Business Analysis Report: Brooklands Hotel Performance and Expansion

This report provides a comprehensive analysis of Brooklands Hotel, a small business enterprise in the UK. It begins by profiling the business, identifying its strengths (e.g., innovative products, excellent customer service) and weaknesses (e.g., financial risks, competitive disadvantages). The report then analyzes the hotel's performance using comparative measures, including balance sheets and profit and loss statements from 2015 and 2016. It recommends actions to overcome weaknesses, such as providing training and development, using effective tools, building employee morale, implementing communication channels, and fostering a flexible working environment. The report also discusses how to maintain existing performance by improving service quality, conducting market research, recruiting strong leaders, and building public relations. Finally, it justifies new areas for business expansion, emphasizing the importance of analyzing market factors and leveraging past data to identify opportunities for increased revenue and profit. The report concludes with an assessment of the existing business plan and objectives, revisions to the business plan, and the preparation of an action plan, including the impact of proposed changes and change management strategies.

Small business
enterprises

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Profile of small business and identify its strength and weaknesses......................................1
1.2 Analyse of business using comparative measures of performance.......................................2
TASK 2............................................................................................................................................3
2.1 Recommended actions to overcome from weaknesses.........................................................3
2.2 How to maintain existing performance ................................................................................4
2.3 Justify new areas in which a business could be expanded....................................................5
TASK 3............................................................................................................................................7
3.1 Assessment of existing business plan and objectives...........................................................7
3.2 Revision of a business plan...................................................................................................8
3.3 Prepare an action plan ..........................................................................................................9
TASK 4..........................................................................................................................................10
4.1 Impact of proposed changes on business and its personnel................................................10
4.2 Concept of change management.........................................................................................11
4.3 Monitor performance improvements over a business.........................................................13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
The overall growth and economic condition of a country is depend upon its operating
firms. In UK, there are so many small and medium business enterprises which are able to provide
more than 60% jobs to its people so as to improve their living standard. SME's does not have big
nature and limited functional area; such business entities have wide variety of products and
services. In addition, small enterprises are established in order to deliver something new and
unique to societies for their advancement and betterment. But certain government rules and
regulations can affect its operations and functions in an effective manner (Blenker and et. al.,
2012). Brooklands hotel is the chosen organisation in this present report; it is one of the famous
restaurant in United Kingdom It provides luxurious room services to its guests at best suitable
prices. Apart from this, the report will be describe strength and weaknesses of the given business
entities. It is essential for entrepreneurs to identify some methods in order to overcome from
barriers. There will be monitor some areas in which a firm could expand itself for improving its
market share. In order to implement an action plan, managers have to decide certain objectives
and evaluate the progress of business plan.
TASK 1
1.1 Profile of small business and identify its strength and weaknesses
The growth and vitality of a small business entity is rely upon its services. It is essential
for them to supply qualitative and branded products so as to gain customers' interest. Along with
this, Brooklands hotel is one of the popular SME in UK that provides luxurious dining
experience to its customers. There are over 400 employees are currently working with it.
Although, small business are facing high competition in comparison to large organisations
because there are so many external which can affect market performance of SMEs. Therefore, it
is necessary for management to prepare some effective strategies and plans so as to compete with
outsider competitors (Carraher and Paridon, 2015). The CEO of Brooklands Hotel needs to
create a market research so as to know needs and wants to clients. It will be contribute in
improving the potency of their working activities and business operations in a certain time
period. It is essential for small business enterprises to adopt effective tools and techniques so as
make their operations more impressive; this would also helps to achieve goals and objectives in a
very flexible way. The CEO of the refereed organisation need to pay attention in order to
improve employees efficiencies and productivity by conducting certain training programmes.
1

The restaurant delivers luxurious dining facilities to customers. It has well cleaned and
hygienic rooms that gives an attractive living experience to people. It generally organise some
entertainment activities and holiday trips in order to attain and retain guests for long time of
span.
Name : Brooklands Hotel
Address: Brooklands Dr, Weybridge KT13 0SL, UK
Phone: [phone]
Services: Employees are appreciated in very friendly manner to clients. Reception area provides
all relevant information to people. It also provides the facility of gym and spa centre.
Opening times: 8:00 AM to 12PM
Email – [e-mail]
Website – www.roccohotels.co.uk
Strength and weaknesses of Brooklands Hotel: -
STRENGTH WEAKNESSES
 The foremost strength of SMEs as they
provides new and innovative products
to their customers on an average rates.
 Excellent customer services and
attractive solutions.
 Clear niche
 Strong team building capabilities
 Well skilled and qualified staff
members who generates delicious food
item in order to bring more customers
from target market (Gorgievski,
Ascalon and Stephan, 2011).
 Low economic condition and financial
risks
 Competitive disadvantages
 Environmental affects and its strict
rules and regulations.
 Changes in customers' demands and
choices
 Lack of involvement of senior
management which can hinder
employees performance.
 Lack of experienced employees.

