Premier Inn: Analysis of Organisation Structure & Business Impact

This report provides an analysis of Premier Inn's business organization, focusing on its organizational structure and the internal and external factors impacting its operations. It begins by describing Premier Inn as a UK-based hospitality organization with a tall organizational structure, highlighting the advantages such as distributed roles, specialization, and promotion opportunities, as well as disadvantages like inflexibility and low job satisfaction. The report then delves into the business environment using SWOT and PESTEL analyses. The SWOT analysis identifies strengths like high occupancy rates and a strong presence in the UK market, weaknesses such as limited international presence and refund issues, opportunities including upmarket room design and market expansion, and threats like increasing competition and legal risks. The PESTEL analysis examines political, economic, social, technological, environmental, and legal factors, detailing their impact on Premier Inn's business, from the effects of the COVID-19 pandemic to technological advancements and environmental awareness. The report concludes by emphasizing the importance of understanding these factors for developing effective business strategies.

Understanding
business organisation

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
Organisation structure of Premier Inn ........................................................................................3
Business environment.................................................................................................................4
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
Business organisation can be described as an entity that is develop for purpose of carry out
different commercial activities in business. It is an organisation that can be govern by contracts,
incorporation, exchange as well as property rights (Osafo, 2022). There are different factors
present in an environment like internal factors and external factors which create impact over
organisation. This project report includes analysation of Premier Inn which is a UK based
organisation that was a identified by whitbread Plc. It is one of largest hotel chain that has
around 800 hotels in all over UK. It was identified in the year 1987 in UK and is also one of
largest hospitality organisation in UK. it is one of organisation that provide its service in
different country like United Kingdom, Qatar, Germany, Republic of Ireland and others. This
project report includes explanation of organisation structure of Premier Inn. It also consist
explanation of different internal and external factors which create impact over business as a
result of emerging situations.
TASK
Organisation structure of Premier Inn
Tall organisation structure can be described as organised structure that consist different level of
hierarchy and also has long chain of command. It is one of organisational structure where
standard of leadership are vertical and also most power members of company is Ceo and owner.
CEO of company is one who develop goals, strategies for business, culture of company and other
things. In this CEO of company can communicate their expectation and wants to the managers as
well as supervisors and then these people implement it over employees (Hou and Jafari, 2020).
It is one of organisation structure who consist many employees. It consist hierarchy at workplace
that will improve efficiency at workplace. There are numbers of department in an organisation
who has team leaders and also employees in lower level of hierarchy There are different
advantage of using this structure in business of Premier Inn which are mentioned below:
Distributed roles: it is one of organisation structure which has roles in distributed manner and
also it consist different managerial layers. It helps to specialise different authorities and roles in
business which helps to decrease burden of decision making over senior management of firm.

More specialisation: It is also an organisation structure which helps business for purpose of
having specific job description for a specific position. It help business of Premier inn to take
advantage of specialisation as it make employees more efficient.
More promotion opportunities: On basis of adoption of this organisation structure, an
individual can have different opportunities in organisation for purpose getting promotion. It
provide opportunity to business to develop high career opportunity and also to be more
motivated (Zhou, Luo and Li, 2018). It make career path of business more easier as it is easier
for firm to provide training and development opportunities to business.
There are also various disadvantage to adopting this organisation structure in business of
premier inn. some of these advantage in context of Premier Inn is mentioned below:
Less flexibility: It is one of organisation structure that offer less flexibility as it consist too many
layers of management. It make it difficult for organisation to implement change and also to make
decision in situation where lack of time available for business (Hajizadeh, 2019).
Low job satisfaction: It is also an organisation structure that results in low job satisfaction as
manages are too close to subordinates. In this structure, sometimes managers does not provide
employees and also strictly monitor them.
Business environment
Business environment can be described as sum of internal as well as external factors in business
that consist needs of customers, employees, demand and supply, client, government regulation,
social trends, changes in economies and other factors. These factors create impact over
functioning of company and also over situation of business.
SWOT analysis:
Strength Weakness
 Occupancy rate in Premier Inn is high
that allow business to develop strong
position in industry. Occupancy rate of
premier Inn is around 76.3%.
 Premier Inn has strong present in
market as it has around 800 hotels in
UK.
 Premier Inn also has limited present in
global environment as it is operating in
limited number of countries.
 Premier Inn is also facing some refund
issues with customers as some of
customers who has book their room
demand refund in lockdown but

