Understanding Business Organisation - Case Study

Level 0 Guide – Case Study
2021/2022.
Understanding Business
Organisation
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Table of Contents
1 Introduction.............................................................................................................................3
2 Organisational Structure of Premier Inn Hotel.......................................................................3
3 Business Environment Analysis of Premier Inn Hotel.............................................................4
3.1 SWOT Analysis – ..............................................................................................................4
3.1.1 Strength.....................................................................................................................4
3.1.2 Weaknesses...............................................................................................................4
3.1.3 Opportunities............................................................................................................5
3.1.4 Threats.......................................................................................................................5
3.2 PESTLE Analysis................................................................................................................5
3.2.1 Political Factors.........................................................................................................5
3.2.2 Economical Factors....................................................................................................5
3.2.3 Social Factors.............................................................................................................6
3.2.4 Technological Factors................................................................................................6
3.2.5 Legal Factors..............................................................................................................6
3.2.6 Environmental Factors..............................................................................................6
4 Conclusion...............................................................................................................................7
5 References ..............................................................................................................................8
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1 Introduction
The term business organisation refers the business structure and how the goals are met
in the organisation. In simple words, the business is designed for profit generation or to
improve the society. When the organisation is looking for the social improvement through
arts, education etc. is considered as the business. The business organisation comes under the
law that how it is operated and provides the flexibility to the management. The report has
been discussed on the Premier Inn Hotel which is a British hotel chain and the largest brand
in the UK having 72,000 rooms and 800 hotels. In the variation of the locations the hotel is
operated involving city centres, airports and suburbs. In 1987 the hotel was introduced by the
Whitbread as Travel Inn to compete with Travelodge. The headquarter is situated in
Dunstable, England, UK (Abednego, A. and Syah, T.Y.R., 2019). The Premier Inn has been
affected due to Covid-19 as the customer purchasing power declined due to loss in their job
and with the lock down the sales of the hotel is been affected. In the report the discussion is
on the organisational structure of premier inn and business environment is discussed by
including the SWOT analysis and PESTEL analysis which has been affected due to Covid-
19.
2 Organisational Structure of Premier Inn Hotel
The organisation structure describes how the organisation activities are divided,
grouped and coordinated among the employees and managers. On the design of the
organisation the structure involves the roles, rules and responsibilities. The premier inn uses
the organisation structure of hierarchical which is shaped in the pyramid form. From top to
the bottom the chain of command is followed and each employees have the supervisor. In
such structure the roles and responsibilities of department remains the same and well-
functioning is maintained. At the executive level it comprises of owner and general manager
which set the standards and policies for the hotel and for the implementation of standards and
policies is delegated to the general manager (Babu, M.V.M.S., 2020). The general manager
has the responsibility of managing the day-to-day activities and oversee the functioning of
several departments. In such the assistant manager is right hand of general manager which
provide support in number of tasks. The mid-managers of hotel include the position of front
desk, food and beverages, sales, housekeeping, marketing manager etc. In the hierarchical
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structure different layer of management is represented which has many leaders. The span of
control is narrow with less number of subordinates. The pathway of communication is long
which moves in chain of command. The organisation will be benefited with this structure as
manager have tight control on employees, area of business will manage closely and excellent
progression of opportunity is produced. It has a benefit of defining better level of authority
and responsibility. The employees are leads to chance of promotion by providing motivation
with clear paths. The drawback is with the increase in bureaucracy the innovation or
important changes are slow down. The lower level employees feel they have less ownership
and cannot express their ideas for company which takes long time for decisions (Garriga
Ferrer, M., 2020).
3 Business Environment Analysis of Premier Inn Hotel
The business environment are the marketing terms which refers the forces and factors
that has affect on the firm's ability. It comprises of internal and external environment which
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