Strategic Hospitality Management

Strategic Hospitality
Management

Contents
INTRODUCTION.....................................................................................................................................3
MAIN BODY.............................................................................................................................................3
TASK 1.......................................................................................................................................................3
Stakeholder’s analysis of the organization...............................................................................................3
PESTLE analysis:....................................................................................................................................4
Critical analysis of the hospitality macro environment............................................................................4
SWOT analysis and VRIO framework of internal environment..............................................................5
Critical evaluation of the internal environment........................................................................................6
Use of Porter’s Five Force Model............................................................................................................6
Appropriate strategies to improve competitive edge and market position...............................................7
TASK 2.......................................................................................................................................................7
Evaluate different types of strategic directions with the use of porter's generic strategies.......................7
Recommendation through the application of Ansoff’s Product Matrix....................................................8
Segmentation, Targeting and Positioning..............................................................................................10
Produce a strategic management plan....................................................................................................11
Critique and interpret information and data...........................................................................................11
CONCLUSION........................................................................................................................................11
REFERENCES........................................................................................................................................13
Books and Journals:...............................................................................................................................13

INTRODUCTION
Business strategy helps an organisation by providing a clear set of plans, actions and
objectives that helps an organisation to reach its market goals with their products and services.
The strategy defines the business organisation a path and act as a guide in the process of decision
making for recruiting and resource allocation (Assaf, A. G. and Et.al., 2019). It helps to plan
long term business activities in order to accomplish the key objectives of organisation. The
report is going to prepare on the Premier Inn which is a British hotel chain in UK. It is a
multinational company which have more than 72000 rooms and 800 hotels. In 1987, the
company was introduced by Whitbread the company is a merger of Premier Lodge and Travel
Inn which was newly recognized as Premiere Inn. The business strategy is also very important in
the hospitality industry. The report includes with the aim of discussing stakeholder’s analysis,
pestle analysis, SWOT analysis and many more.
MAIN BODY
TASK 1
Stakeholder’s analysis of the organization.
A stakeholder is a person who can be anyone who make an impact of the organization’s
decision. Stakeholder can be an individual or small groups who have certain powers, negotiate
with, respond to and change the strategic future of the company. There are two types of
stakeholders:
 Internal Stakeholders; such as managers, governance, board of directors and employees.
 External Stakeholders; such as customers and government.
In context to Premier Inn, the organisation has majorly six stakeholder who are very
important for the organisation and they could effect and influence the company's decision
anytime with some interest.
 Employees: Employees are considered as a key part of the “customer heartbeat” strategy
in the organisation. They are the most vital stakeholder for the organisation because of
their high quality service they create a positive performance of the organisation and in
return they get prices, rewards and salaries.
 Board of Directors: They are also a key element in the organisation of Premier Inn
where they provide and check the report of the companies in different sectors, they are
likely to bring extra ordinary skills and talented people. It has been studied that they
appointed the two non-executive directors both are having international experience and
highly talented for the organisation.
 Managers: Managers are the persons who manage the staff members in the organisation
while ensuring they meets with all the task and activities (Chiang, C. F., Chen, W. Y. and
Hsu, C. Y., 2019). They do planning, budgeting, organising, managing, finances and
many more. In the respective organisation, the managers are liable to promote and
advertise the business and they are also liable to deal with customer complaints.

 Customers: They are the ones from whom the organisation generate revenue. As Premier
Inn is a multinational brand they have customers throughout the world so they are
required to make them satisfied and happy.
 Governance: Governance are the persons who manage and control the company’s
circumstances, they are considered as the ruler of the organisation (Chon, K., 2019). In
Premiere Inn, the main governance are directors, managers as well as chairman.
 Government: Government is the most important stakeholder for any organisation.
Premier Inn has to follow the government rules and guidelines and support in the benefit
for government such as Taxes, VAT and many more.
PESTLE analysis:
Pestle framework represents as an analysis tool that is used to identify the external factors
of the environment. In context to Premiere Inn, the factors which influence the decisions in the
organisation are mentioned below:-
 Political: Premier Inn is a multinational organisation which doing its business globally
they have to follow various nation government policy and also about terrorism. The
organizations product request possibly will get influenced by increasing or decreasing the
provincial, indigenous or national government taxes like general sales tax, alcohol and
beverages Tax, VAT and many more.
 Economic: Many times the brand falls down due to financial crisis in the 2008 but it had
overcome the consequences and after that it delivers several benefits to the customers.
 Social: As the company provides hotel services to the customers it also provides food and
beverages. It has to maintain social behavior and multi-culture because they doing its
business in varieties of countries which may also expect to increase the expenses.
 Technological: Use of technology help a lot in their business activities such as to see
time they can improve their services with self-check in system (Gutiérrez-Martínez, I.
and Duhamel, F., 2019). The company’s technological factors such as online booking
systems, offers which are available to the travel agents and websites.
 Legal: A company is liable to pay a minimum amount as per the law to their employees.
 Environmental: In context to Premiere Inn, the company is committed with energy
saving policy and implemental policy. Changes in weather and climate impacts a lot in
the hospitality industry but the respective company is aware about these factors and try to
avoid pollution.
Critical analysis of the hospitality macro environment.
It has been critically analyzed that the company performs different functions and
corporate strategies which will help them to reduce the negative impacts of macro environmental
factors. When company wants to minimize the negative impacts of macro environment factors
they are considering the positive impact and perform varieties of function in order to achieve
more and more competitive advantages in the market. In context to premier Inn the company
operates its business in a very competitive environment. It has been observed from the above
pestle analysis, the company's strength and weaknesses has been analyzed. When considering the
political, economic, social and legal condition of the organisation it helps to create several