Analyzing Travelodge's Business Organization: A Comprehensive Report

This report provides a comprehensive analysis of Travelodge, a UK-based hotel chain, examining its business organization and structure. It delves into the definition of business and organization, highlighting the different types of business structures like sole trade, partnership, and limited companies. The report focuses on Travelodge's organizational structure, exploring how it functions and adapts to external factors. Key elements include a SWOT analysis to identify strengths, weaknesses, opportunities, and threats, as well as a PESTLE analysis to assess political, economic, social, technological, legal, and environmental factors affecting the business. The report also considers the impact of the COVID-19 pandemic and other crises on the hospitality industry, offering insights into Travelodge's strategic responses and overall market position.

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Understanding Business
Organizations

Table of Contents
INTRODUCTION ..........................................................................................................................3
REPORT..........................................................................................................................................4
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
The term business refers to carry out an economic activities and operations by an
individual with the view to earn profits out of such business activities. It operations and activities
of a business includes manufacturing, production and distribution of goods and services and
commercialising them to meet customer needs and earn profits out of sales. On the other hand,
the term organisation pertains to accumulation of resources for distribution and production of
goods and services and measures are followed best utilization (Tang,2019). The term business
organisation is the combination of many factors and facets which associated with business, there
are several business types which are recognised with the legal framework they are namely, Sole
trade, partnership, limited liability partnership, limited company. In this report a hotel chain
business organisation is chosen to demonstrate and analyse their organisational structure to
examine internal and external factors which may impact on their business during uncertain
events like pandemic or crisis. The business organisation chosen for this report is Travelodge, it
is a UK based Hotel operating in hospitality sector across the United Kingdom, Ireland and
Spain. It is popularly known as Travelogde. It is on of the largest autonomous hotel brand
having approx 570 limited services hotel throughout the UK.

REPORT
An organisational structure is an arrangement of a system which underlines the process
about how specific activities and operations pertaining to business are directed with the view to
attain the targeted goals and objectives a business. The functions and activities that includes in an
organisational structure are policies, norms, rules, duties, roles, responsibilities and obligations.
It is a system which is designed to determine the flow of information and commands between
different levels of the company.
In terms of type of organisation, they can be classified into several categories like, hierarchical,
flat, functional,, matrix and divisional. The key objective of an organisational structure is to set
quick decision making process and establish fair coordination and communication among the
business faculties with the purpose to elevate the performance of an overall business. It means
that the management of a tall organisation is divided into different units where the executives are
kept at top level and normal employees are kept at bottom level (Baker 2020).
In context of a tall organisation, which is bifurcated into different hierarchical sections, with this
structure an organisation have multiple managers who are given their portion of responsibility to
control business affairs within an organisation (Martínez-Martínez, and et.al 2019). In tall
organisation structure there exist complications relating to chains of command. Where an
organisation becomes large, it becomes more complicated to convey or transmit an information
within an organisation.
Usually, tall organisations have more disadvantages and less advantages. In tall organisations, it
is very obvious that there will be more managers who shall be responsible for their small unit of
employees. Which makes each manager to control small unit and they are given narrow control
over the management. The beneficial part of tall organisation is that by having multiple
managers discard confusion and enables managers to command their area with more ease.
The business environment signifies the sum total of business faculties which are
associated with an organisation and other individual or groups which functions outside
the jurisdiction of an organisation, who may have the potential to affect production
status of an organisation. The other factors it includes are innovation and technology,
pubic and market trends, economic changes and policies and activities of government.

SWOT Analysis
A SWOT analysis is a tool which is used by the business organisation for examining and
analysing strength and weakness, opportunities and threats of an organisation. In context of
strength and weaknesses of an organisation are subject to internal factors in company having full
control over its internal affairs and can bring any change as per the need (Cheng and et.al 2021).
The key purpose of SWOT analysis is to ensure and improve awareness of all the factors that
falls within the business structure. It helps in making effective business decision and strategies.
Following is a SWOT analysis of a Travelodge Hotels.
 Strengths: From SWOT analysis, the strength of a company signifies its good
communication skills, disciplined shifts, nicely handling of customers feedback,
availability of services and many more. In the same way for Travelodge, they offer their
services at affordable rates along with special offer. Their fast service like early booking
availability attracts more customer. Since, Travelodge has strong presence in hospitality
industry which kept it strong even during the COVID pandemic or during political
instability.
 Weaknesses: In context of Travelodge, having known as budget hotel, it does not
provide its customer with range of products and services. Most of the time they did not
satisfy their customer as most of time they made overbooking only as to run their hotel at
full capacity. This factors needs to be consider by the hotel management as this can lead
to decline their market reputation.
 Threats: It is well known fact that hospitality industry is very competitive as there are
many players who offers range of products and services, the hotels are classed with stars
ranging from 1 to 5 hotel star ratings. There are other hotels which offer services at cheap
rates which is the biggest threat to it. The political instability and financial crisis can also
impact negatively as people will les likely to spend on such services. The recent Covid
pandemic has affected the entire hospitality industry very badly as they kep their hotel
shut down for more than a year. Opportunities: In recent years an environmental protection movement is being
campaigned and there is a trend to promote green. Therefore, most hotels are branding

