Business Context: SWOT and Pestle Analysis, Leadership Styles, Ethics and Social Responsibilities

This report discusses the business context of Hampton by Hilton, including SWOT and Pestle analysis, evaluation of opportunities and threats, leadership styles, and ethics and social responsibilities.

CONTEXT OF BUSINESS

Contents
INTRODUCTION...........................................................................................................................3
SWOT Analysis...........................................................................................................................3
Pestle Analysis.............................................................................................................................4
Evaluate how the changes in PESTEL factors have influenced the Opportunities and Threats
for the business. Critically comment on how the company is using their Strengths to negate
Threats and Weaknesses affecting their Opportunities...............................................................5
Compare and contrast the different styles of leadership. Comment if the leadership style is
appropriate for the company of your choice................................................................................6
Recommend a suitable leadership style that helps them grow and overcome the challenges
posed by the business environment.............................................................................................8
The Responsibility, Response and Obligations in their Ethics and Social Responsibilities in the
processes......................................................................................................................................9
Reflection...................................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
The business context encompasses an understanding of the factors impacting the business from
various perspectives, including how decisions are made and what the business is ultimately
trying to achieve. The business context is used by IT to identify key implications for the
execution of its strategic initiatives. Hampton by Hilton, formerly known as Hampton Inn, is a
brand of hotels trademarked by Hilton Worldwide. The Hampton hotel brand is a chain of
moderately priced, upper midscale hotels with limited food and beverage facilities. This report
highlights issues such as SWOT and Pestle Analysis. Changes in PESTEL factors have
influenced the Opportunities and Threats for the business. Ways and methods used by company
to use their strength to reduce their threats. Compare and contrast the different styles of
leadership and suitable leadership style that helps them grow and overcome the challenges posed
by the business environment. The Responsibility, Response and Obligations in their Ethics and
Social Responsibilities in the processes with reflection (Wanwan, 2017).
SWOT Analysis
Strength-
Hotel Hampton has been successful in raising more money from market, this is because
they have reduced the cost of labor and set their margin of profit on a high scale. Other than that
they are the ones who contribute in the local economy.
Weakness-
The cost that is required to start up their business is high which is why they have to
charge more to their customers in order to achieve their goals. Other than that their model of
business works on different seasons in different countries.
Opportunities-
They can target new generation as they are their potential servers. Other than that they
can bring in more technological upgrades.
Threats-

If the economy of world is not good then this business will suffer. Other than that if they
find more suitable package at cheap rates then hotel Hampton will lose their business (Rekik,
Boukadi and Ben-Abdallah, 2017).
Pestle Analysis
Political Factors-
Decisions such as travel ban at the time of pandemic can kill the business of hotels.
Economical Factors-
Hampton has to look for this factor because it is concerned with spending power of
people which is related with economy. If the currency of country is strong over others then less
people will tend to visit.
Social Factors-
Perception of people is changing with times and now they want cheap accommodation
facilities as Airbnb because of their free rules and regulations.
Technological Factors-
Management has to work with this factor as now it is used for broadcasting or advertising
instead of that they can make or break the reputation of business so they need to be careful about
that (Schlegelmilch and Szöcs, 2020).
Legal Factors-
Management of company needs to make sure that no illegal activity is being operated
under their roof and that they are far away from crime zones so that they do not lose customers
because of that.
Environmental Factors-
This factor is critical for this line of business because if people do not find the
environment to be suitable or adaptable there. They will not want to spend their vacation on it.

Evaluate how the changes in PESTEL factors have influenced the Opportunities and Threats for
the business. Critically comment on how the company is using their Strengths to negate Threats
and Weaknesses affecting their Opportunities.
Influence on opportunities and threats-
Currently Hampton has the opportunity of bringing in more upgrades in the field of
technological sector but due to the rapid spread of negativity or making false accusation they are
making a limited use out of it so that they can understand the changes and impact of this measure
first and then take a decision to bring this into action. It will be a great opportunity for them if
they bring in more upgrades with this field as this brings more leisure and comforts to their
guests so that they can get the benefit of spreading a better word of mouth which will ensure that
they get more customers and better image in the market. They can use it in the form of
advertisements as technology has reach which has no extent. By the changes in external
environment even the threats for Hampton has increased as the spread of covid-19 has decreased
travel among people and government has taken strict measures against it which is affecting their
business. This has increased the threats on them because people will prefer safety over their
travel options which will limit their business. It will be helpful if management keep on
conducting analysis in a timely manner so that they can reduce the level of risks and do not miss
out any opportunities which can affect their business (Perano, Hysa and Calabrese, 2018).
Use of strength to negate threats-
Due to their past success and establishments in different markets they have been able to
raise funds from capital markets or different options with a different strategy and that is to make
more affordable accommodation services such as Airbnb which has more demand in the minds
of people. This way they will be able to open up their services for new segment of customers
which will help them to increase their share in market. They need to analyze the economy of
different markets in order to achieve growth because the line of business they operate in their
revenue depends on that (Myšková and Kuběnka, 2019).
Weakness affecting their opportunities-
It is time when they have to equip their facilities with upgrades that are concerned with
technological factors so that they can offer more services to their guests from around the world

