Importance of PESTEL Analysis for Hilton Food Group Plc

This article discusses the importance of PESTEL analysis for Hilton Food Group Plc. It explains how PESTEL analysis helps in market planning, business and product development, cost effectiveness, and understanding the market. The article also provides an overview of the structure, management, and governance at Hilton Food Group Plc.

Business environment

Table of Contents
INTRODUCTION.................................................................................................................................3
Task 1: Structure, management, and governance at Hilton Food Group Plc PLC..................................3
1.A) An overview and history of Hilton Food Group Plc PLC..........................................................3
1.B) How Hilton Food Group Plc is governed and structured...........................................................3
Task 2...................................................................................................................................................5
Importance of pestel analysis for an organisation..............................................................................5
Task 3...................................................................................................................................................7
PESTEL Factors or dimensions that influence on chosen and company............................................7
B. Applications of Pestel factor.........................................................................................................8
CONCLUSION.....................................................................................................................................9
Reference............................................................................................................................................11

INTRODUCTION
Business environment as defined by Keith Davis is the aggregate of all conditions,
events and influences that surrounds and affect it (Sinha, 2020). There are different tools and
models using which organisation can identify and analyse these influences of environment.
Pestle analysis is one of such model. Pestle analysis is important as it helps in identifying and
analysing external uncontrollable influences of environment. This involves influences that
have different opportunities as well as threats for company. This report will involve
application of Pestle Framework on Hilton Food Group Plc. Effective analysis of these
factors help in understanding impact of different environmental elements and what decisions
company should take to deal with these influences. Report will draw conclusion based on
findings of Pestle Analysis of Hilton Food Group Plc.
Task 1: Structure, management, and governance at Hilton Food Group Plc PLC
1.A) An overview and history of Hilton Food Group Plc PLC
Hilton Food Group Plc is a food packaging business. Company was founded in 1994
and is headquartered at Huntington, United Kingdom. Company was established to operate a
beef and lamb central meat packing facility and company became subject of an initial public
offering in May 2007 and it is listed on the stock exchange. It later acquired Seachill, a
company supplier of chilled and frozen salmon, in November 2017. Other than this, company
also have joint venture in Australia and Portugal. Hilton Food Group Plc is mainly dependant
on UK market that accounts for 52% revenue of company. Other than this, company operates
in Netherlands, Sweden, Denmark, Central Europe, Ireland and Australia. Company has 13
production facilities and employs 4718 employees.
1.B) How Hilton Food Group Plc is governed and structured
Organisational Structure of Hilton Food Group Plc
Hilton Food Group Plc follows an organisational structure. This structure groups
employees on the basis of their speciality, skills and related roles. This structure is based on
levels of hierarchy that include different departments, and these departments are directed and
governed by different departmental leaders (San Cristóbal Mateo, FERNANDEZ ALVAREZ
and Díaz Ruiz de Navamuel, 2018). In this departments mainly are based on functions that
are carried out in organisation and employees are employed and grouped on the basis of their
roles within organisation. Business in this organisation achieves their objectives on the basis
of coordination of different departments. This organisational structure has clear hierarchies,

responsibilities, authorities and reporting lines. This organisation structure facilitates
information regarding responsibility and authority and individuals in organisation are clear
regarding whom they needs to report.
Directors on the Board and executive and non-executive directors
There are 6 directors in Hilton Food Group Plc among which 3 director are executive
and three are non-executive directors of company.
Executive directors of company involves-
Robert Watson- Chairman of Hilton Food Group Plc joined company in 2002 as chief
executives and on 1 July 2018 transitioned into executive chairman.
Philip Heffer- Chief executive officer of Hilton Food Group Plc and joined company at its
inception in 1994 as managing director of the group’s UK subsidiary and since 2012 has
served as Hilton’s chief operating officer.
Nigel Majewski- He was appointed in company as chief financial officer in 2011.
Non-executive directors of company involve-
John Worby- He joined company in 2016 and is a chartered accountant with a wealth of
experience in public companies.
Christine Cross- Joined Company is 2016 was a food scientist
Angus Porter- Angus joined company in 2018 and has extensive knowledge and experience
in public companies.
Chairperson and CEO of company
Robert Watson
Chairperson of company is Robert Watson as chief executive in 2002 and in 2018 he
transitioned to executive chairman. He has overseen successful growth of the group to date.
Has also had experience in Foyle Food Group and was also a board member of the Livestock
Meat commission and food for Britain. He is also chairman of nomination committee.
Philip Heffer
Philip Heffer joined company from its inception as managing director of group’ UK
subsidiary and has served as chief operating officer of the company since 2012 and on July

