Understanding Business Organisations and Its Environment: A Case Study of Premier Inn Hotel

This case study discusses the organisational structure and business environment analysis of Premier Inn Hotel using PESTEL and SWOT analysis. It covers the impact of the changing business environment on the organisation. Premier Inn Hotel is the UK's largest hotel brand with a unique vertically integrated model. The report also highlights the importance of analysing the business environment for organisations.

Understanding
Business
Organisation

Table of Contents
INTRODUCTION......................................................................................................................3
MAIN BODY.............................................................................................................................3
Organisational Structure of Premier Inn Hotel......................................................................3
Business Environment Analysis of Premier Inn....................................................................4
CONCLUSION..........................................................................................................................7
REFERENCES...........................................................................................................................8
Books and Journals:...............................................................................................................8

INTRODUCTION
Today's business environment is continuously changing which provides a direct or
indirect impact on the organisation. It becomes necessary for a company to make sure of the
nature of the business environment before making any big decisions (Glebovskiy, 2019). For
that purpose, it is necessary to analyse the business environment that can be possible with the
help of using PESTEL analysis and SWOT analysis. In this context, Premier Inn Hotel is
Undertaker as a case study which includes the discussion of the organisational structure of the
company. Premier Inn Hotel belongs to the British limited service Hotel chain and is found to
be the UK's largest Hotel brand which includes more than 800 hotels. Headquarter is situated
in Dunstable, England, UK. This report aims to cover the explanation of the organisational
structure and environmental analysis with the use of tools in order to identify the impact on
business. Business environmental analysis is very important in today's business in are you
because every day it is found that the market trend is continuously changing and it provides a
negative as well as a positive impact on the organisation. Business environment analysis
helps an organisation to identify the factors which may create risk for them.
MAIN BODY
Organisational Structure of Premier Inn Hotel
Premier Inn Hotel is found to be one of the largest Hotel changes which come under
Whitbread PLC in the UK. They have more than 800 hotels and the UK and are found to be
very popular among people. It is identified that 70% of UK residents live within a 5 miles
radius of Premier Inn Hotel (Metallo and et.al., 2018). The structure of the organisation is
very unique as it followed a vertically integrated model which focuses on combining hotel
operations, ownership of property, inventory distribution and brand. It helps to grow at a
rapid rate as compared to its competitors. With this model or structure, Premier Inn Hotel is
able to deliver a superior quality of customer experience and in return, they are generating
capital for shareholders. With this unique structure, they are able to gain a competitive
advantage even in a challenging market. It also helps to become the number one hotel
operator in the whole UK. Currently, they are also expanding their presence in Germany.

It is identified that the unique operating model is very helpful to provide a clear
comparative advantage. It also enables the delivery of customer proposition which provides a
strong appeal to customers in both currents as well as the post-pandemic environment. It is
identified that one topic from this business structure is providing a negative impact on
organisation i.e. this model or a structure is very tough to follow and sometimes the
organisation is not performing according to the requirements of this structure. It is very
important for an organisation like the needs to analyse the business environment as well
because of its dynamic nature.
Business Environment Analysis of Premier Inn
The business environment is the collection of internal as well as external factors
which include employees, supply and demands, consumer expectations, management,
government activities, suppliers, clients, social trends, economic changes, etc. It is found that
decent factors of playing of very important role in the company as it influences positively as
well as negatively (Alexander, Jha and Pandey, 2020). That's why it is crucial for an
organisation to analyse the business environment. Premier Inn Hotel is found to be a very big
hotel change and that's why it becomes more important to analyse the market.
SWOT Analysis
SWOT analysis is a tool which is used to analyse the internal environment of business
organisations. It includes strengths, weaknesses, threats, and opportunities. SWOT analysis
sting a very important role in order to analyse the internal environment of the organisation.
SWOT analysis is mentioned below:
Strengths Weaknesses
 Premier Inn Hotel is found to be one  The hotel has a limited presence in

