Strategic Hospitality Management HM605: Premier Inn Strategic Analysis

This report presents a strategic analysis of Premier Inn, a British limited-service hotel chain, focusing on its objectives, stakeholder relationships, and external environment. It identifies Premier Inn's mission to provide high-quality, accessible accommodations and analyzes its stakeholders using a power/interest matrix, highlighting the roles of board members, investors, employees, and customers. A PESTLE analysis examines the political, economic, social, technological, legal, and environmental factors impacting the company. The report includes a SWOT analysis, evaluating Premier Inn's strengths, weaknesses, opportunities, and threats, such as its brand image, competition, and the impact of COVID-19. The analysis aims to provide a comprehensive understanding of Premier Inn's strategic position and potential for growth within the hospitality industry. Desklib offers a variety of resources, including past papers and solved assignments, to aid students in their studies.

Strategic Hospitality
Management

Table of Contents
INTRODUCTION ..........................................................................................................................2
MAIN BODY...................................................................................................................................2
OBJECTIVE AND GOALS OF PREMIER INN.......................................................................2
STAKEHOLDER ANALYSIS ..................................................................................................2
PESTLE Analysis of Premier inn ..............................................................................................5
3 Strategic Analysis.....................................................................................................................7
Critical Evaluation of the SWOT analysis..................................................................................1
CONCLUSION................................................................................................................................2
REFERENCES................................................................................................................................3
1

