Organisational Structure and Business Environment Analysis of Premier Inn Hotel Chain

This case study report provides an analysis of the organisational structure and business environment of Premier Inn Hotel Chain, including a SWOT and PESTLE analysis. It also highlights the impact of external and internal factors on the hotel chain's operations.

Case Study Premier Inn
Hotel Chain

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Organisational structure of Premier Inn......................................................................................1
Analysis of business environment...............................................................................................2
SWOT analysis............................................................................................................................2
PESTLE analysis.........................................................................................................................3
CONCLUSION................................................................................................................................5
REFRENCES...................................................................................................................................6

INTRODUCTION
Business environment can be described as aggregate of varied forces which impact
organisational operations in an adverse manner either directly or indirectly (Alexander, Jha and
Pandey, 2020). This project report is based on a case study whereby an UK based hotel called
Premier Inn is taken into consideration. Its parent company is Whitbread Plc which is considered
as one of the largest hotel chain operates numerous hotels on global scale. They provide
luxurious amenities and excellent room services. This hotel chain was established in 1987 and
has its headquarters at Dunstable, UK. They also fulfil their corporate social responsibility
through collaborative partnerships with their charity partners. This project report highlights an
understanding of organisational structure of Premier Inn. It also demonstrated a clear
understanding of varied forces that are present in external as well as internal business
environment which have their impact on business organisations. This case study report aims to
develop a thorough knowledge regarding organisational structure as well as business
environment. It also illustrates an understanding about major forces that help in shaping
contemporary business operations.
MAIN BODY
Organisational structure of Premier Inn
An organisational structure can be understood as a systematic approach which essentially
outlines how business activities are directed in an organisation for accomplishing objectives and
goals (Beynon-Davies, 2019). Organisation structure is not only beneficial in defining hierarchy
levels but it also prepares a layout for paying structure of employees. Organisational structure of
Premier Inn is tall which flows in a hierarchal level. This structure encompasses of several layers
of management whereby all the employees report to their immediate superior.
This structure is built on the basis of authorization level which eliminates the consequences
of employee decision which can hamper their brand image (Saleh and Watson, 2017). This type
of structure is beneficial for Premier Inn as it opens up the ways for internal promotions which
further helps in keeping employees satisfied and enthusiastic. This is adopted by managers of
Premier Inn as it provides varied opportunities to their employees in regards to advancement.
However, it can be proved disadvantageous for Premier Inn as it is less flexible in its
approach and slow down the decision-making process especially in case of critical situations.
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This also restricts employees to take decision of their own which also create disruptions in
managing business operations. This can make communication process longer and have chances
to disrupt the message which led in deteriorating company’s image. Slow communication
processes can avoid employees on grabbing an opportunity as they have to take permission from
their superiors through proper hierarchal chain.
Analysis of business environment
Business environment refers to a complex realm of varied forces as well as conditions
which essentially influence overall performance as well as sustainability practices of an
organisation (Bolis, 2018). Varied forces which combined to develop a business environment are
government, customers, media, market conditions, dynamic trends and many more.
Ascertainment of these factors are essential in identifying and grabbing varied business
opportunities. It is considered helpful in tapping as well as assembling resources in order to
assess varied forces related to business environment.
SWOT analysis
SWOT analysis can be described as strategic framework which is used by organisations for
ascertaining competitive position in order to formulate strategic plans (Dietz and Mulder, 2020).
It is imperative for corporations to constantly assess varied internal as well as external forces in
order to grab opportunities and mitigate risks. It assists managers of Premier Inn in recognizing
the probable threats in order to develop varied strategies for mitigating them in an effective
manner. Varied factors of SWOT analysis in regards with Premier Inn are as follows:
Strengths
 Strong market presence- Premier Inn
has strong market presence in UK and
other countries like Germany, United
Arab Emirates and many more which
helps them in serving their customers at
differential places.
 Brand Image- Premier Inn has
established a good brand image by
providing various amenities to their
Weaknesses
 Lack of human resource- Due to
global lockdown, many workers of
Premier Inn have left their jobs and
move to their home towns which led to
shortage of human resources.
 Lack of proper strategies- Managers of
Premier Inn essentially focuses on
expanding their operations. They do not
react on a proactive basis at the time of
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guests like WI-FI, bike riding
experience and many more.
 Feel their guests safer- In order to
attract their loyal guests to visit their
premises again after covid 19,
managers of Premier Inn provides
numerous amenities like anti-viral
