Analysing Premier Inn's Business Organisation: A Strategic Report

This report provides a comprehensive analysis of Premier Inn, a UK-based hospitality organisation, focusing on its organisational structure and business environment. It examines the company's tall organisational structure and its effectiveness in enhancing efficiency and competitiveness. The report includes a SWOT analysis, identifying Premier Inn's strengths, weaknesses, opportunities, and threats, as well as a PESTLE analysis, evaluating the political, economic, social, technological, legal, and environmental factors impacting the business. The analysis aims to provide insights into Premier Inn's strategic management and its ability to gain a competitive advantage in the marketplace, especially in light of challenges such as the COVID-19 pandemic.

Understanding
business organisations

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
Organisation structure of Premier Inn.........................................................................................3
Business environment analysis of Premier Inn to gain competitive advantage..........................4
SWOT analysis of Premier Inn hotel..........................................................................................4
PESTLE analysis of Premier Inn hotel.......................................................................................5
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business is considered as an economic activity which is helpful in providing profit to the
owner. In the business and corporate world the organisations play a crucial role by developing
effective business for general public (Smirnova, 2019). The business organisation's are separate
legal entities which are started by two or more owners for providing effective products and
services. This report includes example of Premier Inn and it is a United Kingdom based
hospitality organisation. This organisation was founded in 1987 by Whitbread and includes
72000 rooms and 800 hotels. This project report includes a brief overview and analysis of
Premier Inn Hotel. It also includes internal and external factors which create impact on business
due to Covid-19 situation.
TASK
Organisation structure of Premier Inn
In the functioning of a business organisation the organisation structure plays a
main role by defining various functions of the organisation. The hierarchy of management play
an important role in developing roles and responsibilities of the employees. Premier Inn hotel
also choose best structure in order to carry out different organisational activities and functions. In
the era of stiff competition between companies it is compulsory for an organisation to develop
and select an appropriate structure for long term survival of the hotel:
Types of organisational structure
In the corporate world organisational structure play a very crucial role which is also
effective in developing a professional business approach at the marketplace. The business
organisation's structure is the mechanism under which a company performs business operations.
In the functioning of a business entity there are two types of organisational structure which are
mentioned below:
 Tall structure: The tall structure of a business organisation is related to the
system of maintaining small number of employees with a manager. In this type of
business structure the manager of the business entity is responsible to the top level
management.

 Flat structure: In an organisation the flat structure provides autonomous power
and responsibilities to the employees. In case of this structure, the autonomous
power is in the hands of employees which leads to introduction of risk.
Premier inn hotel develops and follow tall organisational structure which is effective in
increasing efficiency and effectiveness of the organisation at the marketplace. The hotel follow
organisational structure in order to compete at the marketplace and develop a responsible and
ethical business (Maréchaux, 2020). In the recent times the importance of tall organisational
structure is increasing day by day which impacts the main business activities and functions. It is
important for the management of Premier Inn hotel to include and develop tall organisational
structure for the development of business in a short period of time.
Business environment analysis of Premier Inn to gain competitive advantage
It is important for the strategic management to analyse the competitive external and
internal business environment. The macro environment is the surrounding of a business which
impacts on the business operations and activities. Premier Inn hotel develops the best business
strategy which is helpful in attracting large number of customers from the marketplace. In the
competitive business environment it is the utmost priority of a business to develop a perfect
competitive strategy.
SWOT analysis of Premier Inn hotel
The SWOT analysis is an important technique to analyse internal environment of the
company using a typical approach (Kohe, 2021). Most of the successful companies at the
marketplace use SWOT analysis for development of the business in a precise manner. The
SWOT analysis of premier Inn hotel is mentioned:
Strength Weakness
 Staff management of the hotel premier
Inn is a major strength of a business
organisation which is helpful in
coordination and communication
between team members (Ahmad,
2019).
 Premier Inn has a poor hygiene facility
that is unable to provide effective food
services to various consumers that joins
the hotel in a specific time frame.
 The hotel should expand in market with
a creative perspective in order to

