Business Strategy for Premier Inn: Internal and External Analysis

Unit 32 – Business Strategy

Table of Content
Introduction p
Part A: An internal and external analysis that provides a platform
for strategic decision making: p-p
1. PESTLE and SWOT of the organisation and an evaluation of the
organisation’s resources and capabilities p
2. Competitive environment analysis using Porter’s Five Forces model
p
3. Identification and justification of the organisation’s existing and/or potential
competitive advantage p
4. Valid strategies and tactical objectives to achieve overall strategic objectives
p
Part B: On the basis of this analysis critically evaluate and justify
strategic options for the organisation: p-p
1. Critical evaluation of the different types of strategic directions available to
the organisation p
2. Justification and recommendation of the most appropriate growth platform/s
and strategies p
3. Evaluate ways and means by which the chosen strategy/ies can be
monitored in order to ensure success p
5.0 Conclusions p
References p

Introduction
Premier inn in particular is a well recognized as well as, well- established brand name in the
United Kingdom in particular. It has gained its name all throughout the years in the hospitality
industry in particular and has also been in the industry for a long duration as of now
(Loughnan., 2020). This report in particular states or provides information regarding the
external factors that particularly impact the working as well as the performance of the
company in particular. First, in the report PESTEL analysis is done of the company to
understand the external factors. Then SWOT analysis is conducted and the Porter's five forces
model is also applied for understanding the internal factors and the competitive environment of
the company in particular. Also, the existing and also the potential competitive advantage that
the company has in particular is also discussed in the report. And lastly, the tactical objectives
and the strategies used by the company are also discussed below in the report in particular and
also the most suitable ways are recommended for implementing and monitoring these
strategies in particular.
Part A: An internal and external analysis that provides a platform
for strategic decision making:
1. PESTLE and SWOT of the organisation and an evaluation of the
organisation’s resources and capabilities
Determining and evaluating the overall environment under which all the business functions take place
in particular (Teoli, 2019). This evaluation can particularly be done through the application of the
PESTEL analysis and the SWOT analysis in particular. These help or support in providing the
appropriate and accurate knowledge of the aspects of micro and the macro environment in particular.
The analysis of Premier Inn is done as follows;
SWOT analysis
This is particularly a tool or a technique or a method which is used by almost every business
to understand and evaluate the external as well as the internal environment of the business in
particular. It basically evaluates the strengths, the weaknesses, the opportunities as well as the threats
that the company in particular has. Through understanding the weaknesses the business can easily
apply strategies that will help the business in the elimination of such weaknesses and same goes with
threats as well (Puyt, De Graaf, and Wilderom 2020).
Strengths of the business:
 Premier Inn is a well- known company and also has trust and loyalty of its customers in
particular. Which inclines the individuals in the market towards the company.
 The company also has good employee retention, which has a major positive impact over the
working and the goodwill of the company in the market in particular.

 The company also offers the best services to its customers in particular, through offering
options in affordable and little luxurious comforts too. Which makes the target market of the
company wider.
 The company Premier inn has technical innovations for the purpose of enhancement of the
experience of the customers and also to upgrade the levels of business processes in particular.
Weaknesses-
 There are limited market share of the company in the market in particular which impacts the
brand image of the company on major basis.
 The company is mainly dependant in the market of the United Kingdom in particular. The
company is totally based on the UK market which is a major disadvantage for the company in
particular.
 The company has a very high amount of the debts which is recorded in the year of 2015. The
debt rate was around the year 5 billion, involving the debt in the US.
Opportunities-
 The brand particularly has a major scope of further expansion in the global market in
particular. This can particularly be done through focusing more on the research and
development of the hotel in particular.
 There is high potential for the company in the market in particular.
 The enhanced level and requirements of digitalization an also better usage of technology in
the company.
 The company can also particularly introduce the services of the organization or the hotel in
particular in the mid- level as well as in the higher class too by making services more
luxurious and premium as well.
Threats
 as the organization operates all over the United Kingdom in particular, but different places
have different types of individuals and diverse thinking processes in particular. This makes
the working of the company unstable.
 There is wide competition in accordance to the price point in particular.
 There are major threats observed in the hotel chain in particular like the issues that are ethics
related in particular and feedback from the customers is also majorly impacting the
performance as well as growth of the organization in particular.
PESTLE analysis