Premier Inn Hotel: Analysing Structure and Environmental Impact

This report provides an in-depth analysis of Premier Inn's business organization, focusing on its organizational structure and the impact of various environmental factors. The report highlights Premier Inn's adoption of a vertical organizational structure, emphasizing a centralized system of power and formal control. It conducts a PESTEL analysis, examining political, economic, social, technological, environmental, and legal factors affecting the company's operations in the UK, including the impact of the COVID-19 pandemic and Brexit. Additionally, the report includes a SWOT analysis, identifying Premier Inn's strengths, weaknesses, opportunities, and threats, such as increased profitability, hygiene issues, limited global presence, and competition from other hotel chains. The report concludes that understanding these organizational and environmental factors is crucial for Premier Inn to maintain its competitive edge and achieve long-term success, emphasizing the importance of internal and external analyses for strategic decision-making. Desklib provides access to this and many other solved assignments for students.

Understanding Business
Organisation

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK...............................................................................................................................................3
Organisational Structure..............................................................................................................3
Environmental factors.................................................................................................................4
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
Understanding business organisation is one of factors which helps managers to
understand various aspect related to organisation and ensure long term survival of company.
There are different factors which are present inside and outside of organisation that can create
positive as well as negative impact over business (Beynon-Davies, 2021). In order to overcome
of these effects, business needs to first identify these factors. For this, managers of company can
conduct internal as well as external analysis. Internal analysis refers to those analysis which
helps an organisation to identify factors available in business whereas external factors are those
factors which are present outside business organisation. Firm also adopt different organisation
structure which helps them define roles and responsibility of every members of company. These
structure helps to motivate employees in order to attain goals and objective of company. This
project report includes study of Premier Inn which is a UK based hotel organisation chain. This
organisation is established in 1987 in UK by Whitbread and it is an international organisation
which is offering their service in different country. This project report includes organisation
structure as well as environmental analysis of Premier Inn Hotel.
TASK
Organisational Structure
Premier Inn is a hospitality organisation which organise their management in formal and
authentic manner. This organisation is adopting vertical organisational structure where general
manager is main head of company (Engelbrecht, Johnston and Hooper, 2017). In absence of
General manager, executive secretary come in charge. This structure represent centralise system
of power and also reflect formal system of control. This chart indicate that evert department of
company needs to complete their routine task and also needs to consider all rules as well as
regulation of company. Vertical organisation structure of company strengthen operation of
company which helps to define responsibility of each member of company. Organisation
structure of company helps to provide consultation related to core of company ans also culture of
company. It also indicate how organisation infrastructure provide support to needs of company.
Premier inn is getting various advantage by adopting this type of organisation structure as
it clearly define line of authority. This also centralise power of members of company which helps
to make decision in less time and also helps to allocate different task to employees. In this

structure, responsibilities of every members of company has been well defined which increase
efficiency and productivity of company. In this structure, employees feel motivated in order to
attain goals of organisation.
Environmental factors
PESTEL Analysis:
PESTEL analysis is one of analysis which is used by business in order to analyse macro
environmental factors (Ceric, 2016). There are various factors which is to be considered by
Premier Inn while conducting their operation in market of UK that helps to identify political,
economical, legal, social, technological factors. Pestle analysis of Premier Inn hotel includes
different factors which are as follows:
Political Factors: Premiere Inn is one of hospitality organisation which is facing various
government regulation due to pandemic situation as government has put ban on travelling which
create great impact over business and firm is facing huge loss due to this factor (Lanz and
Brown, 2020). This organisation is also facing difficulty due to Brexit as government of UK has
made various changes in their rules and regulation which is to be consider by Premier Inn.
Economic factors: Premier inn is one of organisation which has increased profit every
year but due to covid-19, economy of UK is facing crisis (Nußholz, 2018). Premier inn is an
international organisation and due to which they are also affected with change in exchange rate.
Social Factors: There is increasing health awareness in People of UK due to covid-19
situation which can create impact over business of Premier Inn (Chen and Wang, 2018). As
people are avoiding to go out form their home due to fear of spread of disease which create
impact on business.
Technological factors: Technological advancement and up gradation is important in
business as it helps to saves cost of company and also provide competitive advantage (Crick and
Bentley, 2020). Premier Inn is adopting new technologies in their organisation which provide the
competitive advantage in market. Premier Inn is adopting different methods of digital payment
for convenience of their customers. They are also offering social media marketing to attract their
customers and also increasing their engagement with company.
Environmental Factors: Environment factors are those which are related to
responsibility of business towards environment, preference and expectation of customers.
Premier Inn is one of organisation which is emphasising on corporate social responsibility of

