MGBBT0UBN: Premier Inn Hotel - Business Organisation Case Study

This case study provides an analysis of Premier Inn Hotel's business organisation and its environment. It begins with an introduction to the hotel chain, highlighting its origins and global presence. The study then delves into the organisational structure of Premier Inn, discussing divisional and hierarchical structures, and their impact on business operations. A SWOT analysis identifies the hotel's strengths, weaknesses, opportunities, and threats, while a PESTLE analysis examines the political, economic, social, technological, legal, and environmental factors affecting the business. The report concludes by summarizing the key findings of both analyses, emphasizing the impact of COVID-19 and the importance of adapting to the changing business environment.

Level 0 Assignment Guide –
Case Study
2021/2022.
Understanding Business
Organisation
1

Table of Contents
1Introduction – 200 words.........................................................................................................5
2Organisational Structure of Premier Inn Hotel – 300 Words...................................................5
3Business Environment Analysis of Premier Inn Hotel – 50 Words...........................................5
3.1SWOT Analysis – you can use 300 Words to carry out SWOT analysis.............................5
3.1.1Strength......................................................................................................................5
3.1.2Weaknesses................................................................................................................5
3.1.3Opportunities.............................................................................................................6
3.1.4Threats........................................................................................................................6
3.2PESTLE Analysis - You can use 450 words to carry out a PESTLE analysis........................6
Under this heading, you will define what is meant by PESTLE analysis. ...............................6
3.2.1Political Factors..........................................................................................................6
3.2.2Economical Factors....................................................................................................6
3.2.3Social Factors..............................................................................................................6
3.2.4Technological Factors.................................................................................................6
3.2.5Legal Factors...............................................................................................................6
3.2.6Environmental Factors...............................................................................................7
4Conclusion – 200 words...........................................................................................................7
In your conclusion, you will present the summary of the key findings of the SWOT and
PESTLE analysis and conclude your case study..........................................................................7
2

1 Introduction
Business environment is the analysis in the market which maintains all the current
condition through which all the position in the markets are adapted. It involves all the
machines and the technical use in the companies in order to generate goods and manage
profit and productivity. This case study will provide details on Premier Inn Hotel it was
originated in 1987 in Dunstable, England with the help of Whitbread (Ford, and Sturman,
2018). This hotel covers a wide chain in different countries with all the major facilities some
of the areas explored by it is Germany, Ireland, Jersey, United Arab Emirates, Isle of Man
and other in UK. It covers wide hospitality sector and there are so many hotels which are
being established by it. In this report their will be discussion about major problems arises at
the time of COVID-19 in Premier Inn Hotel and will also cover the economic regulations.
Their will be an internal and the external analysis in order to know the competitive strength
of the hotel and further will also manage all the general affairs related to Hospitality and
management with their immediate concerned issue and validations.
2 Organisational Structure of Premier Inn Hotel
This is generally outlining all the activities which are given by the company in order
to propagate the business in a systematic approach and also to manage and achieve all the
goals and the targets within mean time. Premier Inn Hotel use the Divisional organisational
structure. It is the segmentation of the company in different groups through which they tend
to manage all the work in distributed divisions. As this serves to be a hospitality sector their
consist to have different departments for all the work (Gutzke, 2019). Food and Beverages,
marketing, accounting, room services and many more all these are managed in team work as
the industry divide all the segments and their lead to manage the working in the mean time
and also try to frame the work in proper and systematic approach. This helps out to frame and
analyse all the requirements of the customers and to give them the positive approach towards
the hospitality. Premier Inn Hotel can also manage Hierarchical organisational structure as it
considers the flow of information is being made to top to bottom and their can be
implemented the ideas in which the top level management can also analyse and examine the
work of all the employees being working under them. This will make the systematic approach
and they can also implement to frame the ideas through which all the methods and the floe of
3

information is made. As the managers can try to make the working culture to be creative and
innovative and they can also give the technique in order to manage all the house keeping and
other departments and their work. Thus, it is important that Premier Inn Hotel can frame an
systematic working through which the growth can be made and a clear directions and
stimulations being provided. As the general managers can lead to promote the strategy
through which new and assigning works can be given (Gertler, and Hayden, 2018) .
Illustration 1: Premier Inn Hotel organisational structure, 2020
3 Business Environment Analysis of Premier Inn Hotel
It is the examination and the gathering of the relevant and important information
about the hospitality sector through which all the conditions and the factors can be managed.
It promotes the success and stability in the business as for Premier Inn Hotel the tools that
will help in managing are like PESTEL analysis and SWOT (Borsay, 2017).
3.1 SWOT Analysis
It is an internal tools which helps in evaluating and analysing all the current situation
of the organisation as by knowing the strength, weakness, opportunities and threat of the
company. In context to Premier Inn Hotel it is being mentioned as follows:
4

