Small Business Enterprise Report: Hazlitt's Hotel Analysis

This report provides a comprehensive analysis of Hazlitt's Hotel, a small business enterprise (SBE) located in London, UK. The report begins with an introduction to SBEs, defining their characteristics and importance. It then delves into a detailed profile of Hazlitt's Hotel, outlining its strengths, such as its brand recognition, facilities, and financial condition, and weaknesses, including high research and development costs, pricing issues, and location challenges. The report presents comparative measures of performance through profit and loss accounts, balance sheets, and ratio analysis, evaluating the hotel's financial performance from 2015 to 2016. It further explores actions to overcome the identified weaknesses, including improving communication, managing funds, adjusting pricing strategies, and addressing location concerns. The report also discusses strategies to strengthen and maintain existing performance, such as fostering employee relations, creating a safe environment, and prioritizing customer satisfaction. Finally, the report suggests new areas for business expansion, such as acquiring other hotels to increase revenue and market share. The report concludes with a summary of the findings and recommendations for Hazlitt's Hotel to improve its performance and achieve its goals.

SMALL
BUSINESS
ENTERPRISE

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Business profiles and their strengths or weakness................................................................1
1.2 Comparative measures of performance.................................................................................3
TASK 2............................................................................................................................................4
2.1 Appropriate action to overcomes weakness..........................................................................4
2.2 Different ways which existing performance strengthened and maintained..........................5
2.3 New areas which the company expanded ............................................................................6
TASK 3............................................................................................................................................7
3.1 Business plans and objectives...............................................................................................7
3.2 Revise plan to incorporate changes.......................................................................................9
3.3 Action plan ...........................................................................................................................9
TASK 4 ........................................................................................................................................10
4.1 Changes impact on personal and business..........................................................................10
4.2 Plan to managed changes....................................................................................................11
4.3 Monitor improvements in business performances..............................................................13
CONCLUSION .............................................................................................................................13
REFERENCES..............................................................................................................................15
.......................................................................................................................................................16

INTRODUCTION
SBE are privately owned a small scale business which operate in a limited area where the
number of employees are quite low. It can be includes partnership and sole proprietorship and
corporation also (Small business, 2017). It is defining as a small term and they have many
capability to choose for government support. Small business is also defined in different ways for
examples: sales and output volume, investments and number of workers etc. They have short
term mission and vision because every people believes in achieving more revenue to live their
country in more comfortably. Main purpose of this report to attain high profit and maximise
company sales in an essentials way. This will very important in the term of goals and objectives.
This assignment is based on small business enterprise Hazlitt's Hotel in London, UK. In
this file analysed company profile, strengths and weakness as well as comparative measurement
of performance. There are several ways which company existing performances could be
strengthened among plans and objective will be produce. Plan of the business which is very
important in the incorporate changes are also described in this file. Modification impact on
organisation as well as personal which will be managed in the enterprise. At the last task, Time
scale of the business performance also determined in this assignment.
TASK 1
1.1 Business profiles and their strengths or weakness
Hazlitt's is a small hotel in United Kingdom. The main aim and objectives of company to
provide high product quality and services to the clients (Carter and et. al., 2015). This enterprise
is coming with new plans of decorating rooms and their dining table. This firm rooftop which is
generally used for the photo -shoots.
Profile Description
Company name Hazlitt's Hotel
Owner Douglas Blain and Peter Mckay
Number of rooms in hotel 30 rooms- 24 doubles, 3singles, 1 suite and 2

junior suits
Location 6 Frith Street, Soho Square, United Kingdom,
London and England
Suites 4.0 Star hotel
Phone number [phone]
Facilities  Free Wi- Fi
 laundry facilities
 concierge services
Double room cost £195+ VAT
Breakfast is optional £ 8.95
Payment types Visa, JCB
Website Http://www.hazlittshotel.com/
Above this table show the company appropriate profile which is very important for the clients.
Mentioned hotel also has many strength and weakness which are as follows:
STRENGTH: Regarding to this elements
everyone was aware for the business position
and their product brand.
WEAKNESS: Barriers and obstacles
identification of an industry which is highly
effects the business success and growths
(Durkin and et. al., 2013). There are several
weakness of the firm are as follows:
 Offers many facilities such as Wi-Fi
and discount in breakfast.
 Very fast services with outstanding and
delicious products.
 Music background is very impressive
which is attract high number of the
clients (Cocker and et. al., 2013).
 Research and development cost is high
as well as lengthy investment time
frame.
 There is no E-commerce and
information technology expertise
 Product price is very high
 Some person is known their product

