Exploring Organization-Stakeholder Relationships

The provided assignment content includes various articles and sources related to business, management, and international business. The studies explore different aspects such as organization-stakeholder relationships, trust, and transparency; the influence of organizational structure on organizational learning; the endogeneity of market structure in strategy; international business environment; and electronic commerce. Additionally, there are online resources that provide information on the nature and significance of business environment and the different forms of organizations.

BUSINESS
ENVIRONMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
EXECUTIVE SUMMARY.............................................................................................................4
TASK 1............................................................................................................................................4
1.1 Purpose of different types of organization.......................................................................4
1.2 Hilton hotel meeting objectives of its different stakeholders...........................................6
1.3 Responsibilities of an organization and strategies employed to meet them.....................8
CONCLUSION................................................................................................................................9
TASK 2............................................................................................................................................9
2.1 Allocation of resources by the economic system...........................................................10
2.2 Impact of fiscal and monetary policies on business organizations.................................11
2.3 Evaluating impact of competition policy and other regulatory mechanisms on activities of
Hilton hotel...........................................................................................................................12
CONCLUSION..............................................................................................................................13
TASK 3..........................................................................................................................................13
3.1 Determination of pricing and output decisions through different market structure.......14
3.2 The way in which market forces shape organizational responses..................................15
3.3 The business and cultural environment shape behaviour of Hilton hotel......................16
CONCLUSION..............................................................................................................................17
TASK 4..........................................................................................................................................17
4.1 The significance of international trade to UK business organizations...........................18
4.2 The impact of global factors on UK business organizations..........................................19
4.3 Impact of policies of European Union on UK business organizations...........................20
CONCLUSION..............................................................................................................................22
REFERENCES..............................................................................................................................23

ILLUSTRATION INDEX
Illustration 1: Different stakeholders of Hilton hotel......................................................................6

INTRODUCTION
In today's modern world, management focuses on identifying and analysing business
environment of the company so that effective polices can be framed. The main objective of
organizations is to increase their productivity and performance in the market which ultimately
result in profit maximisation. Business environment depicts different internal and external
sources of organization that influence business activities directly and indirectly. In order to attain
set goals and objectives of the company various decisions are require to be taken. For which
management make proper evaluation of internal and external sources of business enterprises.
The study of business environment provides appropriate knowledge about macro and micro
factors of the company (Brueckner and et.al., 2013). Along with this, they are able to determine
current position of business entity in the market. Further, with proper planning of policies
organization will be able to attain greater monetary benefits.
In order to examine significance of business environment for an organization business
operations of Hilton hotel are taken into consideration. It is the largest international chain of
hotels and resorts headquartered in Tysons Corner, Virginia. The concerned business
organization operates in 78 countries across six continents. It is essential to monitor macro and
micro factors of organization in order to frame efficient policies for the company.
EXECUTIVE SUMMARY
Present report demonstrates the crucial aspects of different sort of organizations. It has
therefore articulated some distinct measures as per the distinguished nature of firms. It is
fundamentally based upon the scenario of Hilton Hotel to define the major responsibility of their
crucial stakeholders in terms of timely meeting their organizational policies and strategies of
work. Hilton hotel is a private business enterprise that aims at increasing profitability and
acquiring customer loyalty in the market. The organisation is involved in meetings needs and
expectations of its different stakeholder like shareholders, employees, suppliers and customers.
They adopt fair trade practices, customer legislation and employee legislation in order to perform
their responsibilities in favour of stakeholders.

