Analysis of Oakwood Heathrow Guest House: A Small Business

This project report provides a comprehensive analysis of Oakwood Heathrow guest house, a small business enterprise. It begins with an introduction to small-scale industries and their importance, followed by a detailed business profile of Oakwood Heathrow, including its location, strengths, and weaknesses. The report then delves into the financial performance of the guest house, comparing its profitability with a competitor, Apple house guest house, and analyzing its price competitiveness. The project also examines the services offered, identifies areas for improvement, and assesses the target audience and market strategies. The report further explores the setting of aims and targets, the impact of business regulations, and the importance of market trends. Finally, the report discusses the Ansoff matrix and its application in expanding the business, concluding with a summary of key findings and recommendations for future growth.

SMALL BUSINESS
ENTERPRISE

Table of Contents
INTRODUCTION.......................................................................................................................................3
TASK 1.......................................................................................................................................................3
1.1............................................................................................................................................................3
1.2............................................................................................................................................................4
TASK 2.......................................................................................................................................................6
2.1............................................................................................................................................................6
2.2............................................................................................................................................................7
2.3............................................................................................................................................................8
TASK 3.....................................................................................................................................................10
3.1..........................................................................................................................................................10
3.2..........................................................................................................................................................11
3.3..........................................................................................................................................................11
TASK 4.....................................................................................................................................................13
4.1..........................................................................................................................................................13
4.2..........................................................................................................................................................13
4.3..........................................................................................................................................................14
CONCLUSION.........................................................................................................................................17
REFERENCES..........................................................................................................................................18

INTRODUCTION
Small scale and cottage industries has higher enthusiasm to handle complex future
uncertainties which will help an entity to transform the domestic level on a global level. The
market share of an entity can increases their external share in the overall hospitality industry.
This cottage type of industries will provide wide range of services as the establishment of this
enterprise has started in initial costs. It is good source of employment level in the whole
economy as combination of this form of entity is enthusiastic peoples who aspire to earn bigger
share in the market. Generation of higher level of employment will certain sense of responsibility
which drives innovation and competition among various economic sectors. The government
developed new schemes in order to provide financial support to this small based entity in order to
promote their hidden talent. The financial support provided by the government with a clear
motive to reduce the heavy imposition of taxation. It is help an individual to protect the interest
of short enterprises which will bring higher change in the overall society. Oakwood Heathrow
guest house has been selected in the present project report in order to signifies the importance of
small based enterprise. This project is all about projecting strengths and weaknesses of this entity
and also presenting the financial performance indicators of the business.
TASK 1
1.1
Oakwood Heathrow is guest house which is cottage home style guest house located in England
which provides all kinds of accommodation services to its customers. The services provided here
at this place will be afford by all kinds of customers as services are designed as per their budget.
It is easy to attract the interest of travelers who came here for any reasons as it is situated on 5
minute away from Heathrow airport (Zimmerer, Scarborough and Wilson, 2012). Famous tourist
attractions are near this place which facilitates their customers in terms of entertainment services
as famous rugby stadium situated near this guest house. The prospective customers of this place
in London is due to several reasons like person who visit for another country for business
meetings, attending wedding or organizing destination wedding, education, pilgrimage centre’s,
medical emergency. The primary objective of providing quality oriented services to all the
customers according to their budget without compromising with the quality factor.
Business Profile
Location
It is located in the England near Heathrow airport which is located 3 miles away from United
Kingdom.

Contact information
Company website- www.bedandbreakfast.com
Strengths

 The basic strength of this entity is to provide luxurious accommodation services to all
different set of customers in affordable ranges.
 The rooms are designed as per the budgets and income level of an individual.

 The divisions of rooms are not in relation with the prices charged by them as the basic
and standard room contains all kinds of basic amenities.
 Sightseeing services are provided by this guest house as a inclusive services in the price
to be charged for accommodation services.
 It gives greater importance to the hygiene factors as customers of this place are agreed
with the services as the blankets of the room are changed daily.
Weakness
 Apart from providing best efficiency of services the short space to cater the needs of wide
number of customers under same roof will spoil the image of an entity.
 Less number of workers will not able to satisfy the needs and expectations of all kinds of
customers at the same time.
1.2
Financial performance
Profitability
Oakwood Heathrow
￡'000
Apple house guest
￡'000
Year PBT Taxation PAT PBT Taxation
2016 40 8 32 45 18 27
2015 38 7.6 30.4 32 6.4 25.6
2014 25 5 20 30 6 24
2013 20 4 16 22 4.4 17.6
2012 10 0 10 15 3.0 12
Interpretations
Oakwood and apple house guest uses the given below taxation band rate which is dependent on
their profit generated by them in a given particular years. The calculation tax rates of UK as both
the guest houses are located in UK.
Taxable income Tax rate
Up to ￡11000 0%

