Business Environment: Hilton Food Group PLC

This document provides an overview of the business environment of Hilton Food Group PLC, a leading food packaging company in the UK. It discusses the company's structure, governance, and the significance of conducting a PESTEL analysis. The PESTEL model is applied to analyze the political, economic, social, technological, environmental, and legal factors that impact the company's operations. The document highlights the importance of understanding these external factors for strategic planning and decision-making.

BUSINESS ENVIRONMENT
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EXECUTIVE SUMMARY-
Hilton Food Group Plc, effectively overcomes all the situations by considering right
approaches and methods. It has been identified that chosen firm use PESTLE analysis to get all
competitive benefits which is really important to obtain.
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Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
How chosen firm is structured and governed.........................................................................3
TASK 2............................................................................................................................................5
Significance of carrying out PESTEL analysis for a company..............................................5
TASK 3............................................................................................................................................6
PESTEL model application in context of Hilton Food Group PLC.......................................6
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10
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INTRODUCTION
The environment of every venture comprises internal and external factors that impact its
productivity and operational efficiency. It can be considered as total of all workers, stakeholders
and other forces that are inside and outside of a venture. Business environment is one of the most
essential aspects of any organization. The current assignment will be based Hilton Food Group
Plc, which falls under category of leading food packaging companies in the United Kingdom.
This study will explain how chosen company is structured and governed within retail industry. It
will define importance of using out PESTEL concept as strategic framework for a firm.
Furthermore, this report will justify utilization of selected model in regard to external
environment of chosen firm.
TASK 1
How chosen firm is structured and governed
Hilton Food Group Plc is known as leading specialist global food packaging venture
supplying mostly international retailers from state of the art facilities (Bruner and Vakharia,
2017). It was founded in 1994 and developed to operate lamb & beef central meat packing
service. Company has 6 factories that they managed effectively and sells their goods in
supermarkets across Europe in 14 nations successfully. Hilton Food Group Plc has work in joint
venture as legal form within Australian organization named Woolworths Group. The main
reason behind this partnership is to successfully operate business functions and operations in
Western Australia and to construct a new meat processing factory in Victoria that is quite
beneficial for growth of selected brand. Firm provide their food packaging facilities to well
known brand in retail sector such as ICA, TESCO, Albert Heijn, Coop Danmark, Rimi and
Ahold. Western Europe market segment covers firm ventures in UK, Denmark, Ireland, Sweden
and Holland (Thomas, 2018). It announced joint venture agreement, in 2013 which make them
able to grow even better. Enterprise was subject of initial public offering in 2007 which valued
venture at Circa 105 million pounds. It goes to obtain Seachill, supplier of Frozen and chilled
salmon in 2017.
Organization has progress rapidly and now has 6 branched across UK plus has two joint
ventures such that their items are sold in supermarkets. In main area, meat packing business of
company is based on Tychy in Poland effectively supplies buyers across central Europe from
Hungary to Baltics. The business model of selected company is to source their original meat
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from local and international base of quality deliveries, which it then procedure and packs in wide
scale, central and latest meat packing plants for onward supply by third person hauliers. The
product packing plants operate at high degrees that are essential to produce competitive unit
packing prices, whilst reaching level of food safety assurance, hygiene, items quality and shelf
life needed by management discerning consumer’s base. It has been identified that firm achieved
their rapid progress by planning for geographical expansion and goods range extensions and
underlying great growth in market gained by company’s retail buyers. After gaining all benefits,
firm now become the biggest dedicated packer of red meat in nation consider on basis of
revenue.
Organizational structure is system that clearly outlines how some practices are directed to
achieve aims and objectives of organizations. These activities can include roles, accountabilities
and roles. It also identified how information and data flows between stages within a firm. There
are different forms of organizational structures accessible in the world of business that several
companies have been used according to their size and scope. Hilton Food Group PLC has flat
organizational structure, in which 9 directors are managing their work as well as responsibilities
in systematic manner. With this structure company has successfully control and manage their
activities within market place, as it allow them to keep competitive and gain a lot of benefits in
term of increasing profits margin and sales (Vasista, 2020). Philip John Heffer as chief executive
officer and director in company played vital role; along with him more peoples are also
accountable for managing organizational functions and operations. Hilton Food Group Plc has 4
non executive directors and only 2 executives and rest of two are at position of manager and
secretary.
Robert Watson OBE is the chairperson of chosen brand; he joined organization as Chief
executive and then become chair man in 2018. As discussed above Philip Heffer is the CEO of
company, he joined at his start in 1994 as managing director then move to chief operating officer
and now appointed as chief executive officer in 2018 (Amos and Sullivan, 2018). He is
accountable for all organization’s ventures with his major consumers. CEO appointed at his
position on 1 July and take charge of overall management as well as business activities which is
really important to do in term of managing, controlling and supervising inbound & outbound
logistics. He has excellent experience in operating businesses functions and practices in
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systematic manner. Hilton Food group Plc has 4,944 workers, who are able to work and perform
daily activities in effective manner and contribute gain desire outcomes (Ramlogan, 2016).
