Understanding Business Organisation: Premier Inn Hotel Case Study

This case study discusses the organizational structure of Premier Inn Hotel, the meaning of business environment analysis, and the impact of SWOT and PESTLE analysis on the hotel during the pandemic. It also highlights the strengths, weaknesses, opportunities, and threats of the hotel. The study concludes with recommendations for the hotel to achieve more success.

UNDERSTANDING
BUSINESS
ORGANISATION

Table of Contents.
INTRODUCTION...........................................................................................................................3
Organizational structure of Premier Inn Hotel.............................................................................3
Meaning of business environment analysis.................................................................................4
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
The term business organization describes as how organizations or businesses are
structured and how their structure aid them to meet their goals (Galanis, 2020). There are mainly
four types of business organization: sole proprietorship, partnership, company and LLP. This
case study will describe about the Premier Inn Hotel, which was founded in 1987 is the UK's
enormous hotel chain having more than 800 hotels offering standard accommodation at an
affordable price, bike-friendly room, free Wi-Fi surfing, tasty & delicious food in variety of
locations. The hotel is having its slogan called “we're all inn this together.” The case study will
discuss the organizational structure of the Hotel including the pros and cons of the structure.
Further it will discuss the meaning of business environment. After that the study will explain the
meaning of SWOT analysis and how it has an impact on the Premier Inn Hotel during the time of
pandemic. Later on, study will describe the PESTLE analysis and how it has an impact including
both positive and negative on the Hotel. Lastly, the case study will conclude with the key finding
of the SWOT and PESTLE analysis.
Organizational structure of Premier Inn Hotel
Any organisation, whether it's big or small, to carry its daily operations needs an
organisational structure. The main purpose is to specify the job, divide task and delegate the
authority among the departments. It helps to increase the work productivity and efficiency of an
organisation. Premier Inn Hotel following the tall organizational structure, elaborate that each
site has a separate manager who is in-charge of the operations with a large support team
(Bodolica, Spraggon and Shahid, 2018). If the hurdle is complex, then an employee can directly
approach to the appropriate level of the structure for aid and advice. The hotel is based on an
exceptional model which is known as “vertically integrated model” which amalgamates its
property, hotel's functionality, brand, stock division helped to develop effectively. The
organizational structure guarantees gender equality as it employs large number of staff for the
operation of the work. They focus on equal pay for equal work and follows the necessary
methods to assure that the pay slips would be gender-neutral. Higher management members
make themselves available whenever required. Premier Inn intranet is easily reachable to the
members of the organization which includes all the relevant information on the daily working
culture, legal documents to any useful advice. Experts are allocated to each section so that
employees can take advise through the “chat function” feature. The company follows appropriate

communication channel for any new information to be shared directly shared to the allotted
desktops of the employees which would pop-up at the bottom of the worker's desktop screen.
Premier Inn PLC Board and Whitbread Executive Committee are comprising the company's
directors and executives. The organizational structure is segmented into six divisions i.e. front
office, finance, human resources, food & beverage and sales & logistics. The hotel having an
inimitable model includes competitive advantage with providing better experience to the
customers. The biggest disadvantage is that the organization have to bear huge expenses.
Meaning of business environment analysis
According to Renee O'Farrel, it refers to the systematic process of the businesses to
identify the environmental factors, its impact on the businesses and plan accordingly to deal with
that circumstances (Yahaya and et.al., 2020). Business environment analysis is a strategic tool to
determine all the internal and external elements which affects the performance of the
organization.
SWOT Analysis: Also known as situational analysis is a framework used to help an
organization to identify its internal strengths and weaknesses and external opportunities and
threats (Roy and Thohari, 2020). The case study will discuss the 4 elements of SWOT analysis
and its impact on Premier Inn Hotel during pandemic.

