Business Environment

This document discusses the concept of business environment and its impact on the functions of a company. It focuses on the case of Hilton Food Group PLC and examines its governance and structure. It also evaluates the importance of conducting PESTLE analysis for an organisation and provides a PESTLE framework to analyze the external environment in the context of the selected firm.

Business Environment

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
1 Examine how your chosen company is governed and structured?..........................................3
2 Evaluate the importance of carrying out PESTLE analysis for an organisation......................5
3 PESTLE framework in order to analyse external environment in context of selected firm....7
CONCLUSION................................................................................................................................9
.........................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business environment means all the internal and external that make impact on functions
of the company. It includes management, customers, workforce, government activities,
technological innovation, market, social and economic trend, demand, supply and regulations of
business. It offers threats as well as opportunities for any business(Aronoff, 2016). Business
environment are of two types such as micro environment and macro environment. Micro
environment relates to operating environment that influence organisation on continuous basis.
Whereas macro environment is the situation that prevails in the economy as a whole rather than
in particular segment. The organisation that is choose in this report are Hilton Food Group PLC.
The company was set to operate a beef and lamb central m,eat packaging facility in Huntingdon
as it is founded in 1994. It has listed on London stock exchange. The brand has 6 factories and
they supply that product in fourteen countries supermarket. The topic that was selected in this
report are examination of governed and structure of Hilton Food Group Plc. Evaluation of
importance of carrying out PESTLE analysis for an organisation are also explain in detail in this
project, with the help of PESTLE framework external environment of selected company are
analyse in this assignment.
TASK
1 Examine how your chosen company is governed and structured?
The company that chosen in this report is Hilton Food Group Plc. It is a leading famous
international food packaging business and supplying major international retailers from state of
art facilities. The type of the business is public. Hotel Food Group plc has its headquarters in
Huntingdon, United Kingdom. The company has incorporate in 2007. They employ around 5.12
k employees The revenue that was generated is around 1814.7 million pounds and their operating
income is 55.8 million(Begg, 2018). The company has joint venture in Portugal with Sonae
Modelo Continente are another business in retail industry as it provide packed meats product for
its stores.The brand growth with rapid increasing rate and now it has six factories across Europe
along with two joint ventures and they sold their product in super markets across 14 European
countries and Australia. The company also work through three segments like western Europe,
Central Europe, Australia. Food packing group said its outlook remain positive as annual
performance was in line with its expectations to strong sales and volume growth driven by the

expansion in Central Europe, Newzeeland and Australia. The main strategic approach of Hilton
is innovation in terms of development of new item and introduction of variety of services offer to
their audience.
The structure that is follow by the organisation is Divisional structure. The aim is to take
out noise in the process and to ensure that work that is to be done should add some value The
structure involves Hilton food group plc, Hilton foods Ltd, Hilton food UK Ltd as it is divide on
the basis of global location. It is governed on hierarchical basis that include different department,
under directions of designated leaders. In this the organisation divided in small groups as per
their speciality like Marketing, operation, finance and IT in different geographical location.
Illustration 1: History of Hilton Food Group, 2020
§
Hilton is always interested to select high calibre persons in different areas of business.
Demonstration is to be done to conduct research on history of Hilton Food group plc. The top
management of company's team consist various functions like chief financial officer and chief
operating officer (Elkington, 2017).
The Board is engaged to high level of standards of coperate governance. Their corporate
governance review regularly. The board comprises executive, non executive, chairman in the
governance. The responsibilities are divide clearly between chief executive and chairman . The

