MGBBT0UBN - Premier Inn Case Study: Business Organisations

This case study provides an analysis of Premier Inn's organizational structure, highlighting its flat hierarchy and the roles of general managers and other key personnel. It delves into the internal and external factors impacting the business, utilizing SWOT and PESTLE analyses. The SWOT analysis identi...Read More

UNDERSTANDING
BUSINESS
ORGANISATIONS

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Organizational structure of Premier Inn......................................................................................1
Internal and external factors which impacts over the Premier Inn business...............................2
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Business organizations as an entity helps to resolve the primary purpose of carrying on
commercial enterprise (Cöster and et.al., 2020). Thus, it is highly important that the business is
in organized manner in order to fulfil the business objectives which includes growth,
profitability, survival and efficiency. This report is based upon the company Premier Inn and
will illustrate the organization structure and internal as well as external factors which impacts
the business entity.
MAIN BODY
Organizational structure of Premier Inn
Premier Inn Plc. Is the largest hotel chains within the United Kingdom with having more
than 500 hotels and highly popular with many people. Moreover, it has been identified that
approximately 76% of residents of UK live within the five miles radius of the Premier Inn hotel.
In context of organizational structure, the company follows flat organizational structure which
means that they have relatively small number of layers in their hierarchical chart. A hotel
organizational structure is a comprehensive plan produced by any hotel owner in order to define
departmental responsibilities and activities (Ford and Sturman, 2018). The Premium Inn
company structure helps to control the hierarchy of the organization and define authorities as
well as duties of its members. The company structure is highly efficient in order to influence its
abilities to achieve their strategic goals. Within their structure, there are approximately 120
general managers who are working in order to achieve the company goals as well as objectives.
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Organizational structure of Premier Inn
It includes all the activities such as work allocation, coordination and monitoring of all
parts of the company structure. The company adopts unique business model through which they
are able to gain competitive advantages even during difficult times of market conditions. The
company adopts easy and flat structure which has been shown above according to which general
managers have assistant general manager who provide directions to resident manager. Now the
resident manager accountable to guard director of house keeping, front office manager, chief
engineer, director HR, director sales, controller, etc. (Hasan, 2019). Now they provide
directions to their assistant position and other executives. In such ways the company is able to
fulfil heir objectives and goals.
Internal and external factors which impacts over the Premier Inn business
In order to evaluate and do internal evaluation of the company, the SWOT analysis of
Premier Inn which aims to examine strengths and weaknesses of the firm along with certain
opportunities as well as threats to their business activities.
Strengths
 The Premier Inn is at vary good position within the hotel industry as the occupancy rate
of the hotel is more than 77%.
 The company has its strong presence as they have more than 800 hotels in the UK along
with having approximately 800000 rooms and serves over five million consumers every
month (Papadopoulos, Lopez‐Andreu and Jamalian, 2021).
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 Most of the Premier Inn hotel premises are located near airports as well as great tourism
attractions.
 The company has its great brand image and voted as the best UK economy brand hotel
according to the British travel awards.
Weaknesses
 the limited global presence of the Premier Inn is their biggest weakness as they operate
in limited countries.
 The organization has been accused of refusing the refunds to their consumers who
booked to stay in Wales at the time when it came into strict lock down. This creates
negative image of the establishment.
 The enterprise faces big issues in context of hygiene manner as the housekeeping staff of
Premier Inn found to use guests towels to clean the entire bathroom along with toilets.
Opportunities
 After entering into the Germany, the company has effectively got into republic of
Ireland. Thus, they have been recommended to explore more countries and regions.
 Premier Inn has 28 hotels in Germany which offers further opportunities of growth as it
is one of the most visited place among Europe (Alvarez-Risco, Estrada-Merino and
Perez-Luyo, 2020).
 With the help of providing new decorative opportunities, the company can achieve their
success measure.
Threats
 There are various competitors of the company has been presented into the market space
which also provides similar kind of budgeted services.
 The company also have legal threats which includes risks related to legal actions.
 Lock down situations also acted as the major threat for the company as during that
specific point of time, the company becomes highly affected.
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In order to evaluate and go for external factors analysis of the company, it has been
identified that this particular concept has been discussed with the help of PESTLE analysis
below:
 Political: With the help of positive collaboration within the hospitality industry helps
into the overall economic development in UK. The government of United Kingdom
started the “Eat out to help out scheme” after the initial lifting of restrictions as an
economic recovery measure to assist hospitality sector to reopen and get revenue (Neoh,
