Understanding Business Organisation - Premier Inn Hotel Case Study

This report provides a case study of Premier Inn Hotel, discussing its organisational structure, SWOT and PESTLE analysis. It also covers the impact of COVID-19 on the hotel industry and the internal and external environmental factors affecting Premier Inn Hotel.

Level 0 Guide – Case Study
2021/2022.
Understanding Business
Organisation
1

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...............................................................................................7
3.2.3 Social Factors........................................................................................................7
3.2.4 Technological Factors...........................................................................................7
3.2.5 Legal Factors.........................................................................................................7
3.2.6 Environmental Factors.........................................................................................7
4 Conclusion..........................................................................................................................8
2

1 Introduction
Business environment provides the management and the function of the companies
and their external and internal analysis for the environment (Büyüközkan, Mukul and
Kongar, 2021). In this report their will be a case study of Premier Inn Hotel , it is established
in 1987 by Whitbread and is headquartered in Dunstable, England, UK. This company is
expanded in different areas like Germany, Republic of Ireland, United Arab Emirates, UK,
Jersey and Isle of Man. It is a well known hospitality sector and cover most of the important
facilities in their hotels. In this report their will be a discussion about the issues which the
Premier Inn Hotel is facing at the time of COVID-19 and the regions which has been affected
and made the sales decreased and as the nation shut down it made a huge economic crisis
through various nature and impact. It will also cover the organisational structure of the
company. And will further provide the internal and the external environmental factors which
will impact it on the major concerned areas with the help of PESTEL and SWOT. This report
will provide all the external business environmental areas through which the major concerns
and the issues can be removed and it will implement and focus on managing the business
functions.
2 Organisational Structure of Premier Inn Hotel
Premier Inn Hotel is well established and use Divisional organisational structure. It
makes all the departments to perform all their work and manage the general segregation in
order to give and frame the management accordingly. Hospitality sector has so many
different areas in which they requires all the skills and management as it serves multiple
services and also lead to frame the operational areas. Divisional structure helps in making all
the multiple divisions in order to manage all their departments to work in systematic manner.
Some of the major areas are like operations, supply chain, logistics, bar, food restaurant,
laundry and many more. So the company try to frame all the different departments in order to
manage and implement the functions with all the functional areas. Hospitality sector manages
different section in order to make the services and facilities to be expanded in easy manner
and a better coordination in the teams can be made (Clune‐Kneuer, Klute and Chester, 2020).
3

In concern with Premier Inn Hotel in order to manage and frame the ,management to be
proper fro the growth and the upliftment they can try to impose the Hierarchical structure.
This will implicate out to frame the flow of information and the important decision making
with the help of top management. As it focus on overall success of the company and will also
generate a informational to multiple sections and areas. As organisational structure creates
management and also a clear approach through which all the proportional expansion can be
made and Premier Inn Hotel can implement their growth and success with the helps of
organisational structure. Their seems to be given the management and the working nature
through which all the performance can been made. Premier Inn Hotel in order to implement
the growth and the success of the company can achieve and formulate the method through
which they can regulate the flow of information and the guidance to be given in accurate and
progressive manner.
Illustration 1: Organisational structure of Premier inn hotel
4

3 Business Environment Analysis of Premier Inn Hotel
Business Environment concerns out to be an important tool which helps in analysing
all the internal and the external factors through which all the general working and the
management of the company is framed. It focus on the model like SWOT , PESTEL analysis
through which Premier Inn Hotel can focus on generating the policies and managing the
growth and the success of the company (Xue and et. al., 2021).
3.1 SWOT Analysis
SWOT Analysis is the internal factor which helps out to manage and provide all the
major concerns and the areas through which the analysis on the company can be made. It
provides strengths, weakness, opportunity and threats (Dawson and et. al., 2021). As in
context to Premier Inn Hotel it will help out to provide all the arrangements and the internal
forces through which business operations are being managed and it will help in managing the
company.
3.1.1 Strength
Premier Inn Hotel is a well renowned in the hospitality sector and it gained awarded
as for being the best hotel in UK. It provides about 700 hotel overall and there are about
50000 rooms which are being made by them. They are generally being known for their best
services and their brand image is being made for premier nature as they promotes the growth
and success and also help to give the facility to all the kind of customers like the middle class
and the luxury facilities. They use to have the advertisement and the promotional activities
on a strong range. As it creates a positive image of brand and also manage the general
working and framework. In order to gain more customer they try to provide exciting offers to
their guest in the online bookings. They focus on managing the brand value and convenience
of the guest. All this will help out to manage and gain the loyalty of the customers and also
top frame and implement the general focus and management.
3.1.2 Weaknesses
Hospitality sector has faced the major competition in the market as there is being
observed there are so many hotel worldwide which use to provide so many services and
5

facilities in order to gain more customers. Their has been seen that the major inflation which
the hospitality sector has seen is at the time of COVID-19 as their was high inflation rate and
a complete downfall. The financial management is also a major issue as the liquidity is being
increased in all the operational activities. Premier Inn Hotel has faced inflation and issues at
the time of pandemic and their has been seen the downfall of economy and hotel too faced
lack of resources and financial assets (Furusho and et. al.,2020).
3.1.3 Opportunities
Premier Inn Hotel can try to use so different tactics in order to focus on the growth of
the company and also on implementing the methods through which loyal customer base can
be gained. They can also try to manage the work and the adaptability through which all the
nature and the general terms can be analysed. They can provide some offers and can advertise
through various social media and the other platforms in order to attract the customer. The
digital medium s can be used and high security and facility can be made in the hotels so as
the customers will feel safe and can not fear of COVID-19. They can manage and implicate
all the elements in which the general adherence and the business expansion can be framed.
Premier Inn Hotel can also try to manage and make the professional teams so as to know the
market need and the areas through which customers can be attracted (Wollmann, Kühn and
Kempf, 2020).
3.1.4 Threats
As the pandemic has emerged it has created a major fear and their has been seen a
major downfall of all the hospitality industry. Their is been seen that Premier Inn Hotel has
also faced the issue as the customers were sacred to go and stay in any such areas. And in all
these reasons there is been analysed that people are getting fear and major threat from all the
areas and the virus has also made so many people in major fear (Gupta and Mishra, 2021).
6

