A business plan is helpful for entrepreneurs to know what are
the opportunities that can help in growth and productivity of business. Businesses have to
analyse the changes in the perspective of customers and provide them facilities according to the
new trends and technologies. A good organisation is one which adopts the changes in less time
and implement new techniques in the company.
12