Understanding Business Organisation - Case Study

This case study analyzes Premier Inn Hotel's organisational structure, SWOT and PESTLE analysis, and business environment analysis. It also discusses the impact of COVID-19 on the hospitality industry.

Level 0 Project Guide – Case
Study
2021/2022.
Understanding Business
Organisation
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Table of Contents
1 Introduction........................................................................................................................2
2 Organisational Structure of Premier Inn Hotel..................................................................3
3 Business Environment Analysis of Premier Inn Hotel........................................................4
3.1 SWOT Analysis.............................................................................................................5
3.1.1 Strength................................................................................................................5
3.1.2 Weaknesses..........................................................................................................5
3.1.3 Opportunities.......................................................................................................5
3.1.4 Threats..................................................................................................................6
3.2 PESTLE Analysis............................................................................................................6
3.2.1 Political Factors....................................................................................................6
3.2.2 Economical Factors...............................................................................................6
3.2.3 Social Factors........................................................................................................6
3.2.4 Technological Factors...........................................................................................7
3.2.5 Legal Factors.........................................................................................................7
3.2.6 Environmental Factors.........................................................................................7
4 Conclusion..........................................................................................................................7
5 References..........................................................................................................................9
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1 Introduction
Business organisation is the companies and the structure in which they use to work
and manage all the activities in order to enhance the production of revenue in the nation.
There major concern is to focus on providing the employment and using the competitive
advancement with the working areas (Yin, Du and Chen, 2020). In this case study their will
be an analysis about Premier Inn Hotel which is established in 1987 through Whitbread, by
Dunstable England. It has different chains and departments which are made in order to
manage the business practises in hospitality sector. It have so many chains and branches
some of which are like Jersey, UK, Germany, Ireland, United Arabs Emirates and many
more. This report will discuss all the internal and external factors with the general analysis
and management. Further it will also emphasize on COVID-19 and its major concerned areas
and impact which affected the business practises and also the validations and the issues
through which the management and their working at the time of pandemic can be managed.
2 Organisational Structure of Premier Inn Hotel
It is the method in which the company can manage their working and can
systematically approach and frame their work in the market and their targeted areas. It helps
in analysing all the areas through which the company use to make their segments in which
they opt the systematic working. Premier Inn Hotel uses Divisional Organisational
Structure through which the hotel tries to implement different segments and departments in
order to frame the working. Their is been made different divisions in which the company opt
to manage all the departments which manage the work on their own basis. The main focus of
the Premier Inn Hotel behind this structure is to make all the employees to distribute their
task according to the skills and their working nature (Wang, Wong and Alagas, 2020). As in
instance all the house keeping, food and beverages, operational management, finance,
marketing all the teams are divided in different groups and areas through which the work is
being distributed. The Premier Inn Hotel can also opt the Hierarchical organisational
structure. This will help them out to manage all the work and the general methods through
which all the flow of information can be made in the general top to lower level of
organisation. Their is been seen that all such methods and their general working can be
managed on the basis of working conditions and the analysis of the hospitality can be made
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by all managers. In most of the hotel industry there is been seen that the use to opt this
structure as it is important to know about the work and the methods in which they are
providing the facility to the customers (Nuseir, 2020).
Illustration 1: Organisational structure of Premier Inn Hotel,2021
3 Business Environment Analysis of Premier Inn Hotel
This considers information as in context to hotels and hospitality sectors as it will help
out to know and provide the relevant factors and tools through which company can analyse
their strengthen the skills with all the internal and external analysis (Aydin and Cetin 2020).
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Premier Inn Hotel in order to identify the key areas it manages the SWOT and PESTEL
analysis which are discussed as under:
3.1 SWOT Analysis
This tool helps in evaluating and also in determining all the internal strength,
weakness, opportunities and threats of the company. As this provides the analysis of the
current situation of the company and their areas of improvement (Bawidamann, Peter and
Walthert, 2021).
. In context to Premier Inn Hotel it is mentioned as given below:
3.1.1 Strength
The Premier Inn Hotel considers out to be renowned in the countries and also was
being awarded for their best facility and conditions. Their is been seen that it use to have
effective strategies in the market through which it tries to gain more customers and also to
manage all the offers and deals through which large segment of individuals can be gained.
They have about 700 hotels worldwide and also 50,000 rooms through which major impact
can be made and creates a attraction and convenient for all. They also have a high expertise
team for advertisement which tries to manage a impactful image of the hotel all over the
world and also make them to maintain a strong and empowering image (Lutchman and
Akula, 2021).
3.1.2 Weaknesses
As compared to all other international hotels there is been seen that they do not carry
an impactful image on the customers eyes as compared to another. They do not carry that
powerful image in the competitive areas of hospitality. Premier Inn Hotel also have to face so
much competition in the market as with the change in the time and it has affected there
economy.
3.1.3 Opportunities
Premier Inn Hotel can try to implement more emphasis on the digital and the social
media marketing as with the change in time their has been seen different issues and working
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through which hotels can attract more customers towards them. They can also opt some
strategic tie ups techniques in order to frame and enhance the growth (Liu and et. al., 2020).
3.1.4 Threats
The major concern is the arising of COVID-19 there is been seen a major downfall in
the hotels and Premier Inn Hotel faced a issue regarding the customers fear for entering in
hotels. Other then this the main threat is the rise in competitive and the new availability in the
market such as hostels, private rooms and many more.
