...BUSINESS STRATEGY OF PREMIER INN Author’s name Class Professor School City/state Date Executive Summary This report tends to analyze strategic framework of the premier Inn hotel chains .In order for the analysis to be successfully implemented, the report has embraced the current strategy position within the sub unit part of the company. The analytical tools that will be used are PESTLE, Five porters’, SWOT, and value chain analysis. The analysis tends to show a very competitive market structure; faced within the harsh economic times in the hospitality industry. The differentiation strategy, implemented to the company has enabled it to deliver unmatched services to the customers in the UK. This report also analyses the internal and external environment in which premier Inn carries its own business. It will in further analyze the value addition chain of the company in terms of services offered to customers and look at the resources and competencies of the company holds. The industry current and future strategy is analyzed on the prevailing market conditions and the consumer demand .At the end of the report recommendations on the premier Inn will be provided to enable the business to be in a better competitive edge as they solve the current problems. They will solve the current weakness and threats while maximizing on the strengths and opportunities. Table of contents 1. Introduction 4 2. External environment Analysis 4 2.1 PESTEL 5 2.2 Porter’s five forces model 8 3. Internal...
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...PESTLE Analysis There are certain factors in macro-environment that could affect decision making and strategies of organizations. Sudden Changes in Tax, Imposition of Laws, Increasing or Reducing Trade Barriers, Cultural & Demographic Changes and Changes in Political Environment & Government Policy are some of the key examples of macro environment. These changes could bring certain positives as well as negatives for every business. PESTEL (Political, Economic, Social, Technological, Environmental and Legal) Analysis is a tool which is widely used by business managers for analysis of these critical factors. It is very helpful for development of strategic decision making. The Premier Inn’s PESTLE Analysis below critically evaluates and identifies different strategic in a competitive and dynamic environment. Political Positive and pragmatic collaboration with UK Government has brought Hospitality Industry into key success area of economic development in UK. Hospitality is the UK’s fifth largest industry, directly employing more than 2.4 m people and contributing over £34bn in gross tax revenues. As the generator of eight per cent of total employment, the industry is ahead of the financial services, transport and communications, and constructions sectors. Prime Minister David Cameron has recognised that tourism is one of five ‘big-ticket’ industries of the future and one that the government ‘should get behind’ especially as for every 0.5% increase in the UK’s share...
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...Airbnb vs. Premier Inn: the rise of “collaborative disruption” Peer-to-peer consumption is on the rise. Many companies are now leveraging the phenomenon of “decreased barriers to interaction” brought about by internet and social networks to help their users rent each other’s houses, cars, parking space, cooking skills and much more. Airbnb allows users to rent out their idle living space (couch, room or their entire house) to generate extra revenue. By providing people seeking accommodation with an alternative to hotels, Airbnb’s platform also directly competes for a chunk of the hotel hospitality business. In this essay, we will argue that Airbnb will continue being a successful business, possibly at the expense of incumbents focused on price differentiation, such as Premier Inn1. In order to support this argument, we will start by analyzing Premier Inn and it’s competitive environment using Porter’s2 article as a main point of reference. We will then focus on Airbnb, and why the company will continue being successful in the next years. First we will see how the company has advantageously positioned itself to ride current economic and technology trends, setting up its future success. We will also look at Airbnb’s disruptive innovations on both the supply (opportunistic, non-professional hosts) and demand side (price conscious over-served guests), and how these were stepping to access to higher customer segments. Finally we will argue that Airbnb has found a distinctive set of...
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...Macro-Environment. These factors can bring opportunities or threats hence why managers need to ensure they are aware of them to ensure the company maximize sales and doesn’t go out of business (Baines et al, 2008). The main purpose of this report is to analyse how the Premier Inn marketing strategies relate to the current macro-environment. To enable me to critically analyse this I have taken the 3 forces; Economical, Technological and demographic. Firstly however I will review the theory on this topic. 2. MICRO-ENVIRONMENT The micro-environment forces can be summarised as the forces that directly affect the business (Armstrong et al, 2009). Evan’s (1988) believes that as they are directly affecting the business, they are much easier to identify than macro-forces which are ‘knock on effects’. The common micro-environment factors are: other departments (within the company), suppliers, marketing intermediaries, customers, competitors and public (Armstrong et al, 2009). The company will need to build relationships with these forces to enable them to sufficiently receive and provide information, create agreements that benefit both parties and to avoid negative publicity (Gillespie, 2011). 3. MACRO-ENVIRONMENT The macro-environment factors are the influences that indirectly affect the business (Armstrong et al 2009); it is also known as ‘the wider environment’ as it covers...
