Organizational Analysis and Decision Making

The provided assignment is an in-depth study of organizational analysis techniques, focusing on the Premier Inn hotel as a case example. It utilizes PESTEL and SWOT analyses to evaluate internal and external factors influencing the organization's decision-making processes. The report also explores the interrelation between different functional departments within the organization. By examining these aspects, the assignment aims to provide insights into effective organizational management and decision-making strategies.

Business and Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Types and Purpose of Different Organization.......................................................................1
P2 Size and Scope of Different organization...............................................................................2
M1 Link between Structure, Size & Scope with company Objective and product.....................3
P3 Relation Between Different Functional Department of Organization....................................4
M1 Advantages and Disadvantages of Relation Between Functional Department.....................4
TASK 2............................................................................................................................................5
TASK 3............................................................................................................................................5
P6 Interrelation of SWOT with External factors.........................................................................5
D2 Influence of External and Internal factor on Decision Making of organization....................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Business environment is sum of internal and external factors that influence the business.
In a business the micro and macro factors affects and influences different areas (Allen and
Kraakman, 2016). Changes in the external and internal factors are not in control of the
organization but they can affect decision making, business purpose, objectives and company
goals. This report is explaining different factors that can influence business environment of an
Premier Inn Hotel. This hotel is situated in central London. It was founded in year 1987.
The study is explaining different types of organization with their purposes and legal
structure. The report is giving the brief how the organization purpose, and structure linked to
objectives of the organization. Relationship between different organizational function s and their
effect on the business objectives is also explained in the report. The impact of external and
internal factors on the organization are explained in the report. The impact of internal factors on
the macro factors of the organization is given in the report. The study explains how the internal
and external factors affect the decision of the organization.
TASK 1
P1. Types and Purpose of Different Organization
There are three types of organization a on the basis of the ownership of the company.
This three types are public, privet and voluntary organization. The purpose ans business goals
more explain about the type of organization.
Public Organization
The public organizations are the organizations which are normally owned and run by the
government. Through this type of company government provide different kind of services to its
citizens. The purpose of the organization is top serve the people and charge them for it. The
public organization does not seek for profit generation (Galaskiewicz, 2016). The vision of this
kind of organization is to provide the best service to the people of nation. The legal structure of
public company is public Limited company.
Voluntary Organization
The voluntary organization are also known as non profitable organization, common
interest association or union. These organizations are the group of people who are willing to
provide their services as voluntary work. The purpose of the organization is to serve all the
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human beings who are in condition of risk and their rights are in danger. The purpose of
voluntary of organization is not to generate profit and provide all services for free (Roberts, 2018
Argyris, 2017). The funds required in organization is either collected from charity or donation.
Private Organization
The private organization are the which are owned or run by single person or group. The
purpose of private organization is to generate the profit by selling product and services to the
people (Young and Ghoshal, 2016). This company charges the customer for product or service
and generate profit from it. The legal structure of private company is private limited company.
P2 Size and Scope of Different organization
According to size the organizations are classified in different types which are small size
organization, Medium sized enterprise and large size organization.
Small Enterprise
The small sized organizations are independently owned and run by individual person.
The number of employee in this type of organization are less than 50. the annual revenue of
small business is around 5- 10 million. These are the fastest growing organization in United
Kingdom (Chang, 2016). The market share of small and medium size business is 60% of all
private sector contribution in the economy of country. This type of organizations are under
transition state. The growth of their economy is faster than other business. Davison Canners and
Fourex are the example of small size organization.
Medium Organization
The medium size organization are not subsidiary and independent and number of
employees in this kind of organization are maximum up to 250. The annual revenue of medium
size organization is between 10 to 1 billion. The growth of SME is faster than other group and
the market share of SME is Around 6 percent of private sector contribution in the countries'
economy (Forés and Camisón, 2016). This type of business are in the state of multinational
organization and the growth is lesser than small size organization and more than large size
organization. Acuity and Riot games are the medium size organization in United Kingdom.
