Business Health Check - Whitbread Plc

BUSINESS
HEALTH
CHECK

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Analyse the objectives of business...................................................................................1
1.2 Define the factors that impacts business operations in a considerable manner................2
1.3 Determine potential improvements for the business organisations and their operations. 6
TASK 2............................................................................................................................................7
2.1 Review the effectiveness of business in context with different organisational functions 7
2.2 Develop plans to improve the business, justifying their value.........................................9
2.2 Develop plans to improve the business, justifying their value.......................................10
TASK 3..........................................................................................................................................12
3.1 Evaluate the current skills of management and staff......................................................12
3.2 Devise and justify plans for the development of skills for management and staff.........13
CONCLUSION..............................................................................................................................14
.......................................................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Business health check is defined as current comprehensive evaluation of those elements
which are crucial for the business operations. It provide different aspects to business persons so
that organisational activities can be viewed from the opinion of experts. Health check of business
organisation will includes a diagnostic on business and the achieved outcomes will define
strength of businesses along with required improvements (Borchers, Chang and Gershwin,
2017). This assignment is written in context with Premier Inn which is a Britain based hotel
brand, headquartered in Dunstable, UK. Hotel is a subsidiary of Whitbread Plc and established in
1987. This report is going to cover mission, vision and objectives of business along with the
factors that impacts business in a considerable manner. Also, potential improvements for
business and its operations are discussed. Effectiveness of business is reviewed and plans are
prepared to improve the business by justifying their value. At last, current skills of management
and staff are mentioned along with plans for skill development in the staff and management.
TASK 1
1.1 Analyse the objectives of business
Premier Inn is a UK based hotel brand which is a subsidiary of Whitbread plc,
headquartered in Dunstable, UK. Hotel was founded in 1987 and grows as a largest hotel chain
in global context. At present hotel is successfully operating at more than 780 locations with more
than 72,000 rooms available for customers. Main areas where organisation offers it services are
America, Middle East, Asia-Pacific, Europe and Africa. Premier Inn offers facilities like lodging,
meetings, timeshares, convention and food services to their guest and customers. It is a full
service hotel which is well known for their dependability, comfort and value (Camp and et. al.,
2019).
Mission: Main mission of hotel is to make a difference in life of people which uses their
facilities or services by offering personalised services and superior products. Offering
personalised service will benefits the hotel in attaining large customer base due to which sales
and profits will increase.
Vision: To became the best four star hotel in global context. To achieve this vision,
company is needed to gain competitive advantage over rival companies by offering standardised
services to their customers.
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Objectives: There are two kinds of objectives which every organisation wants to achieve.
These are short and long term objectives. In context with Premier Inn , these objectives are
mentioned below:
Short term objectives
 To enhance revenues of company by 15% in upcoming four months.
 To increase the profit margins of company be 10% in next one year.
 To formulate expedition that will satisfy the desires and exceptions of guests in a proper
manner.
 To identify the current social, economic and cultural issues that impacts the services
offered by hotel management.
Long term objectives
 To provide standardised services and faculties to people which seeks relaxing, enjoyable,
memorable and comfortable experience with their family and friends.
 To create a rich guest experience while recognising, caring and respecting the needs of
their workforce.
 In local communities, company initiates programs and activities to prevent environment
from ill business activities.
 To provide appropriate facilities to guests by taking suggestions from holidaymakers so
that high profits can be earned.
1.2 Define the factors that impacts business operations in a considerable manner
There are several internal and external factors which impacts the business operations of a
company in a considerable manner. These factors can be identified and evaluated with the help
of macro and micro environmental analysis such as PESTLE and SWOT framework. Beside this,
to find competitive edge in market place, manager in Premier Inn can use Porter's five forces.
All these frameworks will benefits in identifying the factors which influence business operations
of Premier Inn in a proper manner (Fotiadis, Vassiliadis and Piper, 2014).
SWOT analysis of Premier Inn
SWOT framework is abbreviated as strengths, weaknesses, opportunities and threats.
