Premier Inn Hotel UK: Business Organisation, SWOT, and PESTLE Analysis

This report provides an analysis of Premier Inn's business organisation, exploring its structure, environment, and strategic position in the UK market. It delves into the company's functional organisational structure and its impact on efficiency and communication. The report includes a SWOT analysis, highlighting Premier Inn's strengths, weaknesses, opportunities, and threats, particularly in light of the Covid-19 pandemic. Additionally, a PESTLE analysis examines the political, economic, social, technological, environmental, and legal factors affecting the hotel's operations. The study concludes by summarising Premier Inn's market position, its challenges, and the strategies it can employ to maintain its competitive edge and manage external business environment factors.

UNDERSTANDING BUSINESS
ORGANISATION

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Business organization structure..................................................................................................3
Business environment................................................................................................................4
SWOT analysis of Premier Inn Hotel.......................................................................................4
PESTLE analysis of hotel.....................................................................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................1

INTRODUCTION
Business organization can be define as a legal entity formed by the government of
private individual that deals with commercial activity in order to earn the profit (Sailer
and Hladík, 2021). There can be various types of business but the aim of every
organization is to provide great quality of services to the customers.
Along with this, the present report is based on Premier Inn hotel that is a British
hotel chain provides hospitality services to their customer. It is large hotel brand that
operates in various location and covers international market. Furthermore the
headquarter of company is located at Dunstable, UK. The founder of the company
is Whitbread and it has collaborated Premier Inn hotel with Travel Inn in order
to expand the business (Premier Inn England., 2020.).
Moreover, the report will discuss on the business structure of the organization in
order to identify the process of carrying out the commercial activity. Along with this,
study will analysis about the strengths and weakness of the company by using the strategic
tool SWOT and PESTEL.
MAIN BODY
Business organization structure
The Premier Inn hotel is following functional structure, Which is one of the
common structure. Under this structure the business function are divided into
various part so that goals can be accomplished easily. Along with this, in
functional structure the employees are grouped according to their skills and ability
so that it can work more efficiently Al-Kfairy and Mellor, (2020). In addition to this, in
this structure the subordinates are grouped according to the similar set of
roles or task. This contributes in maintaining the healthy environment within
the organization as well as increase the moral of the employees. Moreover, this
business structure works in stable business organization. the various functional areas
of Premier Inn hotel is HR department that manage the human resource of
the organization as well as solve the issues of the subordinate Kuntner, (2021).
Another functional area is Finance group that control the financial resources of

the company. It also makes budget of the company so that it can invest in new venture
and other areas of business. The benefit of this structure is that it helps in
increasing the productivity of the firm Niblock, (2018). As the employees are
classified according to the their interest thus it helps in increasing the growth
of the firm. Along with this, if the firm has divide their functional unit
then it helps the organization to accomplish the goal more effectively. As every
unit will work to achieve their objective thus it can contribute in accomplish the
main aim of the company. However, the disadvantages of functional structure is
management issue as each group work differently. As well as the communication
issues can be between the employees this will create chaos within the firm
Rupčić, (2020). In addition to this, if the communication is rigid then decision making
process be slow and it can lead to poor coordination among the functional units. Premier
Inn has vertical organization structure.
Business environment
Business environment can be define as combination of external and internal
factors such as customer, employees, demand and supply that affects the company.
However, every company runs their business in this environment so that it can earn
profit Jones, Baris and Yeeles, (2021). Along with this, business environment can affect
the firm in positive as well as negative manner and affects directly the
functional unit of firm.
SWOT analysis of Premier Inn Hotel
Swot analysis can be define as strategic tool that helps the organization in
identify the external and internal factor of business that can affect the growth
of the firm. Along with this, this tool is useful for organization as it helps
the firm in knowing their strengths that helps in expanding their business
Christodoulou and Cullinane, (2019). Along with this, allow the firm to identify the
weaknesses that can contribute in implanting the right strategy to deal with the
consequences. Lastly, it helps in finding out the opportunity in order to expand
business as well as threats that can affect the growth of firm in negative way.

