Formation and Organization Structure of Hilton Food Group Plc

This document provides a brief description of the formation and organization structure of Hilton Food Group Plc. It also discusses the importance of PESTLE analysis in analyzing the external environment of the company. The document covers the political, economic, social, technological, legal, and environmental factors affecting Hilton Food Group Plc.

BUSINESS ENVIRONMENT

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Brief description regarding formation and organization structure of Hilton Food Group Plc....1
TASK 2............................................................................................................................................3
Importance of PESTLE................................................................................................................3
TASK 3............................................................................................................................................4
Analysis external environment of Hilton Food Group Plc by using PESTLE technique............4
CONCLUSION................................................................................................................................7

REFRENCES...................................................................................................................................8

INTRODUCTION
Business environment is play essential role in formulating business. Without it entity is
not survive, infect it is made up of environment internal & externals sources. To understand this
concept, Hilton Food Plc has been taken. This report contain a brief description of Hilton Food
Group Plc, its organization structure and governance policy used by management department.
This report also define relevancy of PESTLE environment scanning technique, impact of each
external aspect and use of this strategy for successfully run business activities in competitive
market all these information has been defined in systemic manner.
TASK 1
Brief description regarding formation and organization structure of Hilton Food Group Plc
About Hilton Food Group PLC: This organization was established in 1994, headquarter
of this organization was situated at Huntingdon. This organization run business in packaging
food business. This business entity successfully run business in UK, it provide service more than
25 countries of Europe. To spread its market, Hilton, acquired Netherlands’s organization who
help in acquiring food packaging business.
They also start business with Australia. Hilton started agreement with Portugal for
providing fish processing services. This business corporation start it business with Tesco, they
firstly offer food packaging facility to Tesco, then till 2000, organization start their business in
Zaandam, and they also supply their services to a hold group. Till 2004, they spread market, in
other European countries, Drogheda, Vastras, Sweden. This organization listed in London Stock
Exchange in 2007. They open new factories for enhancing capabilities and capacity for
supplying food packaging serves in Poland, Slovakia, & Hungary, In 20008 they start to deal
with supplying breakfast packaging facility (Escaleras and Chiang, 2017).
Till 2012 it deal with, Dutch companies as well, as spread market in Denmark, Belgium.
They collaborate with Australis in 2013. For providing better service organization start dealing
Swedish service. By dealing and started business with various European countries, they are able
to expand their market. The company follow theories and models of management, which help in
running business in effective way. They use effective management policies and strategies which
directly influence organization to work towards achievement of goal.
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Hilton Food Plc is public based organization. Management department of this organization
follow corporate governance rules in ethical way. Their main aim is to provides stratification to
customer by maintain quality of their products. This useful in providing path to managers.
Organization structure: Success of an entity totally depend on how effective
organization structure has been built. It define role and responsibilities which useful in providing
direction and start business activities in effective way. There are various type of organization
structure is made, management department on the basis of their need decide to build particular
hierarchy of structure through which they can easily reneged with business activities. It is a
system which clear define how well activities and resource allocate to each department and
structure of running business activities to attain goal of the business corporation. There will be
many types of organization structure which manger able to consider for their organization. Line
organization structure define a systemic structure of command and responsibilities on the basis
of which, manager circulate their essentials communicating order. Project, department,
functional are essential part of organizational structure.
It is a diagram which define work, responsibility, by whom the work is completed and
how director take decision, effect pf these decision in effective manner (Gürkan and Tükeltürk,
2017).
Matrix, division, functional, line, horizontal, all are the type of structure in which organization
dived their responsibilities.
Hilton Food Plc is one of the most popular organization of UK, they apply division
structure through which they can easily run their business activities. Hilton Food plc has many
subsidiaries thus they use division structure for successfully maintain organizational activities of
each department.
Divisional organizational structure: It is considers as part of organization structure, in
which each functions which is related with corporation is function. It may be divide into products
or geographic area. Every division work according to the responsibility which distributed to
them. In this type of structure, organization; s work is divided into semi-autonomous units. All
the division are work according to their own way but they are responsible for the higher
