Comprehensive Business Analysis and Health Report: Hilton Hotel

This report provides a comprehensive business analysis of Hilton Hotel, a global hospitality brand. It begins by outlining the company's objectives, emphasizing the use of SMART goals to enhance customer service. The report then delves into factors impacting the organization, including a SWOT analysis, PESTLE analysis, and Porter's Five Forces model, evaluating the competitive landscape. It explores potential improvements using Ansoff's growth matrix, focusing on market penetration, market development, product development, and diversification strategies. Finally, the report assesses the effectiveness of Hilton's business operations, examining its products, services, and marketing efforts. The analysis covers the current skills of staff and management, proposing plans for skill development to enhance overall business performance. The report concludes by summarizing key findings and recommendations for the hotel's continued success.

BUSINESS HEALTH

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK ..............................................................................................................................................1
LO 1.................................................................................................................................................1
1.1 Objectives of the business.....................................................................................................1
1.2 Factors that impact on organisation......................................................................................2
1.3 Potential improvements in the business unit.........................................................................5
LO 2.................................................................................................................................................6
2.1 Effectiveness of the business ...............................................................................................6
2.2 Plans to improve organisation and justifying their value......................................................8
LO 3.................................................................................................................................................9
3.1 Current skills of staff and management................................................................................9
3.2 Plans for development of skills for management and staff.................................................10
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................12

Illustration Index
Illustration 1: PESTLE analysis of Hilton hotel..............................................................................4
Illustration 2: Ansoff matrix............................................................................................................6
Illustration 3: Effectiveness of business in market..........................................................................8

INTRODUCTION
Business health consists of effective tools for promoting investment in the organisation to
enhance its performances. In this aspect, enterprise responsible to assess their performances
continuously to promote effective functioning at workplace. Due to this reason, manager of the
enterprises considers personal values, integrity and interests (Kreuter, Farrell and Brennan,
2013). Present report is based on Hilton hotel which is a global brand providing different kinds
of services in hospitality sector. In addition to this, the company is operating more than 570
branches all over the world. For gaining insight knowledge of the company, present report covers
objectives of the selected business to enhance profitability. Furthermore, it includes factors
which create impact on the organisation’s operations and functions. Moreover, it assists to
evaluate current skills of management and staff member to enhance effective results in business
unit.
TASK
LO 1
1.1 Objectives of the business
Hilton hotel is the one of the largest hospitality brand in UK. They are target different
kinds of people such as businesses man, family, etc. for travelling major locations in the UK
market. With the help of SMART objectives, the selected business carries on its functions and
operations in significant manner to determines MBO process, which are as follows:
 Specific: There are different kinds of factors which need to be present to accomplish
goals and objectives. These elements need to be set effectively to develop profitability in
Hilton hotel. Main objective of the chosen organisation is that to improve customer
services with considered score of 12 points through taking customer service survey
(Gostin, Wiley and Frieden, 2015).
 Measurable: Second element of SMART objectives is measurable which determines
more specific and address second factor in effective manner. In this way, objectives are
important part as the review process which are adopted to meet targets and outcomes
(Sherman and Lynch, 2014). Hilton hotel has responsibilities to ensure that objectives are
met or not which clearly define in previous element.
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 Achievable: The next important element is to set objectives which need to assess that
specific element accomplish or not. For example, objectives stated “100% customer
satisfaction”, which is not realistic and achievable. Therefore, it is possible to expect that
each person require 100% satisfaction with Hilton hotel services.
 Realistic: This element leads to recognise as the factor which cannot be controlled. It is
said that realistic goals are potential challenges but not chances to make successful
operations. It can be accomplished with tools which disposal for a particular a person in
Hilton hotel.
 Time based: It is the final factor or element which assists to accomplish goals and
objectives as per the time-based perspective. In other words, it is the important element
which require improvement in customer services according to time on each activity. It is
the final element which accountable and commitment to make goals and objectives
through implementing activities in it (Ayers and Shakespeare, 2015).
1.2 Factors that impact on organisation
There are several factors which create impact on the Hilton hotel that are as follows:
SWOT analysis
Strength Weaknesses
 Hilton hotel perceive high brand
recognition.
 The chosen company has technical
innovations that helps to enhance
customer experience at workplace.
 The enterprise has effective employee
retention rate which create high
strength in market (Kreuter, Farrell and
Brennan, 2013).
 Due to limited market share, the
company has not good brand recall.
 Different types of government policies
and parameters affect the company
when they are operating globally
(Cooper and Quick, 2017).
Opportunities Threats
 High potential in the emerging markets
is the greatest opportunity to Hilton
hotel.
 Hilton hotel has the biggest threat due
to entry of several international brands
with strong hold of long standing
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 Through creating innovations in
customer services, the chosen
organisation has created opportunity to
enhance large base of audience
(Sherman and Lynch, 2014).
 Digitalization and better use of
technology also create opportunity
within the enterprise.
power.
 Price point is the main element of the
competition.
 Stagnated growth also create threat to
the chosen business.
PESTLE analysis
PESTLE analysis is the strategic tool which stand for political, economic, social,
technological, environmental and legal factors. These factors create high impact on the
functioning of Hilton hotel. It includes following elements: Political factors: Political stability of UK market is the key of success in hospitality
industry which cope up with different situation of the world (Kimble, 2015). It can
influence to the Hilton hotel through enhance number of visitors, tourist and business
travellers who visit to nation. This is because, it assists to gather high amount of tax and
interests from increasing number of visitors. Economic factors: National macroeconomic situation and event are the major factors
which affect the chosen hospitality organisation. In addition to this, economic factor
includes extent of expected and real economic growth within the UK market. Hilton hotel
face significant challenges which create crises in the business. Further, GBP exchange
rate determines major currencies and inflation in UK which represent as significant factor
impact on the industry (Sherman and Lynch, 2014). Social factors: Hilton hotel is very well-known brand amongst the international visitors.
UK is the popular destination for shopping and tourists. There are wide range of social
elements impact on the hotel industry. For example, consumer lifestyle, demographic
variables, etc. Therefore, when demand, interest and customer perception change, it
creates impact on the functions and operations of Hilton hotel (Dudovskiy, 2016). Technological factors: Overall development of the hotel is depends on the technological
aspect. Infrastructure of Hilton hotel related with its catering industry which create great
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and positive impact on their performances. With the use of energy and costs, potential
innovations classified as important technological factor (Gostin, Wiley and Frieden,
2015). Legal factors: Legal factor also important source of external impact on the Hilton
performances. It includes changes in the UK jurisdiction which affect to the catering
industry in direct and indirect way (Carroll and Buchholtz, 2014). Due to many visa
restrictions rules performances of the chosen business impacted.
 Environmental factors: Hospitality and catering industry become a point of criticism
which polluting the environment for most tourist attractions. It includes historical places,
forest areas, beaches, etc. Range of activities related with tourism which not only create
pollution but also disturb related environment and animals as well (Ayers and
Shakespeare, 2015).
Porter's five forces model
Porter's five forces framework is the effective tool which assists to analysing business
competition in the market (Sherman and Lynch, 2014). Elements of porter's five forces
determines following impact on its operations and functions:
Bargaining power of buyers (High): Buyers are king of market so that they are highly
impact on the business functions and operations. Customers of Hilton hotel can easily access to
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Illustration 1: PESTLE analysis of Hilton hotel
(Source: Teh, 2016)

