Organizational Structure of Premier Inn and Factor Analysis Report

This report provides an analysis of Premier Inn's organizational structure, identifying its divisional system with product, market, and geographic structures. It explores the impact of internal and external factors, including employee relations, customer expectations, management practices, and the broader business environment, using SWOT and PESTEL analyses. The report highlights Premier Inn's strengths, weaknesses, opportunities, and threats, particularly in the context of the COVID-19 pandemic. It examines political, economic, social, technological, environmental, and legal factors influencing the company, including tax rates, economic crises, tourism trends, technological advancements, and environmental concerns. The analysis also considers the impact of legislative changes, such as minimum wage increases, and how Premier Inn has adapted to these challenges to maintain its position as the largest hotel brand in the UK.

Organizational structure of premier inn’s hotel and
impact of internal and external factors
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Currently, Located throughout the United Kingdom, Premier Inn is the largest hotel brand, with
more than 40.000 rooms distributed across the country. more than 800 locations. The Premier Inn
was previously known as a 'Travel Inn,' and it was under this appellation that it first opened its
doors in 1987. Premier was owned by Whitbread during the course of the company's operations
and served the core functions of eating, sleeping, and drinking. The Premier Inn brand was
created in order to compete with Lord Forte's Travelodge franchise, which had previously
existed. Seventy percent of Whitbread's total earnings are financed entirely by the firm. The
purpose of this project is to evaluate the impact of internal and external factors on Premier Inn,
which will be accomplished through the use of Covid 19. An organization's overall impact can
only be determined by first drawing out the structure of the company and then doing a SWOT
and PESTEL analysis to ascertain the organization's overall influence. If the actions mentioned
above are followed, the learning outcome and goal of the assignment will be achieved.
Activities such as work allocation, coordination, and monitoring are part of an organizational
structure. It is also the lens or perspective through which people observe their organization and
its environment. Premier Inn uses a divisional system among others. These are structures based
on the organization's divisions. These structures include:
Premier Inn's product structure organizes staff and work by product type. If it produces three
distinct items, it will have three distinct divisions.
Market Structure - Market structure is used to group personnel by market. Premier Inn may use
three markets, each with its own division in the organization.
Geographic Structure - Premier Inn has offices in the north, south, west, and east. The
organizational structure would be zonal.To be successful, an organization must consider a variety
of factors, both internal and external, such as employees, customers' wants and expectations
(which includes supply chain management), management (which includes supply chain
management), consumers and vendors, government operations, technological advancements,
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societal changes (including industry trends), economic improvement (such as GDP growth), and
so on (Clegg et al., 2019).
Business environment definition means the sum or compilation of all internal and external
aspects like employees, customer wants and expectations, supply and demand, management,
consumers, vendors, government operations, technical development, societal changes, industry
trends, economic improvement, etc. These elements influence the company's function and how a
company operates directly or indirectly (Baron, 2012). Summary of these elements affect the
environment and situation of enterprises or commercial organisations.
A SWOT analysis is designed to allow a realistic data-based examination of a company, initiative
or industry's strengths and weaknesses. Analysis must be kept precise by eliminating
preconceived opinions or grey regions and focusing instead on real-life settings (Clegg et al.,
2019). Companies should use it as a recommendation rather than as a prescription.
Using a SWOT analysis of Premier Inn, the following advantages were discovered for the
organization.
1. Hilton was named the Best Hotel Chain of the Year at the British Travel Awards, which were
held in London this year.
Additionally, it is the largest hotel brand in the United Kingdom, with more than 50,000 rooms
scattered across more than 700 hotels in the country.
The third case in point is a hotel chain that has received a great deal of media attention recently.
Consumers who book online with a premium hotel brand may be able to take advantage of
special offers and incentives designed specifically for them.
The fact that this hotel brand is one of the most prestigious in the United Kingdom does not
diminish the fact that it has received countless honors in this regard.
As a result of the Premier Inn SWOT analysis, the following concerns were highlighted as being
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of concern:
In the first place, the company's profit margins are exceedingly thin as a result of intense rivalry
for the brand. Premier Inn's SWOT analysis revealed three opportunities, which are summarized
as follows:
The establishment of new strategic alliances should be a major priority for the federal
government. Investing in digital marketing is a good idea.
