Understanding Business Organisation: Premier Inn Hotel Chain Analysis

This report analyses the organisational structure and business environment of Premier Inn Hotel Chain, including SWOT and PESTEL analysis. It also discusses the impact of COVID-19 pandemic on the hotel's performance.

Understanding business organisation

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Organisational structure...................................................................................................................1
Analysis of business environment...................................................................................................2
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................6

INTRODUCTION
It is crucial for an organisation to understand different factors and elements of business in order
to take appropriate decision for growth and development of business (Belas and et.al., 2019).
Organisational structure will lead to have significant impact on functioning of business and
affect its capability to attain desired goals (Möller, Nenonen and Storbacka, 2020). There are
several factors of business environment that will lead to affect business and its performance. It is
important that company is analysing internal and external factors of business environment with
the motive of take right decision for increasing business activities. This report is based on
Premier Inn hotel chain. This is a British company that is conducting its practices in hospitality
industry. This organisation belongs to expert company Whitbread PLC and its has more than 800
hotels that is performing its practices in UK and different market area. This is a company is
offering various kinds of products and services in order to meet with the demand of customers.
Premier Inn hotel organisation is supporting their charity partners that is Great Ormond Street
Hospital children’s charity. It has been analysed that COVID 19 pandemic as affected
performance and functioning of this hotel in negative impact. This report includes information
regarding organisational structure that will lead to affect functioning of business. in this report
different factors of business environment has been analysed. This includes SWOT and PESTEL
framework.
MAIN BODY
Organisational structure
Organisational structure can be explain as the procedure or system which is consider by
organisation in order to successfully and effectively conducting business practices. This is
powerful for deciding how various exercises of business should be coordinated with the intention
of achieving wanted objectives of business (Hrechyshkina and Samakhavets, 2019). it has been
determined that organisational structure play very crucial role in analysing the path of success as
well as attaining desired goals. There are various types of organisational structure such as tall,
functional, flat and many more. All of these structure have direct impact on performance of
business. It is important that respective organisation have proper structure in order to smoothly
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conduct business activities. Organisational structure of Premier Inn hotel is huge for
investigating rules, jobs and obligation of employees which should be successfully perform. For
Premier Inn hotel tall hierarchical structure is compelling and appropriate. Through this support
of Tall organisational structure the general degrees of hierarchy prompts appropriate
communication among the managers or the employees (Cepel, 2019). It has been analysed that
with the assistance of tall organisational structure, the Premier Inn hotel organization can settle
on effective choices and lead its business tasks in a appropriate way. It has been analysed that
organisation needs to consider business structure that is appropriate or according to the
functioning of business and affects overall performance level. Likewise, the general presentation
of the organization is additionally expanded to a various levels so tall organisational structure
will be more appropriate (Contractor and et.al., 2020). Premier Inn hotel in one of the largest
hotels that is offering its products and services in different areas. Due to this, respective company
have complex structure which includes different layers of management. In this organisation
information flows form top authority management to lower management level. So tall
organisation structure will be more effective and appropriate in order to take right decision for
overall growth and development of business. Through the support of tall organisational structure
Premier Inn hotel will be able to smoothly providing information from top to bottom layer of
management.
Analysis of business environment
It is important for organisation to analyse macro and micro factors of business
environment in order to take correct decision for growth and development of business (Belas
and et.al., 2019). By analysing business environment respective organisation is able to determine
factors that will have positive or negative impact over business. SWOT and PESTEL analysis
framework is mention below –
SWOT analysis
This is refer as the significant tool which is appropriate to analysing organisational
strength, weakness, opportunity and threats. SWOT analysis in respect to Premier Inn hotel is
mention below –
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 Strength – Premier Inn hotel strength is that it has developed strong brand image in
market area by providing high quality products and services to customers. This hotel is
operating in large market area and have high customer base that is significant for growth
of business. Premier Inn hotel has effective relationship with its customers and this
strength of business helps in attracting more and more customers towards organisation.
