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Introduction of Understanding Business Organizations Case Study
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Whitbread PLC, a British hotel and restaurant company, owns Premier Inn Hotel. It is the leading hotel store in the Uk. The Inn has over 800 properties around the UK and abroad. This hospitality and hotel sector titan has been giving fantastic facilities to their visitors, – for example superb meals and comfy accommodations. Hotel Premier Inn is proud to support charitable organisations including Great Ormond Street Hospital Charitable organisation. In this study, the Premier Inn Hotel's structure of the organization will be generated and discussed, for example, if the company has a tall structure, how will this system affect the company or what are the limitations of this structure , as well as a picture of the Premier Inn Inn's pattern. It will also identify and describe what the term "Competitive Dynamics" means. Externally and internally aspects affecting the hotel Premier Inn's operations as a consequence of rising events like emergencies, diseases, and other difficulties will also be explored utilising effective assessment methodologies like SWOT and PESTLE. This research will involve an examination of the Premier Inn Hotel's corporate structure as well as the objectives of the case study (premierinn., 2022)
Organisational Structure of Premier Inn Hotel
An organisational structure helps to achieve the organisation's strategic goals. It is a system which helps to get knowledge and ideas about an organisation's activities to achieve its goals. The Hotel Premier Inn belongs to the British Hospitality's expert company Whitbread PLC and is the UK's largest hotel chain and brand which is operating with more than 72.000 rooms and 800 hotels across the United Kingdom and beyond. The five important organisational structures which influence the success of an organisation are Human Resources, Marketing, Accounting, Rooms and Food and Beverage. There are 817 Premier Inn Hotels in the United Kingdom. The hotel provides services such as large beds, bathrooms, free Wi-Fi, television with wide screen and many more. The Premier Inn hotels also provide facilities such as onsite bars, large parking areas and fancy restaurants. The company also offers a refund policy if the customers face any difficulties regarding hotel services. The Premier Inn has a tall organisational structure where the managers of the hotels are in the incharge with a large support network. The employees can contact anytime for advice or help to that person. It is also very easy to access the company related information like legal documents, company privacy and policy and other aspects of the company's working life for anyone including working staff and employees. The company also provides chart functions for the employees (whitbread., 2022)
Premier Inn organisational structure
(Source: Premier Inn Hotel UK, 2022)
Business Environmental Analysis of Premier Inn Hotel
Business Environment is a term which includes external forces, institutions and factors which affect any business enterprise functions and it is beyond the business controlling ability. The business factors and forces such as political, social, technological and legal factors and government, customers, suppliers and competitors etc are also included. These forces and factors operate both a direct and indirect influence on every business firm. It depends on the overall environment of the business which affects the functioning of the business directly or indirectly (Abberton et al., 2021)
SWOT Analysis
This Strength, Weaknesses, Opportunities and Threats have been discussed below through a SWOT analysis of the hotel Premier Inn.
Strength
The Hotel Premier Inn belongs to the British hospitality's expert company Whitbread PLC. It is the United Kingdom's largest hotel chain and comes in a great position with more than 76.3% occupancy rate. The hotel has maintained a strong presence as it has more than 800 hotels including 80,0000 rooms in the United Kingdom and the hotel is providing services to over five million customers every month (Premier Inn Hotel UK, 2022). The room services of the hotel are also very likeable among their customers such as comfortable duvets and pillows and many more. Most of the hotels of Premier Inn are located in tourist attraction places or near airports and institutions which is a great advantage for its business and popularity. Premier Inn has maintained its brand reputation and image because of its best room services for their customers of any age such as 24/7 free Wi-Fi and many more (bbc, 2022)
Weaknesses
Though The Hotel Premier has gained popularity in the United Kingdom, it still lacks its popularity globally in other countries. Because of its limited presence in other countries compared to other hotel and hospitality industry giants it has become a weak point for its business growth. There are some major problems the company has caused such as customers facing issues with the hotel's hygiene services and refund issues (bbc, 2022)
Opportunities
There are some great opportunities for Premier Inn which will help the organisation for its growth in business in future. The first opportunity for hotel Premier Inn is the company exploring other new markets. This will help Premier Inn in the exploration of other countries and regions. Though the company already has 28 hotels in the country Germany which offers so many further opportunities for Premier Inn because of its popularity in the United Kingdom. The company can also improve their services by providing new decorations such as complete renovation of floors, tiles and walls as well as fixing minor problems of other constructions.
Threats
The hotel Premier Inn can face some difficulties if it fails to pay attention to some major threats. There are other companies from the hotel and hospitality industry which are giving a tough competition to the Premier Inn Hotel such as Easy Hotel, Holiday Inn, Marriott and other hotels. The company has been accused and alleged because of its refund issues and hygiene issues mentioned in the above SWOT analysis of weaknesses, some legal actions can be taken against Premier Inn from health and safety executives and trade union sectors. Apart from that there was a huge loss for Premier Inn during Covid-19 pandemic because of the lockdowns (Segnon et al., 2021)
PESTLE Analysis
There are some certain factors which affect the "business environment" of an organisation both in a positive and negative way. This study has discussed these factors of the United Kingdom's hotel and hospitality industry with the help of PESTLE analysis which includes the Political, Economical, Social, Technological, Legal and Environmental factors in the following.
