Business Health Check Report: Premier Inn's Performance Analysis

This report provides a comprehensive business health check of Premier Inn, a leading hotel chain in the UK. It begins with an overview of the company's history, objectives, and market position, followed by an analysis of factors impacting the organization using PESTLE analysis. The report then identifies potential improvements to the business and its operations, exploring strategies based on Ansoff's Growth Matrix, including market penetration, product development, market development, and diversification. The analysis extends to evaluating the effectiveness of business areas and developing plans for improvement, alongside an assessment of required skills for management and staff, and a development plan for skill enhancement. The report concludes with an evaluation of the contribution of these elements towards organizational growth, providing a detailed examination of Premier Inn's performance and strategic direction.

Business Health Check

Table of Contents
INTRODUCTION...........................................................................................................................1
Overview of the company............................................................................................................1
MAIN BODY...................................................................................................................................1
AC1.1History and objectives of Premier Inn ..............................................................................1
AC1.2 Factors that affect organization .......................................................................................2
AC1.3 Potential improvements to the business organisation and its operations.........................4
M1 Analysis of objectives...........................................................................................................6
D1 Contribution of Elements of Ansoff's growth matrix towards the improvements of the
organisation..................................................................................................................................6
AC2.1 Effectiveness of the business and their areas...................................................................6
AC2.2 Development of the plans to improve the business..........................................................8
M2 Evaluation of the contribution of the effectiveness of the business areas towards
organisational growth.................................................................................................................10
D2 Evaluation of the contribution of developed plans towards the improvement of the
business......................................................................................................................................10
AC3.1Skills that is required for management and staff ............................................................10
AC3.2Development plan for improvement of skills .................................................................11
M3 Effect of skills that is built in staff and management .........................................................13
D3 Methods used to develop skills of management and staff...................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
The term “Business Health Check” is a term which is becoming popular due to tough
competition between various businesses and various industries. It refers to the evaluation of the
performance of the business and its various aspects in order to get to know about its effectiveness
and efficiency.
Present report will highlight the history and objectives of the chosen company in
hospitality industry. It will analysis the impact of various factors on the organisation. It will
determine the potential of the organisation for the improvements of business and operations. It
will review the business and its areas' effectiveness. This report will also develop the plans for
the improvements of the business. It will demonstrate the current skills of the management team
and staffs of the organisation. At last report will devise the plans for the development of the
skills.
Overview of the company
Premier Inn is a hotel chain which is one of the largest and popular brand in the United
Kingdom in Hospitality sector. Its headquarters is in Dunstable, United Kingdom. It was founded
by Whitbread company in year 1987. Company is serving its hospitality services to United
Kingdom, United Arab Emirates, Ireland, India, Germany and Qatar. The chief executive officer
(CEO) of the company is Alison Brittain (Deery and Jago, 2015).
MAIN BODY
AC1.1History and objectives of Premier Inn
Premier Inn is a UK's largest hotel brand that has more than 72,000 rooms and 785 hotels
It was founded in 1987 by Whitbread and its headquarter is located at Dunstable, United
Kingdom. It is operating in various location that includes city centre, suburbs and airports.
Competitors are travelogue and Ibis hotel (Gajjar and Okumus, 2018). In 2004 it merged with
Travel Inn and named as Premier travel Inn then earlier it was named as Premier Inn. This chain
was started in 1987 as Travel Inn. Its first site was open in “The Watermill” restaurant in
Basildon. Then again in 2004 it has acquired another chain that named as Premier Lodge in £536
million. This hotel comprises 141 branches in the UK. Then the owner has renamed all its hotel
as Premier Travel Inn. Then in 2005 it opened 500th hotel in Hemel Hempstead.
In 2006 Premier Inn purchased 11 Holiday Inn hotels in England and Wales. It has leisure
facilities that includes swimming pool and gym except its hotel that is situated at Norman Cross.
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It has started to redesign its interior so that it will be differentiated from other travel agency in
the UK. After renovation of the hotels they are named as Travel Inns.
In 2007 its name is shortened to Premier Inn. Further, in 2009 it has earned 70% revenue as
compared to Whit bread's earnings. It has purchased Golden Tulip UK hotel including six other
hotels. Then later on It has expanded its business up to £100 million in three years. This chain
was founded from the north of Scotland to Helston (Rahimi, Ersoy and Okumus, 2017).It has
operating its services into different countries such as Ireland, United Arab Emirates, Qatar,
Germany etc. In 2011 it has opened 600th hotel in Stratford-upon-Avon. They have sold their
small hotels to Good Night Inns. Then in 2005 it has opened 700th Premier Inn Hotel in
Kingston-upon-Thames, London. By 2020 it planned to operate its 85000 bedrooms in the
United Kingdom.
