Premier Inn Hotel Chain: Organisational Structure and PESTLE Analysis

This case study provides an in-depth analysis of Premier Inn, a UK-based hotel chain, focusing on its organizational structure and the business environment in which it operates. The report examines Premier Inn's tall organizational structure, highlighting its advantages and disadvantages in terms of decision-making and employee empowerment. Furthermore, it delves into the various internal and external forces impacting the hotel chain, utilizing SWOT and PESTLE analyses to identify strengths, weaknesses, opportunities, and threats. The analysis covers political, economic, social, technological, legal, and environmental factors influencing Premier Inn's operations, including the impact of Brexit and the COVID-19 pandemic. The study concludes by emphasizing the importance of understanding these factors for strategic decision-making and maintaining a competitive edge in the hospitality industry. Desklib provides access to this and many other solved assignments.

CASE STUDY
PREMIER INN
HOTEL CHAIN

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Organisational structure of the Premier Inn...........................................................................3
Analysis of business environment..........................................................................................4
SWOT analysis.......................................................................................................................4
PESTLE analysis....................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7
Books and Journals.................................................................................................................7

INTRODUCTION
Business environment can be defined as the various forces of the market that impacts the
operational activities to a great extent either directly or indirectly. In this report there will be the
discussion on the UK based hotel that is Premier inn. They have collaborated with the white
bread PLC which has operations in the hotel segment and have hotel chains across the globe
(Holbeche, 2018). This hotel chain was founded in 1987 and it is based at Dunstable UK. This
organisation provides various types of amenities and premium room service. The hotel Cain also
considers the corporate social responsibility by collaborating with the various charity partners.
There will be discussion on the organisation structure of the Premier inn hotel. There will be
discussion on the various internal as well as external factors that is present in the market which
affects the operational activities of the organisation. At the end of the report it mainly aims to
develop a knowledge regarding the organisational structure and understanding about various
forces that facilitate in shaping present business operations.
MAIN BODY
Organisational structure of the Premier Inn
An organisation structure can be defined as a systematic approach which explains how
business activities are carried out in an organisation in order to achieve the goal. Effective
organisation structure is very beneficial for the organisations as it facilitates a layout for
executing the structure of employees. Premier inn follows the tall organisational structure in a
hierarchical level. This structure comprises several parts of the management and the employees
have to report to their supervisors only (Ilin and et.al.S, 2018). In this type of structure all the
authority is with the upper level of the management which eliminates the decision of the
employees that can affect the brand image. In relation to the Premier inn it is very beneficial for
them as it helps the managers to keep their employees satisfied and encouraged by various types
of promotions. This type of structure is adopted by the leaders of the Premier inn as it facilitates
them to provide opportunities to their employees in the workplace. Along with the advantages
there are disadvantages also as it is not very flexible and also slows down the process of decision
making when there are critical situations that arise in the organisation. It does not allow the
employees to take decisions on their own and the communication process also becomes longer
because the employee has to convey the message to the superior department. This can affect the

performance of the employees as while taking an opportunity they have to ask their superior
through a chain of command.
Analysis of business environment
A business environment can be defined as various forces that are present in the market
which affect the overall performance of the organisation. Various forces that shape the
environment of the business are customers, media, government, market, conditions, trends etc.
Analysing these elements is very important for the organisations to grab new opportunities. It
facilitates organisations to execute their resources by considering various forces that are present
in the business environment.
SWOT analysis
This analysis can be defined as the strategic framework which is generally used by the
companies in order to analyse the competitive position through which they can make effective
strategies (Singh and Gaur, 2020). This facilitates the organisation to regularly analyse the
internal as well as the external forces that affect the operations of the business. It helps the
managers of the premier in Inn finding the threats and opportunities in an effective manner.
SWOT analysis in relation to the Premier inn is as follows:
Strengths
 Premier Inn has a strong market
base in countries like the UK
Germany, United Arab Emirates
etc. This facilitates them to attract
customers from various places.
 They have a strong brand image
because they provide effective
amenities like Wi-Fi, bike riding
and many more to their guest.
Weaknesses
 Due to the COVID 19 pandemic the
Premier inn faces is so many
difficulty in carrying out the
operations as their employees leave
their jobs and move to their
hometowns.
 Managers of the Premier inn are not
so effective because they do not
respond efficiently at the time of
pandemic.
Opportunities
 Premier inn has the opportunity to
use various digital platforms that
will help them to attract visitors
Threats
 One of the main threat that the
premier inn faces is of competition
(Jermsittiparsert, 2020). There are