2018 he was promoted to chief executive officer. Before Hilton he held senior positions
within RWM food group.
Board is collectively responsible for promoting the success of the group within a
framework of prudent and effective controls that enable risk to be assessed and appropriately
managed. Board is also responsible for setting and approving the strategy of organisation and
key policies of the group and monitoring the progress towards achievement of objectives of
Hilton Food Group Plc (Zhou, Owusu-Ansah and Maggina, 2018). Another responsibility of
board is to enhance shareholders’ value by providing effective and efficient entrepreneurial
leadership to Hilton Food Group Plc. Other than this, board also ensures that company is
being appropriately being governed are maintained in place. For governance of company
board of the company also has specific powers reserved for it.
Powers of board involves-
 Change in capital structure
 Acquisition and disposals
 Major trading agreements
 Major capital expenditure projects
 Dividends
 Treasury and risk management policies
 Giving of any guarantee and letters of comfort
These are certain powers that are reserved to board of the company and also help in effective
governance of the company.
Task 2
Importance of pestel analysis for an organisation
It is necessary for the Hilton food group plc To understand the importance of PESTEL
analysis So they can take competitive advantages within a market where they are operating
their business. Leaders and managers are top superiors of the company and they Can create
opportunity for the Hilton food grow and help them to grow their business. PESTEL analyses
It’s used to identify factors that are affecting their company. it can be used for marketing
planning, cost effectiveness, product development and provide more depth understanding of
the market.
Market planning

Hilton food group plc can plan for the market I introduce new product as well. They can
identify what are the needs and demand of the customers through the social factors and plan
accordingly (Kasemsap., 2016). marketing planning is not only include the product but it also
include things like prices of the raw material through the economic factors. political
environment that can affect the strategies of the company etc. Expansion of market also part
of market planning, Hilton food group plc can plan for the expansion of their business in
other countries through the pestel Analysis. it will help them to identify the factors that can
affect in the other country such as political factor, economic, environmental, social and legal.
Business and product development
Hilton food group plc can also use pestel analysis to develop a new product an grow their
business. they can develop their product according to the needs and even of the customers by
analysing the social factors. similarly they can also use some other factors such as technology
that can be used to develop a new product, how market will be response and what are the
social needs of the customers and how their product can add value for them. Company can
also give support toward the environment and it will help them to create good image within a
market where they are operating their business.
Cost effectiveness
Hilton food group can use policies that are made by government to get profit an create cost
effectiveness within their business. it can only be possible if they are aware of government
policies that are specially made for companies to enhance their profits. they can add some
value and customers life by providing the best quality and less price product to them. they
should always aware of economic changes so they can be control the risk an provide cost
effective product prices to their customers (Doh, Luthans and Slocum., 2016). It will help
them too take competitive advantages within a market and they were able to gain loyalty of
the customers.
Understanding of the market
PESTEL analysis Can help to provide more depth understanding of the market to the Hilton
food group plc. Company available too identify the opportunities that can help them to grow
their business. It is one of the best way to identify the new opportunities for the business and
it is effective to create strategies to welcome from the factors that are affecting their business.

Task 3
PESTEL Factors or dimensions that influence on chosen and company
All the factors that are described within a pestel analysis Has huge impact on the Hilton food
group plc. Factors such as political factor, Economic factors, social factor, technological
factor, environmental factor and legal factor. This all have huge impact on the company.
Political factors
Political factor has huge impact on companies policies and their strategies, it is necessary for
the company too aware about the government policies, , competitive regulations,
advertisement standards, price control, internal trading tariffs, restriction’s Texas etc (Perry-
Kessaris., 2016). Awareness of this all factors will help Hilton food group plc 2 overcome
from the negative impact of political factors and they can also create opportunities from the
political factors by giving their support.
Economical
Economic factors are determined up the certain economic performance. Factors in the
economy can include the growth of economy, inflation rates, interest rates, exchange rates of
a particular country, disposable rates an unemployment rate within a country. This all factors
have direct an indirect long term impact on the Hilton food group plc.
social factor
this dimension of the general environment represent the demographic norms, characteristics
customs and value of the population within which the Hilton food group plc Operate their
business. it can also include some barriers are population trends such as age distribution,
growth of the population, lifestyle of the people within our country and some cultural
barriers.
Technological Factor
Technology has used impact on operations and sales of the company. this refers to the
technology incentives, the level of automation, information and research and development
(Kara, fandFırat., 2018). Technology provide opportunities for the business to grow and
show their presence within a market. Hilton food group plc can also take competitive
advantages by using or implementing a technology within their workplace.
environmental factor

