Premier Inn Hotel: Analysis of Business Organization and Environment

This report provides a comprehensive analysis of the Premier Inn hotel's organizational structure and business environment. It begins by outlining the company's history and current operations across the UK, Ireland, UAE, Qatar, and Germany, emphasizing its early adoption of extensive advertising techniques. The report details the organizational construction of Premier Inn, highlighting key departments such as Human Resources, Marketing, Food and Beverages, and Accounting, and their respective responsibilities. Furthermore, it includes a SWOT analysis, identifying the hotel's strengths, weaknesses, opportunities, and threats, and a PESTEL analysis, evaluating the political, economic, social, technological, environmental, and legal factors impacting the company. The report concludes that Premier Inn has established a strong market position through effective strategies and can further expand globally by carefully managing both micro and macroeconomic variables. Desklib provides access to this assignment, offering students valuable insights and study resources.

Business Organization

Table of Contents
INTRODUCTION...........................................................................................................................3
Organizational construction of the Premier Inn hotel.................................................................3
Business organization's environment analysis of the hotel.........................................................4
SWOT ANALYSIS.....................................................................................................................4
PESTEL analysis.........................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
The purpose of the construction of this particular report is to sum up the organisational
structure of the Premier Inn hotel, which is a popular British hotel brand name with more than
800 hotels operating in different parts of the world. The company was established by Whitebread
as Travel Inn in 1987 with a vision of a tough competition with Traveloge. Whitebread later
bought the “Premier Lodge” in the year 2004 and with time incorporated it with “Travel Inn” to
form the present-day business under the name of “Premier Travel Inn” which was later sawed-off
to “Premier Inn” in the year 2007. The particular locations it operates in our – UK, Ireland, UAE,
Qatar and Germany. In-fact, Premier Inn was the first leading hotel which invested in the
advertising techniques through an extensive approach, in order to heighten the promotional
schemes that were prevailing in the market at that point of time. The essentials that will be
thoroughly discussed in this study covers the organisational structure operating in the hotel
mentioned in the above statements along with an exhaustive study of the environmental scanning
through the usage of the SWOT and the PESTEL analysis. The implications of the relative
factors affecting the functioning of the company thus will be discussed in detail.
MAIN BODY
Organizational construction of the Premier Inn hotel.
The structure of an organisation is an imperative aspect of the distinguished plan of a
business. It is an all-inclusive arrangement formulated by the owner to specify the departmental
duties and obligations in a careful manner. It thereby is responsible for the management of the
power structure and distinctly defining the authorities and respective duties of the personnel
employed in the company (Andrade and Ruão, 2022). In respect to the Premier Inn, the services
that are provided by them are the USP of the brand. The amenities provided to the guest
highlights the exceptional services which stands them out in the hotel industry. The domains are
segmented in terms of the departments that are variedly assigned such as the:
 Human Resource Department – The recruitment of the personnel, remuneration
assigned to them, grooming and benefits as well as the allocation of the appropriate duties
that are allotted to them is the major responsibility of the HR department of the Premier
Inn hotel.

 Marketing - The relationship maintenance with the parties along with encouraging the
brand in a viable manner is another important aspect which requires detailed attention in
regard to the chosen marketing strategies by the Premier Inn. This eventually will help in
boosting the sales of the company through an effective utilisation of the determined
promotional schemes
 Food and Beverages – The responsibility of running the room services in an effective
manner along with the maintenance of the bar and restaurant operating in the Premier Inn
falls upon the F&B department and it has to carefully take care of the duties.
 Accounting department – It helps in accounting the costs that are incurred and the
generation of revenue by the company in an accurate and precise manner. The complete
ledger of the hotel is maintained by them for the Premier Inn and any form of mishap, if
incurred, is the chief responsibility of the employees involved in the division.
Business organization's environment analysis of the hotel.
The illumination of the business environment defines the circumference where the
commercial functions takes place. It reflects the operations of the enterprise and elucidates, that
the business is extensively dependent upon the environment in which its operates (De Giovanni,
2022). This determines the organisational capacity of the business. The element which highlights
the functioning of the hotel is the authority it holds in industry i.e. Industry Leadership. With a
good leadership quality, the company achieve wonders in the market.
SWOT ANALYSIS
The main purpose of a SWOT analysis is to identify the strengths, weaknesses, opportunities and
threats in the form of a theoretical account, which can help Premier Inn to function with
effectualness. This can therefore help in determining the internal and the external factors that
affects the market positioning of the hotel.
STRENGTHS
 The employment of the highly skilled
workforce through the proper training
and development programs is the key
strength of the Premier Inn hotel.
 The team that is involved in the
WEAKNESSES
 The valuation of the products and
services are although assigned
according to the worth it exhibits
ensuring the best quality it can offer,
but in some manner, they can still loose

