Business Environment Analysis: SWOT, PESTLE, and Leadership at Hilton

This report offers a comprehensive analysis of the business environment surrounding Double-tree by Hilton. It begins with an introduction to the factors influencing business success, followed by a detailed SWOT analysis, highlighting the company's strengths, weaknesses, opportunities, and threats. A PESTLE analysis then examines the political, economic, social, technological, legal, and environmental factors impacting the business. The report evaluates the interplay between PESTLE factors and SWOT elements, followed by a comparison of different leadership styles, recommending the most suitable approach for Double-tree Hilton. Furthermore, it suggests strategies to overcome external environmental challenges, discusses ethical and social responsibilities, and concludes with reflections on the assignment's insights. The report emphasizes strategic recommendations for success.

CONTEXT OF BUSINESS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK- 1...........................................................................................................................................1
1. Performing SWOT and PESTLE Analysis of .........................................................................1
TASK- 2...........................................................................................................................................3
2. Evaluating the extent to which PESTLE affects elements of SWOT ....................................3
TASK- 3...........................................................................................................................................4
3. Comparing and contrasting different types of leadership style ..............................................4
4. Recommending strategies suitable for DTH to overcome external environment....................6
5. Commenting on the responsibility, Response and Obligations in their Ethics and Social
Responsibilities............................................................................................................................7
6. Reflecting knowledge gained through this assignment ..........................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
The business environment of any company consists of the internal and external factors
that affects the success and performance of the business. Effectual leadership helps in
capitalizing on the opportunities that are provided by the outer organization environment and
also managing the business threats that are faced by the company. The project shall be
highlighting the SWOT analysis that shall be depicting the factors in the internal environment of
the Double-tree by Hilton. Apart from that the PESTLE shall be reflecting the pressures and the
opportunities that are driven by the external environment of the company. It shall be showing the
different leadership styles and the most appropriate style for the company. Report shall be
considering the leadership style that can be used in overcoming the challenges of the business.
Further it shall be defining the ethical and the social responsibility that is to be followed by
Easyjet. Lastly the reflection about the experience in the project.
TASK- 1
1. Performing SWOT and PESTLE Analysis of
SWOT analysis of is as follows:
Strengths:-
 One of the most significant strengths of the Double-tree hotel of Hilton has is the
technological integrations that it has undertaken. The advancement in the technology and
the various systems used helps it build operational efficiency and assume competitive
advantage in the market. This has also supported in providing the customized services to
the customers which enhances their experience at the hotel. For example the digital keys,
partnership with Uber and online booking system.
 Another advantages that are there with the budget hotel is that it has established great
policies for maintaining the customer loyalty which are Hilton Hhonors program, free
internet access and the digital check-in and check-out facility (Abdel-Basset, Mohamed
and Smarandache, 2018).
 Also, the company has a strong portfolio of properties which can be used to attract the
target market segment of the hotel.
Weaknesses:-
 The high level of the debt that is incorporated in the capital structure is a weakness forv
the Double-tree hotel. This is because it poses huge threat of the fixed financial charges
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that are to be met despite the losses incurred by the company. The restructuring of the
financial structure is required to balance the proportion of the debt and equity in them
company.
 Another weakness of Hilton is that it is overdependent on the US market and despite of
having huge portfolio of property and attractive offerings it has able to generate very low
global market share.
Opportunities:-
 With the presence of the attractive portfolio of the properties and the brands it can further
expand its presence in the international markets. The global reach can further enhance the
reputation and profitability of the business.
 It can focus on forming the strategic alliances and collaborative partnerships so that
benefit of synergy can be assumed. This shall reduce the local competition in the market.
Threats:-
 One of the threats that is faced by the business is the intense competition and rivalry in
the market which is leading to the loss of market share. Another major threat is related to the workplace ethics that are not followed in the
company and due to that there is a high labour turnover in the hotel.
PESTLE Analysis
Political:-
 The political environment is affected by the instability of the government rules and
regulations, one of which is Brexit policy. Due to which it has to shift from UK to EU. The trade wars between the US and China has been impacting the business of the hotel.
Apart from that the norms related to lock-down and social distancing are also influencing
the business.
Economical:-
 The outbreak of the corona pandemic and the lock-down has lead to a major down turn in
the economy reducing the profitability and future growth prospects of the business. The inflation, interest and the foreign currency rates also impact the operations of the
business (Islam and Mamun, 2017).
