Whitbread Plc Business Health Check: Analysis, Strategies, and Plans

This report provides a comprehensive business health check for Whitbread Plc, a multinational hospitality company operating Premier Inn and Costa Coffee brands. The analysis begins with an overview of Whitbread's objectives, followed by an examination of factors impacting the business, including PESTLE, SWOT, and Porter's Five Forces analyses. The report then assesses the effectiveness of the business, evaluating products/services, marketing, sales, and finances. It also explores potential improvements in business organization and operations, including market development, diversification, market penetration, and product development strategies. The report concludes with an evaluation of the current skills of management and staff, and proposes plans for skill development within the organization.

Business Health Check

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1: Analysis of objectives of Whitbread Plc.........................................................................3
1.2: Factors impact on the business........................................................................................4
1.3 Potential improvement to the business organisation and operations................................6
TASK 2............................................................................................................................................7
2.1: Reviewing the effectiveness of the business...................................................................7
2.2: Developing plans to improve business............................................................................8
TASK 3............................................................................................................................................9
3.1: Evaluating the current skills of management and staff...................................................9
3.2: Devising and justifying plans for the development of skills for management and staff11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business Health Check is an evaluation of influencing factors which affects the existence
of an organisation in competitive market. In order to determine strengths and weaknesses of an
organisation business health check is required which directs management to make positive
changes for the business and implement further actions with the available resources so as to
achieve desired goals and objectives. The present assignment is based on Whitbread Plc which
deals in providing hospitality services such as providing rooms, restaurant and other leisure
facilities through out the world. The project covers the analysis of business environment through
conducting PESTLE, SWOT and Porter five force model. In addition with this, analysis of areas
are also discussed where the improvement are required by selected company. Apart from this,
skills of the management and the staff of company would also be analysed. These all aspects
concentrate on the business health check for Whitbread Plc (Casadesus‐Masanell and Zhu,
2013).
TASK 1
1.1: Analysis of objectives of Whitbread Plc
Whitbread Plc:
It is multinational hotel, coffee shop and restaurant company whose headquartered is
located in Houghton Regis, Bedfordshire, UK. It was established in the year 1974 by Samuel
Whitbread in partnership with Godfrey and Thomas Shewell. Whitbread Plc is divided into two
division i.e. Premier Inn and Costa Coffee which are located across worldwide. Premier Inn is
one of the largest hotel brand in UK attaining more than 750 hotels and 65,000 rooms. Its Costa
Coffee chain has attained 3,401 shops which are located in more than 31 countries and becomes
world's second largest international coffee shop chain. Whitbread is listed on the London Stock
Exchange and is a constituent of the FTSE 100 Index (Chang, Kuo and Ramachandran, 2016).
Short term objective: Fulfilling the needs of targeted customers through offering quality
experience. For this, the company mainly focuses on creating healthy work atmosphere which
increases loyalty, commitment among staff members.
Long term objective: To become one of the leading 4star Hotel in London through
offering excellent products and services at an affordable prices to every customers, every time.

SMART objectives of Whitbread Plc
Specific: The management of Whitbread Plc required to motivate staff to make their
goals more specific. It includes career oriented which brings motivation to treat every guest in an
impressed way so as to achieve their loyalty and get promotion in Hotel as well.
Measurable: Such objective should be measurable that means the progress of work in
order to achieve target are easily tracked. For example, the performance level of staff members
are easily measured through recording performance on daily basis.
Achievable: Providing excellent room services and other leisure facilities worth the
prices in order to maximise the satisfaction level and should believe it is achievable.
Realistic: Maximising the satisfaction level of guests through making staff members
more capable in deal with them in an effective and efficient manner. It can be possible through
providing training and learning programs at workplace.
Time bound: In this, creating deadline is must. Training programs shall be conducted on
quarterly basis so as to enhance the skills and knowledge of staff members.
1.2: Factors impact on the business
There are several factors which affects and influences the business operations of
Whitbread Plc. It can be identified and analysed through following ways:
PESTLE Analysis:
Such analysis help in assessing the influencing factors arises of business environment
which are complex and contingent in nature. It is further discussed under the below:
Political: Whitbread Plc is a global company operated in multiple number of countries.
Thus, their business operations affected a lot due to fluctuations in political system. For example,
increase in tax rate on Hospitality products such as furniture, textiles etc. due to new taxation
policy implemented by government adversely affect the revenue of company thus require to set
prices according to the country's specific political situations.
Economical: The economy of country affected the purchasing power of people thus the
Whitbread Plc required to change its pricing policy according to the economy and income of
targeted customers (Ford and et. al., 2011).
Social: Different customers has different specific requirements related with hospitality
services which is required to be fulfilled by company to provide specific facilities according to

