Premier Inn: Business Organisation, SWOT, PESTEL Analysis Report

This report provides a comprehensive analysis of Premier Inn's business organization, focusing on its structure, strategic positioning, and external environment. The introduction defines business organization and its general forms, then provides a brief overview of Premier Inn, including its fo...Read More

Understanding
Business Organisation

Table of Contents
INTRODUCTION ..........................................................................................................................3
ORGANISATIONAL STRUCTURE.........................................................................................3
SWOT ANALYSIS.....................................................................................................................4
PESTEL ANALYSIS..................................................................................................................5
CONCLUSION................................................................................................................................6

INTRODUCTION
The word Business Organisation is defined as, the way in which structure of the
businesses are designed and helps in achieving the goals of the organisations. The general forms
of business organisation are Partnership, Proprietorship, Corporate and LLP (Tulsian, 2002). It is
designed with the motive of performing commercial activities of purchase and sales. In context
to Premier Inn, it's dealing in Hospitality industry, with having the crown of UK's amplest hotel
brand name. It was founded in 1987, by Whitbread, having headquarter in Dunstable, England,
UK. It is serving in the different countries of Europe. The organisation was named as 'Travel Inn'
at the time of it's establishment (Klever, Visser and Engelfriet, 2021). After the acquisition of
'Premier Lodge' it was renamed and recognised as 'Premier Travel Inn'. This file includes the
organisational structure of the company, factors through which external and internal activities of
the organisations are being monitored such as SWOT and PESTAL analysis and ended with the
crux, which will help in knowing the whole summary of the project.
MAIN BODY
ORGANISATIONAL STRUCTURE
The way that determines how the activities are conducted and monitored, in such a way
that motives of the organisations are achieved. It also outlines the direction of the information
how it flows, either it is top to down or bottom to top, also it can be in a centralised or
decentralised forms (Tate and Hopkins, 2020). A specified structure is used by each and every
organisation within its business. A organisation in which each and employee knows its roles and
responsibilities and follows them in that defined way are considered as a successful and manage
full organisation (Stevenson, 2021). A well defined structure always helps in saving the time,
energy and resources of the company and increasing the efficiency and effectiveness of the
organisation. Some important and commonly used types of organisational structured are as
followed.
 Hierarchical organisational structure – For defining the levels of authorities in a clear
manner where a group of employees are assigned by one manger, he is responsible for
deciding the work for each and every employee, forming pyramid shaped structure are
termed as a Hierarchical Organisational Structure (Jones and Jenkins, 2021).

 Functional organisational structure – This structure is somehow similar to hierarchical
structure, each and every individual department is managed separately or independently.
It also starts with the top level management and flows down to lower level management.
The department of this structure had believes on their employees that they are skill full
and expert in will help the management in achieving their goals.
The organisational structure which Premier Inn follows is Hierarchical organisational
structure which means all the roles and responsibility of the employees are already being
defined, everybody knows the work which they have to perform. In this structure the company
follows the 'vertical integrated model' (Turner, 2020).They mostly focus on centralised
controlled over decentralised control. The structure is helping them in encouraging teamwork,
customer satisfaction, meeting the needs of the customers, attain their long as well as short term
goals and promoting gender equality. The ratio of female staff at the top level management is
only 34% over all the top level authorises, but with this also the organisation never made
discrimination at the time of pay.
SWOT ANALYSIS
It is a strategic management technique, used by each and every organisation so that they
can known more about their internal strength and weaknesses and external opportunities and
threats which affects their organisation (Teoli, Sanvictores and An, 2019).
Strength Weaknesses
Occupancy rate – Premier Inn has the
occupancy rate of 76.3% and with this they had
a crown of most strengthen position in its
industry in UK.
Strong existence in UK– The company has
roughly around 800 hotels only in UK, which
have around 80,0000 rooms, where around five
million customers visits in a month
(AlMarwani, 2020).
Limited global presence – The company is
only covering the countries of Europe. The
countries which they are covering are UK,
Ireland, UAE, Germany, Isle of Man,
Guernsey, Qatar and Jersey.
Refund Issues – The ample of queries
regarding refund are seems to be appeared
regularly by the customers, especially at the
time of covid, this situations seems to appear
more rapidly all this things are making
customer dissatisfied with the services.

