Understanding Business Organizations: Organizational Structure, SWOT and PESTLE Analysis

This article provides an in-depth analysis of the organizational structure of Premier Inn, the biggest hotel chain in Britain. It explains the roles and responsibilities of the directors, managers, and workforce of the company. The article also includes a SWOT and PESTLE analysis of the company, highlighting its strengths, weaknesses, opportunities, and threats. It discusses the impact of external factors such as political, economic, social, technological, legal, and environmental factors on the business organization.

Understanding
Business Organizations

Table of Contents
INTRODUCTION ...............................................................................................................................1
MAIN BODY.......................................................................................................................................2
Organizational Structure..................................................................................................................2
SWOT Analysis ..............................................................................................................................2
PESTLE analysis.............................................................................................................................3
CONCLUSION ...................................................................................................................................4
REFERENCES.....................................................................................................................................4
INTRODUCTION
The company's organizational structure is responsible for the performance of the organization in
order to achieve the desired goals and targets. The organizational framework of the company effects
the success rate of the business. There are different organizational structures according to the
various types of businesses. The management of the company is required to choose a better
framework for the organization so as to work in an efficient manner. The first and the foremost
requirement is to acknowledge the merits and demerits and the characteristics of various
organizational structures(Adamyk, 2019). In the earlier times the administrative framework of the
business use to be formal enough where the employees are required to perform in accordance with
the decided product line and techniques. But at present, it can be noticed that the organizational
structure of the business has become informal in nature which is mor3e dynamic and changes
according to the business environment. The company in the case study is a chain of the hotel that is
Premier Inn in the United Kingdom. The company was formed in the year 1987 by Whitbread. The
headquarters are in Dunstable, England. It is the biggest hotel chain in Britain. It consists of 72000
rooms and hotels in total. It is functioning in the different cities of the country including the

airports, suburbs and the city centres.
MAIN BODY
Organizational Structure
The company that is hotel Premier Inn has adopted the hierarchical framework as its organizational
structure which ensures that the workforce working in the hotel understand their roles which they
need to perform and accountability easily. This type of structure is effective for the companies
operating on a large scale like hotel Premier Inn. This particular system of hierarchical structure
provides with specific tasks to each and every individual working in the capacity of an employee.
By performing these roles, they contribute in the fulfilment of the different aims and objectives of
the organization. Every employee is assigned to a manger who monitors the performance of the
individual. Those managers are responsible to give the performance reports of the individual
working under them to the managerial head. The chief executive officer, chief financial officer and
the chief operating officer forms the apical post of the management known as C Suit. They are
accountable for the decision making process of the company(Amis, Mair and Munir, 2020). There
are directors appointed for the various departments of the hotel in order to ensure the proper
functioning of the business activities which are required to achieve the pre decided targets. For
example- IT department, marketing, finance, HR, accounts management and many more. The
managers follows the instructions of the directors in order to command the performance of the
lower level workforce of the organization. This particular organizational structure works effectively
in the service based organizations. Hotel Premier Inn is also engaged in providing services to the
customers. The employees of the hotel are well versed with the duties and tasks assigned to them
and there is no ambiguity among the individuals that to whom they have to report. The authority
and power is centralised among various levels of the organization that is from the top management
to directors, from directors to the managers and from the managers to the subordinates or the lower
level of the organization.
SWOT Analysis
The swot analysis helps in determining the external and internal elements that impacts the
environment of the business organization. It helps in doing a comparative analysis of the company
or the organization with the other enterprises in order to know the level of the business (Gupta,
Gupta and Gupta, 2019).
STRENGTHS WEAKNESSES

 Remarkable presence in the United
Kingdom- Premier hotel operates on a
large scale with approx 800 branches in
different cities of Britain as well as in
different countries around the globe
like, Germany, Europe, etc. The hotel is
serving nearly 5 million customers per
month.
 Location of the different branches of
the hotel- They have targeted the
densely populated areas where the
public use to arrive maximum times.
Like, airports, suburbs, malls, city
centres, near tourist places,
colleges,etc. This provides with the
option to the customers to stay in the
nearby place that is in the hotel.
 Refund problems- Many customers
who have booked the hotel during the
period of the pandemic, are facing the
issues with their refunds which
adversely affected the clients.
 Hygiene problems- The Premier Inn is
failed in maintaining proper hygiene
system in the hotel. Many customers
have raised issues for the same and
made number of complaints related to
this problem, but the management of
the hotel is unable to resolve it.
OPPORTUNITIES THREATS
 Opportunities in the new markets-
The organization can open more
franchisee in the new places such as
Australia, USA, South Africa, etc. This
process will assist in the further
development and growth of the
company with a new brand image in the
other countries(Kazan, et.al, 2018).
This will also helps in increasing the
profits.
 Rejuvenating the business-The
company can opt for redecorating the
rooms of the hotels according to the
availability of funds.
 Competition in the market- Every
business organization has to face this
situation in one way or the other. There
are many competitors in the field of
hospitality and management. Holiday
Inn, Ibis, etc. are some of the names
among them. They have segmented the
hotel rooms according to the standards
of different segment of population
where they are offering their services in
low prices also than Premier Inn.
 Covid-19 pandemic- Due to the
pandemic, the travelling was banned by
various countries which affected the
business of hotels in a negative
way(Phadermrod, Crowder and Wills,

