Understanding Business Organisation - Premier Inn Hotel

This report covers the organization structure, business environmental analysis, SWOT and PESTEL analysis of Premier Inn Hotel, the biggest hotel chain in the world. The report suggests that Premier Inn Hotel should utilize the flat organizational structure to reduce issues and diversify their command chain. The report also highlights the impact of COVID-19 on the hospitality industry.

Understanding
Business Organisation

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
Organization structure of Premier Inn Hotel...............................................................................3
Business environmental analysis of Premier Inn Hotel..............................................................4
SWOT Analysis..........................................................................................................................4
PESTEL Analysis........................................................................................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
The word Premier is defined as a whole entities where set of individuals are engaged for
carrying the different types of commercial and professional activities smoothly. In this way the
different types of needs of all customer are easily fulfilled in time. In aspect of business
company always run their various departmental and operational activities in systematic way
which leads to enhance their portfolio at higher rate. Here the chosen organization is Premier Inn
Hotel and it is the biggest hotel chain in industry across the world (Alimov, 2018). The
headquarter of this company is situated in United Kingdom. This organization is basically a type
of private limited company and it comes under the category of hospitality sector. The company
was established in 1987 by Whitbread and this hotel consist of around 800 restaurants and 73,
000 rooms. The report will cover organization structure of Premier Inn, business analysis of
Premier Inn, SWOT and PESTEL analysis. In different types of locations such as city centres,
airport etc. Premier Inn operates their functions effectively. Due to providing high quality
service to users, positive relationships are strongly developed between customer and company
for long time.
TASK
Organization structure of Premier Inn Hotel
The goodwill or image of Premier Inn hotel is already well established in market and in
minds of consumers in UK. In hotel industry this is one of the organization which is considered
as the highest growth rate in UK and other countries with around 580 hotels. In respect of
business the management of Premier Inn hotel, the duties of CEO, chairman, board of members
and others are effectively abstracted and described. The various obligations and duties regarding
CEO and Chairman of company have been committed by board of members. The other name of
flat organization structure is horizontal organization structure and in this structure various types
of departments are involved to run the activities smoothly. In aspect of this structure employees
within firm are highly involved in the process of decision making. In context of Premier Inn
hotel number of candidates are involved as the part of management. The respective company
also have a effective distribution channel which leads to enhance leads to enhance the popularity
and goodwill of firm at maximum level. In aspect of full length of company's structure, very low
candidates are involved in the activities of management who deals with each others. Due to the

use of this structure executive of this company is able to monitor the work of their workers on
regular basis. According to flat organizational structure different types of roles and
responsibilities are to their employees. Due to this the employees within organization are highly
motivated within low time. In this way employees easily put their full effort, their full effort
interest and passion during the time of serving goods and services to all customer segments. Due
to this they are also able to handle any type of complicated assignments easily. If the firm want
to keep their focus on innovation and technology then management must chose flat
organizational structure which is highly beneficial for them. In context to Premier Inn Hotel,
management must utilize flat organizational structure in aspect of increasing their all over
productivity and performance at higher rate. Due to the effective use of this structure
management are able to develop strong solutions for the issues of employees which is raised
during the time of running their business activities.
Business environmental analysis of Premier Inn Hotel
Business environment is considered with those type of situations where workers of this
company is performing their responsibilities and duties in their job (Batko, 2021). In context to
functions of Premier Inn Hotel achieved great effect during the time of COVID scenario. There
are different kinds of negative effect which is observed on the hospitality industry at the time of
COVID. But due the effective use of various types of strategies and plan of actions, the senior
management of organization is able to decrease their issues effectively.
SWOT Analysis
SWOT analysis is defined as the framework which is used by organization in aspect of
determining their strength, weakness, opportunities and threat. In context to Premier Inn hotel is
explained below -
Strength -
Firstly, the healthy and safe image of this organisation is effectively sustained in market
and in minds of customers for long time. In context to Premier Inn hotel it very good because
their services and facilities which is provided to users is highly useful for creating direct impact
in the consumer heart and mind.
The other strength which is maintained by the organization is that the use of qualified and
skilled employees. With help of talented employee's organization is able to manage different
types of rooms at large number in systematic manner.

