PUNCH TAVERNS

Assignment: Business Health Check

Introduction1

Task 1: Understanding the Focus of the Business1

1.1 Analyzing the Objectives of Punch Taverns1

1.2 Explain factors that impact on Punch Taverns2

1.3 Determine Potential Improvements to the Business Organisation2

Task 2: Plan for Business3

2.1 Review the Effectiveness of Punch Taverns3

2.2 Development Plan to Improve the Business4

Improvement Plan5

SWOT Analysis5

Task 3: Be able to evaluate and develop skills of management and staff7

3.1 Current Skills of Management and Staff7

3.2 Devise and Justify Plans for the Development of Skills for Management and Staff at Punch Taverns7

Conclusion9

References10

Assignment: Business Health Check

Introduction

This paper is consists of three tasks based upon a scenario given. The scenario is principally about the business performance of Punch Taverns, which is underperforming since few years. The company is planning to shut 1800 of its outlets across England. This paper is primarily a critical analysis and plan upon the strategies and factors that led Punch Taverns to reach this point. The given tasks for this paper are solved as follows.

Task 1: Understanding the Focus of the Business

1.1 Analyzing the Objectives of Punch Taverns

According to the scenario provided to elucidate upon the objectives of Punch Taverns; there are a couple of objectives of the organization that are given in the scenario. Both of these objectives are described as follows;

First and foremost objective of Punch Taverns is to rescue its returns.

The scenario is defining that 1800 of the franchises of Punch Taverns are under serious business loss, which are considerably becoming the reason for the dipping return on investment for the organization. Therefore, the company has decided to gradually close its 1800 outlets across UK. However, the most foremost aim is to close 400 to 500 franchises this financial year; at least to stabilize the impacts of losses.

Another objective of the organization is to increase its fortunes rating.

This can be achieved through closing its worst performing business units, the company can only run those franchises, which are profitable to the organization means that the company has to focus upon positive business units, which are generating adequate revenue, rather than getting into haphazard and managing both positive and negative businesses outlets. This would though lead company to less number of outlets across the region; but would give a positive response in term of every outlet will provide profitable return.

1.2 Explain factors that impact on Punch Taverns

There are various factors that had become the cause of downfall in the performance of Punch Taverns. Amongst them the most important factors are discussed as follows.

The administration of certain pubs and outlets are not so efficient to please the customer.

Poor commitment from Senior Management to Senior Bondholders.

All the above-mentioned factors are further discussed in this description. The Poor Administration is considerably of the most important factor, which has led to the failure of several of the outlets of Punch Taverns (Pratten, 2007, pp. 614). I would definitely not say that administration is the mere reason of failure amongst 1800 outlets; however, this is considerably the root cause of most of the other factors also that has impacted upon the ...