Premier Inn: Strategic Management, Internal/External Appraisal Report

This management report provides an in-depth analysis of Premier Inn's organizational management system, focusing on internal and external environment appraisals to improve hospitality services. The internal appraisal identifies strengths like brand image and affordable pricing, and weaknesses such as high competition and limited global presence. The external appraisal examines economic factors, competitors, government legislation, and industrial unrest. Strategic options, including planning, governing structure, and staff enhancement, are reviewed to mitigate negative impacts and enhance strengths. Recommendations for organizational structure, systems, and policies are provided to implement these strategies successfully, aiming to improve internal management, employee efficiency, and overall competitiveness. This report provides a comprehensive overview of Premier Inn's strategic challenges and opportunities within the British hospitality sector.

MANAGEMENT REPORT

Executive summary
The organizational management system helps the organization to manage their business
functions, operations and employees performance also. Internal and external appraisal with the
help of environmental analysis helps the Premier In to effectively present their hospitality
services. These types of internal environment appraisal, organization can identify the strengths
and weaknesses of their management areas and with the external environment appraisal,
organization can identify the macro factors such as- economic change, competition in the market
and government legislations effect. Effective strategies such as planning, increase number of
employees, governing structure can also help to improve the current system, policies and
structure of Premier inn.

TABLE OF CONTENTS
Executive summary.........................................................................................................................2
Introduction......................................................................................................................................1
Task..................................................................................................................................................2
1 An appraisal of the internal environment of the organization..................................................2
2 An appraisal of the external environment of the organization.................................................4
3 A review of the strategic options available to the organization and recommendations for
future strategic direction..............................................................................................................6
4 Recommendations for structure, systems and policies to implement these strategies
successfully..................................................................................................................................8
Conclusion.....................................................................................................................................10
References......................................................................................................................................11
Appendix........................................................................................................................................13
Internal and external environment appraisal of Premier Inn.....................................................13
Strategies for strategic direction in Premier Inn........................................................................13

LIST OF FIGURES
Figure 1: SWOT of Premier Inn....................................................................................................13
Figure 2: Planning and assessment process...................................................................................14
Figure 3: Governing structure........................................................................................................14

