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

come upThe hotel industry has gained more than popularity oer the new-fang direct decades in approximately part across the globe. capital of the United Kingdom, give care other cities has manifested stiff controversy among different hotels in pass high spirit run, including meals and accommodation to both local and external customers.Hoxton has been a top tramping hotel in London, with some of the surveys ranking it the shell for triple consecutive years. The hotel is under the management of enthusiastic and goal- lie team (Ennismore capital), characterised by the constant ambition to grow into a larger hotel industry. Having proposed the expanding upon liking to the Hoxton Manager, in that respect is request to necessitate a critical review of the vagary and render the most informed recommendation to warrant the implementation of the intricacy idea. This paper therefore outlines a report to the Board of Directors at Ennismore Capital regarding the enlargement idea at Hoxton Hotel, in which the strategical depth psychology of the hotel, ingrained outline through a resource size up and mettle efficacy analysis, and the application of Ansoffs matrix are covered. The report gives concludes by proposing a local working out of the hotel in the UK, and summarises the recommendations to the board.IntroductionThe Hoxton Hotel is owned and managed by the Ennismore Capital. From recent surveys conducted in the United Kingdom, The Hoxton Hotel has been bedded as one of the leading hotels in London (Agencies, 2013). For example, one of the surveys and ranking by the Guardian Newspaper had ranked Hoxton Hotel as the best in the UK for three consecutive years. The ranking by the Guardian Newspaper foc utilize on the professionals from the creative industries much(prenominal) as Design, Computing, as well as Fashion. The constant growth and development of the hotel, which has since its foundation, led to its modern top ranking commode be attri buted to the enthusiastic, goal oriented and successful management body. For instance, the Ennismore Capital curb a watercourse scheme of expansion, in which they aim at either local expansion indoors the UK, or internationally in the same hotel melodic phrase, or through make headway diversification into related sectors. In order to facilitate proper termination making regarding the multi- one million million pound expansion idea by the Ennismore Capital, there is need for a strategic analysis of Hoxton Hotel, together with an examination and evaluation of the strategic choices that are open to it. This report details the required strategic analysis of the hotel, which constitutes the current strategic position of The Hoxton Hotel in terms of the external surroundings it faces. This is achieved through a PESTEL analysis, occupation motions and take aim of overall hawkish rival in the hotel industry. It covers the internal analysis through a resource audit and core co mpetency analysis for The Hoxton Hotel. The report advices the Board of Directors on the expansion idea through the application of Ansoffs matrix, and proposes the organic mode of growth. trustworthy strategic Position of the Hoxton Hotel strategical line of merchandise position refers to the process in which a commerce distinguishes its products and work from those of its competitors, and as such, identifies which market niche to occupy. Strategic positioning is one of the most vital benefits associated with proper business planning. The brilliance 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, acquired a leading position among the hotels found in the United Kingdom. The study by the Guardian newspaper relied on the nature of the products and services offered by the hotel, with study back-ups from the customer testimonials. The customer te stimonials, among other sources of information offerd to the hotels leading rank ion offering meals and accommodation services. The strategic position of a business becomes particular when it manifests its uniqueness in products and services offered, as well as its confirmable value (Vignali, 2014). In order to image 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 hawkish disceptation.The PESTEL AnalysisThe PESTEL analysis is a common frame track down in the United Kingdom, ingestiond to evaluate the external environment of different business. The framework consists of different factors alter businesses, ranging from Political, Environmental, Social, Technological, Economic as well as the Legal flavors (Glykas, 2013). For instance, the political factors move factors that determine the level of involvement by the UK government. The government may form the operations of the business through an introduction of new tax policies. The business, upon compliance, experiences a new era in its revenue, which affects its competitive advantage. The governments st dexterity, iron take overdom policies, trade union regulations, consumer protection policies, as well as the level of corruption withal defines a business external environment (Glykas, 2013). In addition to the political factors, economic factors in any case determine the overall performance of a nations economy, which bears a direct force on the profitability of any business. For instance, inflation 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 customary cultural and demographic trends on marketing. The technological aspect of the framework cogitate the level of innovations and their application in sales, marketing as well as delivery of well-groundeds and services at bottom 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 obligation to conduct its business in such a way that it complies with environmental sustainability policies enacted in the UK.The table at a lower place outlines each of the factors in the PESTEL framework, and the effects of each factor on the current strategic position of the Hoxton Hotel. Factor Impact on Hoxton Hotel PoliticalThe UK government is shortly getting baffling in the hotel industry owing to the need to determine security.The UK government is in any case making further restrictio ns into the issuance of licences for hotel operations.The Hoxton Hotel has a heavy business relationship 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 dependent on the individual economies of foreign countries.In some cases, the local markets do not supply adequate fare, and the Hoxton Hotel imports beef and potatoes from other countries to meet the demands (Yang, Flynn & Anderson, 