Swot and Pestle analysis of Premier inn

This report provides a detailed analysis of the strengths, weaknesses, opportunities, and threats of Premier inn. It also examines the impact of Pestle factors on the company and evaluates their response to challenges in the business environment.

Individual report

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................4
Swot and Pestle analysis of company.........................................................................................4
Evaluation of how the changes in Pestle factors has influenced opportunities and threats. How
company is using their strengths to negotiate threats and weaknesses ......................................6
Compare and contrast different styles of leadership. Comment if the leadership style is
appropriate or not........................................................................................................................7
Recommend a leadership style that help them grow and deal with all challenges posed by
business environment. Justify your choice using appropriate literature.....................................8
Comment on the responsibility, response and obligations in their ethics and social
responsibilities in context with chosen business using an evidence from research....................9
TASK 2..........................................................................................................................................10
Reflection report........................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................11
......................................................................................................................................................20

INTRODUCTION
Business environment is defined as the collection that involves both internal and external
factors like employees, clients, social trends and many more. In context with these certain
factors, they create an impact on all functions of organisation. There are different features of
business environment like it is very complex in nature and at the same time it is dynamic. It is
very important for an organisation in terms of responding to a strategy. In context with
leadership it means to motivate people in order to achieve goals and objectives. Business
environment never remains same in organisation and in order to deal with them leaders are been
required so that they feel encouraged(Contractor and et.al, 2020). The below report is based on
hotel Premier inn. It is a British hotel chain and is one of the largest brand of hotels. It was
founded in 1987 by Whitbread. They are operating in number of locations like airports, city
centres and so on. The report involves SWOT and PESTLE analysis, changes in factors
influenced opportunities and threats, different styles of leadership, suitable leadership style.
Responsibilities, response and obligations followed by a reflective report.
TASK 1
Swot and Pestle analysis of company
Every hotel chain has various strengths and weaknesses through which they identify their
opportunities and deal with threats. In context with hotel Premier inn it is been explained as
below:- Strengths:- Premier inn hotels is one of the largest hotel chain who has always offered
great deals to customers who book rooms online. It becomes a strength for them as they
built up better customer satisfaction. The hotel has established high reputed brand image
and is been considered as the best UK economy budget hotel chain(Betti and Sarens,
2020). With respect to effect of Brexit on their hotel, it provided them an additional
opportunity to grow as the exchange rate was been beneficial with the foreign clients. Weaknesses:- The major weakness of Premier inn was their competitors because they
faced intense level of competition like with respect to hotel Travelodge. Another
weakness was that their global presence was not much effective as they were been
considered as international hotel chain and is one of the largest hotel. They were

operating in very less countries. The main weakness that arise was due to the COVID
pandemic as there was a high risk in travelling to other cities so their growth got affected. Opportunities:- As the organisation made good level of entry in Germany so they were
getting the opportunity to enter into Republic of Ireland. Due to the impact of COVID
pandemic it was not just creating negative impact but was also providing various
opportunities using that period of time in maintaining their hotels and renovating them.
So, that it leads to better improvement in their hotels. Threats:- They has the threat because of their other competitors in budget hotel chain like
Easy hotel, Ibis and many more(Halbert and Ingulli, 2020). Due to Brexit the hotel
investment which was been done was leading with a drop off and created an uncertain
business environment. They were having the threat that if UK fails to implement trade
agreements with European union in order to allow migrant labour.
Pestle analysis:- Political factors:- Due to the impact of COVID pandemic the hotel industry faced a
major negative impact. As there was ban on all travels through which the hotel faced loss
in their economy. With respect to Brexit, new tariffs were getting changed it was
affecting their cost of materials. The restrictions with respect to immigration became a
threat for them. Premier inn was facing the risk in context with disruption in their supply
chain in relation with stockpiling. Economic factors:- In the hotel industry they can face lot of impact on economic factors
so with respect to after the situation of Brexit, they faced a fall of 40% in their overall
profit and were reaching at the worst stage(Oyewobi and et.al, 2020). Due to the
uncertainty of Brexit their bookings were been cancelled especially who were outside
London. Pound sterling got reduced to 20% and with respect to current volatility it
influenced the cash flow and created complexity in organisation. Social factors:- With respect to social factors the COVID pandemic has affected them a
lot because people have faced huge losses in their economy so now when they travel they
look for cheaper rooms so the main competition for premier inn was Airbnb as they were
offering various type of rooms at low rate. Technological factors:- In today's world there is major impact of social media and
advanced technology. People who travel can even make or break companies reputation.

