Premier Inn Hotel Chain: Organisational Structure, Environmental Factors, SWOT and PESTEL Analysis

This report discusses the organisational structure, environmental factors, SWOT and PESTEL analysis of Premier Inn Hotel Chain. It is the UK's largest hotel chain with 800 hotels and 72000 rooms. The report highlights the strengths, weaknesses, opportunities and threats of the hotel chain and analyses the political, economic, social, technological, environmental and legal factors affecting the organisation. The report concludes by emphasising the importance of understanding the organisational structure and environmental factors for the growth of the hospitality industry.

Premier inn hotel chain

Table of Contents
INTRODUCTION...........................................................................................................................3
ORGANISATIONAL STRUCTURE.............................................................................................3
ENVIRONMENTAL FACTORS....................................................................................................4
SWOT Analysis...........................................................................................................................4
PESTEL Analysis........................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................1

INTRODUCTION
Hospitality industry is composed of various set of entities and that is brought about by the
amenities which are to be offered to customers. The organisation is composed of set of rules as
well as the formulations that are necessary in order to incorporate the kind of activities which
will provide people with the kind of satisfaction that is necessary for their approach into the
organisation. The strategic operations that are maintained in the organisation will defer the
choices of the organisation and therefore it will highlight the organisational growth (Rhou and
Singal, 2020). The business atmosphere in the organisation is maintain by various rules and
regulations such that the necessary actions can be amended and the organisation can move ahead
in a peaceful orientation. This entire report will highlight the hospitality industry as well as the
organisational operations that are a part of highlighting the choices. The organisation which is
chosen in this regard is Premier Inn hotel. It is regarded to be one of the reputed hotels in United
Kingdom which is offering accommodation for over millions of people that are visiting the
country for tourism and many other aspects. The prominence of this organisation is being
explained in this report.
ORGANISATIONAL STRUCTURE
The organisation Premier Inn is established in 1987. it was established by Whitbread. This hotel
chain is known to be the UK largest portal sem and it is also operating in 800 hotels with 72000
rooms. It is best known as a tourist destination because all the tourists that visit the country will
obviously take accommodation in this particular Hotel. There are certain formats that are being
processed by the organisation and there is a simplified look that is gratified for this organisation.
The revenue of this organisation is increasing on an early basis and advertisement model is
regarded to be one of the most prominent one in the hotel chains. It is moving ahead with
television advertising and that is what is known to be the biggest achievement for the
organisation. It is also operating in Qatar, Germany and the United Arab Emirates and is also
expanding its base into other countries. On a successful approach it has entered into Ireland in
2007 and is also working upon increasing its profitable standards.
The organisational structure is the one that is most prominent in dealing with entire strategic
operations of the organisation. It is more towards outlining the various choices that are in regard
to the organisation. The organisational atmosphere will bring in various roles and responsibilities
that will fall in regard to the organisation. There are various sectors that are a part of

organisational entity and that which can be adhered in terms of development. The organisation
Premier Inn is said to be the well reputed hotel that will highlight the prominence of the
management. The organisational structure is composed of the centralized structure with varied
formats and the roles are distributed among various levels of the management (Bowen and
Morosan, 2018).
Goals: the goals that are in regard to the organisational structure will define the entire entity of
the organisation. The entire goals of the organisation is to embark upon the values and to move
ahead with providing the better facilities to the customers.
Scope of Control: the entire organisational chain of command is the dependent upon the
management and the Deputy Director that are leading the organisation. Since this is regarded to
be one of the Hotels that is operating and United Kingdom its board members Institute of the
sewer and the various roles which will occupy the organisation management like that of human
resources, finance management and the marketing department.
Organisational structure: the organisational structure that is being followed by the organisation
Premier Inn is a functional organisational structure. It consists of various hierarchies which will
include manager as well as the subordinate employees that are taking charge of various roles and
responsibilities of the organisation. This format will help in maintaining the entire authority of
the organisation and will also stimulate coordination. The implementation of new ideas can
therefore be gratified without negotiations and that will contribute for the best of the
organisation. Also, the organisation follows divisional organisational structure which will take
charge over various resources that will substantially maintain the entire entity of the organisation
(Goryushkina and et.al, 2019).
ENVIRONMENTAL FACTORS
SWOT Analysis
SWOT analysis of any organisation will deal with strengths, weaknesses, opportunities and
threats. This internal analysis will bring about a brand requirement as well as how far it has
emerged as a conception that has paved way into benchmarking its business and performance is
being explained through SWOT analysis.
Strengths: This hotel is regarded to be one of those which is included in British travel awards. It
has attained a better hotel chain of the year by this particular award and is also known to be the
well-established brand. this hotel is made up of 50,000 rooms and it is operating in nearly 700

