Understanding Business Organisation - Case Study of Premier Inn

This report provides an analysis of Premier Inn's organizational structure and business environment using SWOT and PESTLE analysis. It discusses the hierarchical structure being followed by the company and the benefits it enjoys. The report also evaluates the business environment and identifies the strengths, weaknesses, opportunities, and threats faced by Premier Inn. The report concludes that analysing the business environment and organisation is crucial for the effective working of the company.

MGBBT0UBN Understanding
Business Organisation - Case
Study

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Organizational structure of Premier Inn......................................................................................3
Business environment analysis of Premier Inn...........................................................................4
SWOT analysis...........................................................................................................................4
PESTLE analysis.........................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Understanding the business organization is very important for the company to work in
proper and efficient manner. This is necessary for the reason that when the company will not be
able to understand its working then this will be affecting the overall working efficiency of the
business. the current report is being based on Premier Inn which is a British hospitality company
and is the largest chain present in UK operating over 800 hotels. the company deals in providing
great food and rooms to the guest coming and also support their charity partners as well. the
current report will outline the organizational structure being followed by the company. along
with this the analysis of the business environment will be undertaken. this analysis will be done
with help of different tools that is SWOT and PESTLE analysis. in the end the conclusion will be
drawn for the company and its business environment.
MAIN BODY
Organizational structure of Premier Inn
The organisational structure is being defined as the system which outlines the fact that
how the different activities are being directed in order to attain the overall goal of the business.
this structure defines the different types of the roles and responsibility which the person has to
perform within the working of the company. this is particularly because of the reason that there
are different types of position being present in the company and in case the roles will not defined
properly then this will be affecting the working efficiency of the company. In case of Premier
Inn, the hierarchical organizational structure is being followed. this is being followed by the
company because it outlines a proper flow of the direction of work and all the roles and
responsibilities are clearly defined. The reason underlying this fact is that in this hierarchical
structure the work flows down from top and the revert of every task done flows from bottom to
up.
The most common benefit which Premier Inn enjoys by using the hierarchical structure is
that it clearly defines the roles and responsibility and the relation that is which employee will
report to whom and from where they will get the work. Along with this another benefit which
Premier Inn enjoys is that there is clear accountability and responsibility being present among the
employees and no other employee is being liable for the work of others (Nashiruddin, 2018).
hence it is very beneficial for Premier Inn that when they are using the hierarchical structure then

this will improve the working efficiency of the business. also, another benefit which Premier Inn
enjoys by using the hierarchical structure is that there is also clear communication because all the
roles and responsibilities are clearly defined and there is not any chance of miscommunication.
Business environment analysis of Premier Inn
The business environment is being defined as the different internal and external forces
which affects the business and its working to a great extent (Mbaye and Gueye, 2018). The
business exists in external environment and in case these changes and factors will not be
analysed then it will be affecting the profitability and working of the company to a great extent.
thus, the analysis of the business environment will be done with help of the SWOT and PESTLE
analysis.
SWOT analysis
Strength
The major strength of Premier Inn is that it is the largest hotel chain being present within
the Britain and this is the largest hotel brand having more than 50000 rooms and around 800
hotels all over the world. Along with this another strength which Premier Inn enjoys is that it
provides for different offers and deals to its consumer and this attracts them towards the
company and its services (Premier Inn SWOT Analysis, Competitors & USP, 2022). furthermore,
the hotel is being recognised by many different awards for being good hotel chain and to attract
the large set of consumers.
Weakness
The weakness of Premier Inn is that the though the company is globally present but then
also it has limited global presence. this can affect the working efficiency as the hotel is having
less presence in the developing and under- developed countries. along with this another
weakness is that it is certain issues relating to hygiene within the hotel. This is because of the
reason that when the effective hygiene will not be managed in the hotel then this will not be
attracting the consumers.
Opportunity
There are different types of the opportunities being present in the external environment.
this is pertaining to the fact that in case the opportunities will not be considered then this will be
affecting the working efficiency of the company. the opportunity present for Premier Inn is to
expand the business in the developing and under- developed country as well. This will increase

