MGBBT0UBN - Premier Inn Case Study: Business Organisation Analysis

This case study provides an in-depth analysis of Premier Inn's business organization, focusing on its hierarchical structure and the impact of external factors on its operations. The study utilizes SWOT and PESTLE analyses to evaluate Premier Inn's competitive position, strengths, weaknesses, opportunities, and threats, as well as the political, economic, social, technological, legal, and environmental influences affecting the hotel chain. The analysis highlights the challenges Premier Inn faced during the COVID-19 pandemic and its strategies for recovery, including leveraging its brand reputation and implementing safety measures. The study concludes that Premier Inn maintains a strong position in the UK budget hotel segment due to its competitive model and effective organizational structure, while also acknowledging the ongoing need to adapt to external market dynamics and consumer preferences. Desklib offers a variety of resources including similar case studies and solved assignments for students.

Level 0 Guide – Case Study
2021/2022.
Understanding Business
Organisation
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Table of Contents
1Introduction .............................................................................................................................2
2Organisational Structure of Premier Inn Hotel – ....................................................................3
3Business Environment Analysis of Premier Inn Hotel .............................................................4
3.1SWOT Analysis –................................................................................................................4
3.1.1Strength......................................................................................................................4
3.1.2Weaknesses................................................................................................................4
3.1.3Opportunities.............................................................................................................5
3.1.4Threats........................................................................................................................5
3.2PESTLE Analysis - ..............................................................................................................5
3.2.1Political Factors..........................................................................................................5
3.2.2Economical Factors....................................................................................................6
3.2.3Social Factors..............................................................................................................6
3.2.4Technological Factors.................................................................................................6
3.2.5Legal Factors...............................................................................................................7
3.2.6Environmental Factors...............................................................................................7
4Conclusion................................................................................................................................7
5References ...............................................................................................................................9

1 Introduction
The term business organisation defines the structure of business and in what way it
helps in meeting the goals. The business are basically focused on either generating profit or
improving society. The business organisation has different categories that is associated with
how business is established, owned and operated. The business organisation is treated under
the law how business is operated (Abednego, A. and Syah, T.Y.R., 2019). It provides the
flexibility in the management. The discussion is on the premier Inn hotel which is a British
hotel chain and largest brand IN UK having 72,000 rooms and 800 hotels. In variety of
locations the hotel is operated involving city centres, suburbs and airports. This hotel was
established in 1987 by Whitbread as Travel Inn to compete with Travelodge. The headquarter
is located in Dunstable, England, UK. The premier inn has affected due to the Covid-19 as
the purchasing power of the customers was declined due to loss of their job and due to lock
down there was an affect on sales of hotel. In the study the discussed topic is on the
organisational structure of premier Inn hotel and the defining the business environment
analysis of hotel by including the SWOT analysis and PESTEL analysis to know how
premier inn is affected with Covid-19.
2 Organisational Structure of Premier Inn Hotel –
The organisation structure defines the ways in which activities of organisation are
divided and grouped and coordinated among the managers and employees. The structure is
based on the organisation design. It includes the rules, roles and responsibilities. The premier
inn uses the hierarchical organisation structure which is shaped in the form of pyramid. The
chain of command is followed from top to bottom and each employee has supervisor. The
roles and responsibilities of the department in the structure remain same and maintains well
functioning. In the executive level it comprises owner and general manager where the
standard and policies of the hotel is set by owner and delegates the implementation to general
manager. The general manager is responsible to manage day-to-day activities and oversee the
functioning of various departments. In this the assistant manager is right hand of general
manger which renders the support for number of tasks (Babu, M.V.M.S., 2020). The mid-
level hotel managers includes the positions of front desk, food and beverage, sales,
marketing, housekeeping manager etc. the operational staffs includes the persons that work in
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different hotel departments. In the tall structure it represents the different layer of
management which has many leaders. It has narrow span of control and less number of
subordinates. The communication pathway is long moves in chain of command. This
structure will benefit the organisation as managers will have tight control over employees,
area of business will closely managed and produces excellent progression opportunities. The
advantages of the structure is it defines better level of authority and responsibility. The
employees are motivated with clear paths and leads to chances for promotion. The
disadvantages is due to increased bureaucracy he innovation or important changes can be
slow down. Lower-level employees feels they have less ownership and cannot express their
ideas for company. It take long time for important decisions (Garriga Ferrer, M., 2020).
3 Business Environment Analysis of Premier Inn Hotel
The business environment defines the external forces, factors and institutions that are
beyond the control of the business which affects the organisation functioning. There are
various factors which has the direct influence on the business firm involving customers,
Illustration 1: Hierarchical organisation structure, 2021