2018). This scheme was started with an aim to encourage outside eating of people, and
generate more revenue for restaurants who are facing huge amount of losses during the
lock down. All the Premier Inn brands and hotels were taken participate into the activity
or scheme and make sure about the measures that were in place for guests to have safe
and secure din in experiences.
 Economic: The financial crisis in 2008 had dropped down the UK into recession and
causing wide scale issues and challenges for companies such as Premier Inn. Budgeted
hotels are considered as an inferior goods and thus in times of recession, demand for
service Premier Inn generates great level of rise. It also gets less affected due to superior
or high end hotels. Due to this, the encouraging power of consumers are expanded of
their budget hotel chains. With the growing demand, the company is making tremendous
expansion of their businesses.
 Social: With the changes occurs into the social circle, changing life style as well as the
living standards brought various social as well as cultural changes all across the world.
The living costs increase, people more likely to prefer low cost products and services that
are accompanied by high level standards of value for money. Such social changes bring
different though patterns among users which includes influencing the hospitality industry
around the world. This influences the consumer behaviour into decision-making to
provide high value for money, easy accessibility, responsive towards customers demand,
variables room rates, etc. The Premier Inn is largely focuses towards the customer
satisfaction and keep regenerate their business strategies with constantly changing their
social values as well as consumer preferences (Erdem and Şeker, 2022).
 Technological: It is the variable that directly influence the business operations. These
operations do not include the high level of technology and the major focus is over the
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budget hotel sector which is directly linked with the electrical appliances and availability
of IT services for easy comfort. This helps the Premier Inn to maintain a good-looking
and interactive website which enables them for smooth functioning of their operations.
The company also appropriately able to facilitate online reservations along with maintain
a database of consumers along with keep sending messages regarding new products and
services as a way of promotional campaign.
 Environmental: The social responsibility and care environment are considered as the
central part of consumers expectations and preferences. As per current scenario,
consumers are more likely to support the firm who are responsible towards the
environment provide due conscientiousness to adopt business operations. Premier Inn
has very strong emphasis over the CSR practices and thus creates a good CSR strategy
for better operating into the external environment. The primary objective of Premier Inn
is to reduce carbon emission and waste reduction from their hotels and restaurants along
with water consumption by 20%.
 Legal: The government of United Kingdom has increases the wage rates by 16% which
costs into increasing operating costs of the budget hotels. This enhances the cost of
production which highly hampers the policy to offer their services at competitive prices
to their users (Johnson and Scholes, 2020). In order to avoid any kind of legal matters the
Premier inn developed a responsible sourcing policy according to which the minimum
standards and principles of cooperation have been fulfilled in context of contractors,
suppliers and business partners. The firm also sets out commitment towards work with
the help of their suppliers as required and to support the practical implementation of the
policy among the company.
CONCLUSION
From the above report it has been concluded that appropriate structuring of organization
plays a major role as it will give employees more clarity along with help them to manage
expectations, enable better decision-making as well as provide consistency. The proper chart is a
thing which helps them to assign proper responsibilities, organize workflow and ensure the
completion of tasks within stipulated time frame. In addition to this, the internal and external
varied factors plays their significant role in order to make the establishment successful within
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the market space in which all other competitive firms are also available to operate within the
similar sector and with same kind of offerings.
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REFERENCES
Books and Journals
Alvarez-Risco, A., Estrada-Merino, A. and Perez-Luyo, R., 2020. Sustainable development
goals in hospitality management. In Sustainable Hospitality Management. Emerald
Publishing Limited.
Cöster, M. and et.al., 2020. Organisations, Processes, Decisions: Strategies for a Digitised
Century.
Erdem, A. and Şeker, F., 2022. Tourist Experience and Digital Transformation. In Handbook of
Research on Digital Communications, Internet of Things, and the Future of Cultural
Tourism (pp. 103-120). IGI Global.
Ford, R.C. and Sturman, M.C., 2018. Managing Hospitality Organizations: Achieving
Excellence in the Guest Experience. SAGE Publications.
Hasan, M., 2019. The Effectiveness of e-learning in Staff Training to Gain Hospitality
Organizational Excellence. AIUB Journal of Business and Economics, 16(1), pp.252-
267.
Johnson, G. and Scholes, K., 2020. Exploring strategy. Pearson UK.
Neoh, H.L., 2018. A Study in Hotel Sector in United Kingdom: Liquidity Risk and Its
Determinants. Available at SSRN 3181621.
Papadopoulos, O., Lopez‐Andreu, M. and Jamalian, M., 2021. Violation and lack of awareness
of employment rights in the United Kingdom's hotel industry: Isolation, fragmentation
and barriers to labour enforcement. Industrial Relations Journal, 52(4), pp.315-330.
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