Understanding Business Organisation and Environment Analysis of Premier Inn Hotel

This report discusses the organizational structure of Premier Inn, its business environment analysis including SWOT and PESTLE, and their impact on the management process. The report also provides an in-depth analysis of the strengths, weaknesses, opportunities, and threats of Premier Inn.

Understanding Business
Organisation

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Organizational structure of Premier Inn..........................................................................................3
Business Environment Analysis of Premier Inn Hotel....................................................................4
Swot Analysis..............................................................................................................................4
PESTLE Analysis........................................................................................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business organization is one of the widest term, this may include business structure and its
function. Business do not simply mean to sell goods and service and earn profit, this also means
creating value with business activity. This study is based on Premier Inn, this company is the
largest hotel chain brand that have more than 7200 rooms available within 800 hotels listed
operate in almost every part of the UK (Fjeldstad and Snow, 2018). Premier Inn start from mid
range to luxury room suite that satisfy the need of guest, this hotel chain service luxurious
experience with quality of professionalism.
One of the biggest advantage carried by Premier Inn is location of every hotel listed, from
city centre to famous place, this hotel meet all expectation of traveller from all around the world.
This report will discuss organizational structure of Premier Inn and will provide in depth detail
of structure with benefit and drawback. Later this report will discuss environment analysis
including SWOT and PESTLE to understand the factors that impact the company and their
business management process. At last each element of SWOT and PESTLE will be considered
and analyse their impact on hotel and their management process.
MAIN BODY
Organizational structure of Premier Inn
Every business organization have unique way of managing their process and every day
activity, structure of business decide whether the firm will survive the market condition, or they
will face continuous complexity in the management process (Ahmady, Mehrpour and
Nikooravesh, 2016). Premier Inn is one of the largest hotel chain group that have their own
organizational structure, however, this hotel chain is managed in the form of tall hierarchical
structure that flow power from up to down. There are certain benefit and drawback of tall
hierarchical organizational structure, these are:
Advantage: Healthy workplace: Workplace healthiness can be seen in tall hierarchical organizational
structure where manage and employee work effectively by coordinating in the best
possible way, manager carry more power than employee that allow them to make
decision and influence productivity of employee (Claver‐Cortés, Zaragoza‐Sáez and
Pertusa‐Ortega, 2017).

 Continuous development: Continuous development growth can be seen in tall
hierarchical organizational structure where board of director take decision that influence
work of manager (Saiti and Stefou, 2020). In Premier Inn, decision are taken by board of
director later manage influence these decision and allow employee to work according the
requirement provided by the head of the organization.
Disadvantage: Slow down: The speed of success is slow downed because of tall hierarchical
organizational structure because decision made by board of director sometimes delay and
manage provide no further direction to employee leading to slow process of management.
Premier Inn face this issue because of their organizational structure, but they manage it
with own decision taken by manger (Widhiastuti, 2016).
 Ineffective decision: Tall hierarchical organizational structure do not allow employee to
make decision which impact smooth flow of process, Premier Inn and its employee feel
left out when no power is provided to make their own decision and manage their work
which become the biggest drawback for the company.
Business Environment Analysis of Premier Inn Hotel
To run any kind of business, it is important to understand the business environment at first where
the Hotel Premium Inn has to analyse the business surrounding of their hospitality in definite
manner where at below mentioning he internal and external analysis of the hospitality.
Swot Analysis
Strength The hotel Premium Inn is located in UK where it has establishes
different branches and growing in rapid manner. The hospitality
has the strength of their customer services where they fulfil the
desires of the consumer and guest and make them comfortable to
enjoy their luxury (Freberg, 2021). Along with this, they also had
a long or huge network of supply chain and distribution which
also helps them to develop accordingly.
Weakness The hospitality is having issue in their refund process where they

