Business Strategy Analysis: A Case Study on Whitbread Plc

This report presents a case study analysis of Whitbread Plc, a major player in the UK hospitality industry. It examines Whitbread's business strategy, focusing on the application of Porter's Five Forces model to assess the competitive landscape. The analysis delves into the threats and opportunities faced by Whitbread, evaluating the bargaining power of suppliers and buyers, the threat of new entrants, and competitive rivalry. Furthermore, the report explores various strategic models and concepts, including goal-based strategic planning, strategy maps, SWOT analysis, and PEST analysis, to provide a comprehensive understanding of Whitbread's strategic approach. The study concludes with an evaluation of how these models can facilitate effective strategy planning and enhance Whitbread's market position, offering insights into the company's long-term objectives and potential for growth.

Case Study about Whitbread
Plc

Table of Content
INTRODUCTION.......................................................................................................................................3
P3) Porter’s five forces model.................................................................................................................3
P4) Theories, concepts and models that can be incorporated by Whitbread organization which can
facilitate the same in strategy planning are as follows:............................................................................4
CONCLUSION...........................................................................................................................................6
REFERENCES............................................................................................................................................7
Books and Journal...................................................................................................................................7

INTRODUCTION
Business strategy refers to the long term plan or strategy for the company to achieve desired
goals. The business strategies are implemented by higher management of the company and it
includes planning of company’s objectives and goals, the product type, target customers and the
target market. Whitbread Plc. is a multinational company which is the largest operator of hotels
and restaurants in United Kingdom having UK’s most successful brands in hospitality industry
(Hasan, 2019). It has over 35000 employees for excellent customer experience in UK as well as
overseas. This report contains the idea about business strategic plan of Whitbread Plc.
P3) Porter’s five forces model
Porter’s five forces model helps the companies helps the companies in taking strategic
decision and analyzing competition in the market. This model focuses to build a sustainable
competitive advantage in hospitality industry. These models are discussed below:
Threat of new Entrants: - Whitbread can overcome from threat of new entrant by innovating
new product and services. It will give old customers to try again the product and service of the
company which helps company to build economies of scale which lowers the per unit fixed cost
of product or services (Rashid, 2018). New entrants will rarely like to enter in a dynamic industry
of hospitality and to compete with the company like Whitbread the company needs to have a
huge fund which is not possible to enter a dynamic market with such huge investment.
Bargaining power of Suppliers: - Whitbread can develop third party who manufactures solely
for the company and as they are solely depend on the Whitbread they will have less bargaining
power. This technique will not only reduce the bargaining power of suppliers but also provide
dedicated suppliers to the company. Bargaining power of suppliers also get reduced by having a
efficient supply chain with so many suppliers.
Bargaining power of buyers:- If Whitbread increase and diversify its customers base then it can
manage the bargaining power of buyers and this can be achieved by introducing new product,
target market segment which will required adaptation of product diversification strategies.
Offering innovation and excellent customer experience helps to build loyalty and raise the cost of

switching to other company which led to reduce in the bargaining power of buyer. It will also
help to strengthen company’s competition position in the market (M Rajasgeran, 2018).
Competition Rivalry in existing competitors: - Whitbread has 35000 employees focused and
dedicated to fulfill the needs and expectations of their customer. This focused workforce helps
the organization to create loyalty in their buyers and develop long term relationship with them
which ultimately helps to raise the switching cost. In some cases after researching for new
market segments collaborating with competitors can be beneficial to rule that segment (Bower,
2018).
Threat of substitute product: - The products and services offered by Whitbread is better than
the available substitutes in the market. It believes in offering a high value of their customer’s
money with great customer experience. They always focus on improvement of their quality and
setting a basis of strong differentiation to discourage people from going to substitute products
(HILTON, 2020).
P4) Theories, concepts and models that can be incorporated by Whitbread organization which
can facilitate the same in strategy planning are as follows:
Whitbread is an organization that can excel in it’s respective industry by enhancing its
capitalization on innovative plans and strategies in order encourage and enhance the current
position of the company in the target market environment. There are numerous strategies that can
be optimized by Whitbread so as to promote its operations in the target market and to provide
hard competition to the opponent companies as well. In order to devise and develop brilliant and
outstanding strategies, the business organization can utilize and incorporate several essential
models and theoretical concepts (Bower, 2016). Some of the models and theories that can be
utilized by the Whitbread are listed below:
Goal based strategic planning: It a concept wherein an organization set the specific goal for
itself and specify time duration required to accomplish or active that particular goal. This theory
basically helps the organization in creating a vision for the organization and also involves
forming strategies and plans in order achieve that vision. This concept is majorly utilized in case
an organization wants to set goals and objectives for a longer time phrase i.e. 3 to 6 years.
Whitbread can also apply the same approach in its organization and can set important goals that