who are considering their facility as an option to choose from. Although due to need of
investment on high level to fulfill this factor company is facing difficulty to do that which is
limiting their growth. Other than that whenever management of Hampton is looking for
expansion they need to look out for places whose weather and climatic conditions create an urge
in the mind of people to visit. If they do not invest as per this strategy and concept they will lose
up their opportunity to target and visit many tourists from across the world which will result in
loss of business and a chance to gather more share in market (Lelková, and Lorincová, 2017).
Compare and contrast the different styles of leadership. Comment if the leadership style is
appropriate for the company of your choice.
Styles/ Basis Meaning Benefits Drawbacks
Autocratic Style of
leadership
In this form of
leadership higher
authorities have
absolute control over
the decisions that are
taken for future run.
Members of the team
are not asked to
comply all the
decisions and work
under them without
making any changes.
It saves time of
employees on making
decisions, other than
those employees know
that what work they
have to do and level of
performance they
expect from them.
They involve only few
of them in the process
of implementation of
strategy so that there
are no errors.
Employees sense a
feeling that they are
undervalued, less
motivation is given to
them this leads to
creating risk of forming
up a rebellion.

Democratic
leadership
It is believed that this
form of leadership is
the opposite of
autocratic leadership
and it is because
leaders of the
company make
decisions to involve
employees in different
processes which are
concerned with
decision making. Final
call will be of the
leader but it will be
taken as per the data
that is collected by the
team.
Employees tend to get
more motivated as
they are allowed to be
a part of a decision
making process
They also feel more
valued because of the
diversified nature of
leaders.
Time consumed in the
decision-making process
is lot also the potential
of candidates for taking
decisions does not meet
with the level of
expectations (Kohnová,
Papula and Salajová,
2019).
Transformational
leadership
Leaders’ works with
this approach have a
different mindset And
that is to define their
vision to their
employees. With this
approach they form a
positive culture for
their company.
Due to the focus and
vision of leaders
employees see
themselves as their
role model.
Because of better
interpersonal
relationships they are
able to keep their
employees motivated
(Janiesch and
Kuhlenkamp, 2019).
Employees do not work
ahead until they have
gained the approval of
their leaders.
Also developing a
supportive and positive
environment such as this
is difficult for leaders.

Transactional
leadership
Leaders working on
the basis of this theory
try to bring order and
structure in their
business. Under this
form of leadership
employees tends to
develop their skills
easily because of the
structure and
environment of
business. This is
because they use
mediums such as
rewards and
punishment as
indicators of business.
Short term and long
term goals are clearly
defined.
Other than this
management clearly
defines what will be
the rewards for
achievement of goal
and what will be the
punishment for
meeting up their goals.
Security of employees
as they are clear which
reduces surprises and
expectations about
anything.
Leaders working with
this approach makes
flexibility and
adaptability very
difficult.
Employees feel like
followers instead of
leaders or innovators.
Any sort or type of
initiative that is taken on
a personal level is not
rewarded.
Many of the employees
do not feel comfortable
because of the rigid
work environment.
Suitable style of leadership for hotel Hampton is transformational as it allows leaders to adapt
new things with time and being in a service sector management of Hampton has to work with
constant and right nature of change so that they can keep attracting potential clients for their
business and achieve growth (Dörndorfer and Seel, 2017).
Recommend a suitable leadership style that helps them grow and overcome the challenges posed
by the business environment.
Transformational style of leadership is that style which will help them to achieve growth and
overcome challenges that are assessed by environment of business. The reason behind this is that
they have to continuously transform their strategies and decisions so that they can improve the
conventions of company. Leaders at Hampton allot employees with tasks that are basic and
assess them on the basis of its completion but they do it by keep pushing them so that they do not
get into their comfort zone and start to feel relaxed as this will make them lose their creativity or
fast pace of working because of which most of the times it will result in delay of work.

