Premier Inn Business Health Check: Report, Factors, and Improvements

This report presents a business health check for Premier Inn, a major UK hotel chain. It begins with an introduction to the concept of a business health check and its importance. The main body analyzes Premier Inn's objectives, brief history, and the factors impacting its business, including political, economic, social, technological, legal, and environmental factors (PESTLE analysis). It then identifies potential improvements using Ansoff's Growth Matrix, exploring market penetration, market development, product development, and diversification strategies. The report also assesses the effectiveness of the business and its areas, develops plans for improvement, and evaluates current and future skills for management and staff. The analysis includes SWOT analysis and SMART criteria for organizational objectives, providing a comprehensive overview of Premier Inn's operations and strategies.

Business Health Check

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
AC 1.1 Analyse the objective and brief history of the firm.........................................................1
AC 1.2 Explain factor that impact on the businesses...................................................................3
AC 1.3 Potential improvements, a business make for the organization and its operations.........4
M1 SMART’ criteria of organizational objectives......................................................................6
D1 How Ans off matrix contributed to improvements to organization. .....................................6
AC 2.1 Effectiveness of the business and its areas......................................................................6
AC 2.2 Development of the plans for the improvements of the business 486.............................8
M2 Contribution of effectiveness of the business areas towards organizational growth..........10
D2 Contribution of developed plans towards organizational improvements.............................10
AC 3.1 Evaluate the current skills for the management staffs and employees..........................10
AC 3.2 Development of the future skills for the management and staffs..................................12
M3 Analysis of the impact of skills of the management staffs and employees on the business
....................................................................................................................................................13
D3 Evaluation of the various methods which is being used by organization to develop the
skills of the management staffs and employees.........................................................................14
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
A business health check is the important element of the business. It can be defined to as a
current extensive assessment to identify the several questions which can help to complete the
objective of the entity. This method provides few questions to help firm concentrate on the
business activity. Health check include two stages (Eriksson, 2019). Firstly, firm identify the
answer which helps to success the business, in this section the experts and adviser of the firm can
evaluate the answer and expert make the report according to their skills and knowledge.
Secondly, The results are make in a report format and experts are make the report and presenting
the report In a meeting to the owner. Theretofore, owner of the business has the right to either
accept the report, or have it modified.
The present report is based on business health check of premier inn. It is the British UK
chain and larger hotel brand. There headquarter in Dunstable united kingdom.
The report is cover the brief history and objectives of the firm, different factors that
impact on the business, and identify the potential of improvements in the operations and the
business organization. Furthermore, report will explain the business effectiveness. Lastly, report
will develop the plans for the development of skills for management and staff.
MAIN BODY
AC 1.1 Analyse the objective and brief history of the firm
Premier Inn is the successfully hotel brand, with facilitates more than 72000 rooms and
785 hotels in different locations such as airports, towns, cities and public area and suburbs.
Firstly hotel chain started in 1987 as travel inn. Firm firstly open anew restaurant “The
Watermill” in Basildon. In 2004. Whitbread acquired hotel chain which is premier lodge, for
£530 million. In the hotel chain portfolio this included the 141 hotels chain Whitbread changed
the name of every hotel and decide the new name which is “Premier Travel Inn. In 2005, premier
inn launch 500 the new hotel in Hemel Hempstead. Later. In 2006, premier inn bought the 11
new holiday inn hotel with high facilities including swimming pools, gym and other facilities in
England and Wales. Next, hotel decided to launch the innovative bed rooms with quality
services including different designs of bed rooms. In 2009, hotel chain generate the high earnings
in their accounts by 70 %. In 2007, Whitbread acquired the another hotel chain which is Golden
Tulip UK including six hotels performing in the UK under the Tulip Inn and Golden Tulip
brands. These hotels were changed name into premier inn (Silverwood, Chew-Graham, and
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Shiers, 2019). In 2008, primer inn expand their hotel in all over the world they launch the new
airport hotels by providing the hotel services in everywhere. Later, in April 2008, firm
announced a £100 million expansion in London by aiming to achieve this objective in 3 years. In
some years, Firm offered Room technology services such as tablets to attracts the customers. In
2011, premier inn was open 600th hotels in Stratford-upon-Avon. Premier inn sold their some
small restaurants and hotels to good night inn. In 2015, premier inn opened their 700th hotel in
Kingston upon Thomas, London.
Objective of Premier inn
Short term objective
Short term objective are those objectives which helps to complete the long term goal of
the firm. Therefore, Firm makes the short term objectives to meet the future goals and objective
of the firm.
