Importance of Pestle Analysis for Hilton Food Group plc

This report provides an overview of Hilton Food Group plc, its structure, and the members of its Board of Directors. It also highlights the importance of Pestle analysis for the organization and how it helps in analyzing the external environment. The report further uses the Pestle framework to analyze the external environmental factors of Hilton Food Group plc, focusing on the political, economic, social, and technological factors. The findings show that political and legal factors play a significant role in the establishment of Hilton Food Group plc in the United Kingdom.

Business
Environment

Executive Summary
In this following report, there were overview of selected company by considered overall
aspect in terms of establishment of Hilton Food Group plc its manager, department, CEO and
other source which undertakes by organisation business operation. In second phase, described
about importance of Pestle analysation for an organisation perspective and at last to measured
external environment by utilised Pestle analysation. The key findings was in Pestle analysation
where political, economical and legal plays important role for Hilton Food Group as they wanted
to established their venture in United Kingdom in which most influenced factor was Political and
Legal.

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Task 1...............................................................................................................................................1
P1. Describe the structure of company, its managed and how it governs ..................................1
Task 2...............................................................................................................................................3
P2. Why is it important for organisation to carry out Pestle analysis?......................................3
Task 3...............................................................................................................................................5
P3. Using of Pestle framework to analyse the external environmental of selected company. ...5
CONCLUSION................................................................................................................................8
.........................................................................................................................................................8
REFERNCES ..................................................................................................................................9

INTRODUCTION
Business environmental is also term as market environment which is relates with
marketing aspects and external forces which affect to firm ability to build and maintain
successfully relationship with customer (Beatty., Samuelson and Abril, 2018). It emphasis to
control to organisation but it create an impact on performance, profitability and growth along
with long term stability. Each organisation is having different environmental influences business
that also affected through business activities. The purpose of business environment is to
attaining profit maximisation.
In this report, organisation is selected Hilton Food Group plc, it is British food packaging
business as company has listed on London Stock Exchange and was established in 1994
Huntingdon, United Kingdom to operate beef meat facility. To covering the topics are discussing
overview of Hilton Food Group plc with its structure as well as members of Board of Directors
(Bedi., 2018). By highlight importance of Pestle analysis for business organisation with reasons
and to use of Pestle structure for measure external environmental that influence organisation
from internal and external manner.
MAIN BODY.
Task 1.
P1. Describe the structure of company, its managed and how it governs .
Overview of Company
Hilton Food Group plc is food related packaging business and founded in 1994,
Huntingdon, United Kingdom. At beginning company top level management initially offers
public subject in May 2007 which was valued of that business 105 million pound. This company
owns six factories where they sells products in supermarket across fourteen countries in Europe
(Dima, Dima and Mahagaonkar, 2018). They also having a joint venture in other continent
locations such as Australia with Woolworth Groups, which is retail business that undertakes
meat related procedure for its stores.
Hilton Food Group plc come across for joint venture in Portugal with some other retail
based company Sonae Modelo Continente as this organisation supports for distributing and
packaging to Meat product for their food stores. The company total revenue is generates 1,814.7
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million pounds and net income is counted as 35.2 million pounds. Hilton Food Group plc
chairman is Robert Watson and CEO is Philip Heffer. Innovation of Hilton Food Group plc
having simple and clarity about their strategy in which they focuses on four key aspects that are:
 Building volumes with and extending product ranges for existing customers,
 Partnering with existing customer in new territories,
 Gaining new clients from new territories,
 Maintaining and uncompromising focuses on unit costs, quality and product
development.
As this company group has strong relationship with suppliers where they ensures to provide high
quality of meat across the world by procuring product from 40 different suppliers (Domazet,.,
2018). This practise facilitates to Hilton for high degree of flexibility to its customers the
knowledge that Hilton can secure supply at competitive rates.