information that are related to buyers. As results, buyers are price sensitive and there is low
switching costs towards other products (Cooper and Quick, 2017).
Bargaining power of suppliers (Low): In the UK market, there is low suppliers bargaining
power because there is large global brand commodity based market so that Hilton hotel has
opportunity to purchase raw material from different supplier. In addition to this, there is low
switching cost to the new product so that it is creates major impact on the business.
Competitive rivalry (Moderate): There is high barrier to exit so that other competitors of
Hilton hotel create few impact on the business operations and functions. Beside this, the chosen
enterprise has effective position in the market so that competitive rivalry within the industry is
moderate.
Threat of new entrance (Low): Threat of new entrance in the UK market is low so that
capital intensive market industry dominated by the 2 players. This is because, there is strong
brand presence of Hilton hotel (Hartman, Martin and National Health Expenditure Accounts
Team, 2015). In UK, new businesses cannot easily take place so that threat of new entrance is
very low.
Threat of substitute (Moderate): In UK market, there is varied options to customer to use
hospitality services in market. Therefore, it not creates major impact on the Hilton hotel
operations and functions. Due to varied options of business services, it can be depicts that there
are many substitute products and services available.
1.3 Potential improvements in the business unit
In order to create effective functioning and outcomes, potential improvement require at
workplace of Hilton to create several opportunities. These opportunities help to grow outcomes
in systematic way. In this context, Ansoff's growth matrix can be implemented for development
of the possible aspect:
Market penetration: Market penetration is the effective potential improvement in which
Hilton can focus on selling of existing products in the same market. There are four main
objectives through which the chosen business can easily penetrate which are as follows:
 Maintenance and increasing of the market share with existing products. In this aspect,
combination of several elements included such as competitive pricing strategies,
advertisement, sales promotion with more resources (Kreuter, Farrell and Brennan,
2013).
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 Securing the dominance of market growth.
 Restructuring and maturing the market of Hilton hotel in which many competitors take
place. It requires more aggressive promotional campaign which support pricing strategy
which designs by the enterprise (Carroll and Buchholtz, 2014).
 Enhancing existing customers' usage through introducing loyalty scheme.
Market development: Market development is the another effective growth strategy in
which business seeks to sell their existing products in new areas. Following are possible ways in
which Hilton hotel can easily approach their strategy:
 New geographical markets for instance services and products established in new nation.
 New dimension of products and packaging
 Using new distribution channel such as mail order, e-commerce, etc.
Product development: Product development in the growth strategy in which Hilton hotel
can easily introduce new products in the existing markets. It is requires develop new
competencies and modified products which could be appeal to the existing markets (Sherman
and Lynch, 2014).
Diversification: Diversification is the another growth strategy in which can be used by
the organisation to introduce new products in market. It is the riskiest strategy because Hilton
hotel also move to those place in which they have not or little experience. In order to adopt this
strategy, the chosen organisation require clear idea to gain effective results from market.
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Illustration 2: Ansoff matrix
(Source: What is the Ansoff Matrix? 2017)