Introduction
Management is the systematic process or system which is required to be followed and consider
by every organization so that they can effective manage their future policies and procedures in
this competitive market. This report will cover the case study of Premier Inn organization who is
one of the leading hotel chains of the British and provide valuable customer services. This report
will cover the internal and external environment appraisal of the Premier Inn through which they
can identify their strengths, weaknesses, economic factor, government legislations, and
competitive factors. This report will also provide and suggest proper strategies to direct the
structure, systems and policies of the organization.
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Task
1 An appraisal of the internal environment of the organization
Internal appraisal main purpose is only to undertake the identification of the weaknesses and
strengths of the organization. Premier Inn is the organization based in the UK and providing
hospitality services to all over the world. The organization is dealing in the customer service
sector so they have to maintain number of departments that can manage the functions and
business operations. With the help of internal environment appraisal they can evaluate their
organization and their employee strengths and weaknesses through which they can plan for
effective strategies (Kuratko et al, 2014). Internal environment appraisal of the organization
purpose of the evaluation is to express the qualitatively and quantitatively about the areas of their
business which includes exploits of strengths and area of weaknesses for further improvement.
Premier Inn organization analyzes the financial statement by making use of the accounting ratios
and this is their starting point to start the internal environment appraisal. Financial statement of
the organization indicates the study of finance and accounting areas which are related to the
management system and this will provide overview about how to run the business in future.
Management functions of the organization involve the planning, controlling and communication
of the plan with the members and this will vitally involve the financial information. Following is
the internal environment appraisal of Premier Inn in which their strengths and weaknesses are
identified:
Strengths of Premier Inn: Whitbread Plc is the parent organization of the Premier Inn and
dealing in the hospitality (Brubakk et al, 2015). Premier Inn is the British largest hotel chain and
this organization is providing various types of customer services which satisfy the comfort level
of the customer. Brand image of the organization is effective in the British market which
influences the customer to stay with them and take their services for their enjoyment. Providing
services on affordable prices is the strength of the organization. They use marketing strategies to
enhance their brand image and enhance their hotel chain in the market. They plan exclusive trips
for their customers so that they can enjoy their vacations.
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Weaknesses of Premier Inn: Weaknesses of the organization affect their performance which
may also reduce the functions and efficiency of their employees so it is important for the
organization to identify the weaknesses which affect their operations (Martinez, 2017). As per
the research it is identified that high competition in the market is the biggest weaknesses they are
facing. High number of competitors that means the limited market share which become their
weaknesses. They also lack in the business expansion as they have limited number of hotels in
the whole world. They also have global presence for expanding their business in the international
market. They sometimes face weaknesses to explore the large market and to increase their hotel
chain at various countries.
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2 An appraisal of the external environment of the organization
Internal appraisal highlights the areas in the organization that are strong and sometimes become
weak due to defensive planning. Identification of the internal environment is required to protect
the organization and the business functions from any negative results and poor outcomes. This
type of identification usually creates result of the project which is undertaken by the organization
marketing, production, planning and research team. It is important for the organization to
conduct an investigation for all the areas of the business but is also necessary that they should
focus on particular those areas which are significant for the weaknesses and strengths of the
organization (Self et al, 2015).
On the other side, external appraisal required to be identified for evaluating the opportunity of
profit maximization that can be exploited by the strengths of the organization and also to identify
the anticipate environmental threats. With the help of external environment appraisal, Premier
Inn can identify the declining in the economy, competitors, government legislations, actions,
industrial unrest. These are the factors against which organization should protect their business.
Economic factor: Economic factor in the external market indicates the financial and economic
condition of the country. Economic condition of the country surely affects the economic
condition of the organization. It is important for Premier Inn to identify the economic condition
of the UK so that they can plan their financial strategies according to this only. Economic
condition of the country is also depends upon the number of population living at the place.
Service demand of the Premier Inn is based on the population (Ikramullah et al, 2016).
Competitors: Premier Inn is one of the largest hotel chain based in the British hospitality sector
so they have number of competitors which create problem for them. It is important for the
organization to identify their competitors in the market. Hilton, Four seasons etc are one of the
competitors of Premier inn. With the help of market research they can identify their competitors
as they can take feedback of the people.
Government legislation: Government implement and creates various types of legislations and
laws which are related to the tourist welfare as well as employee welfare. It is important for the
organization to consider the government laws and follow them. This type of external factor affect
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their services because if they do not follow the government legislation than this may affect their
brand image (Felin et al, 2015).
Industrial unrest: Industrial unrest means when labour strike against the management and the
actions of the organization. This type of action taken by the employees or labour will affect the
productivity and profitability of the organization which cerate loss to the organization. This type
of industrial unrest condition will affect the internal functions of the organization.
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3 A review of the strategic options available to the organization and recommendations for future
strategic direction
Premier Inn organization has some of the strengths and weaknesses which are identified by
internal environment appraisal and economic factor, competitive factor, government legislation
and industrial unrest with the help of external appraisal environment. It is important for the
organization to enhance their strengths and overcome their weaknesses to achieve the benefits.
External affecting factors need to be identified so that negative impact of these factors can be
reduced. Internal as well as external factors affect can be reduced by implementing various types
of strategies which are related to the future strategic direction (Patton et al, 2015). Premier Inn
organization needs to identify the strategic direction which will help them to reduce the impact
of the internal and external factors of the organization and market.
Planning and assessment
Planning is the most important strategy that can be used to reduce the mismanagement within the
organization. To conduct this process or strategy it is required that their team should identify the
issues that create problems for their functions and operations. After identifying the main issue,
organization and its team should identify the person who can handle the critical situations of the
business and implement the plan as expected. Planning for organization betterment also includes
the arrangement of the official meeting in which they should discuss about the issues and its
solution (Vedung, 2017).
Create and implement governing structure
This is also one of the effective strategic which will provide specific direction to the organization
for improving their internal factors as well as to reduce the impact of the external factor. Before
creating governing structure, it is essential for the organization and its team to recognize the
requirement for the governing structure. This strategic is effective and significant for the
organization because this will provide the members of the Premier Inn with their clear guidelines
which help them to proceeding with future plans. With the help of governing structure they
create the structure which binds the members together and this will help them to interact with
each other.
Enhance the staff members and manage the volunteer efforts
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The organization covers various types of business functions and functions which are related to
the customer services so it is essential for them to enhance their number of employees. When
they increase the number of staff members it will become easy to delegate the roles and
responsibilities as per the skills and abilities (Arasu et al, 2016). It is also needed by the
organization that they can identify that whether organization can use the communities of the
volunteer pool. This type of strategic help the organization to guide the employees so that they
get connected with the business planning and evaluation the objective of the business. With the
help of governing the body related to the Premier Inn can see the value of utilizing the volunteers
and consultants with the goals and objectives of the organization.
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4 Recommendations for structure, systems and policies to implement these strategies
successfully
As per the requirement of the organization effective strategies are suggested which help them to
reduce the negative impact of the external factors and help to enhance the strengths. With the
help of above mentioned strategies they can make effective plans for reducing the competitive
impacts, attain the benefits of government legislation and achieve the trust and welfare factors of
the employees (Cascio, 2018).
Effect on organizational structure: Premier Inn organization is providing customers services
so there internal organizational structure is also planned as per the quality of customer services.
With the help of planning and assessment strategies they can improve the internal as well as
external structure of the organization. Pre-planning organized by the organization will help to
manage the functions and performance of the employees which will improve their working
efficiency and style. Internal culture of the organization can also improve with the help of these
suggested strategies.
Impact of strategies on organizational systems: Current system of the organization shows that
they are facing issues in internal management through which conflicts between the employees
may occur (Harper, 2015). With the help of governing structure creation will enhance current
system of the organization. Implementation of the governing strategies they can improve the
management and functional system of their organization. Governing structure, pre-planning and
enhancing the staff member’s strategies will help them to meet the competitive challenges.
Arrangement of the official meetings also covered in the organization system because this will
help the employees to interact with each other and share their thoughts and ideas with each other.
Improvement in organizational policies
Creation of governing structure strategy will help the organization to modify their policies in
respect of the employee welfare as well as for their customer benefits. Policies in the
organization are related to the employee management and quality of services to their customers
and that need to be planned and implemented as per the requirement of the internal and external
market of the organization (Ginter, 2018). Organizational policies need to be improved by re-
structuring the current policies which are related to the legal business structure, accounting
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