sanitizing spray, maintain social
distancing and many more.
covid pandemic.
Opportunities
 Digitalised practices- Premier Inn have
opportunity to adopt digitalised
exercises in order attract visitors
towards their hotels.
 Large market area- Premier Inn is
operating varied hotels which create an
opportunity to them to cover their costs
and losses.
Threats
 Intense competition- Premier Inn face
competition from varied hotels offering
same products and this has increased
gradually after covid 19.
 Economic factors- Due to global
lockdown, spending patterns of people
have changed drastically which poses
as a treat for increasing their revenue.
PESTLE analysis
PESTLE analysis can be explained as strategic tool which is used by establishments in
identifying as well as evaluating varied extrinsic forces that impact business operations
(Escaleras and Chiang, 2017). It is considered as beneficial for organisational managers in
assessing a macro picture of external factors in order to formulate strategies. It aids managers of
Premier Inn in capitalizing varied opportunities through systematic evaluation of extrinsic forces.
All the factors of PESTLE analysis in relevance with Premier Inn are mentioned below:
Political factors- In UK, Brexit agreement which marks the departure of United
Kingdom from European Union which leads many organisations to close down their operations
in European Union. Managers of Premier Inn have to close down their operations in European
Union which leads them to incur tremendous losses. This factor is favourable for them as they
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can target a segmented customer base based in UK. This factor is considered as unfavourable for
them as they have to face issues in relation to shortage of labour (Glebovskiy, 2019).
Economic factors- In UK, due to global pandemic and strict covid guidelines, many
businesses has to suffer as it led in loss of revenues. This has also impacted on spending patterns
of people. In relevance with Premier Inn, this factor is favourable as this has given them time to
make strategies for expanding their business operations. This force is considered as unfavourable
for them as it leads into huge losses.
Social factors- In UK, most people are indulgence in their approach which leads them to
enjoy their leisure time at hotels and other related places. This factor is favourable for Premier
Inn as they can attract numerous guests to visit their premises. This is unfavourable for them as
they have to make modifications in regards with variations made in perceptions of people as well
as market dynamics (Halbert and Ingulli, 2020).
Technological factors- UK is considered as one of a leading nation which support
businesses with new and advanced technology. Through this, managers of Premier Inn have
adopted technological innovations like mobile check-ins, online bookings in their business
operations which led them to attract more customers. This force is unfavourable for them as it
creates much traffic on their website for bookings.
Legal factors- UK government has made businesses operating there to make compliance
with all the framed laws which essentially protects the rights and interests of employees as well
as customers. In relevance with Premier Inn, top management adhere to the framed laws for their
smooth functioning. This is favourable for Premier Inn as this help them in avoiding any
expensive litigation processes. Non-compliance of this laws can hinder their public image and
deteriorate their market position (Hamilton and Webster, 2018).
Environmental factors- In UK, government has made laws to make significant
improvements for reducing the environmental pollution and industrial waste. Premier Inn use
solar panels and other related practices for conserving energy. They also has started practices for
reducing the carbon emission and waste materials in regards to their premises. This factor is
favourable for them as people want to use those products or avail those services whereby
operations are performed through adopting sustainable practices (Nikitina and Lapiņa, 2019).
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CONCLUSION
From the above presented information, it has been concluded that business environment is
sum total of all external and internal factors which have their impact on business operations. It is
bifurcated in two categories, namely, macro and micro. Macro environmental factors are
uncontrollable and have an indirect impact on business activities. At the contradictory to this,
micro forces essentially encompasses of internal factors which have direct influence on business
decisions. This consists of customers, suppliers, investors and many more. Organisational
structure is a hierarchal system through which responsibilities and job positions are regulated in
an effective manner. Tall structure has certain advantage such as aid in advancement of
employees and opens up the ways for effective internal promotions. It is considered as
disadvantageous because of its slow process of decision-making.
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REFRENCES
Books & Journals:
Alexander, A. A., Jha, S. and Pandey, A., 2020. Understanding how hybrid organisations tackle
social challenges: An institutional logics approach. South Asian Journal of Business
Studies. 9(2). pp.193-213.
Beynon-Davies, P., 2019. Business information systems. Red Globe Press.
Bolis, A., 2018. The impact of big data on organisations: understanding data-driven decision
making.
Dietz, J. L. and Mulder, H. B., 2020. The PSI theory: understanding the operation of
organisations. In Enterprise Ontology (pp. 119-157). Springer, Cham.
Escaleras, M. and Chiang, E. P., 2017. Fiscal decentralization and institutional quality on the
business environment. Economics Letters. 159. pp.161-163.
Glebovskiy, A., 2019. Inherent criminogenesis in business organisations. Journal of Financial
Crime.
Halbert, T. and Ingulli, E., 2020. Law and ethics in the business environment. Cengage Learning.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
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.
Saleh, A. and Watson, R., 2017. Business excellence in a volatile, uncertain, complex and
ambiguous environment (BEVUCA). The TQM Journal.
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