3.Increasing the value of a brand through the customer experience
The following are the risks identified in the SWOT analysis of Premier Inn:
1.Private rooms are available.Baggage Storage Facilities
2.Bakcpackers Hostels
During Covid 19 situation the strengths and arev going down and some new threats has risen up
for its weakness. And on the other hand for being a famous trusted hotel it has created some
more opportunities than its competitors can. That is why due to Covid pandemic it is stilln as
famous as it was
PESTEL Analysis is the analysis of six elements. They are as following
In terms of political impacts, company tax has been reduced during the last few years, which has
resulted in an increase in profit. Since 2011, the VAT rate has increased from 17.5 percent to 20
percent, which has had a negative impact on the company's ability to justify a price increase that
was unavoidable.
The 2018 Financial Crisis plunged the United Kingdom into recession, producing widespread
issues for businesses (Madueny, 2015). However, for Premier Inn, the economic crisis brought
about some positive outcomes. Budget hotels are often regarded as lesser goods, and as a result,
during a recession, demand for the services provided by Premier Inn may increase, or at the very
least will be less affected than demand for better high-end hotels (Baron, 2012). This may be
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seen by looking at the profit and loss account of Premier Inn LTD, which in the United Kingdom
posted its biggest profit in the last five years in 2019 with a profit of £174,753 thousand. It
becomes even more evident the depth of Premier Inn's performance when comparing it to
Marriot Hotels, which dominates the high-end of the hotel chain spectrum and reported a loss of
£448 thousand for the fiscal year 2019.Knowing that Premier Inn is heavily reliant on tourism
(both domestically and internationally), the firm strategically targets key holidays and dates such
as Easter, bank holidays, and Christmas in order to capitalize on this fact (Hamilton and Webster,
2018). The reason for this is that people are more likely to spend their money during these
periods.
Because of the increase in computer usage, there has been an increase in internet browsing as
well as the creation of mobile apps, which have both increased the exposure of Premier Inn and
made it more convenient to use (Ashton, 2018). As social media platforms, ads, and specifically
viral marketing campaigns have proliferated in recent years, more cost-effective means of
reaching a large number of people have emerged as a result of the growth of these tools. The
ability to target people based on their physical location, internet browsing patterns, and
friendship groupings has become possible due to the proliferation of social media.. The ability of
Premier Inn to take use of this new technology becomes crucial as a result of this development.
Another possible threat is the use of current communication technologies, which could lessen the
demand for business travel and, consequently, reduce the potential client base for Premier Inn's
hotel chain.
As a result of global climate change, Premier Inn may experience significant financial losses
(Madueny, 2015). Because to significant floods caused by the wettest month on record in January
2014, various transportation services, particularly the rail networks, were severely disrupted. The
wettest month on record occurred in January 2014. (Clegg et al., 2019). The fact that Premier Inn
sold up the franchises it controlled at service stations in 2010, and that Premier Inn began
expanding into big cities such as London, suggests that this could have a significant negative
influence on Premier Inn's business.. Individuals who are obliged to drive by automobile and
those who stop overnight at service stations have lost out to Premier Inn as a result of the closure
of rail networks as well as the cancellation of flights (Hamilton and Webster, 2018). An
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especially poignant illustration of how the environment may have an impact on businesses can be
seen here.
As a result of a recent legislative change, a rise in the minimum wage has been introduced. The
company is also expected to comply with health and safety requirements while also ensuring that
all of its employees and customers have equal employment opportunities (Ashton, 2018).
This task was to investigate the organizational structure and the impact that internal and external
forces had on the Premier Inn hotel. It is not always the same. The scenario is different. The
recent epidemic in Covid also made it important to do everything possible. The effects of internal
and exterior sources differ in the setting of a pandemic. In view of the organizational structure
and the political environment, SWOT and PESTEL studies were carried out. The organizational
structure was also involved in this task. Consequently, after analyzing the above, it can be
determined that the learning goals and aims of this project have been achieved.
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References
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