TASK 1
1.1 Purpose of different types of organization
In a market structure there are various business entity operating and managing their
operations. They avail wide range of goods and services in the market so that needs and demands
of customers can be attained properly. Various plans and policies are executed by management
of companies to ensure larger benefits (Dweck, 2013). It can be assumed that organizations are
set up on basis on certain motives or purpose. There are different types organizational
classification made on basis of their purpose which is as follows: Public limited company: These types of enterprises are framed in partnership of
government authorities and public existing in the country. The purpose of Public Sector
Company is to increase its market share and satisfy demands of their concerned
stakeholders. They are interested to invest capital in expanding their market operations.
Although, these enterprises also follows the principle of stabilizing market risks for their
shareholders. The goals and objectives are achieved through effective management
decisions of public sector company (Eales-White, 2014). The public sector company
refers to those organizations that provide various government services in the society. It
avails services like military, police, infrastructure, public education and health care.
British Airways and TESCO are appropriate examples of public limited company. Private limited company: Another type of organization is private sector which is
operated and managed by individuals or group of people. The main objective or purpose
of companies is to maximize their profit margins. In order to achieve their mission of
profitability they often make use of extensive marketing and promotional methods. Hilton
hotel is a private sector company operating in hospitality industry for quiet long period.
Nowadays, they are also liable to follow corporate social responsibility towards the
society. Cooperatives: It is yet another type of organization which is formulated through
cooperative efforts of individuals. They enjoy most of the rights and responsibilities that
an individual possess, here corporation can enter into contracts, loan and borrow money.
They also own assets and pay taxes to government. The main objective of corporations is
to benefit it s members in monetary term (Gani, 2011). They provide services to its

members so that collective interest can be initiated. Edinburgh student housing co-
operative society is an appropriate example for cooperative societies.
 Non-profit organizations: As the name suggest these organizations are established to
provide services to the society. Their mission and vision is to make people aware about
various issues taking place in market whether it is related to politics, economy, culture or
environment. Non-profit organizations work with an objective to satisfy ethical needs of
consumers and society. One of the popular non profit organizations in UK is Cancer care.
Hilton hotel is a private business enterprise, its vision is to acquire higher profitability in
the market and it aims to build brand image among customers. Further, mission of company is to
fill the earth with warmth hospitality. It aim is to be the prominent global hospitality organization
and also to become first choice for guest and business clients. It value is comprises of hospitality,
integrity, leadership, teamwork, ownership and now. Beside this, Hilton enjoys a market share of
9.6 % in UK which certainly helps in boosting overall profitability of company. Additionally,
revenue of cited organization in 2015 is 11.27 billion US dollar with that of 10.5 billion US
dollar in 2014. Further, it enjoys 11.71% of return on invested capital which aids the company to
make the operations effective in order to offer quality services. It also enjoys high customer
satisfaction by offering quality hospitality to customer of varied nature.
1.2 Hilton hotel meeting objectives of its different stakeholders
One of the biggest international hotel chain providing flagship of full service hotels and
resorts is Hilton hotel. It is operating in international boundaries either by owing, managing and
franchise's it through independent operators worldwide (Joardar, Kostova and Wu, 2014). The
company is responsible towards its stakeholders who directly or indirectly get affect or make
effect on business operations of Hilton hotel. As the management take decisions on various fields
of operations, it ultimately makes great influence over its stakeholders. Hilton hotel is always
liable to meet objectives of different stakeholders which is as follows:

Illustration 1: Different stakeholders of Hilton hotel
(Source: Leon and Garcia, 2011)
 Shareholders: According to stakeholder model, shareholders are first element for Hilton
hotel. They are responsible to invest capital in concerned business entity so that business
transactions can be executed smoothly. In return, the company is liable to avail higher
monetary benefits i.e., increasing profit margin or revenue of Hilton hotel (Nandi, 2010).
However, conflict of expectation usually arises between ownership and control.
Shareholders being the owner expects for high dividend whereas management, who is
responsible for controlling the business seeks for investing the earned profit in business
again. Management and employees: These are essential internal stakeholders for concerned
business entity. Managers are responsible to frame plans and policies for the organization
while employees are responsible to execute them effectively. Hilton hotel needs to
provide higher salary benefit along with healthy and safe working environment so that
desired output can be attained from them.
 Banks and creditors: The financial institutions like banks plays crucial role in availing
funds to Hilton hotel (Timmers, 2012). While creditors also plays similar role as
stakeholder of the company. The concerned business entity is liable to pay loan
instalments and interest on time to its creditors and bank. Hilton hotel acquire banking
and financial facilities mainly from HSBC and Standard Chartered. Suppliers: Hilton hotel provides hospitality services which require good flow of raw
materials like housekeeping tools and equipments. Here, the suppliers act as crucial
stakeholder for the company and Hilton hotel provides credit worthiness to them in
return.