the sales and profitability of the hotel as the business will expand and more growth opportunity
will be provided to the company. along with this another opportunity being present with the
Premier Inn is to invest more in the digital marketing. This is because of the reason that currently
there is a trend of using the technology for the effective marketing of the product and services.
Hence, the use of digital marketing is very important in order to attract the large set of
consumers.
Threat
The threat is the restriction which can affect the working efficiency of the company. with
respect to Premier Inn the major threat being faced is the intense competition. this is the threat
which affect the working of the hotel to a great extent. the reason underlying this fact is that the
competition reduces the number of consumers coming to the place and this in turn reduces the
sales of the hotel (Metallo and et.al., 2018). in addition to this another threat faced by Premier
Inn is the frequent changes in the trends and consumer requirement. this is affects the working of
hotel because many a times a new thing is brought within the market and suddenly the trend is
being changed.
PESTLE analysis
Political factor
With respect to the current political condition it is clear that after the pandemic,
government is supporting the growth and development of the business (Whitbread plc SWOT &
PESTLE analysis, 2022). hence, for this the current tax rates have been reduced and this is
beneficial for Premier Inn as now they will have to pay less of the taxes.
Economic factor
With respect to the current economic environment, the purchasing power of the consumer
is being increasing and this will pose an opportunity for Premier Inn. the reason underlying this
fact is that increase in purchasing power will result in more people going to hotels and this will
increase the sales of Premier Inn.
Social factor
This factor involves the changes in the attitude and perception of the consumers. also in
the current modern environment most of the people have been attracted towards using the good
culture and going to good and luxury hotel (Iruthayasamy, 2021). hence, this is beneficial for
Premier Inn as now they will be able to attract more of the consumers.

Technological factor
The technology is very prominent in the modern working environment and for this it is
necessary that company undertake the use of the latest technology (Feldmann and Morgan,
2022). This is necessary for the reason that when the latest technology will not be used in
practice then this will be affecting the working of the company. Hence, for this the Premier Inn
undertakes the implementation of latest technology.
Legal factor
The legal factor involves the different types of the laws and legislation relating to the
company and its operations. This is necessary for Premier Inn to comply with all the different
types of the laws and legislation for the effective working.
Environmental factor
The environmental factor involves the different types of the environmental protection and
the development of the society (World Bank Group, 2019). Premier Inn also complies with the
different types of the environmental protection like not using the products which can harm the
society or the product which can affect the development of the society and many different types
of the environment protection and the development of the society.
CONCLUSION
In the end it is concluded that analysing the business environment and organisation for
the effective working of the company. in case these elements will not be managed and analysed
then this will be affecting the working efficiency of company. The above report concluded that
Premier Inn follows the hierarchical structure for the working of the company. along with this
the report also analysed that business environment need to be evaluated in order to work in better
and effective manner. This is necessary because business exist in external environment and in
case the external changes will not be considered then it will be affecting the working efficiency
of the company. with help of SWOT analysis, it was clear that Premier Inn is the largest hotel
chain being present and is a premium hotel brand. also it was evaluated that currently the
consumer purchasing power has been increased which is beneficial for the company to grow and
develop.

REFERENCES
Books and Journals
Feldmann, M. and Morgan, G., 2022. Business elites and populism: understanding business
responses. New Political Economy. 27(2). pp.347-359.
Iruthayasamy, L., 2021. Understanding Business Strategy. Springer Singapore.
Mbaye, A. A. and Gueye, F., 2018. The competitiveness challenge of the formal sector in
Francophone Africa: Understanding the role of the informal sector and the business
environment. In Africa’s competitiveness in the global economy (pp. 25-51). Palgrave
Macmillan, Cham.
Metallo, C. and et.al., 2018. Understanding business model in the Internet of Things
industry. Technological Forecasting and Social Change. 136. pp.298-306.
Nashiruddin, M. I., 2018. Understanding the Turbulence of Business Environment in Telecom
Industry: Empirical Evidence from Indonesia. Buletin Pos Dan Telekomunikasi. 16(2).
pp.75-90.
World Bank Group, 2019. Understanding Barriers to Doing Business: Survey Results of How
the Justice System Impacts the Business Climate in South East Europe. World Bank.
Online
Premier Inn SWOT Analysis, Competitors & USP. 2022. [Online]. Available through: <
https://www.mbaskool.com/brandguide/tourism-and-hospitality/14052-premier-inn.html >
Whitbread plc SWOT & PESTLE analysis. 2022. [Online]. Available through: <
https://www.swotandpestle.com/whitbread/ >