Understanding Business Organisation: Premier Inn Hotel Analysis

This report analyzes the organizational structure and business environment of Premier Inn Hotel, including a SWOT and PESTLE analysis. It also discusses the impact of COVID-19 on the hotel industry.

UNDERSTANDING
BUSINESS ORGANISATION

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Organizational structure of Premier Inn......................................................................................3
Buisness environment analysis of Premier Inn Hotel..................................................................4
SWOT..........................................................................................................................................4
PESTLE.......................................................................................................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................1

INTRODUCTION
Business organization is refers to the entity that is related to purpose on commercial
enterprise that help to predicted on system of low governing contract. Also, present report based
on Premier Inn hotel that introduced in the year 1987, by parent organization Whitbread and
headquartered in London. It is known for British limited service hotels chain and UK's largest
hotel brand with more than 72000 rooms and 800 hotels in all over world (George, 2021). It is
operated in different types of location which include city centres, suburbs and airports. Some
subsidiaries companies are comfort Inn Kensington, quality hotel, Westminster, and MORE.
Organization structure of Premier Inn is related to the hierarchical organizational structure that is
popular for the large business in order to management which flows down, people at different
level of authority that can be related to multiple management also study focus on analysing the
internal and external factors that are impact hotel. The aim of the study is to analyse the business
environment of the organization which are related to covid-19. On the basis of PESTLE analysis
it helps to favourable and unfavourable factor for hotel and how it can be impacted.
MAIN BODY
Organizational structure of Premier Inn
Organisations structure of Premier Inn hotel is hierarchical organisation structure because
it has massive size that comprise more than 800 hotels that serving 140 million guest in a year.
Also, this structure is works on the basis of managing large business in order to rely on having
different levels of authority with a chain of command and also help for connecting multiple
management level within an organization (Nishat, 2021). The process of decision-making
process is flows top to down in context to create tall organizational structure ins which each level
of management are providing control over responsibilities. When the organization grows this is
helps for increasing the number of levels while it become taller. There are different type of
manager are involved in this structure and managing their department on the basis of pyramid.
Also, structure gets wider in order to usually top managements are CEO and followed by senior
management then middle management and finally workers. The role of employees is clearly
defined within organization as in nature of their relationship with other employees.
In additions to this, benefit of hierarchical structure is related to the clear lines of
authority and reporting within business also employees get clearer understanding according to
their roles and responsibilities (Islam, 2018). In regard to accountability for action this is help for

all the actions which are take place at different management levels. This is also helped for
providing the close supervision of employees ons the basis of narrow span of managerial
control. On the other some drawbacks of hierarchical organizational structure such as
complicated chains of command that can impacted by slow down decision-making. Also,
inconsistencies in management at different levels. Communications can be delay for some times
in order to follow all the steps for transferring the roles and responsibilities. Employees are not
allowed to share their opinion (Rony and Awal, 2020).
Buisness environment analysis of Premier Inn Hotel
Business environment of Premier Inn hotel is related to the elucidates the surrounding in
which business functions are operated. Also, this is reflected the operation of business and it is
highly dependent ons environment in which it runs operations. It has been analysed that report
consider as Premier Inn one of prominent budget hotel in UK.
SWOT
Strength-
The biggest strength of hotel is to maintain hygiene which help to combat in emerging
situation, also there are large number of guest were stayed in hotel for the purpose of quarantine
themselves. The safety management help the hotel in order to attract on the basis of clean
protect, daily cleaning regime in UK and Ireland hotels. Also, it has changed the check-in time to
3 PM that help for providing enough time to deep clean rooms and makes them perfect (Dwyer,
2021).
Weakness-
In the pandemic there are many employees who are allowed for remote working in order,
but they lack sometime because training and development were not conducted in effective
manner which are affect the productivity as well as the marketing services. That is why it
impacted on market share by decreasing percentage and affect the productivity.
Opportunities-
There are large number of opportunities in covid 19 by high potential in emerging market
as well as it help to provide innovation ins customer service by more focus on digital marketing
and improving customer base. Also, on the basis of digitalizations it was the great opportunity of
expanding business in such as way where uses of better technology. The target customer at that

