Organisational Structure, SWOT and PESTLE Analysis of Premier Inn

This report discusses the organisational structure, SWOT and PESTLE analysis of Premier Inn, a leading British limited services organisation in the hospitality industry. It highlights the company's strengths, weaknesses, opportunities and threats, and the external factors affecting its growth. The report also sheds light on the internal environment of the business and its impact on the company's success.

MGBBT0UBN UNDERSTANDING
BUSINESS ORGANISATION
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TABLE OF CONTENTS
Introduction...............................................................................................................................3
Organisational structure........................................................................................................3
SWOT Analysis:...................................................................................................................4
PESTLE................................................................................................................................5
Conclusion................................................................................................................................6
References.................................................................................................................................7
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Introduction
The business refers to the structure of the organisation which offer wide range of the product
and services to the customers in order to satisfy them in effective as well as efficient manner.
The present report is based on the premier inn organisation which belongs to hospitality
industry. Basically the premier inn is one of the leading British limited services organisation
which is founded in the year of 1987 by the Whitbread. The headquarter of the organisation
is in England, united kingdom. The company is offering wide variety of the hospitality to
the customers of domestic as well as international marketplace. The organisation is having
more then 72000 rooms and 800 hotels all over the world. In the current period of time the
organisation is generating higher profit from the marketplace. In order to increase the
profitability the organisation keep expending the business all over the world. Currently the
organisation is maintaining higher standard by offering quality services to the customers.
The report will highlight the organisational structure in effective as well as efficient manner.
Furthermore the study will shade a light on the internal as well as external environment of
the business organisation that also includes pestle and swot analysis of the organisation.
Main body
Organisational structure
premier inn is renowned for the hierarchal organisational structure of the company due to
that the company is able to accomplish the goal in effective as well as efficient manner.
With the assistance of organisational structure the company is able to manage the service of
the association in an appropriate manner. The organisational structure allow the company to
bring the coordination and cooperation among the workers working within the firm.
Furthermore it deliver assistance in improving the brand value of the company and allow to
obtain the continuous success in the different marketplace. In general the organisational
hierarchical structure play crucial role in success of the business enterprises. The hierarchical
structure of the organisation allow the mangers of the association to form the strategy and
take action for the welfare of the company in adequate manner (Su, Chen and Wang,2019).
Due to the best organisational hierarchical process the workers of the organisation asks able
to perform better in the company and increase the productivity as the manger of the
association deliver huge support to the employees. The higher authority of the association
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coordinate with the employees and treat the workers as the assets of the company rather than
treating them as the liability or debt on the association. For the better outcomes from
different market segment the responsible person keep providing training and development
programme to the workers of the association. Due to that the company is able to satisfy the
large numbers of the customer and also enhance the experience of the bistros with the hotel.
The organisational structure of the company deliver huge support to the workers and keep
encouraging the employees to accomplish the goal of the hotel. The organisational structure
of the company formed alignment with the workers of the organisation in order to maintain
the positive culture in the company ( Camilleri, 2018).
SWOT Analysis:
Called as situational analysis is a framework used to help an organization to identify its
internal factors i.e. strengths & weaknesses and external factors i.e. opportunities & threats.
The case study further discussed the elements of SWOT analysis and its impact on Premier
Inn Hotel during pandemic.
 Strength: The reputation of the company is its biggest strength. Its standard services
and the customer handling strategies with a satisfactory experience are the fulcrum of
its fame. Quoted hotel having more than 850 hotels and around 80,000 rooms
providing enormous and different locations for their customers (Benzaghta and et.al.,
2021). Spacious rooms played a crucial role when handling the clients during the
Covid-19 guidelines. Another strength of the company is good brand image in the
market area which has helped the organization in order to attract large customer.
 Weakness: One of the biggest drawback of the above quoted hotel is the biggest
competition prevailing in the hotel industry. Sharp downfall in the booking due to the
pandemic forced closures across the group of White bread and faced a huge loss of
£725m (Baki, 2020). 17% fall in the share prices was witnessed. Another weakness
of the company is that it do not make use of innovative services and due to that
there has been negative effect on the sales of organization.
 Opportunity: With the ease in Covid-19 protocols, UK market has forecasted a
significant boom because of broad customer reach. The firm was overbooked due to
summer-vacation and special campaigns. Hotel chain is planning to open properties
in Germany with Clean Protect enhanced cleaning regimes and contactless dealing
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which will enhance their market share and profitability (Filimonau and
Magklaropoulou, 2020). One of the biggest opportunity that company have is it can
collaborate with travel agency as it will help in expanding their business as well as
increasing the revenue.
