Hilton Hotel Strategic Analysis

This assignment requires a comprehensive strategic analysis of Hilton Hotels. It involves applying analytical frameworks such as PESTLE Analysis, SWOT Analysis, and Porter's Five Force Analysis to evaluate Hilton's business effectiveness. Additionally, the assignment calls for an explanation and evaluation of Ansoff's Matrix as a growth strategy tool for Hilton, focusing on its implications for marketing, sales, and staffing operations.

BUSINESS HEALTH
CHECK

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................1
1.1 Analyse the objectives of business...................................................................................1
1.2 factors that impact on the business...................................................................................2
1.3 potential improvements to the business organization and/or operation...........................5
LO 2.................................................................................................................................................5
2.1 Review the effectiveness of the business.........................................................................5
2.2 Develop plans to improve the business, justifying their value.........................................6
LO 3.................................................................................................................................................7
3.1 Evaluate the current skills of management and staff........................................................7
3.2 Plans for the development of skills for management and staffs.......................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business Health Check is focused on overall business operation for better performance.
Business health check refers to evaluation of critical elements their business. Business health
check is the fundamental key to assess the quality and performance of different business and
services. In this report, we will explain analysis of business objectives and evaluate smart
strategies, to explain factors which affect Hilton hotel to determine the improvements of
business operations, to explain reviews of effectiveness of business, to planning improvement of
business values, to evaluate skills of management and staff and to developed skills of staff and
management.
LO1
1.1 Analyse the objectives of business
Hilton hotel has adopted technologies and innovation in the business for future success
of company and their employees.
, They can create new innovation in their services and providing services to customers
for earning the profit. For futures aspects the company is better utilization of raw materials in
process of production, manage and measures quality, quantity, pricing and packaging of the
products, manage the wastage from the production (Bolden, 2016). They are providing various
types of services to their customers .
Hilton hotel provides enormous number of services including accommodations etc. This
year they have introduced many facilities for customers. They all are equipped with modern
technologies.
Now ,they have introduced the hotel services with different offers. They can provide
various deigning outfits for customers targeting. They have created new ideas and methods to
enhance the services of hotel with various different facilities (Cottrell, 2015).
The main objective of company is profit maximization. Long-term objective of the
company is to earn profits and short-term objectives is to identify strengths and weaknesses for
future success has adopted SMART strategies for achieving long term and short-term objectives
of the company.
 Specific: The hotel's objectives should be clear and specific. They should be clear
to achieve their objectives. These responsibilities are not only of the management
but also of employees (Zalengera and et.al., 2014).
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 Measurable: Hilton hotel has identified and measured the needs and wants to
customers for help to achieving the goals of company. They can efforts for targets
customers for booking of rooms for different companies. They can measure
values and ideas of the company.
 Achievable: The objectives of hotel should be achievable for success of
company. Management efforts on difficult situation, it is barriers on achieving the
company goals (Bohari, Hin and Fuad, 2017).
 Realistic: Hotel ’s goals should be realistic. Clear information given by
management and leaders of their employees. It will ensure that they provide good
quality services to their customers.
 Time bound: The objectives should be time bounded so that it can be achieved in
time. (E. Dobbs, 2014).
1.2 factors that impact on the business
There are many internal and external factors affecting the business. We will explain that
PESTLE analysis in external factors and SWOT analysis in internal factors. Another factor to be
considered that has impact on business is Porter's Five Force Analysis.
PESTLE Analysis
Political Factors: Hilton hotel is affected by various political factors such as taxation,
interest rate, modification of policies, rules and regulation by the government. According to
trade policy, reduce the cost of resources is political causes (Dicke and et.al., 2015).
Economical Factors: Economical factors such introduce their product with same prices
of Hilton hotel services and due to some currency exchange rate.
Social Factors: The Company is affected by social factors such as change the fashion,
change taste and preferences of customers, changes in needs and wants to customers. By mistake
company can use low quality raw material is also affected the company (Hong and Lu, 2016).
