Considering the hotel industry, analyse the current business strategy it has adopted and provide two strategic recommendations that can ensure business success in that industry in the future.

In the first part you need to analyse Whitbread’s business strategy in the UK Hotel industry using Porter’s generic strategies framework. The first step is to identify the current business strategy pursued by Whitbread. For example, also look at the cost leadership definition and its sources of advantage, or broad differentiation strategy and its characteristic, or focus strategies. Having done that, you need to discuss the pros and cons of the strategy chosen by Whitbread. Revising the risks of cost leadership and broad differentiation would be helpful.

The second part of the question asks you to make two strategic recommendations that can ensure business success in the future. It is important to explain both what your recommendation is and to discuss why it is appropriate. Your answer needs to combine the evidence from the materials on the case company with theoretical concepts. You may demonstrate your recommendations with the aid of the diagram shown in Activity 14.11 (attached). A good answer to this part will combine a good analysis of the current business strategy with the strategic recommendations.
Finally, in identifying your strategic recommendations at a business level, you should also consider the corporate level recommendations you made . The strategic recommendations at the business level should be consistent with the ones at the corporate level.

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