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B+B Belgravia is a BnB hotel facility, which is located in London, and has been in the business for over a 50 years. The main thing which has been consistently good about this hotel, is its service quality, and the location in which it has been located in. this is because the hotel is located near the centre of the city, and is in the vicinity of the most popular destinations in London, like the Buckingham palace. Guests have consistently appreciated the view from the hotel, and also the staff service (Expedia 2019). It must be noted that the main thing which distinguishes this hotel from the rest of its competitors, is the view from the hotel, and the location of the hotel. However, it is suggested that the BnB hotel outsources the fooding services, because guests have consistently complained about the quality of the food which they avail for the price that they pay for it. There are numerous catering services in London, who would rather take up this opportunity, like Zaras and PenniBlack (Squaremeal.co.uk 2019). However, as of now, competitors like Dolphin House are posing serious threats, since they offer a great quality food apart from high quality staff services (Dolphin House 2019)
For an expansion, it is recommended that the hotel should also open up a restaurant in its property, since there are only a moderate number of restaurants in the location (Squaremeal.co.uk 2019). However, for acquiring such a property, more information on the subject is required, which would help to get further insights into whether the idea would be wise, and what changes would be required in the business to make it a successful acquisition.
The main thing which has to be noted in this regard is the fact that the hotel has been doing particularly good in guest reviews about the hotel, if the reviews on food are excluded. This suggests that the hotel has used the locational advantage to its advantage, and has put particular focus on its staffs. This is indicative of the fact that the hotel’s objective is to satisfy customers through good behaviour and service quality, to ensure that customers are pleased enough to return to this hotel. To further simplify this, it can be said that the hotel has been trying to create a distinguishable brand image for itself, through its services. It has paid off so far since the reviews about this hotel has been higher than the average of the competitors in the vicinity.
However, it has to be noted that the main thing which the hotel has to consider to consider marketing itself as a BnB which serves quality food alongside the good staff service which it is known for. This would be able to ensure that the customers get all of their expectations from a hotel, fulfilled from this hotel itself. The objective is to create a perception in the market that besides having high quality interior and staff service, the hotel also provides for a quality experience with food, and therefore, attract more number of customers. It would impact the business plan of the hotel in a way, which would convince them to create a PR team, who would negotiate and maintain relationships with external suppliers, who are caterers in this regard, since the chefs of the hotel have been failing to keep up with the standards expected by the clients.
The main thing which has to be considered while revising such a plan, is finance. This is because it is no wonder that upon the outsourcing of the fooding service, it will cost the hotel more than it did when it had its own chefs and made its own food. This is because external suppliers of services intend on making a profit out of the service which sell to their clients. This is the reason why it can be said that the main difference now would be the fact that now the hotel would only be purchasing the service at a cost, at which it used to sell. This would rather leave the hotel in a rather breakeven point in its service of fooding. However, it must be noted that other costs such as maintaining a kitchen would be eliminated. It must be noted that the main thing which has to be done in this regard, and perhaps the most possible and feasible way of combatting this would be to make sure that the hotel adopts energy saving electrical appliances like LED light bulbs, in order to ensure that some of the energy costs of the hotel is saved, since hiking prices would lead to lower demand. However, it should also be noted that with the improving quality of the services, people would purchase more, and that would lead to a higher revenue.
The first thing that needs to be done to go on with the proposed change, would be to approach Zaras or PenniBlack, with the proposal of taking care of the BnB’s fooding services. In the same week, it has to be noted that the existing staffs who are in the food and beverage department, are served a notice that they are required no more in the BnB, so that they are not paid for any extra days after the service is outsourced. Upon confirmation and negotiation, the hotel must estimate the feasibility of the outsourcing, against the current costs. If it finds that it is not losing out on any revenue, it should proceed with the approach, and if not, it should look for more alternatives, like Penniblack. Upon confirming with a caterer, the hotel should choose an electrical appliance store, and order for the number of energy saving LED bulbs which would be required by them, as replacements to its existing traditional electric bulbs. They must be installed within two weeks of the order. The catering services must be acquired within a month of the initiation of the action, so that they are availed exactly when the existing staffs in the department have left the hotel. Hence, overall, it is supposed to be an activity of one month.
