Business Health Check Assignment : Whitbread Plc

BUSINESS
HEALTH CHECK

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Analyze the objectives of the business organisation.............................................................1
1.2 Different internal and external factors that influences the business......................................2
1.3 Potential improvements to business organisation and their operations................................6
TASK 2............................................................................................................................................7
2.1 Review the effectiveness of business and its operations ......................................................7
2.2 Development of plans to improve business and justifying their values................................9
TASK 3..........................................................................................................................................10
3.1)Examine current skills of management and staff. ..............................................................10
3.2 ) Design a plans for the development of skills for management and staff..........................12
CONCLSUION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Business health check is defined as a current overall assessment of the essential elements
associated with a business. It includes a series of aspects and questions that benefits in
acknowledging the internal and external environment of business in a proper manner. It is a
complete diagnostic on businesses and related organizations that helps in acknowledging if
businesses in working in a healthy manner or not. This assignment is based on Whitbread Plc
which is a Britain based multinational hotel brand, founded in 1742. Hotel has multiple divisions
such as Costa Coffee, Premier Inn, Beefeater etc. and headquartered in England, UK. At present,
Hotel is successfully operating in different geographical locations mainly, European countries,
China, India, UK. This report is going to cover the long term and short term objectives of
businesses along with internal and external factors which influence an organization's working.
Also, potential improvements with the help of Ansoff's growth matrix will be carried out.
Effectiveness of businesses is reviewed and a plan is formulated to improve the businesses. At
last, current skills of staff and management are discussed along with a plan to develop the skills
in management and staff of the company.
TASK 1
1.1 Analyze the objectives of the business organisation
Whitbread Plc is a UK based multinational restaurant and hotel which is headquartered in
Houghton Regis, England. Largest division of Whitbread is Premier Inn which is successfully
operating at more than 780 geographical locations. Other chains of Whitbread Plc is Brewers
Fayre, Table Table, Beefeater etc. Hotel is a public limited company which is a renowned
organisation in Hospitality sector. Key areas where hotel operates are Dubai, India, Europe,
China, Russia, UK. According to the reports of 2018, company is employing more than 50,000
employees and posses net income of 436.4 million pounds.
Mission: Major mission of Whitbread hotel is to create a difference in lifestyle of
individuals that uses their services or facilities by providing high standard services and products.
Providing personalised service to customers will help the hotel in maintaining a large customer
base so that high profits can be earned.
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Vision: The Vision of Whitbread Plc is to became best hotel in global context. For
accomplishing this vision, organisation is required to achieve competitive advantage over rival
companies by offer personalized services to customers.
Objectives: Different objectives of Hotel are mentioned below:
Short term objectives:
 To became a pre-eminent retailer of food and drinks in UK.
 To achieve 10% increment in revenues of company within upcoming 6 months.
 To enhance the profitability of company by 15% in next one year.
 To formulate a profitable, brand oriented, strong beer business in UK and global context.
Long term objectives:
 To reduce their expenses and costs so that high profits can be earned.
 To offer better quality services than the rivals so that customer base can be retained for a
long time period.
 To strengthen the distinctive culture of company through shared values, effective
communication and collaboration.
 To develop rich guest experience by caring, respecting and recognizing the requirements
of their workforce.
1.2 Different internal and external factors that influences the business
In business environment, there are various external and internal factors which impacts the
working of a business in a considerable manner. By acknowledging these aspects, it can be easily
identified which decisions are beneficial for the company and which actions can hinder the
success of business. Manager in Whitbread plc can uses different frameworks to identify those
internal and external factors which influences the business operations of hotel in a considerable
manner. In this context, SWOT, PESTLE and Porter's five force analysis are discussed beneath:
SWOT Analysis: It is a strategic planning tool which is used by business firms to
identify the strengths and weaknesses of an organisation in relation with current business
environment. Beside this, SWOT framework will benefits the manager in Whitbread plc to
acknowledge the potential threats and opportunities that can impacts the operations and activities
of businesses. In context with Whitbread Plc, SWOT analysis is mentioned below:
Strengths Weaknesses
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 Hotel has low cost structure which
benefits them in selling its services at
low price. Due to this, customers can
easily afford the services of hotel.
 Whitbread plc has a strong linkage with
dealers that helps the hotel in getting
supplies at timely manner along with
promotion of services and products.
 Hotel has a large asset base due to
which their solvency is high and they
posses wider product portfolio.
 A major proportion of property owned
by hotel is rented not purchased. Due to
which expenses of organisation
increases in a high manner.
 Company faces a lack of appropriate
financial planning due to which
mismanagement in cash flows take
place.