This strategic tool will benefits the company in acknowledging their strengths and weaknesses
while performing their business operations. Beside this, it will helps in identifying those factors
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that can acts as an opportunity or threat for a particular business. In context with Premier Inn ,
SWOT analysis is mentioned below:
Strengths Weaknesses
 Occupancy rate of company is above
80% and company earns high profits in
regions where they operate.
 It is the largest hotel brand in UK with
more than 70,000 rooms at around 700
locations.
 Hotel provides different offers and
deals to their customers while online
booking.
 Company posses a huge network of
supply and distribution.
 Hotel faces big issues with hygiene as
employees in housekeeping department
are found using guest towels for toilet
cleaning.
 Compared to other market giants,
Premier Inn operates in limited
countries due to which they have less
access to high customer base.
 Company charges extra amount for
facilities such as parking, Wi-Fi etc.
which are offered by rival companies
for free.
Opportunities Threats
 Company can initiates more strategic
tie-ups with international businesses to
expand their services.
 Hotel can invest more in digital
marketing so that customers can use
their services through advanced means.
 Hotel can go for market development in
which existing services will be offered
to people in new regions to attain high
revenues.
 Economic recession in UK economy is
the biggest threat to the success of
Premier Inn.
 Threat from competitors such as
Holiday Inn and Travelodge is high as
they offer same services in less price.
 Due to the carelessness in hygiene and
other issues, hotel faces a high risk of
legal actions.
By identifying strengths and weaknesses, manager in Premier Inn can take decisions in a
timely and proper manner so that company can achieve high growth. Also, threats and
opportunities will benefits company in taking decisions for future in appropriate way.
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PESTLE analysis for Premier Inn
PESTLE analysis is the best framework for an organisation to identify those factors
which impact business and its activities. By understanding environmental and social factors,
strategic management can be performed desirably. This framework will benefits the manager in
Premier Inn to acknowledge external factors that impacts activities of hotel in a proper manner.
In this context, PESTLE analysis is mentioned below:
 Political factor: These factors are related with taxes, tariffs, custom duties and political
stability of a nation. Main target for Premier Inn is to attract the attention of national and
international tourists. For this, appropriate support is given by UK government in form of
subsidies but they charge high taxes on star and luxury categories of hotels. For example,
due to decreased tax rates, Premier Inn has attained high profit but increase in VAT rate
can negatively impact the performance of hotel in UK (Gallie and et al, 2012).
 Economic factor: This kind of factors include economic growth, inflation rate, exchange
rate, tax rates, GDP, currency fluctuation etc. Economic changes can considerably
impacts the behaviour of business organisations. Due to financial crisis that takes place in
2008, Premier Inn got advantages as they offer services in reasonable prices as compared
to competitors. Operating in region with high economic growth will benefits the hotel in
earning high sales and profits due to the disposable income of people. If interest and
inflation rate in a country is high, it will reduce the purchasing power of people due to
which business of Premier Inn will suffer.
 Social factor: It is related with the living standard, lifestyle, perception, needs and
demands of people living in a particular region or place. Income distribution of people
clearly defines the opportunities for Premier Inn. If living standard of people will be high
then this will encourage them to spend more money on visits, trips and travelling due to
which revenues and sales of concerned hotel will increase. If Premier Inn will provide
those facilities which do not match the expectation and comfort level of UK people, loss
of revenues will be faced by company.
 Technological factor: Due to the increased use of internet browsing, digital media,
computers and mobile application, visibility of Premier Inn in front of customers have
increased. Due to rise in social media, it became easy for manager in Premier Inn to
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target large audience in a short time span and acknowledge their needs in a proper
manner. Updating technology and implementing it to perform business activities will
benefits the organisation in achieving wide customer base due to which high revenues
and profits can be earned. But due to increased communication technology, demand for
business travel has decreased which can impact reservations of hotel in a negative
manner (Green, 2018).
 Environmental factor: Climate change in global context have impacted Premier Inn in a
considerable manner. Due to change in weather and climate, working of hotel get
impacted in a considerable manner. Unsuitable climate can impact revenues of Premier
Inn in a negative manner. Beside this, there are different environmental policies which
are formed by government in UK. Following them will benefits Premier Inn in sustaining
a strong brand image and if manager of company will avoid it, then it will results in
reduced image of company in front of customers.
