Influence of External Factors on Business: A PESTEL and SWOT Analysis of Premier Inn

This presentation explores the influence of external factors on the business of Premier Inn through a PESTEL and SWOT analysis. It discusses how political, economic, social, technological, environmental, and legal factors can affect the organization's performance. The analysis highlights the strengths, weaknesses, opportunities, and threats faced by Premier Inn and provides recommendations for improvement.

Business and Environment

TOC
• Introduction
• PESTEL Analysis
• SWOT Analysis
• Swot analysis of Other Hotel
• Analysis of PESTEL
• Analysis of SWOT
• Conclusion

Introduction
There are different internal and external factors that can influence the
business of an organization. The influence of internal and external factors on
the business of Premier Inn is explained here.

PESTEL Analysis
Political Factors
• The decisions of the government influences the organization in the
different ways. Government implements different changes in the policies
related to tax, import & export and other factors to maintain the stability in
country economy and governance.
• Good changes in government policy can improve the number opportunity
for the organization.
• The tax related changes can affect the pricing policy of Premier Inn. It can
cause increase or decrease in the price of product and services of hotel and
that can reduce the number of guest in hotel.

Cont…
• Relaxation in the tax deduction can make the pricing policy of Premier Inn
which can increase the number of customer.
• The policy related to tourism can have impact on the business of hotel.
Convenience in the tourism policy can help the organization to entertain
more guests.
• Changes in food and security can force the hotel to make change in the
kitchen department.
• The security related laws can cause problem to customer and reduce their
satisfaction level that lead to drop in revenue also it can make them feel
more secure and this can improve their experience.

Cont…
Economic Factors
• The changes in tax policy can affect the finance management of the
Premier Inn.
• Relaxation in tax policy allows the organization to implement positive
changes in pricing policy.
• The situation like economic crisis and recession can cause a lot damage to
the company.
• Export and import duties can cause extra cost to organization.

Cont…
Social Factors
• The culture can affect the growth of organization. Culture values and
social values can improve or reduce the performance of employees.
• Better social and cultural condition help the organization to be more
creative and innovative.
• The better social and cultural condition motivates the employees to
perform better.
• Good workplace culture can imp[rove the performance of the company
employees and this lead to overall performance of organization.

Cont…
Technological Factors
• The changes in the previous technology can improve the guest handling
capacity of Premier Inn.
• Automation and Artificial intelligence allow the organization to improve
its reach towards the consumer.
• Implementation of new technology can cause high cost to organization.
• In the competitive market it to match with other competitor is most
important. It can cause damage in annual revenue.

Cont…
• Environmental Factors
• The location of the hotel can improve the customer retention.
• The sustainable and ethical environment can improve the performance of
the organization.
• The weather condition of the location can improve the profit of the hotel
by attracting more guest.
• The bad weather condition can cause damage the infrastructure of hotel,
this can cause a lot cost and can create negative thinking related to security
concerns.

Cont…
• Legal Factors
• Changes in the legal procedures and rules can force the company to make
changes in the company guest policy. Which can be good or bad.
• The changes related to bane on alcohol and liqueur product can affect the
bar business of Premier Inn.
• Positive changes in the legal laws can help the organization to improve the
business performance.

SWOT Analysis
Strengths
• Well experienced employees.
• Location of hotel
• Services of hotel; are satisfactory for the consumer.
• Food and restaurant business of the organization is well settled.
• Good house keeping service.
• Safe and secure work place environment.

Cont…
• Weakness
• Less number of staff.
• Parking place issues.
• No extra space for expansion.
• High pricing policy.

Cont…
Opportunities
• Location of hotel is near to local bus station that is providing more chances
to hotel,
• For the restaurant business hotel can target on healthy and organic food to
attract fitness freak people.
• Organization can also provide extra facility like spa and gym to attract
more customers.
• Hotel can offer transportation facility to tourist to make their
accommodation safe and secure.

Cont…
Threats
• The nearby hotels in central London, are the biggest threat to Premier Inn.
• Recession and economic crisis kind of condition can affect the business of
hotel.
• Brexit is also a larger issue for hotel industry.

Swot analysis of Other Hotel
Strength
• Lavish hotel rooms.
• Good bar and restaurant services.
• Better location
Weaknesses
• Small size of rooms.
• No transportation facility for guests.
• Traditional work methods.
• Customer handling is not good.
• Less experienced staff

Cont…
Opportunity
• Hotel can use digital promotion to improve number of
customers.
• Use of automation can improve the consumer satisfaction
level.
• Hotel can offer baby care and pet care facility to make their
experience memorable.
Threats
• Competitors in business.
• Security issues.
• Brexit can cause damage to the company revenue.

Analysis of PESTEL
• The PESTEL analysis is concluding the influence of different
external factor on the organization. The political and economic changes
can affect the profit of the organization by affecting organization finance
department. This can stop the company growth and development. The
political changes also can help the organization to grow by increasing its
profit by providing more effective tax policy. The better social condition
can improve the consumer experience. The change in the technological
trends can help the organization to handle larger number of guest.

Analysis of SWOT
• The comparative SWOT analysis can help the Premier Inn to work better
on the strength and use them to improve revenue. By utilizing the strengths
of organization can help to gain the competitive advantage in market. By
working on the company weaknesses can help the company to improve
business possibilities. Opportunity can help the organization to improve
the number of guest by providing more option during the stay. By
preparing more creative plan the threats can be minimized.

Conclusion
• 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.

References
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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.