MGBBT0UBN - Premier Inn Hotel Chain Business Environment Case Study

This case study provides an in-depth analysis of Premier Inn's business organization and its operational environment. It begins with an introduction to Premier Inn, highlighting its position as a leading British hospitality firm and the UK's largest hotel chain. The report then examines the organizational structure of Premier Inn, identifying it as a hierarchical structure that facilitates specialization and clear lines of command. A significant portion of the study is dedicated to analyzing Premier Inn's business environment through SWOT and PESTLE analyses. The SWOT analysis identifies Premier Inn's strengths (strong brand reputation, kid-friendly image, free Wi-Fi), weaknesses (customer refund issues during COVID-19), opportunities (technology adoption for enhanced safety), and threats (impact of COVID-19 lockdowns). The PESTLE analysis explores the political (government policies during the pandemic), economic (reduced sales and profitability), social (cultural and lifestyle influences), technological (adoption of advanced technologies), legal (compliance with safety norms), and environmental factors affecting Premier Inn. The report concludes by emphasizing the importance of understanding the business environment and utilizing tools like SWOT and PESTLE to inform strategic decision-making.

Understanding business
organisation

Table of Contents
1. Introduction............................................................................................................................1
2. Organisational Structure of Premier Inn Hotel............................................................................1
3. Business Environment Analysis of Premier Inn Hotel................................................................2
3.1 SWOT Analysis................................................................................................................2
3.1.1 Strength.....................................................................................................................3
3.1.2 Weaknesses...............................................................................................................3
3.1.3 Opportunities............................................................................................................3
3.1.4 Threats......................................................................................................................3
3.2 PESTLE Analysis.............................................................................................................3
3.2.1 Political Factors........................................................................................................4
3.2.2 Economical Factors..................................................................................................4
3.2.3 Social Factors............................................................................................................4
3.2.4 Technological Factors...............................................................................................4
3.2.5 Legal Factors............................................................................................................5
3.2.6 Environmental Factors..............................................................................................5
4. Conclusion...................................................................................................................................5
REFERENCES................................................................................................................................6

