Analysing Premier Inn Hotel: Structure, SWOT, and PESTEL Analysis

This report provides a comprehensive analysis of Premier Inn Hotel's business organization, focusing on its vertically integrated organizational structure and the internal and external factors influencing its performance. The report includes a SWOT analysis, identifying the hotel's strengths, weaknesses, opportunities, and threats, particularly in the context of the COVID-19 pandemic. Furthermore, it conducts a PESTEL analysis, examining the political, economic, social, technological, environmental, and legal factors impacting the hotel's operations. The analysis highlights the importance of adapting to the dynamic business environment and leveraging both internal strengths and external opportunities for sustainable growth. Desklib offers a platform for students to access similar solved assignments and study resources.

Understanding
Business Organisation

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Organisation structure of Premier Inn hotel...........................................................................3
Business environment analysis of Premier Inn hotel.............................................................4
SWOT analysis.......................................................................................................................4
PESTEL analysis....................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7
Books and Journals.................................................................................................................7

INTRODUCTION
Business organisation is made up of two things which includes business and organisation in
which business includes the activities which is done by people or the organisations and the main
aim is to generate incomes. The work which businesses does is to provide and distribute goods
and services to people so that they can earn profits. On the other hand, organization means is to
collect all the things which are required in the production of goods(Santos and et. al., 2020).
Thus, business organization can be termed as how the business has structures its work so that
they can achieve their objectives. There are different categories in the business which is formed
by an individual and that can be on the basis of sole proprietorship, partnership or any
corporation. But with the benefits, there are certain risks and the drawbacks which can affect the
performance of the business. Premier Inn hotel is a biggest chain in UK which was formed by
Whitbread, 1987 and is having its headquarter in Dunstable, England, UK. This report will cover
organisation structure of hotel, SWOT analysis and PESTEL analysis which will explain the
business environment internally as well as externally.
MAIN BODY
Organisation structure of Premier Inn hotel
Premier Inn hotel is a biggest chain of hotel in UK which is having around 72,000 rooms and has
800 hotels which is established at distinct locations. The main benefit which the hotel is having
is because of the proper management which is because of business structure and the business
model they are using. The organisation structure which they are using is “Vertically Integrated
model” which has helped them to achieve competitive advantage in the market and because of
this they have been sanctioned to become number one operator of business in UK and are also
making the presence in Germany(Ma, Thornton and et. al., 2020). Vertical integration means the
strategy which is used by the Premier Inn in which they use simpler and effective methods by
taking the direct ownership of different stages of production. In simpler words it can be defined

as, two or more business which are working together at different levels of production. The aim of
using this is to cut down the cost and to work with full efficiency. The main benefit of using this
model is to reduce the disruption which they might face if they working with external suppliers
but if the supply will be owned by them then disruption can be reduced. The other thing by
which companies get the benefit is that this method is less riskier for investment because the
uncertainty percentage is low in which the hotels can face off the other competition which
prevails in the market. But there are certain drawbacks in which merging can bring more
difficulty to the Premier Inn hotel because the work and procedure which the other hotel uses can
be different. This will result mostly in confusion because there are chances of conflict in the
business and their methods by which they provide services.
Business environment analysis of Premier Inn hotel
Business environment is the mix of internal and external factors which impacts the
performance of business. The internal environment means those factors which exist within the
business and these factors are under control which covers employees, organisation structure,
leadership method and other (Mumbi, 2019). On the other side, external factors include those
which are outside the business environment and are less controllable. The factors include
political, economical, social and others.
SWOT analysis
SWOT analysis of Premier Inn hotel have been explained below-
 Strengths- The pandemic have affected hotel industry in a huge way and this is the main
reason why they are not able to earn good revenue. But Premier Inn hotel is a established
business which is having strong presence in UK and that is the reason why people make
preference to stay in this hotel(Chin and et. al., 2018). The other main strong point is the
facility which is provided by this hotel at a very reasonable price so in this time of
COVID-19 people will prefer this hotel.
 Weakness- The main weakness which can make an impact on Premier Inn hotel will be
the existing competitors in the market. Things are now being opened in the countries and
people are going from one place to another and because of less global presence people
don't know much about this hotel(Ahuja and et. al., 2019). It is very important for the