 Customers: Guests and visitors enact as crucial stakeholders for cited business entity. As
customers are responsible to evaluate performance of the company in market Hilton hotel
need to meet their objectives (Yu and Ramanathan, 2012). It should provide comfortable
and luxurious hospitality services to its guests. Local community: Society or local community also play crucial role in business
operations of Hilton hotel. The organization should fulfil its corporate social
responsibility so that local community are benefited. It should provide greater
employment opportunities to people for their growth and development.
 Trade unions: These are considered as internal stakeholders of Hilton hotel. It simply
refers to group or organization of employees that come together to achieve common goals
such as protecting workers in the concerned business entity.
Based on stakeholder analysis, following is the power interest matrix with the perspective of
Hilton Hotel.
Figure 1: Power Influence Matrix
(Source: Self Attempted)
According to above mentioned figure, Hilton Hotel priortise various stakeholders and
provide them authority to particpate in its activities. Now, below are mentioned four parameters
for role of stakeholders:

 Keep satisfied: It includes stakeholders that have high power and less intrest in hotel
gorups activities. Government and customers are inclusded in it and organisation needs to
keep them satisfied. Manage closely: This parameter includes employees and shareholder that posses high
power and high intrest in orgasnisational activities. They should be managed closely for
their active involvement. Monitor: Stakeholders that have low power and less intrest in cited hotel group activities
are included in this parameter. Suppliers should be monitored proerly to receive constant
flow of inventroies.
 Keep informed: Here those stakeholders are included that have low power and high
intrest in the organisational activities. Society is included in this type of parameter.
1.3 Responsibilities of an organization and strategies employed to meet them
Every business enterprise works with certain code of conduct in order to implement its
roles and responsibilities effectively. Management and staff members of Hilton hotel prepares
various strategies to perform these duties in favour of company and different stakeholders
(Jahansoozi, 2016). It helps to derive better outcome as each individual is completely aware
about his job role in the company. It is a private business firm and focuses on profit
maximisation and generating higher revenue. In order to attain these objectives Hilton hotel
focuses on accomplishing various roles and responsibilities favourable for its efficient working.
Some of these duties are specified below: Consumer legislation: According to this principle, the company is responsible to make
avail comfortable and luxurious facilities to its guests (Carroll and Buchholtz, 2014). It
should ensure that Consumer Rights Act is implemented effectively in concerned
business organization. They will be responsible to protect customers from violation of
their rights. Adoption of consumer protection laws will avail fair trade practices,
competition and accurate information about marketplace. Employment legislation: Hilton hotel hire skilled and qualified human resources in order
to avail effective hospitality services in international market. Employment relations
provide wide range of contractual rights for employees that are entitled for national
minimum wage, healthy working condition and protection against unfair dismissal at

work. During recruitment and selection process, HR manager of Hilton hotel adopts
Equal Employment Act that provides equal opportunities to candidates and helps in
presenting their abilities. It avoids the situation of discrimination that is taking place
among applicants on various grounds. Fair trade practises: Company is also responsible to perform trade practices in effective
and efficient manner (Joardar, Kostova and Wu, 2014). Government authorities have
framed various rules and regulations that help to monitor merger and acquisition
activities authentically. The major objective behind it is to avoid situation of establishing
monopoly market by Hilton hotel.
 Environmental and ethical issues: In order to follow corporate social responsibility
Hilton hotel take various effective measures. It provides great concern towards
environmental and ethical issues for the company. They make sure that hospitality
services do not add up to pollution and global warming in the environment (Floyd and
McManus, 2015). All these responsibilities help to acquire better results for concerned
business entity.
CONCLUSION
The above portion is to ascertain the major business objectives of Hilton Hotel which has
together regarded as a prior existence of its stakeholders into it. Hilton Hotel is hereby regarded
as a private hospitality firm that is mainly operating into the enthusiastic arena of hotel industry
with its requisite dynamic intervention.
TASK 2
EXECUTIVE SUMMARY
There are different types of economic systems existing in the market such as command
economy, free market economy and mixed market economy. The government authorities and
market forces decide optimum allocation of resources to produce the goods and services. Hilton
Hotel is greatly influenced by any change in fiscal and monetary policies of UK. In addition to
this, for obtaining a competitive edge in the market with ethical framework, concerned hotel
entity follows competitive policies and other regulatory mechanism.

