Hilton Hotel Business Function Integration

This assignment examines the importance of integrating business functions at Hilton Hotels. It utilizes leadership theories, the STEEP model, stakeholder analysis, and SWOT analysis to identify needs, requirements, and the significance of function integration for Hilton's success. The goal is to understand how improving each business function contributes to overall performance enhancement.

Integration of Business
Functions

TABLE OF CONTENTS
introduction......................................................................................................................................1
Discussion on leadership, time frame and changes and their impacts on hilton.............................1
Application of concepts...................................................................................................................2
PESTLE analysis.........................................................................................................................6
Discussion on the system, organization and structure.................................................................6
Discussion re role of business functions of Hilton hotel.............................................................7
conclusion........................................................................................................................................9
references.......................................................................................................................................11

TABLE OF FIGURES
Figure 1: Stakeholder analysis.........................................................................................................4
LIST OF TABLES
Table 1: Financial ratio analysis for Hilton hotel............................................................................8
1 | P a g e

INTRODUCTION
Integration of business functions are used to improve overall performance and resolving
different problems of an organization. In which integration of business functions help in
reducing ineffective communication and supplier costs. In addition, cross training management
and employees is also one of the major advantage of the business integration (Malhotra and
Temponi, 2010). The current essay is based on integration and combination of the different
functions of the business. Regarding this, essay has been chosen Hilton hotel and will focus on
different functions of the organization. Including this, it will discuss number of business
functions such as leadership, management, time and change management, etc. Along with this, it
will also discuss number of theories and models which can help in understanding the business
functions. Further, it will discuss the analysis of leadership, stakeholders and organizational
culture of the company.
DISCUSSION ON LEADERSHIP, TIME FRAME AND CHANGES AND
THEIR IMPACTS ON HILTON
Leadership is one of the important aspect which may affect the business functions in
positive as well as negative aspect. There are number of leadership styles which can be used by
Hilton hotel for improving the performance. These include autocratic, democratic and free-rain
leadership style. As per the autocratic leadership style all decisions are taken by leader without
any interaction with employees of the company. In this leadership leader focuses on profitability
of the organization rather than well fairness of employees (Lusch and Vargo, 2014). Therefore,
using this style leader can improve the performance of every business function but it can reduce
the long term performance of the Hilton hotel. It is not appropriate in case of integration of the
business function because in this case it can reduce the motivation level of employees of the
Hilton.
On the other hand, in democratic leadership style leader of Hilton hotel focuses on the
satisfaction of needs and requirements of employees of Hilton hotel instead of the profitability of
the firm (Jung and Joo, 2011). Participation of the employees in decisions making process helps
in raising the overall work performance and maintaining effective work culture at workplace.
Similarly, free rain leadership style will also help in implementing integration of the business
functions because it this leadership style leader does not make any interference in functions of
1 | P a g e

organization. They make necessary arrangement for managing all tasks and activities in effective
manner (Selznick, 2011).
Overall, leadership plays very important role in integration of the business function
because it may influence the overall performance of the employees and Hilton hotel in positive
as well as negative manner. Business integration provides necessary solution for different
problems associated with telecom, information technology, banking, finance, insurance and
modern trade, etc. For example, Hilton hotel uses the business integration for managing financial
functions and regarding this, organization has used lots of latest technologies and software which
will help in raising the performance of the company (Narayanan, Jayaraman and Swaminathan,
2011). This integration have helped in resolving financial problems and completing all financial
functions in less time. Integration of information technologies in different functions of the
company reducers the time for each and every function. But on the other hand, changes in
timeframe leads increment in requirement of the new technologies. Because technologies are
changing year by year which may increase the financial requirements of the company. Therefore,
timeframe augments the needs and requirements of funds which may negatively affect the
financial performance of the organization (Flynn, Huo and Zhao, 2010).
Integration of the business functions leads lots of changes with respect to the labours,
resources, technologies and other activities of Hilton hotel. These changes may influence the
overall performance of the organization. For example, due to business integration employees of
Hilton hotel needs to work with the new technologies which can decline the overall performance
because they don’t have appropriate knowledge about the new technologies. Due to this reason
organization needs to make necessary arrangement about the training and development session
which may reduce time and increase cost. Along with this, integration of the business function
can increase the resistance of employees towards the organizational changes that may decrease
the productivity of the Hilton hotel in negative manner (Hilton Hotel avoided black staff, 2010).
Hilton hotel needs to invest huge amount of money in new technology. It affects the financial
performance of the company in negative manner because of the high cost of technologies
(Weske, 2012).
APPLICATION OF CONCEPTS
Discussion on leadership Contingency leadership theory: Contingency leadership can be best theory which can
2 | P a g e

