Premier Inn: Strategic Planning, Competitive Advantage & Metrics

This report provides a comprehensive analysis of strategic planning within the hospitality industry, focusing on Premier Inn as a case study. It critically examines factors crucial for strategy implementation, including commitment, organizational structure, communication, and adaptability to change. The report explores creative business strategies for maintaining competitiveness, such as marketing strategies, Porter's generic growth strategies, human relationship theory, scientific management theory, and administrative management principles. Furthermore, it analyzes and evaluates various performance metrics, emphasizing customer happiness and reviews, to provide a holistic view of Premier Inn's strategic approach. Desklib offers a wealth of similar solved assignments and study resources for students.

Strategic Planning for
Hospitality Industry

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK...............................................................................................................................................4
1. Critically analysation of most appropriate factors to be implement in a chosen strategy ......4
2. Creative business strategy for future strategy selection of organisation in order to remain
competitive in hospitality industry .............................................................................................6
3. Analysation and evaluation of different performance metrics ...............................................8
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Strategy planning refers to a systematic process for purpose of envisioning of desired
future as well as translation of vision into different types of objectives, goals as well as sequence
of different types of steps require to attain them (Ali, 2018). It is considered as an important
management activities which is used for purpose of setting priorities, strengthening operation,
focusing on resources and energy as well as ensuring employees as well as other stakeholders
working towards attainment of goals for getting desired results. This project report includes
study of Premier Inn which is UK based organisation providing its hospitality industry in
different countries. It is a largest hotel chain in UK which has around 72000 rooms as well as
800 hotels. It was established in the year 1987 by Whitbread in UK. This project report
includes analysation of appropriate factors required for implementation of a strategy. It is a
research related to creative strategy of business for future strategy in company for selection to be
competitive for purpose of hospitality industry. Moreover, it consist analysation and evaluation
of different types of performance metrics.

TASK
1. Critically analysation of most appropriate factors to be implement in a chosen strategy
There are different types of organisation is facing different types of problems in their
organisation. In order to overcome of these problems, they are require to implement these
strategy in their organisation in effective manner (Bouranta, Psomas,and Pantouvakis, 2017). But
implementation of strategy in business create various challenges. These challenges are related to
different factors that create impact over ability of company. Some of these factors in context of
Premier Inn is mentioned below:
Commitment: It is essential for managers of Premier Inn for successful implementation
of strategy for business to get support as well as commitment from employees and other
members of company. Lack of commitment may create impact over business and its performance
in negative manner. For implementing strategy, it is essential for business to maintaining
understanding among middle management and top management goals that is important for
successful implementation of strategy. There are mainly three dimension of commitment that
create direct influence over strategic outcomes like organisation commitment, role commitment
as well as strategy commitment. It is a extent to which managers of Premier Inn is finding out
work towards attainment of goals and values of organisation. It is a extent to which managers are
providing support to attainment of goals and values for implementation of strategy. An
organisation should follow commitment with the support of top level management and board of
directors present. This helps in increasing stability of a company and also helpful in determining
success of a company. Commitment of an individual is dependent on key objectives and goals
which are framed at starting of a financial year.
Organisation structure: Organisation structure is another important factors which create
impact over process of strategy implementation. There are different types of strategy which are
differer with each other as there are different requirement related to organisation structure. It is
essential for business to have proper alignment of strategy with organisation structure which is
important for Premier Inn to effective implement their corporate business strategy. There are
various changes occur in competitive environment which require adjustment in organisational
structure (Bratton, and Watson, 2018). Organised structure is considered as major approach that
is beneficial in increasing systematic job related functions and tasks. Company also measure

performance metrics with support of organised and formulated structure that is essential for
business milestones achievement.
Communication: Communication is one of important factors which is creating impact
over process of strategy implementation. It is important for business managers of Premier Inn to
ensure smooth flow of communication among different members of company. With it, managers
are successful for explaining different types of tasks, responsibility as well as duties which is to
be performance by employees that helps them for successful implementation of strategy. At time
of implementation of new strategy, employees is curious to get to know reason behind that
strategic decision, reason for change in job activities. For all these, managers require proper
communication that allow employees to communicate with management. There is also increase
in confidence of different employees in the employees with the help of communication in order
to increase the coordination.
Ability as well as willingness to change: Implementation of strategy in any organisation
require proper changes (Cabral, and Jabbour, 2020). There are some organisation which are
embracing changes in their business whereas some organisation which are resisting changes. It is
important for business to understand what is required to be more competitive. In this, it is
essential for business managers of Premier Inn to prepare themselves and employees to accept
changes and work accordingly. It increase chances of success of strategy implementation in
business.
Strategy among different department and different level of strategy: There are
different types of strategy level and institutional relationship among department of business
which create impact over process of implementation of strategy. There are different aspect like
marketing policies of company corporate business relationship, inter-functional process of
company and other things create impact over strategy implementation (Chandra, 2019). There
are various kinds of effective that create impact over business strategy like participation of
decision making, coordination, functional competencies and other things. Effectiveness of
implementation of strategy can be affected with conflict occur in business but ensuring smooth
flow of communication create positive impact over business.

