Competitive Market Condition of YHA London Central
In this context, we are going to focus on the competitive market condition of YHA London Central- one of the Small Enterprises of UK. YHA London Central is one of the modern, cheap accommodations adjacent to Oxford Street. It is in the heart of London city. This is a hostel facility including kitchen facility, facility of lockers- a perfect stop for the entire traveler. In this assessment, we are going to generate a poster highlighting the business profile, comparative measure of performance necessary for the organization to thrive in the particular sector. The assessment will take into account both the past and current business information mandatory to understand the position of the company in the global market (Pearce & Schänzel, 2013). The poster will include a series of merits and demerits of the organization in terms of customer experience. This is a team work and all the team members are equally responsible in gathering information and contributing to the project.
Task 01 Poster
For the selection of the business profile, the YHA London Central is selected for carrying out the small business enterprises. YHA London Central has started their business on hotel and restaurant. The proper business profile is based on analysis of market strategy and this helps the business to succeed (Benz, 2013). In order to succeed in the business, the management needs to introduce exact market planning and market analysis.
This helps the company to develop and helps in implementing new planning for the satisfaction of customer and also maintaining the profit (Bryman & Bell, 2015). There are basically two main criteria for this planning. These are research of the market and exact planning of the marketing mix. In the research of market, helps in gathering information of the customer requirements and planning of the marketing mix helps in meet the requirements of customer easily. YHA London Central has also involved in the market research planning, in order to meet the customer requirements in hotel and restaurants (Sirivoranak, 2015). The exact market research planning help in gathering adequate information about the market and helps the firm to face the competition from other company (Solomon, 2014). There are three ways gathering of information in the market research. These are as follows:-
1. From the external source to collect the exact information of the market that is knowing about the product, brands.
2. From the internal source of information that is held by the firm such as keeping intact about the details of customer.
3. From the external primary source information that is collected at the time of presence of customer at the time for staying in hotel at YHA London Central.
The exact market planning helps in identifying the company weakness and the strength. This also helps to establish the market objectives in order to carry out the successful business (Holliman & Rowley, 2014). Moreover, market planning helps to develop the market mix, to achieve the set objective of the business. YHA London Central might carry out the market planning to give best services in hotel and restaurant toward the customers. Moreover, the company must carry out the market planning to improve their products and service (de Vogel, Stam, Bouman, Ter Horst & Lancel, 2016). The company has made new market planning to improve in the strength and weakness. This helps the firm in the developing of the marketing mix to achieve the objective easily. Moreover, the company needs to implement new innovation in the market planning to make the exact planning for the improvement of the company.
The company practices the market strategy to gain maximum profit from the product mix and research of the market. Market strategy comes with the planning of the market. This helps the company to achieve their sets goal. Moreover, there are different, market strategies that are implemented to increase the profit. The exact market strategy helps the firm to achieve an advantage from the sustainable market (Ward, 2016). Market strategy helps in increasing the sales of the organization by the made strategy. This strategy includes with long and short terms activity in the marketing field. However, this marketing field helps in achieving the competitive market. YHA London Central must carry out the marketing strategy to increase the profit from hotel and restaurant. The marketing strategy comes with the proper planning of the market. Market strategy helps the firm to achieve their profit by keeping the constant mission or the objectives. This helps the company’s growth in the product and services.
Moreover, YHA London Central can conduct performance based on the customer, market and competitor analysis. YHA has also performed the proper marketing strategy based on developing the peoples and team. The company first preferences come with the customer satisfaction and getting reached with their service toward the consumers. The company has made many planning on the development of the good team in the leadership (Greene & Yao, 2016). The organization has made actions about judging the services provided to the consumers. Moreover, this actions belong to the engaging of the young people to take a judgment on the firm service. The company provides a high strategy towards achieving the vision for the coming years. These includes with the development of the talented employee and the team, properly achieving a high financial position, reaching the hands of many customers through team or partnership and keeping in mind about the consumer demand. The exact market strategy helps in the development of the firm and also helps to reach the hand of customer.
Current market structure
The current market structure helps to know the growth of business by the company in recent times. YHA has approximately accommodated 700,000 people in their accommodation facilities. Moreover, the company has received support from the active volunteers having 2,000 staff. The firm also runs youth hostel for the betterment of youth in England and Wales. Firm has invested GBP 21 million for the improvement of the product and services towards the customer and youth. The firm has also ranked in the top position in U.K. YHA has a employee of about 1,100 running the business in the progressive way (Kollmann, 2015). The company holds a high turnover of about GBP 60 million. The company might increase the market structure, in order to reach more customers of their service. This helps the company to increase their marketing structure for current year. YHA London Central continuously increases the market structure by making new innovation technology in increasing the service facility.