themselves with eco-friendly while adopting sustainable programmes. In the same way
Travelodge also adopting such eco-friendly measures and it can be seen by positive
feedback from its customers (George 2021). This how Travelodge shifting its position to
global market by adopting public friendly approaches.
PESTLE Analysis
It is an essential tool which is designed to acknowledge or gain status of an business
organisation and its environment. PESTLE denotes to, Political, Economical, Social, Legal and
Environmental factors. It enables an organisation to set an impression considering the factors
which may impact on the business organisation. Following are the PESTLE analysis of
Travelodge.
 Political Factor: The hotel and hospitality industry is highly dependent on the tourism
and government regulates the tourism and hospitality sector for revenue. Most hotel
industry tend to perform poorly as some areas of hotel industry falls under the political
strife. The positive part of hotel industry is that now trend of travelling and exploring is
increasing and due to which hotel industry is gaining much better. In the same way, hotel
is popular and it has to comply with government policies which benefits them.
 Economic Factor: An economic change may highly affect the the hotel industry, there
are external factors like recessions, inflation and other crisis of economic nature which
have the potential to negatively affect the peoples spending to afford luxury hotels like
Travelodge. Therefore, in case of Travelodge they should welcome foreign clients which
will benefit them to expand their economy.
 Socio-Cultural Factors: This factor pertains to current trend which current generation is
following and it is seen that travelling is new trend. This trend is kept getting its hype
through social media platforms and hotel industries are getting benefits from these as
they willingly accepting classes of people around the world. The government has also
taken measures in legal framework to ensure travellers and foreigners to welcome and
prevent them form any form of discrimination.
 Technological Factors : The recent trend show that hotel and hospitality industries have
become technological-friendly. For instance, installation of CCTV cameras at hotel

premises in order to ensure security to guests, other services like, Wi-Fi connection,
elevators, intercoms and many more. Online booking facilities is the new way of availing
services from hotels, clients are also given liberty to give feedback based on their
experiences. Similarly, Travelodge, needs to ensure that it provides all the technological
facilities which can boost their revenue generation and elevate their market reputation.
 Legal Factors: For any civilized society law is essential and extremely crucial to
regulate human conducts. This applies in the hotel industries too as legal factor binds an
hotel industries to reasonable restrictions as it helps in boosting economy. Government
often offers tax deduction to hotel industries for boosting their financial stability. For
instance, the recent Covid pandemic had affected hotel industries badly, the government
has lifted many tax policies from these sector to revive their business (Foskett and et.al
2021).
CONCLUSION
From the above report it can be concluded that, a business organisation is a an
arrangement where many commercial activities take place with the view to generate profits out
of business. In this report all the relevant information relating to business organisation and
organisational structure is covered. The organisation taken for this report is Travelodge hotel to
demonstrate SWOT and PESTLE analysis of the chosen organisation.

REFERENCES
Books and Journals
Baker, T., 2020. Brand standards' reset'by COVID-19 but won't fade.
Cheng, L.C.,and et.al., 2021. User-Defined SWOT analysis–A change mining perspective on
user-generated content. Information Processing & Management, 58(5), p.102613.
Foskett, D., and et.al., 2021. The theory of hospitality and catering. Hachette UK.
George, R., 2021. Tourism and Hospitality Products, Branding, and Pricing. In Marketing
Tourism and Hospitality (pp. 249-283). Palgrave Macmillan, Cham.
Martínez-Martínez, A.,and et.al., 2019. Environmental knowledge strategy: Driving success of
the hospitality industry. Management Research Review.
Tang, K.N., 2019. Power and politics of business organisation. In Leadership and Change
Management (pp. 69-74). Springer, Singapore.