PESTEL Analysis of Hilton Food Group Plc

This report provides a detailed PESTEL analysis of Hilton Food Group Plc, including the political, economic, social, technological, environmental, and legal factors affecting the company.

PESTEL ANALYSIS

Table of Contents
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................5
Structure of the company:......................................................................................................5
A) Overview and history of company....................................................................................5
B) Organisational structure.....................................................................................................5
Directors on board..................................................................................................................5
Chairperson.............................................................................................................................7
TASK 2............................................................................................................................................8
PESTLE Evaluation................................................................................................................8
Importance of PESTLE evaluation.........................................................................................8
TASK 3............................................................................................................................................9
PESTLE factors affecting Hilton:..........................................................................................9
PESTLE ANALYSIS OF HILTON: ...................................................................................10
CONCLUSION..............................................................................................................................13
REFERENCE.................................................................................................................................14

INTRODUCTION
External environment of every business organisation consist of both threats and
opportunities that have to be analysed in detail in order to understand its long term impact on
business organisations. Present report is based on a UK based food group Plc that is a retail meet
packing company and is operating through different segment of business in UK, Ireland,
Holland, Sweden and Denmark. There has to be a critical evaluation for the purpose of
developing insights of such factors that are affecting the organisation (Bushey, 2019). In present
scenario there is selection of retail group industry where the brand considered for making
evaluation is PESTLE.
TASK 1
Structure of the company:
A) Overview and history of company
Hilton food group plc group is a retail group that was established in the year 19894 and is
operating a beef & meet Packaging on Huntingdon England. Since then it has grown rapidly and
has 6 factories across Europe and two joint ventures where the products are sold across
supermarkets in 14 European countries & Australia. There is a divisional composition that is a
framework that is followed according the executive and the goal of the division. The matrix is
focussing on arrangement of a structure that includes both division and functional structure
(Christodoulou and Cullinane, 2019). The functional composition of Hilton food group plc is
playing emphasis on the usefulness of departments according to the function that has to be
performed by each department. Apart from this other business units consist of the human
resource department, financial department, marketing department where there is specification of
the functions that are to be performed by these units. Further the divisional units and functional
units are coming together to perform the specific organisational functions and achievement of the
laid mission & vision of Hilton.
B) Organisational structure
The organisational structure of Hilton food group plc is hierarchy that is because of the
massive business size that comprises of different retail offerings (Gomes, Yasin and Simões,
2020). they are having six factories and are selling products across different supermarkets in

fourteen countries in Europe. They are positioned to be in the fore front of the retail group
industry.
Directors on board
Board composition, policies and structure at Hilton:
Number: the board believes that there has to be approximately 3 to 15 members in size of board.
Independence of directors: The board has to make determination of the independence of each
director.
Director qualification standards: The governance committee is basically responsible fort
reviewing of overall qualification of potential director candidates and recommendation to board
that are to be nominated for selection of the board (Lukovac, Tomić and Gladović, 2019). All
this is subjected to procedures and obligations that is governing the process of nomination of
directors of board.
The governance committee has to consider:
 Relevant experience, knowledge and skills according to the minimum requirement of
individual qualifications. All the other factors that are appropriate have to be considered so that they are
appropriate and it includes legal considerations, corporate backgrounds, accounting
backgrounds, executive compensation, that is part of the combined expertise of the
existing board.
Retirement of directors: No individual can be re elected or elected as a director once they
are reaching the age of 75 unless the governance committee waives the mandatory retirement age
of such director (Ofosu-Boateng and Jiping, 2020). If any director who is turning the age of 75
while serving as a director may continue to serve as director in the remainder of their age.
Term limits: The board does not believe in Hilton food group plc that there should be any
type of term limits. Term limits may result into loss of directors who are developed over a time
period. So there is increasing insight of operations & institutionalized knowledge are benefiting
both the board and the Hilton food group plc together.
DIRECTOR orientation & continuing of the education: management of Hilton food
group plc working together with the board will provide with the orientation process for the
purpose of coordinating with the director with the education programs, the orientation programs
in Hilton food group plc are designed in such a manner that there is proper and timely

coordination with the new directors for the company's business, challenges and strategies so that
new directors can be assisting in development and maintaining of skills with appropriate
performance responsibilities (Park, and Han,, 2016).
Presiding independent directors: the independent directors can be elected according the
the schedule of executive sessions and other board members.
Director resignations: the board has to be nominated by the persona and the service on
board that are designated according to stakeholder agreement. The board in Hilton food group
plc has to be according to the pre offered resignation. The committee can also make
recommendation to the board to make the decision according to consideration of factors and the
decisions.
Committee membership: Each committee members has to satisfy all the membership
requirements so that there can be proper coordination and a director can also serve more than one
committee (Policy, 2018).
Vacancies committee chairs: the giver nance committee is responsible for identification
of the board members for the purpose of filling of vacancies and making of any further
recommendation to broad. The board in Hilton food group plc taken into account of the views of
governance committee and the chairperson.
Robert Watson OBE is the chairperson of Hilton food group plc it is the executive
chairman. And the chief executive officer s Philip Heffer.
Philip joined in 1994 as the managing director and was appointed as the chief executive
officer in July 2018. he is responsible for all the hilton's business and since 1989 and 1990 Philip
was a sales director and the earlier production manager for romford wholesale meals limited that
is supplying a number of different retailers with meat products. Philip attended the Smithfield
college and became an associate member of institute in the year 1984.
Hilton's is one of the old business which was established in 1994. Robert Watson OBE he is the
Executive chairman and Philip Heffer is the Chief operating officer.
Executive Officer. Robert joined the company as the Chief Executive in year 2002 and
he successfully grown the company. So in few years he got the post for the Executive Chairman
in 1st of July 2018.