resource department preserves the
quality in terms of the value integration
it imbibes. Their motivation remains on
the peak as their goal is to benefit the
business along with their personal
growth (Rosário, 2022).
the customer base because of such
determination, which can be expensive
for a certain segment of the society.
 The occurrence of the situation of
COVID vividly influenced the
businesses of the hotel industry and the
Premier Inn was no special case. The
capital reserves of the company was
duly affected which resulted in poor
functioning of the brand.
OPPORTUNITIES
 There is a realistic scope of developing
the brand loyalty of the customers
through offering them with various
rewards and discounts especially to the
special ones which eventually will
attract new customers.
 New trends in the market, due to the
situation of COVID, can benefit the
company by adapting to it in an
efficient manner which will help in
rebuilding the gaps that has occurred
due to the impact of the pandemic.
THREATS
 The shortage of the skilled and
competent workforce can affect the
functioning of the business in a certain
manner which can affect the profit
earning capacity of the company.
 The increase in the cost of the products
in the market due to the prevalent
market conditions can further influence
the pricing of the services that are
offered by the Premier Inn.
PESTEL analysis.
There are number of powerful macroeconomic factors that directly or indirectly influence
the determined strategies of an organisation (Hasan and Islam, 2022). The change in either of the
factors can bring positive as well as negative impact over the business of a firm. The analysis of
such factors affecting the operations of the Premier Inn can be discussed in detail.

 POLITICAL – The different policies that are being forwarded by the government highly
influences the functioning of the hotel The elections can put pressure over the market
which can strike the company in number of ways. Thus, the aspects related to the political
influence must be kept in mind to prevent the future contingencies from happening.
 ECONOMICAL - The pragmatic economical recession prevalent in the market can affect
the hotel industry majorly. The interest rates put forward by them can either bring
wonders or brig restrictions on the economical progression of the Premier Inn.
 SOCIAL – The dynamic changes in the preferences and the standard of living of the
netizens can bring about severe consequences over the company. The fellowship can lag
behind in delivering the right response to the demands of the customers, variability in the
reservation systems, determination of the rates of rooms and the maintenance of the
standards in terms of the quality that is being provided by them (Mulkhan, 2022).
 TECHNOLOGICAL – The availability of the advanced technology in terms of the usage
of the modern electrical appliances and the IT services that are provided to the customers
for effective resolution of their respective problems is the major area to focus upon by the
Premier Inn.
 ENVORONMENTAL – The Customer Social Responsibility (CSR) is duly fulfilled by
the Premier Inn which makes it the company's core competency in the market. Relative
environmental concerns must also be kept mind to comply with accordance to the
determined standards (Jabłoński, 2022).
 LEGAL – The legal issues that can arise in respect with the partners, suppliers and the
contractors can affect the operations of The Premier Inn. A suitable policy thus must be
developed to ensure the principle of co-operation with the parties that are so involved in
the business.
CONCLUSION
The Premier Inn is UK's biggest hotel brand that has built a position for itself in the
market with due course of time. The company has made significant progress in the marketplace
with impeccable choices of strategies that are implemented by them. An inference can thus be
made upon the analysis which states that in terms of the segmentation of the varied departments,
the company has duly achieved the predetermined standards. The SWOT analysis has further
explained the core factors that can influence the company's marketing strategies. The

recommendations made while evaluating the external macroeconomic constituents through the
utilization of PESTAL, further has elucidated the impact that can cause due to the negligence in
either of the sphere. The Premier Inn thus is in certain position to acquire the rest of the world
and globally expand by taking care of the micro as well the macroeconomic variables.

REFERENCES
Books and journals
Andrade, J.G. and Ruão, T. eds., 2022. Navigating digital communication and challenges for
organizations. IGI Global.
De Giovanni, P., 2022. Blockchain Technology Applications in Businesses and Organizations.
Available at SSRN 4067588.
Hasan, I. and Islam, M.N., 2022. Leadership instills organizational effectiveness: a viewpoint on
business organizations. SN Business & Economics, 2(3), pp.1-18.
Jabłoński, A., 2022. Robustness in the Business Models of the Organizations Embedded in the
Circular Economy. In Research Anthology on Business Continuity and Navigating Times
of Crisis (pp. 443-471). IGI Global.
Mulkhan, U., 2022. Ethical and Sustainable Business Organization: New Ways of Thinking and
Acting. In New Economies for Sustainability (pp. 213-228). Springer, Cham.
Rosário, A.T., 2022. Challenges of Design Thinking in the Innovation of Individuals and
Organizations. In Handbook of Research on Digital-Based Assessment and Innovative
Practices in Education (pp. 131-157). IGI Global.
Spradley, M.M., 2022. Business Model Innovation: Sensemaking in Organizations During the
Covid-19 Pandemic (Doctoral dissertation, Fielding Graduate University).