Understanding Business Organisation: Organisational Structure and Business Environment Analysis of Premier Inn Hotel

This report provides an in-depth analysis of the organisational structure and business environment of Premier Inn Hotel. It includes a discussion on the tall organisational structure adopted by the hotel and the SWOT and PESTLE analysis conducted to understand the internal and external factors affecting the hotel industry. The report also highlights the benefits and drawbacks of the tall organisational structure and the opportunities and threats faced by the hotel in the current business environment.

Understanding
business organisation

Contents
INTRODUCTION...........................................................................................................................3
Organisational structure of Premier Inn Hotel.................................................................................3
Business environment analysis of Premier Inn Hotel......................................................................4
SWOT analysis............................................................................................................................4
PESTLE analysis.........................................................................................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business environment is defined as the combination of various factors that are related to
business and create impact on its operations in positive as well as negative manner. In current
competitive business environment, it is important for the business to analyse these concepts and
factors than develop effective planning and strategy that lead business towards attaining
organisational goals and objectives in best possible manner. Now these days, organisational
conduct campaigns to analyse these internal and external factors in order to gain competitive
advantages in current business environment. Market research provides information and data to
employees related to current market trends and customers’ needs and demands that help business
to produce products and services accordingly. In this report chosen organisation is Premier Inn
that is British hospitality organisation founded in 1987 and its headquarter situated in United
Kingdom. It is considered as the largest chain because it operates 800 hotels across UK as well
as another country. Respective hotel in involved in providing great food and comfortable room to
its guest that enhances customer satisfaction and retention. In this report organisational structure
that is adopted by Premier Inn hotel is explained. Furthermore, different environmental modal
such as SWOT analysis and Pestle analysis in the context of Premier Inn is mentioned in this
report.
Organisational structure of Premier Inn Hotel
Organisational structure: The concept of organisational structure is considered as system
which is used by business with the objective of outline certain activities that provide direction to
business to perform operations in best possible manner to attain determined goals and objectives.
Through efficient organisational structure, business allot all roles, rules and responsibilities so
employees can perform their operations in best possible manner (Aldous, 2018). It ensures that
all related information flow in systematic manner across all department of organisation. It is
important for the business to adopt suitable organisational structure according to business
activities and nature.
Tall organisational structure: It is defined as the most efficient type of organisational structure
in which organisation broke all organisational departments in various hierarchy or levels. There
are largest number of level and managers are included in this business structure who are
responsible for operating specific department activities and operations. Premier Inn Hotel has

800 plus hotel in various countries so, tall organisational structure is suitable for the hotel
because it enables it through efficient flow of information that ensure that all business activities
are performed as per determined time. Tall business structure is effective, popular and time-
tested that facilitates business to attain its determined goals and objectives. Top level leaders and
managers are responsible to take business decisions and develop organisational strategy. Lower
and middle level managers are liable to implement these strategies in order to gain desirable
outcomes (Batty, and Gee, 2019). This business structure contains long chain of command in
which information flows from top to down. Employees of organisation are not included in
decision-making and policy formulation process.
Benefits of tall organisational structure: Tall organisational structure contains long chain of
command that ensures proper and systematic flow of information. Managers of Premier Inn allot
all roles and responsibilities among all level of department in clear way that improves
performance of employees. This business structure has clear structure through which employees
are promoted.
Drawbacks of tall business structure: It contains different managerial levels so it take time to
flow information in appropriate manner to all hierarchical department of Premier Inn. Employees
of organisation are not included in decision-making process that demotivates them as well as
reduce their performance level. Organisation missed various market opportunities because
employees are not allowed to take immediate decisions according to situation.
Business environment analysis of Premier Inn Hotel
The concept of business environment is related to the collection of various internal and external
factors that impact business performance and efficiency in positive and negative manner (Crick,
and Chew, 2017). Premier Inn Hotel conduct systematic market research to collect all market
related information as well as analyse impact of these factors on business.
SWOT analysis
SWOT analysis is considered as planning tool that is undertaken by the Premier Inn to assess
own strong and weak areas. Respective hotel uses this information in policy formulation and
strategy development.
Strengths: Strengths are considered as the organisational internal capabilities that provide
competitive advantages to Premier Inn than other competitors. Hotel offers quality rooms and

