Extended Business Project pdf

Extended
Business Project

Table of Contents
INTRODUCTION...............................................................................................................1
Overview....................................................................................................................1
Competitive Advantage.............................................................................................2
Competitive Position..................................................................................................4
Recommendations....................................................................................................5
Conclusion.........................................................................................................................6
References.........................................................................................................................7

INTRODUCTION
Business project refers to set of actions that are taken over a certain time frame
where number of resources for their development are concerned for solving a need or
taking chances for overall development as well as financial gain. There are different
kinds of project which can be undertaken by organisation such as task, project and
process management (Clément and Rivera, 2017). This report is based on Premier Inn
which deals in hospitality and is headquartered in Dunstable, United Kingdom. They
serve in diverse countries like UAE, UK, India and various others. They have near about
72000 rooms as well as 785 hotels. This report will be dealing with overview of
organisation, way in which they can attain competitive edge as well as maintain
competitive position within market.
Overview
Whitebread is a parent company of Premier Inn. It was established in 1987 and
most of the earnings i.e. 70% are attained from services rendered by Premier Inn. Their
values comprises of empowering, being caring as well as professional by which they
can inspire engagement as well as innovation. Management of Premier Inn is all about
their people and they aims at this as well as each employee ensures the same. They
have carried out a research for altering the ways in which they carry out their
operations, thereby leads to improvisation within services furnished by them. For an
instance, they have taken two and a half years for collection of data that comprises of
loyalty, behavioural, socio-demographic as well as physical estate attributes like prices
paid, site details, macro data and competitor data to have a initial point. For this, they
looked into reviews from 2500 TripAdvisor of their hotels as well as competitors through
this, they analysed that services are crucial for them along with taking into consideration
their limitations (How Premier Inn proved the value of service, 2019). At present
scenario, they aims at comfort as well as quality that is furnished by them (Nicholas and
Steyn, 2017). They provide their customers with sound sleep, tasty food along with this,
they are provided with 750 hotels across UK and other countries their guests can stay
wherever they want. Along with this, guests are provided with 24*7 free Wi-Fi services.
They acts as a force for good, within their sustainability programme they aims at
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assisting everyone who are associated with them like their suppliers, team members
and customers for living as well as working well.
Mission and Vision:
They aims at making their hospitality brands best by which they can focus on
their customers as well as give them as per their requirements.
Competitive Advantage
For successfully carrying out their business operations within effectual way, it is
essential for organisation to analyse their external environment as macro-environmental
factor which will be creating a relevant impact on their functioning. Pestle analysis is a
tool or framework that can be utilised by organisation for analysing as well as monitoring
macro-environmental factors that leads to creation of strong impact on performance of
of entire organisation (Martin, 2016). Management of Premier Inn can make use of
Pestle analysis for having a strong competitive edge within market. It is elaborated
below with respect to the hotel:
Political factors: Government policies acts as a crucial factor that impacts
organisation in both direct as well as indirect manner but they are also responsible for
rendering chances as well as challenges. Affirmative as well as pragmatic cooperation
among UK government has led hospitality industry to key success. Overall political
system of United Kingdom is strong as well as stable. This will benefit organisations like
Premier Inn to make sure their sustainability within a market for a longer duration of
time. As they furnish their services in hospitality industry, they acts as a backbone for
government. Management of Premier Inn has always been aggressive for meeting the
political situations. Along with this, they have brought in or launched a program named
Good Together in which they aimed at reduction of carbon dioxide for accomplishment
of needs of government along with society.
Economic factors: These factors comprises of inflation, interest rates, taxation
changes, exchange rates and economic rates. They creates a strong impact on
purchasing powers of customers. For an instance if there is rise within inflation rates of
United Kingdom then it will create impact on ways in which organisation decide prices of
their services as well as products (Li and et. al., 2016). With respect to Premier Inn,
government of United Kingdom has always been curious to have sporting events as well
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as Olympic along with Paralympic games, it will render British hotel industry with higher
opportunities. Premier In has seized these possibilities by having their hotels adjacent to
Olympic Stadium. Along with this, they have opted for new websites which will be
providing their customers with convenience. Their marketing strategies are working well
for them.
Social factors: These factors plays crucial role within development of
organisation. They comprises of lifestyle, income distribution and living conditions
creates a strong impact on ways in which operations are carried out by organisation. As
there has been continuous improvements within living conditions of individuals, they are
open to spend more amount for enjoying their life as well as opt for relax while
completion of their work (Dorfeshan and Mousavi, 2019). Premier Inn emphasise on
satisfaction of their customers along with this they keep on renewing business
strategies with respect to alterations within social values as well as preferences of
customers. They render their customers with high quality rooms, friendly services as
well as comfortable surroundings. The program carried out by management of Premier
Inn shows their efforts that have been made within protection of environment, this leads
to enhancement within their corporate image as well as competitiveness.
Technological factors: It is one of the major factor that creates a direct impact
on operations of business. Premier Inn has provided their customers with an option to
browse on-line apart from going for calling or visiting their premises. This have a strong
impact on present society as they are more open to services which can be availed
through few clicks on their gadgets. They have provided their customers with simple
website so that every one can access it and have all the mandatory details they are
looking for. Management of Premier Inn have also made their applications for
smartphones. On the whole, they have opted for being updated with respect to latest
changes which have been made within technology. Along with this, organisation has
opted for streamlining their operations that will minimise the entire internal cost
(Diamantini, Potena and Storti, 2016).
Legal factors: Changes within regulatory environment creates a strong influence
on Premier Inn as they creates a impact on the ways in which they carry out their
businesses. For an instance tax laws like enhancement within VAT, there has been
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relevant increase from 17.5% to 20% which means that average families can spend
approximately £600 a year which is £2.13 added for each pound spent. This will lead
people to have minimum disposable income that will lead them to look for cheaper
accommodation. It will create negative influence which will deter visitors from overseas.
Premier Inn also need to adhere to certain other laws which includes, Data Protection
act 1998, Gas Safety regulations 1994, Hotel Proprietors act 1956 and Health & Safety
at Work Act 1974. This will ensure safety of their employees as well as protect them
from going through any kind of legal troubles.
Environmental factors: They have formed a program named Good Together for
being environmentally friendly. Premier Inn have to be social responsible organisation
for ensuring that high quality publicity can be attained as well as their customers can be
maintained. For this, management needs to make sure that they cut down the usage of
paper, make use of energy saving lights as well as water efficient showers through
which flow of water can be minimised. Along with this, their sourcing policies have to be
meet internationally which also comprises of labour rights in addition to fair pay that is
effectual for community (Cracco, 2017).
Competitive Position
This is crucial for organisation to systematically take into consideration
competitive forces within market for formulating optimal strategies. For this,
management of Premier Inn can opt for usage of Porter's five forces model. It is an
analysis tool which makes use of five major industry forces for identification of intensity
of competition within industry along with their profitability level.
Threat of new entrants: As hospitality industry is growing rapidly along with this,
government is also inspiring as well as facilitating this sector on the basis of priority
there is very high threat of probable new entrants within market. But if other factors
must be taken into consideration such as it is not possible to easily find an apt location
along with this costs of buildings will be also very high. This will act as a strong barrier
to entry but if someone is having strong background then this will lead them to go for it.
With respect to Premier Inn there is a minimal impact of threat of new entrants as they
are already established.
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(Source: Porter's Five Forces, 2018)
Threat of substitutes: They comprises of caravan clubs, country houses as well
as camping which captivates more number of customers towards them as they acts as
an impelling option for budget conscious customers. For Premier Inn, the substitutes are
the people opt to stay within houses of their relatives and friends along with this people
of United Kingdom also opts for renting apartments for shorter interval of time. But the
services which are rendered by Premier Inn will attract their existent customers to
attract them and also captivate new. But fro this they need to opt for strong strategies
(Linder and Williander, 2017).
Bargaining power of buyers: When compactness of buyers is higher than other
market players within industry are subjected to higher power of buyers. Due to the high
competition, organisation will sign a long term contract with their customers for retaining
their customers base. This, means that customers have stronger bargaining power. But
with respect to large hotels like Premier Inn bargaining power of customers is very low.
Bargaining power of suppliers: The power possessed by hotel industry is low
due to uniqueness within services and products provided by them. In context of Premier
Inn, there do not exist switching supplier cost. Suppliers have low as well as indirect
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Illustration 1: Porter's Five Forces

