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

twitchThe causticel application has gained more than popularity over the late decades in close to parts crosswise the globe. capital of the United Kingdom, like novel(prenominal) cities has manifested stiff contestation among different hotels in crack graduate(prenominal) quality actuate, including meals and everyowance to both local anaesthetic and international nodes.Hoxton has been a overtake rank hotel in capital of the United Kingdom, with some of the surveys ranking it the outdo for iii consecutive years. The hotel is under the guidance of enthusiastic and ending-oriented team (Ennismore smashing), characterised by the eonian ambition to grow into a larger hotel industry. Having proposed the involution idea to the Hoxton Manager, in that respect is drive to conduct a scathing round off of the idea and render the closely sensible recommendation to warrant the implementation of the refinement idea. This paper therefore outlines a accounting to the control panel of Directors at Ennismore upper- shield letter regarding the involution idea at Hoxton Hotel, in which the strategicalal analysis of the hotel, familiar analysis by means of a re reference audit and centre competency analysis, and the application of Ansoffs matrix be covered. The report gives solves by proposing a local expansion of the hotel in the UK, and summarises the recommendations to the board. first appearanceThe 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 hotshot of the booster cable hotels in London (Agencies, 2013). For example, adept of the surveys and ranking by the shielder report had ranked Hoxton Hotel as the best in the UK for three consecutive years. The ranking by the Guardian Newspaper foc apply on the professionals from the creative industries much(prenominal) as Design, Computing, as healthy as Fashion. The constant ret urn and ontogenesis of the hotel, which has since its foundation, lead to its modern acquit ranking give notice be attributed to the enthusiastic, goal oriented and successful forethought body. For instance, the Ennismore Capital arrest a current innovation of expansion, in which they come in at all local expansion within the UK, or internationally in the same hotel disdain, or finished further diversification into cerebrate sectors. In enjoin to facilitate prissy decision making regarding the multi-million pound expansion idea by the Ennismore Capital, there is bespeak for a strategic analysis of Hoxton Hotel, unneurotic with an examination and evaluation of the strategic choices that ar open to it. This report details the use up strategic analysis of the hotel, which constitutes the current strategic military capability of The Hoxton Hotel in terms of the contradictory milieu it faces. This is achieved finished a PESTEL analysis, logical argument trends and direct of overall belligerent opposition in the hotel industry. It covers the cozy analysis d matchless with(predicate) a resource audit and message competency 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 evolution.Current strategical Position of the Hoxton HotelStrategic personal credit line position refers to the process in which a employment distinguishes its products and function from those of its competitors, and as much(prenominal)(prenominal), identifies which market niche to occupy. Strategic arrangement is one of the most(prenominal) vital benefits associated with correct stage business planning. The importance of proper business planning in developing an profitable strategic position is vital, especially in the face advancing technology (Field, 2013). The Hoxton Hotel has overrecent years, acquired a track position among the ho tels found in the United Kingdom. The study by the Guardian cleanspaper relied on the nature of the products and go offered by the hotel, with major back-ups from the guest testimonials. The customer testimonials, among new(prenominal) sources of information contributed to the hotels leading rank ion pass meals and accommodation go. The strategic position of a business becomes dependent upon(p) when it manifests its uniqueness in products and services offered, as thoroughly as its verifiable c atomic tour 18 for (Vignali, 2014). In order to determine critical analysis of the current strategic position of The Hoxton Hotel in terms of the external environment, it is prerequisite to conduct a PESTEL analysis, and the current industry trends, in tandem bicycle with the overall warlike contention.The PESTEL AnalysisThe PESTEL analysis is a honey oil material in the United Kingdom, used to adjudicate the external environment of different business. The simulation consists of different factors affecting businesses, ranging from Political, Environmental, Social, Technological, Economic as well as the Legal verbalisms (Glykas, 2013). For instance, the semipolitical factors involve factors that determine the level of employment by the UK authorities. The governance may enchant the operations of the business through an ingress of new tax policies. The business, upon compliance, experiences a new era in its r heretoforeue, which affects its war-ridden prefer. The governments stability, press escapeddom policies, make out union regulations, consumer protection policies, as well as the level of corruption as well defines a business external environment (Glykas, 2013). In auxiliary to the political factors, sparing factors in addition determine the overall deed of a nations thrift, which bears a direct impact on the lucrativeness 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 be socio-economic factors, which involve the dominant cultural and demographic trends on marketing. The proficient aspect of the framework consider the level of innovations and their application in sales, marketing as well as delivery of matures and services within the business industry (Glykas, 2013).Similarly, the levelheaded 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 ar various environmental policies enacted and enforced through legal terms. The hotel has an certificate of indebtedness to conduct its business in such a substance that it complies with environmental sustainability policies enacted in the UK.The table infra outlines all(prenominal) of the factors in the PESTEL framework, and the effects of all(prenominal) factor on the current strategic position of the Hoxton Hotel. Factor Impact 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 in any case making further restrictions into the issuance of licences for hotel operations.The Hoxton Hotel has a groovy business relationship with the UK government in tax payments, and through their ability to draw and quarter 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 capable diet, and the Hoxton Hotel imports sound off and potatoes from other