Small Business Enterprise Analysis Report: St. David's Hotel

This report provides a comprehensive analysis of St. David's Hotel, a small business enterprise in the hospitality sector. It begins with an introduction to small business enterprises and their role in economic development, followed by a detailed profile of St. David's Hotel, including its size, structure, mission, goals, and objectives. The report then assesses the hotel's strengths and weaknesses, supported by an analysis of its financial performance using comparative measures and ratios. The analysis extends to identifying and addressing weaknesses through strategic actions, including government support, improved management, and customer complaint management. The report also explores ways to maintain and strengthen existing performance, recommending market analysis, customer feedback integration, and employee empowerment. Furthermore, it suggests new areas for business expansion using the Ansoff matrix, considering market penetration, product development, and market development strategies. The report concludes with an assessment of existing business objectives and plans, along with recommendations for revisions and action plans to implement changes. Finally, it reports on the potential impact of proposed changes on the business and its personnel, and outlines a plan to manage these changes and monitor performance improvements over a given timescale. The report emphasizes practical strategies and frameworks to enhance the hotel's performance and achieve its business goals.

Small business
enterprise

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Produce a profile of a selected small business Organisation............................................3
1.2 Carry out an analysis of the business using comparative measures of performance........4
TASK 2............................................................................................................................................4
2.1 Appropriate actions to overcome the identified weaknesses in the business...................4
2.2 Analyse ways in which existing performance could be maintained and strengthened .. .5
2.3 Recommend with justification, new areas in which the business could be expanded.....6
TASK 3............................................................................................................................................6
3.1 Produce an assessment of existing business objectives and plans...................................6
3.2 Revise plans to incorporate appropriate changes.............................................................7
3.3 Prepare an action plan to implement the changes............................................................8
TASK 4............................................................................................................................................9
4.1 Report on the impact of the proposed changes on the business and its personnel ..........9
4.2 Plan how to manage these proposed changes at St. David's hotel...................................9
4.3 Monitor improvement in the performance of the business over a given timescale........10
CONCLUSION..............................................................................................................................11
.......................................................................................................................................................11
REFERENCES .............................................................................................................................13

INTRODUCTION
Small business enterprises are those which is owned, operated and controlled by one or
more individuals. These are helpful in supporting economic development in countries(Bridge and
O'Neil, 2012). These enterprises helps to create employment opportunities. The chosen
hospitality organisation is St. David's Hotels which is 2 star hotel in London, UK. It offers food
and accommodation facilities to the travellers. This project discusses about the size and structure
of the respective hotel as well as identifies its strengths and weakness. Along with it also
determines the actions to overcome the identified weakness with the help of the proper action
plan to achieve business objectives and also monitors the improvement in the performance of the
business over a given time period.
TASK 1
1.1 Produce a profile of a selected small business Organisation.
Small business enterprises refers to those entities which have less than 10 million
turnovers and also have 50 employees who work for achieving goals in an appropriate manner.
The following mentioned points represents the whole scenario of the organisation.
Size- Number of employees working in the respective hotel is all about 40 in number
which are working dedicatedly to expand its operations in future.
Type- St. David is a small hospitality organisation which provide food and lodging
facilities to he travellers.
Structure- Every hotel whether it is big or small needs an organisational structure.
Respective hotel follows flat organisational structure with minimum level of management and
administration . They generally have general manager and assistant manager for managing the
food and beverage as well as accommodation facilities for the tourist (Schape and et. al., 2014).
Mission- Its mission is to exceed guest expectations and to inspire and motivate
employee's for the promotion of excellence and future development.
Goals and objectives- The major goals and objectives of st. David hotel is to provide
quality service to their customers ensuring cleanliness and high exceptional value for the price to
their potential customers which help them to expand their services and target more tourist.
Strengths and weakness
Strengths

 It creates employment opportunities for the individuals from lower class families.
 They don't have to spend more on marketing campaigns and advertisements.
 It attracts families from both lower and middle class segments to take advantage of the
services offered.
Weaknesses
 Lack of proper administration and management process within an organisation.
 Lack of proper funds which creates problem in providing standard services(Storey,
2016).
 Problems in handling customer complaints which dissatisfies tourist.
1.2 Carry out an analysis of the business using comparative measures of performance
The statistic shows the median profit made by small and medium enterprises(SME) in the
united kingdom from the year 2017-2018, by enterprise size. The larger the enterprises were in
terms of number of employees where larger the amounts of profit generated. When considering
all the SMEs together the median profit made was 8 thousand British pounds in 2017. The
average amount of profit that was generated over the following years from all UK SMEs in 2017
and 2018 was 9 thousand British pounds. With the help of this data collected it has been analysed
that small medium enterprise generally employs large number people and also supports in
economic development of the country.
Ratio 2016 2017 2018
Return on Equity
% 88.29 30.19 44.41
Current Ratio 0.65 0.46 0.46
Quick Ratio 0.49 0.4 0.42
Net Margin % 5.93 4.57 5.99
From the above financial ratios, it can be easily interpreted that ST. David hotel have
attained strong financial position from last three years. The profit margin of ST. David hotel in
year 20156 is 5.93 which goes down in the year 2017 but later on it rapidly increases in the year
2018 which clearly shows that the company is attained strong financial position in the
competitive market.