Technological Factors: Changes in technologies, modified machinery are available;
these technological factors are positive effect on hotel. Competitors of Hilton hotel provides the
latest technology services as the same cost to the customers, it is negative impact. (Hassan And
et.al., 2016).
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Legal Factors: In this factor, modification of laws, rules and regulations related to hotel
business, changes in tax etc determine the strategies for business. Modification of provisions
regarding services selling and purchasing of positive legal factor of business.
Environmental Factors: Hilton hotel services are affected by some of environmental
causes, it included change in environment, manager of waste by produce and manufacture the
goods is affected of business.
SWOT Analysis
STRENGTHS
 Increased customers experience and
expectation.
 Adopted latest trends by fashion.
 Focusing on customers services.
WEAKNESSES
 Loss of customer’s confidence.
 More spaces of stores.
OPPORTUNITIES
 Increase in online services and
bookings.
 Increase in target customers in existing
areas.
 Providing healthy food and comfortable
accommodations.
THREATS
 Entry of strong competitors.
 Changes in taste and preferences of
customer.
 Increased pollution of chemicals.
PORTER'S FIVE FORCES ANALYSIS
Threat of new entry: Every business has threats of new entry and competitors. Hilton
hotel has also threatening of new entry in the hotels' sector. Time and cost of products and
services, technology protection in the mobiles, TV, and other products. There is no knowledge
and experiences of hospitality sectors, operating services is not to be properly done. These causes
of threats are due to new entries of other hospitality services(Bolden, 2016).
Bargaining power of buyers: In this force, there are no. of customers who are price
sensitive and switching cost of the products. There are differences between competitors and
focuses on customers. There are some changing in the cost of products, uncertainty of customer’s
income. There are many alternatives in the market.
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Threats of substitution: Substitution means alternative to products. There is some
substitute of food and hotel services in hospitality sectors (Cottrell, 2015). There is cost changing
in substitutes services. Hilton hotel is clearly focusing on hotel services in comparison of their
competitors. If the substitution's performance is better so that it is threats of business.
Bargaining power of suppliers: There are a number of suppliers, change in cost, and
size of suppliers. But Hilton hotel is not depended on customers because they can provide their
own services . In this force, identify the ability to their substitutes. There is singularity of
services among customers . (Zalengera and et.al., 2014).
Competitive Rivalry: Competitive rivalry includes no. of competitors, differences in
quality, and prices of products. Hilton hotel has faced competition from supermarkets such as
Starwood and Mariott hotels.
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Illustration 1: Porter's Five Forces Model
(Sources: Porter's Five Forces, 2018)

1.3 potential improvements to the business organization and/or operation
Improvement of business organization and operation is to determine by explaining the
Ansoff's Growth Matrix.
ANSOFF'S GROWTH MATRIX: In the Ansoff's growth matrix, four parameters are included
such as:
Market Penetration: Market penetration is growth strategy for increasing selling of the
existing products. Hilton hotel introduces existing services in existing market to increase their
booking services. This strategy helps to improve business operations (E. Dobbs, 2014). They can
offer the free days accommodations for attracting customers. They can also provide good quality
and services by offering it during special occasions.
Product Development: Product development is the strategy which means increasing the
number of customers by providing additional services. Hilton introduces new services in existing
market is to increase the number of customers. This strategy is to determine the business
organization. They are developing their new services and accommodation manners according to
the changing fashion of hotel. (Dicke and et.al., 2015).
Market Development: Market development means increasing of existing services in
new market. This strategy helps in developing the market by existing. Hilton hotel adopted this
strategy for increasing their bookings on existing services. Customers demand Hilton's services
and company is always available for them.
Diversification: Diversification refers to increasing the booking in new market. This
strategy helps in developing products in new market (Hong and Lu, 2016). Company is to adopt
the strategy for improving business operations. Research and development department of Hilton
can do efforts for modify and introduce the new products of their new customers.
