Business Consultancy Project

This business consultancy project focuses on Premier Inn, a British hotel chain, and provides a detailed assessment of the internal and external environment. It includes a situation analysis, market analysis using PESTEL, SWOT, and Porter's five forces, and an action plan for expansion and improving competitiveness.

The Business
Consultancy
Project

EXECUTIVE SUMMARY
For organisation to strategic expand and move into new marketplaces with the motive of
increasing customer base and improving the competitive advantage and competitiveness of the
operations market analysis is one of the most essential practice to be undertaken for the same.
The market analysis can help and assist the company and its top management for understanding
the external environment and internal factors effectively and make appropriate choices and adopt
the best options for expansion. The report below is a detailed business consultancy e assessment
where situation analysis is conducted in order to seek knowledge about the internal and external
environment of Premier in along with possible options are also analysed with the help of ansoff
matrix. The possible options which are more suitable and beneficial for premier Inn will be
selected and a detailed action plan is developed for premiere in according to the possible strategy
identified with the help of ansoff matrix. The detailed plan of action includes risk assessment
along with developing the operations into most profitable market segment by attaining a
competitive edge and becoming more profitable and stable.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................2
SITUATIONAL ANALYSIS AND PROBLEM IDENTIFICATION...........................................2
PESTEL analysis....................................................................................................................3
SWOT analysis.......................................................................................................................4
Porter’s five force analysis.....................................................................................................6
POSSIBILITIES (OPTIONS)..........................................................................................................7
Ansoff Matrix.........................................................................................................................7
DETAILED PLAN OF ACTION....................................................................................................8
Aim and Objective..................................................................................................................8
Risk assessment......................................................................................................................9
Action plan...........................................................................................................................10
CONCLUSION..............................................................................................................................13
REFRENCES.................................................................................................................................14
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INTRODUCTION
Business organisations are present in the marketplace dealing in different industries
according to their offerings their products and services. There are number of different industries
in which an organisation can operate with their potentials and resources available. A company
can be e off many different sizes and of various nature such as public or private and profit or
non- profit firms. All those organisations and businesses work with their specific motives and
goals in order to meet the needs and attend their objectives in the prescribed and determined time
frame. A business organisation always makes plans and considers there every step before
working and performing their operations. In order to do so they have to conduct various analysis
and thoroughly understand their markets in which they are dealing. The project is based on
Premier Inn which is a British hotel chain and one UK's largest hotel brand. Premier inn was
founded in 1985 by Whitbread which is its parent organisation. The hotels are headquartered in
Dunstable, UK and serves in markets like UAE, India, Germany, United kingdom and others.
The report covers different segments of a business consultancy which highlights situation
analysis and problem identification segment with the help of PESTLE, SWOT and Porter’s five
forces framework. Moving forward possible options is also evaluated with the help of ansoff
matrix which will enable Premier Inn to identify appropriate strategy and ways to deal with the
current problems identified in the previous section. Moreover, a detailed plan is developed risk
assessment and shareholder assessment is conducted for in in order to work in the appropriate
manners for reducing the risk and threats of the problems identified by the market analysis that
will also enable Premier Inn to make use of the resources in the most effective manner and
increase their productivity and profitability.
SITUATIONAL ANALYSIS AND PROBLEM IDENTIFICATION
Situational analysis refers to evaluation of internal and external factors which are present in
the business environment of an organisation. In other words situation analysis is basically
identifying potential factors and capabilities of company in order to make use of them enhance
the business. Situational analysis also conducted by organisation to understand the business
environment in cost possible manner for identifying problems which are faced by the entity and
which are going to be a potential obstacle in in way of organisation in future (Lycko and
Galanakis, 2019). Therefore it can be said that situational analysis helps do company to
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understand and thoroughly evaluate the environment in which it is operating and along with it to
know its capabilities and weaknesses so that the business can perform and render better
performances.
PESTEL analysis
External environment is one of the most influential factors that can hinder and foster the
business and its profits if appropriately used and all relevant risks are reduced. Premier Inn is
headquartered in UK but also serves to International marketplaces therefore it is implied that its
external environment is affected by varied and large number of factors. Therefore PESTLE
analysis is conducted for knowing understanding the external environment of Premier Inn.
