Understanding Business Organisation: Organisational Structure and Environmental Factors of Premier Inn Hotel

This report discusses the organisational structure of Premier Inn Hotel, including its hierarchical structure and benefits and drawbacks. It also covers the impact of COVID-19 on the hotel industry and the SWOT and PESTLE analysis of Premier Inn Hotel.

Understanding
Business Organisation

Table of Contents
INTRODUCTION...........................................................................................................................3
Organisational structure of Premier Inn Hotel.......................................................................3
Discuss the environmental factors .........................................................................................4
CONCLUSION................................................................................................................................7
REFERENCE...................................................................................................................................8

INTRODUCTION
Business organisation is an entity which is formed for the purpose of carrying on
commercial firm. Such firm is predicted on systems of law governing contract and exchange,
property rights and incorporations. Business associations have three different characteristics,
firstly they have more than one member. Second is they have assets which are legally distinct
from the private assets of the member and third is have a formal system of management which
may or may not include members of the association. There are different categories of business
organisation which are associated how the business is established, owned and operated. Premier
Inn is taken as base company. Premier Inn is a associated with Whitebread PLC which is a
British hospitality's expert company. It is the largest hotel chain operating with over 800 hotels
in UK and beyond. This organisation is offering great food and comfortable rooms of their guests
and also takes pride in supporting their charity partner such as Great Ormond Street Hospital
Children’s Charity. In this report, it covers the organisational structure of Premier Inn Hotel with
its internal and external factors which has impact on business as result of COVID 19.
Organisational structure of Premier Inn Hotel
Organisational structure is an approach which states the flow of data among different
departments in a firm. This also explains how activities are occurring in a firm to achieve their
goals and objectives. These activities comprises of roles and responsibilities of employees in a
company (Petersen, 2017). The organisational structure followed by Premier Inn is hierarchical
organisational structure in which is chain of command from superior management and
administrator to general worker. Senior management department overlooks which employees
beneath them and take all vital decisions which are then circulated by subordinate level of
management.
The upper management of hotel includes owner and executive manager who executes
specific policies and direct general manager for managing day to day activities. The general
manager also overlooks functions of distinct departments such as housekeeping, food and
beverages, laundry and so on. Front desk officer, food and beverages, housekeeping department

comes under mid level department which have responsibilities to attend the guest and offer then
with best facilities (Makarfi and Udeaja, 2019).
Benefits of hierarchical organisational structure
Develop defined structure: This develops a clear defined system for interaction among
employees who receives their daily tasks from supervising manager. The supervising officers get
their orders from their superior authorities. This procedure of information spreading makes it
simple for hotel to execute its business strategies effectively.
Establish a clear authority system: In this type of organisational structure, all the roles
and responsibilities of manager and employee are clear that makes it simpler to operate business.
As all roles of every individual working for hotel is well defined thus, it develops no confusion
among them and also proves to be advantageous in times of crises (Gholami and et. al., 2017).
Drawbacks of hierarchical organisational structure
Lacks of connections: Many department perform their roles and responsibilities in own
division that isolates them from other sections of hotel and decrease interdepartmental
communication. This further develops miscommunication and employees finds it difficult to
connect with staff members from other departments.
Department competition: Division of employees in certain departments would sometimes
leads to competition for reaching to their goals and objectives which could advantageous for this
section. It would harm the organisation as individuals may create hate for each other for
becoming more powerful than another which can minimise their productivity and efficiency
(Arch and et. al., 2019).
Discuss the environmental factors
SWOT analysis
SWOT analysis assists in evaluating the organisation's competitive position and to create
strategic planning. It assesses internal and external factors and also the present and future
potential (Nehemia and Zondani, 2021). It helps in identifying the strength, weaknesses,
opportunities an threats. In context to the selected organisation, SWOT analysis in mentioned
below:
STRENGTH WEAKNESS

 Premier Inn has more than 800 hotels in
the UK which has more 78,500 rooms.
They serves to more than 5 million
customers every month (Whitebread,
2021).
 Premier Inn has established a very good
brand image over the years. It has voted
as the Best UK economy hotel brand at
the British Travel Awards 2017 for the
7th consecutive year (Premier Inn,
2021).
 One of the major weakness is that, they
are operating in very limited countries.
 Another one is that, the employee of
hotel was using the same guests towel
to clear entire bathroom and toilets
(Newton, 2018). Regarding this, the
trade union Unite expresses concerns
for Premier Inn's exploitative work
practices.
OPPORTUNITIES THREATS
 The opportunity for Premier Inn is the
exploration of new markets. They could
establish itself in many countries.
 Premier Inn was able to establish in
Germany with 28 hotels. Germany
provides further growth opportunities
for hotel as it is one of the most visited
nation in Europe and in the world.
 The lockdown due to COVID 19 has
created impact adversely on Premier
Inn as people were not allowed to step
outside because of pandemic. Owing to
this, the hotel was not operating.
 The key competitors of Premier Inn are
EasyHotel, Holiday Inn and Ibis in the
same category of budget hotel segment,
there is a strong rivalry from Marriott
and also many other small and
independent hotels.
PESTLE analysis
PESTLE analysis is a framework which is utilised for analysing and monitoring the
macro environmental factors which might have profound impact on an firm's performance (Bala
and et. al., 2021). After the impact of COVID 19, it is vital necessary for the firm Premier Inn to
analyse their external environment to exploit market opportunities and to mitigate the threats.