 In this hotel Pets is not allowed.
 Room cost is not high
 Understanding different needs and
demands of the customers.
 Brand recognition
 Patent protection
 Hotel provides luxurious and compacts
accommodation facilities with a
modern design.
 Financial condition is very strong
 Profitable enterprise in United
Kingdom
brand
 company location is one of the major
issue in a profit.
 Improper interaction among the
employees and employers.
 Lack of funds
 lack of Communication
1.2 Comparative measures of performance
Cited hotel is famous in their location because they provide best facilities to the clients
and their target customers (Glover and Kusterer, 2016). There are different ways that business
manager finds their profit and loss.
Profit and loss account in year 30th April 2015 to 2016
2015
£
2016
£
Net Sales 150 260
Cost of Sales 60 150
Gross Profit 90 110
Less: selling and
distributing expenses
20 30
Total profit 70 80
Hazlitt's Hotel balance sheet in year 30th April 2015 to 2016
Year 2016 (value in £) 2017 (value in £)
Fixed assets: 20 10

Current assets:
Prepaid expenses 10 15
Stock 20 30
Cash in hand 5 2
Debtors 15 20
Total 70 77
Liabilities:
Creditors 20 35
Bank overdraft 30 27
Outstanding expenses 20 15
Total 70 77
Ratio analysis of Hazlitt’s Hotel in 2015 to 2016
2015 2016
Profit ratio (NP) = Net Profit/ Net Sales * 100
70 / 150 * 100= 46.67 %
Net profit ratio
= 80/ 260*100= 30.76 %
Gross profit ratio (GP)= Gross revenue / Net
sales * 100
90/150*100= 60%
Gross margin =
110/260*100= 42 %
Liquidity ratio = Current asset – (prepaid
expenses - stock) / Current liabilities
50-(10+20)/ 50= 0.4 times
Quick ratio
= 67- (15+30)/ 50= 0.44 times
Current ratio= Current assets / Current liability
50/50= 1
Current ratio = 50/50= 1
Interpretation:
As per the ratio analysis that define the company position in the year 2015 to 2016. Net
profit ratio and gross profit margin will decrease in the upcoming year. Current ratio is equal in
both years so it is determined the company financial situation is better. Liquidity ratio of the

mentioned hotel which maximise in year 2016 because company current assets and current
liabilities are equal. So the quick margin will increase at 0.4 times.
TASK 2
2.1 Appropriate action to overcomes weakness
There are major problems which is face by the business in their hotel. Weaknesses are
creating the poor condition of the firm. With the help of this element business cannot achieve the
high goals and objectives. In this situation, manager play important role to reduce the barrios as
well as obstacles which are present in this sector. Research and development cost is very high it
is a main weakness of this business (Hassard and Pym, 2012). So it is very important for the
supervisor to decrease present obstacles and barriers. There are several recommendations of
overcomes helplessness are as follows: Communication: It is defining the initial issues which is
faced by the Hazlitt's in their hotel. This will also determine the interaction issue among the
higher authority and employees which creates confusion. It is highly influences the restaurant
environment in an effective and efficient manner. It is significant for the for the top and middle
level management to keep the mutual understanding in different managers and their workers by
implementing several sessions, seminars, programmes and games. It gives the flexible time
duration for attracting and entertaining the customers. From the same, it is a motivational
approach for employees because they are happy to achieve their professional value. It is very
essentials and beneficial for business ans personal to attain high goals and objectives.
Minimum fund: It is necessary for every organisation such as small, large and medium because
whole activities are executed with the assist of capital. Hence, Hazlitt's Hotel manager needed to
attain sufficient capital. They are capable to maximise their productivity and product sales
(Haugh, 2012). Therefore, it is critical for the manager to create high profit and try to reduce the
uncertainty and losses by handling whole activities in an effective manner.
Pricing problem: It is an another problem which is faced by the cited hotel in their product and
accommodation facilities. It is a one of the main reason because in this company not earn
minimum revenue. Current day, customers wants quality products to satisfy their needs so that
they ready to pay high price of the items. Company accommodation price also high so it is very
effective the low income group. Hence, manger are capable to decrease these problems by
applying seeking pricing strategies.