TASK 2
Significance of carrying out PESTEL analysis for a company
In recent time, there are varied companies who are using ranges of strategic management
tools in order to identify internal and external factors that affect current practices and activities of
businesses in negative and positive manner. PESTLE analysis is one of tools that have been
utilized to determine macro influences that may influence on a company as part of strategic
marketing (Shtal and et.al., 2018). This approach is important to carry out because it helps
organizations to identify those elements that can put impact on existing products, services,
operational activities and other things, while operated ventures in specific market.
Whether it is established or start up companies, this tool can help every entrepreneur in
determining significant modifications in political, economic, technological, social, legal and
environment factors. It can support companies developing strategic planning and tactics to
expand their businesses in profitable market where they can earn even better and generate
revenue more than other players in similar sector (Simões, 2020). Each firm should carry out
PESTEL analysis, because it play vital role in progress and success of firms. Whether it is
business expansion of goods line or beginning a new firm in new location, this analysis is a
important in making tactics and planning. Any department in ventures like Sales, Human
resource management, accounts and marketing can be managed from inside, as organizations can
hire more applicants in sales to increase profitability and generate revenue. At last, these
outcomes depend on workers working inside at workplace. However, external elements like
above one are exited and can continue to exist without input. This is where chosen method plays
an excellent role.
PESTLE analysis is time and cost effective approach that every firm can carry out
effectively and used to gain a lot of benefits (Christodoulou and Cullinane, 2019). The main
benefit of carrying out this tool is that it can make external situation easy to comprehend that can
impact overall business environment. When it comes to development of new item, it enhance
deeper comprehending and strategic thinking of several components like advanced technologies,
new technological trends and other things which can impact product and new brand launch in
market. Another thing that defines significant of carrying out above thing is that it helps firms to
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get ready for potential threats and possible challenges which arise daily because of external
components. Furthermore, conducting PESTLE analysis it important because it aid to exploit
chances that may arise from similar elements. For instance, high interest rate in real estate sector
is an economic element that develop a threat to decrease demand for housing. With this
technique companies could be able to take right decision and develop tactic to overcome
negative aspects.
PESTLE analysis is one of the most effective and simple techniques utilized in situation
analysis to determine macro environment degree or forces that affect a company, planning,
resources and strategic approaches as well (Aithal, 2017). These factors can create threats and
great opportunities for organizations. It can be analysed, that only cost of overall concept is time
and provide desire outcomes after taken. Additional systems can aid manage feedback and input,
Pestle analysis can be accomplish through an easy document. All above things have clearly
defined that why carry out this analysis for companies is essential.
TASK 3
PESTEL model application in context of Hilton Food Group PLC
Political factor-
Political stability & instability, trade regulations, tax rate, industrial safety rules, and
antitrust laws are the examples political factors that can impact business functions and
organizational practices. Hilton Food Group Plc, operated their venture in varied nations, each
can have political stress that increase tension. Instability in political environment put negative
impact on current strategies and further plans of organization. This factor influence negatively in
term of decreasing chance for global expansion, selling products or services and profitability,
which is not suitable and relevant for firm. It can affect food and beverage industry and their
supply chain activities in negative manner (Ameta and et.al., 2020). This element can negatively
impact success of brand because political instability limit progress chances accessible for Hilton
Food Group Plc. This component can be defined as potential for significant and sudden
modification in situation of nations where firm operated such as UK, Ireland, Australia and many
more that has been discussed above.
Economic factor-
Money exchange rate, government intervention, interest rate, inflation ratio and
educational level in economy are the appropriate examples of economic factors, which also
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influence in similar manner. The biggest factor that impact current employment policies and
operational efficiency of Hilton Food Group Plc, is unemployment rate. It is one of the factors
that impact in positive manner in term of giving superb and excellent chance to organization in
context of hiring and recruiting skilled as well as talented applicants who can perform even
better. Furthermore, due to Brexit many people has loos their jobs and are now unable to live
lives happily. Organization can overcome them out of difficult situation and make changes
within their existing recruitment and selection procedure that help people to improve living
standard and also benefit firm in term of increasing their operational efficiency and effectiveness.
With this opportunity, management can build a strong workforce at workplace who is capable to
work hard and allow firm to gain competitive advantages, which is quite beneficial for business
success and progress.
Social factor-
Demographics, leisure interests, culture and attitudes are social factors that put influence
on production and supply chain practices of firms. According to trend, people change the way
they purchase food products and services, which directly affect entire practices and functions of
organizations like Hilton Food Groups Plc. Due to online shopping trends, consumers demand
for online delivery services, which is time effective and save money (Sumption and Fernandez
Reino, 2018). But this factor, influence negatively on chosen brand operations as they experience
high pressure from market side to provide services according to trend that can increase sales,
revenue and profits margin rather than last few months or years. Moreover, arise of e-commerce
and social media has encouraged online purchasing behaviour among target consumers. It drives
management to comprehend above trend by recognizing generational differences as youthful
people are more incline to purchase online more than older one. Due to this element, manager
can take major steps towards making changes within their exiting practices and developing
website where they can take or delivery orders online.
