Understanding Business Organization

This report discusses the organizational structure of Premier Inn hotel, its communication flow, and internal and external analysis using SWOT and PESTLE tools. It also highlights the strengths, weaknesses, opportunities, and threats of the company and the impact of political, economic, social, technological, legal, and environmental factors on its growth.

Understanding Business Organization

Table of Contents.
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Presenting organization structure................................................................................................3
External and Internal analysis......................................................................................................3
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................5

INTRODUCTION
Business is defining as process of selling and buying products in exchange of money and with
motive of earning profit by fulfilling the needs of customer. Along with this, the present report is
based on Premier Inn hotel which is one of the famous hospitality company of UK. The
organization has covered large market area of UK and now it is trying to expand in international
market. The study has discussed about organizational structure followed by company and the
way it communicates with the subordinate. Lastly, it will be discussing on external and internal
analysis of factor present in business environment.
MAIN BODY
Presenting organization structure
It is very important in the company as it act as guide to employees and give them direction of
work. Along with this, in the Premier Inn hotel it has adopted for functional unit so that each
department can work effectively. The company has divided its work into different sector such as
marketing and sales, Accounts, customer services. Along with this, each department has their
goals but it has been aligning with main objective of company. So basically all the sectors work
jointly in order to accomplish the main aim of hotel. Although in functional unit CEO is the
head of each department and major decision are taken by top management. However, each sector
has team leader which delegate job and responsibility to their subordinates (Auchter and et.al.,
2018). The customer services sector of Premier Inn focus on giving quality services to their
consumer and to listen to their complaints as well as provide them with appropriate solution. In
addition to this, the flow of communication in the organization flow from top management to
lower but employees also can give their suggestion to them. Moreover, the other department like
accounts focus on gathering finance for the company through various source and invest them in
new services for the company. In addition, the head of this department is senior manager as this
sector is very crucial for the company. Furthermore, Premier Inn have human resources

department which have responsibility of hiring right candidate for the company so that it can
contribute in success of organization (Casañ, Alier and Llorens, 2021). Thus, functional unit is
beneficial for hotel as it helps in maintaining the smooth flow of communication with each sector
but there is disadvantage such as it does not allow employees to engage with each other. That
leads in developing negative culture at workplace.
External and Internal analysis
SWOT Analysis
It is known as situational analysis tool which helps organization in identifying external and
internal factor present in business environment. Along with this, it helps organization in dealing
with those factor through mitigating them that contribute in increasing the performance of
company. It is an acronym of Strength, weakness, opportunity and Technology.
Strength: This factor is consisting of things company is good at and it contributes in their
success. Along with this, Premier Inn hotel has good brand image and it has 800 venture in
different part of UK which helps in attracting large customer. Moreover, the company is good in
providing good quality of hospitality services such as it has 2 types of room according to
income level of customer like luxury and medium class (Leiber and et.al.., 2018). It provides
accommodation, food and beverages as well as travel services to their customer. These strength
helps the organization in increasing their sales in the market through attracting customers in
large.
Weakness: The company major weakness is high competition in the market and it is affecting
the expenses of Premier Inn as it has to come up with innovative services in order to sustain in
external environment (Almutairi and et.al., 2022). Along with this, the company in order to bit
the competition has been hiring talented employees and new technology like smart keys, robotic
staff in order to enhance their services.
Opportunity: It has been found that Premier Inn has expanded their business in UK but it
should focus on Asian area as it will help in increasing market share that will contribute in
increasing profitability of firm (Amiri and et.al., 2018). In addition to this, the company has an
opportunity to improve its travel services as it is trendy in nature and a good source of income as
it helps in attracting large customer.
Threat: One of the major threat that company is facing is COVID 19 due to this hospitality has
been shut down for several months. Along with this, due to pandemic company sales has been

