Strategic Analysis of Best Western Premier: A Comprehensive Report

This report provides a comprehensive analysis of the business strategy of "Best Western Premier," a hotel chain. It begins with an introduction to business strategy and outlines the report's objectives. The report then applies the PESTLE framework to analyze the macro-environment's impact, considering political, economic, social, technological, legal, and environmental factors. The internal environment is assessed using VRIO analysis, evaluating the value, rarity, imitability, and organization of the hotel's resources and capabilities. The report further investigates the competitive landscape through Porter's Five Forces model, examining competitive rivalry, potential entrants, suppliers, customers, and substitutes. A SWOT analysis summarizes the internal and external factors, followed by a critical evaluation of the internal environment and recommendations for strategic improvements. The report concludes with a summary of findings and a list of references.

Business Strategy
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Table of Contents
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................4
Applying the appropriate frameworks, analyse the impact and influence of macro
environment on The “Best Western Premier”...................................................................….4
LO2..................................................................................................................................................6
Analyse internal environment and capabilities of organization by using VRIO analysis.....6
LO 3.................................................................................................................................................9
Competitive analysis of market sector by applying porter’s five force model......................9
LO 4...............................................................................................................................................11
Summary of SWOT..............................................................................................................11
Critical evaluation of internal environment with porter’s generic.......................................11
Recommendations................................................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15
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INTRODUCTION
A business strategy is based on a powerful tool or platform that helps for reaching
enterprise goals, defining the suitable strategies, tactics that needed to take within the
organization (Park and Mithas, 2020). Another way, it can be defined as a business strategy that
refers to the actions, decisions which take place by the hospitality industry.
This report is based on the “Best Western Premier”, identifying the impact and influence
of the macro-environment with the help of pestle analysis. This report will describe the analysis
of the internal environment and capabilities of the organization, evaluating the outcome on
behalf of analysis. Furthermore, it will discuss the different models, concepts, and theories to
assist with understanding, interpretation of strategic direction within a hospitality organization.
Mission: To enhance the overall business visibility and make a strong brand in the global
marketplace.
Vision: To improve current business operational activities.
Objective
 To increase productivity as well as the profitability of the organization in the global
marketplace
 To implement digital technologies for improving speed, the efficiency of business
operational tasks.
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LO1
Applying the appropriate frameworks, analyse the impact and influence of
macro environment on The “Best Western Premier”
Pestle Framework
It is a type of tool or framework that mainly used by enterprise to analyse macro
environment or culture. Pestle analysis refers to the political, economic, sociological,
technological, legal, and environment. This type of framework will provide the insight into
external factors which impact on the Best Western Premier hotels in the global marketplace
(Bondarenko, Efremenko, and Larionov, 2019). This type of hotel provides great and important
services which not only attract tourists but also travellers from one country to another.
Obviously, there are different factors that directly affect the hotel industry.
Political Factor- Political factor plays an important role especially in the context of the
economy of the nation. Best Western Premier is targeting international tourism and then
afterward, it will be focused on the different hotel properties. This hotel provides the best support
for guests and helps to sustain in a competitive world.
Best Western Premier needs to understand the different rules and regulation of country,
which may vary in the province and then afterwards, West premier hotel operates as franchisor.
Manager of Hotel will monitor or track the activities of regulation. Nowadays, COVID-19 has
been rapidly increasingly impact on the business to decrease revenue of hotel. Furthermore,
identifying the political instability within best premier hotel in which impact on the business
policies, and procedures for growth and development (Bondarenko, Efremenko and Larionov,
2019).
Economic Factor- Basically, this factor includes taxation changes, economic growth,
inflation and interest rate, exchange rate. The best way to know about the economic change that
does leave a significant impact on the behaviour of Best Western Premier. All capital states and
country, own a wide number of tourists arriving for purpose of workshops, business dealing, and
another type of sole purpose (Bondarenko, Efremenko and Larionov, 2019). In this way, it is
positively impacting the hotel to give the best option and maintain their service.
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West premier hotel is focused on ever expanding supply in which there is no longer to
manage their franchise due to COVID-19, it has been reduced economy power within hotel
enterprise. Afterwards, best premier hotel revenue and its operating profit will be decreasing due
to decline of market activities.
Social Factor- The social factor is considered the important in Hotel industry because it
will continue to change the demand, want, and preference of the potential client. In UK, many
individual people is focused on the traditional culture and use their native language. Sometimes,
they can give more preference of their traditional food items. That’s why, Best Premier hotel will
serve the dishes, food and beverage on the basis of the demand. Therefore, Hotel can need to be
understand the difference to establish an effective marketing strategies for nation (Bondarenko,
Efremenko, and Larionov, 2019).
Best western Premier is basically exposed to the threat of damage in its reputation. If in
case, it fails to demonstrate with efficient use of practices, promoting awareness among local
communities.
