Understanding Business Organizations: Premier Inn Hotel Case Study

This report provides an in-depth analysis of the organizational structure and business environment of Premier Inn Hotel, one of the top hotel retailers in the UK. It includes a SWOT analysis and PESTLE analysis of the hotel chain, highlighting its strengths, weaknesses, opportunities, and threats. The report also discusses the hierarchical organizational structure of Premier Inn and its various departments, such as finance, human resources, food and beverage, sales and marketing, and logistics.

ss
UNDERSTANDING
BUSINESS
ORGANISATION

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

1.INTRODUCTION
Hospitality is the fifth biggest economic sector of the United Kingdom employing over 2.4
million people and contributing about 3 – 5 percent in UK's economy. The Premier Inn chain is
not only limited to the UK's border but also serves successfully beyond United Kingdom as well.
Political and economic instabilities plus the pandemic and lock downs have highly influenced the
hotel retailers around the world. The current report is about Premier Inn Hotel company which is
one of the top hotel retailers of the UK. The purpose of this report is to abstract information
about the organizational structure of the hotel chain and the business environment that has helped
the successful run of the company over the years. The following report is based on all the
political, economic, social, technological, legal and environmental factors that affect the industry
and its run in the market. The most important part of any company is its business model or
organisational structure (Nwaiwu, 2018). The quality of the business structure and the strong and
effective policies and marketing strategies that has contributed in the success of the Premier Inn
has been demonstrated in detail. Also, their strengths, weaknesses, the opportunities they have
and the hindrances they encounter are specified with detailed analysis.
2. Organisational Structure of the Premier Inn Hotel can be defined as :
The organizational structure of the Premier Inn hotel chain is hierarchical. Each level of the
organization is headed by a manager and sub — in-charges and further supported by a large
network of employees. Depending on the type of problem, the appropriate person can be
contacted and the higher management department checks whether the issue is resolved.
The command system works from the top to bottom and the policies and decision-making
is done at higher levels. Each department is managed independently. The departments are
organized according to their corresponding functions and employees with specific skills and
qualifications required in that particular department at different levels (Metallo and et.al., 2018).
It has a financial department that looks at all the finance related matters including salaries, cost
accounting, budgeting, and transaction records. The human resources department handles the
responsibilities related to the employee recruitment, employee training, attendance, promotions,
discipline and employee motivation. The food and beverage department is responsible for the
management of kitchen, eatables, drinks, dining and cleaning services. It includes all the services
from preparing food to waiter services and clean up. There is also a sales and marketing
department that promote the services to the customers through advertising and offers. The

logistic department is responsible for tracking, managing, purchasing and storing the
supplies(Jackson and et.al., 2017). Due to this kind of organizational structure of the Premier Inn
hotel industry, it is easy to operate and respond to any issue or information as quickly as possible
because the responsibilities are divided between different departments and professionals.
3. Business Environment Analysis of Premier Inn Hotel :
Business Environment Analysis contains information of various aspects of the business like
political, economic, market related trends operations of policies, customers etc. (Ziora, 2020).
Premier Inn chain use this information to identify the positive and negative aspects of the market.
3.1 SWOT analysis of the Premier Inn :
The SWOT analysis of the Premier Inn Hotel Chain can be described as :
3.1.1 Strength
Premier Inn Hotel Chain has a major market share in UK's hotel industries and has strongly
cemented its place due to its positive reviews in the market. It has a wide network of about 800
hotels and restaurants around the world employing more than 80000 people and serves over 60
million customers a year. They have locations in tourists based countries of the middle east and
many European countries as well. Premier Inn has established a very positive brand image over
the years and have had great reviews from the customers around the world.
3.1.2 Weaknesses
Apart from the Middle East and the Europe, Premier Inn does not have presence in other
parts of the world making it limited as compared to other international chains. A lot of refund
issues were seen in recent times making customers dissatisfied.
3.1.3 Opportunities :
Premier Inn has already made a successful entry in Germany and Republic of Ireland and are
exploring more countries for expansion of the chain. The idea of targeting tourist based countries
for the expansion has worked well for them. Countries like Germany, America, Switzerland,
France etc. can prove to be growth opportunities for the hotel chain (Zahadat and Diaconescu,
2020). Apart from these the exploring growing tourisms spots like India, Australia can be worth
the effort (Singh and Kushwaha, 2017).
3.1.4 Threats :
The UK based hotel chain is facing some strict competition in the market especially outside
UK. Some legal threats due to the political and economic instability has also affected the hotel

