Analysing Business Organisation and Environment: Premier Inn Hotel

This report provides an overview of business organisations, focusing on Premier Inn Hotel as a case study. It discusses the vertically integrated model used by Premier Inn, highlighting its advantages such as cost reduction and increased sales, as well as its drawbacks like increased risk during uncertain times. The report includes a SWOT analysis, examining the company's strengths (brand name, customer service), weaknesses (high competition, Covid-19 protocols), opportunities (new markets, customer service development), and threats (Covid-19 impact). Additionally, a PESTLE analysis covers political, economic, social, technological, legal, and environmental factors affecting Premier Inn Hotel. The report concludes that analysing the business environment and adopting an appropriate business structure are crucial for achieving organisational goals, with Desklib offering additional resources for students.

Understanding
Business
Organisation

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Organisational Structure..............................................................................................................1
Business Environment Analysis of Premier Inn Hotel...............................................................2
SWOT Analysis of Premier Inn Hotel........................................................................................2
PESTLE Analysis of Premier Inn Hotel....................................................................................3
CONCLUSION................................................................................................................................4
References:.......................................................................................................................................6

INTRODUCTION
Business organisation refers to entities which are formed with a purpose of running the
commercial enterprise. These organisations perform their business activities according to the
laws. There are different types of business organisations such as sole proprietorship, partnerships
and limited liability companies. The main motive of the business organisation is to earn profit
from the day to day activities done in an enterprise (Arrais-Castro and et. al., 2018). This report
consists of brief discussion of business organisation. This report is based on Premier Inn Hotel
which is largest British hotel service chain in UK. The company was established by Whitbread in
1987 with a name of Travel Inn. To form the current business Whitbread company bought
Premier Lodge in 2004 which was the starting of the present business. The Premier Inn Hotel
company has more than 72000 rooms and 800 hotels in their portfolio. Company has their hotels
in many countries such as UAE, Germany, Jersey, Republic of Island etc. company provides the
luxurious rooms to their customers with lip smacking food. This report contains advantages and
drawbacks of company including the business structure used by the company to achieve their
organisational goals (Fahm., 2018).
MAIN BODY
Organisational Structure
The structure on which a company operates plays an important role in the smooth
functioning of the business. It directly promotes company to achieve the organisational goals
which are set by company. Different companies adopt different organisational structures
according to the nature of the company, size, goals etc. In the context of Premier Inn Hotel,
company uses a unique model known as Vertically integrated model (Jenin, Léa and et.
al.,2018). It helps the company to consolidate property, enhance hotel functionality, brand
building etc. This helps the company to gain maximum efficiency and effectiveness. Every
company's business operations are influenced or affected by the organisational structure of the
company. In this type of model company eliminates working solely as a manufacturer,
distributor or retailer. It includes working or performing tasks carried out by suppliers or trade
buyers. It promotes a company to gain specialization in a particular business function, Also this
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models have several advantages such as it helps the company to reduce their costs at different
production processes. The main aim of every company is to increase their sales which directly
increases the profits of a company and this model promotes increased sales. Also this model
helps in reducing the power of suppliers to influence the company which gives a great advantage
to the company. But the main drawback of this model is the risk factor. During the uncertain
market times, risk increases for the company which have an adverse affect on the company.
During the time of Covid – 19, Premier Inn Hotel has faced a lot of problems and company also
faced losses during that time. And to overcome the situation it is necessary to make or coordinate
a strategy, for which company have to incur high costs. This model also helped the Premier Inn
hotels to grow faster than their competitors and generate a strong return on capital for their
shareholders from past 15 years (Kauria, 2018).
Business Environment Analysis of Premier Inn Hotel
Business environment refers to all internal and external factors which have the ability to
influence the business or business operations such as employees, customer needs and suppliers
etc. Some of the factors that can influence Premier Inn Hotels are technical innovations,
government actions, industry trends etc. (Malongwe, 2018).
SWOT Analysis of Premier Inn Hotel
 Strength – It refers to the strong points of the company which gives company an
advantage over the others. In context to Premier Inn Hotel, the brand name and fame of
the company gives a massive advantage to the company. Also their comfortable and
premium stays and services plays an important role as customers get maximum
satisfaction through these services. Also the customer management team of the Premier
Inn Hotel is one of the best thing comparing to the competitors present in same industry
which creates an edge over the others.
 Weakness – One of the biggest drawback of the Premier Inn Hotel is high competition.