The most obvious impact, as discussed earlier, would be finance. To be more elaborate, the finances would be disrupted from their common flow. That is to say, there would be a more complex allocation of finances, from paying per order to the external suppliers, to paying the newly formed team of PR to look after these suppliers. Also, if the energy saving electrical appliances have to installed, there is a separate finance for all of that too. Therefore, in short, it can be said that the main finance sheet would go under several modifications to give way and accommodate the new change.
Morale of employees is also likely to be affected. It would be justified if some argued that this is a rather unethical strategy to fire off employees for the benefits of the hotel, but the current situation leaves one with few options as good as it. A bond that had been created between the fired staffs and the existing staffs, would eventually be disrupted, giving way to low employee morale (An 2019). This should be taken care of by establishing a good working environment for the existing employees.
Last but not the least, there will be some minor changes in the job roles as well. The can either hire a new team of PR professionals, or it can pick a few potential employees from its existing staff members to take on the responsibility, thereby making some modifications in the existing job roles of a few existing employees.
Firstly, finances could be managed by making sure that expenditure is cut off, which in this case would be to adopt new energy saving electrical appliances throughout the hotel. Cutting down this expenditure would ensure that the new costs incurred as a result of the new proposed changes are well and truly under control, and yield the same amount of profitability for the hotel. Perhaps, if this fails to ensure the desired profitability, or at least retain the previous profitability, the hotel can consider marketing for sales promotion on the food that it delivers. It can keep the USP of a brand new menu and taste, and do sales promotion, by keeping a high base price, and applying discounts and offers to sell at a desired price for the hotel. According to Santini et al. (2015), the very idea of having to pay less attracts more customers than usual.
Secondly, employee morale could be boosted by establishing a good relationship with the employees. Managers/owners could meet up with the employees casually on a regular basis, keeping them together, and content with the management. A possible pay raise could also be done for the existing employees, if that is found to be feasible.
Lastly, regarding the changes in the job roles, it depends on which path the hotel would like to take. If it is a new job role for an existing employee, there should be sufficient training given to that employee, keeping the objectives of the BnB in mind. However, if it is a new team of hires, the only thing which has to be taken care of is nothing but ensuring that candidates are reviewed thoroughly before being hired, and to ensure that they are the perfect fit for the job. After that, they should be introduced to the rest of the staff members of the hotel, to ensure that a proper relationship is built up between them and the existing employees, thereby laying down the foundation for group cohesion which would be highly beneficial to the hotel in the future.
To monitor the benefits of the plans which have been proposed, the hotel must undertake a comparison method. In this, the hotel would first keep a track of the sales and revenue that it has seen in the food and beverage department in the six months, and compare them with the track records of the average revenue gained from the department, prior to the changes. The factor of profitability also has to be considered while reviewing the same. However, it must be noted that an expected outcome would just not be a margin of revenue or profit more than what it used to be. For the complex effort and new policy implementation, an expected outcome would be a minimum increase of 10% in revenue and profits in the department.
However, if this is not accomplished, there are two things which the BnB can consider doing. The first thing is to make sure that they are marketing their new fooding qualities properly, to attract customers. If that is still not achieved despite the marketing efforts, the hotel must look for ways in which it can hire a group of top class chefs, at the same price as the previous ones, and cut down on the extra costs which it had been incurring on the previously outsourced service.
From the above discussion, it can be concluded that the B+B Belgravia has been a highly well reviewed hotel, whose only weakness is poor fooding services due to which, it is suggested that they outsource these catering services to caterers like Zaras or PenniBlack. It is for this reason that the hotel would be going under a range of changes which it has to come up with. First of all, there would be an increase in the costs incurred since the outsourced service would cost more than the previously produced service. Here it is recommended that the hotel rightly adopts energy saving electrical appliances to cut down costs, or do sales promotion to ensure that high revenue is generated. It will also impact employee morale, due to which the hotel must ensure that good relations are maintained with the existing employees, possibly even hiking pays. Lastly, change in job roles can be managed by proper training which are in compliance with the organizational objectives, or hiring the right team of talent. The results will be monitored by ensuring that the revenue has increased by 10% in six months, from the previous average revenue. This business looks highly promising, and the locational advantage, view from the hotel, high quality staff service and the newly found quality food will provide for a maximum utility to any guest for the money that they pay, if marketed properly.
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