Understanding Business Organisation - Case Study

This report provides a SWOT and PESTLE analysis of Premier Inn hotel, along with an overview of its organisational structure. It highlights the importance of understanding business organisations and strategic planning frameworks to gain a competitive advantage in the hospitality sector.

Understanding
business organisations

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................4
SWOT analysis of Premier Inn hotel in order to deliver focused approach...............................4
PESTLE analysis in to analyse key external factors which impact upon functioning of the
business.......................................................................................................................................5
Organisational structure of Premier Inn hotel.............................................................................6
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
The contemporary business environment is one of the major factors which impact on the
functioning of a business. It is essential for the company to understand all aspects of business
organisation in order to lead the competition (Aysolmaz, and Reijers, 2017). The understanding
of business organisations involves key factors which are internal and external that might impact
upon functioning of a business. The understanding of business organisations helps in
development of a company by increasing its profitability and revenue. This report will include
example of Hotel Premier Inn is taken in this report which is a key hotel chain and is
considered as one of the finest and largest hotel brand. The headquarters of Premier Inn hotel are
situated in Dunstable, United Kingdom and it is known all across the UK for its services and
products. This project will cover external environment assessment of the Premier Inn with
support of PESTLE and SWOT analysis. The project will also provide a brief overview of
management/organisational structure of the hotel.

TASK
SWOT analysis of Premier Inn hotel in order to deliver focused approach
In the functioning of a business, SWOT analysis plays a crucial role in determining
strengths and weaknesses. The application of SWOT analysis helps a company to analyse
external environment in a precise and systematic manner (Bagozzi, Sekerka, and Sguera, 2018).
Development of strategy by a business is also facilitated with the help and support of SWOT
analysis by increasing strategic approach. SWOT analysis of Hotel Premier Inn is explained
below:
 Strengths- It is essential for the Premier Inn hotel to conduct a brief analysis in order to
know its key strengths. The identification of major strengths will support the business
entity to develop a focused approach in dealing with major factors of business
environment. The front office department is one of the key strengths of a business which
helps in maintaining healthy relationship with customers and attend them when they
come to visit the hotel. Quality based rooms are also one of the major strengths of
Premier Inn hotel which helps in increasing the chances of customer satisfaction.
 Weaknesses- It is important for the hotel Premier Inn to develop key focus on its
weaknesses in order to overcome them in a precise manner. The weaknesses of Premier
Inn hotel includes its operations management which is sometimes unable to deliver
satisfactory products to customers (Bocken, Boons, and Baldassarre, 2019). Another
major weakness of Premier Inn hotel includes its negligence of information and
technology in its key operations and functions.
 Opportunities- It is essential for a business to look and develop key opportunities that
help in its development. Developing major operations with the help of information and
technology is considered as one of the key opportunities available to Premier Inn hotel. It
is essential for the business entity to take advantage of key opportunities and chances in
order to facilitate development of business.
 Threats- Threats are considered as key obstacles and hurdles which are faced by a
business entity (Cagnin, and Nakagawa, 2021). The Premier Inn hotel is also having
major threats at the marketplace, which can impact on its functioning. The competitors
are one of the major threats for the business which can impact on its working

PESTLE analysis in to analyse key external factors which impact upon functioning of the
business
The PESTLE analysis is one of the crucial approaches which helps in precise analysis of
external environment. It is widely used by many global and domestic companies in order to
increase the potential of the business (Carson, Carson, and Eimermann, 2018). The hotel
Premier Inn has developed evaluation of PESTLE analysis which is explained below:
 Political factors- In the functioning of a business, the political factors play an important
role in increasing the chances of business growth. The political factors include primary
focus on rules and regulations formulated by government in order to control business
organisations of the country. It is essential for the hotel to develop a key and major
approach in managing the political factors (DaSilva, 2018). The political factors like UK
government's decision of BREXIT and corporate policy by the government has impacted
on overall functioning of Premier Inn hotel in many different ways.
 Economic factors- The economic factors are related to key major factors like deflation,
inflation rates. It is very much necessary for the business to focus on implementation of
best economic policies in the company to develop focused approach. The economic
factors also involve monetary policy developed by government to develop systematic
approach in understanding money supply.
 Social factors- It is crucial for the business to focus on social factors which are related to
culture and traditions of the society. The analysis of social factors involve primary focus
on social policies in order to understand and serve different employees (Hampden-
Turner, Trompenaars, and Hampden-Turner, 2020)The social factors supports a company
in understanding the needs and wants of employees to develop effective culture in the
organisation.
 Technological factors- The technological factors include focus on application of
information and technology in order to perform key functions. The technological factors
are helpful Premier Inn hotel to perform key operations in a quick and accurate manner
by taking help of advanced computer systems and software.
 Legal factors- The legal factors relates with laws and regulations that has been
developed through local authorities (Hoerl, and Snee, 2020). This is important part of
business which makes legal perspectives in relation to an organization analysed more

