New Linden London Hotel Business Development Report

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Management of Hospitality

Management of Hospitality
Table of Contents
Introduction....................................................................................................................................2
SWOT Analysis..............................................................................................................................2
Financial Analysis..........................................................................................................................5
Non-Financial Analysis..................................................................................................................5
Ansoff Matrix Analysis...................................................................................................................5
Business Plan................................................................................................................................7
Action Plan.....................................................................................................................................8
Kurt Lewin’s Model......................................................................................................................10
KAIZEN Method...........................................................................................................................11
Conclusion...................................................................................................................................12
References..................................................................................................................................13
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Management of Hospitality
Introduction
Hospitality Sector is one of the most booming sectors which plays a very important role in
improving the economic condition of the nation. Its impacts are huge as tourism sector work
parallel with it. The collaborative effort of the tourism and hospitality sector creates many
opportunities in the country. It is considering as one of the evergreen sectors because its
economy never sleeps. The hotels which come under the Small Medium Enterprise works as
the backbone of the economy and its development and growth indicate the healthy condition of
the economy. In the study we have chosen, New Linden London hotel as for the research
purpose, which is considered as one of the popular hotels in England. The study further
highlights the significant factors that are essential for the development and growth of the hotel
business. The varied strategies are recommended in the study, which helps in understanding
the strength and weakness of the hotel. The business expansion plan is explained with the help
of the Ansoff Matrix model.
SWOT Analysis
Strength Weakness
One of the popular as well as the most
trusted hotel in England
Charming Interior
Luxury and deluxe rooms at affordable
price
Beautiful Ambience
Location
Tasty and Quality Dishes
Media Relations
Sticking to the basic dishes
No, Engagement on Social Media
Training is not on the priority list
Lack of Security
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Management of Hospitality
Offers
Opportunities Threat
Global Presence
Renovation
Can introduce a variety of dishes
Target Marketing
Can attract International Customers
Competitive Market
Monotonous Brand Image
Tax Rise
Increase Grocery Price
Strength: New Linden London is one of the popular hotels, having its presence in London,
England The hotel being popular carries its culture and this makes it popular among the one
who is more inclined towards their culture. It follows the local tradition and its dishes compliment
it. The hotel has paid attention to the smallest details to give it a unique look. It consists of
varied rooms depending upon the customer's requirements. The rooms are Standard Double
rooms, Luxury Suite, Honeymoon Suit, standard triple rooms and family rooms. The ambience
of New Linden London hotel is an attractive part as it has trendy high-tech entertainment units,
minimal furnishings and limestone, slate bathrooms and stunning marble (New Linden Hotel,
2019). Its food ranges from starters to the main course which is of high quality and are tasty as
well. The satisfactory reviews, the hotel got from their customers indicates about its supreme
quality food. It provides offers for various occasions such as father days, Christmas, Ester and
on many more occasions. It offers several discounts on wedding days and on corporate
meetings etc. The hotel is located in the heart of London’s cosmopolitan Notting Hill
neighborhood which makes its location easier to access. It is situated in the heart of city London
(New Linden Hotel, 2019). Being at a few steps away from the fashionable Westbourne Grove.
Weakness: New Linden London is known for his traditional dishes, which are tasty, as well as
of supreme quality, but the things are that they stick to the basic dishes and do not experiment
with the new dishes. Introducing new dishes could attract more customers. Nowadays all the
businesses are inclining towards social media to communicate directly with their customers and
can examine the feedbacks. Any organization before making any management plan creates a
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Management of Hospitality
priority list, which enables them to understand the list of things to attempt first in order to
improve its performance and growth. Training of management or staffs is very crucial for
improving the company’s performance as the trend are changing very frequently and it is very
necessary to adapt according to the trend in order to satisfy the customer with their services
(Zaitseva, Goncharova, and Androsenko, 2016). New Linden London hostel needs to consider
the training of staff in their priority list for performing better than its rivals. The security of the
customers is most concerned part and it's not to be ignored. As the New Linden London hotel is
located in the heart of the London city, the security factor becomes even more important and it
needs to consider while organizing any events.
Opportunities: The opportunities can be defined as an approach by executing its steps one
could accomplish the targets. The presence of New Linden London hotel is restricted to the city
of London, which is a disadvantage for the business because it makes their customer limited.
The hotel needs to move ahead and starts its another branch in the city, which would fetch him
an ample amount of customers. The hotel could collaborate with another international hotel to
make its global presence. The target marketing could enable them to convert the potential
customer into the loyal customer of the hotel (Riasi, and Pourmiri, 2015). Targeting Market is
one of the most powerful approaches in the current scenario as it uses technological aspects to
target an individual level to fetch customer for the organizations. The hotel could also implement
this approach to gain customers at an affordable cost. England is filled with migrants of different
cultures and the hotel could take advantages out of it (Rodríguez & Hardy,2015). It could
organize various events keeping the cultures of varied migrants and this way it could attract
more customers from different countries living in England.