Whenever employees start their work leaders at hotel will give them a list of task that needs to be
completed soon or before the deadline. The level of difficulty of tasks is set at easy as first then it
gets difficult for them with time as they wants to make them overcome the challenges that keeps
coming in their line of business and they believe that with this approach they will be able to learn
of few skills which will help them at times like these. Hotel Hampton wants to achieve growth
which is why this style of leadership is suitable for them. This is because they have to improve
the motivational level of employees to enhance their capabilities. It is important that they set up
right guides in the company so employees work with right approaches and get right exposure
which will help them to take on few more responsibilities (Fernandes, Sousa-Filho and Viana,
2021).
The Responsibility, Response and Obligations in their Ethics and Social Responsibilities in the
processes
Many of the business has taken up initiatives for CSR that sometimes are on their own or
sometimes it is taken by pressure that is build up around the market. there are many benefits to
this factor as they will get the chance to generate more returns on their investment. It is in the
nature of businesses who deals in service sector to serve with ethics and live up to their
responsibilities. For instance with this they can improve their awareness in market through which
customers will become more loyal. There are different form of responsibilities that they have to
cater to everyone such as millennial have started a demand for green hotels which is a
sustainable responsibility. They are even ready to pay more for these services if they are
introduced in the right manner. If they practice with this services customers will rule out small
errors. Other than that they have the responsibility to support minor groups which helps them to
make a contribution in cause related issues. They can meet the social obligation of supporting
different communities such as LGBT. This will help them to create and form novelty of
customers (Belás, Kmecová and Čepel, 2020).
If they are successful in meeting up these obligations, responsibilities then with
customers they will be easily able to gain the support of employees and retain them for a long
period of time as many people wants to be a part of that organization who supports them. other
than that they will be satisfied with their work and it will give them high level of satisfaction. In
order to be counteractive and reduce these sort of issues hotels such as Hampton are making
investment in different areas such as programs of management which are more diversified. This

creates more benefits for them as by contributing more in the areas of social development such as
charities they are able to see development in the aspect of engagement of employees. With the
help of these activities Hampton can ensure to form and develop a high performance work
system. It is important that they take initiatives which are energy resistant such as low
consumption of water by low flow showerheads, fixtures in bathroom that leads to efficiency of
water and it helps to save it. Many of the competitors of business have invested in areas which
are concerned with innovative and technological measures. This will make them easy to
convince green customers and growth their strength which will be beneficial for their business. It
is important that initiatives taken by them to indulge in these activities must be done without just
keeping focus on earning more money. This is because many of the company takes this as a part
of marketing tool which leads to issues in future as they face severe damage in the reputation
established by themselves and lose many customers who stayed loyal to them (Aloshyna and
Kozenkov, 2018).
Reflection
After conducting the research of market specifically for service sector in which hotels
operate I learned that in order for Hampton to be successful and keep their share in market they
need to continuously analyze the forces of market which can affect their business or which can
turn out to be positive for them in right manner. This way they will be able to make decisions
that are right for them and will make their way on to the path for growth. They need to analyze
their strength and use it to reduce threats and claim those opportunities rightly through which
they can reduce their weaknesses. This will help them to focus on introducing right things that
and bring them into their facilities which will help them to attract new form of customers. I
understood that this sector of business manages their operations on the basis of satisfaction they
offer to their customers which if missed out by any chance will create negative image at high
level for them in market and that way they will lose out many customers. This is directly
interrelated with the goodwill of business and once the negative word of mouth is spread they
will never be able to go back which will ruin their business. I learned that it is important for
leaders of company to assess a suitable form of leadership which matches their personality and
which is suitable for the business as per the environment and culture they have set so that they
can form the decision making process as per that. It will be only successful if they do it in the
right manner if this is done with right tactics then with just overall monitoring leaders can focus

on other important areas such as expansion or explore other options which can be viable for
them. This is done so that they can achieve goals for their business and give the employees a
chance to build their career by providing them with ample of opportunities and guiding them to
the right path in their career. Other than these things I was able to understand that it is important
for this sector to open up their business where people have urge or high level of curiosity in their
mind to visit the place which is also known as holiday destination or vacation spot as this will
make sure or increase their chances of getting success as they will be in the tourist spot which is
good for them. Although this brings another thing and that is to compete with high level of
competition which if not done carefully all their business will go to them. They need to make
sure to enroll themselves in activities of CSR with a motive of making a donation to society. This
will help them to automatically improve their image.
CONCLUSION
From the above studies it has been assessed that company needs to conduct analysis on a timely
manner so that they can understand the whereabouts of market and things that are demanded by
clients so that they can work on them in order to bring them into action as this way they will be
able to make sure that they meet their needs and provide them high level of satisfaction. Apart
from that they need to make sure to use right form of strategy and style of leadership in order to
achieve growth.

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