effectively. It helps upon increasing competitive edge within market making certain legal
considerations.
 Environment factors- In the functioning of a business entity, environmental factors are
considered as key factors which impact on the functioning of a business. The
environmental factors include focused approach in increasing the chances of sustainable
development. The hotel Premier Inn follows environmental policy of United Kingdom's
government to perform conservation of environment.
Organisational structure of Premier Inn hotel
The organisational structure is considered as the main body of a company which
facilitates decision making and development of hierarchy. In the recent times due to increased
competition, it is essential for a company to develop focused organisational structure for
facilitating business operations (Lee, 2017). The organisational structure of Premier Inn hotel is
functional structure which helps the business entity to gain competitive growth. In the functional
structure of Premier Inn hotel there are various departments linked with each other like human
resource, financial management and marketing management. This helps in development of
following advantages which are listed below:
 Coordination development- The development of coordination in the functioning of
Hotel Premier Inn is supported by its management structure. It is also key role of a
business to develop best approach in coordination in order to complete key tasks and
functions on time. The main role of higher authorities of Premier Inn is to develop
coordination with full efficiency in order to achieve key organisational goals. The
management of a company is also responsible for maintaining coordination for
systematic growth of company.
 Employee engagement and productivity- The employee engagement and productivity
is supported by functional structure of Premier Inn hotel. The company should develop a
well defined approach in the management structure to achieve set goals and objectives.
Employee engagement is also a primary requirement of the organisation in order to
increase effective relationship between them (RoutledgeTurner, and Gianiodis, 2018).
The management of Premier Inn hotel is also majorly supportive in increasing the
productivity of employees.

 Supports decision making- The decision making of a company is supported by the help
of suitable decision support system. Key role of management is to develop decision
making and evaluate it in order to gain profitability and revenue. The decision making is
also supported by crucial functions of management which are supported by strategies.The
functional organisation structure of Premier Inn hotel is also helpful in increasing
organisational growth of business. It is major role of a business to focus on decision
making with the help of functional organisational structure in order to lead the
marketplace.

CONCLUSION
From the above stated report it can be concluded that in the era of stiff competition
between companies, it is essential to focus on understanding business organisations. The project
concludes importance of strategic and planning frameworks in order to lead the competition.
This report concludes key significance of SWOT and PESTLE analysis in order to gain
competitive advantage in the hospitality sector field. This project concludes that it is necessary
for a company to take into consideration application of appropriate organisational structure in
order to develop effective decision making and develop hierarchy. The project also concludes
that in order to maintain effectiveness in key operations, it is crucial for a company to take
assistance of strategic and top level management.

REFERENCES
Books and Journals
Aysolmaz, B. and Reijers, H.A., 2017, June. Use cases for understanding business process
models. In International Conference on Advanced Information Systems Engineering (pp. 428-
442). Springer, Cham.
Bagozzi, R.P., Sekerka, L.E. and Sguera, F., 2018. Understanding the consequences of pride and
shame: How self-evaluations guide moral decision making in business. Journal of Business
Research, 84, pp.271-284.
Bocken, N., Boons, F. and Baldassarre, B., 2019. Sustainable business model experimentation by
understanding ecologies of business models. Journal of Cleaner Production, 208, pp.1498-1512.
Cagnin, M.I. and Nakagawa, E.Y., 2021. Towards dynamic processes-of-business processes: a
new understanding. Business Process Management Journal.
Carson, D.A., Carson, D.B. and Eimermann, M., 2018. International winter tourism
entrepreneurs in northern Sweden: understanding migration, lifestyle, and business
motivations. Scandinavian Journal of Hospitality and Tourism, 18(2), pp.183-198.
DaSilva, C.M., 2018. Understanding business model innovation from a practitioner
perspective. Journal of business models, 6(2), pp.19-24.
Hampden-Turner, C., Trompenaars, F. and Hampden-Turner, C., 2020. Riding the waves of
culture: Understanding diversity in global business. Hachette UK.
Hoerl, R.W. and Snee, R.D., 2020. Statistical thinking: Improving business performance. John
Wiley & Sons.
Lee, M., 2017. Understanding the business of global media in the digital age.
Routledge.Turner, T. and Gianiodis, P., 2018. Entrepreneurship unleashed: Understanding
entrepreneurial education outside of the business school. Journal of Small Business
Management, 56(1), pp.131-149.