 Whitbread Plc has higher employee
turnover rates due to which they lack
experienced workforce.
Opportunities Threats
 Due to advancement of technology,
number of internet users have increased
in global context. Hotel has opportunity
to increase their online presence so that
interaction with customers can be
enhanced.
 In UK, inflation rates are low due to
which cost of inputs for Whitbread plc
is less. This will benefits the hotel in
increasing market share.
 Increased bargaining power of supplier
is a threat for hotel due to enhanced
costs and expenses of purchasing
supplies and raw material.
 Rival organisations such as Holiday
Inn, Marriott etc. is giving tough
competition by offering standardised
services to the customers in affordable
prices.
PESTLE analysis: It is a framework which benefits a company in acknowledging its
external business factors such as society, economy, political factors, technological aspects in a
detailed manner. Due to this, manager in Whitbread Plc will be able to take those decisions
which will be strategically advantageous for the company. In this context, PESTLE analysis for
Whitbread Plc is mentioned below:
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 Political factors: These factors are related with the nature and level of government
intervention in the business of an organisation. It include aspects like stability of regional
and national government, tariffs and tax rates etc. It is essential for Whitbread Plc to
follow all international regulations where hotel is operating. This can results in increased
global pressure on hotel. At present tax rates in UK are low and government is also stable
due to which operating in UK will be beneficial for company in earning high profits and
revenues.
 Economic factors: These aspects include interest rate, GDP, growth rate, inflation rate,
fluctuations in interest rate etc. As UK is an economically developed nation where people
have disposable income and GDP of UK is also high. Due to this, company can earn high
revenues and profitability by offering them standardized services. But due to great
recession in 2018, inflation rates can became high which can impacts the revenues of
company in a negative manner.
 Social factors: Each nation have its own culture and society due to which living style of
people in a region do not resemble with people residing at other region. These factors will
benefits Whitbread Plc in understanding the needs and preferences of customers in a
proper manner so that competitive advantage over rivals can be achieved in a proper way.
People in UK are educated, modern and prefer unique services, due to which quality
services offered by hotel will be preferred. This can help Whitbread Plc in achieving their
desired objectives. Offering services which do not preferred by people can shift the
preference of people towards services of other hotel.
 Technological factors: These aspects are concerned with innovation and advancement of
technology so that complex work can be performed by business organisation in a
simplified manner. As people in UK and other regions are getting technically advanced,
investing in IT and technology will benefits Whitbread in grabbing the attention of
customers in a proper manner. Due to advanced technology, communication became easy
due to which visits of people have decreased. This can impact the sales of Hotel in a
negative manner.
 Legal factors: These kind of factors are related with the legal norms and procedures
which are formulated by the government of a country to protect customers and employees
from business organizations and vice-versa. Manager in Whitbread Plc is required to
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sincerely follow these laws so that employees and customers can become satisfied with
the products or services of hotel. If hotel will not follow laws and procedures in a proper
manner, victim individual can file case against company which will results in loss of
reputation and revenues.
 Environmental factors: These environmental aspects are concerned with preserving
nature and environment from harmful business practices that can create a major
imbalance between the ecology. Each government formulate some environmental laws
that restricts an organisation such as Whitbread Plc in performing certain activities.
Following these laws will increase the reputation of hotel in market due to which their
bookings and reservations will be hiked. If management of hotel will not follow these
laws, government can case a file against them which is results in loss of business
reputation along with payment of high taxes.
Porter's five forces: It is a strategic tool which benefits a firm in acknowledging their
competitive edge in marketplace. There are five kind of competitive forces which can impact a
business firm in a considerable manner. These forces can either be high, low or medium
depending upon their influence. In case of Whitbread Plc, Porter's five force analysis is carried
out below:
 Rivalry among existing firms: In hotel sector, rivalry and competitiveness in rival
organisations is very high. Main competitors of Whitbread Plc are Holiday Inn, Hilton
hotel, Hyatt regency, Sheraton etc. provides personalised and standardised services to the
customer base in same price. In context with Whitbread Plc, company is required to offer
better services than the rival hotels so that customers can prefer their services in
comparison with services offered by rivals.
 Threat of new entrants: To introduce a new hotel chain, high amount of investment and
funds is needed. In case of businesses dealing in hospitality sector, government is giving
high support to people which wants to initiate business in this field. Due to this, threat of
new entrants is high. Manager in Whitbread hotel is required to provide good services in
genuine pricing so that threats due to new hotels can be minimised accordingly.
