Business Environment Analysis of Hilton Food Group Plc in UK Accommodation and Food Service Industry

This coursework analyses the business environment of Hilton Food Group Plc in the UK Accommodation and Food Service industry. It includes the industry structure, external environment analysis, business challenges, and decision-making effects on employees and customers.

Individual coursework

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Identification of one industry and selecting UK Public Limited Company from the industry....1
Discussion of structure of the chosen industry............................................................................1
Discussion of business organisation and nature of company in relation to industrial structure..2
Analysing external business environment of the company over last 5-10 years.........................2
Discussion of business problems and challenges faced by the company and criticising external
effects of business decision on others..........................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Understanding business environment enables a company to determine opportunities together
with get first mover benefits (Munaro, Tavares and Bragança, 2020). With this, enterprises cope
up with rapid changes and formulate policy for future success. For the coursework, selected
company is Hilton Food Group Plc which operates in Accommodation and Food Service
industry of UK. The establishment is popular for range of innovative food, culinary expertise
together with passion for food.
The coursework discusses one industry from UK Standard Industrial Classification (SIC
2007) and information of the company operating in the industry. It also includes information
about structure of the industry, business environment and challenges that the company is facing.
MAIN BODY
Identification of one industry and selecting UK Public Limited Company from the industry
Accommodation and Food Service industry is one of industry considered from UK
Standard Industrial Classification (SIC 2007) (UK Standard Industrial Classification of
Economic Activities 2007 (SIC 2007). 2022). The industry includes provision of short stay
accommodation for visitors as well as other travellers together with provision related to complete
meals and drink fit for immediate consumption. The industry includes various sections, such as
the provision of long term accommodation, hotels and similar accommodation, holiday and other
short-stay accommodation, restaurants and mobile food service activities, beverage serving
activities and many more.
Hilton Food Group Plc operates within Accommodation and Food Service industry. The
company has headquarters located at Huntingdon, UK since 1994 (Hilton Food Group Plc,
2022). It produces around 2.75 million packs a week and supply more than 500 million meals to
consumers of UK each year. On annual basis, the firm supply across 41% of households of UK
from its sites.
Discussion of structure of the chosen industry
Accommodation and Food Service industry is vast as it is broken into separate sectors
comprising Accommodation, Entertainment and Recreation, Travel and Tourism as well as Food
and Beverage. In the Accommodation and Food Service industry, there are major players such as
Hilcona, Highbury Canco, Can-Pack and March Foods. Perfect competition structure is followed
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in the industry as there as many number of distinct buyers along with sellers with infinite
alternative for pursuing operations (Idoko and MacKay, 2021). In this, bargaining powers with
suppliers are high which cause the firms to devise more strategic decisions for the purpose of
improvising profitability of industry as whole.
Discussion of business organisation and nature of company in relation to industrial structure
Business organisation is said to an establishment that is formed with the aim of carrying
out practices to make profit. It is predicted on systems of legislation governing contract addition
to property rights and exchange. It brings together all personnel and understand direction of the
firm. Hilton Food Group Plc is a business organisation which works in collaboration with best
customers, suppliers as well as colleagues to stay ahead in competition in the world wherein food
is more complex than ever. It works with huge number of suppliers to achieve the ambition of
becoming first choice of partners for retailers that seek excellence and growth. It has been
analysed that UK has supportive business environment for companies to carry out business
activities effectively. It has leading exporters of technology, talent and ideas. Hilton Food Group
Plc operates in business environment of UK since establishment.
Analysing external business environment of the company over last 5-10 years
External business environment is said accumulation of macro factors that are beyond
control of an enterprise (Bagwell, 2018). In of Hilton Food Group Plc, divisional organisational
structure is adopted by managers to segment workforce on the basis of products or markets, that
is opposed to job roles. In last 5-10 years, there are huge changes in business environment of
UK. Mentioned below are macroeconomic and microeconomic factors that influence by
organisational structure of Hilton Food Group Plc: Social factor analysis: The social factors are considered as most important in the
functioning of a company as they include traditions and culture of the society. Many
social changes have occurred in UK in last 5-10 years including change in social patterns
and mindset of society which has impacted mainly in organisational structure of Hilton
Food Group plc. The hotel has developed internal environment and hierarchy according
to social factors and their influence in order to facilitate decision making. Technological factor analysis: Information and technology in United Kingdom has
developed majorly in last 5-10 years (Kotler and Et. Al., 2019). The new management
tools like Customer relationship management and management information system are
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now trending in the corporate world. Hilton food group Plc has also designed its new
structure with the application of information and technology in order to perform better in
the hospitality sector. Environmental factor analysis: Environmental policies of UK government has become
strict in last 5-10 years which has impacted on organisational structure of the business.
