Premier Inn Hotel: Business Organisation & Environment Analysis

This case study provides a comprehensive analysis of Premier Inn Hotel's business environment, focusing on its organizational structure, SWOT (Strengths, Weaknesses, Opportunities, Threats), and PESTLE (Political, Economic, Social, Technological, Legal, Environmental) factors. It highlights Premier ...Read More

Level 0 Guide – Case
Study
2021/2022.
Understanding
Business
Organisation
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Table of Contents
1 Introduction........................................................................................................................2
2 Organisational Structure of Premier Inn Hotel..................................................................3
3 Business Environment Analysis of Premier Inn Hotel......................................................4
3.1 SWOT Analysis...........................................................................................................5
3.1.1 Strength................................................................................................................5
3.1.2 Weaknesses..........................................................................................................5
3.1.3 Opportunities........................................................................................................6
3.1.4 Threats..................................................................................................................6
3.2 PESTLE Analysis........................................................................................................6
3.2.1 Political Factors....................................................................................................7
3.2.2 Economical Factors..............................................................................................7
3.2.3 Social Factors.......................................................................................................7
3.2.4 Technological Factor............................................................................................7
3.2.5 Legal Factors........................................................................................................8
3.2.6 Environmental Factors.........................................................................................8
4 Conclusion..........................................................................................................................8
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1 Introduction
Business environment is a sum of different external and internal factors influence the
business operations of company. This report is based on the case study of Premier Inn Hotel.
The organisation was established in the year 1987 by the founder Whitbread. The headquarter
of the company is located in Dunstable, England, UK. Company is serving areas include
United Kingdom, United Arab Emirates, Republic of Ireland, Isle of Man, Germany and
Jersey. The comp[any is associated with the hospitality sector. This report will discuss the
organisation structure of the Premier Inn Hotel. Business environment analysis will also
discuss under this project. SWOT Analysis will also be a part of the discussion under this
project. Furthermore, report will discuss the external business environment analysis in
context to the organisation. Different factors related top the external business environment
will be a part of the discussion under this project. The entire project will talk about the all
different areas and elements related to the external business environment. As Premier Inn
hotel is facing huge issues due to the pandemic of covid-19 as there has been shut down of
the nation which have affected the purchasing power of people, thereby affecting sales of the
company. This report will discuss about SWOT and PESTLE of company and how covid
have affected it.
2 Organisational Structure of Premier Inn Hotel
The organisation structure of the Premier Inn Hotel is divisional. As the overall structure
of the company is segregated into different divisions that can support the organisation to
manage all different functional directions associated with the business entity. Hospitality
sector associated with multiple services and operation area. The role of the divisional
structure is such that it contain multiple divisions such as logistics, supply chain, operations,
reception, food, restaurant, bar, laundry and many such services that support the company to
offer all different services at the organisation (Andriotis and Paraskevaidis, 2021). Each of
the service at the Premier In Hotel is segregated in to various departments and functional
areas that is further segregated into the various departmental operations. In context to the
hospitality sector organisation it is essential to have a multiple departments and service areas
to be managed. As the Premier Inn Hotel could support the company to ensure the proper
control over the management and operations of company. The hierarchical structured allow
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the company to have multiple service areas that can favour the business organisation to
expand the overall success of business operations. This favour the company to manage all
different service areas which can allocate the proper management of business activities.
Hierarchical structure is also associated with the company. Every division associate with the
business entity contain a proper hierarchy that favour the business entity to expand the overall
success of venture. This is essential and important requirements of the company that it hold
the all different service areas which favour the company to manage and control all different
functional areas associated with the company. This structure favour the organisation in
controlling and managing all different functional activities associated with business entity.
This organisation structure support the company in enhancing the overall progress and
growth of the business entity.
Figure 1Organisational Structure of Premier Inn hotel
3 Business Environment Analysis of Premier Inn Hotel
Business environment is a comprehensive tool used to denote about all different external
and internal factors associated with the business environment. The business environment
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model is more like emphasising over all the various external and internal elements or factors
influence the business operations of the Premier Inn Hotel. Models like SWOT analysis and
PESTEL analysis is used to consume the proper policies adopted with support of the all these
various factors of business environment.
3.1 SWOT Analysis
SWOT Analysis comprises with the different strengths, weakness, opportunities and
threat part of the company. All these are the multiple areas associated with the company to
demonstrate about the all different strengths, weakness, opportunity and threat associated
with the Premier Inn Hotel. This model demonstrates about the all various internal forces that
affect and impact over the business operations channelises by the company.
3.1.1 Strength
Premier Inn Hotel has been awarded as the hotel chain of the year at British travel
awards. The hotel brand is denoted as the largest in United Kingdom with more than 50000
rooms nearly 700 hotels occupied by the chain (Kulshreshtha and Kulshrestha, 2019). The
hotel is considered as the highly advertised and promoted that could generate a positive brand
image in the respective target market of United Kingdom. The brand image of the company is
premium in nature that could allow the organisation to attract both normal customer base and
corporate customer base. Company offer various deals and offer by booking online. This
could favour the company to enrich the overall success even in the presence of the aggressive
level of market competition. The company is further awarded as the finest hotel chain in
Britain. The positive brand value of the hotel could favour in enhancing the overall success in
the hospitality sector of United Kingdom..This brand image of the hotel which it has built
over the years will help it to attract its potential and existing customers. The offers and
discounts will help in attracting customers in order to enhance sales.