time were families in order to provide them best services regarding accommodation (Wang, Qu
and Yang, 2022).
Threat-
Threat for Premier Inn hotel is related to entry of several international brands along with long
hold standing that is well-established Indian brands. Also, in the situation of Covid-19 there were
high competition seen in the market in order to impact on growth of organization. Competitors
like Hilton providing better services in order to attract large numbers of customer which affect
the sale of Premier Inn.
PESTLE
There are various macro environmental factors that can affect the functioning and decision-
making of the company.
Political factor:Various political factors such as changes in the tax rates and also government
influence can impact the functioning of the company. With the increase in the scope of the
hospitality industry can be a major advantage for the company to expand because of their budget
chains. It is also observed that in order to effectively operate the business it is necessary for the
company to analyse the political factors that can affect the organisation and then plans
accordingly.
Economic factor: It has been observed that hospitality industry was deeply affected by the
covid-19 due to various restriction that was imposed by the government. On the other hand the
exchanges rates also impact the amount of the custom that is received from the tourists. It can be
observed that recession can be one of the major cause for Premier Inn as in this situation the
purchasing power of people are low.
Social factor:Social factor is considered as one of the major concern for the company as the
requirements of the customers keeping on changing and every customer has its different taste
and cultural changes across the globe. It is necessary to make various changes in the services
according to the preferences of the customers and provides facilities accordingly. Premier Inn
has focused towards customer satisfaction and made various modifications in their business
strategies as per the changes in their behaviour and social factors.
Technological factor:With the increase in the advancement of the technology it is necessary for
the company to adopt for various online booking services for better experience of its customers.
On the other hand with the use of social media platforms they can promote the products and

services offered to the customers. Furthermore, Premier Inn also provide online reservation
services and facilities for the guests
Legal factor:There has been various changes in the legislation regarding the minimum wage rate
that led to increase the cost of operation of the budget. This has resulted in increase in the overall
cost of production which restrain the hotel to offer competitive prices to the customers. Apart
from this , Premier Inn has to comply with various laws and regulations for the safety and
security of the guests arriving at the hotel.
Environmental factor: There has been increase in the awareness among the customer regarding
the protection and preservation of the environment and favours the company that are devoted
towards preserving the nature. Premier Inn is focused and has developed CSR strategies with the
objectives of reducing the carbon emissions and also eliminating the waste that is generated
from the hotels. The company also follows the approach to the environment and is guided by
environment policy and energy policy which contains various principles that is to be complied
by the organisation.

CONCLUSION
It has been concluded that Premier Inn hotel has good brand image in all over the world.
Also, report discussed the organizational structure of company that is hierarchical in order to
roles and responsibility flows top to bottom then discussed on business environment in order to
consider internal and external factors that impacted hotel. Further, with the help of SWOT it has
been analysed that safety and hygiene is strength that helps for attracting large numbers of
customer as well as it has the opportunity of global expansion by consider externals analysis. On
the other hand, weakness are related to less focus on training and development that affect remote
working in covid-19. Further, threat for hotel is related to highs competition that impact by low
productivity as well as it impacted on expansion. Apart from this , the report also summarize the
various macro environment factors that affect the functioning and operations of Premier Inn and
its analysed through PESTLE analysis which includes political , economic, social ,
environmental and legal factors that can have positive or negative impact on the functioning and
decision-making of the company.

REFERENCES
Books and journals
Camilleri, M.A., 2021. Tourism, Hospitality &_ Event Management.
Dwyer, G., 2021. Hiding in plain sight: Vulnerability, public administration, and the case of
Covid‐19 hotel quarantine. Australian Journal of Public Administration.
Foskett, and et.al., , 2021. The theory of hospitality and catering. Hachette UK.
George, R., 2021. Tourism and Hospitality Marketing Planning. In Marketing Tourism and
Hospitality (pp. 149-182). Palgrave Macmillan, Cham.
Islam, M., 2018. Service Excellence of Front Office Operations in Ocean Paradise Hotel, Cox’s
Bazar.
Nishat, R.I., 2021. Effectiveness of marketing strategies for renaissance Dhaka Gulshan Hotel.
Rony, M. and Awal, R., 2020. Front Office Operation and Service Features of Haikou Marriott
Hotel.
Wang, Y.C., Qu, H. and Yang, J., 2020. Love spillover from a hotel sub-brand to its corporate
brand: An associative network theory perspective. Journal of Hospitality and Tourism
Management, 44 pp.263-271.
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