Understanding Business Organisation: Premier Inn Hotel Chain Case Study

This report analyzes the organisational structure of Premier Inn Hotel and conducts internal as well as external environmental analysis of the chosen hotel. It includes a SWOT analysis and PESTLE analysis of Premier Inn Hotel. The report concludes that the right organisational structure and clear communication between employees and managers enhance employee productivity and help the firm attain its objectives effectively. The report also highlights the impact of external factors on the hospitality industry.

Case Study Premier
Inn Hotel Chain

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
Organisational Structure of Premier Inn Hotel – 300 Words......................................................3
Business Environment Analysis of Premier Inn Hotel – 50 Words............................................4
SWOT analysis of Premier Inn 300 words: -..............................................................................4
Pestle analysis of Premier Inn (450 words).................................................................................5
CONCLUSION ...............................................................................................................................7
REFRENCES...................................................................................................................................8

INTRODUCTION
Business environment is basically the collection of all the internal as well as external
aspects such as employees, needs of customers along with their expectations, demands and
supplies, government, innovation in technology and many more. These aspects affect the
company functioning in both negative and positive manner (Bejtkovský, Rózsa and
Mulyaningsih, 2018). There are basically two types of business environment i.e., micro
environment and macro environment and both the environment develop different types of
opportunities for organisation. So it is very crucial for the company management to identify all
these factors which are comprises in the business environment by conducting the market
research. This not only help them in enjoying the competitive advantage over their rivals but also
helps in increasing their profitability. For the completion of this report Premier Inn Hotel is
chosen which is which belongs to the hospitality industry founded by Whitbread Plc. Within the
United Kingdom, the selected hotel is being considered as one of the largest hotel chain which
have around 800 hotels all across the globe. The aim of this report is analyse the organisational
structure of the premier Inn along with the internal as well as external environmental analysis of
the chosen hotel.
TASK
Organisational Structure of Premier Inn Hotel – 300 Words
Organizational structure is basically the structure of the company which give full
description about how the different activities of the firm are delegated towards attaining the set
goals. Organisational structure outline as well as direct the roles and responsibilities to the
employees within the company (Głodowska and Pera, 2019). The more organized the
organisational structure of the firm the more effectively they can operate their functions.
Tall Organisational Structure: -
The tall organisational structure is basically top down management style within which the
CEO or the chief executive of the company is the leader who develop the work culture, strategies
and goals and communicate all these to the middle management manager who are responsible for
implementing all the decision and the strategies with the help of lower level employees. The tall
structure is rigid in nature and mostly adopt by the large organisations. As the Premier Inn hotel
is the largest hotel chain all across the globe with more then 800 hotels worldwide. So, this

structure can be adopt by the respective company management by developing the different
division within the company which are control by managers. The top executives of the firm are
responsible for taking the crucial decisions and the middle manager implement the decision in
order to attain the set goals.
Benefits of tall organisational structure: -
 The key advantage of the tall organisational structure is that with help of this strong chain
of command form top to bottom can be effectively maintain.
 This strategy includes the narrow spans of control and the all the roles and
responsibilities of the effectively communicated.
Drawbacks of tall business structure: -
 This structure comprises of so many layers which make it more stiff and this result in
longer lines of communications (Hamilton and Webster, 2018).
 Many levels of hierarchy is included in this which can be expensive to run because of the
high wage cost.
Business Environment Analysis of Premier Inn Hotel – 50 Words
Business environment is basically the surrounding where the management of the
company operate their business functions. In context to the Premier Inn Hotel, the market
research is conducted by the company management which helps them in identify that which
business environment factor impact more.
SWOT analysis of Premier Inn 300 words: -
Strengths
 Company presence: - the respective
company has a well known image in
the hotel industry. They have more then
800 hotels all across the globe with
around 800000 rooms. They provide
their services to more then 5 million
guest in a month .
 Locations: - as the management of the
company provide their services near to
Weakness
 Hygiene issues: -this is being
considered as the most important
weakness if the firm. A case has been
filmed in which the house keeper of the
Premier Inn uses the same guest towels
to clean the whole bathrooms.
 Limited presence: -the limited
presence to globally is also the crucial
weakness for the company. In

the airports, great tourist attractions and
universities (Hrechyshkina and
Samakhavets, 2019). The company
management allow various consumer
segments so stay nearer to the locations
where they requited to be.
comparison to the giant of market the
firm has limited presence in the number
of nations.
Threat
 New market: - the first and the
foremost opportunity which are present
in front of the company is that they can
explore the new marketplaces. As the
successful entry of the respective
company in the Germany and Republic
of Ireland.
 Digital technologies: -in order to grow
their business in the competitive market
the respective company have the
opportunity to use the digital
marketing tools. With the help of these
tool they can promote the brand
effectively and efficiently.
Threat
 Legal Threat: - as the issue of hygiene,
result in decreasing the image of the
company. If they don't paid focus on
the laws then legal actions can be face
by them.
 Lock-downs: - as due to the lock-
downs because of the pandemic, the
hospitality industry has to face lots of
issues (Khalatur and et. al., 2019). If
any similar conditions arises in the
future then it turns into the great
challenge for the Premier Inn Hotel.
Pestle analysis of Premier Inn (450 words)
The pestle analysis is being considered as the most important tool which give assistance
to the company management in evaluating the outside business environment which are not in the
control of the management. Through this model the Premier Inn effectively evaluate the external
factors which has a great impact on the functioning of the company. Its become crucial for the
respective company to analyse the external environment to face the uncertain challenge.

