Understanding Business Organisation - Case Study of Travelodge
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This case study discusses the organisational structure of Travelodge, advantages and disadvantages, and internal as well as external analysis of business with the help of SWOT analysis and PESTEL analysis respectively.
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Understanding Business Organisation
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Table of Contents INTRODUCTION...........................................................................................................................3 MAIN BODY...................................................................................................................................3 Organisational structure...................................................................................................................3 Advantages...................................................................................................................................4 Disadvantages..............................................................................................................................5 Business environment analysis........................................................................................................5 SWOT Analysis...........................................................................................................................5 PESTEL Analysis.......................................................................................................................6 CONCLUSION...............................................................................................................................7 REFERENCES................................................................................................................................9 Books and Journals......................................................................................................................9
INTRODUCTION An enterprise which works in the direction for producing products and services in order tomeettherequirementsofcustomersisconsideredasbusinessorganisation.Business organisation have basically four forms such as sole proprietorship, corporation, partnership and limited liability company(Beynon-Davies, 2019). As per the size and fund available with the business they can opt business organisation. The hospitality industry is growing rapidly with this they are contributing large part towards economy. A huge number of employment opportunity is being produced by this industry. The organisational structure selected by companies is also dependent on its size and working environment(Thobela, 2020). The chosen Hotel chain organisation for preparing this case study is Travelodge, which is a private limited company involved in hospitality industry. It was founded in 1973 having headquarter in England, serving acrossUnitedKingdom,SpainandRepublicofIreland.Thiscasestudyincludesthe organisational structure of company along with it's advantages and disadvantages. Internal as well as external analysis of business is being discussed with the help of SWOT analysis and PESTEL analysis respectively. The Pestle analysis also comprises of impact on organisation favourably as well as unfavourably. MAIN BODY Organisational structure The structure which states how activities as well as actions are are going to take place within the organisation in direction to achieve defined aims and objectives is termed as organisational structure(Biedermann, 2021). As per the size and working culture of organisation they followed different organisational structure to continue it's operations. The organisational structure followed by Travelodge isHierarchical organisational structure.The reason behind using this organisational structure is that they are large business unit having large number of employees. The flow of communication in hierarchical structure flows from top to bottom(Samson and Bhanugopan, 2022). The higher level authorises present within the organisation cannot directly connects with the employees working at lower level management. They have to take help of middle level authoritiesin order to deliver it's conversation. The roles and responsibility which each and every employee have to perform is
clearly defined by using this structure. The Hierarchical structure have certain advantages as well as disadvantage which are being mentioned below in context to Hotel Travelodge. Advantages Clear path –The hierarchical structure leads to defining clear roles and responsibility to each employee(Beynon-Davies, 2021). The chances of overlapping of work does not arise because everyone are aware of the work which they have to perform within Travelodge.Thecleardefinedstructureofworkmotivatesemployeestowork collectively in the direction to achieve decides goals and hence productivity enhances.Department loyalty –The management of Travelodge use to divide all the task or activitiesoforganisationamongvariousdepartmentsaspertheircapabilitiesin hierarchical organisational structure. This is how all the employees work in the direction to achieve assigned tasks and organisational goals.
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Disadvantages Costly –There are number of departments within Hierarchical organisational structure this is why they have to make hiring of number of employees which leads to increase in cost of Travelodge(Bridge, Murtagh and O'Neill, 2020).Poor communication –The employees working at higher level of management cannot connect directly with its juniors working at lower level of management. When the lower level management of Travelodge directly wants to share its opinion or something important to higher level of authorises directly they have to take help of middle level management,whichmakesdelayinconveyingtheirmessageandineffective communication takes place. Business environment analysis The business environment comprises of study of internal as well as external factors of business in order to identify the factors which are negatively and positively affecting working of businesses(Cruz-Jesus, Pinheiro and Oliveira, 2019). The business may have to face certain problems which organisation wants to be resolved for this it is important for them to become proactive by analysing the situation on prior basis. SWOT Analysis The SWOT analysis is being performed by the organisations to make evaluation about internal working condition of businesses(FitzPatrick, 2018). The SWOT analysis of Travelodge is stated below - StrengthWeaknesses Knowledgeable staff -Travelodge is having a well trained and well educated mannered staff, whoknownshowtodealwithcustomers effectivealsotoinfluencethem(Lapiedra, 2021). Thegoodbehaviourandattitudeof workforce towards customers makes them feel satisfied and this is how they turns into loyal andrepeatedcustomerofTravelodge. Good connections –The Travelodge has a Competitors–Hotelindustryisgrowing rapidly this is whyTravelodge have to to face the major issue of having lot of competitors. The other industries can overcome then by adding some innovation in its businesses, that iswhy Travelodgehave tobe involvedin continuous innovation and creative in order to retain in market. High infrastructure cost –TheTravelodge
good relations with the influencer present over social media. They help them in promoting its products & services, also they influence its followers to visit the place. have spend a hugesumof cost withinits businesstogiveanewlooktoit's infrastructurewhichresultsinincreasing unnecessary cost. OpportunityThreat More social media presence –The influencer will help in gathering customer base, but with thisTravelodgeshould keep a step ahead on makingitspresenceoverallsocialmedia platforms. Expansion –TheTravelodge is operating at limitedareasthisiswhytheyhaveless customer base if they expand it's businesses they will be able to acquire more customers. Change in consumer consumption pattern – The customers preferences changes anytime so they this is difficult forTravelodge to identify them. Economic crises –The economic crises affects the hostels as they have to remain close for a long period of time in that time customers are not allowed to visitTravelodge hotel. PESTEL Analysis The PESTEL analysis is being performed to identify factors which will affect the business at macro level(Lanz and Brown, 2020).Political Factor –The political factor are those which undertakes with the involvement of government. Positive –The positive thing is that do to have a stable government in UK, Travelodge do not have to make random and rapid changes within its policies, which saves their time as well as cost. Negative –The negative aspect of political factor is due to high tax rates charged by UK government, Travelodge have to increase its prices.Economical Factor –The organisations affected by the en comic changes that are taking place at macro level is economical factor. Positive –The arise of holidays or vacations makes a sudden demand for hotels. At that time frame Travelodge use to increase prices in order to gain more margins.
