Understanding Business Organisation

UNDERSTANDING
BUSINESS
ORGANIZATIONS

Table of Contents
INTRODUCTION.........................................................................................................................3
TASK..............................................................................................................................................3
Organization Structure of Premier Inn........................................................................................3
Environmental Analysis...............................................................................................................4
CONCLUSION..............................................................................................................................7
REFERENCES..............................................................................................................................8

INTRODUCTION
The purpose of organization is to understand and manage business well and bring all
employees together to meet the organizational objectives. Understanding the business
organization is a multidisciplinary approach which helps in gaining insight of the business
environment. Business organization is the purpose of carrying on the commercial enterprise of
selling and buying. Organization structure is a system which outlines certain activities which are
directed in order to achieve organizational objectives. Organization structure is also helpful in
defining rules, roles and responsibilities (Ahmad and Murray, 2019). This also helps in managing
the flow of information between different levels of the organization. Premier Inn is a British
hotel chain is one of the leading hotel chains of UK. The hotel chain was established in 1987 and
Whitbread is the parent or founding company. The hotel chain is operating with more than 800
hotels and with different subsidiary companies. It is a private limited company and is operating
in hospitality industry. The hotel chain is operating in various countries such as UK, UAE,
Germany, Jersey, Isle of Man and Republic of Ireland. The essay will define organizational
structure of Premier Inn Hotel Chain. The essay will also analyze the internal and external
business environment with the help of SWOT and PESTEL analysis.
TASK
Organization Structure of Premier Inn
Organization structure is the structure which describes the form of departments, hierarchy
and committees. This is also responsible for creating an impact on the organizational
effectiveness and efficiency. In case of Premier Inn, the hotel chain follows hierarchical
organizational structure due to their massive size of the company. Therefore, the organizational
structure of the company can also be stated as divisional which has been divided on the basis of
ownership division, timeshare division and franchise division (Carslake and et.al, 2015). By
following the hierarchal organizational structure, it supports Premier Inn in effectively managing
all operations from front desk to room services to human resource department. With the help of
hierarchal organizational structure, it also ensures profitability of business and aids in running
the business effectively and efficiently.