SWOT and PESTEL Analysis of Premier Inn

This assignment evaluates the SWOT and PESTEL analysis of Premier Inn, discusses the impact of changes in PESTEL factors on opportunities and threats, compares different leadership styles, and explores the responsibility and obligations of Premier Inn in ethics and social responsibilities. The assignment also provides recommendations for leadership to grow and overcome challenges.

CONTEXT OF BUSINESS

TABLE OF CONTENTS
TABLE OF CONTENTS..............................................................................................................2
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
1.) Evaluation of SWOT and PESTEL analysis of company......................................................3
2) ways in change in the PESTEL factors has influence on the opportunities and threat..........4
3) comparison of leadership style and appropriate leadership style for the company................5
4) Commendation of t of the leadership to grow and overcome the challenges..........................7
5.) Responsibility, Response and Obligations in their Ethics and Social Responsibilities in
Premier Inn..................................................................................................................................7
6. Reflection.................................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business environment is collection of internal and external factors that affect a firm’s
ability to build and maintain successful business and relationship with their stakeholders.
Business environment and leadership plays a vital and important role within an organization that
can effect growth and development of organization. There are various kinds of internal and
external factors that can directly impact working of an organization. Impact of internal factors
can be analysed with the help of SWOT analysis and impact of external factors can be analysed
with the help of PESTLE analysis. This assignment will lay emphasis upon SWOT and PESTEL
analysis, ways in which organization use their Strengths to negate Threats and Weaknesses
affecting their Opportunities, different leadership style, ethics and social responsibility, and
reflection,. Organization chosen for this report is Premier Inn which is a British hotel chain that
was founded in 1987.
MAIN BODY
1.) Evaluation of SWOT and PESTEL analysis of company
SWOT analysis
Strength
 Premier Inn has the strongest presence in UK,they were having 60,990 room till the end
of 2015 and they have made their brand a largest hotel group ion the London with in the
term of bedroom count (Akkaya., 2019).
 The profitability of the hotel increased by the 7.4 % till the end of 2017 and they have
generated the profitability of £468 million. This shows how string they are financially
and expanded their business effectively.
Weakness
 Brexit memorandum affect their business, and they loses their loyal customers as well.
 Limited global presence is the weakness of the Premier Inn, they are operating their
business in limited countries.
Opportunities
 Premier Inn have new market opportunities because there are various countries like
china, Indonesia etc can create new opportunities.
 Innovation in the technology can provide competitive advantages to Premier Inn.
Thereat

 Competitors of the Premier Inn are the biggest threat, it is necessary for the companies
leaders and managers to come up with te new idea to take competitive advantages.
PESTEL Analysis of Premier Inn
Political
Brexit memoranda affect the companies profitability because they lose their loyal
customers and presence in the European countries.
Economical
Economics cries like COVID- 19 impact the business of Premier Inn because during the
lock down entries Hospitality industry was close and hotel like Premier Inn affected from it
mostly (Budisusetio, Sule and Febrian., 2019).
Social
The luxury services provided by the Premier Inn in the reasonable prises are helping to
create good image in the customers mind.
Technology
Premier Inn has huge advantages from the technology, and they are using various
technology tool to satisfy their customers and create good experience for them.
Environmental
Experiment al factors has huge impact on the Premier Inn, it is helping them to create
good image in their customers mind.
Legal
Premier Inn operating their business internationality and domestically and thy are having
licence to run their business, and they are following all the governmental polices in their
business.
2) ways in change in the PESTEL factors has influence on the opportunities and threat
Changes in the factors has huge impact on the profitably and performance of the Premier
Inn. Recently there are many changes in the different different environmental factors that have
been discussed in the above Pestle analysis.
Political factors
Political factors like Brexit affect the business of the Premier Inn because they looses
their customers who were loyal to them. They leave the EU countries which means exit from the
market affect their performance. On the other side having good relationship with the political

