A report to the Board of Directors at Ennismore Capital Regarding the Expansion Idea at Hoxton Hotel

AbstractThe hotel application has gained more popularity over the young decades in most parts crossways the globe. London, like other(a) cities has manifested slicked competition among several(predicate) hotels in offering heights quality operate, including meals and registration to both local and transnational customers.Hoxton has been a top rank hotel in London, with near of the surveys ranking it the best for cardinal consecutive years. The hotel is under the c ar of enthusiastic and goal-oriented team (Ennismore swell), characterised by the invariable ambition to grow into a larger hotel constancy. Having proposed the refinement intellect to the Hoxton Manager, in that respect is need to conduct a critical review of the idea and render the most informed testimonial to warrant the implementation of the expansion idea. This paper in that locationfore outlines a enunciate to the Board of Directors at Ennismore Capital regarding the expansion idea at Hoxton Hot el, in which the strategic analysis of the hotel, ingrained analysis through and through a option audit and core competency analysis, and the application of Ansoffs matrix ar covered. The root gives concludes by proposing a local expansion of the hotel in the UK, and summarises the recommendations to the board.presentationThe Hoxton Hotel is owned and managed by the Ennismore Capital. From recent surveys conducted in the United Kingdom, The Hoxton Hotel has been ranked as wiz of the leading hotels in London (Agencies, 2013). For example, one of the surveys and ranking by the Guardian smartspaper had ranked Hoxton Hotel as the best in the UK for three consecutive years. The ranking by the Guardian Newspaper focused on the professionals from the creative industries such as Design, Computing, as intumesce as Fashion. The constant offshoot and development of the hotel, which has since its foundation, led to its modern top ranking fire be attributed to the enthusiastic, goal or iented and successful watchfulness body. For instance, the Ennismore Capital fuddle a current plan of expansion, in which they aim at both local expansion at bottom the UK, or world-widely in the like hotel output signal line, or through set ahead diversification into related sectors. In gild to facilitate proper decision making regarding the multi-million pound expansion idea by the Ennismore Capital, there is need for a strategic analysis of Hoxton Hotel, in concert with an examination and evaluation of the strategic choices that are open to it. This report detail the required strategic analysis of the hotel, which constitutes the current strategic side of meat of The Hoxton Hotel in term of the international environment it baptisterys. This is achieved through a PESTEL analysis, barter trends and level of over tout ensemble agonistical rivalry in the hotel industry. It covers the internal analysis through a resource audit and core competency analysis for The Hoxt on Hotel. The report advices the Board of Directors on the expansion idea through the application of Ansoffs matrix, and proposes the entire method of growth.Current Strategic Position of the Hoxton HotelStrategic caper position refers to the process in which a contrast distinguishes its products and operate from those of its competitors, and as such, identifies which market niche to occupy. Strategic positioning is one of the most life-sustaining benefits associated with proper business planning. The importance of proper business planning in developing an advantageous strategic position is vital, especially in the face advancing technology (Field, 2013). The Hoxton Hotel has overrecent years, fuck offd a leading position among the hotels found in the United Kingdom. The study by the Guardian newspaper relied on the spirit of the products and assists offered by the hotel, with major back-ups from the customer testimonials. The customer testimonials, among other sources of breeding contributed to the hotels leading rank ion offering meals and accommodation services. The strategic position of a business becomes contingent when it manifests its uniqueness in products and services offered, as well as its verifiable value (Vignali, 2014). In wander to get a line critical analysis of the current strategic position of The Hoxton Hotel in terms of the external environment, it is necessary to conduct a PESTEL analysis, and the current industry trends, in tandem with the overall competitive rivalry.The PESTEL AnalysisThe PESTEL analysis is a common framework in the United Kingdom, used to evaluate the external environment of different business. The framework consists of different specialors affecting businesses, ranging from Political, Environmental, Social, Technological, Economic as well as the Legal aspects (Glykas, 2013). For instance, the political factors involve factors that determine the level of involvement by the UK government. The government ma y influence the operations of the business through an substructure of new tax policies. The business, upon compliance, experiences a new era in its r purgeue, which affects its competitive advantage. The governments constancy, press bountifuldom policies, trade union regulations, consumer protective covering policies, as well as the level of corruption withal defines a business external environment (Glykas, 2013). In appurtenance to the political factors, economic factors also determine the overall performance of a nations economy, which bears a direct impact on the profitability of whatever business. For instance, pretension trends in the economy determine the pricing policy of hotel prices for their meals and accommodation services. Moreover, there are socio-economic factors, which involve the prevailing cultural and demographic trends on market. The proficient aspect of the framework accept the level of innovations and their application in sales, marketing as well as d elivery of goods and services within the business industry (Glykas, 2013).Similarly, the legal aspect of the PESTEL framework affects both the internal and external business environment, owing to the hotels