Hospitality Business Strategy: Analysis of Macro Environment and Competitive Forces for Hilton Hotels and Resorts

This report analyzes the macro environment and competitive forces for Hilton Hotels and Resorts using tools like PESTLE, SWOT, McKinsey's 7s model, and Porter's five forces. It also includes evaluation of strategic directions and justification of growth platform and strategy using relevant frameworks. The report provides a strategic management plan with tangible and tactical strategic priorities and critiques strategic directions, objectives, and tactical actions for a hospitality organization.

HOSPITALITY BUSINESS
STRATEGY

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
PART 1............................................................................................................................................3
Influence of macro environment factors over organization ........................................................3
Analysis of macro environment for strategic management decisions ........................................5
Stakeholder analysis.....................................................................................................................5
Analysis of internal environment capabilities utilizing McKinsey’s 7s model...........................5
Critical evaluation........................................................................................................................7
Competitive forces in the context of chosen organization...........................................................7
Strategy to enhance competitive edge and market position.........................................................8
PART B............................................................................................................................................8
Evaluation of the strategic directions...........................................................................................8
Justification of growth platform and strategy by relevant framework.........................................9
Applying range of theories, models and concepts and devise strategic plan for Hilton Hotels
and Resorts.................................................................................................................................10
Strategic management plan having tangible and tactical strategic priorities ............................10
Critique strategic directions, objectives and tactical actions for a hospitality organization......11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business strategy is simply refers to the process which helps organizations to gain
maximum profit and get the easy way to accomplish such goals. There are having a bulk options
for the competitive actions and as well as the moves which are used by the businesses which
helps to gain more attraction from the customers and strengthening the performances as well
(Kano, Tsang and Yeung, 2020). In the current report the chosen hospitality industry is Hilton
Hotels and Resorts, it is a luxurious hotel and multinational hotel industry where it has very
expensive accommodations. The current report will explain the internal and external factors of
the hotel by using the tools which include the PESTLE and SWOT analysis. Along with the use
of McKinsey 7s Model it will also describe some capabilities. Also, the report will include the
porter's five forces model for the competitive advantage of the company. Lastly, it will include
the aspects which are related to such strategic plan, with the use of the Ansoff's growth matrix
and several models and theories which explains the strategic plan of the business.
MAIN BODY
PART 1
Influence of macro environment factors over organization
Analysis of the macro factors which is influencing organization with the use of the PESTLE.
PESTLE analysis
Political factor- hospitality is giving a major support to the government in the terms of
promoting such hospitality industry in which it helps to increase the growth of the country as
well. It may include the taxations, policies and the business regulations as well. This may creates
a positive impact on the Hilton Hotels and Resorts. It is basically shows up with the many
governments needs and wants which are basically influencing such needs.
Economic factor- it shows there is a direct term which is influencing such terms for the
industry to have an international as well as domestic market and that is making the hotel
expensive. Sometimes it may have a financial crisis which are negatively impacting over the
hospitality industry as after Covid-19 many things has changed the current financial term are also
changed as the hospitality industry are having in more loss (Valeri and Baggio, 2020).
Social factor- it shows that there are high demand for such changes related to the tastes
and preferences of them with changing in the current trend as well. In Hilton Hotels and Resorts
are creating an impact over the individual perception as well as the negative impact due to the

