Swot and Pestle analysis of Premier inn

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