Premier Inn Hotel Chain: Organisational Structure and Business Environment Analysis

This report provides an analysis of the organisational structure and business environment of Premier Inn Hotel Chain. It discusses the pros and cons of tall organisational structure, SWOT and PESTLE analysis, and the impact of COVID-19 on the hotel industry. The report concludes that analysing all aspects of the global business environment is crucial for improving sustainability and profitability.

Understanding
Business Organisation

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
ORGANISATIONAL STRUCTURE OF THE COMPANY.....................................................3
BUSINESS ENVIRONMENT ANALYSIS OF THE ORGANISATION.................................4
SWOT Analysis of the Premier Inn Hotel: -..............................................................................4
PESTLE Analysis on Premier Inn Hotel: -.................................................................................5
CONCLUSION ...............................................................................................................................7

INTRODUCTION
The business organisation may be defied as an entity which is developed in order to carry
out the any commercial, industrial and professional practices. As there are different types of
factors which comprises in the business environment which are not in the control of the
management and has a huge impact on the company functioning (Bai, Cordeiro and Sarkis,
2020). The aim of this report is understand or gain the knowledge about the business
environment of the Premier Inn Hotel. The respective company was founded in 1987 as Travel
Inn in 1987 by Whitebread. The respective hotel has the biggest hotel chain of UK with over
800 hotel with 78000 rooms all across the globe. The firm provide high quality of services with
reasonable price to their visitors which result in developing strong bond with the customers and
improves the company image. The aim of this report is going to discuss about the organisational
structure of the chosen company and which structure that company have to follow. Along with
this , this report also paid focus on the business environment along with the pros and cons of the
tall organisational structure. After this, this proper environmental analysis on the chosen
company is also been covered in this report with the help of SWOT and PESTLE analysis.
TASK
ORGANISATIONAL STRUCTURE OF THE COMPANY
Organisational structure is basically the way in which the management of the company
allocate, supervise,coordinate and direct the employees of the company in order to attain the set
goals of the company (Demil, Lecocq and Warnier, 2018). Tall organisational structure can be
followed by the management of the Premier Inn Hotel. The tall organisational structure
comprises of different levels of management and have a long chain of command. In this
employees of the department is only accountable to the departmental manager. This structure is
basically a hierarchical representation of different types of level but not cross more then 8 levels.
If this structure is followed by the Premier Inn management then employees better understand
their roles, responsibilities and company goals.
Advantages of the Tall organisational structure: -
 As in the tall organisational structure the span of control is narrow which helps the
manager to closely supervise and monitor the employees.

 Clear management structure result in communicating the roles and responsibilities in
proper manner and in each level the role of the manager is different (Akpan,
Soopramanien and Kwak, 2021).
 The sense of clarity is provided by the manager to the employees in relation to the task
which result in motivating the employees because they exactly known what they have to
carry out.
Disadvantages of the Tall organisational structure: -
 Due to the closely supervision of the employees by the manager give less freedom to the
employees.
 As because of the entails of different level of management, the process of decision
making is slow. The approval of the decision have to came form the different level of
managers
 The communication process is also slow because of the involvement of various levelm of
management.
BUSINESS ENVIRONMENT ANALYSIS OF THE ORGANISATION
Business environment is basically the different set of conditions where the management
of the company operate their different business functions (Szewieczek and Sulik-Górecka, 2018).
The aim of the Premier Inn hotel is to provide excellent quality of services at a very reasonable
rate to their customers with a aim to earn lots profit. But after the arisen of COVID 19 different
types of challenges has been faced by them due to which their profits has been affected in a very
immense manner.
SWOT Analysis of the Premier Inn Hotel: -
SWOT analysis is being considered as the most important framework which
organisational managers utilize to evaluate the competitive position and develop the different
strategies to grow. In relation to the SWOT analysis SWOT analysis has been discussed below: -
Strengths
 Occupancy rate: - the occupancy rate
of the premier Inn Hotel is very high as
compared to others hotels. With more
Weaknesses
 Refund issues: - During the COVID 19
situation the management of the
company is refuses to pay the refund of