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...good corporate strategy as the basis to help them to compete successfully at a business level by adding values to the separate parts of the business or by using synergies or channeling resources between business units. This report on Whitbread will be oriented in answering this question: What market or businesses should whitbread invest in, including diversification in related activities, entering new market, new geographies and how much to invest in each business so as to maximise its long-run profitability? First, after giving the mission and vision of the company, we discuss the internal and external environment with relevant models. Secondly, the design formulation of the business portfolio strategy to answer our question and thirdly, we give a conclusion. This approach will help the corporate parent to use its core competencies in an effective and efficient manner to help its multi-domestic strategy to earn above-average returns. WHITBREAD ENVIRONMENT ANALYSIS 1. INTRODUCTION Established in 1742, Whitbread is one of the UK’s oldest and well-respected companies. The story really begins in August 1720 with the birth of Samuel Whitbread, who began his brewing apprenticeship in 1736, then founded his first brewery six years later. In 2001, Whitbread become the company it is today. They sold their breweries and left the pub and bar business, refocusing on the growth areas of hotels and restaurants. Their reinvention as the UK's leading hospitality business naturally coincided...
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...main business strategy over this period ......................................................................... 2 2. Horizontal & vertical analysis for the cash flow statement ............................................... 3 3. Financial statement analysis (for each year) .......................................................................... 5 3.1 Cash flow analysis ...................................................................................................................................... 5 3.2 Working capital changes .......................................................................................................................... 6 3.3 Ratio analysis ................................................................................................................................................ 7 5. Reference ............................................................................................................................................... 11 6. Appendix ................................................................................................................................................ 12 1. The main business strategy over this period Whitbread Plc, a British hospitality company, currently positioned 59th on the FTSE 100 index (stockchallenge). There are two main business divisions...
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...Company sold its distilleries and left the pub and bar business, refocusing on the development zones of hotels and restaurants. Company’s re-examination as the UK’s driving hospitality business characteristically corresponded with the consummation of this current nation's preparing and pub-owning convention, began by Samuel Whitbread once again 250 years prior. Whitbread’s current position Whitbread is an individual’s intensive industry having 43,000 workers attending some 22 million customers each month, from 2,800 United Kingdom based outlets. Whitbread has conveyed one more year of solid double digit development, with collective sales up 13.0%, basic pre-tax benefits up 16.5% and EPS up 20.1%. This, joined with its great cash-flow, has driven the board to suggest an entire year profit increment of 19.9%. This amplifies its reputation of double digit development, with sales growing by 11.4% in the course of the most recent five years and EPS and dividend per share becoming by 14.7% and 13.5% respectively. (Whitbread Investors,...
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...To:$Tom$Keltner,$CEO/Americas$ From:$0619$7389$ Date:$February$16th,$2008$ Re:$Future$CRM$direction$and$Strategy$ $ It$is$proposed$that$Hilton$Hotels$Corporation$reinvest$approximately$$2$million$dollars$in$the$OnQ$CRM$ initiative$with$the$focus$on$a$more$targeted$approach$to$better$serve$the$diverse$Hilton$portfolio.$This$ tactic$addresses$the$objective$of$significant$growth$given$the$key$issue$of$achieving$service$ standardization,$a$typical$challenge$of$service$delivery$operations.$$With$Blackstone’s$capital$backing$ (see$Exhibit$A),$the$perfect$opportunity$is$presented$for$Hilton$to$reinvest,$revamp$and$expand$the$OnQ$ CRM$program$to$ensure$excellent$service$in$their$existing$and$upcoming$hotels.$ $ In$evaluating$CRM’s$performance$to$date,$several$measures$were$examined.$Total$calls$have$increased$ by$15.31%$since$the$CRM$strategy$launch$(see$Exhibit$B),$net$revenue$per$call$have$been$steadily$ increasing$(see$Exhibit$C),$and$there$has$been$a$1.12$billion$dollars$increase$of$revenue$through$the$call$ center$(see$Exhibit$D).$$This$can$be$explained$due$to$the$decreased$talk$time$on$the$phone$that$was$ achieved$as$OnQ$allows$agents$to$quickly$have$all$the$needed$information.$Even$if$this$result$was$only$ 0.54%$(see$Exhibit$D)$due$to$the$CRM$initiative$(or$1%$given$new$suggested$spending),$Hilton$would$ breakeven$on$it’s$minimal$annual$maintenance$expense$for$CRM$(see$Exhibit$D).$CRM$has$also$provided$ Hilton$Hotels$with$a$competitive$advantage.$RevPAR$Index$was$used$as$a$brand$competitiveness$...