Political factors: The selected hotel Premier Inn is UK based hotel and government of
UK has a solid hold on the hospitality industry. The government of UK has established a new
scheme which is “Eat out to help out” for the hotels and other hospitality industry in order to
earn income after reopening from COVID 19 restrictions. This creates a positive impact on
Premier Inn and also the hotel make sure about all the necessary measures for safety of guest.
Economic factors: The economic condition has been highly impacted after the COVID
19 as there is huge decrease in the GDP of UK. The downfall of the disposable income of
individuals has minimised the sales and profitability of hotel. The economic factor has a negative
impact on the business of Premier Inn as they are encountered with major loss due to unneeded
cost and higher maintenance cost of hotel (Rasmussen and Ihlen, 2017). As after COVID 19
economic recession, it is difficult for individuals to spend on hospitality industry which has
impacted directly on the sales of Premier Inn.
Social factors: Premier Inn is the part of Whitebread plc and they highly concerned and
persistent on consumer satisfaction. As customers have changing patterns and trends, they prefer
extra facilities whenever they visit a hotel apart from staying such as pool, Spa, gym and so on.
This change is effectively meet by Premier Inn hotel and assists in developing customers
satisfaction and increasing brand image. The customers of hotel industry choose quality of food
and service as the social factor is effectively meet by the selected hotel as they offer consumers
with best service (Griffith, 2018).
Technological factors: The technology is growing speedily and especially in hospitality
industry. Big hotel such as Premier Inn is utilising latest technology to boosts its kitchen
operations. Premier Inn has positive impact of technology as the hotel drive digital supply chain,
robotics, payment transactions, room service and many other technology oriented characteristic
to boosts their customer service and brand image.
Legal factors: In the UK's hospitality industry, the legal laws and regulations has a vital
role. As the hotel industry has to effectively follow with the food safety laws, data security and
privacy laws and many other laws. Premier Inn is the leading hotel chains of UK and is highly
technologically advanced thus, obey with GDPR law. Along with this, the selected hotel also
hold up with hygiene and food safety in the kitchen to abide by with food safety act.

Environmental factors: The environment is leading external factor for the hospitality
industry of UK. UK's government are asked the hotels to minimise the impact of its operations
on the nature and consumers are highly concerned with environment and more prefer the hotels
with greenery look (Bezuidenhout, 2017). Premier Inn has exclusive greenery and sustainability
in the activities and also taken an initiative to reduce carbon footprint.
CONCLUSION
From the above conclusion, it can be concluded that business organisation is the
combination of business and organisation. Business organisation is vital for the production
procedure of goods and services. It increases the efficiency of various section. Their principles
are utilised to reduce the costs of production. So, the profit of business increases. This guides the
businessman which enables how they should meet their financial needs and expand its business.
In this report, it includes the hierarchical structure. Along with this, it also includes SWOT
analysis and PESTLE analysis for evaluating the macro environmental factors which has
occurred after COVID 19.

REFERENCE
Book and journal
Arch, A. and et. al., 2019. Working with Companies, Charities and Governmental Organisations.
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Bala, H. and et. al., 2021. Ownership and governance, scope, and empowerment: how does
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Bezuidenhout, A., 2017. Essential marketing principles for Non-profit organisations: Views of
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Gholami, M. F. and et. al 2017. Challenges in migrating legacy software systems to the cloud—
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Griffith, A., 2018. Integrated management systems for construction: Quality, environment and
safety. Routledge.
Makarfi, U. and Udeaja, C., 2019, September. To formulate a conceptual model for innovation:
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FIFTH ANNUAL CONFERENCE (p. 265).
Nehemia, M. and Zondani, T., 2021. The Use of an Enterprise Architecture Framework to Guide
the Management of Big Data in Health Organisations. In Empowering Businesses With
Collaborative Enterprise Architecture Frameworks (pp. 39-50). IGI Global.
Petersen, F., 2017. Design of a sales management system for organisations with an equal focus
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Rasmussen, J. and Ihlen, Ø., 2017. Risk, crisis, and social media: A systematic review of seven
years? research. Nordicom Review. 38(2). pp.1-17.
Online
(Whitebread, 2021) [Online] Available through; <https://www.whitbread.co.uk/about-us/>
(Premier Inn, 2021) [Online] Available through;
<https://www.premierinn.com/gb/en/why/awards.html>
(Newton, 2018) [Online] Available through;
<http://www.dailymail.co.uk/travel/travel_news/article-5380489/Premier-Inn-cleaners-use-
towel-clean-bathroom.html>