 Weakness – There are some weakness of business that is affecting its functioning in
market area. Premier Inn hotel have lack of marketing practices due to which potential
customers are unaware about the offerings of company. It is crucial for respective
company to develop effective marketing strategies with the motive of influence more
customers towards business.
 Opportunity – There are several opportunity in market area that will lead to positively
influence performance of business (Nudurupati, S.S., Garengo, P. and Bititci, 2021). It is
essential for company to provide training to its employees with the motive of enhancing
their performance level. This will help in successfully conducting marketing practices as
well as increasing customer services of business.
 Threat – The major threat to Premier Inn hotel is its rival company. this organisation is
providing products and services in highly competitive market area that will lead to
directly affect functioning of business. There are different strong companies dealing in
hospitality industry such as Marriott, Holiday Inn and so on.
PESTEL analysis
This analysing framework in significant for determining different aspects of external
business environment. PESTEL analysis in respect to Premier Inn hotel is mention below -
 Political factor – This factor of external market environment is related to government
rules and policies which will lead to have direct impact on functioning of business. It is
important that Premier Inn hotel is following all guidelines and regulations of UK
government for smooth functioning of business. UK market area has stable government
which is beneficial for respective company to effectively conduct its business practices.
 Economic factor – This is crucial factor that needs to be consider by organisation in order
to take right and accurate decision. UK country have developing economic rates that aid
decidedly impacting execution or working of business. Because of Covid 19 pandemic
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unemployment rates has been expanded which lead to diminish in buying abilities of
employees. because of this deals and benefit of Premier Inn hotel is diminished.
 Social factor – This is aspects of external business environment is the consider that help
discounts and other offering that is provided to customers with business. Premier Inn
hotel is giving various discounts and offers to its potential customers that lead to
decidedly affect expanding deals of business. It has been examined that customers needs
and wants is continuously changing and it will prompt significantly affect generally
dynamic or execution of business. Premier Inn hotel is offering high quality products
which is according to the requirements of customers.
 Technological factor – Technological factor play crucial role in effective and efficient
performance of business. Premier Inn Hotel has executed most recent innovation to
direct its business activities in a smooth way (Nudurupati, S.S., Garengo, P. and Bititci,
2021). With the assistance of powerful innovation, the organization will actually want to
draw in a more prominent number of customers. UK market has effective or innovative
technology which will help business.
 Legal factor – legal factor consist of different legislation and laws which is developed by
United Kingdom government for effective functioning of business operations. It is been
determined that due to changes in legislations respective company will also have to make
appropriate changes in its business so that all task could be correctly performed.
 Environmental factor – This is one of the crucial factors that will influence functioning
and operations of Premier Inn hotel. Due to changes in climatic conditions globally it will
lead to have major impact on performance of business. global warming is negatively
affecting operations of hospitality industry and Premier Inn hotel.
CONCLUSION
From this report it has been determined that organisation consist of different factors and
elements that will lead to have crucial impact on successful functioning of business. It is
important for organisation to have proper understanding regarding different aspects of business
so that correct decision for growth and development could be taken. This will have major
influence in effective and efficient functioning of business. It has been determined that SWOT
analysis framework helps in identifying different internal aspects which influence decision
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making and strategy of business. It is essential for organisation to consider external factors of
business environment with the motive of analysing elements that influence overall performance
or productivity of business.
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REFERENCES
Books and Journals
Belas, J., and et.al., 2019. The impact of the public sector on the quality of the business
environment in the SME segment. Administratie si Management Public.
Cepel, M., 2019. Social and Cultural Factors and their Impact on the Quality of Business
Environment in the SME Segment.
Contractor, F.J. and et.al., 2020. How do country regulations and business environment impact
foreign direct investment (FDI) inflows?. International Business Review. 29(2). p.101640.
Hrechyshkina, O. and Samakhavets, M., 2019. Changing business environment in
Belarus. Journal of Geography, Politics and Society. 9(1). pp.1-11.
Möller, K., Nenonen, S. and Storbacka, K., 2020. Networks, ecosystems, fields, market systems?
Making sense of the business environment. Industrial Marketing Management. 90. pp.380-399.
Nudurupati, S.S., Garengo, P. and Bititci, U.S., 2021. Impact of the changing business
environment on performance measurement and management practices. International Journal of
Production Economics. 232. p.107942.
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