LO 2
2.1 Review the effectiveness of the business
Through marketing of services, business will become more effective. Such as:
Products and services: Hilton hotel are providing various services with accommodation
to their customers according to customers’ needs wants and preferences (E. Dobbs, 2014). They
can available for clothing, footwear, cosmetics and perfumes, and other technology equipment in
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order to provide their customer as a home like feelings. By increasing the satisfaction of
customers, business must be become more effective. They can provide products for increasing
selling and targeting customers.
Marketing: Hilton has adopted the marketing strategies such as provide services on the
online and physical stores as well. There are various hotels in the market that are also providing
of clothing and footwear, and other services but customers are preferring the famous hotels like
Hilton (Hassan And et.al., 2016). They can market their hotel services through social media,
online services, advertising and other ways.
Sales: Hilton are selling their services on target customers who have been using the
famous hotels . They can use the various types of selling methods for becoming effective of their
business. They can also sell their services on online. They can adopt these types of booking
strategies which is felt good of customers. Through these strategies help in effective business
(Zalengera and et.al., 2014).
Finance: If the company has more efforts on booking of rooms so that they can raise
their profits and developing their growth in the hospitality sectors. Through increasing the capital
investments, they can more financing in the products and services. They can huge amount of
money on advertising and providing online services.
Staffing: Staffing is the important for effective business because there is no contribution
and coordination of staff and management, so that there is difficult for business (Hammond,
Keeney and Raiffa, 2015). Every employees and staff of the hotel is the main part of services .
Business Image: There is good brand image of Hilton in hotel industry, because brand
images of products and services for helping the targeting customers, becoming the futures
pictures . This is also help in become business more effectively.
2.2 Develop plans to improve the business, justifying their value
Business planning plays an important role in improving functions of Hilton It establishes
guidelines for improvement measures in every areas of hotel such as marketing, sales,
production, finance etc. However, forecasting marketing will help its services in deriving use of
technological advanced tools for reaching maximum number of people at one time. In order to
improve marketing and promotion strategies of Hilton , various trips are offered by it.
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Hilton will be focusing on social media advertising, which will assist the firm in targeting
worldwide online hotel booking sites . In addition, the firm will focus on offering discounts and
schemes at online platforms to boost bookings and increase customer base. This strategy will
assist the organisation in clearing dead stock and gaining online customers (Bohari, Hin and
Fuad, 2017).
Apart from this, to manage cost effectiveness the company will implement the use of
corporate governance which will assist Hilton in making optimum utilisation of resources and
minimizing consumption of natural resources such as energy. However, it is important for the
business to minimize wastage of resources in order to manage cost effectiveness in an enterprise.
Further, to improve finances t, the management will ensure adequate cash flow in every
department of entity. Administering will assist the company in maintaining adequacy of funds
which will aid in time and lean management (Hassan And et.al., 2016).
Distribution of roles and responsibilities among staff members is another function which
plays a vital role in improvising business operations. Apparently, to improve staff management
in hotel business, the company will be focusing on dividing duties and responsibilities among
employees according to their skills and capabilities. Further, to increase productivity Hilton will
organise training and development for staff members. This strategy will help the manager in
managing innovation in existing services. Thus, in accordance to changes and improvisation, it
can be said that it is important for Hilton to regularly focus on altering business plans in
accordance to dynamic market trends (Hong and Lu, 2016).
LO 3
3.1 Evaluate the current skills of management and staff
The improvement of skills of management and staff is the important for business
organization. There various skills in the management and staff such as:
Decision-making: Decision-making is the important for every business and company. In
every business, there are many decisions which are made by management. Management has to
power for quick decision.
Communication Skills: Managers has to be good communicators. Between the
employees and employers, employees and staff, managers and staff, all have been good
communication skills (Cottrell, 2015).
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Leadership Skills: Manager are becoming a leader but leaders are not become mangers.
Because managers are manage the whole company, but the leader is leads and training of the
employees.
Time Management: Managers are to more efforts in work done on right time. They can
manage time durations (Dicke and et.al., 2015).