Social:-
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 The changing lifestyles and the trends in the market are opportunities that can be captured
by the company. Apart from that other ancillary services are also developed. The company is enhancing the level of the leisure activities with the increase in the
personal disposable income of the customers and change in the consumer demographics.
Technological:-
 With the advancement in the technology, Double-tree is integrating its operations with
small tech savvy enterprise. Optimization of the website and the application of the company in order customize and
improve the digital interface.
Legal:-
 The company has to comply with the various employee and the customer laws so that the
government intervention can be avoided. Also, post the outbreak of Covid-19 there are several norms like sanitization, social
distancing, quarantine period and the lockdown are impacting the profitability of the
business severely.
Environmental:-
 The company is researching over the hybrid and electric green aircraft in the business to
fulfil with the corporate social responsibilities.
 The social and ethical code of conduct also leads to the strict regulatory framework for
the company (He and Harris, 2020).
TASK- 2
2. Evaluating the extent to which PESTLE affects elements of SWOT
The internal environment of Double-tree is posing the various opportunities and threats to
the company which are influenced by the PESTLE factors that are lying in the external
environment. The major opportunity was related to the technological efficiency in the company
and this has been catered by the integration with the tech savvy companies and also the company
is focusing on optimizing the website and app of the company to improve the digital interface.
The social and ethical requirements are the threat to the company which are dealt with by
focusing on fulfilment of the corporate social responsibility. The workplace ethics are not
followed in the company strictly which has lead to the increase in the labour turnover ratio. Also,
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for the sustainability and environmental friendly attitude it is researching about the better waste
disposal techniques.
One more major weakness is the outbreak of corona which is tackled by the lower cost
strategy and the launching of customized services in the new market.
The strengths of the business can be capitalized to remove the threats and weaknesses and
take the first mover advantage in the industry and drive the competitive advantage. The market
penetration pricing strategy is helping it capture the new target markets. Also, the brand
awareness helps it easily capture the market without putting much efforts on the marketing tools
and techniques.
The highly skilled staff that it has helps it generate operational efficiency and provide
better customer service deriving their satisfaction level. This negotiates with the weakness
regarding higher levels of the attrition costs of the training and development of these workers.
The cost is covered by the productivity that is generated for the company.
A strong brand portfolio helps in meeting the varied customer needs and expectations and
fulfilling the dual motive of the business one is the profitability and the other is the customer
satisfaction.
TASK- 3
3. Comparing and contrasting different types of leadership style
Leadership style refers to characteristics of person who is leader in an organization and
plays role of directing, controlling, leading, motivating and managing groups. There are several
leadership style that can be utilized by company for effective and efficient functioning of
business.
Autocratic Leadership Style
It is the type of head which explains clear expectations for what needs to be done, when it
should be exerted, and how to implement. Additionally, autocratic leaders make independent
decisions with no participation of members of group (Al-Awlaqi and et.al., 2021). Authoritarian
pattern is suitable to those organisations which has no discussion time for making organisational
decisions. Double-tree by Hilton acquires this to save time and efforts. It is less competitive than
democratic style due to following merits.
Pros Cons
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 Authoritarian will provide positive
results if high speed is required
 The success is completely depended on
efficiency of leader not on worker
 It helps to keep confidential matter safe
as there is no involvement of
employees
 Full potential of staff and their creatives
ideas are not utilized
 It establishes centralized authority and
strict supervision which assures quality
work
 Company may be threatened by
competitors in absence of leaders as
subordinates do not acquire skills.
Democratic Leadership style
It allows subordinates to participate in decision-making process and spends efforts on
guiding employees. Participative style encourages subordinates to share their innovative ideas
and focuses on group equality (Alheet and et.al., 2021). With respect to this, it enables
employees to feel an important part of company which in turn enhances their ability and quality
of performance. It may not be appropriate for Double-tree by Hilton (DTH) as tends to consume
more discussion and can result in peer conflicts. It is more suitable for companies than
transactional due to certain limitations of this leadership style
Strengths Weaknesses
 Democratic leadership style create
situation of higher productivity through
motivation.