Threat: Threat could be a devastating factor if ignored. The treat needs to be considered and
reviewed in order to understand its impact on the business. The organizations analyze various
threats and create a strategic plan accordingly. Nowadays, the market is becoming competitive
because of its changing trend and one needs to adopt the changes in order to survive in the
market (Pérez, Saparito, and Gopalakrishnan, 2016). The dynamic nature creates several
requirements, which need to understand and simultaneously should be implemented in the
existing business. New Linden London is among the popular hotel and known for its traditional
image which sometimes turnoffs other potential customers especially the college students,
which prefers vibrant culture and are easily attracted towards it. The hotel needs to create a
plan to understand their needs and then implement it to attract them without disturbing its
previous customers. Increase in Tax and grocery price could affect it tremendously as it needs
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Management of Hospitality
to increase the prices of food and services which might bother their existing as well as potential
customer. The price competition is huge in the hospitality sector as this sector is depended on
the varied sector for its existence (Zervas, Proserpio, and Byers, 2017). Keeping price margin
less would help it to sustain its customer otherwise; there are several hotels, which can attract
its customer by providing them facilities at a better price.
Financial Analysis
Revenue from operations 3.02£ m 2.20£ m 2.60£ m
0.32£ m 0.27£ m 0.15£ m
1.70£ m 1.60£ m 1.70£ m
1.64£ m 0.87£ m 1.05£ m
1.47€ m 0.78£ m 0.94£ m
Oher Income
Expenditure
Profit Before Tax
Profit After Tax
.
2019-2018 2018-2017 2017-2016
Non-Financial Analysis
72% 45% 42%
68% 52% 62%
73% 65% 67%
87% 78% 82%
15 9 5
Brand Image
Regain Customer
Brand Loyality
Loyal Customer
Website Reviews
2019-2018 2018-2017 2017-2016
Ansoff Matrix Analysis
Existing Product New Product
E
X
I
S
T
Market Penetration Product Development
Tailor-made events
Social Media Marketing
Providing offers rigorously on every occasion
to attract more customers.
Providing Online Payments
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Management of Hospitality
I
N
G
N
E
W
Market Development Diversification
New Branches: Opening new branches
to the different territory of the country as
well as collaborating with another
international brand to expand its reach
globally.
Introducing spa, gym and other facilities
Market Penetration: New Linden London understands the importance of strategy making and
tries every possible method to sustain its business in this dynamic market. The market
penetration is an integral part of the marketing strategy which enables the organizations to
create its impact in the market. The hotel uses to create various events based on customer
requirements, it may be any corporate events or any wedding ceremony. The hotel is trying to
establish a connection with its clients to improve its overall reputation but lack of engagement is
hampering them, it needs to hire a skilled person to look after their accounts to increase the
engagement on various social media platforms.
Product Development: New Linden London is the popular hotel in England and to sustain is
existence, the need for market strategy plays a very important. New Linden London Hotel
implemented such strategies to create uniqueness, which could attract the customer. It
rigorously provides offers for various occasions to seek the attention of existing as well as
potential customers. It understands the importance of technology, therefore introduced online
payment service to provide hassle-free booking to the customers. The online payment not only
provides benefits to the customer but to the hotel as well as it increases the sale. The online
payment helps the hotel to track the transaction with ease.
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Management of Hospitality
Market Development: The consistent development is the key to success and it should be
monitored thoroughly to have a clear understanding of the development (Hopkins,2017). New
Linden London Hotel can open its new branches to another part of the territory of United
Kingdome to attract more customers and on the other hand, it could collaborate with another
international brand to build its global presence. The global presence would fetch more
customers from all over the world to even its main branch.
Diversification: New Linden London Hotel need to think broadly and consider those new things
that could attract more customers of every age to generate additional revenues. It could include
other facilities such as spa, gym to give customer enhance experiences.
Business Plan
Objective
 To become the most reputed hotel.
 Customer Satisfaction
 Generate more profit
Mission
 Automate workflows to improve productivity and simplify day to day activities/
 Fulfilling the customer requirements
 Making marketing priority and improve sales.