Structure of Hilton food group Plc is now formulated or designed by the company while
taking into consideration implementation of environment based policies of the
government.
 Political factor analysis: In the Last 5-10 years there is a major change observed in
corporate sector due to different corporate laws (Adams and Abhayawansa, 2022). Also
the COVID-19 pandemic has created a major impact on the hospitality industry which
made Hilton food group Plc to design its organisational structure mainly based on virtual
environment. The virtual structure of the organisation includes application of advanced
computer systems and software in order to lead the marketplace. The UK's decision of
BREXIT has also impacted on different policies and structure of an organisation. All
major companies which are functioning in the international and national marketplace
should follow guidelines and corporate laws in order to develop effective and precise
business practices.
 Legal factor analysis: The legal factors are considered as most important for a business
which includes law and policies designed by local authorities. It is necessary for the
Hilton Food Group Plc to follow all the major policies and regulations developed by the
local authorities to perform ethical and sustainable business practices. The legal factors
are also followed by Hilton food group Plc to evaluate best business functions and tasks.
In the last 5-10 years, the legal policies of UK has taken a major shape which includes
employment, equality and workplace safety law which has led to the formation of an
organised structure.
 Economical factor analysis: It entails elements which affects commercial behaviour of a
company. Economy of UK is market oriented that promotes free competition among
participants of market. In aspect to Hilton Food Group Plc, working in the economy
benefits by increasing production, efficiency along with innovation. There are notable
economical changes experiences by the company including changes in unemployment
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rate, education level, infrastructure quality, inflation rate and hence forth. Mentioned
below are some of economic factors that influence business structure of Hilton Food
Group Plc:
Factors affecting demand of products or services of company with demand curve:
Demand of products impacts structure of company as greater product demand gives the
enterprise opportunity for growth and enhances capacity for matching level of demand.
Figure 1 Shift in demand curve. 2021
(Source: Shift in demand curve. 2021)
As per the presented diagram related to demand curve, it is analysed that shift in demand
for products or services of company occurs at the time when determinants of demand that are
other than prices changes (Shift in Demand Curve, 2021). In UK, factors that affect demand for
offerings of Hilton Food Group Plc are consumer income, availability of substitutes and number
of consumers in market.
Determinants of business supply and identification of aspects causing supply of goods or
services to fall or rise: Business supply is termed to quantity of products which a company has to
offer to clients at specific time point.
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Figure 2 Shifts in supply curve. 2021
(Source: Shifts in supply curve. 2021)
From the above graph, it can be determined that supply of product of company rise or fall
because of certain factors that are number of sellers, technology, input price and many more
(Shift in Supply Curve, 2021). In context to Hilton Food Group Plc, there is rise in supply of its
offerings because of using advanced technology, keeping input prices low and many more. The
company continued operational resilience in order to maintain supply of products as per Covid-
19 situation persist.
Competitiveness of UK market and its impact on future of company: UK market is
considered as most competitive market wherein business needs strong historical performances
for conducting practices (Kalogeropoulos, Fletcher and Nielsen, 2019). In UK, key players are
March Foods, Highbury Canco and many more that have larger share of Accommodation and
Food Service industry. For Hilton Food Group Plc, intense competition means the company
needs to keep itself updated along with offer innovations at right place and time to achieve
competitive sustainable edge which can impact positively on future of the firm.
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Examples of random shocks which can determine UK government’s fiscal policy along
with discussion of impact of the policy on UK’s economy and the business: Due to Covid-19
pandemic, UK government initiated experimenting with fiscal rules when labour government
legislated existing budget would be balanced over the duration of business cycle. For example,
government has largely taken an approach for neglecting public debts as well as deficit to deal
with the pandemic. It impacted positively on economic growth of UK until it reached at certain
level. In aspect to Hilton Food Group Plc, public debts result in crowd out private investment as
well as threatens growth by higher inflation, lower savings and decreased potentials for
responding to problems that can impact negatively on company as it causes greater risk of
financial crisis.
