Understanding Business Organisation - Premier Inn Hotel Case Study

This report provides an analysis of the organisational structure, business environment, SWOT and Pestle analysis of Premier Inn Hotel. It also discusses the importance of analysing internal and external factors for smooth business operations.

Understanding
Business Organisation

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Organisational structure of the Premier inn hotel.......................................................................3
Business environment analysis of the Premier Inn hotel............................................................4
SWOT analysis of Premier Inn hotel..........................................................................................4
Pestle analysis of the Premier inn300.........................................................................................5
CONCLUSION................................................................................................................................7
REFERENCES:...............................................................................................................................8
Books and Journals.....................................................................................................................8

INTRODUCTION
Business organisation can be defined as the entitity that is formed in order to carry out the
activities of the business through which they can generate profits in the market. It is very
important for the business organisation to carry out their work under the legal entity which
facilitate them to do their operations smoothly (Ahmad and Murray, 2019). For this report,
Premier Inn hotel has been undertaken into the account. It is the famous hotel chain that belongs
to the Whitbread plc which is situated in the boundary of the UK. In this report there will be the
discussion on the organisational structure of the organisation. Along with that SWOT and pestle
analysis will also be taken under into the account. There will be the evaluation of the business
environment of the taken organisation.
MAIN BODY
Organisational structure of the Premier inn hotel
Organisational structure can be defined as that how the activities such as coordination,
leadership, management, distribution of the task are carried out in a way through which the
company can achieve their goal and target in the market. Various companies and the business
organisation select the organisational structure depends upon the size of their business and on
which scale they are carrying out the activities of the production. There are mainly four types of
organisational structure that the company uses and that are functional top down, flat, divisional
and matrix. In relation to the Premier inn hotel they are using flat organisational structure in
their hospitality segment. In this type of organisational structure there are very few department
between the upper management and the employees through which the decision making process
becomes more faster and efficient (Rüsen, Kleve and von Schlippe, 2021). The main of the
organisation to for adopting this structure is that increasing the engagement of the employees
with the decision making and which facilitate the organisation to generate new ideas and plans
that they can carry out in the future. There are several benefit that organisation gets from this
structure as they become able to elevates the level of the responsibilities in the employees and
along with that this facilitate the Premier inn hotel to enhance their communication process. One
of the main benefit that the company gets is that the able to remove the cost of the middle
management. Along with the benefits there are some drawbacks present for this structure is that
sometimes employees remains with their problems as there are no immediate upper level of

department that can helps them to solve their problem at the workplace. Another drawback that
Premier inn hotel faces is that they sometimes lack of effective management which can helps the
company to divide the work of the company into the smaller groups.
Business environment analysis of the Premier Inn hotel
Business environment can be defined as all the factors whether they are internal or
external that affect the activities of the business at the workplace. There are several factors such
as government, innovation, market trends etc. (Timi, Tamunosiki-Amadi and Tonbra,
2022)Premier Inn hotel is one of the established hotel in the UK and the operations of the
organisation is highly dependent upon these factors. These factors facilitate the organisation to
earn more revenues in the future.
SWOT analysis of Premier Inn hotel
Strengths
 One of the main strength of the
organisation is that they have strong
presence in the market of the UK as
they have more than approximately
eight hundred hotels in the UK. They
serve effective hospitality services to
their customer through which they able
to establish as a strong hotel chain.
 Another main point of the organisation
is that they have strong brand image in
the market of the UK. Because they
have amenities for all age groups in
their hotels.
Weaknesses
 Premier inn hotel has present in the
limited countries and as compared to
their competitors they are present on a
large scale in the global market. It
come out to be as the main weakness
for the organisation as they serves
effectively hospitality services to their
customers but are not able to make their
presence across the globe.
 For some time the management
department of the organisation fails to
maintain the hygiene level in the hotels.
This comes out to be the biggest
weaknesses for the organisation as it
affects the brand image of the
company.