 Legal factor: These factors are related with legal laws of a nations. These aspects are
basically concerned with laws which are formed by UK government for protecting
employees, customers and organisations from partiality. If manager in Premier Inn will
follow all legal laws and norms then organisation will be able to work in a proper
manner. If manager in Premier Inn will not follow legal aspects, company will have to
pay heavy taxes and fines. Beside this, victim employee can file a case on hotel too.
Porter's five forces
This tool of strategic planning benefits an organisation in acknowledging its competitive
edge in marketplace. This model includes five kind of forces which shapes up the overall
competition within industry. In context with Premier Inn, these forces are mentioned below:
 Rivalry among existing firms: In hotel industry, rivalry among rival companies is high.
Main competitors of Premier Inn are Holiday Inn, Hyatt regency, Marriott, Sheraton etc.
which offers standardised services. In context with Premier Inn, company is needed to
provide better service than rivals to sustain a strong presence in market (Hameed and
Waheed, 2011).
 Threat of new entrants: To set up a hotel chain, heavy investment is needed. In this
context, government is supporting business persons interested in this field. Due to this,
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threat from new entrants is high. Manager in Premier Inn is required to offer standardised
service in low price so that customer will not change their preference to new alternatives.
 Threat of substitutes: This force is not significant for hotel industry. Substitutes for
services of Premier Inn is staying at the place of friends or renting home stays which are
time consuming. But due to advanced technology in communication and interaction,
business trips and visits of people have reduced which is a big threat for revenues of
Premier inn.
 Bargaining power of buyers: This force is high in case of Premier Inn. If company will
not offer services as per the demands of customers they can switch towards the services
offered by other businesses.
 Bargaining power of suppliers: For hotels, bargaining power of suppliers is high as
every hotel needs raw material and resources to provide facilities as per customer
demand. If suppliers will stop supplying then it is not possible for Premier Inn to provide
service to customers.
With the help of these frameworks, company will get to know different internal and
external factors that can impact them either in positive or negative manner. This will benefit
manager in taking right decision due to which organisational objective will achieve desirably.
1.3 Determine potential improvements for the business organisations and their operations
Ansoff's matrix : Ansoff's matrix is widely use by companies to develop their marketing
strategy. This generally focuses on firm's existing products and customers. Ansoff's matrix is
known as product and market expansion grid. Premier inn will adopt this to understand if their
organisation is to grow in the long term as they can't stick with the old business ideas to survive
in this competitive era. To grow and develop they will look for the new ways to expand their
business for which they can focus on the Market penetration, product development, market
development and diversification.
Market penetration : It is the low cost strategy that a firm uses. Here the firm seeks to
achieve growth with existing products in their current market segments . Premier inn is well
known for providing best restaurant services and for maintaining this they will try to cover large
market share by their continuous effort to stay ahead in the customers mind . This can be
achieved, if the hotel decreases prices of their services , or by increasing their promotions
(Heerde and et al, 2013).
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Product development : Here the firms develops new products targeted to its existing
market segments .Premier inn will try to achieve growth by developing innovative products and
services in existing market where they are operating . Innovative products or services can be –
 plates and dishes line production to minimize the cost and to introduce their own plates.
 Using helicopters for transporting their special guests from airport to the hotel.
Market development: In this strategy , a firm tries to put its existing product into an
entirely new Market. Premier in can do this by adding new services by the hotel to their
customers. This can be achieved by expanding business in new countries like MOROCCO ,
MALDIVES etc where there is fresh market and new religion. Expanding branches will leads to
increase profitability.
Diversification : In this the organisation tries to achieve growth in the new market by
introducing new products and services for the customers . Premier inn can diversify their product
line in :
 Premier coffee chain – Establishing a new chain of coffee under the name of Premier will
help to grow their market share.
 Sea cruise tourism company – Establishing a company performing a sea cruise facilities
under the name of Premier inn with the same standard will increase their market value
and share .
Company can use market penetration strategy in which existing services offered by
company will be provided to customers in new region and places so that high sales and revenues
can be earned.
