tutor2u Exam Coaching & Revision Workshops

Get Summer 2014 Right First Time with tutor2u Exam Coaching & Revision Workshops

AS & A2 Economics   |  AQA AS & A2 Business and AQA & Edexcel GCSE Business

Business Studies Resources Popular resources on the {my channel} blog Resource tags for the blog RSS Feed for the blog Twitter feed for this blog Teacher Email Resource Newsletter Category listing for this blog Business Studies Blog Home Page
Tracker Pixel for Entry

Froth on the beer versus froth on the coffee?

Tuesday, February 28, 2012
Print Tweet This!Save to Favorites

A short BBC video on Whitbread’s huge strategic shift from brewing to retailing coffee and budget hotels.

Whitbread abandoned beer brewing and pub retailing and off licence sales, an industry in which had been a significant presence since 1742. By 2001, the sector had low profits growth and declining sales. Capital has been diverted into areas with higher growth coffee shops and budget hotels. Whitbread’s main brands include Costa Coffee, Premier Inns.

The firm’s history goes back to 1742 when Samuel Whitbread established a brewery, 8 years later a largest breweries was established in Chiswell Street, in London.

Since the firm’s exit from brewing in 2001, it has been involved in a series of asset sales and acquisitions. In 2007 Whitbread sold David Lloyd Fitness Centres for £925m. Mitchells and Butlers paid c.£500m to purchase 239 pub restaurants from Whitbread in 2006.  The disposal of its 50% stake in PizzaHut’s UK operations realised £112m. The sale of the TGI Friday’s franchise brought in £70.4m., Whitbread also raised £117m from its 23.75% stake in the Britvic soft drinks company.

Whitbread used the capital to lower its debts,and to fund investment in Costa Coffee and Premier Inns. The firm’s mission statement harks back to
links with Samuel Whitbread. “Although our core businesses have changed, we remain true to Samuel’s founding spirit by genuinely focusing on our customers, striving for the best and recognising that progress comes from innovative thinking.”

In 2011 Whitbread bought up Coffee Nation which ran self service coffee machines at motorway service stations and airports, to complement its Costa Coffee operations. Given the low economic growth and falling real incomes in the UK, the Whitbread group has invested heavily in operations in China,  opening 71 new stores in China. The Chinese market may offer great opportunties for sales and profit growth as incomes rise.

Whitbread is a good example of a firm which has reinvented itself, but it is pertinent to ask if a period of organic growth and consolidation might be preferable to growth through acquisitions and disposals.


blog comments powered by Disqus

AQA A2 Business Studies BUSS4 Section A Research Theme for 2014

Revision workshops for business studies from tutor2u

Business Studies Revision / Exam Coaching Workshops Coming Up:

GCSE Business (AQA Unit 2 & Edexcel Unit 3)

Thursday 24 April 2014 - Birmingham
Friday 25 April 2014 - London (Stratford City)

AQA AS & A2 Business (BUSS1 & BUSS3)

Monday 20 January 2014 - London (Stratford City)
Tuesday 21 January 2014 - London (Fulham Broadway)
Wednesday 22 January 2014 - Bristol (Cribbs Causeway)
Thursday 23 January 2014 - Birmingham (Star City)
Friday 24 January 2014 - Manchester (Salford Quays)

AQA AS & A2 Business (BUSS2 & BUSS4)

Tuesday 25 March 2014 - London (Stratford City)
Wednesday 26 March 2014 - London (Fulham Broadway)
Thursday 27 March 2014 - Bristol (Cribbs Causeway)
Friday 28 March 2014 - Birmingham (Star City)
Tuesday 1 April 2014 - Newcastle (Metro Centre)
Wednesday 2 April 2014 - Leeds (The Light)
Thursday 3 April 2014 - Manchester (Salford Quays)

Post-Easter (BUSS1/BUSS2 Combined & BUSS4)

Monday 28 April 2014 - London (Stratford City)
Tuesday 29 April 2014 - London (Fulham Broadway)
Wednesday 30 April 2014 - Bristol (Cribbs Causeway)
Thursday 1 May 2014 - Birmingham (Star City)
Friday 2 May 2014 - Manchester (Salford Quays)

Try some of these superb starter activities for Business Studies:

Business Studies Blog Economics Blog
Geography Blog Politics Blog
   
Give It A Go! Blog Sociology Blog
   

tutor2u online store

PowerPoint Lesson Activities Teacher Conferences & CPD Courses
Exam Coaching & Revision Workshops Pre-release Case Study Toolkits
A Level Economics Teaching Support Resources for Business Studies
Digital Magazines  


Enter your Email



TBBLE 2014 - Teaching & Learning Resources for Business Studies

50+ New Teaching & Learning Resources for GCSE, A Level & IB Business

Latest resources

Resource categories Blog RSS feed Blog RSS Feed
© Copyright Tutor2u Limited 2013 All Rights Reserved