INTRODUCTION
Strategic hospitality management refers to generate and execute targets which can be
concerned about specific business. This works focus on model that helps to create competitive
benefits in industry. This aid a business to accomplish organisation goals in a well define manner
that can contribute business growth (BURKE, ROBINSON and Choi, 2020).This reports is based
on Premier Inn,it is a British limited service hotel chain that can operate in various locations
which involves city centres, suburbs and airports. In this reports topics that to be considers is
identify mission and objectives, stake holders analysis on basis of power/ interest matrix and
PESTEL framework, Strategic analysis through SWOT and its features that helps to critically
evaluate internal and external capability that helps to accomplish mission by the owner in an
organisation.
MAIN BODY
OBJECTIVE AND GOALS OF PREMIER INN
The mission of respected hotel is to provide high quality and placed a hotel where
everyone can easily reach their potential without any conflict to entry that helps to satisfy the
desire of person. The main objective of premier inn is to consider short term as well as medium
haul goals for accomplish bigger target of business that aids to contribute long run growth.
Basically,this can improve entire system related to customer lives as they offering extreme
quality accommodation with a reasonable price that can bring a superior experience of clients in
industry. To convert this goal into reality company has to make a diversify range with partners
that helps to boosting consumer comfort and experience. It gives unique features that can
enhance positive success across the world.
STAKEHOLDER ANALYSIS
A stakeholder is a person that shows their interest in company (Konovalova And et.al.,
2018). It can be an individual or a team that is helpful for taking decisions of organisation. There
are two type of stakeholders, for identifying these following matrix can be used.
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Power/Interest:
 High power high interest: These stakeholders are the one who can make decision that
can have a extreme effect on task success. These persons are highly required in business
for handling and accomplish business expectation. In case of premier inn, board of
directors, owners and investors are considers in this segment.
 High power low interest: This matrix involves those person who are keeping
satisfied(Martins, 2018). As they are not interested to get desire outcome but have to
yield power. They can also use their power in adverse if if they are not satisfied. It
includes governance.
 Low power high interest: These people are informed and assure to talk about no
conflicts can arise in a business. It involves employee in this grid.
 Low power low interest: These are the stakeholders who can examine individuals in
business. They have never waste their time and energy in gossips and communication. It
consist customers who have no power also don't have interest with management success.
Stakeholders Importance Expectation
Board of Directors It plays a significant role in
premier inn as it can operate
can conduction business
activities on behalf of
organisation shareholder's. It
refers to those persons who are
highly connect with business
and have aright to take
decision which helps in
generating growth in business.
Generate more profit in
business through their personal
contribution and they are try to
give right advise to its
subordinates which is helpful
for business.
Governance It refers to that team who can
generating procedure through
which business can easily
driven with their aim and
It basics needs is to getting
potential result by the help of
customer workforce,
shareholders and others who
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objective for acquiring best
outcome(Okumus and et.al.,
2017). It can create rules and
policies that can operate by
company for leads with ethical
business practices.
can bring a competitive edge
in business by processing right
decisions.
Investors These individuals plays a
important role in any kind of
business as they are the
backbone of company who can
push a company towards its
success and growth. Industry
can maintain a strong
relationship with investors.
These people provide finance
and capital in form of
investment which is highly
required for a business.
Increased revenue and
generate extreme profit. As
they invest high money for a
industry. They expected high
efforts and strong
commitments and require
passion to defend task with
unforeseen misshapen and
undesired situations.
Employee It is primary internal
stakeholders who is financial
significant and investing their
time for success of business.
These persons are critically
help business to meet with
specific targets. In case of
Hotel premier inn Human
resource is most important part
who can handle management
of organisation. They can work
for accomplish short haul as
They are working for getting
rewards and recognition. They
needs full trust, job security,
opportunities to contribute and
purposeful work that helps to
attain business goals. They
expected incentives, bonus,
higher appraisal,rewards and
recognition as it a effective
way to communication within
a workplace and enhancing
confidence and motivation that
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well as long term goal that can
bring a positive growth in
business and derive a
successful company mission.
helps to handling healthy
relationship with business
colleagues.
Customers It refers to those people
through which company can
run in marketplace. They
totally depend of supply of
company items and services
which keep them in
satisfaction. It is also a
important6 stake holder for
hotel as they highly utilise
business items and directly
connect with success of
business. It can confirm a deal
with standardised product.
Hospitality industry such as
premier inn includes lodge and
rooms that assist a hotel to
generate more revenue and
profit through payment,
advance booking etc. as it can
grow business towards
success.
They are formulated with their
needs and desire towards
products and services of
brands(Poddubnaya, 2019). It
generally required high
customer experience, Healthy
and friendly surroundings,
desire monetary valued focus
on rules and regulation
regrading certain situations.
These persons are highly needs
in terms of price, quality ,
convenience, choice and ideas.
PESTLE Analysis of Premier inn
It is used in marketing to examine the external factors which are not in control of the company .
It is a strategic framework which is used to study the outer factors which will help in corporate
strategy planning. It assists in knowing the market growth or decline ,potential and direction
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for operation. It is easy and widely used instrument by marketers to examine the macro
environmental factors that have an leading effect on an organisation, company or industry
(earlier known as PEST Analysis). Various factors are explained below-
 Political Factors- A company decides to expand its operations to a all new different state
to implement the policies that will affect the company's main day to day operations. The
government policy interferes in the economic and other factors that can create an impact
over a business. It considers the different trade traditions,political stability,labour
law,bureaucracy,tariffs trade restrictions and tax policy. The government has a strong
hold over the hotel industry if there is change in any policy of the government then
Premier inn can lose the vast majority of its economy.
 Economical factors–Economic factors include economic growth or
decline ,inflation,wage-rate, credit availability, cost of living and many others. These
factors are determinants to an economy's performance that directly impacts a company. In
case of Premier Inn, A big amount of investment is required for global investors to grow
in this field.
 Social factors– Social factors includes cultural norms and expectation,age
distribution,population growth rate ,health, media, religion, brand preferences and safety.
These factors are helpful for companies to make better plan their marketing strategies.
 Technological Factors – Technological factors includes Innovations and developments
in technologies. These factors directly create an impact on organization's daily
operations. if a company fails to match up the trend it may lose its place in the market. It
may have a direct or indirect impact on an industry. It includes technology aspect like R
and D activity,automation and many more. Premier Inn is updated 24/7 anything happens
will be uploaded within few minutes and can be seen by thousands of people online. It is
so quick that hotel owners can not do anything about it.
 Legal Factors- Legal factors have external and internal sides both on the performance of
the company. Certain laws have an impact on the business environment in a country. It
includes employment laws , discrimination law,consumer protection,industry specific
regulation,regulatory bodies,antitrust law,health and safety law. As per the case of
Premier Inn must follow the rules and regulations that creates a safe stay for everyone to
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survive otherwise customers will not choose this hotel. They also provide food with
proper hygienic and must be truthful about food items as per the needs of guests.
 Environmental Factors- Environmental Factors are mainly concerned with the effect of
the surrounding environment and the influence of ecological aspects. These include water
disposal laws,environmental protection laws,energy consumption regulation. Hotel
industry is mainly under pressure of both government and environmental groups to make
sure less
3 Strategic Analysis
SWOT Analysis of Premier inn
Premier Inn is one of the leading brand of the British hotel chain in the tourist and hospitality
sector restaurant company. SWOT Analysis is a tool to determine the firm's strategic planning
techniques used to help an organisation to see its strengths, weaknesses, opportunities and threats
related to business survival. It is a technique that gives assessment of company's competitive
position and to develop strategic planning. In the case of Premier Inn SWOT Analysis, the
strengths and weaknesses are the internal factors whereas opportunities and threats are external
factors. This analysis is a framework which helps a company to set its benchmark with its
competitors. Mainly, it is an proven management framework for a hotel like Premier Inn which
is an leading brand in the tourism and hospitality sector. From the above detailed SWOT
Analysis it explained that strengths and weaknesses of the Premier Inn. It is a Whitbread owned
big brand. It assists in examining the strengths and weaknesses of Premier Inn is explained
below-
Strengths
 Premier inn is exploring to new
markets of different countries.
 It has a strong brand image over the
years and a premium brand of hotels. It
is considered as cheap and affordable
for the customers.
 It is situated near airports and main
tourist attractions. This will help in
attracting the different segments of the
Weaknesses
 It has refund issues that will make it
difficult to fulfil customer's demand.
 There is less global presence as it has
hotels in few countries only.
 High competition is the main weakness
of the company sometimes they get
huge bookings and not able to serve all
the customers.
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society.
 It has won many awards like the most
prestigious organisation in the UK and
Best Budget Hotel brand.
 It has offers for its customers while
online booking and It is highly
advertise chain of hotels.
 In some cases the company is not able
to fulfil the demands of the customers
that will lead to the bad reputation of
the company.
Opportunities
 As the technology is getting increased
day by day that will decrease the cost
of advertisement at social media.
 As company is doing partnership with
other industries to diversify into
different industries.
 As travellers are looking for new
destinations that can be an opportunity
for the Premier Inn.
 It provides premium services to its
customers that will help them to attract
more customers in future.
Threats
 Holiday inn, Marriott and Ibis are the
competitors of the Premier Inn and It
has little control over this.
 External factors can create a threat for
Premier Inn because increased tax will
affect the profit margins.
 COVID-19 has affected business all
over the world. Premier Inn was
affected badly as well. Problems like
COVID-19 may arise out in future and
Premier Inn has to face the shortage of
customers like before.
 Reduction in number of tourists due to
disaster, covid and terror activities.
SWOT Analysis helps the company to identifies its strengths, weaknesses, opportunities and
threats which will help to reduce the risks and assess the four aspects of business. It is a simple
tool that will help to analyse what is best for company and devise a successful strategy for
coming future. It is mainly used by business entities to accomplish the internal and external
factors to take the beneficial decisions. It mainly helps the entity to gain the knowledge of
current and future position in the marketplace. It elaborates the visual image of the various
factors that will surely impact the business over the different objectives. Moreover, it is the
foundation of the evaluation of the internal as well as external factors that affect the success. It
8

