Case Study: Premier Inn Hotel Chain and Business Environment Analysis

This case study examines Premier Inn, a prominent UK hotel chain, focusing on its organizational structure and business environment. It explores the company's hierarchical structure, the roles of employees, and how the organizational structure contributes to business efficiency. The assignment delves into the company's internal and external factors like customer needs and expectations and uses PESTLE analysis (Political, Economic, Social, Technological, Legal, and Environmental) to assess the impact of various factors on the company's decision-making and performance. Furthermore, the case study presents a SWOT analysis to evaluate Premier Inn's strengths, weaknesses, opportunities, and threats within the competitive market, particularly considering the impact of the COVID-19 pandemic. References to books and journals are included. The case study fulfills the requirements of the MGBBT0UBN module, assessing understanding of business organizations and their environments.

Understanding
Business
Organizations

TABLE OF CONTENTS
EASSY.............................................................................................................................................3
REFERENCES................................................................................................................................1

EASSY
Understanding the business organizational is referred as the form of aim carrying the
commercial enterprise. The business organizations have three forms such as individual
proprietorships, partnership and limited company. Premier Inn is the British hospitality company
and largest hotel chain operating across the UK with over the 800 hotels that serving 140 million
guests in a year. The company provide the comfortable rooms and great foods for their guests as
well as supporting the charity such as great Osmond street hospital children's charity (George,
2021). The business organization is referring as the structure of the organization for achieving
the goals and objectives of the company through the better environment in business. The premier
company in the business organization is the limited company which is the largest growing and
developing hotels in the UK. The company look forward for targeting the desires customers to
sustain in the competitive marketplace through delivering the better quality of products and
services.
Organizational structure of the company the Premier Inn hotel is the fastest and biggest growing
hotel in the UK. Organisations structure is hierarchical organisation formation because it has
substantial size that comprises more than 800 hotels. The organization structure on the basis of
managing the large number of organization in order to different authorities with the connecting a
multiple management level and authorities on the different levels within an organization. The
process of decision-making process is flow top to down in context to create tall business
structure in which each stage of management are providing control over responsibilities
(Bodolica and Spraggon, 2018) .
The structure gets wider in order to usually top managements are CEO and followed by
senior management then middle management and finally workers. The roles of employees are
clearly defined within organization as in nature of their relationship with other employees as well
as define the coordination and cooperation of the business. The organization structure helps in
grow the efficiencies of the business in the effective way. When the organization grows this is
helps for increasing the number of levels while it become large. In additions to this, benefit of
hierarchical structure is related to the clear lines of authority and reporting within business also
employees get clearly understand according to their roles and responsibilities.

There are different various type of managers which are involved in this structure and managing
their sector on the basis of pyramid. In observe to accountability for action this is help for all the
actions which are take place at different management levels for achieving the success of business
(Bower, 2018). The organizational control helps in provide the supervision of the employees as
well as motivation to them for improve the employees and business efficiencies on the basis of
managerial control.
On the other words some drawbacks of hierarchical organizational structure such as complex
chains of command that can impact by measured down decision-making. The management is
inconsistence at the different levels. Communications can be delay for some times in order to
track all the steps for transferring the roles and responsibilities (Fyfe and Bent, 2020). Employees
are not allowed to share their opinion within the business organization but the organization
believes in the equal pay for equal employees.
Environment analysis of Premier Inn Hotel is the business environment analysis is reflected the
operation of business and it is highly dependent on environment in which it runs operations. It
has been analysed that report consider as Premier Inn one of prominent budget hotel in UK
(Volodymyrivna and Andriyich, 2019). The internal and external factor of the company is
customers needs, expectations of the customers and employees and its retention, etc. The
company operations are impact by the some elements such as stakeholders, customers, suppliers,
rivals, legislation, industry trends, and social, economical, technological and other government’s
action.
There are various factors in the PESTLE analysis which affect the decision making and
performance of the company.
In the Political factor the pandemic the travel industry are ban and the company face the loss due
to the Covid-19. The Various political factors such as changes in the tax rates and government
influence can impact the performance of the organization. In the hospitality industry helps in
increase the scope of the company as well as benefit for the business to expand with the help of
budget chain (Achinas, 2019). It is also observed that enhance the effectively operate the
business it is essential for the company to evaluate the political factors that can change the
organisation and then plans accordingly.
In the Economic factor it has been practical that hospitality industry was deeply affected
by the covid-19 due to various restrictions that was obligatory by the government. On the other

