MGBBT0UBN - Premier Inn Hotel Chain: Business and Environment Analysis

This case study provides an analysis of the business organisation and environment of Premier Inn, a well-known hospitality organisation in the UK. It explores the hierarchical organisational structure of Premier Inn, highlighting the roles of executive, managerial, and operational staff. The study employs SWOT and PESTLE analyses to evaluate the micro and macro environmental factors impacting the hotel chain, including strengths, weaknesses, opportunities, threats, political, economic, social, technological, environmental, and legal considerations. The report also discusses the impact of Covid-19 on Premier Inn's operations and concludes that understanding both internal and external factors is crucial for improving business policies and maximizing productivity in the current marketplace.

Understanding Business
Organisation

Table of Contents
INTRODUCTION...........................................................................................................................3
Organisation structure of Premier Hotel.....................................................................................3
Business environment analysis in context of Premier Inn Hotel................................................4
SWOT Analysis..........................................................................................................................4
PESTLE Analysis........................................................................................................................5
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
The term business organisation is explained as an entity which is formed with the purpose
of performing commercial actions and activities with motive of increasing company profits. An
organisation is surrounded by different perspectives and it include organisational systems, law-
governing contact, property rights, etc. which fulfil society needs and wants in an organised
manner. Individual proprietorship, limited-liability, corporation and partnerships are some types
of business structure which is used for manage company operations and functions. Furthermore,
an organisation structure is identified as the key determinant of business activities and it monitor
business obligations, generate responsibility factors to raise capital, etc. The main purpose to
implement an appropriate business structure is to understand and analyse all features of business
structure (Ahmad and Murray, 2019). The selected organisation for this report is Premier Inn
which is a well-known hospitality organisation of UK and in the present scenario, hotel chain of
the Premier Inn consists more than 800 hotels which provide approximately 72000 rooms among
all over the world. Moreover, this report highlights on the business structure of organisation and
also study or analyse micro and macro environment factors to monitor the impact of Covid-19 on
business operations and functions.
Organisation structure of Premier Hotel
The term organisation structure is explained as the procedure of rules and regulations
which are formed by top authorities and than communicate them with all the engaged staff to

perform all work in an ethical and systematic manner. In the context of Premier Inn hierarchical
organisational structure is followed by the management and this aids to accomplish all goals and
objectives in an organised manner. Furthermore, all departments work with similar purpose as
this aids to complete the task in an organised manner. Organisation structure of Premier Inn
Hotel are mention as follow:
 Executive and Top Level- In context of Premier Inn hotel management comprises
almost top level of management to manage their operations in an organised manner
(Bharwani and Mathews, 2021). Executive level comprises and consider as the
ownership of hotel that include general manager, board of directors, etc. But in the
context of Premier Inn hotel, management establish and perform business at global level
so almost more than two authorities of each hotel is considered within the executive
level and they are responsible for formulation of policies and standards for business.
 Managerial Level- All the engaged manager of the Premier Hotel follow command or
directions of the General manager. Moreover, all task which are performed by the
managers are usually give to support to the organisational goals and objectives. In
addition to this assistant manager perform an important role because they communicate
between general manager and departmental manager of Premier Inn Hotel (Bodolica,
Spraggon and Shahid, 2018). This helps to improve overall organisational performance
through exchanging all information in a proper manner.
 Operational Staff- Individuals who are engaged in the operational staff usually, interact
with all stakeholders that relates with functions or operations of hospitality services. This
governs that operational staff of Premier staff hotel is the key of their high success and
they consists of all those factors which is useful for functional units. Food and beverage
department, housekeeping, front desk, etc. perform an important role to improve overall
productivity of business operations.
Business environment analysis in context of Premier Inn Hotel
The term business environment consists two words in which business represent the
commercial activities which perform work with aim of improving company profits. On the other
side, environment refers to the surroundings that impacts on operations of business. Usually,
micro and macro are two types of business environment which impact on company operations.

Furthermore, internal environment is controlled by management but external factors of business
are beyond the power of Premier Inn Hotel.
SWOT Analysis
With analyse and understand overall details of micro environment management formulate
policies which improve the company strength to investigate or identify new opportunities related
with business (Filimonau and Magklaropoulou, 2020). This helps management to complete their
work according to the internal factors of organisation and it aids company to maximise the
company policies by engage of SWOT model. SWOT analysis of Premier Inn is mention as
below:
Strength
 High occupancy rate is identified as
one of the major strength related with
business process.
 Almost in each geographical area hotels
of Premier Inn hotel exists so strong
presence is concerned as another
strength of company.
Weakness
 Premier Hotel chain expanded in
European countries only so limited
geographical are is the first weakness of
organisation.
 From previous period hygiene is one of
the major issue that generate problems
for Premier Inn. So quality related issue
are identified as another problem for
business.
Opportunities
 Developing countries and wide scope in
the tourism industry are considered as
an opportunity or unexplored area for
Premier Inn hotel.
 Most of the hotel organisation are
implementing smart technical solutions
so digitalization is considered as a new
opportunity for business.
Threats
 High competition in the hospitality
marketing is identified as one of the
major threat related with business.
 Sudden or unexpected changes in the
rules and regulations due to pandemic
conditions are identified as the major
threat related with business.
The main purpose of SWOT model is to identify the strength and weaknesses of internal
workplace. In the context of Premier Inn Hotel strength factor is used to accomplish