 Strength: Premier Inn strengths are that it is one of the largest brand
of the UK this contributes in attracting more and more customer. Along
with this, the organization has been awarded with the finest hotel chain of
Britain that has contributed in gaining the trust of the employees
Vardopoulos and Tsartas,( 2021). Thus, in the case of Covid- 19 the organization
has goodwill in the market that can attract customers. Weakness: The weakness of Primer Inn is high competition that can
decrease the profit margin of the firm. Along with the firm, still
has to work more in order to increase their global presence as compare
to other international a firm The another weakness that organization has
is less hygiene and due to that it has lost many potential customer
Someswar and Vivekanand, (2021). Opportunity: Premier Hotel can grab the opportunity such as more
strategic tie up in order to expand their business and increase the
profit. Along with this, for dealing with threat of Covid 19 it can make
use of digital technology such as robotic staff and smart room keys. As well
as it follow the heath protocol implemented by government this can
contribute in attracting customer and improve brand image.
 Threat: Covid – 19 and lockdown has been biggest threat for the
company as it affected the overall growth of business Eniola, Iyabo and Peter,
(2018.). It is one of the most challenging threat for the whole tourism and
hospitality firm as it was not able to run their business and suffer
huge loss. Moreover, the organization can face threat such as high competition in the
market such as Holiday Inn that can affect the growth of Hotel.
PESTLE analysis of hotel
Pestle analysis can be define as strategic management tool that helps the
organization in order to identify the external factors that can affect the overall
growth of the business Shtal, Buriak and Tlegen, (2018). Moreover, this factor is consist
of political, legal, social, environmental, economical as well as technological factor that
impact on the firm in negative as well as positive way.

 Political: This factor is consist of rules that are implemented by the firm
that need to be followed by everyone. It includes tax, government policy,
labour law and trade restriction. However, the government of UK has increase
the tax on hotel and tourism industry it has benefited the firm as the
customer has to pay more. Along with this, the Brexit policy has affected
the organization as due to restriction on trade between European country
as well as UK MOSTAFA and Abdelrahman, (2020). That has resulted in
damaging the growth of the firm. Moreover, pandemic restriction such as
lockdown for months that has affected the sales of organization. Furlough Scheme was
also implemented by government in which temporary lay of employee was done and
without pay. Economical: This factor is consist of economic growth, exchange rate, inflation
rate and unemployment rates. However, if the economic condition of country
can affect the growth of hospitality industry in various direct and indirect
ways (PANDEY, 2017). Along with this, Premier Inn hotel should target those
country that has customer with high income as it will contribute in earning
high profit. But due to pandemic and coronavirus the interest rate of
many country is low. Social: This factor includes the factor such as demographic, growth rate,
culture and customer lifestyle. Due to pandemic the spending habits of
the company has also changed Kangwa and Mutambo, (2020). Customer are
not spending in luxurious item and high level income this has affected the
business of Primer Inn. Thus, the organization has to provide services
according to the demands and taste and pretences of the customer
in order to earn profit. Technological: This factor is consist of advance technology that can
impact on the performance of the firm Vardopoulos and Tsartas, (2021).
However, the Premier Inn hotel need to make use of the digital
marketing in order to enhance the business as social sites can contribute in
attracting more and more customer as well as improve the brand image.

 Environmental factor: This factor is consist of environment such as climate
and pollution. However, organization is following CSR policy in order to
protect environment. As well as company has policy of no food wastage
that is an initiate of the firm to protect the nature.
 Legal factor: This factor is consist of factors such as laws that is made by
the government in order to maintain peace in the society Shaw, (2019).
However, the firm is following law such as employment act and the
norms related to corona virus. The company is providing minimum wage to their
employees in order to keep them satisfied.
CONCLUSION
From the above report it has been concluded that business organization is a
entity that deals with commercial activity. Along with this, the study has u
summarized about the Premier Inn hotel that is one of the biggest brand of
UK that provides hospitality and travel services to their customer. Along
with this, the organization market position is good in market of England but it
need to work on increasing the global presence.
In addition to this, it has depicted about the business structure that helps to
manage the various commercial activity of the firm so that it can raise the
capital. Furthermore, the study has also analysed about the functional structure
that allows the company to manage the commercial activity of the
functional unit. Along with this, it has also concluded on the strengths and
weakness of firm that will contribute in dealing with the Coved- 19. Lastly,
it has thrown light on the Pestle analysis of firm that has helped in
identifying the threats arising in the external business environment.

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Shtal, T., Buriak, M. and Tlegen, T., 2018. Methods of analysis of the external environment of
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Online references
Premier Inn England., 2020. [Online]. Available through
<https://www.premier-inn.net/england.html>
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