Understanding Business Organization

This report discusses the organisational structure of Premier Inn Hotel, which is a functional structure. It also explains the SWOT and Pestle analysis for identifying the internal and external factors. The report concludes with the impact of Covid-19 on the hospitality sector and the circular flow of income in the UK economy.

UNDERSTANDING
BUSINESS
ORGANISATION

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Organisational Structure of Premier Inn Hotel............................................................................3
SWOT and Pestle analysis...........................................................................................................4
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................1

INTRODUCTION
Organisation culture is refers to the proper way for behave within the organisation, it is
consisting with shared values and belief which are established by the leaders and then it needs to
communicate and reinforce on the basis of various method that are help for shaping the
employee behaviour, understanding and perception (Chaleunsouk, 2017). In an hospitality sector
the culture is related to the environment which influence nature of organisation in order to
considering the long-term plan which are help the organisation towards the vision. The culture is
refers to dictating the process and policies which are enable to complete the mission on every
day basis. The report is based on Premier inn hotel that is related to British hospitality 's
company in UK, it is known for the largest hotel chain which operates more than 900 hotels
across United Kingdom and all over the world. It is also known for the comfortable rooms and
great food for guest and support the charity partner such as GOSH (Great Ormond Street
Hospital Children's Charity). The pandemic is effected almost every sector in which hospitality
sector is affected very much (Jhunjhunwala and Deo, 2018). The report will discuss organisation
structure of Premier inn. Also, explaining SWOT and PESTLE analysis for identifying the
internal and external factors.
MAIN BODY
Organisational Structure of Premier Inn Hotel
The organisational structure used by Premier Inn is functional structure which is divide
into the major function of the company that has different groups. The groups are divided such
finance, marketing, information technology, production etc. This structure is one of best
organisational structure in which group employees has perform according to skill, speciality and
related roles. This structure help the organisation in order to run in a systematic way and it is
help for earn profit on the basis of grouping the employees bys expertise and skills (George,
2021). This is also help for providing the hierarchy an minimises the confusion among the
employees which are efficiently run the business and also gives the clarity about to whom you
should contact with according to the different situation. Premier inn hotel use this structure for
improving the issue related to lack of communications between unenthusiastic employees and
department.
In this structure all the related skills of employees are come together and work together
so that they can work efficiently according to their capability for increasing the productivity of

the organisation. The quality of product and services are provided by hotel to its customer is
high so that it can help to build the reputation of the organisation (Korjuhina and Sorokin, 2018)
. This is not creating confusion and all the employees are know that to whom they can complain
about the issue. All the employees feels confident and believe in standardized. Also, they all are
feel free and loyal about the department and organisation as the whole. It helps to increases the
work ethic and morale related to their job security. This also gives the clear path in order to
achieve the growth for employees that are providing motivation. Premier Inn hotel perfect
environment that is why people are like their services which are provided by them (Juhola,
2020).
SWOT and Pestle analysis
It has been analysed that due to Covid-19 the impacted on the hotel industry at the large
level there were whole economy were impact in a following way such as:
Strength- Due to Covid -19 the positive impact on Premier Inn is related to there were
time to renew-ate the hotel according to the need of consumer. Employee who were stuck in
hotel due to pandemic at them they are provide them online training so that they can improve its
services and help to increases the productivity. It helps to protect the capitalise and leverage.
After pandemic there are large number of customer visited the hotel and it has helped to
increased the profit of the organisation (Lee, 2020).
Weakness- There were so many people who has lost their job because of lockdown and
that time people are forget about the skill they have faced so many problems. Premier inn hotel is
related to faced the problem regarding the limitation of budgets the sale of hotels were suddenly
declined and at that time there are issues because very less financial resources has the company
and that time the investors are very less who are interested for invest money in the organisation.
The pandemic situation were very bad because it is not possible to pay all the employees.
Opportunities- Due to Covid-19 there were so many opportunities which are taken by
the cited hotel such as they are able to hire more employees who are belongs to health and safety
department so that customer are attract towards them (Loizia and Doula, 2021).
Threat- The economic condition of UK were bad at that time and this the biggest threat
for Premier Inn and there were very less customer due to Covid-19. The managers is considering
all the factors and thought about how to attract the customer am provide discount top customer
and free coupons.