2. Creative business strategy for future strategy selection of organisation in order to remain
competitive in hospitality industry
The business strategy is a major planning related to future for development of whole business
entity. In the recent times, the importance of business strategy is increasing in hospitality sector.
Also business strategy will be helpful in order to develop a major plan and its frame work for
risk free development of a company (Elshaer, 2019). Premier Inn always focuses on following
major points which are mentioned below for strategic evaluation. All major business entities in
the recent times, focus on following strategies:
 Marketing strategies- The marketing strategies are important for a business, in order to
develop sales and turnover of the company. All main international and national
companies at the marketplace focus on marketing strategies in order to gain competitive
advantage. Marketing strategies includes application of marketing mix which includes
product and its development along with promotional strategy. This restaurants develop a
good marketing strategy along with setting affordable rates and discounts. All marketing
strategies which are effective part of a business helps in increasing overall revenue of the
business. All major organisations in marketplace, focus on marketing strategy in
hospitality sector for sustainable business growth
 Porter's generic growth strategy- The Porter's generic growth strategy, contains three
major approaches which are cost leadership, focus and differentiation. Porter's generic
growth strategy takes help of cost leadership in order to provide best price for product
sale. On the other hand, this strategy include focus as other element which is a major
turning point in life span of a company (Jalilvand, Pool, and Tabaeeian, 2018). Marketing
and operations of a department is an essential part of a business to develop major goals
and objectives. Focus on operations and productions management is major duty of top
level management in order to develop effective objectives.
 Human relationship theory- In the functioning of a business organisation, the human
relationship theory is a major approach which is helpful in increasing relationship
between employees. This theory is used by a business in hospitality sector to improve
harmony between different employees. Human relationship theory can be used by a
company to develop systematic approach for delivering major practices. Development of
human relationship theory is a major approach which is beneficial for increasing

employee's productivity. All major business entities in marketplace also focus on
developing a main human relationship theory for competitive advantage.
 Scientific management theory- The application of scientific management theory helps a
company to develop major operations in a systematic manner. All types of scientific
management theory including scientific management theory are important in providing
major and systematic matter (Konovalova, Uhina, and Lebedev, 2018). Scientific
management theory is related to development of a precise business approach which is
also helpful in attracting large number of customers. The scientific management of a
company should be aware about major business practices related to practical handling of
different things. In the recent times, importance of scientific management is increasing in
major sense which is useful for companies.
 Principles of administrative management- In the business world, administrative
management is considered as major authority which rules the management. This strategy
is related to development of business entity with help of professional administrative
management. All major companies in the global and domestic marketplace follow
principles of administrative management in order to develop essential aspects. In the
restaurant, this approach will be helpful in increasing overall performance of the
employees. In major companies, there are several management bodies which are
dedicated to provide world class administrative management. All companies in
sustainable marketplace, majorly focus on developing administrative management
principles for competing at the marketplace (Kotler, Makens, and Baloglu, 2018). All
companies in global and international marketplace realise the importance of project
management and make it necessary for employees to follow. The discipline is also a
major part of scientific management theory in order to focus on key objectives and goals
that develops competitive advantage. Application of administrative management theory
for all companies in corporate world, the factors are developed accordingly.
 Business strategy- The business strategy is considered as a major planning framework
for overall development of a business. The business can succeed at the marketplace using
development of a precise business strategy which is helpful for company growth. All
major companies in the international marketplace, takes support of top level and strategic
management for the development of a long term business strategy. In main companies,

