Understanding Business Organizations: Premier Inn Hotel Case Study

This report analyzes Premier Inn hotel's SWOT and PESTLE analysis, organizational structure, and the importance of understanding business organizations for competitive value. The SWOT analysis highlights the strengths, weaknesses, opportunities, and threats of the hotel. The PESTLE analysis examines the political, economic, social, technological, legal, and environmental factors that impact the hotel's functioning. The report also describes the functional organizational structure of Premier Inn hotel and its advantages.

Understanding
business organisations

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................4
SWOT analysis of Premier Inn hotel in order to deliver focused approach...............................4
PESTLE analysis in to analyse key external factors which impact upon functioning of the
business.......................................................................................................................................5
Organisational structure of Premier Inn hotel.............................................................................6
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
In order to develop a business, it is important to understand the business organisations in
a precise and systematic manner (Allison, and Tomlinson, 2017). The enhancement of an
organisation is essential part of business development which helps in increasing competitive
strength of the company. The well defined understanding of business organisations helps in
increasing the chances of generating revenue and profitability. In this project example of
Premier Inn hotel is taken into consideration which is a major chain of hotel and United
Kingdom' largest hotel brand. The hotel chain is having more than 700 rooms and 800 hotels.
The Headquarters of hotel are situated in Dunstable, United Kingdom. In this project
environmental analysis of Premier Inn is explained with the help of PESTLE and SWOT
analysis. This report also includes description of organisational structure of Premier Inn hotel in
order to understand the hierarchy.

MAIN BODY
SWOT analysis of Premier Inn hotel in order to deliver focused approach
The SWOT analysis is considered as an important tool which helps a company to know
its key strength and value. It is one of the most important tools which helps a business
organisation to analyse internal environment in a well defined manner (Alnuaimi, Alzoubi, and
Alzoubi, 2021). The SWOT analysis is also a key technique which helps in development of a
focused strategy. SWOT analysis of Premier Inn hotel is mentioned below:
 Strengths- The strengths are considered as capabilities and abilities of a company which
helps in increasing business. Major strength of Premier Inn hotel is its front office
management which helps in making customers more advanced manner. Another major
strength of Premier Inn hotel is its food and beverage department which provides quality
based drinks and food to major customers. It is essential for management of a business to
develop key focus on strengths in order to lead the competition.
 Weaknesses- Weaknesses are the major hurdles and obstacles which can impact
negatively on business. Marketing management of Premier Inn hotel is one of the major
weaknesses of the hotel which is main body in increasing sales figures and turnover. The
human resource management is one of the major weaknesses of Premier Inn hotel which
creates management of employees with less efficiency. In order to overcome weaknesses
it is main role of Premier Inn management to develop planning and strategic frameworks.
 Opportunities- The opportunities are considered as golden chances for a business firm in
order to enhance operations (Balabanova, 2021). Growth and expansion at the
marketplace is one of the major opportunities available to Premier Inn hotel. In order to
gain growth the hotel should implement major plans and policies.
 Threats- Threats are major obstacles which arise in between a business functioning and
stop its growth. The threats are one of major factors which can impact on its working in a
negative manner. In the recent times, it is main role of management of Premier Inn hotel
to analyse threats from competitors and develop a precise approach in dealing with them
(Bolis, 2018). The threats from competitors like Hilton, Marriott and Holiday Inn should
be analysed by top level management of Premier to develop strategic choices.

PESTLE analysis in to analyse key external factors which impact upon functioning of the
business
The PESTLE analysis is an important framework which is used by many international
and national companies based in hospitality sector (Dragu, 2017). In the recent times, all major
companies use this framework in order to understand the external environment. The PESTLE
analysis of Premier Inn hotel is mentioned below:
 Political factors- The political factors are the major external factors which are related to
rules and regulations formulated by government. Recently Premier Inn hotel has been
impacted by BREXIT in a major sense. The policies and legal frameworks of government
has changed and they are impacting on functioning of hotel in a crucial manner. Premier
Inn hotel is also developing a key approach in handling the political factors in order to
conduct ethical business.
 Economic factors- In the functioning of Premier Inn hotel, economic factors play an
important role. The economic factors are related to inflation, deflation and recession rates
which are present in an economy (Jakobsen, Fløysand, and Gammelsæter, 2017). Premier
Inn hotel is focusing on major economic factors to increase its revenue and profitability.
The COVID-19 pandemic has also impacted on the functioning of Premier Inn hotel,
resulting in huge loss.
 Social factors- Social factors are one of the major factors which impact on functioning of
a business. These factors include culture and traditions of society and employees which
needs to be taken into consideration by Premier Inn hotel. The social factors are also
considered as key factors which impact on the environment and surroundings of Premier
Inn hotel. The social factors should be taken into consideration by the business in order to
develop focused approach at the marketplace.
 Technological factors- The information and technology is growing at a rapid pace in the
contemporary business environment. It is essential role of a business to focus on
technological factors in order to perform all operations in a quick and accurate manner
(Lašáková, Remišová, and Bohinská, 2022). The Premier Inn hotel is also taking
assistance of customer relationship management software to increase customer
relationship and satisfaction. Premier Inn also takes support of management information

