Understanding Business Organisation and Environment Analysis of Premier Inn Hotel
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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.
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Understanding Business Organisation
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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 willfacecontinuouscomplexityinthemanagementprocess(Ahmady,Mehrpourand 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).
Continuousdevelopment:Continuousdevelopmentgrowthcanbeseenintall 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:Slowdown:Thespeedofsuccessisslowdownedbecauseoftallhierarchical 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 StrengthThe 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. WeaknessThe hospitality is having issue in their refund process where they
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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. OpportunityThe hospitality industry is growing and developing in definite mannerwherethehotelPremiumInnhasalsogettingan opportunityfromthedigitalizationcandopropermarketing throughthedigitalizationwhereitisprovidingthegreat 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. ThreatAs, 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 creatingthreat for the hotel and an leads them to suffer formless and minimum profit (Harsha and Ramanaiah, 2018). PESTLE Analysis PoliticalThepoliticalfactorincludestherulesandregulationofthe government where it puts the great impact on the hotel industry. Today,asithasbeenalreadyknownthatmodificationin 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.
EconomicEconomic 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. SocialSocial 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. TechnologyThe factor technology is developing and growing in definite manner.However,thetechnologyfactorcanbring thegreat 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. LegalLegal 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 safetyof the consumersfrom where the hospitalitycan increase their reputation and can develop at definite level (Sergei and Alexander, 2018). EnvironmentAt 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.
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REFERENCES Books and Journals Ahmady, G.A., Mehrpour, M. and Nikooravesh, A., 2016. Organizational structure.Procedia- Social and Behavioral Sciences,230, pp.455-462. Claver‐Cortés, E., Zaragoza‐Sáez, P. and Pertusa‐Ortega, E., 2017. Organizational structure featuressupportingknowledgemanagementprocesses.JournalofKnowledge management. Fjeldstad, Ø.D. and Snow, C.C., 2018. Business models and organization design.Long range planning,51(1), pp.32-39. Freberg,K.,2021.PortfolioBuildingActivitiesinSocialMedia:ExercisesinStrategic Communication. SAGE Publications. 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. InOxford Research Encyclopedia of Education. 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.