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

This report provides insights into the organizational structure and business environment of Premier Inn Hotel, including PESTLE and SWOT analysis. It covers the impact of COVID-19 on the hotel industry and how Premier Inn has coped with it.

Understanding Business
Organization

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY ..................................................................................................................................3
Organisational Structure of Premier Inn Hotel.......................................................................3
Business Environment Analysis of Premier Inn Hotel...........................................................4
CONCLUSION................................................................................................................................7
REFRENCES ..................................................................................................................................8

INTRODUCTION
Business organization means those entities that has been formed over the purpose to carry
any kind of commercial activities regarding business perspectives making different goals
achieved with effectiveness. These organizations work upon providing customers with goods and
services that has been formed by them. The main objectives of business organization is to
understand about customers satisfaction that is achieved through preparing product as per
demands of customers. Under business organizations there are two major factors which are
internal and external factors. Both the factors have drastic impact upon business as they
influences all activities existing within an organization. The organization that has been taken in
the Premier Inn hotel that is an British Limited services and largest hotel brand within United
Kingdom. The hotel has been operating various locations within UK. It has headquarters in
Dunstable, United Kingdom. Further the report is based upon PESTLE analysis that is related to
external factors which impacts the functioning of hotel through factors affecting working of
Premier Inn externally and impact of COVID 19 is explained also. Then in the report
organizational structure and business environment has been covered. In the end SWOT analysis
is done regarding internal factors with the impact of COVID 19.
MAIN BODY
Organisational Structure of Premier Inn Hotel
The Premier Inn hotel is an British limited services that is largest and popular chain of
hotels in UK. This hotel has 72000 rooms and 800 hotels in various countries like Qatar, United
Arab and Germany(Ongena and Ravesteyn, 2019). It has been operating in various location
including city, centres, suburbs and airport. The hotel has formed its image through facing tough
competition within the market. The hotel was formed in 1987 by Whitbread as Travel Inn merger
has taken place which lead upon brand of hotel to be developed. The hotel is an hospitality based
industry and has various services and products like housekeeping services, food and beverages
services, security services .
All Premier Inn hotels have an on site restaurant with the exception of hotels that has
been formerly Holiday Inn Express where in kitchen facilities were added to the hotel in relation
to breakfast. Mots of hotels has been accompanied by Whitbread restaurant like Whitevread Inn ,
Table Table and Brews Fayre. It also has majority of town and city centre hotels within the house

restaurant named as Thyme. City centre hotel has used for having slice or BarEst restaurant
designing and menu was very similar. Also the hotels uses Premier Lodges over range of
different restaurant that has been operating by Spirit Pub Company. As the pandemic situation
arise which made hotel do promotion through online and digital means which makes significance
developed over portion of bookings making brand of hotel more popular in other countries.
Further, Premier Inn made substantial investment within the main website and mobile app which
made the process of booking developed over the Premier Inn website. This shows that
organizational structure that is followed by Premier Inn hotel is divisional structure which has
helped hotel to grow in more effective manner.
Business Environment Analysis of Premier Inn Hotel
Business Environment means those aspects of business which deals with forces that helps
in making various aspects of business organization covered more effectively. In business
environment both internal and external factors involved within it making business organization
function properly. In order to make business environment more effective in nature Premier Inn
hotel has requires to perform PESTLE and SWOT in order to improve business environment.
Further PESTLE analysis of Premier Inn has been conducted in relation to Covid
19 as follows:
Political factors: Premier Inn is one of the most popular hotel within United Kingdom
and political factors has very important role to play within its progress. Since the hotel is
required to cope up with political situation in order to operate globally (Ilin and et. al., 2018). If
policies of particular government is not suitable then hotel Premier Inn faces lot of difficulties
regarding its revenue generation. Due to COVID 19 situation lock down situation imposed by
countries that impacted sales of Premier Inn hotel as bookings were not taking place during the
period of lock down.
Economic factors: These factors has impacted hotel industry in direct and indirect
manner as it deals with factors like interest rate, inflation rate, growth rate and GDP of an
country like UK. In order to makes expansion possible Primer In is required to target countries
that has high disposable income. The impact of COVID 19 has made loans to be available at
lower rate which makes Premier Inn to seek an opportunity to improve its expansion speed. Also
through getting loans at cheap rate various process of business organization makes productivity
lost of the hotel.