TASK 2
2.1 Review the effectiveness of business in context with different organisational functions
Business effectiveness is a concept represent the effectiveness of a business in achieving
the targeted objective. It is related with various key areas which are talent management,
leadership Development, organisation design and structure, implementation of change and
positioning smart technology to manage a business human capital. Premier Inn which is a mid
priced hotel has focus on offering limited service at reasonable price. The hotel target upper
economy of market segment and provide services at low- price lodging.
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There are several areas in hotel who works allied to build business effectiveness and there are
specific areas which has major role in building effectiveness which are-
 Services - The services refers to the value provided by a business to their customer
which increases their satisfaction. The department maintain quality of services before
delivering it to customer. The Premier Inn provide accommodation and additional
services to their customers. The additional services are spa & wellness, Golf desk and
arrange events for entertainment purpose which increases the effectiveness of hotel.
 Marketing - This marketing is related with activities related to promoting a business to
their target customers about their product and services. Effective marketing results in
long-term success, profitability and growth in market share. The Premier In is involved in
a ad campaign called 'stay smart' that result in achievement of superior feat by ordinary
people such as performing like rock star. Marketing department provide information to
other departments which results in effective key feature for hotel.
 Sales – The sales is related to activities which are required to generate revenue and assure
that increase in sale results in increase in profits. The Premier Inn use all the possible
channels to sell their services and all the activities are performed by channel manager
such as booking management, coordinating sales channel and checking company website
connection. The effective operation of these activities results in better sales of hotels.
 Finance - Finance is related with auditing, accounting and planning for financial
requirement. The Holiday Inn has developed a Microsoft Dynamic NAV ERP and this
manges the financial planning and monitor all the process involved which result in
accurate forecasting of financial needs of hotels which result in utilisation of financial
resource effectively and result in effective performance of company.
 Staffing - This staffing includes selection of important assets of business which are
people and it involves in selecting right people for right jobs. The HR manager of
Holiday Inn is to design and develop a culture which makes them motivated towards their
job and formulate performance measurement strategies which is a effective feature of
company.
 Business image- This is a manner in which business represent their business to public
which are consumer, investors etc. It is visualised through the branding and use of
trademarks and include activities like product design, advertising , public relation etc.
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The Premier Inn has used the branding to create the image through telling customer about
the class of service hotel provide and at what prices and they deliver nest quality services
with all other facilities.
2.2 Develop plans to improve the business, justifying their value
Business plan is a written document which includes goals and objective of organisation
and explaining the methods to attain the goals. Premier Inn formulated a business plan to develop
their hotel and the plan is aligned with the other functional areas and the plan includes
Following steps-
 Executive Summary- This refers to summarising the key points of business plan which
will help reader in analysing the document. The premier Inn is preparing business plan to
expand their hotels in new country which require detailed information of activities to be
performed.
 Company Analysis- It involves the detailed information related to the unique selling
features of company. Premier Inn provides on-sites restaurants who serves breakfast to
neighbouring hotels which shows food is the unique selling feature of the hotel.
 Industry analysis- This involves proper study of the factors that are involved in industry
and will affects the operations of hotel. The Premier Inn analyses the current trend
prevailing in the industry and invested their fund in that.
 Customer Analysis- The company need to understand the nature of target market
including demographic, psycho-graphic etc. The premier Inn analyse the type of guest
stays in the hotel and how the needs are satisfied of the target segment.
 Competitor Analysis- The Premier Inn study the local competition of area through swot,
pestle, porter's five force model and ansoff matrix.
 Strategic Plan- This plan is combined with planning of marketing activity and selling
and distribution. The Premier Inn analyses the ways to attract customers and use this
information to plan for marketing or promotional activity. The deciding channel of
distribution is involved and the hotel uses 1st party channel of distribution.
 Operations plan- This plan includes the responsibilities of job and the activities related
to running of hotel. The Premier Inn decides that how much manpower is required to run
their hotel and on what basis of standard they will provide services. It involves
management of Inventory and choosing of supplier.
