Premier Inn Hotel Chain: Understanding Business Organisation

Understanding
Business Organisation

Table of Contents
1. INTRODUCTION.......................................................................................................................3
2. Organisational Structure of Premier Inn......................................................................................3
3. Business Environment Analysis of Premier Inn Hotel................................................................4
3.1 SWOT Analysis................................................................................................................4
3.1.1 Strengths...................................................................................................................4
3.1.2 Weaknesses...............................................................................................................5
3.1.3 Opportunities............................................................................................................5
3.1.4 Threats .....................................................................................................................5
3.2 PESTLE Analysis.............................................................................................................5
3.2.1 Political Factors........................................................................................................6
3.2.2 Economic Factors.....................................................................................................6
3.2.3 Social Factors............................................................................................................6
3.2.4 Technological Factors...............................................................................................6
3.2.5 Legal Factors............................................................................................................7
3.2.6 Environmental Factors..............................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

1. INTRODUCTION
Business organisation assist in determining companies' structure enforced by them in
order to achieve desired targets or goals. Managing and organising people of several divisions
within an organisation helps it in operating business effectively (Vahlne and Jonsson, 2017). In
this report, the focus has been paid on structure implemented by Premier Inn Hotel to operate
management activities efficiently. Furthermore, this report covers business environment of the
hotel and how it has been negatively or positively influenced by COVID-19 by using SWOT and
PESTLE analysis. Premier Inn Hotel is one of the largest hotel chain in UK and was founded in
year 1987 by Whitbread. It has its headquarters in Dunstable, UK and has around 800 hotels with
72,000 rooms.
2. Organisational Structure of Premier Inn
Organisational structure is a technique that helps in managing activities which involves
roles, responsibilities and regulations in companies to accomplish certain goals. It also assist in
discovering how particular details flows between the various levels within an organisation
(Mukherjee, 2020). In context of Premier Inn Hotel, it implements hierarchical organisational
structure which connects different levels of management within hotel. This structure consist of
direct chain of command where top level management takes all the major decisions regarding
hotel which are then passed down to adjunct level of management.
Benefits of hierarchical organisational structure
 This organisational structure provides a clear and controlling management which helps in
managing employees properly.
 It also creates a clear format of role and responsibilities among employees.
 As there is a limited span of control which means that every manager or leader has a
small group of employees under their supervision that allows mentors to closely oversee
their workers.
 It provides more opportunities for growth and promotions which ultimately boost
motivation in employee towards their work.
 It gives opportunities to employees to learn management style closely from their mentor
and senior managers groom them for further profitable possibilities in career (Kostera
and Harding, 2021).