3.1.1 Strength
The Premier Inn Hotel have about 700 hotels of their branch and they also consider
about 50000 rooms over their for which they had also gained the best hotel chain in the
British travel award and is also well recognised by the customers for their safer and best
facilities(Cwako Monkam, 2021). It also contains high advertisement in the country as they
have the efficient team for marketing and managing. It also frame to manage different online
platform in which they manage to provide all the important details about Premier Inn Hotel
so as to gain the attention of the customers and also to manage the work properly. They also
provides exciting offers to their customers in which they make the loyal customer base by
managing and giving different deals for which they are also being recognised as the serving
best hotels with optimum facilities so far.
3.1.2 Weaknesses
The Premier Inn Hotel contains and gave different and wide competition in the market
as they have several chains but as for all such small chains hotels there is being provided so
many better options which is quiet an issue for them. Other then this it has not made a proper
global presence in the international market. As when being observed there are lot more hotels
in the hospitality sector which are way more recognised then this and it also get more
attention by their international chains as compared to it (Lebens, 2019).
3.1.3 Opportunities
In order to manage more growth and stability in the market and in the eye of customer
Premier Inn Hotel can try to apply different strategic tie-ups through which the attention can
be gained of all the competitive areas. They can also focus on managing the maximum
investment on the digital marketing areas. As all the investment will lead to provide more
customers to be acknowledgeable towards it. And they can also try to build a brand value by
taking the reviews of the customers.
3.1.4 Threats
The major threat Premier Inn Hotel can face is as this is the time when COVID-19
has severely affected all the hospitality sector in a wide range there is being noticed that it
made a huge loss to the hotel and also customers are not willing to make a stay in any such
5

hotels which are welcoming so many guests. Other then this the new facilities like the hostels
for the tourists and the private rooms which are available at the optimum prices with all
facility created a major threat.
3.2 PESTLE Analysis
It is an external tools which provides an analysis about the comparative and the
competitive market conditions. This involves all the political, social, economic,
technological, legal and environmental factors through which the growth can be managed.
3.2.1 Political Factors
It concerned with all the government regulations and the policies through which the
hotels can manage their work. Premier Inn Hotel as have so many branches and chain they
adapted different sectors and methods in which they can opt and implement all the facilitates
through which it has developed their work. By the raise of Brexit ans EU conventions this
made it major issue to gain customers in political regions (Hartley, 2019).
3.2.2 Economical Factors
It involves all the interest rate and the financial budget which is being fixed by the
hotels. As with the rise of Covid-19 Their is a decrease in the economic and interest rate of
the hotels and hospitality sector. But as Premier Inn Hotel manage to have major expansion
in all the countries and also provided budget through which expansion plans are made and
executed to promote stability in economy (Williams, 2020).
3.2.3 Social Factors
Premier Inn Hotel manages to promotes and provide all their customers the best and
the satisfying experience by revitalizing and making the strategy through which the social
values can be applied and quality of rooms and surroundings can be given (Barrière, 2020).
6

3.2.4 Technological Factors
Premier Inn Hotel manages all the precautions through digital appliances and online
check in and out so as to provide safety to customers art the time of pandemic. They also
mange interactive website and all the online reservation facilities with awareness campaigns.
3.2.5 Legal Factors
As this hotel covers all the basic facility through which they manage legal rules and
implications Premier Inn Hotel manage all the laws treated to suppliers, partners and all the
law pay commission areas (Tebben 2021).
3.2.6 Environmental Factors
Premier Inn Hotel focus on managing all the energy and environment policy through
which they manage and implement all the sourcing, health, community as major focus
(Williams, 2020).
4 Conclusion
It can be concluded from this report that business organisation manage all the
activities through which the revenue can be generated for the nation and the employment rate
can be managed. Their is been seen that hospitality sector is majorly being affected at the
time of COVID-19. The internal factor like SWOT helps in evaluating and analysing the
nature of hotels. The major threat of the hotels are the rivals and the competition and the
hostels facility along with that the issue of pandemic. Further it is also concluded that all the
individuals can manage effective working by framing the external analysis as PESTEL
analysis helps in knowing the raising changes in the company. Economic factors provides the
interest rate to be increased by the expansion of hotels and the environmental factor covers
the major areas like energy saving and sustainability.
Reference Page
Ford, R.C. and Sturman, M.C., 2018. Managing Hospitality Organizations: Achieving
Excellence in the Guest Experience. SAGE Publications.
Gutzke, D.W., 2019. John Pearce and the rise of the mass food market in London, 1870–
1930. Springer Nature.
Borsay, P., 2017. Concert Topography and Provincial Towns in Eighteenth-Century England.
In Concert Life in Eighteenth-Century Britain (pp. 19-34). Routledge.
7

Lebens, N., 2019. A world of play: Pierre Duval and printed games on a marketplace for
maps in 17th-century Paris. A world of play: Pierre Duval and printed games on a
marketplace for maps in 17th-century Paris, pp.33-50.
Hartley, H.J., 2019. Exploring sport and leisure disasters: a socio-legal perspective.
Routledge.
Tebben, M., 2021. Food Cultures of France: Recipes, Customs, and Issues. ABC-CLIO.
Gertler, B. and Hayden, C., 2018. Uneasy on the boundary: reflections on the culture and
effectiveness of group relations conference work in the USA, 1965–2012. In Group
Relations Work (pp. 139-159). Routledge.
Cwako Monkam, G., 2021. Communication marketing des organisations: de la stratégie au
déploiement digital et numérique. Communication marketing des organisations,
pp.1-267.
Williams, S., 2020. Introducing employment relations: A critical approach. Oxford
University Press.
Barrière, L., 2020. Se réapproprier la nuit: Politiques et représentations musicales de la nuit
urbaine, de la Walpurgisnacht aux festivals punk-féministes. MUSICultures, 47,
pp.139-XIX.
8