Understanding Business Organization and Environmental Analysis of Travelodge

This report discusses the organizational structure of Travelodge, its benefits and drawbacks, and the business environment. It also includes a SWOT analysis and PESTLE analysis of Travelodge, identifying its strengths, weaknesses, opportunities, and threats. The report concludes with the importance of following rules, regulations, and policies to generate profit and reach potential customers.

Understanding Business
Organization

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Organization Structure.................................................................................................................3
SWOT Analysis...........................................................................................................................4
PESTLE Analysis of Travelodge.................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................1

INTRODUCTION
Business organization is considered as a commercial entity which is understood as a
unique composition that provides better opportunities for the people to conduct their business
activities. A specific atmosphere is created around the business organization where all the
activities takes place with the help of employees and resources which are dedicated towards the
common goals or objective of the business in the industry (Ali and Anwar, 2021). There are
different factors in the business environment of the business which has a significant influence on
its overall development in the competitive industry. These aspects have a significant impact on
the decision-making process of the businesses which leads towards several changes in the
businesses.
The current report is based on Travelodge which is a private hotel chain that is operating
in different hotels and tourism activities in the industry. It is considered as one of the largest
independent hotel chain in the market of UK which is popular for its high standards of services.
This report is explaining organizational structure, and its benefits and drawbacks for companies.
Details about business environmental, SWOT analysis on the organization, PESTLE analysis
which is providing details of the internal and external factors of the business.
MAIN BODY
Organization Structure
To achieve the goal of the organization there is the structure followed to perform the
activities of Travelodge. Roles, responsibility and the rules were included in the activities of the
organizational structure. Hierarchy organizational structure was followed by the Travelodge. In
the organizational structure of Travelodge the decision were passed from the higher level
authority to lower level and from the lower level authority to higher level superior (Stringam and
et.al., 2020). At the top of the hierarchy the position was given to general manager. Marketing,
Food and Beverage, Accounting, Human Resource and the Room are the five departments in the
structure of Travelodge business. To each department the task was divided among the people
according to their specialist. Hierarchical structure benefits and the drawbacks are:
Benefits of the structure
 There is the clear communication between the members in the organization. The
communication direction was provided between the subordinates and the manager.

 Categorizing the people in an organized way helps the business in achieving the goal
effectively (Ali and Anwar, 2021). The subordinates can get the order, reward or
punishment from the manager as they have the power and the management level
authority.
 Chain of command will be understood by every person as there is no confusion between
the boundaries of jobs and department.
Drawbacks of the structure
 To the business there will be the disadvantage for the business of lack of innovation due
to the established communication channel and the clear reporting structure (Stringam and
et.al., 2020).
 There is no direct communication between the lower level authority with the higher level
authority. This will lead to communication gap between the manager and the superior
because there is the chance of fault communication by the middle level superior.
 There is the lack of collaboration between the departments due to the following of the
hierarchical structure in Travelodge.
Business environment
Business environment is called as the sum of different internal and external factors which
have a major impact on the overall decision-making process of the business (Fabus, 2018). It is
the commercial atmosphere where all the employees and resources are effectively utilized by the
businesses to gain better competitive advantage in the industry.
SWOT Analysis
The micro environment effect to Travelodge can be identified thorough SWOT analysis:
Strength – The biggest strength of Travelodge is that it has good brand image in the market.
Thus, it helps the business to retain its position at pandemic due to the strong brand image. On
the special occasions Travelodge provide the rooms at affordable price to its customer
(Rumiński, 2018). To its loyal customer Travelodge provides more than 500 facilities. The most
suitable place for the customers in UK.
Weakness – Thus, the Travelodge does not provide whole package services to its customer
compare to its competitors the customers will not attract to the business. The room service and
the concierge service were not provided which impacts the hotel in unsatisfaction of the guests

