Understanding Business Organization: Organizational Structure, SWOT Matrix, and PESTLE Analysis of Premier Inn

This report discusses the organizational structure of Premier Inn, a successful hotel chain, and evaluates its SWOT matrix and PESTLE analysis. It also emphasizes the importance of considering various macro-environmental factors before deciding on the best organizational structure for a business.

Understanding of the
business organization

Table of Contents
INTRODUCTION .............................................................................................................................3
Organisational structure of the chosen company...........................................................................3
SWOT matrix of the respective company.....................................................................................4
PESTLE Analysis .........................................................................................................................5
...........................................................................................................................................................7
CONCLUSION .................................................................................................................................7
REFERENCES...................................................................................................................................8

INTRODUCTION
Business organisation is considered as an act of bring the required resources and exploit
them in most effective manner so that organisation can product and distribute the commodities ans
service to earn profit by proving a great customer satisfaction (Chen and et. al., 2022). A business
can be established in different form. It may be managed by a group, government, individuals and
other parties. So, on, basis of the ownership and management, a business organisation can be
categorised into various form including partnership, sole trading, public enterprise, multinational
company, joint stock company and co- operative society. Company chosen in this report is
Premier Inn which belong to British hospitality organisation Whitbread PLC and employ more
than 10000 people. UK hospitality brand Premier operates it business more than 700 hotel in UK
and also expanded the business activities to Ireland, Germany, Qatar, United Arab. This report
will be based on the organisational structure of the chosen organisation. It will also include the
PESTLE Analysis and
Organisational structure of the chosen company
All types of the business uses the organisation structure in which they define a particular
hierarchy at workplace. A successful business structure defines job role of every employee and
how it fits with overall system in organisation. There are various organisational structure exist in
business world that help the company to attain their goals. Every business adopt the business
structure based on their organisation size and type. Put simply, an organisational structure at
workplace lays out who does what so the firm can meet its goals and objectives (De la Chaux,
2021).
Premier Inn has adopted the tall organisation structure in which manager of all site is in charge of
business operations, they have great support network. In this, depending on complexities of an
issue or problem, worker can contact the individual at an appropriate level of this structure, for
assist and advice. In respective organisation, members of the high management make themselves
accessible at all the times. Firm intranet is easy to get to to all members of their workforce and has
information on al the aspects of respective hotel working life, from the legal permit to the general
advice. It very suitable for the Premier Inn, but sometime it create many challenges for th them.
Therefore in context of the respective company there are some advantage and disadvantage of the
tall organisation structure which are mentioned below:

Advantages- In this role at workplace are assigned to over more managerial layers. Premier Inn
define specially their role and the authorities in order to reduce decision making burden on the
more senior management (Fitzgerald, White and Chung, 2021). (Fu, Zhang, and Chen, 2022).
Disadvantages- In this, every communication and decision has to go through various managerial
layers. For instance, Premier Inn have to go through a long chain to take decision in case of arising
any issue in lower layers.
SWOT matrix of the respective company
Strength Weakness
 Premier Inn is engaged in various
business operation and acquisition
which generate more earnings for the
firm.
 International experience, great location
for several of its hotels, diversified
portfolio and superior consumer
services are strength of the respective
hotel.
 Whitbread, being a hotel chain whose
interest cover various categorise and
region have more stable and effective
cash flow prospects (Hunt, Sarkar and
Warhurst, 2022).
 Currently, weakness of this hotel chain
can be observed from its being the
operator of several hotel brands, the
potential conflict for certain of its
owners and operator may arise.
 Respective hotel has failed to take
benefit of the vertical integration that
reduces its operation and production
cost instead of concentrating on the
horizontal integration that tends to
reduce the competition.
 Limited global presence is another
weakness of the Premier Inn as it
operate in a limited number of the
nations.
Opportunities Threat
 Premier Inn has established a reputed
name in the hotel industry, so
acquisition and merger not merely in
hotel operation as well as in other
businesses like travel and restaurant will
be easier for the growth strategies.
 Demands for the hotel service will
shrivel further if the regional and global
economic recession persists. The
geopolitical uncertainties like terrorists
attack also big threat to the respective
hotel.

