Report: Context of Business Analysis for Travelodge Manchester Central

This report provides a comprehensive analysis of the business context surrounding the Travelodge Manchester Central hotel. It begins with an executive summary and table of contents, followed by an introduction that sets the stage for the analysis. The core of the report includes a detailed SWOT analysis identifying the hotel's strengths, weaknesses, opportunities, and threats, followed by a PESTEL analysis examining the political, economic, social, technological, legal, and environmental factors impacting the hotel's operations. The report further delves into different leadership styles, including autocratic, bureaucratic, democratic, laissez-faire, and affiliative styles, recommending a participative leadership approach. Finally, the report addresses ethical and social responsibility considerations and concludes with reflections and a conclusion summarizing the key findings and recommendations. The report references relevant academic sources to support its analysis.

Context of Business: Travelodge Manchester
Central
[Document subtitle]
USER

Executive Summary
This report conducts a SWOT and PESTLE analysis of Travelodge, Manchester while establishing
a relationship between the two, it also compared between five leadership styles while
recommending a suitable style for the organization’s management. The report proceeded to
comment on the hotel’s responsibility, response and obligations in its ethics and social
responsibility, before proceeding to reflect on the knowledge learnt during the preparation of the
report.
Table of Contents

Executive Summary.....................................................................................................................................1
Introduction.................................................................................................................................................5
SWOT Analysis...........................................................................................................................................5
PESTEL.......................................................................................................................................................6
Leadership Styles......................................................................................................................................11
Autocratic Leadership............................................................................................................................11
Bureaucratic Leadership........................................................................................................................11
Democratic Leadership..............................................................................................................................12
Laissez-faire Leadership............................................................................................................................12
Affiliative Leadership............................................................................................................................13
Leadership Style Recommendation: Participative Leadership...................................................................13
Ethics and Social Responsibility................................................................................................................14
Reflections.................................................................................................................................................16
Conclusion.................................................................................................................................................16
References.................................................................................................................................................17

Introduction
Modern businesses are increasingly adapting themselves to the intricacies of modern technology.
This is as a result of the changing topographies surrounding their operations. To fulfil its objective,
the current report adopts a case study of Travelodge Manchester, examining the intricacies of the
organization’s operations including its leadership, internal and external activities. Travelodge
Manchester Central is a strategically placed Travelodge hotel at the centre of Manchester action
(Travelodge Manchester, 2020). Popularly regarded as the second capital of England, Manchester
is a rich city in both history and culture in which tourists could easily explore the historical pieces
in its museums and galleries. The Arndale Centre and Iconic Afflecks Palace all of which are
tourist attractions are in proximity to the hotel, making it one of the Manchester’s tourist choice
(Travelodge Manchester, 2020). A family-friendly hotel furnished with many modern comfortable
amenities, it is reputable for offering its customers a homely and personalized experience at a
reasonable price (Tripadvisor, 2020). For the comfort of its customers, it offers an aerial view of
some of Manchester’s popular attractions as well as flat-screen TVs, internet availability, a lounge,
and the Bar Café which offers traditional meals (Travelodge Manchester, 2020). Besides providing
convenience for families, it also offers special benefits for business and group accommodations,
with account cards and discounts.
SWOT Analysis
Strengths Weakness
i. Conversant with modern technology
ii. Reputable brand
iii. Affordable price
i. Defective communication system
ii. Lack of employee motivation
iii. Basic tastes in decoration

iv. Account card for quick bookings
v. Strategically located
iv. Poor customer service
Opportunity Threats
i. Potential global market
ii. Loyal customer base
iii. Customer participation with new
membership
i. Competitive market
ii. Risk of market entry
iii. Potential for customers to demand
more luxury choice in hotel.
(Evans, et al., 2017)
PESTEL
i. Political Factors
The political environment of any business plays a role in its regulation. Some of these
regulations involves government policies which significantly contribute to the success or failure
of a business in their operation.
Manchester retains a political stability typical of the UK. The recent global drawback as a result
of the COVID-19 pandemic and the Brexit however constituted significant changes in policies
which affected the hotel (Amadeo, 2020). The implementation of lockdown rules, the enactment

