MGBBT0UBN: Premier Inn Case Study on Business and Environment

This case study provides an in-depth analysis of Premier Inn, a leading British hotel chain, focusing on its organizational structure and business environment. It examines the company's flat organizational structure, emphasizing the roles and responsibilities of its management and employees. The report explores the impact of external factors, particularly the COVID-19 pandemic, on the hospitality sector and how Premier Inn can navigate these challenges. Internal and external analyses are conducted using SWOT and PESTLE frameworks, identifying the company's strengths, weaknesses, opportunities, and threats, as well as political, economic, social, technological, environmental, and legal factors affecting its operations. The study concludes that a flat organizational structure is beneficial for problem-solving and sustainability, and emphasizes the importance of analyzing both internal and external factors for business success. Desklib offers a platform for students to access this and many other solved assignments.

Case Study Premier
Inn Hotel Chain

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
Organisational Structure of Premier Inn Hotel...........................................................................3
TASK 2............................................................................................................................................4
Business Environment Analysis of Premier Inn Hotel ..............................................................4
TASK 3............................................................................................................................................4
SWOT Analysis :-.......................................................................................................................4
TASK 4............................................................................................................................................5
PESTLE Analysis........................................................................................................................5
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
The term business organisation may be defined as an entity in which an individual or
group of people are engaged in any commercial or professional activity in order to meet their
customer target in a very effective manner(Acquah and Chen, 2021). In business organisation
management are organised in order to carry out all the activities of the business in a very smooth
manner which enhance the modes of management. The following report is going to give
information on the Premium Inn Hotel which is being considered as largest British hotel chain all
across the globe. The headquarter of the respective company is situated in the Dunstable,
England, UK. This is a private limited company which comes under hospitality industry. The
company was founded in 1987 by Whitbread as Travel Inn Hotel. Company have around 800
hotel with more then72000 rooms. In varieties of location like city centres, suburbia, airports and
many more Premium Inn hotel operates their functions. This report is going to cover the
organisational structure which is followed by the chosen company and environmental analysis of
the hotel. After words this report cover the internal and external analysis in relation to the
respective company by using appropriate framework.
TASK 1
Organisational Structure of Premier Inn Hotel
The Premium Inn hotel has a well known image not only in the markets of UK but in all
across the globe. The company is being considered as the fastest growing hotel chain in all
across UK with around 580 budget hotels. In the business management of the Premium Inn
hotel the roles and responsibilities of the chief executive office, chairman, board of members and
many more are abstracted and well defined. The obligations and responsibilities related to chief
executive and chairman of the company has been agreed by the board members. A flat
organisational structure is also known as horizontal organisational structure in which the various
departments of the company has been involved (Chi, 2020) . On this structure the candidates of
the company has also being involved in the process of decision making. In context to the
Premium Inn Hotel, several candidates has been involved in their management. The respective
company have long chain of unit which is large and have effective set of management. In full
length organisational structure, less candidates has been involve in their management who deals
with each others. In this structure the executives of the company is going to offer supervising to

their candidates. In comparison to full length organisational structure the flat management have
less organisation. In the flat management structure sense of roles and responsibilities has been
authorised to their candidates. Along with this, all candidates of the company are highly
motivated in order to carry out all the task of the organisation in very proper manner. In addition
to this respect has been given by the candidates to each other so that no conflicts has been arise
between them. If the business wants to concentrate on the innovation and technology then flat
organisational structure is very desirable for them. So in relation to Premium Inn Hotel, the
management of the company is going to utilise the flat organisational structure in order to
support the business. By using this structure the management of the company is going to think
the solutions of the various problems which has been arise between the employees.
TASK 2
Business Environment Analysis of Premier Inn Hotel
Business environment is being considered as those environment situation in which the
employees of the company perform their different operations(Dietz and Mulder, 2020). As the
functions of the Premium Inn hotel highly impact by the situation of Covid 19. A negative
impact has been seen on the hospitality sector because of this pandemic. But by applying
different types of tactics and plan of actions the management of the company can overcome from
these issues.
TASK 3
SWOT Analysis :-
This is framework which are used by the organisation in order to find their
strength and weakness and along with the opportunities and threat which are present in
front of them. In context to the Premium Inn Hotel, SWOT analysis has been discussed
below:-
Strength :-
One of the biggest strength of the company is their healthy image in the market.
As the goodwill of the Premium Inn hotel is very good because the services and facilities
offer by them to their customers in vary effective manner which direct impact on the
hearts and mind of the consumer(Thobela, 2020). The another strength of the company is