M1. Apply effective approaches to study and research the various small and medium hospitality
businesses
10 Million turnovers with 50 employees, working for food and lodging facilities on an
organizational structure, mission to exceed guest expectation and ensure their customers for best
services. Services offered to every class and creates employment opportunity are its strengths.
Lack of fund faces as weakness. This methodological approach will assist the company to
analyse its performance with those of competitors.
D1 you will have evaluated a range of performance measures and their strengths and the
weaknesses
In order to check type of service provided there, hospitality business should should check
quality control as well as customers feedbacks should be taken in order to known their attitude
towards the quality of service provided. It has a wider strength as it enables the company to
improve their service according to customer needs and the weakness is it requires huge cost for
the company to satisfy need of every individual.
TASK 2
2.1 Appropriate actions to overcome the identified weaknesses in the business
Their are different measures which help in overcoming the weakness as under-
 Support from the government- Government of UK should provide funds and other
facilities to small business enterprise by offering them loans at reasonable rates. This
would help them in providing better quality services to the travellers and satisfies them
and enhance brand image in the market.
 Proper administration and management- Manager at the respective hotel should
should plan and organise various types of ideas and suggestions for the proper
management of all the all the activities related to accommodation and food and beverage
department (Burns, 2010.). This activity helps in gaining profit as well as proper
management of activities to reduce hurdles in achieving organisational profit and
customer satisfaction.
 Record and monitoring of customer complaints- Manager at the respective hotel
should properly concentrate on the feedbacks as well as the customer complaints which

helps in finding the gap between the needs and expectation of the customer which helps
in properly resolving the issue.
The model used to overcome the weakness identified is SWOT analysis -
The weakness can be resolved by identifying the opportunities as when there will be
proper management and availability of funds it will be able to provide more standard quality of
services and hence attracts large number of customers as well as able to expand business in
future. It can also choose large areas for their set up and attracts more tourist(BlackburnHart and
Wainwrigh, 2013). The main opportunities for the small business is to provide such services
which attracts both the middle and lower class people which enhances image in the market.
2.2 Analyse ways in which existing performance could be maintained and strengthened
Weaknesses addressed by the hotel St. david are lack of proper administration an management,
and the lack of proper funds which affects the smooth operation of performance or work.Their
are different ways in which existing performance can be maintained and strengthened in
respective hotel-
 St. David hotel need to analyse the whole market area and the actions of the competitors
which will help them in formulation of plans and actions in appropriate manner to attract
large customer base.
 With the help of customer feedbacks it helps to identify their main areas of attraction for
the customer as well as allows more improvement in concerned areas to maintain the
existing performance.
 Participative decision making encourages employees for giving their best performance in
the respective hotel and maintains good will in the market. Proper delegation of authority
and responsibility eliminates conflicts and misunderstanding within organisation and
maintains standardised performance in the hotel(Stokes, Wilson and Wilson, 2010).
 All the employees should be monitored and evaluated with the help of performance
appraisal which helps in determining the performance of individual workforce and help to
remove barriers or hurdles in employees efficiency of doing work.
2.3 Recommend with justification, new areas in which the business could be expanded.
With the help of Ansoff matrix respective hotel can identify the area to expand the
business operation. It is a four dimensional matrix which reflect strategies in relation to
expansion and growth. The four categories are as follows-

