MGBBT0UBN Case Study: Premier Inn's Business Organisation & PESTLE

This case study provides an in-depth analysis of Premier Inn's business organization and environment. It examines the company's organizational structure, highlighting its tall hierarchy and the impact on communication and decision-making. The analysis includes a SWOT assessment, identifying Premier Inn's strengths, weaknesses, opportunities, and threats, with a focus on its brand image and limited global presence. Furthermore, a PESTLE analysis explores the political, economic, social, technological, legal, and environmental factors affecting the hotel chain, particularly the impact of COVID-19. The report concludes that a suitable organizational structure is crucial for productivity and profitability, and that Premier Inn should consider expansion opportunities while mitigating potential threats through proactive strategies and legal compliance. The student assignment is available on Desklib, a platform offering various study tools and resources for students.

CASE STUDY

Table of Contents
INTRODUCTION................................................................................................................................3
TASK ...................................................................................................................................................3
ORGANISATIONAL STRUCTURE .............................................................................................3
BUSINESS ENVIRONMENT ANALYSIS....................................................................................3
SWOT ANALYSIS ON PREMIER INN ........................................................................................3
PESTLE ANALYSIS ON PREMIER INN .....................................................................................3
CONCLUSION ...................................................................................................................................3
REFRENCES.......................................................................................................................................3

INTRODUCTION
A business organisation which is created to achieve a specific purpose, earn profit, satisfying
the needs and wants of the customers as well as the social welfare of the society that is referred as
the business organisation. Business organisations tell about how a company and its structure is
designed to achieve the organisation's goal. There are basically two types of organisation in the
market. The one is profit organisation which usually earn only profit by satisfying there customers
needs and wants. The another one is the non profit organisation, who's main purpose is to do
welfare for the society, earning profits is the secondary motive of these organisations. In context to
this, the hotel premier inn which is founded back in 1987 and the establishment is done by
whitbread known as the UK's largest hotel brand. Premier inn serve around in various countries like
UK, Ireland, UAE, Qatar and many more. There branches are situated in different locations like
airports, suburbs etc. The aim of this report is to discuss about premier inn's structure and their
environment. Further on there is a swot as well as pestle analysis on premier inn hotel, which will
tell about all the factors related to the company (Allen, Kraakman and Khanna, 2021).
TASK
ORGANISATIONAL STRUCTURE
The organisational structure refers to the a chain of command through which the flow of
work and information in the organisation is decided. The group is created and divided by the
specialisations of the employees, which allows the to work together and efficiently. Delegating the
tasks and the activities makes a specified structure in the company. this helps the employees to to be
aware about their roles and responsibilities by which they work in more effective and efficient
manner. A company can achieve their long term as well as the short term goals if they implemented
a suitable structure in the organisation (Sailer and Hladík, 2021).
Tall organisation structure – a organisation which is delegated into a clear hierarchy refers
to the tall organisation structure. Having this structure in the organisation can be quiet advantageous
as there is a single manager who runs the single department and the work is constantly supervised
by them which results in more specialised work. This structure is very complex which is only
suitable for the firms which are big in nature. In relation to the hotel premier inn, they also have the
tall structure in the organisation as they are very big in nature. The hotel have 10 board of directors
which mainly comprises of chairman, chief executive, group HR director, finance director, and
many non executive directors and all of them have a responsibility to operate a separate department.
the top level managers take all the major decision. Also. This structure slow downs the
communication process as there many layers of management which also results in slow decision
making process. The employees working in the hotel are encouraged and responsible towards their
work because they are very clear about the work assigned to them, which helps them to do their
work within the time limit given by the higher authorities (IASMINA, GABRIELA and
ALEXANDRA, 2019).
BUSINESS ENVIRONMENT ANALYSIS
The set of all the internal factors and external factors like the employees, customers,
creditors, investors, consumer behaviour, lifestyles, trends, climatic changes, law by the
government, changes in technology and many more affects the company's performance,
productivity, profitability as well as the working of the company. In order to premier inn, they have
numerous competitors in the market and the government of UK keep passing new laws and schemes
for the business but also on other hand they have a very good internal factors in the company
(Bruijl, G.H.T., 2018).

