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

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.