 Market penetration- This strategy is adopted by the business to increase its sales.
Manager at the st. David's hotel can introduce new services of booking online foods, to
attract more customers towards the hotel. But, this strategy would work later with the
hotel as large amount of investment is needed to make the strategy successful. Product development- Here, the st. David hotel can modify its product lines for attracting
and satisfying customers (Malhotra andTemponi, 2010). The new services in the hotel
could be free Wi-Fi zone as well as new recipes as per demand of customer. This will
increase the cost of investment but will allow the business to grow and succeed. Diversification- Here the business normally diversify their product lines in order to
manage the profit as well as losses. St. David's hotel is not in the condition to diversify
their business.
 Market development- In this strategy it assists in increasing the profit of the business by
opening a new enterprise in the large market. This is not suitable for the cited firm as it
will require high level of investment.
M2 Identify and apply relevant theories to apply to analyse performance and take appropriate
action
With the help of Ans off matrix it assist the respective company to identify the area of
expanding business operations as it assist the company in properly identifying its diversification
area and therefore develops the market accordingly. This matrix also assist the company in
developing the the market and catering customer needs.
D2 planned, managed, and organised a number of activities successfully in carrying out the
above tasks.
Participative decision making encourages employees within the employees for giving
their best performance l and maintains good will in the market. Proper delegation of authority
and responsibility eliminates conflicts and misunderstanding within organisation and maintains
standardised performance in the hotel. Therefore proper communication should be maintained
within the hotel so as to increase effectiveness in its performance.

TASK 3
3.1 Produce an assessment of existing business objectives and plans.
Plans are made by the business organisations to achieve their business goals and
objectives. The existing plans and objectives for the small hotel is done in the following way-
Business objective- The main objective of the hotel is to attract more customers with
their superior quality service. Hence, increasing the profit and establish a good brand image in
the market. Setting of objectives help the St. David hotel in assisting direction to the employees
regarding performance of work which help them in accomplishing the goals which is required for
business growth and success(Down, 2010). The major objectives is to open more hotel in other
location of UK, under the period of 2 years. Along with this it wants to increase its market share
by 12% in 2 years. This objective will assist the company to target more customers and
increase goodwill in the market and will attain maximum profitability in upcoming 2 years.
Plans- There are certain plans made by the business which involves effective decision
making by all its employees. For achieving the objective hotel has made certain plans such as-
 Providing standard services to all the customers.
 Taking record of feedback of customers and making appropriate actions to remove the
problems and making customer's satisfied.
 Proper levels of management are formed in order to communicate information to all staff
members.
Company has made certain plans which will helps the hotel to improve their services moreover
helps in customer retention and employee satisfaction within the company.
3.2 Revise plans to incorporate appropriate changes
In order to overcome the weakness of existing business plan, revise the plans for the hotel
accordingly. Various elements are as follows-
 Strategy- In order to formulate the strategy St. david hotel should consider all its
business operation areas such as finance, marketing and operation. Marketing strategies
are very important for the organisation as it promotes the services of hotel by proving the
online reach. It is the responsibility of the manager to control the performance of staff
which helps in reaching goal. Ensure motivation and controlling the performance of the

staff is the part of strategy formulation for the respective hotel. This strategy helps the
hotel in fulfilling business objectives.
 Structure- Proper hierarchical structure should be defined and communicated to all the
staff members within the respective hotel to know the information flows in the
organisation. Their should be participative decision making involving all the staff
members which provides them sense of accomplishment and will increase the motivation
level(Gronum, Verreynne and Kastelle, 2012). Hotel has made plans to follow proper
hierarchical structure in the level of management to communicate information properly
and achieve business objective.
 Skills- These are very important in performing the task at the hotel. Appropriate training
should be given to the employees which will add value to their work and high service
quality to its customers. Plans should be made to provide training to employees for
handling customers effectively.
 Staffs- These are the members which are responsible for superior quality of service
which differentiates with performance of employees as with their competitors. Manager
at St. David's hotel should provide proper direction to its employees in achieving the set
targets. Staff at the hotel should be treated properly to makes them feel motivated in
performing its work and help the hotel to achieve its business objectives.
With the help of these changes in plans it will help hotel to achieve business objectives.
Moreover for this promotion through advertisements and different types of campaigns programs
can be conducted in a large scale. Another essential plan for hotel can be give more and more
discount and affordable rates to guests so that they can have high quality services in minimum
prices. This will also lead to popularity of hotel and they will hold a good reputation and place
within competitive market place.
3.3 Prepare an action plan to implement the changes.
When changes are implemented in any organisation it makes the employees highly
resistant as feel insecure with the changes in the hotel. Changes are required within an
organisation at every level and are natural thus firms need to create plans so that they can easily
adapt those changes without disturbing operations of business. Action plans are essential tools
through which enterprises can implement changes coming in policies and plans which will also

