Understanding of business organization and its environment

This report discusses the organizational structure and business environment analysis of Premium Inn Hotel in the UK. It covers the impact of COVID-19 on the hotel industry and the need for a flat organizational structure. The report also includes SWOT and PESTLE analysis of the hotel industry.

Understanding of
business organization
and its environment

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK...............................................................................................................................................3
Premium Inn Hotel Organisational structure :- ..........................................................................3
TASK 2............................................................................................................................................4
Premier Inn Hotel Business Environment Analysis :-................................................................4
TASK 3............................................................................................................................................4
SWOT Analysis on Premium Inn Hotel :-..................................................................................4
TASK 4............................................................................................................................................5
PESTLE Analysis :- ..................................................................................................................5
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
Business firm refers to the entity that is settled by the person or group of people with the
aim of functioning industrial, commercial and professional practice in order to gain more and
more revenue. In the business firm there are several kinds of goals and objectives that are made
by the top level management of the firm. Workers of the company accomplish these targets by
operating various kinds of practices in the company in an efficient way. The management of the
company is accountable for doing any activity in the business firm. The following report is based
on the Premium Inn Hotel that is established in the United Kingdom and the partent company of
the hotel is Whitbread Plc. The following company is known to be the largest chain of British
hotels all over the country (Aboukhadra, 2021). Company is having more than 800 hotels which
are having more than 785000 various rooms. It was founded in the year 1987 and also company
is having their headquarter in Dunstable, United Kingdom. Company operates in the hospitality
industry and they functions their several working near by airports, suburbia, city centres and at
various more locations. The organisational structure and the environmental evaluation of the
Premium Inn Hotel will be covered in this report. Moreover to this, it will also cover about the
external as well as internal elements which effects on their organisation as because of the
COVID 19.
TASK
Premium Inn Hotel Organisational structure :-
In the market area of the England and also around the world as the respective hotel has an
amazing brand reputation. Company works in more than 580 budgeted hotels in the market area
of the United Kingdom due to which the regarding firm which is being known as the rapid
growing hotel chain all the country (Camacho, Coto, and Jensen, 2021). The regarding firm
operates in offering luxurious rooms as well as top quality food for their and in addition to this,
management also works in aiding their charity partners like Great Ormond Street Hospital
Children’s Charity (GOSH). The practices that are operated by the workers of the firm which has
been well settled by the well characterised by the top level authorities of the company. The
higher level members of the firm is accountable and obliged to the CEO of the firm. The Flat

organisational structure is being followed by the management of the company Premium Inn
Hotel and this structure is also refers as the Horizontal Structure.
In this structure the associates of the firm have more authority over their juniors and the
worker of the firm might include in the process of the decision making. As the workers are in the
direct contact with the consumers (Chang, Green, and Cummins, 2021). So, because of this they
are included in the policy as well as in the strategy making of the Premium Inn Hotel. The roles
and duties of the workers has been effectually given to them in order to accomplish the long term
goals of the firm in an effectual way Flat organisational structure is more appropriate for the
respective hotel in compare to the full length structure. As it is proper for such companies in
which low number of the workers operates in the firm and also those have a small organisation.
As the Hotel Premium Inn huge number of the workers has been operated and all the
workers are in immediate control of the manager. With the support of this structure the roles and
duties are clearly directed and guided to the workers and together with this workers of the firm
are encouraged by their associates in accordance to operate all the goals of the company. As
because of this there will be no conflicts among the worker as they respect each other and most
crucially happy as well as healthy environment is made in the firm that increases their
performance as well as productivity. In accordance to enhance and expand their organisation in
the market area, hotel Premium Inn should adopt the flat organisational structure.
TASK 2
Premier Inn Hotel Business Environment Analysis :-
The management of the firm works on all the practices in accordance to accomplish all
the goals which is known as the business environment. As because of the impact of the pandemic
Covid 19 all the operations of the regarding firm has been majorly impacted and due to this
revenue making of the organisation (Donkovtceva, 2021). In around all the industries over the
world has been effected due to it but the major affect has been seen on the hospitality industry as
well as tourism industry. By utilsing several kinds of the techniques in their process of
management the mentioned firm can eliminate such problems.