their employees. As the employees of the company have capability to manage the large
number of rooms for their customers in a very effective manner (Hardy and Bham, 2020).
Weaknesses :-
As immense rate of competition has been seen in the hospitality industry. In the
hotel section high rate of competition has been face by them in order to sustain in the
competitive market. Due to this the company is not able elaborate their global presence in
the field of hotel chain.
Opportunities :-
The management of the hotel can use the different marketing tactics in order to
expand their business. The management of the company have to invest more in the digital
marketing promotions techniques. Due to this the brand value of the company has been
increased.
Threat :-
The biggest threat which are present in front of the Premium Inn Hotel is their
rivals. As the AIRBNB is being considered as biggest threat for the company.
TASK 4
PESTLE Analysis
This analysis has been used by the organisation in order to identify the different
external factor which directly impacts on the different activities of the business in both
positive and negative manner. In context to the Premium Inn Hotels the PESTLE analysis
has been discussed below:-
 Political Factors- this factor comprises rules and regulations which are made by
them and stability of the government within the country(Hasan and et. la., 2019).
As in the hotel industry government has strong hold and control if the government
ban the travelling then huge impact has been seen in the tourism and hotel
industry. In context to the Premium Inn hotel this factor impact on the functioning
of the company in a very positive manner because of the amen of tax and reform
policies. Due to this the management of the company is able to build the policy,

better sets the accommodation rates which ultimately reflects on the profits of the
business.
 Economical factors :- in the present era the hospitality sector is being considered
as one of the largest growing sector. In context to the company, management of
the company have to face the challenges if the currency rates of the countries has
been change. This directly impacts on the ticket price and room booking amount.
 Social factor :- as the income of the Premium Inn is totally based on the tourism
factor(Kumaresan and Liberona, 2018). For them seasonal holidays like bank
holidays, Christmas and many more is being considered as best dates for them to
generate profit. On these date the tourism within the country is very high. So the
company can offer low prices and introduce new fun activities for their customer
in order to target the customer in this period.
 Technological factor :- technological factor is being considered as variable in
natures which directly impacts on the working of the different activities of firms.
The organisation who operates in the hospitality sector is directly related to their
customers and their clients. So it is very important for the Premium Inn to adopt
the technological changes in its business operations. The manager of the company
have to use the various technological in order to enjoy the competitive advantage
over other.
 Environmental factor :- the protection of the environment is being considered as
the top most responsibilities of all the business sectors. The respective company
have to considered all the factors which don't harm the environment. Due to this
the productivity of the firm can be enhanced(Rüsen, Kleve and von Schlippe, 2021).
 Legal factor :- the forms who came under the hospitality sector must have to keep
in mind all the rules and regulation which are made by the council of the country.
Miss compliance of laws and regulations create issues for the business enterprises
due to which various task of the business can't be perform in proper manner within
the workplace. Along with this stakeholder of the company can face the high risk.

CONCLUSION
From the above report it has been concluded that it is very important for the
business organisation to analyse both the internal as well as the external factor in a very
proper manner. By doing this the impact of these factor can be measured. After the arisen
of Covid 19 different types of issues has been faced by the hospitality sector and more
impact has been seen on the hotel and tourism industry. This report concluded that the
premium inn hotel should use the flat organisational structure in order to overcome from
such problems. This structure help the management of the company to diverse the set of
command chain in the different sections. Along with this long term sustainability and
high amount of profits can also be earned by the respective company. This report also
concluded the environment analysis of the Premium Inn.

REFERENCES
Books and Journals
Acquah, A. and Chen, H., 2021. The Impact of Workplace Stress Management in a Business
Organisation in the Service Industries–A Case Study on Kingstel Hotel Limited-
Takoradi, Ghana.
Chi, Z., 2020. The Political Economy of China’s Business Organisation Laws and its
Implications for Legal Transplantation: Evidence from the Venture Capital
Industry. Australian Journal of Asian Law. 21(1).
Dietz, J.L. and Mulder, H.B., 2020. The ALPHA theory-understanding the essence of
organisation. Delft University of Technology,[cit. 2019-05-03]. Dostupné z:
https://www. researchgate. net/publication/325619344_ The_ALPHA_theory-
understanding_the_essence_of_organisation.
Hardy, J. and Bham, M., 2020. Understanding Your Organisation: Where to Start as a
Leader. Leadership for Educational Psychologists: Principles and Practicalities, p.101.
Hasan, N and et. la., 2019. Factors affecting post-implementation success of enterprise resource
planning systems: a perspective of business process performance. Enterprise
Information Systems. 13(9). pp.1217-1244.
Kumaresan, A. and Liberona, D., 2018, August. A Case Study on Challenges and Obstacles in
Transforming to a Data-Driven Business Model in a Financial Organisation.
In International Conference on Knowledge Management in Organizations (pp. 263-
276). Springer, Cham.
Rüsen, T.A., Kleve, H. and von Schlippe, A., 2021. The Dynastic Business Family as Family,
Organisation and Network. In Managing Business Family Dynasties (pp. 7-18).
Springer, Cham.
Thobela, M., 2020. Aligning Business Processes to the Strategic Goals of the Organisation.
University of Johannesburg (South Africa).