Organizational and Business Environment Analysis of Premier Inn Hotel

This case study analyzes the organizational structure, SWOT and PESTLE analysis of Premier Inn Hotel, one of the most popular hotel chains in the UK hospitality industry. It evaluates the impact of internal and external factors on the decision-making ability of the business. The study also highlights the strengths, weaknesses, opportunities, and threats of the hotel chain.

CASE STUDY

Table of Contents
INTRODUCTION...........................................................................................................................3
Organizational structure of Premier Inn Hotel.................................................................................3
Business environment analysis of the Premier Inn Hotel................................................................4
SWOT Analysis of Premier Inn Hotel ............................................................................................4
Strengths ...........................................................................................................................4
Weakness...........................................................................................................................4
Opportunity........................................................................................................................5
Threats...............................................................................................................................5
PESTLE Analysis of Premier Inn Hotel .........................................................................................5
Political factors .................................................................................................................5
Economic Factors .............................................................................................................6
Social Factors.....................................................................................................................6
Technological Factors........................................................................................................6
Legal Factors ....................................................................................................................6
Environmental Factors.......................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Premier Inn is one of the most popular hotel chain the UK hospitality industry, having a
significant market share in the industry. The company has more than 800 hotels in different areas
such as airports, city centres and other public places for increasing the engagement of the
customers towards the business. It is one of the most successful hotel chains of UK which has a
good competitive advantage in the hospitality industry. The management of the hotel may
conduct several promotional activities in order to amplify its reach and increase its market share
in the hospitality industry (Auchter and et.al., 2018). The hotel chain consistently tries to expand
into new markets and increase its profitability in the market in order to gain competitive
advantage over its competitors in the industry.
The current case study will evaluate the organizational structure of the Premier Inn
Hotel, the business environment of the hotel will be analysed with the help of SWOT and
PESTLE analysis in order to gain the understanding of the impact of these factors on the
business. The case study will explain the crucial aspects of the internal and external factors that
have a major influence on the decision making ability of the business.
Organizational structure of Premier Inn Hotel
Premier Inn hotel has adopted a tall structure for managing their organization
appropriately and conducting their daily business practices with accuracy. The tall structure may
explain that different functional areas of the business may be divided into clear forms of
hierarchy in order to divide the work appropriate and have effective communication in the
organization. This is a complex organizational structure having different managers and superiors
in order to manage the employees effectively and increasing the accuracy of the business. It
offers various levels of authority for the organization in order to simplify their work and increase
their effectiveness (Hrechyshkina and Samakhavets, 2019). It is considered for the lower levels
of the employees for increasing their quality of work and improving the sustainability of the
business in the working environment.
This organizational structure may explain that the staff may respond in a chain of
command to their superiors which may pass on the higher management in a hierarchy level. It
has many managerial levels for increasing the efficiency of the organization to produce better
results in the industry. The major advantage of this organizational structure is that the roles are

perfectly distributed among the management in order to control the quality of output produced
buy the employees. It focusses on specialization of services and improving the skills and
development of the employees by giving them appropriate feedback to make effective changes in
their working approach.
There are certain disadvantages of this structure as it is less flexible and may complicate
the communication process of the company. It may have a negative influence on the decision
making process of the organization as the information may pass through a large hierarchy. The
job satisfaction among the employees may be low due to the pressure create by the management
to produce the desired output and increase the sustainability of the Premier Inn hotel in the
business environment.
Business environment analysis of the Premier Inn Hotel
Business environment comprises different internal and external factors of a business
which may have a direct or indirect impact on the productivity of the organization (Gogokhia
and Berulava, 2021). It may explain the different aspect related to these factors and the key
stakeholders which may have a major role in the decision making process of the organization.
SWOT Analysis of Premier Inn Hotel
SWOT analysis is an effective framework which is helpful in analysing the internal
environment of an organization or individual in order to prepare effective strategies for achieving
growth.
Strengths
The availability of the Premier Inn hotel at different prime locations in several cities is a
major strength for the business which may help in increasing its popularity in the hospitality
industry (Benzaghta, and et.al., 2021). The occupancy rate of the organization is higher which
may increases its opportunities to target more customers and gain better competitive advantage
and reduce the negative impact of Covid-19 on the businesses.