than 76.3 % occupancy rate the
respective company attain a successful
position in the hotel industry.
 Goodwill: -the firm has a well known
image in the marketplaces, the facilities
of free Wi-Fi 24/7 and Kid-friendly is
the main selling point for the hotel. The
respective firm awarded Best UK
economy hotel brand in 2017 for 7
consecutive years.
some of the customers. This ruin the
company image in the customer mind
and has been accused.
 Limited presence: - this is being
considered as the most important
weakness of the Premier Inn Hotel. As
the company has limited presence all
across the globe as compared to their
market giant (Seetharaman, 2020).
Opportunities
 Digital marketing: - by utilizing the
different types of digital marketing
tools the company can increase their
global presence and have the
opportunity to promote their business
through social media platform.
 More Strategic ties up: - The
company have the opportunity to tie up
with the new hotels which help them in
meeting the demand of the consumer in
a very proper manner and increase the
customer base (Tien, Phu and Chi,
2019).
Threat
 Immense competition: - as the
hospitality industry is being considered
as the most competitive sector due to
which profits of the company has been
affected. The main rivals of the Premier
Inn Hotel are, Easy Hotel, Marriott and
many more.
 Brexit and COVID 19: - due to the
different types uncertain events like
Brexit and the COVID 19 pandemic the
financial position of the company has
been affected in immense manner. If
these types of challenges arises in
future then respective firm may have to
face the challenges.
PESTLE Analysis on Premier Inn Hotel: -
This is basically an environmental scanning frameworks by which the management of the
company gain macro picture of the industry. With the help of this analysis the organisational

manager are able to examine the different types of external factor which has a huge impact on
the administration. In relation to the Premier Inn Hotel, PESTLE analysis has been discussed
below: -
 Political factors: - The government of the United Kingdom is successfully collaborate
with the hospitality industry which result in the development of the different types of new
opportunities. In relation to the Premier Inn Hotel, the positive impact of this factor is full
support of the government, which assist them to initiate the change. The negative aspect
is the BREXIT impact, due to this firm have to lose high number of employees because
of the changes in the law (Sabirov and et. al., 2021).
 Economic: - the government of the UK invest more in the hospitality industry to back on
the track because of the COVID. The positive impact is that the the economic condition
of the UK is well developed due to which people have the high spending power. The
negative impact is that the current strategies which are used by the management is
becoming outdated. The Premier inn management must have to develop new strategies to
attract more guest.
 Social: -the behaviour of the consumer has change because of the COVID 19 emergence.
Due to the rise in the cost of living the people expected to low cost services with high
standard, this act as negative aspects for the Premier Inn. On the other hand, the
management of the company improves the customers experience by transforming hotel
strategies as per their behaviour.
 Technological: -due to the advancement in the technology within the UK like 5 G
network, mobile app, internet browsing the booking can be done in effective manner
which is favourable for the firm. The spread of the fake new through social media
platform result in decline reputation and customer base.
 Legal : -due the emergence of COVID 19 the government of the UK give rebate on the
tax which is favourable for the respective hotel. On the other hand the change in the
employment law and rise in the rate of minimum wages act as negative aspect for the
firm (Pulka, Ramli and Mohamad, 2021). The management have to follow the Health and
Safety law if they don't do this they have to face the consequences.
 Environment: -as the resources are available in the UK in a very easy manner like
natural resources, water and other which is favourable for the Premier Inn Hotel. On the

other hand the uncertain climate conditions like closing airlines, rail networks and
different seasons affect the sales of the company.
CONCLUSION
From the above report it has been concluded that the it is very important for the
management of the organisation to analyse all the aspects of the global business environment. By
doing this the firm can improves is sustainability as well as profitability. This report also
concluded that the selection of the organisation structure must be important. The performance of
the company is totally based on this as this. This report also concluded the SWOT analysis of the
chosen organisation which helps the management to understand about the plus points and in
which area they are lacking off. After this PESTLE analysis is concluded in this report which
help the company management in gaining knowledge about which impacts is favourable and
unfavourable on business organisation

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