Social factor: Primer Inn hotel is an known brand within all international visitors an it
includes various aspects like consumer lifestyle, consumer demographics, population growth
rate, culture, gender ratio, etc. This is one of the most important factor as it makes understanding
developed about customers and there needs. Further the factors helps hotel like Prime Inn to
understand customers in better and effective manner. Due to COVID-19 Premier Inn hotel
faced problem as no social gatherings were taking place.
Technological Factors: This is one of the most important factor as it make organizations
attain sustainability within its various process. It is based upon those aspects which helps making
Premier Inn use latest technology for creating satisfaction in relation to technology. The hotel is
required to upgrade its technology after pandemic situation. As it introduced digital payments
methods which made online booking become faster and better. Also rise in the use of social
media more advance feature were added making website become more user friendly.
Legal Factors: These are one of the most important factors which is related to all kinds
of laws existing within a country making hotel industry bound to follow it. In the COVID 19
time period Premiere Inn was bound to follow all rules and regulations launched by government
in order to avoid any legal issue (Grusky, 2017).
Environmental Factor: The factors is related over all kinds of environmental laws
which has been passed to make environment protected by conduct of hotels. In the period of
COVID 19 these laws were made more strict and was easily followed by Premier Inn hotel since
they made collaboration with NGO's and conducted programs making hotel become more
popular among people helping in gaining strong customer base.
Further SWOT analysis of Premier Inn has been conducted in relation to Covid 19
as follows:
Strengths of Premier Inn
Occupancy rate
The rate of occupancy is more than 76.3% and has very good position within the industry
. It is known for services that has been provided by hotel which include pillows, cosy duvet, and
blackout curtains which is preferred by most of customers. This made hotel survive COVID 19
time period also.
Strong presence in the UK

This is one of the strength of the organization that has helped in forming 800 hotels with
785000 rooms. It has been serving over five million customers every month. This got impacted
in lock down period which happened due to COVID 19.
Weaknesses of Premier Inn
Limited global presence
This is one of the most important weakness which affected the growth of Premier Inn
Hotel and made its operations limited to particular countries only. COVID 19 become one of the
most important weakness that made Premier Inn faced difficulty on gaining profit.
Refund Issues
Premier Inn has faced refund issues in relation over cancellation of bookings made by
customers. This made customers dissatisfaction created (Betta, 2019).
Opportunities for Premier Inn
New markets
This made Premier Inn explore new markets which made its entry possible within
Germany. In COVID 19 period this opportunity boomed as lot of opportunity through digital
means was created to make expansion possible.
Further growth in Germany
Premier Inn hotel in Germany made growth opportunities created and opened way to
develop path for success. This was impacted in COVID 19 pandemic situation.
Threats to Premier Inn
Legal threats
This become threat for Premier Inn as in CIVID 19 pandemic period many laws were
imposed strictly that made hotel shift to new means of performing legal activities.
Lockdowns
Lockdowns has impacted many business all over the world dualistically. Premier Inn also
got affected badly which impacted future growth of the hotel.

CONCLUSION
From the above the discussion it can be marked out that business organizations are those
aspects which is used for making business process operate more effectively through product and
services sold. In this report PESTLE and SWOT analysis is conducted which has helped in
improving business environment making business process to be improved in more effective
manner. PESTLE analysis makes hotel to develop external structure making its growth possible
within particular market. SWOT helps in improving internal structure making hotel to improve
its employee and staff behaviour.

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