Business Strategy for Hilton Hotels: Internal and External Analysis, Competitive Environment Analysis, and Strategic Options

Unit 32 – Business Strategy

Table of Content
Introduction p
Part A: An internal and external analysis that provides a platform
for strategic decision making: p-p
1. PESTLE and SWOT of the organisation and an evaluation of the
organisation’s resources and capabilities p
2. Competitive environment analysis using Porter’s Five Forces model
p
3. Identification and justification of the organisation’s existing and/or potential
competitive advantage p
4. Valid strategies and tactical objectives to achieve overall strategic objectives
p
Part B: On the basis of this analysis critically evaluate and justify
strategic options for the organisation: p-p
1. Critical evaluation of the different types of strategic directions available to
the organisation p
2. Justification and recommendation of the most appropriate growth platform/s
and strategies p
3. Evaluate ways and means by which the chosen strategy/ies can be
monitored in order to ensure success p
5.0 Conclusions p
References p

Introduction
Hilton hotels is a very big brand name all across the world. In the hospitality industry it has been
working for a long time now and has gained a lot of experience as well as goodwill too
(Loughnan., 2020). This report in particular gives a description regarding the external factors that
impact the working of the overall organization as well as the internal factors too. First, the
PESTEL analysis is discussed and then the SWOT analysis is discussed in the report in particular.
Next, the report describes the resources as well as the capabilities of the organization that is
selected for the research in particular. Next, the report also analyses the competitive environment
of the company in particular through using the porter's five forces model and supports critical
evaluation of existing and the potential competitive advantage that the company has in particular.
Further, the tactical objectives and the strategies that are valid for the purpose of achievement of
the strategic objectives of the organization in particular are also discussed below. Lastly, the
different types of the strategies and then the most suitable and appropriate growth strategies and
platforms are also recommended in the discussion. And lastly, the ways of monitoring these
strategies are given.
Part A: An internal and external analysis that provides a platform
for strategic decision making:
1. PESTLE and SWOT of the organisation and an evaluation of the
organisation’s resources and capabilities
Determination of environment under which business functions is foremost or first step that a
organization must take. The SWOT as well as PESTLE analysis gives the correct knowledge of the
macro environment by undertaking as well as studying all factors that generally affect the smooth
going of company. The following analysis is done on the Hotel Hilton:
SWOT analysis
This is an tool that is mainly used by every business to guess the external environment, it
generally consists of strengths, weakness, opportunities and threats (Teoli, 2019). This tool helps a
business to know their strength and weaknesses to hold as well as to eliminate them and even helps
firm to determine right opportunities and threats that are normally available in external environment
for grab the chances and also take precautionary measures.
Strengths of the business:
 The brand comprises 14 other businesses under itself consider the most famous organizations
such as Embassy Suites, Waldorf Astoria, Conrad and Hilton resorts and hotels etc. The
brand serves in above 100 countries and has served over 140 million guests.
 The business has good employees' retention, so it gives positive impact on the company
performance as well as have good reputation in market place.

 Hilton offers one of the best service to its customers, by offering a luxurious comfort, quality
products and by offering good discounted prices, late checkouts, free access of internet and
many other things which are generally appreciated by customers over the world.
 The Hilton has technical innovation to enhance the customer experience as well as constant
upgrade of business processes.
Weaknesses-
 Limited market share with good brand image. And there operations are generally affected
globally due to various government policies as well as parameters.
 Dependence on the home market of US is the one major weakness of Hilton as 80% of revenue
generation is done from the US market and only 6% of the revenue is generated from Asia
Pacific market.
 The Hilton has high amount of debts that is recorded in the year 2015. It had a debt of around 5
billion, including non-recourse debt of USD726 million.
Opportunities-
 The brand has a scope of further expansion in global market. through focusing more on their
R&D Hilton can enhance its services and operates on a much bigger level in the future.
 High potential in the markets.
 Digitalization as well as better use of the technology.
 Hilton can also introduce its services in the mid-level market and by forming strategic
alliances and changing its approach. And the business can also innovate in the customer
services.
Threats
 As the business operates internationally there is always threat of the political instability as well
as terrorism that can also affect the functioning of the organization.
 Competition on the price point.
 There are various threats that are also observed in Hotel chain such as ethics related issues
which are arising as well as complaints by customers in review, feedback column which also
increasing. So this can affect growth or success of the hotel in the future (Puyt, De Graaf, and
Wilderom 2020).
PESTLE analysis
PESTLE is an strategic tool that generally stands for the political, economic, social,
technological and legal factors. With the help of PESTLE analysis a business can analyse all external