Organisational Structure and Business Environment Analysis of Premier Inn Hotel

This report discusses the hierarchical organisational structure of Premier Inn Hotel and analyzes its business environment using SWOT and PESTLE analysis. It identifies the strengths, weaknesses, opportunities, and threats of the hotel and examines the political, economic, social, technological, legal, and environmental factors that impact its operations.

Produce and explain the
organisational structure of
Premier Inn Discuss the
internal and external factors
which impact on their
business as a result

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

1. INTRODUCTION
Business organization is undertaken as entity that is formed for an objective of operating
commercial ventures which represents how businesses are framed as well as how to develop
commodities or services and attain customers’ needs. Moreover, this essentially aims to focus on
either obtaining profitability or developing community (Ara and Das, 2021). Additionally, the
firms which are going to be considering for it is Premier Inn, which is known to be one of the
leading British hospitality's professional organization Whitbread Plc. Additionally, it is also the
well known biggest chain of hotel that operates in above 800 hotels that incorporates around
72000 rooms across UK and beyond this. Its headquarters is in Dunstable, United Kingdom and
is established in year 1987. The key intent of this report is to produce and explain the
organisational structure of Premier Inn Discuss the internal and external factors which impact on
their business. So for instance some topics are discussed in this report are Premier Inn’s
organisational structures, analysis of business environment with assistance of SWOT analysis
and PESTLE analysis.
2. Organisational Structure of Premier Inn Hotel
Organisational structure is regarded as the framework that assists descriptions about how
particular policies, roles and responsibilities are allotted for leading visions and mission.
Additionally, an efficacious structures which represents job descriptions of all workers as well as
how it fit in company. Moreover, this allows ventures for being effectual and focused as well as
it evens determined how information flows within various levels. In context of Premier Inn
Hotel, they have hierarchical organisational structure (Austin, 2020). This particular framework
depends on vertical command chain from higher level as well as several layers of management.
In addition to this, it is advantageous as this aids its workers to be professionals within their
places along with numerous opportunities to expertises.
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3. Business Environment Analysis of Premier Inn Hotel
Business environment is regarded as that aspects of business ventures atmospheres which
affects or influences it activities and determined their efficaciousness. Based upon the Keith
Davis, “Business environment is considered as the aggregation of overall circumstances, events
and impacts that surrounds as well as influences this”. Therefore, in order to determine the
Premier Inn hotel’s business environment with helps of SWOT as well as PESTLE analysis those
are discussed underneath:
3.1 SWOT Analysis
SWOT analysis is regarded as the simple but most helpful frameworks for ascertaining the
strengths, weaknesses, opportunities and threats of entity (Buchanan and Huczynski, 2019).
Additionally, it also assists in developing on what it conducts, for representing what it is lacking,
to minimise risks and undertakes large competent advantages of possibilities for success and
development. Premier Inn Hotel SWOT analysis is described underneath:
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3.1.1 Strength
Premier Inn have formed more effectual image of brands over several years.
Additionally, this is friendly image which is coupled with free wifi 24*7 that has been larger and
effective service providing point for hotel (Czinkota and et. al., 2021). Moreover, this was also
voted as efficient UK economy brand of hotel at British Travel awards in year 2017 and 2020.
Also, it has much stronger presence within United Kingdom so even into COVID-19 pandemic
circumstances this was awarded as best brand of hotel.
3.1.2 Weaknesses
The main weakness of Premier Inn at the time of COVID-19 pandemic circumstances
which it have been accused for refusing to refunds some customers who booked its rooms. A a
results, they would develop several consumers who are not happy as well as also minimising its
reputations.
3.1.3 Opportunities
The main opportunity of Premier Inn is adoption of advanced technology. As the
pandemic circumstances of COVID-19 raised so this becomes difficulty for guests and hotel. For
this, through opting advance technology, it may formulate new rooms along with fuller safety as
well as also undertaking whole cares of hygiene’s.
3.1.4 Threats
As because of pandemic situations of COVID-19 large lockdown incurs that have
decimated several ventures all over world in last some of the years. Therefore, Premier Inn was
affected adversely as well as difficulties.
3.2 PESTLE Analysis
PESTLE analysis is regarded as the strategic framework that is applied for determining the
extrinsic business surroundings by breaking down the problems and chances into political,
economical, societal, technological, legal and ecological factors (Del Giudice and et. al., 2021).
Additionally, this can be efficacious models for using in corporate strategy planning and
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identifying the advantages and disadvantages of business strategy. Also, Premier Inn’s PESTLE
Analysis is described underneath:
3.2.1 Political Factors
Political factors is related with the government authority and impacts on industry or
economy. Additionally, the factors of government may be legislation or economic norms. In
addition to this, political environment can affects hotel industry through range of aspects like
