Premier Inn Hotel: Business Organisation Analysis & Case Study

This case study provides an analysis of Premier Inn Hotel's business organisation, examining both internal and external factors influencing its operations. It employs SWOT and PESTLE frameworks to evaluate the hotel's strengths, weaknesses, opportunities, threats, and the impact of political, econom...Read More

Understanding
Business Organisation
(Case Study)

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
SWOT Analysis .........................................................................................................................3
TASK 2............................................................................................................................................4
PESTLE Analysis .......................................................................................................................4
TASK 3............................................................................................................................................5
Organisational Structure of Premier Inn Hotel .........................................................................5
CONCLUSION ...............................................................................................................................6
REFERENCES:...............................................................................................................................8
Books and Journals:....................................................................................................................8
Online .........................................................................................................................................8

INTRODUCTION
A business organisation may be define as the entity which are formed to carrying on the
commercial activities with a motive to fulfil the need and demand of the customer in a very
effective manner (Ziora, 2020). In simple terms terms, the management of the organisation are
organized in such a manner which help them in generating more and more profit. This report is
based on the Premium Inn Hotels. The company was founded in 1987 by Whitbread as Travel
Inn. This British hotel is belongs to British hospitality expert company Whitbread Plc and it is
one of the largest brand of the UK hotel chain with more then 800 hotels all across the globe.
This premium inn hotels deals in providing great food product to their customer and comfortable
rooms to their guest. The company operates their hotels in variety of locations like city centre,
airport and suburbia to compete with Travelogue and Ibis hotels. This report will covers the
external and internal analysis of Premium inn Hotel with SWOT and PESTLE tool along with
this their organisation structure.
TASK 1
SWOT Analysis
Strength-
Goodwill:- the good of the Premium Inn hotel is termed as one of the biggest strengths
for the business management (Wang and Wang ,2020). The company has a good image in the
hearts and minds of the customer because of the managerial team of the company which provide
excellent facilities and services to their customer.
Capability:- the business management is capable of managing the large amount of rooms
for their customer in a very effective manner and because of this they large customer base.
Weaknesses-
High competition:- this act as weakness for the company as the Premium Inn hotel face
high rate competition which comes in the way of sustaining its position in the market for long
period of time.
Global presence:- In the industry of multinational hotel chain the company is not able to
elaborate its global presence.
Opportunities-

Investing:- investing in the digital market by the management help developing their
brand value in the global market and this act as a opportunities for the company.
Brand value:- the management has an opportunity to develop their brand value by
experience which act as a intense benefit for the company in the international market.
Threats –
Lock-down:- this will act as a threat for many of the business all across the globe in the
last few years. The Premium inn hotel is also affected very badly by this lock-down. If similar
situation came in the future then it will be very challenging for the company (Longhurst and
Et .al., 2020).
Airband :- In hotel management Airband will be act as a threat for the different
department of the hotel.
TASK 2
PESTLE Analysis
Pestle analysis may be define as an strategic framework or tool which help in evaluating
the different external factor which directly affect the working of the company. In relation to
Premium inn hotel the Pestle analysis is being discussed below:-
Political Factor:- In the hotel industry of UK the government has a huge control and
hold. During this pandemic the political party which are in power ban travel from one country to
another country this directly impact on the hotel and tourism industry. In respect to Premium inn
hotel, political factor is act as a positive factor for the organisation because of the many changes
in the tax reform policy by the government (Ortega and et. al., 2019). New tax reform policy
helps in generating more profit for the hotel which help in creating or building new strategies
like discount in booking room to their customer, decrease in the accommodation rates and many
more.
Economical factor:- Hotel industry has been considered as one of the biggest and largest
growing investment sector in the modern scenario. In relation to Premium Inn hotel, change in
the rate of currency, exchange rate and interest rate sometimes develops challenge for the
management. These changes directly impact on the price of the ticket, amount of booking the
rooms, accommodation rates and many more. Sometime it act as a positive factor for the
customer like if the currency of the country is stronger then the region where the individual is
travelling then it increasing the purchasing power of the customer.

