CASE STUDY

Case Study: Coppice plc



Case Study: Coppice plc

Introduction

This paper focuses on the financial status of Coppice plc for 3 years that are from 2009 to 2011. This study will describe the importance of choosing the right strategy. Internal and external analysis of Coppice plc is made in order that Manchester Money Universal plc (MMU) makes the investment decision. It includes the model of the strategy in use. The strategic choice of Coppice plc makes the company a leader in the industry. Coppice plc (Coppice) is a small hotel chain with a number of stores in the United Kingdom. Coppice plc specializes in city centre low cost hotels. Its advertising slogan is “No frills, nice bills”. The company has become an example in the strategic management because of its successful implementation of the strategy. Internal and external analysis of Coppice plc shows the set of managerial decisions and actions that determine the long-run performance of a corporation. It includes environmental scanning, strategy formulation, strategy implementation and evaluation and control.

Industry Overview

The hotels & motels industry value consists of all revenues generated by hotels, motels and other accommodation providers through the provision of accommodation and foodservice. The value does not include any revenues generated through other interests, such as casinos, shops and telecommunication services. The industry is segmented according to the origin of the revenues (leisure consumers and business consumers). Any currency conversions included within this report have been calculated using constant 2010 annual average exchange rates.

The UK hotels and motels industry produced low levels of growth in 2007 through to 2009. The industry returned stronger growth in 2010 and is expected to grow at more stable rate towards the end of the forecast period. The UK hotels & motels industry had total revenues of $22,825 million in 2010, representing a compound annual growth rate (CAGR) of 2.5% between 2006 and 2010. In comparison, the French and German industries declined with compound annual rates of change (CARCs) of -0.4% and -1% respectively, over the same period, to reach respective values of $36,445.9 million and $21,450.6 million in 2010 (Tiltscher, 2010, 113-115).

The leisure segment was the industry's most lucrative in 2010, with total revenues of $15,704.9 million, equivalent to 68.8% of the industry's overall value. The business segment contributed revenues of $7,120.1 million in 2010, equating to 31.2% of the industry's aggregate value. The performance of the industry is forecast to accelerate, with an anticipated CAGR of 4.8% for the five-year period 2010 - 2015, which is expected to drive the industry to a value of $28,895.4 million by the end of 2015. Comparatively, the French and German industries will grow with CAGRs of 4.6% and 3.9% respectively, over the same period, to reach respective values of $45,544.9 million and $25,946.3 million in 2015. Forecasts show that the expansion of chain restaurants will largely concern midpriced outlets or expansion into smaller areas. In addition, organic restaurants will become more prevalent, though their location will be influenced by owners ability to locate suitable ...