opportunities while with understand of weakness factor management overcome from them for
increase their productivity (Kohe, Purdy and Litou, 2021). In the last, to minimise threat
management make changes in company policies to perform all work in an organised manner.
PESTLE Analysis
The term PESTLE analysis is explained as a system which focus on all external factors
related with organisation. In simple terms, PESTLE is an abbreviation which stand for Political,
Economical, Social, Technological, Environmental and Legal factor for business. PESTLE
model in the context of Premier Inn Hotel is explained as below:
 Political Factor- Government rules, regulations, etc. which impact on the organisation
operations and functions are considered within the political factor. Furthermore, UK
government is stable so this work as a favourable factor for business. While, heavy tax
policy on leisure policy is an unfavourable decision for Premier Inn Hotel.
 Economical Factor- In the context of economic factor growth relates with business
policy include GDP, inflation, demand and supply, etc. UK economy is developed and
stable so this work as a favourable factor for respective business because this helps to
earn company profits in an easy manner (Smirnova, 2019). On the other side, Brexit
decisions and Covid-19 conditions generate problem and an unfavourable environment
for the organisation.
 Social Factor- With understand of social factor this is identified that taste and
preferences perform an important role for the society and also, it directly impacts on the
company business. Therefore, this is important for Premier Inn hotel to understand
current market trends and to generate favourable results management offer discounts on
all those sections which are high in demand of society. While, customers perspective is
too dynamic and unstable so this create problems for management of premier services to
deliver all services for a long time.
 Technological Factor- In the present scenario, technology is one of the most important
perspectives which improve all functional and operational productivity. Example- Online
booking is identified as an important and favourable perspective that helps to manage and
accept reservation of customers in minimum time-period. While, technology
implementation in the company is one of the costly and expensive factor so this create
problems for Premier Inn hotels to earn high profits.

 Legal Factor- Legal factor induce immense impacts on the operations and functions of
business because breach of any law impact on the goodwill of business. Premier Inn hotel
systematic structure and this generate favourable results for organisation while,
unfavourable factor related with COVID-19 protocols because they are complex to
follow as tourist face problem to relax after strict rules implementation (Viglia, 2017).
 Environmental Factor- For the hospitality organisation environment is one of the most
compulsory factor to induce or follow among business and this is because its operations
depend on environment conditions. Favourable results are generated by the management
through manage and control wastage in company.
CONCLUSION
From the analysis of above report, this is concluded that business structure perform an
important role for an organisation and it aids the management to perform all functions and
operations with a systematic process. With understand and analyse the concepts of business
environment overall business policy is improved through understand both internal and external
factors. This also aids to manage and perform all work according to the current marketplace and
conditions. Along with this the study of hospitality organisation and the impact of Covid-19 on
company operations is also understand through this report. Moreover, to understand the external
environment PESTLE model is utilised and to analyse internal environment management focus
on SWOT model. Both of this methods perform an essential role for maximiser the company
productivity by analyse the company factors.

REFERENCES
Books and Journals
Ahmad, M.U. and Murray, J., 2019. Understanding the connect between digitalisation,
sustainability and performance of an organisation. International Journal of Business
Excellence, 17(1), pp.83-96.
Bharwani, S. and Mathews, D., 2021. Techno-business strategies for enhancing guest experience
in luxury hotels: a managerial perspective. Worldwide Hospitality and Tourism Themes.
Bodolica, V., Spraggon, M. and Shahid, A., 2018. Strategic adaptation to environmental jolts: an
analysis of corporate resilience in the property development sector in Dubai. Middle
East Journal of Management, 5(1), pp.1-20.
Filimonau, V. and Magklaropoulou, A., 2020. Exploring the viability of a new ‘pay-as-you-
use’energy management model in budget hotels. International Journal of Hospitality
Management, 89, p.102538.
Kohe, G.Z., Purdy, L.G. and Litou, A., 2021. An examination of para-sport organisation
approaches in France. Developing and Supporting Athlete Wellbeing: Person First,
Athlete Second.
Smirnova, L.S., 2019. Economic effects of the implementation in the company of the innovative
models of management based on the stakeholder approach and network forms of the
business organisation. International Journal of Nuclear Governance, Economy and
Ecology, 4(4), pp.273-287.
Viglia, G., 2017. Customer satisfaction and pricing decisions. In The Routledge Handbook of
Consumer Behaviour in Hospitality and Tourism (pp. 201-207). Routledge.