Importance of PESTEL Analysis in Organization

This article discusses the importance of PESTEL analysis in organizations and how it helps in shaping the business environment. It explores the political, economic, social, technological, environmental, and legal factors that impact businesses. By analyzing these factors, organizations can make informed decisions and develop strategies for growth and expansion.

Assessment

Table of Contents
INTRODUCTION...........................................................................................................................3
Structure of the company, its management and governance.......................................................3
Importance of PESTEL analysis in organization.........................................................................5
PESTLE Analysis of Hilton Food Group Plc..............................................................................6
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................1

INTRODUCTION
Hilton food group is business of food packaging and the company was developed in
operative lamb and beef important meat production facility. This report states about the overview
of company and analysis importance of external business organization and framework
(Greenhalgh, Koh and Car,2020). This report also examine external factor that influences the
business environment.
Structure of the company, its management and governance
Hilton food group is public food industry which was founded in 1994 in Huntingdon, united
kingdom. It is food packaging company and listed in London stock exchange. Around 2007-08
May, the company was subject for initial public offering. In November, it went on deed Sea-
chill, who is supplier of frozen and chilled salmon. The company has many factories and sell out
their products to supermarkets across various developed countries (Matovic, 2020). It also has
joint venture with Woolworths group have retail business, to initiate meat process activities for
its stores and provided packaged meat for its stores from Portugal as joint venture of this
company. Since from last year, the facility for grown and some additional facility are packed in
Netherlands, after long decades new factories are open in many European countries and entered
into joint venture.
The product portfolio company includes chops, sandwiches, pizza, garlic breads, burgers, steaks,
rasher and so on. It also provides meals like fish, prawns. The company supplies beef and lamb
meat international to food retailer holder such as Tesco, Coop, Woolworths, Rimi etc (Shatskaya,
Samarina and Nekhorosheva, 2016). They currently work in many countries like Australia,
Poland, Denmark, Sweden.
Mission-
To fulfil the earth with light and caring of hospitality.
Vision-
Want to be first choice of guest, team members and owners
Values-
Teamwork for achieve the goals and consumer higher level of satisfaction with their products.
Respect their ideas and innovation by employee in company and also have feedback from
customer, that can be improved and have respect.

Improvement must be done with customer views, changing their meals menu with developing in
some countries their products and services.
Each of Hilton food plant are function on sacred basis for their customer and their business
model have been adopted to meet domestic area requirements customer in every country
(Stevenson, 2018). Recently Hilton food group has announced new facility opening in New
Zealand with Sea-chill meals which is leading chilled UK fish processor. Business strategies in
approaching new product development and have high range of customer services and satisfaction
level. Company operates in three segments Western, Central European and central costs.
Business in Holland, Denmark, Ireland and United kingdom segment are covered by Western
European.
They have relationship with suppliers who provide high quality of meat around the world aside,
sourcing product from many countries (Zio, 2018). This helps in given the cognition about
customer taste and preferences, that company make more negotiable and bonded highly supply in
competitive market. The company is people oriented in business and also committed in contain,
draw and processing the best available talent person for future successful. They have strong over
view in financial performance for sales, profitability, increase in volume and earnings per share.
Current COVID-19 outbreak has major challenges for economic and people across all countries.
Due to having these outbreak Hilton strategy in developing and growing continue opportunities
cross the countries business in both local and international markets as well as they are working
on online technology which helps their customer to be experience about their deliver value. Their
business model is working on management that has largely self-sufficient teams for business in
developing local country (Greenhalgh, Koh and Car,2020). In this outbreak there is increasing in
demand for protein products and this group helps in providing products at retail stores, as more
people has become health conscious in this outbreak and they prefer more protein products for
their family. In addition, for developing their business and making more flexible they have buy
models, which are continuing in playing a part of consumption the nation and encouraging
demands and needs.
The strategy for company to have relationship date with its existing customer, the director
believes that Hilton food group could be build strong in customer satisfaction by developing new
initiatives or having new product development and also take feedback from customer in
expansion for their plans (Matovic, 2020). They have open new food group in Ireland, hence

