Business Organisation: Premier Inn Case Study - SWOT and PESTLE

This case study examines the business organisation of Premier Inn, a leading UK hotel chain, focusing on its organisational structure and the impact of internal and external factors. It explains the hierarchical structure used by Premier Inn for information flow and decision-making. The study employs SWOT and PESTLE analyses to assess the company's strengths, weaknesses, opportunities, threats, and the influence of political, economic, social, technological, legal, and environmental factors, particularly in the context of the COVID-19 pandemic. The analysis reveals the pandemic's negative impact on the hospitality industry, altering customer perceptions and necessitating adaptations to new guidelines and government policies. The report concludes that understanding the business environment and adapting to external factors are crucial for Premier Inn's continued success.

Understanding Business
Organisation Case
Study

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK...............................................................................................................................................3
Explain what is organisational structure and in context of the organisation. .............................3
Discuss the internal and external analysis using SWOT and PESTLE which can impact the
business after the covid-19 impact. ............................................................................................3
CONCLUSION ...............................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
The word business organisation means that it is a entity which is formed for the purpose
of carrying on the commercial enterprise of selling and buying. It is very important for the
management to understand their type of business in order to conduct the various activities. The
understanding of the business requires the various aspects such bas the use of the various internal
and external analysis which can impact the busine4ss organisation. This report is based on the
Premiere inn which is the British limited service hotel chain and the United Kingdom largest
hotel brand. The organisation has more than 72000 rooms and 800 hotels. The organisation has
operated its hotel in variety of locations including city centrers, suburbs and airports(Ziora,

2020). This report will include the various topic such as the organisational structure, swot and
pestle analysis in context of the organisation.
TASK
Explain what is organisational structure and in context of the organisation.
The organisational structure is defined as the various activities such as task allocation,
coordination, and supervision are directed towards the achievement of the business organisation.
The structure of the organisation affects the people and their actions within the workplace. The
structure helps in providing the foundation on which standard operating procedures and routine
are conducted. It is very important for the business organisation to have the right structure so that
they can achieve their goals on the right time with the right way. The organisational structure
also defines the flow of the information in the organisation.(Staniškienė and Stankevičiūtė,
2018).
Hierarchy structure- It is the structure where the organisation contains the direct chain
of command from the top level to the bottom level of management. In such type of the structure
if someone from the top management wants to make decision, it has to be passed to the bottom
level through the chain of command of approval. This is the most convenient structure which is
been followed by the Premiere inn in order to have the transparency and the flow of the
information(Al-Dmour, Masa'deh and Obeidat, 2017). This is the structure been adopted so that
the employees do not have the confusion of who has to report to whom ad the information is
been passed from the de[department to the flow of a chain.
Discuss the internal and external analysis using SWOT and PESTLE which can impact the
business after the covid-19 impact.
The internal and external analysis is conducted in context of the Prim-ere inn by use of the swot
and pestle analysis.
SWOT analysis- It is the tool which is used by the business organisations to identify what the
company is hiving in present as its strength and weakness. Also it helps in identifying the future
opportunities and threats the company can have. The swot analysis of Premiere Inn is explained
below:
Strengths Weaknesses

 Strong presence in the UK- The
company has over 800 hotels in the
United Kingdom. The company serves
over five million customers every
month. The company has a good
number of hotels in Germany as well.
 Brand image- The company has a very
good image over the years. The
company has the facility of 24*7 Wi-Fi
facility to attract customers(Lanz and
Brown,2020).
 Occupancy rate- The occupancy rate
of the company is more than 76.3
percent. Premier inn is an the very good
position in its industry.
 Limited global presence- This is the
weakness of the company compared to
some other market giants. The Premier
inn operated in the very limited
countries.
 Refund issues-The company has been
accused of refusing the refund of some
of the customers who have booked the
room to stay which then further came
into strict local lock downs.
 Hygiene- It was found that one of the
housekeeping staff was using the same
guest towel to clean the entire
bathrooms, including toilets. This
impacted in the mage of the company.
Opportunities Threats
 New markets- The company has the
opportunity to explore the new market.
After the successful entry in Germany,
the company finally got into the
republic of Ireland as well.
 Growth in Germany- The
organisation has 28 hotels in Germany.
The country offers farther growth
opportunity for the hotel as it is
considered as one of the most visited
hotel in Europe.
 New decor- The some of the hotels is
been trailing an upmarket room design.
This is the opportunity for the
 Competitors- The main competitors of
the Premiere Inn are holiday inn,
Marriott. Easy hotel etc. they are
considered as an strong competitor in
the market.
 Legal threats- Due to the some of the
issues which are discussed in the
weakness there was the risk of the legal
actions again the Premiere inn
 Lock down- The pandemic and the
lock down have the impacted the
company in the various ways. This has
been challenging for the company in
future as well.

organisation to attract customer.
PESTLE ANALYSIS- This is the framework which is used by the various business
organisation in order to evaluate the external factors which can influence the operations and the
other activities of the business organisation. It is very important aspect to be undertaken by the
marketers so that the company is aware about the opportunities and various impact which can be
faced by the organisation. The various factors are discussed below:
Political- This is the factor related to the extent to which the government policies may
interfere in the business organisation. Such factors include policies, trade restrictions, trade
barriers, etc. the hotel industry has been affected due to the Brexit move(Pedler and Burgoyne,
2017).
Economical- This is related to the performance of the economy can impact the business
organisation. Such factors include inflation rate, interest rate, disposable income etc. the impact
of the pandemic have impacted negatively to the company. Due to this the company has to face
losses because of the lock down(Honey, 2017).
Social- This is related to the factors which can help the marketers to identify the cultural
trend in the market. Such factors include the change in lifestyle, behaviour attitude of the
customers. It is very important for the company to understand the trend which is need to be
followed after the covid-19 and the preferences of the customers related to health and safety.
Technological- 'This is related to the technology and innovation in the world have direct
impact on the business organisation. Such factors include research and development, artificial
intellige4nce, digitalisation etc. the Premiere inn need to focus on the innovation in such a way
that customers are attracted. The self check in and out can be useful strategy in order to attract
customers.
Legal- This factors is related to the certain laws which need to be followed by the
organisation. Such factors include the employment law, labor law etc. The company has operated
in the different locations and it is very important for the organisation to adhere to the
employment safety law and the precautions need to be taken for the employees so that they
cannot catch virus.(Mouzelis, 2017)
Environmental- This factors is related to the effect of the surroundings environment and
the influence of the ecological aspect. Such factors include sustainable development,

environmental protection laws etc. the company has the pressure from the government so it is
very important for the organisation to take safety measures related to the environment. The
company practices in the sustainable development.
From the above internal and external analysis is is concluded that the company has a
negative impact of the pandemi8c and the covid-19. The rule and regulation and also the
perceptions of the people have been changed because of the spread of the virus. The customers
now look in a different way because they have the fear on the virus in the mind. Also the policies
of the government have impacted the business organisation. The company has been faced losses
due to the lock down where the businesses ere shut down for the months(Elo. and Volovelsky,
2017).
CONCLUSION
From the above report it is concluded that it is very important for the management to
understand the type of business. The business organisation have the impact of the various
external factors. The covid-19 have impacted the hospitality industry and the Premiere inn was
also negatively impacted during the pandemic. The organisational structure which is been
followed by the company is hierarchy structure in order to flow the information in a systematic
manner. The swot and pestle analysis of the organisation conclude that the organisation need to
be aware of the new guidelines in order to eliminate any kind of government actions

REFERENCES
Books and Journals
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Pedler, M. and Burgoyne, J.G., 2017. Is the learning organisation still alive?. The Learning
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