Whitbread
What’s brewing at Whitbread?
In the annual report for 1999/2000 Whitbread Plc reported a total turnover of £2.9 billion with operating profit of £332 million. The sale of beer, one of seven business units, accounted for approximately 38% of turnover. Other important revenue was generated by closely allied businesses such as pubs and restaurants.
Ten years later and the Annual Report of 2009/10 showed a markedly different company. Total revenue was £1.44 billion and, despite a 250 year history as a brewer, Whitbread no longer brewed beer but now concentrated on hotels, restaurants and coffee.
Using company annual reports and industry information from credible sources you are required to analyse and assess the development of Whitbread by answering the following questions:
1. Using Porter’s Five Forces framework assess the attractiveness of the hotel industry for Whitbread around the period 1999-2005. 30 marks
2. Using Porter’s generic strategies identify and discuss Whitbread’s approach to competing in: a. The hotel market b. The coffee market 30 marks
3. The corporate strategy literature distinguishes between related and unrelated diversification. To what extent does the development of Whitbread in the years since 2000 illustrate this theoretical discussion of diversification? 30 marks 4. Has the transformation of Whitbread been successful? Support your answer with appropriate data. 10 marks Submission Deadline: 9.00 am Monday 26 March 2012
(Assignment Box and StudySpace Turnitin)
A hard copy and a soft copy of the report must be submitted, with the word count listed on the front page. The hardcopy must include an assignment front sheet. It should be a professionally written business report, suitable for presentation to a
In the annual report for 1999/2000 Whitbread Plc reported a total turnover of £2.9 billion with operating profit of £332 million. The sale of beer, one of seven business units, accounted for approximately 38% of turnover. Other important revenue was generated by closely allied businesses such as pubs and restaurants.
Ten years later and the Annual Report of 2009/10 showed a markedly different company. Total revenue was £1.44 billion and, despite a 250 year history as a brewer, Whitbread no longer brewed beer but now concentrated on hotels, restaurants and coffee.
Using company annual reports and industry information from credible sources you are required to analyse and assess the development of Whitbread by answering the following questions:
1. Using Porter’s Five Forces framework assess the attractiveness of the hotel industry for Whitbread around the period 1999-2005. 30 marks
2. Using Porter’s generic strategies identify and discuss Whitbread’s approach to competing in: a. The hotel market b. The coffee market 30 marks
3. The corporate strategy literature distinguishes between related and unrelated diversification. To what extent does the development of Whitbread in the years since 2000 illustrate this theoretical discussion of diversification? 30 marks 4. Has the transformation of Whitbread been successful? Support your answer with appropriate data. 10 marks Submission Deadline: 9.00 am Monday 26 March 2012
(Assignment Box and StudySpace Turnitin)
A hard copy and a soft copy of the report must be submitted, with the word count listed on the front page. The hardcopy must include an assignment front sheet. It should be a professionally written business report, suitable for presentation to a
References: You may use credible data sources external to the case study (eg FT, The Economist, company annual reports & accounts), particularly for quantitative data. Company annual reports can be very helpful. The Harvard referencing system must be used.