Organizational Structure and Business Environment Analysis of Premier Inn

This case study analyzes the organizational structure and business environment of Premier Inn, including SWOT and PESTLE analysis. It also discusses the strengths, weaknesses, opportunities, and threats of the hotel chain.

CASE STUDY

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Organization structure of Premier Inn.........................................................................................3
Business environment analysis of Premier Inn............................................................................4
SWOT Analysis of Premier Inn...................................................................................................4
PESTLE Analysis of Premier Inn................................................................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................1

INTRODUCTION
Premier inn is British limited service hotel chain as well as it is UK top most hotel which
has more than 800 hotels all over. The functioning areas of hotel are at several laces such as city
centre, airports with competition in similar way with Travelodge and Ibis hotel with involving
the city centre. The owner of the Hotel Whitbread established it in 1987 by name Travel Inn to
compete with Travelodge. Moreover, Premier Lodge was announced in 2004 and engaged with
Travel Inn to build the present business in name Premier Travel Inn after that in 2007 it was
given the short name as Premier Inn (Volodymyrivna and Andriyich, 2019).
In this case study it would identify the organizational structure of Premier Inn in which it
will represent the functional work of departments who works for achieving the desired
objectives. Also, it will reflect on business environment analysis what is the purpose of business
environment. It will discuss the SWOT analysis in which several aspects of organization will be
considered, and they are internal and external environmental factors which impact business
operations. For evaluating the external environmental factors PESTLE analysis will be useful to
carry out the political, economical, social, technological, legal and environmental elements.
MAIN BODY
Organization structure of Premier Inn
Organizational structure refers to system which outlines certain activities which is
directed in order to conduct the organizational goals. Such activities are consisted of roles, rules
and responsibility and justifies how the information flows between each level in the company.
The main aim of this structure is to describe responsibility as well as authority of several
departments and staff members. Similarly, Premier Inn follows the tall organizational structure
meanwhile manager of each site is the in charge of operations, and they have the wide supporting
network (Bower, 2018). There are internal factors which could affect in the organization, and in
such problems' employee can contact with their heads who are appropriate to handle the
situations. In the organization each and every member are assigned with their roles and
responsibilities and specifically the departments are undertaken by low and medium level
managers. They coordinate with coordinate staff activities, supervise the performance and work.
With the help of precise structure it may avoid unnecessary expenses and make the flow of

operation to work smoothly in effective way with improvement in staff efficiency and
productivity.
Premier Inn culture shows they are the major part of the culture image which they aim to
portray. They make use of pan of control, in which departments have facility to report the
manager in any circumstances. By using the narrow spans of controlling symbolic management
control to supportive managers, head of departments, supervisors for daily issues. There are five
departments in Premier Inn such as room, food and beverages, human resource and accounting as
well as marketing. All departments are responsible for their work and manage their job role in
the individual department. While having 820 hotels in UK and maintaining the organizational
structure of hotel enhance the loyalty towards customers and their attention for staycation as
relation of being served in well manner.
Business environment analysis of Premier Inn
Business environment is concerned with the internal and external factor of the business. It
helps in determining the major internal and external factors of the organization that leads to
create the impact over the performance of business (Prajogo, 2018). Therefore, it is important to
analyse the business environment. Here is the analysis of the business environment of the
Premier Inn hotel has been done within conducting SWOT and PESTLE.
SWOT Analysis of Premier Inn
Strengths
They have branches at various locations which have some key benefits such as nearby to
airport and universities target the tourist as it is easy for them to select the nearby location. After
pandemic some restriction comfort the owner of Hotel, banking on marketing Harness pent-up
and request among customers for staycations for masking the business to recover. Premier inn
has the valuable presence in UK with serving the five million customers in every individual
month.
Weaknesses
The weakening point of Premier inn is the limited global presence as well as compared to
market giants it provides services in limited countries (Czinkota and et.al., 2021). Whereas there
are refund issues in which they have been suspected for refuse to make refund to customers who
make their advance booking and further it went under strict lock downs. In 2018, there were