and why mental factor is becoming most important due to the increase of scarcity of raw
material, carbon footprint target set by the government and also a pollution targets. It is
necessary for Hilton food group plc to give their contribution toward the environment so they
can create awareness among the people about importance of environment and how it is an big
issue for our society.Hilton food group plc can also take competitive advantages by using or
implementing a technology within their workplace.
Legal
All through these factors may have some overlap with the political factors the cause it
includes more specific laws such as antitrust laws, customer protection laws come on
discrimination laws, patents and Copyright. it is clear that the Hilton food group plc need to
know what is an what is not legal in order to trade successfully and ethically(Cascio, and
Boudreau., 2016). Hilton food group plc is operating their business and all over the world and
it is necessary for them to understand the importance of legal factors. they should have proper
licencing and they also have to work according to the law mad within a other country.
B. Applications of Pestel factor
Environmental factors has huge impact on Hilton food group plc. It is necessary for leaders
and managers of the company to aware of the factors that are affecting their business. Here
are some factors that are affecting the companies profitability an it have both positive and
negative impact on the Hilton food group plc.
Political factors
Tesco food plc is one of the top leading company who are operating their business on the
international level and they are having good reputation in the market. political factors such as
tex structure within our countries has huge impact On their product prices. Text structure
increase the prices of the product which create difficulty for the Tesco food to provide
additional benefits to the customers by decreasing the price.
Economical factors
Economical factors such as increase and decrease in prices of raw material has huge impact
on Hilton food group plc. Hike in the price of raw material impact on final cost of the product
and services sale by Hilton food group. similarly when prices of the raw material decrease
then this company can provide their products in lower prices and add some value for their
customers.

Social factor
It is necessary for the Hilton food group plc to understand the needs and amount of customers
and add some value in their life (Nambisan, Zahra and Luo., 2019). Hilton company provide
sales and discount on their food product that helps to add some value in customers life an
they can save some money by buying the food from the Hilton. Hilton leaders create
products according to the current lifestyle and demand of the customers. it helps to satisfy
their needs and demand and make them happy with the purchase from Tesco food plc.
Technology
Technology has provided huge benefits and opportunities for the Hilton food group plc. this
company is using latestAt their workplace. This is helping them Make it more productive and
with a better quality. it is necessary for the Hilton food group to use latest technology within
their workplace so they can take competition within the market and they can show their
presence as a leading brand.
Environmental factors
The growing environmental pollution coupled with the technology advancement has create a
force on the business organisations such as Hilton food group to adopt innovative recycling
and waste management practises within their business (Kasemsap., 2018). it is helping them
to recycle and manage the of the food product they are selling. they used the expired food to
feed the animals which is best source of recycling. this company is also giving their
contribution toward the climatic conditions order climate change by organising a programmes
that is awaiting people about the effects of climate change.
Legal
Hilton food group is following all the employment law an health and safety laws within their
workplace. it is helping to ensure the safety and security of the employees who are working
with them and they are aware that employees are most important part of the organisation.
They’re also having all the licence to run their business within a countries.
CONCLUSION
On the basis of above discussion, it can be concluded that Hilton Food Group Plc is
effective managed and being effectively governed by company. This governance and
decisions of the company gets affected by external macro environmental factors. Concerned

with this importance of Pestle analysis was discussed and discussion outlines that pestle
analysis is very important for analysing external factors and how they influence company and
its successful operations. This report than applied pestle analysis to Hilton Food Group Plc
and application of pestle analysis outlined that Hilton Food Group Plc operates in highly
complex and complicated business environment, this involve influences and impact of
different factors like political, economical, social, technological, legal and environmental
factors. Among these factors political, legal factors are highly complicated and economical
factors has influence on economic condition of the company and social environment has
impact on success of business environment.

Reference
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