Understanding Business Organisation: A Case Study of Premier Inn

This case study provides an in-depth analysis of Premier Inn's business organization and environment. It begins by defining business organizations and their goals, focusing on Premier Inn as a case study. The report explores the hotel's hierarchical organizational structure and how it facilitates effective business practices. Furthermore, it examines the business environment of the hospitality sector, including a SWOT analysis to evaluate Premier Inn's strengths, weaknesses, opportunities, and threats, and a PESTLE analysis to assess the political, economic, social, technological, legal, and environmental factors impacting the hotel. The analysis highlights the importance of understanding both internal and external factors for strategic decision-making and long-term sustainability in the competitive hospitality market.

Understanding Business
Organisation

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Organisational structure of Premier Inn hotel.............................................................................1
Business environment of hotel....................................................................................................2
SWOT analysis............................................................................................................................2
PESTLE analysis.........................................................................................................................3
CONCLUSION ...............................................................................................................................4
REFERENCES................................................................................................................................6

INTRODUCTION
Business organisation generally describes businesses which are structured as well as
explains about how structure helps them in accomplishing their goals. As in simple words
businesses are designed to keep their focus on creation of profitability as well as improving
society. They are generally carried for accomplishment of their desired goals as well as
enhancing profits (Lee, 2021). There are various types of organisation which could be
categorised in carrying their work in corporate markets. This report is based on understanding
business organisation that is based on case study of Premier Inn hotel which is a British hotel
chain as well as largest hotel brand in UK with more than 72,000 rooms as well as 800 hotels.
Hotel is operating in variety of locations which consists of city centre, suburbs along with
airports competing with likes of travelodge hotels (Jacquemod, 2021). This report consists of
explanation of organisational structure of hotel, analysis of business environment, SWOT and
PESTLE analysis of hotel that could help in evaluating internal and external business
surroundings followed by its conclusion.
MAIN BODY
Organisational structure of Premier Inn hotel.
Organisational structure is basically defined to a system that outlines about how
particular activities are directed for accomplishment of their planned goals. These practices could
involves rules, responsibilities as well as roles. Organisational structure of any company helps in
identifying how information flows among various levels in companies. It has stated that the more
effective organisational structure will be companies will be able operate and carry their business
practices effectively. So it necessary for business companies to implement effective
organisational structure in order to perform their business practice well which could result in
increase in profits (Siwela and van der Bank, 2021). There are basically various types of
organisational structures which could help companies in order to carry their business practices
well. Some of organisational structures that are used by companies are functional, divisional,
matrix as well as hierarchical which could help them in accomplishment of their desired
objectives as well as goals in an effective manner.
In accordance with Premier Inn hotel they are implementing hierarchical organisational
structure in their business practices. It is a typically organisational structure which is
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implemented by large businesses in order to accomplish their goals in an effective manner. This
structure basically relies on having various levels of authority with a chain of command in hotel
that could help in connecting various management levels with in hotel premises. In this structure
decision making process is carried in a formal ways as well as it flows from top down.
Business environment of hotel.
Business surroundings generally refers to sum total of various aspects towards business
companies (Cherunilam, 2021). It carries potential to influence functioning of hotel. Business
environment of hospitality sector generally covers aspects and forces such as customers,
suppliers, competitors as well as various external environment factors of hotel which could affect
and benefit business practices.
SWOT analysis
In order to evaluate internal business it is essential to determine core potential as well as
weaknesses of hotel so that proper strategies could be taken to accomplish their desired goals in
an effective manner. In accordance with Premier Inn hotel SWOT analysis of hospitality is as
follows: Strengths: These are said to be positive points of hotel which has determined that
Premier Inn hotel is awarded with hotel chain of the year at British travel awards. Premier
Inn is UK's largest hotel brand with size of more than 50,000 rooms as well as nearly 700
hotels (Kose, Sugawara and Terrones, 2021). They are highly advertised chain of hotel
with its premium brand which offers various deals for its customers in order to have
online booking. Along with hotel has been recognized with various awards for being one
of finest hotel chain in Britain. Weaknesses: This element of Premier Inn hotel states about their weak points of hotel in
which they are lacking in. It has stated that there is intense competition for brand means
that are having low and small margins. Along with Premier Inn is having a weakness of
global presence which is not elaborated as international hotel chains. Opportunities: This element of SWOT analysis states about possibilities a well as
