This report discusses the business organisation and its structure. It includes a business environment analysis, SWOT analysis, and PESTLE analysis of Premier Inn Hotel.
Understanding Business Organisation
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Table of Contents INTRODUCTION...........................................................................................................................1 MAIN BODY...................................................................................................................................1 Organisational Structure..............................................................................................................1 Business Environment Analysis of Premier Inn Hotel...............................................................2 SWOT Analysis of Premier Inn Hotel........................................................................................2 PESTLE Analysis of Premier Inn Hotel....................................................................................3 CONCLUSION................................................................................................................................4 References:.......................................................................................................................................6
models have several advantages such as it helps the company to reduce their costs at different production processes. The main aim of every company is to increase their sales which directly increases the profits of a company and this model promotes increased sales. Also this model helps in reducing the power of suppliers to influence the company which gives a great advantage to the company. But the main drawback of this model is the risk factor. During the uncertain market times, risk increases for the company which have an adverse affect on the company. During the time of Covid – 19, Premier Inn Hotel has faced a lot of problems and company also faced losses during that time. And to overcome the situation it is necessary to make or coordinate a strategy, for which company have to incur high costs. This model also helped the Premier Inn hotels to grow faster than their competitors and generate a strong return on capital for their shareholders from past 15 years(Kauria, 2018). Business Environment Analysis of Premier Inn Hotel Business environment refers to all internal and external factors which have the ability to influence the business or business operations such as employees, customer needs and suppliers etc. Some of the factors that can influence Premier Inn Hotels are technical innovations, government actions, industry trends etc.(Malongwe, 2018). SWOT Analysis of Premier Inn Hotel Strength– It refers to the strong points of the company which gives company an advantage over the others. In context to Premier Inn Hotel, the brand name and fame of the company gives a massive advantage to the company. Also their comfortable and premiumstaysandservicesplaysanimportantroleascustomersgetmaximum satisfaction through these services. Also the customer management team of the Premier Inn Hotel is one of the best thing comparing to the competitors present in same industry which creates an edge over the others. Weakness– One of the biggest drawback of the Premier Inn Hotel is high competition. There are several players in the markets with a strong brand name and providing premium or luxury lodging services to their customers in the relevant industry. Another 2
weakness of the company is that sometimes company gets huge number of reservations which makes it difficult for the company to take care of all the required protocols created due to Covid – 19. Opportunity–Premier Inn Hotels have their presence in multiple companies and also company has came into the long run in UK and Ireland due to successfully introduction ofPremier Inn Hotel in Deutschland. Now company can target new markets and work toward new nations and regions to capture the market share in the relevant industry of those regions. Also the company has developed a great customer service through which gives more convenience to their customers and came to know about their faults in providing their services(Nwaiwu, 2018). Threats– Due to Covid – 19, there is massive change in this industry and company was unable to fulfil their needs of customers due to high demand which created an adverse affect on the image of the Premier Inn Hotels. PESTLE Analysis of Premier Inn Hotel Political Factors– It refers to the factors related to government's interference in the business operations. Government policies and rules and regulations changes rapidly according to the changes whenever required which creates problem for the hotel industry. It is difficult to get a visa for UK and company mainly operates in that area which creates problem for Premier Inn Hotel(Roth. and et. al., 2018). It would be great for the company if the visa process becomes more flexible for the people from other countries. Economic Factors– It includes factors whichare the determinants of an economy's performance that directly affects the company and can have long term effects. In context of Premier Inn Hotels, the labour cost is high which creates barriers to achieve cost efficiency in the company in the areas of UK, Ireland and Germany which are the main focused areas of the company. It would be so much beneficial for the company if they have business operations in more countries where labour cost is low. 3
Social Factors– People's needs and expectations towards the hotel industry has changed and grown for a long time such as cleanliness, safety etc.Premier Inn Hotels offers their services at budget prices and target customers who are looking for very good deals(Odeh and et. al., 2018). Many hotels in the UK faces the shortage of staffs as many people do not want to work in hotel industry due to different reasons such as low wages, long working hours, limited career opportunities etc. Technological Factors-Premier Inn Hotels are using latest technology to give their customers a smooth experience and premium lodging services. Many hotels with same reputation asPremier Inn Hotels such as Hilton, Marriott etc. are using innovative and advancedtechnologiestostayaheadofthecompetition.PremierInnHotelhas introduced many technologies such as digital key system which provides excellent security, smartphone application to book hotels etc. but it is very expensive for the hotels to upgrade and develop new technologies. Legal factors-These determines the laws that can affect the business environment in a certain country while there are certain policies of the companies which they maintain for themselves. Premier Inn Hotels should have to follow all the rules to stay away from the risk of lawsuits. Also company have their hotels in multiple countries which make it more difficult to abide by the laws of every country(Odor, 2018). EnvironmentalFactors-Thesefactorsincludeallthosethatinfluencebythe surrounding environment. Premier Inn Hotels are committed to the industry leading sustainability by cutting carbon emissions intensity by half by 2025. For this company has also taken many steps which are also getting positive results. CONCLUSION It can be concluded from the above report that there are many business organisation sin the market and main aim of the organisations is to generate more and more profits. There are different types of organisations depending upon the size and nature of the business. It is 4
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important for the business organisation to follow aparticular business structure as business structure is the way of doing the work inside the organisation and helps the organisation to achieve their goals and objectives. Also it is important to analyse the business environment in order to know about the business. Through this evaluation a business organisation can know about benefits and drawbacks of an organisation. For this there are different frameworks such as SWOT analysis through which a company gets to know their advantages and threats and PESTLE analysis through which different factors are analysed to know about the organisation. References: Books and Journals 5