2

1.2 Analyse of business using comparative measures of performance
Business performance can be measured through various tools that are enable to monitor
company's performance. By using various performance measures, business owners can analyse
their past and current performance in order to make effective business decisions that are essential
for firm's growth and vitality. It is assistive in measuring the efficiency of past and present years.
Brooklands hotel can used these techniques for comparative measures of performance: -
 Balance sheet
 Profit and loss statement
 Ratio
By using such approaches, it is very facilitate for small business entities to create
effective plans and strategies. Therefore, a look upon business performance of Brooklands hotel
from last 2 years: -
For the year ended 30 April 2015 and 30 April 2016
2015 (£) 2016 (£)
Sales 120000 200000
Cost of good sales 70000 120000
Gross profit 50000 80000
Overheads 5000 8000
Net profit 45000 72000
BALANCE SHEET as at 30 APRIL 2015 and 30 APRIL 2016
Particulars 2015 2016
Fixed assets 30000 40000
Current assets
Stock 10000 15000
Debtors 8000 5000
Bank 3000 0
Total assets 51000 60000
3

Liabilities
Creditors 30000 40000
Bank overdraft 21000 20000
Total liabilities 51000 60000
TASK 2
2.1 Recommended actions to overcome from weaknesses
In this competitive era, there are certain challenges and issues are being faced by business
entities. They can affect market growth and productivity of a commercial enterprise by reducing
the capabilities of its operations. Through which SME's cannot achieve their goals and objectives
in a systematic manner. Therefore, in order to get rid from all weaknesses senior management
have to develop its existing plan and policies. For this purpose, they can also use certain
methods and techniques; this will be help them to gain long term sustainability. Below described
certain actions which can be adopted by Brooklands hotels: - Provide training and development assistance – Entrepreneurs of small businesses needs
to emphasis on rendering some training and educational programmes so as to boost up
their current skills and knowledge (Kitching and Smallbone, 2012). Brooklands hotel has
to continuously organise development programmes which will be support in grooming up
workers' competencies. If staff members have enough capabilities then they can easily
produce better and innovative. It could also improves the overall production level of a
company so as it can easily compete in target market. Using effective tools and techniques – There are numerous tools and techniques which
are accessible to convert weaknesses into strength. For example- Brooklands hotel needs
to organise its all activities and functions by making spread sheets and to do lists. It will
be assistive in completion of all business activities before or on given time schedule.
Hence, if all working operations are fully managed then small business entities can
achieve higher sustainable advantages in the best possible manner. Build employees' morale and confidence – It is also another method in order to get rid
out from all weaknesses and issues. By implementing rewards system, SMEs can easily
4

build workers' confidence and their morale as well so as they can produce in an adequate
way. In order to boost up employees' confidence, managers needs to set particular goals
and objectives for every individual and forces them to finish them before its deadline
(Draycott and Rae, 2011). It also includes the capability to move beyond failures and
mistakes so as to gain better future outcomes.
 Implement communication channels – Effective communication is very much crucial in
order to overcome from all barriers and issues. If there is no interaction between
managers and employees then workers cannot perform effectively. So that Brooklands
hotel has to implement free flow of communication at all level then people can easily
share their ideas and thoughts with each other.
 Build a flexible working environment – In today's busy schedule of life, people wants
some flexibility and reliability in their work. They prefers that business owners are
allowed to choose to shifts as per their comfort. Therefore, flexibility in working time can
also increases productivity and efficiency of employees.
2.2 How to maintain existing performance
It is essential for small business entities to attain and retain high position in target market.
Through which any firm can easily accomplish its goals and objectives in a very proper manner.
Along with this, Brooklands hotel have to maintain its current market performance otherwise,
they will faced high losses and further problems. It is must for managers to create proper vision
and mission which are supportive in order to manage current market position (Van Der Wijst,
2012). Furthermore, if a firm has strong public relations; it ensures long term growth and
success. It is also assistive in managing current performance level of the company. Therefore,
managers are required to developed certain policies so as to achieve high competitive advantage.
In order to make effective business activities and actions, entrepreneurs must focuses on total
quality management and regulate an exhaustive research so as to get better future outcomes.
Below mentioned certain ways through which any firm can maintain its current position: - Improving quality of services – It is very indispensable method in order to maintain
current market share and growth in global environment. As Brooklands hotel supplies its
services in local streets of UK therefore, it needs to make delicious and quality added
products so as to gain customers' interest. Having a wide range of customers is one the
5