3.2 PESTLE Analysis
It is an important tool which helps in evaluating and managing all the competitive
areas and the conditions that are analysed as in context to the company. This provides all the
political, social, economical, technological, environmental and legal factors (Junior and et.
al., 2020.) For Premier Inn Hotel it is been given as under:
3.2.1 Political Factors
It applies all the regulations and the policies for the organisation and also manage the
regulatory work as for Premier Inn Hotel they focus on managing all the nature and the
general working in which the impact of Brexit has affected the policies of the hotel.
3.2.2 Economical Factors
This includes all the interest rates, inflation, recession and all the allocation of
finance. As Premier Inn Hotel have a expanded hotel chain which make them to generate
more revenue and earn profit (Jameel and Ahmad, 2020).
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3.2.3 Social Factors
It provides all the social and the demographic segments and work through which the
company focus on making the growth. Premier Inn Hotel provides quality of services,
accommodations and the safety measures through which the growth and trust of consumers
can be gained.
3.2.4 Technological Factors
This cover all the digital areas and platform through which all the technical
advancement can be made. As Premier Inn Hotel manages all the innovative techniques and
the digitally advanced methods in order to promote the growth and success and also to opt the
safety measures with technological features (Doleman, Twigg and Bayes, 2020).
3.2.5 Legal Factors
This includes all the laws and the regulation which are applied on the company in
order to manage the business practises and also to make the work more effective and
legalised. Premier Inn Hotel have so many chains and they try to opt all the categories
through which all then laws of different countries are managed.
3.2.6 Environmental Factors
This covers all the programs and the methods taken by the company in order to
protect the environment. Premier Inn Hotel manages all the sustainable changes and
advancement through which the growth is being made and the protection of various energy
saving programs can be applied (Conz and Magnani, 2020).
4 Conclusion
From this report, it is summarized that the business is an entity which is involved in
such practices that relates to commercial, trading or manufacturing which have the sole
motive to generate maximum profits and revenues from the operations carried out by it. It not
only works for the benefit of own organization but also contributes to the whole economy by
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generating employment opportunities for the people as well as generate revenue for nation.
Due to pandemic of Covid-19, the hospitality industry is being badly affected so it is essential
that it plan such strategy which can help it to overcome the crisis and losses. For framing
such strategy, SWOT analysis is carried on which can evaluate and also analyses the nature
of hotel. The main threat possessed on hotel is its rivals and competitors and facility of
hostels which have affected its business. Further, it is concluded that it is also essential to
analyses the macro environmental factors which possess influence on the decision making of
company which may be done with the help of framework PESTLE analysis which also helps
in identifying the changes in organization. The economic factors relate to interest rate which
may be increased by expansion of the hotel and an environmental factor is concerned with
major areas such as sustainability and energy saving which must be present in every
operation of hotel.
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5 References
Aydin, H. and Cetin, C., 2020. Improving Processes Through Value Stream Mapping: A Case
Study in Lean Organization. Business and Economics Research Journal, 11(2),
pp.445-459.
Bawidamann, L., Peter, L. and Walthert, R., 2021. Restricted religion. Compliance,
vicariousness, and authority during the Corona pandemic in Switzerland. European
Societies, 23(sup1), pp.S637-S657.
Conz, E. and Magnani, G., 2020. A dynamic perspective on the resilience of firms: A
systematic literature review and a framework for future research. European
Management Journal, 38(3), pp.400-412.
Doleman, G., Twigg, D. and Bayes, S., 2020. A comparison of middle managers' and
paediatric nurses' satisfaction with organisational communication. Journal of
Nursing Management, 28(6), pp.1223-1232.
Jameel, A.S. and Ahmad, A.R., 2020. The mediating role of job satisfaction between
leadership style and performance of academic staff. International Journal of
Psychosocial Rehabilitation, 24(04), pp.2399-2414.
Junior, and et. al., 2020. Analysis of marketing capabilities, service differentiation and
performance of executive hotels in the State of Santa Catarina, Brazil. International
Journal of Business Excellence, 20(4), pp.451-470.
Liu, L., and et. al., 2020. A framework to evaluate the interoperability of information
systems–Measuring the maturity of the business process alignment. International
Journal of Information Management, 54, p.102153.
Lutchman, C. and Akula, R., 2021. Readying the organization for change: communication and
alignment. In Process Safety Management and Human Factors (pp. 221-233).
Butterworth-Heinemann.
Nuseir, M.T., 2020. Assessing the Impact of Brand Equity and Demographic Characteristics
on Brand Loyalty: The Mediating Role Played By Customer Experience in United
Arab Emirates’ Hotel Industry. Journal of Hospitality & Tourism Research,
p.1096348020947786.
Wang, L., Wong, P.P.W. and Alagas, E.N., 2020. Antecedents of green purchase behaviour:
an examination of altruism and environmental knowledge. International Journal of
Culture, Tourism and Hospitality Research.
Yin, C.Y., Du, F. and Chen, Y., 2020. Types of green practices, hotel price image and
consumers’ attitudes in China: The mediating role of consumer skepticism. Journal
of Hospitality Marketing & Management, 29(3), pp.329-357.
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