Analysing Travelodge: Structure, SWOT & PESTEL - A Case Study

This case study examines Travelodge's organisational structure, highlighting its hierarchical approach and the advantages and disadvantages associated with it, such as clear roles and potential communication inefficiencies. It delves into the business environment through SWOT and PESTEL analyses, identifying strengths like knowledgeable staff and weaknesses like high infrastructure costs. Opportunities include enhanced social media presence, while threats encompass changing consumer patterns and economic crises. The PESTEL analysis covers political, economic, social, technological, environmental, and legal factors impacting Travelodge, both positively and negatively. The study concludes that understanding both internal and external factors is crucial for Travelodge's strategic decision-making and sustained success in the competitive hospitality industry. Desklib provides access to similar case studies and study resources for students.

Understanding Business
Organisation

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Organisational structure...................................................................................................................3
Advantages...................................................................................................................................4
Disadvantages..............................................................................................................................5
Business environment analysis........................................................................................................5
SWOT Analysis...........................................................................................................................5
PESTEL Analysis .......................................................................................................................6
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................9
Books and Journals......................................................................................................................9

INTRODUCTION
An enterprise which works in the direction for producing products and services in order
to meet the requirements of customers is considered as business organisation. Business
organisation have basically four forms such as sole proprietorship, corporation, partnership and
limited liability company (Beynon-Davies, 2019). As per the size and fund available with the
business they can opt business organisation. The hospitality industry is growing rapidly with this
they are contributing large part towards economy. A huge number of employment opportunity is
being produced by this industry. The organisational structure selected by companies is also
dependent on its size and working environment (Thobela, 2020). The chosen Hotel chain
organisation for preparing this case study is Travelodge, which is a private limited company
involved in hospitality industry. It was founded in 1973 having headquarter in England, serving
across United Kingdom, Spain and Republic of Ireland. This case study includes the
organisational structure of company along with it's advantages and disadvantages. Internal as
well as external analysis of business is being discussed with the help of SWOT analysis and
PESTEL analysis respectively. The Pestle analysis also comprises of impact on organisation
favourably as well as unfavourably.
MAIN BODY
Organisational structure
The structure which states how activities as well as actions are are going to take place
within the organisation in direction to achieve defined aims and objectives is termed as
organisational structure (Biedermann, 2021). As per the size and working culture of organisation
they followed different organisational structure to continue it's operations.
The organisational structure followed by Travelodge is Hierarchical organisational
structure. The reason behind using this organisational structure is that they are large business
unit having large number of employees. The flow of communication in hierarchical structure
flows from top to bottom (Samson and Bhanugopan, 2022). The higher level authorises present
within the organisation cannot directly connects with the employees working at lower level
management. They have to take help of middle level authorities in order to deliver it's
conversation. The roles and responsibility which each and every employee have to perform is

clearly defined by using this structure. The Hierarchical structure have certain advantages as well
as disadvantage which are being mentioned below in context to Hotel Travelodge.
Advantages
 Clear path – The hierarchical structure leads to defining clear roles and responsibility to
each employee (Beynon-Davies, 2021). The chances of overlapping of work does not
arise because everyone are aware of the work which they have to perform within
Travelodge. The clear defined structure of work motivates employees to work
collectively in the direction to achieve decides goals and hence productivity enhances. Department loyalty – The management of Travelodge use to divide all the task or
activities of organisation among various departments as per their capabilities in
hierarchical organisational structure. This is how all the employees work in the direction
to achieve assigned tasks and organisational goals.

Disadvantages
 Costly – There are number of departments within Hierarchical organisational structure
this is why they have to make hiring of number of employees which leads to increase in
cost of Travelodge (Bridge, Murtagh and O'Neill, 2020). Poor communication – The employees working at higher level of management cannot
connect directly with its juniors working at lower level of management. When the lower
level management of Travelodge directly wants to share its opinion or something
important to higher level of authorises directly they have to take help of middle level
management, which makes delay in conveying their message and ineffective
communication takes place.
Business environment analysis
The business environment comprises of study of internal as well as external factors of
business in order to identify the factors which are negatively and positively affecting working of
businesses (Cruz-Jesus, Pinheiro and Oliveira, 2019). The business may have to face certain
problems which organisation wants to be resolved for this it is important for them to become
proactive by analysing the situation on prior basis.
SWOT Analysis
The SWOT analysis is being performed by the organisations to make evaluation about
internal working condition of businesses (FitzPatrick, 2018). The SWOT analysis of Travelodge
is stated below -
Strength Weaknesses
Knowledgeable staff - Travelodge is having a
well trained and well educated mannered staff,
who knowns how to deal with customers
effective also to influence them (Lapiedra,
2021). The good behaviour and attitude of
workforce towards customers makes them feel
satisfied and this is how they turns into loyal
and repeated customer of Travelodge.
Good connections – The Travelodge has a
Competitors – Hotel industry is growing
rapidly this is why Travelodge have to to face
the major issue of having lot of competitors.
The other industries can overcome then by
adding some innovation in its businesses, that
is why Travelodge have to be involved in
continuous innovation and creative in order to
retain in market.
High infrastructure cost – The Travelodge