chairman is responsible to lead the Board, set their agenda and regular interaction with Cheif
executive and chairman are involve. The boards are eligible to delegate responsibility to different
committees of audit, nomination and remuneration. There are around three Board of directors in
the company. Philip is executive director He is responsible for all Hilton's business with its
major customers. Philip attend Smithfield college and become an associate member of meat
institute in 1984. and Rebecca, John Worby, Christine cross, Angus Porter, Rebecca shelley are
non executive directors. The chairman of Hilton Food Group Plc is Robert Watson. Negel
Majewski is chief financial officer and executive director of the company and Philip Heffer is
chief executive officer director of the company. The subsidiaries of the company are Hilton food
UK limited, Hilton food Danmark A/S, Hilton food group limited and Hilton food Asia Pacific
Limited. Every year Hilton Food Plc had variation in their net income for example from 32.53 m
to 33.07m Despite revenue grow 1.65bn to 1.81bn . A contributing factor has been an increase in
the selling, administrative and general cost and as sales percentage from 8.84% to 9.49% . In
2019 Hilton regularly generate strong operating cash flows. The group dividend policy is
maintained by the board. With the help of proposed dividend of 15.4p .
2 Evaluate the importance of carrying out PESTLE analysis for an organisation.
A PESTLE is a tool use by marketing team to analyse and monitor the macro
environment. It is necessary to conduct PESTLE analysis before starting up any business. There
is existing business than it will give strong indication of dependence on the industry in the
business. PESTLE analysis plays a crucial role in the expansion of business. It use in every
condition whether it is growth of product line or opening new organisation in different new
location.
Importance of PESTLE analysis are describe in detail in below mention paragraphs:
 Cost effectiveness: Time is the only cost of PESTLE analysis. It is a forward looking
activity as in this research is necessary. Anyone can perform PESTLE analysis. On the
basis of this individual can do analysis for better results. PESTLE analysis help Hilton
food group to consider all factors that make positive as well as negative impact on their
business as it help to reduce wastage. It also reduce unnecessary expenses that effect the
cost positively.
 Deeper understanding: PESTLE analysis help to understand the business environment
in direct and indirect manner. PESTLE analysis help to overview many different and

influential factor that make affect on the success of product launches. It motivate the
development of strategic thinking for deep understanding of planning. Hilton Food group
do deep understanding with deep evaluation of various factors like political, technological,
economical, social, legal, environmental as it help to tackle the situation easily.
 Alertness development: PESTLE analysis help to create and raise awareness of potential
threat. Whether it is old competitor,upcoming competitor or with in own product. With
the help of this thorogh examination is to be done to change and create a plan to raise
profit or minimise damage. PESTLE analysis help marketers of Hilton food group plc to
become alert about the situation that can prevail any time in the organisation. Due to
awareness of marketers it become easy to tackle the situation that were prevailing in the
environment (Boone, 2019).
 Exploit opportunities: With the help of PESTLE analysis external environment can also
be studied and grasping the opportunities to strenthen and grow firms business. With the
help of this social and technological trend can also be analyse like in today's environment
that target marketing is going towards social media channel. With the help of this
marketing campaign can also be build in front of competitor. Target audience can also
understand deeply by using PESTLE analysis. As it help marketers of Hilton food group
plc to grasp the opportunities for business expansion and growth. It has great opportunity
to expand business in new countries where there is less competition so that there is great
chance to become successful is exist.
 Help to do business planning: Business plan can be done after considering these
political factors. It help to handle the different circumstances that are prevail in the
environment. Hilton Food Group plc prepare their plan for business after analysis all the
factors that may make impact on business. Proper study of different factors is done by
expert marketers as it become helpful in making plan to achieve set objectives in efficient
and effective manner (Dwyer, 2019).
 Working of different departments can easily be control: There are many department
unit are involve in Hilton food Group plc like accounts, sales, marketing, by making
control on these areas Hilton can easily attract more people and increase sales to generate
income and profit. As external factors such as political economical, social, technological,

environmental, legal are exist and the work of each department are interlinked with each
other so all the factors should be analyse by marketers deeply for effective results.
It is important for Hilton Food Group Plc to perform PESTLE analysis as it is done for
country where we give service of our business or where we want to expand our business so with
the help of this actual political, economical, social,technological,legal, environmental situation
can easily be judge by company that affect the business. After making strategies smart markers
to overcome with problems and easily expand business. So it is to be done to anayle situation
that prevails in the market and create problem to ,markers in near future.
3 PESTLE framework in order to analyse external environment in context of selected firm.
PESTLE analysis is a strategic tool that is used by an organisation in order to identity the
macro factors that can affects the function and operation of business. The word PESTLE stand
for political, economical, social, technological, legal and environmental. It analysis all
opportunities and potential factors that are benefits for the firm along with this it also analyse the
threats and weakness that can affects the performance of business. The following PESTLE
analysis is carry out in context of hotel Hilton Food corporation :
Political Factor- This factor plays a significant role in business in order to carry out the
function in effective way. As this factor can impact long term profitability &productive of
company. So political stability is the key towards success. The factors that can effects the
performance in political can be trade regulation, taxation, favoured trading partners, legal
framework for contract enforcement, level of corruption. It can influence number of Visitors,
tourist and business travellers (Brennan, 2020). The possibility of UK to exit EU, puts a huge
impact on revenue of hotel Hilton due to declination of total number of visitors to country.
Moreover the act of terrorism in London was temporary banned the accommodation at hotel as it
bring bears to consumer towards safety and security. Because of this the number of tourist is
reduces which leave a negative impact on performance of Hilton in a specific market (Dana,
2018). In context of Hilton food corporation, there is need of managing the rules and regulations
provided by different countries. This helps the organisation to manage brand awareness among
customers by providing food as per the regulations of food corporation.
Economical factor- It includes those factors which are related with the economy such as
inflation rate, saving rate, interest rate etc. In context of selected firm, the GBP exchange rate
against other major currencies and inflation rate of UK shows significant factors along with