help in achieving goals and objectives of a business effectively and efficiently. All long as well
as short term goals of a business must be identified so that business have smooth functioning of
its operations. This table shows the action plan to effectively implement the changes in ST.
David Hotel.
Action plan should be taken Requirements Time duration
Advertisements and
promotions
These are required for making
the customer aware about the
hotel an take the benefit
accordingly.
These should be made
especially at the time of festive
season. In includes almost 2-3
months.
Hierarchical system of
management
This is highly required as
employees knows to whom
they are accountable and it
generates proper flow of
information and avoids
miscommunication between
employees and staff.
45 days are required for the
proper manage and control of
management in hotel.
Discounts and offers to
customers
This is required to attract
customers on a large scale. As
potential who are regular in
nature should be provided with
special in order to make them
feel important.
These are given to the
potential customers or during
festive season to attract Large
no. of customers.
M3 Appropriate structure and approach to develop and present the plan
In order to develop the plan company manager has used the McKinsey’s 7S MODEL
which defines strategy, skills, staff and structure which allows employees within the organisation
to work properly according to the requirement in hotel. This assist the employees within the
organisation to work properly and provides better services to its customers.
4.1 Report on the impact of the proposed changes on the business and its personnel
Changes are inevitable part of the organisation. The major drawback of the respective
hotel is to manage large number of customers suddenly. This would require changes in structure

and management of the hotel to be flexible in its performance.. Changes always creates positive
and negative impacts on the company growth and development which are as follows-
Positive impact- Changes in leadership style from autocratic to participative will
increase the motivation of employees and will also reflect the level of productivity in the hotel.
Information channel make the staff aware of about their reporting authority and there will be no
misunderstandings in carrying their responsibilities (Goss, 2015). It will also positively benefits
the respective hotel by attaining the large number of customers from the external environment
and provides a aid for competitive advantage.
Negative impact- Their are some issues which posses negative side on implementing the
changes. As some of the staff members in the ST. david hotel will not work according to the
changes and pose resistance in giving their contribution towards change. When the employee
will not contribute to the change it will directly impact the growth and development of the
respective hotel. When the staff members would not accept change they would not be able to
work effectively and attract potential customers and makes the hotel under loose. This will
makes the bad image in the mind of customer and government which will not be funded as well
as will share losses and demotivation of staff members.
4.2 Plan how to manage these proposed changes at St. David's hotel
Proper management and participation of the staff members in decision making helps to
get feedback regarding the changes adopted in the organisation as well as adequate training is
provided to all the employees for managing the change and in order to perform their duties
correctly.
 Change can be properly managed in the organisation by properly evaluation after the
performance of employees as well as checking the record of balance sheet of business
whether it has earned profit or loss after the change has been implemented.
 Change can also be managed by taking or following initiatives to fulfil the plans made
in accordance to achieve the business objectives. Conflict management tools should be
properly implemented to resolve the conflicts arising because of change and make the
employees aware about the benefits of change to mange them effectively.
 Changes can be managed by properly providing appropriate training to its employees
regarding the change adopted which assist the employees to work according to change
adopted and leads to reduction in conflicts.

4.3 Monitor improvement in the performance of the business over a given timescale.
Monitoring the improvements in the performance is needed to track the progress and if
any deviation is found corrective actions are taken to remove the hurdles. Balance scorecard can
be adopted by the St. david hotel which helps in improving strategies and policies and provides
clear picture of present and future performance level. Balance scorecard is an important tool
under performance management which helps in proper strategic planning. For the following
respective hotel balance score card can be prepared in following way-
 Financial stewardship- This will analyse the turnover of the hotel for a minimum 6
months period in order to determine the financial performance, to check whether these
changes are determining the profit or losses in the hotel.
 Customer satisfaction- Feedback from the customers are taken in order to identify the
gap between the service provided as well as their satisfaction. If the changes in the
business are appropriate it will give high satisfaction to its customers.
 Internal business process- By change in the organisational structure at the respective
hotel. It determines the flow of information as well as ensure proper coordination among
the staff members. It also increases the efficiency level (Gilland and Biger, 2012).
 Organisational capacity- The capacity of the respective organisation to identify new
innovative ways of performing business operations. Hotel david has lot of capacity to
perform work with new innovative ideas.
 Performance measures and targets- Performance of the employee can be measured
with the help of performance appraisal which provides clear picture of each workers
performance.
D3 Identify a problem or issue related to managing the change and recommend actions with
justification
Frequent change in the policy and procedures of the company which affects customer to
work in continuously changing process and to handle the dynamic atmosphere is the biggest
problem which organisation faces in order to manage change. This leads to turnover among the
employee because of low job satisfaction. To manage this issue company should adopt
continuous appraisal system which help employees to work efficiently in order to achieve
rewards as well as appropriate training should be provided so as to manage change properly.