Large Size Organization
The large size organization are consists of at least 1000 and more than 1000 employees
and the annual turn over of large size organization is more than 1.5 Billion Euros. The large size
organizations are growing constantly in UK. The large size organization are holding 17.5 percent
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of all businesses in UK. The large business are global organizations and their profit and business
is increasing with constant growth (O'Neill, Beauvais and Scholl, 2016). Premier Inn and
Microsoft are the global level company which are operating all over glob.
M1 Link between Structure, Size & Scope with company Objective and product
Public organization
As per the legal and organizational structure the power is distributed to government
officials and top authority. This help the employee of organization to purely work to provide
good service to citizens ans the proper delivery of service is ensured by company authority. The
organizational structure help in better implementation of government policies. The size of public
organization is large and number of employees in organization are huge. The personal finance of
this company employees if different from the finance of the company. This type organizational
follows the vertical hierarchy structure in which the power is allocated to the top most authority
of the company. The purpose of the company related to the legal and organizational structure of
company. The example of public company is NHS which is providing services in nearly
countries of European continent.
Voluntary Organization
The organization structure used in voluntary organization is depended on the purpose,
vision and on the number of group members. Normally voluntary organization follows the flat
structure. Services of the organization are for free and so there are no different positions for the
employees. The power distribution is even in all employees. The legal structure of this voluntary
or non profitable organization is unincorporated association, trust and company limited. The
example of voluntary organization is Red Cross. The Red Cross is serving the people all over the
world who are in risk. Red Cross protect rights of people who are in danger.
Private Organization
The structure of private organization is based on the products and number of employees
in the organization. The authority and power is allocated to the employees as per their position
experience and knowledge. This type of organizational structure help the company to achieve
goal with full efficiency. The Premier Inn Hotel is an example of private company. The private
company can be run as Solo ownership and partnership. The private organization follows
different organizational structure which are based on the size and purpose of the company.
Normally private companies use hierarchy and matrix structure (Kandampully, Zhang and
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Bilgihan, 2015). The goal of the company is to generate profit so as per the hierarchy structure
power hold by company owner or board members.
P3 Relation Between Different Functional Department of Organization
The different functional department of Premier Inn are Human resource management,
Finance, Purchase, security, technical and kitchen department. The business of the organization
is based on the coordination and relation of different department. The function of all department
are correlated to each other.
Human Resource Management Department
The function of Human Resource Management is related to all department. HRM
manages the employee data of all departments. HRM performs recruitment, hiring, training and
development for employee (Pirani and Arafat, 2016
Lopes, 2016). It is job of HRM to manage the work place environment and employee relation.
This how the HRM is connected to all departments.
Finance Department
The work of Finance department is to manage the finance and economy related work and
problems in the organization. Finance department keeps the record of funds and financial
transition of other departments. The allotment of funds is also conducted by finance department.
All departments of Premier Inn are dependent on finance department for fund related issues.
Marketing Department
Marketing department manage the advertisement and promotion of the company services
to improve the company business performance. For the marketing operation the marketing
department is dependent on the operation and finance department. The operation department
provides the details of Premier services which are need to be promoted (Koren Solvang, Hanisch
and Reinhardt, 2016). The finance department allot fund for the marketing operation. This how
marketing department is related to other department.
Operation Department
The work of operation department is to manage the working and performance of the
company. Operation manages all the work and procedure of Premier Inn. For better performance
operation department needs to communicate with particular department for related operation.
M1 Advantages and Disadvantages of Relation Between Functional Department
Advantages
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1. Improves the performance of organization.
2. The consumer satisfaction improves.
3. Reduce the chances of failure.
4. Information transfer becomes effective.
5. It improves work load management.
Disadvantages
1. Make the work procedure complex.
2. Consumes more time.
3. Lengthy procedure.
4. It can cause misunderstanding.
5. Misunderstanding can create conflict between the departments.
TASK 2
Covered in PPT
TASK 3
P6 Interrelation of SWOT with External factors
The strengths of the organization are the positive products and services of the hotel. The
different external factors like political factor can positively or negatively affect strength of
organization. For example the non-vegetarian food of the organization is its strength. The
political or legal decision related to bane on non-vegetarian food can cause damage to company
revenue. Weakness related to pricing policy of the organization can be improved by
implementing better and effective tax policy by government (Scarborough, 2016). Environment
around the local area can allow hotel to accommodate more guests. The positive technological
changes may allow the hotel to use multi level parking system in hotel to provide more space.