￡11001 To ￡43000 20%
￡43001 To ￡150,000 40%
It has been observed from the above figure that the profitability of Oakwood guest house
has increasing before taking into considerations the important taxation factor. The ratio of profit
before tax is increasing from one period to another (Bordum, 2010). The taxation has decreased
the profit of the Oakwood guest house. The taxation doesn't create greater impact on the profit
generated by an enterprise. On the contrary, Apple house guest house is largely affected by the
taxation as the higher profit will attract higher tax rates.
Price comparative analysis
Table 1: Price comparative analysis
Room type Apple house guest house Oakwood Heathrow
Standard single En suite ￡39-￡49
Family room option ￡122-￡142
Double bed En suite ￡45 To ￡85 ￡62-￡72
Shared Bedroom ￡39 To ￡60 ￡34-￡39
Family En suite ￡45 To ￡75 ￡52-￡59
Single Bedroom ￡35 To ￡49 ￡20-￡39
Interpretations
From the above price comparison both the guest houses which is both operating on small
scale business enterprise (Audretsch, 2011). It is clearly observed that Oakwood has higher
accommodation options as compared to Apple house guest house. The price range of Oakwood
are less expensive and within the ranges to be easily affordable by normal person.

TASK 2
2.1
Oakwood guest house is that place which offers lavishness wrapped in simple box which
means that all the facilities and services provided by this hospitality in a affordable pricing
(Small bone and Welter, 2011). It offers different facilities like badminton court, cycling,
football field, gym, playground, shopping outlet, theatre, 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. There are different measures which need to be taken
by an enterprise in order to overcome the deficiency of an enterprise which are mention as
below:
Short space- This is one of the weaknesses of this guest house as due to lack of space it is
unable to cater wide number of customers under the same roof. This limitation can be improved
by utilizing the waste and ideal spaces all round the guest houses. The garden can be used as one
of the garden homes which will create additional facilities and one of the amenities to attract
large number of all kinds of the customers. The backyard of the place can be used to build
outside homes with plywood and waste woods to be cost beneficial.

2.2
The services offered to the variety of customers are architecture by Oakwood guest house
exist in the United Kingdom. The core competency of this entity is their attractive services
presented in innovative form in order to capture higher market share. Unique features provided
by this place are affordable pricing which wrapped with attractive services (Quiescent, 2006).
This place emphasizes on providing comfortable environment where feel like their home which
decreases home sickness of guests guest. The unique point of this place is that it is located on
the Heathrow airport (Longenecker, 2013).
Parameters Oakwood Apple house

Attractive features 3 2
Quality of service 3 1
Affordable pricing 2 1
Number of competitors 3 2
Interpretations
The consent of all the customers will be recorded by applying scale evaluation technique
which determines the feedback of customers. This scale has three specific three criteria’s in
which 1 is for satisfactory, 2 is for good performance and 3 is given for outstanding performance
of these two guest house. The above table which reflects that ability of the business which beaten
its biggest competitor Apple house guest house. The current results show that an entity will gain
higher opportunity for expanding their current business in the future.
2.3
Target audience of this place is covering all kinds of age groups who will enjoy the
services provided by Oakwood guest house. Services are offered in lower prices than all other
guest houses located in the London. The higher market share will be gained by an enterprise by
attracting wide number of customers by reducing prices without compromising with the quality.
This place stresses on providing good quality accommodation services along with food and
beverage services. The lodging services are in the front end and food and beverage are ancillary
services in supporting the overall place in attracting customers (Landstrom, 2007). The existing
business of Oakwood guest house will be expanded by applying Ansoff matrix adopting four
stages which re-defines their existing situations.
Market penetration strategy- This stage reflecting performance of Oakwood guest house in
which current products offered by an enterprise in the existing market. In this particular stage,
lodging services are provided by the owner to their regular as well as potential customers. Open
garden restaurant will be offered by the Oakwood guest house who provides this new services in
order to utilise their idle garden as a new opportunity.
Product Development- An enterprise would redefine their existing market segment by
launching new product in the same market. The opportunity for this entity is to capture higher
interest of customers by launching new services. The club services are offered to all the existing

customers of this guest house in which regular customers can utilise the club services by paying
membership fees.
Market Development- This phase of the business of Oakwood guest house in which current
products offered by this place are entered in the new market. The current business will be
expanded their business into another country. The suppliers of the food and accommodation
services are link up on different websites like make my trip.

Illustration 1: Ansoff Matrix
(Source:Hanlon, 2013)
TASK 3
3.1
Setting of aims and targets will help an enterprise in order to direct their overall business.
The opportunities will be gained by an individual by improving the existing resources of the
business enterprise (Bordum, 2010).