1. Introduction
Business organisation is considered as a firm developed for the intent of carrying upon
commercial business which states how businesses are structured as well as how to produce
products or services and accomplish the requirements of clients (Alade and Windapo, 2019). The
business organisation mainly intent to concentrates upon either gaining profit (profit
organisation) or developing society (not-for-profit). The company that are going to be
undertaken for this is Premier Inn which is one of the growing British hospitality’s expert firm
Whitbread PLC. Moreover, they are the largest hotel chain performing with over 800 hotels
which have above 72000 rooms all over United Kingdom and beyond. Its headquarters is in
Dunstable, UK and is founded in year 1987. The aim of this report is to understand the
operational business environment. The topics which are going to be discussed in this report are
organisational structure, business environment analysis with assistance of SWOT and PESTLE
analysis.
2. Organisational Structure of Premier Inn Hotel
Organisational structure is undertaken as the system which aids detail how certain norms,
role and accountabilities are delegated to leads the vision as well as mission. Moreover, an
effective structure highlights each staff’s job description and how they fit into entity. In addition
to this, it enables businesses to remain effective as well as concentrated and this even ascertains
how data flows among several levels. In respect of Premier Inn Hotel, it has Hierarchical
organisational structure. Respective structure rely upon vertical chain of command from top level
and various management layers. In addition to this, it is beneficial as it helps their staff to be
expertise into its areas with various opportunities to specialise.
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3. Business Environment Analysis of Premier Inn Hotel
Business environment considered as those prospects of surroundings business ventures, that
impact or influences their practices as well as ascertain its effectualness (Li, 2020). As per the
Keith Davis, “Business environment is undertaken as the aggregate of whole situations, events
and influences which surround and impact it”. So, for analysing the business environment of
Premier Inn hotel SWOT and PESTLE analysis are performed below:
3.1 SWOT Analysis.
SWOT analysis is undertaken as the simple but helpful model to determine the firm’s
strengths, weaknesses, opportunities and threats. Moreover, this also aids entity to develop upon
what they perform, to highlight what they are lacking, to reduce risks as well as to undertake
huge competent benefits of chances for growth and success. SWOT Analysis of Premier Inn
hotel is discussed below:
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3.1.1 Strength
Premier Inn has developed much effective brand reputation over many years. Moreover,
it is kid and bike friendly image coupled with free wifi 24 *7 have been huge selling point for
hotel. In addition to this, it was also voted as the best United Kingdom economy hotel brand at
British Travel award 2017 and 2020. Addition they have very stronger presence in UK so even in
COVID-19 pandemic situation it was awarded as best hotel brand.
3.1.2 Weaknesses
Premier Inn key weakness during COVID-19 pandemic situation they has been accused
to refuse to refund few consumers who booked their rooms. As an outcomes, it would made
various customer unhappy and also reduces their images.
3.1.3 Opportunities
The key opportunity of Premier Inn is adaption of technology. As the COVID-19
pandemic situation arises so it becomes tough for hotel as well as guest (Minja, 2020). For
instance, by adopting advanced technology they can develop new rooms with full safety and also
taking care of hygiene.
3.1.4 Threats
As due to COVID-19 pandemic situation huge lockdown occurs has decimated various
business across the world into last couple of years. So, Premier In was impacted badly and
challenging too.
3.2 PESTLE Analysis
PESTLE analysis is considered as the strategic model which is utilised to determine the
external environment of venture through breaking down the opportunities as well as issues
within political, economical, social, technological, legal and environmental factors
(Nanayakkara, 2019). Moreover, it may be effectual framework to utilise into corporate strategy
planning as well as to identify the benefits and drawbacks of business tactics. PESTLE analysis
of Premier Inn hotel is discussed below:
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3.2.1 Political Factors
Political factors associate with government controls as well as influences upon economy
or sector. Moreover, government factors can be economic or legislation policies. Additionally,
political environment may impact hotel sector by a range of factors such as trade tariffs, fiscal
policies and other (Nielsen and Dane-Nielsen, 2019). So, due to COVID-19 pandemic situation
government passed new policies for hotel and hospitality industry to stop their operation. This
impacted the Premier Inn negatively as they have to bear huge losses.
3.2.2 Economical Factors
Economic factors have a direct affects upon firm’s long term aspects within marketplace.
Moreover, the economic environment can impact how firm its service cost or influences the
demand as well as supply model. As COVID-19 pandemic situation arises so there is a huge
impact upon hotel industry as they were not supposed to perform their services. As an outcome,
Premier Inn has to faces the reduction into their sales and profitability.
3.2.3 Social Factors
Social factor like culture demographics may affects the all industry environment through
influencing peak purchasing durations, buying habits and lifestyle preferences. In addition to
this, society is vital as individual’s culture and lifestyle both may impact when where and how
they desire to involve with goods & services. It incorporates ethics, demographics and others.
3.2.4 Technological Factors
As at present time, technology is enhancing vastly. So, it is considered to be the most
important factor as this may have direct or indirect impact upon all industry. Whereas few
sectors would be much impacted through technology in comparison to others, innovation into
technology can affects marketplace and customer preferences. So, After the COVID-19pandemic
situation is under control, it would be beneficial for Premier Inn hotel to adopt advance
technology so that they can able to provide hi-tech service to their guest. But due to this, they
have to bear higher costing.
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3.2.5 Legal Factors
Legal factors can impacts external as well as internal environment of firm. Moreover, the
legal and regulatory environment may impact process and policies of sector. After lockdown
also, the hotel and hospitality industry have to comply some norms as well as policies related
with safety of guests. This would be positive impact over Premier Inn as this enhances their
image among customers.
3.2.6 Environmental Factors
Environmental factors incorporate overall aspects related to physical atmosphere as well as
to common environmental protection needs. Generally, hotels guest stay into hotel for various
reasons like when visiting family, friends and others (Sivarajah and et. al., 2020). After very long
time lockdown due to COVID-19, People like to visit some goods location where whether is nice
so as Premier INN hotel is available in almost various places so it would be the positive aspect
for them. As this helps them to boost their business again in effective and efficient way.
4. Conclusion
As per the above report, it has been concluded that it is very important for entity to
understand the operational business environment. For, instance, SWOT and PESTLE analysis are
applied. Moreover, SWOT analysis is undertaken as the simple but helpful model to determine
the firm’s strengths, weaknesses, opportunities and threats. Moreover, this also aids entity to
develop upon what they perform, to highlight what they are lacking, to reduce risks as well as to
undertake huge competent benefits of chances for growth and success. In addition to this,
PESTLE analysis is considered as the strategic model which is utilised to determine the external
environment of venture through breaking down the opportunities as well as issues within
political, economical, social, technological, legal and environmental factors.
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REFERENCES
Books & Journals
Alade, K. and Windapo, A., 2019, July. 4IR leadership effectiveness and practical implications
for construction business organisations. In Construction Industry Development Board
Postgraduate Research Conference (pp. 62-70). Springer, Cham.
Li, F., 2020. The digital transformation of business models in the creative industries: A holistic
framework and emerging trends. Technovation, 92, p.102012.
Minja, D., 2020. Strategic Philosophy and Competitive Advantage: Conceptual Understanding
and Application in Public Sector Organisations. East African Journal of Business and
Economics, 2(1), pp.10-19.
Nanayakkara, H.L.K.T., 2019. Understanding the influence of changes in physical office layouts
on the organisational culture of large organisations (Doctoral dissertation).
Nielsen, C. and Dane-Nielsen, H., 2019. Value creation in business models is based on
intellectual capital–And only intellectual capital!. Journal of Business Models, 7(2),
pp.64-81.
Sivarajah, U. and et. al., 2020. Role of big data and social media analytics for business to
business sustainability: A participatory web context. Industrial Marketing
Management, 86, pp.163-179.
Online
Hotel organisational chart. 2021. [Online]. Available through:<
https://www.orgcharting.com/hotel-organizational-chart/>
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