TASK 3
SWOT Analysis on Premium Inn Hotel :-
It is one of the crucial as well as proper method that is utilised by the company in
accordance to understand and evaluate the internal factor that impacts various functions
(Matenga, 2021). With the assistance of this method company can effectually make several
strategies in order to overcome from the threats as well as weaknesses that the Premium Inn hotel
SWOT analysis has been mentioned below:
Strength :-
The market share of the hotel Premium Inn is being known as one of its biggest strength
because they work with around 800 hotel in the United Kingdom. In accordance to the research it
has been understood that they offered more than 5 million consumers per month. Moreover to
this, the brand reputation of the firm is also very high in the international market and the firm
was also selected as the best UK hotel in terms of economically for the many years.
Weakness :-
During the pandemic Covid 19, as because of the lock down in the several nation The
Premium Inn hotel declines to pay the refund amount of their consumers on the pre booking as
because of this they are loosing their market goodwill which can act as a weakness of the
company and it can impact their long term sustainability.
Opportunities :-
In order to expand their operations around the world, hotel Premium Inn can utilise the
effectual online marketing techniques (Papadopoulos, and et.al., 2021). In addition to this as
because of the pandemic various people are not travelling and preferring to stay at home only
which has increased the use of social media. So, it can be the best opportunity for them to target
the audience by utilising online platforms.
Threat :-
There are several competitors of the firm for like Hilton, Holiday Inn, Ibis and many
more in the same market area as of the The Premium Inn in order to give the company the
brawny competition. Moreover, because of the lockdown in several nations sales of the
respective hotel brand has been decreased.

TASK 4
PESTLE Analysis :-
The PESTLE analysis refers to the evaluation of the organisations external element that
effect the operations of the company. In relation to the Premium Inn, its PESTLE evaluation is
mentioned below briefly:
 Political Factor – At the time of the pandemic government of the UK takes the several
major steps in order to take control over the hospitality sector (Punkkinen, 2021). The
various norms and rules that are formed by the British government which involves ban of
the international travellers has mainly impacts the performance and sales of the firm.
 Economic Factor – Hospitality industry is known to be the largest growing industry but
because of the declining sales at the time of pandemic has forced the firm in increasing
the prices of their room tariff in order to maintain their profitability but this can impact
the firm in loss of loyal consumer base.
 Social Factor – In accordance to the hotel Premium Inn the season time are the earning
period of the firm (Ramos, and Casado-Molina,2021). Weekends, national holidays,
festivals and several more time when they are able to make more profits revenues but due
to Covid 19 and government restriction individual are not able to go out.
 Technological Factor – As the workers of the Hotel Premium Inn are directly in context
with their guest so it is very crucial for them to adapt several automation technology in
the process of their management and with the aid of this element they can effectually
cherish the advantage of their competition.
 Legal Factor – In this element the laws that is linked to the betterment of the members of
the community and the welfare of the employees as because of the low profit making.
Due to this Covid the Premium Inn hotel might face several legal consequences as
because they fired several employees because of lack of profit making.
 Environmental Factor – Management of the Premium Inn hotel need to take this
element to be their top priority and by following all the rules and laws regarding the
betterment of the environment in order to make their business organisation long term
sustainable.

CONCLUSION
From the above report it has been concluded that environmental evaluation is very
essential for the appropriate working of the business firm. After the rise of the Covid 19 all tge
industries around the world has been effected and the major affect has been seen on the hotelier
industry. The respective firm need to adapt flat organisational structure which is suitable for
them. Moreover, the internal as well as evaluation of the hotel with the aid of the SWOT and
PESTLE Model.

REFERENCES
Books and Journals
Aboukhadra, W., 2021. Learning organisation, affective commitment and cultural intelligence:
the case of expatriates in the Gulf Co-operation Council countries (Doctoral dissertation,
Nottingham Trent University).
Camacho, H., Coto, M. and Jensen, S.P., 2021. Participatory methods to support knowledge
management systems design in educational environments. International Journal of
Knowledge Management Studies, 12(1), pp.34-54.
Chang, M., Green, L. and Cummins, S., 2021. All change. Has COVID-19 transformed the way
we need to plan for a healthier and more equitable food environment?. Urban Design
International, 26(4), pp.291-295.
Donkovtceva, O., 2021. Knowledge discovery and visual analytics in a data-driven business
environment.
Matenga, A., 2021. Understanding the role of employee personal values in relation to public
service organisational values and performance. Special Edition Foreword.
Papadopoulos, T., and et.al., 2021. Towards the next generation of manufacturing: implications
of big data and digitalization in the context of industry 4.0. Production Planning &
Control, pp.1-4.
Punkkinen, E., 2021. Establishing a Business Model for Software Development Services.
Ramos, C.M. and Casado-Molina, A.M., 2021. Online corporate reputation: A panel data
approach and a reputation index proposal applied to the banking sector. Journal of
Business Research, 122, pp.121-130.