director is expertise in meat packing that can imported to some customer with different territories
for active consumer. This food group have positioned continuous expanding its operation with
present user basic of leading food international wholesale. Hilton develop their more product
along with that they offer more products for their customer and have flexible supply chain
management lines that helps easily in production of meats. They also work on developing some
innovative packaging for more developing of it company and customer in discount or offers.
The terms and condition of company are appointed by non-executive director that are acquirable
for examination that appointment by the registered office during working hours (Shatskaya,
Samarina and Nekhorosheva, 2016). There are seven boards of director in Hilton food group of
company. Chairperson of the company is Robert Watson OBE, who oversee the successful
growth and development for company. He relieved OBE around 2000-01 for having more
services industry about meat and also entrepreneur of Hall of fame in Ireland. As, non- executive
director appointed the chairperson on the board for company. The chief Executive officer (CEO)
Philip Heffer, was appointed on 1 July 2018 he was a sales director and earlier production
manager in Rumford wholesale ford meats limited.
Importance of PESTEL analysis in organization
It is very useful for every business in starting their own or have exiting business it could have
some strong impact on business which depend on industry for set up business or presently
operating. For developing and identifying external conflicts many more organization analysis the
PESTEL which are important follow below-
Political factor- In every organization there is important for government regulation and laws in
the economy. This can must include government policy, environmental norms, foreign trade
policy, market operate and margins on trade etc. Political factor have important impact on
business and analysis about how business can be do (Stevenson, 2018). Every business must be
able to take action their existing and expected potential legislation and their marketing strategy
consequently.
Economic factor- It have significant impact on how does business in organization does and how
they earn huge profit for organization. These factor include interest rates, exchange rates, income
of consumer and demand and supply. Macro and Micro environment are break down with this
factors. Macro environmental deals with demands of management in given economy and rates,

taxation policy further more they use micro environment factor for people spend their income
which have large impact on organizations.
Social factor- Population, growth, age, gender, caste discrimination, attitudes towards career and
so on. these are factor which are included in social factor which have more importance impact in
organization. Social media movement also helps business to make socially advance in
technology and more innovation (Zio, 2018). These following factor have directly impact on
market in understanding their customer needs and demands.
Technological factor- These factor have impact on business more digital and identify how fast
technology takes place in market product and services. In today times, social apps, mobile phone
helps in dealing with business commodity and it is way of conducting business. Important for
organization in developing new way of producing goods and services, their distribution and
communicating with their target markets.
Environmental factor- They have important in expansion of pollution target, raw material,
working business in ethical and with sustainable governments has fixed up carbon footprints for
every organization (Shatskaya, Samarina and Nekhorosheva, 2016). These are just some factor
that conflict which are faced by market, More and more consumer are demanding with their
products which may cause harmful, even it can be probable for sustainable resource.
Legal factor- It being clearly known by each company to follow the legal structure of
government for making business successfully. For starting organization it become very difficult
in some country as they have their own rules and regulation. Hence it is best to conduct the
business while by following the legal formulation in operating business or conducting business
(Greenhalgh, Koh and Car,2020). Basically legal factor in organization is important on such
factor health, safety advertising, consumer laws and rights, products labelling with their price
and so on.
PESTLE Analysis of Hilton Food Group Plc
Pestle Analysis is the framework used for strategic planning and is the acronym for political,
economic, social, technical, environmental and legal factors that helps in shaping the business
environment. Pestle analysis will help Hilton Food Group Plc to identify the external forces
which help in framing strategic plans for its expansion and growth (Stoyanova, 2019).

Political Factors – Political factors of the country have strong impact on the sustainability and
profitability of Hilton group. During the process of strategic planning company needs to consider
the various political factors such as political stability in the countries in which it is operating,
changes in the policies, governance system and public pressure groups etc. high political stability
means that the environment of the country is stable and growth can be predicted, but when there
is political instability company operations and economic growth are affected. Recently, Hilton
group has its operations in various countries in Europe, each country has its own political
scenario, Hilton Food Group analyse the political scenario, in order to know growth
opportunities available, also examine the government priorities as per the food sector and the
mature political system makes business environment flexible for the international companies like
Hilton food group plc. Hilton food plc should also inspect the corruption and bureaucracy
existing in the country, negatively impact the business. Hilton food group should also consider
the fact that the countries with the high tax rules, trade restrictions directly impact the
profitability and exports of the company.
Economic Factors – Economic factors help in determining the economic environment of the
country and also help in figuring the growth trajectory of the company and the industry in which
its operating in (Perera, 2017). Hilton Food Group Plc should analyse and consider the economic
factors such as economic cycle, inflation and exchange rates, economic structure, labour market,
financial market efficiency etc. as it help in making informed decisions and also affect the
growth of the company. For e.g. Entering in established economic country would be more
challenging than the developing country. The GDP rate of the country will also help in
determining the Hilton Group's ability to pursue its long term growth strategy, and the people
capacity to spend on the food products offered by the company. High unemployment signifies
the surplus labour available for the company in lower price. Expanding its business in such
market where the production cost is higher will provide benefits to the company. Likewise,
operating in efficient financial market will provide Hilton food group improved liquidity position
and strength to enter into new markets.
Social Factors – By evaluating the social factors and the demographic characteristics Hilton Plc,
can attract the consumer groups and maximize the appeal of the products presented to the
prospective customers. Transformation in the demographic patterns such migration trends; socio-
economic cultures can have great influence on the Hilton food group. Company should formulate

