Organisational Structure and Environmental Analysis of Premier Inn Hotel

This report explains the organisational structure of Premier Inn Hotel and analyses its business environment using SWOT and PESTLE tools. It identifies the internal strengths and weaknesses of the company, along with external opportunities and threats. The report also discusses the impact of political, economic, social, technological, legal, and environmental factors on the business of Premier Inn.

Case Study

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Explaining organisational structure of Premier Inn Hotel...............................................................1
Business Environmental Analysis of Premier Inn...........................................................................2
SWOT analysis of Premier Inn........................................................................................................2
Strengths-.....................................................................................................................................2
Weaknesses-................................................................................................................................2
Opportunities-..............................................................................................................................3
Threats-........................................................................................................................................3
PESTLE analysis of Premier Inn.....................................................................................................3
Political........................................................................................................................................3
Economic.....................................................................................................................................4
Social...........................................................................................................................................4
Technological..............................................................................................................................4
Legal............................................................................................................................................4
Environmental..............................................................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Business organisation referred to as an entity which is formed for the purpose of carrying
on commercial enterprise. This is makes important for every organisation to understand the each
aspects of business organisation properly for operating their business in better manner
(Vijayakumar, 2021). The following report is based on Premium Inn which is a multinational
hospitality’s expert business of United Kingdom as well as operates more than 800 hotels in UK
and other countries also. The company is popular for providing great and effective food and
comfortable rooms to their guests as well as it also focus on providing support to their charity
partners which includes Great Ormond Street Hospital Children’s Charity. The following report
provides the explanation regarding organisational structure of Premier Inn along with the internal
and external factors that may affects their business as a result of emerging situations such as
pandemics, crises, etc. by using environmental analysis tools which includes PESTLE and
SWOT.
MAIN BODY
Explaining organisational structure of Premier Inn Hotel
An organisational structure is described as a system which helps in outlining their certain
activities that are directed for achieving the goals of company. The organisational structure of
Premier Inn is connected and mixed up with many components for functioning well manner. The
structure of company influences the ability for achieving the strategic goals of the company.
There are around 10 members in the Board of directors of Premier Inn which includes senior
director, chairman as well as chief executives (Erthal and Marques, 2018). The board of directors
of company comprises various individuals with different and effective skills, competencies as
well as experiences. The company follows Hierarchical type of organisational structure which
helps company to operate their business in better manner. In this type of organisational structure
top to bottom direction is follows in top management commands managers of an organisation
and then managers commands to their low level employees and so on. Whitebread Plc is the
company founded in 1742 which helps in operating all the hotels of Premier Inn in UK. This
refers to an better defines levels for delegating authority and responsibility which helps top
executives to delegate duty and responsibility in better manner in order to help them to operate
their hotel effectively in order to provide better facility to their guests to operate their business in
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better manner. This will also help in understanding which employees need to report which
managers as well as communicate about their queries and problems in order to operate their
business in better manner (Liu, Tsui. and Kianto, 2021). This will also help them to motivate
their employees about their clear career paths and chances for promotion in the organisation.
This will also help in providing speciality to each employee in order to become specific and
experienced in their field.
Business Environmental Analysis of Premier Inn
It is important for the company to conduct environmental analysis by analysing their
internal and external environment that provides impact on the business in order to operate their
business in effective manner. With the help of SWOT and Pestle analysis, the environment of
Premier Inn can be analysis and that are described below:
SWOT analysis of Premier Inn
This refers to a framework which helps company to analyse their internal and external
environment by identifying their internal strengths and weaknesses along with external
opportunities and threats (Teoli, Sanvictores and An, 2019). In context of Premier Inn, its
strengths, weaknesses, opportunities and threats are described below:
Strengths-
 The strongest strength for the company is its dedicated and extremely driven
professionals which help in providing better facility to their customers.
 Its advanced reservation system helps them to make reservation of customers faster in
order to make them free from waiting for long term.
 The distribution system of company is also fully automated as well as advanced in
