Business Development Strategies for Verdant Leisure Limited

Desklib provides past papers and solved assignments. This report analyzes Verdant Leisure's business and proposes strategies for growth.

Small business enterprises

Table of Contents
Introduction......................................................................................................................................1
Task 1...............................................................................................................................................2
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.......................................2
1.2 Carry out an analysis of the business using comparative measures of performance.............3
2.1Recommend with justification, appropriate actions to overcome the identified weaknesses
in the business..............................................................................................................................5
2.2 Analyse ways in which existing performance could be maintained and strengthened..........6
2.3 Recommend with justification, new areas in which the business could be expanded...........6
Task 3...............................................................................................................................................7
3.1 Produce an assessment of existing business objectives and plans.........................................7
3.2 Revise plans to incorporate appropriate changes...................................................................8
IT department: IT department needs to launch effective IT systems and technologies to
organize marketing campaigns to promote the business at a large scale globally.......................9
3.3 Prepare an action plan to implement the changes..................................................................9
Task 4.............................................................................................................................................12
4.1 Report on the impact of the proposed changes on the business and its personnel..............12
4.2 Plan how the changes will be managed in the business.......................................................12
4.3 Monitor improvement in the performance of the business over a given timescale.............13
Conclusion.....................................................................................................................................15
References......................................................................................................................................17

LIST OF FIGURES
Figure 1: Financial summary of Verdant Leisure Limited..............................................................3
Figure 2: Turnover of Verdant Leisure Limited..............................................................................4
Figure 3: Comparative performance of Verdant Leisure Limited...................................................5

List of tables
Table 1: Action Plan........................................................................................................................9