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...Market Report Plus 2013 27th Edition June 2013 Edited by Leah Tutt ISBN 978-1-78304-020-9 Hotels Hotels Foreword In today’s competitive business environment, knowledge and understanding of your marketplace is essential. With over 30 years’ experience producing highly respected off-the-shelf publications, Key Note has built a reputation as the number one source of UK market information. Below are just a few of the comments our business partners and clients have made on Key Note’s range of reports. “The test of any marketing strategy and plan lies in the quality of information used, upon which marketing judgments and decisions are based. Quality is the key word here. The Key Note reports are an excellent source of such quality information, covering a wide variety of product sectors.” The Chartered Institute of Marketing “We have enjoyed a long-standing relationship with Key Note and have always received an excellent service. Key Note reports are well produced and are always in demand by users of the business library. Having subscribed to Market Assessment reports for a number of years, we continue to be impressed by their quality and breadth of coverage.” The British Library “When we are putting together strategic information for presentations to major retailers and Symington’s Board, the combination of Key Note’s market research and company information proves invaluable. It is accurate and easy to use, and provides us with important insight that we cannot get elsewhere...
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...for Marriott as a whole. Dan Cohrs is faced with making recommendations for the hurdle rates at Marriott Corporation and its three divisions utilizing CAPM and WACC. This case illustrates how to calculate beta based on comparable companies and to lever betas to adjust for capital structure; the appropriate risk-less rate and market risk premium; the choice of time period to estimate expected returns and the difference between the geometric and the arithmetic average as a measure of expected returns. SYNOPSIS Marriott Corporation began in 1927, and over the next 60 years, the company grew into one of the leading lodging and food service companies in the US. In 1987, the Marriott's annual report stated, "We intend to remain a premier growth company. Our goal is to be the preferred employer and provider, and the most profitable company". Marriott's profits were $223 million on sales of $6.5 billion. In April 1988, vice president of project finance at the Marriott Corporation, Dan Cohrs, must prepare annual recommendations for the hurdle rates at each of the firm's three divisions, including restaurant, lodging, and contract services, as well as Marriott Corporation as a whole. The company's restaurants, such as Roy Rogers and Hot Shoppes, provided 13 percent of 1987 sales and 16 percent of profits. Lodging operations included 361 hotels and more than 100,000 rooms, and generated 41 percent of 1987 sales and 51 percent of profits. Contract services provided...
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...2006).Trends in global tourism have shifted remarkably over the last decade. Information technology supports the increased sophistication of travellers (Chen and Sheldon 1997), who seek greater variety in their travel arrangements and expect personalized services that meet their unique needs (Sheldon 1993). Previously, travellers received information about destinations through books, brochures, promotional videos, word-of-mouth, travel agents or tourist offices. Tour operators create, arrange and operate tailor-made tours and travel programmes which they market to the customer either through travel agencies or directly via websites, TV adverts and call centres. There are four major players dominate the outbound sector. Leisure is big business. The leisure industry encompasses sport and recreation, health and fitness, betting and gambling. Whether you want to spend your relaxation time actively - by going to the gym, playing your favourite sport, visiting your local theme park, or passively - at the cinema, the bingo hall, or the casino, the leisure industry can cater for your every mood. Background: Intercontinental park lane London is one of the most prestigious outlet of world first hotel brand? Intercontinental hotels and resorts. The brand is being introduced as international hotels corporation on 4th of April in 1946. For the sake of worldwide development the name was changed as intercontinental hotels corporation in1947 and started voyage from Belem, Brazil in 1949...