2019). Now, the companies are required
to make a new market planning in order
to achieve the desired goals.
From the above observations, it is clear that there are various competitors emerging in the way of
hotel Premier Inn who are providing rooms to the customers on low prices. To cope up with this
problem, hotel Premier Inn is required to choose the competitive model so as to generate revenues
and earn profits from the business.
PESTLE analysis
This module is used through companies to analyse the factors of business and how the business is
affected.
POILITICAL FACTORS
Travel bans- The government have their strong control over sectors of hotel. The rules and
regulations is made for hotels to follow. The example for this are, when there is situation of
covid the government imposes bans on travelling and this affect hotel business directly.
Fear in presidential elections- The hotel industry is affected by the government and
subsequently the owner have to support candidates in election. If that candidate looses the
election then the changes in policy will be made to previous policy which is not beneficial
for the Premier Inn(Umale Mansor and Ibrahim, 2020).
ECONOMIC FACTORS
Strength of currency- The fluctuation of currency will affect the business. The
international currency is lower than domestic then lower amount of tourist will come to visit
the country as this cost them extra. This results in foot fall of tourists and couses less profit.
Economic cycle- The hotel business will be affected through this economic cycle and this
is susceptible for influence it. Whenever this come a low phase in market cycle will affect
the businesses.
SOCIAL FACTORS
Issues of peak seasons- When there is festival in the country then large amount of tourists
comes to country, the hotel rooms runs on advance booking or sometimes hotels do not have
any room left. The hotels miss many customers and this affect profitability of business.
Cheap options- Many young guests and tech savvy, because of lower price options
available on apps like Airbnb and many more. They offer services at lower cost as compare

to premier inn and affects the business.
TECHNOLOGICAL FACTORS
New technology- In earlier time the hotels were run by old and traditional method and
media. The use of growing technology such as internet and social media handle. The hotel
will change the way of operating business from opting new technology.
Blogs reviews- The costumers writes reviews on social media and website of the hotel will
helps customers to make their opinion. This is a good thing for hotel if a positive review is
given this increases the consumer base of hotel and increases the profit.
LEGAL FACTORS
Innkeeper laws- Premier Inn follows the law which ensures the welfare and safety of
customers and properties. This is mentioned in the rooms of guests. This mainly talks about
compensation which is paid to customers if property is not well maintained.
Truth in menu laws- The hotel will follow truth in law of menu for having food and
beverages establishment this states that this is truthful for services of food to guests. They
have to be honest in facts of calories and nutrition(Zhang, et.al, 2020).
ENVIRONMENTAL FACTORS
Local weather- Many of the guests visits with their families for holiday but if the weather
is not good then this will affect the business of hotel.
Use of sustainable energy and products- Today's customers are more environment
friendly and uses the products which are sustainable in nature and if this hotel acquire green
energy and the customers will be attracted to hotel and increase the profit.
CONCLUSION
The conclusion drawn by the report is that the organizational structure is best for the various
business organizations which helps to maintain a balance between the top level and the low level
management and the managers among the two. It explains the roles and responsibilities of the
directors, managers and the workforce of the company. The report further includes the analysis of
the internal and external factors which affects the business organization. There are certain merits
and demerits related to the management of hotel Premier Inn. As it is facing a cut throat competition
from the other hotels in terms of prices and better accommodation services to the customers. There
are various solutions that are being provided to ensure the growth and development of the business.

REFERENCES
Adamyk, K., 2019. PESTLE Analysis on Tesco PLC.
Amis, J.M., Mair, J. and Munir, K.A., 2020. The organizational reproduction of
inequality. Academy of Management Annals, 14(1), pp.195-230.
Gupta, A., Gupta, N. and Gupta, M., 2019. British Airways-A SWOT and PESTLE Analysis-The
impact of Europe 2020 policy. NOLEGEIN-Journal of Corporate & Business Laws, 1(1),
pp.1-11.
Kazan, E.,et.al, 2018. Disentangling digital platform competition: The case of UK mobile payment
platforms. Journal of Management Information Systems, 35(1), pp.180-219.
Phadermrod, B., Crowder, R.M. and Wills, G.B., 2019. Importance-performance analysis based
SWOT analysis. International Journal of Information Management, 44, pp.194-203.
Umale, O., Mansor, M.B. and Ibrahim, M.B., 2020. ROLE OF ORGANIZATIONAL
STRUCTURE IN KNOWLEDGE MANAGEMENT EFFICIENCY AND TAX
ADMINISTRATION PERFORMANCE: A CASE STUDY OF FEDERAL INLAND
REVENUE SERVICE NIGERIA. International Journal of Economics, Commerce and
Management, United Kingdom, 8(3).
Zhang, Y.,et.al, Q., 2020. A swot analysis of the UK EV battery supply
chain. Sustainability, 12(23), p.9807.