Business Environment Analysis of Premier Inn Hotel

This report discusses the organizational structure, SWOT & PESTLE analysis of Premier Inn Hotel, the largest hotel chain in the UK, to measure the impact of internal & external environmental factors on their business as a result of Covid-19 pandemic.

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Understanding Business
Organisation

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................................................................................................................5
3.1.3 Opportunities.............................................................................................................5
3.1.4 Threats.......................................................................................................................5
3.2 PESTLE Analysis.............................................................................................................5
3.2.1 Political Factors.........................................................................................................6
3.2.2 Economical Factors...................................................................................................6
3.2.3 Social Factors.............................................................................................................6
3.2.4 Technological Factors................................................................................................6
3.2.5 Legal Factors.............................................................................................................7
3.2.6 Environmental Factors...............................................................................................7
4 Conclusion...............................................................................................................................8
5 References................................................................................................................................9

1 Introduction
Hospitality industry is containing as the broad category field which cover the larger market
and interrelated with the service industry which mainly include food & beverage, theme parks,
accommodation, event planning, travel & tourism and many others which also incorporated with
the hotels, resorts, tourism agencies, bars and restaurants (Adeyeye and et. al.,2019). Due to
covid pandemic, the entire situation of market in totally change and now industry are looking
forward to recover the losses of the pandemic & maintain by whole market situation. This
assessment is depend about the Premier Inn Hotel which is well established UK ' largest hotel
chain founded in the year 1987 and headquarter of this hotel is situated in Dunstable, UK. This
assessment will discuss about the organizational structure which is utilizing by hotel.
Furthermore, this assessment will determine the business environment analysis in which internal
& external factors will be Identify with the help of SWOT and PESTLE analysis. The aim of
this report is to measure the impact of internal & external environmental factor on on their
business as a outcome of Covid 19 pandemic utilizing bthe environment analysis tools like
SWOT & PESTLE so that hotel can effectively manage their regular operations to obtain more
competitive benefits.
2 Organisational Structure of Premier Inn Hotel
Organizational structure is playing the Integral part in the development of the working
activities & operations within an organization. The main motive ro adopt effective organizational
structure is that it can helpful to enhance the healthy working environmental considerations and
improve the disciplinary actions among the employees. There are numerous kind of
organizational structure are adopting by companies whether it is small, medium or large. In
context of Premier Inn hotel, tall or hierarchical organizational structure is following by the
hotel. In this organization structure, many leaders & layers of the management & business are
associated which mainly contain the top - down approach and maintain the long chain of the
command. Hotel used this structure which can useful to maintain the flow of communication
among each & every staff members.
Benefits and Drawback of organization structure of Premier Inn Hotel

In context of benefits of this structure, tall organisational structure, top level of people are
responsible to take decisions and maintain the proper chain of command and also responsible to
formulate the operational strategy & improve the flow of communication so that upper level &
middle level managers can effectively contribute in the decision making process of the
organisation and improve the working operations appropriately. This structure is aid in improve
the productivity & accountability of the employees (Chaleunsouk, 2017).
In context of drawback, tall organizational structure, it contain so many layers of the
management so it take more time to take decision to reach the employees that is considered the
main drawback of this structure. Staff members and workers are not properly empowered to take
decisions without any e approval of their supervisors & managers. Staff members in tall structure
feel disconnected from the the top level employees because they are really connected with each
other is also considered as the drawback of this structure (George, 2021).
3 Business Environment Analysis of Premier Inn Hotel
Business environment is incorporated with the internal & external factors which affect the
functioning and operations inside and outside of the organization. With the help of business
environment analysis, organization can improve their functioning including customers, demand
and supply, employees, management department and business regulation so that organization can
appropriately enhance their productivity in order to take more competitive advantages
(Goryushkina and et.al. , 2019).
3.1 SWOT Analysis
This analysis is containing as the strategic framework which is useful to analyzing the
strengths and weaknesses so that company can remove their threats in order to receive more
opportunities.