business. Apart from this the lock downs has hit every business including the Premier Inn as
well.
3.2 PESTLE Analysis of the Premier Inn :
The PESTLE Analysis of the Premier Inn Hotel Chain can be explained as :
3.2.1 Political Factors
Positive collaboration of the company with the Government of UK has proved to be a
great advantage for the Premier Inn. The government of UK understands the need of
development of the hotel industries for the economic development of UK as it directly provides
employment to large number of people and is important to grow the tourism sector of the United
Kingdom (Crick and Chew, 2017). Apart from this the political factors such as UK's withdrawal
from the European Union also affected the industry a lot.
3.2.2 Economic factors
Hospitality is the fifth largest industry of UK and employees over 2.4 mullion people.
Due to the lock downs, the entire hotel industry including the Premier Inn has faced a huge loss
of revenue.
3.2.3 Social Factors
Increasing population can increase business as we have more customers. The constant
improvement in health, education and income of people around the world can boost up the
tourism industry (Staniškis, 2022.). As much as the population moves to a higher class they try to
fulfil their wants of luxury lifestyle and travelling to enjoy the part of life (Palepu and et.al.,
2020.). This is an opportunity for Premier Inn to analyse the spending power of customers and
explore new locations and make strategies accordingly.
3.2.4 Technological Factors
Technology has immensely influenced the business sector a lot especially in the areas of
marketing and promotions (Baten, 2020). Any information related to the Premier Inn can be
searched easily through the internet with customer reviews and comments. All the information of
the hotel about the availability of the rooms, price range, location and contact link can be easily
found at any time from anywhere. Bookings can be done online through various apps / websites
in advance. All these technological advantages makes the travel experience simple and easy.
Premier Inn is updated with modern techs like smart doors, free Wi-Fi, digital room service
orders making things more convenient.

3.2.5 Legal Factors
The hotels in UK must comply with the UK GDPR (General Data Protection
Regulations) as they collect data of guests and failing to provide data safety can cost the
company millions of pounds as penalty. Apart from data protection the hotel companies also
need to follow rules and regulations related to Gas Safety, health and security of employees etc.
3.2.6 Environmental Factors
Getting concerned towards the environmental issues, Premier Inn has taken some major
steps like reducing the use of plastic, using recycled paper bags and consume renewable energy
(which is subsidized in UK).
4. CONCLUSION
From the above report, we can conclude that Premier Inn Hotel company has built a very
convenient organizational structure over the years, they have built a system that can help them
achieve long term success. Everybody likes to work in a moderate system and wants to do a job
of their professional skill and different departments of this hotel chain lets the person choose
their interest of work. Even after bulk of competition in the market, Premier Inn's strategies and
policies has helped them to secure themselves as one of the largest hotel retailers of the United
Kingdom for a lot of years now. Though they are facing a lot of challenges like limited market
reach and market instabilities but still they are creating positive market environment and looking
for new opportunities to progress further in this industry. Premier Inn has done well in using the
technological benefits to their advantage for analysing, convenience, marketing and
management. Their compliance with the rules and regulations of the government has proved to
be good for them as well as their environment friendly approach has helped them in establishing
a positive image on their customers.

REFERENCES
Books and journals
Baten, M.A., 2020. Basic Understanding of Fraudulent Activities in Corporate
Organisation. Review of Business, Accounting, & Finance1. (01).pp.1-13.
Crick, C. and Chew, E.K., 2017. Business processes in the agile organisation: a socio-technical
perspective. Software & Systems Modeling. 16(3). pp.631-648.
Jackson, D. and et.al., 2017. Employer understanding of work-integrated learning and the
challenges of engaging in work placement opportunities. Studies in Continuing
Education. 39(1). pp.35-51.
Metallo, C. and et.al., 2018. Understanding business model in the Internet of Things
industry. Technological Forecasting and Social Change. 136. pp.298-306.
Nwaiwu, F., 2018. Review and comparison of conceptual frameworks on digital business
transformation. Journal of Competitiveness.
Palepu, K.G. and et.al., 2020. Business analysis and valuation: Using financial statements.
Cengage AU.
Singh, A. and Kushwaha, T., 2017. Role of customer relationship management (CRM) strategy
in development of business organisation. International Journal in Management & Social
Science. 5(1). pp.275-285.
Staniškis, J.K., 2022. Sustainability Challenges in an Business Organisation. In Transformation
of Business Organization Towards Sustainability (pp. 3-14). Springer, Cham.
Zahadat, P. and Diaconescu, A., 2020, July. Reactive or Stable: A Plant-inspired Approach for
Business Organisation Morphogenesis. In International Conference on Artificial Life
(Alife).
Ziora, L., 2020. Machine learning solutions in the management of a contemporary business
organisation. Journal of Decision Systems. 29(sup1). pp.344-351.