BMA6104 Organisational Strategy: Premier Inn Presentation and Analysis

This presentation provides a strategic analysis of Premier Inn, a leading UK hotel chain. It begins with an introduction to organizational strategy, followed by an assessment of Premier Inn's strategic positioning, considering both external factors like political, economic, social, technological, environmental, and legal influences, as well as internal strengths, weaknesses, opportunities, and threats. The analysis includes the application of Porter's Five Forces and the VRIO model. The presentation then explores future strategic options using the Ansoff Matrix, including market penetration, product development, market development, and diversification. Finally, it suggests possible future strategic options by linking Premier Inn with other businesses like LIDL and Nespresso, concluding with a summary of the key findings. References are provided to support the analysis.

Organisational Strategy

Table of Content
• INTRODUCTION
• Strategic positioning
• Future strategic options
• Possible future strategic options related with other
business
• CONCLUSION
• REEFRENCES

INTRODUCTION
The number of activities a corporation plans to do for achieving
long-term objectives is known as organizational strategy. These
activities together form a strategic plan for a organization. In
this report company selected is premier inn which is British
hotel chain and the largest brand in UK with around 800 hotels
and 72000 rooms.

Strategic positioning
Strategic positioning involves the way a company as a whole
varies from its rivals and offers value for different consumer
segments in a meaningful way.
External factors:
 Political: The rise of VAT from 17.5% to 20% since 2011
has made the premier inn demand for price growth
unavoidable.
 Economical: Due to economic uncertainties the Premier
Inn's expansion for its hotel chains is a really stimulating
factor. In recent time, due to COVID-19 the business of
Premier inn have adversely impacted as
government have totally banned the visit of
international customer in order to safe the
spread of harmful virus.

Conti….
 Social: Since Premier Inn depends heavily on tourists (internal
and external), seasonal holidays like Easter, government
holidays and Christmas are essential times for Premier Inn
because peoples are more inclined of spending good holiday
 Technological: With through usage of the device, the
accessibility and easy use of Premier Inn has been enhanced by
internet surfing and the development of mobile apps
 Environmental: The impact on Premier Inn of worldwide
climatic change can be important
 Legal: Moreover, Premier Inn is obliged to abide by the
regulations on health and security and to provide equality in
the workplace in jobs.

Porter 5 forces
Threat of New Entrants:
As the industry is increasing increasingly and the administration
is also promoting and supporting the industry on a priority basis
such that the danger faced by future new competitors is very
high.
Threat of Substitute:
 To the goods developed in the industry in which
Premier hotel, there are very few alternatives
available. Such as in present time small
companies produces same product or provide
services at lower cost due to which business of
large company gest impacted.

Conti…..
Internal factors
 Strengths: The Premier Inn is among the most successful
hotels in the UK with the operating margin above 80% with
a net margin of 7.4% rising to £ 468 million in 2017.
 Weaknesses: Premier Inn is based in a very small lot of
countries relative to other business giants.
 Opportunities: After a good foray into Germany, Premier
Inn eventually arrives in the Republic of Ireland, where
Costa Coffee's brand is already being popular.
 Threats: Premier Inn's biggest rivals are Holiday Hostel,
Easyhotel and Marriott as well as other medium size hotel.

VRIO Model
The VRIO platform is a tool for strategic research intended to
help companies identify and secure the tools and skills that offer
them a significant advantage in the long term. For Premier Inn
the respective model is discussed underneath:

Future strategic options
Ansoff Matrix:
 Market Penetration: In current competitive environment,
Premier Inn has adopted market penetration strategy by
decreasing prices and acquiring new business related to hotel
industry
 Product Development: Premier Inn is also increasing
expenditure in research and development for market analysis
which can help company in brining innovation in business
 Market Development: In this context company Premier Inn
is promoting new start-ups by investing into them which
shows that company is moving towards market development
 Diversification: Thus, Premier Inn can take the decision of
diversification as this hotel chain after Brexit analysed the
effects and focused on expansion of business in new markets

Possible future strategic options
related with other business
Premier INN with LIDL
As LIDL is global discount super market of Germany and operate in different
parts of Europe and United states.
Premier INN with Nespresso
Nespresso, is an operating unit of the Nestlé Group, based in Lausanne,
Switzerland which is famous for premium coffee quality. There are varieties
of guest coming to Premier Inn demanding different food items and drinks as
per their spending capacity and preferences.
Premier INN with Innocent Drinks
Innocent Drinks is use to provide salads and fruit healthy juices to different
supermarkets, coffee shops and other outlets. Meanwhile, customer
nowadays wants healthy drinks and special fibre and protein rich diet and
salad at the place of stay.

CONCLUSION
In the end of presentation it is concluded that it is
typically decided by concentrating on emerging or
current goods and whether demand is fresh or
established. However, because of the complement of
hotels, restaurants and cafes, Premier Inn has a
business model that is hard to imitate.

REEFRENCES
Kettner, P. M., Moroney, R. M. and Martin, L. L., 2013. Designing and
managing programs: An effectiveness-based approach: An
effectiveness-based approach. Sage.
Kuusi, T., 2015. Alternatives for measuring structural budgetary
position.
Moroney, R. M. 2013. Designing and managing programs: An
effectiveness-based approach: An effectiveness-based approach.
Tate, C., 2010. Marketing your small business for dummies. John Wiley
& Sons.