affects as there has been shift in customer taste and preference as they are spending on essential
stuff not on travelling. Thus, in order to attract customer Premier Inn has to reduce the price of
their services and offer their loyal consumer discount so that it can run their organization.
PESTLE
This is known as strategically analysis tool which helps the organization in identifying
external factors affecting the growth of the organization. It is an acronym of Political,
economical, social, technological, legal and environmental.
Political: This factor consists of rules and regulation which has been implemented by
government. Along with this, in the time of pandemic there has been policy like lockdown and
restriction on trade and due to that there was negative impact on the hospitality industry
(Mihailova, 2020). Premier Inn was shut down for several month and because of the sales of the
company has decline. Although new guidelines of pandemic have been launched by the
government that include sanitation services which has increased the extra expenses of company.
Economical: The company is mainly operating in country which has good GDP rate and
due to that it is able to sustain in the market. However, country that have good economy
condition then customer have good income scale so they are likely to invest in luxury services.
Moreover, hotel industry has to pay high taxation and it affect the expenses of hotel. Thus,
premier inn need to expand their market share in country that have good economy rates.
Social: Premier Inn has divided their customer on the basis of demographic and income level. It
has been focusing family, young adults in order to increase their sales as well as middle and
higher income level people (Abdoh and et.al., 2020). The company makes products according to
the taste and preferences of the customer as it contributes in enhancing their performance.
Technological: It is one of the most important factor as it encourages and discourage the
business. Along with this, Premier Inn should make use of advance technology such as smart
keys and robotic staff in order to attract customer. Along with this, it can also opt for digital
marketing such as using social media sites and create their own website in order to share their
details about service (Nandonde, 2019). These sites will not only help in creating brand
awareness in the market but it can be used to identify customer taste and preference as well as
market trends. However, some of its disadvantage is that any negative comment on sites will
decrease the brand name of the company.

Environmental: This is also crucial factor that need to be consider while running the business.
Premier Inn is following CSR activities so that it can contribute towards developing sorcery and
to promote environmental practices (Capobianco and et.al., 2021). Although conducting such
activities will allow the company to attract customer and boost morale of the employees that lead
in increasing the performance of firm in positive manner. Moreover, the company also promote
no food wastage policy and distribute it to people that are need.
Legal: This factor is consisting of laws a regulation made by government and it need to be
followed by companies. Along with this, the organization if following Company laws,
Employment Act in order to work legally. Moreover, all the activities of Premier Inn are
complied with laws so that avoid intervention of government.
CONCLUSION
From the above report it has been concluded that Premier Inn is following functional
organizational structure in order to maintain their functions. Along with this, it has been
summarized that there has been various department in the organization such as human resources,
accountants and marketing. In this structure there has been one head and it is responsible for
delegating the task as well as to look after them. Moreover, it has been found that organization
has maintain the proper flow of communication with help of this structure. In addition to this, the
report has described about internal factor through help of SWOT analysis in which it has been
identify that company brand name is there strength and the type of quality services it has been
provoking to customer. In addition to this, high competition is their major weakness and to
reduce its impact the company has to come up with innovative idea as well as to make use of
advance technology. Moreover, the study in last has depicted about external factor with help of
PESTLE analysis and it has been identifying that it has major impact on the industry and need to
be managed closely.

REFERENCES
Books and journals
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Jordan: A Conceptual Model. IJETT. 68. pp.19-23.
Almutairi, K. and et.al., 2022. Determination of optimal renewable energy growth strategies
using SWOT analysis, hybrid MCDM methods, and game theory: A case study. International
Journal of Energy Research. 46(5). pp.6766-6789.
Amiri, M. and et.al., 2018. Determining the optimal combination of larg supply chain strategies
using SWOT analysis, multi-criteria decision-making techniques and game theory. Industrial
Management Journal. 10(2). pp.221-246.
Auchter, A.M. and et.al., 2018. A description of the ABCD organizational structure and
communication framework. Developmental cognitive neuroscience. 32. pp.8-15.
Capobianco, N. and et.al., 2021. Toward a Sustainable Decommissioning of Offshore Platforms
in the Oil and Gas Industry: A PESTLE Analysis. Sustainability. 13(11). p.6266.
Casañ, M. J., Alier, M. and Llorens, A., 2021. A Collaborative Learning Activity to Analyze the
Sustainability of an Innovation Using PESTLE. Sustainability. 13(16). p.8756.
Leiber, T. and et.al.., 2018. Bridging theory and practice of impact evaluation of quality
management in higher education institutions: a SWOT analysis. European Journal of Higher
Education. 8(3). pp.351-365.
Mihailova, M., 2020. The state of agriculture in Bulgaria–PESTLE analysis. Bulgarian Journal
of Agricultural Science. 26(5). pp.935-943.
Nandonde, F. A., 2019. A PESTLE analysis of international retailing in the East African
Community. Global Business and Organizational Excellence. 38(4). pp.54-61.