the needs and preferences of targeted customers. For example, providing special room services
and extra facilities to disable persons increases good image in hospitality sector.
Technological: Investment in adoption of advanced and modern technologies help
Whitbread Plc to identify the targeted customers and their main preferences. For example, Using
MIS system help in storing information about targeted customers which help them in reaching
them to identify their needs and preferences.
Legal: Complying with legal laws and legislation of the country in which the Whitbread
Plc has operated its business strong their existence in market. Non-compliance imposes penalty
on company. For example, Whitbread Plc is operated in UK thus required to comply with legal
laws and legislation related with hospitality services implemented by UK government
Environmental: The company can achieve good image in market when it contribute
maximum to the protection of environment. The main impact on environment due to Whitbread
Plc are CO2 emissions, CFC emissions, noise, smoke, health of employees, transportation etc.
Thus required to consider all such affected aspect which further help in building good image in
hospitality market.
Porter five forces model:
It is done with an objective of evaluating the business, its strategies and the environment.
It is further discussed under the below:
Bargaining power of customers: Pricing factors influences the buying behaviour of
targeted customers thus it is important for the management of Whitbread Plc to adopt
competitive pricing policy so that all income group can easily afford to buy their products
(Hammer, 2015).
Threat of new entrants: Entrance of new companies into hospitality market are more
which brings lots of risk and challenges to the existing companies. Therefore, Whitbread Plc
need to introduce new products and services which attracts lots of new customers as well. It is
essential for Whitbread Plc to invest money on conducting research and development as well.
This will help in maintaining the strong presence in global market.
Threats of substituted products: Whitbread Plc has their own customer strength which
are loyal towards them due to offering high quality and excellent services to their loyal guests
thus threat of substituted product are minimum.

Bargaining power of suppliers: Suppliers have a high bargaining power due to having
limited resources. There are limited suppliers who facilitate Whitbread Plc in giving excellent
services to their guests. Thus, the suppliers may decrease the margin of their profits. Therefore, it
may unlikely forces company to increase the prices of their hospitality services.
Competitive rivalry within an industry: Due to presence of large number of competitors
such as Hilton Hotel, Mariott Hotel etc. which brings lots of threats and competitions towards
Whitbread Plc (Hiebeler, Kelly and Ketteman, 2012).
SWOT Analysis:
Strengths Weaknesses
 Attained huge customer base.
 Increment in market share day by day.
 Attained good image.
 Good relation with existing suppliers.
 Expansion of business to other
countries brings losses to them.
 Lack of brand awareness.
 Compromising to political condition.
Opportunities Threats
 Conducting the research and
development programs on regular basis.
 Increasing the rate of occupancy in
hotels.
 Expansion of menu of hospitality with
a good care.
 There is some uncertainty in the
process of expanding into new market.
 High competition
1.3 Potential improvement to the business organisation and operations
Maintainable development and advancement significantly in view of enhancing the
slacking regions and areas which remain kept away from shape administration point of view.
Change regions and areas are accessible in each association. This mostly connected with
examining the current showcasing techniques and plans. There are kind of administration
methodologies and market designs are considered in Ans of development lattice which primarily
connected with investigating the current piece of the pie of association.