refuse to refund back as per their policy where many customers do
not like this policy and make difficulty for the hotel to build a
good and reputed relationship among customers. Along with this,
the inefficiency of global presence takes place of the hotel where
the hospitality does not have larger number of hotel chains.
Opportunity The hospitality industry is growing and developing in definite
manner where the hotel Premium Inn has also getting an
opportunity from the digitalization can do proper marketing
through the digitalization where it is providing the great
opportunity for the hotel to grow and develop themselves in wider
manner and can increase their brand and hotel fame all over the
world. Also from this, they are able to attract the new customer
and can increase their brand image and name in definite order and
lead the hotel to grow effectively.
Threat As, it has been already known that the hotel Premium Inn is able
to grow themselves accordingly and also has spread their brands
in overall UK where the increase competition in the market is
creating threat for the hotel and an leads them to suffer formless
and minimum profit (Harsha and Ramanaiah, 2018).
PESTLE Analysis
Political The political factor includes the rules and regulation of the
government where it puts the great impact on the hotel industry.
Today, as it has been already known that modification in
legislation by the government in regard to hotel industry, the
hospitality Premium Inn also will get the huge impact like rising
of tax in export and import or inflation where it will provide the
great impact on the productivity of the hotel.

Economic Economic factor includes the inflation rates and deflation values
where the hotel Premium Inn can get the impact in wider manner.
As, it has been known already that if the inflation occurs the hotel
industry will get the impact and creates difficulties for them to
grow and develop accordingly (Leroi-Werelds, Verleye, Line and
Bove, 2021). Also, the increase in interest rate can minimise the
unemployment and can provide the result in effective manner.
Social Social factor includes the age, sex, gender, society and population
and more where it also can put the great impact on the hotel
productivity. The hotel Premium Inn directly targets the occasions
where people likes to come along their family members and
friends and the holidays where the hotel industry put focus on the
occasion and event in definite manner and put efforts to earn
maximum amount of profit in wider manner.
Technology The factor technology is developing and growing in definite
manner. However, the technology factor can bring the great
impact on the hotel Premium Inn. The hotel industry is using the
technology in wider manner from where the hotel can market and
share the information and offers with the help of internet things
such as blog, social media and such more.
Legal Legal factor includes the legal laws and legislation which is
required to be implemented and followed by the hotel industry so
that they cannot be able to get the negative impact on the hotel. As
a hotel, the Premium Inn has to follow all the laws related to the
food and beverages menu and requires taking care of the health
and safety of the consumers from where the hospitality can
increase their reputation and can develop at definite level (Sergei
and Alexander, 2018).
Environment At a hotel, family members and consumer comes to visit the new
places and for spending their holidays in definite order where the
hospitality industry also requires to adopt the sustainability at their

organisation where nowadays people or consumers are demanding
this sustainability in wider manner and only stays where the hotel
is taking care of the nature and environment definitely.
CONCLUSION
This report has discussed business organization and its importance in the world for goods and
service. Later this report has introduced chosen organization, Premier Inn is one of the largest
hotel chain with a thousand of room and a hundred of hotel listed. This company owns most of
the hotel in every corner of the UK, with super luxury and professional service, this company
aim to become most famous hotel chain. Later this report has discussed organizational structure
of Premier Inn that include tall hierarchical structure, this is one of the most stable structure that
allow business to enjoy continuous growth.
Later this report has discussed SWOT analysis that provide details of strength and
weakness carried by the hotel and opportunities and threat that impact business and its working.
At last PESTLE analysis is been discussed with aim to understand impact of external factors
including political factor, social, economical and other factor that have great influence on the
business and its decision and impact their position in the market. Action of Premier Inn is been
analysed to manage these factor and its influence on the management process of Premier Inn.

REFERENCES
Books and Journals
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Claver‐Cortés, E., Zaragoza‐Sáez, P. and Pertusa‐Ortega, E., 2017. Organizational structure
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Fjeldstad, Ø.D. and Snow, C.C., 2018. Business models and organization design. Long range
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Freberg, K., 2021. Portfolio Building Activities in Social Media: Exercises in Strategic
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Harsha, H.S. and Ramanaiah, G., 2018. A Study on Cost Control Analysis at KS&DL,
Bangalore.
Leroi-Werelds, S., Verleye, K., Line, N. and Bove, L., 2021. Value proposition dynamics in
response to external event triggers. Journal of Business Research.136, pp.274-283.
Saiti, A. and Stefou, T., 2020. Hierarchical organizational structure and leadership. In Oxford
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Sergei, S. and Alexander, S., 2018. Bromic Heating Co business exposure project to the Chile
market. Economics, Management and Sustainability.3(1), pp.79-93.
Widhiastuti, H., 2016. The effectiveness of communications in hierarchical organizational
structure. International Journal of Social Science and Humanity, 2(3), p.185.