system and decision support system to develop a key approach in managing major
activities and tasks.
 Legal factors- The legal factors are related to laws and regulations developed by local
authorities. It is essential for the business to focus on legal factors in order to conduct
legal and ethical business. The legal factors are also helpful in increasing competitive
strength of a business at the marketplace by following certain rules.
 Environment factors- In the recent times, it is important for a business like Premier Inn
hotel to develop key emphasis on environmental factors for developing sustainable
practices (Mikova, 2020). The environmental policy of United Kingdom is followed by
Premier Inn hotel to increase its approach towards welfare of society and surroundings.
Organisational structure of Premier Inn hotel
In the corporate world, organisational structure play an important role by increasing the
business development based opportunities. The Organisational structure is also a major factor
which helps in developing identification of key factors which are related to hierarchy. Premier
Inn hotel follows functional organisation structure which helps in management of key operations
in a precise manner. In the functional structure of the organisation, there are various departments
which play an important role in handling major tasks (Rao, 2020). The functional departments
like marketing, human resource, operational, finance and production departments are linked with
each other in order to develop effectiveness. The main advantages of adopting functional
organisation structure for Premier Inn hotel are mentioned below:
 Decision making- Decision making is a key approach which helps a business to make
solutions of the key problems. The functional organisation structure of Premier Inn hotel
is also helpful in increasing organisational growth of business. It is major role of a
business to focus on decision making with the help of functional organisational structure
in order to lead the marketplace.
 Coordination- The coordination is one of the important factors which helps a business to
increase its potential (Raut, Mangla, and Narkhede, 2019). With the help and support of

functional structure, Premier Inn hotel is able to resolve key queries of employees and
also increasing coordination. The coordination is also one of the major approaches which
helps in increasing overall potential of a business in order to lead the competition.
 Employee satisfaction and productivity- The functional organisational structure also
helps the hotel to perform and develop productivity. Increased competition between
employees is also important for the business in order to improve focus on employee
capabilities and their roles and responsibilities. Company should also develop a key and
precise approach in handling job duties and responsibilities according to functional
structure.

CONCLUSION
From the above stated report it can be concluded that understanding the dimensions and
aspects of a business organisation helps in increasing key competitive value. The analysis
concludes the importance of professional management in order increase value development of a
business. The project also concludes the significance of PESTLE and SWOT analysis in order to
analyse environment of the company. This report concludes the importance of organisational
structure which helps in development of decision making. The analysis concludes that in order to
know strengths and weaknesses of an organisation, it is important to focus on increasing the
competitive value.

REFERENCES
Books and Journals
Allison, L. and Tomlinson, A., 2017. Understanding international sport organisations: Principles,
power and possibilities. Routledge.
Alnuaimi, M., Alzoubi, H.M.,and Alzoubi, A.A., 2021. Towards intelligent organisations: an
empirical investigation of learning orientation's role in technical innovation. International Journal
of Innovation and Learning, 29(2), pp.207-221.
Balabanova, E., 2021. Employee socio-economic dependency as an antecedent of abusive
supervision in Russian business organisations. Employee Relations: The International Journal.
Bolis, A., 2018. The impact of big data on organisations: understanding data-driven decision
making.
Dragu, I.M., 2017. Understanding the IIRC framework through the perspective of accounting
profession and international organisations. International Journal of Social Entrepreneurship and
Innovation, 4(4), pp.273-286.
Jakobsen, S.E., Fløysand, A. and Gammelsæter, H., 2017. Globalisation and Local Flavour in
Business Organisations: The Case of Norwegian Elite Football Clubs. In Globalising Worlds and
New Economic Configurations (pp. 233-243). Routledge.
Lašáková, A., Remišová, A. and Bohinská, A., 2022. Barriers to ethical business in Slovakia: an
exploratory study based on insights of top representatives of business and employer
organisations. European Journal of International Management, 17(1), pp.86-113.
Mikova, S., 2020. Forms Of Interaction Between Higher Education Institutions And Business
Organisations In The Field Of Logistics And Supply Chain Management. Economic Science,
education and the real economy: Development and interactions in the digital age, (1), pp.532-
545.
Rao, P.S., 2020. Processes and outcomes in three-dimensional match and mismatch
circumstances in respect of leadership styles, followership styles and situational demands in
business organisations in papua new guinea. South Asian Journal of Marketing & Management
Research, 10(4), pp.6-27.
Raut, R.D., Mangla, S.K., and Narkhede, B.E., 2019. Linking big data analytics and operational
sustainability practices for sustainable business management. Journal of cleaner production, 224,
pp.10-24.