authority. This structure useful for multinational organization and they are deal with many
markets thus they need to focus on diversity their organization structure.
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Hilton Food Groups is apply division organizational structure, as they have Hilton meat
Holland, Food group, Asia pacific, Dalco food, and their branches. Following are the advantage
which this organization gain by adopting this structure
By applying division structure, they are able to control effective separate competitive
advantage. Organization build effective strategies which useful in attain roles and responsibilities
are clearly which reduce burden of higher authorities.
Chance of internal coherence is decrease was due separation of effective policies and
responsibilities. Management department of this plc have one executive director, chef executive
director, and financial chief finance officer. In their hierarchy structure, they hire two women
executive director. Every department is responsible for their work thus they can easily change
their business policies according to changes of environment conditions. They also focus on
reduce sharing problems which help in reducing work load. Hilton apply division's structure as
this will useful in better management of organization (Clement, and Puranam, 2018).
TASK 2
Importance of PESTLE
PESTLE technique is used for understand effect of every element which belong from
external environment in effective way. Following are the relevance of applying this situation
scanning tool in context with Hilton Food Plc
Help in decision making: By implementing this tool in managerial process, organization able to
take decision on the basis of recognizing impact of external factors. Management department of
Hilton Food Plc use this strategy as it will help in providing basis guideline regarding recent
trend in marking sector. Which help in moulding business strategies.
Reduce risk probability: In PESTLE framework, manager collect information regarding
political, economic, social, technological and legal environment . Manager could find out
probability of happing of uncertain event. They identify main factors and issue which may
become reason of future uncertainties (Wendelboe and et.al.2017).
Find out rival industries strategies: With the use of PESTLE management department
of Hilton, found various opportunities, they recognize field and market for their future business
growth. Success of their organization is totally depend on the effect of external market factors.
Hilton is able to maintain their position and spread its market in various countries of Europe by
applying this strategy in effective manner.
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Analysing of future opportunities
Cost benefit: Only time is required for this mechanism. Once organization done with
PESTLE procedure, they have sufficient record regarding every essential information amount
market factor. Without these information organization not able to run business. Hilton, by
finding out opportunities they formulate policies-and apply those alternative which help in
reducing cost of running business activities.
Help in development: This strategy useful in development of organization, as on the
basis of information collected from PESTLE, analysis manager formulate polices which reliable
for political environment and not break any rules of ethical as well as attract social groups also.
All these element help in successfully build strong position of Hilton within market environment.
Useful for new venture: This type of technique mostly beneficial when new venture is
start up or when organization spread its target market. Hilton Food plc since its evolution, every
year invest with other organization or launch new subsidiary to enhance tits market area.
Management department of this organization use PESTLE framework for finding out
opportunity and preference of their customer, trends in social market, perception of political
authority and legal laws regarding launching venture in new market. All these information help
Hilton for introduce their new venture (Ghaffaripour, Van den Bilcke and Samson, 2017).
Identify competitor’s policies: In PESTLE technique, managers focus on recognize
situation of market, they focus on strategies use by rival industry, regarding price, promotion and
manufacturing of products. On the basis of that management department of Hilton formulate
police and strategies which help in attaining strategic competitive business advantage.
TASK 3
Analysis external environment of Hilton Food Group Plc by using PESTLE technique
Business organization is not independent, it is depend on various factors of internal as well as
external elements of environment. Both are directly or indirectly affect running process. PESTLE
is one of the most popular technique used by managers for environment scanning procedure.
Following are the effect of external factors on Hilton Food Group Plc
Political factor: Theses considered those policies which influence by order of political
authorities. It consider, political stability, regulation, fiscal policies, war trade policy all these
included in political factors. Success of organization depend on how effectively political factors
impact on sustainability of organization.
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Positive impact: British government after Brexit agreement provides various benefits to
organizations. Hilton help in accelerating its economic growth, Thus they get benefits of
subsidiaries from government.
Negative impact: Due to effect of Brexit agreement, cost of hiring personals is high as most of
their employee were belongs from Europe countries.
It became really hard to enter in competitive market f other countries as after Britain exist from
European Union all the countries make rigid rules and regulation regarding enter in their
market.
Economic impact: It consider factors that directly impact on demand as well as supply. It
consider, interest rate, economic growth, and cycle of economy and exchange rates.
Following are the positive & negative impact of economic factors on Hilton
Positive: Organization will be able to take loan at low interest rate.
