Premier Inn Hotel: A Case Study on Business Environment and Structure

This case study provides an in-depth analysis of Premier Inn Hotel's organizational structure, focusing on its functional structure and departmental coordination. It highlights the benefits of this structure, such as increased productivity and cost efficiency. The study also explores the hotel's business environment through SWOT and PESTLE analyses, identifying strengths, weaknesses, opportunities, and threats, as well as political, economic, social, technological, environmental, and legal factors impacting the business. The analysis reveals how Premier Inn leverages these strategies to maintain a competitive edge, manage risks, and capitalize on opportunities for growth and expansion in the hospitality industry. The report concludes that Premier Inn's strategic approach to organizational structure and environmental analysis contributes significantly to its overall success and profitability.

CASE STUDY

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
ORGANIZATIONAL STRUCTURE OF THE PREMIER INN HOTEL......................................3
BUSINESS ENVIRONMENT ANALYSIS...................................................................................4
SWOT Analysis...........................................................................................................................4
Pestle analysis..............................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
The businesses' organization basically describe the business structure and how that
composition helps company in achieving the goals of organization. This report will discuss on
the organization structure of Premiere Inn Hotel, it is the British hotel chain and one of the
biggest hotel brand of the UK with 800 hotels. The headquarter of company is situates at
Dunstable, England and founder of company is Whitebread. The company serve their services in
various area such as Germany, New jersey and United Arab Emirates.
Furthermore, the study mainly throw light on functional organization structure followed
by the organization and how it benefits company in expanding the business and enhancing
profitability. The report throw light on strategies use by the organization in analysing external
and internal environment of business such as PESTLE and SWOT.
Moreover, how these strategies helped the organization identifying their strengths,
weakness, threat and opportunities along with this how they identify the risk and reduce the
negative impact from the organization. The study also discusses on factors which are affecting
the business and how companies are dealing with it and what changes they have made to deal
with them. Thus, how this strategic approaches helps in overall development of the Premier Inn
Hotel.
MAIN BODY
ORGANIZATIONAL STRUCTURE OF THE PREMIER INN HOTEL
The organizational structure divides the work into every department it specifies and
delegate the job according to skill of each employee present in the sector. The Premiere Inn hotel
basically follow the functional organization structure in which they maintained coordination
between four departments such as reception and accommodation services, catering services,
personnel services and financial services. Likewise, the finance department manage the budget of
each organization and provide capital in new task so that all expense of the firm can be meet and
end goals can be achieved. Another function of company is catering services that manage food
and beverages service for customer such as making food for the guest they also provide dinning,
waiter food runner and cleaning services in hotel (Chepkwei, 2021).
Accommodation manager of the company solve issues face by the customer, welcome
their guest and provide them safe room and lodge to stay. The department align their role with
each other for proper maintenance of organization. The company follow this structure because it

gives certain advantages to hotel such as it has increase the productivity of the firm because
every department have skilled worker along with this it developed technical and inter personnel
skill of employees. It also brings clarity in environment of the organization because this
hierarchy is transparent and it also reduces the number of communication stages. Beside this, it is
a very cost saving operation because every department provide right skill to employees and there
is no need of opening similar small sector. Thus, this functional structure has benefited the
organization in reducing chaos and contributed in smooth functioning of each sector that has
increased the profitability of Premier Inn hotel (Fauzi and et.al., 2021).
BUSINESS ENVIRONMENT ANALYSIS
SWOT Analysis
It is basically used to evaluate the internal factors such as strength, weakness, threat and
opportunities of the organization which are mentioned below in detail:
1. Strength: Premier Inn hotel has a strong brand image which helps company to grow
business by opening 1200 hotels in the UK and increase its revenue of the organizations
and market share by 10% in 2020. Along with this company is also able to maintain
strong relation with stakeholders which help firm in taking key decisions for proper
functioning of the organization.
2. Weakness: The company face high competition that acts as a barrier to organization in
covering large area of market. Furthermore, the firm has to invest more in innovative
ideas that lead in increasing overall cost of the company. Along with this Premier inn
hotel do not focus on the intentional expansion of business which has harm the brand
authority of firm and overall decrease its customer share.
3. Opportunities: Premier Inn Hotel has open the travel industry along with present
business because travelers are looking for new destination. Therefore, the organization
has invested more in traveling and adapt itself with the new trends that will help
organization in increasing profitability. Along with this firm can also focuses on seasonal
offers which will help organization to attract the targeted and future customer and overall
increase in sales of the firm. Beside this the organization can merge with small business
and competitors who are closing down as it will help in expanding business regionally
and internationally (Benzaghta and et,al., 2021).