of international travel policies, social distancing protocols, the loss of a majority of its market
potential due to the Brexit all of which necessitated political actions affected the ability of the
hotel to provide solid-base for sustained development growth. These resulted in a loss of
potential investment opportunities which were important for its growth as a result of its strategic
location (Amadeo, 2020). The implication of this was negative on hotel development, which
meant that not much tax was generated for the government. The hotel is however making efforts
to enable its international audience entrance into its premises while implementing necessary
protocols through its website and hotel (Travelodge Manchester, 2020). This has continued to
establish the branch as one with the best interests of its loyal customer-base at hand as well as
one with a healthy relationship with the international market. With a focus on foreign markets,
the hotel is beginning to implement more unique designs which improves its market presence in
the heat of competition.
ii. Economic Factors
The UK profits largely from its international trade especially within the EU, this has recently
suffered a decline as a result of the Brexit, which significantly led to a depreciation of the
Pounds. This inflation had several adverse effects on the purchasing power of customers which
continued to affect sales (Gibson, 2018). The lockdown also prompted a review of international
air travel rates, which continued to discourage international customers who are already wary of
the COVID-19 pandemic on individual economies. This constituted a challenge as customers
have fixed tourism budgets which if affected, their motivation to travel at all declines. Many
businesses have also discovered the advantages of virtual communication as opposed to the

physical conferences prior to the lockdown, all of which has provoked the review in the hotel’s
price rates in order not to run at a loss (Gibson, 2018).
These factors have motivated the hotel to continue to improve its service quality through the
maintenance of an effective communication system as well as a more proficient customer service
relationship. The identified factors also provide a new ground for foreign investment, given the
Brexit which has opened the hotel for opportunities beyond the EU (Commission, 2018). While
it may have implications on the cheap price of its services, the branch has implemented strategies
to enable it continue to adopt modern technological systems due to customer requirement for
consistent internet connection and communication systems. This has improved its value for both
investors and customers alike.
iii. Social Factors
The attainment of a unique social atmosphere is an important source of concern for Travelodge
Manchester, this is in reference to the quality of customer service in order to ensure the reception
of customer loyalty. This has been a constant cause for alarm since the lockdown protocols have
been partially relieved with social distancing regulations still in play, the implication for the
hotel is that the attractive bustle of customers has trickled, leaving much to wonder for the hotel
(Clarke & Chen, 2012). In an effort to maintain customer satisfaction, the hotel implemented all
of the social distancing rules both on and offline to ensure customer safety. This significantly
influenced the quality of customer service as it became more convenient to provide quality
attention to each customer request. In order to curtail further social consequences, a majority of
the hotel’s bookings are conducted online (Clarke & Chen, 2012). This ensures that there are
minor physical booking activities at the hotel, it also suggests an automated system of room
placement which the hotel has implemented on its website and mobile app. Despite this, the hotel

continues to maintain its focus and concern for eco-friendly, green and recycling issues in order
to protect the environment.
The implementation of an effective online booking system continues to brandish the hotel as a
reputable branch in the issue of technological acceptance, this ensures its ability to successfully
implement further technologically inclined measures that will improve customer service delivery
and relationship in the future. It also means that it will be able to concentrate its human resources
in other aspects which will effectively improve employee motivation and communication. The
implementation and prospects for future technology adoption provides the branch with a
competitive advantage over its opponents.
iv. Technological Factors
The hotel industry continues to create a heavy demand regarding the integration of sophisticated
technological systems with the objective to refine, update, or replace traditional methods. The
hotel has a culture of being at the fore-front of technology adoption, which enables the reduction
of intermediaries who may want to undercut published rates. It also provides the hotel the digital
opportunity to create a more significant online presence through online marketing devices
(Tripadvisor, 2020). Customers and potential customers are through these mediums ensured of
the quality of service to expect while being familiarized with the level of confidence of service.
Its adoption of the latest technologies also enables customers to conduct whatever activities from
the comfort of their rooms without having to go through more crude channels. The technologies
include; e-payment, a functional and customer-friendly website interface, a simple mobile app,
accessible and fast Wi-Fi services, GPS (Travelodge Manchester, 2020). There is no doubt that
the use of technology has the potential of improving the quality and ease of service delivery for