greatest tool through which any business can get growth and success from competitive
market. Conduct a market research – Manipulating a marketing research so as to know desires
and requirements of customers will be helpful in order to increase sales and profits of a
firm. Along with this, any firm can easily achieve higher market growth and expansion in
an effective manner. Marketing research will be also accessible in getting information
about competitors' marketing strategies and their. If a firm has proper information about
its rivals then it can easily achieve high market advancement in a proactive way. Recruit strong leaders and managers – An adequate leadership and proper management
is responsible for gaining high volume of productivity. In addition, Brooklands hotel
needs to hire strong persons who have good leadership skills and capable to manage a
team of different people. With the assistance of active leadership and proper management
any firm can gain its goals and objectives in an effective manner (Di Domenico and
Miller, 2012). It will be also assistive in reducing employees' queries and encouraging
them towards working activities.
 Building public relations – By delivering excellent customer services, business
organisations have to maintain healthy and positive relationship with target as well as
potential customers. It can be done through to meet their requirements in the best possible
manner.
2.3 Justify new areas in which a business could be expanded
Small business entities are required to determine certain areas in which they can extend
themselves and generating higher sales revenues and profits. Business owners have to find out
such area and started work upon them. This procedure would maximise and gear up the potency
of operations. Decision makers can take help of past data and financial records so as to analyse
external market factors. There are certain areas in which a firm can expand itself, such as: -
 Limited market growth
 Strategic alliances
 Franchising
 Organic growth
6

(Sources: Areas of business expansion, 2017)
In which, limited market growth is appropriate strategy for Brooklands hotel.
Limited market growth strategy- In order to gain sustainable advantages and high market
growth, small business entities have to adopt limited market growth strategy. This is assistive in
increasing sales and make higher profits of a company. It gives certain methods which are
chosen by companies as per their financial condition and market area. Limited market growth
strategy is classified into four parts, such are described as under: - Market penetration – This business strategies can be endorsed by those small business
which do have large capital but want to reach wide range of customers (Abebe, 2014).
Market penetration strategy is all about selling existing products and services in current
market by using attractive promotion channels. It will be help customers as they can more
information about goods and services of the company. Market development – It also known as market expansion strategy. In market
development strategy, firms wants to sell their products in new market so as to increase
their sales as wel as profitability. Market competition is one of the major reason for
forces small business supply their products in new market areas. It determines new uses
of products. Product development – Brooklands can also extend its business by improving its
products lines or by adding new features in it. In other words, SME's can adopt new
product development strategy so as to know attain more customers from target market.
Now these days, people only wants qualitative and value added; and the concept of new
7
Illustration 1: Limited growth strategy

product development also delivers the same and boost up profitability and sales revenue
of the refereed firm in a certain time period (Hilmersson, 2014).
 Diversification – Limited growth strategy also includes diversification. It refers when a
firm wants to sell its new products in new market in order to gain high sustainable
benefits from competitive market and retain customers interest for long time of span. But
diversification is very risky strategy so that SME's needs to make a proper market
analysis in order to know customers' needs and wants.
Some other strategies through which a firm can expand itself in market: -
 Strategic alliances – It is a good method of explore business area in target market.
Strategic alliance consists, that when two firms are come together by having same
operations for a certain time period. In this, the main objective of the companies is to earn
more market share and profitability.
 Franchising – It refers that business owners of the company gives rights to other party as
they can sell their products by using their brand name or log. For this purpose, franchisor
takes certain amount or fee. It is the good way of promoting business in international
market.
TASK 3
3.1 Assessment of existing business plan and objectives
Every small, medium or large business entity needs an effective business plan for
effective performing in market. A business plan can be developed for long or short term period.
But small business enterprises have to set long term plans and strategies in order to achieve
market growth for long time frame. A business plan is an intermixture of company's vision,
mission, its background, reason behind existence and detail of products and services. Apart from
this, while making a business plan managers have to identify their all resources, i.e. human and
financial so as to run smoothly running activities. Basically it is emphasised on business actions
and operations and what a company will be done in future (Wang and Altinay, 2012).
Furthermore, while making any business plan it is essential for business organisations to create
their objectives what they want to achieve from business plan. This can assure long term market
growth of products and firm will be operated in flexible manner at marketplace.
Below mentioned certain main objectives of Brooklands hotel: -
8