1. Strength: The reputation of the company is its significant strength. Its standard services
and the customer handling strategies with a satisfactory experience are the fulcrum of its
fame. Premier Inn Hotel having more than 800 hotels and around 78,000 rooms providing
enormous and variety of locations for their customers (Benzaghta and et.al., 2021). Huge
space played a crucial role when handling the clients concerning the Covid-19 guidelines.
2. Weakness: The high level of competition in the hotel industry is one of the biggest
drawback of the company. Pandemic forces closures across the group of Whitebread and
slumped to a loss of £725m with a huge decrease in the bookings due to regional lock
down in UK (Baki, 2020). The share prices of the company witnessed a 17% downfall.
3. Opportunity: With the ease in Covid-19 protocols, the company forecasted a significant
bounce because of its uniquely position in the UK market being a brand having broad
customer reach. The company is overbooked because of summer vacations and its
innovative campaigns. The company seeing the acceleration in the industry have a great
opportunity to expand its hotel (Filimonau and Magklaropoulou, 2020). Hotel chain is
planning to open properties in Germany with CleanProtect enhanced cleaning regimes
and contactless dealing which will enhance their market share and profitability.
4. Threats: Apart from pharmaceutical industry, every industry had been badly affected
during pandemic (OKATAN and YILDIRIM, 2021). Premier Inn threat was closure of its
hotels due to lock down which forced them to cut jobs and after pandemic staff shortages
due to issue of labour laws and Brexit.

PESTLE Analysis: It is a framework used to assess the macro-environmental factors that might
impact the management of an organization or business (Kara, 2018). In this case study it will
discuss the PESTLE analysis, its favourable and unfavourable impact on the Premier Inn Hotel.
1. Political factors: The current pandemic has forced the government of UK to impose
regional lock down and ban on international travel which resulted in lose of traveller
clients and hotel had to bear huge losses (Pan, Chen and Zhan, 2019).
2. Economical factors:The strong blanc sheet, integrated operating model and efficiency
programme helps the company to invest for expansion of business placing ahead of its
competitors. UK's monetary condition and Brexit had a bad impact on the Hotel with
various modification in the UK's economic strategies (Lin and et.al., 2019). Hotel money
refund policy is completely unfavourable because of the misuse of this policy resulting
company a huge loss.
3. Social factors: Since, Premier Inn Hotel have their hotels located at different venues
provides diversity to the customers without compromising to the quality standards.
Because of the quality the cost or price of the rooms are relatively higher than its biggest
competitor i.e. Airbnb (Lu and Tabari, 2019). The premier Hotel have actively
participated towards the welfare of the community. Force for Good is a campaign run to
support communities by donating food surplus and pledging to support people of

Ukraine. They actively participated during pandemic time for providing beds, vaccination
campaign and hotel space.
4. Technological factors: Innovation in technology becomes necessary for the development
and growth of the company. Hotel started to promote through social media, webpage,
app, pop-up advertisement to connect with the individuals which is a cost-effective
strategy for promotion (Manns, 2020). The unfavourable thing because of innovation in
technology give rise to the issues regarding Data Protection Laws and payment method.
Another issue is regarding the individual's who are not connected through online media,
resulting in taking them by its competitors.
5. Legal factors: Intellectual property, health & safety norms, employment legislation,
protection of data are the legal factors affecting the internal business policies of the hotel.
The change in labour laws may increase the expenditure burden and Brexit result a
drastic change in the different policies (Papadopoulos, Lopez‐Andreu and Jamalian,
2021). The privacy issues of the hotel are resolved with the help of robust mechanism of
Data Protection Act, 2018. Location of the hotel to a high-crime area can directly impact
the hotel's revenue.
6. Environmental factors: The company's “Good Together” campaign, power-saving
lighting, water saving technologies helps the hotel to adapt according to be more
environmental friendly. Net zero carbon emission by 2040, eliminating unnecessary
single-use plastics by 2025, 50% reduction in food waste by 2030 are three important
goals of the hotel to protect the environment (Ge, Chen and Chen, 2018). There are still
three key areas which are impacting the environment badly i.e. energy, water and
wastage. Hotel also badly affect the biodiversity from planning to closure stages of its life
cycle.
CONCLUSION
With the help of the above case study, it has been cleared that Premier Inn is one of the
top hotel in UK. The report concluded that quoted hotel follows tall organizational structure
which helped to increase the work productivity and efficiency. Further, the report concluded that
with the SWOT analysis Premier Inn has been able to identify its strength, weakness, opportunity
and threat during the time of pandemic which helped them to invest resulting to be ahead of its

competitors. The report with the help of PESTLE analysis has been able to abstract the external
factors which affect the decision-making and planning aspects of the quoted hotel. Therefore,
this has been the best hotel with a high standard customer experience even it falls short in several
areas as the company has been following the given recommendation which has the potential to
be an ideal chain of the UK's hotel industry. Analysing the above test the quoted hotel might
consider grabbing the opportunities and working on their weaknesses to achieve more success.

REFERENCES
Books and journals
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