(Foskett and et.al., 2021). The overbooking policy was adapted by the Travelodge to run the
hotel in full strength. Due to this customer get frustration and discomfort due to facing of risk.
Opportunity – There is the opportunity for the business to adapt the ecotourism and the green
environment. The trend of green and the ecotourism was in trend as in the environment
protection momentum. To gain more profit Travelodge can expand its business market globally,
it will also help the business gaining reputation and will reach more potential customers. Increase
in the public image and the positive feedback from the guest by maintaining the sustainable and
eco-friendly programs.
Threat – The wide range of products were provided by the competitors thus it will be very
competitive for the Travelodge to create the unique position among the customers (Blagoev,
Nikolskaya and Popov, 2019). Most of the consumer were conscious about the future income
thus they mostly book cheaper hotel compare to Travelodge.
PESTLE Analysis of Travelodge
The impact of different factors to the Travelodge will identify through the PESTLE
analysis:
Political – Through the political environment business regulation will highly affect. To carry out
the operations of the organization business has to follow government rules and regulations (Roy
and Chowdhury, 2021). Thus, the political factors are unpredictable Travelodge need to
constantly monitor the political environment. There is the impact of 'Digital Economy Act 2010'
for example, if the customers of Travelodge breaks the internet connection then the expense will
bear by the hotel.
Economical – In the UK market there is the lot of competition in the hotel industry. Thus,
Travelodge is offering its room at promotion price the more customer will be attracted to the
business (George, 2021). Increase in the tax also impacts the business in decrease in the
customer. Due to increase in the tax rate the budget of the individual affect, and they will spend
less on travels and booking of hotels.
Social – Around the world the new generation people were more interested in travelling. Thus, it
effects in increase in the hotel demand. Parlour, gym, massage, restaurant are the type of service
were additionally provided by organization to attract customer (Guix and Font, 2020). The
today's hotel industry is more focusing on hiring of younger people for hotel which will
disadvantage for some people.

Technological – To serve the best output to the consumer different technologies were used by
Travelodge. The potential customers can be attracted to the business through the help of social
media platform (Wu, 2021). Through the advance technology the reputation of the business can
be decreases if the customer comments the bad review on the online platforms. Protecting the
guest data is also important for hotel industry as data can be leaked.
Legal – The Travelodge organization impact through several laws and regulations. Both the
internal and the external factors were included in legal factors. Thus, the different laws in UK
such as the employment law, etc. can affect the business (Roy and Chowdhury, 2021). According
to the law business has to provide the equal wage rate to all the employee's in the hotel. To the
hotel industry several laws were introduced such as the social distancing, safety precautions
which help the business to manage its operation in pandemic.
Environmental – Due to the excess consumption of gas, water and electricity by the hotels the
resources were shortage. Thus, the Travelodge has to use the resource responsibly as NGO and
government create the pressure to the hotels (George, 2021). The demand of the hotel changes
due to the change in the weather which may also impact in increase in the revenue or decrease in
the revenue of the organization.
CONCLUSION
It has been concluded from the above report that to carry the commercial enterprise there
is the formation of the entity. Limited liability partnership, corporations, sole proprietorship and
partnership were the four types of business organization. The report studied the organizational
structure of Travelodge and further studied the business environment of Travelodge. Moreover,
the current report studied the micro environment factor to Travelodge through the SWOT
analysis. The report examined the macro environment factor impact to the organization through
the PESTLE analysis. SWOT analysis was conducted for Travelodge to identify its weakness,
threat, strength and the opportunity. The biggest strength identified of the business is the good
brand image in the UK market at affordable price. Increasing the strength by the business will
help to reduce the weaknesses. Through SWOT analysis it was identified that business can
expand its business globally to gain more profit. Travelodge has many opportunities to increase
its potential customer such as through online social media platform. Thus, the Travelodge should

follow the rules, regulation and the policies to generate the profit. Adapting of the latest
technology helped the business in gaining profit and reaching its potential customers.

REFERENCES
Books and Journals
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Understanding Hotel Business. Varna University of Management.
Fabus, M., 2018. BUSINESS ENVIRONMENT ANALYSIS BASED ON THE GLOBAL
COMPETITIVENESS INDEX (GCI) AND DOING BUSINESS (DB): CASE STUDY
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Stringam, B.B., and et.al., 2020. Hospitality Industry Structures and Organization. In The
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Wu, S.Y., 2021. A Study on Promotion Strategies and Purchase Intention during the epidemic
situation-In the Travelodge Industry.