 It results in poor decision-making by
unskilled employees
 It tends to obtain group committent  It over hidden the monitory or
individuals opinions
 Participative head attain creative and
more solutions for solving problems
 Failure of communications occurs due
to participative leaders
Transactional Leadership style
As the name suggest its a transaction between followers and leaders. Additionally, by
accepting position of group's member, individuals has to agree to respect head. In other terms it
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emphasized on completing assigned task in exchange for monetary benefits (AlOqlah, 2021). It
can be accepted by DTH for smooth functioning of business as in airline industry there are
various roles to be performed so following particular strategy could result in completion of
business goals. Participative style is relatively more competitive than transactional patter.
Advantages Disadvantages
 It encourages followers to maximize
productivity
 Individuality is removed from the
process as it limits amount of
innovation that is attainable.
 This leadership style eliminates
confusion among members of company
 It lacks the ability of followers to
become upcoming leaders.
 Cost can be reduced by adapting
maximum productivity goals through
transactional strategy
 Transactional leadership style places
success only in hands of leader
 It provides flexibility to subordinates to
select form of reward they want to
obtain
 More value on efficiency
Transformational leadership style
It is considered to be most effective pattern of leaders because they are emotionally
intelligent, energetic and passionate. This helps not firm to accomplish goals but aids employees
to fulfil their potential. This would be most appropriate strategy for DTH as focuses on all
aspects that are required to achieve success. The particular leadership style is provides greater
advantages than participative style.
Merits Demerits
 It lowers turnover cost because it
encourages full person
 It requires continuous and consistent
feedback
 With help of it new visionary image
can be easy formulated
 They are not always detailed oriented
 It emphasizes ongoing learning and  It may ignore certain protocols
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development
 It tends to avoid coercion  This can developed negative outcomes.
4. Recommending strategies suitable for DTH to overcome external environment
Double-tree by Hilton currently adopts type of transformational leadership style as the
company believes that every employee in organization can be manager one day. It aims at
motivating and developing followers of the firm. Leadership style should be selected based on
the internal and external factors that can impact performance of business operations. The
recommended style for leadership of DTH are as follows:
According to Singh, Sood and Bala, (2021) transformational style refers to leaders who
identify needed change, create vision through inspiring followers to achieve modified goals with
performing beyond their capabilities. In addition to this, it provides variety of mechanism that
enhance their motivation, morale and job performance. In contracts to this, Pereira, Santos and
Estevam, (2021) depicted that it servers disadvantage as the employees of company are easy
manipulated by leaders which is a negative sign for personal and organizational development.
However, a negative head of group can result into adverse impact on performance of firm. It also
needs continuous communication as the subordinates are totally dependent on leader to make
decision which results in more consumption of time and efforts. It also threats companies
competitive advantage to deal with external factors. In against of this, lowering cost, employees
motivation, treats subordinates individually are advantages of this style.
In the views of Maamari and Majdalani (2017) participative leadership allows workers to
contribute their views and opinions in company decision-making process. In addition to this,
external factors like profit maximization, higher air traffic rules, etc. can be tried to over by
allowing specialized qualified workers to share their high quality opinions. It results in increment
of efficiency of employees efficiency. In against of this, Gipson and et al. (2017) stated there are
different cons such as lack of unskilled decision may outcome in inability to tackle external
factors.
From the above evaluation company can use both transformational and democratic
leadership style in combination formate to deal with both external and internal factors that can
reduce performance of the firm.
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5. Commenting on the responsibility, Response and Obligations in their Ethics and Social
Responsibilities
Easyjet follows the corporate social responsibilities very strictly by forming an ethical
code of conduct and conducting the operations based on that so that the customer satisfaction can
be derived and they can avoid unnecessary interference of the government and other legal
authorities (Kuo and et.al., 2016).
The major responsibility that it conquered is regarding discrimination by forming
protocols that are ensuring equality based on gender and the culture of the individuals. The
company has employed several female pilot so that gender discrimination can be avoided. Apart
from that fair treatment is provided, standards for the fundamental human rights, stakeholder
protection and the anti-bribery policy.
The other responsibility that it has closely ensured is the environmental protection and
sustainability (Abbas, 2020). This is done through researching on the electric green aircraft,
reduce the carbon footprint and maintain the pollution levels. Waste minimization is also one
such policy that company is focusing upon so that clean and green environment can be
developed in the market.
Through various campaigns and informative sessions the officials of the company have
managed to generate awareness regarding the environmental protection and sustainable
development for the future generation that are coming (Ilkhanizadeh and Karatepe, 2017). This
awareness helps in the development of the society.
