Understanding Business Organization: Premier Inn Hotel Case Study

This report provides an analysis of the organization structure, business environment, SWOT and PESTEL analysis of Premier Inn Hotel. It also discusses the suitability of flat organizational structure for Premier Inn Hotel.

Understanding
Business Organization

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
Organization structure of Premier Inn Hotel...............................................................................3
Business environment analysis of Premier Inn Hotel.................................................................4
SWOT Analysis..........................................................................................................................4
PESTEL Analysis........................................................................................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
The concept of business organization is one type of entity where number of individual
persons are getting engaged in the different types of commercial and other actives of firm. Due
to the effective use of various organizational functions basic and other requirements of the
existing and new customers are fulfilled in time. In aspect of organization management always
run their departmental and operational activities in systematic way. It leads to sustain their
goodwill and profit margin in long term (Boje and Lundholt, 2018). Here the chosen
organization is Premier Inn Hotel and this is a largest British Hotel chain across the world. The
company was established in 1987 and the headquarter of this company is situated in United
Kingdom. The report will cover organization structure of Premier Inn, business environment
analysis of Premier Inn Hotel, SWOT and PESTEL analysis. This company also refer to private
limited organization which belongs to the category of hospitality industry. The Premier Inn Hotel
have around 73,000 rooms and 900 restaurants. In various locations city centres, airports etc. also
run their activities in effective manner. Due to providing best quality service to all customer
segments within hotel, the positive relationship between company and consumers are easily
sustained in long term.
TASK
Organization structure of Premier Inn Hotel
The Premier Inn Hotel have their own strong infrastructure and well established brand
image in UK and between public effectively. According to the current market scenario this
company is considered as the fastest growth rate in hotel sector in UK with approximately 590
hotels. In respect of business the roles and responsibilities for top level management such as
chief executive officers, board of directors and chairmen are highly cleared. The obligations and
responsibilities regarding chairman and chief executive officer of company have been accepted
by board of members. The structure which is followed by this organization is flat organizational
structure and in this structure various types of departments are contribute their efforts for run
their functions smoothly. With help of this structure employees have the option for expressing
their opinions in the process of decision making. In context to Premier Inn Hotel all types of
candidates are involved in the part of management The above mentioned company have lengthy
chain of units which is large and also have strong team of management. In respect of huge length

organization structure, very less candidates are participated in the functions of management. Due
to the effective use of this structure seniors officers of firm are able to manage or monitor their
employees in system and effective way. In respect of flat organization structure sense of duties
and responsibilities has been allowed to their workers. This structure also supports the employees
for handling any type of complicated task smoothly or systematically within organization. In
addition to this respect if facilitated by every employees between each other at higher rate for
long time. If the company wants to maintaining focus on their innovation and technology then
they must utilize flat organizational structure effectively which is highly desirable to them. In
respect of Premier Inn Hotel the management of this company have the ability and potentiality
for following the part of flat organizational structure. With the effective use of this type of
organizational structure employees are able employees are increase reputation and performance
of company at maximum level.
Business environment analysis of Premier Inn Hotel
Business environment is refer to various environmental situations where workers of these
company perform their job responsible and duties in effective manner (Boulbaba, 2018). In
respect to the functions of Premier Inn Hotel faced great effect during the time of COVID
pandemic There are different types of negative effect which is realized and seen on hospitality
industry at the time of COVID. Due to the effective use of various types of plans in the form of
tactics and actions top level management are able to decrease their legal and other issues at high
rate for long time. In this way the positive relationship between consumer and firm are easily
sustained for long time.
SWOT Analysis
SWOT analysis is basically a tool or framework which is used by organization effectively
for understanding their strength, weakness, threat and opportunities appropriately. In context to
Premier Inn hotel SWOT analysis are explained below -
Strength -
 One of the main strength of this organization is authority always provides safe and
healthy workplace to their employees. In context to Premier Inn Hotel, due to
maintaining safe and healthy atmosphere, employees are able to provide best service to
their customers in long term.

