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There are several ways in which businesses may improve their operations, but one is to have an understanding of their corporate organisation. “A company's growth and profit margin are the fundamental objectives of understanding corporate organisation. As a consequence, the business's internal and external methods for assessing the true value of their company are assisted by establishing a strong corporate framework that helps organisations to prosper. The structure of Premier Inn will be examined in the following study”.
“There are more than 800 Premier Inn hotels in the UK and abroad, making it the biggest hotel chain in the country”. In addition to GOSHC, a number of other organisations benefit from the backing of this industrial powerhouse (Premier Inn, 2021). The purpose of this article is to explore and highlight the advantages and disadvantages of Premier Inn's organisational structure. “The primary goal of this essay is to conduct PESTLE and SWOT assessments of the Premier Inn hotel. Additionally, the article tries to uncover macro-environmental causes and micro-environmental factors by conducting an insider and outsider assessment of Premier Inn based on these features”.
Defining an organization's structure is a way of defining the specific duties and tasks of the many departments engaged in the current practises of a firm. To facilitate in the efficient development of the business organisation, it helps define roles and responsibilities (Cepel et al., 2019). It is also a goal of Premier Inn (a hotel chain based in the United Kingdom) that they can manage the operations and activities of many departments by adopting a new organisational structure. A functional organisational structure is in place at Premier Inn, and it is implemented in accordance with their business needs. In addition, Premier Inn may take advantage of the interaction between divisions to acquire success and develop their company by using a functional organisational structure.
Premier Inn may consider the benefits and disadvantages of its functional organisational structure based on the skills and talents of its employees. Organizational hierarchies result in discrete departments for workers and unique classifications for personnel. Employees of Premier Inn are classified into these categories based on their degree of competence, knowledge, talent, and other critical-thinking abilities. Premier Inn, for example, is able to quickly change its business operations and allocate tasks to employees with the use of this method. One of the advantages of this organisational structure for Premier Inn's senior members and others is that it enables them to manage interdepartmental interactions while creating an enjoyable work environment (Krishnamurthi et al., 2019).
On the other side, this approach has a detrimental effect on Premier Inn. Workplace disputes might arise because of a lack of clarity in the decision-making process at Premier Inn because of method. “The drawback of a functional organisational culture is that it adds to the complexity of Premier Inn”. Because of the continuing Covid-19 outbreak, departments are unable to operate together. As a consequence, productivity decreases and company value decreases.
The term “Business Environment” refers to practises that aid in the development of a company and identify certain aspects that have an influence on business operations. Using macro- and micro-environmental analysis, an organisation may learn more about their workplace's internal and external characteristics (Tajeddini et al., 2017).
In the midst of the Covid-19 outbreak, Premier Inn has garnered several plaudits that will help them recruit new customers. Premier Inn, on the other hand, has a competitive edge since its financial and market worth is among the most respected in the present sector.
“Premier Inn does not have a significant brand value in the global market, and its national growth is restricted”. Premier Inn does not presume that innovation is a trend in the hospitality business in the United Kingdom. As a result, competing companies are able to simply acquire customers. As a result, Premier Inn's brand value is negatively impacted by internal disagreements in the workplace (Shin et al., 2021).
With the use of AI and virtual reality, Premier Inn can guarantee that their hotel continues to be innovative. The present Covid-19 epidemic allows them to save resources and focus on just the most essential tactics. Because to the Covid-19 epidemic, they've lost a lot of loved ones. They have the option to invest in new areas and earn worldwide recognition via Premier Inn.
Suppliers and new market entrants pose a significant challenge to Premier Inn's business model. As a result of Brexit, government policies and legislation have a significant influence on Premier Inn's growth and development. Premier Inn is also concerned about the threat of rising levels of competition (Jiang and Wen, 2020).
With Brexit, Premier Inn's business is being harmed by an excessive taxation strategy. “Increasing VAT tax and other government measures are also a factor in Premier Inn's unfavourable business practises”. The government's backing of the hotel sector in the wake of the Covid-19 pandemic is a good political factor for Premier Inn.
It is difficult for Premier Inn's commercial operations to thrive in the current economic environment, but the government gives them with help in order for them to gain an advantage. As a result of Premier Inn's inability to adequately manage their business operations due to the economic instability of the UK national economy, both positive and negative consequences on Premier Inn may be seen.
Premier Inn's company is benefiting from the growth of the hotel sector in Germany and other parts of the Middle East. Premier Inn is struggling to operate in the Asia-Pacific region because of the Covid-19 outbreak, which has reduced the hotel industry's sustainability.
Premier Inn's business operations benefit from the use of technology resources;however, the high cost of these resources is a downside. Due to their scarcity, Premier Inn had a variety of issues, as it had an influence on their profits and revenues. Premier Inn has an excellent potential to engage in technology due of the effect of Covid-19. Premier Inn is able to expand its business activity as a result of technical advancements. Premier Inn's supply chain management is increasing in breadth in the technological industry (Spanaki et al., 2021).
Regulations such as the General Data Protection Regulation (GDPR), which controls the protection of customer and employee data, might have an impact on Premier Inn's business procedures. However, Premier Inn does not reap the benefits of this feature in its favour. The government of the United Kingdom has put in place a slew of legislation and regulations pertaining to the hospitality industry. Premier Inn was compelled to cope with unfavourable situations as a consequence of these regulations during the Covid-19 outbreak as a result of these laws.
Due to stringent legal and ethical rules for the hotel company, Premier Inn is unable to maintain control over its environmental accommodations. This negatively impacts the expansion and profitability of the hotel chain. Environmental influences, on the other hand, have both good and negative impacts on the activities of Premier Inn's corporate headquarters. Since carbon dioxide emissions have decreased, Premier Inn has increased its ability to attract new customers to their establishment (Krishnamurthi et al., 2019).
Following an examination of the aforementioned study, it has been found that the workflow and atmosphere of the company may have a negative impact on the organisation as a result of certain components of the business. Organizations are unable to effectively manage their company operations as a result of this aspect, which results in a reduction in revenue and brand value. Because these factors have an impact on the operations of businesses, it is critical for businesses to grasp the consequences of these factors. Premier Inn's organisational structure, on the other hand, was documented in the study, which revealed that they use a functional organisational structure.
Following the conclusion of the aforesaid investigation, it was found that the many businesses environmental aspects of Premier Inn were significant, and that it was critical to undertake business environment analysis in the workplace. “It is a significant hotel chain in the United Kingdom that is a member of the hospitality industry. In order to understand how Premier Inn's development is impacted by both internal and external forces, the SWOT and PESTEL analyses were conducted and described in the preceding study”.
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