There are several players in the markets with a strong brand name and providing
premium or luxury lodging services to their customers in the relevant industry. Another
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weakness of the company is that sometimes company gets huge number of reservations
which makes it difficult for the company to take care of all the required protocols created
due to Covid – 19.
 Opportunity – Premier Inn Hotels have their presence in multiple companies and also
company has came into the long run in UK and Ireland due to successfully introduction
of Premier Inn Hotel in Deutschland. Now company can target new markets and work
toward new nations and regions to capture the market share in the relevant industry of
those regions. Also the company has developed a great customer service through which
gives more convenience to their customers and came to know about their faults in
providing their services (Nwaiwu, 2018).
 Threats – Due to Covid – 19, there is massive change in this industry and company was
unable to fulfil their needs of customers due to high demand which created an adverse
affect on the image of the Premier Inn Hotels.
PESTLE Analysis of Premier Inn Hotel
 Political Factors – It refers to the factors related to government's interference in the
business operations. Government policies and rules and regulations changes rapidly
according to the changes whenever required which creates problem for the hotel industry.
It is difficult to get a visa for UK and company mainly operates in that area which creates
problem for Premier Inn Hotel (Roth. and et. al., 2018). It would be great for the
company if the visa process becomes more flexible for the people from other countries.
 Economic Factors – It includes factors which are the determinants of an economy's
performance that directly affects the company and can have long term effects. In context
of Premier Inn Hotels, the labour cost is high which creates barriers to achieve cost
efficiency in the company in the areas of UK, Ireland and Germany which are the main
focused areas of the company. It would be so much beneficial for the company if they
have business operations in more countries where labour cost is low.
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 Social Factors – People's needs and expectations towards the hotel industry has changed
and grown for a long time such as cleanliness, safety etc. Premier Inn Hotels offers their
services at budget prices and target customers who are looking for very good deals (Odeh
and et. al., 2018). Many hotels in the UK faces the shortage of staffs as many people do
not want to work in hotel industry due to different reasons such as low wages, long
working hours, limited career opportunities etc.
 Technological Factors - Premier Inn Hotels are using latest technology to give their
customers a smooth experience and premium lodging services. Many hotels with same
reputation as Premier Inn Hotels such as Hilton, Marriott etc. are using innovative and
advanced technologies to stay ahead of the competition. Premier Inn Hotel has
introduced many technologies such as digital key system which provides excellent
security, smartphone application to book hotels etc. but it is very expensive for the hotels
to upgrade and develop new technologies.
 Legal factors - These determines the laws that can affect the business environment in a
certain country while there are certain policies of the companies which they maintain for
themselves. Premier Inn Hotels should have to follow all the rules to stay away from the
risk of lawsuits. Also company have their hotels in multiple countries which make it
more difficult to abide by the laws of every country (Odor, 2018).
 Environmental Factors - These factors include all those that influence by the
surrounding environment. Premier Inn Hotels are committed to the industry leading
sustainability by cutting carbon emissions intensity by half by 2025. For this company
has also taken many steps which are also getting positive results.
CONCLUSION
It can be concluded from the above report that there are many business organisation sin
the market and main aim of the organisations is to generate more and more profits. There are
different types of organisations depending upon the size and nature of the business. It is
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important for the business organisation to follow a particular business structure as business
structure is the way of doing the work inside the organisation and helps the organisation to
achieve their goals and objectives. Also it is important to analyse the business environment in
order to know about the business. Through this evaluation a business organisation can know
about benefits and drawbacks of an organisation. For this there are different frameworks such as
SWOT analysis through which a company gets to know their advantages and threats and
PESTLE analysis through which different factors are analysed to know about the organisation.
References:
Books and Journals
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Arrais-Castro, A. and et. al., 2018. Collaborative framework for virtual organisation synthesis
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Fahm, A.O., 2018. Beyond Good Practices and Standards: An Islamic Framework of
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and Empirical Evidence (pp. 3-25). Springer, Singapore.
Jenin, Léa and et. al.,2018. Conditions for an inclusive development of dairy value chains: a
comparative Business Model approach to the dairy industry of Andhra Pradesh, India
[Quel mode d’organisation pour un développement inclusif des filières laitières?]. No.
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Kauria, E., 2018. Successful account management in an aftersales service organisation in
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Cancer Care Organisation. In 2018 1st International Conference on Cancer Care
Informatics (CCI) (pp. 217-230). IEEE.
Odor, H.O., 2018. A literature review on organizational learning and learning
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Roth, S. and et. al., 2018. Multifunctional organisation models: a systems–theoretical framework
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