Negative –Due to arise in the situation of recession the buying or purchasing power of customers declines this is why they are not able to afford the facilities provided by Travelodge.Social Factor –The social factor is defined as the attitude or behaviour of customers towards the consumption of any goods or services. Positive -The Travelodge industry is make use of social media platform in order determine the current trends that is being preferred by the customers. Negative –The negative aspect is that Travelodge does not give attention towards the customers belonging to middle and lower income group this is why they have low customer base.Technological Factor –The technology makes improvement in businesses as with the use of advanced upgraded technology productivity enhances. Positive –The customers are provided with the facility of online booking by Travelodge, this enhances customer satisfaction. Negative –The use of advance technology by Travelodge is expensive enough that is increasing their budget.Environmental Factor –The environmental factor includes climate changes, carbon footprints and many more environmental related factor. Positive –The Travelodge is involved in making use of organic and Eco- friendly products in order to prevent environment. Negative –Travelodge does not pay attention towards reusing of any products they just throw it and pollute environment.Legal Factor –The legal factor are those which undertakes with the involvement of legal bodies. Positive –Travelodge follows all the laws framed by legislative bodies to keep it's image positive in the mind of customers. Negative –At the time of expansion of businesses Travelodge faces many hurdles in following rules and regulations of different countries. CONCLUSION From the above case study it can be concluded that, businesses organisations are the one whoareinvolvedinprovidinggoodsandservicestocustomersdesiredbythem.The organisational structure followed byTravelodge is Hierarchical organisational structure as the size of organisation is large this is why they uses this structure also it is clearly defines the roles
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and responsibility of each individual. The business environment analysis helps in evaluating external as well as internal environment. The analysis is being performed with the help of SWOT and PESTEL for checking environmental conditions. The biggest strength of company is having a good connection with influencers which makes their services promoted among customers. The PESTEL analysis of company comprises of both positive and negative aspects.
REFERENCES Books and Journals Beynon-Davies, P., 2019.Business information systems. Red Globe Press. Beynon-Davies, P., 2021. Investigating Domains of Organisation. InBusiness Analysis and Design(pp. 89-104). Palgrave Macmillan, Cham. Biedermann, M., 2021.The application of high reliability organisation theory in relation to high reliable organisational practice: An air traffic case(Doctoral dissertation, University of Gloucestershire). Bridge, S., Murtagh, B. and O'Neill, K., 2020.Understanding the social economy and the third sector. Bloomsbury Publishing. Cruz-Jesus, F., Pinheiro, A. and Oliveira, T., 2019. Understanding CRM adoption stages: empirical analysis building on the TOE framework.Computers in Industry,109, pp.1- 13. FitzPatrick, D.J., 2018.The collective experiences of middle management when implementing a businesscontinuitymanagementsystemwithintheirpublicsectororganisation teams(Doctoral dissertation, Auckland University of Technology). Lanz, K. and Brown, P., 2020.All the Brains in the Business: The Engendered Brain in the 21st Century Organisation. Palgrave Macmillan. Lapiedra, R., 2021. New Technologies for a New Organisation. InChange and Development in Organisations(pp. 68-76). Routledge. Samson, K. and Bhanugopan, R., 2022. Strategic human capital analytics and organisation performance: The mediating effects of managerial decision-making.Journal of Business Research,144, pp.637-649. Thobela, M., 2020.Aligning Business Processes to the Strategic Goals of the Organisation. University of Johannesburg (South Africa).