 Political factors highlights the influence of government and other political laws over the
business and its opportunities. Currently the political environment of UK is stable, that
means in the political environment all the government policies are amended and made in
favour of hospitality and tourism industry as it is one of the biggest source of revenue for
governments and UK economy.
 Economical factor refers to those elements which influences how easy or hard it is to be
a successful business in in UK. Currently the world economies are in crisis due to the
outbreak of COVID19 virus and the UK economy is also suffering from BREXIT. This
implies that the economic factors are not in favour of Premier Inn in the current scenario
but BREXIT brings in great opportunities for the businesses of UK (Zlati and Antohi,
2018).
 Social factors refers to the population and the people to whom and organisation is
offering their products and services. Premier Inn is a hospitality service provider that
means it relies heavily on tourism both internal and external. Therefore, the social factor
is one of the most potential and influential external factor that will affect the business of
Premier Inn. The hotel chain needs to concentrate on the needs of people and its
customer’s domestic and international both.
 Technological factor refers to the changing and rapidly increasing use of technologies
and digitalization. Premier Inn can make use of these updated and fast technologies for
drinking more business to itself and increasing its popularity or accessibility in the world.
New business websites which are official and advantageous for premier Inn and its
business. The use of social media allow organisation to conduct its marketing in a very
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effective and cost saving manners. Also show internet and social media is another very
big platform for organisation to bring in more customers by making use of online hotels
and websites to take bookings of customers by reaching to them.
 Legal element of external business environment refers to the specific laws and
regulations which are formulated by government for smooth and effective running of
businesses in their respective economies. The legal laws of tourism and hospitality sector
which are developed by the UK government had to be followed by Premier Inn.
Therefore the organisation has to develop and keep in mind these legal laws while
creating their internal regulations for running their business (López Cañizares, 2020).
 Environment factor is one of the newest and most influential external environment
element that effects the buying behaviour of people and more importantly the business of
an organisation. Nowaday’s people are getting more aware about the environmental
destruction and harm businesses are causing towards them and therefore they are more
attracted towards those organisations who are practicing environmental friendly
operations. Premier Inn concentrates on this factor and therefore works over reduction in
CO2 emission and reducing waste.
SWOT analysis
SWOT analysis is a framework which highlights the internal Strengths and Weaknesses of
an organisation and external Opportunities present in the business environment along with their
Threats. Premier Inn is also an international business organisation which has various capabilities
and drawbacks. Therefore, in situation analysis so what analysis is one of the most potential tool
which will enable premiere in to understand their capabilities and work on them for attaining
better positions and reducing their problems.
Strengths Weaknesses
 One of the biggest strength of Premier
in is its profitability that is the
occupancy rate of the hotel is 80%
and even more which rises its
operating profits and make its more
profitable.
 The biggest strength of Premier Inn is
its strong presence in UK but it is its
weakness also as the hospitality
provider does not have a very good
global presence. It implies that limited
global presence is becoming weakness
of Premier Inn as it is not reaching to
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 Another important and most
prominent strength of Premier in is it
has a very strong presence in the UK
and its brand image is very popular.
The hotel serves best Quality services
and products to its customers which
help it to develop a loyal customer
base and that makes it stronger and its
brand image more popular in domestic
and in international markets (Hu and
et. al., 2019).
more potential customers who are
present in the global market.
 Another weakness of Premier Inn is
its hygiene issues. In recent past
months many reports came out related
to the hygiene issues of Premier Inn in
which is hindering its brand image.
Opportunities Threats
 The weakness of Premier Inn is its
biggest opportunity and that is global
expansion. Globalisation is increasing
and international trade is becoming
more and more flexible. This is a very
huge opportunity for distance business
sectors including hospitality sector
and that is Premier Inn. It has a huge
opportunity of expanding its business
into international waters and making
its present in global markets.
 Digitalization and advancement in
technologies is another opportunity
which is present in front of Premier
Inn as it can make use of digital tools
for conducting marketing campaigns
and promotional activities which are
more effective and attractive. These
digital marketing tools save a lot of
 the biggest threat which is currently
faced by world economic and old
different types of business sectors and
especially hospitality business sector
is the outbreak of COVID19. This
deadliest disease the affecting tourism
and hospitality industry in a very see
your manager and it is one of the
biggest threat of Premier Inn.
 Another threat of Premier Inn is
execution of BREXIT in Britain
through which UK economy is
affected and on the other hand
increasing competition in domestic
and in global markets both (Shaw,
2019).
