Jesmond Dene Hotel: Business Strategy and Performance Analysis

This report provides a comprehensive analysis of Jesmond Dene Hotel, a small-scale accommodation business in London. The report begins with an introduction to the company, highlighting its location, services, and target market. Task 1 focuses on the company profile, detailing its strengths, weaknesses, and SMART objectives, along with a performance analysis that includes cost and price comparisons with competitors like Apple House and Oak Wood Guest House. Task 2 delves into the services offered, competitive analysis, and strategies to maintain its strengths, including customer perception analysis. The report also presents profitability measures and ratios to evaluate the hotel's financial performance over several years. Recommendations are provided to address weaknesses and leverage strengths to enhance the business's competitive position and customer satisfaction. The analysis covers various aspects of the business, offering insights into its operational efficiency, financial health, and market positioning.

SMALL BUSINESS ENTERPRISE

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1................................................................................................................................................3
1.2................................................................................................................................................4
TASK 2............................................................................................................................................5
2.1................................................................................................................................................5
2.2................................................................................................................................................6
2.3................................................................................................................................................7
TASK 3............................................................................................................................................8
3.1................................................................................................................................................8
3.2................................................................................................................................................9
3.3................................................................................................................................................9
TASK 4..........................................................................................................................................10
4.1..............................................................................................................................................10
4.2..............................................................................................................................................10
4.3..............................................................................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15
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INTRODUCTION
Complex external difficulties will gives rise to the enhancement in the current capabilities
of an organization. Jesmond Dene has been selected for this project report which is all about
explaining their small scale role in building their identity. This project report is all about explain
their internal strength and weaknesses in order to beat their competitors. It is also stresses on
aims and objectives designing, implementation and preparation of the overall action plan.
TASK 1
1.1
Company profile
Jesmond Dene hotel is situated in the famous tourist destination of the United Kingdom
that is the London. This small scale business of providing accommodation services to all the
visitors who come outside UK in order to explore the London and its aesthetic beauty. This place
is located in the Kings cross St. Pancras street in the front location which is enough to attract the
interest of all the customers (Tassabehji, 2010). This is regarded as one of the cheapest bed and
breakfast restaurant in this particular street. The business profile of this enterprise reflected its
Smart objectives in their business portfolio to attract wide number of customers towards their
business. The current enterprise stresses on the cleanliness as this factor will set unique identity
of an organization among all kinds of competitors. The online reviews over 1600 individual will
measure the success of an enterprise.
The amenity provided by this particular sector includes variety of options in rooms as per
the income level of individuals. Free Wi-Fi at a blistering speed is a primary feature of this
particular place to catch the interest of all customers. The biggest competitors of this
organization are Apple house and oak wood guest house who provides accommodation services
at the cheapest rate (Soufani, 2013). Lunch and coffee are the complimentary services provided
by this entity in a standard room rates as the luxury services are provided by this entity is to
catch the attention of all individuals. The working hours of this place will remain open for 24
hours to facilitate its clients with its unique services.
Contact information
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Illustration 1: Location of Jesmond Dene hotel
Name and address- 27 Argyle Street, Kings cross St. Pancras, London
Contact no. [phone]
Website- Http://www.jesmonddenehotel.co.uk/
Strengths
 It is located in the front location of the famous streets of the London
 The facilities of this place are available for 24 hours of working to cater the demands of
night customers.
 Free Wi-Fi facilities are available in the public places near the restaurant
 Affordable pricing rates as compared to their rivals
Weakness
 Higher competitors is the basic weakness of the entity which needs to be removed
 Shortage of space is another weakness of this particular entity.
SMART OBJECTIVES
 The quality of services will be offered by this entity in order to gain the interest of wide
number of customers
 The pricing pattern will be strategically designed in which innovative patterns are used to
reduce the prices as compared to their competitors
 The facilities are provided in higher number as compared to its competitors who imposes
threats.
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1.2
Performance measures are the factors which will define the overall business efficiency as
an entity can achieve all their desired goals and the objectives by considering their existing skills
and talent. There are various comparative performance indicators which help an entity in order to
achieve its desired goals and the objectives in a given time span which are given as follows:
Cost schedule
Particulars Year 2017 Year 2018 Variances
Interiors decoration £1000 £1500 £500
Exterior decoration £1200 £1600 £400
Kitchen utility £1000 £1000 £0
Utility bill £500 £500 £0
Equipment £5000 £2000 -£3000
Selling expenses £800 £700 -£100
The above mentioned cost comparison will be helpful for an entity as due to this an entity
can recognize their overall cost involved in their business (Burns, 2011). The variances are also
determined in order to comment upon the existing business efficiency of an entity by reflecting
their ability. The variances take places in this particular organization which shows negative
figures is beneficial for an entity. This decrease in the amount of the equipment from one period
to another is of £3000 as this fixed cost will not increase over period of one year and the selling
expenses are also decreases as per the customer needs of this organization.
