Organisational Structure and Business Environment Analysis of Premier Inn Hotel

Level 0 Guide – Case Study
2021/2022.
Understanding Business
Organisation
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Table of Contents
1 Introduction.............................................................................................................................3
2 Organisational Structure of Premier Inn Hotel.......................................................................3
3 Business Environment Analysis of Premier Inn Hotel.............................................................5
3.1 SWOT Analysis..................................................................................................................5
3.1.1 Strength.....................................................................................................................5
3.1.2 Weaknesses...............................................................................................................6
3.1.3 Opportunities............................................................................................................6
3.1.4 Threats.......................................................................................................................6
3.2 PESTLE Analysis................................................................................................................6
3.2.1 Political Factors.........................................................................................................7
3.2.2 Economical Factors....................................................................................................7
3.2.3 Social Factors.............................................................................................................7
3.2.4 Technological Factors................................................................................................7
3.2.5 Legal Factors..............................................................................................................8
3.2.6 Environmental Factors..............................................................................................8
4 Conclusion ..............................................................................................................................8
5 Reference ................................................................................................................................9

1 Introduction
Business organisation can be defined as an entity formed with an aim to carry on
some commercial activity with a view to earn profits. These companies are formulated
according to the laws governing the various systems and workings of a business. A
hospitality business organisation refers to a service industry which deals with food and drink
services, theme parks, lodging, travel and tourism etc. It comprises of hotels, restaurants, tour
agencies, entertainment, attractions and many more (Hall, Prayag, and Amore, 2017). This
case study is based on the Premier Inn hotel of UK. It is a chain of hotels operating in number
of locations with over 800 hotels. The firm was founded by Whitbread in the year 1987. The
hotel deals in serving prominent food and rooms along with supporting their various charity
partners. The pandemic Covid-19 has effected the sales and profits of almost all the sectors of
the world including the hotel industry. According to various researches, it would take a lot of
time to recover itself and attain the same position as it was before the emergence of
pandemic. The case study analyses the organisational structure of Premium Inn Hotel and the
impact of various internal and external factors on the hotel due to Covid-19 by using various
environmental analytical tools.
2 Organisational Structure of Premier Inn Hotel
Organisational structure of a business decides the flow of work in an organisation. It
determines the accountability, authority and responsibilities in the business and brings
coordination in the various roles and employees. Premier Inn hotel must follow the
hierarchical structure in which the whole management and team workers are various levels
according to their roles and holds various responsibilities and powers (Mehta, Kumar and
Ramkumar, 2021). It is pyramid shaped structure containing a chain of command with flows
from top to bottom. At top level, there are owners and then directors followed by the
executive officers and then managers assisted by leaders and then the lower level employees
of the company. By implementing this structure, the firm will be able to coordinate all the
activities at all levels where everyone will be aware of their own roles and responsibilities.
The employees will be clear about the person to whom they are accountable and the level of
performance expected from them.
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