business. Company has started strategy namely Good Together which helps to fulfil their
corporate social responsibility. Objective of this strategy is to reduce carbon emission in market
of UK.
Legal Factor: Legal factor are related to laws and regulation which is to be considered
by Premier Inn which conducting their operation in UK. Minimum wages rate of UK has
increased with 15.5% which increase cost of company (Jayaprakash and Pillai, 2020). For
purpose of avoiding legal issues in their organisation, managers of company have develop
various policy which enhance their image in minds of their customer as well as employees.
SWOT Analysis:
SWOT analysis refers to internal external analysis which helps to identify strength,
weakness, threat and opportunity of business (Hardy and Bham, 2020). It helps organisation to
identify various factors which provide advantage to company and which are not. SWOT analysis
of Premier Inn Hotel is mentioned below:
Strength Weakness
Increased profit: Premier inn is one of UK
based hospitality organisation which has 80%
occupancy rate and also earning increasing
profit with 7.4% which has reached to 468£
million (SWOT analysis of Premier Inn, 2017).
This is one of profitable organisation which is
existed in UK.
Strong presence: Premier Inn has strong
presence in market of UK as it has around
60,990 room in the year 2015 as it is largest
hotel group. Company is also increasing
numbers of their room and has their hotels in
different part of world.
Positive brand image: Premier Inn has build
strong image of their organisation over the
years (Brandão, Cavalheiro and Joia, 2018).
Company is providing kid friendly as well as
Hygiene Issues: Company is facing issues
with hygiene as an undercover filming has
been don by channel 4 reporters and through
this, they found that housekeeping department
of Premier Inn is using guest towel for purpose
of cleaning complete bathroom and toilets
(Guldbrandsen, 2017).
Limited global presence: Premier Inn has
limited global presence in compare to other
market leader as this organisation is operating
in limited numbers of country.
Increasing competition: There is intense
competition in market due to which profit
margin of organisation is small which does not
provide opportunity for growth of company.

bike friendly image and also offering free Wi-
Fi in their hotels. Company is also known as
best economy hotel brand of UK (McNally,
Cerbone and Maroun, 2017).
Opportunity Threat
Opportunity in new country: Company has
entered in market of Germany where they get
success (Strickland, 2017). This allow
company to get in Republic of Ireland. This is
already seen success and growth of Costa
Coffee brand.
New design: There are some properties of
hotel which have been trialling upmarket
design of room and décor which helps to
enhance experience of guest in budget segment
of hotel.
New entry in industry: There are numbers of
competitors in hospitality industry which
create threat for business of Premier inn.
Competitors of Premier inn includes Ibis,
Holiday Inn, Easyhotel and many more.
Company is also getting competition from
Marriott Hotel and other hotel (Staniškienė,
and Stankevičiūtė, 2018).
High risk from legal action: Due to hygiene
issue, company has high risk from legal action
from health an safety executive of Unite trade
union.
CONCLUSION
From above mentioned project report, it can be concluded that understanding of organisation is
important in order to carry operation of company. In order to identify factors which can create
impact on business, firm can conduct environmental analysis which helps them to overcome of
impact of these factors. For conducting internal analysis, managers of company can use SWOT
analysis which is an internal external analysis. This analysis helps to identify Strength and
opportunity which helps to overcome of weakness and threat of company. SWOT analysis helps
managers of company to overcome of their weakness which helps them to reduce impact of
threat on their organisation. Managers of company can also conduct external analysis as it helps
them to identify factors which are present outside their organisation. External factors includes
political, economic, technological, environment, social and legal factors. Political factors are
those which includes interference and regulation of government whereas economic factors are
those which create impact over cost of company. Social factors are those which is related to

culture, norm and values of business where as technological factors are those which is related to
advancement of technology and also provide competitive advantage to a company. Legal factors
are those which are related to laws and regulation whereas environmental factors are related to
whether, pollution and corporate social responsibility of company.

REFERENCES
Books and Journals
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Engelbrecht, J., Johnston, K.A. and Hooper, V., 2017. The influence of business managers' IT
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Hardy, J. and Bham, M., 2020. Understanding Your Organisation: Where to Start as a
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Jayaprakash, P. and Pillai, R.R., 2020. Assessing the business dimensions of green IT
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Crick, R. and Bentley, J., 2020. Becoming a resilient organisation: integrating people and
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Guldbrandsen, M., 2017. Design innovation: Embedding design process in a charity
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Brandão, M., Cavalheiro, G.M.D.C. and Joia, L.A., 2018. Examining a Brazilian internet start-up
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Online
SWOT analysis of Premier Inn. 2017.[Online]Available through:<https://howandwhat.net/swot-
analysis-premier-inn-premier-inn-swot-analysis/>