Introduction
The present report has identified the strength and weaknesses of Verdant Leisure Limited by
identifying its structure, system, processes and goals. Verdant Leisure Limited is a private
organisation which is a holiday park operator in the UK. It offer hospitality services with the
help of holiday homes, parks and lodges across the Scotland, Durham, and Northumberland. The
report has examined the preset financial report of the organisation, on the basis of which
necessary changes are suggested that can strengthen its current market position and improve its
future growth strategies.
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Task 1
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.
Name of the organisation
Verdant Leisure Limited is the organisation selected for the present report which is a hospitality
organisation that offers its services and products within the UK.
Organisation size and structure
A management buy-in of Dunham leisure limited, the organisation was founded in 2010. The
gradual growth of Verdant Leisure Limited and hard work of its management has to lead to the
purchase of various holiday parks, like, Viewfield Manor Leisure Park in 2011, and in 2012,
Riverside Leisure Park (Overview of Verdant Leisure, 2019). The CEO of the organisation is
Graham Hodgson who is skilled and talented in managing the organisation that results in more
than 3000 privately owned lodges, holiday lettings, and holiday homes.
Mission and goal of Verdant Leisure Limited
The organisation provides holiday services to its customers across Northumberland, Durham,
and Scotland. The mission of Verdant Leisure Limited is to offer perfect and amazing
environment for its customers so that they can spend their precious time on their holidays
(Verdant Leisure, 2019). The goal of the organisation is to acquire more parks and holiday
pitches to offer best quality hospitality services to its customers with a better experience.
Strengths
• It offers the most beautiful places of holidays for the customers and their family
• Good and skilled investors support the growth of the organisation.
• Deliver best hospitality services to the customers in the UK
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• Provide a range of hospitality services at affordable rates
Weaknesses:
• Lack of brand awareness among consumers.
• Limited resources and employees
• Limited areas of operations (Facts about Verdant Leisure, 2019).
1.2 Carry out an analysis of the business using comparative measures of performance.
According to the financial statement of 2016 of Verdant Leisure Limited, the total current
liabilities of the organisation are £3,841,000 while total current assets are £18,255,000. In
addition, the working capital is figured out at £4,788,000 at the end of 2016 which is £ 2043,000
more than the working capital recorded in the previous year of 2015 (Facts about Verdant
Leisure, 2019).
Figure 1: Financial summary of Verdant Leisure Limited
(Source: https://uk.globaldatabase.com)
Below graph shows the turnover of Verdant Leisure Limited which was very low in 2012, i.e.,
which was very low in 2012, i.e., 8500,000 which was very low in 2012, i.e., 8500,000 £8500,
000, however, the efforts of management and availability of quality hospitality services to the
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customers leads gradual increase in the turnover of organisation that reach between £10,000,000
to 10,500,000 in 2016.
Figure 2: Turnover of Verdant Leisure Limited
(Source: https://uk.globaldatabase.com)
The below graph shows the comparative analysis of the growth of Verdant Leisure Limited since
2014 to 2018 in terms of cash, net worth, total current assets, and total current liabilities. Net
worth is increasing with a gradual speed from £10 million in 2014 to £ 19 million in 2018. Also,
total current assets of the organisation also increase from £4 million in 2014 to £14 million in
2018 (Key financial information on Verdant Leisure, 2018). This shows that the holiday services,
park locations, luxury lodge, and other services of Verdant Leisure Limited is aspired by its most
of the customers that contribute in increased sales profitability and brand recognition.
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Figure 3: Comparative performance of Verdant Leisure Limited
(Source: https://companycheck.co.uk)
2.1Recommend with justification, appropriate actions to overcome the identified weaknesses in
the business
From the above analysis, the Verdant Leisure Limited has a wide scope of growth; however, its
weakness hinders the growth and success in the hospitality market. Following are the required
actions to overcome the weaknesses:
Innovative marketing techniques: People are more attracted to innovative and unique promotion
methods, and hence, this may act as a growth platform for Verdant Leisure Limited. For
example, sponsoring various sports, and other events promote the organisation to a great extent.
In addition, Verdant Leisure Limited can offer various discounts, and other lucrative offers on its
holiday services to attract a large number of customers (Burchell et al., 2013).
Social Media: Social media and internet may boost the growth and sales of the organisation due
to t large number of online users. Presence of Verdant Leisure Limited on social media helps it to
interact with a large number of customers across the world.
Agency Relationship: Travel agents are well known of the areas in which they operate, and
therefore they can highly support the hospitality organisation in enhancing their customer base
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an brand recognition. Verdant Leisure Limited can enter into contracts with such agents that can
offer its services and products to the customers according to their demand (Lee et al., 2013).
2.2 Analyse ways in which existing performance could be maintained and strengthened
Verdant Leisure Limited has gained a good customer base and profitability in a short span of
time. However, to strengthen the present performance, the organisation is required to
differentiate its hospitality services and products that also contribute to the expansion of the
business. For example, engaging in social events to influence the mindset of customers will help
the organisation to reach a large number of audiences (Law et al., 2014). In addition, Verdant
Leisure Limited is also required to strengthen its relationship with its existing customers that can
be done by getting their feedback on their holiday spending. Such feedbacks will support the
organisation to improve the lacking areas and ensure more satisfaction to the customers.
The team of Verdant Leisure Limited is skilled and qualified; however, with the increasing trend
of holiday services, it is required to employ more human resources so that it can better interact
with its customers and fulfil their requirements as per their demand. Verdant Leisure Limited is
required to scale up its business and acquire more parks and holiday lodges to offer best services
to its customers that satisfy them in term of quality and proficiency.
Nowadays, people are technology savvy, and therefore, Verdant Leisure Limited is required to
introduce the latest technologies in its business practices (Schuckert et al., 2015). For example,
recognition technology, chatbots, and artificial intelligence at holiday homes, holiday lodges, and
parks of organisation can highly improve its present services that lead to improved brand value
with enhanced customer’s satisfaction.
2.3 Recommend with justification, new areas in which the business could be expanded.
Verdant Leisure Limited is not only required to improve its present business practices and
competitive position but also it requires identifying new areas of investment so that it can grab
high market share in the hospitality industry. Following are the suggestions for business
expansion strategy of Verdant Leisure Limited:
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Merger and Acquisition: Acquisition of and merger with offers wide market opportunities to the
organisation along with combined resources that support a highly competitive position in the
market (Anderson et al., 2013). Hence, Verdant Leisure Limited can find a reliable hospitality
organisation with which it can merger or acquired by to grab growth opportunities in terms of
high cash flows, revenue and customer base.
Tie up with other hospitality businesses: Verdant Leisure Limited can tie up with other
restaurant chains and hospitality businesses to expand its hospitality services. The organisation is
committed to its customers in terms of quality parks, lodges and homes for their holidays; hence,
it can tie up with transportation providers to offer more enhanced, comfortable and quality
services to their customers.
Diversification: Verdant Leisure Limited can also move to different market segments to expand
its business on a wide scale. For example, the organisation can open gym or spa services at its
holiday homes, parks, and lodges to offer more comfort and luxury services to its customers at
their holidays (Dei Mensah and Mensah, 2013).
Task 3
3.1 Produce an assessment of existing business objectives and plans.
It is the main objective of the Verdant Leisure to expand its business all over the world in
minimum time duration. There are mentioned below some missions of the Verdant Leisure:
• Effectively implement business modules and techniques for maintaining the sustainable
growth of the business.
• Attracting customers globally and enhance the customer base.
• Control the performance of employees to maximising their efforts and dedication
towards accomplishing business goals (Li et al., 2013).
Business objectives the Verdant Leisure:
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• To increase the overall performance, productivity and profitability of the business
• To design and develop products or services as per customer taste and expectations
• To retain existing customers and develop a new customer base
There are numbers of businesses and stakeholders that show their interest to invest in the
Verdant Leisure business. Different new sectors of people are connected with the Verdant
Leisure and all need to conduct active advertising through an effective medium such as social
media campaigns to promote business. There is a huge opportunity for the organisation to
enhance its customer base and to look to expand its business globally through online trading in
many countries (Burns and Dewhurst, 2016). Execution of the marketing plan and techniques
will only be effective if the organisation is up to date and producing and delivering products or
services as per customer needs. It is also essential to make an effective plan to allocate financial
as well as other resources properly and optimally for growing business because one wrong
investment might impact business growth.
3.2 Revise plans to incorporate appropriate changes.
As per the business plan of the Verdant Leisure limited, there are given below some areas where
there will be needed to incorporate appropriate changes.
Operations management: Verdant Leisure needs to produce and provide numbers of products or
services and redesign the business operations for ensuring effective operations and management.
Therefore, Verdant Leisure needs to hire experienced and skilled employees who will perform
their work as per set objective of the business (Mok et al.,2013).
HR department: Verdant Leisure have both experienced as well as fresher employees, so the HR
department in the organization needs to conducts training programmes for developing skills of
fresher as well experienced employees who contribute effectively in achieving business
objectives.
Marketing department: The organization is consist of aggressive employees or workforce, but
sometimes they lack enthusiasm, so the top authorities need to control and monitor the
performance of marketing teams for ensuring their maximum contribution in the business
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