parties can creating opportunities to explain their business effectively and take competitive
advantages.
Economic factors
Economic factors like COVID affect their business mostly because during the lock- down
their business was close and rent and other expenses affect their profits, and they make losses.
On the other side it also creates the opportunities for the Premier Inn because they were able
steal I the other competitors market shares who have close their business permanently
(Drewniak, Drewniak and Posadzinska., 2020).
Technology
Technological factors provide competitive advantages to the Premier Inn, they can have
more opportunities if they follow the trending technology at their workplace and it can include
the use of social media and digitization of the business activities. On the other side technology
become threat for the Premier Inn when technology rapidly change and it is not possible for the
Premier Inn to implement new trending technology all the time.
Strength to negate b threat and weakness and opportunities
Premier Inn is using their strength to take the competitive advantages and overcome the
threat and using the opportunities overcome the weakness. The strong financial position in the
market is helping them to invest in the market, and they can overcome from the losses. They are
utilising their financial resources to overcome the impact of COVID and the Brexit because both
affect their business. They are also re innovating their rooms make it more effective but for that
they h are spending huge amount but it is helping them to overcome the threat of the competition
and they can able to take competitive advantages.
Similarly, changes in the threat and weakness are creativeness in the busies opportunities
for the Premier Inn, and they are able to achieve the success in their business and take
competitive advantages in the market where they are operation their business.
3) comparison of leadership style and appropriate leadership style for the company
Laureateship styles are classified into the personality of the person and their behaviour
while leading the groups. There are various leadership style with the effective leadership skill
that can be adopted buy the leaders of the Premier Inn to be more effective in their work, and
they can lead the employees effectively toward their work (Kane., and et.al., 2019).
Democratic leadership

Democratic leadership is one of the most effective leadership style among the all other
leadership because this allows the lower level employees to work on the higher level for the
sometimes so they can take the higher positions in the future. It is effective leadership style
because leaders also give chances to the employees to work on the higher level, and they also
participate in the decision making of the company that helps to motivate them.
Autocratic leadership
Te autocratic leadership rarely effectually and it is inverse of the democratic leadership.
Leaders who adopt this leadership take the decisions for the company without taking the input
from anyone to the direction, and are expected to adhere to decision at the times and pace the
stimulated by the leaders.
Transformational
Transformational leadership is always "transforming" and improving upon the company's
conventions. Employees might have a basic set of tasks and goals that they complete every week
or month, but the leader is constantly pushing them outside of their comfort zone. This is one f
the the effective style that enable the employees to be effective in their work, and they
continuously get the challenges, so they can improve their abilities and work with their full of the
potential within the organizations and helps company to be successfully.
Situational leadership style
Situational leadership style is the most effectively and hard to adopt among all the other
leadership (Larjovuori, Bordi and Heikkilä-Tammi., 2018). The situational leadership consist of
various r leadership that leaders adopt according to the situations at the workplace. It is necessary
for the leaders and mangers to develop and learn all the leadership style, so they can collectivity
uses the situational leadership style and take the competitive advantages.
Best leadership for Premier Inn
Leaders of the Premier Inn can use the transformational leadership style because they are
facing various problems in their business, and they need the support of their employees and if
their employees are effective and they can give their best in the task. Then it will help them to
achieve success in the business. The Transformational leadership is always "transforming" and
improving upon the company's conventions. Employees might have a basic set of tasks and goals
that they complete every week or month, but the leader is constantly pushing them outside of
their comfort zone. This is one of the the effective style that enable the employees to be effective

