MGBBT0UBN Case Study: Premier Inn Hotel Organisation & Environment

This case study provides a comprehensive analysis of Premier Inn, a leading UK hotel chain. It delves into the hotel's organizational structure, highlighting the responsibilities of site managers and the support network available to employees. The analysis includes a SWOT assessment, examining Premier Inn's strengths (high occupancy rate, strong UK presence, brand image), weaknesses (limited global presence, refund issues), opportunities (new markets, growth in Germany), and threats (competitors, legal issues, lockdowns). Furthermore, a PESTLE analysis explores the political, economic, social, technological, environmental, and legal factors impacting the hotel's operations, including the effects of government policies, economic crises, social trends, technological advancements, climate change, and employment laws. The report concludes by emphasizing the importance of adapting organizational structures to environmental changes and encouraging employee involvement in the process.

UNDERSTANDING
BUSINESS
ORGANISATIONS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Organisational structure of Premier Inn hotel..................................................................................3
Business environment analysis of Premier Inn hotel.......................................................................4
SWOT analysis............................................................................................................................4
Strengths............................................................................................................................4
Weaknesses........................................................................................................................4
Opportunities.....................................................................................................................5
Threats...............................................................................................................................5
Pestle Analysis ............................................................................................................................5
Political..............................................................................................................................5
Economic...........................................................................................................................5
Social.................................................................................................................................6
Technological....................................................................................................................6
Environmental ...................................................................................................................6
Legal..................................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Premier Inn is hotel chain in UK limited service and is the largest hotel brand which has
more than 72,000 rooms along with 800 hotels. It has its chain of hotels in multiple locations
involving the city centres, airports and suburbs that compete with the rivalry firms that are the
Travelodge and the Ibis hotels. Premier Inn was developed by Whitbread in the year 1987 for
competing with its rivalry firm which is Travelodge. In the year 2005, this company developed
its 500th hotel in the Hemel Hempstead and purchased 11 holiday inn hotels in the early 2006 in
England and Wales. In the year 2006, premier travel inn started to establish a new bedroom
design for the latest hotels to avoid the design modifications between Travel Inn and the Premier
Lodge hotels. Whitbread stated the purchase of the Golden Tulip UK in September in the year
2007 which later turned into the Premier Inn hotels. The hotels differ in size with numerous
smaller inns and big city centre hotels that are built on purpose (Glebovskiy, 2019). This report
will discuss the organisational structure of the Premier Inn hotel, its business environment
analysis, SWOT analysis, PESTLE analysis.
MAIN BODY
Organisational structure of Premier Inn hotel
Premier inn has a large organisational structure which means that the manager of every
site is responsible of the operations, they are also assisted by a vast support network. Depending
upon the complicatedness of the problem, the workers can contact the person at the proper level
of the structure, for the advice and help. The members at the higher management has to be
available at all the time. The intranet of the company is given the access to every employee of
the staff and has all the insight on the aspects of the working life in the Premier Inn, starting from
general advice to the legal documents. Each particular section of the organisation is being
allocated a specific chart function in order to make the employees contact easily. Whenever any
new information is being updated that will arrive in form of a message at the bottom of the
computer screen of the workers. The division of Whitbread use this kind of the channel most of
the time. Moreover, the intranet also include a list of all the emails of the site and the contact
numbers in case if any new data is required to be shared. The head office generates the posters
and a generic email already ahead of the time of the new promotions and offers. And will then
announce a meeting or course for the training and discussion in the future if it is necessary.
Shares are being offered to the members of the staff at a discounted price if they join the

'Whitbread share save scheme”. The workers get a 20% discount and can also avail a profit from
the success of their manager or employer. When the staff is satisfied then automatically the
business functions very smoothly (Wamundila).
Business environment analysis of Premier Inn hotel
The business environment is the set of all the internal and the external elements or the
factors like customer requirements and expectations, demand and supply, employees, suppliers,
clients, management, activities by government, owners, social trends, economic changes, market
trends, innovation in technology and much more affect the functioning of the organisation (Saint-
Ges, 2021).
SWOT analysis
Strengths
Occupancy rate- The occupancy rate of the Premier Inn Hotel exceeds than the 76.3% and
currently it is performing in a very better position in the industry. Multiple customer or the gusts
like the cosy duvet, blackout curtains and the pillows.
Unshakable presence in the UK- The premier Inn has around 800 chain of the hotels in the UK
involving around 80,000 of the rooms. It offers around 5 million guests each month and also has
a better number of the hotels in Germany also.
Locations- Most of the hotels of the Premier Inn is being located around the attractive tourist
destinations and the airports. Some exist near the colleges and the universities also
Brand Image- The company has a very reputed brand image over many years and it was also
being awarded by many popular organisation in the UK.
Weaknesses
Limited global presence- It has only very limited chain of the hotels across the world.
Refund issues- It has some refund problems by the customer who booked the hotels in the part
of the Wales at the time of the lock down.
Hygiene issues-The trade union also specified some issues regarding the hygiene and
exploitative work practices of the hotel (Soussan, 2021).