pressure on competitiveness. For having a competitive advantage, Premier Inn needs to
maintain cost with respect to their rivals as well as they need to be innovative with
respect to differentiate them form strategic groups.
Rivalry among existent firms: There exist intense rivalry in hotel industry due
to cost differentiation as well as switching costs are also very low. Business growth that
is needed is higher with respect to rate at which Premier Inn is growing. The major
competitors of Premier Inn are Hilton and Marriott Hotel.
Recommendations
As hotel industry is rapidly growing around the world, the spending patterns of
customers have been changing. It will provide wide range of opportunities to Premier
Inn to expand their chain and attain their vision for having a leading budget within retail
chain. It will also assist them to grow as well as cost associated with will not to be higher
if they make use of options such as franchising. They need to enhance brand loyalty
which will act as a word of mouth for attracting more number of new customers towards
services offered by them.
Conclusion
From above, it can be concluded that Premier Inn is a chain of hotels which
serve their customers within different countries. Along with this, they aims at offering
quality services to them so that they can retain them for longer duration of time. For
having a competitive edge they are making use of Pestle analysis so that they can
acknowledge diverse factors which affects their services and the ways in which they
they carry out their operation. Furthermore, for enhancing their market position they
have used Porter's five forces model.
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References
Books & Journals
Clément, V. and Rivera, J., 2017. From adaptation to transformation: an extended
research agenda for organizational resilience to adversity in the natural
environment. Organization & Environment, 30(4), pp.346-365.
Cracco, B., 2017. The new role of the purchasing function in the management of the
extended enterprise. Strategic Direction, 33(2), pp.12-14.
Diamantini, C., Potena, D. and Storti, E., 2016. Extended drill‐down operator: Digging
into the structure of performance indicators. Concurrency and Computation:
Practice and Experience, 28(15), pp.3948-3968.
Dorfeshan, Y. and Mousavi, S.M., 2019. A new interval type-2 fuzzy decision method
with an extended relative preference relation and entropy to project critical path
selection. International Journal of Fuzzy System Applications (IJFSA), 8(1),
pp.19-47.
Li, X. and et. al., 2016. An extended model for project portfolio selection with project
divisibility and interdependency. Journal of Systems Science and Systems
Engineering, 25(1), pp.119-138.
Linder, M. and Williander, M., 2017. Circular business model innovation: inherent
uncertainties. Business strategy and the environment, 26(2), pp.182-196.
Martin, D., 2016. Whatever Happened to Extended Schools? The Story of an Ambitious
Education Project. Trentham Books. Available from: IOE Press, Institute of
Education, 20 Bedford Way, London, WC1H 0AL, UK.
Nicholas, J.M. and Steyn, H., 2017. Project management for engineering, business and
technology. Routledge.
Online
How Premier Inn proved the value of service. 2019. [Online]. Available through:
<https://www.marketingweek.com/premier-inn-proved-value-service/>.
Porter's Five Forces. 2018. [Online]. Available through:
<https://www.strategicmanagementinsight.com/tools/porters-five-forces.html>
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