Investigating SME Performance and Proposing Strategic Changes

This report provides a comprehensive analysis of a small business enterprise (SME), specifically focusing on the performance of the Hilton bed and breakfast hotel. It begins with a profile of the business, highlighting its strengths, such as warm hospitality and comfortable accommodations, and weaknesses, including its location and lack of online booking. The report then uses comparative measures, such as profit and sales comparisons with a competitor (IBIS), to analyze the business's performance. Furthermore, it recommends actions to overcome identified weaknesses, including training and development, improving the location's appeal, adopting an effective management style, and providing taxi and online services. The report also analyzes ways to maintain and strengthen existing performance through value-added services, skilled employees, business penetration, environmental scanning, and customer relationship management. Finally, it recommends new areas for business expansion, such as expanding the range of services, strategic employee acquisition or mergers, and concludes by emphasizing the importance of SWOT analysis and customer loyalty for achieving sustainable growth. The report recommends that firms focus on expansion opportunities, select appropriate sources of finance, and utilize SWOT analysis to identify threats and opportunities.

SMALL BUSINESS
ENTERPRISE (SME)

LO1
Be able to investigate the
performance of a selected small
business enterprise

1.1 PROFILE OF THE
SELECTED BUSINESS
The Hilton is a stylish bed and breakfast hotel that is giving its hospitality services in
England.
The hotel is situated at the outside of beautiful historic town of Hadleigh. It offers a
great place to stay and everything that the customers need on their doorstep.
The SME expects all its guest to feel relaxed while staying and the aim is to provide
comfortable surroundings along with adding an element of luxury in the services
(Blackburn, Hart and Wainwright, 2013).
The targeted customers for Hilton hotel are middle class consumers who wants to
enjoy a good accommodation and food within a reasonable budget.

STRENGTHS
All the visitors are attended with warm greetings and generosity.
The rooms are having high quality mattresses and soft duvets for maximum comfort
and sound night sleep (Chahal and et.al., 2014).
Each room has a TV, tea & coffee making facilities and the other useful things.
The breakfast is also served on specific dietary requirements.
Guest siting area offers a good place to relax and to explore the beautiful
surroundings of the countryside.
Packing and home delivery facility is also available (Perry and Coetzer, 2009).

WEAKNESSES
The location of hotel is not impressive as there are no nearby pubs, restaurants, tea
rooms, etc. (Agrwal, 2012).
Absence of taxi services which is creating problem for the visitors.
Lack of experience in the staff which affects the services of the hotel.
The management style is not effective as there is indiscipline and lack of control.
Absence of online booking facility.

1.2 Carry out an analysis of the business using
comparative measures of performance
The business performance of Hilton can be analyzed by using different measures such
as sales, profitability, staff turnover, job satisfaction, etc. For that purpose, a
competitor of the hotel has been taken into consideration named IBIS.

PROFIT COMPARISON

SALES COMPARISON

LO 2: Propose changes to
improve management and
business performance

2.1 RECOMMEND WITH JUSTIFICATION,
APPROPRIATE ACTIONS TO OVERCOME THE
IDENTIFIED WEAKNESSES IN THE BUSINESS.
Training and development
Good location
Effective management style
Taxi and online services

2.2 ANALYSE WAYS IN WHICH EXISTING PERFORMANCE
COULD BE MAINTAINED AND STRENGTHENED.
Offering value added services
Hiring skilled employees
Business penetration
Environmental scanning
Customer relationship management