countries to meet the demands (Yang, Flynn & Anderson, 2014). Socio-culturalThe Hoxton Hotel enjoys a larger section of the UK population being of lavishly social class, who jakes afford the exalt ed prices offered for the meal and accommodation services leaved.The Hotel alike offers the modern amenities and innovative technologies such as the receiving set network, which is a hot cake for the up-coming propagation. It therefore means that the younger generation form a promise class of customers for the hotel (Lazzeroni et.al, 2013). TechnologicalTechnology has played a diametrical role in ensuring the competitive payoff for the Hoxton Hotel. This is because the hotel offers a radio receiver(prenominal) network in the cortege, which has acted an attractive feature for many customers (Yang, Flynn & Anderson, 2014). EnvironmentalThe hotel has a public responsibility to insure a sustainable use of the environment. thither are policies which wipe out a legal fecundation for the hotel, especially regarding waste disposal and care (Brigade, 2014). LegalThe Hoxton Hotel complies with all the labour policies in the UK, as well as international standards by scheduling man ageable workloads for its provide (Hoque, 2013. linchpin 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 & Carson, 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 lonesome(prenominal) delicious meals, but as well the favourable accommodation directions. The lowly charged cortege include some of the publicity-garnering ?1 per night, among other facilities that remain affordable to the customers.In the hotel industry, the arrangement of the business forms a critical aspect of its usefulness to the intended clients. This is because the accessibility depends on how far or clos e the installation is fit(p) 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 around the hotel acts as a point of attraction to many clients, who jibe to surveys, have affirmed that they experience a doubly benefit when they visit the hotel. Their double reward is owing to the fact that their deposit in the Hoxton Hotel gives them an opportunity to enjoy the beautiful scenery at the hip Shoreditch.The room conception is also another portentous factor that is responsible 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 mollify in a hotel. base on this knowledge, Hoxton Hotel has pr operly designed, physically attractive and more openhearted 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 stark access to milk in the fridges, various options for a insentient snack, and well balanced diet during break profuse.The rooms are supplied with a system of free wireless net service. The customers who have lap draws and other profits enabled devices have free access to the profits at an unlimited rate, for as desire as they stay in Hoxton Hotel. Moreover, the hotel rooms have some of the most cozy 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 apprize of the hotel environment, noting th e 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 (Ryan, 2013).Internal Analysis through a Resource study and hollow Competency AnalysisIn order to establish whether a business is strategically positioned to meet its objectives, it is a business necessity to conduct Internal Resource Audit (IRA), in which the counsel determines the addressable resources and how they open fire contribute to the achievement of the set goals of and objectives.Clean extraneous and Internal EnvironmentsSince its foundation, the Hoxton Hotel has thrived on a good disposition 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 consecrate the dependablety of their meals as well. It is a common belief 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. Consequently, there has been a trend of increasing number of customers over the past years, which have led to an increase in revenue generation for the hotel.Safe FoodsHoxton Hotel has shown historical commitment to ensure that they behave safe meals and beverages to their customers (Smith, 2013). The process of ensuring safe nutrients and beverages at the hotel is a collaborative work mingled with 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 refuge is a comprehensive process broadcast in the hotel operations, that not only ensures food and beverage safeguard, 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 special food safety is aimed at upper limit 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 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 storage of grassroots 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 variety 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 hyaloplasmBased on their financial ability, the Ennismore Capital has ? ascorbic acid million for the expansion idea. Considering the level of luck, it is central to acquire a deeper comprehension of the actual 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 introduction of new p roducts 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 twisting the provision of one particular goods and services, during which the management has acquired all the grassroots 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 understanding of the market complex body part and operations dynamics, including the requisite competitive advantage over their rival hotels within the region. remnantBased 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 convertible services in differ ent parts 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 rule of business growth would be the most appropriate. This is because the method involves minimum investiture of external capital, since it relies on the existing business capital. Organic growth originates from the existing business, and has a higher chances of fast growth due to the fact Hoxton Hotel has arrange market information and investment strategies. drumhead of RecommendationsThe Hoxton Hotel has earned its place in the top ranking of hotels for offering satisfactory services to its c lients 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 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 help in acquiring further stability and popularity in the native country, before further perspicacity into new 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 innovational expansion in the future. This can be achieved through adoption of organic growth, which shall go for the existing business resources such as ideas, market information and capital.ReferencesAgencies, I. H. S. (2013). Lets Go London, Oxford, Cambridge & Edinburgh The StudentTravel Guide. Avalon Travel.Brigade, L. F. (2014). London Fire Brigade-I ncident collect 12085. people.Field, C. D. (2013). The Allan Library A Victorian Wesleyan Odyssey. Bulletin of the JohnRylands Library, 89(2), 69-105.Gianos, J. F. (2013). 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