Problem Solving: It is the right of managers is to solve the any problem and situations in
the Hilton. Problems such as: utilization of resources, training and development, compensation
management, management of HR policies and practices and other situations.
3.2 Plans for the development of skills for management and staffs.
For smooth and successful run of Hilton the management and staff of that organization
must be aware of all plans that can develop their skills to work in a smart way.
Communication intelligence: Management is the top hierarchy of an organization and
they must trust all the members working under them. (Cottrell, 2015). Any management cannot
run by creating fear among staffs. For this, a management must have better communication with
their staffs. Management should be respective directives while making conversation with their
staffs. A confidential soft tone with congenital attitude should be followed by the management.
These manners act essential while dealing with the people working in the organization. .
Accept responsibilities: If some mistakes has been done by the management, they
should accept the same. Acceptance of mistakes by the management can raise their respect and
moral values to a huge extent. Also, along with this, the management and staff members should
stay careful about not repeating the same mistakes again.
Deal with confirmation: Hilton Hotel must stuck to their words about what they have
agreed to the staffs. Whether it is related to salary, incentives and other schemes etc., they
should conside considering the same. The management Staff should follow all rules and
regulations made by the management for a good environment.
Training program: Training program must be conducted from time to time for the
development of new skills of their staffs. Updated training programs may lead the company in a
smooth way and make staff will feel easy to work. New employees must be given training for
enhanced work performance.
Praising and Rewarding: Nothing motivates like praise and rewards. Good work of
their staff must be always praised. If the overall sales reaches or exceeds the target of the
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company, a party or functions must can be organized by the management for the staffs and the
employees.. Also, there may be reward functions for the most efficient team.
Feedback: Working according to the roles is not important for an organization. Taking
feedbacks of the completed tasks is one of the most important step and it can take Hilton hotel
one step ahead. For an efficient output it is necessary that Feed-backs should be taken from their
staff regarding their works, management qualities etc. Asking for customers’ feedback is one of
the important aspect because They can be able to know the factors that are liked by the people .
Commercial Awareness: This is one of the demanding plans for everyone either it is
management or an employee. It is very important to understand the business plan that the
management is going to set up in market (Bolden, 2016). Organization mission and aims should
be clear to management and staff. Everyone must have an understanding of the sector that the
company belongs to. Also, along with this, they should be aware of all the understanding of
political and economic issues that are affecting the business so that they can make effective
changes accordingly that can prove beneficial for the company as well.
CONCLUSION
In this report, it is concluded that objectives can be achieved of a company by using
smart strategies. Here explanation of PESTLE Analysis, SWOT Analysis, and Porter's Five
Force Analysis of Hilton to determine the effectiveness of business. Explain the Ansoff's Matrix
of growth strategy for improvement in operation of organization. To explain and evaluate the
effectiveness through marketing, sales and staffing.
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REFERENCES
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Malaysia: A SWOT-ICT analysis. Geografia-Malaysian Journal of Society and
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E. Dobbs, M., 2014. Guidelines for applying Porter's five forces framework: a set of industry
analysis templates. Competitiveness Review. 24(1). pp.32-45.
Aronoff, C. and Ward, J., 2016. Family business values: How to assure a legacy of continuity
and success. Springer.
Dicke, T. and et.al., 2015. Reducing reality shock: The effects of classroom management skills
training on beginning teachers. Teaching and Teacher Education. 48. pp.1-12.
Hong, J. and Lu, J., 2016. Assessing the effectiveness of business incubators in fostering SMEs:
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Hassan, N. U. And et.al., 2016. Framework for minimum user participation rate determination to
achieve specific demand response management objectives in residential smart
grids. International Journal of Electrical Power & Energy Systems. 74. pp.91-103.
Hammond, J.S., Keeney, R.L. and Raiffa, H., 2015. Smart choices: A practical guide to making
better decisions. Harvard Business Review Press.
Online
Porter's Five Forces, 2018. [Online]. Available through :
<https://www.mindtools.com/pages/article/newTMC_08.htm>.
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