Premier Inn Hotel's Business Organisation: A Detailed Analysis

This report provides a detailed analysis of Premier Inn Hotel's business organisation, a British Limited Hotel chain. It explores the hierarchical organisational structure, highlighting its benefits and disadvantages. The report includes a SWOT analysis, examining the hotel's strengths, weaknesses, opportunities, and threats, as well as a PESTLE analysis, which evaluates the political, economic, social, technological, legal, and environmental factors impacting the hotel's operations. The analysis considers the impact of COVID-19, Brexit, and other external factors on Premier Inn Hotel's business strategy and performance. Desklib provides access to this and many other solved assignments for students.

Understanding
Business Organization

Contents
INTRODUCTION.............................................................................................................................3
Organisational structure of Premier Inn Hotel...............................................................................3
Internal and external analysis.........................................................................................................4
CONCLUSION..................................................................................................................................6
REFERENCES..................................................................................................................................8

INTRODUCTION
Business organisation is an entity which is formed with the purpose to carry on the
commercial enterprise. It describe that how a business structure is made and how it this structure
helps the company to meet their objective or goals. It performs the commercial activities in order
to earn profit by providing services and goods to their customers according their need and satisfy
them by meet their requirements. All business organisations contain common function and feature
such as aim to achieve, formal structure, use of resources, legal regulations, objectives
requirement of direction and legal controlling. A business is designed in order to focus on the
generating profit and improving society. By focusing on profitability, it is known as for profit
organisation. If it concern about society then it is a non profit organisation (Adatiya, 2021). The
company chosen in this report is Premier Inn Hotel, which is a British Limited Hotel chain. It is
founded by the Whitbread in Dunstable, United Kingdom during 1987. It is UK's biggest hotel
brand having around 800 hotels and 72000 rooms. This report will cover the organisational
structure of the chosen organisation, the external and internal environmental factor that impacts
the hotel.
Organisational structure of Premier Inn Hotel
The Premier Inn Hotel is a major brand of the Whitebeard PLC. It is largest hotel in
UK. The structure of an organisation is a system which outlines that how the certain
activities of a company are directed to accomplish the organisational goal ( Al-Dmour,
Masa'deh and Obeidat, 2017). There are various types of organisational structure, but the
Premier Inn Hotel has an hierarchy organisational structure. It is a traditional and
commonly used by the business organisation. In this structure, it contains a direct chain of
the command from top to bottom in organisation. Under this structure, the members of
Premier Inn Hotel communicate chiefly with their immediate superior and immediate
subordinates. The higher authorities delegate decision making authorities to the lower level
management. When the market changes take place unpredictably then the information has
travel up in organisation as a result, the decisions have to travel down to working level
( Rubery and Grimshaw, 2020).
Benefits of hierarchical structure
 Control orientation- When a company has few products to sale and there is specific
marketing message foe distribution, then this system work well. It helps the employees to
understand leadership well and also help to organisational communication well.
 Career path- An organisational by having those structures has a clear path as the
employees become advanced through several management levels over years. The

promotional opportunity increase employee’s moral and motivates them for work ( Al-
Htaybat and von Alberti-Alhtaybat, 2018).
Disadvantages of hierarchical structure-
 Restricted information- In this system, there is a little downward flow of the information
to lower level at work place, which tend to the cramp any initiative that might or else
originate in these areas.
 Added cost- This system require a huge amount for supporting the senior group of
management including, internal auditors, extra layers of management, control and
budgeting department etc ( Black and Warhurst, eds., 2021).
Internal and external analysis
SWOT analysis of Premier Inn Hotel
There is an internal analysis of respective hotel with the purpose of to examine its strength
and weakness with exploring its opportunities that the enterprise should consider for its further
growth and pay attention toward threats to eliminate them. This analysis is given below:
 Strength- The Premier Inn hotel established a reputed brand image over the time and it
was voted as the best UK economy hotel brand. It also has won many accolades award
( Pérez, 2021). It has a good network of distribution, supply and with its all stakeholder. It
also maintained quality of the services and customer’s comfort by understanding their
needs
 Weakness- It has only a limited global presence in comparison to other market giants as it
operates only in few countries. There is high competition n market due to this, an intense
competition for its brand means small margin ( Maddodi, 2019).
 Opportunities- It has an opportunity to exploit the new markets. It can make tie- ups with
more strategies. By investing in digital marketing technology it can grow its business at a
global level. By provide a good customer value; it has the opportunity to build a brand
value for its hotel. This hotel prospering in Asia- Pacific despite COVID 19 ( Manogaran
and Lopez, 2017).