 To promote the premier inn by follow all the government laws to protect the employees
regarding their health and safety lawful rights.
 To provide education and trainings facilities for improve the hotel services.
 To promote good relationship with stake holders of the firm such as employees,
customers and other shareholders.
 To ensure that premier inn reduces the disputes in the internal environment by
collaborating with the team members (Allcott, Gentzkow and Yu, . 2019).
 To set the priorities of work abs set the sales and marketing as a priority for expand the
hotel services in all over the world.
 Premier inn manage day-to-day activities and workflows to enhance the productivity.
Long term objectives
Long term objective are those objective which helps to enhance the performance of the
firm. Therefore, the main intention behind the long term objectivity it is that particular
improvements in the organization's competitive position, technology advancements, profitability,
employee relations and productivity, and brand image etc.
 To enhance the customer base by 30 % at the end of 2021.
 To operate 85000 hotels in UK by 2020.
 To increase the business positive societal impact
 To implement new technology in the hotel service for attract the customers.
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 To enhance the market share by 40 % at the end of 2020.
AC 1.2 Explain factor that impact on the businesses.
There are different factors which directly impact on the business decision-making power.
These factors are affects the business internally or externally. To identify the factors which
influence the business firm can use the pestle, swot and porter five forces model.
Pestle analysis- it is the best tool which helps to identify the macro-environmental factors that
influence the performance of the firm. There are different factors such as political, legal,
environmental, social, technological, economical etc.
Political Factor — This factor is describe that the governments' interference affects the
business, it includes political stability or instability, corruption, foreign trade policy, tax policy,
labour law, environmental law etc. Thus, the corporation tax has decreased in few years it
positively impacts on the performance of the firm. On the other side, the vat tax is increased
from 17.5% to 20% in last year it can negatively impact on the prices and cost of the hotels
because the prices of hotel services is increased (Voglhofer and Rinderle-Ma, 2019).
Economical factor — This factor is includes the economic growth, exchange rates, inflation
rates, interest rates etc. The 2008 financial crisis is effects the UK economy. But the premier inn
generates the profits during the recession times. Therefore, in times of recession; demand for the
service Premier Inn provides could rise. On the other side, low income of customers is reduced
the demand of hotel services it creates negative impact on the firm.
Social factor — This factor is describe the different attributes of the society. As Premier Inn
depends on heavily on tourism. Therefore, in seasonal and bank holidays also Christmas are
essential dates which Premier Inn targets due to people. Hence, people spend more money in
these holidays.
Technological factor — This factor is includes the new and innovative technology that affects
the decision of the firm. Premier inn used high technology in the hotel services they use the
mobile apps, computer and internet browsing it can help to increase the performance of the firm.
On the others side, the high investment in online marketing and advertisement it enhances the
cost of the firm it creates the negative impact on the firm.
Legal factor — This factor includes particular laws such as discrimination laws, employment
laws, consumer protection laws etc. (Council, 2019). Primer in face difficulties when the wages
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are arisen it can affect the operational performance of the firm. Therefore, government forces
premier inn to follow the health and safety act and employment act to satisfy the employees.
Environmental factor — This factor includes the environmental aspects such as weather,
climate etc. Global climate change affects the performance of primer inn because many transport
services were affects due to climate change, like the rail networks is mainly affects the premier
inn because it reduces the profitability of the firm.
SWOT ANALYSIS - It is tool which can help to identify the micro environmental factor. This
factor identifies the internal or external strength, weakness, opportunity and threat of the
organization.
Strength
 Successful largest brand of UK .
 Hotel chain of the year awarded by
British travel.
 High advertise chain of hotel
 Recognize as an innovative hotel brand
Weakness
 Lack of global presence not expand
their business in international market.
 Low cost strategy
Opportunity
 Invest in online marketing
 Enter in international market
Threat
 High competition in hotel services
AC 1.3 Potential improvements, a business make for the organization and its operations
There are every business who have potential improvements of their organization and
operations if they adopt right strategies at the right time with the help of right resources.
Premier Inn Hotel can improve their business, its activities and its operations by adopting
Product-Market strategies from Ansoff's Growth Matrix (Ansoff Matrix, 2010). This matrix have
2 dimensions which are as follows -
Product – It is an item through which an organization operate business and earn profits. It is
classified into 2 parts – Existing Product and New product.
In case of Premier Inn, Existing products are hospitality and accommodation services and
new product is online vehicles booking services. It is classified into 2 parts – Existing market
and New market.
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Market – It is a place where an organization provide its products and services to their end users.
