Small Business Enterprises

Know How Small Business Enterprises Help Arosfa Firm


Introduction to small business organization

In a small business organization where limited numbers of employees is working, it always seems difficult to manage operational activities in appropriate manner. Due to low strength and experience in firm limited skills and knowledge (Zimmerer, Scarborough and Wilson, 2002). In the current project, Arosfa is the chosen hospitality firm where limited number of employees has been employed. Management operations are not being performed up to the mark and employees also does not have enough skills to cope up with daily problems. This report shows various techniques and objectives set by the firm in order to bring improvement in their operations and develop standard of the firm.

Profile of Arosfa and its strength and weaknesses

Arosfa is a small hospitality firm which has been established in heart of London 200 years ago. Limited number of employees has been employed in this firm and also their performance level is not very high.

Strengths and weaknesses of Arosfa hotel



Analysis of business

Performance of cited firm Arosfa can be analyzed on the basis of following factors, such as:

Appropriate actions to overcome identified weakness

In order to overcome identified weaknesses, various actions or methods should be applied, such as

Increasing strength of staff: - Though the cited hotel is a small business firm, there are limited number of staff members working and it is the only result of it’s under performance (Bhaskaran, 2006). Therefore, in order to overcome this, management should have to recruit new employees who can really deliver outstanding services for more and more customers. Another major advantage of increasing strength of staff is that, it will reduce workload from other members of the firm. As a result time will also get managed properly.

Training and development: - Newly recruited staff may require skills and knowledge about working procedures of the firm, therefore, it becomes crucial for the firm to provide training and development services to new employees. Not only new employees but old people who does not have adequate knowledge about latest technology also need to get training to use new equipments and tools for which have been implemented in the firm.

Innovative services: - By gathering information about current market trends, Arosfa managers can bring new services to their firm in order to impress new customers (Beck and Demirguc-Kunt, 2006). This will increase firm’s marginal revenue as well as sale turnover.

Expansion of hotel area: - This is a major step that must be taken by management of the firm which entails that service area for guests should get extended. In other words, number of rooms should be increased through construction. This will provide space for guests and also will allow managers to satisfy all of their customers by providing a pleasant stay at their hotel. This is required because the hotel is very old and there are huge numbers of people who have very well knowledge about this firm, in this context, if hotel management does not keep proper maintenance, they may have to shut down their business due to inconsistent services.

Improvement in level of services: - Services provided by the firm should get improved through installing new technologies in the firm. For example, online payment, online booking, automatic wake up alarm etc. All these services can enforce customers to visit hotel by paying affordable prices (Man, Lau and Chan, 2002).

Way to strengthen existing performance

To strengthen existing performance, management of Arosfa have number of options to select, such as:

Cost reduction: - This is one of the method in which existing performance of the firm can be increased. By reducing cost of rooms in off-season is a good technique to allow more and more customers to visit hotel. In the modern era, customers are both price as well as quality conscious and in this situation, it becomes very necessary to manage both these thing together. With pure quality, it is also essential to keep regular check on price.

Planning: - Without planning, no business can run forward. It is because planning helps to deal with future uncertainties. It helps to understand what to produce, how much to produce and for whom to produce. From the hotel’s point of view, planning helps to identify needs and demands of customers. Along with that, it also enables the firm to make appropriate strategies regarding their future course of actions (Longenecker and et. al., 2013).

Introducing travelling facilities: - This is a new way to attract customers by offering them free travelling facilities. Because most of the customers are worried about their travelling in new city as they do not have appropriate knowledge about that area. By providing these facilities, it becomes more likely to have increment in number of customers.

Technological improvement: - Technological advancement put stress on features like online booking as well as cancelling of rooms, free subscription of services and offers, internet facilities with free laptops and computers during their stay, automatic alarm services etc (Vandenberg, 2009). These services are adequate enough to attract number of customers in a short time period.

New areas to expand business

Arosfa hotel is a well known and well furnished hotel with number of services for its customers. Though, it is 200 years old firm delivering services by existing at heart of London but still it requires lot of changes in order to make itself more profitable. It can be done by planning and implementing changes. There are many areas in which Arosfa hotel can be expanded. One of the major areas is closely related to build a new restaurant either on the top of hotel or at any other site. Opening a new branch will lead customers to take a chance for getting services of Arosfa. However, restaurant is such a place which can be suitable for any person. It can be a couple, friends, bachelors or children. However, the main reason behind opening a new restaurant is that, it can rapidly increase marginal revenue of the firm. Another plus point is that, restaurant can attract customers on regular basis or it can be said that customers visits restaurant for any purpose such as, enjoyment, refreshment, professionals can visit for informal meetings, families visits for having fun etc (Krauss and et. al., 2005). All these facilities can be provided in a restaurant; therefore, it is really an outstanding idea to build a new restaurant either inside the hotel or at any other place.

SMART analysis

In order to expand business, it is very crucial to set certain objectives that can fulfill requirements of business in desired manner. Therefore, SMART analysis is one of the best methods to explain it:

Specific: - The main objective of Arosfa hotel now is to build a new restaurant which can increase marginal revenue of the firm in an outstanding manner. It has been identified that this objective can be attained through effective planning and management of resources. On the other hand, increasing number of employees is another major and specific objective of Arosfa because staff members are critically required to manage new restaurant (Jenkins, 2006).

Measurable: - Both the objectives planned by Arosfa managers are absolutely measurable because a specific time period can be targeted to accomplish both tasks. For constructing the new restaurant, firm should take hardly a time period of 2 months while for recruiting new candidates, 3 months’ time is enough to hire skilled and talented employees.

