Understanding Business Organization: Premier Inn Case Study

This report discusses the organizational structure of Premier Inn, the largest hotel chain in the UK, and the internal and external factors impacting its business environment due to Covid-19 and pandemic. It includes a discussion on various models and theories used by Premier Inn to protect its business environment.

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UNDERSTANDING
BUSINESS ORGANIZATION

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Organisational structure of Premier Inn......................................................................................3
Internal and External factors impacting the business environment of Premier Inn.....................4
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................1

INTRODUCTION
The business organisation defined as structuring the businesses for achieving their goals for
earning profits. The structure of business organisation decides the success of the company like
small or large businesses or partnership and corporation etc (Beynon-Davies, 2021). There are
variety of business organisations and all are functioning differently according to their structure.
The Premier Inn is the British hospitality company and the largest hotel chain of United
Kingdom having its branches across the world. This hotel chain is providing its services
internationally but due to Covid- 19 and Brexit its internal and external business are affected and
in this report we will include the discussion on organisational structure that this company uses
for protecting its environment by various strategies. This report will include sound knowledge
and understanding of a variety of business types and their functions. Further, understanding of all
the internal and external forces impacting the business environment due to Covid-19 and
pandemic.
MAIN BODY
Organisational structure of Premier Inn
Premier Inn is British limited service hotel chain with 800 hotels worldwide and it is the
largest brand of United Kingdom. This is a hospitality company providing its services
internationally with more than 72000 rooms and it is established by Whitbread as Travel Inn in
1987. Organisation structure is the role and responsibilities of the company’s that it uses to
achieve its organisational goals effectively and the Premier Inn has adopted the organisation
structure in which it efficiently manage and coordinate all the departments activities efficiently.
The Premier Inn is recruiting and selecting all the skilled and experienced employees so that the
training need or cost can be cut down and maintaining a structure like right people at the right
place for increasing the efficiency of the work.
This hotel has various branches and each branches a set of HR department and finance
department working separately for taking care of the appraisal, wage or promotion policies of the
company. Premier Inn is has large number of employees working across the country and has its
operations in the city or suburb etc with different cultural diversity. To control this workforce

this company using various leadership style according to the situations prevailing like where the
employees are unsatisfied the leaders are encouraging and motivating them to work according to
the group goals efficiently and effectively. The leaders are involving its employees in various
decision making processes for more advance ideas and thoughts to make its employee to feel
involved and satisfied.
Premier Inn is providing all the opportunities to its all employees for achieving individual
dreams or goals for attaining more satisfaction. This company has separate marketing department
which is advertising its services with various communication channels and product promotion for
more customer satisfaction because customer is the key role of the every company. This Hotel is
providing all the food, lodging, event planning, travel and tourism with well mannered managers
and staffs for greeting the customers. Also providing various packages and discount offers to the
customers and their family to enjoy their holidays and vacations.
Internal and External factors impacting the business environment of Premier Inn
There are various internal and external factors which are affected due to various
uncertainty in the environment due to climate changes or political, conflicts in the employees etc
(Nwachukwu, 2019). The Premier is facing various issues because of Covid-19 or pandemic or
crises in the country and it adversely affected the company’s environment due to lockdown and
shutting down of the businesses. Various internal and external factors are discusses with the help
of models or theories used by Premier Inn to protect its business environment are:
SWOT analysis
This analysis used to describe the internal factors that affects the company’s business
environment and helps in making strategies to overcome from the factors (Cherunilam, 2021).
This theory helps in finding out the strength or weaknesses, threats or opportunities by the
business to use its strength in a way to increase the efficiency of the work or overcoming all the
weaknesses with various plans or strategies the factors are:
 Strength: The premier Inn has great strength like skilled and experienced workers or
employees and having large number of customer with good goodwill worldwide. This is
the biggest strength of the company to fight with its rivals and create competitions to
others with full customer satisfaction due to efficiency in the work (Cao, 2018).