towards their hotel.
 Premier inn has operations on a
large scale and various hotels at
different places which gives them
the opportunity to cover their cost
as well as losses.
various hotels present in the market
that are providing the same services
at a competitive price.
 Due to the Covid-19 pandemic they
have faced so many losses during
the lockdown period that affects
their position in the market.
PESTLE analysis
Pestle analysis can be defined as an effective tool that is used by the organisations that help
them to evaluate various external factors that affect the operations of the business (Hatammimi,
Adnyani and Kinasih, 2022). Through this analysis the managers of the company gets the
knowledge of the external factors which results in formulation of the effective strategies in order
to accomplish the goal of the company. This analysis helps the manager of the premier inn
finding various opportunities through evaluation of external forces. PESTLE analysis in relation
to premier inn is mentioned below:
Political factors:
In UK through Brexit agreement there were departures of the United Kingdom from the
European union which affects the many organisations and also leads to the close down of their
businesses in the area of the European union. Premier inn also faced issue as they have to close
down their operation in the European union through which they face so much losses at that time.
This sector does not impact that much because they have the opportunity to target the customer
in the UK.
Economic factors:
Due to the global pandemic and the guidelines of COVID-19 many organisations face
challenges which result in the loss of revenues. In relation to the premier inn economic factors is
favourable for them because this has given them the opportunity to spend their business.
Social factors:
Social factors can be defined as analysing the needs of the customers that are present in
the market (Ongena and Ravesteyn, 2019). Premier inn focuses that they should provide quality
services to their customer from which they can satisfy their needs and wants. This can be

difficult for those who faces difficulty in modification in relation to the demands of the people as
well as trends in the market.
Technological factors:
In a UK country there is so much high tech technology that is used by the organisations.
Through this premier inn as also adopted updated technologies through which they develop new
features like mobile check-ins, online booking which helps them to attract lots and lots of
customers towards their hotel.
Legal factors:
The UK Government has made several laws and regulations for the business
organisations that protect the interest of the employees as well as the customers. Upper
management of the Premier inn critically follows the laws that help them to carry out the
operation activities smoothly. This helps them to eliminate any illegal activity that can be
practiced in the organisation.
Environmental factors:
The government of the UK country has also made several laws in order to protect the
environment and reduced the waste (Tang, 2019)(Soni, 2020). Premier inn uses various
techniques and one of the main tool they use is solar panels that helps them to conserve the
energy. They also focused on eliminating the use of carbon emission and waste material in their
organisation.
CONCLUSION
From the above report it has been analysed that the business environment consists of various
types of forces that are internal as well as external which affects the operations of the business to
a great extent. These factors are mainly divided into two segments that are macro and micro. In
the above report there has been discussion on the organisational structure of the premier inn. It
has been analysed that the organisation uses a tall structure that facilitates them to effectively
distribute the responsibility and the jobs in an effective manner. There has been the evaluation of
the business environment that consists of various elements like customer, suppliers, investors etc.
that have a direct relationship with the organisations. SWOT and PESTLE analysis have also

been discussed in relation to the chosen organisation. These analyses helps the organisation to
find various types of opportunities and threats that are present in the marketplace.

REFERENCES
Books and Journals
Holbeche, L., 2018. The agile organization: How to build an engaged, innovative and resilient
business. Kogan Page Publishers.
Singh, S.K. and Gaur, S.S., 2020. Managing organization and business in Asia. Journal of Asia
Business Studies.
Hatammimi, J., Adnyani, P.I. and Kinasih, Y., 2022. Examining the Business Organization of
Creative Industry in an Emerging Market. Asia Proceedings of Social Sciences, 9(1),
pp.127-128.
Ongena, G. and Ravesteyn, P., 2019. Business process management maturity and performance:
A multi group analysis of sectors and organization sizes. Business Process Management
Journal.
Tang, K.N., 2019. Leadership in business organization. In Leadership and change
management (pp. 1-9). Springer, Singapore.
Soni, N., 2020. Impact of COVID-19 on Business Organization, Industries and
Economy. Industries and Economy (August 19, 2020).
Ilin, I and et.al.S, 2018, December. Business requirements to the IT architecture: a case of a
healthcare organization. In Energy Management of Municipal Transportation Facilities
and Transport (pp. 287-294). Springer, Cham.
Jermsittiparsert, K., 2020. Leadership and industry 4.0 as a tool to enhance organization
performance: Direct and indirect role of job satisfaction, competitive advantage and
business sustainability. In Agile Business Leadership Methods for Industry 4.0. Emerald
Publishing Limited.