Board of Directors: Robert Watson OBE- Executive Chairman.(He joined as Chief Executive in 2002 as
successful growth of date processing to become Executive Chairman on 1st July 2018). Philip Heffer- Chief Executive Officer.( Joined in 1994 as Managing Director and as per
performance he got to promote Chief operating officer and then Chief Executive officer
on 1st July 2018.) Nigel Majewski – Chief Financial Officer. (Nigel was hired as Finance Director of Hilton
in 2006 where he joined after 11 years with PepsiCo from the year 1995 to 2006 with
most recently as Chief financial officer at Germany). Christine Cross – Non- Executive Director. (She was joined to Hilton in year 2016 as
Food expertise Scientist before contributing her services 14 years to 2003 with Tesco in
senior roles by focusing on own brand). John Worby – Non Executive Director. ( John has joined Hilton in the year of 2016 as
Chartered Accounted with wealth of expertise in public sector food companies). Angus Porter – Non-Executive Director. (Angus joined Hilton in 2018 and has extensive
knowledge as well as having well experienced in public related companies in retail sector
with an MA in natural science and PhD from University of Cambridge).
 Rebecca Shelley- Non-Executive Director.(Rebecca joined Hilton as independent Non
Executive Director in recently 1 April 2020).
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Hilton Food Group plc Strategy
Hilton Food Group's opted strategy for creating of strong historic development,
leveraging its well founded business model by considering following key areas:
 Expansion with existing customer: To gaining success is design through serving to
existing customer as the company's Director having strong believe that Hilton group is
well placed by maintaining better and healthy relationship with their clients or customer
(Faghih and et. al., 2018.). By providing new specification products extension or new
product development in existing territories for expanding business plans.
 Constantly focus towards cost and quality: As Hilton Foo group has been invested
more advanced trait of technology resources as well as gain good amount of knowledge
related with business operations (Hartwell., 2018). To sourcing from raw material,
designing of packaging materials, increased efficiency in processing and storage solution
from implementing high structure of Information structure. They have invested over
capital expenditure up to 200 million pounds. By utilisation of advanced resources for
efficient resources quality and retain cost competitive. Hilton acquired expertise to
maintain facilities advanced technological for proper assorting which brings favourable
outcomes.
 Approaching new customers: Hilton continuous to determines opportunities by
accessing new clients from location manner. The relationships with existing customer
having affordability that increase their product demand (Ingenbleek, 2019). As Hilton
Food Group plans for manufacturing new product that brings scope and challenges to
compete with competitors, but they focuses to approach new product to new customer
from new countries by exploring Hilton organisation structure which produce economic
advantages for several parties (Mawejje and Sebudde., 2019).
Task 2.
P2. Why is it important for organisation to carry out Pestle analysis?
Pestle Analysis: It is framework which explains about macro environmental factor that
used in environmental by scanning components of strategic management. As this tool practise by
organisation while planning to execute their venture in outside of country region in foreign
region to gaining competitive advantages (Niemimaa and et. al., 2019).
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There are some importance with related to Pestle analysis in perspective of Hilton Food Group
Plc are:
Importance of Pestle for Hilton Food Group plc
 Pestle analysis helps to identify external threats which can create huge impact towards
particular company growth (Ramadan and Ahmad., 2018). Similarly, for Hilton Food
Group plc can expand their food packaging business in which Pestle assessment plays
important role to procure external related information with political, economical, social,
technological, environmental and legal. As through these external factor can affect every
business aspects of business and performances.
 As Start up or other form of business wants to execute its venture where Pestle identifies
overall gaps and every business owner to identifying significant fluctuates in political,
economic, technological, environmental and legal factors (Schalle, Vatananan-Thesenvitz
and Stefania, 2018). These impact can implies on business related activities as well as on
performances of Hilton Food Group plc.
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Illustration 1: Pestle Analysis, 2019.
Source: Pestle Analysis, 2019.

 Through Pestle analysis help to guide organisation to pursuing strategic planning to
expand their business.
 Other departments such as financial, operations, human resources, sales and marketing
can easily handle from internal managerial abilities by filling up more manpower to
increase sales to generate revenue (Tajeddini, Martin and Ali., 2020). The outcomes are
depended on people working inside. As Hilton Food Group plc need to focuses on
existing by contributing inputs.
 Pestle helps to reduces cost as well as time investment which assort as additional program
are there to support individual company to putting feedback.
 It is very effective to understand the factors that affect business environmental. As to
enhance by affecting the business environmental development (Tallman and et. al.,
2018). It helps to increase strategical thinking about and deeper understanding of
different aspects like new product , consumer laws and new advanced technology trends
etc.