Whitbread is one of the leading hotel in the UK hospitality industry. This mainly
provides quality hospitality services and management services to guests and visitors . To
promote hospitality organisation and spreading the hospitality services are the essential aspects
in terms of deriving the skills and management of hotels and guest management.
Ans off growth matrix: this strategic tool mainly associated with analysing and spearing
the growth and development structure of organisation to attain competitive advantages and
enhance the existing market structure of organisation for better evaluation and control. There are
four major elements are considered in this subject to elaborate and explore the existing business
and penetrate the existing market share and area.
Market development: Current market position of Whitbread plc, the market share of
organisation is 600 hotels and over 1000 store costa coffee across the United Kingdom.
Diversification: There are diversified products and services provided by organisation in
term of building customer and guest appearance. There are type of services as per client desires
and expectations are also considered in this context.
Market penetration: there are type of competitive organisations working at international
and domestic level as Intercontinental Hotel Group, Marriott and Hilton hospitality group are the
nearest competitors are available in current market.
Product development: organisation is associated with providing room facilities and
hotel management services in the UK market. Approx 40% and more online sites are associated
with providing the services and management related to product and services in global market.
TASK 2
2.1: Reviewing the effectiveness of the business
Business effectiveness: It refers to the concept which determine the capability and
effectiveness of business organisation to achieve its desired goals and objectives with an
available resources within given time frame.
Whitbread Plc is operated its business at global level thus it is important for the
management to identify the effectiveness of business through analysing the effectiveness of
products and services offered in market, marketing tools, finances, employees' performance,
market image and record keeping. Such elements which contributes maximum to the

organisation in achieving its pre-determined goals in an effective and efficient manner. These are
further discussed in brief under the below:
Products/Services: Whitbread Plc formed in two division i.e. Premier Inn and Costa
which deals in providing excellent products and services such as Room facilities, transportations,
coffee products etc. to the guests comes from different countries (Knoke, 2018).
Marketing: Whitbread Plc operated its business at global level thus required to market
their products in order to spread information about their products along with their price, quality
etc. Therefore, Whitbread Plc adopted various promotion tools such as sales promotion, media
relation, sponsorship, conducting special events and advertising campaigns etc. Through such,
Whitbread Plc has currently attained huge customer base.
Sales: The sales of Whitbread Plc has fallen 1.3% compared to a year earlier in UK. As
the sales of Premier Inn business has decreases by 0.9% whereas the ales of cost coffee business
are decreases by 2.0%. Such situation are currently improving due to opening new outlets in
different countries such as Germany due to which the total sales of group has increased by 3.25.
Thus, expansion of business brings profitable result to Whitbread Plc.
Finances: According to the given statistics, the revenue of Whitbread Plc group reached
3.106 billions British pounds which makes Whitbread Plc one of the largest multinational hotel
chain in Britain.
Staffing: Whitbread Plc was established in the year 1974 by Samuel Whitbread in
partnership with Godfrey and Thomas Shewell. Richard Baker is the chairman whereas Alsion
Britain is the CEO of Whitbread Plc. At present times, It has employed more than 50,000
employees till 2018 which is good in figures.
Business image: Whitbread Plc has attained strong brand image in UK market due to
which the company always tried to increase their business image in other countries as well
through selling their quality products and services. The decision of Opening new outlets in
different countries such as Germany increases goodwill of Whitbread Plc (Stutely, 2012).
Record keeping: As a global company, it is essential for management of Whitbread Plc
to maintain all records of incomes and expenditures incurred on daily basis. It help them in
identifying their actual financial position in market.