3.1.2 Weaknesses
The competition in the hospitality sector is very intense and aggressive that offer a
huge level of downfall in customer retention. The more competition always create an issue of
high employee turnover as the different hospitality brand offer employment and growth
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opportunities to the human resources that create an imbalance in the organisation and its
operations. Financial management also contain an issue as the many time company face the
liquidity related issues against channelising the business operations. In comparison to the
other hospitality brands global presence is not as effective as compare to the other hospitality
sector brands. Inflation in economy and downfall of many economies could also offer more
challenges to the Premier Inn Hotel. Hence, due to covid, there has been rise in the inflation
rate in Uk which may affect the sales of Premier Inn as there will be less spending power of
people which will affect the profitability of company.
3.1.3 Opportunities
Company should also formulate more strategic tie up that can favour the business
entity to entertain the business operations in the best way possible. Company also contain a
major growth opportunity in digital marketing. Professionals and marketing team at the
Premier Inn Hotel should approach various digital marketing campaigns with the use of tag-
lines and visual projection of ideas and other such elements that can support the company in
achieving all its various business objectives (Martins, Amaro and Silva, 2021). Company also
own a major growth opportunities for building the brand value with support of positive
customer experience and engagement. Business expansion is also a key business growth and
development opportunity own by the company. By using the digital marketing, customer
engagement and experience, the hotel can attract customers as it will help in building brand
value which will help enhancing sales.
3.1.4 Threats
The covid pandemic can be stated as a major threat for the growth of company.
Backpackers hotel is another threat face by the company. Due to covid, the people may have
fear of contacting with the virus due to which they may not consume the services of the hotel.
So this may be threat to hotel.
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3.2 PESTLE Analysis
External business environment involve various factors and element like Political,
economic, social, technological, environment and legal factors support the company to ensure
the achievement of all different objectives of company
3.2.1 Political Factors
Political factor is a part of external factor of business environment. Government in
United Kingdom has been engaged under various stratefgic collaborations with different
stakeholder groups and government agencies to expand the overall growth of the sector.
According to the data and records hospitality sector of United Kingdom is considered as the
fifth largest sector at a global level (Göbel and et.al., 2017). Government has formed a
progressive policy related to skill development, funding related practices and other policies
related to licensing that could empower the business entity to ensure a huge success in the
hospitality sector. In recent time business expansion could have been improved in United
Kingdom as due to the efforts put by the government business entities do not face issues in
acquisition of land and building for converting into the hospitality chain.
3.2.2 Economical Factors
Economies at a global level economies have emerged rapidly. The income of the
people in United Kingdom and across the globe has increased. Inflation in the economy is
also well controlled as it is below the limit of 2% that could also favour the company to
sustain a good flow of operations in the respective target market (Dinc and Akcakanat, 2020).
Economic growth at a global level could motivate the people to travel across the globe.
3.2.3 Social Factors
When it comes to exploring or travelling United Kingdom is noted as the top
prioritised venue due to availability of all top class hotels, venues, locations, landmark,
history and many such factors. The people also like to travel especially the young generation
at a global level like to explore different places (Perera and Dayarathna, 2019). All this could
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become one of the core reason for enhancing the overall growth and development of the
business houses.
3.2.4 Technological Factor
It is associated with It sector in United Kingdom has been emerged rapidly. The
hospitality sector in United Kingdom has installed all the high level of technologies. Today
start with the research and end up with the services in processing every single functional
areas technologies is utilised.
3.2.5 Legal Factors
It involve in hospitality sector offer all different environment friendly policies and
products. The services are also favourable in context to the environment protection agenda.
Companies also engaged in various corporate social responsibility initiative that favour the
organisation to ensure the major growth and development possibilities in the respective target
market.
3.2.6 Environmental Factors
It involve all different laws like licensing act, contract act, minimum wage payment law
and any such legislations are applicable over the company.
4 Conclusion
Hospitality sectors is one of the emerging sector at a global level. The sector offer
various growth and development opportunities comprises with online and offline services.
The technology is also engaged with the stage of research for searching the right location and
end up with providing post sale services to customers. This can be stated that digital
marketing is one of the major growth and development opportunity associated with the
Premier Inn Hotel. The business environment comprises with all different factors and
elements such as political, economic, social, economical, technological and such like factors
demonstrate the fact that organisation contain a positive culture and environment to
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channelises the business operations of venture. SWOT Analysis has clearly shown different
strengths of organisation such as brand value, customer engagement and such like element
that support the business entity to achieve the overall business objectives under respective
target market. Competition in the industry is very aggressive in nature that restrict the
business entity to ensure the overall growth and development possibilities of the business
venture. The presence of company is at the global level that support at some level to cut down
the competition in the market.
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Reference Page
Andriotis, K. and Paraskevaidis, P., 2021. Negotiated exchanges in the online hospitality
market: Hoteliers and hotel managers’ perceptions of Booking. com. International
Journal of Hospitality Management. 97. p.103010.
Göbel, C. and et.al., 2017. Implementing sustainable business models in the hospitality sector
with the help of a mission statement. International Journal on Food System
Dynamics. 8(2). pp.165-169.
Dinc, M. and Akcakanat, T., 2020. The Mediating Role of Proactive Personality in the
Relationship Between HEXACO Personality and Motivation to Learn: A Study on
Hospitality Sector Employees. In Organizational Behavior Challenges in the
Tourism Industry (pp. 387-410). IGI Global.
Perera, D. K. D. and Dayarathna, N. W. K. D. K., 2019. The Effect of Talent Management of
Executive Level Employees on Organizational Performance in Hospitality Industry
in Sri Lanka: A Case Study. Human Resource Management Journal. 7(2). p.1.
Kulshreshtha, S. and Kulshrestha, R., 2019. The emerging importance of “homestays” in the
Indian hospitality sector. Worldwide Hospitality and Tourism Themes.
Martins, D., Amaro, S. and Silva, S., 2021. The importance of shift work: The hospitality
sector. Journal of Tourism & Development= Revista de Turismo e
Desenvolvimento. 36.
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