Small Business Enterprise Report

This report provides a comprehensive analysis of Qbic Hotel, a small business enterprise (SBE) in the UK hospitality industry. It examines the hotel's strengths and weaknesses, focusing on workload management, financial resources, and market performance. The report uses financial ratios (profitability and liquidity) and customer perception data to assess Qbic Hotel's performance relative to competitors. It proposes corrective actions, including strategic planning, staff training, and financial resource management. Furthermore, it suggests an expansion plan into the retail sector to overcome market saturation and increase profitability. The report details an action plan for implementing these changes, including monitoring and evaluation methods to ensure effectiveness. Finally, it concludes by emphasizing the importance of understanding strengths, weaknesses, and competitive analysis for long-term sustainability in the SBE context.

SMALL BUSINESS
ENTERPRISE
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TABLE OF CONTENTS
Introduction......................................................................................................................................3
TASK 1............................................................................................................................................3
1.1.................................................................................................................................................3
1.2.................................................................................................................................................4
TASK 2............................................................................................................................................6
2.1.................................................................................................................................................6
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...............................................................................................................................................11
4.3...............................................................................................................................................11
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................14
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INTRODUCTION
Small business enterprise (SBE) is the firm that needs minimum amount of funds in order
to carry out its operations. This implies that they make lower initial investment. Moreover, such
kind of organization makes recruitment of small number of personnel whose actions are directed
towards the attainment of business targets with greater effectiveness. Small business enterprise is
involved in conducting operations of firm on lower scale (Graham and Muyia Nafukho, 2007).
Therefore, they are not able to attain higher sales volume. SBE is owned and managed privately.
Further, it is form of sole trader and partnership business.
In the present report on small business enterprise, Qbic hotel has been taken into account.
It is one of the most popular SBEs in United Kingdom. The present report entails to gain insight
in development of business skills required for reviewing and management of performance of
small enterprise. Further, it includes investigation of the performance of chosen firm. The report
is comprised of strengths and weaknesses of SBE. In addition to this, it involves suitable
measures that can be utilized for overcoming the weaknesses existing within organization.
TASK 1
1.1
Qbic hotel is considered as a new and modern hotel where the basic services offered are
perfect. Hotel is low cost designed which is involved in providing facilities at economical prices
to the clients with operating in two cities, that is, Amsterdam and London. The firm was found in
the year 2007 by Bridges ventures (Qbic hotel, 2015). Hotel is having man power of 11 to 50
personnel whose efforts are directed in a particular direction. Thus, such results in the attainment
of business targets within specified duration of time. Major aim of this firm is towards offering
greater hospitality experience to the one visiting hotel (Hatten, 2015). In addition to this, it has
objective to offer customers with high satisfaction level so that they would visit the hotel on
regular basis. The hotel is involved in providing several facilities to customers which is
comprised of free Wi-Fi, soundless room, powerful shower as well as lavishly comfortable bed.
Along with this, it has familiarity with self-services as well as lower cost design that leads to
reduction in the cost which is charged from customers. Such presents affordability of hotel that
can help the person who belongs to varied social classes.
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There are certain strengths and weaknesses possessed by Qbic hotel. Main strength of the
firm is that it provides varied services at economical prices. Thus, it is affordable by large
number of individuals. This acts as the major attraction for visitors towards hotel and leads to
enhance the market share. The hotel room possesses modern design that facilitates in creating
superior experience for visitors (Lepoutre and Heene, 2006). Furthermore, Qbic hotel has
efficient personnel who deliver quality services to customers in an effective manner. In contrast
to this, main weakness of the firm is that number of employees here are small. Therefore,
difficulty is experienced in case if large mass visits the hotel in specific duration of time. As a
reason of low cost budget, SBE is not able to conduct activities related with promotion. Due to
this, there is lack of awareness among visitors regarding the facilities of hotel.
1.2
There is high significance towards measuring the performance of Qbic hotel with
effectiveness for the purpose of determining differences existing in its operations. It helps in
adopting several measures that will result in bringing improvement. The hotel executive keeps
track on various activities of organization by the means of which issues in the services of
company can be determined. Method of financial analysis is suitable for the small business
enterprise such as Qbic hotel. In this, balance sheet and income statement of organization can be
assessed for the purpose of understanding performance of hospitality business in an effective
manner (Yildiz and Karakas, 2012). Through this, comparison can be made as it is accurate
quantitative tool. In relation the same, small business enterprise can compare its statement of
finance with its competitors who are carrying out business in the same industry. After identifying
the outcomes, various actions can be considered that can bring improvement in the prevailing
services. Along with this, analysis of market share measurement of hotel's performance can be
done in an appropriate manner (Shah and Ram, 2006). In situation, from the outcomes it is
inferred that firm is able to achieve its targeted market share then such demonstrates sound
organizational performance. However if firm is unable to attain set target then it has bring
enhancement in its strategies so that market share associated with goals can be achieved in an
effective way.