Price comparison
Room type Jesmond Dene Apple house guest House
Standard Double En suite ￡1220/ Per Night
Basic Five Bedroom ￡854/Per Night
Double bed En suite ￡45 to ￡85
Shared Bedroom ￡39 to ￡60
Family En suite ￡45 to ￡75
Single Bedroom ￡35 to ￡49
Interpretations
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From the above comparison of the prices of the current entity and its competitor who
imposes direct competition in terms of the prices as this can change the behavior of an individual
(Eckerson, 2010). The variety of rooms provided by this hostel will please the customers in order
to influence them to retain for long time at this particular place. It has been observed that the
price range of Jesmond are cheap as compared to the prices set by it competitors. The profit ratio
is less than compared to their customers as customer satisfaction is the primary aim of this
enterprise.
Profitability measure
Jesmond Dene
￡'000
Apple house guest house
￡'000
Year PBT PAT PBT PAT
2016 230 184 1200 960
2015 160 128 1000 800
2014 100 80 700 540
2013 50 40 800 540
2012 10 8 100 80
Interpretations
The initial growth of this enterprise has gradually increases with the passage of time as
the small scale established with fewer amounts and slowly gets increases along with the time
factor. On the contrary the competitor of this place is achieving higher profit as the prices are set
higher than compared to this enterprise. The burden of tax is higher on the business of Apple
house in relation to the Jesmond Dene.
Ratios
The current ratios are calculated on the basis of forecast figure of profit and assumed figure of
sales generated by this entity over the years.
Figures Formula 2015 2016
Sales 250 300
Gross profit 160 230
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Net profit 128 184
GP ratios GP/Net sales*100 64% 76.67%
NP ratios NP/Net sales*100 51.2% 61.33%
Interpretation
 GP ratio- The above results are showing the increasing ratio of gross profit as it will
determine the effect of cost of sales on the overall sales figure generated. The small scale
entity has higher profit due to less imposition of cost of sales.
 NP ratio- The net profit will determine the impact of taxation which decreases the
overall profit incurred by an entity in a particular year. The complete profit that is the net
profit is increasing from one period to another.
TASK 2
2.1
Jesmond Dene is that place which offers luxury services wrapped in simplicity which
referred to as all the facilities and services provided by this hospitality in an affordable pricing
(Kelly, 2013). It offers wide variety of services like badminton court, cycling, football field,
gym, playground, shopping outlet, theater, water-skiing, bird watching, dart board, golf, horse
riding, sailing, sightseeing tours, walking, bowling alley, fine dining, Golf diving, Jet ski,
shopping skydiving, Water activities. High speeding Wi-Fi facility is the primary motto of this
particular place and all clients’ needs and the expectations are meet by an organization 24/7
working.
Other than providing wide variety of services to please all kinds of clients this entity has
some weaknesses which will deteriorate the performance of an entity which can be rectified by
providing recommendations which are given as follows:
 Competitive analysis- The market research needs to be conducted by an enterprise
which will ascertain their true market performance in relation to all the existing rivals.
The competition will be resulted into affecting the business efficiency (Finch, 2011). The
research has been revealed that apple house guest house and Oak wood guest house are
the biggest rivals of this entity. The weakness of all rivals will be ascertained by this
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particular research which will assist an entity in crafting their future strategy. The market
positioning of this entity will clarify the existing competition which will help an entity in
order to know their exact market position.
 Extending space- The shortage of space is the primary limitation of this firm as being a
small scale enterprise the needs and the expectations of all the customers due to less
space. This shortage of space can be improved by using idle spaces of the hotel. Being
located in the front location of the street the enterprise can use their gardens and backyard
in order to deliver all of their accommodation services. The prosthetic rooms are
temporarily established in the gardens which can be shifted from one place to another in
case of the changes in the need of the external business environment.
2.2
The front location of this particular place is the basic strength of an enterprise as wide
numbers of customers are attracted towards this place as it offers different facilities and
amenities in affordable pricing rates (Burns, 2011). The delivery of quality oriented services to
please all kinds of customers as the prices is set according to the budget level of the individuals.
The strengths of this entity involve focusing on income level of the customers, considering tastes
and preferences of the client. It gives more emphasizes on the location as it is currently located
nearby various airports like Heathrow airport London and Lutton airport to please their clients.
The primary motto of this entity is to take care about the customers perceptions are precious
stones for this enterprise (Bordum, 2010). Following are some approaches which help cottage
industry in order to maintain the level of its existing strengths in order to attract more customers
are:
Customer perceptions- Influencing the behaviors of different kinds of clients as the
primary motto of this particular entity is to earn the loyalty among several sets of
customers. Attracting the clients and customers taking perceptions to know their tastes and
preferences the institution should conduct market survey to observe the feedback on
respective criteria as compared to their competitors.