contribute effectively to lead the staff members in Hilton. In this process, leaders work as
per current situation in the organisation. This approach helps the managers to take critical
decisions in the adverse conditions in the hotel. It provides huge reliability to guide the
team members of organisation which support to achieve effective goals and objective in
an appropriate manner.
 Behavioural leadership theory: This concept was discovered by Kurt lewin.
Furthermore, it emphasizes how leaders behave in the Hilton. It aids the corporation to
manage its work at the workplace. Generally managers or leaders shows three type of
behaviours like autocratic, democratic and laissez-faire in the organisation. In the
democratic leadership, managers takes any types of decision by including all staff
members in the Hilton. In addition to this, in the autocratic leadership, managers do not
include any type of employees to consider any kind of decisions. Furthermore, in the
Laissez-faire style, leaders of hotel allow the employees to make strategies and decision
on the basis their skills (Turner, 2014). Generally, management of Hilton consider
autocratic and democratic leadership styles to manage the various function at the
workplace.
STEEP model
STEEP is used to analyse external which contribute effectively for hotel to take develop various
types strategies. Some of them are described below in the points. Social: this factor support the Hilton to take establish its business in better way. For
example, lifestyle, education, trend needs and requirements of people helps to manage its
business operations. Technological: Technological aspect aids the management of Hotel to handle its internal
operations. For example, communication facilities and efficiency of service providing
aids to manage increase its efficiency and performance in the market. Economic: Current economic condition of United Kingdom is effective in the market.
For example, GDP, GNP and exchange rate contribute effectively to expand its business
(Steep analysis. 2015). Environmental: Hilton does not perform any activity which affect the health of
environment. For example, management of hotel conduct proper corporate social
responsibility activities for welfare of their consumers and people in the UK.
3 | P a g e

 Political: Political factor support the organisation to set its business in the market. For
example, taxes and tariffs are not higher as comparison of other countries which aid to
reduce its expenses (Kerzner, 2013).
Stakeholder’s analysis
Figure 1: Stakeholder analysis
(Source: Easterby-Smith, Thorpe and Jackson, 2012) Low power and interest: General people, employees are come under this category which
aid to develop effective decision in the Hilton. Low power and high interest: Competitors and consumers are categorised in section
which help the corporation to mange its external operation in the market. High power and low interest: Government and regulatory bodies keep satisfied category
which help to consider proper to design better strategies to manage its activities in the
hospitality sector.
 High power and interest: Investors and top management manage closely section which
aid to make better decision for better profit and market share of Hilton in the market
(Easterby-Smith, Thorpe and Jackson, 2012).
Organizational culture
There are many types of organisational culture followed like adhocracy, pragmatic and
academy to manage various type of activities of hotel. As per suitability, mangers of
4 | P a g e

corporation consider pragmatic culture at the workplace. The main motive of this culture is to
provide effective consumer satisfaction. In addition to this, it can help the corporation to goals
and objectives in the hospitality sector. Furthermore. This culture contribute effectively to
develop effective strategies which aid in fulfilling the needs and requirement of consumers
(Burke, 2013).
SWOT analysis for Hilton
Strength:
 They conduct market research with the help of which they get to know the areas in which
they lack and accordingly they make improvement so as to over come the issues.
 They have high brand recognition (Aaker and Joachimsthaler, 2012)
 They have their operations around 78 countries and have 540 hotels. Focus mainly on customer's retention. They aim at providing their customers with healthy
environment so that they will be able to work effectively.
Weakness:
 One of the main weakness which this firm face is low market share. The changes in government policies highly effects the business operations of the
organization. Different countries have diverse policies and they make changes frequently
so it negatively affects the business operations.
Opportunities:
 There are many markets in which Hilton has still not covered.
 Innovations which takes place in customers service is very helpful for the firm.
 Updated and adopting new technology is very helpful in providing better and high quality
services to customers (Raelin, 2011). Unique marketing strategies which help to promote the services provided by the firm.
Threats:
 There are many organizations which provide similar services and in order to attract
customers they make use of different strategies because of which Hilton has to face
issues. The market entry in this sector is very low. On yearly basis there are many new
organization which enter into this sector and it creates threats to the Hilton.
Reflective: From this I got to know that there are many markets in which firm can expand their
5 | P a g e