Discussion of business problems and challenges faced by the company and criticising external
effects of business decision on others
An organisation, for example, Hilton Food Group Plc, faces huge number of problems or
challenges while carrying out business practices. Mentioned below are some of business issues
and challenges that managers of Hilton Food Group Plc are facing:
Uncertainty about future: It have been analysed that dynamic business environment
creates complexity for companies for predicting accurate future (Mauri and Et. Al., 2018). In
aspect to Hilton Food Group Plc, uncertainty about future is a business issue that is faced by the
company. It is important for managers of business to have ability for predicting customer trends
and market trends to dynamic economic climate.
Meeting customer needs: For a company, maintaining quality of customer relationship
comprises meeting needs of target audiences. In Hilton Food Group Plc, it is a challenge for the
company to being aware about needs, choices, wants and desires of customers.
Lead generation: Another issue and challenge that businesses are facing in real world is
lead generation. It is analysed that generating enough leads is significant for keeping
organisational sales force happy. In Hilton Food Group Plc, generating desired leads is a
challenge due to which determined sales prospective are not achieved promptly.
Within Hilton Food Group Plc, decision making by managers and entrepreneur effects
employees work life balance, health, learning and interaction with target audience. For example,
decision of managers of Hilton Food Group Plc for one on one meetings or interactions with
employees impacted positively on their motivation as it encouraged positive communication. At
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same time, decision making of the company impacts on customers from having wider choices for
where to shop and hence forth (Comunian and England, 2020). Decision making of Hilton Food
Group Plc to adopt interactive marketing impacts on the loyalty of customers for the existing
business. With good marketing practices, customers are influenced for trying new products or
meeting stores on continuous basis.
CONCLUSION
From the information, it has been concluded that understanding business environment makes
management sensitive towards changing expectations of consumer groups addition to help the
firm in enhancing volume of sales. Industrial structure explains composition of economic activity
of a nation and production of materials provisions. Economic, social, technological, legal,
political and environmental are factors that influence business structure. Business issues facing a
company are uncertainty about future, meeting customer needs and lead generation.
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REFERENCES
Books and Journals:
Adams, C. A. and Abhayawansa, S., 2022. Connecting the COVID-19 pandemic, environmental,
social and governance (ESG) investing and calls for ‘harmonisation’of sustainability
reporting. Critical Perspectives on Accounting. 82. p.102309.
Bagwell, S., 2018. From mixed embeddedness to transnational mixed embeddedness: an
exploration of Vietnamese businesses in London. International Journal of
Entrepreneurial Behavior & Research.
Comunian, R. and England, L., 2020. Creative and cultural work without filters: Covid-19 and
exposed precarity in the creative economy. Cultural Trends. 29(2). pp.112-128.
Idoko, O. and MacKay, R. B., 2021. The performativity of strategic foresight tools: Horizon
scanning as an activation device in strategy formation within a UK financial
institution. Technological Forecasting and Social Change. 162. p.120389.
Kalogeropoulos, A., Fletcher, R. and Nielsen, R. K., 2019. News brand attribution in distributed
environments: Do people know where they get their news?. New Media &
Society. 21(3). pp.583-601.
Kotler, P. and Et. Al., 2019. Marketing Management: 4th European Edition. Pearson UK.
Mauri, A. G. and Et. Al., 2018. Humanize your business. The role of personal reputation in the
sharing economy. International Journal of Hospitality Management. 73. pp.36-43.
Munaro, M. R., Tavares, S. F. and Bragança, L., 2020. Towards circular and more sustainable
buildings: A systematic literature review on the circular economy in the built
environment. Journal of Cleaner Production. 260. p.121134.
Online:
Hilton Food Group Plc. 2022. [Online]. Available through:
<https://www.hiltonfoodgroupplc.com/>
Shift in Demand Curve. 2021. [Online]. Available through:
<https://tyrocity.com/topic/movement-along-demand-curve/>
Shift in Supply Curve. 2021. [Online]. Available through: <https://www.thoughtco.com/shifting-
the-supply-curve-1147938
UK Standard Industrial Classification of Economic Activities 2007 (SIC 2007). 2022. [Online].
Available through: file:///C:/Users/user/Downloads/uksic2007webamend8531.pdf
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