Opportunities Threats
Digital Marketing – The company can use
different tools and techniques of digital
marketing to make its presence online also(Cui,
Allan, and Lin, 2019). This will help the
company in reaching out to more customers
and will help in building more strong value.
New market – As the company is having its
largest number of hotels in UK, after UK they
started building hotels in Germany with having
28 hotel presently and getting the appreciable
results, so its a opportunity for them to explore
in other countries too.
Vast competition – The industry in which
Premium Inn is dealing has a huge competition
in its industry. Their main competitors are
Holiday Inn, Easyhotel and lbis dealing in the
same segment, same category and with same
budget.
Legal threats – As the company is dealing in
other countries too so they have to follow the
rules and regulations of other countries too,
otherwise it will affect their brand value
(Büyüközkan and Ilıcak, 2018). Also, the
company is not paying refunds on time and not
taking care of proper hygiene, which can
results in that the legal authorities can take
legal action against the organisation.
PESTEL ANALYSIS
It is a structure or way used by the marketers to monitor the external environment or
macro-environment factors which may impact the organisation. PESTEL analysis denotes
Political, Economical, Social, Technological, Environmental and Legal factors affecting internal
and external environment of the organisation (Alanzi , 2018).
 Political - Factors which are only controlled by the government and don't have any
individual interference are considered as political factors (Golitsyna, 2021). The
government has decreased the corporation tax this results in increasing profits of the hotel
industry but, increased the VAT from 17.5% to 20%.
 Economical factors: Economical factors depends on the economic performance of the
country which directly affects the organisation. Premium Inn offers in low budgeted hotel
too, so at the time of recession in 2008, when all their competitors were booking loss

Premium Inn was the only only with having the profit of 174,753 thousand Euros
(Marinovic-Matovic ,2020). Even its strong competitor had booked a loss of 448
thousand Euros. So, dealing in budget hotel resulted in its biggest strength.
 Social factors: Social factors tends how social culture such as religion and ethics,
consumer buying patterns, opinions and attitudes and so on, is affecting the demand of
the companies products. Premium Inn mostly target the people at the time of holidays,
because at that time mostly people tends to travel and in condition to spend more money.
The time period which they focuses are seasonal vacations, Christmas Eve and band
holidays.
 Technological factors: Rapid changes, development and innovations in technology
which affect the companies operations, comes under technological factors. With the help
of internet Premium Inn is more likely to be visible virtually, now its more easier to
identify its target audience and increase in the demand among the customers (Fakari
Sardehae and et. al., 2021).
 Environmental factors: Environmental factors includes all the environmental aspects
and natural calamities occurs that are not under human control. Once when the flood
occurred all the transport services and network services were being affected. Due to this
it was difficult to travel and reach at the hotel, this results in loosing a huge amount of
customer of Premium Inn.
 Legal factors: Legal factors affect from both sides internally as well as externally.
Companies have its own rules and regulations, when they plan to change them and
employees deny to obey their instructions, then it affects the organisation internally and
when the changes in legislative laws take place then it is affecting the organisation
externally (Shatskaya and Loginov, 2018). Premium Inn do not focus on the hygiene part
with this legal actions are to be taken against them, but they provide equal pay to
everyone, no gender discrimination is made.
CONCLUSION
From the above research it can be concluded that the business organisation plays a
important role in ensuring the higher profitability, through which they are making a contribution
in the economy. With this the organisation is using hierarchical business structure under which a
group of employees are instructed by one manager and employees has to follow the instruction

of that manager, in order perform the functions smoothly. Moreover, Swot analysis has been
conducted in to have a better understanding on the internal as well as external factors affecting
the organisation. Lastly, PESTLE Analysis has been conduct in which Political, Economical,
Social, Technological factors have a positive impact on the business and Legal and
Environmental factors have a negative impact on the organisation.

REFERENCES
Books and Journals
Alanzi, S., 2018. PESTLE Analysis. Project Management.
AlMarwani, M., 2020. Pedagogical potential of SWOT analysis: An approach to teaching critical
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Büyüközkan, G. and Ilıcak, Ö., 2018. Integrated SWOT analysis with multiple preference
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