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Understanding Business Organisation

1. Introduction - Understanding Business Organisation

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Premier Inn hotel is a well-known British limited amenity in group along with also considered as the United Kingdom’s biggest hotel brand with an excess of 72000 suits and 800 hotels. The main motto of the Premier Inn hotel is to offer class, reasonable hotels for their customers to assist them to stay as well as toil well in addition to constructively effect the globe. The hotel is owned by Whitbread and the net income of the hotel is around £ (906.5) million (2021). The total number of workers associated with this hotel is around 30000 as of 2022. One of the main notions behind conducting this study is to make a case study on the basis of own comprehension of business firms as well as its working ecology. The study will primarily focus on producing and explaining the corporal framework of Premier Inn in addition to this will also explain the inner as well as outer aspects that provide an effect on its business as a result of global pandemic. The main aim behind conducting this study is to show how Covid-19 has impacted the overall business of the Premier Inn hotel and that will be explained using SWOT and PESTLE.

2. Organisational Structure of Premier Inn Hotel

Premier Inn Hotels toils on an extraordinary one-of-a kind structure which is known as the “Tall Organizational Structure” that combines possessions, the operation of the hotel, brand as well as dispersion of inventory that has facilitated them to build up affectivity. Tall structure organization in this case implies that administration is divided into various strata with managers on the top and the general workers on the end (Pitts, 2008).

Figure 1: Organizational Structure of Premier Inn Hotel

Source: Google

So, it can be identified from the above given diagram that the head of the hotel is its general manger to which executive assistant manager has to report. Below that there are various other head of the department who look after the junior level employees work. With the help of maintaining this tall organizational structure the company receives various advantages and few of the drawbacks too.

With the help of using a tall organizational structure Premier Inn facilitates its own operation as well as the general manager to take important verdict concerning the functional tactics that positively affects the function of Premier Inn. In addition to this, the mentioned organizational structure helps in maintaining power chain of command from the top level to bottom level sue to which all the work are always finds to be in synchronise and systematically sound. By following a tall organizational structure the premier Inn workers beneath the top-level of the executives comprehend their jobs and obligations that help in expanding efficiency and productivity during the pandemic time too. However looking into the drawbacks of this structure it has been identified that by having several layers of administration, it usually take much longer time to take frequent vital decision to reach the employees due to which work get slow down many a times (Jacobides, 2005).

3. Business Environment analysis of Premier Inn Hotel

The term business environment usually shows the collective sum of the entire of the populace, companies as well as additional drivers which are exterior to the authority of the industry yet that might provide an impact over its manufacturing. Business environment also facilitates the company in analysing their rival’s tactics as well as act (Hans, 2018).

3.1 SWOT Analysis

SWOT analysis is a kind of tactical designing as well as tactical administration process deployed to assist a business in identifying its strong, weak points along with occasions and risks associated to the business or venture planning. In other words it is also known as situational evaluation (Bonnici, 2015).

3.1.1 Strengths

Considering the occupancy rate of Primer Inn, it can be seen that due to pandemic many hotels including the Premier Inn is faced many issues but due to its good reach and huge customer base the occupancy rate of the hotel has blocked around 76.3 % share within the industry. Also increasing the staycation boom and providing room particular sea facing also make it easier for the hotel to get back its clients (WHO, 2020).

3.1.2 Weaknesses

It has been seen that the Premier Inn's profit dropped to a deficiency of £725m in the initial half of its monetary year and cautioned that room bookings had decreased as the territorial lockdowns were forced in October. Also due to less corporate meetings and functions happening after the pandemic is hitting hard the hotel to manage its clients (Atasoy, 2022).

3.1.3 Opportunities

After the post pandemic a lot of opportunities have been opened up for hotel industries and same for the Premier inn. The primary and the most noticeable opportunity which is identified by the hotel are providing special benefits to retain the guests after the pandemic. And the second opportunity is identifying new markets to form new business there in (Shapoval, 2021).

3.1.3 Threats

As the pandemic is still going on thus there is always a risk of getting infected again. As a result there always exists a threat if again losing the client base. In addition to this, the sudden Lockdowns have destroyed numerous organizations all over the planet over the most recent couple of years. Premier Inn was impacted severely too. The same kind of circumstances in the future might end up creating a complex situation for the hotel (Borko, 2020).

