Premier Inn: SWOT and PESTLE Analysis and Organisational Structure

This report provides a SWOT and PESTLE analysis of Premier Inn, the largest hotel brand in the UK, and explains its hierarchical organisational structure.

Case Study

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
SWOT analysis of the business organisation .............................................................................3
PESTLE analysis ........................................................................................................................4
Explain the organisational structure of the company .................................................................4
CONCLUSION ...............................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
The business organisation is a entity which is formed for the purpose of carrying on
commercial enterprise. The main objective of the organisations to to create value for the
customers and earn profit from it. It is very important that the individual should understand its
business because it can help them to provide better and effective services for the customers.
Also, the understanding will help in to create the better managers and leaders in the workplace
which can help to achieve the objectives of the business enterprises. This report is based on the
Premier Inn which is the British limited service hotel chain and considered as the United
Kingdom largest hotel brand. The organisation has variety of hotels in different locations. The
company was introduced by Whitbread in the year 1987(Bird, 2019).This report will include
various topics such as the swot analysis, PESTLE analysis and the organisational structure of the
above organisation which is taken into consideration for this report.
TASK
SWOT analysis of the business organisation
This is the technique or the tool which is used by the various organisations to evaluate
that what the company is best in the present and what are the future opportunities available for
the organisation which it can avail for the success of the business enterprise. The swot analysis in
context of the Premier Inn is explained below;
Strengths Weaknesses
 It has over 800 hotels in the United
Kingdom with over 785000 rooms. It
serves over 5 million of customers
every month(Eberlein, B., 2019).
 It has a very good brand image over the
years. The kid- friendly and bike-
friendly image has been created by the
company which is considered the
 The limited global presence is one of
the weakness for the organisation. It is
situated in the limited countries.
 In february 2018 it was founded that
the hygiene factor is been not taken into
consideration. Asd one of the staff has
used the same towel to clean the
bathroom and the entire room. This has

selling point for the company. created the bad image for the company.
Opportunities Threats
 The exploration if the new market can
be the opportunity for the Premier Inn.
The company can expand its business
in the other countries.
 The company has 28 hotels in
Germany. The country has been
offering the continuous growth
opportunities as it is one of the most
visited country in the Europe.
 The main competitors of the company
are holiday Inn, easy-hotel etc. these
are the strong competitors for the
organisation which need to taken care
of.(Do, and Mai,2020)
 The Lock-down has affected this
industry and has affected the company
badly. It is the extreme challenging
situation for the organisation in future
in something arises.
PESTLE analysis
It is a tool used by the various business organisations to analyse the external factors
which can influence the operations and the activities of the business enterprise. It al;so allows the
strategic and systematic evaluation of a businesses prospects, risk and opportunities in the
environment. There are various external environmental factors which are responsible in the
affect of the organisations which are discussed bellow;
 Political- This is the factor which is related to the interference of the government policies
can impact the business organisation. Such factors include fiscal policy, trade tariffs etc.
As the corporation tax has been decreased over the years has impacted the company in a
negative way where increase in the prices have become inevitable(Salvador,,and et.al.,
2019).
 Economical- These factors have the direct impact on the business organisation in a long
term perspective. The various factors can be the inflation rate, unemployment rate,
disposable income etc. in the 2008 the financial crisis have impacted the Premier inn very
badly. People were not having money to spend so this company was affected with the
economic performance.(Fozer, and et.al., 2017)

 Social- These factors can help the marketers in identifying the current trend in the market
which can affect the business organisation. Such factor include the change in the lifestyle,
attitude, behaviour etc. As the Premier Inn in dealing in the tourism industry it is very
important for the company to know when it has the peak season when the people want to
enjoy their holidays. The important days are the festival time such as new year, Diwali
break, Christmas when the company need to focus on its customers(Wojcieszek,
Kwiatkowski. and Ruzik, 2017)
 Technological- These factors have the direct impact on the industry or the business
organisation. These are related to the innovation and technology. Such factors are
research and development, digitalisation, automation etc. The Premier Inn can use the
digitalisation methods to promote their brand. The use of the use media will be an
effective way to target new customers.
 Legal- These factors have both the sides internal and external. These are related to the
impact of the laws which can affect the business organisation. Such factors can be
employment laws, consumer protection, industry specific regulations etc. the recent
change in the law has lead to rise in the wages of the employees. Also the premiere Inn
need to take care of the safety measures of the staff members in order to protect
themselves from strict actions of the government or the certain laws(Raziq.,and et.al.,
2020)
 Environmental- These factors are related to the change in the environment which can
impact the operations of the business organisations. Such factors include climate,
geographical locations, sustainable development, weather etc. This factors is the most
affected one which can affect the Premier Inn in many ways. The January month is
considered to most peak season and at that time the a flooding arise which have created
the negative impact for the company(Halford, 2018)
Explain the organisational structure of the company
The organisational structure is the system which outlines the certain activities are directed
in which way in order to communicate within the organisation to achieve the goals and
objectives of the business enterprise. It is very important for the company to adopt the right
structure according to its nature because there should be transparency in the flow of the

information at different level within the enterprise. Below the hierarchical structure is been
discussed which is adopted by the Premier inn in order to achieve the goals of the organisation:
Hierarchical structure- This structure contains the direct chain of command from the
top level to the bottom level. In this the senior management makes all the necessary decision
required in the business organisation. Then these decisions has passed down through the
subsidiary levels of management. This kind of structure is very helpful for the employees are
there is the clear defined career path where there are more chances of the promotion of the
employees by their efforts and the work within the organisation over time. This also helps to
understand the various levels of leadership in the business enterprise. Here the management roles
are clearly defined in a pyramid structure. This also helps to eliminate the chaos and confusion
among the individuals in the workplace. The employees have the direct instructions that whom
they have to report. This makes the tasks easier and the flow of the communication is much
directed. The Premiere Inn adopts this organisational structure in order to have the flow of the
information smooth and every employee is able to understand their task clearly. This is an
effective structure for the organisation to achieve its goals on the right time witch the effective
and efficient way(Song, and et.al., 2018)
CONCLUSION
From the above report it is concluded that the business organisation is the entity which is
created to give value to the customers to earn profit. It is very important aspect to understand
your business and its nature in order to achieve the goals and objectives of the business
enterprise. To understand the business organisation it is important to use certain tool which can
help in evaluating the business organisation and its external factors. The swot analysis help in
understanding the strength and weakness and opportunities available for the company. The
PESTLE analysis conducted suggests that the company need to consider the external
environment to avail the opportunity. The company have adopted the hierarchical structure for
the flow of the information from the top level to the bottom level. This is considered as an
effective structure for the company in order to be formal and achieve its target on the right time.

REFERENCES
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twenty-five years of advances. Emerald Publishing Limited.
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Strategy and Management.
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process alternatives. Journal of cleaner production, 147, pp.75-85.
Halford, S., 2018. Gender, power and organisations: An introduction. Macmillan International
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