Understanding Business Organisation and Environment: A Case Study of Premier Inn Hotel

This report provides an analysis of the organisational structure of Premier Inn Hotel, including business environment analysis, SWOT analysis, and PESTLE analysis. It also discusses the concept of business organisation and structure, and how Premier Inn Hotel follows a tall organisational structure.

Understanding Business
Organisation

Contents
INTRODUCTION ..........................................................................................................................1
MAIN BODY ..................................................................................................................................1
Organisation structure of Premier Inn Hotel................................................................................1
Business Environment Analysis of Premier Inn Hotel................................................................2
CONCLUSION ...............................................................................................................................4
REFERENCES................................................................................................................................6

INTRODUCTION
Business organisation has been termed as a firm established for the intention of carrying
on commercial organization. It includes many activities, functions, processes and policies which
work together in order provide products and services to the customers according to their demand
for maximum profit. For effective and smooth functioning, every organisation follow proper
structure in order to get clear direction about duty of every person(Băeşu and Bejinaru, 2020).
Organisation structure refers to the system which defines how certain activities are oriented to
accomplish the pre determined goals of a business. It clearly outlines the role, duty, responsibility
as well as authority of a person as per their job role in an organisation to work smoothly. There
are many type of organisation structure such as tall structure, flat structure, functional structure
and many more which an organisation chose as per their nature, size and requirement. To define
the concept of business organisation and structure the selected company is Premier Inn Hotel
which was founded in 1987. It is largest hospitality service hotel chain which have across 800
hotels in UK.
The report covers the analysis of organisational structure of Premier Inn Hotel. Further, it
covers business environment analysis, SWOT analysis, PESTLE analysis of Premier Inn hotel.
MAIN BODY
Organisation structure of Premier Inn Hotel
Premier Inn Hotel followed and adopted tall organisational structure in their business in
order to conduct huge activities in systematic manner (Belyaeva, 2018). Tall organisational
structure is formed in vertical form in which there are many layers of management and have
multiple leaders in each layer to conduct smooth functioning in large organisation. Premier Inn
Hotel operates their business operation at large scale and has many branch, department and
functions for this they follow tall organisational structure. By this they get clear insight about the
functioning and duty of every department which helps them to reduce cost, wastage and time to
provide best hospitality services to targeted customers. It is an effective plan of action form' by
top management of Premier Inn Hotel to set a system in order to identify activities, power and
responsibility of every department (Berman and Dalzell-Payne, 2018).

This structure defines each dimension of Premier Inn Hotel operations form hotel
reception to human resources management to room services in order to increase the experience of
guests. The benefits of effective organisational structure are it helps them to increase productivity
and quality of their services which minimise their operation cost of each department as well as
maximise their profitability (Halbert and Ingulli, 2020). It also helps them for effective flow of
communication and information in each department form top to bottom so every one get clear
data for their systematic working. It helps top management of Premier Inn Hotel to define clear
goals of each department by conducting weekly meeting in order to determine the area of
weakness for development. The limitation of tall structure is it is long process to share
information as it flow form top to bottom which leads to delay in working and increase cost of
hotel operations. There is also huge chances to loss the valuable data due to many layers of
management like if customer service department want to share information to reception
department they they have first share with human resources department.
Business Environment Analysis of Premier Inn Hotel
Business environment refers to the sum of micro and macro factors which has great
impact on the operations of an organisation. These factors are competitors, customers,
stakeholders, suppliers, market condition, technology, government policies and many more. It
helps Premier Inn Hotel to determine their weakness and threats to make effective strategy to
overcome as well as strengths and opportunities in order to optimum utilisation of resources for
future development and increase productivity. SWOT analysis in context to Premier Inn Hotel to
get better understanding about business environment are as follows-
Strength- The biggest strength of Premier Inn Hotel is they operate their business at
large scale for so long and have strong brand value which strengthen their market position or
customers base. During COVID 19, the organisation adopt many changes in their working or
services such as they adopt automation face scanning machine, online booking, ordering in order
to reduce physical contract to prevent customers from spread of virus. They use PP kits,
sanitizers, mask and maintain social distance in their hotel to follow guidelines strictly (Kwon
and Cho, 2020).
Weakness- The biggest weakness of Premier Inn Hotel is it failed to maintain their
customers base and profitability rate during COVID 19. They also faced financial loss due to cut
down in their room booking and close down their hotels for couple of month because of

