Hilton Food Group: Overview, Organizational Structure, and Pestle Analysis
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This report provides an overview of Hilton Food Group, including its history and organizational structure. It also highlights the importance of Pestle analysis and examines the macro environmental factors that affect the business. The report covers political, economic, social, technological, and environmental factors.
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BUSINESS ENVIRONMENT
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EXECUTIVE SUMMARY The report is aboutHilton food group that operates in food industry to supply products and services to number of supermarket chain so that needs of customers can be satisfied. It has covered information related to organisational structure, executive and non executive directors or the way company is effectively managed and governed so that objectives can be achieved. The report has also described about importance of Pestle analysis and analysis macro business environment of Hilton food group.
TABLE OF CONTENTS INTRODUCTION...........................................................................................................................4 TASK 1............................................................................................................................................4 A) Overview of company with its history...................................................................................4 B. Organizational structure of Hilton Food group Plc................................................................5 TASK 2............................................................................................................................................6 Importance of Pestle analysis for business organization.............................................................6 TASK 3............................................................................................................................................8 Pestle analysis/ macro environment analysis..............................................................................8 CONCLUSION..............................................................................................................................10 REFERENCES..............................................................................................................................11
INTRODUCTION Business operates in environment which is ever changing or dynamic in nature so it become complicated for manager to decided accurate action, steps or strategies that could be fruitful in growth and success of organisation. Hilton food group is food packaging business that has its headquarter in United Kingdom that delivered qualitative services to customers. This report is based on Hilton food group and covered points related to its history, organisation structure and governed. It also explained about importance of pestle analysis and enumerates several external or macro environmental factors that impact adversely on growth and operation of business. TASK 1 A) Overview of company with its history Hilton food group is private limited company that was initially founded in 1994 as beef and lamb central meet packaging facility in Huntingdon. Company sells its products and services in number of supermarket that are situated in fourteen different countries of Europe. It is leading international food packaging business supplying varieties of product to retailers such as Tesco (Hilton, 2020). Company is rapidly expanding and growing its business operation like it have six factories across Europe and two joint ventures that have contributed in enhancing profitability. It has adapted business model that is capable of meeting customers’ requirements in various countries. History of Hilton food group In 1994 it was initially established inHuntingdon to supply products to Tesco, then in 2002 it have open new factories in Ireland, Drogheda and Vasters. In 2008, expended supply breakfast meat and 2013 it form joint venture with Woolworths in Australia and new supply agreement with Tesco in United Kingdom. In 2016, Company have further extended its business operation to take advantages of numerous opportunities such as increase range of pizza and launch of Hilton food solution in UK. And finally in 2019, it has opened new facility in Brisbane, Australia and form agreement to make investment of capital in Belgium in order to supply products and services to Delhaize (History of Hilton Food Group, 2020). So, Hilton food group always grow and expand its business by entering into international market and forming joint ventures with local firms.
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B. Organizational structure of Hilton Food group Plc The organizational structure is defined as the way in which the activities of the business are being directed with the aim of attaining the objective of the business. Within the structure of the organization comes the hierarchical structure in which the company will operate (Ahmady, Mehrpour and Nikooravesh, 2016). This generally includes the structure which outline role of every person and states the hierarchy that who will report to whom and in what manner. Managing the organization structure is the most essential thing for the company as this includes the board of directors and other major people who are involved in the decision making and top management of company. This is particularly essential as if the directors and board of members will not be effective then this will have a great impact over the working and operations of company. Number of directors in Hilton Food group Plc There are total of seven directors within the board of company who are responsible for the management and decision making of company. All the major decision are being undertaken by these board of directors only. Out of these some are executive and some are non- executive directors of the company. The list of directors is as follows- Executive ChairmanRobert Watson OBE Chief Executive OfficerPhilip Heffer Chief Financial OfficerNigel Majewski Non-Executive DirectorJohn Worby Non-Executive DirectorChristine Cross Non-Executive DirectorAngus Porter Non-Executive DirectorRebecca Shelley From the above list it is clear that there are four non- executive directors and rest are executive directors (Board of directors, 2020). All these people are majorly responsible for all
