Understanding Business Organisation: Analysis of Premier Inn Hotel

This report provides an analysis of the organisation structure and business environment of Premier Inn Hotel. It includes a SWOT and PESTEL analysis to identify the strengths, weaknesses, opportunities, and threats of the company. The report also discusses the advantages and disadvantages of a tall organisational structure and the impact of political, economic, social, technological, legal, and environmental factors on the company.

Business organisation

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
Organisation structure..................................................................................................................1
Business environment analysis of Premier Inn Hotel..................................................................2
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Business organisation can be described as entity formed for purpose of carry out different types
of commercial activities. It is considering different types of laws government by legal authority
and government of a specific country (Ahmad and Bakar, 2019). This project report includes
study of Premier Inn which was introduced in the year 1987 in UK. It is a UK based organisation
and also considering largest hotel chain of UK. It has around 72000 rooms as well as 800 hotel in
all over world. It is operation hotel in different location like city centres, airports, suburbs. It was
established by Whitbread as a Travel Inn. This project report includes analysis of organisation
structure of premier Inn hotel. It also analyse business environment of premier Inn hotel by using
internal and external analysis tool in business. This project aims to improve knowledge of
international analysis which assist to identify factors present insider business. It also provide
understanding of external factors that are present outside business and create serious impact over
business.
MAIN BODY
Organisation structure
Organisation structure can be described as system which outline ways in which different
activities are directed towards attainment of goals of organisation. These activities consist rules,
responsibility and roles. It is a structure which also determine ways in which information flows
among different level of company. Premier Inn is one of large organisation that is providing its
products and service in international market. It is adopting tall organisation structure that
includes long chain of command that is similar to military (Bennett, et. al. 2019). With growth of
organisation, it will also results in increase in number of level of management. In this type of
organization structure, managers of company form different ranks and also controlling small area
of business. With adoption of this organisation structure, there are various benefits and limitation
also possess by company.
Advantage of Tall organisational structure:
Tall organisation structure provide various advantage for organisation of Premier Inn as it allow
them to organise command in a ways that does not create confusion for employees. It allow both
management of company and executives to discussion different decision before implementation
of it over employees. It also provide evident responsibility to each employees and also does not
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create fluctuation in responsibility of a person. It provide clear promotion options to a person that
allow them to focus on different promotion options to a person and also allow them to provide
clear responsibility to different employees.
Disadvantage of Tall organisation structure:
There are also different disadvantage of using tall organisation structure in Premier Inn. It is
providing lack of freedom among employees as it make management of a company more strict
and provide limited freedom to employees to make decision (Beynon-Davies, 2019). It will also
results in increase expenses of company as there is specific managers for each group of
employees that will increase cost if hiring for company. It also limit number of employees for
company to communicate with customers.
Business environment analysis of Premier Inn Hotel
Business environment analysis is a tool which is used by companies for purpose of analysing
environment of a company in which they operate and identify factors that create negative impact
over operation of company. There are basically two types of business environment including
internal environment and external environment.
SWOT analysis:
SWOT is an internal external analysis which helps to identify factors like strength, weakness,
opportunity and threat of company. It helps business to identify threat and weakness in company
and helps to overcome of it on basis of strength and opportunity (Beynon-Davies, 2021)
(Chawla, 2020). Explanation of this analysis in context of Premier Inn is mentioned below:
Strength Weakness
Occupancy rate of premier inn is around 76.3%
which is crating positive situation for
company. As its guest like cosy duvet,
blackout curtains and pillow offered by
company.
Premier Inn has strong presence in market as it
has around 8200 hotels in UK which includes
around 80000 rooms. It reflect that company
has million of customers that provide them
Premier Inn has limited global presence in
international market. It is operating in
internation market but it is operating in limited
number of countries.
It is also refusing to refund to customers during
period of lock downs that create impact over
image of company in minds of customers.
Premier inn is also facing hygiene issues as
staff of this hotel has used guest towel for