To expand business of British companies, government has reduce taxation on foreign income it
will useful in gaining profit through foreign countries.
Negative impact: Brexit agreement directly impact on the economic cycle of the country. They
face recession period, even after Corona pandemic, the whole economy face high loss it
decrease economic growth rate. It is really hard for Hilton to maintain hire position and
invest in new business due to adverse economic condition.
Social factors: Theses include factors that directly influence from customers behaviour. Culture,
social groups, class, demographical factors are considered as social elements of environment
(Irawanto, 2017).
Positive impact: Management department of Hilton has contribute towards corporate social
responsibilities as well as them build positive image within market economy. Thus they
don’t need to build strategies for influence customer as they already had strong and positive
brand image of their organization. Social factor directly impact on the profitability rate of
organization .Thus manager’s department force on convincing their customer. And
maintained strong connection in every social group. This useful Hilton to maintain their
position.
Negative impact: Hilton is one of the most famous brand name in UK. Preference of family,
effect of changing scenario of social group adversely impact of this organization. It is really
hard to maintain positive value and maintain position with the social groups because
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customers change their preference according to their mood they are not loyal for particular
brand. And after this pandemic they become more conscious regarding their heath issue thus
hey prefer to control se o packaging food products.
Technological factors: It consider elements which help in attaining organization growth by
using software ad equipment’s of technology, internet, gadgets etc. After internet revolution,
use of technology was increased. For maintain position in market it is required that
organization need to upgrade with changes of time.
Positive impact: With the use of social media, Hilton will be able to spread its target market at
global level. They use digital marketing platform for increase sales rate of the organization.
Internet help in attaining business goals by build positive image of the corporation in
society.
Negative impact: Technologies has been change in advance, rival companies use advance
technologies for attract target market customer. It will negatively impact on sales rate of the
organization. Competitors use social media to spread fake information regarding Hilton this
will adversely impact on the goodwill of the organization.
Legal factor: It consider all the relevant legal aspect which directly or indirectly impact
on business policies. Legal elements, include, provision regarding materiality benefits,
compensation, security low, consumer protections, employee security, benefits, all are
considered as legal elements. Following are the impact of these aspect on Hilton
Positive impact: Hilton is multinational organization, thus they have large number of
employee. Management department follow all the relevant law and provide security measure. By
applying legal and fundamental rules, organza ton will be able to patent their product as well as
they can sue against companies which use its name and brand products.
Negative impact: Due to strict legal tax and corporate policies, this organization suffers
from high rate of paying tax and fulfil obligation of audit standard. Due to strict laws regarding
trade it is not possible for Hilton to spread their market in mid Asian countries.
Environment factors: Every business organization run their business activities within
environment. They connected with surrounding of natural factors. All the elements which is
related with nature are consider as environment factor. It includes, atmosphere, seasons, rain, raw
materials, mountains, natural disaster. All these are impact not only business but the whole cycle
of world economy (Ping, 2018). Theses consider as most essential element for the organization
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as it is really hard for business organization to survive in this atmosphere. Manager on the basis
of identifying essential business environment factor and recognize the effect of environment
could able to easily build policies in effected way. Through which they can generate profits.
Positive impact: Hilton Food Group Plc can easily get materiel require for them for
producing food preparing items. Its branches is establish in European and it is famous continent
for tourism. Thus due to of sell of packaging food, items selling rate of these product get high.
Negative impact: At present time, the whole world face, Corona virus pandemic, this
adversely impact on the overall business of Hilton, due to lock down period, organizations
foreign trade earning totally stop and most of their small branches get liquidate. Profitability rate
of Hilton decrease. It may be possibility that effect of this pandemic will be constant for long
time period, till organization not able to generate high rate of profits. As the whole life style,
livening standard of personals totally changed. It is really hard for manager to fulfil criteria of
customer on the basis of requirement of customers.
CONCLUSION
From the above analysis it has been concluded that every business corporation need to
build their strategies and business policies after considering every element of business
environment. Organization is made up with environment sources and running business cycle is
directly influence from external as well as internal sources. Success of business entities depend
on the structure of their management department used for allocating roles and responsibilities.
On the basis of that, business activities don in systemic manner. Managers to attain sustain
competitive advantage use PESTLE analysis technique through which they can understand
favourable as well as adverse impact of each relevant factor which consider as part of external
business environment.
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