Location issue: This is also another weakness which is present in the business performance.
Their needs to provide complete aid on location. From the same, every person select peaceful &
healthy surrounding. Hence, superior required to work on their location. They should be choose
silent areas because many person need quiet place.
2.2 Different ways which existing performance strengthened and maintained
Performance of workers enhancement is very important for the business growth and
success. Because in this, whole activities which is controlled by labours and managers. Hazlitt's
is a small scale in United kingdom and London (Henrekson and Sanandaji, 2014). They main
motive and purpose are to earn large revenue by fulfilling millions of buyers demands and needs
in an essentials manner. It is essentials for the business to keep the existing performance by
evaluating different events and plans which are described as below:
Sustaining workers relations: One of the main and foremost methods of developing the several
programmes. It is best technique's to generate common understanding in between employees and
employers as well as various members. From the same they are happy and they can work as a
group in order to achieve success and growth.
Creation of safety and healthy surrounding: Other important method is creating the safety and
healthy environment. It is very essential for motivating workers towards their personal as well as
professional values (Karlan and Valdivia, 2011). So in this employees and company performance
could be improved. Mentioned hotel manager is capable and they have limited fund to develop
the best structure in their business. Therefore, they provide best facility related to the
accommodation such as soft bed.
Always try to give large satisfactions to buyers : It is very essentials for mentioned hotel to use
best quality products and services. So in this buyers earn maximum satisfaction from the
business. Cited company has many professional workers and they are capable to give effective
and safety services to the buyers.
Prioritize and Organise: This is an another important factor which is used by the Hazlitt's hotel.
In this way they manager all business operation success and growth in order to oriented success.
It is necessary to priorities and organise various activity. So it can not field to each and every
person. It is one of the main and effective e technique to complete all work in a specific time
duration.

Appraisal sessions: It is another and significant tools because in this, company manger conduct
different appreciation events. From the same, employees encouraged their job duty which is
essentials to maintain and enhance their performance.
2.3 New areas which the company expanded
There are several areas where mentioned hotel expand their business in an essentials way.
It is very important for the company success and growth. Because in this they can achieve long
term goals and objectives.
Acquiring other hotel: It is define the quickest route to expansion and growth. Acquiring and
merging with another company can figuratively multiple the size of firm overnight (Kaushik and
et. al., 2012). Growing business revenue and sale in an exponentially in order to attain high
growth. It is very important factor where business highly expand their product in business.
Tap into new delivery and sales channels: Internet is one of the best examples of different
channels which is important for the small business. Hazlitt's Hotel is SBE in United kingdom, so
they should be use different communication channels. This methods is very essentials to provide
important information to the buyers such as discount of accommodation facilities. From the same
they should use advertisement and promotion mix.
Target new buyers markets: Mentioned business should try to target their marketing and sales
efforts to buyers which are present in this market. Hence, it is mostly based on location, age,
gender as well as psychographics. It includes values, interests and activities in order to increase
product sales.
Develop dynamics and diverse partnership: As a company manager to evolve their businesses
strength to develop current position in market. They are looking as a partners with another that
can firm enhance or complement their self abilities. Handler well know the partnership
importance so they support industries access innovative buyers and emerging different
technologies (Lautenschläger and Haase, 2011). Cited hotel should look external for new plans
which is essentials to develop business success and growth.
Recent trends: They required to consider the customers as well as community choice regarding
the product and accommodation. Preference and taste of the hotel breakfast goods changes
regarding the time. From the same they acquire attracted about innovative plan and activities.
Need of the business to expand their firm as the target and potentials buyers needs and wants.