hotels. In United Kingdom this hotel is listed in top most hotels and is also brought about by
various amenities. There is a particular chain of hotels in United Kingdom that are being dealt
with the brand management as well as the deals in regard to customers. There are various
facilities that are added benefit for the organisation like that of online booking. this makes it
feasible for every customer to book their choices online. It is also recognised by different
organisations and is termed to be one of the well reputed organisations which acts as one of the
biggest strengths.
Weaknesses: The weaknesses that are pertaining with respect to the premier Inn hotel will
revolve around competitive atmosphere (Hole and Snehal, 2019). There is a great amount of
competition with regard to brand and United Kingdom is known to be a hub for competition. In
this entire competitive atmosphere Premier Inn will have to come up with strategies such that it
can stay strong and beat out competition with its strategies. The global presence is not show up
to the mark with respect to the organisation and therefore it will have to establish its internal in
such that it will also expand on a global basis.
Opportunities: The internal performance of the organisation is catered in such a way that
opportunities will fall apart or will come in the way in which organisation is moving. The
Premier Inn hotel is more towards gaining its presence and the opportunities are more towards
the strategic type that it is making with the other sectors. Their investment in digital marketing is
said to be one of the prominent aspects that can bring about a lot more opportunities that are
necessary for it to grow.
Threats: The threats will sometimes act as a barrier for the entire organisational performance
which is one of the major entity that the organisation will have to be ready to analyse. The
threats that are patterning in regard to premier Inn hotel will revolve around the private room
criteria where it will have to improve this nature such that it will not affect the entire
organisational performance (Davahli and et.al, 2020). Also the backpackers hostels are one of the
biggest threat for the organisation where it will have to divide it means by the strategies of
maintaining its own privacy.
PESTEL Analysis
The Pestel analysis will identify the external factors that are following in regard to the
organisation. The pestle analysis of the organisation premier Inn hotel is as follows:

Political: the political factors are mostly in regard to the government influence. There is a policy
of corporation tax which has been indicated in the organisation and an increase of VAT from
17.5% to 20% has been a negative impact in the organisational performance.
Economic factors: the organisation mostly dealt with financial crisis in the year 2008 and from
then it went into recession (Konovalova and et.al, 2018). There are also certain problems with
regard to the budget with which the hotel is being maintained and that has contributed for the
profit and loss accounts. The highest profit that fell in regard to the organisation with an past five
years was regarded as one of the best spectrum in this hotel economic value.
Social factors: since this organisation is more into providing benefits for the tourism and other
possible prospects therefore there is consideration for the holidays as well as the festivities in
regard to the organisation. During this period there are more number of customers that are
preparing the organisation.
Technological factors: the technological factors that are falling in regard to the organisation
include the significant amount of utilisation of computers as well as internet browsing and also
there is a feasibility of mobile applications that are specifically oriented with marketing.
Marketing is regarded to be one of the finest aspects of the organisation and that is being dealt by
various potential mechanism.
Environmental factors: environmental factors have a significant impact over the organisation
because it has a record of getting prone to flooding. The area in which the hotel is established is
mostly the one that is significantly impacted by the natural hazards (Franco and et.al, 2020).
Legal factors: there has been a change in the legislation that was more recently bearing
prioritised according to which the minimum pay for the wages has been increased to 12p as of
October 2013. There has been more compliances that fail in regard to the opportunities of health
and safety of employment in the organisation.
CONCLUSION
The report concludes up on highlighting the aspects of hospitality industry and have for the
organisation moving ahead with all the speculations that are in regard to the operational units.
Through this report one can easily understand the business atmosphere as well as the structure
that is oriented in the organisation. One may not be able to identify the choices that are in regard
to the organisation unless and until the structure is identified. The organisation premier Inn is

said to be following a functional organisational structure which is composed of various hierarchy
and that is brought about by different mechanism. The report also explains SWOT analysis and
PESTEL analysis of the major environmental tools that can detect the cause and features of the
organisation. Through SWOT analysis the internal atmosphere of the organisation is being
explain in the report and the pestle analysis the external atmosphere of the organisation is put
forth. Every component is brought about by extravagant measures that explains the formulations
on better terms.

REFERENCES
Books and journals
Bowen and Morosan, 2018. Beware hospitality industry: the robots are coming. Worldwide
Hospitality and Tourism Themes.
Davahli and et.al, 2020. The hospitality industry in the face of the COVID-19 pandemic: Current
topics and research methods. International Journal of Environmental Research and Public
Health. 17(20). p.7366.
Franco and et.al, 2020. Are you good enough? CSR, quality management and corporate financial
performance in the hospitality industry. International Journal of Hospitality Management.
88. p.102395.
Goryushkina and et.al, 2019. Theoretical Aspects of entrepreneurial Education for hospitality
Industry. Journal of Environmental Management & Tourism. 10(4 (36)). pp.835-841.
Hole and Snehal, 2019. Challenges and solutions to the development of the tourism and
hospitality industry in India. African Journal of Hospitality, Tourism and Leisure, 8(3),
pp.1-11.
Konovalova and et.al, 2018. Methodological approaches to development strategies for the
tourism and hospitality industry enterprises. International Journal of Engineering and
Technology (UAE). 7(4.38). pp.277-280.
Rhou and Singal, 2020. A review of the business case for CSR in the hospitality industry.
International Journal of Hospitality Management. 84. p.102330.
Online
Hospitality Management: [Online]. Available through: < What is Hospitality Management?
(ehl.edu) >
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