higher perspective as well. It involves the highest ratio for the employment which is creating the
positive impact also in the country.
Technological factor- this factor is significantly shown the correct option in which it
helps to know about the benefit of the organization through the online booking and the digital
platform which are having a proper customer preferences as well. It shows that the information
technologies are creating a way to have influences in the favour of the customer and shows the
luxurious experiences as well and such security and data management may create a challenge
sometimes which shows that the businesses are dealing with it.
Legal factor- this factor is playing the major role which are affecting the growth of the
places and this creates the benefits for the companies as well. It is basically the part of which it
has a positive impact over the companies as well.
Environmental factor- business requires many demands for the proper light and
sometimes it needs to have a proper resources in which it puts the higher impact over the
organization as well. It basically shows that the hotels are in a pressure with reducing the carbon
footprints which shows the better form of the influences as well.
SWOT analysis
Strengths- there are the brand recognition which are positively influencing the factor for
the Hilton Hotels and Resorts which are introducing the positive aspect for the customers as well
Weaknesses- there are many unfavourable policies and such taxations which is the major
weakness for the Hilton Hotels and Resorts, it shows the seasonably changes are often makes the
industry very vulnerable (Cescon, Costantini and Grassetti, 2019).
Opportunity- it specifically shows that the relationship managers are playing the
important role in the having a better development in which it shows the relationship with the
customers as well as the organizations which has a major chance in which it needs to have a
more collaborations with the fashion bloggers which increases the demand of the Hotel.
Threat- in today's market era there are too much competition which are basically creating
a impact form increasing the competition in which it is significantly rising up the threat for the
organization as well. It shows that the change is flexible as it is also moving forwards towards
their business deal in different manner as well.

Analysis of macro environment for strategic management decisions
The analysis is all depends upon the macro environment of organization in which it helps
organization to adapt many changes through the various strategies. From the various factors that
is shown into the measures which are having an impact on the business and its functioning as
well. These macro factors are influencing the concerns for aligning in the innovative manner
which are having a more consideration upon the various things in which it helps to take the better
decisions over the factors. Further, it shows that it is significantly negatively impacting on the
several management operations with taking such decisions in favour of the Hilton Hotels and
Resorts
Stakeholder analysis
It is basically shows the association with the business to gain the better influences which
are having on such activities in the organization as well. Business entities are need to ask about
the decision-making process in which it will take such decisions for the proper functions. In the
context of the Hilton Hotel and Resorts the stakeholders are customers, management, employees
and such trade unions. Stakeholder analysis is used to do the proper analysis upon the business
which are both internal and external stakeholder analysis (Ulubeyli and Kazanci, 2018). The
internal stakeholders are the one who have a major interest in the company and the external
stakeholder is the one who is not a specific part of the company but have all rights to take
decisions and have a specific power as well in Hilton.
Analysis of internal environment capabilities utilizing McKinsey’s 7s model
There is a major importance for the Hilton Hotels and Resorts to analysis as well as
identifies the external and internal capabilities which helps to know about the environment of
such venture which will easily helps to take such right decisions as well. It shows that for
conducting such activities or practices it will basically need to have a specific strategic
framework execution. In the context of the Hilton Hotels and Resorts the McKinsey's Model has
applied to highlight about such capabilities as well as the external environment.
Strategy-
It is showing that the Hilton Hotels and Resorts are the one who have the best strategies
and such plans in which it will easily utilize to achieve its objectives and such goals as well as to
achieve their specific goals. For having a specific resources and such capabilities the Hotel will

always utilize their own strategies for different kind of reasons as well. So it always allows the
hotels to maintain as well as build up the venture reputation in market.
Structure-
This internal capability is used in the Hilton Hotels and Resorts is the current one, which
shows that it will be able to set the proper structure in which used in the structure as well as
creating the advance digital technologies which are used in such assets and the resources as well.
It shows that it is also utilizing the technologies in which it helps to get that according to
important part as well.
System-
Nowadays, it shows that it is essential to monitor the things in the regular basis which it
helps to know about the activities which is conducted by the employees (Winahyu and Marlena,
2021). Hilton Hotels and Resorts always monitors the performance and manages the activities in
which it shows that activities which are able to complete in this sector as well.
Styles-
In Hilton Hotels and Resorts there is showing the better leadership styles in which is
utilizes by the leaders who help to boost up the morale of each employee as well as contribute in
increases the performance of it. It may put the positive impact on the success of the organization
in which it can have an unpredictable growth as well.
Staff-
With the talented and skilled employees company has growing its productivity in which it
shows the competition in the market. It is basically enables the hotel performances as well as to
gain the productivity in the business to show the customer satisfaction level as well.
Skills-
In the internal environment the leaders as well as the management creates the proper
atmosphere where employees need to take the steps which will easily helps to improve their
skills and the abilities as before.
Shared value-
In this part the organization needs to develop the understanding between the employees
in such form of the mission and vision of the individual which may be the new or existing. It can
helps generate the productivity of the company as well as their performance.

