MGBBT0UBN Case Study: Analyzing Travelodge's Business & Environment

This case study provides an in-depth analysis of Travelodge's organizational structure and its business environment. It examines the company's tall organizational structure, highlighting the benefits of control, coordination, and clear responsibilities. The analysis uses SWOT to evaluate Travelodge's internal strengths and weaknesses, as well as external opportunities and threats, such as competition from hostels and the demand for healthy environments. Furthermore, a PESTLE analysis explores the political, economic, social, technological, legal, and environmental factors impacting Travelodge, including the effects of COVID-19, economic conditions, social trends, technological advancements, legal obligations, and climatic conditions. The study concludes that continuous analysis and adaptation are crucial for Travelodge to maintain its competitive edge and address its weaknesses in a dynamic business environment, emphasizing the importance of leveraging strengths and mitigating threats.

Understanding Business
Organisation

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Organisational Structure .............................................................................................................3
......................................................................................................................................................4
Business Environment Analysis..................................................................................................4
CONCLUSION................................................................................................................................6
REFERENCES ...............................................................................................................................7

INTRODUCTION
Organisation structure in the framework through which work flows in the organisation as
it defines the authorities and responsibilities of the personnel’s in the organisation creating
reporting relationship. Business environment are the factors which indirectly affects the business
but management have no control over it. SWOT is the tool of management that help to evaluate
internal strengths and weakness and opportunity and treat from outside world, PESTLE is
another management tool which help to analysis businesses environment outside the business
organisation. All this help us in better understanding of business organisation. In this report the
following matters are taken into considerations, organisation structure analysis of the Travelodge
company and evaluation of business environment through SWOT and PESTLE. Analysis of the
Travelodge for internal environment is observed with the help of SWOT analysis and external
with the PESTLE analysis. Travelodge became the first value hotel brand when lunched in UK.
Now it is the UK's largest independent hotel brand with more than 590 hotels and 40,000 guest
bedroom across the UK, Ireland and Spain. Company is ideal for the traveller as they have bars,
cafe restaurant facilities in house or placed near the restaurant, cafe or bars (Mukelabai,
Wijayantha and Blanchard, 2022).
MAIN BODY
Organisational Structure
Organisation stricture is a framework which is created by the association of group means organisation to
facilitates the proper functioning of the organisation. These can be divided into two tall or flat
organisation structures.
Tall organisation structure or hierarchical structure: - An organisation structure in which members
are arranged in levels in a hierarchical way, the low level have low power of decision making, they need
to report to the medium level which have more power in comparison to low level and they have to report
to top management of the organisation (Vojvoda, 2018). Top level enjoys most of the decision making
power. The flow of communication flow from top to bottom or vice versa. Long channels of
communication reduce the flow of information in the organisation.
Flat or horizontal organisational structure :- The structure in which the employees are arranged in one
level only such organisation have head level and under which all the subordinates as small organisation

can be efficiently controlled by the flat structure as all the employees directly report to top level, small
chain of commination help in fast transmission of the information.
In case of Travelodge company, follows tall organisation structure because the scale of operation
is huge it make management unable to control directly the operation of every single employee, all the
hotels are divided in division according to the location they are situated (Widodo, and et.al., 2020).
CEO is the top of the top level of management of travelodge company then have divisional head
according to the location of the organisations. Under them functional head and employees team all report
to the upper level management. By adopting this structure company is benefited as proper control over
operation, management have time to focus on critical matter, providing every personnel with certain level
of responsibilities and authorities which speed up the decision process, great co-ordination is established
due to departmental structure.
Business Environment Analysis
Business Environment is the collection of internal and external factors of the organisation that includes
employees, leaders, stakeholder, banks, consumer and society in totality all these factor affects the
business of the company to great extent (Soegoto, 2021). So analysis of business environment in very
necessary as management plans accordingly to exploits the strengths and opportunities, overcome
weakness and threats from the business environment.
SWOT Analysis – SWOT stand for internal and external factor which play considerably evident role in
the success of the organisation so evaluating the business environment condition is very important for the
decision making process (Soroka and Zasluzhena, 2021). For the observation the Travelodge company
is considered. So understanding can be built about the internal and external influence on the success of
organisation.
Strength
Large number of hotel for all target market:- As
Travelodge is the UK's biggest chain of hotel
provide hotels for every range of customers.
Equipped with all facilitates including cafe and
restaurant :- As hotel have only staying facilitates
but Travelodge provide with the bars, cafes and
other eating facilities.
Weaknesses
Does not provide equal facilitates in all variety:-
As company provide variety of ranges doesn't have
same kind of services for all facilities which give
bad impression to new costumer as most try the
starting range of hotels.
Overload on the facilitates:- As it is popular
brand most of the locals use them on peeks the
booking is overdone and they unable to provide
places.