technologically which helps company to provide fastest service to their customers.
Weaknesses-
 The company is lacking in providing global footprint which is important in order to
operate their business in better manner.
 The margins of company is small because the presence of strongest competitors in
hospitality industry.
 The company is also facing related to the maintaining hygiene in their hotel as it also
most important for the health and safety of customers.
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Opportunities-
 The biggest opportunity for the company is development in digital technologies which
helps company to use various digital platforms in order to market their service in all over
the world.
 The company can also focus on expanding their business in any other countries also for
increasing their customer’s base (Hajizadeh, 2019).
 The company is also focus on customer satisfaction by increasing its value.
Threats-
 The strongest threat for the company is increasing competition within retail industry
which may affect their competitive growth.
 Pandemic situation in also creates threats for the company in order to operate their
business smoothly.
 The negotiable of customer is may also create problem for the company because many
hotels are providing cheap services to them.
PESTLE analysis of Premier Inn
PESTLE analysis refers to a framework which helps company to analyse their macro
environment in order to identify the factors that are impacting their business environment. In
case of Premier Inn factors of PESTLE analysis are described below:
Political
This involves those factors that affect the business environment of an organisation due to
government intervention. These factors are heavily effecting hospitality industry by imposed
various rules and regulations (Zahari and Romli, 2019). Travel bans in the country are creating
risk for Premier Inn Hotel in order to operate their business. Government also imposed high
taxation on hospitality industry on the sale of their services which also creates problems to
Premier Inn in order to earn more profit.
Economic
This includes those factors that affect company by the continuous changes in the
economy. The hospitality industry is the one who create largest investment in the global
investors. Fluctuations in the economy may affect vacations time which also creates problems for
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Premier Inn to operate their business. Low interest rates of the economy increase the spending of
customers which may provide benefits to them.
Social
These are factors that affect the businesses due to sudden changes occurs in the society.
Lifestyles changes, living conditions and social connections are factors that create cultural and
social shifts which also impact the business environment of premier Inn. Changes in the
preferences of customers may also affect company in order to operate their business in better
manner.
Technological
Rapidly innovation and development in technology will also affect the business
environment of a company. The increase in using of computers and internet suffering along with
the availability of various mobile app help Premier Inn in order to operate their business in
effective manner. Rise of use of digital technology creates opportunity for the company to grab
attention of most of the customers in order to operate their business in effective manner (Jafari
and Othman Soleiman, 2020).
Legal
There are certain laws which are affecting the business environment of companies. Sudden
changes in the regulatory system of a country may affect its business environment of Premier Inn
and it can affect its administrations. The Premier Inn needs to focus on the minimum wage rate
of the country by providing proper salary to their staff members in order to follow employment
law properly and make their staff members to work effectively in the organisation.
Environmental
Changes in environment and climate of a country will also affect the business environment
of an organisation. Water and air pollution of the country affects the heritage of various
destinations which may affects their popularity which affects the business environment of
Premier Inn as it decreases the bookings in the hotels. Government of the country also imposed
various regulations on the business in order to protect the environment and natural resources
which also affects the Premier Inn in their smooth operations.
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CONCLUSION
From the above mentioned report, it has been concluded that the business organisation is an
entity which makes company to earn profit by performing several functions and operations.
Organisation structure of the company describes how the different functions along with the
authority and responsibility are provided to their members. Hierarchal organisational structure is
most useable and important structure which delegate authority and responsibility of the
organisation from top to bottom. Business environmental analysis helps company to analyse their
internal and external environment that affects their business environment. SWOT analysis help
company to identify their strengths, weaknesses, opportunities and threats. PESTLE analysis
help Company to identify the factors that have potential in order to affects their business which
includes political, economic, social, technological, legal and environmental.
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REFERENCES
Books and Journals:
Vijayakumar, A.N., 2021. Farmer producer organisation: an emerging business model for
empowering small and marginal farmers in India-a case study. International Journal of
Indian Culture and Business Management, 24(4), pp.481-502.
Erthal, A. and Marques, L., 2018. National culture and organisational culture in lean
organisations: a systematic review. Production Planning & Control, 29(8), pp.668-687.
Liu, G., Tsui, E. and Kianto, A., 2021. Knowledge-friendly organisational culture and
performance: A meta-analysis. Journal of Business Research, 134, pp.738-753.
Hajizadeh, Y., 2019. Machine learning in oil and gas; a SWOT analysis approach. Journal of
Petroleum Science and Engineering, 176, pp.661-663.
Teoli, D., Sanvictores, T. and An, J., 2019. SWOT analysis.
Zahari, A.R. and Romli, F.I., 2019. Analysis of suborbital flight operation using
PESTLE. Journal of Atmospheric and Solar-Terrestrial Physics, 192, p.104901.
Jafari, H. and Othman Soleiman, K., 2020. Assessment of effective environmental factors in oil
and gas industry policies using PESTLE & SWOT analysis (case study: Kurdistan,
Iraq). Environmental Sciences, 18(3), pp.134-151.
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