effort to comply with the legal policies enacted in the UK. The legal factors work in tandem with environmental aspect of the PESTEL framework, since there are various environmental policies enacted and enforced through legal terms. The hotel has an accountability to conduct its business in such a way that it complies with environmental sustainability policies enacted in the UK.The table below outlines all(prenominal) of the factors in the PESTEL framework, and the effects of each factor on the current strategic position of the Hoxton Hotel. Factor regard on Hoxton Hotel PoliticalThe UK government is currently getting knobbed in the hotel industry owing to the need to control security.The UK government is also making further restrictions into the issuance of licences for hot el operations.The Hoxton Hotel has a good business relations pelvis with the UK government in tax payments, and through their ability to attract international markets EconomicThe hotel accommodates international guests and hosts international conferences, which are opineent on the individual economies of foreign countries.In some cases, the local markets do not supply able fodder, and the Hoxton Hotel imports beef and potatoes from other countries to meet the demands (Yang, Flynn &038 Anderson, 2014). Socio-culturalThe Hoxton Hotel enjoys a larger section of the UK population being of high social class, who can afford the high prices offered for the meal and accommodation services provided.The Hotel also offers the modern amenities and innovative technologies such as the radiocommunication net profit, which is a hot cake for the up-coming contemporaries. It therefore means that the younger generation form a promising class of customers for the hotel (Lazzeroni et.al, 2013). T echnologicalTechnology has played a glacial employment in ensuring the competitive advantage for the Hoxton Hotel. This is because the hotel offers a wire little network in the dwell, which has acted an sweet feature for many customers (Yang, Flynn &038 Anderson, 2014). EnvironmentalThe hotel has a public responsibility to ensure a sustainable use of the environment. on that point are policies which constitute a legal binding for the hotel, especially regarding waste disposal and oversight (Brigade, 2014). LegalThe Hoxton Hotel complies with all the labour policies in the UK, as well as international standards by scheduling manageable workloads for its staff (Hoque, 2013.Key Industry Trends and level of Overall Competitive RivalryHaving emerged as a leading hotel in the United Kingdom for three consecutive years implies major achievements for the Hoxton Hotel. There are many factors which contributed to the hotels competitive advantage (Hulbert, Gilmore &038 Carson, 2013). Fo r instance, surveys have indicated that Hoxton Hotel is one of the most popular with relatively lower rates. Compared to other major hotels in the UK, Hoxton offers lower prices for high quality services for not only voluptuous meals, but also the loose accommodation room. The lowly charged rooms include some of the publicity-garnering ?1 per night, among other facilities that remain affordable to the customers.In the hotel industry, the location of the business forms a critical aspect of its usefulness to the intend clients. This is because the accessibility depends on how far or close the facility is determined from other public utilities, such as roads, hospitals, as well as other sources of entertainment, including natural features (Porter &038 Shaw, 2013). Considering the location of Hoxton Hotel in the United Kingdom, the hotel remains exceedingly competitive for its Shoreditch location. The presence of the Shoreditch around the hotel acts as a point of tie to many clien ts, who according to surveys, have affirmed that they experience a parallel benefit when they visit the hotel. Their double reward is owing to the fact that their nonplus in the Hoxton Hotel gives them an opportunity to enjoy the beautiful scenery at the hip Shoreditch.The room design is also another significant factor that is accountable for the high competitive advantage. According to the reviews done by most customers in Hoxton and other hotels, the room design is a central factor, which determines the customers choice to placate in a hotel. ground on this knowledge, Hoxton Hotel has properly designed, physically attractive and more appealing to most customers accommodation demands. Their appealing nature is associated with the fact they have relatively more luxury, than what most customers often expect. For instance, customers have loose access to milk in the fridges, various options for a cold snack, and well balanced diet during breakfast.The rooms are supplied with a sy stem of impeccant wireless internet service. The customers who have laptops and other internet enabled devices have free access to the internet at an unlimited rate, for as long as they stay in Hoxton Hotel. Moreover, the hotel rooms have some of the most comfortable beds, with the bedding materials displaying high standards of hygiene. Customer reviews conclude that according to their assessment, they found no source of discomfort during their stay at the 4-star Hoxton (Ryan, 2013). These reviews from customers also recognise the high aesthetic value of the hotel environment, noting the 2VVV Golfs forming a snug at the Hoxtons entrance. scorn the strong competitive rivalry from the other hotels in the UK, Hoxton banks on its less costly products and services, the beautiful scenery located around the hotel, among other stacked services including the free wireless internet offered in the rooms to retain itself at the top of competition (Ryan, 2013). ingrained Analysis through a R esource Audit and Core Competency AnalysisIn order to establish whether a business is strategically positioned to meet its objectives, it is a business requirement to conduct Internal Resource Audit (IRA), in which the management determines the available resources and how they can contribute to the achievement of the set goals of and objectives.Clean External and Internal EnvironmentsSince its foundation, the Hoxton Hotel has thrived on a good reputation for its cleanliness, both