Understanding Business Organizations: Premier Inn Hotel Case Study

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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