Understanding Business Organisation: Organisational Structure and Business Environment Analysis of Premier Inn Hotel
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This report discusses the organisational structure and business environment analysis of Premier Inn Hotel, including SWOT and PESTLE analysis. It covers the strengths, weaknesses, opportunities, and threats of the company, as well as the impact of COVID-19 on its operations.
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Level 0 Guide – Case Study 2021/2022. Understanding Business Organisation 1
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Table of Contents 1Introduction........................................................................................................................2 2Organisational Structure of Premier Inn Hotel..................................................................3 3Business Environment Analysis of Premier Inn Hotel......................................................4 3.1SWOT Analysis...........................................................................................................5 3.1.1Strength................................................................................................................5 3.1.2Weaknesses..........................................................................................................5 3.1.3Opportunities........................................................................................................6 3.1.4Threats..................................................................................................................6 3.2PESTLE Analysis........................................................................................................6 3.2.1Political Factors....................................................................................................7 3.2.2Economical Factors..............................................................................................7 3.2.3Social Factors.......................................................................................................7 3.2.4Technological Factor............................................................................................7 3.2.5Legal Factors........................................................................................................8 3.2.6Environmental Factors.........................................................................................8 4Conclusion..........................................................................................................................8 2
1Introduction Business environment is a sum of different external and internal factors influence the business operations of company. This report is based on the case study of Premier Inn Hotel. The organisation was established in the year 1987 by the founder Whitbread. The headquarter of the company is located in Dunstable, England, UK. Company is serving areas include United Kingdom, United Arab Emirates, Republic of Ireland, Isle of Man, Germany and Jersey. The comp[any is associated with the hospitality sector. This report will discuss the organisation structure of the Premier Inn Hotel. Business environment analysis will also discuss under this project. SWOT Analysis will also be a part of the discussion under this project. Furthermore, report will discuss the external business environment analysis in context to the organisation. Different factors related top the external business environment will be a part of the discussion under this project. The entire project will talk about the all different areas and elements related to the external business environment.As Premier Inn hotel is facing huge issues due to the pandemic of covid-19 as there has been shut down of the nation which have affected the purchasing power of people, thereby affecting sales of the company. This report will discuss about SWOT and PESTLE of company and how covid have affected it. 2Organisational Structure of Premier Inn Hotel The organisation structure of the Premier Inn Hotel is divisional. As the overall structure of the company is segregated into different divisions that can support the organisation to manage all different functional directions associated with the business entity. Hospitality sector associated with multiple services and operation area. The role of the divisional structure is such that it contain multiple divisions such as logistics, supply chain, operations, reception, food, restaurant, bar, laundry and many such services that support the company to offer all different services at the organisation (Andriotis and Paraskevaidis, 2021). Each of the service at the Premier In Hotel is segregated in to various departments and functional areas that is further segregated into the various departmental operations. In context to the hospitality sector organisation it is essential to have a multiple departments and service areas to be managed. As the Premier Inn Hotel could support the company to ensure the proper control over the management and operations of company. The hierarchical structured allow 3
the company to have multiple service areas that can favour the business organisation to expand the overall success of business operations. This favour the company to manage all different service areas which can allocate the proper management of business activities. Hierarchical structure is also associated with the company. Every division associate with the business entity contain a proper hierarchy that favour the business entity to expand the overall success of venture. This is essential and important requirements of the company that it hold the all different service areas which favour the company to manage and control all different functional areas associated with the company. This structure favour the organisation in controlling and managing all different functional activities associated with business entity. This organisation structure support the company in enhancing the overall progress and growth of the business entity. Figure1Organisational Structure of Premier Inn hotel 3Business Environment Analysis of Premier Inn Hotel Business environment is a comprehensive tool used to denote about all different external and internal factors associated with the business environment. The business environment 4
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model is more like emphasising over all the various external and internal elements or factors influence the business operations of the Premier Inn Hotel. Models like SWOT analysis and PESTEL analysis is used to consume the proper policies adopted with support of the all these various factors of business environment. 3.1SWOT Analysis SWOT Analysis comprises with the different strengths, weakness, opportunities and threat part of the company. All these are the multiple areas associated with the company to demonstrate about the all different strengths, weakness, opportunity and threat associated with the Premier Inn Hotel. This model demonstrates about the all various internal forces that affect and impact over the business operations channelises by the company. 3.1.1Strength Premier Inn Hotel has been awarded as the hotel chain of the year at British travel awards. The hotel brand is denoted as the largest in United Kingdom with more than 50000 rooms nearly 700 hotels occupied by the chain (Kulshreshtha and Kulshrestha, 2019). The hotel is considered as the highly advertised and promoted that could generate a positive brand image in the respective target market of United Kingdom. The brand image of the company is premium in nature that could allow the organisation to attract both normal customer base and corporate customer base. Company offer various deals and offer by booking online. This could favour the company to enrich the overall success even in the presence of the aggressive level of market competition. The company is further awarded as the finest hotel chain in Britain. The positive brand value of the hotel could favour in enhancing the overall success in the hospitality sector of United Kingdom..This brand image of the hotel which it has built over the years will help it to attract its potential and existing customers. The offers and discounts will help in attracting customers in order to enhance sales. 3.1.2Weaknesses The competition in the hospitality sector is very intense and aggressive that offer a huge level of downfall in customer retention. The more competition always create an issue of high employee turnover as the different hospitality brand offer employment and growth 5