TASK 3
3.1 Business plans and objectives
One of the indispensable way of strategies which is follows by every business to achieve
high goals and objectives in a minimum time period. Foremost and first values of an industry to
increase their revenue. Plan is very important for the business to create high targets in this
markets (Luckham, 2011). Business plan includes vision, mission, objectives, goals and core
competences etc. thus, precise and accurate subjective of a company is described are:
“Mission of Hazlitt's hotel to generate a team of corporate hotels, which are friendly and
efficient as well as environmentally sensitive”.
Goals of mentioned business: The firm has several goals which is representing its vision are as
follows:
Vision of staff:
 Help the team members
 Main motive of the employees is to get fair remuneration.
 Work in safety and healthy surrounding
 They try to generate a friendly link with their employees and staff members buy helping
each and every while executing their role and responsibilities regarding job.
 Improvement in their different skills such as learning and communication Desired to fair awards, appreciation, remuneration etc.
Client vision:
 Maintain an desirable buyers list
 Clients expectation are exceeded
 To provide quality products and healthy services
 Poverty in hygiene products with better quality, so it is basic priority for many buyers
(Martin and et. al., 2013).
 Customers Demand is positive surrounding Correct determination in preference and requires of national as well as international
customers.
Share holder vision:
 Their gratification
 Increase profit in investing more.

 Maintain Long term relation as well as contract
 Disclosers of complete inflation
 One of the main objective of stockholder which is focus on share and growth in
marketplace. Focussing on promotion and advertisement channel for promoting hotel brand in different
locations.
Business plan: Mentioned company reviewed their execution verses their SMART targets. This
objective determined the specific, measurement, achievable, realistic and time bounded etc. it is
very important for the company to attain high growth and success in a minimum time period.
This targets are fix in the every July months (Mason and et. al., 2011). It is essentials part of the
business because it identify the customer preference and taste which is fulfil by the cited hotel
manger in an essential manner. Plan is consider motivation which is apply by the Hazlitt's in
their firm. This technique highlight the every members career goal and strength. Another, it is
measure the previous years financial values in link to employees career desire.
3.2 Revise plan to incorporate changes
Business plan is very important for the every business to achieve high growth and
development in market. Company face many difficult problems related the conflict and
minimum capital. In this manager is capable to choose different internal and external sources.
However plans can be revised in time to time in relation to incorporate modification in the
position of market as well as business situation (Nabi and Liñán, 2011). According to the
venture recommendation, market research is essentials part of every industry to makes alteration
in its thought to accommodate the equal.
In the fact of incorporate changes that business primary improve their epistemology to
conduct the research and development programs. Cited hotel has to identified the different facts,
it means of collecting necessary information as well as measure the several outcomes. The
manger of the firm to develop the best programmes against the incorporate modification. So the
company should be earn high profit and increase productivity in marketplace. Changes are
determine the issues which are present in business. From the same, revision process is
significant because in this employer get know regarding hidden barriers and problems which
generate issue while achieving fix and target goals. One of the main reason is to drive actual plan
according buyers demand and environment changes. Another, they required to includes various

macro and micro sources. Judgements making activity is very essentials in this situation to
reduce the obstacles and losses (Ploskonosova, 2012). After, mentioned hotel trying to spend
their firm with the support of above points which will determined in above. In this they also
facing different uncertainty in their company, it includes challengers availability such as
“Number one” etc.
3.3 Action plan
Regarding to the below description an organisation required to make best strategy and
plans for formulating whole plan with the support of experiences and specialised people. In this
fact, proper action plan is determined with the assist of research that identify buyers as well as
employees vision and mission. It is very hard to formulate modification which is analysed above
for completing the workers and communities demand.
Task Time
Presenting programmes 2 to 4 days
Revise business ideas 3 to 4 days
Evidences relation with better product quality 2 days
Searching and developing mandatory assets
and resources in aggressive area
3 days
Grouping of challengers commodity 1 to 2 days
Contraction in new location 4 days
Selection of innovative customers 3.5 days
Make Schemes and Smart objectives ½ days
Provide vision and mission to clients and
workers.
3 days
An industry expansion for making alignment
investors.
2 days
Recruit and select knowledgeable prospects
who are experienced in hospitality industry.
1½ days