Hilton Hotel and Its Environment: Impact on External Factors

Introduction
The main objective of the management generally
is to maximize the output with the minimum
resources and efforts. The SWOT is a framework
generally for identifying as well as analysing the
company strength, weaknesses opportunities and
the threats. The PESTLE analysis is an studies of
the key external factors such as Political,
economical, sociological, technological, legal and
the environment that generally influence a
business. Hilton hotel is a global brand of the full
services hotels, located in McLean, Virginia,
United States. The hotels Is one of the largest as
well as leading brands in tourism industry.
HILTON HOTEL AND ITS ENVIRONMENT
External Environment
Political factors-
This factor is mainly linked with the politics of a particular place. So, for the growth of each and
every business political stability is becomes a key factor as it mostly helps in smooth functioning
of an organization.
Economic factors- This factor is associated with the economic condition of the country. The
economic factor is very crucial for the hotel industry as it is not under the control of the industry
but can directly impact the operations of the hotel.
Social factors-
Social factors generally consist of all the things like latest trends, lifestyles, cultures, fashions
and many more. On being a well recognized brand across the globe the revenue of the brand can
be affected by various factors like the consumer demographics, growth rate, gender ratio,
cultures etc.
Technological factors-
These factors are generally engaged with the technologies that are mainly evolving day to day as
well as making the lives easier. So with the help of new technologies an organization can also
reduce their costing as well as attract more customers towards itself.
Legal factors-
Legal factors are generally associated with laws as well as rules of a specific country under
which the organization operates. These are normally linked with political factor as well as shape
the laws that is related to employees and also workforce that must be followed by hotels.
Environmental factors-
These are mainly associated with environmental practices generally that are followed by the
individual and undertaken by various businesses.
How the company impact its context External
Environment
Political factors-
Hilton as it generally operates on a large scale, so it is exposed to very
risk. As in recent times the visitors or individuals to UK had been reduced
because it generally has left behinds European Union as well as it give
negative impact on the organization like the revenue of the hotel also
declined
Economic factors-
Hilton by offering a luxurious experience, should focus on the country
areas where the income of the people is stable and other factors cannot
affect its revenue generation.
Social factors-
Hilton by offering luxurious services is targeting high class customers. So
they have to make some services and room that are for middle class
people.
Technological factors-
Hilton is generally engaged in offering the luxurious experience, so they
should also focus on updating its technologies. So by adopting the latest
technology the organization can cover whole market easily.
Legal factors-
Hilton should also consider these factor as well as the laws that are
normally made by the government that is related to the safety issues due to
Covid-19. So the company follow such rules and regulation so it give
positive impact on organization.
Environmental factors-
Hilton also focus on environment factors because it generally gives impact
on the performance and success of the organization. Hilton is also
indulging itself in various activities that protect environment so it gives a
good impact on the business. But also the climate change is generally big
threat for the hotel such as Hilton hotel.
Internal Factors
Strengths-
The brand comprises the 13 other businesses under itself
including the most famous businesses such as Hilton resorts
and hotels, Embassy Suites, Waldorf Astoria, Conrad and
many more. The brand even serves in 100 plus countries and
also has served over 140 million guests. So the business has
good customer based.
Weaknesses-
The Hilton is a large organization, so they have lack of
flexibility.
It mostly dependence on local market of US is the one major
weakness of organization as 81% of revenue generation is
done from the US market and only 7% of the revenue is
normally generated from the Asia market.
Opportunities-
The brand has a large scope of further expansion in the
international market. So, by focusing more on the Research
and development Hilton can enhance their services as well as
operates on a much bigger level in the future.
Threats
As the organization operates international there is some threat
of the political instability as well as terrorism that generally
affect the smooth functioning of the business organization.
References
Perera, R., 2017. The PESTLE analysis. Nerdynaut.
Alanzi, S., 2018. PESTLE Analysis. Project Management.