Analysis of Premier Inn's Business Environment and Structure

This report provides a comprehensive analysis of the business environment and organizational structure of Premier Inn, a prominent hotel chain in the United Kingdom. The report begins with an introduction to the concept of business environment and its impact on a company's performance. It then delves into the organizational structure of Premier Inn, highlighting its tall structure and discussing its benefits and drawbacks. The core of the report involves an in-depth examination of Premier Inn's business environment, including an analysis of internal and external factors influencing its operations. The report employs SWOT and PESTLE frameworks to assess the company's strengths, weaknesses, opportunities, threats, political, economic, social, technological, legal, and environmental factors, respectively. The impact of the COVID-19 pandemic on the hospitality sector is also discussed. The report concludes by summarizing the key findings and emphasizing the importance of understanding the business environment for effective business management and strategic decision-making.

Understanding
Business Organisation

Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
Organisational structure of Premier Inn Hotel......................................................................3
Business environment analysis of Premier Inn Hotel.............................................................4
Internal and External factors which impact on Premier Inn........................................................4
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business environment may be defined as the total of different types of external factors
which has a huge impact on the performance as well as efficiency of the business in both
negative and positive way (Sołoducho-Pelc and Sulich, 2020). If the company management
understand these factors, then they are able to identify the different types of opportunities,
develops the effective strategies and enhance the whole performance of business. So, in order to
gain the competitive advantage, the management have to analyse the internal as well as external
environment. Different types of market research as well as campaigns are developed by the
business organization in order to identify these factors and asses their impact. For the following
report, Premium Inn hotel is taken into consideration which is a well-known hospitality
organisation of United Kingdom. In the year 1987 the respective company was founded by
Whitbread. The Premium Inn is being considered as the largest hotel chain of UK with over 800
hotel all across the nation and other countries. The external as well as internal analysis of the
chosen company has been covers in this report with appropriate framework along with the
organisational structure and the business environment of Premium Inn.
TASK
Organisational structure of Premier Inn Hotel
Organisational structure: - this is basically a system which is undertaken the company
management in order to outline that how the different functions of the organization is directed in
order to attain the objectives. If the structure of the business is effective then all the roles and
responsibilities are delegated to the employees of the company in a systemic manner. In addition
to this, the structure of the firm also makes sure the effective flow of information among all the
level of management.
Tall organisational structure: - tall organizational structure may be defined as that structure in
which firm has bifurcate into the different hierarchical level and in each level, managers are
appointed which are responsible for managing that particular department only (Mzembe,
Idemudia and Angel, 2021). In relation to the Premium Inn, the company is the largest hotel
chain of the UK with over 800 hotel all across the globe. So the management of the company
must have to adopt the tall organizational structure because this structure is more effective as
compared to others because of its time tested and effectiveness. In the tall organisational

structure, all the important or crucial decision related to the development of firm are taken by the
top-level executives and after taking the decision they communicate the information to the
middle manager for implementation. Long chain of command is included in this because of the
flow of information from top to bottom and workers are not allowed to give their opinion.
Benefits of tall organisational structure: - the most important benefits of the tall organisation
structure are that this contains a strong chain of command which ensure the effective flow of
information from top to bottom at the Premium Inn. All the role and duties are effectively
communicated to every level of employees which improves their productivity. In this structure
more opportunities are developed for employees in order to take promotion which motivate them
to perform effectively (Fauzi and et. al., 2021).
Drawbacks of tall business structure: - the biggest disadvantage of this organisational structure
is that there are different types of managerial level included in this which slow down the process
of communicating the information to the employees. Along with the employees are not allowed
to take part in the decision-making process which make the employees feel disconnected that
result in reducing their moral.
Business environment analysis of Premier Inn Hotel
Business environment is basically the total of all the internal as well as external factor
that influence the different functions or activities of the business (Kir and Erdogan, 2021). The
factors like workers, suppliers, government and many more has a huge impact on the
performance of the business. In relation to the Premium Inn Hotel, the management of the
company conduct the market research in order to identify the different types of information in
relation to the factors which are present inside or outside the company.
Internal and External factors which impact on Premier Inn
SWOT analysis of Premier Inn
SWOT analysis is being considered as one of the most important framework by which
organization effectively analyse that what are their strengths and what opportunities are present
in front of them which assist them to grow in the market along with the threat and weaknesses
face by them. In context to the Premium Inn hotel, the SWOT analysis has been discussed
below: -

Strengths Weaknesses
 The respective hotel has the largest
hotel chain in UK with over 800 hotel
all across the globe. Around €468
million profit is gained by the firm in
2017 (Pramanik and et. al., 2022).
 The company have a well-known image
in the market which give assistance to
them in providing welcoming
environment to its guest. The respective
company is voted as “Best UK
economy hotel brand in 2017 at British
Travel Awards.
 The global presence of the respective
hotel is limited as they provider their
services in few nation such as United
Arab Emirates, Republic of Ireland and
UK.
 Another weakness of the company is
that they have low market share along
with small margin due to the
competition. Immense competition is
faced by the company and the biggest
competitor of the firm are Easyhotel,
Holiday Inn and others.
Opportunities Threats
 As most of the companies starting
shifting their different business
activities on the digital platform. The
respective company can use these
platforms in order to attract more and
more customers which enhance the
company productivity. The firm can
also provide online booking facility to
their customers.
 Travelers around the world are usually
looking for new locations to explore
different places. This can act as an
opportunity for the respective hotel to
expand their business in other
 Due to the COVID 19 pandemic a
huge decline is seen in tourist
activities in the hospitality industry
and this act as a threat for the
Premium Inn Hotel (Al-Hasni, 2021).
The impose of lockdown and
restriction in travelling not only affect
the firm growth but also affect their
profitability.
 Huge amount of market share is cover
by the rivals of respective firm like
Ibis, Badison and others which affect
the customer base of the firm