In case of Premier Inn, Existing markets are United Kingdom (UK), United Arab Emirates
(UAE), Ireland, India, Qatar and Germany. New markets are Australia, America and China.
On the basis of above dimensions, Premier Inn have four growth options which are as
follows -
Market Penetration Strategy
It is considered to be the least risky strategy. In this strategy, company is focus on the
selling and distributing of its existing products to the existing market. This lead organization to
become experts in their field.
If Premier Inn adopts Market penetration strategy, then hotel will focus on the hospitality
and accommodation services in the market of Germany, UAE, UK, India, Qatar and Ireland. This
will help organization to reduce its costs and increase the profitability.
Market Development Strategy
In this strategy, Company adopts new markets for the selling and distributing of the
existing products. It helps in enhance of the market share for the company. It leads company to
increase its operations.
In case of Premier Inn, company will adopt this strategy by selling its hospitality and
accommodation services to the markets of Australia, America and China. It leads company to
expand its hotel into new market for the purpose of increase in market share.
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(Illustration 1: Product-Market Strategy
Source: Ansoff Matrix, 2010)

Product Development Strategy
If company wants to improvements by expanding its operations, they can adopt product
development strategy in which they sell new products to the existing market under their brand. It
will help organization to leverage its strengths (Business, 2016).
Premier Inn company will sell its online vehicles booking services into the market of
Germany, UAE, UK, India, Qatar and Ireland which is said to be adoption of Product
Development strategy.
Diversification Strategy
When a company sells its new products into new market for the purpose of expand its
business and enhance its market shares, it is said that company has adopted Diversification
Strategy. It is one of the riskier strategy out of 4 product-market strategies.
Premier Inn Hotel can adopt this strategy by selling and distributing its new online
vehicles booking services into the new market such as Australia, America and China where
company wants to expand and improve its business and operations.
M1 SMART’ criteria of organizational objectives.
The smart objective is To increase the business positive societal impact that helps to
increase the performance of the firm. The main aim behind this objective is that premier inn aims
to give £10 million money for charity of which £7.5 million will go to build a new Premier Inn
Clinical Building at Great Ormond Street Children's Hospital (Yuan and Li, 2019). Theretofore,
this action taken by the firm it can lead the positive impact on the performance of the firm that
means customer are attracts toward the services and it helps to incur market share as well.
D1 How Ans off matrix contributed to improvements to organization.
Ans off matrix helps to expand the future growth of the business. This is the tool that
manager used in the business to identify the opportunities of the firm. Therefore, premier inn
used this tool to identify the future growth of the business (Allcott, Gentzkow and Yu, 2019).
AC 2.1 Effectiveness of the business and its areas
BUSINESS EFFECTIVENESS
Business effectiveness refers to the term which indicates the whereabouts of the financial
performance of the business. It is becoming popular term in today's business world because it
tells the stakeholders that how well a company is running and carrying out its business activities
in proper manner. It is not linked to the costs incurred by the organization. It is just related to the
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performance of the organization. It also tells about the extent to which company is able to
achieve its organizational goals and solve the issues/problems/conflicts (Greenwood, 2016).
EFFECTIVENESS OF AREAS OF BUSINESS
Products and Services
Products and services are considered to be effectiveness when they help organization to
achieve its organizational goals by providing high quality goods and services to their customers.
Also, the quality of products and services should be healthy, safe and good for the customers.
Premier Inn's products and services are effectiveness for the organization because its
quality standards are high for the customers and customers are happy and satisfy with their
service quality.
Marketing
Marketing is considered to be effectiveness when it helps organization to achieve its
marketing objectives by attracting more customers and increase the sales volume. It will help
organization to gain competitive advantages.
Marketing of Premier Inn is effectiveness for the organization as it helps organization to
create brand image in the market which lead company to achieve its organizational as well as
marketing objectives.
Sales
Effectiveness of Sales are measured by the sales target and sale volume achieve by the
organization.
In case of Premier Inn, Company's sales are effectiveness as due to effective marketing
and products & services provided by them helps to achieve the organizational goals which lead
automatically completion of sales targets.
Financing
Financing are considered to be effectiveness only when organization allocate its
resources and funds to all the departments and employees equally and accurate (Trevino and
Nelson, 2016).
Accurate allocation of financial resources and funding to the departments of Premier Inn
hotel make financing of the company effectiveness.
Staffing
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Staffing are become effectiveness only when company motivate their staffs to do
something out of box which can improve the organization. It also includes the satisfaction level
of staffs of the company too.