Critical evaluation
It is critically evaluated that the Hilton Hotels and Resorts are the one who have a better
strengths and capabilities in which it always helps to utilize for gaining such advantages. Along
with the strengths everything has weaknesses likewise the organization also have a weakness
which leads to have in effective manner to the proper legal structure as well as having a proper
growth as well.
Competitive forces in the context of chosen organization
For knowing about the proper competition, porter's five forces will helps to know the
competitive advantage in detail.
Threat of new entrance-
The threat of the new entrance which are in the term of the Hilton Hotels and Resorts are
having a high threat from the new entrance in which it is having from the same as the luxurious
hotels as well as having a better pool these can be the major threat towards this Hotel
(Chmielewska and et.al., 2022). The new entrants who are especially opening their new business
as well as to build up the proper infrastructure which will help to gain the proper advantage as
well.
Threat of substitute-
In the case of the higher threat there will be the extent in which the people will start their
work form home which creates the major loss upon several industries but has created a severe
loss to the 5 star hotels as well. Customers can easily form their decisions in which having a
proper price factor as well as the better facilities. Organizations always prefer the usual
customers in which it will help to gain the advantage properly.
Bargaining power of supplier-
In this particular phase there has lower term of involvement of the suppliers of such
organizations in which it is involved as the maintenance, infrastructure and such raw materials.
Hilton Hotels and Resorts has a better relations with their suppliers in which it properly helps
them to get the better supply as well. By the great brand value, there are multiple options which
helps to minimize such bargaining power of suppliers in of this hotel.
Bargaining power of customer-
It is specifically shows that the bargaining power of customer are based on the particular
customer base of the Hilton Hotels and Resorts in which it will clearly know the proper power of

the customers as well. The sales of the Hilton Hotels and Resorts has a power of the sales ratio in
which it will clearly help to know about switching the quality as well as having a proper chance
of the customer view on the basis of visiting the hotel in the term of the better chance of the
products.
Strategy to enhance competitive edge and market position
It is specially mentions that the organization may easily adopt the changes which are
dynamic and the seasonal changes in which it helps to gain a proper competitive advantage as
well. To mapping such customer journey in which it helps to know about the marketing strategy
where it shows the customer preferences which are adapting by the organization as well.
PART B
Evaluation of the strategic directions
Porter's generic strategies
Porter has identified the 4 strategies in which it can specifically use to classify the
behaviour of the consumer as well as the management.
Cost leadership strategy-
It is a strategy where the organization is basically focused on the reducing costs which
are in the services and products to their customer and ensure about to gain more profit which are
handling by the shareholders and that will be the part of their organization strategy (Ong, Ismail
and Yeap, 2018). There are some specific strategy which helps to reduce the current cost of the
suppliers, innovations and such technologies which also reduces the proper process as well as the
process of speed and efficiencies which makes it healthier.
Differentiation strategy
It is a strategy where the organization mainly focus to get differentiating the products and
their services from their rivalries. It is basically shows the current service portfolio as well as the
current product which shows the proper presentation of such products which helps to get the
different type of strategies as well. It also has a proper effort on such innovations with the
availability of the resources in which it helps to get the proper feedback from the customers
which will help in the differentiation strategy as well.
Cost Focus Strategy