Year
ending 2016
Jesmond
Dene
Apple house Guest
House
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Is it good value 6 3
Can it really deliver superior performance 5 4
How does it compare with competitor offerings 6 5
How will it compare with competitor offerings in
the future given competitive innovations
5 4
Interpretations
From the above table which is based on the graphic evaluation technique that is the
ranking scale technique to rank different group of competitor on a rating scale of 7 that gives
ranking on a primary criterion of assessing entity's performance. The performance of an
enterprise will be improved by considering the customer's satisfaction as the primary motive of
the overall judgment report. The Jesmond Dene is ahead from its competitors in each and every
term as small scale enterprise established initially with small amount of investment has higher
scope for improvement in the future (Lim, 2010). This small organization structure will provide
potential to an enterprise in order to bring innovations and creativity in all its services in order to
beat all its customers.
Develop effective relationship- The stakeholder of a business unit helps in business
development effectively thus the company must adopt the efficient measures to manage the
stakeholder relationship. The organization must be able to provide the required information to its
stakeholders to develop their trust.
2.3
Jesmond Dene deals in providing lodging services in affordable pricing in order to attract
all income groups of as its focus is on to promote equality. It is centrally located in the famous
streets of the London nearby airport Heathrow (Audretsch, 2011). The location of this hotel near
the Kings Street is enough to cater all the needs and the expectations of its consumers. The small
scale entity's operations are started with less amount of investment which in turn increases the
potential as it created ample of scope to grow more in near future. Ansoff matrix is regarded as
the suitable approach which is efficiently applied in this enterprise for the business expansion.
The current matrix has four divisions which are widely used in business expansion such as
Market penetration, Product Development, Market development and diversification.
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 Market penetration strategy- The current component of this model states that existing
product of an enterprise is expanded in the current market by marketing of the product or
publicly aware about the products or services offered by an enterprise (Bordum, 2010). It
deals with the low risk measure of strengthening the existing product in the existing
market. The accommodation services are offered to the same set of customers by making
significant changes in the current services such as offering additional services in the same
prices.
 Product Development- Jesmond Dene can launch their new services or products in the
existing market as it comprises moderately risky business situations (Carlisle and Flynn,
2005). The restaurant services are provided by the enterprise in their existing business of
offering accommodation services.
 Market Development- This strategy is referred in the explaining the roles of the of
business expansion by moving ahead in new market (Burns, 2011). It is that situation in
which Jesmond Dene can provide their services by entering into new market such as
combing their existing business entity with hospitality sectors. The food products can
supply by this organization in order to catch the interest of all the customers of that hotel.
From the above three defined strategies of the Ansoff matrix model that is market
development strategy which is effective for an enterprise as it increases the scope of targeted
audience as earlier it was confined within the limits of the insider businesses.(Botha and Solms,
2004). Opening way for local residents will also increase the hotel services along with restaurant
food services. Another strategy of ansoff matrix is diversification but at this point diversification
is not appropriate for this enterprise.
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TASK 3
3.1
The business objectives of the small scale enterprise will help an entity in order to uplift their
existing working conditions. The desired goals and objectives of this entity will provide adequate
direction to an enterprise in order to enhance their capabilities. There are various objectives of
Jesmond dene hotel which are mention as below:
 Quality- The primary objective of this entity is to deliver its products or services in
quality oriented services to cater the needs and expectations of the customers (Bordum,
2010). The small-scale entity need to maintain quality in all of their business operations
to deliver good quality products or services to meet all uncertain demands of the clients.
 Affordable pricing- The pricing pattern is another attractive feature of this entity as
price sensitive customers can be attracted by setting low prices. The prices are start from
low prices ranges which is negotiable as per the capability of set of buyers.
 Amenities- The facilities provided by this entity is bundle of luxury and normal standard
services provided to all kinds of customers in a budgetary prices. The variety of room is
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the attractive feature provided by this hotel. Wi-Fi is the essential element involves in an
enterprise which stresses on the technological and net surfing needs of all customers in
today’s world.
3.2
The current focus of Jesmond Dene hotel is on the customer satisfaction as the products
or services offered by an enterprise in order to gain the trust of individuals. The external market
changes takes place in the future may lead to bad situations to create turbulences in the market.
Every business plan has made with high amount of flexibility so that uncertain future changes
would be incorporate and protect the business operations of an enterprise due to external market
changes (Burns, 2011). The current business plan has prepared by considering all the existing
capabilities of the Jesmond dene hotel. The market trends will be assessed which help an entity
in order to craft their strategy according to the tastes and preferences of all different kinds of
clients.
Environmental analysis- It is that analysis which helps in identifying all strengths and
weakness of an entity which will useful for this enterprise in beating all their rivals who
constantly posing challenges in different forms. The external and internal changes will be
incorporated by the corporation to please their customers by offering innovative and creative
kind of products or services.
3.3
The analysis of the company’s performance it has been found that the potential of an
organization can be used in order to improve the existing business conditions of an enterprise.
Action plan is a framework which guides an enterprise in the implementation process of the
business plan prepared with intense planning (landstrom, 2007). It is used for enhancing the
business plan of the organization must incorporate the effective measures to incorporate the
changes required to create an edge within the market. There are various factors of an
organisation which needs to improve in order to achieve the goals and the objectives of jesmond
dene which are given as follows:
 Organisational structure- The deficiency lies in the overall structure of the business
enterprise which needs to be improved by considering all the factors. The potential
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