External Business Environment

This document provides an overview of the structure, management, and governance of Hilton Food Group PLC. It also highlights the importance of Pestle Analysis and analyzes the Pestle framework of the company. The document focuses on the impact of the external business environment on Hilton Food Group PLC and how the company uses Pestle Analysis to make informed decisions.

External Business
Environment

Executive Summary
This document has presented the information of how external environment impacted on
operations of Hilton Food Group PLC. Including this, it is also said that the particular business
model which has been developed by Hilton, is already delivering ample number of benefits to
meet local requirements with customers in each country. Pestle Analysis has helped Hilton Food
Group PLC to take right decisions like following trends, meeting requirements of consumers and
so on.

Table of Contents
Executive Summary.........................................................................................................................2
Introduction......................................................................................................................................1
Main Body.......................................................................................................................................2
Task 1: Structure, management and governance at Hilton Food Group PLC.................................2
1.A) An overview and history of Hilton Food Group PLC....................................................2
1.B) How Hilton Food Group PLC is governed and structured.............................................2
Task 2: The Relative Importance Of Pestle Analysis For Hilton Food Group Plc..........................4
Task 3: Analysis Of Pestle Framework Of Hilton Food Group Plc................................................6
Conclusion.......................................................................................................................................8
REFERENCES................................................................................................................................9

Introduction
In present time, business environment is carrying dynamic nature that results into both
negative and positive impacts on organisations (Vlados and Chatzinikolaou, 2019). Basically,
business environment consists of external and internal factors that are required by an
organisation to analyse for better decision making to create values for their customers. In this
report, the particular organisation that has been taken into consideration is Hilton Food Group
PLC. Including this, assignment will be delivering the information in relation with structure of
Hilton Food Group PLC, importance of PESTLE Analysis will also be shown in this report and
lastly, analysis of PESTLE framework will be done of chosen organisation i.e. Hilton Food
Group PLC.
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Main Body
Task 1: Structure, management and governance at Hilton Food Group PLC.
1.A) An overview and history of Hilton Food Group PLC
Overview:
Hilton Food Group PLC is one of the famous United Kingdom's food packaging
organisation. This organisation is listed in London Stock Exchange and it is a constituent of
FTSE 250 Index. Basically, Hilton Food Group PLC supplies food to some of the major
international retailers from state-of-the-art facilities among nations like United Kingdom,
Australia, Portugal, Netherlands and so on. Recently this company have also decided that it will
be constructing a whole new facility in New Zealand as well by acquiring Seachill and
Woolworths in order to become a leader in food packaging industry of international market
(Hilton Food Group plc, 2020).
History:
In the year of 1994, Hilton Food Group PLC was launched as an operator of lamb and
beef central meat packing facility in Huntingdon, England. On the other hand, at present this
company headquartered at Huntingdon, England. Approximately, from last 25 years Hilton Food
Group PLC has specifically grown and started performing it's operations among different
countries like Netherlands, Australia, Portugal and so on through launching new factories in
European nations. On the other hand, it has been found that the particular market entry strategy
which was utilised by Hilton Food Group PLC is Joint Venture agreements at the time of
entering Portugal and Australia as well where they have acquired a range of fish processors.
Including this, it has also found that management level of Hilton Food Group PLC already
developed proper plans and procedures for all the packing plants (History, 2020).
1.B) How Hilton Food Group PLC is governed and structured
Organisational structure of Hilton Food Group PLC
The particular organisational structure that has been followed by Hilton Food Group PLC
is Functional, where information like decisions made by top level management first reaches to
middle level management and then the particular information is being provided by lower level of
management. This results into positive outcomes carried out by Hilton Food Group PLC in a
systematic manner. However, this particular approach may result into slower transaction of
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information but it helps organisation in communicating information in a systematic and authentic
way (Trisakhon, Onputtha and Peamchai, 2018). Most of the business organisations to consider
this particular organisational structure and the reason that came in front is that it is one of the
oldest organisational structure and also helped companies in improving communication process
as well.
