Assessment and Improvement Plan for a Small Hospitality Business

Desklib provides past papers and solved assignments for students. This project analyzes a small hospitality business and proposes an improvement plan.

Small business enterprise
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Table of Contents
Introduction......................................................................................................................................3
Lo1...................................................................................................................................................4
1.1 Produce a profile of a selected small business (type, size, structure and objectives of the
chosen hospitality business) identifying its strengths and weaknesses.......................................4
1.2 Carry out an analysis of the business using comparative measures of performance.............5
Lo2...................................................................................................................................................6
2.1 Recommend with justification, appropriate actions to overcome the identified weaknesses
in the business..............................................................................................................................6
2.2 Analyze ways in which existing performance could be maintained and strengthened.........7
2.3 Recommend with justification, new areas in which the business could be expanded...........8
Lo3...................................................................................................................................................9
3.1 Produce an assessment of existing business objectives and plans.........................................9
3.2 Revise plans to incorporate appropriate changes.................................................................10
3.3 Prepare an action plan to implement the changes................................................................11
Lo4.................................................................................................................................................13
4.1 Report on the impact of the proposed changes on the business and its personnel..............13
4.2 Plan how the changes will be managed in the business.......................................................14
4.3 Monitor improvement in the performance of the business over a given timescale.............15
Conclusion.....................................................................................................................................16
References......................................................................................................................................17
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Introduction
The hospitality industry is the sector that aims at providing the best services to the customers.
Also, to survive and ensure long term sustainability in the market of the small business,
identification of the customer requirements is very important (Magruk, 2017). Furthermore,
determining the key strengths and weakness is also a way to ensure the growth and success of the
small business.
The present analysis is based on the small business, i.e. The Portobello hotel situated in the
United Kingdom (The Portobello Hotel, 2019). The study outlines the strengths, weakness,
objectives, etc., of the hotel. It further reflects the ways and measures that can be adopted by the
hotel to attain objectives and ensures growth and success.
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Lo1
1.1 Produce a profile of a selected small business (type, size, structure and objectives of the
chosen hospitality business) identifying its strengths and weaknesses.
The selected small business is The Portobello hotel situated in London, United Kingdom. The
hotel operates within the hospitality industry. The hotel offers various facilities such as antique
furnishings, good ambiance, air conditioning, TVs, upgraded rooms, high ceiling, exotic scenes,
etc. The vision of the selected hotel is to be recognized by the product and service quality
standard, and the mission is to inspire and motivate employees and achieving financial results.
The Portobello hotel has a hierarchical structure where employees have one clear supervisor.
The main objectives of the hotel are to enhance the overall market share and achieving customer
satisfaction in order to enhance customer loyalty (Mika, et al. 2017).
The hotel has various strengths, and these strengths are appropriately used by The Portobello in
order to attain the objectives. One of the major strength that has been identified is its brand
name, and image in the market. The company has established a market position of an excellent
hotel in London, and the positive and strong brand value has been considered as a key strength.
Another major strength is its clear organizational structure. A clear and structured hierarchy is
essential in the smooth functioning of the business. Because of this, the employees become
aware of the reporting authority and their roles and responsibilities (Alasadi and Al Sabbagh,
2015). The top management always emphasizes keeping clarity regarding the roles and duties of
the staff members of the hotel. Apart from the strengths, there are some key weaknesses too of
this hotel, and that includes poor customer service and low employee morale. It has been
assessed that the confidence and motivational level of the staff members of the cited hotel are
quite low and that is the reason that the employees are unable to provide excellent customer
service. In order to attain the objectives of the hotel, it is important to identify the weaknesses
and overcome them (Blair and Marcum, 2015).
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1.2 Carry out an analysis of the business using comparative measures of performance.
After the analysis, it has been identified that there is a slight difference between the performance
of the current year and the previous year of the hotel.