 Threats- Due to the COVID 19 and lockdown, the respective hotel impacted badly.
Similar circumstances in future may turn out to be very extremely challenging. It suffers
from a huge loss during this time period. There are several competitors of Premier Inn
hotel such as Easy hotel, Holiday inn and Ibis. Due to this, there is a strong competition,
which the hotel has to face ( RAHMADITYA, 2021). There are some unfair trade practises
in this hotel, if it does not take any action at time, arguably from the trade union and health
or safety executive then there is risk of legal action against it.
PESTLE analysis
There are some macro- environmental factors that might affect decision making of
process of company’s strategy ( Panić and et. al., 2021). Therefore, PESTLE analysis is very
helpful to analyze external environment of the Premier Inn Hotel.
Political factors- It affect and organization in term of government policies, trade restrictions,
political stability and many more. COVID 19 had masked true impact of the Brexit on hospitality
industry in UK, expect more hotel to bemoan the condition as the attempt for recovering from
pandemic. In context of Premier Inn Hotel, it is impacted by the government controls as their
policies are not favourable for this hotel. But the tax reform is very beneficial for the Premier Inn
Hotel. It helps them in term of tax reduction that will lead the luxury and quality service for the
guests ( Bramley and Ogilvie, 2019).
Economic factors- There are some components such as interest rate, inflation rate, credit
availability etc. that impacts a company. According to thr office for the national statistic, the
unemployment rate in UK fell to around 4.2% in three month of the last year. Economy is
performing well in UK and Germany. The Premier Inn Hotel also acknowledges the vast impact
the pandemic has had on their finance. The COVID 19 is expected to the result in very material
revenue loss during 2021 and despite the actions group is taking in organization ( Vojvoda, 2018).
Social factors- These elements include the safety, career attitude cultural norms and many others.
In context Premier Inn Hotel of during COVID 19 they follow the rule of social distancing. It also
working towards community by offering employment to them and contribute constantly to the
society by establishing schools or donation for charities. Now the customer prfer to order online
food to save their time. With this changing trend of customer, the respective hotel also start
facility of online food delivery.

Technological factors- Innovation and new technologies affect an organization vastly as it require
a huge amount to invest in research and development. it become very crucial for the Premier Inn
Hotel to take benefits of internet and social media. In this they can target the community groups of
citizens in cost effective manner ( Marković, and Furjan, 2020).
Legal factor- There is several legal laws such as taxation, legislation change labour law,
employment law etc. The adjustment in legal system has huge impact on the Premier Inn Hotel
since it can influence the firm’s management. To avoid the legal consequences during COVID 19,
it follows all the government’s guidelines effectively. They implement strategies according to the
legal regulations ( Rýpar, 2021). The company is following health and safety act by ensuring that
all equipments are in right condition and also follow the national minimum wages act in which it
offer that wages to its employees which are decided by the government.
Environmental factors- These elements concerned with impact of surrounding environment and
ecological aspects. Impact of the global climates change on organisation can be very important. It
includes climate, health and many more. Safety and wellbeing of the guest in Premier Inn Hotel is
critical. For this, during COVID 19 they had brought this into the sharp focus on daily cleaning
regime across all the UK and Ireland hotel ( Mbotini, 2019).
CONCLUSION
From the above report it is concluded that business organisation are those entity which are
formed with the purpose of profit earning. All business enterprise has different organisational
structure according their requirements. The hierarchical structure in an organisation is very
common. It this, the higher level management instruct lower level management in an organization.
This structure is very beneficial for the employees’ career path as it provide the promotional
opportunity which helps them to grow. For an organisational of is mandatory that they identifies
the external or internal environmental components that has the ability to affect their business. It
makes enable the business implement their strength over weakness and aware them about new
opportunities for their business by consider all threats which may become a hurdle in their way of
success. During COVID 19, many businesses impacted adversely. At this time some
organisational uses it as an opportunity and for some it become a big threat. It affects the business
at macro level in term of political, social, economical factors and many more. So, it is essential for
a business to analyse PESTLE analysis to protect their business from external impact. Therefore,

to operate an enterprise efficiently, it is essential to determine and control these types of
components.

REFERENCES
Books and Journals
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