the working and the strategies being implemented within the company. All the strategies for the company are discussed and implemented by these people only. Further the profitability and growth and development of the company is also dependent on them only as they have all the powers to take the decisions. All the non- executive directors of the company also assists in decision making and help company in improving the business. Chair person and CEO of Hilton Food group Plc The chair person is an executive which is elected by the company for the board of director who is responsible for presiding all the board meetings. On the other side CEO is the person whose primary responsibility is taking corporate decision and overall operations of company. The chair person of Hilton Food group Plc is Robert Watson OBE and the CEO that is Chief Executive Officer is Philip Heffer. Time when they were elected and appointed Robert Watson joined the company as the chief executive in the year 2002 and with his hard work and commitment he became the executive chairman on July 1, 2018. On the flip side Philip joined the company at its initiation only in 1994 as the managing director of the company. After working for so long and with good progress he first became Chief Operating officer and then after was appointed as the CEO of company 1 July 2018 as well. HILTON FOOD GROUP DirectorsNon- executive directors Robert Watson OBE (Executive chairman) Philip Heffer (CEO) Nigel Majewski (CFO) Christine Cross (non- executive director) John Worby (non- executive director) Angus porter (non- executive director) Rebacca Shelly (non- executive director)
TASK 2 Importance of Pestle analysis for business organization Pestle analysis is the marketing tool which is being utilized by the business organization for the purpose of determining the prevailing macro environmental factors having an influence over the entire industry. The result of the analysis is useful by the organization as it supports in identifying the key threats which might arise in future over which the business is having little or no control. For the point of a business organization, it is helpful in analyzing the market in which the business sis willing to enter (Shtaland et.al., 2018). It can be used by the startup businesses or the existing business organization. It is helpful for the business organization which is looking for expanding their business. This tool helps in identifying the changes that might take place in an organization because of the factors such as political, environmental, social and other factors as well. This is helpful for the organization in carrying out the effective strategic planning as everything is in accordance with the result derived from the analysis. The most important thing about pestel is that it helps in easily understanding the factors which can influence the future business function and operations. Under the case of introducing new product, it increases the strategical and critical thinking aspects along with gaining higher perspective on the various other factors such as technological changes, employer and employee law, minimum wages law, consumer rights law and so forth. It provides assistance to the organization in in getting prepared for the potential threats which might arise due to the outside factors(Helmold,2019).Forinstance,inamobileproducingcompany,anychangeor introduction of new innovative feature can pose as a threat to the organization if the same fails to adapt the change on time resulting into losing of the market. Along with that, pestle analysis supports the businesses in grabbing opportunities which can arise anytime because of these external factors. For example, the low interest rate under the housing sector which is an economic factor can create opportunity for the business for rising the demand of the housing since the price for the house loans has become cheaper because of reduction in the interest rate. It is very clear that the Pestelanalysis is a very important marketing tool in order to determine the steps that the organization is required to undertake or follow in order to work legally and ensuring that everything goes in accordance with the relevant rulesand regulation which assists the organization in reducing the chances of government intervention. It also helps in ensuring that organization carries out its activities in a sustainable way with respect to the
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current climate change or upgradation in the technology. It becomes very essential for the business organization to look after these factors as these have the potential to either benefit the organization or cause negative impact on it. After conducting this, the SWOT analysis can be easilycarriedout.Thus,onanoverallbasis,Pestelanalysissupportsthebusinessesin strategically managing their business operations and functioning.
TASK 3 Pestle analysis/ macro environment analysis Pestle analysis is one of the effective tools or model that helps in analysing and identifying key external business factors such as policies of government, economic condition, taste and preferences of individuals and technology development influence business strategy (Hilton Food Group Plc PESTEL & Environment Analysis,2020). So, Pestle analysis of Hilton Food Group PLC so understand numerous factors that impact business operation such as: Political factor:Government is responsible for formulating rules and regulation so that number of business can be effectively monitored and controlled. 1.Brexit:United Kingdom is facing political instability due to implementation of Brexit that have resulted in decreased in overall sales volume and profitability of several businesses.Thus, management of Hilton Food Group PLC is finding difficult in setting effective strategies that can be useful in taking advantages in such uncertain situation so that firm can grow and sustain. 2.Free trade policies:At the same time globalisation and free trade policies have provide opportunity for company to expand its business operation not only in UK but in different parts of world (Nyström and Mustonen, 2017).There are many more policies that have affect strategy and outcome of business so manager has effectively incorporate them while taking any decision for benefit of organisation. 3.High amount of taxes:Such as many other countries have imposed high amount of taxes, tariff on imports of products in order to create in barrier of entrance of foreign firm so that local enterprise can effectively operates and expand its business operation.So, Hilton Food Group PLC has to follow all laws to save itself from huge penalties and charges that are imposed by government. Economic condition: It is another wide factor that includes number of elements such as demographical structure, disposable income of people, unemployment rates, exchange and interest rate prevailing in the economy or country.