The comparative analysis of the selected hotel is presented below:
2017-2018 2018-2019
Revenue per available room
(REvPAR)
4,500 2,000
Occupancy percentage 74% 52%
Overall cost 5,55,000 4,34,000
Revenue 9,00,000 6,12,000
Thus, from the above analysis, it has been assessed that the financial performance of the year
2017-2018 was quite good in comparison to the year of 2018-19. The revenue per available room
has been calculated by dividing the number of rooms available to the room revenue. The
occupancy percentage in the previous year was 74%, and in the current year, it has reduced to
22%. There can be several reasons for such a decrease in the performance of the hotel, and there
is an urgent need to resolve it as soon as possible in order to attain the objectives and goals.
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Lo2
2.1 Recommend with justification, appropriate actions to overcome the identified weaknesses in
the business
The identified weaknesses of the hotel are low motivational level of the employees of the hotel
and dissatisfied customers. The objectives of The Portobello hotel are to enhance the overall
market share and achieving customer satisfaction and to attain this proper use of the strengths
and addressing weaknesses is significant. Furthermore, it has been identified that the hotel is
needed to deal with the weaknesses (Wille, et al. 2017).
The first and foremost weakness of the selected hotel is the low morale of the employees or staff
members of the organization. In order to enhance the low confidence of the staff members, the
top management of the hotel can take several steps. Taking corrective actions are very important
in order to attain the predetermined goals and objectives. Moreover, the management of the hotel
can deal with this weakness by properly communicating to the staff members regarding their
issues, providing them training (if required), asking their suggestions and feedbacks, etc.
Apart from all these steps, identifying the motivational needs of the staff members and then
motivating them is the key solution to address this weakness. The motivation for the employees
can be provided in terms of monetary as well as nonmonetary benefits. The need of every
employee is quite different, and that is why the way they are required to motivate also differs in
several ways (Ayandibu and Houghton, 2017).
The other weakness, i.e. poor customer’s service can be overcome by analyzing the needs of the
customers and their expectation level. After this evaluation, on the basis of such expectation, the
services must be provided to the customers. Also, the feedback, suggestions, and review of the
customer visiting the hotel must be encouraged, and this can be done by various ways such as by
conducting a survey, asking directly, social media platforms, etc. Asking their suggestions and
reviews will make them feel like the hotel values the customers and their requirements.
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2.2 Analyze ways in which existing performance could be maintained and strengthened
The hospitality industry is a wide sector. There is a huge competition in the industry, particularly
in luxury aspects. There are several ways of analyzing to maintained and strengthened.
Following are the ways –
SATISFACTION- To keep customer happy and satisfy do whatever it takes, The Portobello
Hotel has to work to maintain customer satisfaction on a priority basis, providing them services
like taxi, food facility, laundry, and many other services (Rhodes, 2015).
ORGANISED- Being a hospitality employee has to be multitasking and organized in each and
every manner. Portobello Hotel is a small enterprise still yet it is on the list. They are very
organized and maintain time management. Time is only a precious thing, and Portobello hotel
knows it well. Every work at Portobello hotel is organized on time.
HYGIENE /SAFETY ISSUES- Hotel should know all the rules and regulation about hygiene
and safety issue because they apply to places where they serve foods, washroom, gardens,
kitchen, and rooms. Portobello knows how to maintain cleanliness in the hotel.
TECHNOLOGY- To be a part in today’s world. Hotels have to maintain the latest technology to
getting work done faster or make the guest more comfortable. Portobello must find this area to
be more powerful.
Portobello Hotel is doing well in these aspects to maintain them to be stronger in this sector
(Burns, 2016).
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2.3 Recommend with justification, new areas in which the business could be expanded.
There are many ways to expand business in the area through which business will grow. First of
all, there is a need for capital behind. Before making any expansion work, the amount will
depend on the business size. Hotels like Portobello who is small enterprises will start from
managing the social media. Not only from the local area people also from other city or country
too will know about the hotel, for this, but management also has to maintain effective social
media to get high ratings and presence on all social media platforms like Twitter, Facebook,
Instagram, and local websites. Infrastructure is the key to attracting more guests, make board
rooms for meetings, conferences, and seminars, a place for small celebrations, dining hall, make
the hotels not only for staying but for celebration and meetings too from this business will
expand in the new area and make more revenue as well. Tie-up a contract with company’s who
do online marketing; from the past years booking patterns are subject to change dramatically
(Bridge and O'Neill, 2017). Websites like make my trip, Hoteliers, etc. make a contract with
them for online bookings. Now a day’s guest will check on a click to make sure availability and
rates. Make a special offer on festive season and celebration. Hotels like Portobello will give a
special discount on Sunday stay offer and give discount up to 25%, gift vouchers. The
membership card is also a new aspect to expand business guest; they build a healthy relationship
with the guest and ensure that the guest will come again and again. There is a huge scope to
expand the business but have to choose the right one (Burns and Dewhurst, 2016).