They believe that customers are the king of the market and they emphasize on fulfilling
their needs and wants. It believes in providing better services to its customer so that it will retain
with it for longer period. It is delivering the best product to its customers so that more customers
will get attracted towards it. They always try to provide innovate something new that will help in
enhancing future growth of it in the marketplace.
Its short term objective is to focus on the strength of the company that will help in future
growth. Its focus is to expend its market so that it has the largest share.
Its long term objective is to build the capability and efficiency that will help in future for
developing new technology and accountability that will facilitate easy working in the company.
They have to build strategy that will fulfill customer needs as well as help in earning more profit
in the future.
AC1.2 Factors that affect organization
Pestle analysis consist of different elements that will help in identifying external factors
that affect the working of the company. These consist of Political, economical, social, legal and
environmental factors.
Political factors:- These factors include political instability, tax and laws that is governed in the
country, foreign trade policy and corruption etc. Different country is having their own rules and
regulations that have to be followed by the company. Changes in the rate of taxes will influence
the economy of the country. This will influence the corporate tax and due to which profit of the
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company will affect. As in some countries different type of taxes is applied so that will influence
the internal working.
Economic Factors:- This will include changes in exchange rate, inflation rate, interest rate and
unemployment rates in the country. This will affect the export and import of goods and services
from other countries (Köseoglu,Barca and Dogan, 2018). Due to financial crisis the prices of the
product and services will go high and consumers are not able to purchase that things. Premier Inn
is providing luxury services to its customers. This will affect the economy of the country as well.
It is important to do foreign trade as it will enhance future growth in the company.
Social Factors:- These are related to the culture, norms, beliefs and customs that is being
followed in the country. Different country is having different norms that will influence the work
culture. As there are different employees who came from different culture so there will be
equality in following all the culture in the company. In some countries there is working
according to the culture that will help in emphasizing various forms of culture in the company. In
Premier Inn there are many people working that all came from different culture so they have to
maintain balance between them so that there is no conflict occurred in the organization.
Technological Factors:- Changes in the technology will increase operation cost of the company.
Different country is adopting different technology that will help in betterment of quality of
product and services (Köseoglu, Sehitoglu and Craft, 2015). Premier Inn is working in the
hospitality sector that need improvement on a regular basis as it is important for satisfying needs
and wants of the customers. Through social media also company is having an impact on its
operation cost that will influence technological aspect. Adopting the latest technology will help
in improving operations of the company that will lead to growth in the future.
Strength:- The biggest strength of Premier Inn is that it is the largest hotel chain in the British
travel agency. It has more than 50000 rooms and around 700 hotels in the country that provided
services to different customers in different area. The brand of the hotel is premier. As rich people
will come into the hotel for taking luxury services. It is also providing online services to the
customers that will provide various offers to them so they will get attracted towards that brand.
Premier Inn got various awards for giving best services to its customers that will help in
enhancing growth in the future (Kalargyrou and Costen, 2017). It has many branches in the
United Kingdom as compared to its competitors in the market.
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AC1.3 Potential improvements to the business organisation and its operations
For the improvements of the business and operations, Premier Inn Hotel are adopting four
growth strategies which are involved in Ansoff's Growth Matrix. These strategies are known as
Product-Market strategy (Manoharan and Singal, 2017).
Ansoff's Growth matrix is based on 4 dimensions which are as follows -
New Products/Services – New products and services refers to the items which will be sold by the
company in the future for the purpose of expanding its operations.
In the case of Premier Inn Hotel, Company is planning to selling travelling services to
their customers.
Existing Products/Services – Existing products and services refers to the items which is being
sold by the company at present for the purpose of maintain the profits and business for the long
term period.
In the case of Premier Inn Hotel, Company is selling hospitality and accommodation
services to their customers.
New Markets – New markets refers to the place where company is planning to expand its
business by entering into new place.
In the case of Premier Inn Hotel, Company is planning to expand their business by
entering into the market of United State of America (USA).
Existing Markets – It refers to the present place where company is currently selling its products
and services to the customers (Using The Ansoff Matrix to Develop Marketing Strategy, 2016).
In the case of Premier Inn Hotel, Company is providing their services in the market of
United Kingdom, United Arab Emirates, Ireland, India, Germany and Qatar.