3.2 PESTLE Analysis
PESTEL Analysis is the external factor which helps in analysis all the competition in
the market and also focus on providing the ideas to the organisation about their working it
contains political, economic, social, technological, environmental and legal.
3.2.1 Political Factors
It includes all the government regulation and the policies through which they can
manage and implicate the regulation as Premier Inn Hotel is a well known leading hotel in
Britain and it also manage the regulations and the policies. This use to create a positive
impact as their progressive policy making and all the licensing is managed. But as with the
arising of Brexit this has also impacted as they has faced some issue in all the EU areas.
Other then that hospitality sector concern to have the fifth largest sector to produce profit and
they deal in gaining major skills and development (Subramanyan and et. al., 2020).
3.2.2 Economical Factors
It includes the inflation rate, growth rate and all the major interest which are being
made under it. The economy of UK is managed by 2% as for the benefits of companies. This
helps in managing the financial adequacy and also in framing the business dealings. Premier
Inn Hotel has maintained their economic sector more stronger as they implement all the
strategies through which the growth can be managed and the funds can be restored. As in
mean time when the COVID-19 arises their has been seen that all the assets and the savings
were lost and the hotel has faced major issue on that mean time (Leandri, Rocchio and Losa,
2020).
3.2.3 Social Factors
Premier Inn Hotel focus as for managing the facilities to be given with the change in
trends and there is been seen that they try to make their hotel serve according to the
requirements and the changing trends. They focus on the youths and their requirements. UK
notably provides the to facilities when it comes to venue, food and amenities and this use to
be positive framework. But as with the changing trends and pandemic the hotels have to
invest a lot of money as in regard to mange the business.
7

3.2.4 Technological Factors
Premier Inn Hotel concerns to frame the major advancement with the innovation and
the digitalisation. UK focus on giving the best facility but this is at times over the budget and
affect the business.
3.2.5 Legal Factors
As the hospitality sector is expanded worldwide it is important to manage all the laws
and the regulations. Premier Inn Hotel use to apply all the legislation and the laws for the
work and the general methods. It also provides the laws and imposition of rules (Peng and
Lin, 2021).
3.2.6 Environmental Factors
It considers all the sustainable advancement and the protection through which concern
related to environment can be made. Premier Inn Hotel try to reduce waste and manage the
protection of environment.
4 Conclusion
Business organisations are most important sectors which helps in the growth and
success of the company. Their is been analysed that hospitality sector use to create major
economy and also manage the financial stability for the country. The organisational structures
helps in analysing the areas and the methods through which they can manage the systematic
work. Divisional organisational structure provides distribution of all the departments and
their work. SWOT Analysis helps in analysing the strength of Premier Inn Hotel as it is well
known leading hotel and manage all work and advancement. Furthermore it is also analysed
that PESTEL analysis creates the external factor through which all the areas and the
management us being framed and they tends to build and effective strategies and their work.
8

5 References
Büyüközkan, G., Mukul, E. and Kongar, E., 2021. Health tourism strategy selection via
SWOT analysis and integrated hesitant fuzzy linguistic AHP-MABAC
approach. Socio-Economic Planning Sciences, 74, p.100929.
Clune‐Kneuer, E., Klute, P. and Chester, T., 2020. Guiding Principles for Optimal
Organization: Options for Successfully Merging Institutional Research and Business
Intelligence. New Directions for Institutional Research, 2020(185-186), pp.67-85.
Dawson, L. and et. al., 2021. ‘Should it fit? Yes. Does it fit? No’: Exploring the
organisational processes of introducing a recovery-oriented approach to mental
health in Australian private health care. Health, 25(3), pp.376-394.
Furusho, A. and et. al.,2020. Three-dimensional high-performance liquid chromatographic
analysis of chiral amino acids in carbonaceous chondrites. Journal of
Chromatography A, 1625, p.461255.
Gupta, G. and Mishra, R.P., 2021. Designing of a Framework for the Implementation of
RCM Using SWOT Analysis. International Journal of COMADEM, 24(1), pp.19-
24.
Leandri, P., Rocchio, P. and Losa, M., 2020. A SWOT analysis of innovative high
sustainability pavement surfaces containing crumb rubber modifier. Road Materials
and Pavement Design, 21(sup1), pp.S103-S122.
Peng, M.Y.P. and Lin, K.H., 2021. Disentangling the antecedents of the relationship between
organisational performance and tensions: Exploration and exploitation. Total Quality
Management & Business Excellence, 32(5-6), pp.574-590.
Subramanyan, K. and et. al., 2020. Exploring the usage of LiCrTiO4 as cathode towards
constructing 1.4 V class Li-ion cells with graphite anode recovered from spent Li-
Ion battery. Chemical Engineering Journal, 397, p.125472.
Wollmann, P., Kühn, F. and Kempf, M., 2020. Three pillars of organization and leadership
in disruptive times. Springer International Publishing.
Xue, H. and et. al., 2021. Redesigning the virtual organisational structure for the management
of prefabricated buildings. International Journal of Construction Management, pp.1-
17.
9