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Lo3
3.1 Produce an assessment of existing business objectives and plans.
The Portobello hotels have many objectives, but the main objectives of them are –
Customer satisfaction- The primary purpose of every business is to earn, and the primary source
of earning is a customer for this hotel have to keep a customer satisfied whatever it takes. This is
a cycle of making a profit. Customer satisfaction leads a hotel business high on demand.
Enhancing market share-Every sector wants to make their share high on demand in the market
same as hotel industry also. We can enhance our market share through innovation, building a
healthy customer relationship, acquiring competitors, etc. Market share is calculated by
measured by industry total revenue of the year. Higher market share will give industry many
advantages (Cocks, et al. 2018).
For meeting, this objectives hotel like Portobello makes their plans to achieve them are as
follow-
BUILD REFERRAL CODES-It takes a long time to make new guest, so many hotels using
referral programs on their website through social media platforms and email. From this, we can
increase our share in the market. Some guest will do according to their wish, but some need
motivation Offer a giving a discount on next trip or gift amount it’s a good motivator.
SERVICES- Hotels is a kind of industry where services are not enough. Provide new services
and innovation to it will work better to satisfy guest, services like laundry wake up call, do not
disturb, new technology, complimentary breakfast, room facility, soft-spoken and helping staff
work great. Most especially maintain the dignity of the hotel simultaneously maintain cleanliness
as well.
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3.2 Revise plans to incorporate appropriate changes.
Changing is the rules of the world. More often say nothing is permanent. We have to change
plans from time to time or according to their necessity (Goss, 2015). To give a competitor better
competition in the market, it is essential that the organisation offers innovative services, new
products or give something bigger and more valuable. Innovation makes a business grow;
Portobello plans to incorporate appropriate changes to develop a business the plan.
The changes of plan are to make more revenue simultaneously to give more benefit and
satisfaction to the guest.
1. PACKAGES- Make a reasonable package of stays like honeymoon package, holiday
package, tour package we can serve on the website or social media platforms
2. OFFERS- Offer a special discount on birthday and anniversary.this will build a warm
relationship with a customer it makes the guest to come again. This makes connectivity
with a guest on the long term.
3. EVENTS- Create a program on every weekend or festive dates with live music band,
theme party, etc. if hotel follows new trends guest will follow, create new ways of
celebration like color code theme, according to celebration theme will decide.
4. TRANSPORT FACILITY- Pick and drop facility from airport, railway station and bus
stand. cabs are also available for sightseeing or any other purpose of the guest.
5. TECHNOLOGY- Hotel industry is the business who never stop growing guest will
demand new technology and services. To update in the market, use the latest technology
6. GIFT VOUCHER- Provide gift voucher, for a stay or on a monetary term.we can gift
voucher to our dear ones on their special day (AlKhajeh and Khalid, 2018)
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3.3 Prepare an action plan to implement the changes.
Changes Action plan Financials
PACKAGES In order to get in action,
management has to plan first
how many days and night
available in each package.
£150-£200
OFFER First of it is required to make a
card that is filled by the guest
to take advantages of the
special offer on their special
day.
£190-£200
EVENTS To implement these schemes
we can put on a social media
platform so that more people
can know about the events and
celebration. Make hoarding in
the hotel so guest can read
automatically on a special
event. Like new year eve.
£1000-£1500
TRANSPORT FACILITIES A guest has to select that
option on website so
management will contact the
guest to know the details of
the visitor of arriving time.
£300-£400
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TECHNOLOGY Prepare a list of new
technology which is essential
in the hotel. According to
revenue brought them one by
one.
£10000-£15000
GIFT VOUCHER A guest has to buy from hotel
to give another one as a gift. It
has some limitation over a
people used only once and a
defined time period.
£200-£270
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