Hospitality Business Strategy

Hospitality Business
Strategy

Table of Contents
Introduction......................................................................................................................................3
Main Body.......................................................................................................................................3
Impact and influence of external (Macro) factor of Premier inn hotel........................................3
Internal environment of Premier Inn hotel..................................................................................5
Competitive analysis of Premier Inn hotel..................................................................................8
Model/Theory for strategic positioning.....................................................................................10
Conclusion.....................................................................................................................................11
References......................................................................................................................................11

Introduction
Business strategies are all those plans and actions which are taken for organisational
benefit. It helps in increasing employee’s performance and helps the company to increase their
overall productivity (Kumar and et. al., 2021). In context of hospitality sector, business strategies
are made in such a way that they can predict the need and wants of their customers and work
according to that to provide best services to their targeted customers. Premier Inn hotel is
headquartered in Dunstable, England UK. It is founded by its parent company Whitbread in the
year 1987. The following report covers external factors, internal factors, competitive analysis of
industry and models and theories applied for analysis of strategic directions in the mentioned
organisation.
Main Body
Impact and influence of external (Macro) factor of Premier inn hotel
Mission- Premier Inn mission is to provide best services to their customers and gain their good
experience which will help them to grow well.
Vision- Premier Inn vision is to become number one hotel in their industry to serve best services
to their clients and expand in more countries.
Objectives-
 Their main objective is to increase the overall productivity by 10% every year.
 To expand their business internationally in more countries.
 To become at the top in their industry within 8-10 years.
 To hire skilled employees who help them to become successful.
Strategies are the plans which are made to achieve some basic goals of success. In
context of companies they made some goals and objectives for the success of their business
(Ukko and et. al., 2019). This goals and objectives get achieved by making plans that how to
achieve these goals and in what time. These small plans which help the company to grow are
called their strategies. Strategies are made for many reasons like to grow internationally, to
compete with competitors, to increase the performance of employees and many others. Hence,
strategies play an important role in making the business successful. It helps in achieving
objective by eliminating all obstacles in their way of success. There are many strategic planning

techniques like SWOT analysis, PESTEL analysis, Porter’s 5 Forces analysis and many more on
which strategies are made.
PESTEL analysis
Political factors- These factors include trade restrictions, political stability, tax rate and
many others (Lim, Chalmers and Hanlon, 2018). In context of UK, they have political stability
and there are no trade restrictions for UK based companies. Hence, it is beneficial for Premier
Inn to trade with few or no restrictions. On the other hand their tax rates are high as compared to
other countries. Due to this Premier inn has to pay higher tax from their earnings.
Economical factor- These factors include growth rate, interest rates, employment rates
and many others. UK is one of the countries which is having high growth rate. Their employment
rate is also high which is beneficial for Premier Inn to hire skilled employees and UK has low
interest rate which help Premier Inn to take loans from banks if required and repay it in low
returns. Hence, economical factors are beneficial for Premier Inn.
Social factors- It includes beliefs, values, living standards, habit and many other
aspects of population of a country (Antamoshkina and Zinina, 2019). In UK, people have good
purchasing power. They purchase products to develop their living standards. Hence, Premier inn
must provide good services to their customers. On the other hand UK population are emotional
and sentimental. They stand against wrong things very quickly. Hence, Premier Inn must focus
to their promotional activity that they never convey any message which will harm any
community or any religion.
Technological factor- It includes the adoption rate of modern and advance technology
by a country. In context of UK, they have advance and modern technology which is beneficial
for Premier Inn to use good machines and other tools to maintain their hotels activities.
Environmental factors- It include all environmental elements like climate, weather,
pollution, temperature and many others. UK has good tourism arrival rate because of their
appropriate weather and climate. This is beneficial for Premier Inn because tourists stay at hotels
and more number of tourists means more opportunity to get more customers. Hence,
environmental factor is most important factor among all for Premier Inn.
Legal factors- This factors are all legal laws and rules and regulations of a country
(Moktadir and et. al., 2020). In context of UK, they are having some strict rules and regulations