Achievable: - Constructing new restaurant is not an impossible task but easy to achieve because in the modern world, existence of latest technology, tools and equipments makes it easy to accomplish any of difficult task. While recruiting new staff can also be achieved with the help of qualitative recruiters.

Realistic: - Building a new restaurant is realistic in nature. In the modern age, large infrastructures get build in few months and it is just a small restaurant which can be constructed in few weeks only (Jenkins, 2009). Whereas, hiring employees is also not a very difficult task because there exists a lot of talent in modern youth who can deliver their services whole heartedly.

Time-related: - The objective of building a new hotel gettable in few months, say, two or three months only. Therefore, it can be assumed that Arosfa managers can prepare plan for accomplishing this task as early as possible in order to retain their existing customers and gain typical ones.

Business plan

Business plans are common to understand current position of the organization and helps to target their future existence. However, business plans are incorporated on frequent basis in order to know current marketing conditions as well as current status of the cited firm. On the basis of above recommendation to venture a new restaurant of Arosfa, specific business plan is required to be created.

In order to accomplish this task, first thing Arosfa manages has to do is, analyze market conditions to identify best suitable place to build new project (Lepoutre and Heene, 2006). Number of ways and methods are required by the firm to evaluate the results of gathered information. On the basis of outcomes, Arosfa managers can implement methodologies to initiate business or new project. Furthermore, human resource management of the firm has to recruit efficient human resources in order to manage their new operations. The last stage of business plan entails that plan should be developed in order to promote new restaurant in London. As the firm is already in the field of hospitality management, it can use same skills and techniques to incorporate their new business plans. As a result, customers will get the same kind of satisfaction from the firm.

Action plan to implement changes

In order to achieve goals of business, organizations are required to make proper business action planning because this helps the firm to understand what should b the first thing to do. Action plan includes listing of goals that should be accomplished in timely manner. Managers of the cited firm assign task and responsibilities to number of employees which helps to provide smooth flow of activities. In order to create new restaurant, managers of Arosfa are required to focus on methods through which information about market conditions has to be collected (Ayyagari, Beck and Demirguc-Kunt, 2007). The second step includes gathering information through other firm regarding customer’s tastes and preferences. The last technique Arosfa can use is, taking help from social media to inform their existing customers about their new branch. But important thing is that, the cited hospitality firm should complete all these things in a specific time period by assigning roles and responsibilities to their current staff members. On the basis of acquired results, Arosfa can hire new employees with having good skills and knowledge to work on their new branches. Simultaneously, the existing employees and employers should concentrate on their new project for further development.

Impact of proposed changes on business and employees

Change management in any firm can make either positive or negative impact on firm as well as its employees. However, the changes made by firm not only impacts development of the firm but it also impacts on the environment where the firm exists. Management of change can be beneficial for the firm in gaining competitive advantage or may as well lead to failure of business (Burns, 2001). Some of the probable changes that occurred due to proposed changes are as follows:

Workloads: - As mentioned earlier, implementation of changes in the form of new branch and recruitment of employees will lead to reduction in workload and the acquired results are same as expected. Huge burden has been removed through employing new staff members because they are handling over activities which were performed by limited number of employees.

Finance: - Recruitment in the field of finance has resulted in proper management of finance. Skilled employees in terms of accounting and finance have been appointed or employed to keep focus and manage each and every transaction occurring in the firm.

Morale: - Morale of employees has also increased to a much greater extent because they are given lot of training for self improvement and a result, today they are performing outstandingly. As new team has been recruited in the firm, morale of new staff members is also very high because they have got good opportunity to serve in newly constructed restaurant and it is a very good chance for them to prove themselves with the help of their skills and abilities (Schmitz, 2004).

Organizational structure: - Structure of the organization has been changed in order to provide space for newly recruited employees. This may include change in shifts, duty times, working areas or sitting arrangements.

Change management plan

Most of the small business enterprises are not likely to make business as well as policy changes due to risk of failure. It is because even if the changes are implemented, it is intended to achieve betterment in the workplace and environment. In the cited hotel Arosfa, the proposed changes can make huge impact on business as well as staff. By opening a new restaurant, Arosfa hotel can rush towards more success. The cited hotel will gain huge profits from both sides’ as from existing hotel as well as new restaurant. Implemented changes will requires some sort of time to get fixed but once if they got established, with effective performance the firm can outer perform to gain competitive advantage over its competitors (Wiklund and Shepherd, 2005). Furthermore, if the employees got confidence in their role, they can further develop themselves for future growth.

Changes in business organizations are to be anticipated but in most of the firm, employees resist the changes because their ways of working or procedures get changed. Therefore, it is very essential for the firm to keep flexibility in their employees so that they are always willing to welcome new opportunities and learn new tasks or roles.

Monitoring of improvement in performance

Management of Arosfa hotel has to keep monitoring of their implemented action plans in order to keep them in line according to their prepared action plans. Therefore, it is crucial for the firm to monitor and control each and every task after its completion. While implementing any change, firm has to take necessary control measures in order to handle it from any deviation (Lepoutre and Heene, 2006). Proper documents and records are kept in order to measure performance of the firm. Keeping record of transactions also helps to manage actions and avoid them by getting deviated through control measures. Finally, the firm should document the lessons learnt by the staff members for further use while implementing changes in the firm.


With the help of above scenario, it has been concluded that small business enterprises have to make a lot of efforts for their development. Arosfa is the chosen hotel in the project which has made significant effort for improvement and expansion of business through opening a new restaurant in new area for attracting new customers and to gain marginal revenue. The firm made various changes also by making action plans and implemented in desired manner. As a result, positive results were obtained at the end by the firm.


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