On the basis of these above four dimensions, Premier Inn Hotel has 4 possible product-
market strategies which are as follows -
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Market Penetration Strategy
If company is selling existing services to the existing market, it is known as Market
Penetration Strategy. It is the least risky strategy adopted by the company. In this strategy,
company is focused on its existing services and products which make them expert in their field.
Product Development Strategy
If company adopts the growth strategy in which the focus is on new products introducing
in existing markets, it is known as Product development strategy. Here Premier Inn is planning to
introduced its new travelling services to their customers within the existing markets which make
company more competitive for others hospitality industry's firms.
Market Development Strategy
If company adopts the growth strategy in which the focus is on existing products
introducing in new markets, it is known as Product development strategy. In case of Premier Inn,
Company is all set to expand its business in the market of America by introducing their existing
services. This will lead company to face some new challenges regarding new geographical
structures of the market.
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(Illustration 1: Product-Market Strategies
Source: Using The Ansoff Matrix to Develop Marketing Strategy, 2016)

Diversification Strategy
If company is adopting diversification strategy for the expansion and improvements of
their business and operations in which company is all set to introduce new products and services
by entering into new market (Denizci Guillet and Mohammed, 2015). In case of Premier Inn,
Company will introduce its travelling services to the market of America. This strategy is
considered to be the most risky strategy.
M1 Analysis of objectives
As the Premier Inn is the largest hotel industry in the United Kingdom. Its objective is to
fulfill needs and wants of the customer. It has followed SMART objectives in the company. It is
preparing a specific objective for achieving future growth in the business. Before the
implementing any idea into the business specific research is being done by the researcher. Then
research is measured through different tools that is being measured for achieving goal (Pizam
and Tasci, 2019). Goals that is set can be achieved at any cost. The research is realistic in nature
and it will be completed on time. Therefore, Premier Inn is following SMART objective to
achieve its objective for longer period.
D1 Contribution of Elements of Ansoff's growth matrix towards the improvements of the
organisation
Diversification
Diversification will assist the company to grow which will increase the customer base
and market share. It will also help organisation to gain more profits.
Market Development
Market development will assist the company to increase their market share. It will also
help in increasing the company's profitability too.
Product Development
Product Development assist the organisation to enhance customer base as it provide a
different products to the existing customers.
Market Penetration
This will assist the organisation to maintain the market share with secure the brand image
of the company (Xu and Gursoy, 2015).
AC2.1 Effectiveness of the business and their areas
BUSINESS EFFECTIVENESS
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Business effectiveness is a term which is related to the indicators of the financial
performance of the business. In other words, Business effectiveness evaluate that how can a
company carry its business activities in corrective manner. It is not related to the cost. It is
mainly measured by the degree of extent to which company is able to achieve its organizational
goals and solve its organizational issues in proper ways (Ryan, 2015).
EFFECTIVENESS OF THE AREAS OF THE BUSINESS
There are various business areas which indicates that whether business of Hilton hotels
and resorts is effectiveness or not. These areas are as follows -
Products and Services
Products and services are considered to effectiveness only when they fulfil the needs and
wants of the customers and their quality is good and safe for the customers' health.
Services provided by the Premier Inn is effectiveness for the company because of high
quality and safe for the customers. This lead customers to be satisfied with the hotel.
Marketing
Marketing is considered to be effectiveness only when it helps organisation to achieve
their marketing & organisational objectives and attract more & more customers.
Due to providing discounting and promo codes to their customers, company are doing
their marketing which make them a good company. Thus, marketing of the Premier Inn is
effectiveness.
Business Brand Image
Business Brand image is considered to be effectiveness only when they provide good
quality services and products to their customers and enhance their satisfaction (Liba, Santos and
Segui, 2017).
Due to providing good quality services and good experiences to their customers, Premier
Inn is able to create brand image and brand value in their customers' mind which make their
business brand image effectiveness.
Record Keeping
Record keeping is considered to be effectiveness only when company is able to clearly
understand their accounting policies, standards & procedures and make accounting information
& statements transparent & accurate.
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Company is following particular accounting standards, policies and procedures. Also,
company do internal and external auditing of their accounting statements which make accounting
information more accurate and transparent. Like this, hotel's record keeping is effectiveness.
Staffing
Staffing are considered to be effectiveness only when they work in good working
environment and motivated to do something new which make organisation unique from other
companies.
Company's staffs are qualified, well trained and efficient who are able to make their
clients happy and satisfied by their own unique work and ideas which make Premier Inn's
staffing effectiveness.
