Strategic Planning for Hospitality Industry: Premier Inn Report

This report delves into the realm of strategic planning within the hospitality industry, employing Premier Inn as a focal point. The analysis encompasses a critical examination of the factors influencing successful strategy implementation across various business functions, including leadership, structural design, information and control systems, and human resources. It further evaluates different performance metrics, such as critical success factors and key performance indicators, and their impact on the effectiveness of business strategies. The report also addresses the management of strategic change, exploring key elements and different types of change, providing a comprehensive overview of strategic planning concepts and their practical application within a real-world hospitality context.

STRATEGIC
PLANNING FOR
THE HOSPITALITY
INDUSTRY

Table of Contents
INTRODUCTION...........................................................................................................................4
TASK 4............................................................................................................................................4
Critically analyse the factors which helps in influencing the successful implementation of the
strategies in business functions...................................................................................................4
TASK 5............................................................................................................................................7
Evaluation of the different performance metrics and how they influences the effectiveness of
business strategies.......................................................................................................................7
Critically evaluate the various key elements in order to manage the strategic change and also
leas the different types of change................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Strategic planning is a process which helps in providing directions or documentation in
order to run business operations. This plan provides a place which helps in recording or tracking
the mission, vision and long term objectives in order to action the plans (Kotler and et. al., 2017).
It is an art of formulating business strategies, helps in implementing them and also evaluating the
impact on the objectives of organisation. In the context of hospitality industry, strategic planning
is helpful in order to define the business strategies, directions and allocation of the available
resources in order to carry out the business functions. In present era, hospitality industry is
growing very fast and for this it is important to do strategic planning in order to increase the
image of company. In this report is based on the Hotel Premier Inn which is the British hotel
chain and the largest hotel brand in UK. Moreover, hotel provide many luxurious services to
their respective customers. In addition to this, Whitbread take over the Premier lodge in 2004
and also merged in it including Travel Inn which is in the form of current business under the
name of Premier Travel Inn and the accounts for 70% of Whitbread's earnings. This report is
going to focus on the examining of various functions which impacts the execution of strategies
and its factors. It also analyse the performance metrics which impacts the efficiency of business
strategies. In addition to this, it also determine the different key elements in order to manage the
strategic changes and leading the types of changes.
TASK 4
Critically analyse the factors which helps in influencing the successful implementation of the
strategies in business functions
Strategic implementation is a process which put plans into actions in order to achieve
desired objectives. It is a written document which describes the steps which helps in reaching the
goals and targets include feedback and progress in order to make sure that the plan is on track or
not. There are many business functions which helps in implementing the strategies and
influences the execution and impact of various levels of forces (Konovalova and et. al., 2018).
Therefore, it is important for an organisation as well as employees too about the execution of
strategies. Involvement of employees is important before implementation of strategies as it helps
in motivation of employees which put positive impact on the implementation of strategies.
Various business functions with the implementation of strategies are mentioned as under:

Leadership: This functions is helpful in order to motivate and encourage employees who
are working in an organisation because it is important to inspire them as it increases their overall
performance (Ali, 2018). In Hotel Premier Inn, leaders plays a significant role in order to inspire
and provide directions to their workforce. As leader is an individual who brings out the the best
talent from their employees and also guide them. Presently, the leaders of Premier Inn uses
autocratic leadership in which they only provide instructions to their subordinates and they need
to follow it. As per this strategy, there is no requirement of the suggestions and opinions of
employees and this can demotivate the workforce and objectives and goals remains unclear
which influences the overall performance of employees. In order to overcome these issues
Premier Inn should use appropriate strategies which bring efficiency in their work and for this,
hotel can adopt democratic leadership which is useful in order to motivate, boost their morale
and performance by engaging them in decision making process as by this employees feel that
they are important for an organisation (What makes Premier Inn the world’s strongest hotel
chain, 2020). For this various factors which impacts the strategy of hotel are mentioned as under: Performance of employees: The adopted strategy put positive impact on the overall
performance of employees and helps in boosting their morale (Hassanien and Dale,
2019). Due to this strategy, workforce feel that they are important for Premier Inn as it
helps in increasing the overall productivity of hotel and attaining the desired goals and
objectives.
 Sustainability: It focuses on meeting the current needs without impacting the future
needs and decisions of business. It put negative impact on the adopted leadership as it can
cause conflicts, confusions and clashes among employees when their opinions and
suggestions does not matches with each other (Our strategy, 2020). To overcome this
issue, management of Premier hotel should take appropriate decisions and also determine
the current and upcoming needs and requirements which helps in improving the
sustainability.
Structural Design: It is a process which is used in order to make the structure in a
hierarchical manner and also useful in order to design it. Structure helps in assigning and
designing the roles and responsibilities. The delegation of authority and power depends on the
targets and objectives of hotel (Titomir and Danylova, 2018). In terms of Premier Inn, the
structure they maintain in their organisation is excellent and helps in improving their overall

performance with the helps of coordination and cooperation among the different departments of
hotel. Currently, hotel is using functional organisational structure which put negative impact as
their employees feel boredom and it also require great amount of specialisation in order to assign
work. In order to overcome this issue, Premier Inn should use divisional organisational
structure which is made for the large organisations as it defines that different departments are
established and under each level, head of the department is made who assign work to eligible
employees as per their roles and responsibilities and always available in order to motivate and
guide them. For this, few factors influences the strategy which are mentioned as under: Organisational Size: This factor describes the adoption of strategy which is depends on
the structure and size of the company as adoption of divisional strategy put positive
impact on company as it helps in dividing the task by considering their particular
knowledge and responsibilities (Premier Inn Hotel, 2020).
 Valuable: It describes that the divisional structure is not valuable for employees as it
develop competition within the Premier Inn and among the different departments of an
organisation which is not good for the hotel.
Information and Control System: It is a procedure which helps in controlling,
monitoring and observing the manpower of the hotel. As it is important to measure the overall
performance and if the supervisor find any sort of deviation in the performance of employees
then they take corrective actions in order to improve the overall performance (Madera and et. al.,
2017). Currently, Premier Inn only measures the performance of employees and does not correct
them in their wrong working which put negative impact on the overall performance of
employees. In order to overcome this, Premier Inn should use strategic surveillance control
which helps in analysing the different factors as it impacts the strategy and focus on different
tactics which helps in controlling the premises and implementation. Various factors which
influences the strategy are discussed as under: Strategic Formulation: According to this strategy, it depicts the formation of the
procedure which does not need much control and monitoring as it include strategic
planning which put positive impact on Premier Inn and does not require much control and
observation of strategy.
 Strategic Implementation: By considering this factor it describes the implementation and
execution of strategy which require better observation and controlling of strategies and

procedures which is useful in order to neglect the useless factors (Moutinho and Vargas-
Sanchez, 2018). It put negative impact as many times monitoring does not get work and
due to this reason Premier Inn face resistance of employees.
Human Resources: It is a process which is used in order to manage the resources and
develop the good relationship with human resources which is used in order to retain them. In
terms of Premier Inn, this function is important as it aid building and overseeing many business
activities which assist in the regard of Premier Inn (Belias and et. al., 2017). It is useful in order
to analyse the requirement of training and development in order to improve the overall
performance and productivity of employees. Currently, Premier Inn is using off the job training,
which put negative impact on the performance of employees and not beneficial for the cost as it
involve huge recruitment cost. In order to overcome this issue, Premier Inn should use peer
training which is useful for workforce as well as hotel as by this they gain knowledge while
working in an organisation and it is more practical. Various factors which impacts the strategy
are mentioned as under: Cost: It put positive impact on the functioning of Premier Inn as it aid in increasing the
overall performance of workforce and can save the cost of classroom lectures or
theoretical information which is good for an organisation in order to improve the
productivity and performance of employees.
 Use of resources: This factor put negative impact as because of peer training newly
recruited employees in Premier Inn directly use the available resources of company
which tends to wastage of the resources and also impacts the cost of company.
TASK 5
Evaluation of the different performance metrics and how they influences the effectiveness of
business strategies
Performance metrics is a procedure which is used in order to measure the performance of
workforce with the help of statistics, figures, data and charts which helps in determining the
overall quality which include sales, revenues, profitability, customer satisfaction and many more.
It is the important part for the success of Premier Inn and significant as it put emphasis on the
key areas which is used in order to provide support to achieve success for the entity (Buhalis and
Leung, 2018). Different metrics are mentioned as under:

 Critical success factors: It is an important element as it is used in order to analyse and
define the achievement of the goals of an organisation and for this, Premier Inn should
get aware about the key success factors which defines the various variations in the
different roles of an organisation. While talking about the success criteria it is defined
that the objectives are measurable and also important in order to enable the positive
outcome for business strategy. These factors are determined after applying the business
analytics as it is helpful in taking business decisions which is good for the firm and useful
in order to achieving goals and objectives (Okumus and et. al., 2017). It depicts the
efficiency of the strategic surveillance control in order to function about the information
and control system. This strategy itself describe the two factors which are formulation
and implementation. As it is an effort which is done by the manager of Premier Inn in
order to monitor and control the wide range of events which is present in the internal and
external side of an organisation. This strategy is useful in terms of Premier Inn in order to
increase the productivity and performance of employees with the help of strategic
observation of performance of their employees and if any deviation is find then they take
corrective actions in order to intensify the performance of employees. Key performance indicators: It is a performance metrics which is used in order to
analyse the success for an organisation for the specific action. It relies on the excellent
performance and understanding and also describe that what is significant in order to
achieve the different techniques which are used with the aim of business as it is regarded
with the selection of performance indicators (Zorpas, Voukkali and Pedreño, 2018). It is
helpful in order to measure the success of Premier Inn as it helps in setting the goals and
objectives which is used in order to attain fastest growth for the hotel. In this section, the
divisional structure strategy is used for the functioning and designing of the structure of
an organisation. These indicators are the efforts which are made by the management of
the Premier Inn as it is useful in order to improve the efficiency of employees and helps
in measuring the overall performance. Due to the divisions which are made in Premier
Inn as it become easy for them to manage their employees and analyse the total
performance of their workforce. By considering this, assignment of task becomes very
easy and it also helps in the analysing the availability of the facts and figures.

 The balanced scorecard: It is a strategic management planning which is used in order to
determine and improve the different business actions which is helpful in order to
measuring the performance of workforce as by taking feedback of their performance
(Camilleri, 2018). This method is used in order to collect the data which is crucial in
order to analyse and also helps in providing the desired results to their managers and
collect relevant information which is helpful in better decision making and also helps in
attaining the growth and success for Premier Inn. It is useful in order to determine the
different business functions and also get best result. It also include growth, finance,
learning of the business procedure and to understand the success and accomplishments of
peer training the efforts are made by the management of Premier Inn Hotel as it helps in
improving the effectiveness of employees. It is helpful in order to give direction and
support which is useful for the success and development of organisation and also used by
the hotel to give practical training in order to reduce the cost of classroom training or
lectures.
Critically evaluate the various key elements in order to manage the strategic change and also leas
the different types of change
Changes are useful for the Premier Inn as it helps in bringing effectiveness and efficiency
in order to provide new shape to the business or for its marketing plan in order to perform or
attain the required objectives. Changes are good for Premier Inn as it take entity to the next level
as it happen by modifying the policies, target market and culture of an organisation (Smith,
2017). Changes are executed with proper planning, formation of strategies and implementation
of new policies as it helps in reducing the unproductive things and resistance of employees in the
Hotel. But somehow employees think that changes are not good for them and they implement it
in an appropriate manner as it is significant to evaluate the different key elements of change in
order to manage them which are discussed as under:
Diagnosis: This element depicts that determination of the issues which is faced by the
entity and also useful in order to analyse its causes in order to overcome these different problems
and find solutions for it. It is the suitable way which helps in analysing the variations which arise
among the current and desired performance which helps in finding the suitable way by which the
goals and objectives are achieved (Bouranta, Psomas and Pantouvakis, 2017). Diagnosis is a
procedure which is used in order to oversee the entity and its structure and also helps in