Social factor:- This factor has a huge impact on the working of the different business
functions of the management. In relation to the Premium inn hotels, tourism is one of the main
organisation structure factor of generating profit for the company whether it is external or
internal. In UK holidays like bank holidays, Christmas holidays is to be consider as important
date from the hotel industry point of view. This boost up the tourism within the country. But
because of this pandemic the rate of tourist is being decrease following years. Due to this sales of
the organisation is gowning down. To recover from this vaccination campaign has been done by
the government.
Technological factor:- this factor is directly related to productive of the corporate firms.
In relation to Premium inn hotel, the organisation comes under the hospitality sector where direct
relation has been developed with the customer. So the managers and employees of the company
must have to use the new machines and technology for sanitising the rooms and wash rooms.
They also use mask and shield while dealing with their customer (de la Rosa and et .al., 2019) .
Along with this the manager of the firms adopt the various technologies which is available in the
market which not only help them in sustain in the competitive market but also help in generating
profit.
Environmental factor :- environmental care and the corporate social health
responsibilities are came under this sector. In the present time these factor have been seen as top
most priority for the business (Islam and et .al., 2017) . In relation to the Premium inn hotel, the
manager of the company must have to considers these factor as important for the smooth
functioning of the business. By considering these elements hospitality industry can ensured the
better productivity.
Legal factor:- this includes the various laws, rules and regulation which are develop by
the government of the country. The organisation have to kept in mind the different rule and
regulation while operating in the hospitality industry. In relation to the Premium in hotel, the
organisation must have to follow the rules and regulation which are develop by the UK
government, the miss compliance of the the laws create a big issue in operating the various
business task. The avoiding of the legal laws put the respective firm in the high risk.

TASK 3
Organisational Structure of Premier Inn Hotel
Premium inn hotels are one of the largest developing hotel chain brand of UK. The firm
has more then 800 budget hotels and presently reached to a milestone of more then 72000 rooms
all across the UK and beyond. As in relation to the premium inn hotels, management can follow
the hierarchical organisational structure in their management. This organisational structure not
only support them in thinking but also help them in identifying the various solutions of their
issues which came in the way of success. Hierarchical organisation structure may be define as a
way of structuring an organisation by using authorities at different level of company(Chen and
Yang, 2018). This is also called as chain of compound between the superior and subordinate at
the various level of the organisation. In this hierarchy the higher level of authority control the
lower level of authorities which simply means that highest level holding the more power. This
structure has been represented in typically Pyramid shape. The chairman and the chief executive
of the company make all the critical decision and then pass to the different level of management
through subsidiary levels. If someone at the lower of this organisational structure have some
query or wants to make decision than they can their request for approval through this chain of
compound. This type of structure not only authorised the higher level but also offer the sense of
roles and responsibilities in the different level of management. In the hierarchical organisational
structure, candidate and the higher level authorities are highly motivated and perform their work
with utmost honesty and productivity.
CONCLUSION
From the above report it has been concluded that business organisation have a great
impact on the different functions of the business because of this pandemic. Covid 19 brings lots
of issue and challenges which might be faced by the management. Along with this the
management applies different effective tactics to overcome from these problems. This report
concluded that the Premium inn hotels must have to follow the Hierarchical organizational
structure which not only help the management in the smooth functioning of the business abut
also help them in overcoming from the threats which are faced by them during this pandemic.
Along with this this report also concluded the external and internal factor which affect the

management with the help of SWOT and PESTEL framework and how these factor directly
impact on the Premium inn hotels.

REFERENCES:
Books and Journals:
Chen, L.J. and Yang, H.B., 2018. Construction of stimuli-responsive functional materials via
hierarchical self-assembly involving coordination interactions. Accounts of chemical
research, 51(11), pp.2699-2710.
de la Rosa, C.B and et .al., 2019. PESTEL analysis with neutrosophic cognitive maps to
determine the factors that affect rural sustainability. Case Study of the South-Eastern
plain of the province of Pinar del Río. Infinite Study.
Islam, S and et .al., 2017. Inorganic arsenic in rice and rice-based diets: health risk
assessment. Food Control, 82, pp.196-202.
Longhurst, G.J and Et .al., 2020. Strength, weakness, opportunity, threat (SWOT) analysis of the
adaptations to anatomical education in the United Kingdom and Republic of Ireland in
response to the Covid‐19 pandemic. Anatomical sciences education, 13(3), pp.301-311.
Ortega, R.G and et. al., 2019. Pestel analysis based on neutrosophic cognitive maps and
neutrosophic numbers for the sinos river basin management. Infinite Study.
Wang, J. and Wang, Z., 2020. Strengths, weaknesses, opportunities and threats (Swot) analysis
of china’s prevention and control strategy for the covid-19 epidemic. International
Journal of Environmental Research and Public Health, 17(7), p.2235.
Ziora, L., 2020. Machine learning solutions in the management of a contemporary business
organisation. Journal of Decision Systems, pp.1-8.