SWOT and PESTLE Analysis of Holiday Inn

This document provides a SWOT and PESTLE analysis of Holiday Inn, evaluating the changes in Pestle factors that have influenced the opportunities and threats for the business. It also compares and contrasts different styles of leadership and recommends a suitable leadership style to overcome challenges in the business environment.

Context of Business
Assignment

Table of Contents
INTRODUCTION...........................................................................................................................1
Perform a SWOT and PESTLE analysis for chosen company....................................................1
Evaluation of changes in Pestle factors that has influenced the opportunities and threats for the
business........................................................................................................................................3
Compare and contrast the different styles of leadership. Comment if the leadership is
appropriate for company..............................................................................................................4
Recommend a suitable leadership style that help to grow and overcome the challenges posed
by business environment..............................................................................................................6
Comment on the responsibility, response and obligations in their ethics and social
responsibilities in process at chosen business..............................................................................7
Reflection report on experience in writing a report.....................................................................8
CONCLUSION................................................................................................................................9
REFERENCE.................................................................................................................................10

INTRODUCTION
In business environment there are different types of businesses are established for the
purpose of running their performance in competitive environment. The management should be
analysis all functions and factors that affected the business negatively (Krizanova and et.al.,
2019). To understand about business environment and changing factor Holiday Inn has been
selected that is one of the world's largest hotel chain with 1,173 active hotels and over 214000
rent-able rooms. The hotel is founded on 1August, 1952 by Kemmons Wilson. The management
of this hotel provides range of products and services by understanding customer's demand and
provides the products accordingly. The headquarter of hotel in Denham, Buckinghamshire, UK.
The report covers SWOT and PESTLE analysis, how the changes in pestle factors influenced the
opportunities and threats, comparison and contrast between different style of leadership, suitable
leadership style that helps and grow the challenges, and social responsibilities in chosen
organisation.
Perform a SWOT and PESTLE analysis for chosen company
SWOT analysis: This is a model which use by organisation and individual to analysis
the strength and weakness of their business. This can help to take the decision accordingly in
multiple task and developing the activities. The swot analysis of Holiday Inn is explained below:
Strength Weakness
 Holiday Inn's brand recognition is high
in the market that owns presence in
many countries.
 The business has started to develop and
create market place in the Asian region.
 Management using effective customer
retention schemes.
 A high level of products and services
are provided by management.
 The organisation is overdependent on
the US market.
 High level of debts arises in
organisation.
 Lack of flexibility due to large size of
market (Huertas-Valdivia, Gallego-
Burín and Lloréns-Montes, 2019).
 Changes in business environment.
 Changes in currency.
Opportunities Threats
 Formation of strategic alliance.  Lack of talent personnel.
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 Conduct research and development.
 To develop the business in international
market
 Introducing new products and services
 Establishing mid level budget hotel and
operate the business activities
accordingly.
 Occurrence of pandemic
 Threat of terrorism and political
stability.
 Changing in climate and business
environment.
PESTLE Analysis: This is a framework which uses by industry to analysis the
environmental condition of business. By using this, individual develop their understanding that
which factor might be affect the business. The PESTLE analysis of Holiday Inn is defined
below:
Political factor: This involves tax rates, changing in government regulation, stability and
others that can affect the business. After Brexit, the government of UK has changed the
regulation for business person that affected the business negatively as reduction in number of
customers and productivity.
Economical factor: This consider inflation, interest rate, economy of country, GDP and
others that affect the business. Pandemic (Covid-19) in whole world created the obstacles for all
businesses as government has stooped transportation and hotels that impacted on Holiday Inn
negatively. Due to this, rate of employment and number of customers has been reduced.
Social factor: This consider needs and wants of customers, population growth rate,
health consciousness, lifestyle, and cultural barriers that affected the business. The management
of Holiday Inn use this factor in optimal way where it understand customer's demand provide the
Airbnb room with proper facilities. This influences number of customers and increase the
productivity (Fahlevi, Zuhri, Parashakti and Ekhsan, 2019).