analysing that how changes initiate, what can they do and what are its result as it is performed in
continuous manner. By considering the above discussed strategy, democratic leadership is
adaptive in relation with Premier Inn as it help in order to diagnosis and also put both positive
and negative impact as positive in terms of increasing the performance and flexibility of
employees and negative in terms of sustainability in their work. Hence, diagnosis brings
adoption in the democratic leadership as it is helpful in order to get fresh and new ideas.
Change agents: These are the individuals who bring change in an organisation and also
the mediators who executes the change for the beneficial of an organisation and ensures that the
changes are properly implemented and adopted by employees. These agents make transformation
and influences the entity from both inside and outside as it is useful in order to focus on the
different matter such as efficiency of the entity, improvement and development (Dimitropoulos,
2018). Changes are important in order to achieve sustainability and success which is helpful for
the betterment of an organisation. Change agents put emphasis on the efforts which are made at
the time of implementing or executing changes as it influences the technologies, structures and
relationship of an organisation. It is concluded from the above discussed strategy that is
divisional structure is is reconstruction of the structure and bring effectiveness in Premier Inn. It
is considered that the structure of the company brings efficiency in the performance of
employees and defines the structure which become easy to execute the changes. Due to this
process, it becomes easy to analyse changes and also helps in eliminating the resistance of
employees.
Managing change programmes: It depicts the management of change which is used in
order to provide structure of the approach which defines the movement of an organisation from
the current situation in order to get desirable result by considering the future conditions.
Management of change is important as it is helpful in order to improve the morale of employees
as it brings efficiency and effectiveness in their subordinates at the time of implementation of
change. It defines the change management and also the performance of subordinates and if there
is any deviation in it then take corrective actions for it in order to improve the performance
(Kotler and et. al., 2017). It helps in measuring the performance of employees of Premier Inn
while executing change and analyse the performance of employees in order to improve it. For
this, strategic surveillance control is adopted which bring revolution in order to monitor and
control the performance of employees it is manageable in terms of Premier Inn as in its

formation stage and then become quite complex in its implementation stage and bring resistance
of employees which become quite complex to implement change.
Levers for change: It defines the decisions which are taken by the leaders in order to
involve employees at the time of execution of change (Konovalova and et. al., 2018). Premier
Inn bring changes only when their employees want changes. In terms of above discussed
strategy, peer training is used as it bring evolution which helps in improving the overall
performance of employees. It brings efficiency in their work while delegating task to employees.
This strategy is useful in Premier Inn in order to direct and provide training to them while
working in hotel. It is also useful in order to develop the practical knowledge which is used in
better implementation of task.
CONCLUSION
From the above discussion it is summarised that the planning is important in order to
achieve strategic goals and objectives and for this it is analysed those factors which gets affected
by the successful implementation of the strategies on the functions of business. Moreover,
different performance metrics are also discussed which is used in order to describe the success
factor of the adopted strategies. Moreover, discussion is diverted towards the changes as it is
beneficial for the company in order to take themselves to next level and also important to
manage them to reduce the resistance of employees. As for this critical evaluation is done in
strategic manner which include various stages such as diagnosis, change agents, managing
change programmes and levers for change which helps in managing strategic change and leading
the types of change.

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Online
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What makes Premier Inn the world’s strongest hotel chain. 2020. [Online] Available through
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>./