Vision
 Implementing Corporate Social Responsibility
 Creating and nurturing a relationship with customers
 Capturing the hospitality sector locally and globally
Achieving the targets
 Achieved by creating a positive brand image among customers
 Engaging with customers on various platforms and acquiring their feedbacks
 Implementing a varied approach to target customers at an individual level by the help digital marketing
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Management of Hospitality
Time Duration
 1 year
Action Plan
Every organization seek to secure the number one position and for that, it tries a varied
approach to accomplish the objective. In accomplishing the targets, it requires a proper strategy
and planning to execute the things in a systematic way. To become the most reputed hotel in
the UK, New Linden London Hotel needs to understand the current scenario and according to
that, an appropriate strategy should be implemented. It should have the proper understand of
the dynamic trend and act accordingly to achieve the targets. The hotel needs to emphasize on
the importance of Corporate Social Responsibility to create trust among its customers. The CSR
enables the company to look after the environmental factor not to just focus on profit making. In
other, it can be said that to just fulfil the current requirements, the future cannot be spoiled. The
companies understand their social responsibility and their impacts on the reputation of the
company. CSR not only benefits the environments but to the business as well (Lim and
Greenwood, 2017). By implementing CSR in the objective of business creates trust and loyalty
in the customers' mind for the company. New Linden London Hotel needs to identify the areas
which are to be considered and then proper approach to eliminate such activities which have
adverse effects on the environments. The activities such as wastage of food, using energy
efficient cars for tourism, caring staffs and contributing to society by varied means (Lock, and
Seele, 2016). The company should collaborate with various fundraising organizations and
encourage sustainability. The philanthropist activities will create a positive brand image in the
market and the customer will relate their values with the hotel's value.
The organizations try to understand the needs of customers by implementing various tools and
techniques in their management strategy. To understand the requirements, organizations need
to engage with their customers and take their feedback, which it can implement and can create
a better experience for their existing as well for potential customers. The customer need can be
acquired by understanding the market trend and according to the trend, one to change itself
(Sajid,2016). New Linden London Hotel can satisfy its customers by providing high-quality food
and supreme services which should create an impact. New Linden London Hotel need to be
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Management of Hospitality
more active on the various social media platform to understand the trend and engagement with
customers would fetch them a positive image.
The purpose of any business is to gain profit and to maintain its position in the competitive
market (Porter, and Kramer, 2019). To achieve its profit targets, the management body
executes varied plans and strategies of sales and marketing to generate high revenue. SWOT
analysis is done to understand the various aspects of the business and by gathering the
information, several strategies are implemented. The SWOT analysis reveals the strength,
threat, weakness and opportunities of the business which helps the organizations in decision
making for the future strategy. New Linden London Hotel, SWOT analysis, reveals numerous
parameter which might help it in achieving its targets. The profit is directly propositional to the
number of the customers means the maximum number of customer, maximum will be the profit
(Yanova, N., 2015). The maximum number can be achieved by executing the targeting
approach which is digital marketing. In digital marketing, New Linden London Hotel can target
their potential customers at an individual level by the help of various social media channels. The
digital marketing targets customer on the basis of their likes, interest, locations and other
behavioural factors (Karjaluoto, Mustonen, and Ulkuniemi, 2015). It is one of the best and most
cost-effective advertising solutions a company can seek.
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Management of Hospitality
Kurt Lewin’s Model
Unfreeze Change Refreeze
Determining the
Change which is
essential for the
betterment
 Evaluating the
business to
understand the
current scenario.
 Understanding
the essential for
change
Backing from the senior
management needs to
be ensured
 To win and get
support from the
stakeholder,
stakeholder
management
and stakeholder
analysis need to
be used
 Prioritizing the
issues
Creating the need for
change.
 Creating a
Communicate Frequently
 Communication is the key
to success and should be
carried out through the
changing process
 Benefits of the change
need to be described.
 Making understand
everyone about the
change and its impacts on
everyone
 Making prepare everyone
for the comings.
Eliminate Rumors
 Answering each and every
question honestly.
 Dealing with the problem
instantly
 Relating the change with
the necessity.
Empowering the actions
 Creating numerous
opportunities for the
employee’s involvement.
 Acquiring managers to
guide and support for
Anchoring the changes
into the culture
 Factor supporting
the change is to be
identified.
 Factors hindering
the change need to
be discovered
To sustain the change,
ways to be developed.
 Leadership support
to be ensured.
 Adaption of
organizational
structure is
necessary.
 Feedback system
to be established
 Creating a reward
system.
Providing training and
support.
 Keeping every
individual up to
date and
supporting them.
 Accomplishing
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Management of Hospitality
consistent
message to
understand the
need for change
 Using vision and
strategy to
support the
change.
 Communicating
about the vision
and the need for
creating
awareness
about the
importance of
change.
Understand and
manage the doubts
day to day task
Involving everyone in the change
process
 Reinforcing the change by
generating short term wins
 Negotiating with the
stakeholders
Success
KAIZEN Method
Identified Area Indicator Benefits Recognized Significant
Improvement
1. Introduction of
New Dishes
Positive Reviews
from the customers
Improved By 75 per cent
2. Security Not Up to the mark Need more
improvement
By 25 per cent
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