Some of the major benefits that came in front of considering functional organisational
structure are presented underneath: Increased productivity: Individuals are considering a range of crucial functional structure
setting have particular aptitudes that permit them to work more rapidly and effectively
than the individuals who might be new to explicit subjects, which prompts more
noteworthy efficiency. Away with this, their certainty level empowers them to finish
assignments with negligible management. Representatives inside this arrangement of
progressive system who show elevated levels of efficiency frequently get advancements
to different positions (Gichara, Mutukaa and Ogoti, 2016). Skill development: Hilton Food Group PLC is following a useful authoritative structure
have different offices made out of little groups. Inside each group, experienced directors
get the opportunity to show their colleagues similar abilities they have, bringing about an
improved range of abilities for all included. Both delicate (relational) and hard
(specialized) aptitudes may create after some time as individuals cooperate to discover
interesting arrangements and conquer business related difficulties. Clarity: At the point when Hilton Food Group PLC bring individuals of a similar forte
together, it establishes a climate of clearness. Any time somebody inside the Hilton Food
Group PLC needs significant level data identified with promoting, HR, client support or
tasks, they realize where to go. This applies to individuals outside of the Hilton Food
Group PLC too, who may contact Hilton Food Group PLC with a unique solicitation. In
addition, the progressive idea of the useful structure explains the particular jobs and
duties of each individual inside an office (Prajogo, 2016). Minimized cost of operation: Functional structure assist Hilton Food Group PLC with
setting aside cash from numerous points of view. By arranging representatives as
indicated by business capacities, offices can decrease the opportunity for various
divisions finishing comparative work. Offering assignments to people with the correct
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aptitudes additionally sets aside cash since work gets performed all the more productively
(Kanyeria and Karugu, 2020).
Directors are on the Board of Hilton Food Group PLC
 Robert Watson OBE is said to be the Executive Chairman of this organisation (Board Of
Directors, 2020).
 Philip Heffer is Chief Executive Officer.
 Nigel Majewski is Chief Financial Officer.
 Christine Cross is Non-Executive Director. John Worby, Rebecca Shelley and Angus Porter are Non-Executive Directors of Hilton
Food Group PLC.
Chairperson and CEO of Hilton Food Group PLC
Based on the official website of Hilton Food Group PLC, Robert Watson OBE is the
chairperson of Hilton Food Group PLC. On the other hand, if it is talked about CEO of Hilton
Food Group PLC then his name is Philip Heffer (Board Of Directors, 2020).
When they got elected and appointed
Considering the information given on official website of this company, Robert Watson
OBE became Executive Chairman on 1 July 2018. On the other hand, if it is talked about Philip
Heffer then he was appointed as CEO of this organisation on 1 July 2018 (Board Of Directors,
2020).
Task 2: The Relative Importance Of Pestle Analysis For Hilton Food Group
Plc.
Over the years, it has been found that Pestle analysis plays an important role for
organisations that are performing their operations at national or international (or both) level
(Ghicajanu, 2019). Some of the important roles of conducting a pestle analysis for an
organisation like Hilton Food Group Plc. are presented underneath: Marketing planning: This is considered to be one of the significant role of Pestle
Analysis which would help Hilton Food Group Plc. in taking right decisions for
promoting new and existing products and services. Basically, pestle analysis may help
Hilton Food Group Plc in marketing planning because this model is directly connected
with external business environment. This could be understood with a good example of
“Economic” factor of PESTLE Analysis where, it may give information to finance
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department of Hilton Food Group Plc. in relation with which particular promotional
approach that can be taken into consideration. These decisions will not increase expenses
of the company in financial crisis times as well while promoting new and existing
products or services offered by Hilton Food Group Plc (Ifinedo, Pyke and Anwar, 2018). Business & product development: Another importance that can be seen of conducting
Pestle analysis for Hilton Food Group Plc is that it will help firm in making
determinations in relation with business and product development. This can also be
understood with a good example of a particular factor i.e. “Technological” of pestle
analysis where considering updated technology while developing a product will help
Hilton Food Group Plc in gaining competitive advantages. On the other hand, Hilton
Food Group Plc may also gain information in relation with what exactly their competitors
are using as their strategy to operate business in marketplace. With the help of this,
Hilton Food Group Plc may effectively take right decisions in correct time in relation
with product development as it will not only help firm in improving profit ratios but also
it will improve sustainability as well. It can enable an organisation to spot business opportunities and exploit them fully:
Pestle analysis aid organisations in getting knowledge in relation to external environment,
where they can seek for business opportunities and exploit them fully. With the help of
this, Hilton Food Group Plc can easily gain various benefits in much effective and
efficient manner (Patti and et. al., 2016). This could be understood with a good example
of “Political” factor of Pestle analysis where Brexit (Eviction of United Kingdom from
European Union) created uncertain business environment of United Kingdom and due to
this government of UK decided to create open market for all the organisations. Under
this, Hilton Food Group Plc may effectively launch new products in new market (in
which Hilton Food Group Plc is not performing its operations till date), which will help
firm in enhancing productivity and profitability.