Comparison of profitability ratio
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Year Qbic hotel (£) Travel lounge (£)
PBT PAT Growth rate PBT PAT Growth rate
2014 5450 4360 113.54 3850 3080 103.22
2013 4800 3840 110.34 3730 2984 105.37
2012 4350 3480 106.1 3540 2832 104.12
2011 4100 3280 105.13 3400 2720 104.62
2010 3900 3120 3250 2600
Comparison of liquidity ratio
Table 1: Liquidity ratio
Year Qbic hotel (£) Travel lounge (£) (£)
2014 5460 5170
2013 5345 4800
2012 5100 4610
2011 4910 4420
2010 4650 4100
Perception of client regarding the services between two companies
Table 2: Likert scale for client’s opinion
Scale: 1 = Lowest
7 = Highest
Year ending 2014 Qbic hotel Travel lounge
Do PSL provide good value services? 6 4
Did the facilities at PSL fulfil your requirements? 7 3
Rate the firm with competitor's business services. 6 3
Make comparison regarding competitor's offerings in
the future course of business.
6 2
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Comparison of sales profit
Table 3: Sales profits
Year Qbic hotel (£) Travel lounge (£)
2014 4700 4345
2013 4475 4100
2012 4234 3810
2011 4000 3640
2010 3850 3200
With the comparison of both hotels, it has been assessed that the financial position of
Qbic hotel is sound as compared to its competitors.
TASK 2
2.1
Qbic hotel carries out all the operations on wider basis and business is facing some issues
which is affecting overall performance. Further, one of the main weaknesses being faced is
workload where all the tasks and other form of work are not managed properly. In order to deal
with this issue it is required for management of Qbic hotel to take some corrective actions. Apart
from this, it is representing that internal structure of the enterprise is quite weak and work is not
distributed in proper manner among all the internal employees (Lim, 2010). Issue linked with
workload is declining business performance in the market where employees are highly
demotivated and they do not prefer to participate in the business affairs. Moreover, company
operates on very small basis and due to this reason all the internal issues have to be faced
internally. There is no such effective option present through which this issue can be tackled
efficiently. Further, another issue which is being faced by business is shortage of funds which
represents that all the available resources with firm are not utilized in proper manner. Lack of
finance is preventing business to indulge into development activities which can enhance overall
performance.
To deal with this issue it is possible for Qbic hotel to take financial assistance from
outside parties at a nominal rate of interest. Moreover, it is necessary to have effective plan in
relation with utilization of financial resources. Business is required to work on development of
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its internal strength. Adoption of proper financial resource can surely lead to favorable outcomes
for business where major issues can be resolved easily (Hoxley, 2007). Internal issue of
workload can be managed by allocating the work by considering the skills and knowledge of the
staff members. Apart from this, business must focus on expansion so that large amount of work
can be handled easily and in proper manner. Therefore, undertaking all these techniques can
support in overcoming with all the issues identified.
2.2
In order to maintain existing performance of Qbic hotel in the market it is required for
company to take some corrective actions. Business is required to indulge into practices of
developing strategic plans through which issues linked with workload and financial one can be
easily tackled. Further, it is required for organization to carry out training of its staff members on
continuous basis. Through this they will become capable to carry out crucial operations of the
business. For better management of financial resources it is required for Qbic hotel to take advice
from financial experts so that they can guide business managing funds. For strengthening overall
operations proper process of monitoring can be undertaken through which it can be known
whether all the operations are carried out as per plan or not (Obeng and Blundel, 2013). This can
surely lead to favorable results for business such as improvement in overall systems along with
efficiency to deal with internal challenges can be enhanced easily. This can surely benefit
business in long term where all the critical issues can be resolved. Moreover, for maintaining
present performance in the present competitor analysis can be carried out on continuous basis
through which strategies adopted by other firms can be known easily. Apart from this, Qbic hotel
has to modify its internal policies through which business can encourage its staff members to
take active participation in the major affair (Soufani, 2003). Organization is required to search
for alternative ways with the help of which financial needs can be satisfied easily. Firstly it is
necessary to consider pros and cons of every financial source and on the basis of same best one
can be adopted easily. Further, to deal with the situation of workload more skilled workforce can
be hired and in turn effective ways of handling key tasks within the workplace can be known
easily. So, this can surely allow Qbic hotel in gaining competitive advantage and in turn internal
operations can be carried out efficiently.