hotels to make their presence in other countries also so that people can get with that
name.
 Opportunities- At the time of COVID-19 Premier Inn can found many opportunities in
which includes making expansion in the other market. In which they have made their
business expansion in Germany which is the highest visited place of Europe. The other
thing in which they can work on will be the hygiene factor as people are more likely into
hygienic places and if such precautions will not be made by Premier Inn then no
individual would like to visit the hotel(Mortensen, Larsen and Kruse, 2021).
 Threats- The major threat for Premier Inn at this time will be the lock down because if
that will be imposed then it will become difficult for them to earn profits. Lock down will
make the restrictions on the people to visit place which includes within the country and
outside it. Furthermore, competitors will be the other factor which can make a huge
impact in their profits.
PESTEL analysis
PESTEL analysis of Premier Inn hotel has been discussed below-
 Political factors- The major factor which impacts hotels is the government regulations
which is mainly for imposition of taxes(Hestad, Tàbara and Thornton, 2021). As the
hotels are not earning much, because of the COVID-19 and this has made it difficult for
the Premier Inn hotel to make payments in the form of taxes. But still, during this time
government is providing certain benefits to them except for the payment of taxes.
 Economic factors- The hotels are majorly impacted with that of any economic changes
which can be because of inflation or recession factor(Oinas and Van Gils, 2019). This is
because if any of the country will be facing this issue then there are less chances that
people will be spending more on stays. The other economic factor is the foreign currency
which majorly fluctuates a lot so if the UK currency will be declined than people are
more likely to visit UK and their visit will also include stays in Hotel.
 Social factors- The social factors include consumer preference which is the main facto
which hotels have to make and develop their services. Premier Inn is a biggest hotel chain
and the reason for this is that they have already worked for the things which will be liked

by the consumers. Also, during the pandemic time they are making sure as proper
hygiene is provided to each consumer so that they do not find any problem and for that
huge investment is made.
 Technological factors- Technology have been increased and people are preferring those
places in which there is availability of technology. Premier Inn has been making the use
of technology by using social media which is providing them benefit as people are
knowing more about this hotel and the services provided by them(Khurana and Ghosh,
2021). Also, they have made the facility of online booking which is easier for the
consumers to make the booking especially for those who are staying outside the country.
 Environmental factors- Those countries have to face lot of problem in which there are
severe issues in regard with environment and for that hotels have to make the use of
technology for the prediction. The other thing is that hotels are majorly in pressure by the
government and also by the activist to make reduction in carbon-footprint.
 Legal factors- There are certain rules and regulations which the hotels have to agree
which is important for the growth and sustainability. The rules can be in relation with
health and hygiene which is also important for the hotels and in this case Premier Inn has
been working harder(Dahiya and Rangnekar, 2019).
CONCLUSION
From the above report it can be concluded that every hotel has to work in dynamic
business environment and the reason for this is that these factors are not constant. It is important
for the hotels to make the analysis which includes making evaluation of both the internal and
external factors. There are different factors which affects the working of hotels and in which
there are political, social, economical and others which makes direct influence in the working. So
to attain best results it is important for the hotels to make the analysis especially for the external
factors. On the other side, SWOT analysis helps the hotels to make the analysis of the internal
factors which let them identify about their main strengths and what changes they have to make in
order to remove the weakness.

REFERENCES
Books and Journals
Ahuja, J. and et. al., 2019. Do human critical success factors matter in adoption of sustainable
manufacturing practices? An influential mapping analysis of multi-company
perspective. Journal of Cleaner Production. 239. p.117981.
Chin, T. and et. al., 2018. Chinese strategic thinking on competitive conflict: insights from Yin-
Yang harmony cognition. International Journal of Conflict Management.
Dahiya, R. and Rangnekar, S., 2019. Validation of the positive and negative affect schedule
(PANAS) among employees in Indian manufacturing and service sector
organisations. Industrial and Commercial Training.
Hestad, D., Tàbara, J.D. and Thornton, T.F., 2021. The role of Sustainability-Oriented Hybrid
Organisations in the development of transformative capacities: the case of
Barcelona. Cities. 119. p.103365.
Khurana, K. and Ghosh, A., 2021. Where do the lines blur? Exploring the separation between
non-profit and for-profit theatre organisations in India. International Journal of Indian
Culture and Business Management. 23(2). pp.171-192.
Ma, Y., Thornton, T.F. and et. al., 2020. Co-creation, co-evolution and co-governance:
understanding green businesses and urban transformations. Climatic Change. 160(4).
pp.621-636.
Mortensen, J.K., Larsen, N. and Kruse, M., 2021. Barriers to developing futures literacy in
organisations. Futures. 132. p.102799.
Mumbi, H., 2019, December. Shared leadership: a place-based leadership analysis of voluntary
organisations.
Oinas, P. and Van Gils, H., 2019. Identifying contexts of learning in firms and regions.
In Promoting Local Growth (pp. 61-79). Routledge.
Santos, G. and et. al., 2020. Understanding social responsibility’s influence on service quality
and student satisfaction in higher education. Journal of cleaner production. 256.
p.120597.