Premier Inn Hotel: Business Analysis, SWOT, PESTLE - Case Study

This case study provides an in-depth analysis of Premier Inn Hotel's business organization, focusing on its organizational structure and the external and internal factors influencing its performance. The report examines the functional organizational structure employed by Premier Inn, highlighting its benefits in coordinating various departments and fostering specialization. It utilizes SWOT analysis to identify the company's strengths, weaknesses, opportunities, and threats, such as its strong brand image in the UK, limited international expansion, potential for mergers, and high market competition. Furthermore, the case study employs PESTLE analysis to evaluate the political, economic, social, technological, environmental, and legal factors affecting the hotel's business environment, including tax policies, economic impacts of COVID-19, changing customer preferences, technological advancements, environmental concerns, and legal compliance. The analysis concludes that strategic tools like SWOT and PESTLE are crucial for Premier Inn to navigate challenges, capitalize on opportunities, and achieve sustainable growth.

BUSINESS
ORGANIZATION - CASE
STUDY

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

INTRODUCTION
An organization can be defined as class of employees working together to accomplish the
ends goals of the business. In other words, it can be explained as a framework that helps firm in
carrying on the commerce. The hospitality industry can be state as a business that provide
various services such as motels, hotel and lodging the main aim of theses industries are to
provide quality product so to satisfy their customer.
The present report is based on the Premier Inn Hotel, established at UK with headquarter
in Dunstable, England. The founder of the company is White Bread along with this it is a part of
British hotel chain and currently have 800 hotels in United Kingdom. Presently, the organization
is serving their services in Germany, and New Jersey.
In addition to this, the study will discuss on the SWOT and PESTEL strategies used by
the hotel to evaluate the external and internal business environment. Furthermore, the report will
do details discussion on the weakness and strengths of organization and the manner in which the
political and economic factors are affecting company growth. Lastly, the report will throw light
on the changes made by the organization and how strategic analysis has helped company in
achieving the objectives and enhancing business growth.
MAIN BODY
ORGANIZATIONAL STRUCTURE OF THE PREMIER INN HOTEL
The organization structure can be state as the process of dividing the task into each section
of firm as well as delegating the job to employees present in that department so that smooth task
can be performed in the firm.(Koçyiğit and Akkaya, 2020). Currently, Premier Inn hotel is
following the functional organization structure that can be explained as an outline that allot
specific work to the individuals. For instances, HR manager work particularly in hiring
individuals that are required to complete particular in the firm. Moreover, the finance department
provide capital in introducing the innovative ideas and decided the overall budget of the firm.
Along with this, the accommodation department manage to provide the safe and hygienic
room for the customer and solve the issues faced by the client during the visit. In addition to this,
the food department provide services such as healthy beverages to the consumer. This structure
allows the hotel to coordinate between each sector of the firm such as accommodation, food and
catering, financial and personnel services (Webber and Dunbar,2020).

This structure has benefited the firm in various form such as it has enhanced the overall
development of firm. Further, the firm has plenty of specialized expertise that helps organization
in maintain the smooth function. Moreover, it has reduced the threats of the company as this
structure is transparent. Thus, there is no communication gap between employee and employer
that contributes in removing chaos from within the company that resulted in enhancing the
growth of Premier Inn Hotel (Functional Organizational Structure.,2021).
ANALYSING BUSINESS ENVIRONMENT
SWOT Analysis
It is a useful framework to identify the internal strength and weakness of the organization
and also help in recognizing the external opportunities and threats of the business. Thereby the
SWOT analysis of Premier inn has been done in detailed to understand the way company can
utilize its strength to make the best use of opportunities and overcome threat for benefits of firm.
Such as:
1. Strength: The main strength of the Premier Inn hotel is its good brand image in UK that
helps company to grow and also inaugurate 800 hotels in the London. Furthermore. It has
helps to increased revenue of the organizations and market share by 20% in past years.
Also, hotels are contributed a lot to local government (Abo-Murad, Abdullah and Jamil,
2019). Premium Inn hotel is counted in top 5 hotels of UK which provided good quality
of services to their clients. Likewise, the company attracts tourist and other guest
because of their high class services.
2. Weakness: Organization do not focus on the international expansion of hotels that may
lose other customers from Sweden, France and other countries. The company face high
competition in UK. Due to pandemic of covid-19, investors are not able to invest their
share into organization. Apart from this, company paid taxes in this situation, that may
cause major loss along with it the premium inn has experienced decreases customer by
30% in past two years.
3. Opportunities: Premier Inn Hotel can acquired small competitors business to expand the
business locally. Also, it can merge with travel industries like Find my trip.com to attract
travelers that are looking for new destination. Therefore, this type of organization has
invested more in traveling (Brien, Thomas and Brown, 2017). It will help organization to