 Threats: Except pharmaceutical industry, each industry has been badly affected
during pandemic. Hotel's biggest threat was closure of its hotels due to lock down
which forced them to cut jobs. The biggest threat company has faced is pandemic due
to that it was shut down for several months. Although due to Covid -19 there has
been shift in customer taste and preference which as affect company growth. The
company has to conduct market research in order to identify and understand the
demands of consumer as well as market trend.
PESTLE
This also known as Strategical tool which help company in identifying external factor that
are available in the market area. Along with this, it is an acronym of political, economic,
social, technological, legal and environmental.
 Political: This factor is consist of rules and regulation made by government and it
need to be followed in order to survive. Along with this, due to recent policy of
restriction on trade Premier Inn hotel was not able to conduct their business. Such
policy affect the performance of company in negative way (Achinas and et.al.,
2019). Although if taxation is reduce from hotel industry then it can lead to luxury
and high quality hotels investing their capital in developing the more guest area.
 Economic: The hotel industry helps in contributing to the economic factor of the
country in effective manner. Along with this, it is important for the company to open
their business in country with good GDP rate as people there will be having high
income lifestyle and they will like to invest more in the luxury services (Widya
Yudha, Tjahjono and Kolios, 2018). However, lower interest rates will promote
cheaper debt and discourage saving in order to boost consumer spending.
 Social : This factor is consist of consumer taste and preferences and the current
market trends. Although Airbnb is the largest competitor of hotel industry as it offer
hospitality services at lower prices rate. Thus, premier inn need to focus on the needs
of customer and come up with innovative idea in order keep them satisfy. Along
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 Technology: The company is making use of digital marketing like social media in
order to promote awareness about the services of organization (Shtal and et.al.,
2018). Along with this, it is advantageous and disadvantageous for company as well
as it is the best communication tool.
 Legal: The company is following all the laws related to business such as
employment law, company act in order to avoid intervention of government and to
maintain their brand image.
 Environmental: Premier inn is following CSR activity as a contribution towards
building and developing society (Saudi, 2021). Along with this, the firm make use of
energy saving lights and water efficient showers in order to decrease wastage of
natural resources.
Conclusion
From the above report it will be concluded that the organisation is generating higher profit
by offering valuable services to the potential customers. The organisation is having great
value in domestic as well as international marketplace. The presented report elaborated that
the organisation has the potential to expend the network and organisation in different market
segment. Along with that the company has various competitive advantages due to that the
company can grab more opportunity for from different marketplace. Along with that the
report highlighted that the organisation need to focus on some areas for the further important
due to that the company is able to deal with the forthcoming challenges. Apart from that it is
determined from the analysation is that the company is facing high competition in different
marketplace. Furthermore the report elaborated that the organisational structure is one of the
major factor the company is serving in the marketplace as the top management deliver
support to the employees which contributes in increasing the employability of the
association. On the other hand the organisation has the opportunity to attract more customer
toward the services of the organisation and increase the goodwill of the organisation. The
report shade a light in the external environment which deliver positive and negative impact
on the growth scale of the premier inn hotel.
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References
Achinas, S. and et.al., 2019. A PESTLE analysis of biofuels energy industry in
Europe. Sustainability. 11(21). p.5981.
Baki, R., (2020). Analysis of factors affecting customer trust in online hotel booking website
usage. European Journal of Tourism, Hospitality and Recreation. 10(2). pp.106-117.
Benzaghta, M. A. and et.al., (2021). SWOT analysis applications: An integrative literature
review. Journal of Global Business Insights. 6(1). pp.55-73.
Camilleri, M.A., 2018. The tourism industry: An overview. Travel marketing, tourism
economics and the airline product, pp.3-27.
Filimonau, V. and Magklaropoulou, A., (2020). Exploring the viability of a new ‘pay-as-
you-use’energy management model in budget hotels. International Journal of
Hospitality Management. 89. p.102538.
Saudi, M. H., 2021. Risk Management Analysis for ICT Strategic Plan by Using PESTLE: A
Case Study. Turkish Journal of Computer and Mathematics Education
(TURCOMAT). 12(8). pp.1732-1737.
Shtal, T. V. and et.al., 2018. Methods of analysis of the external environment of business
activities. Revista Espacios. 39(12).
Su, Z., Chen, J. and Wang, D., 2019. Organisational structure and managerial innovation:
the mediating effect of cross-functional integration. Technology Analysis &
Strategic Management, 31(3), pp.253-265.
Widya Yudha, S., Tjahjono, B. and Kolios, A., 2018. A PESTLE policy mapping and
stakeholder analysis of Indonesia’s fossil fuel energy industry. Energies. 11(5).
p.1272.
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