3.2 PESTLE Analysis

A pestle analysis usually researches the main exterior aspects which impacts the working of a company. A pestle analysis might also be deployed in a variety of other situations as well as might help in guiding experts in addition to senior executives in taking proper tactical choices related to their business.

3.2.1 Political

The hospitality sector within UK for the maximum part depends on the legislatures issued by the regulation creator within parliament. Excise duties, rivalries as well as immigration commandments provide straightforward impact over the day to day functioning of the Premier inn Hotel. The on-going regulation which has hit mostly the inn business includes COVID-19 pandemic tourism advisories. Low levy has empowered Premier Inn Hotel to support the negative Coronavirus influence (KIGERA, 2016).

3.2.2 Economic

The financial complexities, an influential British Sterling Pound, COVID-19 lockdown and limitations have restricted Premier Inn Hotel appointments. On the other hand, a few sightseers deprived of very good quality lodgings have figured out how to book in the inn because of loosened up tourism warnings at present by the U.K regime (Andreu, 2019 ).

3.2.3 Social

The socio-financial complexities presently within UK involve choices of the populace on private staying over inn. Premier Inn Hotel has already lost various customers to a new competitor in the market known as Airbnb. In reply, the inn has acquired few of the customer demands by adding additional amenities, Anticipated amenities comprises of gymnasium as well as massage parlour which has derived additional youthful client into Premier Inn.

3.2.4 Technological

Progressive technology for example the deployment of 5G has facilitated Premier Inn to expand booking of rooms as well as additional inter based client amenities too. The travellers are enjoying web based exchange expanding the hotels choices. However data security is getting broken by means of hacking frequently expose customer private data to wrongful persons. Luxurious customers have augmented worries of their protection because of unsecure web based functioning of the hotel.

3.2.5 Legal

Varieties in the legitimate climate have achieved preceded with lawful difficulties in the Premier Inn Hotel's day-to-day activities. The normal legitimate issue involves information-breaking fines by means of the lodging's web-based administrations.

3.2.6 Environmental Factor

Smart innovation deployment by the Premier Inn Hotel has decreased the U.K stress on accessible assets. Among the used harmless to the ecosystem factors involve energy-saving lights sun oriented energy, and water-proficient showers. At present, it is the inn encountering an unnatural weather change impacts from different sources and not its tasks.

4. Conclusion

Overall it can be concluded from the study that Premier Inn hotel is the biggest brand within UK and serving a lot of clients in this pandemic situation also. It can also be identified from the study that with the increased number of hotel room the hotel gets more clients and the risks which has been identified from the study is the breach of data. Also from the PESTLE analysis it has been identified that premier Inn Hotel has obtained duty exclusion because of the Coronavirus. Extra administrations like exercise centre and back rub parlour have drawn in youthful clients to the lodging. Information breaking has cost the lodging government fines. Further developed innovation has worked with online lodging administrations. Utilization of climate well-disposed energy sources has made the inn more alluring to clients. The entire study has showed both positive as well as negative impacts of coronavirus over Premier Inn in addition to has showed how the company is coping with the situation by providing special facilities to its customers.



Atasoy, B., 2022. trategic responses of chain hotels to COVID-19 from a situational crisis communication theory perspective. Journal of Hospitality and Tourism Insights.

Bonnici, T.S.-, 2015. SWOT Analysis. Wiley Encyclopedia of ManagementPublisher: John Wiley & Sons, Ltd.


Hans, V.B., 2018. Business Environment – Conceptual Framework and Polices. SAEC, Mangalore.

Jacobides, M.G., 2005. The Inherent Limits of Organizational Structure and the Unfulfilled Role of Hierarchy: Lessons from a Near-War. London Business School.


Pitts, T., 2008. Organizational Structure. SSRN Electronic Journal.

Shapoval, V., 2021. The COVID-19 pandemic effects on the hospitality industry using social systems theory: A multi-country comparison. Int J Hosp Manag.

WHO, 2020. COVID-19 management in hotels and other entities of the accommodation sector. WHO.

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