2.2: Developing plans to improve business
In order to enhance the effectiveness of business, it is important for management to make
improvement plans which are further discussed as under:
Assessing situations: It can be done through following ways: SWOT Analysis: It is helpful for company to identify their owns strengths and
weaknesses so that further actions can be implement to reduce or eliminate weaknesses. Benchmarking: Setting performance target among the employees so to bring motivation
and confidence to work hard and contribute more in increasing the overall performance
of Whitbread Plc. Market research: It is important to identify trends, changes and customer demands etc.
on the basis of which an effective decisions and suitable plans are implemented.
 Trend analysis: It helps in analysing the market trends which are current in market trend.
 Set clear goals: The goals would be SMART that means specific, measurable, achievable,
relevant and time bounded so that it can be achieved in more effective and efficient
manner within given time frame. On the basis of goals and objectives, the management
need to prioritise the activity which are required to be done at first.
Identification and implementation of strategies for achieving goals: It is important for
management of Whitbread Plc to identify the strategies after analysing the situations in market
and on the basis of which such strategies are implemented with the help of taking experts and
professionals in order to bring maximum possible outcomes. While making implementation plan,
time frame, actions, responsibilities, resources etc. are required to be considered (Tones,
Robinson and Tilford, 2013).
Measuring the results: After implementing all plans and strategies, the final stage is to
analyse the outcome in order to determine the effectiveness of implemented plans and strategies.
It help management to know whether there is improvement in business effectiveness or not.
TASK 3
3.1: Evaluating the current skills of management and staff
The employees are considered as an asset of company whose contribution decide the
growth and success of an organisation. It affects the overall performance of company therefore
the management of Whitbread Plc are held liable to make proper assessment of their staff skills

so as to identify the skills gabs that restrict them to give their optimum level of performance.
There are different types of skills such as technical, operational and managerial which need to be
assessed carefully by the management of Whitbread Plc. Such skills are defined as below:
Technical skill: It is such skills and abilities which are helpful in performing specific
activities. Such activities may related with mechanical, information technology, mathematical or
scientific task etc. Working on MIS system requires such skills thus need to be present in
employees.
Operational skill: It is an ability to reduce operation cost through hiring transportation
facilities at reasonable amount which requires good relation with suppliers as well. It can be
useful to utilise available resources in an optimum manner which are scarce in market.
Managerial skill: It is an ability to make an effective business decision and suitable plans
in order to lead and direct employees to perform allotted business activities in profitable way. It
includes different skills such as human skills, technical skills, conceptual skills etc.
Therefore, it is important to assess the skills of staff members with an objective of enhancing
their overall performance. Such assessment can be done through the following ways:
Research: Conducting research at workplace in which performance of all employees are
analysed carefully through examining the documents containing all informations about previous
performance of each and every employees. On the basis of information collected through
research, training needs are identified which contributes maximum to the skills and capabilities
of employees (Hendy and Barlow, 2012).
Interviews: Assessing the skills of staff through conducting interview sessions in which
specific questions has been asked to each and every employees related to their roles and
responsibilities. It help them to identify whether their skills and abilities are required to be
improved and if yes then training will be required to be conducted.
Performance reviews: It is the process of analysing the performance of employees
through comparing their actual performance with standard so that the performance gap can easily
identified. It gives an opportunity to both management and staff to communicate freely and
address any issues which restricts both of them to give their best.
Ask for clients' feedback: This is an effective way of assessing the skills and actions
performed by management and staff members. In this, feedback should required to be collected

from the clients and communicate them in order to identify their satisfaction level. This will help
in identifying the capabilities and potential of employees.
3.2: Devising and justifying plans for the development of skills for management and staff
After identification of skills and capabilities of management and staff, it is important to
make suitable places to improve the performance gap identified through different ways.
Whitbread Plc is operated at global level which has employed large number of employees having
sufficient skills and knowledge thus their performance decide the growth and success of an
organisation (Polonsky and Waller, 2014). Whitbread Plc has its individual team operational and
management which is centralised around emerging the capacity to develop the plans for deriving
strategies and plans as advanced apprenticeship aimed to 200 apprentices to join the programme
in upcoming years. Motivating employees to participate in every organisational activities in
order to gain new knowledge which further help them in completing allotted task in an effective
and efficient manner.
CONCLUSION
It has been concluded from the above project report that it is important for the
management to analyse and improve the health of company through analysing business
environment and prepare business improve plan as well. For this purpose, SWOT, PESTLE,
Porter Five Forces, Ans-off matrix etc. are required to be considered in order to identify the
effectiveness level and take further actions to improve.

REFERENCES
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