 To succeed economically in order to satisfy firm's stakeholders.
 Fulfilment of all social responsibilities in the best possible manner.
 To gain international as well as domestic goodwill.
 Enhancing the return on investment through human capital by reducing financial risks.
 To align capabilities and behaviour of all employees in order to achieve short term and
long term goals. Increasing the sales and profits by 20% in upcoming next years.
Steps of a business plan: -
 Firstly, managers have to determine the prime aim of their business plan, for which they
are putting such efforts. The reason behind business plan of Brooklands hotel is to deal
with current and future problems. In this perspective, decision makers can also conduct a
market research in order to make effective business plan.
 After identifying the purpose, a working should be developed. It involves the scope of
working activities and firm's operations whether or not they are capable to compete with
external forces in an effective manner. Managers are required to create a list of all actions
so as to gain better outcomes.
 In third stage, decision makers have to collect information through various sources, i.e.
primary and secondary. The gathered information should be analysed as per its natures.
In other words, managers have to examine those factors which will affect their current
market position and performance.
 Afterwards, business owners of Brooklands hotel has to create an effective marketing
strategy in order to get high competitive advantages. This will also guides employees to
work as per the plan (Henrekson and Sanandaji, 2014).
 At last, the overall business plan is implemented within business entity. And
entrepreneurs have to monitor the progress of business plan regularly in order to
determine that work is going in right direction.
3.2 Revision of a business plan
Revision of a business plan consists that identify all of the hidden issues and problems
that is facing by a company. It is done so as to make essential verifications in business plan and
strategies. The current business plan of Brooklands hotel is emphasised on its market
advancement and expansion. But, it is not enough to run business activities smoothly; there are
9

certain environmental factors which might be affected business performance. Therefore, it is
necessary for managers to considers all these elements while creating and executing a business
plan. Along with this, Brooklands hotels have to analyse future risks and uncertainties in order to
ensure future market growth and development (Duberley and Carrigan, 2013.). Revision of a
business plan also involves upcoming opportunities which will be assistive in accomplishing
firm's goals and objectives.
The business plan of the refereed firm is assistive to cover all necessary components of
growth and success. In addition, modifications in firm's strategies and make them more
sustainable is necessary for management. Furthermore, decision making process of business
entities is also get affected through a business plan because, now managers are capable to take
effective or strong business decisions. It is also assistive in identifying some area in which a
small firm can spread its business activities. Apart from this, the revision of the business plan
also helps managers to modify or upgrade their plan and it also make their functions more
effective. With this assistance, firm can easily accomplish high market growth and success in a
certain time period.
Managers of the refereed firm have to continuously revise their business plan and make
necessary alterations in it. For example- if entrepreneurs wants to improve their production
process so that they need to adopt new machinery and learn its uses to employees. Although, this
gives them new and experience of working. Therefore, it can be said that revision of a business
plan is also assistive in encouraging and motivating staff members towards accomplishing aims
and objectives of the firm in a certain time period (Dickson and Weaver, 2011). Revision also
includes to get rid out from all weaknesses effectively. One of the major weakness of Brooklands
hotel is low sources of finance which can also influence the quality of its services. In this
context, business owners have to identify certain sources where they can extend money, such as-
bank loans, attract shareholders and venture capitalists, creditors etc. In order to attract several
investors, the refereed firm have an impressive business plan.
3.3 Prepare an action plan
An action plan can be described as detailed plan which relates with course of action in
order to reach goals. Determination of aims and objectives is very first stage of action plan; for
example- the prime aim of Brooklands hotel is to become most popular restaurant in UK by
serving tasty and delicious food. Building a healthy and positive relationship with public is one
10