Travelodge. This is because customers are able to conduct bookings and reservations as well as
make the relevant inquiries through digital means and without the stricture of being physically
present. Digital advertisement continues to improve the brand’s potential within the global
market enabling it to improve customer satisfaction and loyalty through its provision of luxury
services.
v. Legal Factors
Due to its strategic locations, the hotel is oftentimes affected by majority of London’s legal
constraints, it however is able to successfully curtail these legalities through the implementation
of its own legal representations, which have a significant role in its progress as an institution. In
the same vein, its acceptance as a legally decent institution improves its customer base while at
the same time enhancing its indigenous business activities.
vi. Environmental Factors
Travelodge Manchester contributes its quota towards the protection of the environment, this is
seen through the implementation of the Green Program in the construction of its hotels and
maintenance of its rooms. In an effort to improve the quality of its services in accordance with
societal requirements, the hotel makes judicious use of aerated shower heads and taps, lighting,
smart metres, rain water, and a host of other devices (Green Program, 2016). For its customer
base, the adoption of these mechanisms project the organization as an environmentally conscious
institution, putting it in the good books of both local and international customers. Its customer
service is tremendously improved with the usage of these green technologies, which also
improves its chances in the competitive market.

Leadership Styles
Autocratic Leadership
This leadership style is a popular approach in which managers retain their power and decision
making authority (Clark, 2015). The implication of this is that only managers have the authority
to make rules without consulting with employees who are bound to obey the orders regardless of
their nature. Autocratic leadership is good when there are new employees who do not understand
tasks at hand and the procedures to be followed (Bass & Avolio, 1994). For autocratic
leadership, supervision is only implemented in the event that detailed orders and instructions are
given. Decision making is swift as it does not have to go through any chain of management
hierarchy, the application of this style implies that coordination with other departments is
important (Clark, 2015). There is no trust among employees in an autocratic system because
leaders do not have a listening hear for them. The style therefore should not be used when
employees are fearful and tense (Yukl, 2010).
Bureaucratic Leadership
A bureaucratic leader enforces certain rules or standards upon employees, this is usually in an
effort to ensure safety and accuracy. Bureaucratic leadership is the leadership style adopted in
dangerous work conditions within which specific sets of procedures are made compulsory in
order to ensure safety, such as in construction sites. It is most useful when employees are
expected to conduct routine tasks repeatedly. In a bureaucratic leadership environment, it is
important for staff to understand necessary standards and procedures, safety training are
conducted and are expected to be adhered to. It therefore is not a suitable style for work
environments in which employee habits cannot be changed. Like the autocratic leadership, it

does not allow employees any opportunity for decision making however not because of
monopoly of authority, but to guarantee employee safety.
Democratic Leadership
The democratic leadership style is also regarded as participative leadership. Democratic Leaders
include one or more of their subordinates in decision making process, including exact
information regarding directions. They however retain the final decision making. Democratic
leadership is the best leadership style for increasing employee motivation, it has also been
described as an affective style that improves organizational competency. It is most suitable in
situations in which the leader only knows a part of the problem, and requires further information
from subordinates to solve them. The style allows for the production of a high quality and
quantity of work for a long period of time, employees are also endowed with trust and
commitment, virtues they are able to replicate with faithfulness and morale. The leader in his
capacity develops program and plans to enable staff evaluate their performance. It therefore
provides opportunities to establish goals, encourage growth on job, and recognizes achievement
among employees. This differs from both autocratic and bureaucratic leadership because
employees are given an opportunity to participate in leadership and decision making processes.
Laissez-faire Leadership
Laissez-Faire Leadership is also regraded as “hands – off” style, it is a style in which managers
provides little or no directions while granting maximum freedom to employees. Authority is
entirely given to staff who determines goals, provide resolution to problems and are fully
involved in decision making. Therefore, for the style to be effectively used, employees must be
both highly skilled, experienced, educated and qualified. Employees have to possess the capacity

to work effectively, and must be trustworthy and competent to function for organizational
benefits. The style should therefore not be used in the in the absence of the leader when
employee feels insecure. This kind of leadership is the loosest, in comparison to autocratic,
bureaucratic and democratic styles. It does not relegate employees to the background like robots
as in autocratic leadership, neither does it provide regulations and guidelines like in the
bureaucratic style, it also does not merely involve employees in decision making but fully invites
them to make decisions.
Affiliative Leadership
Affiliation leadership is a suitable leadership style for improving team motivation and moral.
This is achieved by providing employees with a sense of affiliation and recognition throughout
decision making process. It is similar to democratic leadership but lays more emphasis on
appreciation of employee hard-work. Unfortunately, affiliative leadership can fail to reprimand
poor performance.
Travelodge Manchester adopts an affiliative leadership style, this is because its management
style enforces the team strategy, one that enables employees participate in decision making
processes. It however encounters a significant amount of challenges in the execution of its duties,
for which reason it is important to consider alternative styles.
Leadership Style Recommendation: Participative Leadership
According to Rus, Van-Knippenberg and Wisse (2012), participative leadership entails the
inclusion of stakeholders within relevant stages of organizational development. This is because it
includes factors capable of creating inherent drive, which propel organizations. As a result, a
participative leader is considered to be a facilitator instead of patronizing or autocratic.

