Organizational Structure and Business Environment Analysis of Premier Inn Hotel

This case study analyzes the organizational structure of Premier Inn Hotel and presents a SWOT and PESTLE analysis of the business environment. It discusses the strengths, weaknesses, opportunities, and threats of the entity and evaluates the political, economic, social, technological, legal, and environmental factors affecting its operations.

CASE STUDY

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Organizational structure of Premier Inn Hotel ............................................................................3
Business environment analysis ...................................................................................................4
SWOT Analysis of Premier Inn Hotel ........................................................................................4
PESTLE Analysis of Premier Inn Hotel .....................................................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................1

INTRODUCTION
Premier Inn belongs to British limited service hotel chain and it is the UK largest hotel
brand having more than 800 hotels. It functions in variety of areas involving city centres, airports
in competition with similar to Travelodge and Ibis hotel. It was established in 1987 by Whitbread
namely as Travel Inn to to give the competition to Travelodge. Further, Premier Lodge was
introduced in 2004 and merged with Travel Inn to make the current business in the name Premier
Travel Inn which given the short name of Premier Inn in 2007.
In this case study it will analyse the organizational structure of Premier Inn Hotel which
represents how the departments of the hotel works to achieve the objectives. In order to present
current business environmental influences some models will be executed. It will be discussing
the SWOT analysis where different aspects of the entity would be taken into consideration, such
as internal and external environmental elements affecting business operations. For articulating
external business environment PESTEL analysis will be carried out, in which political,
economical, social, technological, environmental and legal elements are to be deciphered. At the
same time an intensive study would be presented to articulate current circumstances of Premier
Inn hotel (Auchter and et.al., 2018).
MAIN BODY
Organizational structure of Premier Inn Hotel
The structure is followed by Premier Inn is hierarchical, where every employee has
clearly defined with role and responsibilities. Specifically each department is undertaken by the
medium and low level managers, and they coordinate staff activities, supervise work and monitor
the performance. The financial manager operates the work for hotel cash and accountancy,
logistic managers are responsible for maintenance and purchases (Vlados, 2019). Mostly in the
structure of hospitality industry it includes the services such as front desk, kitchen staff,
housekeeping staff, marketing and accounting. The purpose of the structure is to define the
responsibility and authority of each department as well as staff members. Having the correct
structure will avoid unnecessary expenses and keep on the operations running in smooth and
effective manner with enhancing the employee productivity and efficiency. Premier Inn make
use of span of control where department can report to respective manager in any circumstances.

They make use of narrow spans of controlling representative management dominance to assistant
managers, supervisors, head of department for day to day issues.
There are five departments in the structure such as food and beverage, rooms, human
resource, accounting and marketing. F&B are responsible for the carrying the room service as
well as bar and restaurant operation as well. Human resource handles staff recruitment, benefits
and training. Department of room handles the service provided to customer and dealing in
solving their issues. Accounting oversees the ledger whereas marketing is provided with
responsibility to sell ad space in hotel and promotions (Wang and Wang, 2020). With 820 hotels
in UK and maintaining the structure of their hotels gains the customer loyalty and attention for
staycation as relations with them served in well manner. Overall managing the responsibilities
will ease the functioning of department and enhance the efficiency and productivity of
employees.
Business environment analysis
Business environment consist of all those factors which affect operation of company and
involves customers, stakeholder, competitors, suppliers, social and economic factors etc. It
brings both opportunities and threats to the business, whereas understanding to the environment
assist management for future planning and decision-making. The competition rise with entry of
new firms in the marketplace (Poulik and Ghorai, 2022).
SWOT Analysis of Premier Inn Hotel
Strengths
Branches of hotels at several locations arrives with key benefits as many Premier Inn
Hotels are situated nearly to airports and universities as well which gain more tourist attention.
After Covid19 restriction ease the owner of hotel is banking on marketing Harness pent-up
demand among consumers for stay cations to make business recovery. It has the strong presence
in UK which serves five million customer every month.
Weakness
The limited global presence is the weakening pint of the Premier In Hotel as compare to
other market giants it operates in the limited amount of countries. Also, there are refund issues
where they been suspect for refusing to refund to customers who make their booking and
appeared under strict lock downs (Benzaghta and et.al., 2021). There are hygiene issues, in 2018
it was found out housekeeping staff is making use of same guest towels for cleaning purposes.