 Threat of substitutes: This type of force do not posses a significant impact on the hotel
industry and associated businesses. As main substitutes for people to replace Whitbread
Plc is staying at the place of a relative or friend. Beside this, an individual can also rent a
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home but this will be a time consuming procedure. Due to this, threat of substitutes is not
high. But due to advanced technology, people do not prefer to visit more. Considering
internet as a potential substitute can be a big threat for company in reduce booking and
revenues.
 Bargaining power of buyers: This market force is considerably high in context with
Whitbread Plc. Needs and demands of customers changes at a regular time period and if
Whitbread Plc will not be able to offer the products and services in accordance with the
demands of people, they can shift their preference towards the services of other hotel.
This will results in
 Bargaining power of suppliers: In context with hotels and other hospitality businesses,
bargaining power of supplier is high as each hotel requires resources and raw material to
satisfy customers with expected services and products. As there are multiple hotels which
competes with each other for high revenues and profits, if suppliers will stop supplying
resources and materials on a timely basis then this will hinder the satisfaction level of
customers due to which hotel will receive loss of revenues.
With the help of these analysis and framework, manager in Whitbread will be able to
identify the intrinsic and extrinsic factors in a proper manner due to which company will be able
to take only strategic advantageous decisions. These decisions will benefits the company in
achieving their goals and objectives in a proper manner.
1.3 Potential improvements to business organisation and their operations
Each organisation is required to carryout potential improvements so that changing needs
and demands of people can be fulfilled in a proper manner. In this context, manager of company
can use Ansoff's matrix which is mentioned below:
Ansoff's Matrix: It is a strategic planning tool which offers an appropriate framework to
help senior managers, marketers, executives of an organisation so that they can devise
appropriate marketing strategies for the future growth and development. With the help of factors
defined in this matrix, manager in Whitbread can carryout needed modifications in its business
so that high growth and success can be earned. Below are mentioned four growth alternatives
that can be adopted by Whitbread Plc to improve business:
 Market penetration: In this strategy, manager in Whitbread Plc can try to grow its
business by offering already existing products to existing customers and market. Here, a
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firm tries to enhance their market shares without extending their product line. In this
context, manager of hotel can decrease their price or enhance the promotional and
advertising activities so that high sales can be achieved.
 Market development: In market development strategy, management in Whitbread hotel
can expand its operations and business activities in new regions and markets by offering
existing product line. This will benefits the company in increasing their customer base so
that high sales can be achieved along with achievement of goals and objectives.
 Product development: Here, a company tries to garb the attention of customers by
offering them new services or products. Manager in Whitbread can introduce
complementary services like Free breakfast, WiFi or transport facilities etc. so that high
advantage over competitors can be achieved.
 Diversification: This is the most risky growth strategy where a business organisation
tries to increase its profits and market shares by offering new services or products in new
marketplace. If services are not appreciated by new customers then this can results in
business failure for Whitbread Plc.
Out of all the strategies, manager in Whitbread Plc can use market penetration to improve
their businesses. It will be least risky strategy for company as existing services will be given to
existing customers but with some benefits and advantages like discounts, offers, complementary
services etc. by this sales and revenues will increase, due to which potential improvements can
be achieved.
TASK 2
2.1 Review the effectiveness of business and its operations
Effectiveness is concerned with the level of outputs generated by employers and
employees. It is accomplished when each and every members in the staff put their best efforts in
order to achieve their targets and set objectives. This ultimately help in increasing the
effectiveness of organisation .As Whit-bread's Hotel is the largest hotel chain in the world and
operate their hotels according to strict code of conduct and ethics. They perform each task with
perfection and allow their employees to perform their duties with efficiency. Every employee
working at Whit-bread's follow all standards set by management in order to accomplish their
main vision which is “ to enhance the lives of our customers by creating and enabling
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unsurpassed vacations and leisure experiences”. Due to these reasons, they are counted as best
hotels in hospitality industry. They also believe in continuous improvement and reviewing of
their effectiveness so that they can improve whatever lacking in time.
Product or services: For every business the matter of concern is the quality of their
products and services which they offers to their potential customers. To hold the level of
effectiveness, the company keeps check on their products and services throughout, so that if
there is an occurrence of any non essential products and services the company can work on it and
can focus on the quality and effectiveness. The company is providing a cab facility, free
vouchers of events, free beverages etc. to their customers which has increase its business
effectiveness.
Marketing: This is the essential factor for every business to look upon. This has helped
whit-bread's plc to market its products and services to the out side world and to interact with
their customers. This factor had leads the business to critically evaluate all their loopholes and to
develop strategies for improvements . The strategy which Whit-bread's has adopted is online
marketing and words of mouth marketing strategy with has increased it customer base.
