Premier Inn Hotel Chain: Organizational Structure and Business Environment Analysis

This case study analyzes the organizational structure and business environment of Premier Inn Hotel Chain. It discusses the hierarchical organizational structure followed by the hotel and performs SWOT and PESTLE analysis to understand the internal and external factors affecting the business. The study concludes that the business environment has a significant impact on the business performance and operations of the organization.

Case Study- Premier
Inn Hotel Chain
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Table of content
Table of Contents
Introduction......................................................................................................................................3
Organisational Structure of Premier Inn Hotel................................................................................3
Business Environment Analysis in context of Premier Inn hotel....................................................4
SWOT ANALYSIS................................................................................................................4
PESTLE ANALYSIS.............................................................................................................5
Conclusion ......................................................................................................................................6
REFERENCES................................................................................................................................8
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Introduction
Premier Inn hotel is one of the largest hotel chain of the United Kingdom. Premier inn is
a UK based hotel chain that was established in the year 1987. The hotel chain was introduced by
Whit bread with the name Travel Inn. The hotel chain was launched in order to compete with the
already existing hospitality businesses like Travelodge and Ibis. The merger of Premier Lodge
and Travel Inn took place in the year 2004 that led to the establishment of Premier Travel Inn.
The headquarters of Premier Travel Inn is established at Dunstable, England. The hotel chain
comprises of more than 800 hotels providing 72000 rooms worldwide. Alison Britain is the CEO
of Premier travel Inn at present. The report consists of a study of business environment and
Organizational structure in context to Premier Travel Inn (Wood, 2017).
Organisational Structure of Premier Inn Hotel
Organisational structure is referred to the structure that is followed by the organisation
under which the rules and regulations are formed and communicated with the rest of the
employees of the organisation. The organisational structure that is followed by Hotel Premier Inn
is hierarchical organisational structure. Under hierarchical organisation structure the goals and
objectives of the organisation are identified and accordingly the various departments are
conveyed the information. The goals and objectives of each department in the organisation are
well defined in an effective and efficient manner. The organisational structure of Premier Inn
Hotel is discussed below-
 Executive level- The Hotel premier inn comprises of the top most level of the Hotel
Premier Inn that is known as executive level. The executive level of the organisation can
be referred to the hotel owner of the organisation. Usually, the executive level comprises
of the job role of owner as well as general manager but as Premier inn Hotel is a large
organisation the roles are held by two different people in the organisation. The main aim
of executive level is to formulate the policies and standards of the organisation that are to
be conveyed to other employees (Askeland and et.al., 2020).
 Assistant manager under General manager- The Assistant manager of Premier Inn
hotel is to work as per the command of the General Manager. The tasks performed by the
Assistant manager is usually to assist and support the general manager of the Premier Inn
hotel. The assistant manager act as the mediator between the general manager and the
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departmental manager. The assistant manager takes orders from general Manager and
communicates them to the departmental managers that further helps in enhancement of
organisational performance.
 Middle level manager- The middle level managers are also known as the departmental
managers. The middle level managers are of different job roles at Hotel Premier Inn. The
various job roles at Premier Inn hotel are Finance manager, Human resource manager,
food manager, beverage manager, front desk manager, etc. The duties and responsibilities
of each function are performed in order to accomplish the organisational objectives
(Astrachan And et.al., 2020).
 Operational staff- The operational staff is basically the staff that faces the guests at the
organisation in order to accommodate and serve them. The operational staff also consists
of various functional units like beverages, front desk, housekeeping, etc. and have various
employees as chefs, porters, dishwashers, etc.
Business Environment Analysis in context of Premier Inn hotel
Business environment basically comprises of two words namely business and
environment. Business refers to a commercial activity that is performed with an aim of earning
profits and environment is referred to the business surroundings that have an impact upon the
business operations of the organisation. The business environment is basically of two types
namely internal business environment and external business environment. It is considered that
impact of internal business environment can be controlled by the organisation whereas the
impact of external environment can not be controlled by the organisation. The analysis of
business environment of Premier Inn hotel can be done with the helps of SWOT analysis as well
as PESTLE analysis (Howard and Ulferts, 2020).
SWOT ANALYSIS
To understand and analyse the detailed analysis of internal environment one of the most
effective model use by Premier Inn hotel is SWOT. The aim of this model is to examine the
organisation internal strength and weakness. Along with this it also helps for explore new
opportunities and threats that are related with upcoming future perspectives of business. SWOT
analysis of Premier Inn Hotel is mention as below:
 Strength Weakness
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 Occupancy Rate is identified as one of
the strong advantage or strength and it
is engaged through offering effective
services to business.
 Strong presence is other advantage of
respective hotel as management offer
approximately their accommodation
services among each geographical area
(Ibenskas and Bunea, 2021).
 Limited global presence is concerned
as a weak point and this is because
most of the Premier Inn hotel exists
only among the UK premises.