Chairperson
The boards gave been appointed by the Management at Hilton food group plc they are
further selecting and overseeing the members if senior management that is charged by board for
conducting the business of the company. The board is having the responsibility of risk oversight
that is supported by audit committee, compensation committee & nominating & corporate
governance committee. The audit committee is assisting the board in fulfilment of risks oversight
that is reviewing of company's accounting financial practises and reporting. It is further focussed
on integrity of the financial statements, surveillance of the financial administrative controls at
Hilton.
TASK 2
PESTLE Evaluation
Importance of PESTLE evaluation
PESTLE analysis is used as a tool for the purpose of making a analysis of the external
factors that can posses a impact on the decisions that are to be taken by the organisation in
coming time period. It includes the factors that are affecting a organisation in both direct and
indirect manner (Sabillon, 2020). There are certain aspect that are part of PESTLE analysis and
is used for the purpose of making a detailed evaluation of such elements:
Workforce planning: It is a business process in which there is alignment of people
strategies and business process. PESTLE Analysis can be used for identification of the disruptive
changes hat can posses a profound impact in the future employment scenario of business.
Organisations are facing changes related to increased skill gaps, creation of job roles, hob
reductions displacement that can be analysed by application of pestle analysis.
Marketing planning: PESTLE analysis assist a business in making a situational analysis
of the different phases of the marketing planning process. It assist business activities to
accomplish the laid specific objectives in the provided time frame.
Product development: By offering of timely insights PESTLE analysis helps in making
decisions to determine whether product or service is able to fulfil the needs according to
requirements of market.

Organisation changes: PESTLE analysis is a powerful tool that can lead to development
of a overview of understanding of the change context and the potential areas that has to be
focussed to make the changes successful.
People strategies, projects and reports: PESTLE analysis is used as a framework for
understand the external perspectives to ensure that basic factors are not overlooked and ignored
when there is alignment of strategies according to broader organisational framework. It leads to
timely evidence based decision making based on authentic& reliable research that has been
conducted through application of PESTLE analysis.
Importance of the global market: PESTLE analysis is a technique that can be used for
the purpose of making a creation of the external environment (Smith and Mc Sweeney, 2017).
There are many competitor organisation that are part of the external environment for a business it
is extremely valuable for the organisation to determine in the process of selection of right
strategy by the organisation.
Economic conditions: The external environment has to adopt to the fast changes that are
taking place in the external market. For this purpose there is a need to make a in depth analysis
of the factors that are leading to both positive or negative impact on the business. It consist of the
marketing trends, religious behaviour, population growth that are posing a impact on the overall
consumer attitudes. For the purpose of developing a detail overview of these economic factors it
becomes necessary to determine such specific factors and it can be determined by application of
PESTLE analysis. Hilton food plc is contributing 1650 million to the GBP in year 2018 and
there has been contribution of 1815 million in the year 2019 (HILTON FOOD GROUP
PLC (HFG), 2020).
Implementation of PESTEL analysis leads towards finding of the opportunities in the
market so that there can be expansion of business by availing of such opportunities at same time
it will assist in revealing of the factors that can undermine the business in a negative manner.
Hence, it can be summarized from above mentioned points that PESTLE analysis is a
very crucial tool that assist business organisations in evaluating of the macro environment so that
there can be correct formation of strategies and there is no wastage pf the limited resources of the
organisation.