Technological factor: This involves level of innovation, automation, technological
awareness, and R&D activity that has impacted on business. In situation of Pandemic,
management and all staff of Holiday Inn adopted the new technology where it provides digital
services and receive contact less payment that can help to provide the safety and increase
performance.
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Legal factor: All employment laws and regulations are followed by management in
order to run and operate their hotel continuously such as health and safety, equality and others
that build the confidence and increase performance.
Environmental factor: The management assures customers and government that they
follows the minimum wastages laws, reducing carbon emission and others laws that supports to
develop business.
Evaluation of changes in Pestle factors that has influenced the opportunities and threats for the
business
From the above discussed PESTLE analysis that consist political, social, economical,
technological, legal and environmental factors it has been evaluated that these factors are
important to analysis for any business organisation. This can help to know that which factors can
create the opportunities for business and which is threat for this. After knowing the threat,
management should make efforts to reduce them or convert in to strength. Below the evaluation
of all factors described as:
The political factor can be threat for Holiday Inn as changing in government regulation
and tax rates business activities can be reduced. For converting in to threat, management of
selected hotel is require to apply European regulation while running their business in their
country will help to grow their business more.
Due to economical factor rate of employment and ability to consumption by customers
has been reduced. Herein, management should provide better quality of food and proper safety of
rooms that can help to attract the large number of customers and attain the business goals. Thus,
threat can be convert in to opportunities (Fries, Kammerlander and Leitterstorf, 2020).
From the social factor Holiday Inn is getting the opportunity to develop their business
and grow the productivity. In this, management require to provide Airbnb rooms and hotel
services at lower cost that create the opportunity for entire business and helps to attain the
profitability by increasing number of customers.
Technology factor influence the opportunities as it prepare the food by maintaining
hygiene, organic and others. The management bring new services such as table ordering, digital
entry, contact less payment and better taste of food that develop the business activities in
changing environment and helps to attain the business goals (Gaganis, Pasiouras and Voulgari,
2019).
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Legal factor is also influence the Holiday Inn and create the opportunities as by following
regulation employees and customers feels proper satisfaction and give their contribution to grow
their business continuously (Cepel, Belas, Rozsa and Strnad, 2019).
The another factor environment is strength for Holiday Inn as by reducing wastages,
growing plant, and providing products according to climate changes customers feels happy and
make decision to grow their business continuously. This can help to attain the higher
productivity and profitability in changing environment.
Thus, company is using their strength for neglecting threats and weakness by formulating
effective strategies and managing the all business activities. This can help to increase the
business productivity by adopting new technology and providing the customer satisfaction
effectively.
Compare and contrast the different styles of leadership. Comment if the leadership is appropriate
for company.
Leadership is defined as art of motivating individual and group of people who understand
the needs of their employees and provide them right suggesstions. For organization it is
important to have effective leader who can understand the problem and provide the optimum
solution that can help to increase the business performance and productivity. In other words,
leadership is essential to being able and influencing the others.
Leadership style is explained as method of understanding problem, providing, directing,
implementing, and motivating the people at the workplace that can help to increase the business
activities. A leader is playing essential role in Holiday Inn that can help to increase business
activities and performance by managing all problems and challenges smoothly. If organization
has adopted effective leadership style then it will be opportunity for business to grow and attain
the higher productivity.
Explanation of different leadership styles
Autocratic leadership style: This is inverse of democratic leadership in which leader is
only one who make decision. In this, leader believes that he or she is the smartest person at the
workplace and decision are taken by them only. The leaders of Holiday Inn can use this
leadership style by making the self decision but in this, employees feels dissatisfaction which
affected the organizational productivity and profitability (Abasilim, Gberevbie and Osibanjo,
2019).
