Organisational Structure and Business Environment Analysis of Premier Inn

MGBBT0UBN
Understanding
Business Organisation

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Organisational structure of Premier Inn......................................................................................3
Business Environment analysis of Premier Inn Hotel.................................................................4
SWOT Analysis...........................................................................................................................5
Strengths......................................................................................................................................5
Weaknesses..................................................................................................................................5
Opportunities...............................................................................................................................5
Threats.........................................................................................................................................5
PESTLE Analysis........................................................................................................................6
Political Factors..........................................................................................................................6
Economical Factors.....................................................................................................................6
Social or Socio-Culture Factors..................................................................................................6
Technological Factors.................................................................................................................6
Legal Factors...............................................................................................................................7
Environmental Factors................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
This report on case study will be in context with the limited service hotel chain called Premier
Inn which was founded in 1987. It is a subsidiary company of Whitbread PLC. It has hotels at
various locations in countries like UK, UAE, Germany, Ireland, Qatar, etc. It is the largest
hotel brand in UK having around 800 hotels and 72000 rooms. Its headquarters are in
Dunstable, England. Around 70% of Whitbread’s earnings are accounted from Premier Inn. In
this report, the organisational structure of Premier Inn will be examined and the benefits and
drawbacks of its structure over the working and operations of the hotel group. The business
environment of the hotel chain will also be analysed using SWOT analysis(Strengths,
Weaknesses, Opportunities and Threats) and PESTLE analysis(Political, Economical. Social or
socio-cultural, Technological, Legal, Environmental) to identify both favourable and
unfavourable internal as well as external factors, that affect the organisation.
MAIN BODY
Organisational structure of Premier Inn
An organisational structure is a method or system of relationships, roles, responsibilities or
rules that define how the work flows and the activities like supervisions, task allocation, etc.
are directed and delegated to achieve the objectives and goals of the organisation(Roberts,
2018).
Premier Inn has a vertically integrated model or structure that combines the inventory
distribution, hotel operations, brands and ownership of properties. This has helped the hotel
group to grow significantly as compared to competitors. This structure also helped the
shareholders to earn a great return on capital. It also delivered a superior and better customer
experience due to its efficient structure.