lockdown as a result of this many talented employees leave their job. They also loose many
beneficial future opportunities and stop their expansion program due to shortage of funds which
leads to decrease in their market share (Liu and Yang, 2019).
Opportunity- There is huge opportunity for Premier Inn Hotel to grab big market share
and customer base by provide innovative, better quality and hygienic services to target customers
after COVID pandemic. They can also attract many investors by making effective plan and
innovative strategy to increase their overall effectiveness in market. They can also use various
advance technology like online booking and payment services to reduce physical contract, cost
and large workforce in order to add more value to customers.
Threat- After COVID, people are more conscious about health, hygiene and cleanness
due to fear of contracting a virus while visiting a place which are biggest challenge for Premier
Inn Hotel to maintain their services as per customers expectations. Many innovative and hygienic
services of competitors can increase the competition level among market for this they need to
give training to their staff to make changes in their working style as per recent trends to survive
in dynamic market. Many another diseases and virus are also threat for company which affect
directly their growth and profitability (Nam and Bao Tram, 2021).
The PESTLE Analysis in context to Premier Inn Hotel are shown below-
Political- In UK, government provide financial helps to hospitality and tourism sector in
order to promote tourism for development of economy. This factor is favourable for Premier Inn
Hotel as they can take support form government in terms of fund to bring innovative services for
customers to increase their revenue. During COVID, the government has imposed many
restriction related business practices, hygiene and many more which are unfavourable for Premier
Inn Hotel as they have to change their business policy which incurred huge cost.
Economic-In UK, there are large number of suppliers and banks also provide loans to
company at low rate. This factor is favourable for Premier Inn Hotel as they take loan from banks
to adopt changes and install advance technology in their organisation. The rate of inflation is
increased due to shortage of production in COVID which increase the rate of raw materials and
spending level has been decreased which affect the sales or revenue of Premier Inn Hotel
(Agwu, 2018).
Social- In UK, after COVID there is huge change in customer demands, needs,
preferences and expectation which is unfavourable for Premier Inn Hotel as they give more focus

on their performances and make changes in their strategy to improve their hygiene or quality of
services to satisfied their needs.
Technological- In UK, there is huge number of new and advance technology which bring
favourable changes in any organisation. This factor is favourable for Premier Inn Hotel as they
install many advance technology automatic temperature checking machine, face lock scanner
machine to reduce physical contact and prevent customer from infection which attract large
number of customers.
Legal- In UK, there is strict rules and regulation regarding employment, consumer rights,
environment law for pollution and many more. This factor is unfavourable for Premier Inn Hotel
as they have to gave salary during COVID 19 without any operations or working for their
survival (Cravo and Piza, 2019).
Environmental- The climate condition and weather of UK are dynamic and have
negative impact on seasonable business. During COVID the weather of UK is not good which
leads to increase in number of COVID cases which affect the operations and profitability of
Premier Inn Hotel as they have to closed their organisation for long period of time (Buckley,
2019).
CONCLUSION
It has been concluded from the above presented information that business organisation
consists many activities, function and system like business policies, organisation structure,
organisation culture, several departments, working methods and many more. Large entity follows
tall structure which vertically in form and have many layers of management which clearly
outlines the roles, duty of every individual for systematic working. This structure helps them to
make better coordination among whole organisation as well as managers of every level have
responsibility and power to guide or control the subordinates of their level in order to achieve
target on time. They can also determine the impact of various internal and external factor on their
business operations or growth by using SWOT analysis. It is an effective tools which helps the
company to identify their internal strength which they can use for development and weaknesses
for which they need to give more focus. Addition to this external opportunities which they can
grab for increase their market share as well as threat form that they need to be careful. They can
also use PESTLE analysis to determine the positive along with negative impact of various macro
environmental factors which effect their productivity as well as profitability.

REFERENCES
Books and journals
Agwu, M.E., 2018. Analysis of the impact of strategic management on the business performance
of SMEs in Nigeria. Academy of Strategic Management Journal. 17(1). pp.1-20.
Băeşu, C. and Bejinaru, R., 2020, July. Knowledge management strategies for leadership in the
digital business environment. In Proceedings of the International Conference on Business
Excellence (Vol. 14, No. 1, pp. 646-656).
Belyaeva, Z., 2018. Business environment challenges and trends for contemporary SMEs in
Europe. In The sustainable marketing concept in European SMEs. Emerald Publishing
Limited.
Berman, S. and Dalzell-Payne, P., 2018. The interaction of strategy and technology in an era of
business re-invention. Strategy & Leadership.
Buckley, P., 2019. International business in a VUCA world: The changing role of states and
firms. Emerald Group Publishing.
Cravo, T.A. and Piza, C., 2019. The impact of business-support services on firm performance: a
meta-analysis. Small Business Economics. 53(3). pp.753-770.
Halbert, T. and Ingulli, E., 2020. Law and ethics in the business environment. Cengage Learning.
Kwon, K. and Cho, D., 2020. Developing trainers for a changing business environment: The role
of informal learning in career development. Journal of Career Development. 47(3).
pp.310-327.
Liu, H.M. and Yang, H.F., 2019. Managing network resource and organizational capabilities to
create competitive advantage for SMEs in a volatile environment. Journal of Small
Business Management. 57. pp.155-171.
Nam, V.H. and Bao Tram, H., 2021. Business environment and innovation persistence: The case
of small-and medium-sized enterprises in Vietnam. Economics of Innovation and New
Technology. 30(3). pp.239-261.