Importance of PESTEL Analysis for Hilton Food Group

This document provides an overview of the Hilton Food Group, including its governance and structure. It explains the importance of PESTEL analysis for the organization, highlighting its role in market planning and understanding new markets. The document also discusses the factors that influence the company's functions and provides an application of PESTEL factors. The information is relevant for business students studying business environment and strategic management.

Business environment

Table of Contents
Introduction...............................................................................................................................................3
TASK 1.......................................................................................................................................................3
A: Overview of the company...................................................................................................................3
B: governance and structure of the company...........................................................................................4
TASK – 2....................................................................................................................................................5
Importance of pestle analysis for the organization...................................................................................5
TASK 3.......................................................................................................................................................7
Factors that influence on companies functions........................................................................................7
3B application of pestle factors...............................................................................................................8
Conclusion................................................................................................................................................10
REFERENCE..........................................................................................................................................10

Introduction
The business environment means all the external and internal factors that affect companies
functions such as customers, supply and demand, customers and management of the company.
The Hilton group PNC is an multinational company who are supplying and packaging the meat
products. Company has well maintained structure that enable communication within the
organization. This report will explain the importance ofPESTEL analysis for the business
organisation. It will also include application of pastel framework to analyze the both external an
internal impact on the Hilton group. In the end of this report well conclude summary of the
findings.
TASK 1
A: Overview of the company
Hilton food group plc is an food packaging business In United Kingdom. This form has
headquarter is inhuntingdon, UK. This company was founded in year 1994 hand key people of
this company are robot Watson who is chairman of this company Anne Philip heffer Is an CEO
of the Hilton food group. This company was established to operate a beef Anne the lamb central
meat packing facility Anne huntingdon. This company hasn’t more than five factories and the
sale their products within the UK supermarkets. they are also having business in across the UK
and they are selling their product in 47 Countries in Europe (Čepel, M., Stasiukynas, A.,
Kotaskova, A. and Dvorský, J., 2018) . This company has also joint venture wet Woolworths

group which is an retail business and Australia, to undertake their meat processing activities for
their stores. Hilton food packaging group also have one of their venture in Portugal And their
collaboration is with sonaeModeloContinente. It is there another retail business to provide meet
for it store.
They are one of the top beef meat provider in a packaging form all over the UK that operating
income is around 55.8 million dollars and its revenue was around 1814 million in year 2019. this
shows that how effective their business is and there also selling their product on their own
website. People can order their product by visiting their websites and satisfy their needs and their
demands.This company is listed on the London Stock Exchange and is a constituent of the FTSE
250 index. ITheHilton’s Business model is to source it's primal meet from the global and local
base of quality suppliers, which it then process an pick in large scale, central meat packaging
plans for onward distribution by third party hauliers. They are also supplying their packaging
product to the major retailer companies within the United Kingdom such as Tesco, Marks and
spencer’s etc.
B: governance and structure of the company
Organizationalstructure of company
An organizational structure is the proper system that outlets how certain activities of the
companies are directed in order to achieve goals and objectives. This kind of activities can
include responsibilities coma rules and roles of the Each and every stakeholders (Gavurova, B.,
Packova, M., Misankova, M. and Smrcka, L., 2017) . Mainly organiser structures determine how
the floor between different level of organization within the company will flow.
Hilton food group plc use mechanistic structure for their company, it is also known as
bureaucratic Structure. It is known for having the narrow spans of controls over the different
different levels,specialization, centralization an formalization. This kind of structure is much
more better than the organic structures, using specific standards and practices to govern every
companies this isn't making in the business. It helps top level to flow their information without
any barrier to the lower level of company top management send the information to the managers
Ann managers give that information to the supervisor’s and supervisors distribute this
information to the lower level of employees who are working in a company. Similarly lower
level employees can also send any kind of information through the mechanistic structure. They

provide information to the supervisor’s and supervisor gave to managers and managers to the top
management.
Board of directors of the company
The Hilton food group plcHave seven members in a board of directors list. There are 2 executive
directors and three known executive directors and one executive chairman in total. Companies
chief executive officer an executive director is Philip John Since 2018 and his age is 53 right
now, executive chairman is Robert Andrew since 2018 and his ages 60. Jaune Graham is An
senior independent no executive director since 2016 and his ages 68Robert Andrew Watson,
Chairman, Hilton Food Group PLC ( 2020). Angus and Rebecca Both are non executive director
of the company (Veselovsky, M. Y. And et. Al., 2017) .
Chairperson and CEO of the company
Philip hefferIs an CEO of the Hilton group food plc. who join this company as a managing
director in 1994 and he progressing to the chief operating officer and after that he directly
appointed to the CEO post in this company on July 2018
Chairman of the Hilton group is an Robert Watson since 2002 and has overseen the successful
growth of the group to date progressing to become executive chairman on 1st July 2018.
Elected and appointed
Flip was appointed as a CEO of the Hilton group plc On the 1st July 2018. It was the date when
he was appointed as a company CEO and it is top most position indie company. while chairman
of the Hilton group, Robert was appointed as a chief executive of the company on same date
when Philip was appointed as a CEO. Appointment date of Robert was one July 2018. Similarly
other members Within the companies board of director was appointed on the same date 1st July
2018.
TASK – 2
Importance of pestle analysis for the organization
PESTEL analysis it's one of the most important tool that can help company 2 understand the
main external factors that can affect their company. leaders and managers of the Hilton group use
this tool to take competitive advantages within the market by positively using the Factors for