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 Financial Plan- It involves the planning for financial requirement which will occur in
future and taking decision regarding funding. The Premier Inn has formed financial in
which required capital, operating expenses and techniques of revenue generation of the
next five years. The hotel research about the methods of generating fund and select
according to the pay back period.
 Key Milestones- This involves key factors that are involved in setting up a hotel which
are location selection, staffing and training, build-out, permits and license and GOP break
even. The Premier hotel has opened their hotels globally and in their expansion these key
factors are considered.
 Monitoring and Evaluation of plan- This is the last stage of plan where whole plan is
reviewed again through monitoring the progress of plan. The Premier Inn monitors and
evaluate the plan through comparing actual performance with planned performance.
2.2 Develop plans to improve the business, justifying their value
Business plan is a written document which includes goals and objective of organisation
and explaining the methods to attain the goals. Premier Inn formulated a business plan to develop
their hotel and the plan is aligned with the other functional areas and the plan includes
Following steps-
 Executive Summary- This refers to the statement involving mission, vision, target for
company is developing plan. The objective represents the aim of company. Premier Inn
formed the summary of plan which involves all the necessary details related to plan.
 Company Analysis- It involves the detailed information related to the unique selling
features of company. Premier Inn provides on-sites restaurants who serves breakfast to
neighbouring hotels which shows food is the unique selling feature of the hotel (Lussier,
2011).
 Industry analysis- This involves proper study of the factors that are involved in industry
and will affects the operations of hotel. The Premier Inn analyses the current trend
prevailing in the industry and invested their fund in that.
 Customer Analysis- The company need to understand the nature of target market
including demographic, psycho-graphic etc. The premier Inn analyse the type of guest
stays in the hotel and how the needs are satisfied of the target segment (Wang and Byrd,
2017).
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 Competitor Analysis- The Premier Inn study the local competition of area through swot,
pestle, porter's five force model and ansoff matrix.
 Strategic Plan- This plan is combined with planning of marketing activity and selling
and distribution. The Premier Inn analyses the ways to attract customers and use this
information to plan for marketing or promotional activity. The deciding channel of
distribution is involved and the hotel uses 1st party channel of distribution.
 Operations plan- This plan includes the responsibilities of job and the activities related
to running of hotel. The Premier Inn decides that how much manpower is required to run
their hotel and on what basis of standard they will provide services. It involves
management of Inventory and choosing of supplier.
 Financial Plan- It involves the planning for financial requirement which will occur in
future and taking decision regarding funding. The Premier Inn has formed financial in
which required capital, operating expenses and techniques of revenue generation of the
next five years. The hotel research about the methods of generating fund and select
according to the pay back period (Nelson and Staggers, 2016).
 Key Milestones- This involves key factors that are involved in setting up a hotel which
are location selection, staffing and training, build-out, permits and license and GOP break
even. The Premier hotel has opened their hotels globally and in their expansion these key
factors are considered.
 Monitoring and Evaluation of plan- This is the last stage of plan where whole plan is
reviewed again through monitoring the progress of plan. The Premier Inn monitors and
evaluate the plan through comparing actual performance with planned performance.
TASK 3
3.1 Evaluate the current skills of management and staff.
Skills can be defined as an ability of individual which is earned by them from providing
efforts in a specific field. Whereas, knowledge is refer to set of facts or information that are
acquired by individuals through getting understanding of theoretical or practical knowledge.
Both Skills and knowledge are essentially required by employees so as to perform work
effectively and easily in Premier Inn some types of skills are given as below:
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Technical skills: These are those skills which are earned by individuals through
engaging themselves in technical or complex tasks. These skills are mainly used by individuals
so as to carrying out their functions or tasks as it helps them in completing their given task in
given time-frame. These skills are mainly related with specific areas or concepts such as
technology, mathematical, Information technology, computer systems etc. These skills are
lacking within the staff members of Premier Inn as they have no knowledge about techniques
due to which they are not able in performing given tasks. Therefore, management should
consider these aspects and provide effective training to them so that employees of Premier inn
will be able in using different techniques in their daily works which will automatically leads the
firm towards growth and sustainability (Ojala and Tenold, 2017).