increasing customer base and also generate revenues. They can provide offer coupons to
customers and provide them good discount to attract them. Moreover, social media also
acts as opportunities for company to promote their services in all over the world and
enjoy high profit margin.
4. Threats: The high competition in the market affect the of company that may cause
decreases in customer (SWOT on hospitality industry, 2021). Along with this, business
has faced many consequences in terms of covid-19 which has affected the firm such as no
profit, customers are avoided traveling. Thus, the overall growth of the organization has
declining by past two years.
PESTLE Analysis
PESTEL analysis is a tool of identifying the external factors that affect the business
environment.
1. Political factors: This factor includes tax policy, trade restriction, bureaucracy and
government intervention. The high rate of taxes increase in UK, government charged
high taxes from hotel industry that affect the organization to expand their business
globally (Dube, Nhamo and Chikodzi, 2021). In 2019 there were very fewer visitors
come to UK for traveling because of lock down it cause low revenue generated by hotel
industry. Sometimes customer booked their rooms 3-4 month prior, and then they
canceled the booking lately it causes less revenues and profitability of business.
2. Economical factor: It influences organization in terms of economic growth, exchanges
rates and inflation. Covid-19 impact negatively on regular income of residential people of
UK so that most of the people are not able to spent their income into hotels and
travelling. Therefore, the demand of Premier hotel services was high compare to other
high ends hotel. Currently, the demand of the customer in tourism sector increased so that
targeted customer has also increased impacted overall sales of the company has raised.
3. Social factors: This factor has also affected hospitality industry as it include elements
such as lifestyle, behaviours, social structure, demographic and ethics. Likewise, the
customer taste and preferences has changed over the year that influence the Premier Inn
hotel. With these factor the organization will invest more on unique services which will
allow to attract the more customer. The competitors like Sloan Palace is new segment in
hospitality industry that has also affected the sales of company (Loizia and et.al., 2021).

Thus, the organization should focus more on innovative ideas like providing automatic
card to lock and open the room's door.
4. Technological factors: In hospitality industry, there will be many technologies used in
hotels like automatic doors, online payment services etc. Almost each and every hotel are
making use of social media platforms to promote their services and also advertised
through to show customer experiences and their positive feedback to other customers. It
motivates followers to visit there, it helps in increases the reach and enhancing the
customer base. However, the organization also faced the challenges of technology such as
negative comment on the online website may affect the brand image of company that
affect revenue of Premier Inn Hotel.
5. Environmental factors: People are becoming more aware about the environment. They
keep looking for such a place where, there will be options of recycling things.
Organization have taken various steps towards environment such as they have policy for
customer to low wastage of food (Nazarian, Atkinson and Foroudi, 2017). They
distributed their remaining food to needy people.
6. Legal factor: The company follow all law and regulation regarding customers safety and
infrastructures of organization to avoid intervention of the government in the business
process. The organization also aware about the new amendment in laws to meet
necessary changes in legal framework of business. Company follow such practices for
covid-19 to maintains social distancing, sanitizing the hotels thus, have increased cost of
business operation and revenue of the firm.
CONCLUSION
It has been concluded that Premium Inn Hotel followed organizational structure to helps
company in maintaining the smooth flow of functions in every department of an organization.
The study also summarized on strategies use by the company through SWOT and PESTEL tool
for identifying the factors affecting external and internal business environment. Furthermore,
these strategies benefits the company in recognizing potential threat and reduced the negative
impact from business along with this it also creates a method to find new opportunities. Beside
this it allows, the firm to evaluate the various key decisions before implementations for its
growth and development.

REFERENCES
Books and Journals
Abo-Murad, M., Abdullah, A.K. and Jamil, R., 2019. Effect of the organisational culture on
crisis management in hotel industry: A qualitative exploration. International Journal of
Entrepreneurship. 23(2). pp.1-18.
Brien, A., Thomas, N. J. and Brown, E. A., 2017. How hotel employee job-identity impacts the
hotel industry: The uncomfortable truth. Journal of Hospitality and Tourism
Management. 31. pp.235-243.
Dube, K., Nhamo, G. and Chikodzi, D., 2021. COVID-19 cripples global restaurant and
hospitality industry. Current Issues in Tourism. 24(11). pp.1487-1490.
Foo, L. P and et.al., 2020. The impact of COVID-19 on tourism industry in Malaysia. Current
Issues in Tourism. pp.1-5.
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.
Keogh-Brown, M. R, and et.al., 2020. The impact of Covid-19, associated behaviours and
policies on the UK economy: A computable general equilibrium model. SSM-population
health. 12. p.100651.
Koçyiğit, Y. and Akkaya, B., 2020. The role of organizational flexibility in organizational
agility: A research on SMEs. Business Management and Strategy.11(1). pp.110-123.
Loizia, P and et.al., 2021. Measuring the level of environmental performance in insular areas,
through key performed indicators, in the framework of waste strategy development.
Science of The Total Environment. 753. p.141974.
Mauree, P. P. and Geneletti, D., 2017. Assessing barriers to effective spatial planning in
Mauritius. A combination of SWOT and gap surveys. Journal of Environmental
Planning and Management. 60(8). pp.1324-1346.
Nazarian, A., Atkinson, P. and Foroudi, P., 2017. Influence of national culture and balanced
organizational culture on the hotel industry’s performance. International Journal of
Hospitality Management. 63. pp.22-32.
Webber, E. and Dunbar, R., 2020. The fractal structure of communities of practice: Implications
for business organization. PloS one.15(4).p.e0232204.

Online
Functional Organizational Structure., 2021. [Online]. Available through <
https://www.upcounsel.com/functional-organizational-structure>.
SWOT on hospitality industry. 2021. [Online]. Available through:
<https://www.marketingstudyguide.com/sample-swot-for-a-hotel-chain/>.