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time and cost of organisations along
with region to maximum population in
a very small time frame (Lehmann,
2018).
Porter’s five force analysis
Porter's five forces analysis is one framework which enable premier Inn to understand the
external competitive environment by knowing and gaining appropriate knowledge about its
competitors and potential competitors arriving in marketplace with passing time and changing
market conditions. It has 5 elements which gives a brief analysis of five different segments about
the competitors of an organisation.
 Barring power of supplier refers to the power and potential all the suppliers of Premier
Inn holds over it. According to the market research and analysis suppliers power over
Premier Inn is moderate because they gain their power due to increasing competition and
the heads of competitors are continuously increasing in the hospitality sector therefore
currently suppliers have moderate power over Premier Inn (Polonsky and Waller, 2018).
 Bargaining power of customers is referring to the power consumers and visitors hold
over organisation. The bargaining power of customers is also moderate over Premier Inn
and the biggest reason behind it is its brand loyalty and strong brand image in the
marketplace. Premier Inn has a very strong presence in UK and very strong influence
over its customers.
 Threat of new entrants is basically referring to the competitors who are emerging in the
market. According to the SWOT analysis of Premier Inn it is highlighted that one of the
biggest threat which premier Inn will be facing in the future is increasing competition.
Reason behind it is the industry is highly competitive but the entry barriers in IT are
slowly reducing and becoming moderate which is increasing the flexibility hospitality
sector and more importantly providing power to people for entering in hospitality service
providing sector.
 Threat of substitutes referring towards the new and better substitute being entering the
market. This thread is also very high for Premier Inn as its competition is increasing as
new entrepreneurs and businesses are entering the marketplace with more better services
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and innovative offerings which is causing a high potential threat over the business and
offerings of Premier Inn.
 Threat of rivalry is highlighting and referring towards the existing competition in the
marketplace for Premier Inn. Hospitality industry and business sector is aggressively
increasing and becoming competitive. This implies that with emerging competition the
existing competitors are also becoming aggressive and giving very potential competition
to the organisation. Therefore right of existing rivalry is also high for Premier Inn
(Buttrick, 2018).
POSSIBILITIES (OPTIONS)
Ansoff Matrix
The ansoff matrix is known as product market expansion grid which assist and enables
organisation in analysing where is different options and strategies available to them and adopt
one of the best suitable strategy for themselves in order to grow and maintain a competitive
advantage in the marketplace. The tool of ansoff matrix was given by Igor Ansoff of in 1957 and
help businesses to recognise their potentials and accordingly adopt a suitable options for their
expansion in the market. This matrix is made up of four different strategies how to which one
will be suitable for premier Inn and which will help it to move forward and be potential while
dealing with its current business problems which exist in the external business environment and
affecting its internal operations.
 Market penetration- The strategy of market penetration states that organisation should
focus and say in the existing business market and make use of effective marketing
techniques to retain their existing customers and attract new customers by offering them
same old products and services. Premier Inn if adopts this strategy has to stick with their
old market place that is UK and make use of better promotional and digital tools to
market its goods and offerings (Raudino and Poletti, 2018).
 Product development- The product development strategy refers to when an organisation
develops an entirely new product which is innovative in nature for its existing market and
targeted audience. The strategy of product development is developed on the idea of
attaining a competitive advantage and growth in the market by developing new goods for
the people according to their desire and expectations. Product development strategy is
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effective and suitable when premier Inn wants to enhance its presence in existing market
and attract more people for changing them into potential customers.
 Market development- The third strategy is of market development which states that the
organisation should move into new market places with their existing products and
offerings. The market development strategy states that company should conduct effective
market research there analyse those markets in which its existing offerings are potential
and fulfill the needs of people in the new market (Draijer, 2020). One of the opportunity
which is available in front of Premier Inn regarding to its expansion and growth is of
market development where it is suggested to it that in order to be more competitive the
organisation should move internationally and increase its global presence. Therefore it is
one of the potential strategies for Premier Inn for being effective and attaining a
competitive edge.
 Diversification- The last strategy of ansoff matrix is of diversification. this strategy
suggest that the organisation should move into new market place with a new product.
That means the entity should develop and conduct effective market research their it
analysis and identifies a new market and according to their needs develop an entirely new
products for satisfying their needs.