 Political factors: - as the company has a well known image in the market which give
assistance to them in increase their potential customer base. After the arisen of Covid 19
pandemic the UK government introduce the “Eat out to help out” policy. This result in
that, this develop the positive opportunity for selected hotel.
 Economic factors: - this factor included the interest rate, GDP of the nation,
employment rate, inflation rate and many more. In relation to the Premier Inn Hotel, an
immense negative effect has been seen on the economic condition of the UK, the GDP of
the nation has decreases at a very high rate (Möller, Nenonen and Storbacka, 2020).
Along with this people may have to loss their jobs which result in the decreasing the
disposable income of the individual, its hard fore them to spend on travel that affect the
Premier Inn sales.
 Social factors: this factor entail the change in the preferences and the behaviour of the
consumer and many more. As due to the pandemic, a drastic change has been seen in the
behaviour of the individual they prefer the private accommodations over hotels. This
result in that the respective company have to loose a huge number of customer base.
Clients only prefer those places which are fully sanitize and all the rules of COVID is
followed. The Premier Inn management sanitize all their rooms before arrival and after
departure of the guest and restrict the employees to wear the mask within the hotel
premises. .
 Technological factors: - this factor entails the development of the technology within the
nation as well as the organization. In relation to the premier Inn Hotel, the use of 5 G
technology result in increases the booking and the additional online services to customers
(Nikitina and Lapiņa, 2019). The online interactions of the guest result in increasing the
company preference. Along with this, robotic room services, online payment transactions,
digital supply chain and other enhance the company brand image in the market.
 Legal factors: -within the hospitality industry of UK there are different variants of the
legal environment which firm has to face in their daily operations. It is very important for
the manager of the Premier Inn hotel to obey the food safety laws, privacy law, data
security regulation and many more. As the chosen company use advance technology
within their business environment which make them abide by with GDPR. Along with
this, the firm also have to follow the all food and safety measures.

 Environmental factors: -This factor is related to the rules and regulations which are
made by the government of the nation in order to protect the climate. In relation to the
Premier Inn, highly advance technology is used by the company management, which give
assistance to them to utilize all the resources in a optimized manner and reduces the
pressure on the available resources (Vlados and Chatzinikolaou, 2019). The use of
environmental friendly solar energy lights result in attracting the visitor.
CONCLUSION
From the above report it has been concluded that in order to perform all the business
functions in a very effective and efficient manner the management of the company must have to
follow the right organisational structure. The clear communication between the employees and
managers along with the defined roles and responsibilities result in enhancing the employees
productivity. This result in that the firm can attain their objectives in a very effective manner.
This report concluded that by implementing the SWOT analysis the firm can effectively identify
their strong and weak points and what opportunities are available in front of them to grow in the
competitive market. After this pestle analysis has been concluded which assist in analysing the
impact of external factor on the hospitality industry.

REFRENCES
Books and Journal
Bejtkovský, J., Rózsa, Z. and Mulyaningsih, H.D., 2018. A phenomenon of digitalization and E-
recruitment in business environment. Polish Journal of Management Studies, 18.
Głodowska, A. and Pera, B., 2019. On the relationship between economic integration, business
environment and real convergence: The experience of the CEE
countries. Economies, 7(2), p.54.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Hrechyshkina, O. and Samakhavets, M., 2019. Changing business environment in
Belarus. Journal of Geography, Politics and Society, 9(1), pp.1-11.
Khalatur, S and et. al., 2019. Financial instruments and innovations in business environment:
European countries and Ukraine. Investment Management & Financial
Innovations, 16(3), p.275.
Möller, K., Nenonen, S. and Storbacka, K., 2020. Networks, ecosystems, fields, market systems?
Making sense of the business environment. Industrial Marketing Management, 90,
pp.380-399.
Nikitina, T. and Lapiņa, I., 2019. Creating and managing knowledge towards managerial
competence development in contemporary business environment. Knowledge
Management Research & Practice, 17(1), pp.96-107.
Vlados, C. and Chatzinikolaou, D., 2019. Methodological redirections for an evolutionary
approach of the external business environment. J. Mgmt. & Sustainability, 9, p.25.