So, with respect to hotel premier inn, the social media reviews and blogs were affecting
their reputation. Legal factors:- Due to COVID pandemic the international travel was been imposed by
government and were reducing their demand. They were facing servers Brexit issues due
to changes in employment legislation. All changes in compliance responsibility were
creating high pressure on hotel.
 Environmental factors:- In terms of waste elimination the government has imposed strict
rules with respect to it(Sołoducho-Pelc and Sulich, 2020). Due to this various actions
need to be taken by hotel so that all waste can get removed from activities of guests. With
the help of CSR activities, it became easier for them to access all resources and capital.
Evaluation of how the changes in Pestle factors has influenced opportunities and threats. How
company is using their strengths to negotiate threats and weaknesses
The organisation faced many changes due to the impact of both Brexit and COVID and
influenced all factors due to which organisation opportunities as well as threats were been
affected. As in context with economic factors it was seen that their profit were been reduced to
about 40% due to the effect of Brexit. As their economy was getting affected; the hotel bookings
were getting cancelled and continuous loss was been done. It has influenced opportunities and
threats because they were reaching at the worst stage and the opportunities which they were
about to get like in the form of taking an advantage of low inflation rate.
With respect to political factors as the changes were done with respect to changes in
tariffs and ban on all travels their opportunities were getting influenced as in context with
serving foreign travellers with the help of amazing services they can give in the form of
accommodation through which they can increase their revenue(Jiang and et.al, 2020). It has
influenced their threat due to increment in their import costs.
In context with social factors, as the changes were getting occurred due to intense
competition so it influenced their opportunities as to expand their businesses in the form of using
more talents. Due to such pandemic people don't have much budget and income so they faced
threat as individuals were showing any kind of interest and it influenced in the form of facing
different challenges to design particular services.
In terms of technological factors as many changes are done in technologies so they were
having the opportunity in offering customers a sort of compensation in order to manage all

online reviews. Due to Brexit and COVID pandemic many changes were been done in terms of
techniques so it influenced their threats as they were facing various challenges.
In context with legal factors the international travel was getting imposed, changes been
done in the form of employee legislation so with respect to this hotel opportunities and threats
were getting influenced(Vo and et.al, 2020). They were facing the threat as in terms of their
regular expenditures been done and due to certain changes their policies were getting affected
but at the same time they had the opportunity to use the robust mechanism.
With the help of renewable technology they had the opportunity to get access to all type
of CSR activities and built up a better reputation and brand image.
Compare and contrast different styles of leadership. Comment if the leadership style is
appropriate or not
Basis Autocratic style Democratic style Laissez faire style
Task urgency It allows a leader to
provide accurate
decisions been made
as fast as possible.
They remove all type
of barriers at the time
of its occurrence.
It takes more time in
analysing overall
situation and it can be
only followed if there
is much time.
This style of
leadership is only used
when people have
good amount of
knowledge and
experience and
management can trust
them.
Level of danger When there is high
level of danger then in
comparison with other
style of leadership this
is the most preferred
one in relation to give
direct orders rather
than doing discussion.
This leadership style is
not effective to use in
dangerous situations if
there is not much time
been left(Obisesan and
Olayide, 2020).
To depend on this
leadership style is not
good in dangerous
situations as lot of
supervision is required
and influence too.
Advantages It is beneficial because
leaders maintain
As discussion is done
with many people so
They motivate other
people in order to

orders and they can
make decisions at any
time they want without
discussion. They do
not feel any kind of
burden.
they can get more
solutions and it also
creates a situation of
respect for them
perform better and it
is really important for
an organisation to
encourage them.
Through this a good
relation is also created
with employees.
Disadvantages Employees may feel
that they are not been
involved in
responsibilities and in
certain situations they
may feel that to not
take orders from
anyone(Ramsauer,
2020).
It is very time
consuming and it takes
lot of time to reach at
final decision.
As whole group
decides to make a final
decision arguments
between them get arise
because there is no
leader who can make a
decision and another
disadvantage is that
there is no one who
can supervise them.
In context with hotel Premier inn the best leadership style is the autocratic style of
leadership. As in the hotel demands can change at any point of time so it is very important yo
take final decision as soon as possible. In comparison with democratic and laissez fair style of
leadership who group is been involved so it is not possible to take decision fast in relation with
autocratic style. Sometimes in hotel industry it becomes necessary to keep all authority within
owners also because fast decision making is very important. With the help of autocratic style
things are done in a very quick manner and all employees working in hotel listens to the leader
rather than ignoring them.
Recommend a leadership style that help them grow and deal with all challenges posed by
business environment. Justify your choice using appropriate literature
It has been recommended that hotel Premier inn should follow democratic style of
leadership instead on using only autocratic style(Newman and et.al, 2020). In context with

