Understanding Business Organisation - Case Study of Premier Inn Hotel

This case study analyzes the organization structure, business environmental analysis, SWOT and PESTEL analysis of Premier Inn Hotel. It discusses how the hotel sustains a positive relationship with its customers and suggests the use of a flat organizational structure for reducing issues. The report also highlights the impact of COVID-19 on the hospitality industry.

Understanding
Business Organization

Table of Contents
INTRDUCTION..............................................................................................................................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

INTRDUCTION
The term business in organization is refer to an entity where the group of individual or
the single person are get busy in various profession and commercial functions. Due to this the
various types of requirements of the new and existing customers are easily fulfilled in time. In
business organization always run their operational and departmental functions in systematic
manner which leads to increase their profit margin and productivity at large scale. The chosen
company is Premier Inn Hotel and it is the British largest hotel chain industry across the world.
The headquarter of this organization is located England, United Kingdom (Barnichon, Debortoli
and Matthes, 2022). This is basically a private limited organization which is comes under the
category of hospitality industry. The organization was established in 1987 by Whitbread as travel
Inn Hotel Organization have around 900 restaurants with 73,000 rooms. In variety of locations
such as airports, city centres and others Premier Inn hotel operates their activities. The report will
covers the organization structure of Premier Inn, discuss the internal and external factors which
impact on their business and also covers the environmental analysis of this organization. Due to
facilitating best quality service to their customers in hotels the positive relationship between firm
and consumer is effectively sustained in long term.
TASK
Organization structure of Premier Inn Hotel
The hotel Premier Inn already have well established image in market in United Kingdom
and also in other countries. This organization is being considered as the highest growth rate in
hotel industry across United Kingdom with around 590 hotels. In aspect of business the authority
of Premier Inn hotel, the responsibilities of board of members, chairman, CEO and others are
clearly defined and abstracted. The responsibilities and obligations regarding chairman and CEO
of the organization have been agreed by board of members. A flat organizational structure is
called the horizontal organizational structure where different types of departments of this
company are involved. According to this structure the employees of this organization has been
involved in the procedure of decision making. In respect of Premier Hotel Inn, various
candidates are involved in the part of management. The respective organization have long chain
of unit which is big and also have effective group of management. In aspect of full length of
company's structure, very low candidates are involved in the activities of management who deals

with each others. With help of this structure the executives of this organization is able to
supervise their candidates effectively. In the aspect of flat management structure sense of
responsibilities and roles has been permitted to their candidates. Along with the candidates of the
organization are easily motivated at maximum level. Due to this the candidates of this
organization are able to handle any type of task in systematic manner. In addition to this respect
is provided by every candidates between each other which leads to decrease their conflict with
others at maximum level. If the organization wants to maintain focus on their technology and
innovation then they must apply flat organizational structure which is highly desirable for them.
In context to Premier Inn Hotel, authority of this firm must apply flat organizational structure for
enhancing their performance and productivity at maximum level. With help of this structure is
able to prepare effective solutions for their various problems which is occurred during their
business activities and also at the time of delivering services to consumers.
Business environmental analysis of Premier Inn Hotel
Business environment is related with those environmental situation where employees of
this organization perform their job roles and responsibilities effectively and completed in time
(Hamzah, Maelah and Saleh, 2022). In the aspect of activities of Premier Inn Hotel received
great impact due to the situation of COVID pandemic. There are various negative impact which
is seen or realized on the hospitality sector during the time of pandemic. But with help of
applying different types plan of actions and tactics the authority of firm is able to reduce their
problems effectively.
SWOT Analysis
It is basically a framework which is applied by the company for identifying their strength,
weakness, opportunities and threats appropriately. In relation of Premier Inn Hotel, SWOT
analysis are described below -
Strength -
One of the major of this organization is that their safe and healthy image in market. In the
aspect of Premier Inn Hotel, it is very best because their facilities and services which is offered
to consumers is highly beneficial and effective which create direct effect on the minds and hearts
of customers. The next strength of this organization is the use of talented workers. Due to the use
of skilled employee's company are able to manage high number of rooms for their consumers in
systematic way.

Weakness -
Due to facing high competition level by organization in the hospitality industry, they
faced various problems for delivering their services to customers in time. In hotel sector heavy
competition are there which is faced by them and due to this they did not able to sustain their
goodwill in market or between customer in long term.
Opportunities -
The authority of Premier Inn Hotel must utilize different types of marketing strategies for
expanding their business activities and services internationally. That means company need to
made heavy investment in various promotional techniques and digital marketing. It leads to
increase the popularity of their brand value effectively in market.
Threat -
The major threat which is presently faced by the Premier Inn Hotel is that their
competitors (Kapepo, Van Belle and Weimann, 2022). As the AIRBNB is being considered as
biggest threat for the company.
PESTEL Analysis
It is basically a method which is utilized by organization for identifying the various
external factors which directly effects the various functions in their business. That impact will be
result as both negative and positive. In respect of Premier Inn Hotel, the factors of PESTEL
analysis are described below -
 Political – This factor is defined as the combination of various regulations and rules
which is made by both government and company. In the aspect of hotel industry
government made strong control and hold if the government restricted the travelling then
heavy effect is produced on hotel and tourism sector. In aspect of Premier Inn Hotel, this
factor create effect on the activities of organization in a positive way because of
reforming good policies. In this way organization is able develop the policy, better setting
of accommodation rates. All this ultimately reflects on the maximum profit of
organization.
 Economical – In the present time the hospitality is considered as one of the biggest and
fastest expanding industry. In relation to Premium Inn Hotel, authority will faced various
types of challenges if the changes made in currency rates of any particular country. These

type of changes will create direct effect on the room booking and ticket price amount of
this hotel.
 Social – In the aspect of income of Premier Inn Hotel, it is totally depend on the tourism
factor. Because for them seasonal holidays such as Christmas, bank holidays and many
others is consider as a beneficial date to them which leads to increase their profit at
higher rate. In these dates the trip of tourist within country is high in rate. Due to this
organization can provide average price also must introduce new entertaining activities for
consumers.
 Technological – It is related with those factors which impact the whole functions of
organization directly in digital manner (Kourula, 2022). The company who operates their
functions in hospitality industry is directly connected with their clients. Due to this it is
necessary for Premier Inn Hotel that they must adapt new type of technologies which
creates high changes in their business activities. The manager of this organization must
utilize advanced equipments for gaining competitive advantage in market.
 Environmental – Here protection of environment is considered as an top responsibilities
by organization in business sector. In respect of above mentioned company must consider
all the factors which is not harmful for environment. It leads to increase the performance
of firm at large level.
 Legal – In aspect of hospitality sector management must keep in their mind about various
regulations and rules which is created by the council of the country. The compliance of
various regulations and laws are responsible for creating problems for the business
enterprise and due to this the task of the organization is not completed in time. It leads to
decrease the goodwill of company effectively.

CONCLUSION
After the analysis of above report it has been concluded that understanding business plays
the major role for run the activities of firm smoothly. It is also important to the business
organization for analysing both external and internal factors effectively. 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
Barnichon, R., Debortoli, D. and Matthes, C., 2022. Understanding the size of the government
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Hamzah, N., Maelah, R. and Saleh, O. M., 2022. The Moderating Effect of Human Capital on
the Relationship between Enterprise Risk Management and Organization
Performance. International Journal of Business and Society, 23(1), pp.614-632.
Kapepo, M. I., Van Belle, J. P. and Weimann, E., 2022. Towards a theoretical understanding of
workarounds emerging from use of a referral mobile application: a developing country
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Kourula, A., 2022. Contesting Social Responsibilities of Business: Experiences in
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