business strategy is a major policy which also includes following employment legislation
for conducting ethical business practices (Law, Fong, and Fong, 2018).
3. Analysation and evaluation of different performance metrics
The performance management is a major function of every company, in order to develop
performance of different products. All companies in domestic marketplace makes it a major
function of human resource management to develop performance of different employees. The
performance management techniques are related to long and short term methods that are used by
a business organisation (Metaxas, Chatzoglou, and Koulouriotis, 2019). In majority of cases,
performance management is a crucial body which systematically leads to provide effective
working environment. The performance metrics is an universally adopted way of developing
performance and its measurement. All important stakeholders in the company should focus on
performance management and growth for sustainable expansion. In order to develop effective
evaluation of various objectives, the following are major points which explain performance
metrics:
 Customer happiness- The customer happiness is also one of the major aspect of
performance metrics which defines business objectives. Customer happiness should be
achieved by a business with providing major products on discounted price and plan. All
major parameters of customer happiness provides and delivers, effective motivation in
employees for business growth (Moyle, Moyle, and Burgers, 2020). Customer happiness
is essential to be developed with the support of customer relationship management
software. This tool is formulated with the help of information and technology, which also
helps in performing accurate and quick operations.
 Customer reviews- All reviews related customers are effectively important for fair
customer service and management. The customer reviews are majorly important for a
business entity for measurement of individual marketing staff growth. All major
customers who are target customers for the business also increase the chances of business
growth (Peters, and Kallmuenzer, 2018). Customer reviews are taken by a business in the
form of written or oral form for making essential modifications in different products. In
all major cases of different companies, customer reviews are important part of a business
which are helpful in developing desired changes in services also. The customer reviews

are dependent on satisfactory levels of various customers in business. In order to
effectively formulate customer reviews, it is mostly important for a business to develop
customer related strategy. In all major cases of customer care, there is a major role played
by after sales and service support. In many cases, there is a main role of customer
perspectives and psychology in order to determine rest of the company goals.
 Quality measurement- Performance metrics is also impacted by quality management of
a business related to its products and services. The overall performance of a product is
majorly essential for formation of effective approach in decision making. In order to
satisfy wants and needs of different customers, it is crucial for a company to develop
quality management of all major products. Marketing surveys are also one of the major
sources of providing a major advantage to product development using critical methods
and techniques (Van Den Berg, and Russo, 2017). The business should use the
application of quality measurement using total quality tools and techniques. Quality
management is also vital for a company to increase sales turnover ratio. All quality
related decisions of a business are taken by marketing staff for sales increasing. In the era
of stiff competition between companies, quality measurement and its focus should also be
on cost leadership. This determines, successful marketing campaign, along with an
impact on major perspectives of marketing.
 Reputation measurement- Goodwill and marketing are most important part of
marketing which determines value of a company in business world. Presence of
marketing staff and its techniques is available for business development also increase
profitability of company. The UK based companies should follow ethical and integrated
practices at the marketplace with major advantage. Key focus on increasing reputation of
a business is to focus on business parameters that are essential for business developing
with key focus on major targets achievement (Zorpas, Voukkali, and Pedreño, 2018). In
the major parameters related to business development, reputation measurement according
to size of business is important. This consideration must be developed by a company in
order to effectively analyse implementation of desired strategy.

CONCLUSION
From above mentioned project report, it can be concluded that strategic planning is an
important aspect in hospitality industry. There are different types of issues to be faced by
companies and in order to overcome of these issues, managers are developing different types of
strategies. Developing a strategy for business is a complicated task but implementing it in
business is more complex. There are different types of factors to be faced by business at time of
implementation of strategy which create impact over success in business These factors includes
communication among different members, commitment among members of company,
willingness of change and other components which is to be consider by business managers.
There are different types of method to be adopted by managers in order to analyse success of a
strategy. These method includes key performance indicator, balance scorecard and key success
factors.

REFERENCES
Books and Journals
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management. International Journal of Hospitality Management, 88, p.102389.
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HOSPITALITY INDUSTRY. NOLEGEIN-Journal of Leadership & Strategic
Management, pp.6-8.
Elshaer, A.M., 2019. Labor in the tourism and hospitality industry: skills, ethics, issues,
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operandi for sustainable business excellence: the case of Greek hospitality industry. Total
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Peters, M. and Kallmuenzer, A., 2018. Entrepreneurial orientation in family firms: The
case of the hospitality industry. Current Issues in Tourism, 21(1), pp.21-40.
Van Den Berg, L. and Russo, A., 2017. The student city: strategic planning for student
communities in EU cities. Routledge.
Zorpas, A.A., Voukkali, I. and Pedreño, J.N., 2018. Tourist area metabolism and its
potential to change through a proposed strategic plan in the framework of sustainable
development. Journal of cleaner production, 172, pp.3609-3620.