need to be achieved by the organization in order realize added advantages over the competitors
or in the target market. The business organization can also assign a time limit to the same in
order to form a target for the company and motivate the employees to attain the given target
effectively and efficiently. This concept can help Whitbread in achieving its long term objectives
and goals and will also enhance the overall performance of the employees working in the
organization as well.
Strategy Map: Whitbread can also formulate a strategy map in order to exchange and
communicate the essential information regarding the decision making and strategy planning
within the organization in a systematic and smooth manner so as to reduce or eliminate the
chances of miscommunication in the organization and in order to promote effective interaction in
the same. This tool helps the organization to unite the goals of the company in a centralized way
and to position a clear depiction of the same in front of the employees working under the
organization. It also helps the company in identifying the areas which require more work in
relation with strategy formulation and assist in developing appropriate strategies for the same.
Hence, Whitbread can optimize on this tool in order to make a good lead in the market and gain
fruitful rewards in the same (Tan, 2019).
Swot Analysis: It is a model which incorporates the identification, examination and assessment
of the particular strengths and weakness of the business enterprise as well as opportunities and
threats of the same. The identification of these elements can assist the company in realizing
where they currently stand in their respective market environment and what essential steps and
strategies they can formulate in order to capitalize and optimize great opportunities from the
environment and respond and cope up with the threats prevailing in the same. Whitbread can also
apply this model to its business organization in order to identify its existing capabilities and
position in the market environment and formulate innovative strategies that enhance the
organizations ability to capture good opportunities in the market. Swot Analysis will also help
Whitbread in forming contingency plans as the analysis provide a brief about the existing threats
in the market and the company can identify them and formulate the contingency plans in
alignment of the same so as to increase the productivity of its organization’s operations and
management.

Pest Model: It can be characterized as a model that provides assistance to the business
organization in analyzing the environment that is extrinsic to the organization. This model is
considered to be one of the most influential models for the business organization as the
utilization of the same can change the entire planning and strategy formation of the company
(Ferreira,2018). It facilitates the organization on giving more emphasis to the realities and
relevancy in the market and less emphasis over the assumptions in the market. Thus, serving the
organization in their decision making process and enhancing their decision making power. It
involves the identification and assessment of four factors (Political factor, technology factor,
economic factor and social factor) in order to gain significant insights about the same so as to
enhance the awareness in relation with the business/ market environment and formulate the
organizations strategy in association of the same. Pest model can be incorporated by Whitbread
as well in order analyze the business environment of hospitality industry and form relevant
strategies in order to adjust to the trends in the same. This model can also help Whitbread to
acquire an appropriate perspective about the market and be prepared with the necessary
resources and strategies in order to fiddle with to the dynamic atmosphere of the market.
CONCLUSION
It can be concluded from the above information that strategy planning and formulation
plays a major role in enhancing and encouraging the operations of the business organizations.
Strategies are considered as a necessity in order to dominate the market and create an effective
impact in the same. It is extremely prominent for Whitbread to form appropriate and suitable
strategically inclined plans so as to acquire a good share of market in the hospitality industry.
The company can take into considerations various concepts and models and align the same to the
company in order to increase the revenue and profits of the company in the longer run. These
above elaborates models can also facilities the company in expansion of its business in the
forthcoming years and to achieve its short term and long term objectives as well.

REFERENCES
Books and Journal
Rashid, N.A., 2018. 'Factors Determining Profitability': A Study on Whitbread PLC Hotel in United
Kingdom. Available at SSRN 3181638.
Bower, J., 2018. Whitbread: routines and resource building on the path from brewer to
retailer. Management & Organizational History, 13(1), pp.1-23.
Bower, J., 2016. The Whitbread umbrella: A structural response to shareholder activism. Enterprise &
Society, 17(4), pp.874-903.
Tan, M.S., 2019. Analysis of Firm-Specific and Macroeconomic Factors Affecting the Performance of
Hotel Sector in United Kingdom: Profitability and its Determinants.
Ferreira, J., 2018. Fostering sustainable behaviour in retail: Looking beyond the coffee cup. Social
Business, 8(1), pp.21-28.
M Rajasgeran, S., 2018. Operational Risk and Its Determinants’: A Study on Hotel and Catering Industry
in United Kingdom. Available at SSRN 3181629.
HILTON, M., 2020. Personal resilience in the hospitality experience. Managing Hospitality Experiences,
p.67.
Hasan, M., 2019. The Effectiveness of e-learning in Staff Training to Gain Hospitality Organizational
Excellence. AIUB Journal of Business and Economics, 16(1), pp.252-267.