Understanding Business Organisation - Premium Inn Hotel Organisational Structure, Business Environment Analysis, SWOT and PESTLE Analysis

This report covers the organisational structure, business environment analysis, SWOT and PESTLE analysis of Premium Inn Hotel, a British hospitality expert firm. It also discusses the impact of COVID-19 on the company.

Understanding
business organisation

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
Premium Inn Hotel Organisational structure :- ..........................................................................3
TASK 2............................................................................................................................................4
Premier Inn Hotel Business Environment Analysis :-................................................................4
TASK 3............................................................................................................................................4
SWOT Analysis on Premium Inn Hotel :-..................................................................................4
TASK 4............................................................................................................................................5
PESTLE Analysis :- ..................................................................................................................5
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Business organisation may be defined as an entity which are formed by an individual or
group of individual for the purpose of carrying out any professional, commercial and industrial
activity to earn more and more profit(Prathima and Sasibala, 2020). In a business organisation
there are different types of objectives which are set by the higher authorities of the company.
Employees of the firm attain these objectives by carried out different types of activities within
the workplace in a very smooth manner. The management of the firm is responsible for taking
any action within the business organisation. Th following report is based on the Premium Inn
hotel which belongs to a British hospitality expert firm the Whitbread Plc. The respective
company is being considered as the largest British Hotel chain all across the nation with over 800
hotel and around 785000 luxuries rooms. The Premium Inn Hotel was founded in 1987 as a
Travel Inn hotel and the headquarter of the company was situated in Dunstable, England, United
Kingdom. The respective company came under the hospitality sector and they operates their
different operations near to the city centres, suburbia, airports etc. The organisational structure
and the environmental analysis of the Premium Inn Hotel has been covered in this report. This
report also discuss about the internal and external factors which impact on their business as a
result of COVID-19.
TASK 1
Premium Inn Hotel Organisational structure :-
In the market of United Kingdom or all across the globe the Premium Inn Hotel has a
well settled and developed image. Company operates around 580 budgeted hotel within the
market of UK due to which the respective company is being considered as the fastest British
growing hotel chain all the nation. The respective organisation deals in excellent food and
comfortable rooms for their guest and along with this company also takes pride in supporting
their charity partners such as Great Ormond Street Hospital Children’s Charity (GOSH). The
activities which are performed by the employees of the company has been well defined by the
higher authorities of the firm. The board members of the company is responsible and totally
accountable to the CEO and chairman of the company. The organisational structure which is
being followed by the management of the Premium Inn Hotel is flat organisational structure.
This structure is also known as Horizontal structure(El Talla and et. al., 2018). In this structure

the managers of the company have more control over their subordinates and the employees of the
company may involve in the decision making process. As the employees are directly touch with
the customers so, due to which they are involved in the policy making and strategies of the
Premium Inn Hotel. The roles and responsibilities of the employees has been effectively assigned
to them so that they can attain the set objectives of the company in a very effective manner. Flat
organisational structure is more suitable for the Premium Inn Hotel in comparison to the full
length structure. As the full length structure is suitable for those organisation in which less
number of employees has been work within the company and those who have a small business.
As in the Premium Inn Hotel huge number of employees has been worked and all the
employees are in controlled by the manager(Tasselli and Caimo, 2019). With the help of this
structure the roles and responsibilities has been clearly defined to their employees and along with
this employees of the company has been motivated by their manager in order to carry out all the
objectives of the firm. No conflicts has been arises between the employees, they respect each
other and most importantly healthy and happy environment has been developed within the
company which enhance their productivity. So in order to grow and expand their business in the
market Premium Inn Hotel can follow the flat organisational structure.
TASK 2
Premier Inn Hotel Business Environment Analysis :-
Where the management of the company perform all the activities in order to achieve all
the objective is called as business environment. Due to the affect of COVID 19 almost all the
functions of the respective company has been highly affected and due to which the profit of the
firm has been goes down(Muscalu and Górecki, 2018). Almost all the sector all over the globe
has been affected because of this pandemic but a huge impact has been seen on the Hospitality
sector and tourism sector. By applying different types of strategies in their management process
the respective organisation can overcome from this issue.
TASK 3
SWOT Analysis on Premium Inn Hotel :-
This is the most appropriate framework which are used by the organisation in order to
identify the internal factor which affect the different functions (Voukkali and Zorpas, 2022).