According to Algera and Lips-Wiersma (2012), participative leadership provides an environment
for the creation of employee sense of responsibility from bureaucracies and enhancement of
communication.
Participative leadership cites a high-level of participation in strategy design, it is a leadership
style intended to effectively conduct tasks that will ensure the growth of the organization and
domination of the global market. Through the implementation of participative leadership,
Travelogue Manchester will be able to employ conflicts and issues on platforms on which
reviews organizational objectives are founded, to foster a faster achievement of fundamental
goals. According to Kurt Lewin (1938), a participative model of leadership enables the
establishment of a relationship between employee goals and achievement, this informs an
underlying effectiveness which Travelodge is capable of enjoying. Decentralization of
responsibilities and roles allow for the creation of an effective mobile system designed to ensure
organizational progress.
With the adoption of participative leadership, it will be possible to instil inherent motivation
founded on team spirit which is expected to improve productivity, as well as encourage emergent
leaders. Rieley (2012) argues that although hospitality employees are most times regarded based
on their status, they are also provided with crucial competencies that can be exploited as well as
utilized in order to ensure both short and long term goals are achieved. The ability of Travelodge
Manchester to harness this potential will allow it to create a cycle in which top leaders employ
key tools like motivation in decision making processes.

Ethics and Social Responsibility
Ethics is a vital part of a businesses and all aspects of living, without the application of ethical
principles, Travelodge will be unable to achieve its objectives (Gostick & Telford, 2013). Ethics
has a wide connection to every aspect of an organization’s setups including accounting
information, HRM, sales etc. Social responsibility on the other hand can be described as an
organization’s way to conduct its operations in ways which provides its societal and
organizational benefits (Skripak, 2016). Travelodge has a responsibility to customers,
shareholders and Board of Directors, and members of the general public in close proximity.
Responsibility: Travelodge responsibility can be positive or negative; to foster the positive
impacts and avoid the negative ones. This is best described as “integrating social or ethical
dimensions in economic activities,” “achieving economic goals while at the same time
addressing society’s expectations,” “engaging in open, transparent business practices that respect
their employees, the community and the environment,” (Saul, 2014). As its social responsibility,
Travelodge therefore must put people at the centre while considering the needs of external
stakeholders (Skripak, 2016). To improve its responsibility to the society, Travelodge has
changed the ways it builds its hotels and the way its rooms are managed. Some of the applied
measures include;
1. Low energy lighting
2. Aerated showers
3. Full insulation
4. Windows and external fixtures fitted accurately for minimum energy leakage (Green
Program, 2016)

Responsiveness, as an organization, when Travelodge acts with a prospective responsibility, it
indicates an inclination to respond to societal needs. This is a contributor to responsiveness
(Gostick & Telford, 2013). The justification of this emerges out of the hotel’s ability to make
moral decisions for its successful operation, in a manner in which its external stakeholders trust
its performance while also accepting the consequences of these actions.
Obligation in this guise is the responsibility of the hotel to conduct its affairs towards societal
advantage. It earns this obligation through the successful series of moral decisions it is able to
convince society of. Travelodge’s commitment towards a green economy therefore features as an
obligation emerging out of its responsibility to the society (Saul, 2014).
Reflections: During the course of writing this report, I learnt that the SWOT and PESTEL
analysis frameworks were much more than mere tools for understanding internal and external
parts of an organization, I learnt to establish a relationship between both of these frameworks and
demonstrate how the elements of each influenced the development of an organization. I came to
understand the fundamental difference between the different leadership styles, I also learnt to
adapt these styles to specific management setups to ensure the success of the organization. My
understanding of these distinctions will enable me understand my personality better, as well as
the best style to adopt effectively towards being a successful leader.
Conclusion
The report demonstrated with the use of a SWOT and PESTLE analysis, important relationships
between an organization’s weaknesses, opportunities and threats, indicating how its PESTLE
factors influence its progress. The report also employed an analysis of 5 leadership styles,
comparing and contrasting between these styles while also recommending a suitable style for

Travelodge, Manchester. The essay then proceeded to comment on the organization’s
responsibility, response and obligations while concluding with reflections on acquired
knowledge during the preparation of the report.
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