business. Further, they can make use of market research so as to know the customers’ needs and
requirement.
PESTLE analysis
Following are the PESTLE analysis done for Hilton hotel:
 Political factor: There are different policies which are followed by the government and it
becomes difficult for the firm to make changes in their business operation (Ward, 2011).
It includes Fiscal and monitory policy because if which price takes fluctuations.
 Economic factor: It includes inflation rate, changing currency rates, etc. Organization do
not have any control over such factors. Firm can just take proper steps to reduce the
efforts.
 Social factors: The taste and preference of customers changes frequently and it is
important that organization understand them time. Only then they will be able to attract
services users. In this context, they should conduct research and surveys frequently.
 Technological factor: Changes in technology which firm may be used may have out
dated. New and updated technology should be used so that they will be able to provide
better services to their customers.
 Legal: There are different set of rules and regulations which are followed by different
countries and it is important that these laws should be followed (Freeman, 2010). As it
helps to develop positive perception among customers mind. Environmental factors: When services are provided to the customers, then it should have
high quality, proper climate, etc. so that they customers can be satisfied. This also
includes providing service users with a healthy environment in which they can enjoy the
services provided by the firm.
Reflective: I got to know that firm do not have any control over external factors. However, they
can only take step to reduce the effects of these factors.
Discussion on the system, organization and structure
 System: Hilton make use of financial system in which they have a proper record in of all
the customers who visit the firm to make use of the services which are provided by the
firm.
 Organization: Cited firm that is Hilton hotel is one of the fasted growing hotel. Further,
6 | P a g e

they make use of different strategies so as to attract customers (Aaker and Joachimsthaler,
2012). Further, they also monitor their employees to they get to know the areas in which
they need improvement. Accordingly, they provide them with training so that they could
over the issue.
 Structure: There are different set of organizational structure which can be followed by
the organization (Raelin, 2011). In accordance with the case. Hilton hotel make use of
hierarchical structure, in this structure there are different departments and each of the
department is controlled by department head. Further, each of the department head is
controlled by top management.
Discussion re role of business functions of Hilton hotel
Business functions can be defined a number of activities of an organization which play
important role in attaining a common goal and objectives of Hilton hotel.
Operation management is one of the important functions to manage production of the
company. It plays very important role in managing organization’s layout, product and process
design, production planning and control, etc. Along with this, operation management function is
also important for managing existing inventory and capacity of the organization. Hilton hotel is a
service based industry so, it needs to focus on production and operation management at the time
of managing available rooms, food products and other services to every customer. Along with
this, business functions are important for improving quality by reducing wastage and defects in
final products and services. Therefore, operation management function plays very important role
in attaining aim and objectives of the company in effective manner (Schein, 2010).
R&D is also one of the major aspect to understand the needs and requirements of the
customers and providing appropriate services to satisfy their expectations. Market research will
help in determining the current market trends which play very significant role in developing new
services for every customer. But on the other hand, research and development leads innovation
which may raise the total cost of the organization. Increment in cost and expenses will raise the
overall financial performance of the Hilton hotel.
As per the current business position, Hilton hotel wants to expand its business operations
at different locations (Weske, 2012). Regarding this, company needs to invest specific amount of
money in land, technologies and business and other assets of the firm. This investment play very
important role in raising the business opportunities at national and international level. Along with
7 | P a g e

this, it also help in increasing the return on the investing amount. For choosing the best
investment option Hilton hotel uses the discounted cash flow methods such as net present value
method. It helps in improving the overall monetary performance of the firm.
Financial management is very important function for Hilton hotel because it plays
important role in available and required finance of the organization. It helps in determining the
future needs of the finance (Farndale, Scullion and Sparrow, 2010). Further, it helps in
identifying various sources by which Hilton hotel can raise this existing capital with low cost.
Overall, appropriate management of finance helps in raising the overall profitability and
financial performance of the company by reducing the cost and wastage of the resources.
Financial position of Hilton hotel can be easily analysed by determining different types of rations
such as profitability, liquidity and efficiency rations. Financial ratio analysis of Hilton hotel is as
follows:
Table 1: Financial ratio analysis for Hilton hotel
Ratios Formula 2014 2015
Profitability ratios
Gross profit 6483 7207
Net profit 673 1404
Sales revenue 10502 11272
GP ratio Gross profit / net
sales * 100
61.7% 63.9%
NP ratio Net profit / net sales
* 100
6.4% 12.46%
Liquidity ratios
Current ratio Current assets /
current liabilities
1.11:1 1.05
Quick ratio Current assets –
(Closing stock +
prepaid expenses) /
current liabilities
.74 .69
Solvency ratio
Debt-equity ratio Debt / equity 2.43 1.72
Efficiency ratio
8 | P a g e

