Hospitality Business Management - ABRQF0074H41FT/FG

Assignment Code: ABRQF0074H41FT/FG
Programme: BTEC HND in Hospitality Management (RQF)
Unit Title and Number: Hospitality Business Strategy (Unit 41)
RQF Level: 5 Module Code H/616/1826
Credit value: 15 credits
Module Tutor: Dr Faithfull Gonzo and Fabrice Teyssedou
Module Tutor Email: [e-mail] & [e-mail]
Date Set: 11/08/2021 Distribution Date 16/09/2021
Cohort Jan 2020 A & B
Student’s name
Registration number
First Submission? Second Submission?
Word Count
Signature Submission Date
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Table of Contents
Introduction..............................................................................................................................3
Macro Environment analysis..................................................................................................4
PESTLE Analysis...................................................................................................................4
Stakeholder Analysis................................................................................................................5
Internal and External stakeholders of Premier inn.................................................................7
Internal environment analysis................................................................................................8
VRIO Framework...................................................................................................................8
Value Chain Analysis.............................................................................................................8
SWOT Analysis.....................................................................................................................9
Outcome Analysis...................................................................................................................11
Porters Five forces................................................................................................................11
General analysis of the report..............................................................................................12
Strategic direction and Plan..................................................................................................13
Porters generic strategies......................................................................................................13
Ansoff matrix.......................................................................................................................14
Bowmen’s strategy clock.....................................................................................................15
Smart Plan............................................................................................................................16
Recommendations..................................................................................................................18
Conclusion...............................................................................................................................19
References...............................................................................................................................20
Appendices..............................................................................................................................23
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Introduction
The below report has been critically based on a focus of strategic decision and planning for
the hospitality business Premier Inn that has been present in the UK and the international
European region. The report has been able to identify major reasonable approaches that the
Premier Inn business can approach to increase their marketing strategy in the response to the
current international and global pandemic that hit the world and the focus of our report
hospitality industry very badly, leading to major losses in the economic condition of all the
businesses. The response becomes important for businesses such as Premier Inn to create a
strategy that would help tackle the changes and stabilize the effects of the business
environment.
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The impact and influence of macro environment in Premier Inn and its
business strategies
PESTLE Analysis
Pestle analysis is a method that has been derived to analyse the effect from the factors and
elements that are creating a change and effective changes in the strategies and the decision
making of any business. The factors are not in control of the business but will be much
effective in the changes in the running of the business. The factors are a major role player in
the companies working and decision making such as political, economic, social, technology,
legal, and environmental. The Premier Inn Company requires to create a strategic approach
towards the external environment in the following methods (Al-Waely, 2019).
Political
The current involvement of the governments across all over Europe has changed and it has
created major changes in all the reforms and policies of the hospitality industry due to the
global pandemic. The political effect can be understood as the changes in the regulation such
as being in threat from the government policies that would make legislations such as tax
reforms on the hotel industry which has been in the present time being changed due to the
BREXIT and global pandemic reforms. (Nikolskaya et al. 2020). The travel restrictions and
stopping international and national tourism slowed and increased the losses of the hospitality
sector which also includes the major role players of Premier Inn (Nikolskaya et al. 2020). The
government restricted the tourism and also reduced all the international flights from all the
countries within each other which left the business to feel heavy losses. Due to the bad effect
and major global restrictions in the policies led to uncertain closing of the businesses as the
government has no idea on when there will be a response to the pandemic with cure, which
led to a major crisis in the world of the hospitality industry. The impact of the BREXIT and
global pandemic has led to reduction in the staffing and recuritung as the scope of employees
and new talent is left only to the area under the Uk and recruitment from the Europe would
increase the cost due to the legal reasons such as equiments of work visa and many other.
Economic
The present situation such as the effect of a global pandemic on the economy can be
understood as it leads to a rise in prices of goods and services being overcharged. Economic
conditions lead to prices rise and also increase in interest rates lead to the consumer spending
less on any other commodities such as Premier Inn. The economic inflation would mean that
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there would be people would spend less on the expendatures and thus leading to increase in
the hotel industry pricing to maintain operations. The effects of different regulation systems
under the European union were different and now it has no support as the UK has become a
separate body making it more vulnerable to economic changes thus the changes in the
economy will lead to major changes in the industry. The other economic effect can be
understood as the rise in the fuel prices
Social
The majority of the public remained inside and tried to avoid holidays and vacations which
has been the main reason for the hospitality industry to continue to exist. The global
pandemic led a majority of people to stop their plans and interest in the hospitality sector.
The people wanted more cleanly and became more conscious and avoided locations such as
hotels and places such as restaurants that require people and the public to visit them regularly
(Jaujan, Makin and Jamil. 2021). There has been increase in people being at location that are
from thus Premier Inn was able to benefit from it as people would not leave the country and
also the social changes meant that minilian generation were now not interested in the jobs
were quting the jobs in Premier Inn leading to lack of staffs.
Technological
The hospitality industry has been indulging itself in practices such as modernizing the
technology in the industry. The major force of that has been seen as the effect which it has on
the industry to gain advantage through the use of social media, virtual platforms, and
technology to reduce the cost of the business, while these are the positives there are some
demerits that the consumers have much more options and cheap alternatives to find through
the technology. Premier Inn has many benefits such as they are able to connect with many
potential clients through webstites and application to get in touch at a regular interval which
would give the hotel much more fast processing.
Legal
The company was legally required to shut all the activities and remain out of business due to
the introduction of lockdown and which led to losses and there was a major loss in the
employees to be removed for cost-cutting. The policies and the health standards change
regularly which increased the company’s cost and expenses which has already been in losses.
The current market changes also led stakeholders to get worried and remove their investment
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and thus Premier Inn has been trying hard to maintain the competitive advantage and
maintain communication that is positive with all the stakeholders. Legislations such as
employee health and safety, data protection Act 1998, and laws such as furniture and
furnishing are some of them which need to follow. Premier Inn has to follow and make sure
to not break any rules or else there can be charges and fines on the business. The business has
to change the pay system due to new legislation which has been in news due to recent rise in
the demand by the pubic, this can lead to major changes and lead to increase in cost for
premier inn.
Environmental
The global climate changes and global warming effects have led the consumer to become
aware and thus the consumer has shifted the interest towards the business which are
practising more sustainability and are making changes that are CSR worthy. The business has
to introduce regular health checks and also reduce the usage of carbon emission in the
business purpose in their financial report which states that the company has been working on
reducing environmental bad effects and increasing sustainability practices in their hospitality
sector (Korjuhina and Sorokin, 2017). Being sustainiable would make better changes in the
business that would allow premier inn to benefit and decrease in the cost of the business.
Premier inn has pledged to reduce emission by 50% by the year 2025 (Premier Inn, 2021).
Stakeholders analysis
It is very important for Premier Inn to keep their stakeholders happy and satisfied for
proceeding with their organizational work smoothly. The analysis keeps focusing on
evaluating the level of satisfaction of all the internal as well as the outsider people who share
their interest either directly or through the indirect medium. These stakeholders are the person
who is affected directly or indirectly by any decision that the organization makes within their
work process.
To be precise the major stakeholders of the Premier Inn are the local and national
government, customers, banks and also suppliers and investors. The employees and the local
community are also some of the key stakeholders of the organization.
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