1.Brexithave resulted in temporary economic slowdown as most of the transaction in UK is with European member countries so it have lead to decrease in sales volume of Hilton Food Group PLC. 2.Covid- 19have also affected negatively on Hilton Food Group PLC as people of United Kingdom are less willing to have outside food for their health and safety. There are number of people that have get unemployed or their disposable income have reduce because of slow economic growth thus they are less interest to purchase products at higher rates. So company by offering products at reasonable rates is able to attract and influence maximum number of individuals to be part of firm. Social factors: Customers decision depends upon on numerous factors such as price, availability of substitute products, recent trends and value or quality offered to it. People taste and preferences keeps on changing so it responsibility of manager to adapt to their expectation level so that company can gain competitive advantages. 1.Due to covid-19 and increasing number of diseases across worldwide, people have become more concerned about their health and well being. They prefer to have organic, hygiene and qualitative food products so Hilton Food Group PLC by offering such products or services is able to enjoy higher profit margin. 2.Better services to customers: Company have strong supply chain, distribution channel and systematic procedure that have contributed in quick home delivery of products at door steps of customers (Shtaland et.al.,2018).Hilton Food Group PLC always emphasis on new product development and innovative method to deliver services to customers thus it have helped in providing experiences that is beyond their expectancy level. 3.Digital technology: Marketing manager by making use of digital media such as content and internet marketing is able to build strong relationship with customers. So, overall social factors have lead in growth and expansion of enterprise by adding new and new customers within organisation. Technology Factor:There are sudden changes and development in technology and most of the companies are adapting to all such new method to cater needs of individuals. So, Hilton Food
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Group PLC by making use of innovative technology is able to maintain sufficient inventory that can help in fulfilling customer’s requirements. 1.Use of social sites: It has also made use of digital media such as Facebook, instragram or create its official websites so that customers can easily order products or services while staying safe and healthy at their homes. Online payment, home delivery services and optimum utilisation of technology have increased overall profitability and market share of firm. 2.Expense: On other hand, adaptation to several new technologies has increased overall cost or expense of company thus making products more expensive for customers (Cherunilam, 2020). Therefore, technological factor have negative and positive impacted on function and operation of Hilton Food Group PLC. Environmentalfactor:Duetoincreasingpollution,wastageofresourcesorfoodand increasing knowledge among people to save resources, environment have forced companies to incorporate CSR, ethical practices to survive in market. 1.Sustainable management:Number of large organisation in food industry has already take steps or measure to preserve natural resources or food so that it can equally available to all individuals. Hilton Food Group PLC have also taken measure to preserve resources by maintain record of demand and supply so that needs of customers can be fulfilled in limited time frame and cost. 2.Minimise of wastage of resources:It has also tried to bring economic of scales or make best utilisation of resources so that maximum value can be delivered to customers at lower prices. So, in order to take several steps company have to incurred additional expenses or cost that have resulted in decreasing profit share of firm. Legal factor:It includes rules, regulation, policies that are made by government of particular country to retain harmony and peace within country. Legal laws that impact Hilton Food Group PLC are employment law, health and safety law, minimum hours, payment of wages and discriminative law. 1.Company have abided to all legal laws while operating its function or taking any crucial decision for growth and development of firm. It have ensure that all employees are
provided equal chance and opportunities to share their view, ideas thus it has helped in bringing new ideas and innovation within organisation. By following health and safety laws it is able to motivate customers and employees to be part of organisation for more years (Fogarassy, Horvath and Magda, 2017). 2.As they have trust and confidences that Hilton Food Group PLC offers qualitative, healthy foods that are safe for their health. It has make use of technology to protect data of customers so that no one less can it for unnecessary purpose thus it helped in enhancing brand image and reputation of firm. CONCLUSION From above analysis and discussion it can be concluded that strong system, procedure, organisational structure and effective governances have contributed in achievement of Hilton Food Group PLC goals. Company is able to perform several task and activities in best manner thus deliver services as per customer’s expectancy. It is also learnt from above analysis that Pestle analysis is important as it helps manager to identify external factors and their impact on firm strategy. At last it can be concluded that company by emphasis more on customers’ needs is able to enjoy higher profit margin and market share in food industry.
REFERENCES Books and Journals Ahmady, G. A., Mehrpour, M. and Nikooravesh, A., 2016. Organizational structure.Procedia- Social and Behavioral Sciences.230. pp.455-462. Cherunilam, F., 2020.International business. PHI Learning Pvt. Ltd. Fogarassy, C., Horvath, B. and Magda, R., 2017. Business model innovation as a tool to establish corporatesustainability.VisegradJournalonBioeconomyandSustainable Development,6(2). pp.50-58. Helmold, M., 2019. Tools in PM. InProgress in Performance Management(pp. 111-122). Springer, Cham. Nyström, A. G. and Mustonen, M., 2017. The dynamic approach to business models.AMS Review,7(3-4), pp.123-137. Shtal, T adn et.al., 2018. Methods of analysis of the external environment of business activities. Shtal, T., and et.al., 2018. Methods of analysis of the external environment of business activities. Online Boardofdirectors.2020.[Online].Availablethrough:< https://www.hiltonfoodgroupplc.com/about-us/board-directors >. Hilton Food Group Plc PESTEL & Environment Analysis, 2020. [Online]. Available through: <http://fernfortuniversity.com/term-papers/pestel/nyse4/6645-hilton-food-group- plc.php>. Hilton, 2020,[Online]. Available through: < http://www.hiltonfoodgroupplc.com/>. HistoryofHiltonFoodGroup,2020.[Online].Availablethrough: <https://www.hiltonfoodgroupplc.com/about-us/history>.