some hygiene issues in which it was found out housekeeping staff were using same guest towels
for cleaning purpose.
Opportunities
The biggest opportunity for Premier Inn is introducing to new market, whereas making
successful entry in Germany has also got into the political system of Ireland. While having the
28 hotels in Germany, the opportunity forms on the basis of most visited place in the Europe.
Renewing the hotels décors will surprise more guest and also the benefit of getting in budget
price. There are several growth opportunities which Premier can consider increasing their
efficiency (George, 2021).
Threats
The competitors in the same market are the biggest threat for the organization whereas in
the case of Premier Inn the competitor is Holiday Inn as well as Easy Hotel. There are
competitors with same price range category such as Marriott and other independent hotels with
budget pricing. Also, the pandemic has the drastic impact on the performance of Premier Inn and
the same situation will be major challenge for future.
PESTLE Analysis of Premier Inn
PESTLE has been determined as that tool which is mainly used for analysing the external
environment of an organization. It is consisted of those factors that are not in the hand of the firm
and creates huge impact over the performance of the business. Therefore, effective evaluation of
these factors is needed. Here is the PESTLE Analysis of Premier Inn.
Political factor
This leads to determine those factors that are entitled with the policies of government.
Thus, the major political factor that is impacting the hotel is concerned with the tax rate. Higher
tax rate by the government leads to impact the profitability of the organization that further create
the impact over the performance of the business (Dmitrijeva and et.al., 2020). Thus, Premier Inn
hotel has assured keen focus over this and organization is paying tax rate in effective manner. So,
no penalties would be faced by hotel in this context.
Economic factors
At the time of recession period the organization experience the benefits. However, at the
time of depression period which lasts for year the organization faces the issues in relation of the

staff turnover rate and reducing profitability. Thus, this leads to impact the performance of
organization.
Social factors
Change in the preference of the customers might lead to create threat for Premier Inn as
there is chance that customers may shift towards the services of competitors. Therefore, the
organization has adopted the effective marketing strategy in which the needs and demands of the
customers has been analysed and the decision has been taken on the basis of the evaluation
(Cheba and et.al., 2021). This leads to assure effective satisfaction to the customers.
Technological factors
These factor have provided the positive impact over the hotel as currently the hotel is using
effective technologies in context of providing luxurious services to the customers. Online
booking have been provided by the organization Furthermore, Premier Inn assures effective
focus over adopting the latest technologies. As a result, organization is experiencing numerous
benefits.
Legal factors
In accordance with the legal factors the organization has to provide focus over adopting
healthy and safety legislation for the employees and customers as well. Also, the legislation
related to the working hours, fix wage rate has to be followed in the organization. Otherwise, this
leads to create the penalties for hotel that may create huge loss.
Environmental factors
These factors are aligned with performing the practices towards environment. The
Premier Inn hotel is performing corporate social responsibility towards environment (Prentice
and et.al., 2021). It is enabling organization in terms of performing their practices towards
environment. It is highly important to perform the ethics and values towards environment.
Otherwise, it may lead increase the interference of the government.

CONCLUSION
From the above report it has been identified that business environment of organization
which shows positive trends in which entity is interacted in hotel industry as well as drastic
environment had been disadvantage. It will analyse the business environment of Premium Inn
which provide service in 800 plus hotels across the nation.
For summarizing the internal business environment factors Swot analysis has been used
to describing it in detail, their strengths, weakness had been articulated. In similar way the
opportunities and threat factor for hotel were also executed. Where it seems the several
opportunities are available for organization to making place in the new markets. It was found out
that extending to Germany made the positive outcomes and growth opportunities.
For the external business environment factors PESTLE analysis has been executed in
which Premier Inn work as major hotel facility provider of the nation while considered.
According to this aspect political, economic, social, technological, legal and environmental were
discussed. It supports for revealing the current market analysis and the potential impact over the
performance of the organization.

REFERENCES
Books and journals-
Bower, J., 2018. Whitbread: Routines and resource building on the path from brewer to
retailer. Management & Organizational History. 13(1). pp.1-23.
Cheba and et.al., 2021. Impact of external factors on e-commerce market in cities and its
implications on environment. Sustainable Cities and Society. 72. p.103032.
Czinkota, M.R., and et.al., 2021. Marketing Planning. In Marketing Management (pp. 43-90).
Springer, Cham.
Dmitrijeva and et.al., 2020. Context matters: how internal and external factors impact
servitization. Production Planning & Control. 31(13). pp.1077-1097.
George, R., 2021. Tourism and Hospitality Marketing Planning. In Marketing Tourism and
Hospitality (pp. 149-182). Palgrave Macmillan, Cham.
Prajogo, D.I., 2018. The strategic fit between innovation strategies and business environment in
delivering business performance. International journal of production Economics. 171.
pp.241-249.
Prentice and et.al., 2021. Relevant, or irrelevant, external factors in panic buying. Journal of
Retailing and Consumer Services. 61. p.102587.
Volodymyrivna, F.S. and Andriyich, T.S., 2019. DEVELOPMENT TRENDS OF HOTEL
CHAINS IN THE UKRAINE. ENTERPRISES IN THE MODERN BUSINESS
ENVIRONMENT 9. p.22.
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