The company provides a high inspiration towards the youth and for the young people by gaining more knowledge through experiencing new adventures.
The company tries to reach the hand of many customers. In order to get the vision properly, the firm needs to reach in the hands of the billion customers for the coming year.
The company provides the future prospect for providing more service facility towards the customer. This completely depends on the customer using the service daily. The future prospect helps in development of the company thinking in future (Nagatsuma & Carpintero, 2015). Company tries to improve their service on the facilities towards the customer. The future prospect helps the firm in improving business planning. However, the company has focused on providing the facilities towards the youth by hostel facilities. YHA London Central has made a running for making the hostel facilities of about 150 for the youth. Moreover, the firm vision can develop in the future prospect that is enhancing the people life. The company provides huge opportunities for the young groups to meet the needs of the education in the society.
This helps in the development of the company as well as increasing the future prospect of the company by serving education towards society. Moreover, the company plays role for developing the society by carrying out charitable funds for the kids. This future prospect helps in the development of the company's growth in terms of service towards the customer. The firm properly focuses on the future prospect for increasing the development of the service (Withisuphakorn & Jiraporn, 2016). This helps the organization to increase their services for the betterment of the consumers and also for the society. The company must follow the future prospect based on the new innovation technology that helps to improve the service among the customers.
However, the company needs to follow these planning properly to increase their progress in the services facilities for the customers.
Comparative measures of performance
Based on Financial Strategies
YHA London Central has performed financial strategy as compared with Bovey Castle in U.K. The financial strategy depends on the financial framework for the development of the company that is YHA and Bovey Castle (Brunswicker & Vanhaverbeke, 2015). This are used for the improving the long term planning of the strategic goal. Moreover, this helps in improving the objectives and taking the strategic goal. Moreover, the companies try to achieve the financial strategy for the progress of the business. Bovey Castle has provided huge amount of the financial statement for the investment in the service and facilities. The company provides huge service facilities by providing the five star rates. Moreover, the company has tried to improve the financial strategy to achieve more progress towards the service that helps the customer.
Moreover, the firm has performed the hospitality and training to improve their services. The financial strategy helps to build the company's vision and achieve the set objectives. The financial strategy includes with the funding at the time of emergency, company must spend less amount of money and company must look out for increasing the profit at the time for providing service. This strategy helps in increase the profit by providing good service facilities towards the customer (Reggi & Scicchitano, 2014). YHA London Central has properly delivered the financial stability to deliver the service towards the customer. Moreover, the company has collected more funds from the existing volunteers and lowers the amount of costing for giving the service to the consumers. YHA has focused more about the demand of customer by sharing less profit. However, the firm has increased the business profit annually of about 40 million. YHA main motto is provide the best facility towards the customers and also provided charitable function. Bovey Castle has made a clear planning on the strategy and achieving of high glory. Moreover, Bovey Castle has made a huge effort for achieving a high progress in the services towards the customers.
Based on Organizational Competencies
Both the company has faced huge competition for providing the service good service to the customer. Moreover, both the firm has properly focused on the research planning, strategy that helps to increase the competitive market (Merritt & Kelley, 2017). YHA London Central has provided hostel for the youth and Bovey Castle has not made any hostel facilities for the people. YHA has performed their service facilities with the help of the volunteers. This helps to increase the competition towards the Bovey Castle. However, YHA has also made social campaign for the society and made the funding for the disabled child in areas of London and Wales. Bovey Castle has continuously focused on their services rather than the social works in the society. The proper organizational competition comes with the service facilities as well as the customer satisfaction. The spreading of the firm brand name also helps in increasing the growth of the company (Tripathi & Agrawal, 2014).
Moreover, management tries to make progress in the service and product facilities for the customer. This helps in increasing the performance of business especially in the small business enterprises. YHA plays a one step ahead by serving the hostel facilities towards the youth and young people besides their facilities in the hotel. Bovey castle has focused on the facilities for the food and lodging for the customer. Bovey Castle has made high training programs for the employee to tackle with the problem and can easily take care of the customers. Bovey Castle has provided total commitment to properly ensure the service towards the consumers based on five star. In order to maintain a high progress in the five star positions, the firm has tried hard to keep their position intact with the help from the team members. Bovey Castle has performed their business in formation of team work. There is a huge progress comes while working all the workers in the formation of team. The team has performed huge progress by hard working in the team (Lonial & Carter, 2015). Working in team has helped to maintain the five star positions for a long time and also made a huge progress in the competitive market. The manager of Bovey Castle has continuously made the position of working in the team, this helps in increasing the huge progress of the company in terms of business. This team is engaged with the innovating training programs that are maintained by the management of Bovey Castle.
