Understanding businesses organization

This report discusses the organizational structure, business environment analysis, SWOT analysis, and PESTLE analysis of Premier Inn Hotel. It also highlights the impact of pandemic on the hotel industry.

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Understanding Business
Organisation

Table of Contents
Introduction......................................................................................................................................3
Organisational Structure of the Premier Inn Hotel.........................................................................3
Benefits & Drawback of organization structure..........................................................................4
Business Environment Analysis of Premier Inn Hotel....................................................................4
SWOT Analysis...........................................................................................................................4
PESTLE Analysis........................................................................................................................5
Conclusion.......................................................................................................................................7
References........................................................................................................................................8

Introduction
As per the current scenario, market situation is fluctuating because of uncertainty of covid-19
pandemic so it is necessary industries to understand & analyze the organization and business. In
the covid pandemic period, the market of each and every industry declined adversely and their
sales became low. In case of hospitality industry, the whole market of the industry affected
which provide adverse impact on the revenue of the industry (Ahmad and Murray, 2019).
Hospitality industry is work combined with the service industry and offering various types of
services like accommodation, food and beverage, restaurants, resorts, hotel & bars. This report is
based on the Premier Inn hotel that is is popular and luxurious established in Dunstable, UK and
founded in 1987. The prime purpose of the report is to impact of internal and also external
environmental factors and also the impact of these dishes environmental factors on the hotel
because of pandemic. Moreover, this report will utilize environmental analysis techniques &
conduct SWOT analysis & also PESTLE analysis to identify the influence of these factors on the
business. Environmental analysis techniques are helpful to analyze the internal and external
situation of the business so that companies can appropriately take competitive advantages.
Organisational Structure of the Premier Inn Hotel
To improve the effectiveness of the enterprises & maintain each and every operational
activities systematically are more possible with the help of an effective organizational structure.
Basically organizational structure is work like a strategically and structural framework which can
useful to improve the flow of communication and information among employees so that they can
easily e connect with their superiors and managers in order to share their views, take appropriate
feedback, discuss their problems (George, 2021). There are various types of structure following
were the most of the enterprises like flat structure, hierarchical structure, tall structure, functional
structure, dimensions structure, matrix structure. In case of Premier Inn hotel , tall organizational
structure is adopted by the HR manager because this structure is most convenient organizational
structure which can useful to manage every critical and simple task why the employees in the
hotel. Manager and leaders of the hotel are responsible to improve the considerations and
maintain a flow of communication with their employees so that they can appropriately discuss
specific issues and factors with their superior and subordinate in order to obtain an organizational
objective. Organizational structure is most suitable for the HR manager because it can help to

maintain the effectiveness of the hotel. In tall structure, hotel can break down in to specific
distinct hierarchy and maintain top level , middle level and lower level of employees activities
(Goyal and et. al., 2017).
Benefits & Drawback of organization structure
In perception of the advantages of this framework, the strong entity, top management
make choices, keep a good line of authority and propose the command and control activities and
increase the efficient communication because then upper and middle approach can easily make
contributions to the organization's strategic decision processes to increase the This framework
supports the improvement of staff productivity and responsibility (Grassi and Vallati, 2019).
With regard to the negative and massive corporate structure, there are several
administration divisions that it takes more opportunity to determine on how to reach the staff
which is seen as the principal disadvantage of such a structure. Personnel and employees are
unable of taking choices without the consent of their bosses and supervisors. Workers in a wide
range of organisations have the feeling that they are detached from high-level personnel, since
they are genuinely linked to one another (Huijer, 2018).
Business Environment Analysis of Premier Inn Hotel
The work environment includes all the different variables affecting the activities both
within and without company. By analysing the market cultural environment, the company may
improve its work, including consumers, macroeconomic conditions, workers, and behaviour
marketing laws in terms of enhancing production adequately in addition to taking more
comparative benefit.
SWOT Analysis
This assessment seems to be the new framework beneficial for assessing vulnerabilities and
advantages in addition to reduce risks to companies in order to get additional possibilities.
 Strength - The greatest aspect of this restaurant is that even the Premier Inn hotel seems
to be the world ’s leading hotel retailer in the United Kingdom with over 700 hotels