is the most renowned tool for the entire analysis of the strategic position that will align the
organisational operations .
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Critical Evaluation of the SWOT analysis
The critical analysis of eh SWOT analysis have been discussed below.
 The strength of Premier inn is that the organisation has a wider reach which has been
helping the organisation to have a wider market reach while an increased contribution
towards the market growth.
 Another strength of the hospitality organisation is its locations which are easily accessible
and have a huge footfall of the customers. This has been helpful for the organisation in
attracting customers from several segments.
 The hospitality brand has a better brand image which has been established with the help
of several recognitions through winning of prestigious rewards.
 Premier Inn faces a drawback in terms of refund issues which need to be sorter out by the
organisation in order to enhance its brand image in the market. If the organisation does
not cope with the weakness then it will have to face severe drawbacks in the future.
 The Hospitality organisation is dependent upon only a limited geographical locations, in
order to expand its market share and global presence, the organisation will require to
expand into several markets.
 Another drawback or limitation of Premier Inn is that the hospitality organisation faces a
huge competition from the existing competitors. The organisation can focus upon its
services and products in order to gain competitive advantage within the hospitality
organisation.
 The weakness that has been observed in case of Premier Inn is that the organisation fails
to fulfil the demand of its customers and hence the organisation is required to invest upon
research and development in order to conduct a market research that will help in
analysing the market demands that can be further tackled by the organisation.
 Premier Inn has immense opportunity in context of the technological advances which
have been increasing on the day to day basis through regular up gradation. Hence Premier
Inn is advices to invest in the technological advances which will help in gaining
competitive advantage and also help the organisation to save its cost and efforts during
the operational process.
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 Also Premiere inn has immense opportunity in order to expand and diversify its business
within several markets and industries that will help the organisation to gain funds from
the several other substitute sources as well.
 The organisation can further analyse various destinations that are still not reached by the
competitors and there the organisation can gain the first mover advantage while providing
premium services at the economic rates in the hospitality market.
 The various competitors have been into the market which tend to decrease the market
share of the organisation and hence act as a threat. In order to deal with this, the
organisation can focus upon the merger and acquisition options in order to expand its
market share in the organisation.
CONCLUSION
The above report summarizes that strategy plays a very important role for businesses to achieve
success and to be more and more productive. The key role played by strategy in business is to
keep their business running in the long run and for which it provide critical insight and for
developing appropriate strategies by studying internal and external environment of the firm. The
report also consist the same, a critical review of the internal and external environment of the
company's environment which will help and enable the hospitality organization in making the
best use of available options in the market and grow rapidly. The hospitality environment is
competitive and highly aggressive, hence the analysis of the surrounding in the industry will
allow the company to be insightful and grab the most appropriate options available.
2

REFERENCES
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Agyekum and et.al., 2021)
(Ervural and et.al., 2018)
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(Eskerod and Larsen, 2018)
(Harrison, and Wicks, 2021)
(Kujala, J. and Sachs, S., 2019)
(.Pelyukh, O., Lavnyy, V., Paletto, A. and Troxler, D., 2021)
(. Saadi, A., Sahibi, H., Thys, S., Marcotty, T., Filali, H., Amarir, F., Rhalem, A., Kirschvink, N.
and Antoine-Moussiaux, N., 2021)
(Zahari, A.R. and Romli, F.I., 2019)(.Zhou, J., He, P., Qin, Y. and Ren, D., 2019.)
4