The fulfilment of the corporate social responsibility also helps them in being highly
responsive towards the rules and regulations that are posed by the government and the legal
bodies of the country (Lee, Seo and Sharma, 2013). This fulfils the ethical and social conduct
which avoids the interference made by the government and any sort of legal actions that can be
taken in the form of penalties, charges, fines and fees.
There are certain obligations that the airline industry has to meet as per the ethical and
social responsibilities and the code of conduct as prescribed by the regulatory bodies. The major
obligation is to provide a safe and secure access to travel by the customers. It means proper
safety measures are ensured, the flights are properly checked before departing, stuff for the
emergency requirements in duly maintained in the flight. The brand is providing positive
response to the responsibilities and are trying to shape the greener and better future for the
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aviation industry (Tsai and Hsu, 2008). The business model has been switched such to draw the
benefits contributing to the social sector. It also is campaigning aggressively to generate
awareness regarding these social causes and build a positive brand image in the market as against
the competition.
6. Reflecting knowledge gained through this assignment
While forming this report, I have gained a lot of experience and knowledge about the
business environment in which the company functions and how the internal and external
environment and the related factors impacts the performance of the business. By conducting the
SWOT analysis, I was able to discover the strengths that are possessed by the business which
help the company in capitalizing over the various opportunities that are there in the external
environment and successfully conquering the threats that are posed on the business. Apart from
them the weaknesses on which the firm needs to work so that the inefficiencies can be
minimized. The PESTLE analysis helped me to define the factors in the external environment
that can be impacting the business operations and its profitability. I developed an in-depth
understanding regarding how this analysis can be used in facilitating the decisions regarding the
strategic formulation that are used to fulfil the objectives of the business.
The experience altogether was great which helped me in deriving analytical skills,
improved my knowledge base, power of decision-making, utilization of the scarce resources etc.
It helped me in knowing deep insights about the aviation industry, its processes, ethical code of
conduct and the social responsibilities and the strategic formulation for deriving competitive
advantage in the industry. The project has generated the awareness in me regarding the ethical
and social codes, environmental protection, social responsibilities and the importance of legal
compliances. It also helped me discover the benefits that are associated with the sustainable
development, how it can be done and why should it be done. These practices have a long-lasting
impact on the minds of the people such that the company is successful in deriving the positive
brand image which shall ultimately generate loyalty and preferences in the customers for the
company.
I have been able to derive the analytical skills through analysis and interpretation of the
business environment of the company. This has developed the conceptual understanding of how
to analyse a particular situation and draw conclusions from it. The application of various
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business environment models to study its impact on the operations of Double-tree has supported
in the rationale choices and appropriate decision-making.
It has helped me in identifying the leadership qualities in me which I can utilize and take
initiatives and guide my followers on the right direction. Apart from that there are various
leadership skills that can be utilized in the business as per the business model that is followed by
the company.
Overall it can be said that the project was a fruitful experience which helped me develop
my knowledge base, conceptual understanding about business terms, leadership qualities and
their benefits, ethical and the social responsibility of the company etc. Apart from that the
various skills like the brainstorming, analytical decision-making, rationale choices and
competitive advantage.
CONCLUSION
It can be summarized from the above project that analysing the business environment is a
crucial step and is determinant of the success of the business operations. The business
environment possesses of both the external and the internal environment having various factors
that are impacting the growth and prosperity of the business. The SWOT and PESTLE analysis
assists in the strategic formulation to achieve the goals and objectives of the business. The
various leadership styles are applied in the business to drive competitive advantage and its
application depends on the leadership qualities as possessed by the workforce and the business
model that is used. There are various ethical and social responsibilities that are to be executed for
the social benefit of the society and derives the satisfaction level of the customers.
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REFERENCES
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Al-Awlaqi and et.al., 2021. The interaction between leadership styles and their followers' human
capital: a correspondence analysis approach applied to micro-sized
businesses. Journal of Management Development.
Alheet, A. and et.al., 2021. The effect of leadership styles on employees’ innovative work
behavior. Management Science Letters. 11(1). pp.239-246.
AlOqlah, R. M. A., 2021. The effect of leadership styles on improving communication method
among academic administrators. Cypriot Journal of Educational Sciences. 16(1).
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Christodoulou, A. and Cullinane, K., 2019. Identifying the main opportunities and challenges
from the implementation of a port energy management system: A SWOT/PESTLE
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Tsai, W. H. and Hsu, J. L., 2008. Corporate social responsibility programs choice and costs
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