Operational skill: These are those skills that should be acquired by operational managers
of Premier Inn so that each activity can be managed or supervised effectively. These skills are
beneficial as they supports the individuals in managing and controlling different business
operations so that desired goals can be obtained by organisation in right or desired manner. In
context of Premier Inn, operational managers having these skills which helps them in managing
each function or activities of workplace in systematic manner so that desired goals can be
achieved in easy and systematic way. Therefore, it can be said that present operational skills are
good within the workplace of Premier Inn as it is supporting the firm in managing their each
function so that desired targets can be achieved easily.
Managerial skills: These are those skills which are needed by managers so as to
executing their functions and duties in effective manner. Managers of Premier Inn having good
managerial skills due to which good brand image of hotel is maintained in the mindset of
customers. Good and effective managerial skills are beneficial as it supports the organisation in
managing or monitoring each function or activity which are essential for obtaining desired goals
and objectives (Ransbothan and et. al., 2017). For example- Existing workforce in the workplace
of Premier inn is facing difficulties while interacting with customers as they are inexperienced or
having no knowledge regarding interaction. In order to overcome this difficulty, good managerial
skills plays very crucial role as these skills will support them in taking effective measures
regarding solving these shortcomings which automatically leads the firm towards strong
customer base and market share in marketplace.
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As per the above discussion, it has been identified that management of Premier Inn have
framed standard and code of conduct that should be followed by each employees and managers
effectively so that preset goals and objectives can be obtained easily. Hotel have grabbed good
position in market because of their hard work and efforts of management. Each employee have
unique skills but it is used by them only in their daily activities so as to completing their given
work. But if management will possess exert pressure on their working then desired goals will not
be achieved by the organisation which automatically impact on the brand image and sales figure
of firm in negative manner. Therefore, management of Premier Inn should treat their employees
equally so that their effective efforts can be grabbed for achievement of goals. Customer's needs
are uncertain because it can change over a time period therefore, management of Premier inn
should conduct market research on regular basis so that modifications can be made in existing
offerings accordingly. For making these modifications in workplace it is also important for
management to provide training to their employees on regular basis so that required skills and
efficiencies can be acquired by them. Decision-making or communication skills which is posses
by employee due to having working experience help company (Shermon and Gilmour, 2016).
Employees having good communication skills will prove supportive for the management as
through using these skills they will be able in satisfying the needs of customers which will
directly posses positive impact on the brand image and customer base of organisation. It is also
beneficial as when management and employees will execute their activities with perfection then
it automatically leads the Premier Inn towards high competitive edge in marketplace.
3.2 Devise and justify plans for the development of skills for management and staff.
Following is the development plan for management and staff:
Skills Technique of
improvement
Time required Main target.
Strategies
development
(management)
For making
modifications in
strategies,
management of
Premier Inn should
take support from the
on-going development To make effective
strategies and policies
so that desired target
of hotel can be
achieved in easy
manner.
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experienced and senior
professionals so that
good decisions can be
made for the
betterment of
organisation.
Flexibility (staff) Employees of Premier
Inn should adopt this
skill as needs of
customers can be
changed anytime
therefore, acquiring of
this skill will be
beneficial as through it
they will be able in
making modifications
in their current
working.
Continuous
development
Flexibility is very
necessary in the
working hours because
guests can entered in
the premises at
anytime therefore, by
making flexibility in
shifting needs of
customers will be
satisfied effectively.
From the above development plan it has been identified that management of Premier inn
should make modifications in their existing working so that good impression can be posses on
the mindset of customers. Whereas, flexibility in shifting will prove beneficial for the employees
as they will be able in performing their duties effectively (Simoneaux and Stroud, 2011).
CONCLUSION
It has been summarised from the above report that business health check is important as it
helps the firm in making modifications in their existing offering and working so that customer
base and brand image of firm can be maintained in marketplace. For a hospitality organisation, it
is very essential to provide effective services and products to visitors while their stay so that
good reviews can be taken by the firm. Through making plans and strategies for modifications,
14

management of firm should take support from the senior and experienced staff members so that
through making changes in workplace desired goals can be achieved easily.
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