Understanding Business Organisation: A Case Study of Travelodge

This report provides a case study of Travelodge, one of the largest hotel chain organizations in the UK and Ireland. It includes an analysis of the organizational structure, business environment, SWOT and PESTLE analysis, and concludes with recommendations for the company.

Understanding business
organisation

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Organizational structure of Travelodge.......................................................................................3
Business environment analysis....................................................................................................4
SWOT analysis of Travelodge.....................................................................................................4
PESTLE analysis of Travelodge..................................................................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................1

INTRODUCTION
Travelodge is one of the largest hotel chain organization which provides quality assistance
for booking hotels in affordable price segment throughout the UK and Ireland. It also caters the
facility to book over 560 hotels and people can make them effectively utilize by their online
portals (Loizia and et.al., 2021). Similarly, this report will highlight the structure of Travelodge
as having appropriate structure in hierarchy manner is quite essential for organization. It directly
relates to company growth, profit and all success criteria. Furthermore, it would discuss about
the macro and micro factors in depth to know how they influence the environment of business.
The relevant analytical tools like SWOT and PESTLE analysis will be considered to serve the
information about broad assumptions of the chosen organization. The SWOT analysis will cover
the key aspects describing the strengths, weakness, opportunities, and threats of organization. on
the other hand, PESTLE analysis would cover political, economic, social, technological, legal
and environmental factors.
MAIN BODY
Organizational structure of Travelodge
Organizational structure is the crucial factor for every organization which outlines how sudden
some activities are directed in sequence to accomplish goals of company. These types of
activities are consist with roles, rules and responsibilities. The structure also depicts how
necessitate information flows among levels in the company which is usually followed under
hierarchy. In the context of Travelodge there is hierarchical structure which is followed in order
with pre- defined roles and departments (Bismark and et.al., 2018). Mostly, employee have
clearly described roles and responsibilities. The general manager is at top- level and positioning
oversees several departments in the hotel. Each and every department run through medium and
low scale managers as forming up the effective coordination with their employees activities.
Such activities are assigning tasks, gauging the work operations and overall performance for
departments for which they are accountable for.
By following the hierarchical structure signifies chance for business to easily access over
understanding of employee roles and accountability. Clear paths for career and development
prospects are favoured which can further assist employee motivation. There is opportunity for
workforce to specialize and form expertise in their relevant field. Thus, hotel follow this
hierarchy which is followed by senior management, middle managers and workforce at the end.

Whereas the role of employees is clearly stated in work culture as in accordance with other
employees. It enables employee with opportunities to develop and promote which can further
lead to motivation in order to peform well. Mobility between hierarchy levls has certain benefits
organization in many ways.
Business environment analysis
Business environment is the specific term which indicates all the things aligned with
external to firm as well as industry that would impact business and its operations (Kasurinen and
Blomfeldt, 2021). Business environment also encompasses climate and bunch of conditions,
political, social and economic through which business operations are generally conducted.
SWOT analysis of Travelodge
Strengths
Travelodge has strong presence in the areas of UK which forms out the best
strengthening aspect for them. Most of the customer are favoured through online services each
and every month which drives to the competitive advantage for business (Capobianco and et.al.,
2021). they have created the best brand image over certain years as there has been great selling
point for the hotel. They are having strong customer base which drive their better work
efficiency.
Weakness
Operating the business practices in limited number of countries is the weaker aspect for
organization as most of the competitors has gained their quality of outputs in the relevant
marketplaces. The mismanagement issues also indicate the poor working aspects in the overall
company performance. The global presence not as specific as international hotel chain.
Opportunities
The opportunity for hotel lie in the geographic expansion, better communication, service
improvements (Musa and Suryono, 2022). Such measures will allow business to make better
relations with customers who will likely to get the amount of service from Travelodge as
compared to other competitors. However, they can invest in digital marketing to implement
suitable marketing strategies in their context. Such transformation will allow business to conduct
the practices in more lucrative manner which would drive the attention from customers. This will
make higher level of pressure over most of the competitors in marketplaces.
Threats