Finances : Whitbread plc has allocated their resources and finances carefully so that to
carry out their business operations smoothly and effectively. These are important aspects as they
facilitate hotel to carry out their activities. Whit-bread's Hotel requires huge amount of funds in
order to implement their business activities in practical. Company has its revenue of 329. 51
crores that has enable its smooth operations .
Staffing : Personnel for the business is their valuable assets. Whitbread is appointing a
staff who are highly skilled and productive so as to maintain the level of effectiveness of their
business. Whit-bread's is recruiting their staff by conducting various types of interview such as
panel interviews and group discussions due to which they are able to hire the knowledgable staff
who has increased their business effectiveness.
Business image :As image is necessary in hospitality industry to attract people and Whit-
breads Hotel chains have powerful brand image across the world. Superiors can review this and
make improvement where they find damage in their brand image.
Record keeping : Whitbread plc is maintaining a complete records of all the
operational activities and finances which have been done in the past for a future prediction of a
business.
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These factors can leads to an organizational growth as focusing on these factors can
increase the efficiency of the business to operate their activities. This would help whit-bread's to
focus on each and every aspects of the business whether be it in the field of marketing, finances,
product and services or sales through which the company can reduce the cost of its operations
and can attain a position of organizational growth.
2.2 Development of plans to improve business and justifying their values
Planning is necessary for organisation in order to achieve target in right and appropriate
manner. It helps firm to schedule their activities and follow accordingly. Following are some
steps that help to improve business performance:
Company description : Whit-bread's is a public limited company established in 1742
and is the multinational hotel and restaurant company which is providing services in
hotels ,beefeater,brewers fay re and table table . It also deals with the business of alcohol and
Russian beverages which has increase its profitability and has made its the world largest
company of hospitality.
Financial and management system :Whitbread is having proper financial management
plans to analyse their investments and allocations of funds to different departments of the
business. This helps the company in reduction of wastage and to save the money for the future. It
also helps manager to track their financial status.
Products and services : Whitbread can now easily identify the demands for the specific
products or services in the market. Its pricing and will also operate their activities according to
the requirements in the market which is beneficial in comparison to their competitors. The
company can provide a cab facility, free vouchers of events, free beverages etc. to their
customers .
Operational plans : Whit-bread's has prepared a proper operational plan to identify the
which technology to be used, quality check procedures and equipments is needed to provide the
desired level of products or services to their customers. With the help of six sigma and total
quality management company can easily improve their operations.
Market analysis and competitors : Analysing a market has allow Whitbread to identify
the requirements of their customers and helped them in satisfying the needs and wants of their
customers against the products and services of competitors by an effective marketing strategy
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which can attract the customers. Whit-breads can use qualitative research methodology to
identify its competitors to enhance their business.
Ownership and management plans : Proper identification of ownership, roles and
responsibilities enabled the company employee's to perform their task and duties without any
disturbance and with increase efficiency.
Performance monitoring : It is the most effective method to track the strength and
weakness of the employee's so that Whitbread can train their employee's on their weaknesses and
can enhance their performance level over a period of time.
These are the business plan which are necessary to be considered while starting up a
business. As the company at the initial level can focus on these factors properly and can analyse
about all the competitors those who are available for the firm in near future . By considering all
these a firm can enhance their productivity , effective to perform the operations and the
procedure that is to be adopted to achieve the vision of the business . It can also help the business
to improve and can leads towards the increments in profit margin of the business.
TASK 3
3.1)Examine current skills of management and staff.
Skills and competence in an individual helps organization to success in the global market
so that tough competition can be created for others. The staff members of Whitbread Plc are
skilled and capable due to which set standards can be achieved. Lack of skills in technical,
managerial and operational level directly reduces the business productivity level. Here, are some
of the skills of management and staff which are explained as follows:
Technical skills: Technical skills are those skills which assist the organization to perform
task effectively. Some examples of technical skills are, data analytics, computer skills, data
mining, engineering , marketing, programming, project management, quality control, etc.
employees holding good technical skills assist the company to work effectively and efficiently to
meet the set goals on time. Whitbread Plc staff members holding sufficient technical skills due
to which potential customers are bind for longer time period. Capable employees in technical
area helps the business associates to capture huge market ratio. Workers having good knowledge
in computer skills, data mining, data analytical, programming etc. is a positive for the company.
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 Multi task: People working in hospitality industry need some skills and competences of
multi-tasking. Like the staff deal with customers at parallel time they also deal with the
management to transfer the need of customers.
