Business Strategic Plan of Whitbread Plc

Case Study about Whitbread
Plc

Table of Content
INTRODUCTION.......................................................................................................................................3
P3) Porter’s five forces model.................................................................................................................3
P4) Theories, concepts and models that can be incorporated by Whitbread organization which can
facilitate the same in strategy planning are as follows:............................................................................4
CONCLUSION...........................................................................................................................................6
REFERENCES............................................................................................................................................7
Books and Journal...................................................................................................................................7

INTRODUCTION
Business strategy refers to the long term plan or strategy for the company to achieve desired
goals. The business strategies are implemented by higher management of the company and it
includes planning of company’s objectives and goals, the product type, target customers and the
target market. Whitbread Plc. is a multinational company which is the largest operator of hotels
and restaurants in United Kingdom having UK’s most successful brands in hospitality industry
(Hasan, 2019). It has over 35000 employees for excellent customer experience in UK as well as
overseas. This report contains the idea about business strategic plan of Whitbread Plc.
P3) Porter’s five forces model
Porter’s five forces model helps the companies helps the companies in taking strategic
decision and analyzing competition in the market. This model focuses to build a sustainable
competitive advantage in hospitality industry. These models are discussed below:
Threat of new Entrants: - Whitbread can overcome from threat of new entrant by innovating
new product and services. It will give old customers to try again the product and service of the
company which helps company to build economies of scale which lowers the per unit fixed cost
of product or services (Rashid, 2018). New entrants will rarely like to enter in a dynamic industry
of hospitality and to compete with the company like Whitbread the company needs to have a
huge fund which is not possible to enter a dynamic market with such huge investment.
Bargaining power of Suppliers: - Whitbread can develop third party who manufactures solely
for the company and as they are solely depend on the Whitbread they will have less bargaining
power. This technique will not only reduce the bargaining power of suppliers but also provide
dedicated suppliers to the company. Bargaining power of suppliers also get reduced by having a
efficient supply chain with so many suppliers.
Bargaining power of buyers:- If Whitbread increase and diversify its customers base then it can
manage the bargaining power of buyers and this can be achieved by introducing new product,
target market segment which will required adaptation of product diversification strategies.
Offering innovation and excellent customer experience helps to build loyalty and raise the cost of