The ansoff matrix analysis strategies which are beneficial and profitable for organisation
according to their nature and current position in the marketplace. These strategies when adopted
and implemented properly are proves to be potential and serve a competitive edge to the
organisation (Lock and Wagner, 2018). By conducting a situation analysis and determining the
current market position of Premier in along with all the threats and weaknesses of it the most
potential strategy for Premier Inn is off expansion and moving into new market by increasing its
International presence. Therefore market development strategy is beneficial and suitable for it
company have to conduct a thorough global market research and identify one of the potential
markets for itself for moving is operations.
DETAILED PLAN OF ACTION
Aim and Objective
According to the above research of the current situation of Premier in with the help of
different tools and techniques it is evaluated that currently the organisation is facing many
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problems internal and external business environment that is domestic and international. PESTLE
analysis is conducted understanding the external environment of Premier Inn which states that
currently the economic and environmental factors are improving negative impact on the business
of organisation due to outbreak of coronavirus and BREXIT. The SWOT analysis assisted in
knowing the strengths and weaknesses of Premier Inn along with identifying all the beneficial
and competitive options available in front of Premier Inn for gaining a competitive edge and
knowing all the associated with those Opportunities (Serrador, Gemino and Reich, 2018). After
conducting the situation analysis ansoff matrix is used for identifying an appropriate strategy for
Premier Inn and that is market development. Therefore the aim and objective which is identified
in case of Premier Inn is of moving into new international market and enhancing its global
presence for attaining a competitive edge by serving and offering best quality products and
services to the customers who are potential according to their expectations. The aim of Premier
Inn will be very clear that is of expanding into new international markets after the lockdown due
to COVID19 removes. It is an opportunity for Premier Inn to develop there International
presence and attracting new customers.
Risk assessment
Risk assessment and Management is considered to be one of the most essential and important
practice which is needed to be undertaken by buy all different types of organisation for gaining
knowledge and having an appropriate idea about the marketplace and all the different kind of
risk associated and present in it for the respective entity. The risk assessment and management
enables an organisation to understand the nature of the risk and make appropriate measures to
mitigate for reduce the impact of those risk on the entity (SALVATION, 2019). The risks are of
different types such as avoidable risk, immitigable risk, transferable risk, exploitable risk and
acceptable risk. Management and assessment of risk enables and provide the company
understanding of the risk and appropriately take measures to deal with it. Premier Inn hotels and
resorts also need to understand all the risk associated with the opportunities they have in order to
develop a detailed plan for exploiting the market development strategy and entering a new
marketplace for enhancing global presence. There are three steps which enables organisation to
understand and rate their risk in appropriate manner for or developing effective solutions in order
to reduce their impacts.
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 Risk assessment- The first stage is a risk is being evaluated by conducting risk
assessment activities by the upper level executive and members of company. At this stage
the top level management of Premier Inn with properly evaluated and identify the
likelihood and impacts of certain risks which are present in the external environment of
the new market in which organisation is planning to enter by developing a detailed
market development plan. Risk rating- The second stages of risk rating which is conducted after risk assessment
where the top level management is responsible for bifurcating the risk and rating them
according to the intensity of their impacts on the organisation. It is mentioned that there
are different types of risks and once the risk assessment is completed the identified risks
are placed to their respective type in order to take specific measures by looking at the
intensity and severity of the risk (Adesi, Owusu-Manu and Murphy, 2018).
 Prioritizing risk- The third and the last age is of risk prioritising, once the risk is assessed
and it is rated according to its intensity and severity the company gets an idea about the
intensity of the impact on the profitability and competitiveness of the organisation.
Therefore the help of risk assessment stage the top level management mitigates the risk to
an acceptable level and make appropriate measures to deal with the outcomes of those
risks which are not immitigable.
Action plan
COMPANY OVERVIEW
Premier Inn is a hospitality service provider and a British brand which was established in
1987 and headquartered in Dunstable, UK. Premier Inn is a hotel chain with more than 72,000
hotel rooms and approximately 800 hotels (Payne, Roden and Simister, 2019). The organisation
corporate hotels in a variety of location including City centres, suburbs and airports competing
with the like of Travelodge and Ibis hotels. Premier Inn is one of the biggest and the largest
hotel chain in the UK and accounts for almost 70% earnings of its parent organisation
Whitbread.