Opportunities
Follow Trends to promote
business :- Due to cities development
and population people prefer locations
which have green incorporated in them.
Public demand for healthy clear
environment to hang out with family and
friends. Travelodge can provide same in
the hotels to improve sales.
Adventure Activities:- As now a days
people have busy schedule so to attract
them adventure sports can be very good
idea to increase consumer base
(Sołoducho-Pelc and Sulich, 2020). It
provide competitive edge to the hotel
from other competitor.
Threats
Cheaper hostel:- As hostel are easily
and cheaply available on the travelling
place provide good quality food proving
to be the great competitor. As sharing is
allowed in hostel so the costing became
very low.
International presence:- As company
is focused on indigenous consumers.
They have problems attracting
customers familiar with other
international brands.
PESTLE Analysis - The PESTLE analysis is the tool of management which help to
track the opportunity or threat which are not in direct control of management, so
company alter their strategies according to the business environment to increase
profit to the maximum level in minimum cost.
Political Factors:- Are the factors which dependent on the political environment
such as the stable governance as the manifesto of parties support the business or
create obstacle in operations as their interest is in the interest of the country
(Tsvirko, 2021). So at time of Covid travel and movement is discouraged by the
governance, Taxes are increased to contain people from fast movement with
country and outside. As political agenda is changed from tourism economy to safe
living environment as COVID created concern in mind of people affecting the sales
and booking of the hotels.
Economic Factors:- Are related to the economy of the business environment
including exchange rate, economic growth, globalisation, inflation, interest rate,
spending power of consumer. In case of Travelodge high living standard help the

business to grow as people with excess cash invest of tour and travel So recession
and inflation negativity effect the growth of travel organisation.
Social Factors:- Social includes all the preference, belief, customs and human
acceptation towards the services of the company (Koo, Mendes-Filho and Buhalis,
2019). As UK is mostly Christian density so travel to the religious places of Christian
religion is a trend services related to that sector get supports from local. As
alcohols are mandatory for the celebration so hotel need to have advance stocks of
the beverage as it will be turn off for customer if not available.
Technological Factors:- As these consist of all the technical instruments used by
the business in operation, production, distribution, marketing and sales (Chibili,
2019). These help in increasing the efficiency of the business as online rendering of
the services take a boost when offices get shut down so hotel start operating their
own websites and listed of other sites create conflicts such as double booking.
Legal Factors:- Countries have some legality that are imposed to the business
need to be followed in order to operate business with out government interventions.
So in the travel and hospitality sector need to have proper food licence to able to
see eatable and all the property need to be registered as commercial, These rule
decrease the profit margin in the company deal in hospitality sectors.
Environmental Factors:-. As Travelodge is a travel company having mostly
affected with climatic conditions. For example most hotel place near the most
visited places have more inflow of customer than that of normal locations. For
example hostel suited on to the beaches have more customer than that of far
hotels.
CONCLUSION
From the above project these conclusion can be drawn that no one can foster in an
unplanned business operations as business organisation operates in dynamic environment so
changes induces every second so regular analysis needed to observe related change that can
damage the existing consumer base or in operations of business. The expertise of business need
to be marketed and lacking factors need to be adjusted so that no other player will be benefited
from the weakness (Dani, Tiwari and Negi, 2021). These tools make management aware
about the opportunity that organisation can exploit in favour of the business and treats can be

avoid through the defensive majors. In case of Travelodge their strength is scales of operation
as they are the largest owner of the chain of hotel in United kingdom. As company provide best
quality of the food supply to the customers so acts as competitive edges. Company faces shortage
of assets so over loads on existing facilities in peak times. Differential services hurt the feel of
the customer as why other brand providing or high end service not included in cheaper packages.
Travelodge is mostly influenced by the legal and environmental as it is a hospitality business ,
company need to abide by legal obligations and environmental condition as travel get affected
with climates.

REFERENCES
Books and Journals
Chibili, M.N., 2019. Rating Systems and the Structure of the Hospitality Industry. In Modern
Hotel Operations Management (pp. 48-91). Routledge.
Dani, R., Tiwari, K. and Negi, P., 2021. Ecological approach towards sustainability in hotel
industry. Materials Today: Proceedings, 46, pp.10439-10442.
Koo, C., Mendes-Filho, L. and Buhalis, D., 2019. Smart tourism and competitive advantage for
stakeholders: Guest editorial. Tourism Review, 74(1), pp.1-4.
Mukelabai, M.D., Wijayantha, K.G.U. and Blanchard, R.E., 2022. Hydrogen technology
adoption analysis in Africa using a Doughnut-PESTLE hydrogen model
(DPHM). International Journal of Hydrogen Energy.
Soegoto, F.A., 2021. Product development using SWOT analysis. International Journal of
Entrepreneurship & Technopreneur (INJETECH), 1, pp.1-10.
Sołoducho-Pelc, L. and Sulich, A., 2020. Between sustainable and temporary competitive
advantages in the unstable business environment. Sustainability, 12(21), p.8832.
Soroka, I. and Zasluzhena, A., 2021. SWOT analysis of teaching process at universities during
COVID-19 pandemic. Psychological Journal, 7(8), pp.82-90.
Tsvirko, S., 2021, October. Analysis of the Innovations’ Trends in the United Kingdom and
Some Proposals for Russia. In The 2018 International Conference on Digital Science (pp.
320-331). Springer, Cham.
Vojvoda, D., 2018. Projection of export competitiveness of company Magdis Ltd on the United
Kingdom market (Doctoral dissertation, University of Rijeka. Faculty of Economics and
Business).
Widodo, A.K., and et.al., 2020 Formulating a Strategic Management of Social E-Commerce
through a Combination of SWOT and PESTLE Analysis: Case Study.