in the internal and the external environments. The high standards of hygiene that have formed the brands reputation have resulted into improved confidence among customers, who trust the safety of their meals as well. It is a common belief that clean environments have safe products for benignant consumption (Smith, 2013). This belief has been a primary motivating factor for even parents with younger children to use the facility for the available child friendly meal toys. Consequently, there has been a trend of increasing number of customers over the early(prenominal) years, which have led to an increase in revenue generation for the hotel.Safe FoodsHoxton Hotel has shown historic commitment to ensure that they serve safe meals and beverages to their customers (Smith, 2013). The process of ensuring safe foods and beverages at the hotel is a collaborative work between Hoxton and its suppliers, who take an active role in monitoring, tracking and testing different ingredients used in the production and processing of such food items (Smith, 2013). The food and beverage safety is a comprehensive process program in the hotel operations, that not only ensures food and beverage safety, but also all other promotional items. found on critical analysis of the hotels safety standards, it is evident that Hoxton Hotel is in compliance with the governments standards, and in some cases above them. The pointless effort invested to ensure additional food safety is aimed at supreme consumer protectio n, as a core obligation of the business to the customers. Similarly, it is the responsibility of all the staff members to notify the relevant authorities in case of any safety issue, so as to maintain safe food as a resource (Smith, 2013).The rooms at the Hoxton Hotel are comparable to the mothership at the Shoreditch. The rooms designed to prioritise the customers comfort through adequate space. Just like stated in the above discussion, the rooms are among the most captivating facilities at Hoxton Hotel. With special designs to ensure customers comfort, they are spacious to permit free movement as necessary. In addition to the adequate space available, the rooms provide a refrigeration facility, which creates for memory of basic beverages and snacks (Smith, 2013). For instance, customers can always access the free milk provided in the fridge, other cold snacks as well as a medley of breakfast meals. Moreover, the rooms also incorporate an aspect of the modern technology, in which the management supply free internet connection to the customers through a wireless platform.Application of the Ansoffs MatrixBased on their monetary ability, the Ennismore Capital has ?100 million for the expansion idea. Considering the level of risk, it is important to acquire a deeper comprehension of the existing markets and the new markets, as well as the new products and new ones. In the UK for example, there are many expansion ideas, each with a varying level of risk, depending on whether the idea involves the creation of new products or use the existing ones. Similarly, the levels of risk also depend on whether the expansion involves operations with the current market, or entry into a new market (Gianos, 2013).Hoxton Hotel has maintained a leading role in offering meals and accommodation services in the UK, and can boast of adequate knowledge in the sector. Furthermore, the business has involved the provision of one particular goods and services, during which the managemen t has acquired all the basic and technical entropy required to meet a successful business in the hotel industry. Having been located in the UK, the hotel also has a better understanding of the market structure and operations dynamics, including the requirement competitive advantage over their rival hotels within the region.ConclusionBased on the findings, it is evident that there is lower level of risk involved in an expansion idea, which involves opening new branches of the hotel, offering similar services in different parts of the country. On the other hand, there is high level of risk involved in an expansion idea, in which the hotel has to permeate new international markets, offering similar services, or introducing new products. Considering the Ennismore Capitals concerns over the level of risks involved, it would be most appropriate for Hoxton Hotel to make out adopting a local expansion of the hotel offering similar services within the UK. While expanding the business w ithin the UK, organic method of business growth would be the most appropriate. This is because the method involves minimum investment of external capital, since it relies on the existing business capital. Organic growth originates from the existing business, and has a high chances of fast growth due to the fact Hoxton Hotel has ready market entropy and investment strategies.Summary of RecommendationsThe Hoxton Hotel has earned its place in the top ranking of hotels for offering satisfactory services to its clients during the course of the recent past. Plans of expansion by the management can be a source of its further advancement, or can lead to its decline in the hotel industry. In order to proceed the business at a higher niche, it is important that the management consider a local expansion within the UK, by dealing in the same meals and accommodation services. This shall help in acquiring further stability and popularity in the native country, before further penetration into n ew markets across the borders. The Ennismore Capital should aim at minimum cost of the expansion, as a base of gaining a stronger investment base for a more go expansion in the future. This can be achieved through adoption of organic growth, which shall utilise the existing business resources such as ideas, market information and capital.ReferencesAgencies, I. H. S. (2013). Lets Go London, Oxford, Cambridge &038 Edinburgh The StudentTravel Guide. Avalon Travel.Brigade, L. F. (2014). London Fire Brigade-Incident Archive 12085. people.Field, C. D. (2013). The Allan library A Victorian Methodist Odyssey. Bulletin of the JohnRylands Library, 89(2), 69-105.Gianos, J. F. (2013). 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