Weakness
The global presence of the business is limited which may have a negative impact on the
sustainability of the business in the hospitality industry. It may make the organization vulnerable
in the international market and reduce its growth opportunities. The refund policy of the
organization id weak which may have a negative impact in providing better customer satisfaction
to the customers.
Opportunity
The expansion of the organization into new internal market is a great opportunity for the
hotel chain to gain a significant market share in the industry. There are several developing
nations which may provide land for establishing the hotels at subsidized rates to the organization
(Hajizadeh, 2019). The new design and architecture adopted by the business may be helpful in
attracting the customers towards the Premier Inn hotel.
Threats
The competitors of the business may incur significant threat on the organization which
may reduce its sustainability in the market. The hotel chains such as Easyhotels, Holiday Inn etc.
may be one of the major competitors for the business which may create issues for the
organization to successfully operate in the dynamic environment. The pandemic may also have a
negative impact on the company which may reduce the engagement of the customers towards the
organization.
PESTLE Analysis of Premier Inn Hotel
PESTLE analysis is an appropriate tool which is used to analyse the external environment
of the business in order to increase its efficiency to evaluate various factors that have a positive
or negative impact on the business.
Political factors
Premier Inn Hotel is highly dependent on the tourism sector which may be different in
various countries due to the rules and regulations imposed by the government on the industry.

High percentage of taxes may be defined by the governments on the hotel organization which
may have a negative impact on the profitability on the business (SALTAMARSKI, 2021). There
are different policies which may also be adopted by certain governments in order to improve the
current scenario and increase the benefit for the hotel chains to grow.
Economic Factors
The changes in the economic composition of a country or industry may have a negative
impact on the hotel business which may affect the ability of the customers to afford these hotels.
The foreign exchange rates may have a negative impact on the travel decisions of the foreign
customers which may reduce the economic stability of the Premier Inn hotel in the industry.
Social Factors
The current generation may consider travelling and sharing their experience with the help
of various social media platforms which may increase the popularity of the hotel chain in the
global business environment (Ślusarczyk and UL HAQUE, 2019). It may create various benefits
for the organization to increase the expenditure of the customers to have a stay at their hotel and
increase the profitability of the business.
Technological Factors
Premier Inn Hotel may have adopted various technological advancements such as CCTV
cameras in order to provide a safe and secure experience to the customers. It provides better
assistance top the hotel chain to organize their daily practices and increase the accuracy to
produce better output in the industry.
Legal Factors
The legal framework of various countries is different which may have a negative impact
on the sustainability of the business in the competitive environment. These differences may have
a negative impact on the organization to successfully operate in different nations and improve its
overall stability (Beatrix and Irawan, 2022). The different health and safety laws may be imposed
by the governments which may reduce the ability of the company to operate successfully.

Environmental Factors
There are different weather conditions present in different countries that may reduce the
interest of the customers to visit the places and gain the experience of the hotel (Calabrese and
et.al., 2018). The rising weather crisis may restrict the customers and have a negative impact on
the overall productivity of the company.
CONCLUSION
According to the above report it has been concluded that the organization have been
benefited by analysing their business environment with the help of various tools. The SWOT and
PESTLE analysis have provided various inputs to the company for preparing effective strategies
and reduce the negative impact of these factors on the business. The different social and
technological factors have been useful for the hotel chain to increase its popularity in the
business environment and increase its competitive advantage in the industry (Kozubikova and
et.al., 2019). These factors have increased the growth opportunities in the business.
By analysing their internal environment the organization have been able to understand
their weaknesses and prepare effective for reducing their negative impact on the success of the
company in the industry. The organization have been looking toward increasing the opportunities
for the business in the competitive market with the help of different strategies that are
appropriate for its overall development. The business have been able to improve their stability by
properly analysing these factors and increasing the overall efforts of the business towards
developing better strategies. This knowledge of the business environment has been crucial for the
organization to provide better assistance to have better advantage in the industry than their
competitors.

REFERENCES
Books and journals
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Beatrix, M. and Irawan, A. P., 2022. April. PESTLE Analysis for Indonesia’s MSME during
Covid-19. In 3rd Tarumanagara International Conference on the Applications of Social
Sciences and Humanities (TICASH 2021) (pp. 1907-1910). Atlantis Press.
Benzaghta, M.A., and et.al., 2021. SWOT analysis applications: An integrative literature
review. Journal of Global Business Insights. 6(1). pp.55-73.
Calabrese, M. and et.al., 2018. From mechanical to cognitive view: The changes of decision
making in business environment. In Social Dynamics in a Systems Perspective (pp. 223-
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Gogokhia, T. and Berulava, G., 2021. Business environment reforms, innovation and firm
productivity in transition economies. Eurasian Business Review. 11(2). pp.221-245.
Hajizadeh, Y., 2019. Machine learning in oil and gas; a SWOT analysis approach. Journal of
Petroleum Science and Engineering. 176. pp.661-663.
Hrechyshkina, O. and Samakhavets, M., 2019. Changing business environment in
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Kozubikova, L. and et.al., 2019. The impact of political factors' perception on suitability of
international business environment: The case of startups. Economics & Sociology.
SALTAMARSKI, D., 2021. WINE SECTOR ANALYZED THROUGH PESTLE ANALYSIS
AS A PART OF THE STRATEGIC MANAGEMENT. Journal of Sustainable
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Ślusarczyk, B. and UL HAQUE, A., 2019. Public services for business environment: challenges
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