chances which could be grabbed by hotel business to generate values. In Premier Inn is
having more strategic tie ups with other hotel businesses. Along there is opportunity for
hotel to invest in their digital marketing practices (Lascaux, Kolesnikova and Kotsoyeva,
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2021). Premier hotel could also create their brand value by providing effective customer
experience.
 Threats: This component of SWOT analysis states about fears and harmful effects of
hotel that could provide negative impact. As Premier Inn hotel is having rise in raw
materials which could pose their profitability levels. Along with there are liability laws
which could impose various liability claims in provided change in business markets.
PESTLE analysis
It is essential to evaluate external business environment that could affect working
practices of hotel. In accordance with Premier Inn hotel PESTLE analysis of hotel is as follows: Political: This factor is generally associated with governmental influences corporation
tax which has decreased in lasts some back years which sees a rise in profits. Along it
has evaluated that VAT is increased from 17.5% to 20% since 2011 that has created a
negative impact on hotel's appeal in order to have an increase in price which has become
inevitable (Lourenço, 2021). Economic: With this factor it has determined that in 2008 financial crisis has dropped
UK into recession that has caused wide scale issues. Along with Premier Inn has faced
disaster that has conveyed to have some of benefits. With that Premier Inn has faced
profit and loss where hotel has faced higher amount of profits in last 5 years of working. Social: This external factor helps in determining that Premier Inn is generally relied on
tourism, seasonal holidays like Easter. Bank holidays as well as Christmas that are
essential date that hotel is charging in target market because individuals were being more
likely to spend their money on these times. Technological: This external factors identifies that there is an increase in utilisation of
computers, internet browsing as well as presence of mobile applications that have
increased visibility as well as ease in hotel. Premier Inn hotel has faced rise in social
media, adverts as well as particularly viral marketing which has led to have more price
effective measure of targetting a large particular audience. Along with social media has
created a possible target individual because of their location, internet browsing as well
as friendship groups. Along with this there is potential threat which are concerned
towards utilisation of present communication technology and there is decrease in
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demand for business travel which has reduced potential customers base of Premier Inn
that has benefited to hotel. Legal: This factor has determined about recent change which is carried in legislation that
has led to have rise in minimum wage rate by 12p in Oct 2013 (Lima, McMahon and
Costa, 2021). Along with Premier Inn hotel is forced to comply with health as well as
safety legislation along with offering equal opportunities with in employment practices.
 Environmental: This external factor has determined about climate change which could
have a significant effect on Premier Inn hotel. With incident of Jan 2014 it has created a
negative impact on Premier Inn as they have various service station which were sold off
and hotel started making their move towards London . Along with it has determined that
with closing of rail networks as well as cancellation of bookings.
CONCLUSION
It has been concluded from above report that business organisations are said to be entities
through which business practices are carried in corporate markets so that they could be able to
generate profits in higher number and survive in markets. This report highlights about business
carried in hospitality sector. This report serves a purpose of business organisation in role of
organisation structure in Premier Inn hotel is explained along with it explains about how business
related functions are carried through effective implementation of organisational structure. Along
with this report provides a brief guidance of analysing business surroundings for carrying report
properly. From this it has been determined that it is essential for hospitality sector like Premier
Inn hotel to evaluate its business surroundings. It explains about relevancy of business
surroundings that could help hotel in evaluating internal as well as external core potentials
which is beneficial for hotel. Along with by evaluating hotel business could be able to know
about various factors which could affect their business practices in markets. At last this report
gives a clear guidance of ways to carry business practices and making strategies according to
that they could be able to sustain in markets for long term.
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REFERENCES
Books and Journals
Cherunilam, F., 2021. Business environment. Himalaya Publishing House Pvt. Ltd.
Jacquemod, J., 2021, May. THE MEANING OF RELATIONSHIP QUALITY BY THE
BUSINESS LEADERS: RESULTS OF A QUALITATIVE STUDY. In SOCIETY.
INTEGRATION. EDUCATION. Proceedings of the International Scientific
Conference (Vol. 6, pp. 271-284).
Kose, M.A., Sugawara, N. and Terrones, M.E., 2021. What Happens During Global Recessions?.
Lascaux, A., Kolesnikova, I. and Kotsoyeva, V., 2021. Double jeopardy: striving for dual
legitimacy in Russian family firms. International Journal of Entrepreneurial
Venturing .13 (1). pp.88-111.
Lee, H., 2021. Changes in workplace practices during the COVID-19 pandemic: the roles of
emotion, psychological safety and organisation support. Journal of Organizational
Effectiveness: People and Performance.
Lima, E.S., McMahon, P. and Costa, A.P.C.S., 2021. Establishing the relationship between asset
management and business performance. International Journal of Production
Economics .232. p.107937.
Lourenço, C.L.C.C., 2021. Designing a balanced scorecard in a social hybrid organisation: the
case of Francisco Manuel dos Santos Foundation (Doctoral dissertation).
Siwela, S. and van der Bank, F., 2021. Understanding intention to quit amongst artisans and
engineers: The facilitating role of commitment. SA Journal of Human Resource
Management .19. p.16.
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