Asset turnover ratio Sales / total assets .40 .43
Inventory turnover
ratio
Sales / inventory 10.05 9.61
Return on equity 14.77% 26.15%
Profitability ratios of last two years have reflected that Hilton hotel is generating
appropriate amount of profitability for managing all expenses in effective manner. But net
profitability ratios are less as compare to the gross profitability ratios. It has reflected that
operating cost of the organization is high which can reduce the future profitability of the firm so,
Hilton needs to reduce the operating expenses of the firm. Similarly, calculation of the liquidity
ratios such as current ratio has reflected company has appropriate amount of cash for managing
the emergency requirements of the fund. Including this, efficiency ration is also suitable which
has shown that Hilton is using its available assets for generating appropriate amount of
profitability. Overall, ratio analysis has reflected that financial position of the organization is
effective for managing all other functions.
Marketing management function includes advertisement and promotion of the existing
products and services of the Hilton hotel. Major role of this functions is increasing awareness of
customers about the products and services of the Hilton hotel which attracts customers to buy
that particular products and services. It is also beneficial for improving the brand and corporate
image of the company in front of the customers. Attaining competitive advantages is also one of
the major benefit of the marketing management function (Cheng, Chudzik and Yang, 2010).
Social media marketing, internet and digital marketing channels are used by Hilton hotel for
increasing advertisement of the organization. These are cost effective tool for improving
awareness of hospitality services in customer’s mind.
Human resource management functions plays important role in recruiting appropriate
personnel for performing different operations of the organization. Along with this, it plays
important role in managing communication, motivation, performance appraisal, changes and
conflicts at workplace. Therefore, it is one of the important functions to improve the performance
of every employee of the Hilton hotel. Training and development, recruitment and selection of
employees are the major functions of this department of Hilton hotel. These plays important role
in improving the employee performance of the company which leads improvement in overall
9 | P a g e

performance of organization. But on the other hand, these functions can increase the total cost of
the organization which may affect the overall profitability of the firm in negative manner.
CONCLUSION
The current research project has concluded that integration of business functions leads
improvement in the overall performance of the Hilton hotel. It has reflected that different
leadership styles, timeframe and changes have positive as well as negative impacts on the overall
performance of the firm. So, by integrating more than two functions, company can managing all
negative impacts in effective manner. Along with this, report has also found that there are
number of models, such as leadership theories, STEEP model, stakeholder analysis and SWOT
analysis which help in understanding the needs, requirements and importance of integration of
business function for Hilton hotel. Improving overall performance in each and every aspect is
one of the major role in every function of Hilton hotel.
10 | P a g e

REFERENCES
Books and journals
Cheng, K., Chudzik, M.P. and Yang, H.S., 2010. Integration scheme for multiple metal gate work
function structures. International Business Machines Corporation.
Farndale, E., Scullion, H. and Sparrow, P., 2010. The role of the corporate HR function in global
talent management. Journal of World Business. 45(2). pp.161-168.
Flynn, B.B., Huo, B. and Zhao, X., 2010. The impact of supply chain integration on
performance: A contingency and configuration approach. Journal of operations
management. 28(1). pp.58-71.
Jung, Y. and Joo, M., 2011. Building information modelling (BIM) framework for practical
implementation. Automation in Construction. 20(2). pp.126-133.
Lusch, R.F. and Vargo, S.L., 2014. The service-dominant logic of marketing: Dialog, debate, and
directions. Routledge.
Malhotra, R. and Temponi, C., 2010. Critical decisions for ERP integration: Small business
issues. International Journal of Information Management. 30(1). pp.28-37.
Narayanan, S., Jayaraman, V and Swaminathan, J.M., 2011. The antecedents of process
integration in business process outsourcing and its effect on firm performance. Journal of
Operations Management. 29(1). pp.3-16.
Schein, E.H., 2010. Organizational culture and leadership. John Wiley & Sons.
Selznick, P., 2011. Leadership in administration: A sociological interpretation. Quid Pro Books.
Weske, M., 2012. Business process management: concepts, languages, architectures. Springer
Science & Business Media.
Weske, M., 2012. Business process management: concepts, languages, architectures. Springer
Science & Business Media.
Zikmund, W., Babin, B., Carr, J. and Griffin, M., 2012. Business research methods. Cengage
Learning.
Online
11 | P a g e

Hilton Hotel avoided black staff. 2010. [Online]. Available through:
<http://www.telegraph.co.uk/news/uknews/law-and-order/8118382/Hilton-hotel-avoided-
employing-black-staff-where-they-would-be-visible-to-public.html>. [Accessed on: 6th
June, 2016].
Steep analysis. 2015. [Online]. Available through:<http://pestleanalysis.com/what-is-steep-
analysis/>. [Accessed on: 6th June, 2016].
12 | P a g e