In this way, it can identify that Social factors will positively impact the hotel to increase
the classes of guests so that customers prefer to select the best one, also it will negatively impact
the hotel where if they are not fulfilling all need or requirement for guest.
Technological Factor- Advancement of modern technology that can be used by Best
Western Premier especially, when it comes to hotel management procedures. This type of hotel
is providing the best quality of services where each and every guest can do their booking through
digital technology. Event guests prefer hotels that are embedded with modern technology. It
became safe and secure so that it would reduce the work efforts and enhance the better result or
outcome. For Example- Hotel provides a card-based key for luxury rooms and online booking
facilities through the website. Modern technology will positively impact the hotel to show
progress and increase growth opportunities. Within Best Western Premier, staff members can
utilise technological aspects and integrated with customer satisfaction levels. But at some point,
it negatively impacts the hotel regarding privacy.
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Legal factor- The legal factor is a positive impact on the growth and development of Best
Western Primer, there have been many changes made which affected the behavior of hotels.
Legal factors include health legislation and safety. However, discrimination law has been
eliminated which identifies possible impacts on legal aspects and effects on the hotel (Chen,
2019). On the other hand, the Current situation and war condition do not affect the Best Western
Premier hotel which may lead to serious changes. It might be possible to determine the external
factors that may leave a negative impact. For Example- Best Western Premier hotel can follow
equal customer safety regulations to provide the best quality of services.
Environmental Factor- This factor is related to the environment or cultural changing,
which is directly impacting the “Best Western Premier”. This hotel will adopt a friendly
environment and select sustainable related products. The environmental factor is affecting the
hotel in the context of heavy rains, floods, and storms. Another way, this factor will help to
reduce troubles, and a team of hotels can handle complex situations or conditions.
Porter’s five force theory -
It has been analysed the framework for analysing company competitive environment. Best
western premier can use as competitive rivals, potential new market entrants, suppliers,
customers and become substitutes which influence luxuries accommodation service of hotel.
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LO2
Analyse internal environment and capabilities of organization by using VRIO
analysis
An organization’s internal environment and its capabilities are composed of elements
within Best Western Premier. It including employees, management, and especially corporate
culture and also defining the current behavior of staff members. There are considered the
important element affects the organization as a whole, others affect the only manager. Best
Western Premier Hotel is mainly used the VRIO framework for identifying the internal
environment as well as the capabilities of the hotel.
VRIO Framework
It is based on the internal analysis tool or platform, used by Best Western premier to categorise
their resources on whether they can hold certain traits outlined in the framework. Basically, it
allows for the Best Western Premier hotel to identify all essential resources and gained a more
competitive advantage.
Valuable
The Best western premier hotel can use VRIO as a framework for purpose of analysis,
identifying the financial resources of the hotel, highly valuable as these help in investing in
external opportunities. Investors and other banks provide better funding for hotels so that they
can purchase raw materials in infrastructure development, food preparation.
Through analysis, its local food products are becoming a valuable resource such as food
ingredients like soap, sauce, and other spice items which are highly differentiating as per
demand. The Best Western Premier hotel can be perceived value for these by customers higher
(Darvishmotevali, Altinay, and Köseoglu, 2020). In this way, it becomes a more valued aspect to
gain more competition by the client because of their differentiation in their products. As per
VRIO analysis, Best Western Premier hotel should become considered as valuable resources
such as financial support through banks and other investors. For Example- Angle investor. It
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allows the hotel to sell their best accommodation services. It helps for generating a greater
revenue which providing the best quality of options.
Rare
The resources related financial of Best Western Premier have found to be rare on the
basis of this analysis. It may possess strong financial resources in UK. For Example- In UK, best
western premier have acquired the financial resources such as budget spreadsheet, equipment’s
etc.
Including resources such as online booking, identifying geographical location of Best
premier Hotel in particular region.
At a certain level, it is very difficult to identify the local food items but other competitors easily
provide in the marketplace (Khmiadashvili, 2019). It means that competitors can use similar
resources for making food items by using traditional ingredients.
On the other hand, VRIO analysis of Best Western Premier and employees are highly
trained or skilled which is not the case with staff members in other hotels. Managers can provide
better compensation and an effective work environment to ensure that these employees do not
leave for others.
Imitable
The financial resources of Best Western Premier are costly to imitate as identified by the
hotel. Through this analysis, the company has a prolonged profit over the years. New entrants
and other competitors would require more similar profits for a long term period of time. Initially,
the patient of the hotel is very difficult to imitate as determined by VRIO analysis. There are
similar resources to be developed and getting more patents for them which become very
expensive processes. For Example- a hotel can use cost-effective resources in the preparation of
different food items in order to attract guest of the company.
Organisation
In Best Western Premier, managers are organised to capture the value and importance of
VRIO analysis. Different resources are used strategically to invest in the right places, making use
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of combatting threats and gained more opportunities in the context of growth and development
(Njoroge, Anderson and Mbura, 2019).