 There is stability in political
environment of UK that provide
opportunity for business of Premier Inn
(de Sousa and Castañeda-Ayarza,
2022).
company refuse to do that that make
customers unhappy.
 Premier Inn is also facing issues related
to hygiene as staff of company is using
same guest towel for cleaning for guest.
Opportunities Threat
 Premier Inn has some hotel that needs
upmarket design of rooms and also
décor that provide opportunity for
business and also improve experience
of guest.
 Premier Inn also has opportunity to
expand business in new market that
allow business for purpose of getting
market. Business can entire in market
of Germany, republic of Ireland and
other places.
 There is increasing competition in
market in hospitality industry. These
competitors includes Holiday Inn, Ibis,
Easy hotel that create competition for
business. Company is also facing
competition from Marriott Hotels as it
is one of strong competitors of
business.
 Managers of Premier Inn is also facing
legal threat in business. It create legal
risk in market for business in which
actions are to be taken from health and
safety executives.
PESTEL analysis
Political factors Economic factors
 Due to covid-19 pandemic government
of UK has made changes in their rules
and regulation and put restriction over
travelling activities that create negative
impact over business of Premier Inn.
 In order to overcome of impact of
pandemic, government is also
 Pandemic create recession in economic
situation of UK. It results in reduction
in purchasing power of people that does
not allow them to spend money for tour
and travelling activities.
 UK is the developed country which has
high level of education. It provide

providing support to business specially
to Hospitality industry in order to helps
them to overcome of loss. It provide
opportunity for business of premier Inn.
opportunity for business of Premier Inn
to have skilled and talent employees in
their organisation (Nurmi and Niemelä,
2018).
Social factors Technological factors
 People of UK has habit of spending
money over travel and tourism activity
that provide opportunity for business of
Premier Inn in order to attract number
of tourist in their business.
 There is increasing health awareness
among people of UK which create
threat for Business of Premier Inn as
due to this firm needs to add extra
precautions in their organisation to
protect people from disease. It also
increase total cost of company (Teoli,
Sanvictores and An, 2019).
 It is one of factor that is linked with
advancement and upgradation of
technology. It is important for business
of Premier Inn to get opportunity in
business as these technology are used
by firm to enhance experience of
customers. On basis of this technology,
managers of premier Inn can don
reservation of room from app, offer
different modes of payment and other
things.
 Increasing use of technology also create
threat for business for security as
hackers can hack personal information
of business and third party people can
take advantage of it.
Environmental factors Legal Factors
 There is increasing environment
awareness in people of UK. It provide
opportunity for business of premier Inn
as they are contributing positively for
environment that allow them to develop
positive image of company in minds of
customer.
 Different types of laws and legislation
are there which is to be adopted by
firm. It will increase cost of company
that will create negative impact over
profitability of company.
 Adoption of laws and legislation also
provide opportunity for business of
Premier Inn in order to build positive

 Contribution of Premier Inn for
environment development will increase
cost of company.
image of company in minds of
customers.
CONCLUSION
From above mentioned project report, it can be concluded that business is one of important
activities that offer different commercial activities in business. It is operating in environment
which is known as business environment. There are different factors present in business
environment which create negative impact over operation of business. Some of factors that create
impact over business consist internal factors and external factors. Internal factor are present in
business and organisation has proper control over these factors. It consist employees, suppliers,
process and operation of firm. There are also some external factors which are present outside
business that also create serious impact over business. Some of these factors including in this
analysis including regulation of government, advancement in technology, economic situation and
others. It is important for business to identify these factors in order to overcome of negative
impact by developing timely strategy for business.

REFERENCES
Books and Journals
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Hajizadeh, Y., 2019. Machine learning in oil and gas; a SWOT analysis approach. Journal of
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Teoli, D., Sanvictores, T. and An, J., 2019. SWOT analysis.
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