There are two aspects which are mentions in this term in which it helps to know about the
focus and cost. They both the term is used in a very specific manner in which it will rather help
in the proper focus which are basically confirms the proper product discrimination as well.
Differentiation focus strategy-
It is also the evolution of the focus and the differentiation in which it will basically help
to know about the market in which it is operating towards the working conditions and have the
proper differentiation tactics itself (Budzik and Budzik, 2019). It is mainly shows the cross sell
strategies which are having the markets in between the seller and the customer as well.
Justification of growth platform and strategy by relevant framework
The main motive of this chosen matrix is to know about the position of the organization
in the current market in which it will basically use in the Hilton Hotels and Resorts which is
Ansoff's growth matrix.
Market penetration-
Market penetration can be positively used by the organization growth with the expansion
which are necessary to the existing services which are having in the existing market as well in
which it will get easier to have a higher amount in their profit. In this stage there is counted as
the numerous growth plan in which it will help to gain the productivity to enhance the formation
of the hotels.
Product development-
It is basically used with the further plan in which it could basically align the proper
services in the Hilton Hotels and Resorts which will help to expand the business and having a
proper growth. This strategy can easily use by the Hotel management in which this will help to
get the facility to serve the clients and having a proper facility of spa.
Market development
This is one of the better development from all these process in which it will basically help
to accomplish such competitive places. It can easily enhance the market sizes for introducing
such services into the new market.
Diversification-
It is one of the riskiest among all the above strategies for such implementation for
accomplishes all the market strategies in which these all are based on making such new strategies
as well.

Applying range of theories, models and concepts and devise strategic plan for Hilton Hotels and
Resorts
There are five strategic planning process which are in detailed below: Determining strategic position- to know about the position in what state the company is
standing and how far it can go to achieve its goals and targets. This involves the
strategies in which it will make the clear picture for the goal orientation. Prioritize the objectives- this involves to identifying the current position in which it will
help to determine the correct strategic plan and achieve the proper goal as well. Develop a plan- for reaching successfully it will need a developing plan from which it
will help to achieve the objectives and provide the proper clarity upon the responsibilities
as well (Usop, 2022). Execute and manage the plan- after making the plan there is the next which is
implementing that plan and having into the specific manner as well which will basically
in the form of the planning as well.
 Review and revise the plan- for reviewing and revising gives such capabilities in which it
will help to know about the specific plan which are used in this.
Strategic management plan having tangible and tactical strategic priorities
There are some ways in which it will consider their perspectives for the company analysis
between the strategy vs tactics
Sales recruitment- Strategy- in this the organization wants to develop the criteria for hiring the right people
(Tonkonog, Filatova and Konfino, 2018).
 Tactics- it will frequently note down the specific quality which is wanted by the company
as the best sales persons.
Technological infrastructure- Strategy- to build up the more technological innovation with the proper sales operations.
 Tactics- it can simply adopt the tactics which include the CRM practices.
Smarketing- Strategy- to improve the quality of sales and their marketing alignment as well.
 Tactics- it will clearly encourage the collaboration in between the different type of
departments (Khashayar and et.al., 2020).

Critique strategic directions, objectives and tactical actions for a hospitality organization
The organization is currently having a good position into the market, it only needs more
specific strategies and plans for having a proper growth and the opportunities to have a proper
aspect in this (Soltani, Mottaghi and Mohamadjani, 2020). It is also recommended that the Hilton
Hotels and Resorts can easily expand their hotel internationally in which this will help have a
more growth upon this. Because the global market has a very high demand in which it has a
proper value and terms.
CONCLUSION
From the above report, it has been concluded that the internal and external factors are
corporate by the use of the specific framework which are PESTLE and SWOT. Along with the
McKinsey's 7s also applied to briefly know about the Hilton Hotels and Resorts capabilities as
well. Further, porter's five forces is used for the competitive analysis in the aspect of the strategic
alignment as well. It also covered up the different aspect in which it showed in the strategic
management plan. It has been also set out the specific goals and objectives which helps to figure
out the objective of the company.

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