such marketing and business strategies and select right target market for the high growth
potential (Zhao and Dou, 2019). Company must its business practices while entering into market
by considering the high and low power distance as it shows level of inequality exists within the
country. As each society has its own culture and values that plays vital role in shaping the
consumer behaviour, Hilton Plc can develop teams and do partnership to understand the norms
of the society in which it is entering. It can formulate different strategies for different market like
for the high-end market company can offer luxury goods and offer affordable food products for
the middle-class consumer group. Hilton Food Group Plc, can also benefit itself by
understanding the online shopping behaviour of consumers, by the offering its products on the
social media platform and e-commerce websites because younger generation prefer online
shopping these days more.
Technological Factors – Technology factors analysis may help Hilton Plc, in attaining the
specific business advantages such as - innovation, enhanced operational efficiency, increased
profitability etc. Technological factors like innovation and development, research and
development on technology influence the cost structure and the business of Hilton Food Group
Plc. Company should analyse the ongoing technical innovations to gain competitive advantage
(Oraman and et.al., 2018). Use of social media platform can increase the reach as marketing
through the help of social media platform such Facebook, Twitter for highlighting its food
product and food service will target the users using that platform. Adoption of advanced
technologies has shortened the product life cycle, Hilton Food Group can develop the new
product fast, maximize the range diversity offered and integrate the flexibility into value chain.
Company should consider maturity level of technology existing within the market and then come
up with advance technology in order to benefit itself and the user with the help of proper
research and development.
Environmental Factors – Hilton Plc for expansion of its business must do the detailed analysis
of the environmental factors to avoid the undesired circumstance that may affect the business of
the company. Few factors that influence the Hilton Food Group Plc are: renewable technologies,
eco-friendly products, offering organic food products, recycling the waste management etc.
Company should adopt practises such recycling and waste management because these are highly
crucial and many countries have strict norms regarding this practice. If company invest in the
renewable technology this may increase stakeholder’s satisfaction and goodwill in the market.

Customers are growing more conscious about the eco-friendly products, by recognising this need
Hilton food Group plc offers organic products for the health conscious people. Company should
come up with more eco-friendly innovative initiatives such as by going green and reducing the
overall energy consumption that will also help in making the brand value.
Legal Factors – Legal factors such as consumer protection, intellectual property and employee
protection laws and various other laws related to the food industry are applicable to Hilton Food
Group Plc which influence the its business environment (Bessière and et.al., 2019). Company
must abide by all the laws applicable in different countries for its smooth operations. Hilton must
ensure that it provides safe and secure working environment to its workers and employees as this
is company’s moral and ethical obligation. Company should also practice its obligation regarding
consumer protection; all the information related to the consumer data must be secure with the
privacy. Hilton ensures that it always provide quality in its food products with respect to the
standards. Company has a customer support facility where any customer can talk or chat through
the website for facing any issue. Intellectual property regulations are intended to protect the
company’s valuable ideas. Hilton should make sure that its recipes are patented so that no ther
competitors can copy it, if the valuable insights are not patented, Hilton food group can lose
competitive advantage and this weaken its market position.
CONCLUSION
This report concluded that operating business or conducting business the owner should analyse
about their external factor and their competitors in target market. In report study about
importance impact of exterior factor in business and also concluded food group company
structure their director, with background of organization.

REFERENCES
Books and journals
Bessière, D., and et.al., 2019. A vision of re-distributed manufacturing for the UK’s consumer
goods industry. Production Planning & Control. 30(7). pp.555-567.
Greenhalgh, T., Koh, G.C.H. and Car, J., 2020. Covid-19: a remote assessment in primary
care. Bmj, 368.
Matovic, I.M., 2020. PESTEL Analysis of External Environment as a Success Factor of Startup
Business. ConScienS. p.96.
Oraman, Y., and et.al., 2018. WHAT EXTERNAL AND INTERNAL FACTORS AFFECT
ORGANIC FOOD SECTOR?. New knowledge Journal of science. 7(2). pp.33-44.
Perera, R., 2017. The PESTLE analysis. Nerdynaut.
Shatskaya, E., Samarina, M. and Nekhorosheva, K., 2016. PESTEL analysis as a tool of strategic
analysis in international markets. SCOPE ACADEMIC HOUSE B&M PUBLISHING,
p.47.
Stevenson, M., 2018. Assessing risk assessment in action. Minn. L. Rev. 103.p.303.
Stoyanova, A., 2019. Impact of external and internal circumstances on food safety
management. Trakia Journal of Sciences. 17(1). pp.386-394.
Zhao, J. and Dou, X., 2019. A Study of British Organic Food Market.
Zio, E., 2018. The future of risk assessment. Reliability Engineering & System Safety. 177.
pp.176-190.
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