Strategic Hospitality Management: Pret A Manger Future Strategies

This assignment presents a comprehensive strategic analysis of Pret A Manger, a prominent player in the hospitality industry. The analysis begins with an overview of Pret A Manger's cultural web, highlighting its brand image, employee practices, and organizational structure. A value chain analysis examines the company's support activities, inbound and outbound logistics, and marketing strategies. The core of the assignment involves a detailed SWOT analysis, identifying Pret A Manger's strengths, weaknesses, opportunities, and threats. This is followed by an application of Porter's Five Forces model to assess competitive dynamics and a PESTLE analysis to evaluate the external environment. Stakeholder mapping is used to understand the power and interest of different groups. Finally, the assignment proposes future strategies for Pret A Manger, including expansion into the Chinese market and the adoption of online delivery processes, supported by the SAF model and Ansoff's Growth Strategies.

PRET A MANGER Future Strategies

CULTURAL
WEBStories-
 colourful menu had a great success
 New campaign to make smile through free coffee gift
Symbols:
 The shops bear perfect brad image and symbol of star
 They share the signature menu
Rituals & Routines:
 Employees are chosen irrespective of their cultural background
 Most of them are allowed to reach the management position (Pret.com 2020)
Control Systems:
 The employees are given with facilities required
 Trainings and workshops are arranged differently depending upon their positions
Structure:
 The organisational structure is divided into shops and the main office
 The management mainly operates in the offices and team members takes
responsibilities of stores
Power
 The main power is in the hands of the customers
 Most of the managers are from team members
The Paradigm
 The overall environment of the company is dominated by the positive organisational culture
and empowerment of the employees (Pret.com 2020).

VALUE CHAIN ANALYSIS
Firm infrastructure- in Pret a Manger
the support activities include
planning, management and finance.
Human resource management- The
human resource management is
more or less supportive for the
employee growth though training
and remuneration.
Technology- Using of technology is
not very relevant in manufacturing
as all products are organic.
Procurement- proper process in

VALUE CHAIN ANALYSIS
CONTD.
Inbound logistics:
 Strategic relationship with the suppliers
 Effective supply chain management for organic ingredients
Operations:
 Convenient store locations in the cities like UK, US and many of the European cities.
Marketing and sales:
 Competitive corporate social responsibilities
Outbound logistics:
 No presence of intermediaries
Service:
 great emphasis on service

SWOT ANALYSIS
Strengths
 Already established market
 Great reputation for service and
products
 Perfectly achieved attention of
the new generation
 affordability of the product and
services are high
 Connection with the suppliers is
high
 Support from corporate social
responsibility
 Effective expansion strategies
Weaknesses
High competition in the
market
Dependence upon western
standard food items
Health consciousness
among customers are not
fully exploited.
Mainly middle and high
income people find
affordability of products

PORTER’S FIVE FORCES
Threat of substitutes
 Pret a Manger keeps on innovating products
Bargaining power of customers
 Competition level is high in the market making customers more powerful in bargaining.
Power of suppliers
 The suppliers are not very powerful as ingredients are available more than demands.
Competition in the industry
 Competition in the food market in the UK and other countries is high s also the rivalry.
Threats of new entrants
 The market is already concentrated with numerous food brands hence entering in the
market is tough.

PESTLE ANALYSIS
The PESTLE analysis of the UK revels-
Political:
Stable government
Low corruption level
Economic:
This is one of the most successful
economies of the world.
High GDP leading to high buying
capacity of customers
Socio-Cultural:
Here people have high standard of life.
The company gets highly skilled
employees.
Technological:
technological advancements in the aspect of
marketing, manufacturing and service are
supported in the UK market.
Legal:
The UK government has proper knowledge and
policies regarding food license, nutrition
protection acts and consumer rights
Environmental:
The environmental policies of the UK advocates
for proper waste management, reduction of
carbon foot print and proper utilization of the
non-renewable resources (Kotler et al. 2017).

SWOT ANALYSIS
Opportunities
Expansion in the Asian market
Growth of health consciousness
among he customers
New generation showing interest for
organic food
Suppliers are supportive (FAN and XU
2016)`
Product differentiation and variation
are possible
CSR activities are supportive of growth
and fame.
Threats
High price of food items
Highly congested market
Ingredients are not always
available
Technological pressure in the
marketing and delivery process
Consistency of customer loyalty
is not dependable.

STAKEHOLDER MAPPING
THEORETICAL MODEL
Low
Low
Powe
r
High
Level of
interest
High
• Employees
full time and
part time
• Suppliers
• Employees
part time
• Customers
• Government
• Shareholders
• Board of
directors
The power and interest level
are low among the employees
of full time and part time.
Interest is high among the
suppliers and part time
employees.
High power and low level of
interest are possessed by
customers and the
government.
High power and high interest

SAF MODEL
Existing strategy- expansion
in Chinese market and
pressing for adopting western
food culture
Suitability:
 Chinese market accepts variation in
food habits.
Acceptability:
 The market has started to adopt
western food culture
Feasibility:
 Competitor of western organics food
is less in Chinese market.
Future strategy-
Adapting online delivery process through
mobile application.
Suitability:
 This is suitable because the young generatio has
developed the trend of getting food delivered at
home.
Acceptability:
Highly acceptable as application based food
service has its different loyalty level.
Feasibility:
High feasibility for minimum expense in
developing app and getting food delivered.

ANSOFF’S GROWTH
STRATEGIES
Prese
nt
Product New
Mark
et
Market penetration
Trying to get more
share of market with
new method of service
Low risk
Product development
Extending existing
products
Medium risk
New
Market development
Creating new market
for food delivery
through mobile
application.
Diversification
Existing product
but enhanced
quality.

REFERENCES
Dawes, J., 2018. The Ansoff Matrix: A Legendary Tool, But with Two Logical
Problems. But with Two Logical Problems (February 27, 2018).
FAN, C. and XU, W., 2016. Analysis of the development strategies of online
pharmacies in China——based on Michael Porter's five forces model. Journal of
Guangdong Pharmaceutical University, (6), p.32.
Kotler, P., Bowen, J.T., Makens, J. and Baloglu, S., 2017. Marketing for hospitality and
tourism.
Wilson, A., Zeithaml, V., Bitner, M.J. and Gremler, D., 2016. Services marketing:
Integrating customer focus across the firm.
Pret.com. (2020). Freshly prepared food, organic coffee. Retrieved 9 January 2020,
from https://www.pret.com/en-us/ceo-blog
Pret.com. (2020). Freshly prepared food, organic coffee. Retrieved 9 January 2020,
from https://www.pret.com/en-us/media-center