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2.3
The operations of Qbic Hotel are primarily restricted to the hospitality industry and it has
attained a satisfactory level of profitability over the years. In order to move beyond the situation
of saturation the company shall plan an expansion which could lead to an enhanced level of
success in the market and create a brand name. One of the available and lucrative option could be
entering into the retail sector, considering the boom and continuously increasing demand of
various products (Etemad, 2004). The management can extract some spaces within the hotel
premises or adjacent to the premises to offer a holistic experience to their customers. In this
manner they can cater to the requirements of guests visiting their hotel and also plan promotional
or special offers specifically for their own customers. In addition, this can become the basis of
advertising their services in the market. This strategy has the potential to become the point of
attraction for their hotel as tourists from other nations or states are often hesitant to shop from the
local markets. But opening of shops within the premises or adjacent to the premises in the hotel's
name shall bring a sense of reliability and comfort for such unknown tourists. It has been known
that Qbic Hotel has enough retained earnings or regular income to make an investment in such a
venture, without making a huge investment on the infrastructural requirements. Another way in
which this expansion plan can be adopted is that the management can tie up with the existing
players of the market and offer them the spaces in the hotel on lease or rent, thereby installing a
fixed monthly income source (Faupel, 2012). It has been observed that the enterprise has enough
infrastructure to expand through this kind of a venture and make huge profits, apart from
building goodwill in the market. It is important for the management of the company to
understand that it has reached a level of saturation in its business and hence is required to
undertake measures to earn additional profits. Also, the business has a great potential to plan an
expansion and implement it successfully by utilizing the available resources as well as the
market conditions. Therefore, the management shall on an urgent basis consider adoption of an
expansion plan to achieve increased sales and profits from the overall business.
TASK 3
3.1
The present business objective of Qbic hotel is towards offering quality services to the
customers at economical prices that can offer higher level of satisfaction to them. Along with this
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firm possess another target that involves enhancement in the sales and profitability of the
organization (Wu and Olson, 2009). Such can be attained through making utilization of various
promotional means that are effective in creating awareness of organization in minds of target
market. In order to attain to set targets various plans have been developed by the firm. Such is
taken into considered by organization so that it can attain desired results in particular duration of
time. For the purpose of offering quality services executive of hotel needs to organize several
training programs for the personnel (Finch, 2011). Through this improvement can be made in the
skills as well as knowledge of the employees in relation to the manner in which personnel can be
treated in an appropriate manner. Therefore the personnel will be motivated to provide quality
services to the customers with efficiency. With such types of programs small business enterprise
is able to maintain satisfaction level among the target market. Similarly, for the purpose of
creating awareness in the customers the organization can analyze the tool of promotions which
can be utilized for the purpose of attracting the visitors. Through the selection of suitable tool
firm needs to design appropriate advertisement which can provide detail knowledge regarding
the services offered by Qbic hotel. With this information can be disseminated among greater
number of people that leads to enhancement of sales of organization in an effective way.
Furthermore such results in improving the profitability of business in future course of time.
3.2
It is important to bring some changes in the present plan of the small business enterprise.
With the presence such it is significant to carry out review of the prevailing plan of the firm.
There is greater significance for Qbic hotel to develop particular targets and objectives of the
business. Therefore such leads to development of need that relates with bringing changes in the
objectives of organization which offers increase in the profits and sales of the business. This is
with the utilization of several means of promotion. Instead of using several promotional tools it
is important for the organization to make development of particular tool that can facilitate the
firm in attainment of the business goals with greater effectiveness (Shah and Ram, 2006). Such
can be utilized by the organization for the purpose of attracting the customers to a greater extent.
Through setting particular targets marketing department can directs its efforts in a specific
direction. If the personnel know the tools of promotion which can be utilized by them then they
would be able to make development of strategy in accordance with it. In order to promote Qbic
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hotel can conduct promotion by the means of social networking sites. Through such it can reach
greater number of customers in particular span of time. Along with this the main aim of the
organization is related with delivery of quality services to the customers. This can be through the
help of organizing training programs with greater effectiveness.
3.3
In order to execute the changes in Qbic hotel it is significant that action plan is required
to be adopted by the firm. This is comprised of priorities, objectives, benefits, responsibility and
other factors that plays imperative role in executing plan with greater effectiveness. It is essential
for the organization to make development and implementation of plan with respect to particular
changes which are required to be bought in within the firm. Through the assistance of such the
employees can direct their efforts in an effective manner. Through execution of changes in the
aim of the firm that relates with enhancement of business profitability can be accomplished by
using promotional tools such as social networking sites. The action plan related with such has
been developed that is as follows. It is comprised of series of stages in which the initial step is
comprised of determining the marketing that possess knowledge regarding the manner in which
ads are required to be presented on social networking sites (Wu and Olson, 2009). Moreover it
involves the things that are required to be engaged in the advertisement. Through the selection of
this the ads needs to be displayed on the sites by Qbic hotel has to be developed. Further the
action plan for other objectives is required to be devised. The altered business targets is towards
enhancing the quality of services of the firm by bringing enhancement in the skills and
knowledge of the employees in an effective manner. The action plan in this regard involves
assessment of the requirement for training. Moreover module needs to be prepared so that needs
of training of several employees can be satisfied with greater effectiveness.