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Democratic leadership style: This leadership style is also known as participative
leadership in which all members and group shared their views and make the effective business
decision. This leadership is more likely to ask what the others think? In this, employer is
responsible to share the information and message with their employees that can help to increase
the business activities and performance effectively. By using this leadership style, leaders of
Holiday Inn delegate the message and information among working employees that can help to
develop the business performance and productivity. This affects the work and responsibilities of
employees by getting together and managing the performance effectively.
Laissez faire leadership: This leadership style is the opposite end of autocratic style in
which a leader attract the number of employees by keeping trust, and reliance on them. In this,
employees use their style to create, resource, and experience to help that can help to meet with
their goals and objectives. In relation to Holiday Inn, leaders can use this style to manage the
work and make the few decisions by maintaining appropriate workplace solutions. The
management also use this style for the purpose of developing their business by formulating the
effective decision and attaining the higher productivity (Frolova and Mahmood, 2019) .
Comparison between autocratic, democratic, and laissez faire style
Basis Autocratic Democratic Laissez faire
Decision taken by In this, no information is
shared by leader and all
decision made by leader
only.
In this, leaders share
the information with
employees and make
decision collectively.
In this, leaders have little
involvement in decision
making and affected the
team to make right
decisions.
Delegation of
roles and
responsibilities
The leader is responsible
for all roles and
responsibilities as it
does not delegate the
work between them
(Celdrana, 2020).
The leader is not
responsible for all
decision as it
delegates the roles and
responsibilities
between employees by
analysing their skills
and talent.
Herein, roles and
activities delegate
between employees as
per their skills and
ability that can help to
complete the goals and
objectives effectively.
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Opportunity/
threat
In case of adopting this,
can create the threats for
Holiday Inn as
employees does not get
ready to accept the
challenges that reduce
the performance.
This can be
opportunity for
Holiday Inn as by
involving employees
in activities challenges
can be accepted by
organization that can
help to increase
performance.
This can also be adopt
by selected hotel as it is
opportunity for
organisation where
employees ready to work
collectively and manage
their performance
effectively.
Recommend a suitable leadership style that help to grow and overcome the challenges posed by
business environment.
Democratic is recommended as suitable leadership style for Holiday Inn as it influence
the employees to work collectively by managing all functions and activities. This is important for
leaders to understand the problem which are pertaining at the workplace and bring the changes in
their performance that can help to complete the work and supports to attain the business goals.
The democratic style works best in situation where individual and group of people are skilled
and willing to share their knowledge. When people have plenty of time then they contribute,
develop a plan and vote the best course of action that can help to increase the business
performance by managing all functions and activities. By adopting democratic leadership style,
all employees feels comfortable and satisfied as they contribute in each activity and accept the
changes after sharing information (Grunberg and et.al., 2019).
For example, due to Pandemic all businesses are almost in situation of lower productivity
where management has decided to bring new technology, airbnb, table ordering and digital
booking and cancellation which created the challenge for entire business as how employees
accept this and how they perform with new process. In this situation, leader is only one who
share the information with all staff and get their view about this changes. The leader provides the
training and development programme to their employees and get ready them to accept the
changes smoothly. This build the confidence level and trust of employees who works at the
workplace and develop their performance by managing all functions effectively. The
management and leaders of such organization create an environment that generates relaxed
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atmosphere and foster cooperation. Herein, roles and responsibilities of employees are delegated
by management by analysing their skills and ability to work that can help to increase the business
performance and productivity in changing environment. The leader and employees develop their
understanding and skills in relation to particular study that can help to attain the business goals
and objectives (Celdrana, 2020).
Benefits of leadership style in overcoming the challenges
 By adopting democratic leadership style all employees works collectively and reduce the
chances of conflicts between them.
 Employees and employer bring pool of experience and opinion by sharing the ideas and
getting new thoughts to accept the changes.
 This allows employees to become more efficient by solving the employee's problem and
retaining the potential employees.