hand the exchanges rates also impact the amount of the customer that is received from the
tourists. It can be practical that collapse can be one of the major causes for Premier Inn as in this
condition the purchasing control of people are low. The company also ensure that the customers
have nice environments with the great customer’s services.
In the Social factor is measured as one of the most important apprehension for the
company as the needs of the customer’s maintenance on shifting and every customer has its
various taste and cultural values changes across the world. It is necessary to make different
changes in the services according to the customer’s preferences and provides services according
to the consumer’s expectations. The company Premier Inn has focused on the customer
satisfaction and their expectations and made a variety of modifications in their organization
strategies as per the changes in their social and behaviour factors.
In the technological factor, with the enhancement in the development of the technology
it is essential for the business to adopt for various types of the online booking facilities for better
experience a satisfaction of its customers. In the further discussion, the use of social media
platforms, the company can promote the products and services delivered to the customers (Dube
and Van Eck, 2020). Furthermore, Premier Inn also offers online reservation facilities and
services for the new customers and guest of the company.
In the Legal factor, There have been different changes in the legislation about the
minimum wage rate that result to enhance the profitability and cost of operation of the budget of
the company. Legal factors has resulted in enhance in the overall cost of production which
contain the hotel to offer competitive prices to the customers as compared to the other
companies. Apart from this, Premier Inn has to fulfil with different rules and regulations for the
security and safety of the customers who visiting at the hotel.
In the Environmental factor, There has been enhancing in the awareness with the
customer about the preservation and protection of the business environment and favours the
business that is loyal towards protecting the nature. Premier Inn is developed corporate social
responsibilities strategies with the aim of decreasing the carbon emissions as well as decrease the
waste that is generated from the hotels for attract the customers towards the business. The
business also follows the approach to the environment and is guided by energy policy and
environment policy which includes the various principles that is to be complied by the business
organisation.

The swot analysis of the premier Inn company is based on the competitive market place
and analysis the strength, weakness, threats and opportunity of the business.
The strength of the business is occupancy rate which is more than 76.3% and it is very
good in its position within the competitive market. The biggest strength of hotel is to maintain
hygiene which help in struggle with the emerging condition, as well as in company the large
number of guest were stayed in hotel for the reason of quarantine themselves. The safety and
security management help the hotel to attract the customers on the basis of clean protect, daily
cleaning regime in UK. Also, it has changed the check-in time to 3 PM that help for providing
enough time to deep clean rooms for providing the better facilities to the customers.
The weakness of the company in the pandemic, the company allow many workers for remote
working in order, but they lack sometime due to the training and development were not
conducted in effective manner which affect the productivity and profitability of the company as
well as the marketing services (Christodoulou and Cullinane, 2019). That is why it negatively
impacted on market share by declining percentage and affects the productivity and performance
of business.
Opportunities of the company have many opportunities in Covid-19 by high possible in
emerging market as well as it help to supply innovation in customer facilities by more focus on
the efficiency of digital marketing and getting better customer base. In moreover, on the basis of
digitalizations will the great opportunity for the business to expand with the help of better
technology.
Threat for company is related to entry of some international brands along with the
sustainable holding position which is well-established brands. In the condition of Covid-19 there
were high competition seen in the market in order to impact on growth and development of the
organization. Competitors like Hilton Company offer better facilities and services in order to
attract the customer towards the company as compared to competitive marketplace which affect
the revenue of Premier Inn.

REFERENCES
Books and journals
Achinas and et.al., 2019. A PESTLE analysis of biofuels energy industry in
Europe. Sustainability. 11(21). p.5981.
Bodolica, V., Spraggon, M. and Shahid, A., 2018. Strategic adaptation to environmental jolts: an
analysis of corporate resilience in the property development sector in Dubai. Middle
East Journal of Management. 5(1). pp.1-20.
Bower, J., 2018.Whitbread: Routines and resource building on the path from brewer to
retailer. Management & Organizational History. 13(1). pp.1-23.
Christodoulou, A. and Cullinane, K., 2019. Identifying the main opportunities and challenges
from the implementation of a port energy management system: A SWOT/PESTLE
analysis. Sustainability. 11(21). p.6046.
Dube, T., Van Eck, R. and Zuva, T., 2020. Review of technology adoption models and theories
to measure readiness and acceptable use of technology in a business
organization. Journal of Information Technology. 2(04). pp.207-212.
Fyfe, J., Bent, R. and Seaman, C., 2020. Business internet use in small, family owned and
managed hotels in Scotland. International Journal of Business and Globalisation. 24(2).
pp.256-274.
George, R., 2021. Tourism and Hospitality Marketing Planning. In Marketing Tourism and
Hospitality (pp. 149-182). Palgrave Macmillan, Cham.
Volodymyrivna, F.S. and Andriyich, T.S., 2019. DEVELOPMENT TRENDS OF HOTEL
CHAINS IN THE UKRAINE. ENTERPRISES IN THE MODERN BUSINESS
ENVIRONMENT .9. p.22.
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