TASK 4
4.1
The alterations which have been proposed possess the ability to affect both personnel and
firm to a greater extent. Through the presence of specific changes it is important that team of
marketing performs in particular manner (Obeng and Blundel, 2013). Through this they are
effective able to make development of advertisement for the organization in an appropriate
manner. Due to this the organization is able to attract greater number of customers towards the
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firm in an effective way. In addition to this changes are being made with respect to increasing the
services quality by means of developing skills and knowledge of the personnel. Through the
assistance such the motivation level of the employees can be increased to a significant level
(Peltier and Naidu, 2012). It is being viewed that level of satisfaction of the employees enhances
when they are provided with adequate amount training. This is due to the reason that such acts as
an aid for them in bringing improvement in their skills that assist in their career development.
Therefore it is significant for Qbic hotel to adopt measures that can lead to enhancement of the
satisfaction among personnel. This is due to the reason that such will lead to attainment of the
business target that relates with providing quality services to the customers (Change
Management Process, 2014). Beside this changes in the objectives of the organization will affect
the small business enterprise. The organization will attain advantage through increase in
profitability. In addition to this it will increase the base of customers for the Qbic hotel in an
effective way.
4.2
It is essential for the firm to make adoption of suitable measures that can assist in making
sure the changes that are emerging in the business to a greater extent. The changes are in relation
to bringing enhancement in the skills of personnel can be developed in case the efforts of the
organization are directed in the direction that is organizing training programs at regular intervals
in an effective manner. Through the help of such the knowledge and skills of the personnel can
be enhanced (Perry and Coetzer, 2009). Thus they are able to carry out the organizational
operations with greater effectiveness. Along with this the management of changes in the
organization can also be done by the means of offering suitable amount of motivation to the
employees. The level of motivation among the employees is influenced in situation when any
kind of alteration occurs in the organization (Graham and Muyia Nafukho, 2007). This is
because of the reason that employees makes assumption that through changes in the organization
the activities of the employees are influenced to a significant level. Further it also affects the
smooth work flow in Qbic hotel. Such demonstrates that alteration are resisted by the personnel
in the business. But by the means of motivation among the personnel that implementation of
changes can be done in an appropriate way. Further they can be managed in well manner as well
(Huber, 2011). Through this organization can be benefited in terms of improvement in the sales
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and profits of the business with greater effectiveness. It has been analyzed that the role of
motivation is significant in improving the work processes in the organization. As such it has
important role in bringing advancement in the sales as well as profitability of the firm to a
greater extent (Faupel, 2012). This is because of the improvement in the performance of the
personnel by the means of training programs to a greater extent.
4.3
Performance can be monitored by Qbic hotel in effective manner with the help of various
methods. For achieving goal of the company it is very important that firm closely monitor the
each activity and formulate strategies to improve it. These techniques are very helpful to identify
the issues, if any problem occurs in mid way then proper measures can be taken by mangers at
right time to cure them. Management team is required to train employees of business unit
effectively so that they can perform their task with efficiency and can contribute well in the
organization for achieving the common goal. Workshop and training session must be arranged by
employer to enhance skills of individual so that they can analyze their responsibility and can
fulfil those effectively. Assessment of Profit and loss attained by entity is an impressive tool to
evaluate the actual performance of business unit (Nafukho, Graham and Muyia, 2009). By this
way it can be analyzed that company is working well or not and net worth of the Qbic hotel can
be identified easily. If it is determined that company is earning more profit as compare to
competitors like Marriott, Hilton etc. So it means firm is performing well. It can be compared
with previous year records also. If actual profit is greater than previous year it means corporation
has gained market share and increases level of performance in the market.
To evaluate insight effectiveness of Qbic hotel customer feedback is also good technique
of performance evaluation. Opinion of service users determine actual working of the
organization. In case if customers are giving positive feedbacks and reviews about employees so
means company is doing well. If workers are serving well to clients then it creates positive image
of brand. But if there is negative response of consumers then means entity needs improvement.
Customers are the key elements of the corporation, there behavior towards the brand affect the
revenues and profitability of the organization. Service user review affect the brand image of the
organization (Reid, 2007). Gantt chart is also an impressive tool to monitor the performance of
workplace. Through this process changes can easily monitor by the mangers. It is cost effective
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