Best Western Premier Hotels have been established in a distribution network with other
enterprises. It must ensure that the product or service meets the expectation level of a potential
client.
Resource-based view strategy
This type of strategy is based on the managerial framework used to identify the strategic resource
as a firm that can exploit to achieve sustainable competitive advantage.
 Physical: In Best Western Premier hotel, managers can use different physical resources
such as facilities, infrastructure, materials, and equipment that are utilized by hotels.
 Financial: financial resources are obtained by Best Western Premier hotels to collect
funds from different investors (Xia and et.al., 2020). In order to maintain and control
different investment-related activities. Generally, it involves capital markets, owner
equity, and stock.
 Human: In Best Western Premier hotel, HR has performed different activities to hire or
recruit a skilled or talented candidate, they have an ability to handle entire business
operations. It helps for identifying the suitable need or requirement for guests within the
hotel.
 Intangible: this type of resource is based on the intellectual property and recognition of
the brand so that they can consider patents, copyrights, and the trade market. Intangible
assets exit in the opposition to tangible assets such as a land, vehicle, and inventory
items.
Resource categories Analyses of Best premier Hotel
Physical resources Operating business within 20 different
countries.
Wide range of luxuries properties
Operational resources Online reservation system.
Providing rewards of their potential guest
Financial resources Managing the stable cash flow system
Handle strong balance sheet
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Intangible resources Strong brand name in global market
Maintain loyalty or trust
Human resources 1,50,000 employees works within hotel
Providing efficient training and development
session
Operational resources-
 Best western has a global reservations system and consider as average been booking $1
million. It has an ability to upgrade their website represents its capability to make their
resources unique. It has agreed that this core competence can never be permanents.
 Best western premier can use intangible resources such as reputation, staff skill, and
credibility. In this way, Hotel has maintained its strong position for long term brand in
which been going since 1946. In most of times, it is mainly focused on the marketing
while promote their business in global marketplace. in order to gain advantage and
generate new consumers.
 Best western premier consider core competence in which identifying long term standard
reputation on the basis of quality and service.
SWOT Analysis
Strength
 Associated “Best western Premier” Hotel in over 80 countries, consider as largest hotel
chain in the global world.
 The strength is the quality of product and service which always attracting more potential
consumers.
 Implementing innovation in business process to influence or inspire client. In order to
gain more competitive advantage in global marketplace.
 Hotel is located in good areas across the world.
 “Best Western Premier” has been successfully increased sales and inspire more
consumers.
 “Best Western Premier” has been gained the high profit margin in term of luxuries
accommodation, Spa & lifestyle, All-inclusive resort and etc.
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Weakness
 “Best Western Premier” does not interfere with the management of team members. in this
way, it is very difficult to manage or control the quality of service.
 Best western premier hotel can have a lack of Competition level within international
hotel chains, it is becoming as limited in the context of market share and their growth.
Threat
 Best western premier is changing market situation or condition which
automatically down economy.
 High end hotels charge thousands of US dollars when problem is that rate of hotel is not
within reach its average household in today’s world.
Opportunities
 Best western premier will increase the online presence through digitalization
technique
 High competitive level
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LO 3
Competitive analysis of market sector by applying Porter’s five force model
In regards to Best Western hotels and resorts, it is found that it offers a global network of
hotels in around 100 countries. It has an attractive and unique boutique and extended stay which
attract guests to the hotel and increase experience. Hospitality is one of the main sectors which
contribute to increasing revenue and improving the economy of the country. It is found that
competition is fierce in this sector as there are several hotels that provide the same features of
services. Now one of the main aims of Best Western hotel and its main brand Best Western
Premium is to become the market leader and expanding business. For becoming successful in
business expansion and becoming the market leader, it requires identifying the market conditions
and all factors that can increase competition in the market (Ulubeyli, 2017). With the help of
Porter’s five forces analysis model, it can evaluate the intensity of competition such as:
Power of buyers: There is a moderate intensity of this power. Reason behind this is
because customers in this sector have a variety of options because other rivals of this hotel such
as Hilton and Marriott also are well-known and provide better services. So, due to having a lot of
options, customers in this sector can bargain for making hotels able to be in the competition.
Hotels are also trying hard for being in the competition, so they have to satisfy the needs of
customers. But moderate force lower the profit margin of Best Western hotel so there is a
requirement of reducing the prices of services.
Power of suppliers: Intensity of power of suppliers is low that is beneficial for the
company. There are several suppliers in this industry. Suppliers are more than numbers of
hotels, so they do not have bargaining power. Due to several numbers of suppliers, hotels have
options to get suppliers. Suppliers in this sector want to retain with hotels for making their
effective position and getting chances of supplying so, they have to abide by all rules and
conditions related to products and prices. So, it can be said that for taking advantage and getting
raw materials at affordable prices, there is a requirement for Best Western hotel to improve
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