Based on Competitive Market Stance
The market stance depends on the properly achieving of the goals at a high profit and increasing the market sharing. All the organization needs to improve the business based on the competitive market stances (Crotts, Davis & Mason, 2016). In order to maintain the high market stances helps in gathering the complete data of the market, developing of the innovative business and analysis of the business. There involves different sources of the market such as data of the agency, business etc. The market stance provides the analysis of the information that is made by the clients and is provided to the organizations. This information depends on the budget, experts from the economist.
The exact competitive positioning helps in creating the development of market value. This provides holding of the exact marketplaces for the competition (Paton, 2014). However, good strategy in the competitive position helps the firm in making market profile, analysis of the competitive, delivering of high market value and segments of the consumers. In the market profile, there belongs with growth, size and competitors of the market. In the competitive analysis, belongs with SWOT of the company that is strength, weakness, opportunity and threats. In the segments of the customer depends on the requirements of the consumers at the time for buying of products. In the delivering of the high market values depends on the company of delivering of the product towards the customer at high level.
Bovey Castle has provided the market stances from the agencies about the information of the budget planning and opinion from the economists. Moreover, the company holds high in the competitive market stances by working in a team. In the competitive analysis, Bovey Castle has SWOT analysis that depends on the working in their services. Bovey Castle has performed their high competitive positioning by maintaining their five star positions. This also helps to provide a high value in the market by working in a team (Lee, Kim, Seo & Hight, 2015). By maintaining a competitive position, it helps in building a high marketplace in the competitive market as well as maintaining a high position in the brand name. Bovey Castle has held high at the time of getting the market profile. This market profile includes with the growth in the service facility, increasing the size of company and other competitors.
YHA London Central has also performed business based on the competitive market stances. The company has made volunteers to work in the society. This helps in the development of the society by funding on the disabled Childs. Moreover, the firm has made a huge turnover from the previous year. The organization has made a huge progress on the competitive positioning by making a high positioning strategy. Moreover, the company has properly followed the positioning strategy to increase the competition with the other company. These includes with making of the market profile that belongs with the size of the firm, development in the growth and competitors. The company has always preferred the satisfaction of the customer at the time of providing services. By providing adequate facilities, firm has made social works for the betterment of the society. However, YHA has made a high value on the delivering of the services towards the consumers, though it is a small business enterprise. The firm gets a huge support from the volunteers group and additionally made a hostel for the youth.
By improving these things helps the YHA and Bovey Castle to improve their services for the consumers.
Past and current business information
In the following context comparison based on both outdated and latest business policies are given based on the following aspects:
YHA London Central is one of the nest Hostel facility giving better advice on local destinations which is to be visited, being a local tour guide. The Hostel provides Female Dorm, Male Dorm, Person private Room and many more (Lee, Y. H. A, 2013). YHA has evolved to be the best travel guide these days as the local hostel staffs provide relevant information about the local destination which attracts the maximum number of tourists.
The company Check -in time starts at 2 pm and ends at the midnight leading to a 24 hours front desk service with free breakfast and tour assistance. To gain a competitive stance against its rivals, the company evolved a bar/lounge facility as an added attraction to the customers (Kim, Y. H. A. 2013). The fees and deposits are excluding tax and is flexible enough as per customer needs. This gives the Company an extra benefit in comparison to other companies. It is a 4-star London hotel on Marylebone. YHA has a goal to reach out the youngsters and approach them in an evident manner providing self improvement solutions to the youth. The tradition of mixing up with others is very well follows in the company. The Company ACHIEVED a silver award as one of the top 100 employers YHA is focusing more on developing a team of young professionals providing tour assisting solution.
Reaching out Customers through better relationship
This year the company invested 44 million pounds to provide world class facility to the customer's (Lee, 2015). One of the latest steps taken by the company is the opening of YHA Berwick with a recorded number of more than 6000 overnight stays increasing the efficiency of operations. A new winter trading period has been undertaken by the company in order to mitigate the rising competition by the competitors in the same field (Pradit, & Kecharananta, 2013).
