Whitbread Business Analysis

Whitbread is an international company headquartered in Dunstable. The major industry the company is involved into is hospitality with different subsidiary companies. The history of Whitbread started in 1742, when Samuel Whitbread founded the company. Initially, the company focused on purpose-built mass-production breweries. However, the modern Whitbread, as the world knows it today, was founded in 2001, when the owners sold all breweries and focused on hotel and restaurant industries. This change was not a desire of one of the company owners but a natural process dictated by the ending of brewing tradition in the UK (About us 2013). In 1995, Whitbread acquired Costa Coffee with all its 41 stores nationwide having become involved into coffee

Working either for or against a company, it is important to guarantee that any company cares for its reputation as much as for its finances. Even though company reputation is not included in the company assets and cannot be touched physically, company income and success depend on it by being a factor that “affects investor confidence, staff recruitment, supplier attitudes, and a myriad of other stakeholders in its capacity as relationship capital” (Adeosun & Ganiyu 222). Analysing the importance of reputation in company success, it should be noted that positive stakeholder behaviour depends greatly on positive corporate reputation. Thus, the performance of the company and its results depend on the opinion that people have about it (Gatzert & Schmit 2015). Once spoiled, it is very difficult to renew positive reputation even if a company has chosen an effective business strategy. Goldberg, Cohen, and Fiegenbaum (2003) have offered four reputation strategies which may be applied to any corporation, namely “dynamic exploitation of existing assets”, “development of core competencies”, “image management”, and “strategic alliances” (p. 168). Depending on the needs and the reputation problems, the company should select any of the offered options and incorporate them into

In 2013, the company managed to report about more than £1 bn sales, having increased them by 22% during the year. If to speak about the company sales in the UK, the total sum increased by 24% to £592 m without franchised outlets (Costa breaks through £1 bn sales mark as tax anger leaves Starbucks suffering in 2013). These facts could not leave the brand without public attention and raised interest in the company. The experience of Costa Coffee in Totnes in 2012 can be considered as a good example of creating positive reputation. Having a desire to launch in the town, the management decided to refuse from idea referred to a letter written by “the people of Totnes” concerning the fact that “Totnes is pretty independent and different as a town, and we're seeking to protect that” (Costa Coffee pulls out of Totnes 2012). A closer look at the situation may show that the city had already 41 independent coffee outlets, and a national leader could change everything. Having decided to refuse from the initial plan, the company has shown interest in human thoughts and has created a positive reputation as a company which listens to people’s opinion and does everything possible to adjust to it. Public relations analyst Phil Morgan has confirmed that “It was a sensible decision for a growing business. Responsiveness is the key to building trust and reputation and is as important as the quality of their coffee” (Costa Coffee