opportunities to the human resources that create an imbalance in the organisation and its operations. Financial management also contain an issue as the many time company face the liquidity related issues against channelising the business operations. In comparison to the other hospitality brands global presence is not as effective as compare to the other hospitality sector brands. Inflation in economy and downfall of many economies could also offer more challenges to the Premier Inn Hotel.Hence, due to covid, there has been rise in the inflation rate in Uk which may affect the sales of Premier Inn as there will be less spending power of people which will affect the profitability of company. 3.1.3Opportunities Company should also formulate more strategic tie up that can favour the business entity to entertain the business operations in the best way possible. Company also contain a major growth opportunity in digital marketing. Professionals and marketing team at the Premier Inn Hotel should approach various digital marketing campaigns with the use of tag- lines and visual projection of ideas and other such elements that can support the company in achieving all its various business objectives (Martins, Amaro and Silva, 2021). Company also own a major growth opportunities for building the brand value with support of positive customer experience and engagement. Business expansion is also a key business growth and development opportunity own by the company.By using the digital marketing, customer engagement and experience, the hotel can attract customers as it will help in building brand value which will help enhancing sales. 3.1.4Threats The covid pandemic can be stated as a major threat for the growth of company. Backpackers hotel is another threat face by the company. Due to covid, the people may have fear of contacting with the virus due to which they may not consume the services of the hotel. So this may be threat to hotel. 6
3.2PESTLE Analysis External business environment involve various factors and element like Political, economic, social, technological, environment and legal factors support the company to ensure the achievement of all different objectives of company 3.2.1Political Factors Political factor is a part of external factor of business environment. Government in United Kingdom has been engaged under various stratefgic collaborations with different stakeholder groups and government agencies to expand the overall growth of the sector. According to the data and records hospitality sector of United Kingdom is considered as the fifth largest sector at a global level (Göbel and et.al., 2017). Government has formed a progressive policy related to skill development, funding related practices and other policies related to licensing that could empower the business entity to ensure a huge success in the hospitality sector. In recent time business expansion could have been improved in United Kingdom as due to the efforts put by the government business entities do not face issues in acquisition of land and building for converting into the hospitality chain. 3.2.2Economical Factors Economies at a global level economies have emerged rapidly. The income of the people in United Kingdom and across the globe has increased. Inflation in the economy is also well controlled as it is below the limit of 2% that could also favour the company to sustain a good flow of operations in the respective target market (Dinc and Akcakanat, 2020). Economic growth at a global level could motivate the people to travel across the globe. 3.2.3Social Factors When it comes to exploring or travelling United Kingdom is noted as the top prioritised venue due to availability of all top class hotels, venues, locations, landmark, history and many such factors. The people also like to travel especially the young generation at a global level like to explore different places (Perera and Dayarathna, 2019). All this could 7
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become one of the core reason for enhancing the overall growth and development of the business houses. 3.2.4Technological Factor It is associated with It sector in United Kingdom has been emerged rapidly. The hospitality sector in United Kingdom has installed all the high level of technologies. Today start with the research and end up with the services in processing every single functional areas technologies is utilised. 3.2.5Legal Factors It involve in hospitality sector offer all different environment friendly policies and products. The services are also favourable in context to the environment protection agenda. Companies also engaged in various corporate social responsibility initiative that favour the organisation to ensure the major growth and development possibilities in the respective target market. 3.2.6Environmental Factors It involveall different laws like licensing act, contract act, minimum wage payment law and any such legislations are applicable over the company. 4Conclusion Hospitality sectors is one of the emerging sector at a global level. The sector offer various growth and development opportunities comprises with online and offline services. The technology is also engaged with the stage of research for searching the right location and end up with providing post sale services to customers. This can be stated that digital marketing is one of the major growth and development opportunity associated with the Premier Inn Hotel.The business environment comprises with all different factors and elements such as political, economic, social, economical, technological and such like factors demonstratethefactthatorganisationcontainapositivecultureandenvironmentto 8
channelises the business operations of venture. SWOT Analysis has clearly shown different strengths of organisation such as brand value, customer engagement and such like element that support the business entity to achieve the overall business objectives under respective target market. Competition in the industry is very aggressive in nature that restrict the business entity to ensure the overall growth and development possibilities of the business venture. The presence of company is at the global level that support at some level to cut down the competition in the market. 9
Reference Page Andriotis, K. and Paraskevaidis, P., 2021. Negotiated exchanges in the online hospitality market: Hoteliers and hotel managers’ perceptions of Booking. com.International Journal of Hospitality Management.97. p.103010. Göbel, C. and et.al., 2017. Implementing sustainable business models in the hospitality sector withthehelpofamissionstatement.InternationalJournalonFoodSystem Dynamics.8(2). pp.165-169. Dinc, M. and Akcakanat, T., 2020. The Mediating Role of Proactive Personality in the Relationship Between HEXACO Personality and Motivation to Learn: A Study on HospitalitySectorEmployees.InOrganizationalBehaviorChallengesinthe Tourism Industry(pp. 387-410). IGI Global. Perera, D. K. D. and Dayarathna, N. W. K. D. K., 2019. The Effect of Talent Management of Executive Level Employees on Organizational Performance in Hospitality Industry in Sri Lanka: A Case Study.Human Resource Management Journal.7(2). p.1. Kulshreshtha, S. and Kulshrestha, R., 2019. The emerging importance of “homestays” in the Indian hospitality sector.Worldwide Hospitality and Tourism Themes. Martins, D., Amaro, S. and Silva, S., 2021. The importance of shift work: The hospitality sector.JournalofTourism&Development=RevistadeTurismoe Desenvolvimento.36. 10