2.1 Allocation of resources by the economic system
There are three types of market economic systems which are given below:
 Command economy: The first type of economic system is command economy in which
government controls the all economic activity for example government decide that who
owns the businesses, who buys and sells to whom and who takes the decisions regarding
the business (Manral, 2010). In command economy government only responsible for all
results in this economy, government decide the price of product transportation cost,
labour cost and other required decisions of the company and one other thing which is
included in it is the company follow all the rules and regulations which is made for the
company. The major advantage of command economy is that here, resources are
mobilized quickly and effectively on a large scale. It effectively protects the valuable
resources of country. However, such economic system gives rise to situation of black
marketing where goods and services are offered with illegal practices with high price.
North Korea adopts the characteristics of command economy.
 Free market economy : Free market economy refers to consumer based economy in
which market forces makes the decision about decide whom to buy, for whom they work
and producers produce that products which the consumers have willing to pay and one
another thing in this type of economy is, if people want to invest their capital and start a
business or company then they have right to do so if this company produce marker then
they have right to set prices and there are is no government interference in economic
activities (Oberholster, 2010). There is high competition in the market which leads to
increased efficiency of firms. However, it also increases the rate of corruption in the
market economy. Canada is an example of free market economy.
 Mixed market economy: It is the integral part of economic process in which both above
economy are combined where neither the government nor the business maintains the
economy alone, there are combination of both economy's policies and systems. In this
context, UK is the mixed economy wherein Hilton hotel function. Here, government of
UK controls the policies of public transportation and other policies which have direct
impact upon the citizens of country (Beger, 2015). Whereas, hotel has the right to make
the decision on the basis of demand and supply forces. For example, the owner of Hilton

hotel have the rights to set prices of all services which is provided by the hotel like room
facility, play ground for kids, laundry and many more. Thus, the given system works for
the benefits of both public and private sector.
2.2 Impact of fiscal and monetary policies on business organizations
Fiscal policy refers to government's decision regarding taxation polices and purchasing
power of customers. It is a means through which government adjust its spending level and tax
rates to smoothly run an economy (Hin Li, 2012). While, monetary policy is the process by
which monetary authority for country controls supply of money by its control over interest rates
to maintain price stability and achieve high economic growth. The fiscal and monetary policies
have great influence over Hilton economic strategies, which can be understood from below
factors: Change in interest rate: The rate at which financial institutions provide loans to business
organization like Hilton hotel have great influence over monetary policy. When
government increases interest rate on loans the concerned business enterprise is not able
to invest in new ventures (Kryzanowski, 2016.). In addition, the consumption power of
guests and visitors reduces due to increased interest rate. The potential customers are
interested to save funds rather than expanding it in other activities. Due to this,
profitability of Hilton hotel reduces. Change in exchange rate: It refers to rate at which one currency is exchanged with
another. It is considered as an essential element of monetary policy so that currencies can
be exchanged properly. When pound is appreciated in international market Hilton hotel is
able to conduct effectively business operations in other countries. The management is
able to acquire higher monetary benefits because it gets opportunity to expand market
operations in other countries as well. Change in tax rate: The taxation policies formulated by UK government have adverse
impact on functioning of Hilton hotel. It is considered as percentage at which concerned
business enterprise are taxed on their concerned income (Oberholster, 2010). When tax
rate reduced by 1% from the year starting 1st April 2016 to 19%, Hilton is able to save
considerable amount which certainly boost the profitability of company. Change in government spending: The government consumption, investment and transfer
payments are refereed as government spending. According to this parameter, when these

