Understanding Business Organisation

This article discusses the organizational structure of businesses, with a focus on Travelodge, a private hotel company. It covers the different types of organizational structures, the importance of organizational structure on productivity and profitability, and Travelodge's hierarchical structure. The article also includes a business environment analysis of Travelodge, using SWOT and PESTLE analysis to assess internal and external factors affecting the company. The importance of technology and legal factors are also discussed. Course code and college/university not mentioned.

Understanding
Business Organization

Table of Contents
INTRODUCTION ...............................................................................................................................3
MAIN BODY.......................................................................................................................................3
Organisational Structure:......................................................................................................................3
Business Environment Analysis:..........................................................................................................4
CONCLUSION ...................................................................................................................................7
REFERENCES.....................................................................................................................................8

INTRODUCTION
Businesses are run by the organization and the structure of the organization may be simple
or complex. If someone want to start their own business then one has to understand about the
organizational structure (Semrau and Biemann, 2022). Business organization is a body formed for
easily doing business activities or a way of engaging with the market. The project involves the
business environment analysis of Travelodge. It involves all the external and internal factors
affecting the business organization. SWOT analysis is used for analysing internal factor whereas
PESTLE analysis is used for analysing external factors. Both analysis give a good idea of
company's ability to perform in the market as well as growth factors which make it sustainable
(Shankar and Shepherd, 2019). Travelodge is a private hotel company founded in 1939 and
headquartered at New Jersey (United States). The company is known for its hotel network around
the world and in-built with advanced technology. It is not easy to initiate all hotels available in
different parts without efficient and effective management. It is generally operating in 435
Locations. Corona pandemic of 2019 has seriously affected big businesses and Travelodge has also
faced its severe affects. The company has fair pricing and well known for business stays.
MAIN BODY
Organisational Structure:
Organisational structure is the framework of an organization and it includes different orders
as well as ranks. There are different forms of organizational structures followed in an organization
such as hierarchical, functional, divisional, matrix and other complex structure. The organization
involves two basic approaches - top down approach and bottom up approach (Browning and et.al,
2020). Different organizational structure follows different approaches like hierarchical organization
follows top down approach. These approaches are based on chain of command. Chain of command
is basically the flow of information from upper management to lower management and vice-versa.
The structure of an organisation highly affects its productivity as well as profitability (Budzinski
and Kuchinke, 2020). The organization involves many employees and the complexity arises in their
handling. The complexity is seen in big organizations which makes their organisational structure tall
as it includes huge number of employees and is needed for better operational efficiency.
The hierarchy as well as powers are pre-determined in hierarchical structure. Travelodge has
a hierarchical organization structure. Hierarchical organisation is most commonly used by large
businesses and preferable in hotel industry. This structure involves one supreme head or senior
management and other officials follows the order. The chain of command is strictly followed in

hierarchical organization. No officials has the power to disobey the order of upper management.
Travelodge has its operations in different countries and hierarchical organisation structure is the
best one to handle all operations uniformly. The chief executive officer (CEO) of Travelodge is
Craig Bonnar. All the decisions taken by the CEO is final and all the lower officials need to follow
it strictly.
Travelodge is a big organisation possess a hierarchical organisational structure and the
structure is quite tall as it has to handle many locations at once. Tall structures are signal of big
organisation and there is a need of strict control over its employees as operational efficiency is quite
low in big set-ups (Kornberger and Vaara, 2022). So, to improve control on them there is need of
regulatory bodies for proper functioning and productivity.
Business Environment Analysis:
Business Environment is defined as the factors related to business which may increase or
decrease its productivity. The environment of business involves the external as well as internal
factors. Internal factors involve the factors which are directly related with the company or under its
control while external factors are outside factors which affect the productivity of the company (Cha
and Roberts, 2019).
SWOT Analysis:
SWOT Analysis is a strategic planning as well as management technique which will help
organization in assessing its capabilities and improving its performance in the market (Colovic and
Mehrotra, 2020). This analysis gives organization an idea about its competitors as well as region of
improvement. It involves both external and internal factors. This analysis involves strengths,
weaknesses, opportunities and threats of an organization. Internal factors involve the company's
strength as well as weaknesses while external factors involves opportunities and threats of the
organization. Travelodge is highly competitive in the hotel industry as it is equipped with efficient
management and is equally trying to improve its services for customer.
Strengths:
Travelodge is equipped with new technology and have business partners like Sleepeeze,
Gourmet Society, etc. Travelodge is better in utilizing its effective management and in decision
making. The best example of their efficient management is seen during Covid19 when they had
introduced a programme named as Travelodge Protect Plus and it helps in maintaining its
performance as well as reliability in the market.
Weaknesses:

The company need to try to improve its services for better customer satisfaction. It has been
seen that company is not able to provide range of services what customer expects from it.
Travelodge need to increase its range of services and additional benefits like porter service for
clients.
Opportunities:
As of present ecotourism is increasing rapidly. Travelodge can expand its recognition as
environment friendly organisation. It can attract its customer by changing its reputation from pure
hotelier to an environment loving organization. They can increase their profit in this aspect as its
competitor are far behind it.
Threats:
Travelodge is more influential and productive in United Kingdom. Recently, there are many
issues raised like stringent immigration policies, terrorist attacks and many others which took place
in UK. This has severely affected the hotel industry of UK. Travelodge need to increase its security
so that customers feel free with respect to their safety.
PESTLE Analysis:
PESTLE Analysis studies the external factor affecting the business. The analysis involves
the factors such as political, economic, social, technological, legal and environmental. These factors
have the power to reduce the productivity of an organization. Travelodge is involved in hotel
industry and seems most operational in United Kingdom as well as Ireland. It is continuously
expanding which is a clear indication that the company is getting support from home governments.
No business can grow without internal support and external factors plays pushing role in its
development (Lee, Zhang and Abitbol, 2019). If external factors are supporting the company then
expansion an diversification becomes much easy for it. Travelodge earns huge revenue from outside
tourists and hotel industry can grow with the help of host country policies. So, it is much dependent
on host country international relations with the other (Mohanarangam, 2020). PESTLE Analysis
gives company an idealistic approach of its current standing in the market and gives a better
approach to beat the competition.
Political factors:
The political factors considered for evaluation are corporate taxation, government policies,
free trade disputes and other trade policies. These factors are based on the government and their
stringent policies. Travelodge is into hotel industry and a private enterprise of United Kingdom. UK

laws has been changed after Brexit. Brexit has impacted the workforce of the company as major
workers belongs to European Union.
Economic factors:
It involves the factors like interest rates, inflation rates, exchange rates and many others.
These factors are related to financials and economic stability of an organization. Travelodge has
faced the problem of increased inflation rate and it leads to increased in consumer prices by 10%.
Brexit has also increased the labour prices as well as increased cost of production.
Social factors:
The factors included are demographic segmentation, lifestyle considerations, consumer
beliefs, etc. It gives the idea of about the locality and needs of the society (Perrow, 2019).
Travelodge is one of the premier hotel of UK and the drawbacks are seen in the form of its service
as compared to its competitors. It has been seen that customers face issues regarding services
provided by Travelodge. The prices are quite high with respect to the services.
Technological factors:
It involves use of recent technologies, cyber security and the progress in the field of research
and development. The company need to move with new technology to beat the competition in the
market. Travelodge has recently partnered with Monscierge for their advancement in the technology
It will help their customers in proper planning and help them in proper checkout.
Legal factors:
It involves factors such as industry regulations, protection of intellectual property rights and
others. Every company need to abide by the country's laws for easy growth. Travelodge is a private
hotel company and it needs to follow all laws of nation. Laws related to employment and wages are
strict in UK and it is highly demanded. So, employment and other laws need to be followed by the
company to avoid any restrictions.
Environmental factors:
All environmental laws and restrictions are need to be followed in these factors. UK
government has strict laws against carbon emissions and greenhouses gases. Travelodge need to
maintain a certain level so that environment remain safe and sustainable. The company is private so
they have to follow it strictly to avoid external pressures.

CONCLUSION
From the above report, Travelodge has immense capabilities of growth and its continuous
progression in technology helps in expanding and progression. Travelodge need to improve its
services with the market and try to contribute to the society as much as possible. It will help in
making it sustainable. The company should not make itself confined to personal benefits and profit.
It should contribute to society as well as try to reduce carbon emissions. Travelodge need to
increase their range of services for their customers. As it is seen that the company is charging high
prices than the services provided by them. The company need to abolish this misconception as it
will help in maintaining their customer base. Travelodge should try to be first in the opting new
technologies as it will in easily capturing the market. The hotel industry is highly competitive and
comparatively profitable with respect to other industry. Travelodge need to invest in marketing for
increasing profitability as they are not too popular in between the people. The brand loyalty is not
easily gained so there is a need of start marketing campaigns to increase its awareness. It is needed
to beat the competition and also helps in increasing the customer base. Travelodge should try to add
additional riders in their services for better efficiency.

REFERENCES
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