Weakness -
Firstly, due to organization is facing heavy competition in hotel or hospitality sector,
management is not able to identify the wants and needs of consumers properly. Due to this the
popularity and sale of their products are easily decreased at higher rate.
Secondly, in hotel sector due to heavy competition, company is not able to maintain
reputation or goodwill in market and in minds of customers effectively.
Opportunities -
The management of Premier Inn hotel must apply various types marketing techniques for
increasing their services and business activities globally. It means that organization required to
made lot of investment in different types of digital marketing strategies and promotional
techniques.
Due to the effective use of digital marketing strategies and social media products of
organization is highly popularised within short duration (Chau, Deng and Tay, 2020). Due to this
the brand value of the organization is highly and easily spread at international level.
Threat -
The ultimate and main threat which is currently which is currently facing by Premier Inn
Hotel is that their competitors. For example AIRBNB is being considered as biggest threat for
the company.
PESTEL Analysis
It is refer to a technique or tool which is applied by company in aspect of determining
different types of external factors which is responsible for creating direct impact on the various
activities of business. That impact comes in the category of both positive and negative. In
context to Premier Inn Hotel, the factors which is related to PESTEL analysis is explained
below-
 Political – This factor is concerned with different types of rules and regulations which is
developed by both government and company. In relation to hotel industry government
must maintaining strong control and hold. Because if government stopped the travelling
facility then major impact is generated on the sector of tourism and hotel. In relation to
Premier Inn Hotel, this factor produce impact on the performance of the organization in
positive manner because of reforming effective policies which leads to increased their
profit at higher rate.

 Economical – In current scenario hospitality is consider as one of the fastest and largest
expanding sector. In context to Premier Inn Hotel, management are faced different types
of barriers due made changes in the rates of currency in any particular country. Due to
made these type of changes it will produce direct effect on the amount of room booking
and ticket price amount of this hotel.
 Social – In context to income of Premier Inn Hotel, it is highly depend on the factor of
tourism. Die to this reason holidays is consider as the most beneficial date by
organization in terms of increasing their profit at maximum level. Holidays includes bank
holiday, Christmas holiday and others. In this days the trip of tourist in various countries
are high. Therefore, it is necessary for management that they must facilitate average price
in their products.
 Technological – It is defined as those factors which effects the activities of whole
organization in digital way. The activities which is operated by organization in the aspect
of hospitality industry is directly linked with all customer segments (De Reuver,
Sørensen and Basole, 2018). Therefore, it is essential for Premier Inn Hotel that they
must provide effective training to their employees regarding new technology and
equipment. In this way organization is able to sustain their competitive advantage in
market for long time.
 Environmental – In this stage protection of environment is the top priority and
responsibility for organization in business industry. In relation to Premier Inn Hotel,
management must apply all the factors which is eco friendly and not dangerous for
environment. Due to this the all over productivity of organization is easily increased at
higher rate.
 Legal – In relation to hospitality industry authority must always keep in their mind
different types of regulations and rules which is which is developed by council of
country. The compliance of various laws and rules are mostly responsible for producing
issues for small scale business. It leads to decrease the goodwill of company effectively.

CONCLUSION
After the analysis of above information it is concluded that understanding the concept of
business plays the crucial for run the functions of organizations effectively and smoothly. During
the time COVID 19 various types of problems are faced by the hospitality industry and more
effects are seen on the tourism and hotel industry. This report also concludes that the Premier Inn
Hotel must utilize the flat organizational structure for reducing such type of issues. This structure
also supports the management for diversifying their set of command chain into various sections.
Along with this long term sustainability and high amount of profits can also be earned by the
respective company.

REFERENCES
Books and Journals
Alimov, R., 2018. The Shanghai Cooperation Organisation: Its role and place in the development
of Eurasia. Journal of Eurasian studies, 9(2), pp.114-124.
Batko, R., 2021. Management and organisation in the age of AI. The Routledge Social Science
Handbook of AI, pp.157-171.
Chau, N.T., Deng, H. and Tay, R., 2020. Critical determinants for mobile commerce adoption in
Vietnamese small and medium-sized enterprises. Journal of Marketing
Management, 36(5-6), pp.456-487.
De Reuver, M., Sørensen, C. and Basole, R.C., 2018. The digital platform: a research
agenda. Journal of Information Technology, 33(2), pp.124-135.
Diefenbach, T., 2019. Why Michels’‘iron law of oligarchy’is not an iron law–and how
democratic organisations can stay ‘oligarchy-free’. Organization Studies, 40(4), pp.545-
562.
Goel, R.K. and Göktepe-Hultén, D., 2018. What drives academic patentees to bypass TTOs?
Evidence from a large public research organisation. The Journal of Technology
Transfer, 43(1), pp.240-258.
Lord, N., Wingerde, K.V. and Campbell, L., 2018. Organising the monies of corporate financial
crimes via organisational structures: Ostensible legitimacy, effective anonymity, and
third-party facilitation. Administrative Sciences, 8(2), p.17.
Netter, S., Pedersen, E.R.G. and Lüdeke-Freund, F., 2019. Sharing economy revisited: Towards
a new framework for understanding sharing models. Journal of cleaner production, 221,
pp.224-233.
Veljkovic, I. and Budree, A., 2019. Development of Bring-Your-Own-Device Risk Management
Model: A Case Study From a South African Organisation. Electronic Journal of
Information Systems Evaluation, 22(1), pp.pp1-14.