Opportunities
New markets- There are various new and the latest markets that are being developed after its
successful entrance in the nation of Germany (Ndebele, 2021).
Increased growth in Germany- The nation provides increased number of the opportunities
related to the growth of the company as it is visited a number of times in Europe and across the
globe.
New decor- The room design and the renewal of the floor along with the tiling of the wall is to
be done.
Threats
Competitors- There exists some strong competitors of the Premier Inn hotel which are the
Marriott and various other small and independent hotels.
Legal threats- From the trade unions and the health and the safety executives, the legal issues
can arise anytime.
Lock downs- The premier Inn hotel was affected by the pandemic very badly and if it happens in
the future it can affect the company in an adverse manner (Sabharwal and Miah, 2021).
Pestle Analysis
Political
In relation to the influences of the government, the corporation tax has reduces in the past few
years and it was discovered the increase in the profits. The value added tax increased from 17.5%
to the 20% as the negative influence was created when the company requested to increase the
price which became unavoidable from the year 2011.
Economic
In the year 2008, the financial crisis led to the recession in UK which caused an adverse effect on
the companies but for the Premier Inn the similar advantages were incurred by the economic
disaster. The budget hotels were considered as the inferior goods and the demand of the service
hotels increased at the time of the recession. This was being proved or could be seen by the profit
and loss account of the Premier Inn in the year 2009 in UK and the company also incurred the

highest revenue in the past 5 years. When comparing with the Marriott hotel, the scope of the
premier Inn hotel was much higher (Mughogho, 2020).
Social
Since the Premier Inn hotel depends on the tourism be it both internal or external, the hotel
company targets the seasonal holidays like Easter, Christmas and the bank holidays because of
which increased number of the people spend their earnings in this time period. The social
elements that are included are the high value for the money, easy accessibility, security, quality
standards, customer feedback, discount and promotion and the answering the demands of the
customer.
Technological
As the technological use of the computers in increasing, Premium Inn has acquired the benefit
from the mobile apps and the internet browsing. The increasing use of the social media, viral
marketing and the advertisements led to the use of the cost effective methods for the purpose of
targeting to the particular audience.
Environmental
The climatic change across the globe can have crucial impact on the Premier Inn. There exists
some days when there is heavy rain and due to which most of the transport services were not
working mainly in the networks of rail due to which it lead to a very negative influence on the
Premier Inn hotel (Suhartanto and Leo, 2018.).
Legal
The latest change in the legislation has caused to the increase in the minimum wage by 12p in the
year 2013 in the month of October. Moreover, Premier Inn is forced to follow and implement
with all the health and the safety laws and legislation and also provide the equal opportunities
under the employment.

CONCLUSION
From the above report, it has been discussed the Organisational structure of the Premier
Inn hotel, the business environment analyses of the Premier Inn hotel, the SWOT analysis and
the PESTLE analysis. The organisations can perform within multiple different structures with
each having unique benefits and disadvantages. If any kind of the structure is not managed in a
proper manner then it will have some kind of the issues and various models are needed to be
applied to those organisational structure for the specific tasks and the environment. The
alteration in the environment also need the change in the organisation that operated in that
particular environment. As once the change has happened in the organisation, it becomes
important to implement the necessary steps in order to develop a new system. The employees
also need continuous encouragement afetr the change in the organisation. Most of the time, the
simple activities of involving the employees in the process of the change can decrease the
opposition of the latest methods. In majority of the organisations, this level becomes impossible
and then the organisation select the few number of the opinion leaders for the promotion of the
advantages of the potential changes.

REFERENCES
Books and Journals
Glebovskiy, A., 2019. Inherent criminogenesis in business organisations. Journal of Financial
Crime.
Mughogho, A.K., 2020. Towards an understanding of how organisations create shared value: A
business model perspective (Doctoral dissertation, University of Pretoria).
Ndebele, M.J., 2021. Understanding the antecedents of business model innovation in traditional
industries and how traditional organisations innovate (Doctoral dissertation, University
of Pretoria).
Sabharwal, R. and Miah, S.J., 2021. Extending Theoretical Understanding for Defining the
Capabilities of Big Data Analytics in Organisations: a Thematic Analysis.
Saint-Ges, V., 2021. Business models of commercial and productives organizations of urban
agriculture [Business models des organisations marchandes et productives de
l’agriculture urbaine] (No. hal-03125356).
Soussan, T., 2021. Data Analytics to Enhance Business Organisations Workflow.
Suhartanto, D. and Leo, G., 2018. Small business entrepreneur resistance of ICT adoption: a
lesson from Indonesia. International Journal of Business and Globalisation.21(1). pp.5-
18.
Wamundila, S., CONTEMPORARY ADVANCES IN MANAGING ORGANISATIONS:
Understanding the Need for Knowledge Retention.