 Weakness: The Premier Inn has to recognise its weak areas by doing the internal
researches and need to improve its weak areas. Employees conflicts and demotivation
increases the inefficiency in the company. This company need to develop their services
and areas of operation so that it can attract as much consumers as it can. Due to
pandemics the employees are leaving the hotels and lockdown created a huge problem
due to no travelling and tourism by the company.
 Opportunity: There are various opportunities prevailing in the market like being a big
brand or largest hotel of UK Premier Inn has sole authority of increasing the price and is
a tough competition in the market worldwide (Li, 2020). Due to covid-19 and lockdown
various small businesses has shut down its operations and many large organisations too
due to heavy losses and loosing of the customers and created an opportunity to the
Premier Inn for having more stable customers and organisations.
 Threat: All the company need to check its internal or external environment like the
threats and due to more competitions in the market (Benzaghta, 2021). Various climatic
changes also a threat or new entity with the same services is a threat to Premier Inn.
Pandemics created huge losses to every company and Premier Inn is working with large
operations or business worldwide created a problem of huge losses in case of uncertainty.
PESTEL analysis
This is framework of analysing the external environment which are affecting the
company’s environment like the climate changes or changes in Government policies, all the legal
policies etc (Pan, 2019). This all affects the business environment of the company the factors
which affects the company’s environment adversely if not carefully investigated.
 Political factors: They are the factors which completely ruin the economy or
organisations environment completely like all the laws, taxation policies, monetary
policies etc (Tsindeliani, 2021). The premier Inn is running its business in various
countries in which all the rules and regulations related to the Government policies or
taxes are different any change in those policies by any country affects the environment of
this firm.
 Economic factors: All the economic factors like employment rates, inflation rates,
interest rates in the company affects the company’s environment like if the people with

less income will not buy or cannot afford the services by the Premier Inn due to big brand
and high prices and the area in which the income of the consumer is stable or high will
automatically increase the profits of the hotel.
 Social factors: This are the main factors which every company need to investigate and
before producing the products or services the company need to do a deep research in the
market for knowing the taste or preferences of the consumer and their types. The premier
in doing all its research in the market like to which type of customers and cultural peoples
the services should be offered to gain profits.
 Technological factors: The upcoming new generations and increasing use of latest
technology is a big fear to the companies with using old fashion machines and methods.
The Premier Inn should use latest technologies to advertise or market its services to
attract its customers as much as it can due to more competitions.
 Environmental factors: Every type of company need to follow the policy of environment
safety due to strict Government laws and World Health Organisations orders (Kravtsov,
2020). Premier Inn need to earn profits with fulfilling all the society needs like no
wastage of natural resources and safety policies of its employees so that they feel safe,
involving in various charitable activities or proper customer care services for fulfilling all
the social responsibility.
 Legal factors: The company operating internationally need to follow the all the laws
which under the contract of company’s laws for protecting the interest of the consumer
(Knickmeyer, 2020). The Premier Inn is paying minimum wages to each employee even
in the times of pandemics to gain the trust of its employees on the company. The Premier
Inn also need to follow the international trading laws for operating its business smoothly
across the world.

CONCLUSION
From the above report it has been concluded that every organisation has different
organisational structures due to its type of organisation. The Premier Inn is a largest organisation
having its operation worldwide in the market and following a organisational structure in which it
has separate departments for all type of functions to work smoothly. Further, this company is
also using various leadership and motivational skills for motivating its employees and following
various models and theories for protecting its business from various external and internal
environment affecting its business due to pandemics. Lastly, it has been concluded that
investigating early or using the various theories efficiently the company can protects its
environment effectively.

REFERENCES
Books and journals
Beynon-Davies, P., 2021. Business analysis and design: understanding innovation in
organisation. Springer Nature.
Nwachukwu, C. and Chladkova, H., 2019. Firm resources, strategic analysis capability and
strategic performance: organisational structure as moderator. International Journal for
Quality Research, 13(1), p.75.
Cherunilam, F., 2021. Business environment. Himalaya Publishing House Pvt. Ltd.
Cao, H. and Chen, Z., 2018. The driving effect of internal and external environment on green
innovation strategy-The moderating role of top management’s environmental
awareness. Nankai Business Review International, 10(3), pp.342-361.
Benzaghta, and et.al., 2021. SWOT analysis applications: An integrative literature
review. Journal of Global Business Insights, 6(1), pp.55-73.
Pan, Chen, L. and Zhan, W., 2019. PESTEL analysis of construction productivity enhancement
strategies: A case study of three economies. Journal of Management in
Engineering, 35(1), p.05018013.
Tsindeliani, and et.al., 2021. Transformation of the legal mechanism of taxation as a factor of
influence on strategic planning of budgetary policy: Russia case study. Journal of
Transnational Management, 26(3), pp.179-200.
Li, Y. And et.al., 2020. The effect of developmental and environmental factors on secondary
metabolites in medicinal plants. Plant Physiology and Biochemistry, 148, pp.80-89.
Knickmeyer, D., 2020. Social factors influencing household waste separation: A literature
review on good practices to improve the recycling performance of urban areas. Journal
of cleaner production, 245, p.118605.
Kravtsov, O., 2020. The image of the future as a political factor. nauka. me, (1).
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