 The other strength of this organization is utilization of skilled employees. With help of
highly skilled employees authority are able to manage number of rooms systematically
and also provides their services to customers in time.
Weakness -
 Due to facing heavy competition by company in hospitality sector, management faced
various issues for delivering their products to consumers in time.
 Due to heavy price in their services and products management are not able to sustain
their goodwill in minds of customers and in market for longer time.
Opportunities -
 The management of Premier Inn Hotel must use various types of marketing tactics for
expanding their services and business functions globally within short duration (Durst and
Zieba, 2019).
 For run their activities internationally management need to made huge investment in
digital marketing and promotional techniques. In this way the popularity of products
and brand value is effectively increased for long time.
Threat -
 One of the major threat which is facing by Premier Inn Hotel right now is competitors.
For example AIRBNB is being considered as biggest threat for the company.
PESTEL Analysis
It is also a one type of tool or method which is used by the Premier Inn Hotel for
identifying various external forces which produce direct impact on various activities of business.
The impact will be generated in both aspects one is positive and other is negative. In context of
Premier Inn Hotel, factors which comes in PESTEL analysis are -
 Political – In context to Premier Inn Hotel, the factors such as government laws, rules
and regulations are responsible for creating direct positive impact on organizational
functions. Due to facing positive effect top level management are able reform good and
effective policies. Due to developing good policies and effective setting of
accommodation rates the overall profit margin and popularity of organization are easily
sustained in maximum level for long time.
 Economic – In current situations the hospitality is considered as one of the fastest and
largest expanding sector. In context to Premier Inn Hotel, management will faced

different types of issues changes are occurred in the rates of currency. That means the
changes will produce direct impact on the ticket price amount and room booking of this
hotel. Due to facing these issues chances are highly increased for damaging relationship
with customers for long time.
 Social – Regarding the income of Premier Inn Hotel, it is totally based on the factor of
tourism (Gray, 2019). Because for organization useful holidays such as bank holidays,
Christmas and others is consider as beneficial date to them which leads to enhance their
productivity and profit at at maximum level. In these days the density of the tourist is
very high within country or in various tourist locations. Due to this company need to
offer average price in their services for long time.
 Technological – It is considered with those type of factors which create direct direct
effect on the whole activities of business digitally. The organization who operates their
activities in hospitality sector have direct connection with various customers. Therefore,
it is necessary for Premier Inn Hotel that they must adapt the knowledge of advanced
equipments which support the business for run their services and activities in fast manner.
 Environmental – Here the main focus of organization is to protect the environment and
it is the top responsibility for them in business industry. In context to Premier Inn Hotel,
management must give importance to those type factors which is not dangerous for
environment. Due to considering those type of factors productivity of company are easily
increased at large level within low time.
 Legal – In context to hospitality industry, higher authority must always keep in mind that
different types of rules and regulations are mainly developed by council of particular
country. The compliance of different laws and rules are main reasons for creating
difficulties in the business. Due to raising various difficulties the task of the company is
not accomplished in time which leads to reduce the performance of the firm in effective
manner.

CONCLUSION
From the above information, it concludes that understanding business organization plays
the crucial role for running the functions of company in smooth manner. At the time COVID 19
different types of issues are faced by the hospitality sector and more impact are seen on the
tourism and hotel industry. This report also concludes that for Premier Inn Hotel flat
organizational structure is suitable for reducing such type of issues. This structure also supports
the management for diversifying their set of command chain into various sections. Along with
this long term sustainability and high amount of profits can also be earned by the respective
company.

REFERENCES
Books and Journals
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Dynamics:: An overview of Communication Constitutes Organization (CCO) and
Storytelling Organization Theory (SOT) approaches. Communication & Language at
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Boulbaba, B.E.N., 2018. IMPACT OF INFORMATION RESOURCES MANAGEMENT
UPON THE ORGANIZATION PERFORMANCE. Defense Resources Management in
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Durst, S. and Zieba, M., 2019. Mapping knowledge risks: towards a better understanding of
knowledge management. Knowledge Management Research & Practice, 17(1), pp.1-13.
Gray, D.E., 2019. Doing research in the business world. Doing Research in the Business World,
pp.1-896.
Ibarra, D., Ganzarain, J. and Igartua, J.I., 2018. Business model innovation through Industry 4.0:
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Varian, H., 2018. Artificial intelligence, economics, and industrial organization. The economics
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business. Journal of Business Ethics, 150(3), pp.691-709.
Vernay, A.L., Cartel, M. and Pinkse, J., 2022. Mainstreaming business models for sustainability
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