spendings are increased it will create greater involvement of government organizations in
the economy. This will ultimately hamper profitability of Hilton hotel.
 Change in reserve requirements: Another effective tool of monetary policy is reserve
requirements which have direct impact on business activities of Hilton hotel (Poak,
2013). High level of reserve requirement increases interest rate due to which consumers
develops habit of savings. During such condition, managers of Hilton hotel make uses of
effective marketing strategies for the company.
2.3 Evaluating impact of competition policy and other regulatory mechanisms on activities of
Hilton hotel
The concerned business entity operates in highly competitive work environment and in
order to resist its position in the market managers will adopt competition legislation. The
competition commission in UK mainly focuses on four essential components of competition
policy. These are merger control, market liberalization, state aid control and antitrust & cartels.
There are various rules framed to control mergers of Hilton hotel as it will reduce chances of
growth and development of the company (Sledge, 2011). On the other hand, liberalisation
involves introducing new business entities into current hospitality market. It will help to
distribute potential customers of Hilton hotel in the market.
It is believed that large organizations like Hilton hotel heavily depends on labour, their
cost accounting which effects performance of the company. It faces competition from various
existing and rising hotel firms in UK market. The concerned business entity uses Offer of Fair
Trade principle to sustain its market position effectively (Ditlev-Simonsen and Wenstøp, 2013).
It is a non-profit organization that requires both consumer protection and competition law as
economic regulator of Britain. Its main objective is to make market better place to transit
between customers and business organization. There is fair competition among trading firms
which ultimately results in prohibiting unfair practices like rogue trading, cartels and scams.
Apart there is department for Business innovation and skills which reforms UK consumer
and competition regimes (Fernando, 2011). It influences working and functioning of large
business enterprises like Hilton hotel and its rivalries. There is another regulatory mechanism
which is responsible to undertake different competitive activities for Hilton hotel. Competition
commission is liable to investigate and monitor mergers and acquisition of the company. It helps
to create healthy competitive environment between different business entities functioning in

hospitality industry (Kemp and Vinke, 2012). The government authorities have power to
intervene on mergers comprising public interest criteria specified with media pluralism, financial
stability and national security. All these competitive and regulatory mechanisms play a crucial
role in determining the productivity of company. They are not able to create monopoly market
condition among various business enterprises. It also develops optimistic approach among
stakeholders, as they are aware that anti-competitive practice will not be executed. Further,
company is not able to get more from aggregate demand due to regulation from competition act
1998. As per it, company is not able to conduct aggressive and comparative marketing activity.
Also, company to meet with the third stage of the Economic and Monetary Union (EMU), has to
abide with Euro Convergence criteria. Further, central and local government spending leads to
deviation in fiscal policy which cause rise or decline in tax rate. From this, profitability gets
declined.
CONCLUSION
It can be concluded from the above study that United Kingdom adopts mixed economy
structure where government intervention takes place through rules and regulations. However,
market forces decide the pricing and output decisions. Hilton hotel adjusts its organizational
policies according to the change that is taking place in monetary and fiscal policy of concerned
country. It also reveals that inclusion of competition policy helps Hilton hotel to attain
competitive edge in the market.
TASK 3
EXECUTIVE SUMMARY
There are different types of market structures present in the economy which maintains the
flow of goods and services. It reflects number of firms operating in the market and relation
between buyers and sellers. The market forces such as demand, supply, customer taste and
preference also plays a crucial role in determining the product’s policies of Hilton hotel. Apart
from that, cultural and business environment of the concerned business entity also contributes in
determining the profitability of company.
3.1 Determination of pricing and output decisions through different market structure
The nature and degree of competition in certain market for goods and services refers to
market structure. It is derived on basis of various determinants like number and nature of buyers