good relations with the influencer present over
social media. They help them in promoting its
products & services, also they influence its
followers to visit the place.
have spend a huge sum of cost within its
business to give a new look to it's
infrastructure which results in increasing
unnecessary cost.
Opportunity Threat
More social media presence – The influencer
will help in gathering customer base, but with
this Travelodge should keep a step ahead on
making its presence over all social media
platforms.
Expansion – The Travelodge is operating at
limited areas this is why they have less
customer base if they expand it's businesses
they will be able to acquire more customers.
Change in consumer consumption pattern –
The customers preferences changes anytime so
they this is difficult for Travelodge to identify
them.
Economic crises – The economic crises affects
the hostels as they have to remain close for a
long period of time in that time customers are
not allowed to visit Travelodge hotel.
PESTEL Analysis
The PESTEL analysis is being performed to identify factors which will affect the
business at macro level (Lanz and Brown, 2020). Political Factor – The political factor are those which undertakes with the involvement
of government.
Positive – The positive thing is that do to have a stable government in UK, Travelodge do not
have to make random and rapid changes within its policies, which saves their time as well as
cost.
Negative – The negative aspect of political factor is due to high tax rates charged by UK
government, Travelodge have to increase its prices. Economical Factor – The organisations affected by the en comic changes that are taking
place at macro level is economical factor.
Positive – The arise of holidays or vacations makes a sudden demand for hotels. At that time
frame Travelodge use to increase prices in order to gain more margins.

Negative – Due to arise in the situation of recession the buying or purchasing power of
customers declines this is why they are not able to afford the facilities provided by Travelodge. Social Factor – The social factor is defined as the attitude or behaviour of customers
towards the consumption of any goods or services.
Positive - The Travelodge industry is make use of social media platform in order determine the
current trends that is being preferred by the customers.
Negative – The negative aspect is that Travelodge does not give attention towards the customers
belonging to middle and lower income group this is why they have low customer base. Technological Factor – The technology makes improvement in businesses as with the
use of advanced upgraded technology productivity enhances.
Positive – The customers are provided with the facility of online booking by Travelodge, this
enhances customer satisfaction.
Negative – The use of advance technology by Travelodge is expensive enough that is increasing
their budget. Environmental Factor – The environmental factor includes climate changes, carbon
footprints and many more environmental related factor.
Positive – The Travelodge is involved in making use of organic and Eco- friendly products in
order to prevent environment.
Negative – Travelodge does not pay attention towards reusing of any products they just throw it
and pollute environment. Legal Factor – The legal factor are those which undertakes with the involvement of legal
bodies.
Positive – Travelodge follows all the laws framed by legislative bodies to keep it's image
positive in the mind of customers.
Negative – At the time of expansion of businesses Travelodge faces many hurdles in following
rules and regulations of different countries.
CONCLUSION
From the above case study it can be concluded that, businesses organisations are the one
who are involved in providing goods and services to customers desired by them. The
organisational structure followed by Travelodge is Hierarchical organisational structure as the
size of organisation is large this is why they uses this structure also it is clearly defines the roles

and responsibility of each individual. The business environment analysis helps in evaluating
external as well as internal environment. The analysis is being performed with the help of SWOT
and PESTEL for checking environmental conditions. The biggest strength of company is having
a good connection with influencers which makes their services promoted among customers. The
PESTEL analysis of company comprises of both positive and negative aspects.

REFERENCES
Books and Journals
Beynon-Davies, P., 2019. Business information systems. Red Globe Press.
Beynon-Davies, P., 2021. Investigating Domains of Organisation. In Business Analysis and
Design (pp. 89-104). Palgrave Macmillan, Cham.
Biedermann, M., 2021. The application of high reliability organisation theory in relation to high
reliable organisational practice: An air traffic case (Doctoral dissertation, University of
Gloucestershire).
Bridge, S., Murtagh, B. and O'Neill, K., 2020. Understanding the social economy and the third
sector. Bloomsbury Publishing.
Cruz-Jesus, F., Pinheiro, A. and Oliveira, T., 2019. Understanding CRM adoption stages:
empirical analysis building on the TOE framework. Computers in Industry, 109, pp.1-
13.
FitzPatrick, D.J., 2018. The collective experiences of middle management when implementing a
business continuity management system within their public sector organisation
teams (Doctoral dissertation, Auckland University of Technology).
Lanz, K. and Brown, P., 2020. All the Brains in the Business: The Engendered Brain in the 21st
Century Organisation. Palgrave Macmillan.
Lapiedra, R., 2021. New Technologies for a New Organisation. In Change and Development in
Organisations (pp. 68-76). Routledge.
Samson, K. and Bhanugopan, R., 2022. Strategic human capital analytics and organisation
performance: The mediating effects of managerial decision-making. Journal of Business
Research, 144, pp.637-649.
Thobela, M., 2020. Aligning Business Processes to the Strategic Goals of the Organisation.
University of Johannesburg (South Africa).