The increased amount of competitive forces can be stated as threatening aspect for
business. also, changing government policies and alternate product and services are the root for
the causing the majority of threat for hotel. Such high level competitors serve better quality
service through which people always love to make their staycations into their concern.
PESTLE analysis of Travelodge
Pestle analysis highlights various external factors for the organization to clearly understand the
core concerns putting negative impact on business.
Political factors -
Travelodge hotel belongs to most popular global hotel chain, political stability is quite
essential in country to cope up with situation in countries where business operations are being
operated. In that manner if the specific country is not having ability then people will fear to
travel related to any kind of activities that will reduce number of visitors and impact to the
revenue of hotel. Due to pandemic concerns it imposed by countries and tremendously affected
industry which was toughest to deal with (Ma, 2020). For now, countries have identified the
lucrative aspects which forming up the hotel industry to grow and increase in revenue for
Travelodge.
Economic factors –
Economic factors are quite essential for organization to come across with economic
condition of the country while making business expansion at such places. Economic factors
impact hotel industry in both direct and indirect terms. Such factors are not in control of business
but it highly impacts to the business revenue. Travelodge has luxurious hotel chain, and they
must target countries having audience with higher amount of disposable income. Whereas
stability in economic environment is prominent for higher extent of growth in the business.
Social factors –
Travelodge is well- known in terms of their international visitor as finance segment of
hotel is totally affected by several social factor such as consumer life cycle, demographics,
culture, population growth rate, gender ratio and a lot more. The higher level of income increase
the profitability of high amount of spending which is good thing for business (Nyamsuren,
2018). Due to Covid- 19 restrictions most of the people have fear to go out and interact with
people. Whereas it is essential for Travelodge to look over the social factor and make their future
aspects more efficient and stable.

Technological factors –
Technology is continuous improving in the modern growing world as people are highly
influenced with modern technology specifically it is the crucial aspect to attract bunch of
customers to get the valuable service from hotel (Mekhruza and et.al., 2022). Travelodge can
upgrade to latest technology as offering customers with multiple options to choose from.
Legal factors –
Laws and regulations which is usually being obeyed in the country immensely affect the
operations of hotel. The relevant laws like customer, employee and other legal laws must be
charted by the organization in order to minimize the intervention of governmental bodies as well
as NGOs in the business operations. Travelodge should compile with specific laws of country in
which operations are being performed. Whereas government has introduced some laws to tackle
issues allied with pandemic such as managing social distance, and forming up the safety
precautions in the hotel.
Environmental factors –
It is mandatory for hotel to take strategic action towards saving the environment. People
are becoming more sophisticated for the protection of environment. As they keep checking about
the actions being taken by the company towards waste management to protect their environment.
Climate change is the serious concern for Travelodge as various countries has their own policies
and standards that directly impact the profitability of the organization (George, 2021). Thus, it is
essential for hotel to introduce more environmental friendly aspects.

CONCLUSION
From the above report it has been brief analysed about the frameworks likely to be termed as
PESTLE and SWOT analysis. It has been identified that the external factors highly influence and
facilitates understanding of broad business environment. It encourages development of strategic
thinking and external. Travelodge anticipate future business threats and access to suitable action
to prevent and decrease the negative impact. On the other hand, internal factors are also lucrative
for organization to get a detail understanding about their strengths and weaknesses. Travelodge
can capitalize over opportunities by taking major advantage of their strengths. Travelodge can
shape their business practices in order to make them more proficient. Thus, both the framework
highlights how together organization get allied with view of their external and internal aspects.
Also, it allows them to analyse the environment on the bases of several factors to get a holistic
view several possibilities and some threats which exist for them.

REFERENCES
Books and Journals
Bismark, O. and et.al., 2018. Utilizing Mckinsey 7s model, SWOT analysis, PESTLE and
Balance Scorecard to foster efficient implementation of organizational strategy.
Evidence from the community hospital group-Ghana Limited. International Journal of
Research in Business, Economics and Management, 2(3), pp.94-113.
Capobianco, N. and et.al., 2021. Toward a sustainable decommissioning of offshore platforms in
the oil and gas industry: a PESTLE analysis. Sustainability, 13(11), p.6266.
George, R., 2021. Tourism and Hospitality Marketing Planning. In Marketing Tourism and
Hospitality (pp. 149-182). Palgrave Macmillan, Cham.
Kasurinen, K. and Blomfeldt, V., 2021. Restaurant Business Adaptation. Post-pandemic
Scenarios. Subtitle: Case Kupittaa.
Loizia, P. and et.al., 2021. Measuring the level of environmental performance in insular areas,
through key performed indicators, in the framework of waste strategy
development. Science of the Total Environment, 753, p.141974.
Ma, N., 2020. Strategic market analysis for a privacy solutions company (Doctoral dissertation,
California State University System).
Mekhruza, V. and et.al., 2022. PERFORMANCE OF HILTON: HOW HILTON TACKLES
THE EPIDEMIC COVID-19 DISEASE. Thematics Journal of Business
Management, 5(2).
Musa, E.I.O. and Suryono, Y., 2022, January. Learning Challenges During New Normal Era
Using a Combination of SWOT-PESTEL Analysis. In 5th International Conference on
Current Issues in Education (ICCIE 2021) (pp. 358-362). Atlantis Press.
Nyamsuren, K., 2018. Where Does the B&B Fit in a Hotel Industry? Get a Glimpse into the
Case of Mongolia with Suggestions (Doctoral dissertation, NSYSU).

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