Comment on the responsibility, response and obligations in their ethics and social
responsibilities in process at chosen business.
Ethics can be explained as rules, values and beliefs of people that they keep on each other
and managing the all business activities. Ethics is the branch of philosophy that consider
systematizing, defending and recommending the concept of right and wrong behaviour. This
concerns matter of value, principles, and regulations which are important to apply at the
workplace and increase the performance. Social responsibility meaning individual and
organization have a duty to act in the best interest of their environment and society as a whole. In
society different behaviour of people are living that have different knowledge and skills used to
develop the business performance by managing all functions accurately. In relation to Holiday
Inn, leader is playing an important role as it conduct the environment analysis and bring the new
changes in their performance by accepting challenges. This is important for management and
leaders to understand their responsibility and give contribution in all activities. This can help to
increase the business performance and profitability by developing the skills and get ready to all
employees to work effectively (Arnold and Bowie, 2019).
In relation to Holiday Inn, responsibility of leader is to understand the problems which
are facing by employees and provide them optimum solution which can help to increase the
business performance in changing environment. Whenever organisation decided to introduce any
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changes then it needs to share with employees and know their opinion that can help to accept the
changes effectively and develop the business productivity (McCann and Sparks, 2019).
The response of employer in ethics and social responsibility is positive as democratic
leadership is adopted by management in their workplace where principles and moral values are
followed to develop the business activities. This can help to bring the changes and challenges
smoothly by managing all functions and providing the good results.
Obligation in ethics is considered as something that is require or compelled to do basis on
predetermined set of standard. In this, people are bound to follow the specific rules and
regulation which are formulated by management and supports to develop the business
performance. In relation to Holiday Inn, sometimes employees is require to follow obligation and
ethical standard which helps to bring the new services as per demand and increase the
productivity. For example, in selected organization all employees needs to come on time,
maintaining etiquettes, and following the principle for managing higher performance (Dartey-
Baah and Mekpor, 2020).
Reflection report on experience in writing a report
From the above discussion and explaining the situation of hotel I analysed that business
mainly depends on leadership styles as it supports to develop the performance. This was good
opportunity for me that my tutor has assigned me a project on leadership where I came to know
that what is my strength and weakness. As a student of college I interested in learning session so
I usually ready to attend seminars, taking part and leading the others that became opportunity for
me to lead the project and build a good team which can help to work along with me.
While researching I analysed that I have good communication and collaboration skills
which used by me to build the skilled and talented team to complete the specific project. My
problem solving skills was also good which used by me to listen and solve the problem of team
members who were involved in my project. This provided me good results as all team member
supported me to complete task and managing the good activities. I also analysed my weakness
such as language barriers and time management which was very important for me to handle the
project timely. During project I felt nervous as due to language barrier in initially was not able to
allocate the work between team. To solve this issue, I arrange the training programme which
helped to provide the learning session to team and build their confidence that they can perform
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their responsibilities effectively. This helped me a lot to complete the work and manage the
higher performance by developing skills and abilities of individual.
CONCLUSION
From the report it can be concluded that to run a business SWOT and PESTLE are
important framework which use by business industry to analyse the factors that might be affect
the business. The threats which arises due to affecting factors can be turn in to strength by
managing all functions. Leadership is the ability of inspiring the people and leading them for the
purpose of getting work done timely. Autocratic, democratic, and laissez faire are different
leadership style which uses by organisation according to business situation and managing the all
activities effectively. Democratic leadership is suitable for selected organisation as it helps to
allocate the roles and getting the work done effectively.
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REFERENCE
Books and Journal
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among the universities in Zamboanga City. Leadership. 11(7).
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Fries, A., Kammerlander, N. and Leitterstorf, M., 2020. Leadership Styles and Leadership
Behaviors in Family Firms: A Systematic Literature Review. Journal of Family
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McCann, J. and Sparks, B., 2019. The effects of leadership styles on innovative work behavior
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