other services to customers at reasonable prices during pandemic of Covid-19 that facilitates
hotel through enhancing customer base and market share. Premier Inn has skilled and
experienced staff members who are able to provide better services and experience to customers.
Hotel also adopts strong advertisement and promotional strategies in current market that
maintains organisational strong presence in UK.
Weaknesses: Weakness are defined as the internal insufficiencies of organisation that impact its
performance and efficiency in competitive business environment. Premier Inn Hotel’s global
presence is limited and it faced great issues related to hygiene at hotel that create impact on hotel
performance and effectiveness during pandemic (Di and et.al.,2020). In some cases Premier Inn
refused to refund to customers that creates negative impact on organisational brand image in the
mind of customers.
Opportunities: Premier Inn Hotel has started using digital technologies such as online booking
and conducting social media campaigns that will create opportunities for business to cover
higher market share. There are various seasonal offers are provided by hotel to customers that
will help business to attract larger number of customer base and help to gain competitive
advantages over other competitors.
Threats: Premier Inn Hotel faces higher competition various well-known and largest hotels such
as Holiday inn, Easy hotel and others that create negative impact on hotel through reducing its
market share, development opportunity, customer base as well as profitability (Niemi, and
Pekkola, 2017). There are various environmental situations such as pandemic of Covid-19 and
recession in economic enhances threat for the hotel in business environment.
PESTLE analysis
Pestle analysis help business to access all external environment factors and provide clear picture
of an industry environment (Pestle analysis, 2018). Premier Inn Hotel conducts market research
to analyse these factors and hotel considers all aspects in formulating develop business policies
accordingly to gain competitive advantages. Pestle analysis in the references of Premier Inn is
explained below:
Political factors: Government possess power or control over hotel industry so, it become
important for Premier Inn Hotel to consider all government interventions, policies and
regulations in order to run operations with greater efficiency and effectiveness (Nwaiwu, 2018).
In UK tax reforms that are introduced by government are helpful for the hotel and various

investment are proposed in this industry with the objective of improving tourism. It helps
Premier Inn Hotel to attain competitive advantages through provide quality services to guests.
Economic factors: Hotel industry is considered as the largest investment industries because it
attracts various investors that plays important role in growth and development of Premier Inn
Hotel. Furthermore, higher consumer purchasing power, lower interest rates also facilitate hotel
to perform with efficiency (Tosey, 2017). Whereas, some factors like economic fluctuation and
recession create negative impact on hotel sustainability.
Social factors: There are various social aspects that are performed by Premier Inn Hotel such as
it works towards community, enhance tourism and provide employment to people that maintain
its differentiate image in the mind of customers (Perera, 2017). On the other hand, customers
beliefs, lifestyle and regular changing trends create difficulties for hotel to develop effective
strategies and policies.
Technological factors: Now these days, technology is changing at very fast rate due to
innovation, advancement and research and development which improve Premier Inn Hotel
performance in competitive business environment. Hotel uses digital marketing, online booking
and payment that enhances profitability and attract larger number of customers. Implementation
and use of technologies requires higher investment that enhances overall cost of business.
Legal factors: Government has introduced various legal regulations like health and safety law,
employment law and environment law that are changed as per conditions that create the
environment of uncertainty for Premier Inn Hotel and impact on its activities and decision-
making process (Phan, 2021). Consideration of these legislations in business operations
maintains organisational unique positioning as well as protect from any legal complications from
government.
Environmental factors: There are various aspects are included in environmental factors such as
weather and climate conditions, pollution, carbon footprints and other that create impact on
organisational efficiency in competitive business environment. Premier Inn takes various actions
to protect environment from negative impacts such as it involved in running Good Together
programme for making hotel ecologically sustainable (Charro and Schaefer, 2018). Hotel also
concentrates on installing energy-saving lights, water efficient showers that play important role
in saving natural resources. It enhances organisational reputation and provide competitive
advantages.

CONCLUSION
As per above report, it can be concluded that there are various internal and external factors
are included in business environment that create impact on overall business performance and
effectiveness. In current scenario, it becomes important for business to analyse these factors and
consider them in organisational policy formulation and decision-making. Organisational
structure facilitates organisation through providing guidance to perform all operations in
systematic manner that lead it towards growth and development. Organisations use SWOT
analysis as well as Pestle analysis with the objective of analysing environment aspects. Premier
Inn hotel uses internet technology during pandemic that creates various opportunities and enable
to maintain strong positioning in market.

REFERENCES
Books and Journals
Aldous, M., 2018. Business ownership and organisation. In An economist’s guide to economic
history (pp. 167-174). Palgrave Macmillan, Cham.
Batty, R.J. and Gee, S., 2019. Fast food, fizz, and funding: Balancing the scales of regional sport
organisation sponsorship. Sport Management Review, 22(1), pp.167-179.
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.
Di and et.al.,2020. Artificial intelligence and business models in the sustainable development
goals perspective: A systematic literature review. Journal of Business Research, 121,
pp.283-314.
Niemi, E. and Pekkola, S., 2017. Using enterprise architecture artefacts in an
organisation. Enterprise information systems, 11(3), pp.313-338.
Nwaiwu, F., 2018. Review and comparison of conceptual frameworks on digital business
transformation. Journal of Competitiveness.
Tosey, P., 2017. Understanding organisation development. Kogan Page Publishers.
Perera, R., 2017. The PESTLE analysis. Nerdynaut.
Phan, S., 2021. The effect of pestle factors on development of e-commerce. International
Journal of Data and Network Science, 5(1), pp.37-42.
Charro, A. and Schaefer, D., 2018. Cloud Manufacturing as a new type of Product-Service
System. International Journal of Computer Integrated Manufacturing, 31(10), pp.1018-
1033.
Online:

Pestle analysis.2018 [Online] available through:<
https://corporatefinanceinstitute.com/resources/knowledge/strategy/pestel-analysis/>
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