of the largest chains in the UK. They
have a strong presence in UK and
source over 5 million customers
every month.
 It is identified that the locations of
Hotel are always found to be near
airports and great tourist attractions.
It is very helpful in order to attract
the customers (Raynor and Coenen,
2021).
the global market as compared to
other competitors as it is found in
very limited countries.
 It is identified that Hotel faces some
accused of refusing refunds to some
customers which comes under strict
local lockdowns and it results in
unhappy customers.
Threats Opportunities
 Competition is found to be one of
the biggest threats for Premier Inn
Hotel. Every day there is a
continuous increase in competition,
especially in the hospitality industry.
 Due to lockdown, it is identified that
businesses face many problems and
it creates many threats for the
hospitality industry as people are not
coming into the organisation.
 Exploration of the new market is
found to be the biggest opportunity
for the hotel. After a successful entry
into Germany, it is identified that
they finally got entry into the
Republic of Ireland. They have a big
opportunity to enter a new market.
 It is identified that properties of
Hotel have been trialling room
design and decor which found to be
a great surprise for their guest.
PESTLE Analysis
It is found that there are many factors identified in the metro environment that provide
some direct or indirect impact on decision making and the strategies of the organisation
(Soussan, 2021). In order to successfully run the organisation, it is crucial that companies are
focusing on analysing the external environment which can be possible with the use of
PESTEL analysis as it helps to critically evaluate and identify the factors which become
favourable and unfavourable for the organisation. It include 6 important factors which are
discussed below:

 Political Factors: It is found that the pragmatic and positive collaboration with the
Government of the UK has found to be very crucial for the hospitality industry as it
creates a key success area for the economic development in the country (Mikova,
Mihova and Stefanov, 2020). It is found that political factors encourage Premier Inn
Hotel as it helps to expand their budget. Continuous growing demand in the sector
provides an opportunity for hotels as they are able to expand their business. Political
factors become unfavourable for Premier Inn when they are expanding their business
in the international market because every nation has different political parties and
that's why they have to face many problems regarding them.
 Social Factors: Every day it is analysed by the hotel that the changing lifetime and
living standard of consumers becomes very tough for the hotel to understand (Valero,
Saitgalina and Black, 2021). Continuous changes in society and culture are found to
be the cause of increasing living costs and it is found that people are preferring only
low-cost products and services so it becomes very difficult for Premier Inn Hotel to
fulfil the demands of consumers.
 Economic Factors: After the pandemic situation, the economic condition of countries
is found to be very poor and that's why it provides a negative impact on the businesses
of the hospitality industry. It becomes very tough for the hotel to get back to its
original position after the new normal.
 Technological Factors: Technology is found to be a boon as well as a curse for the
hospitality industry. It can be said that a high level of Technology reduces the burden
on employees and makes an efficient supply chain management. It is also very helpful
for promoting the goods and services in the market. But at the same time, Premier Inn
Hotel is facing a complexity of budget as if they involve a high level of Technology
the net provides a direct impact on the budget of Hotel. It also increases the cost of
rooms and other services which becomes tough for an organisation to deal with them.
 Legal Factors: Legal factors are including some important laws which are necessary
to comply with hotels (Mughogho, 2020). It becomes very tough for the hotel to
comply with all laws in the international market as every country has its laws.
 Environmental Factors: It is necessary for the hotel industry that they need to avoid
all the laws related to the environment as it is their responsibility for them to make
sure the sustainability should be maintained by them.

CONCLUSION
It can be concluded from the above discussion that every day the complexities for the
organisation are continuously increasing because of changes in the business environment.
This is the main reason that it is important for an organisation to analyse the business
environment. The business environment includes internal as well as external factors. For the
purpose of internal analysis, SWOT analysis is effective. On the other hand, external
environment analysis can be possible with the help of PESTEL analysis.

REFERENCES
Books and Journals:
Alexander, A.A., Jha, S. and Pandey, A., 2020. Understanding how hybrid organisations
tackle social challenges: An institutional logics approach. South Asian Journal of
Business Studies, 9(2), pp.193-213.
Glebovskiy, A., 2019. Inherent criminogenesis in business organisations. Journal of
Financial Crime.
Metallo, C., and et.al., 2018. Understanding business model in the Internet of Things
industry. Technological Forecasting and Social Change, 136, pp.298-306.
Mikova, S.V., Mihova, L.K. and Stefanov, M.G., 2020. Interaction Between Higher
Education Institutions And Business Organisations In The Field Of Logistics And
Supply Chain Management. Economy & Business Journal, 14(1), pp.116-129.
Mughogho, A.K., 2020. Towards an understanding of how organisations create shared
value: A business model perspective (Doctoral dissertation, University of Pretoria).
Raynor, K. and Coenen, L., 2021. Business model innovation and scalability in hybrid
affordable housing organisations: empirical insights and conceptual reflections from
Melbourne, Australia. Journal of Housing and the Built Environment, pp.1-20.
Soussan, T., 2021. Data Analytics to Enhance Business Organisations Workflow.
Valero, J.N., Saitgalina, M. and Black, R.A., 2021. Understanding the Nature of Non-Profit
Incubators with Other Sector Incubators in the Founding of Social Change
Organisations by Social Entrepreneurs. Journal of Social Entrepreneurship, pp.1-20.