4. Threats: The high competition in the market is common threat face by the organization
because as a result it has to face challenge in attracting the potential customer for its
overall growth and development. Along, with this organization is also facing threat of
COVID-19 that has negatively affected the firm such as no profit because the customers
are avoiding traveling. Thus, the overall growth of the organization has affected that lead
in threat of operation of Premier inn in competitive environment. (Comprehensive SWOT
and PESTEL research report., 2021).
Pestle analysis
The PESTEL analysis is used to evaluate the external environment of the business it is divided
into the 6 categories that can be explained as :
1. Political factors: The stable political condition of government has contributed company
in effectively framing policies, taking decision that are fruitful for overall growth and
expansion of business. Likewise, globalization has acts as opportunity for the firm to
expand its business in international market to earn high profitability. While Brexit has
lead in decreasing overall sales as most of the people travel from EU to UK for different
purposes.
2. Economic: In 2008, the UK face situation of recession, that has resulted in many
problems for hospitality industry. So in order to cope up with recession, company has set
lower budget of hotels and make use of differentiate strategy to attract and retained
customers. Therefore, the demand of Premier hotel services was high compare to other
high ends hotel. Furthermore, currently, the demand of the customer is increased in the
tourism and hospitality because of improvement in their disposable income that has
resulted in increase in the sales of the organization.
3. Social factors: This factor includes elements such as demographic, income, lifestyle,
behaviours, social structure and other social factors that impact decision making of
customers in context of Premier Inn hotel. So to cope with these changing factor the
organization has invested more on unique services and make use of new trends like wise
robot staff, contact less payments, wireless Wi-Fi that will allow to attract the more
customer. The social factor has reduce the labour cost of the Premier Inn and improved
the profitability of the firm (Roy and Chowdhury., 2021).

4. Technological: Company operating in hospitality industry are making use of new and
innovative technologies such as the social media promotional activities to attract and
retained customer's in the firm. As it very cost effective method of promotion that allow
company in targeting potential customer in limited time frame through making use of
platform like Instagram. Facebook. The company is also making use of scanned card
technology in the hotel to deliver high quality services to customers. On the contrary
note, it has negative impact on organization, such as negative comment on the online
website hinder the brand image of company that directly affect revenue of Premier Inn
Hotel (Kara, 2018).
5. Environmental: Now days' customers are becoming more sophisticated about
environment. They keep an eye on what organization is doing in context of environment
such as waste management. Climate change is the major threats for the Premier Inn Hotel
such as penalty on waste of food or excessive noise pollution. Premier Inn Hotel have
taken various steps towards environment such as they have policy of low wastage of food
and company.
6. Legal factor: The company has abided to all the law and regulation of the country so to
avoid intervention of the government and NGOs in the business process. The
organization also keep an eye on new amendment in laws so to meet necessary changes
in legal framework of business. Such as with impact of COVID-19, it has ensured
maintenance of social distancing, sanitizing the hotels that has lead in increasing cost of
business operation and revenue of the firm (Pan and et.al., 2019).
CONCLUSION
The above report concludes about the organizational structure followed by company and
the manner in which the structure helps firm in maintaining the smooth function in every
department of an organization. The Premier Inn mainly follow functional structure in
organization in which various department such as finance, accommodation section and catering
department work together in order to avoid chaos and conflict between employees.
Furthermore, structure has helped in maintaining the transparenc between the department
and coordination among employees. Beside this organization structure is also very cost-efficient
for the Premier Inn Hotel as this formation improve the skills of each employee. However, the
study also summarized on strategies use by the company for analysing external and internal

business environment such as SWOT and PESTEL. Likewise SWOT this strategy allow
organization to know strengths, weakness, threat and opportunity for a company.
Whereas, the PESTEL analysis the external environment of the business by dividing the
threats and opportunities into political, economic, social, technological, environmental and legal.
Using both strategy allow the firm to expand their business and take competitive advantages.
Furthermore, these strategies benefits the company in identifying potential threat and reduced the
negative impact from business along with this it also creates a method to find out new
opportunities. Moreover, allowed the firm to assess the various key decisions before
implementations.

REFERENCES
Books and journals
Benzaghta, M. A.and et,al., 2021. SWOT analysis applications: An integrative literature review.
Journal of Global Business Insights. 6(1). pp.54-72.
Chepkwei, A., 2021. STRATEGY IMPLEMENTATION IN HOSPITALITY INDUSTRY:
GLOBAL PERSPECTIVE. Journal of Strategic Management. 6(1). pp.33-45.
Fauzi, T and et.al., 2021. The effect of internal elements of strategic management of
organizational structure, management role and employee behavior on corporate
mission. Management Science Letters. 11(4). pp.1189-1196
Kara, E., 2018. A contemporary approach for strategic management in tourism sector: pestel
analysis on the city Muğla, Turkey. İşletme Araştırmaları Dergisi.10(2). pp.598-608.
Pan, W., and et.al., 2019. PESTEL analysis of construction productivity enhancement strategies:
A case study of three economies. Journal of Management in Engineering. 35(1).
p.05018013.
Puyt, R.,and et,al., 2020. Origins of SWOT Analysis. In Academy of Management Proceedings
(Vol. 2020, No. 1, p. 17416). Briarcliff Manor, NY 10510: Academy of Management.
Roy, M. and Chowdhury, S., 2021. Ecotourism and Hospitality in Bangladesh: The Application
of PESTEL Analysis and Determining the Internal Factors. Tourism Products and
Services in Bangladesh, p.181.
Online references
Comprehensive SWOT and PESTEL research report., 2021. [Online]. Available through
<https://www.swotandpestle.com/whitbread/>