fiscal policies, trade tariffs and so on. Therefore, because of pandemic circumstances of COVID-
19 government enforced new norms for hospitality and hotel sectors to stop its practices. Also, it
affected the Premier Inn adversely as it has for bearing larger losses.
3.2.2 Economical Factors
Economical factors have direct influences on longer term aspects of organisations into
market areas. Additionally, the economic surroundings may affects how company their facilities
prices or influences the supply and demand model (Ibrahim, 2020). As pandemic circumstances
of COVID-19 rise so there is a larger affects on hotel sector as it were not supposed to conducts
its facilities. As results, Premier Inn have to goes through minimisation in its profits and sales.
3.2.3 Social Factors
Social factors such as demographics, cultures and others can influences the overall sector
surroundings by impacting the peak buying durations, purchasing behaviours and lifestyles of
choices. Additionally, society is essential as both lifestyle as well as cultures of person can
affects when where and how it expects for involving with commodities & facilities. Also, this
includes demographics, ethics and many more.
3.2.4 Technological Factors
As current period, technology is maximising rapidly, Therefore, this is undertaken as the
much vital factor as it can have direct or indirect effects on whole sectors. While some industries
would be much affected by technology into compares to others, creativity within technology may
impacts the market area as well as preferences fo consumers. Therefore, after the pandemic
situation of COVID-19 is under control, this would be advantageous for Premier Inn hotel for
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adapting advanced technology so that it may become competent for facilitating hi-tech services
to its guest. But because of it, they have to bear high costs.
3.2.5 Legal Factors
Legal factors may affect internal and external atmosphere of organisations. Additionally,
the regulatory as well as legal surroundings can affects procedures and norms of industry. So,
after the lockdown that occurs due to pandemic situation, the hospitality and hotel sector has to
follow few policies and norms associated with guest safety. Also, it would have affirmative
affects upon Premier Inn as it maximises its reputations within clients.
3.2.6 Environmental Factors
The environmental factors include whole aspects associated with physical surrounding and
to common ecological safety requirements. Usually, the guest of hotel stays in business for
several cause such as when visiting family, friends and so on (Lai, 2019). After vey longer
period of lockdown which occurs because of COVID-19, individuals prefers to visits few some
best areas in which either it is great so as Premier Inn hotel which is available into much several
areas so this would have affirmative prospects for them. As it assists them in boosting their
ventures again efficaciously and effectually.
4. CONCLUSION
Based upon the above report, it has been concluded that business organisation is crucial as it
is formed for an objective of operating commercial ventures which represents how businesses are
framed as well as how to develop commodities or services and attain customers’ needs.
Moreover, this essentially aims to focus on either obtaining profitability or developing
community.In addition to this, SWOT analysis is applied as this assists in developing on what it
conducts, for representing what it is lacking, to minimise risks and undertakes large competent
advantages of possibilities for success and development. Additionally, PESTLE analysis is used
as it is vital strategic framework that is applied for determining the extrinsic business
surroundings by breaking down the problems and chances into political, economical, societal,
technological, legal and ecological factors. Additionally, this can be efficacious models for using
in corporate strategy planning and identifying the advantages and disadvantages of business
strategy.
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REFERENCES
Books & Journals
Ara, A. and Das, K.K., 2021. Insights About Human Resource Practices, Knowledge
Management Practices, and Innovation. In The Innovation Shift in Higher Education (pp.
11-40). Palgrave Macmillan, Singapore.
Austin, E.C., 2020. Business survival growth model (bsgm) canvas vs business model canvas
(bmc). European Journal of Business and Innovation Research, 8(1), pp.52-68.
Buchanan, D.A. and Huczynski, A.A., 2019. Organizational behaviour. Pearson UK.
Czinkota, M.R., Kotabe, M., Vrontis, D. and Shams, S.M., 2021. Marketing Planning.
In Marketing Management (pp. 43-90). Springer, Cham.
Czinkota, M.R., Kotabe, M., Vrontis, D. and Shams, S.M., 2021. Marketing Research and
Information. In Marketing Management (pp. 177-235). Springer, Cham.
Del Giudice, M., Scuotto, V., Papa, A., Tarba, S.Y., Bresciani, S. and Warkentin, M., 2021. A
Self‐Tuning Model for Smart Manufacturing SMEs: Effects on Digital
Innovation. Journal of Product Innovation Management, 38(1), pp.68-89.
Ibrahim, A.T., 2020. Management accounting practices in hotels in Nigeria (Doctoral
dissertation).
Lai, I.K.W., 2019. Hotel image and reputation on building customer loyalty: An empirical study
in Macau. Journal of Hospitality and Tourism Management, 38, pp.111-121.
Mavilavalappil, U.P., Tikoria, J. and Agariya, A.K., 2021. Benchmarking business excellence
practices: a case-based approach. International Journal of Process Management and
Benchmarking, 11(4), pp.498-541.
Ara, A. and Das, K.K., 2021. The Innovation Shift in Higher Education. Springer Books.
Yemchuk, T. and Arpul, O., 2020. Competitive Positions in Restaurant Business in Present-Day
Conditions Based on the Example of Chernivtsi (Ukraine). Prace Komisji Geografii
Przemysłu Polskiego Towarzystwa Geograficznego, 34(1), pp.92-107.
Online
Hotel organisational chart. 2021. [Online]. Available through:<
https://www.orgcharting.com/hotel-organizational-chart/>
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