The changes in tax policy can provide more option to hotel Premier Inn to manage pricing policy
as per the requirement of consumer. Changes related to food and safety law can affect the
restaurant and bar business of the organization.
D2 Influence of External and Internal factor on Decision Making of organization
The internal and external factors can affect the decision making of the organization. The
internal factors of the organization are employee, supply chain, customer and stakeholders. The
decision making of the company is highly affected by these internal factors. If the company
wants to take some decision they need to consider these factors (Burns, and Dewhurst, 2016).
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The performance of the company is dependent on the these internal factors. The employee
satisfaction and customer satisfaction are most important to the company. Without support
consumer and employees hotel Premier Inn can't take any decision related to them because it can
affect the staff retention rate. Also this can force the customer to move on to other product. This
how the internal factor can affect the decision making of the organization.
The external factors like political, economic, social, technological, environmental and
legal factors affect the decision of Premier Inn. The political changes related to the tax policy can
force the organization to take decision to change pricing policy. The legal law change in food
and security affect the decision making of organization by forcing them to take decision under
legislation. The social factors affect the decision related to restaurant business. The organization
have to take decision as per the culture of local people. The environmental factors influence the
decision making of Premier Inn to implement different changes in the organization, the decision
taken by hotel should be ethically and sustainable. This how the internal and external factor
affect the decision making of the organization.
CONCLUSION
The report is concluding the brief of business environment of Hotel Premier Inn. Types
of different organization has been studied in the report. The internal and external factors of the
hotel are evaluated through the study. Interrelation of different functional department has been
evaluated in the study. By PESTEL analysis the influence of external factors has been learned in
the report. By the SWOT analysis internal factors of the organization are evaluated through the
report. The relation of SWOT with External factor is concluded in the report. Influence of
internal and external factors on the decision making of Premier is studied through the study.
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REFERENCES
Books and Journals
Allen, W.T. and Kraakman, R., 2016. Commentaries and cases on the law of business
organization. Wolters Kluwer law & business.
Argyris, C., 2017. Integrating the Individual and the Organization. Routledge.
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan
International Higher Education.
Chang, J.F., 2016. Business process management systems: strategy and implementation.
Auerbach Publications.
Forés, B. and Camisón, C., 2016. Does incremental and radical innovation performance depend
on different types of knowledge accumulation capabilities and organizational
size?. Journal of Business Research. 69(2), pp.831-848.
Galaskiewicz, J., 2016. Social organization of an urban grants economy: A study of business
philanthropy and nonprofit organizations. Elsevier.
Kandampully, J., Zhang, T. and Bilgihan, A., 2015. Customer loyalty: a review and future
directions with a special focus on the hospitality industry. International Journal of
Contemporary Hospitality Management. 27(3). pp.379-414.
Koren Solvang, P., Hanisch, H.M. and Reinhardt, J.D., 2016. The Rehabilitation Research
Matrix. Producing knowledge at micro, meso and macro levels.
Lopes, M., 2016. The hospitality industry (Doctoral dissertation).
O'Neill, J.W., Beauvais, L.L. and Scholl, R.W., 2016. The use of organizational culture and
structure to guide strategic behavior: An information processing perspective. Journal of
Behavioral and Applied Management. 2(2). p.816.
Pirani, S.I. and Arafat, H.A., 2016. Reduction of food waste generation in the hospitality
industry. Journal of Cleaner Production. 132. pp.129-145.
Roberts, J., 2018. Multinational business service firms: development of multinational
organization structures in the UK business service sector. Routledge.
Scarborough, N.M., 2016. Essentials of entrepreneurship and small business management.
Pearson.
Van Wormer, K. and Besthorn, F., 2017. Human behavior and the social environment, macro
level: Groups, communities, and organizations. Oxford University Press.
Young, C. and Ghoshal, S., 2016. Organization theory and the multinational corporation.
Springer.
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