LO 2
2.1 Effectiveness of the business
Business effectiveness is the degree in which goals and objectives are accomplished
which extent to targets and solve issues. Further, in Hilton hotel business effectiveness describes
to do right things which assists to develop market share in positive way (Carroll and Buchholtz,
2014). Following are certain elements in which effectiveness of the chosen organisation will be
developed in systematic aspect:
Products/services: In order to create effective functioning, there are different kinds of
products and services provides by Hilton hotel to enhance their revenue and profit. In this way,
products and services are categories in several aspects such as business convenience, Family
comfort and convenience, person convenience, etc. For business convenience, they are mainly
providing business centre, fax, modem, printer, and many other products. Further, for family
convenience they are providing children's menu, cribs and high chairs. In personal convenience
lounge, electric service, baggage storage provides to person. In addition to this, there are
different types of other services providing by company such as accessibility needs, recreation
convenience, etc. (Gostin, Wiley and Frieden, 2015).
Marketing: In order to develop effective functioning, mainly Hilton hotel using global
marketing strategy. It is the best way to enhance customer base with individual focus in all over
the world. There sales team always engaged in combining several aspects to provide
differentiated products to each customer (Carroll and Buchholtz, 2014). Further, the chosen
organisation caters expert and trusted sales force, power of scale, high level access, regional
marketing, etc. These all are important elements which helps to create products marketing and
accomplish business objectives as well. Beside this, the selected business unit also using social
media for develop their operations and functions in systematic way (Hartman, Martin and
National Health Expenditure Accounts Team, 2015).
Sales: Sales is the main concern point which create high effectiveness in the organisation
to cater relevant information at workplace. For enhancing sales, Hilton hotel using several
methods that assists to deliver profitability in market.
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Finance: Finance require enhances operations and functions in new areas for developing
effectiveness of the business. In this aspect, Hilton hotel gather more amount through investing
gather loan, etc. It is the most important aspect which assists to measure relevant results in the
business unit (Cooper and Quick, 2017).
2.2 Plans to improve organisation and justifying their value
Financial management system is the effective methodology which used by the
organisation to oversee and govern their expenses, assets, objectives, income that enhance
profitability and sustainability. In Hilton hotel, good financial system categories to enhance short
and long-term performances of the company to eliminate accounting errors and minimizing
record keeping (Kreuter, Farrell and Brennan, 2013). It ensures compliance with tax and
accounting regulations that help to accommodate change and growth in business unit. There are
certain significant features of good financial management system in the chosen organisation.
They are as follows:
 Keeping all payments and receivables transparent in the business unit.
 Depreciate assets as per the accepted schedule (Porter and Lee, 2013).
 Keeping the track of liabilities
 Coordinating the several elements such as income statement, expenses statement and
balance sheet of Hilton hotel.
 Create balance among multiple bank accounts of the organisation.
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Illustration 3: Effectiveness of business in market
(Source: Gitney, 2015)

 Keep up to date records to develop profitability and productivity (Sekaran and Bougie,
2016).
 Maintain accurate internal and external audit in Hilton.
LO 3
3.1 Current skills of staff and management
In the selected business unit, current skills of management and staff assists to measure
outcomes in systematic way (Stroetmann, 2013). It is the effective opportunity through which
different types of skills can be develop in Hilton hotel. Following are different skills has been
explained which determines at workplace of the business unit:
 Technical skills: Technical skills are defined as the abilities and knowledge which are
needed to perform particular tasks. These are practical elements which can be relate to
mechanical, mathematical, IT and many scientific tasks. These types of skills require
training and experience to become master in Hilton hotel. It includes big data analysis,
coding and programming, project management, social media experience and technical
writing (Kimble, 2015). With the help of these skills, the organisation can easily enhance
their performances. This is because, they gather different information which assists to
implement in business goals and objectives.
 Operational skills: There are different kinds of skills take place which need to be
manage effectively to run day to day operations and functions (Williams, 2016). In this
way, improvement can be made that create successful targets for ascertain more profits
and revenue. In Hilton hotel, these skills include marketing, sales and customer services,
communication and negotiation, project management and planning, delegation and time
management, etc. (Carroll and Buchholtz, 2014). These skills develop proper functioning
in business through ascertain objectives and goals of Hilton hotel. In addition to this,
there are also different skills need to be cater to accomplish organisation outcomes. For
example, understand customer needs, communicates effectively, understand the business
performances, etc. (Crane and Matten, 2016).
 Managerial skills: There are different types of managerial skills needed in Hilton hotel
which help to accomplish effective results. In this aspect, manager require multi-tasking,
decision making, leadership, motivation, communication and business development
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