Opportunity
The major opportunity for Premier Inn was extending to the new market, while
successfully entering into Germany it has also got into the democracy of Ireland as well. There
are 28 hotels in Germany and country provides the growth opportunity for hotel due to most
visited country in Europe. The new décor to the hotels will surprise the guest as with the budget
price segment, the unique look will gain more attention of the customer as compare to
competitors.
Threats
The biggest threat for Premier Inn are the competitors in current situation the main
competitor is Holiday Inn, Easy hotel and with same budget category the string competitors is
Marriott and some other Independent hotel who provide better price (Hajizadeh, 2019). The
pandemic has also affected the business performance in which Premier Inn was having the major
impact, similarly same situation will be challenging for future. There are some risk of legal
actions for organization.
PESTLE Analysis of Premier Inn Hotel
Political factors
The positive and practical collaborations with the UK government leads Premier Inn in
the growth area of economic performance in UK. The industry is the UK fifth large industry and
is in lead of financial service, communications, transport and construction sectors. The Budget
Hotel Sector is growing towards the success which will be more valuable in future terms as well.
Supply can be increased if Premier Inn provide to fulfil the demand of customers and provide
tough competition in market (Beatrix and Irawan, 2022).
Economic Factors
The economic crisis conveyed benefits for Premier Inn, budget hotels are analysed as the
low-level goods whereas in time of economic condition demand for service Premier Inn gives
can rise. It can be less effected as compare to the superior hotels. In comparison to Marriott
Hotel who provide the high quality to the hotel chain range, it becomes more clear as the scope
of success of Premier Inn is made where the Marriott faces the loss.
Social Factors
Social circles and change in life styles as well as living standard of people brought
changes in social and culture around the world (SALTAMARSKI, 2021). With the increased

living cost many people prefer low cost product and services with the high regulation of value
for money. Social changes come with various thought process and influences the hospitality
sector all around. With easy accessible of hotel availability a good deal of tourism engage them
to stay in hotels with the affordable prices.
Technological Factors
Technological factors influence the business operations, these operations of hospitality
sector doesn't include high level technology. Focusing technology is budget hotel sector which
is direct linked up with the electric appliance availability and IT service for customer
satisfaction. The latest development of IT helps to maintain the easy functioning of hotels and
supports to form the core management system of supply chain (Achinas and et.al., 2019).
Premier Inn is maintains the unique and attractive look for their website and deliver new product
offerings.
Legal Factors
for avoiding the legal issues and maintaining the high standard which introduced as
Responsible Sourcing Policy. It describes the minimum standard and rule of cooperation which
Premier Inn requires from suppliers, business partners and contractors. Also, it fixes commitment
to work in contact to suppliers for supporting the enforcement of policy.
Environmental Factors
The protection of environment and social duty are considered as middle stage to customer
expectation and preferences. Customers are more alert and make favour of the organization who
think for environment and make business operation which decreases pollution and waste
disposals (Christodoulou and Cullinane, 2019). Premier Inn approach for the environment
concern is guided by the environment and energy policy which consumes number of principles
as it must be followed.

CONCLUSION
From the report above it can be concluded that the business environment of the
organization is showing sort of positive trends the entity is engaged in hotel sector where drastic
environment has been a general phenomenon. The report closely analysed business environment
for Premium Inn which works with its more than 800 hotels across the nation.
To analyse the internal business environmental elements SWOT analysis was carried out, where
in the prevailing circumstances the strengths and weaknesses of the entity had been articulated,
at the same time the factors offering opportunities and having potential to cause trouble were
evaluated. Where some opportunities such as attractive performance of the entity in European
nations was also deciphered.
For analysing external business environment PESTEL analysis executed, where for
Premium Inn which works as one of the biggest hotel facility provider organization of the nation
had been taken into consideration. With this regard political aspects, economical, social and
cultural, technological, economical and legal elements were discussed. It revealed current market
dynamics and their potential impacts on the performance of the entity.

REFERENCES
Books and journals-
Achinas, S., and et.al., 2019. A PESTLE analysis of biofuels energy industry in
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Auchter, A. M.,and et.al., 2018. A description of the ABCD organizational structure and
communication framework. Developmental cognitive neuroscience. 32. pp.8-15.
Beatrix, M. and Irawan, A. P., 2022. April. PESTLE Analysis for Indonesia’s MSME during
Covid-19. In 3rd Tarumanagara International Conference on the Applications of Social
Sciences and Humanities (TICASH 2021) (pp. 1907-1910). Atlantis Press.
Benzaghta, M.A., and et.al., 2021. SWOT analysis applications: An integrative literature
review. Journal of Global Business Insights. 6(1). pp.55-73.
Christodoulou, A. and Cullinane, K., 2019. Identifying the main opportunities and challenges
from the implementation of a port energy management system: A SWOT/PESTLE
analysis. Sustainability. 11(21). p.6046.
Hajizadeh, Y., 2019. Machine learning in oil and gas; a SWOT analysis approach. Journal of
Petroleum Science and Engineering. 176. pp.661-663.
Poulik, S. and Ghorai, G., 2022. Estimation of most effected cycles and busiest network route
based on complexity function of graph in fuzzy environment. Artificial Intelligence
Review. pp.1-18.
SALTAMARSKI, D., 2021. WINE SECTOR ANALYZED THROUGH PESTLE ANALYSIS
AS A PART OF THE STRATEGIC MANAGEMENT. Journal of Sustainable
Development. 11(27). pp.75-86.
Vlados, C., 2019. On a correlative and evolutionary SWOT analysis. Journal of Strategy and
Management.
Wang, J. and Wang, Z., 2020. Strengths, weaknesses, opportunities and threats (Swot) analysis
of china’s prevention and control strategy for the covid-19 epidemic. International
Journal of Environmental Research and Public Health. 17(7). p.2235.
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