Staffing of the Premier Inn company are qualified, skilled and capable, which lead
organization to achieve their organizational goals. Thus, staffing are considered to be
effectiveness.
Business Brand Image
Effectiveness of brand image are measure by the quality of the products and perception of
the customers towards company and its products & services.
Premier Inn organization's brand image are effectiveness due to its high quality services
and high satisfied customers.
Record Keeping
Record keeping involves accounting and auditing which is considered to be effectiveness
only when these two are transparent and accurate.
Premier Inn follows particular standards, policies and procedures for the accounting and
auditing of the financial statements which make it transparent, clear and accurate to the
stakeholders. This lead record keeping of the hotel to become effectiveness.
AC 2.2 Development of the plans for the improvements of the business 486
BUSINESS PLANNING
Business planning refers to the process of preparing the business plan which is done for
the purpose of the improvements of the business areas. Business plan refers to the document in
which company writes about the nature, business activities, business strategies, financial
statements and budgets for the next years etc. It leads organization to get to know about its
objectives (McKeever, 2016).
DEVELOPMENT OF BUSINESS PLAN FOR PREMIER INN HOTEL
Business Plan For Premier Inn Hotel
Company Back
Ground
Premier Inn Hotel is the largest brand with 785 hotels. It operates its
business in various countries such as United Kingdom, India, Ireland,
Germany, United Arab Emirates and Qatar. It was founded by
Whitbread in year 1987. It provides hospitality and accommodation
services to their customers with high quality.
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Marketing Premier Inn Hotel will use the combination of marketing such as
Email marketing, E-Advertising, Mobile marketing, Social media
marketing along with its traditional marketing. These will help
organization to easily attract the customers by adopting marketing
strategies according to the target customers. Company also can make
blog in which company can invite chefs for innovative foods which
can increase the demand for the products provided by the company.
Sales & Productivity For the improvements of selling and increasing the productivity,
Company can focus on the sales strategies. Company will provide a
proper training to their staffs regarding deals with customers. It will
lead them to leave a good impression on their customers and
company's goodwill will increase, this will lead company to achieve
its target. It will increase the productivity of the company.
Financial
Management System
For the improvements of this area of business, Premier Inn Hotel will
use various kinds of software on which finances are managed by the
computers. Also, company will hire an internal auditing team who
will do auditing, managing and controlling the day to day
expenditures done by company.
Roles and
Responsibilities of
Staffs and
Management team
For the improvements of roles and responsibilities, company will
make a clear understanding of the hierarchical structure of
organization. Company will focus on the activities which can create a
friendly relationship between employees and management staffs.
Also, company will make clear understanding of the roles and
responsibilities to the management teams and staffs so that they can
understand whom to report, what to report, how to report, when to
report etc. (Brink, 2018).
Monitoring the
Performance
For the improvements of monitor of the performance of management
teams and staffs, company can use the software which are available in
the market. Company will use various performance management
strategies in which some common standards are followed. Also,
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company will not be bias to the employees regarding their
performance. Company will analysis the performance of the
employees and management team and provide feedback in order to
give a chance to improve their performance.
M2 Contribution of effectiveness of the business areas towards organizational growth
For the improvement of business and its operations, there should be focus on the
effectiveness of the business areas. Improvement in these areas will improve the effectiveness of
the organization. Improvement in quality of products and services provided by Premier Inn will
help in improvement of sales, financing, marketing and brand image which lead organization to
attract more customers, encourage for the better quality of goods and services, motivate the staffs
and better working environment. These all lead to organizational effectiveness which will
improve the profitability of the organization and creation of the opportunities for the
organizational growth (Choudhury and Sharma, 2019).
D2 Contribution of developed plans towards organizational improvements
There are various business aspects which are changing with the time passing which affect
the objectives, mission, vision, goals, objectives, activities, strategies, tactics of the Premier Inn
Company. Thus, for the up-gradation and improvement of the business, company should plan the
improvement areas of the business so that they can adopt the corrective strategies and methods.
This will lead organization to focus on that particlar areas and don't waste the resources, money
and efforts. This will lead to wastage of costs also (Tichman, 2019).
AC 3.1 Evaluate the current skills for the management staffs and employees
SKILLS AND THEIR CLASSIFICATION
There are various skills which are required by the management teams and staffs of the
organization. These skills are classified into three major points which are as follows -
Technical Skills
Technical skills are those skills which is required for the purpose of carrying out a
particular activity. This is generally required by the specialized person who belongs to the
particular field. Examples of Technical skills are Data analytical skills, Software proficiency,
Operating system skills, Programming language skills and project management skills etc.
Operational Skills
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