HND in Business: Premier Inn Business and Environment Analysis Report

This report provides a comprehensive analysis of the business environment impacting Premier Inn, a prominent hotel chain. The analysis begins with an introduction outlining the scope of the study, followed by a detailed PESTEL (Political, Economic, Social, Technological, Environmental, and Legal) analysis, which examines the external factors influencing the company's operations and profitability. The report then presents a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis, evaluating Premier Inn's internal capabilities and external challenges. This includes a comparative SWOT analysis of other hotels to highlight competitive advantages and disadvantages. The report concludes by synthesizing the findings from both PESTEL and SWOT analyses, illustrating their interrelationships and implications for Premier Inn's strategic decision-making. The report also includes references to relevant academic sources.

Business and Environment

TOC
• Introduction
• PESTEL Analysis
• SWOT Analysis
• Swot analysis of Other Hotel
• Analysis of PESTEL
• Analysis of SWOT
• Conclusion

Introduction
There are different internal and external factors that can influence the
business of an organization. The influence of internal and external factors on
the business of Premier Inn is explained here.

PESTEL Analysis
Political Factors
• The decisions of the government influences the organization in the
different ways. Government implements different changes in the policies
related to tax, import & export and other factors to maintain the stability in
country economy and governance.
• Good changes in government policy can improve the number opportunity
for the organization.
• The tax related changes can affect the pricing policy of Premier Inn. It can
cause increase or decrease in the price of product and services of hotel and
that can reduce the number of guest in hotel.

Cont…
• Relaxation in the tax deduction can make the pricing policy of Premier Inn
which can increase the number of customer.
• The policy related to tourism can have impact on the business of hotel.
Convenience in the tourism policy can help the organization to entertain
more guests.
• Changes in food and security can force the hotel to make change in the
kitchen department.
• The security related laws can cause problem to customer and reduce their
satisfaction level that lead to drop in revenue also it can make them feel
more secure and this can improve their experience.

Cont…
Economic Factors
• The changes in tax policy can affect the finance management of the
Premier Inn.
• Relaxation in tax policy allows the organization to implement positive
changes in pricing policy.
• The situation like economic crisis and recession can cause a lot damage to
the company.
• Export and import duties can cause extra cost to organization.

Cont…
Social Factors
• The culture can affect the growth of organization. Culture values and
social values can improve or reduce the performance of employees.
• Better social and cultural condition help the organization to be more
creative and innovative.
• The better social and cultural condition motivates the employees to
perform better.
• Good workplace culture can imp[rove the performance of the company
employees and this lead to overall performance of organization.

Cont…
Technological Factors
• The changes in the previous technology can improve the guest handling
capacity of Premier Inn.
• Automation and Artificial intelligence allow the organization to improve
its reach towards the consumer.
• Implementation of new technology can cause high cost to organization.
• In the competitive market it to match with other competitor is most
important. It can cause damage in annual revenue.

Cont…
• Environmental Factors
• The location of the hotel can improve the customer retention.
• The sustainable and ethical environment can improve the performance of
the organization.
• The weather condition of the location can improve the profit of the hotel
by attracting more guest.
• The bad weather condition can cause damage the infrastructure of hotel,
this can cause a lot cost and can create negative thinking related to security
concerns.

Cont…
• Legal Factors
• Changes in the legal procedures and rules can force the company to make
changes in the company guest policy. Which can be good or bad.
• The changes related to bane on alcohol and liqueur product can affect the
bar business of Premier Inn.
• Positive changes in the legal laws can help the organization to improve the
business performance.

SWOT Analysis
Strengths
• Well experienced employees.
• Location of hotel
• Services of hotel; are satisfactory for the consumer.
• Food and restaurant business of the organization is well settled.
• Good house keeping service.
• Safe and secure work place environment.

Cont…
• Weakness
• Less number of staff.
• Parking place issues.
• No extra space for expansion.
• High pricing policy.