With the help of this framework they can effective make the strategies to overcome from these
issues in context to the Premium Inn hotel SWOT analysis has been discussed below :-
Strength :-
The market presence of the Premium Inn Hotel is being considered as their biggest
strength as they operate 800 hotel in UK with over 785000 rooms. According to the research it
has been seen that they serves around 5 million customer in every month. The brand image of the
company is also very good in the global market. The company was voted as Best UK economy
hotel brand for the 7 consecutive years.
Weakness :-
The limited global presence of the company is being considered as their weakness. It has
been seen that they operate their business functions in limited numbers of countries as compared
to their rivals (Büyüközkan, Mukul and Kongar, 2021). Along with this, during the COVID lock
down the respective company is refuses to pay the refund on the pre booking of the customers
due to which they have been accused and they made their customers unhappy.
Opportunities :-
For expanding their business all across the globe, Premium Inn Hotel can use the
effective digital marketing strategies. As due to the COVID people refuses to out to their
home and spent most of the time on the social media platform . So this is the best
platform for branding their business in the new countries.
Threat :-
The rivals of the company like Holiday inn, Easyhotel, and Ibis within the same
category give them strong competition. Due to the lock down the business of Premium In has
been affected badly. If in future similar situation has been arises then this turn out to be a
extreme challenge for them(Büyüközkan, Mukul and Kongar, 2021).
TASK 4
PESTLE Analysis :-
This analysis has been used by the company in order to identify the external factor which
affect the functioning of the firm (Mishra and et. al., 2019). With the help of this analysis proper
strategies has been made by the firm to overcome form these factor. In context to the Premium
Inn Hotel, PESTEL analysis has been discussed below :-

 Political factor:- it has been seen that after the arisen of COVID 19 government of the
nation take huge control over the hotel industry. The rules and regulations which are
made by the government of UK and banned the travelling by them, highly affect the
profit and performance of the company (Irfan and et. al., 2020).
 Economical factors:- hospitality sector is being considered as the largest growing
sector but because of this pandemic a huge impact has been seen on this. The Premium
Inn hotel can face the challenge related to the room booking amount and ticket prices.
 Social factor:- for the Premium Inn hotel the seasonal holidays has been considered as
the best time for them. At the time of Bank holidays, Christmas and many more they are
able to generate more profit. But because of this pandemic and government restrictions
people don't came out form their homes on these holidays.
 Technological factor:- as the employees of the Premium Inn Hotel are directly in touch
with their customer so it is very important for them to adopt the technology in their
management process. With the help of this factor they can effectively enjoy the
competitive advantage over their rivals(Shtal and et. al., 2018) .
 Environmental factor:- this factor is related to the those laws which are related
to the protection of environment. The management of the Premium Inn Hotel
have to take this factor on the top most priority and by following all the rules they
can smoothly run their business organisation.
 Legal factor :- in this factor the laws which is related to the welfare of the society
members and the workers of the company has been comprises. Due to this
pandemic the respective organisation may have to terminate most of their
employees because of the less profit generation(Capuder and et. al., 2020).
Company may have to face lots of issue within the workplace. Along with this
stakeholder of the firm face high amount of risk.
CONCLUSION
From the above report it has been concluded that environment analysis is very important
for the smooth running of the business organisation. After the arisen of COVID 19 all the sector
across the globe has been affected and huge impact has been seen on the hospitality sector. This
report concluded that flat organisational structure is suitable for the Premium Inn Hotel. This

report also concluded the external as well internal analyses of the respective company with the
help of PESTEL and SWOT framework.
REFERENCES
Books and Journals
Prathima, V.V. and Sasibala, P., 2020. SUCCESSION PLANNING AND ITS IMPORTANCE
TO THE BUSINESS ORGANISATION. Editorial Board, 9(4), p.127.
Muscalu, A.M. and Górecki, T., 2018. Comprehensive two-dimensional gas chromatography in
environmental analysis. TrAC Trends in Analytical Chemistry, 106, pp.225-245.
El Talla, S.A and et. al., 2018. The Nature of the Organizational Structure in the Palestinian
Governmental Universities-Al-Aqsa University as A Model.
Tasselli, S. and Caimo, A., 2019. Does it take three to dance the Tango? Organizational design,
triadic structures and boundary spanning across subunits. Social Networks, 59, pp.10-22.
Voukkali, I. and Zorpas, A.A., 2022. Evaluation of urban metabolism assessment methods
through SWOT analysis and analytical hierocracy process. Science of The Total
Environment, 807, p.150700.
Büyüközkan, G., Mukul, E. and Kongar, E., 2021. Health tourism strategy selection via SWOT
analysis and integrated hesitant fuzzy linguistic AHP-MABAC approach. Socio-
Economic Planning Sciences, 74, p.100929.
Irfan, M and et. al., 2020. Competitive assessment of South Asia's wind power industry: SWOT
analysis and value chain combined model. Energy Strategy Reviews, 32, p.100540.
Shtal, T.V and et. al., 2018. Methods of analysis of the external environment of business
activities.
Capuder, T and et. al., 2020. Review of challenges and assessment of electric vehicles
integration policy goals: Integrated risk analysis approach. International Journal of
Electrical Power & Energy Systems, 119, p.105894.
Mishra, S and et. al., 2019. Evaluating indicators for international manufacturing network under
circular economy. Management Decision.