Premier Inn: Analyzing Business Structure, Environment, SWOT & PESTLE

This report provides an in-depth analysis of Premier Inn's business organisation and environment. It begins by outlining the company's organisational structure, identifying it as a tall structure with a clear hierarchy. The report then delves into a business environment analysis, considering both internal and external factors affecting the company. A SWOT analysis highlights Premier Inn's strengths, weaknesses, opportunities, and threats, focusing on its strong brand image, limited global presence, potential for expansion, and vulnerability to future pandemics. Furthermore, a PESTLE analysis examines the political, economic, social, technological, legal, and environmental factors influencing Premier Inn's operations, including the impact of COVID-19, technological advancements, and environmental responsibilities. The report concludes that a well-defined organisational structure and a thorough understanding of the business environment are crucial for Premier Inn's continued success and profitability, emphasizing the importance of adapting to changing market conditions and consumer behaviors.

UNDERSTANDING
BUSINESS
ORGANISATION

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK ..............................................................................................................................................3
ORGANISATIONAL STRUCTURE ........................................................................................3
BUSINESS ENVIRONMENT ANALYSIS...............................................................................4
SWOT ANALYSIS ON PREMIER INN ..................................................................................4
PESTLE ANALYSIS ON PREMIER INN ................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES:...............................................................................................................................7

INTRODUCTION
A business organisation is basically formed to complete the purposes like satisfying
customers neds and earning profits. The term business organisation describers how a firm is
designed and how they achieve their goals. If a organisation is made for generating the profits
then it is known as profit organisation and if a firm is made for the welfare of the society then it
is known as the non profit organisation. There are various kinds of organisations like sole
proprietorship, partnership, and many more. In context to this, hotel premier inn which is the
UK's largest hotel brand which was founded in 1987 and established by whitbread. The hotel
have different branches in the different locations like airports, suburbs etc. premier inn have
around 800 hotels which serves in UK, UAE, Ireland, Germany and many more countries. In this
respective report it has been discussed that what is the business structure of premier inn and what
is the business environment. Then, there is a swot analysis on the premier inn to analyse their
strong as well weak point and about their risks and opportunity factors. After that, there is a
pestle report on all the external factors of premier inn hotel. (Young,1987)
TASK
ORGANISATIONAL STRUCTURE
Organisational structure – it is an alignment and flow of work of all the managerial operations
of the firm and how the activities are delegated in the firm among the employees on the basis of
their specialisation . A specified structure helps the employees to know about their role and
responsibilities and enables them to work together and achieve the organisation's goal. The
traditional structures are more formalized whereas the less traditional structures are more
flexible. If the company have a well organised structure then it will increase their efficiency and
productivity. (Ashton, 2004)

Tall organisation structure – it is a structure where the organisation have a proper partition of
hierarchy. There are many managers who have a specific role in the firm. They controls and
guide a particular department that they have got assigned for. Tall structure is very complex in
nature so the firm is not able to adapt the trends easily. The advantage of having a tall
organisation structure in the firm is that the subordinates are under supervision of the managers
which helps them to improve their work. As well as there is more specialisation in the work
because the activities are delegated according to it. In order to this, hotel premier inn also
implemented the tall organisational structured in the company as it is the UK's largest hotel
chain which operates worldwide. There are 10 board of directors in the company who operates a
particular department. All the major decisions are taken by the top level management. There are
also some drawbacks of the tall structure like the communication process have slowed down
because of the many managerial layers which resulted into the slow decision making process. In
relation to this, premier inn also have slow decision-making because of numerous layer of
management. (Kono and Clegg, 2001)
BUSINESS ENVIRONMENT ANALYSIS
Business environment refers to all the external factors like government, competitors etc.
which affects the firm and internal factors which controls the performance and productivity of
the company. In relation to this, premier inn have a large number of competitors in the market,
but also they have good internal factors as well as employees. (Cherunilam, 2021)
SWOT ANALYSIS ON PREMIER INN
Strength
strong image – premier inn have about 800 hotels in UK and many other in different
countries . It have a good presence in few countries and serve almost 5 million customers per
month. After serving for so long premier inn have build up a strong brand image in the society. It
has also been awarded as the best UK economy hotel brand , named as the best budget hotel and
also won the trip-advisor travellers choice awards in 2019.
weakness
limited global presence – as compared to other hotel chains, like holiday inn, ibis etc.,
premier inn have limited global; presence as it only serves in few countries like UK, UAE,