in their work, and they continuously get the challenges, so they can improve their abilities and
work with their full of the potentilla within the organizations and helps company to be
successfully.
4) Commendation of t of the leadership to grow and overcome the challenges
In the above discussion there are some leadership that have been recommended but one
of more leadership that can be used by the leaders of the Premier Inn is the situational
leadership which can be effective for the Premier Inn to grow in the market, and they can also
overcome the challenges they are facing within the company. Leaders of the Premier Inn can use
the different different leadership style in various situation because situation style is consist of
different leadership style and it can help company to overcome the situation they are facing
(Rzepka and Bojar., 2020). Similarly, it can also help the leaders of the Premier Inn to be more
efface and grow in the business the situational leaders have the flexibility in the adoption to
anything which is good for the Premier Inn and the situational leaders are helpfulness in the
incensing the productivity thorough their skills their communication. They can use their effective
communication skills to motive the employees and management skills to control and give the
right directions to the employees. A situational leadership shows the quality of the good leaders
that will influence the other employees who are working understand them, and they will also
give their best to become the same as their leaders, and they will also learn many things that will
directly affect the performance of the Premier Inn ion the market.
5.) Responsibility, Response and Obligations in their Ethics and Social Responsibilities in
Premier Inn
Social responsibility and ethics are one of the most important factor which is required to
be focused upon by organization and for hospitality industry. Social responsibility and ethics
helps in maintaining a balance between environment and welfare of society. It further helps
organization in maintaining or developing positive brand image in front of customers.
Responsibility: It is one of the main and primary responsibility of Premier Inn to focus upon
reducing their carbon foot print so that its negative impact upon environment can be reduced.
This can be done by them by focusing upon reducing energy consumption and by using
environment friendly products and packaging. Premier Inn can focus upon installing reusable
energy system so that electricity consumption can be reduced like solar water heaters etc. it is
another responsibility of Premier Inn to focus upon reducing wastage so that they can positively

contribute towards environment. This can be done by adopting 3R i.e. reduce, reuse and recycle.
Premier Inn also has social responsibility towards society. This responsibility can be fulfilled by
them by focusing upon expanding their business and by creating more and more job
opportunities. Fulfilment of these ethical and social responsibilities can directly boost overall
reputation of Premier Inn.
Response: fulfilment of social responsibility and adoption of ethical ways of running business
can help Premier Inn to get positive response of customers and can further help them to remain
loyal to the organization. In order to increase customer base and loyalty of customers Premier
Inn need to give quick and positive response to customers demands and needs.
Obligations: Ethical and social responsibility further help organizations like Premier Inn to fulfil
their ethical, legal and social obligation that they have towards their stakeholders like customers,
employees etc. One of the main Legal obligation of Premier Inn is to employee and fulfil social
responsibility and inform regarding their CSR initiatives. Another obligation of Premier Inn is to
sustain sustainable development under principles of sustainability.
6. Reflection
A lot of knowledge and theories involvement which i have understand and that involves
raised operations and working which is going to be included. Leaders must be able to analyse the
workforce which is present under them so that they would be able to use the right methods and
strategies to be able to gain higher capabilities. Responsibilities and obligations are present in all
businesses but they must be overcome and risks have to be implemented by the leaders and
managers so that there are higher productivity which would be existing (Koniagina and et.al.,
2020). Ethical considerations must be existing in the company in order to make sure that the
workforce is having the right working environment and quality of the products and services
would be raised. Premium Inn is not having fixed timing for the workforce which is a great
drawback but with the right leaders in the company there would be better operations and working
which is immediate. Challenges are present fin all the businesses but they have to be well
analysed and worked forward for so that there would be better operations and working which is
good for the image and operations. Opportunities are present in the organization and they must
be worked towards for and that is going to make the effectiveness of the company be higher.
Styles are unique for the leaders and managers which i have gathered from the report above that
use of right literature is very important and that is going to make the business environment be

improved effectively (Yen and Lin, 2020). Response of the working and efficiency of the
organization must be highlighted while planning so that the company is going to have higher
functioning and gain competitive edge as well. Processing and responsibilities are high of
managers as well as leaders in firms which i have analysed and they have to be well distributed
so that the processing of the business is going to be smooth and make sure that right working is
present.
CONCLUSION
It is analysed that there must be efficient working and application which would be
required in order to be able to gain the right attention. Internal working of the organization get
impacted from the external and internal factors which businesses must analyse in order to be able
to make sure that right actions are being taken. Development of the company has to be present
with time which would make sure that running of the company is smooth and efficient in the
working. In global context, firms have to make sure that the nature of organization is flexible in
order to be able to gain the right attention and operations which is a very essential and crucial
factor. Management is deciding the right working with the right operations in order to be able to
make certain that right funding and working is present. Designing the plan of action is important
so that there would be higher functioning and make the reputation of the company be raised.

REFERENCES
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