VISION
The vision statement of Premier Inn reflects that the organisation is recognised in the
hospitality industry for its unique way of rendering satisfaction to its customers and fulfilling
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their promises. That means the company believes in in keeping their gas first and adopting
customer centric approaches for rendering them best Quality services curated experiences.
MISSION
The mission statement of Premier Inn reflects that the company intends to become the
preference of his customers and game customer loyalty by offering then professional,
personalised, flexible and curated hospitality experiences and services amongst all other
competitors and in leisure market (Huan and ZhanWen, 2018).
SMART OBJECTIVES
 To increase the customer base by 10% in next 8 months.
 To increase the sales and revenue units by 6% in next one year.
 To increase the profit units by 5% in next 8 months.
 To increase global presence and be competitive in the marketplace after reduction of
COVID19 effects.
STRATEGY
The condition of world economy is very unstable due to outbreak of COVID19 and same
is a case with UK's economy. Also another problem which is faced by the businesses and
organisation in UK is due to BREXIT. Both COVID-19 and BREXIT have Syria effects over the
businesses and old different types of industries running in the UK. Therefore, the best strategy
which is suggested to premier Inn and which is suitable for it in order to attain competitive edge
and become stable in the market place and in hospitality industry is of market development
(Tuominen and Martinsuo, 2019). With the help of market development strategy premier Inn can
move to international borders and enhance its global presence which will also help it to attain a
competitive edge and becomes stable again in the market place once the situation gets better after
the impact of COVID19 reduces.
SEGEMENTATION, TARGETING AND POSITIONING
 Segmentation- The segmentation is a technique of dividing and grouping the population
into numerous groups according to their nature and characteristics along with their
buying behaviour. Segmentation strategies adopted for understanding the the population
of the market in which organisation is operating. segmentation can be done by four
different manners that is demographically, geographical, behaviourally and
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psychographic. Premier Inn has segmented its market geographical that means the
organisation is moving towards new geographical locations for establishing their business
and conducting their operations.
 Targeting- The targeting stage comes after segmentation their organisation identifies a
potential segment according to their offerings and nature of business. The targeting stage
enables organisation to select their targeted audience and serve them defective goods and
services according to their needs desire and expectations. The targeted audience for
premier Inn is those people who are looking for good quality accommodation services as
premier Inn is expert of budgeted hotels and services (North and Kumta, 2018).
 Positioning- The third and last age is of positioning where Premier Inn will develop
effective strategies and adopt various tools to position itself and brand name in the new
international market in the most effective and attractive manners. The opportunity for
premier Inn was to adopt and make use of digital marketing tools. These marketing tools
are very attractive and low time and cost consuming so that premier Inn can attract more
and more people towards its offerings in very less money and investment.
BUDGET/ CASH FLOW
 Budget
Particular 31/12/19 31/12/20 31/12/21
Implementing technology
cost
15000 - 3000
Promotional expense 11000 10500 7500
Advertisement expense 8000 7500 6000
Catalogues 1500 2500 3500
Training charges 9000 7000 6500
Total Cost 46500 27500 26500
 Cash flow
Particulars 1st year 2nd year 3re year
Initial investments 9800 12560 18000
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Borrowings 10500 6200 9500
Retained earnings 5500 8500 10000
TOTAL 25800 27260 37500
MARKET OUTLAY
Promotional expense 8800 8000 13500
Distribution expense 4000 7400 9500
Publicity 5500 12500 8500
TOTAL 18300 27900 31500
CONCLUSION
The above report is developed as a business consultancy and concludes that the organisation
and business is affected by several different factors which are either internal or external. The
report conducts a situational analysis with the help of PESTLE, SWOT and Porter’s five forces
framework. The situation analysis is conducted for knowing the market and the business
environment of the company in order to you have no knowledge about all the internal and
external factors which are affecting the growth and competitiveness of the entity. Moving for
other possible options are analysed with the help of looking at different strategies and approaches
available for the organisation. These strategies are identified with the help of ansoff matrix
which is also known as product/market expansion grid. Through this analysis out of four
different strategies the market development strategy is appropriate for the given organisation.
Furthermore risk assessment and stakeholder analysis is also conducted for developing effective
plan by adopting product development strategy which will enable the company to have a
competitive edge become more stable in the domestic and global market. The plan is developed
in detail and by taking appropriate measures.
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