 To provide optimum guidance to companies for preparing of possible threats which arises
on time accordingly through external factors. By providing new resources mobile
invention company or retail business like Hilton Food Group plc to get analysis new
threats for better innovation change of their mobile brands.
 Exploit opportunities in Pestle assessment provides more platform that arises from to
time due to external factors (Virglerova., 2018). By measuring opportunity in retail or
food packaging business which increase demand in food products in terms of quality,
quantity and range effect. Customer only utilise this opportunity when products are
affordable enough.
 Through Pestle analysis it mainly concerned with outside business environmental, within
each criteria are comprises some of activities such as physical laws, physical
environmental that depicts to describes about more ethics population. It also helps to
make decision making on particular situation for maximisation profit, as any market who
is potential enough to implement good and bad analysis to balance objective.
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Task 3.
P3. Using of Pestle framework to analyse the external environmental of selected company.
By using of Pestle analysation for Hilton Food Group Plc to identifying United kingdom
external environmental factor.
 Political: In this factor, it describes about norms, policies and regulation related with
corporate governance which formulated by particular country government. It influence
through include governmental policy, political stability, foreign trade policy as well as
certain labour laws which create impact towards infrastructure of company. As United
kingdom political situation is stable where many opportunities that Hilton Food Group
plc can attain long term profitability through certain country or market (Viriyasitavat and
et. al., 2018). The company is basically deals with food and beverages industry that
across various country to diversified on systematic risks of political environmental. Most
negative implication can arrives at the time of Brexit market which states about not
allowed European Union trade in United kingdom which can create huge loss making.
For examples: changing of policies can create positive or negative outcomes because
foreign trade policy or any other type of interest rates change can brings increase or
decrease in growth of Hilton Food Group plc business operation.
 Economical: It is factor that derives about inflation rates, saving rates, recession and
foreign exchange rate could consider appropriate demand which tend to invest in
economy. Some of competitive advantages which can create an impact of economic
growth such as inflation rates in food and beverages business industry where customer
are tend to invest more to fulfil their satisfaction (Martin, 2020). For example, if high
rate of inflation increases it could bring downfall of food and beverages product specially
Hilton Food Group plc, because customer can push to buy product as per its limits or
buying power. Other implication are recession or economic downfall can bring different
type of uncertainty such as unemployment, decreasing of supply and demand etc. There
is opportunity for Hilton Food Group plc that they can raise their capital from local
market as well as manufacture new trends of product and services, to provide more
employment to increase food and beverages quality. By comparing advantages of existing
country and consumer good sector in particular country.
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 Social: According to this factor, it defines to approaching customer or assessing
behaviour and attitude of which can bring impact to culture of an organisation business
environmental. It reflects towards set of beliefs and attitudes of population where it play
important role to identify the customer purchasing trend style in Hilton Food Group plc
that helps to understand customer design for food and beverages products. As Hilton
Food Group plc can focuses the changing of consumer behaviour as per product
perception to assess behaviour (Tallman and et. al., 2018). There are some of aspect
which can helps to approach buyers for their customer through demographic way as age,
gender, religion, taste and preferences. In other hand Geographical trend defines by
selecting customer on the basis of location or country aspects. Customer are hardly trust
on private product which manufacture through enterprenuer firms.
 Technological: This factor comprises fast growth to provide different traits of resources
as in advance type of Artificial Intelligence. In United kingdom there is having more
opportunity for technological factor (Virglerova., 2018). As Hilton Food Group plc can
bring different automation in form of advanced technology such as equipments which
increase the efficiency of manpower as well as company growth and it also enhance high
profit maximisation. To explore recent technological market develop for scrutinize
competitors movement that improve stability. Influence of cost in food and beverages
industry as well rate of consumer goods sector or rate of technological diffusion.
 Environmental: Through this factor it derives different market have significant norms or
environmental standards that creating impact profitability of particular organisation in
particular market. As laws are elaborates on the basis of particular country for examples
United Kingdom laws are very strict that derives on break to companies which operates
renewable sector. For Hilton Food Group plc, ensures their products are easily recycle
and they target new market to providing them new related meat product which match
standards. The company need to determine weather, climate change, laws regulating
environmental pollution and enhance wastage management in consumer goods sector. It
also influence to Hilton Food Group plc for contributing for society betterment which
facilitates positive brand image.