suppliers, government and competitors. It can also defined as external factors which includes
PESTEL analysis that is uncontrollable in nature and business decisions are affected (Holt,
M., 2018).
3.1 SWOT Analysis –
It is a strategic planning technique used to evaluates the company competitive
position. It assess the internal and external factors as well as current and future potential. It
helps in identifying the strength, weakness, opportunities and threats that leads to new ideas
and fresh perspective. The SWOT Analysis of premier inn hotel are-
3.1.1 Strength
In the UK it is the most profitable hotel which risen its operating profit by 7.4%. It
has the strong presence which establishes a reputed brand image. It has more than 50,000
rooms and nearly 700 hotels. It is highly advertised chain of hotels. It provides various deals
and offers for online booking to the customer and facility of free WI-FI. To be finest hotel in
Britain it has been recognised with several awards. The hotel with the help of its reputation
gain the customers back due to the pandemic and started earning profits in same was as was
earlier before Covid-19 (Mayer, C.H. and Boness, C.M., 2020).
3.1.2 Weaknesses
The weakness for the premier inn is it has a great issue with the hygiene as founded
house keeping staff using the same towel of guests for cleaning the entire bathroom. The
limited global presences is the weakness for premier inn in comparison to other markets as
operated in limited number of countries. There is small margin for the brand with the intense
competition. Due to the occurrence of the pandemic as the hotel may have the loss of
customers which is the greatest weakness as the large number of people plans in the vacations
and have the demand of the best hotel.
3.1.3 Opportunities
The premier inn has the opportunity of new market after successful entry in Germany.
It also has the opportunity of new décor which surprises the guest in the budgeted hotel
segment. The hotel has the opportunity of making investment in the digital marketing which
also helps in building brand value through customer experience. Presently, people of various
countries are stepping out of their houses for vacations to relax themselves from the
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conditions of pandemic and lock down which gave the opportunity to the hotel in attracting
customers (Rajamanthri, S., 2021).
3.1.4 Threats
The premier inn has the threat of facing competition from the competitors such as
Travelodge Hotels Ltd, ACCOR, Holiday inn within the same category of budget hotel
segment. There is decline in tourism due to disaster and terror activities. The hotel can have
the threat of legal actions. The hotel takes the safety measures as even a single case of Covid-
19 in the hotel can close the gates of whole hotel chain.
3.2 PESTLE Analysis -
It describes to the framework of micro-environmental factors which is used for the
environment scanning. It is a part of external analysis providing an over\view of different
macro-environmental factors when conducting a market research. It helps in making
understanding of market growth or declining, business position.
3.2.1 Political Factors
This factor is related to the intervenes of government in economy which includes
factors such as trade restrictions, tax policy, political stability, and tariffs. The government
influences has decreased the corporation tax which has the unfavourable impact on the
premier inn. The positive collaboration with the UK government has objective to increases
the opportunity of tourism in the country which affected hotel favourably. The political party
sets the travel ban which will affect the hotel and tourism industry of premier inn due to
Covid-19. The government control the taxes. A tax reform must be there so that hotel owner
can pay lower taxes to improve the hotel by building more accommodations for guests.
3.2.2 Economical Factors
This factors has impact on economy and performance which affects the company and
profitability. The factors are interest rates, employment, foreign exchange rates, inflation
rates. The premier inn hotel is affected with the economic changes in the economic cycles.
The currency impacts the hotel favourably and unfavourably a weaker pound or Dollar will
increase visitor in USA and UK cheaper. The recession and other economic difficulties will
impact the people on the selection of the hotel and will be interested in budget hotels. The