countries and new markets.
Pestle analysis of Premier Inn
This is the most crucial marketing model that helps to evaluate different outside factors of
the hospitality sector in which the Premier Inn operates. It’s is very essential for chosen
companies to regularly assess their macro-environmental factors because of this pandemic so that
opportunities can be explore and risk can be mitigated.
 Political factors: -The brand image of the Premium Inn hotel is very strong within the
United Kingdom this assist the company management in expanding their customer’s
base. During COVID 19, the UK Government introduced a program for the hospitality
sector name as "Eat out to help". This program developed various positive opportunities
for Premium Inn hotels and ensured that all precautions were followed.
 Economic factors: -The UK's economic condition was severely affected during COVID
19 as the UK experienced a sharp reduction in the Gross Domestic Product and
employment rates (George, 2021). The decline in citizens' disposable income not only
minimized the sales but also impact the income in the hospitality industry. Economic
factors have had a significant negative impact on Premier Inn hotels, as Premier Inn
hotels must have maintained very high hotel costs. Since COVID 19, people are not able
to travel and spend their money on hotels, this result in that the profits of hotels are
decreases.
 Social factors: -After the arisen of COVID19, the hospitality industry saw dramatic
changes in customer behaviour as all safety actions were taken and people began to prefer
visiting hygienic locations only. The premium Inn hotel, keeps the area clean by
disinfectants available to guests and sanitize all the rooms after leaving and before
arrival. The staff of hotel wear masks, gloves and follow all rules in proper way. The firm
also provides guests with high quality food with general requirements
 Technological factors: -Digitization has created a variety of opportunities for enterprises
to upgrade their technology and move to digital platforms for greater efficiency (Boiko,
and et. al., 2021). The implementation of various technology devices like robotic room
service, digital payment transactions and digital supply chains in relation to Premium Inn

has positive impact. These technological advances will help the management to improve
the growth of the hotel and the image in marketplace.
 Legal factors: -Legal guidelines play a very significant role in the UK hospitality
industry. Premium Inn hotel must comply with all food safety laws, privacy laws, data
protection regulations, etc. In relation to the respective hotel, management of the firm
follow the equity law. The hotel also needs to follow food and safety standards to avoid
future legal issues.
 Environmental factors: -Environmental factors are considered to be a major aspect in
the UK hospitality industry. The government of the nation give notice to the respective
industry to decrease its effect on environment by minimizing carbon emissions. The
Premier Inn has its own greenery and sustainability in its activities.
CONCLUSION
From the above report it has been concluded that in order to perform all the functions
effectively the companies must have to follow effective organizational structure. Managing the
responsibilities of each worker in the organization helps them to increase their productivity,
improve their skills and achieve their desired organizational goals. Companies that use SWOT
analysis can identify areas of strength and weakness. This allows the company to take advantage
of opportunities and mitigate risk. By performing a PESTLE analysis, the organization was able
to recognize macroenvironmental elements that has an impact on business operations. This report
also concluded that COVID 19 has a significant impact on both internal and external factors
affecting the hospitality sector.

REFERENCES
Books and Journals
Sołoducho-Pelc, L. and Sulich, A., 2020. Between sustainable and temporary competitive
advantages in the unstable business environment. Sustainability, 12(21), p.8832.
Mzembe, A.N., Idemudia, U. and Angel, M.E., 2021. Sustainability led innovations in the
hospitality industry: A case study of the adoption of the Green Key Scheme standards in the
Netherlands. Journal of Cleaner Production, 291, p.125210.
Fauzi, T and et. al., 2021. The effect of internal elements of strategic management of
organizational structure, management role and employee behavior on corporate
mission. Management science letters, 11(4), pp.1189-1196.
Kir, H. and Erdogan, N., 2021. A knowledge-intensive adaptive business process management
framework. Information Systems, 95, p.101639.
Pramanik, P.D and et. al., 2022. The potentials of homestay development: A SWOT analysis
from a case study. In Current Issues in Tourism, Gastronomy, and Tourist Destination
Research (pp. 351-358). Routledge.
Al-Hasni, Z.S., 2021. Tourism, Hospitality and COVID-19: Business Challenges and
Transformations; the Case of Destination and Resort Planning, Development, and Policy
Framework. Journal of Intercultural Management, 13(3), pp.109-131.
George, R., 2021. The Tourism and Hospitality Marketing Environment. In Marketing Tourism
and Hospitality (pp. 183-219). Palgrave Macmillan, Cham.
Boiko, V and et. al., 2021. Development of Culinary Tourism in European
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