 Communication skill: To be a part of hospitality sector effective communication skills is
mandatory. It is the core tool which is need to have in an staff members so that best
results can be achieved. Whitbread Plc employees working in in the administration need
to face physical and mental challenges on daily basis. In the competitive world enterprise
need to complete work effectively for which clear and transparent communication is
required between staff members and customers who are the end users..
Operational skills: In today's era person having operational skills perform better in the
cut throat competitive world. Employees holds the ability to think analytically and communicate
effectively as well as implement efficiently. Whitbread Plc adopts this skills in their day to day
life to survive in the competitive world.
 Maintenance and cleaning: To bind client for longer time duration rooms of Whitbread
Plc need to be well maintained so that positive image is created in customers eyes. This
is core and important part for service industry which organisation need to keep in their
rooms and floor. The top level management of Whitbread Plc first priority is to keep
cleans their room clean and neat. By doing so customers who are visiting the place can be
ensured that all other facility such as light, water, air-conditioner are properly working
and will be enjoying the facilities while being a part of this place.
 Food service: In hospitality industry food and beverages includes everything from food
to proper drinks including lunch and dinner too. However, this jobs in hospitality industry
are concerned with skill so for this Whitbread recruit competent staff members who pay
more attention on small issue in order to get best results. By doing so it increases the
satisfaction level of customers through fulfilling their needs and taste accordingly.
Managerial skills: In hospitality industry holding managerial skills refer that how an
individual manage their work systematically within the administration. Here some of them are
discussed as:
 Interpersonal skill: Communication is the key to gain success in hospitality business
while interpersonal skill are the major part of it that help to build effective
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communication between them. It includes patience, professionalism and integrity in
employees.
3.2 ) Design a plans for the development of skills for management and staff
Plans for development of skills for management and staff members over the table which
aid the management of Whitbread Plc to raise the skill and competences of their staff in the
market. To examine them easily it is classified into four distinguished task which assist
employees to achieve their goals on given time duration.
Skills Technique of
improvement
Time required Main target
Flexibility In flexibility strategy
management of the
organization frame
effective and unique
methods which are
easily altered as per
the needs. However,
business associates
adopt them as per
market conditions in
the global market.
In order to increase
this skill organisation
need three to five
months process so that
market scenario can be
better understood and
accordingly changes
can be done.
The main target of
adopting flexibility in
Whitbread plc working
premises is to meet the
emerging needs of the
customers.
Strategies
development
In order to develop
effective strategy in
their daily course
employees need to
interact with their
seniors and top level
management because
they are professional
and come across this
problems daily. .
This process requires
six to eight months for
improvements.
The major target of
strategy development
in the cut throat
competitive world is
to formulate effective
skill so that they can
achieve set standards
in systematic way.
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The above plan it can be concluded it is essential for administration that it assist to
develop and nourish existing skills and competences of their employee's by executing
distinguished ways of technique which are, flexibility, strategy development etc. in order to
enrich or improve the effectiveness of Whitbread plc services. Therefore, plans for development
of skills is also beneficial for staff members because this assist business associates to achieve
their objectives with in minimum time period. Moreover, these also helps organisation to
formulate effective and unique strategies or tactics which will directly or indirectly help
administration to accomplish their goals within set time duration.
CONCLSUION
From the above it can be concluded that business conduct internal and external
environment investigation in order to get best results. PESTEL (Political, economical, social,
technological, environmental and legal) analysis are carried out so that in the new market
business can grow smoothly. Also, SWOT(Strengths, weaknesses, opportunities and threat)
analysis and porter's five force model are studied so that according to the market scenario tactics
can be framed. Plan for business is designed in order to examine the effectiveness of business in
the market. of Individual lacking in technical, managerial and operational skills are developed
in an company so that productivity and profitability can be attained accordingly.
(Al-Moosawi and Nayyef, 2017)(Allen, Grolnick and Córdova, 2019)(Aronoff and Ward,
2016)(Borchers, Chang and Gershwin, 2017)(Boyle, 2015)(Camp And et. al., 2019)
(Fotiadis, Vassiliadis and Piper, 2014)(Gallie and et al, 2012)(Green, 2018)(Hameed,
and Waheed, 2011)(Howard, 2017)(Iwai, 2011)(Lussier, 2011)(Nelson and Staggers,
2016)(Nevin, 2016)(Niles, 2016)(Ojala and Tenold, 2017)(Ransbotham and et. al.,
2017)(Sadgrove, 2016)(Santos and et.al., 2016)(Shermon and Gilmour, 2016)(Wang,
and Byrd, 2017)(Woolsey, 2018)
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