Technology factor-
Development of digital marketing platforms and channels are one of the best technology
factors that can put positive impact on marketing and advertising strategies of Hilton Food Group
Plc. It gives excellent opportunity to organization in term of reaching at global level and
generating brand awareness, which is quite beneficial for company for example, it increase sales
and profitability of business even better (Li, Mirosa and Bremer, 2020). With advanced digital
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marketing technologies firm can gain attention of new consumers and drive their profits margin.
Social media marketing is now in trend, most of people are on social media sites where company
can easily promote their venture and products successfully. It can help business in term of
improving performance of business more than its competitors. Organization can use this tool and
create a unique social media page with effective content that help in brand expansion and further
benefits. This factor improves existing marketing efforts in positive manner and allows
management to obtain desire outcomes which can be anything.
Environmental factor-
Climate change, consumers attitudes towards renewable energy, people concern for
environmental safety and laws regulating nature pollution are all environment factors. In regard
to Hilton Food Groups Plc, climate change is one of factor that put negative impact on supply
chain and inventory management activities of company (Schenker and et.al., 2020). It is quite
simple that when climate get change, organization could not be able to deliver their meat
products to consumers on time and in systematic manner, they need to do a lot of attempts to
make everything easy. Heavy rain, chance for flood and snowy falls in those areas where Hilton
food groups plc operated could definitely impact negatively on supply chain procedure of
company. It gives negative experience to business and drives their planning and other
management functions towards. It requires manager to take better care for affected operation and
consider ways to overcome situation which is really essential to do. This factor can cause
shortage of raw materials used for packaging of products.
Legal factor-
Change in any kind of law directly affected management actions, decision making and
business practices in negative manner. In context of Hilton food group plc, changes in
employment laws influence negatively on policies and regulations of organization as it affects
business management planning. It drive firm towards making current and further changes within
their employment rules that consumes a lot of time and efforts as well. This factor influence
negatively and require a lot of hard work from manager side that is quite tough to do in short
term period.
CONCLUSION
From above analysis, it has been concluded that Hilton Food group Plc and its
management by taking right decision and developing strategies overcome negative impacts of
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external factors in positive manner. It has been determined that, by carrying out PESTLE
analysis chosen brand obtained several benefits in term of increased sales and profitability.
Company gained advantages by using social media and other digital marketing platforms they
effectively reached at international level where potential buyers help increasing firm profitability
in exchange of products and money. Furthermore, it has been summarized that political, social,
economic, environmental and other factors impact on business activities in positive and negative
manner, all these things has been handled by management in systematic manner.
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REFERENCES
Book and Journals
Aithal, P.S., 2017. Company Analysis–The Beginning Step for Scholarly Research. International
Journal of Case Studies in Business, IT and Education (IJCSBE). 1(1). pp.1-18.
Ameta, S.K and et.al., 2020. Use of Nanomaterials in Food Science. In Biogenic Nano-Particles
and their Use in Agro-ecosystems (pp. 457-488). Springer, Singapore.
Amos, N. and Sullivan, R., 2018. The business benchmark on farm animal welfare report 2018.
Bruner, R.F. and Vakharia, S., 2017. The Hilton-ITT Wars. Darden Business Publishing Cases.
Christodoulou, A. and Cullinane, K., 2019. Identifying the Main Opportunities and Challenges
from the Implementation of a Port Energy Management System: A SWOT/PESTLE
Analysis. Sustainability. 11(21). p.6046.
Li, C., Mirosa, M. and Bremer, P., 2020. Review of Online Food Delivery Platforms and their
Impacts on Sustainability. Sustainability. 12(14). p.5528.
Ramlogan, R., 2016. Judicial review in the Commonwealth Caribbean. Routledge.
Schenker, U and et.al., 2020. Short Communication on the role of cellulosic fiber-based
packaging in reduction of climate change impacts. Carbohydrate Polymers. p.117248.
Shtal, T and et.al., 2018. Methods of analysis of the external environment of business activities.
Simões, E.N., 2020. A decision support system application module-for PESTLE analysis-
competitive intelligence algorithm (Doctoral dissertation).
Sumption, M. and Fernandez Reino, M., 2018. Exploiting the opportunity? Low-skilled work
migration after Brexit. Migration Observatory, University of Oxford.
Thomas, R., 2018. Questioning the assessment of research impact: Illusions, myths and marginal
sectors. Springer.
Vasista, B., 2020. A study of sharing economy: impact of sharing economy in mobility, food
delivery, co-working and short-term rental, on built environment.
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