 Location advantage is the major
advantage or strength which is
available for premier Inn.
develop best approach apart from the
weaknesses.
Opportunity Threat
 The main opportunity available to hotel
premier Inn is to expand operations in
the current market.
 The development of business
operations in international market is
also available to the hotel.
 The Easy hotel, Holiday inn, Ibis and
many more are the main competitors of
the hotel which makes the survival of
the hotel very tough.
 Research and development department
of the hotel is incompetent which is a
major threat to the hotel.
PESTLE analysis of Premier Inn hotel
The PESTLE analysis is an important part of Premier Inn hotel which is helps in
conducting external environment analysis of the hotel. The hotel is also developed enough to
perform in market with best and effective ways in order to earn revenue and growth at the
marketplace (Demaj, 2021). It is very much necessary for an organisation to conduct PESTLE
analysis in order to develop competency edge. The PESTLE analysis of Premier Inn hotel is
mentioned below:
 Political factors- The political factors play a crucial role in development of a business
and they also help a company to grow at the marketplace. Political factors are developed
by government in the form of rules and regulations of the company. It is major
responsibility of a business to take into consideration political factors into account for
overall development of the business. The political factors are determined by the stability
or instability of the government in the country. Premier Inn hotel has the best strategic
management which is essential for development of the business organisation.
 Economical factors- In the competitive world it is the duty of an organisation to analyse
the main economic factors for the growth and development of business entity. These
factors are mainly related to gross domestic product and national income of a country.
The economic factors are mainly related to monetary policy of the country and in many

countries where Premier Inn hotel performs its operations monetary policy is in favour of
the company. It is important for a business organisation to keep in mind all the major
considerations for the growth and development of the business.
 Social factors- The social factors are concerned with the tendency and perception of the
society towards business organisation. The culture of an organisation is mainly dependent
on various social factors that are present in the social environment. Most of the successful
business organisations at the marketplace mainly take assistance of social factors that are
important in competitive world.
 Technological factors- It is essential for an organisation to develop and take assistance
of advanced computer systems and software in various operations. In the functioning of
an organisation there are various technological factors which are essential in development
of the business. It is essential for a business organisation to take assistance from various
technological factors in order to develop a business. Information and technology is the
main component that is used by many successful business organisations in order to
compete at the marketplace (Beynon-Davies, 2021). The Premier Inn hotel also maintains
customer relationship management with the help of information and technology to attract
large number of customers from the marketplace.
 Legal factors- The legal factors are related to rules and regulations which are formulated
by the government and local authorities. It is important for a business organisation to
follow all the legal factors that are essential in development of the business. The ethical
practices in the business world determine conducting an effective business at the
marketplace. It is essential for a business organisation to follow all the rules and
regulations which are meant for the business organisations to avoid penalties and fines. It
is important for an organisation to follow various rules and regulations which are
formulated by government to lead the marketplace (Aldous. 2018). Premier Inn hotel
always follow best and ethical practices and also follows various acts, laws that are
effective in formulating a precise business policies.

CONCLUSION
From the above stated report it can be concluded that it is important to understand the
business structure of an organisation for fast development. The above stated report concludes
that in the functioning of a business organisation it is important to perform external and internal
environment analysis for the development of business. This report concludes that it is important
for an organisation to develop a systematic approach at the marketplace in order to survive
successfully. The PESTLE analysis is an important approach which is important for a business to
analyse the internal and external environment. This report also concludes that strategic
management helps a business to develop and formulate effective strategy which is essential for
business growth.

REFERENCES
Books and Journals
Ahmad, M.U. and Murray, J., 2019. Understanding the connect between digitalisation,
sustainability and performance of an organisation. International Journal of Business
Excellence, 17(1), pp.83-96.
Aldous, M., 2018. Business ownership and organisation. In An economist’s guide to economic
history (pp. 167-174). Palgrave Macmillan, Cham.
Beynon-Davies, P., 2021. Investigating Domains of Organisation. In Business Analysis and
Design (pp. 89-104). Palgrave Macmillan, Cham.
Demaj, E., 2021. Learning organisation understanding in HEIs and the impact of learning
organisation on knowledge performance: an empirical case study. International Journal of
Learning and Change, 13(2), pp.124-147.
Kohe, G.Z., Purdy, L.G. and Litou, A., 2021. An examination of para-sport organisation
approaches in France. Developing and Supporting Athlete Wellbeing: Person First, Athlete
Second.
Maréchaux, B., 2020. Business organisation in the Mediterranean Sea: Genoese galley
entrepreneurs in the service of the Spanish Empire (late sixteenth and early seventeenth
centuries). Business History, pp.1-32.
Smirnova, L.S., 2019. Economic effects of the implementation in the company of the innovative
models of management based on the stakeholder approach and network forms of the business
organisation. International Journal of Nuclear Governance, Economy and Ecology, 4(4), pp.273-
287.