their advantages (Akhmetshin, E. And et. Al., 2017) . It can be useful for the companies
marketing planning coma it can help to provide depth understanding of the market and mostly it
can help Hilton too identify the opportunities that they can grab through the pestle.
Market planning
PESTEL Analyze this Can be useful for market planning of the Hilton group. If they are thinking
to launch new product in a market then they canThey can take the help off economic factors to
understand the training goods and services that can be used by them. Hilton can launch new
products within the market so they can take higher growth in the industry where they are
operating their business. Similarly, social factors such as customers needs and demand can
provide them clear idea that’s what customers actually needed and they can also understand that
that their product able to satisfy their demand or not.
Understanding of new market
This tool can be useful for Hilton group food to understand any new market because all the
factors included in pastel analysis Can able to provide useful information for the company.
Political factors can help them to know what are the policies, text structures and political
environment the target country have. Every country have different kind of people and they’re
dim and also different so company can understand customers through the social factors.
Economical factors can help them too no employment, interest rates ATC that can be helpful for
Hilton to grow their business (Virglerova, Z., Dobeš, K. and Vojtovič, S., 2016) . They can also
know the trending technology used by companies within the target market, Hilton can also adopt
that new technology and take competitive advantages.
Opportunities
Pastel analysis Can provide opportunities for the Hilton group food and they can take
competitive advantages within the market where they are operating their business. By using this
tool they can always be aware about the factors that are affectingand they can make proper
strategies to overcome from threads. Company can give contribution toward the environment
and it will help them too create good image among their customers and they were able to gain
customers loyalty. Similarly, company can also follow all the political and legal rules and paying
taxes they can create good image In the mind of political parties. this will help them to get better

support from the politicians and they can able to create knew opportunities for their business
expanding.
Cost effective
Economical factors such as interest rate, inflation rate, exchange rates, income of the customers
ATC they can have direct impact on the Hilton food group as they are affecting the purchasing
power of the customers and can change supply and demand in the economy also, it affect the
prices of companies product and services. It can be cost effective for the company if they are
aware of employment and unemployment rates within a country. If a employment within the
country is higher then the employees can create a force on the companies too increase their
salaries while unemployment rates within the country is high then employees will be ready to
work for the company in lower wages so Hilton can save money and they can invest that on
something else Such as providing training to the employees it will make their workforce more
effective and strong (Kozubikova, L., Homolka, L. and Kristalas, D., 2017) . They will able to
take competitive advantage and they will able to show their presence in a market.
TASK 3
Factors that influence on companies functions
There are six factors in total within a pestel analysis that has direct impact on companies
profitability, employees even on the company structures and regulations. Here is proper list of
pastor factors our dimensions that influence the environment of Hilton group food plc.
Political factors
Political factors include all the government policies, foreign trade policies,, advertisement
standards,Labor laws, tax and tariffs, trade restriction’s, price control etc. It is necessary for
company to be aware of all this element of political factor.
Economical factor
Economical factors include the growth of an country that is known as GDP (Akhtar, M. and
Sushil, S., 2018) . It is also include interest rate, exchange rates, taxation international trade,
currency an taxation levels etc.
Social factor

Social factors may include, cultural norms, population growth often country, lifestyle of the
people, age and gender distribution, education level of the people and living conditions etc.
Awareness of all this elements can help company to take competitive advantages.
Technological factors
Technological factors such as social media tools, trending technology within a food and beverage
Can be helpful for company to take competitive advantages.
Environmental factors
It is necessary for Hilton group to be aware of environmental factors such as climate change,
global environmental policies, waste management rules and regulation and green practices to
create good image in customers mind and government as well.
Legal factors
Legal factors are similar to the political factors and it includes employment laws, changing laws,
licensing, tax and all the barriers created to the politics and government
3B application of pestle factors.
PESTEL analysis of Hilton group food plc
Political factor
Political factors plays most important role in determining the factors that can impact Hilton
foreign long term of their probability and some of the markets and countries (Eling, M. and
Schaper, P., 2017) . Best companies operating their business in more than 12 countries and they
are exposed to with the different different political environment and political risk. Every country
have different political text structure that has huge impact on this Companies profitability. They
are also having a risk of political corruption which means if they want to operate their business
in a particular country then they have to pay money to the politicians.
Economical factors
economical factors has huge impact on Hilton, some of the factors such as interest rates, saving
rates, and foreign exchange rate Are part of the economy. degrees in a focus foreign exchange
rate can impact on profitability of the companyHilton Food Group Plc PESTEL & Environment