Political Factors
The government of the United Kingdom has brought the hotel and hospitality industry of the UK into the field of the county's economics for its successful economic growth and development as it is the country's fifth largest industry. The companies from the hotel and hospitality industry have maintained a positive collaboration with the UK government. This industry has been providing employment to more than 2.4 million people directly and contributing a lot to the country financially (Bowie, 2018)
Economical Factors
Currently the Premier Inn hotel is the United Kingdom's most largest hotel chain which is also the fastest growing hotel chain across Ireland. The company is aiming to establish and expand plans for its business also across globally. The UK's budget hotel sectors are also the fastest growing sector in the country which helps in the growth of the UK's economy financially. The UK government has held some events such as international sporting events of the ICC World Twenty-Twenty and the Ashes to promote the hotel industry (Lu, 2019).
Social Factors
Social factors play a very significant role in the development of the hotel and hospitality industry. Social factors such as distribution of income, way of lifestyle and conditions of living influence a lot to operate the industry. Improving living conditions in enterprises could lead people in choosing a comfortable and relaxing life and spending their money to experience a better lifestyle. Because of this fact the hotels are providing some great facilities and services according to their consumer's demands. But during the pandemic the financial condition of many people were not stable enough to enjoy expensive hotel services which eventually became a also a huge loss for the hotel industry (Akbari et al., 2021)
Technological Factors
Technological factors influence the hotel and hospitality industry a lot. Technology has become an advantage for the growth of any organisation. Nowadays every well-known hotel is providing all the useful technologies such as 24/7 Wi-Fi services and other digital devices but sometimes these technologies provide harmful and unexpected harvests. The Premier Inn has introduced its own official website which is getting recognitions to the internet users.
Legal Factors
The government of the United Kingdom has increased the wage rate this will increase the operating cost of budget hotels and also help in increasing the cost of production. The cost of production hampers the policy which offers competitive prices to the customers. They have also developed a policy called responsible sourcing policy to avoid legal issues.
Environmental Factors
Maintaining the environment is an important responsibility for hotel enterprises and Premier Inn because of the customers preferences. As the customers prefer hotels with a healthy environment and hygienic services. The basic priorities of an organisation for a healthy environment are Environment, Sourcing, People, Health, Community and Customers.
Conclusion
This study provided a comprehensive overview of Premier Inn Hotel and created and stated basic details about the inn's corporate structure, for example, the facility has a tall structure, the layout add value to the organization, and the craft's disadvantages, as well as an illustration of the Premier Inn Hotel's structural system. The report also discussed and summarized what the term "Competitive Dynamics" means. The internal and external elements that have an influence on the hotel Premier Inn's operations as a consequence of emergent scenarios like crises, outbreaks, and other difficulties have also been explored utilising effective assessment methodologies like SWOT and PESTLE. The four elements of the SWOT analysis, the hotel Premier Inn's Strengths, Weaknesses, Opportunities, and Threats, have been discussed. Several elements have an impact on an organization's "business climate," both positively and negatively. This research used PESTLE approach to analyse these elements of the United Kingdom's hotel and tourism business, which comprises the Political, Economical, Social, Technological, Legal, and Environmental variables. Ultimately, this research has provided a quick overview of the Premier Inn Hotel's management structure as well as what the case study wants to accomplish.
References
Abberton, M., Abdoulaye, T., Ademonla, D.A., Aseidu, R., Ayantunde, A., Bayala, J., Cofie, F., Kane Potaka, J., Sanders, Z., Tabo, R. and Tenkouano, A., (2021). Priority interventions for transformational change in the Sahel. CGIAR Research Program on Climate Change, Agriculture and Food Security Working Paper.
Akbari, M., Nazarian, A., Foroudi, P., Seyyed Amiri, N. and Ezatabadipoor, E., (2021). How corporate social responsibility contributes to strengthening brand loyalty, hotel positioning and intention to revisit?. Current Issues in Tourism, 24(13), pp.1897-1917.
bbc, (2022). Premier Inn owner Whitbread warns of staff shortages as demand recovers. [online] BBC News. Available at: <https://www.bbc.co.uk/news/business-59048014> [Accessed 11 May 2022].
bbc, (2022). Whitbread: Premier Inn owner braces for UK holiday boom. [online] BBC News. Available at: <https://www.bbc.co.uk/news/business-56898843> [Accessed 11 May 2022].
Bowie, D., (2018). Innovation and 19th century hotel industry evolution. Tourism Management, 64, pp.314-323.
Lu, L. and Tabari, S., (2019). Impact of Airbnb on customers' behavior in the UK hotel industry. Tourism Analysis, 24(1), pp.13-26.
Premier Inn Hotel UK, (2022). [image] Available at: <https://commons.wikimedia.org/wiki/File:Premier_Inn_Leeds_City_Centre_(Whitehall_Road)_(25th_August_2017).jpg> [Accessed 11 May 2022].
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Segnon, A.C., Botchway, V.A., Samaké, O., Idrissa, M., Essegbey, G.O., Karbo, N., Sogoba, B., Whitbread, A.M., Thornton, P. and Zougmoré, R.B., (2021). Barriers and Enablers to effective science-policy interfacing for CSA mainstreaming: lessons learnt from the science-policy platforms in West Africa.
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