SWOT ANALYSIS ON PREMIER INN
Strength
brand image – the hotel premier inn have a powerful and impactful image across the globe
as they are serving since 1987, and have satisfied many customers also which created a good brand
image in the market. They have a good presence in the few countries and served about 5 million
customer till now. The hotel has been awarded many times weather it is the best UK economy
hotel, best budget hotel or trip advisor travellers choice.
Weakness
limited global appearance – comparing the other big hotels like ibis, holiday inn and more,
premier inn serves only in UK, UAE, Qatar and other 2 3 countries , they have very limited
appearance globally. Due to the other rivals in the market they have a very low shares of market and
the profit rate is also going down. Expanding the business more is the only solution for this
(George, 2021).
Opportunities
expansion - for the success in business, one of the opportunity for premier inn is to have the
expansion in its branches and in services too. This will help in generating the revenue not only from
selling the one product or services but from the other ranges as well. They have a quiet good
opportunity to grow their business by expanding it as they have a good brand identity so they can
enlarge their business in the travel and restaurant line as well.
Threats
pandemics in near future – in 2019, when then layer of covid hit the world, the
government has imposed lock-downs all over the world, and that pandemic has became the reason
of drowning of the businesses and their end. Many companies suffered with the losses, mostly the
hotel lines. The pandemic is still not over yet and any other pandemic can arise again in near future.
So premier inn should take this as a threat and take all the necessary actions to face this (Agrawal,
2016)
PESTLE ANALYSIS ON PREMIER INN
Political – in economic development of UK, hospitality sector is the biggest success
area. In UK hospitality line is the largest industry which comes on number 5th. One of
the beneficial point for the premier inn is that they can expand their line, as there is
high demand of hospitality sector in UK. On other hand there is a negative factor too.
If the government of UK impose travel ban due to any reason, then it will affect the
firm.
Economic – due to the pandemic, UK's inflation rate is increased, more awareness
towards health and cleanliness, decreased employment rate and decline in GDP rate.
People started avoiding going out purposelessly, and prefer staying in homes only.
Many people lost their jobs and now they have very less disposable income to spend
on unnecessary expenses.
Social - Covid had a severe impact on customers behaviour and on their lifestyles.
People are more aware and concerned about the hygiene, they only prefer to go to the
places which is clean and works with all the safety measures. People chooses premier
inn as they take care of all the cleanliness around the hotel and make sure that the
staff is working with masks and gloves on (Ali, 2015).
Technological – this is the era of digital world. The hotel have created their own
website and apps for customers, for their easy and quick access. The apps are mobile
friendly and easy to operate. The apps are designed for both androids as well as IOS
users. Premier inn also provides the Wi-Fi access to the users for 30 mins a day.

Legal – premier inn should impose some laws for the betterment of the hotel. Like
innkeeper laws to ensure the safety of their guests and their properties. This law state
the amount of compensation innkeeper will pay in case of damage or if their property
gets stolen. The another law is truth in menu law, this law state that there should be
accurate and fully disclosed information provided to the guests in the menu.
Environmental – premier inn is also known the best responsible company, to
maintain this tag, brand image as well as the client base the activities which are
causing harm to the environment should be reduced. The main purpose of guests to
stay in a hotel is to relax and enjoy, so the chosen hotel have that relaxing ambience
at reasonable prices (Mak and Chang, 2019).
CONCLUSION
The above report's discussions concludes that selecting and implementing a
suitable organisation structure for the company is important to increase the
productivity and the profitability of company. The chosen hotel, premier inn have a
tall organisation structure in the hotel to manage the workflow and have the
supervised work. For deciding and planning the strategies for the future, it is
important to study the environment internally and externally. The swot analysis of
premier inn says that hotel have a strong brand identity in the market, and they have a
limited global appearance and for the growth of business expansion is the greatest
opportunity. Further, the pestle analysis describes that covid-19 has severe impact on
the hotel politically, socially, environmentally, and economically. Lastly the hotel
should impose some laws that will help in the betterment of the business.

REFRENCES
Books and journal
Allen, W.T., Kraakman, R. and Khanna, V.S., 2021. Commentaries and cases on the law of business
organization. Wolters Kluwer.
Sailer, J. and Hladík, T., 2021. Consistent Maintenance Management Model: Results of changes of
maintenance organisation structure and processes. Manufacturing Technology, 21(1), pp.124-
131.
IASMINA, I., GABRIELA, P. and ALEXANDRA, V., 2019. COMMUNICATION
MANAGEMENT IN HIERARCHICAL STRUCTURES. Agricultural Management/Lucrari
Stiintifice Seria I, Management Agricol, 21(1).
Bruijl, G.H.T., 2018. The relevance of Porter's five forces in today's innovative and changing
business environment. Available at SSRN 3192207.
George, R., 2021. Tourism and Hospitality Marketing Planning. In Marketing Tourism and
Hospitality (pp. 149-182). Palgrave Macmillan, Cham.
Agrawal, V., 2016. A review of Indian tourism industry with SWOT analysis. Journal of tourism
and hospitality, 5(1), pp.196-200.
Ali, M.A.B., 2015. Travel and tourism management. PHI Learning Pvt. Ltd..
Mak, A.H. and Chang, R.C., 2019. The driving and restraining forces for environmental strategy
adoption in the hotel industry: A force field analysis approach. Tourism Management, 73,
pp.48-60.