 Provides a more in-depth understanding of Market: It has been found that, Pestle
Analysis gives in-depth information of market, which may help Hilton Food Group Plc in
taking right decision in correct time. This can also be understood with a good example of
a particular factor i.e. “Social” of pestle analysis. Basically, pandemic COVID-19 has
changed the whole scenario for companies where they started shifting their business from
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physical stores to online. The reason that came in front was particularly the shift in
buying behaviour of consumers. Under this, Hilton Food Group Plc may also start
performing their business on online channels because of social distancing (Carey and
Tanewski, 2016).
Task 3: Analysis Of Pestle Framework Of Hilton Food Group Plc.
Pestle analysis tends to offer great dealing regarding the effective operations and
challenges which should be face by respective company and also tends to undertake prevalent
external environmental factors instead of competitive forces. This framework is useful in
identifying the prominent risk which is associated with the concerning factors and also tends to
develop effective strategies and policies which is useful in overcoming the risk factor. For this,
some of the prominent factors are mentioned as under:
Political: This factor plays an important role in terms of determining the prominent
components that has major impact on respective company as it operates in food and beverage
and expose itself in various types of political environment and system. For this, after Brexit, it
tends to put negative impact on the government policies and norms of company as after this, new
standards are introduced which should be considered by company and changes in norms tends to
put negative impact on the running and functioning of company. As the political stability is
essential for the effective survival within the food and beverage sector. Along with this,
government tends to hold extensive power in the food and beverage industry as the political
party who is in power tends to ban travelling that leads to put negative impact on tourism and
directly impact the economy of country. For this, all it is beneficial to take one negative decision
and due to this, organisation tends to lose its vast majority in economy. Besides this, the owner
of Hilton food group tends to enjoy tax reforms as the tax rates in UK is quite high that leads to
improve the overall industry in terms of offering food packaging services and also tends to save
to develop more quality services to their clients which is useful in improving the overall image
and reputation of respective company (Jabeen, Aliyu and Mahmood, 2016).
Economical: This factor tends to undertake the overall economic condition like interest
rates, exchange, inflation, GDP and so on. It depicts that the prominent strengths and weaknesses
of considered currency tends to have huge impact in terms of effective attractiveness for their
vacation spot. Like, the international currencies have quite strong presence instead of American
dollar that put positive impact on the overall image of UK. Along with this, considering the food
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and beverage sector, it is also impacted by the economic changes, as Hilton food group has one
of the most susceptible towards its prominent influence. Along with this, it comes out and also
tends to depend on the basic primary factors such as unemployment, job growth and spending.
Besides this, food sector also tends to improve the profitability and revenues by acquiring the
effective market area which is beneficial for them and for this, their guests also appreciate them
in terms of offering customised products which put positive impact on Hilton food group
(ButarButar and Lisdayanti, 2020).
Social: These factors tends to undertake cultural norms, attitude, values, population
growth, preferences of customers and spreading awareness regarding the health and safety. It
becomes the prime duty and responsibility of Hilton food group in term of offering effective
products and services that are healthy and hygienic considering the current pandemic. For this,
respective company deliver food by considering proper safety and security of their customers
and employees as well and also take proper safety measures at the time of delivering food as they
consider contactless delivery. Currently, Hilton food group also register itself on other food
delivery apps by which it becomes more convenient for them to deliver their food considering
proper and it also cost effective which put positive impact on the profitability and revenues of
company.
Technological: These factors include automation of processes, intellectual property,
internet things and many more. For this, Hilton Food group tends to use social media and internet
services in terms of promoting and offering its significant services by showing its pros that helps
in attracting large number of customer base. Moreover, due to the effective use of social media,
they get updated orders and deliver food services 24*7 in terms of making their customer
satisfied. Along with this, after the impact of COVID-19, it becomes important for company to
offer its services through online platform which is cost effective, eco-friendly and beneficial for
company. Besides this, Hilton food group also take care of proper sanitisation and for this, they
use high-tech machines to sanitise its employees (Jacoby and et. al., 2019).
