Hospitality Business Strategy: Analyzing Macro and Internal Environment, Competitive Forces, and Strategic Directions for Premier Inn

HOSPITALITY
BUSINESS STRATEGY

Contents
INTRODUCTION...........................................................................................................................1
PART A...........................................................................................................................................1
Critically analyse the impact and determinant of the macro environment on a given hospitality
business and strategies by applying appropriate models like PESTLE and SWOT analysis......1
Analysis of macro-environment in context to hospitality business to identify and communicate
strategic management decision ...................................................................................................3
Critically analyse internal factors and capabilities of business through an appropriate
framework....................................................................................................................................3
Evaluating internal environment to determine strengths and weaknesses of business's internal
capabilities,skill set and structure................................................................................................5
Critically Evaluating competitive forces for the business organisation with the help of Porter's
five forces model..........................................................................................................................5
Recommendation of appropriate strategies to improve competitive edge and position of
business in the market..................................................................................................................6
PART B............................................................................................................................................6
Different types of strategic directions available in context to Premier Inn using Porter’s Generic
Strategies..........................................................................................................................................6
Interpreting information through environmental and competitive analysis.................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Strategic planning is a framework that helps business organisation in arrangement of operations
in such a manner to accomplish them efficiently. It includes framing different strategies and
plans that helps to achieve the organisational objectives. It can also considered as a tool to
influence management towards decision making and determining ways to perform several
business operations. Premier Inn hotels is a largest hotel brand of United Kingdom having more
than 800 hotels. It have wider control over the hospitality industry and provides aggressive
competition to their competitors. The management of this hotel also use strategic planning to
enhance profitability of business.
This report covers internal and external factors that helps the management of business in
strategic planning. For this analysis PESTLE/SWOT MODEL is used to enhance information
quality. It also highlights the aspects of strategic plans and strategic directions with different
theories and approaches. It also includes interpretation and recommendations to the strategic
opportunities and other growth platforms.
PART A
Critically analyse the impact and determinant of the macro environment on a given hospitality
business and strategies by applying appropriate models like PESTLE and SWOT analysis.
Every organisation have different impacts of macro environment or external factors on
their business operation. Business have to frame strategies by using different models and
approaches in their strategical planning (Cassinelli ). In context to hospitality business, Premier
Inn is applying pestle and swot analysis to influence their business strategies. The Pestle and
swot analysis of Premier Inn's strategies are mentioned below:
PESTLE Analysis: It is an external analytical tool that helps business organisation to determine
the uncontrollable factor affecting their environment. Premier Inn is using pestle analysis in
strategies formation by analysing its aspects. The factors used by hotel chain management is
mentioned below as:
 Political factors: These are the factors that helps business to make strategies and plans
which helps the organisation to achieve their organisational objectives. Government of
UK decides some supportive schemes for hospitality industry that can provide benefits to
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