and sellers, entry and exist of firms in the market, economies of scale and nature of the product
(Berman and et.al., 2010). Each market structure determines its pricing and output policy
according to their respective attributes. Now, below are described various market structure along
with pricing and output policy adopted by the company. Explaining that how market structure
determines the pricing and output decision of the businesses.
Market structure defined as the degree of competition in the market for goods and
services and the nature of market determined on the basis of competition (Fernando, 2011).
Basically market refers to the place where sellers and buyers are coming together from exchange
goods and services and market structure gives them to know about the competition in the market.
On the basis of competition market structure classified into these following categories:-
 Monopoly: In this type of market structure, there is only one seller of the product with
barriers to entry of others and in the monopoly market there are no substitutes of the
product. The mentioned hotel was established in 1919. At that time, there was no any
other hotel to compete with Hilton. Thus, Hilton hotel had its monopoly in the market.
The management was only responsible to decide the pricing of services as there was no
interruption from other firm that can participate in the decisions and price settings
(Clarkson, Miller and Cross, 2010).
 Oligopoly: - In oligopoly market competition there are few firms selling homogeneous
products and in this situation the mentioned firm decide their pricing and take output
decisions to consult with other firms and set prices according it. In the UK market, airline
industry follows characteristics of oligopoly market where there are few firms that are
providing aviation services.
 Perfect competition : Perfect competition refers to market where large number of buyers
and sellers are selling and buying homogeneous products, in other words there is no
competition among those firms they maintain a level of competition or there are absence
of rivalry (Menipaz and Menipaz, 2011). In context of Hilton hotel, owners of the firm
signed agreement with another firm that is McDonald’s or other fast food company to
maintain the competition in the market and this firm sets prices according to its services
and take decisions accordingly.
 Monopolistic Competition: Under monopolistic competition, there are varied producers
that sell differentiated product from each other and it has large number of buyer as well.

 Duopoly: It is a special type of oligopoly where there exist only two set of producers
only which have a considerable amount of control on whole market.
3.2 The way in which market forces shape organizational responses
There are many ways to shape organizational responses are given below:
 Demand and supply:- Demand refers to the needs of the customers that what they want
and supply refers to fulfil those wants to satisfy them in the mentioned firm. It is
important to maintain the relation between demand and supply so that they can establish
equilibrium among these (Chand, 2016). In other words, demand is proportional to
supply and price is vice versa. When Hilton hotel lowers its price for availing hospitality
services, it results in increased demand of the quantity of products of company or vice
versa. In addition, the concerned organization operates in various countries with different
disposable income of people. During recession time, their disposable income level
decreases and customers spend less which shifts demand curve to the left.
 Cost of services :- Cost of services defined as the prices of facilities and labour cost, the
firm have to set prices according to overall cost, if they wouldn't decide prices according
to this condition then it will directly affect to the demand and supply because the overall
cost will be high. The price of services also increase which reduces the customer’s
demand. Hilton hotel decides pricing policy according to the evaluation cost of
production and customer’s desires.
 Competitors: Competitors are those who compete with the firm by providing better
facility to the customers so the mentioned firm have to gives better services to their
customers so they can compete with another firm and if the firm will not satisfy its
customers it can be difficult to survive in the market. Marriott hotel is the prime
competitor of Hilton hotel in the UK market. It also avails luxurious hospitality services.
It is the most important way to shape organizational responses (Sinha, 2012). In every
field it is beneficial to have competitors because it helps to know about the current
market condition and improve their own firm's services according it.
 Economies of Scale: Further, firm need to attain economies of scale by earning profit in
short and long run. However, same is not attained with the rise in cost of operation due to
high extent of rivalry.

 Labour market trends: Company need to respond its business operation as per labour
market trends which aids in developing healthy relations with employees.
 Technology and innovation: It is even required to remain competent with market forces
of technology and innovation. For this, company need to focus on research and
development so that better products can be developed accordingly.
3.3 The business and cultural environment shape behaviour of Hilton hotel
Every business enterprise has its own organizational structure and culture which regulates
its functions effectively. The company is able to make optimum utilisation of resources and
derive desired output. It helps to increase efficiency and capability of professionals working in
Hilton hotel. Business and cultural environment comprises internal and external factors that have
a great influence over decision making of cited hotel company (Sledge, 2011). They need to
ensure proper evaluation and execution of resources in favour of concerned business entity.
Management will undertake PESTLE analysis of the company so that it is easier to
evaluate external sources impact over Hilton hotel operations. Political factors: It reveals that political stability plays crucial part in implementing
policies of concerned company. United Kingdom can be refereed as an appropriate place
for Hilton hotel to avail its hospitality services in the market. The concerned business
entity is adversely influenced with changing government policies, taxation rates, foreign
trade regulations and political issues taking place in the UK market. Economic factors: Another force of business and cultural environment is economic
scenario of the country in which concerned business entity is operating. The
management team evaluates economic perspectives of UK market so that financial
policies are framed accordingly (Poak, 2013). Inflation rate has a great impact on
consumers' consumption behaviours which in a manner influence profitability of Hilton
hotel. The fiscal and monetary policies play a crucial role in determining the economic
policies of Hilton hotel. It is assumed that increased disposable income of people helps
to raise profitability of company. Social factors: The organization is providing hospitality services in UK market where
people are interested to spend their income on clothing, food and travelling. Managerial
team studies changing family patterns, demographic changes occurring in market to