TASK 3
PESTLE factors affecting Hilton:
There are some PETSLE factors that are affecting a organisation and has to be considered
in order to make a detailed evaluation in context of a organisation:
Political: it consist of the degree to which government is intervening the economy. It
consist of the specific factors such as government policy, political stability or the instability that
is present on overseas market, tax policy, foreign trade, labour laws, trade restrictions. Political
factors posses a impact on the business in such a way that business have to respond to the present
and future political changes.
Economic factors: these factors consist of economic growth, exchange rates, inflation
are, personal disposable income of the target segment of customers. Such factors are further to be
broken in micro economic and macro economic factors. Macro economic factors are dealing with
the management of demand in a economy. Government are using taxation policy, government
expenditure and the major mechanisms are pat of micro economic factors that are part of the way
people are spending their incomes.
Social factors: These are the social cultural factors that consist of shared belief & attitude
of the population. Different types of social factors that affect Hilton food group plc includes
population growth, age, distribution, career attitudes, health consciousness. These factors are of
particular interest as they are directing affecting the marketers as it consist of changing customer
choices.
Technological factors: With the changing era of technology especially with digital age
there is a impact on business as organisations have to deal with the process of social media
platform, application development. Technological factors will affect Hilton food group plc by
analysing the changing preferences of customers.
Environmental factors: These factors are related to the sustainable company, carbon
footprints that are part of the external environment on which organisation is functioning.
Legal factors: legal factors includes the health & safety, equal opportunities, advertising
standards, consumer. Organisations have to focus on understand of the regulations and rules so
that there can be initiation market research. It assist that to have proper adherence to all the legal
rules and policies that have been developed by legal authorities of the country to which they
belong.

PESTLE ANALYSIS OF HILTON:
PETSEL analysis is a strategic tool that is used for the purpose of making a detailed
evaluation of the the external macro factors that will affect the functioning of Hilton food group
plc in long run. For this purpose of making a detailed overview of such factors as mentioned
below:'
Political factors: political stability and lodging sector. Hilton food group plc is affected
by the tariff rates and the duty rates that are changing constantly UK is a part of commercial
policies and is regulated by European commission. The department for international trade and
customs. There are some of the specific government regulations that are affecting the policy
formulation process of Hilton. Further Hilton food group plc has to follow the regulations
formed by the government that is part of the trade description act 1986 where there has to be
description of true and fair facilities and is not misleading in any way (Retail brands Laws UK,
2020 ). .
Economic factors: UK is the sixth largest economy of the world and is the British
economy has slowed since 2016 referendum on leading of European union. In the present
situation in year 2020 with the outbreak of corona virus there are update IMF forecasts according
to which the GDP growth has fallen down to 6.5 percent in the year 2020. it is expected to pick
up to 4 percent in the year 2021 as it is subjected to post pandemic global recovery. But for the
present retail group brands there is a situation of low expectation of growth as the personal
disposable income of people has also reduced to some extent.
Social factors: The changing nature of target segment of customers has resulted in
impact on the overall culture that is part of shared attitudes and beliefs of the population. With
the outbreak of coronavirus there has been a a reduction in the disposable income of people that
has resulted into a shift of the preferences of people as they are not willing to spend on luxuries
and just to fulfil the necessities. So, there is a higher competitive advantage for Hilton food plc
as they will be able to enhance their present revenues as people are focussing on their spending
on necessities.
Technological factors: Technological factors are the part of overall development of
technological infrastructure that is catering the industry and may posses a impact on the
performance of Hilton. With the COVID outbreak there has to be adoption of contactless
payment system that is very necessary for improving the speed of transactions and also focusing

on distancing. It has been a necessity in the wake of coronavirus pandemic. Hilton food group
plc is focussing on use of online techniques of food delivery so that there can be reduction in the
way customers have to visit the retail store and then make their purchases.
Environmental factors: Hilton food group plc as part of the retail group industry is
focussing on the practical dimension of greening Retail brand operations in the context of
corporate social responsibility. It is demonstrating the link between CSR and the human resource
management process. It is depending the understand of corporate environmentalism. This
programme has a approach of focussing on behavioural changes in the operations of Retail brand
such as there is less use of plastic and more on alternative methods of packaging for customers.
Legal factors: There are certain legal laws that are affecting the functioning of
organisations. Such as employment rights act 1996 all the regulations of this act have to be
adhered by Hilton food group plc in the process of managing of their overall workforce, further
health and safety to ensure that there is no use of any type of harmful ingredients in the food
products that are offered to customers. Data protection act 1998 is also prevailing on Hilton food
group plc in which they have to ensure that all the personal data of their clients, customers,
employees and other associated stakeholders does not leak out on part of the organisation. With
the present outbreak of coronavirus the safety measures and government guidelines have
increased all those have to be properly adhered by Hilton food group Plc (Retail brands Laws
UK, 2020 ).
From the above discussed PESTLE analysis it can be summarized that retail group
industry has to properly implement all the laws and regulations.

CONCLUSION
From the above discussed scenario it can be summarized that for the purpose of making a
detailed evaluation of the macro environment there is need to consider the pestle analysis that is
related to macro environment. The structure of a organisation is critical in depth a detailed
overview of the way it is posing a impact on the overall functioning of the organisation.

REFERENCE
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Online
SHAPING GLOBAL BUSINESS, 2020 [online], Available
through<https://www.hilton.com/en/corporate/executive-bios/>
Retail brands Laws UK, 2020 [online], Available
through<https://www.assetsure.com/business/Retail brand-insurance/Retail brands-laws-uk/>
HILTON FOOD GROUP PLC (HFG), 2020 [online], Available
through<https://www.marketscreener.com/quote/stock/HILTON-FOOD-GROUP-PLC-
4007044/company/>