The investment programmer will be continued with further extensions in Ambleside Canterbury Melham Stanford on Avon as declared by the board of trustees. The board of members is intensely responsible for day to day management on the company’s side. The board of council includes delegates from all aspects of the society (Barnes, & Hoerber, 2013). The board of committees is responsible for all the council meetings assisted by the AGM plus a Board Trustee.
The Hostel revenues account to 39.8 million pounds in 2012 as compared to 39.4 million pounds in 2010. The 2011/2012 was a year of financial crisis for the YHA due to outdated policies while the functional surplus depleted by the year 2011.The business faced a decline of 21.38% making a fall in the overall sales and business. The Strategic capital strategy is made once in 10 years by the board members of YHA (Kalmijn, 2013). Investors claim that the funds estimate nearly 27 million pounds out of total 95 million pounds. The trustees make an accounting statement based on United Kingdom Accounting standards that is sufficient to reveal companies’ transactions enabling the viewers to know the company’s standard. Previously, the company the accounting standards were not sufficient enough to disclose all company transactions. However the company now complies with a better transparent operation enabling the company to prevent fraud and irregularities.
The board of council is responsible for the risk management if the organization accounting to major decisions of YHA’s risk management plan. The organization has special risk register that is responsible for risk management policy ensuring sufficient action is taken to cater the risk taking into account the compliance and corporate governance requirements. This gives proper exposure to the company’s profile (Mikkilä, Panapanaan, & Linnanen, 2016). The Risk management policy in the year 2006
The principal accounting, balance sheets and the cash flow systems os in accordance to United Kingdom Accounting standards, YHA audit work is totally undertaken by the company’s framework and regulatory body’s .The trustees are wholly responsible for the production of financial statements in order to obtain a clear view. The main regulatory body behind the auditing of YHA is Auditing Practices Board’s (APB’s) Ethical Standards for Auditors (Yücel, 2013). This gives a clear picture of financial and marketing strategy of the company which gives a transparency against the rival companies. The trustees estimate that there is a growing uncertainty that shows the ability of the organization in the competitive market. Income generated from the youth hotels in YHA for the service rendered is far less that the amount paid by the guest in advance for their overnight stay. Revenues grants are restricted funds that are accredited for special purpose underlying expenditures for the desirable fund. The investment once made, the relevant fund will be returned if it is restricted in any way.
Assets for particular investment is subjected to market change has led the trustees to particularly inclined to balance sheet and trading subsidiaries including net gain and losses. The expenditures include head office support costs, fundraising activities, chief executive cost and governance cost (Walton, 2013). The Financial liabilities subjected to corporate governance are presented exclusively in balance sheets. It is calculated so as to produce the rate of return at generalized costs. The interest elements of the capital balance give an added straight line basis on lease term. Contributors of the scheme are accounted for each financial activity in the current fiscal year. Schemes are evaluated on the basis of actuarial method subjected to corporate values.
YHA came up with pension benefits for the staff projecting the further advantages. However, the latest published actuarial valuation was at 30 September 2010 but previously it was expected that it would cover 6.2% per annum investment rates before retirement and 4% after investment (BelHadj, Hentati, Elfeki & Hamden, 2013). Recently, in order to mitigate the future liabilities the scheme was enclosed for the newly appointed employees at 31 December 2002. The growth plan confiscates the financial statements considering the results of valuation. In the year 2012 The Wilder hope Manor Fund was created to provide financial assistance for continual use of Wilder hope Manor which in turn prevents unscrupulous transaction end with the users not mentioned in the financial transactions.
It is concluded from the above context that even a small scale business like YHA have a range of opportunities to stand up as a milestone in the current fiscal policies subjected to market conditions agreeing to selected accounting policies. YHA can also achieve creative marketing stance to thrive in the particular market of Hotel line business with an overnight stay as one stop solution for the travelers. It gives an added advantage to the company if it provides clear transaction policies with lucrative facilities like bar, world class cafeteria and many more. The company has a board of trustees for the assessment of risks in order to mitigate the rising risk of the market (KIM, Y. H. A. & Jung, 2016).
The context has a broad comparison of YHA with Bovey Castle, a company from the same type of business. The validation of same type of business creates a significant market advantage if it provides better facilities at the same cost building customer relationship both qualitatively and quantitatively. The optimization of market condition gives proper segmentation of the consumers based on market effort. The comparison between current and past business policies indicates the present strategies are inclined more towards attracting large volume of customers by decreasing the overhead and surplus costs.