Premier Inn: Business Organization, Internal, and External Analysis

This report provides an in-depth analysis of Premier Inn's business organization, examining its organizational structure and the internal and external factors that influence its operations. The organizational structure of Premier Inn is divided into six segments: finance, front office, food and beverages, human resources, sales, and logistics, each playing a crucial role in the company's functioning. Internal factors are analyzed using SWOT analysis, highlighting the company's strengths, weaknesses, opportunities, and threats. External factors are evaluated through PESTLE analysis, considering the political, economic, social, technological, legal, and environmental influences on Premier Inn's business environment. The report concludes by emphasizing the importance of understanding both internal and external factors for strategic decision-making and sustained success in the competitive hotel industry.

Understanding Business
Organization

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Organizational Structure of Premier Inn......................................................................................3
Analysing the internal factors of the Premier Inn........................................................................4
Analysing the business environment of the Premier Inn.............................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................1

INTRODUCTION
Business organization is an entity that is formed in order to perform the commercial
activities. There are a variety of business types preforming various types of functions for earning
profits. Sole proprietorship is owned and managed completely by a sole trader. Business
organization where two or more individuals come together and agrees to share the profit and
losses in predetermined ratio is termed as partnership firm. A separate legal entity created as an
association of shareholders in termed as corporate form of business organization. Business
organization having the aspects of both partnership and corporation is termed as limited liability
company.
There are various types forces that shapes the day to day functioning of the company.
Economic, legal, competitive, technological, social and global environment are the aspects that
affects the business activities. Whitbread Plc is British originated MNC, headquartered in
England’s Houghton Regis. The company is hotel and restaurant company. Premier Inn is the
largest division of the company currently. This report will explain the organizational structure of
the premier Inn. The external and the internal factors of the company will be analysed in this
report. The report will use SWOT and PESTLE model for analysing the impact of the internal
and external environment over the Premier Inn.
MAIN BODY
Organizational Structure of Premier Inn
In order to carry out the daily operations organizational structure is needed at the Premier
Inn. Organizational structure of Premier Inn helps it to divide the tasks that are to be performed.
The jobs for each and every department is specified and authority gets delegated with the help of
effective organizational structure (Joseph and Gaba, 2020). With the organizational structure the
job specifications are specified that results in increased level of productivity and efficiency at the
work. The organizational structure followed by Premier Inn is vertically integrated business
model (Glenk and Reichelstein, 2020). It divides the organization into six broad segments.
Finance, front office, food and beverages, human resources, sales and logistics are the six
divisions. The finance department at Premier Inn is responsible for recording the financial
transactions and preparing and interpreting the financial statements. It also deals with the
accounting and controls the cost. The front office handles all the task that relates to the customer
service. The guests are greeted at the front office of the organization. Guests register themselves

and are assigned with rooms and check out at the front office. One of the most vital department
that actually interacts with the customers. All the activities that deals with the employee
recruitment, training, promotion, discipline and attendance of the staff are concerns that matters
the human resource department (Ali and et.al., 2018). The department of food and beverages at
the Premier Inn is responsible for the dining rooms, restaurants, kitchen and the cleaning
services. Kitchen and restaurant are the two subdivisions of the food and beverages department.
Kitchen department looks after the food preparation activities and that restaurant department is
assigned with the tasks to provide dining room, waiter and clean up services (Clegg, S. and et.al.,
2019). The selling of the hotel services and facilities to the targeted market is the responsibility
of the sales department of Premier Inn. Daily supplies required for smooth functioning, purchase
of appliances and security is managed by the logistics department.
Analysing the internal factors of the Premier Inn
The analysing of the impact of internal aspects of the Premier Inn over its business
operations the SWOT analysis tool will be used. Swot is an abbreviation used for the strengths,
weaknesses, opportunities and threats. Swot analysis is an affective technique using which the
internal strengths and weaknesses of a business organization is analysed along with the external
opportunities and threats of the company that forms the structure for the current and future
activities of the company (Cherunilam, 2021).
Strengths: Hotel Premier Inn received the award for the Hotel Chain of the year at British travel
awards. More than 50000 rooms and 700+ hotels making the brand United Kingdom’s largest
brand for hotels. A premium brand of hotels with high advertisements. Deals and offers that the company offers to its customers in online bookings.
Weaknesses: Low margin earning as a result of increasing competition at global level. Accused for not refunding the amount to the customers who made bookings to stay at
some parts of Wales. Hygiene issues that the hotel face is major weakness.
Opportunities:

 Investment in the digital marketing to further increase the sales in order to counter the
competition. Enhancements in the customer experience to build the brand value.
Threats: Increasing competition from the major competitors like holiday Inn and Easy hotel. Increasing threat of legal actions being taken on the company if the responses to the trade
unions and health and safety executives are not made timely.
Analysing the business environment of the Premier Inn
In order to analysis the business environment of the Premier Inn and gain a macro picture
of the impact of external forces over the functioning of the organization PESTEL analysis model
is used. Pestle analysis is a systematic strategized tool or framework used for evaluation of the
political, economic, social, technological, legal and environmental aspects of the company (Swot
analysis of Premier Inn, 2025).
Political factors: Decrease in taxes by the government on the hotel and tourism industry
will impact the company positively and increase the sales of the company. Fear from the
presidential elections impacts the organization largely (Kularatne and et.al., 2019). Winning of
new president with different set of ideas will majorly impact the operations at Premier Inn.
Economic factors: Increase in the value of the currency paid by the foreign guest will
increase the strength of the company. Hotel industry is expected to receive increasing
investments with each passing year. This will impact the company adversely as with increasing
investment in the industry the competition in the industry will increase highly (Hamilton, L. and
Webster, P., 2018). Increase in the inflation impacts the company negatively because of increase
in prices of the supplies required by the hotels.
Social factors: Increasing trend among the society to travel impacts the company. It has
become a social obligation to travel and build the social media pages with diverse posts. This
impose the positive impact over the company and reflects in the increasing booking for the
hotels.
Technological factors: Increasing improvements in the technology requires continuous
expenditure being made in the upgradation of the technology (Baron, P., 2012). Increase in the
investments in latest technology in the kitchen increases the efficiency of the company and
positively impacts its operations. With new technology and increasing use of social networking

sites like Facebook and Instagram, it has become easier for the company to advertise and
influence the customers. Good reviews made by the customers on the websites also positively
impacts the Premier Inn.
Legal factors: location of some hotels near the high crime rates areas impacts the sales of
the hotel room booking adversely as everyone prefers to stay at safe places. Non adherence to the
innkeeper laws that are made to ensure the welfare and safety of the customers will negatively
impact the business of the Premier Inn (Dimitrić, Tomas Žiković and Arbula Blecich, 2019).
Truth in menu laws are required to be followed by every hotel industry firm. compliance to the
truth in menu laws will increase the revenue generation for Premier Inn.
Environmental factors: Reducing the waste generation by the Premier Inn and proper
disposal of the waste generated will protect the environment. Increase in the level of
environmental concerns by the customers and society impact the business operations of the
company (Premier Inn Rest Easy, 2022). High carbon emissions of the company impacts the
image of the company negatively. Increasing efforts towards the sustainability in the operations
of the Premier Inn will benefit the company in long run.
CONCLUSION
Based on the report the meaning and types of different business organizations have been
clear. The report has highlighted the importance of effective understanding of business
organization. It has been concluded that the organizational structure plays an important role in
overall functioning and structure formation of the company. How the organization structure of
the Premier Inn has been effectively divided into six major segments to support the overall
functioning of the Hotels has been described in the report.
The report has outlined the importance of organizational structure in job specification and
delegation of the authority at the Premier Inn. On the basis of the report the meaning and need
for effective analysis of business environment for an organization has been discussed.
The report has used SWOT and PESTLE analysis tools to analyse the business
environment of the Premier Inn. Strengths of the organization that can be effectively used to
capture the opportunities and counter the weaknesses in the process to minimize the impacts of
threats has been evaluated. The political, economic, social, technological, legal and
environmental factors and their impact have discussed in the report. Some factors have positive
while some have negative impacts.

REFERENCES
Books and Journals
Ali, M. and et.al., 2018. The effect of organizational structure on absorptive capacity In single
and dual learning modes. Journal of Innovation & Knowledge. 3(3). pp.108-114.
Cherunilam, F., 2021. Business environment. Himalaya Publishing House Pvt. Ltd.
Dimitrić, M., Tomas Žiković, I. and Arbula Blecich, A., 2019. Profitability determinants of hotel
companies in selected Mediterranean countries. Economic research-Ekonomska
istraživanja. 32(1). pp.1977-1993.
Glenk, G. and Reichelstein, S., 2020. Synergistic value in vertically integrated power‐to‐gas
energy systems. Production and Operations Management. 29(3). pp.526-546.
Joseph, J. and Gaba, V., 2020. Organizational structure, information processing, and decision-
making: A retrospective and road map for research. Academy of Management
Annals. 14(1). pp.267-302.
Kularatne, T. and et.al., 2019. Do environmentally sustainable practices make hotels more
efficient? A study of major hotels in Sri Lanka. Tourism Management. 71. pp.213-225.
Baron, P., 2012 Business and its Environment. 7th ed. London: Prentice Hall.
Clegg, S. and et.al., 2019. Managing and Organisations; an introduction to theory and practice.
5th ed. London: SAGE
Hamilton, L. and Webster, P., 2018. The International Business Environment. 4th ed. Oxford:
Oxford University Press.
Online
Premier Inn Rest Easy. 2022. [Online]. Available through: <
https://www.premierinn.com/gb/en/home.html >
Swot analysis of Premier Inn. 2025. [Online]. Available through: < https://howandwhat.net/swot-
analysis-premier-inn-premier-inn-swot-analysis/ >
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