3.1.1 Strength
The main strength of this hotel is that , Premier Inn hotel is containing as the largest chain of
hotel in UK which operating more than 700 hotels and 50000 rooms. This hotel got the award of
hotel chain of the year at the British travel. To maintain the Covid situation, hotel is offering the
various offers to their customers for the online booking (Goyal and et.al., 2017).
3.1.2 Weaknesses
Due to covid pandemic, market situation fluctuate adversely and the whole market of the hotel
affected negatively. In the long period, social distancing protocol became mandatory for the
people so that time no one went outside and visit places so this is also considered as the main
weakness for the hotel. Intense competition, not more effective Global presence as compared to
the other International Hotel chain can also containing as the main weakness of the hotel.
3.1.3 Opportunities
There are various external factors which influence the more because of the pandemic, in
order to recover the law office of the pandemic, hotel can adopt more strategic and effective ties
up and also improve their investment in digital marketing so that hotel will appropriately
improve their market position. Hotel can emerge with the small scale firms and improve
customer experience to gain the more competitive advantages as compared to rivals.
3.1.4 Threats
Due to the uncertainty of the pandemic, the marketing and selling process of the hotel
decreased adversely. Social distancing, no interaction among people, fear of virus, toxic
environment is the main threats for the hotel.
3.2 PESTLE Analysis
In order to identify the external market situation , PESTLE analysis is utilising by the
organisation so that it will make easy to determine the impact of external factor in the working

operations of the company. Explanation about all the factors related with this analysis in context
of Premier Inn hotel are given below -
3.2.1 Political Factors
This factor is mainly on some specific elements such as taxation, trade agreements,
foreign trade policies, environmental regulations and many other. In context of premier Inn hotel,
it is necessary to improve the political stability so that Hotel can appropriately maintain their
working operations in a favorable way. Tariffs, labor regulation and many other factors can
provide unfavorable impact so there is a requirement to maintain all the political considerations
in order to improve the business environment (Hassanien and Dale 2019).
3.2.2 Economical Factors
Economical factor is incorporated with various elements like GDP, monetary policy,
fiscal policy, trade regulations, employment rate. Premier Inn hotel is a large British Hotel chain
which operates their business appropriately but because of covid-19 pandemic the market
affected adversely. Consumer spending, employment rate can provide favorable impact on the
hotel and unstable pandemic situation, pricing policies can provide unfavorable impact on the
hotel (Loizia and et.al., 2021).
3.2.3 Social Factors
In term of social factors of business environment, cross culture activities, wind behavior of the
consumer and purchasing power of the customers can provide the favorable impact on the
business environment of the hotel. Hotel need to maintain geographical and demographic
consideration so that Hotel can prevent themselves from their unfavorable impact.
3.2.4 Technological Factors
In term of technological factor, high level of technologies, proper modification Hindi
technologies, updated software system, latest applications, digital marketing platforms can

provide favorable impact on the hotel business environment. Technological error, slow internet
connectivity can provide unfavorable impact on the business environment of the hotel. Premier
Inn hotel need to show their more participation in the digital marketing activities so that Hotel
can effectively improve their market value and deliver the latest information about their
organizations offers to the public which can improve their effectiveness and profit advantages
(Thamrin and Pamungkas, 2017).
3.2.5 Legal Factors
Legal factor is also considered as the main factor of the external business environment.
This factor is associated with various acts, legislative policies, procedure and other legal factors
and obligations. Premier Inn hotel is following all the legal considerations and legislative
policies in a appropriate manner so it can provide favorable impact on the business environment
of hotel. Because of pandemic, there is message change found in government policies and
procedures it can provide unfavorable impact on the hotel (Thamrin and Pamungkas, 2017).
3.2.6 Environmental Factors
This factor is concerned about the climate change, population rate, pollution and many other
environmental activities. Due to changing environment situation, premier Inn hotel need to pay
more attention on the changing environment so that Hotel can effectively improve their
sustainability rate at the whole market which can provide favorable impact. Changes in the legal
policies and structure by the government can provide unfavorable impact on the hotel.

4 Conclusion
On the basis of this report it can be concluded that as per the changing market situation, it is
mandatory for each and every companies to understand their organization appropriately so that
company can maintain their inside and outside business environment situation to gain more
profit advantages. This assessment discuss about international business environment factors and
also applied SWOT & PESTLE analysis in order to identify its influence in the organization.
Through SWOT analysis, this report identified that organization reach is more which cover the
whole country market that is considered as the main strength for the selected organization and
because of pandemic, sales of the organization decreased adversely that is considered as main
weakness. Organization has a favorable improve their participation in digital marketing
platforms to attract the customers. In context of PESTLE analysis it is determined that because of
pandemic there are various business environment factor provide favorable and unfavorable
impact on the organization in which fluctuation in government policies, uncertain climate
change, unstable legal regulation can provide unfavorable impact on the organization. Buying
behavior of customers, advanced level of technologies can provide several impacts on the
business environment of the organization.

5 References
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