 Issue related with hygiene one of the
major issue published by the
undercover channel states that towels
offered to guest by Premier hotel are
not clean properly and it impact on
company practices are impacted.
Opportunities
 There are various opportunities for
Premier Inn through the mode of tie ups
and merger.
 The hotel organisation can consider
décor as an opportunity to attract
customers towards the business.
 The hotel organisation can look upon to
invest in the digitalization in order to
expand its customer reach.
Threats
 The rising rate of competitors in the
hospitality market is as a threat.
 The impact of pandemics like COVID-
19 is a threat to the business.
 The rapid increase in the backpacker
hostels in the nearby areas can cut
down the revenue opportunities for
Premier Inn hotel.
It can be concluded from the above analysis that the organisation can use its strengths and
opportunities to enhance its position in the market. The threats and weaknesses need to be
overcome by adopting various measures for growth in the market.
PESTLE ANALYSIS
PESTLE Analysis is referred to an analysis that focuses upon the various external factors
that have an impact over the business. The PESTLE analysis comprises of various factors like
Political, Economic, social, technological, legal and environmental factors. The PESTLE
analysis of Premier Inn Hotel has been performed below.
 Political factors: The political factors that have an impact over the business operations of
Premier Inn are due to the various policies and intervention of the government(MacIndoe,
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2021). The various procedures can be the taxation policies such as amendments in the
corporate taxes, Value added taxes etc. The taxation policies have an impact over the
business profits of Premier Inn hotel.
 Economic factors: The economic factors basically comprises of the economical factors
such as inflation rates, GDP, demand and supply. The inflation rate and GDP reflect the
expenditure pattern of the area. The recent example of the pandemic can be considered
wherein COVID-19 has impacted the purchasing power of the population and thus the
business performance has been impacted of Premier Inn hotel.
 Social factors: Social factors are referred to the taste and preferences of the society that
has an impact over the business. The businesses need to have a track of the demands and
preferences that have been in trend nearly. As the Premier Inn hotel is a part of
hospitality industry and has high dependency over the internal and domestic tourists, it
needs to keep itself well updated in order to attract customers towards their business.
 Technological factors: The technological factors have a huge impact over the business
operations of a hospitality organisation. The advancements of the technology over the
business such as use of various social media accounts, internet accessibility has
facilitated the organisation to have a wider reach and expand customer base.
 Legal factors: The legal factors have a huge impact over the business operations as the
organisation needs to comply with all the legal issues of the business. Premier Inn hotel
had to comply with all the COVID-19 Protocols in order to operate its business
successfully. The extended services had increased the business cost which had an impact
upon the profits of Premier Inn hotel.
 Environmental factors: The environmental factors are also mandatory to keep in mind
while operating the business as the population is getting more sensitive towards the
environment. The concern has been increasing in aspect of sustaining the global
environment and thus premier Inn hotel needs to look upon various tactic to decrease
wastage (Tomičić Furjan, Tomičić-Pupek and Pihir, 2020).
Conclusion
It can be concluded that environment of a business has a major impact over the business
performance and operations. The study highlights upon the concept of business environment and
the organisational structure in aspect of the primary organisation. The study has identified the
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hierarchical organisational structure that is followed by the hospitality organisation. The study
further analyses the internal and external environment of the business organisation with the help
of SWOT analysis and PESTLE analysis. The analysis highlights various factors that have an
impact over the business performance of the organisation.
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REFERENCES
Books and Journals
Askeland, H. and et.al., 2020. Understanding values work: Institutional perspectives in
organizations and leadership (p. 296). Springer Nature.
Astrachan, J. H. And et.al., 2020. Values, spirituality and religion: Family business and the roots
of sustainable ethical behavior. Journal of Business Ethics, 163(4), pp.637-645.
Howard, T. L. and Ulferts, G. W., 2020. The Changing Value of Diversity in
Organizations. Journal of Business Diversity, 20(2).
Ibenskas, R. and Bunea, A., 2021. Legislators, organizations and ties: Understanding interest
group recognition in the European Parliament. European Journal of Political
Research, 60(3), pp.560-582.
MacIndoe, H., 2021. Understanding Foundation Philanthropy to Human Service Organizations:
Funding Stratification in an Urban Grants Economy. Human Service Organizations:
Management, Leadership & Governance, pp.1-22.
Tomičić Furjan, M., Tomičić-Pupek, K. and Pihir, I., 2020. Understanding Digital
Transformation Initiatives: Case Studies Analysis. Business Systems Research:
International journal of the Society for Advancing Innovation and Research in
Economy, 11(1), pp.125-141.
Wood, R.C., 2017. 4 Hotel accommodation. Hotel Accommodation Management, p.46.
Askeland and et.al., 2020 Astrachan And et.al., 2020 Howard and Ulferts, 2020 Ibenskas and
Bunea, 2021 MacIndoe, 2021 Tomičić Furjan, Tomičić-Pupek and Pihir, 2020 Wood,
2017.
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