 Legal: As per this factor concerned depicts for different countries is having significant
laws or regulation that helps to protect intellectual rights. In United Kingdom, legislative
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rules are very impactful and strictly follows by people as well as company members.
There are some legal factors that Hilton Food Group plc manager should concern before
started new venture in other region. Employment laws, minimum wages act and other
organisational laws are very essential for working process should commence through
disciplinary manner. There is chances of changing in laws in terms of Anti trust law in
food beverages, discrimination laws, copyright or patents etc can create huge complexity
of issues. By enhancing proper laws and regulation in Hilton group it can change the
perception of company in market and support to reduces unethical working practises .
In above analysation of Pestle for Hilton Food Group plc, the positive and negative
outcomes derives from Political factor can brings opportunities in terms of new trading or
foreign policy but there is challenging of Brexit market which prevails in business operation by
not allowing European market.
CONCLUSION
From above report of business environmental has come with conclude that there is
discussion of different business environmental as explantation of company's history
along with its founders and number of employees who are currently work there. By
discussed importance of Pestle analysis and why it is important for business
organisation to evaluating external environmental challenges and opportunities. At last,
utilised of Pestle framework to evaluate of six factor which involve in analysis such as
political, economic, social, technological, environmental and Legal.
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REFERNCES
Books and Journals
Beatty, J.F., Samuelson, S.S. and Abril, P., 2018. Business law and the legal environment.
Cengage Learning.
Bedi, H.S., 2018. A contingency approach to proactiveness-business performance
relationship. Indian Journal of Marketing. 48(12). pp.34-49.
Dima, A.M., Dima and Mahagaonkar, 2018. Doing Business in Europe. Springer.
Domazet, I., 2018. Digital Transformation of Business Portfolio Through DCRM. Digital
Transformation-New Challenges and Business Opportunities. pp.214-235.
Faghih and et. al., 2018. A framework for business model with strategic innovation in ICT
firms. The Bottom Line.
Hartwell, C.A., 2018. Foreign banks and the business environment in transition: a cointegration
approach. Post-Communist Economies. 30(1). pp.19-35.
Ingenbleek, P.T., 2019. The Endogenous African Business: Why and How It Is Different, Why
It Is Emerging Now and Why It Matters. Journal of African Business. 20(2). pp.195-205.
Mawejje, J. and Sebudde, R.K., 2019. Constraints or complaints? Business climate and firm
performance perceptions in Uganda. The Journal of Development Studies. 55(12).
pp.2513-2525.
Niemimaa and et. al., 2019. Business continuity of business models: Evaluating the resilience of
business models for contingencies. International Journal of Information Management.
49. pp.208-216.
Ramadan, H. and Ahmad, S., 2018. The impact of business environment on performance of
manufacturing SMEs in Palestine: The empirical evidence. Asian Journal of
Multidisciplinary Studies. 6(2). pp.1-6.
Schaller, A.A., Vatananan-Thesenvitz, R. and Stefania, M., 2018, August. Business model
innovation roadmapping: A structured approach to a new business model. In 2018
Portland International Conference on Management of Engineering and Technology
(PICMET) (pp. 1-9). IEEE.
Tajeddini, K., Martin, E. and Ali, A., 2020. Enhancing hospitality business performance: The
role of entrepreneurial orientation and networking ties in a dynamic
environment. International Journal of Hospitality Management. 90. p.102605.
Tallman and et. al., 2018. Business models in global competition. Global Strategy Journal. 8(4).
pp.517-535.
Virglerova, Z., 2018, September. The relationship between business environment and
innovativeness of SMEs in the Czech Republic and Slovakia. In International Conference
on Innovation and Entrepreneurship (pp. 867-XXII). Academic Conferences
International Limited.
Viriyasitavat and et. al., 2018. Blockchain-based business process management (BPM)
framework for service composition in industry 4.0. Journal of Intelligent Manufacturing,
pp.1-12.
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Online
Hilton Food Group Plc PESTEL & Environment Analysis. 2020 [Online] Available Through:
<http://fernfortuniversity.com/term-papers/pestel/nyse4/6645-hilton-food-group-
plc.php>.
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