2014). Socio-culturalThe Hoxton Hotel jazzs a larger section of the UK population being of higher social class, who can impart the high prices offered for the meal and accommodation services provided.The Hotel also offers the modern conveniences and innovative technologies such as the receiving set network, which is a hot spread over for the up-coming generation. It therefore means that the younger generation form a brilliant class of customers for the hotel (Lazzeroni et.al, 2013). TechnologicalTechnology has played a pivotal role in ensuring the competitive advantage for the Hoxton Hotel. This is because the hotel offers a wireless network in the board, which has acted an attractive let for many customers (Yang, Flynn & Anderson, 2014). EnvironmentalThe hotel has a public responsibility to ensure a sustainable use of the environment. There are policies which shake a legal covering fire for the hotel, especially regarding waste disposal and management (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 rivalHaving 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 & Cars on, 2013). For 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 delicious meals, but also the satisfactory accommodation retinue. The lowly charged retinue include some of the publicity-garnering ?1 per night, among other facilities that remain affordable to the customers.In the hotel industry, the fixture of the business forms a critical aspect of its usefulness to the intended clients. This is because the accessibility depends on how faraway or close the induction is located from other public utilities, such as roads, hospitals, as well as other sources of entertainment, including natural features (Porter & Shaw, 2013). Considering the location of Hoxton Hotel in the United Kingdom, the hotel remains highly competitive for its Shoreditch location. The presence of the Shoreditch approximately the hotel acts as a point of attraction to many clients, who according to surveys, have affirmed that they experience a multiply benefit when they visit the hotel. Their double reward is owing to the fact that their placate in the Hoxton Hotel gives them an opportunity to enjoy the beautiful aspect at the hip Shoreditch.The room shape is also another significant factor that is responsible for the high competitive advantage. accord 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 stay 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 throw overboard access to milk in the fridges, various options for a cold snack, and well balanced diet during brea kfast.The entourage are supplied with a system of free 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. Despite 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 luxurious services including the free wireless internet offered in the rooms to maintain itself at the top of competition (Ry an, 2013). innate Analysis through a Resource Audit and pith 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 better confidence among customers, who trust the safety of their meals as well. It is a common teaching that clean environments have safe products for human 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. C onsequently, there has been a trend of increasing number of customers over the past years, which have led to an accession in revenue generation for the hotel.Safe FoodsHoxton Hotel has shown historical commitment to ensure that they set 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 examination different ingredients used in the production and processing of such food items (Smith, 2013). The food and beverage safety is a comprehensive process curriculum in the hotel operations, that not only ensures food and beverage safety, but also all other promotional items. Based 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 extra effort invested to ensure excess food safety is aimed at maxim um consumer protection, as a core obligation of the business to the customers. Similarly, it is the responsibility of all the staff members to notify the applicable 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 prioritize the customers comfort through adequate space. Just like stated in the above discussion, the rooms are among the most absorbing 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 storage of basic beverages and snacks (Smith, 2013). For instance, customers can evermore access the free milk provided in the fridge, other cold snacks as well as a variety of breakfast meals. Moreover, the rooms also incorporate an aspect of th e modern technology, in which the management supply free internet connection to the customers through a wireless platform.Application of the Ansoffs MatrixBased on their financial 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 living 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 variable level of risk, depending on whether the idea involves the introduction 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 retained 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 serv ices, during which the management has acquired all the basic and technical information required to run a successful business in the hotel industry. Having been located in the UK, the hotel also has a better discretion of the market structure and operations dynamics, including the requisite 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 commencement new branches of the hotel, offering similar services in different move of the country. On the other hand, there is higher level of risk involved in an expansion idea, in which the hotel has to penetrate 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 consider adopting a local expansion of the hotel offering similar services within the UK. While expanding the business within the UK, organic method of business growth would be the most appropriate. This is because the method involves minimum enthronization of external capital, since it relies on the existing business capital. constituent(a) growth originates from the existing business, and has a higher chances of fast growth collectible to the fact Hoxton Hotel has ready market information and investment strategies.Summary of RecommendationsThe Hoxton Hotel has get 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 pin in the hotel industry. In order to keep 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 serve in acquiring further stability and popularity in the native country, out front further penetration into new markets across the borders. 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