Unit 20 Business Health Check

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This Unit 20 Business Health Check enables learners to gain understanding of the focuses of the business, gain skills to develop plans, and evaluate and develop management and staff skills.

Unit abstract

This unit introduces learners to the process of carrying out a business health check. Learners will study how techniques can be applied to track the progress of a business and amend its direction depending on what is happening inside and outside the business at any time. Learners will consider issues such as turnover, profitability, sales and marketing, customer and employee satisfaction, quality of products or services, productivity and product development. They will also take into account the interests of stakeholders, such as owners, customers, staff, backers and suppliers. Learners will also develop techniques to review management and staffing skills and enable them to respond to new challenges. Learners must ensure that their evidence relates to the hospitality industry

Learning outcomes

1 Understand the focuses of the business

  • Focuses: current positioning of business, priorities, successes, distracters, current/future aims (short-, medium- and long-term), strengths and weaknesses, stakeholders, sources of advice and guidance, potential for business improvement
  • Factors impacting on the business: external, internal, resources, opportunities, threats

2 Be able to develop plans for businesses

  • Review: areas eg products/services, marketing, sales, finances, staffing; effectiveness, overall business performance, business image, record keeping
  • Business planning: forecasting eg for marketing and sales, design, productivity, quality, service, financial management systems; roles and responsibilities of staff and management, performance monitoring, laws and regulations (including updating), action planning, timescales, risk assessment, appropriate sources of advice, relevant information, information handling and administration

3 Be able to evaluate and develop skills of management and staff

  • Evaluate: monitor performance to include current experience, skills and abilities (technical, operational, managerial); effect of current performance on the business, assess targets set, other relevant information, make informed judgements
  • Planning and development: assessing re-skilling/up-skilling needs, setting clear targets, linking skills targets to business targets, advice and training, costs/benefits analysis
  • Support and advice: free and paid-for help, personal contacts, networks, fees, limitations of advice and support, record keeping


Essential requirements

Business priorities will vary and discussion groups will enable learners to consider a broad range of issues. In reviewing a business in order to develop plans, tutors will choose for learners group to work as a whole unit to support an existing business, or to use a case study. It is important to understand the development of health-check processes as the outcome of this unit. Capacity is limited by the time frame for delivering and assessing the unit and a wider coverage can be achieved through a group effort. Learners need to understand the range of support and help they can utilise when carrying out a business health check. Sources of advice and guidance learners will explore include business associates, business advice centres, business advisers, counsellors, coaches or mentors, specialist consultants, non-executive directors, accountants and other professionals.

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