government can help the premier inn by decreasing the taxation for some time due to the
affected from the COVID-19 the hotel industry. (Swapna, B., 2018).
3.2.3 Social Factors
This focus on social environment and emerging trend is identified which help the
marketers to understand the customer needs and wants. The factors involved changing family
demographics, cultural trends, change in lifestyles. The Airbnb affects the premier inn due to
change in consumer preference in accommodation. It provides the booking quickly and
conveniently. The change in the cultural and trend and the preference of the customer
regarding budget affects the hotel unfavourably. But after Covid-19 the demand of good
hotels has increased but the firm will not be able to create enough supply due to its limited
global location and will provides the rooms safely by having proper sanitisation.
3.2.4 Technological Factors
The rate of technological innovation and development is considered which affects the
hotel. The factors involve automation, research and development. The development of the
new technology in the premier inn affects the hotel favourably and 24/7 services can be
provided with the help of internet. The travel sites make the hotel competitive where the
people can shop prices and read the reviews by this it can affect unfavourable and favourably
in the growth of hotel.
3.2.5 Legal Factors
The legal laws and legislation affects the company operations and demand for the
product. The factors involved are discrimination law, consumer law, health and safety law.
The premier inn is forced to comply with the health and safety laws and offer equal
employment opportunities. Due to covid-19 the people still have the fear of eating foods from
outside or in restaurants as they think whether the safety measures have be taken or not.
3.2.6 Environmental Factors
This factors influence the surrounding environment and impacts the ecological
aspects. The factors involved are climate, recycling procedures, sustainability. The global
climatic change affect the premier inn unfavourable due to the disruption in transport
especially rail network as a result of flood and the cancellation of the flights, close of rail
network the hotel lost customers. The owners of the premier inn understand the seasonal
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differences and adjust their pricing of the rooms for the guests which affects favourably and
helps in increasing sales and growth. Still there are some people who are reluctant to stay
hotels due to the Covid-19 as they think the rooms are not properly sanitised or think of the
virus which have a negative impact on hotel. (Thamaraiselvan, N and et.al., 2018).
4 Conclusion
From the above study the conclusion has been made that the organisational structure
has the affect on the business of the premier inn hotel. From the SWOT analysis the premier
in will remain leader in the budget hotel segment in UK. It has the strong competitive model
which is hard to compete with others. The analysis of PESTEL shows the premier inn
experience major competition with other hotels and the functioning and operations of the
hotel is affected with the various external factors. The SWOT and PESTEL analysis are the
the parts of the business environment which affects the business organisation. The analysis of
the external factors helps in knowing the impact on market and consumer demands. It has
concluded the hotel premier inn has suffered a lot in the situation of pandemic and lock down
as the hotel doors were closed. But due to its strength it used the opportunities and attracted
more customers back and launched various schemes. The structure followed by the premier in
also helped him increasing the sales and to attract more customers as due to pandemic
everyone was working carefully and taking the proper sanitisation everywhere. The
organisation also uses the hierarchical structure to complete task efficiently.

5 References
Books and journals
Abednego, A. and Syah, T.Y.R., 2019. Implementation of SWOT analysis in hospital
management using the JKN-KIS service concept. Russian Journal of Agricultural
and Socio-Economic Sciences, 2(86), pp.171-176.
Babu, M.V.M.S., 2020. Assessment of Development Opportunities for a Water Purification
Start-up in India.
Garriga Ferrer, M., 2020. Business plan of Nanotarg: a technological platform aiming to treat
pancreatic cancer.
Holt, M., 2018. The Common curriculum: its structure and style in the comprehensive school.
Routledge.
Mayer, C.H. and Boness, C.M., 2020. Experiences of Chinese and Tanzanian cooperation in a
Chinese organisation in Tanzania. In Chinese Organizations in Sub-Saharan
Africa (pp. 204-233). Routledge.
Rajamanthri, S., 2021. Current trends of HRM towards effectiveness of the
organisation. Archives of Business Research, 9(5).
Swapna, B., 2018. Cultivation and Marketing of Tuberose (Lily) Flowers by the Rural Poor:
An Approach of Swot Analysis. International Journal of Agriculture, Environment
and Biotechnology, 11(1), pp.137-140.
Thamaraiselvan, N and et.al., 2018. Evaluation of employee brand using typological analysis
in Indian airline organisation. International Journal of Business Excellence, 16(4),
pp.478-496.
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