The external analysis for the organisation is related to the various factors such as follows:
Political factors- The UK government has also banned the international airline
and the export form the other country. The hospitality sector was not being able earn the
profit and because of that income for the country has not been generated. Along with this,
the pandemic has brought the wave of the innovation in this sector in order to attract
more customer (Pirnar, 2019).
Economic factors- That has impacted the overall operational cost of the firm.
Moreover, the household income has also changed it also considered as the income of the
country as the citizens has to pay the certain tax. There were very less less employees who are
interested in visiting the hotel because there income were less and the rate of tax is high.
Social factors- The Social factors are related to the culture, the culture of UK were
change due to Covid-19. Health of employees were affected due to pandemic and that is why the
impact were negative there were money invest in health and safety of employees as well as
customer. In addition to this, the government of UK has introduce the societal restriction
on the public and the international visitor (Pandey, 2021). The government has to invest
on the safety measures such as sanitizer machines and increasing the hygiene in the
public area.
Technology factor- This has impacted negative on the premier Inn hotel because of
pandemic there are so many technologies are adopted such as sanitisation machine, temperature
check equipment for the customer in order to consider there health and safety. Along with this,
manufacturing of Mask and PP Kit also required high payment. The country has also
imported the Hydroxyl chloroquine and other drugs from the different countries.
Moreover, this industry has been struggling due to the various restriction imposed by the
government on the trade. So that organisation has faced so many problem regarding this
(Shreesh, 2021).
Legal factors- There were so many laws and regulation followed by the organisation an
that is why hotel are impacted such also regarding lockdown has impacted bad on the
productivity of the organisation. In addition to this, the government has spent huge capital on
testing of virus on every public area and distributed the free vaccine to the citizens that has
impacted on the income of the country.

Environment factors- Premier Inn hotel consider the sustainable factor for the
environment there are all the things are used which are not harm the environment. All the mask
and other resources used by the company is consider the sustainable factor.
CONCLUSION
It has been concluded that there are major impact of Covid-19 on the global economy in
which hospitality sectors is affected by pandemic in every manner. Premier Inn hotel has
affected and all the internal and external factors which are explained in the reports. The report
has been discussed about the circular flow of income in context to explained the impact of
lockdown on the UK economy. Also, there are major economic response of UK government and
its impact on the circular flow of income on the basis there are so many people who are affected
from Covid-19 are having lots of problem that is why they were suffer. Moreover, it has been
concluded that there are several impacts of Covid-19 on the economy of UK with the response of
central bank and government. Lastly, analysed the major response related to Bank of England
and their implications on UK circular flow of income. Further, identified the impact of Brexit on
UK economy with its recommendation. The interest rate was increases that is why people has
suffered from it interest rate and not able to spent money on education.

REFERENCES
Books and journals
Chaleunsouk, T., 2017. A study of business strategies applied by entrepreneurs in SMEs in the
hotel industry in Vientiane to maximise competitive advantage (Master's thesis).
George, R., 2021. Tourism and Hospitality Marketing Planning. In Marketing Tourism and
Hospitality (pp. 149-182). Palgrave Macmillan, Cham.
Jhunjhunwala, P. and Deo, S., 2018. Managing floor and carpet cleaning in hospitality.
Juhola, J., 2020. Business Plan to Utilize the Ahjola Premises Located in Kainuu.
Korjuhina, J. and Sorokin, O., Developing marketing strategy for Ramada Encore Kiev.
Lee, J., 2020. Accelerating organisation culture change: innovation through digital tools.
Emerald Group Publishing.
Loizia, P. and Doula, M., 2021. Measuring the level of environmental performance in insular
areas, through key performed indicators, in the framework of waste strategy
development. Science of The Total Environment. 753. p.141974.
Pandey, A., 2021. Risk Management in Restaurant Business during Covid-19 crisis.: Case study
for a small Asian restaurant (X) in a medium-sized town in Uusimaa, Southern Finland.
Pirnar, I., 2019. Competitive Analysis and Strategic Planning: Entrepreneurship and Innovation
Management Perspective. Entrepreneurship and Innovation Management. p.52.
Shreesh, I., 2021. Digital marketing in the tourism industry of Nepal: case: Caravana Himalaya.