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huge profit. purpose of cleaning bathroom and toilets.
Opportunity Threat
Premier Inn will get opportunity to explore
new market as it has opened its hotel in
Germany which is developed country that
provide worth to efforts of company.
There is also future opportunity for company in
Germany in Germany and this organisation has
around 28 hotel in that country (Cooke, Fanon
and Campean, 2020).
Premier inn can also make changes in its
interior, design and décor that will allow them
to attract more guest to their organisation.
There are numbers of strong marketing players
who are providing their service in same
market. It will create threat for profitability and
marketing share of company.
Due to threat of covid-19, government of UL
has put various restriction over this hospitality
organisation that also create threat for business
of Premier Inn.
PESTEL analysis:
It is one of external analysis which is used by managers of company for purpose of identification
of factors present in outside business. It allow managers of Premier Inn to identify factors like
changes in rules of government, economic growth. Changes in technology, cultural difference,
environmental regulation and different legislation. Explanation of these factors in context of
Premier Inn is mentioned below:
Political Factors: Government of UK has made various changes in their rules and regulation due
to Brexit and create negative impact over operation of Premier Inn as company also needs to
made changes in their organisation. But Due to covid-19 situation, UK government is providing
support to hospitality industry which create opportunity for business of Premier Inn.
Economic Factors: UK is a developed country and people has high purchasing power which
allow Premier Inn to sold their services to people of UK and allow company to attract customers
towards their services (Cruz-Jesus, Pinheiro and Oliveira, 2019). Wages rate in UK is high that
will also increase cost of company and reduce profitability level of customers.
Social Factors: People of UK liked to spend money on tour and travelling activities that provide
opportunity for Premier Inn as they can attract customers and can sale their services to them. But
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at same time, there is cultural sensitivity among people that create threat for company as they
needs to ensure any move of company does not affect cultural values of people.
Technological Factors: UK is developed country and has advance and upgraded technology that
create opportunity for Premier Inn to use advance and upgrade technology in their organisation.
But it also create threat of data breaching, cyber crime and others.
Legal Factors: There are different types of laws and legislation which is to be followed by
Premier Inn UK that create good impact over image of company and also helps them to avoid
interference of legal authority. But it also cause delay in decision making process as they needs
to take permission from legal bodies.
Environmental Factors: It is another important factor that create opportunity for Premier Inn as
there is increasing environment awareness among UK and premier Inn is adopting all
environmental regulation. It create good impact over image of company but at same time, it will
also creating negative impact over image of Premier Inn.
CONCLUSION
From above mentioned project report, it can be concluded that company is operating in
environment where there are different factors available and create threat and opportunity for
business. It is essential for managers of Premier Inn to identify these factors on timely manner as
it helps them to overcome of these factors in business and also helps them for purpose of
developing strategies to overcome of it. Due to pandemic situation, there are various threat occur
in market which can be overcome of by company on basis of opportunity and strength of
company. There are different external factors also create impact over performance and
profitability of company. These factors can be arise due to changes in rules of government, crisis
in economy and others. In order to overcome of it, managers of Premier Inn is making strategies
which allow them to develop actions and tactics to overcome of it. It will provide guidance to
action and tactics of people that is important for them.
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REFERENCES
Books and Journals:
Ahmad, N.A. and Bakar, N.A.A., 2019. Moderating effect of organisation size in measuring the
technology organisation environment and pressure (TOEP) in enterprise architecture
adoption.
Bennett, R.J., Smith, H., Van Lieshout, C., Montebruno, P. and Newton, G., 2019. The age of
entrepreneurship: Business proprietors, self-employment and corporations since 1851.
Routledge.
Beynon-Davies, P., 2019. Business information systems. Red Globe Press.
Beynon-Davies, P., 2021. Investigating Domains of Organisation. In Business Analysis and
Design (pp. 89-104). Palgrave Macmillan, Cham.
Chawla, P., 2020. Impact of employer branding on employee engagement in business process
outsourcing (BPO) sector in India: mediating effect of person–organization fit.
Industrial and Commercial Training.
Cooke, K., Fanon, S. and Campean, F., 2020. Development of an innovative integrated
curriculum for process improvements in a product development organisation. LACCEI,
Inc.
Cruz-Jesus, F., Pinheiro, A. and Oliveira, T., 2019. Understanding CRM adoption stages:
empirical analysis building on the TOE framework. Computers in Industry, 109, pp.1-
13.
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