Strategic Management in Hospitality: A Case Study of Whitbread Plc.

Hospitality
Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
PART A...........................................................................................................................................3
Introduction............................................................................................................................3
Stakeholder Analysis..............................................................................................................3
Analysis of External Environment: PESTLE Analysis..........................................................4
Analysis of Internal Environment: SWOT Analysis..............................................................5
Evaluation of Competitive Forces: Porter Five Forces Model...............................................7
PART B............................................................................................................................................8
Evaluation of Strategic Directions: Bowman’s Strategy Clock.............................................8
Market Growth Strategy: Ansoff Growth Matrix...................................................................9
Strategic Management Plan..................................................................................................10
CONCLUSION..............................................................................................................................11
REFERNCES.................................................................................................................................12

INTRODUCTION
The practise of organising resources to attain organisational goals effectively and efficiently
is known as strategic management. Setting goals, assessing methods, and analysing the external
environment while keeping changes in mind are all part of the process. The term "strategic
management" refers to the process of achieving organisational objectives and goals. Flexible
entities can easily be modified to reflect changes in the environment, whereas inflexible entities
cannot always do so (Tian and et. al., 2021).
Strategic Management in the hospitality helps in devising and implementing effective
strategies as well as desired goals in order to improve the brand image of an organization. The
strategic management provides various ways to maximize the organization’s resources by
keeping its cost low and production process efficient. The famous Whitbread Plc. Company from
hospitality industry is chosen. The report is divided into two parts, Part A assesses the internal
and external environment. Whereas, Part B highlights strategic hospitality management plan.
PART A
Introduction
The Whitbread Plc. Company began in 1742 and became the known brewery industry. In
2001, the company shifted its focus and diversified in different industries, but the company
refocus in the growth areas of hotel and restaurants. Now, Whitbread Plc. is a multinational
British Company which engages in leisure hospitality industry. The company includes the chains
of restaurants such as Beefeater, Costa Coffee, Taybarns and other brands.
Stakeholder Analysis
The stakeholder analysis in respect of the company is conducted below accompanied by
its impact on stakeholders. Stakeholders are people who are interested in the project and actively
engage in it. They assist the project's participants in completing tasks successfully and efficiently
(Al Mabsali and et. al., 2021). They can also influence or be influenced by the initiative.
Stakeholder analysis is used to determine these people and prioritise them based on their interest,
involvement, and influence in order to communicate effectively. Managers, members, and
investors are examples of internal stakeholders who have direct impact and high interest.
External stakeholders, on the other hand, are those who have an indirect interest in the company,
such as consumers, suppliers, the government, and so on. In order to conduct effective analysis,

the organisation employs the Power-Interest Grid to properly prioritise the stakeholders.
Stakeholders are prioritised based on their level of influence and interest.
 High Power-High Interest: Directors/executives are regarded policy makers and must be
managed properly and efficiently by employees and the company's leadership. Because
they are the ones that make investment decisions and invest in the company, investors
have a lot of power and a lot of interest.
 Low Power-High Interest: Customers are also crucial, and they must be satisfied because
they have a lot of power. They must also be dealt with effectively.
 High Power-Less Interest: Employees, Community Groups fall under this category since
they have less interest and high power and thus, required to be kept satisfied.
 Low Power-Low Interest: Media must be controlled, but they are not obligated to be
provided with excessive information. By providing licences and performing other
responsibilities, the Government and Regulatory Agency plays a significant role. Even the
suppliers of the Whitbread are included in this category.
Analysis of External Environment: PESTLE Analysis
PESTLE analysis is an abbreviation for political, economic, social, technological, legal and
environmental factors, also called external factors which causes impact on the business
performance (Schumann, Wied and Krahl, 2021). The Whitbread Plc. operates in a dynamic
environment and such external factors need to be understand in order to attain long- term
sustainability and desired goals effectively and efficiently. The analysis is discussed below:-
 Political: These factors causes strong influence on survival as well on the profitability of
the company. The Brexit effect cause political chaos and further deter the trust of
stakeholders and ultimately the business performance. Furthermore, the COVID-19
pandemic adversely affected the business environment and limited the growth
opportunities for the company.
 Economic: The factors includes interest rate, inflation and so on which focus on
determining the economic environment of the nation. The pandemic situation has caused
the inflation, high interest rate and worsen the labour market conditions. Low GDP and
high unemployment highlights the market condition as well as the effect consumers’
ability to spend.