Legal Factors: Hilton Food Group Plc has already considered Equality Act, 2010, in
their policy as this helps Hilton Food Group Plc in enhancing the motivation level among female
staff because they are not supporting any sort of discrimination. Green washing is said to be a
crucial practice where an organisation formulates misleading advertisements in order to enhance
profitability of the company. In context with Hilton Food Group Plc, it is much needed for the
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company to develop policies in order to meet the set advertising standards because then only
exactly value can be given to customers at international level (Appiah and Possumah, 2017).
Environmental factors: Since, Hilton Food Group Plc is performing business in food
packaging industry it is mandatory for organisation to manage all the waste materials because
then only Hilton may reduce the wastage of both non-renewable and renewable resources. It is
needed for Hilton Food Group Plc to improve the sustainability and this can be done through
performing different range of CSR activities in rightful manner.
Conclusion
With the help of above mentioned report, it is being concluded that Pestle analysis
specifically aid an organisation in analysing external environment in a detailed manner. In
context with Hilton Food Group Plc it is much needed for company to improve the proficiency
level and this can be done through analysing the external environment in much effective and in
efficient ways.
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REFERENCES
Books and Journals
Appiah, M.K. and Possumah, B.T., 2017. External business environment and SMEs investment
in the ghanaian oil and gas sector.
ButarButar, D.J.A. and Lisdayanti, A., 2020. The Impact of External Business Environment on
Marketing StrategicImpacting Marketing Performance in The Retail Industry in
Bandung. Prosiding ICoISSE, 1(1), pp.81-89.
Carey, P. and Tanewski, G., 2016. The provision of business advice to SMEs by external
accountants. Managerial Auditing Journal.
Ghicajanu, M., 2019. Analysis of factors from the external environment in changing business
processes. In MATEC Web of Conferences (Vol. 290, p. 07008). EDP Sciences.
Gichara, R.W., Mutukaa, S.K. and Ogoti, E., 2016. Impact of external business environment on
training in nurses at a referral hospital in Kenya.
Ifinedo, P., Pyke, J. and Anwar, A., 2018. Business undergraduates’ perceived use outcomes of
Moodle in a blended learning environment: The roles of usability factors and external
support. Telematics and Informatics, 35(1), pp.93-102.
Jabeen, R., Aliyu, M.S. and Mahmood, R., 2016. The moderating effect of external environment
on the relationship between market orientation and business performance: A
quantitative approach. International Postgraduate Business Journal, 8(1), pp.16-25.
Jacoby, G and et. al., 2019. Corporate governance, external control, and environmental
information transparency: Evidence from emerging markets. Journal of International
Financial Markets, Institutions and Money, 58, pp.269-283.
Kanyeria, R.N. and Karugu, J., 2020. Influence of External Business Environment on the
Success of Health Projects in Nyandarua County, Kenya. International Journal of
Business Management, Entrepreneurship and Innovation, 2(1), pp.1-16.
Patti, D.M.A and et. al., 2016. A tale of soil and seeds: the external environment and
entrepreneurial entry. Small Business Economics, 47(4), pp.955-980.
Prajogo, D.I., 2016. The strategic fit between innovation strategies and business environment in
delivering business performance. International journal of production Economics, 171,
pp.241-249.
Trisakhon, C., Onputtha, S.O. and Peamchai, P., 2018. The Effect of External Business
Environment on Business Performance of Small and Medium Food Processing
Enterprises in Bangkok and Metropolitan Area. International Journal of Applied
Computer Technology and Information Systems, 8(1).
Vlados, C. and Chatzinikolaou, D., 2019. Methodological redirections for an evolutionary
approach of the external business environment. J. Mgmt. & Sustainability, 9, p.25.
Online
Board Of Directors. 2020. [Online]. Available through:
<https://www.hiltonfoodgroupplc.com/about-us/board-directors>.
History. 2020. [Online]. Available through:
<http://www.hiltonfoodgroupplc.com/about-us/history>.
Hilton Food Group plc. 2020. [Online]. Available through:
<http://www.hiltonfoodgroupplc.com/>.
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