Sales
Sales is considered to be effectiveness only when sales targets of the company are
completed on time and company get return on time.
Sales of Organization are effectiveness because customers uses services which is good at
quality. This lead company to easily complete their sales target.
Finance
Financing of the company are considered to be effectiveness only when organization allot
all the departments and employees accurate & equal funds and resources. Also, company is
capable to incurred their cost from their profits without going into losses (Xu and Gursoy, 2015).
Due to proper management of the activities and completion of the objectives on time,
Company is able to allocate their funds and resources to their all departments and teams which
make their financing system more effectiveness.
AC2.2 Development of the plans to improve the business
BUSINESS PLANNING
Business planning refers to the preparing a document (which is generally known as
Business plan) which involves the business activities, its products and services, its mission,
vision, goals, objectives & core values, its business model, its business strategies, its financing
and its procedures to carrying out the business. It is prepared for the purpose of improving the
operations and business (Chan and Hsu, 2016).
DEVELOPMENT OF BUSINESS PLAN FOR THE PREMIER INN HOTEL
Premier Inn Hotel is preparing business plan which is as follows -
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Marketing
For the improvement of business and operations, Premier Inn needs to improve their
marketing and its strategies. For that company can use various kinds of marketing along with
traditional marketing. Company can use social media marketing, email marketing, mobile
marketing, messaging marketing and e-advertising marketing. Also, company can improve in
their marketing strategies by using various marketing technologies and software which is user-
friendly.
Sales and Productivity
For the improvement of business, Hotel should focus on their sales and productivity. For
the improvement of sales, company should analysis their customers' needs and wants and
accordingly offer the services at reasonable price so that customers can attract towards it. For the
improvement of the business productivity, company should make their business environment
friendly and do activities which make employees motivated, happy and satisfied.
Financial Management System
For the improvement of financial management system, company can use cloud based
software to record the financial data and analysis the business budget so that they can maintain
and manage their budget. Company also can focus on their inventory management so that
payment can be given or receive on time. Company can hire an employee who can focus on day
to day expenses so that finance manager can control on the expenses of the company
(Kandampully, Zhang and Jaakkola, 2018).
Roles and Responsibilities
For the improvement of roles and responsibilities carried out by the employees and
management team, company can make clear understanding of the roles and responsibilities to the
staffs. Also, company can make clear understanding of the hierarchical structure of the
organisation so that staffs can get to know whom to report, whom to inform, whom to asks and
whom to order.
Monitoring of the Performance
For the improvement of performance monitoring, company can use various kinds of
performance measurement software. Also, company must have to be clear understanding of the
criteria being used for the monitoring of the performance.
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M2 Evaluation of the contribution of the effectiveness of the business areas towards
organisational growth
Organisational areas' effectiveness affects the organisational growth which will make
enhance the profitability and productivity of the Premier Inn hotel and increase the demand of
services (García-Lillo, Úbeda-García and Marco-Lajara, 2016). It also helps organisation to
conduct their business activities within the conducted budget which lead to proper financing of
the sources and funds. It will lead company to maintain and enhance their profitability and
achieve the organisational goals on time. It cause to growth of the organisation.
D2 Evaluation of the contribution of developed plans towards the improvement of the business
Development of the plans regarding improvements in the areas of business such as sales,
productivity, roles & responsibilities, marketing, financing and performance etc. will help
business to get to know about their steps, procedures and activities clearly in order to achieve the
objectives which lead to lack of wastages of time, resources, energy and productivity which lead
company to become efficiency in their work. Planned activities, strategies and process for the
improvement of business area also helps in planning for the future budgeting which is main
aspect of the organisation and this is directly related to the financial conditions of the company
(Litvin, Goldsmith and Pan, 2018).
AC3.1Skills that is required for management and staff
Technical skills are those that is required to perform a particular task effectively and
efficiently. These skills require for doing technical work in the company. For example:-
programming, project management, designer, marketing assistant these will require so that work
can be completed for longer period of time. There are specific things that is required to perform a
particular task in the Premier Inn. Different company is required different skills so that work can
be completed on time. Every IT company needs this type of skill to perform various task in the
company.
Operational skills required to operate the software in the company. This skill is required
for the purpose of performing various task in the company regarding the work that is needed to
utilize various methods to operate different system in the company premises (Schuckert, Liu, and
Law, 2015). This helps in Technical skills are those that is required to perform a particular task
effectively and efficiently. These skills require for doing technical work in the company. For
example:- programming, project management, designer, marketing assistant these will require so
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