extent of expected and real economic growth of UK can affects the performance of Hilton. As
the national economy of UK faces so many challenges and risk due to economic crises. Apart
from this the situation of Hotel Hilton during Olympic was different once the Olympic games
were over. During Olympic the hotel is fully booked which provides several benefits to Hilton in
term of earning profit that will ultimately enhances the economy of nation. Food corporation of
Hilton has to manage the quality of food. Proper budgets are developed by this corporation on
monitoring and controlling quality of food and dishes.
Social factor- The culture , believes, lifestyle, income etc. are the factors that affects the
function of organisation. In which the attitude and shared beliefs of people plays a great role in
maintaining the effectiveness of functions within company. In context of Hotel Hilton, it is a
well known hospitality firm among international visitors as well as the popular destination place
for tourist. Even though there are several factors which influence the function and performance
of firm which involves the preference, trends, demographics variables as well as models of
decision making process of consumers with growth rate of population. There are different factors
leaves a huge impact on function of Hotel Hilton. The changing pattern of family and the family
without children effects the business performance of Hotel Hilton company at market place of
UK. There is necessity of food corporation to handle quality of food and manage the
organisational goals.
Technological:Technology: It include innovation as well as creativity that make work
easy & simple. It is beneficial to save time as it is a precious element in life. Due to rapid
change in the technology in short duration it make impact on business of Hilton Food Group plc
as if organisation adopt advance and fast technology it raise quality of products that attract large
customers that raise sales and if the company slowly adopt the technology it will reduce sales. In
this way it affects in both positive as well as negative manner. To survive in the competitive
market Hilton Food Group plc makes changes in their technology on short time duration and also
adopts new technology if required that helps to work more that tends to increase profitability
also. For billing purpose the organisation adopt software technology so that it can reduce the
chances of mistakes and make the work easy to perform.
Legal: It involves various factors that are based on provisions that was set by
government. It includes consumer law, discrimination law, employment law, health and safety
law, etc. employer of Hilton Food Group Plc works as per law applicable in UK. To neglect

discrimination all the activity is performed according to law in Hilton Food Group plc that helps
to protect the interest of work force. It impacts negatively If Hilton Food Group plc fails to work
as per law and applicable provisions it attract high penalties, punishment and fine that reduces
their profitability because large part of income is given as penalty (Chang, 2016).
Environmental: climate change, natural disaster, weather, size of population effects the
sales and revenue of Hilton Food Group plc so to overcome with the challenges or problem.
strategies should be make to handle unpredictable situation. With increase in population size,
sales also increase because huge number of people purchase items that increase their profit
margin in this way it affects positively.
CONCLUSION
After doing deep analysation it is to be conclude that it is necessary for every
organisation to observe the various business factors so that right decision can be taken by
marketers or owners so that their business can easily survive in the competitive World. In this
assignment it is to be conclude that Hilton Food Group Plc by adopting divisional structure
perform their task easily. The structure include Hilton food Ltd, Hilton food group plc, Hilton
food UK Ltd as it is bifurcate on the basis of global location. Organisation can work effective
manner by adopting hierarchical governance basis that involves different department, that is
handle by designated leaders so that work is done effective with the help of coordination and
cooperation. It is necessary for every organisation to consider PESTLE before entering into the
competitive market as it give support to the company to survive in the market.

REFERENCES
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1. http://www.hiltonfoodgroupplc.com/about-us/history