Opportunities
 One of the biggest opportunity that the
Premier inn hotel can take is that they
can expand in the global market
(Zhang, 2020). They are providing
effectively hospitality services in the
market from so many years and have
strong brand image. This facilitate the
organisation to increase their operations
in the several country.
 Another opportunities is that they have
can expand the hospitality services in
the country of Germany. It is one of the
most visited countries in the Europe.
Threats
 The main threat the organisation faces
is of the competitors. There faces huge
competition in the market of the UK
which affects the profitability of the
company.
 Another threat the organisation has
faced is of the Lock down. Due to the
time of the pandemic government
banned all the hospitality services as
well as the other segment. The
organisation has faced so many
challenges in the time of the Lock
down.
Pestle analysis of the Premier inn
Pestle analysis can be defined as the analysis that are undertaken by the organisation and
the business firms through which they can analyse the internal as well as external factors of the
company. These factors affects the operations of the business to a great extent. Pestle analysis is
mentioned below in relation to the Premier Inn hotel:
Political factors
This factor of the analysis include various components like corporate tax, government
actions and policies that are made to regulate the activities of the business (Runciman, 2022) . In
relation to the Premier inn hotel they are able to smoothly carry out the activities in the market as
there are political stability in the market of the UK.
Economic factors
This factor can be defined as related to the monetary terms and include various
components in it such as interest rates, inflation, exchange rate etc. In relation to the Premier inn
hotel they provide employment opportunities to each and every individual and also facilitate the
country in contributing the major part in the GDP.
Social factors

This factors of the analysis is the most crucial part that includes various components such
as consumer trends, demographics considerations etc. Management department of the company
focuses on to fulfil the needs and wants of the society by analysing what the customers wants.
They provide the effectively hospitality services according to the customer demands.
Technological factors
This factors means that the uses of the new techniques of production and technology in
the workplace in order to produce more effective products and services in the market
(Bhanushali, 2018). This factor includes automation, technology infrastructure, research and
development department etc. Premier inn hotel used effective and updated techniques of
production through which they can serve effective services to their customers.
Environmental factors
This factor means that the organisation should analyse the changing environment of the
different place through which they can carry out the business activities smoothly. This include
several components like climate changes, weather conditions etc. In relation to the Premier inn
they critically analyses the environment of the new place in which they expand their hospitality
services.
Legal factors
This factor means that the organisation should follow all the laws and regulations that
have been made by the government through which they can smoothly carry out the operations in
an affective manner (Loft, 2020). Premier inn hotel treats all employees equally and ensures that
they follow all the laws and legislations that has been made by the Government of the UK. They
have legal license in order to run the activities of hospitality services.

CONCLUSION
From the above report it has been analysed that it is very important for the business
organisations and the companies to analyse the internal as well as the external factors through
which they can smoothly carry out the operations. In the above report, organisational structure of
the organisation has been undertaken. Along with that business environment analysis of the
company have also been analysed. After that SWOT and Pestle analysis of the organisation have
been evaluated.
Ahmad, M.U. and Murray, J., 2019. Understanding the connect between digitalisation,
sustainability and performance of an organisation. International Journal of Business Excellence,
17(1), pp.83-96.

REFERENCES:
Books and Journals
Ahmad, M.U. and Murray, J., 2019. Understanding the connect between digitalisation,
sustainability and performance of an organisation. International Journal of Business
Excellence, 17(1), pp.83-96.
Bhanushali, M., 2018. TLP Understanding Theory, Structure and Design of Organisation 2017-
2018.
Loft, A., 2020. Understanding accounting in its social and historical context: the case of cost
accounting in Britain, 1914-1925. Routledge.
Runciman, B., 2022. IT in the organisation. ITNOW, 64(1), pp.24-25.
Rüsen, T.A., Kleve, H. and von Schlippe, A., 2021. The Dynastic Business Family as Family,
Organisation and Network. In Managing Business Family Dynasties (pp. 7-18).
Springer, Cham.
Timi, E.M., Tamunosiki-Amadi, D.J. and Tonbra, B., 2022. Management Theories and the
Nigerian Work Organisation. International Journal of Current Business and Social
Sciences, 8(1), pp.01-16.
Zhang, C., 2020. The political economy of China's business organisation laws and its
implications for legal transplantation: Evidence from the venture capital industry.
Australian Journal of Asian Law, 21(1), pp.113-130.