approximately 50,000 accommodations. This restaurant has been awarded the British
travel luxury hotel of each year. The resort boasts its clients numerous discounts again for
hotel ordering in order to preserve the Covid scenario.
 Weaknesses - The covid epidemic is causing a negative fluctuation in the market
condition and the entire hospitality market is badly affected. During the long era, the
etiquette of social distance has become obligatory for the public, and therefore long since
nobody goes out now to travel to places, this really is the major weakness of the hotel.
The primary drawback of the restaurant may be huge competition that is not more
successful International representation than the other Worldwide hotel chain (Kranz,
Hanelt and Kolbe, 2016).
 Opportunities - In attempt to fully work as the legal firm in the epidemic, hotels may
establish greater effective and efficient relationships and enhance their investments in
new marketing, such that its market situation can be improved adequately. Hotels with
smaller companies can obtain greater financial benefits relative with competition and
enhance customer satisfaction (Loizia and et., al., 2021).
 Threats - The brand management procedure of the hotel has fallen considerably because
of the unpredictability of the epidemic. The biggest risks for such hotel were social
differences, little interaction between humans, concern of such virus and the hazardous
surroundings.
PESTLE Analysis
This analysis is useful to understand the external market situation and also helpful to
manage of all the factors in an appropriate manner. Through this analysis, it will make suitable
for the manager to identify the entire market situation in the pandemic period. There are various
external factors which directly influence the performance and also productivity of the hotel. To
identify the impact of these factors, PESTLE analysis will conduct by the hotel manager which
are as follows -
 Political Factors - This factor is mainly focused on some specific elements like taxation
policies, environment regulations, foreign trade policies, trade regulations, political
instability, rules of law, corruption. Due to the uncertain situation of pandemic, political

factors affected the most on the marketing of the hotel. It is determined that political
regulations and procedures and political stability provided favorable affect on the hotel
but formulation of new rules and regulations adverse situation of pandemic provided
unfavorable affect. Hotel need to improve their performance and reduce the impact of
political interference in their business activity (Martín-Cáceres and Cuenca-López, 2016).
 Economical Factors - This factor is concentrate on the economical growth, employment
rate, recession, inflation, interest rate, monetary and non monetary policies and GDP.
Premier Inn hotel is a well known hotel in UK which provide specific contribution in the
development of the economy but because of dependent the situation became critical.
Social distancing, employment rate it can provide the unfavorable affect on hotel and
convenient pricing policy, competitive pricing policy can provide favorable impact.
 Social Factors - This factor is all about to determine the taste and preference of the
customers and also maintain specific demographical and geographical aspects in order to
improve the sales of the hotel. Lack of interest of customers, lack of interaction provided
the favorable impact on the premier Inn hotel. Consciousness of the customers,
geographical factors can provide unfavorable impact on the business of hotel on the
pandemic time (Rupčić, 2020).
 Technological Factors - In context of technological factor, modification of the
technologies, changes in the technology, technological error are considered by the hotel.
Because of pandemic, the situation of the market affected adversely but with the help of
technological factor, Hotel connected with their customers and adopt high level of
technologies to communicate with them. Through social media marketing, another online
platform, premier Inn hotel is trying to maintain their market growth rate. The factors
provide favorable impact on the marketing of the hotel. Technological error can provide
unfavorable affect.
 Legal Factors - There are various elements are involved in this factor such as legislative
rules and regulations, government policies and procedure. Premier Inn hotel is following
all the laws and government regulations in a systematic manner which is providing
favorable impact on the marketing of the hotel. Due to uncertainty of the covid-19, the
regulations and policies of the government it became unstable which provide unfavorable
affect on premier Inn hotel.

 Environmental Factors - This factor is mainly concerned about the climate change,
environmental changes, pollution, and population level. Because of endemic the whole
environmental situation is changed, now people are more serious about their health and
want safe secure and hygiene environment. Hotel is focusing on green Marketing and
also conducts specific natural activities in their hotel which can attract the customer in a
favorable way. Fluctuating in environmental sustainability rate can provide adverse
impact (Samkin and Wingard, 2020).
Conclusion
As for this project it is concluded that industries need to pay attention in the market situation.
Because of the pandemic situation, the entire market of the hospitality industry is affected
negatively. This project discussed about the organizational structure and also so their benefits
and drawbacks. With the help of organizational benefits and drawbacks, manager can effectively
understand the whole scenario of the organization and prepare their strategy according to the real
organization situation. With the help of proper implication of organizational structure, company
can maintain proper flow of information & communication with their staff member. Without
organizational structure, it is difficult to to manage the activities and operations of the
employees. This project also determined the strength and weaknesses of the selected company e
and also focuses on their opportunities and threats so that company can formulate and strategic
plan according to this and effectively manage the impact of pandemic. This project also
conducted PESTEL analysis and also determined the influence of external macro environmental
factors in the working operations and productivity level of the company. With the help of
business environment analysis tools like SWOT analysis & PESTEL analysis, company
identified appropriately the impact of pandemic and identifies the favorable and unfavorable
factors.

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