Ireland, Germany and other few countries. Because of the other competitors, they have very low
market shares and decreasing their probability . If it expands its business in some other countries
as well then they can a good profit margin. (Teoli and Sanvictores, 2019)
threat –
future pandemic - as in 2019, corona virus hit the whole world and the lock-downs were
imposed all over the world. Many businesses have came to an end because of the pandemic and
premier inn was also effected as well. They have suffered with great losses. The pandemic is still
not finished yet and the similar situations can occur in near future. They need to take this threat
seriously and take actions to survive it in future.
Opportunity
expansion – over the experience of the years, the company is now expert in managing the
firm. They have the opportunity to grow and expand there business in various countries to earn
more profit as they opened in Dubai. They have a well known brand image so not only in hotel
industry but they can expand their business in travel and restaurants line too. (Ghandour, Bilal
and Mudassar, 2015 )
PESTLE ANALYSIS ON PREMIER INN
Political – the biggest success area of economic development in UK is hospitality sector.
Hospitality is the 5th largest industry in UK. Premier inn have the plus point to expand their
business lines as there is the high demand for hospitality sector. Another factor is that if any
political party have imposed the travel ban in case of any pandemic like covid-19, then it will
affect the firm.
Economic – the hit of pandemic has increased the inflation rate, health and hygiene awareness,
and unemployment rate and decline in GDP rate. People started avoiding staying outside as
much as they can because if the pandemic and many people have also lost their jobs so there
have less disposable income to spend on hotels and cut out all the necessary expenses.
Social – the covid 19 have effected the customers and their behaviour. people started focusing on
hygiene and prefer only going at the places which are cleaned. Premier inn have maintained a
good hygiene in the hotels. Every room gets sanitized for the new customer. They have also
taken care of all the safety measures like it is mandatory to put masks and gloves for all the
employees as well as the customers also.(HeGo, 2018)

Technological – now a days the world have been shifted digitally. Premier inn have designed
the easy website for the customers so that they can easily have the access. They have also
launched some apps which are mobile friendly and can easily be operated in androids as well as
ios. They also provide the free Wi-Fi access to the customers for 30 mins per day after that its
charged
Legal – changes in the environment can majorly affect premier inn. The tax law like increment
in VAT from 17.5% to 20% resulted in less disposable income and the middle class people will
search for cheaper accommodations according to their budget. Apart from this there are many
other laws regarding food, health and security, data protection. Which company should follow to
avoid any legal actions in future.
Environmental – to be known as the best social responsible company, to maintain a good brand
image as well as a fixed customer base, premier inn should reduce all the activities which are
causing harm to the environment like they should have cut down on paper, use energy saving
light bulbs to prevent global warming, and to reduce the water flow they should use water
efficient showers. They have already a green environment and reduced the carbon footprint.
(Bowie and et. Al, 2016)
CONCLUSION
The respective report concluded that implementing an accurate organisation structure is
important to have a smooth business operations and increased productivity and profitability. The
chosen company premier inn have implemented a tall structure in the organisation which helps
them to have a supervised work. It is important to study the business environment both internally
and externally to make the further strategies. Then the report concludes swot analysis on hotel
premier inn which described that they have a strong brand image which is their strong point.
premier inn have limited global presence and they should take the future pandemics as a
challenging threat and more global expansion as a opportunity to grow the business as well as
revenue margin. After that the report have a brief study on pestle factors of the company which
described that covid 19 has effected the firm in many factors like if any political party imposed a
travel ban then the hotel will not able to operate, it has changed the consumers behaviours. The
declined GDP has resulted in less disposable income to spend and because of this people prefer
cheaper accommodations. They have also designed their own websites and apps which is easily

accessible for customers. And lastly, Premier inn have taken the initiative to reduce carbon
footprints.
REFERENCES:
Books and Journals
Young, R., 1987. Business Organisation. In Work Out Economics GCSE (pp. 48-59). Palgrave,
London.
Ashton, D.N., 2004. The impact of organisational structure and practices on learning in the
workplace. International journal of training and development, 8(1), pp.43-53.
Kono, T. and Clegg, S., 2001. Organisational Structure and Processes. Trends in Japanese
Management, pp.219-250.
Cherunilam, F., 2021. Business environment. Himalaya Publishing House Pvt. Ltd.
Teoli, D., Sanvictores, T. and An, J., 2019. SWOT analysis.
HeGo, B.,2018. PESTLE Analysis.
Ghandour, R., Bilal, J. and Mudassar, H., 2015. Relationship between Service Quality, Customer
Retention and the role of Social Media-Case study Premier Inn Hotel (UK). Journal of
Organizational Studies and Innovation, 2(4), pp.1-12.
Bowie, D., Buttle, F., Brookes, M. and Mariussen, A., 2016. Hospitality marketing. Routledge.s