democratic style it is defined as all members involved in the group participate in making
decisions and they are been encouraged to share their ideas. As there are many challenges that
hotel industry may face with respect to business environment. Due to such challenges it is not
possible to rely upon one decision that a final leader makes. So, employees should get involved
while making decisions so that various ideas and opinions are been shared ad with respect to all
those decisions final one is accepted.
Hotel faces many kind of challenges like in terms of cleanliness, technology, good
services and experiences. Due to such challenges it is needed that appropriate style of leadership
is followed and the most effective one is democratic style. As when hotel has to use good and
advanced technology, better experiences so each employee is needed in the organisation.
Through this the most important thing is effective level of communication(Opeyemi and Ajeh,
2020). In the hotel industry creativity is very much needed and it is only possible with the help
of democratic style. As when workers share their ideas and opinions more creativity gets
enhanced. The reason behind the usage of democratic style in hotel Premier in is been explained
as below:-
As per the view point of Brandon Gaille, 2018, democratic style helps in solving difficult
problems that may arise at any point of time. As it is not possible that leader alone solve all
problems so they require participation of employees and initiate open line of communication. It
motives employees to be creative as through this style leaders encourage their workers to think
something creative so that they decisions which they were using earlier like usage of traditional
methods. With the help of democratic style job satisfaction within workers gets improved as
leaders alone don't make a final decision; they provide equal role and responsibilities to all
leaders.
As per the view point of Yashi Srivastava, 2020, democratic style is efficient because it
leads to effective and deeper relationships within whole organisation(Loucks and Ozogul, 2020).
The another reason behind using democratic style of leadership is that leaders get to know
various ideas for solving all problems and more creative opinions.

Comment on the responsibility, response and obligations in their ethics and social
responsibilities in context with chosen business using an evidence from research
In context with hotel premier inn they had many responsibilities, response as well as
obligations in context with their ethical and social behaviour. They supported the society very
well by following all roles. It is further been explained as below:- Responsibilities:- Hotel Premier in one of the largest budget hotel chain so they has the
responsibility that they serve society in a very sustainable manner. In terms of operating
responsibly and been sustainable in nature they followed different things like stop food
waste day, caring about all customers and serving up tonnes of food. With respect to
serving of food they followed their responsibility by delivering it to Fare share which is a
charitable organisation(Lähdeaho and Hilmola, 2020). It was both distributed to Fare
share and also to other people who needed it. In context with providing care to all their
customers they decreased the usage of unnecessary single use plastics as it was
considered as the major issue with both guests and environment. Hotel Premier inn was
the first hotel who removed the usage of plastic straws in comparison with other hotels.
The hotel was also following the responsibility of providing high and effective quality of
food and improved the nutrition level. With respect to society they reduced sugar and
calories in their food. The another effective responsibility which they followed was with
respect to that they decreased waste from their hotels. They signed up to refill and
provided free water bottles. Response:- As hotel premier inn, fulfilled all their responsibilities with respect to both
ethical and social responsibilities, they also gave response in positive way. They
responded in such a way that they established solar panels in their hotel, used LED lights
and heat recovery(Kuzieva, 2020). It was necessary for them to respond to society in
efficient way. The guests expect high quality food, proper cleanliness and good level of
nutrition so with respect to this they responded by providing them all such facilities and
attracted their guests.
 Obligations:- In context with all obligations, the hotel was for everyone in context with
social behaviour as all employees were considered as a part of their organisation and
assured that guests are getting respect and while visiting hotels staff members are very
much friendly with their audiences(Zhenwei Qiang, Wang and Xu, 2020). They also

provided effective training and development programs through which they enabled their
employees in developing their career.
TASK 2
Reflection report
From the above report I have experienced that in situation of COVID pandemic and
Brexit, hotel premier inn faced many issues like with respect to their profitability it was getting
reduced. I gained good and efficient knowledge as hot hotel deal with all challenges that arise
due to business environment and during the phase of pandemic. It was a very dangerous situation
for hotel so with respect to this I analysed that they used good style of leadership as during the
phase many harmful situations were arising so it was needed that decisions must be made as soon
as possible. I have experienced that hotel deal with all changes been happened in good and
efficient way and through their leadership style all challenges were getting solved in a proper
manner. According to me the hotel should apply democratic style also as it would help them in
better way.
CONCLUSION
From the above report it has been concluded that during the phase of Brexit and COVID
pandemic many harmful situations got arise especially in context with hotel industry. As
travelling to other cities were getting banned so industries had to face many loss. It is also been
concluded that organisations had to face many challenges which arise due to business
environment like in context with advanced technology, cleanliness and many more. It was
required that hotels must deal with in an efficient way so with respect to this hotel should apply
democratic style of leadership so that each employee gets the chance in giving their ideas as well
as opinions and leaders can reach to a final decision and get more creative solutions.

REFERENCES
Books and Journals
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Oyewobi, L.O., and et.al, 2020. Analysis of the South African construction industry business
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Zhenwei Qiang, C., Wang, H. and Xu, L.C., 2020. Heterogeneous Effects of the de jure and de
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ONLINE
Gaille,2018, Advantages and disadvantages of democratic leadership style
[Online] Available Through:
<https://brandongaille.com/19-advantages-and-disadvantages-of-democratic-leadership-style/>
ONLINE
Srivastava, 2020, Democratic leadership style: Pros and cons, examples and how to make it work
[Online] Available through:
<https://www.betterup.com/en-us/resources/blog/democratic-leadership-style-pros-cons-
examples-and-how-to-make-it-work>