Analysis. (2020). most of the countries considered dollar as in exchange rate. on the basis of
economic condition within a country exchange rates change with the time when exchange rate go
high then Hilton group food plc has benefits and they can earn more probability while decrease
in exchange rates can have negative impact on companies profitability and they can also suffer
from Losses.
Social vectors
Customer demand change with the time and it is important for the company to understand the
demand and needs of their customers. To satisfy their demands Hilton group food can
communicate directly to the customers and take feedback from them to develop their existing
products. Changes within the products well satisfy demand of the customers and they will able to
gain loyalty of the customers (Lee, I. ed., 2201) . It will provide them competitive advantages
within the market where they are operating their business. Another social factor that impact huge
and the probability of Hilton is Covid 19. It affect on the health and welfare condition Of the
customers and also effect on the companies probability.
Technological factors
Technological factors such as new trends within a market has huge benefits for in Hilton food
group plc. They are using trending technology within the industry to take competitive advantages
and they are able to show their presence in a market. Another element that provide huge benefits
to the Hilton age companies intellectual property. Company has intellectual properties such as
Copyright, patents etc. It is helping them to Protect their new ideas, design, an new inventions of
the company. If they arehaving intellectual rights then they can take legal action if any other
company tried to copy their innovation or concept without their permission.
Environmental
Environmental factor also have huge impact on companies reputation within the market. it is
necessary for Hilton food group to give their contribution toward the welfare of environment by
doing green practices. that well help 2 protect the environment and they will also able to create
better imagine customers mind. company can also walk toward the waste management and they
can use it to feed animals. it will be good for the environment and animals too.

Legal factors
It is necessary for the Hilton group to follow all the legal policies made by the government. they
should also pay regular taxes to the government to create good image in their mind. Hilton group
his following all the legal policies of the country where there operating their business. they are
having all the license and legal documentation to run their bodies businesses in different different
countries (Fabus, M., 2018) . They are having good reputation in the market because they pay
their taxes on the time and able to create good image because of that.
Conclusion
As per the report has been concluded case study of Hilton group food plc. this report has been
covered overview an their history. it also has been discuss about board of directors of the
company including their elected and appointed date.On the another task this report has been
discuss that how pestle analysis help in companies market research, find opportunities and
provide benefits to the Hilton. In the past three this report has been create a list of factors that
influence the environment of Hilton group food Plc. It has been also included pastel analysis of
the company briefly And discuss how this all the factors I affecting the company in both positive
and negative way.
REFERENCE
Books and journals
Akhmetshin, E. And et. Al., 2017. Analysis of innovation activity of enterprises in modern
business environment. Journal of Advanced Research in Law and Economics. 8(8 (30)).
pp.2311-2323.

Akhtar, M. and Sushil, S., 2018. Strategic performance management system in uncertain
business environment. Business Process Management Journal.
Čepel, M., Stasiukynas, A., Kotaskova, A. and Dvorský, J., 2018. Business environment quality
index in the SME segment. Journal of Competitiveness.
Eling, M. and Schaper, P., 2017. Under pressure: how the business environment affects
productivity and efficiency of European life insurance companies. European Journal of
OperationalResearch. 258(3). pp.1082-1094.
Fabus, M., 2018. BUSINESS ENVIRONMENT ANALYSIS BASED ON THE GLOBAL
COMPETITIVENESS INDEX (GCI) AND DOING BUSINESS (DB): CASE STUDY
SLOVAKIA. Journal of Security & Sustainability Issues. 7(4).
Gavurova, B., Packova, M., Misankova, M. and Smrcka, L., 2017. Predictive potential and risks
of selected bankruptcy prediction models in the Slovak business environment. Journal
of Business Economics and Management. 18(6). pp.1156-1173.
Kozubikova, L., Homolka, L. and Kristalas, D., 2017. The effect of business environment and
entrepreneurs’ gender on perception of financial risk in the smes sector. Journal of
Competitiveness.
Lee, I. ed., 2017. The Internet of Things in the Modern Business Environment. IGI Global.
Veselovsky, M.Y. And et. Al., 2017. Business environment in Russia and its stimulating
influence on innovation activity of domestic companies. Journal of Applied Economic
Sciences. 12(7).
Virglerova, Z., Dobeš, K. and Vojtovič, S., 2016. The perception of the state’s influence on its
business environment in the SMEs from Czech Republic. Administratiesi Management
Public.
Online
Robert Andrew Watson, Chairman, Hilton Food Group PLC ( 2020). Online available though.
<https://www.bloomberg.com/profile/person/16012438>
Hilton Food Group Plc PESTEL & Environment Analysis. (2020). Available through
<http://fernfortuniversity.com/term-papers/pestel/nyse4/6645-hilton-food-group-
plc.php#:~:text=PESTEL%20stands%20for%20-%20Political%2C%20Economic,players%20in
%20the%20Food%20%26%20Beverage.>