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...Q1. Marriott’s growth objective is to remain a premier growth company with preferred employer, preferred provider and the most profitable company, which means Marriott intend to outperform the average market. Considering the above information, Marriott’s financial strategies are consistent with its growth objective. To be more specific, firstly, Marriott actively manages hotel assets using syndication method with a fully integrated development process rather than passively own it. For example, Marriott developed more than $1 billion worth of hotel properties, making it one of the 10 largest commercial real estate developers in the US, which partly contributed to its high growth rate. This reduces the balance sheet assets and thus increase return on assets (ROA), which is a key indicator of profitability. Secondly, in investment area, Marriott uses separate WACC for different division of project to value each opportunity in order to maximally increase shareholders’ value. On condition that the forecasted cash flow and hurdle rate are not biased, the company’s method enables the corporation to only invest in profitable projects, which increase shareholder value. Thirdly, in financing area, Marriott makes the most of its capital structure, especially optimizing the use of debt, intending to minimize the cost of capital while focusing on its ability to service its debt. Lastly, in capital market, by repurchasing undervalued shares, Marriot would have an expected increase in share...
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...BUSI 642 3 June 2012 Case Study 3 Building Assets to Ensure That the Lowest-Level Employees Are Not Left Behind According to the case study, managers are undoubtedly conscious of the convincing indication that authorizes that companies stand to increase when they distribute their profits with personnel. Furthermore, the article demonstrates how managers are mindful of the disagreement that to interest favorably experienced workers, companies must offer bonuses like higher salaries and stock options. This study detonates the misunderstanding that fiscal incentives function too inversely across the corporate scale to be exchangeable to low-level employees. Through widespread examination of asset building throughout all stages of the business, this study determines how one company decreased their turnover rates in half and reduced accident rates as well as training and recruitment expenses. There are several challenges of designing an asset-building program presented in this case study. Managers have a responsibility to cultivate a work atmosphere where the employee meets the requirements of the organization, and the organization meets the necessities of the employee. How to choose the right incentives so the profit sharing plan will motivate the employees is a difficult decision for any organization. In this case study, profit at the bottom of the ladder, building assets, linking asset building programs to improved performance are thoroughly examined. The authors examined...
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...Ginger: Smart BasicsTM Roots Corporation Limited develops and operates a fast-expanding chain of economy hotels across India under the “Ginger” brand. There is currently a lack of competition in the branded economy hotels segment and Ginger is the only branded economy hotel chain in India. The Ginger hotels are built around a concept that provides facilities to meet the key needs of today’s traveler, at affordable rates. Ginger faces challenges in different aspects of its business as it aims to deliver consistently, quality service to the customer and manage customer expectations. COMPANY BACKGROUND Exhibit 1: The proportion of hotel segments across Indian cities. Jaipur Cochin Goa Pune Hyderabad Bangalore Chennai Kolkata Mumbai Delhi/National Capital Region Budget Mid-market First class Lurxury Roots Corporation Limited (RCL) is a wholly-owned subsidiary of The Indian Hotels Company Limited (IHCL). IHCL is a part of the Tata Group of companies (see www.tata.com), India’s premier business house. Taj Hotels Resorts and Palaces comprises 77 hotels, 7 palaces, 6 private islands and 12 resorts in 40 locations across India with an additional 18 international hotels in the Maldives, Mauritius, Malaysia, Australia, UK, US, Bhutan, Sri Lanka, Africa, and the Middle East. Incorporated on 24 December 2003, Roots Corporation Limited operates the first-of-its-kind category of Smart Basics™ hotels across India. Launched in June 2004, the Smart Basics™ concept created a revolution...
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...Marketing Plan For “The Royal Bed & Breakfast” Introduction to the Company Executive Summary: At the heart of our company is a commitment to providing a quality bed and breakfast experience to all visitors in the NijhumDwip- St. Martin’s Island. With the availability of color tours in the fall and a spectacular season of fun and sun in the summer, Nijhumdwip is a year-round tourist destination for thousands of travelers. The Royal Bed & Breakfastis to capitalize on that tourist traffic and focus on providing a popular stop for those exploring the region. This plan serves to illustrate the profit potential that can be obtained through the renovation of an existing structure that serves a specialty clientele. If done with flair and a sense of style, it is our belief that we can turn Fantasy into a reality. COMPANY DESCRIPTION The Royal Bed & Breakfastis aiming to be one of the most exclusive and upscale establishment of its kind in the St. Martin’s Island area. The Royal Bed & Breakfastwill take a solid hospitality approach to the bed and breakfast industry and carve out a specialty niche in the marketplace. The charm of The Royal Bed & Breakfast will come from its unique perspective in selling romance and escapism to a popular demographic pool of urban professionals in the St. Martin’s area. The specifics of this plan are illustrated below. Building Description The structure selected for The Royal Bed & Breakfast is both prominent and...
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