 With its understanding in the operation,
there are various opportunities in
scattering its operation over different
regions at it did in the Asia by opening
hotel within Dubai.
 It has around 28 hotel within Germany.
This nation offer further growth
opportunity for hotel as it is most visited
nation in the Europe
 There is risk of the poor training in
within international units and a shortage
of the skilled lobar.
 Advancement in the information and
communication expertise allow the
businessmen to stay in office than
travel. So, it create a loss for the Premier
Inn.
PESTLE Analysis
It is a instrument that use widely used by the business managers to analyse certain critical
factors. It is helpful for the development of organisational strategic decision making. PESTLE
analysis of Premier Inn underneath critically evaluates and identifies various strategic in dynamic
and competitive environment.
 Political factors- Pragmatics and positive collaboration with the UK administration has
brought the hospitality sector into key victory area of the economic development.
Government policy of UK are in favour of the hospitality industry. Thus it impact the
Premier Inn in a positive way. Respective company also enjoy the political stability in this
nation as government regulation and other policies are very stable in United Kingdom.
 Economic factor- Economic recession within UK makes it difficult for people to spend
within hospitality industry. However, for the Premier Inn, economic catastrophe conveyed
certain benefits. The budget hotels are viewed as inferior goods therefore during
recession; demand for services Premier Inn provide could rise and at least will be fewer
impacted than the superior high end hotel (Rane and Narvel, 2021).
 Social factor- Premier Inn is concerned with the customer satisfaction and keeping
revitalizing its business approach with the changing customer preferences and social
values. Respective hotel offer to its customer 100% spending back assurance of good
quality room, friendly services and comfortable surroundings. There are committed for
understanding its customer better than other.

 Technological factor- As way of the communication are changing to the web based
techniques, therefore, Premier Inn is as well maintaining an interactive and good look
online website in the regard of it. In this hotel, online reservation facilities are also
available. Premier Inn uphold a database of the customer and continuously keep sending
the messages related to new product offering and other promotional campaign (Saqib and
Satar, 2021).
 Legal factors- To avoid the legal issue and maintain a high standard Premier Inn have
developed “Responsible Sourcing Policy”, that define bare minimum standard and
principles of the cooperation that respective company expect from its supplier, business
partners and contractors. This company also set out a commitment to work with the
suppliers as significantly, to support functioning of Policy.
 Environmental factor- A well-built emphasis on the corporate social responsibility is
major core competencies of the Premier Inn. This company has developed a strong
corporate social responsibility strategy for “Good Together and Whitbread way forward.
Premier Inn's approaches to surroundings is guided by its energy policy and environment
policy, which contain certain principles that they are mandatory to comply

CONCLUSION
From the above report it is concluded that in organisation, a business structure play vital
role as it outline how organisational specific activities are directed so that company can attain their
goals. This report is based on Premier Inn hotel which a successful chain of the hotel. It has
opportunity to expand its business in other countries specially Germany. It also identify certain
macro environmental elements that could affect its strategies and decision making. Sudden
changes in the tax, reducing or increasing trade barriers, imposition of the laws, changes in the
political environment and many are essential element which need to be identified by the
organisation as these changes could bring negative or positive impact on organisation. Therefore,
it is suggested to senior leaders of an organisation must consider variety of the element before
deciding that what kind of the organisational structure is best for their business such as industry,
business goals and culture of their company. This practice of the company will be helpful for them
to survive effectively and efficiently in the market for a long time period

REFERENCES
Books and Journals
Chen, W. and et. al., 2022. Deconstructing Socioemotional Wealth: Social Wealth and Emotional
Wealth as Core Properties of Family Firms. Management and Organization Review,
18(2), pp.223-250.
De la Chaux, M., 2021. Promoting sustainable entrepreneurship through business incubators,
accelerators and innovation hubs.
Fitzgerald, A.M., White, C.D. and Chung, C.C., 2021. Organization Planning for Successful
Development. In MEMS Product Development (pp. 81-92). Springer, Cham.
Fu, Y., Zhang, L. and Chen, Y., 2022. Coping With Institutional Complexity and Voids: An
Organization Design Perspective for Transnational Interorganizational Projects. Project
Management Journal, 53(1), pp.49-66.
Hunt, W., Sarkar, S. and Warhurst, C., 2022. Measuring the impact of AI on jobs at the
organization level: Lessons from a survey of UK business leaders. Research Policy,
51(2), p.104425.
Rane, S.B. and Narvel, Y.A.M., 2021. Re-designing the business organization using disruptive
innovations based on blockchain-IoT integrated architecture for improving agility in
future Industry 4.0. Benchmarking: An International Journal.
Saqib, N. and Satar, M.S., 2021. Exploring business model innovation for competitive advantage:
a lesson from an emerging market. International Journal of Innovation Science.