promote better and comfortable social life. Social and cultural structure helps to
understand its guest’s demands and expectations. Technological factors: Hospitality industry urge for greater involvement of
technological development in the company. Increased integration of internet helps them
to build direct and effective relationship with new and existing customers of cited hotel
group. Environmental factors: Hilton hotel is also responsible to perform it responsibility
towards society this will encourage hotel staff and mangers to enact in benefit of
concerned business organization. It monitors impact of changing weather condition so
that guests can be availed hospitality services accordingly (Fernando, 201). The
organization is also concerned about proper waste management of resources to reduce
pollution.
 Legal factors: The ethical and legal framework entitles that any amendments in legal
policies influence Hilton hotels functioning. It adopts various legislations related to
consumers, employees, competition and environmental policies. These above mentioned
business and cultural factors play a crucial role in determining effective policies for the
concerned business entity. Hilton hotel adopts rules and regulations framed by European
Union in order to maintain legal and ethical framework in its operations.
CONCLUSION
From the above study, it can be concluded that in the beginning, Hilton hotel was
example of monopoly market. But with increasing competition and entry of new firms, it has
turned into perfect competition market. The market forces are crucial to shape hospitality
services of Hilton hotel. It highlights positive impact of studying business and cultural
environment to attain higher profits for Hilton hotel.
TASK 4
EXECUTIVE SUMMARY
United Kingdom is an important hub of international trade and commerce. Multinational
enterprises are interested in investing UK's economy and European Union plays a crucial role in
making the firms run their business operations in the highly competitive market.

4.1 The significance of international trade to UK business organizations
International trade is a practice of exchanging goods and services between countries in
order to settle the needs and wants of customers across globe. In such activity, price, demand and
supply are affected from global event (Poak, 2013). It helps to globalization the domestic market
and improves the economic conditions of the country. This concept is not newest in nature, in the
past country used to transport silk to another country by the silk route and after some time tea
also transported from China, so the concept is old but it is running successfully in the present by
using faster technology and UK business organizations also trade many of products and services
to another country because there is availability and the use of technology is much fine which
satisfies the customer needs. Hilton provides better services to its customers like comfortable
rooms, play ground for kids, laundry and many more which makes Hilton specific from others
(Floyd and McManus, 2015).
International trade helps to enhance domestic competitiveness, increase sales and profits
and it reduces dependency on existing markets, in the context of Hilton hotel it is also a
worldwide hotel which provide their facility all over the world; however, they get a brand name,
recognition and established goodwill as it conducts marketing and promotional activity on global
level. International trading helps to become mobilize and helps to increase in customers
throughout the world. There are many types of benefits of international trading are as follows:
It is helpful to establish a worldwide network which helps to improve the domestic country's
economy and get specific position in the market and also increase the market share. It generates
more profitability from other countries and also helps to establish a brand name and international
trading also increase in employment from all over the world, the hotel get skilled and
knowledgeable staff across the country and helps to reduce unemployment and skilled employees
get chances to work in an international company (Timmers, 2012). Thus, it fulfils the both
countries demand like an employee gets chance to show their skills and knowledge and the hotel
uses those skills to make their brand famous. One another thing which is important for Hilton
hotel is to get worldwide market and satisfy the customers by using updated techniques.
International trade has provided better market opportunities for various business enterprises.
Additionally, international trade aids Hilton Hotel in addressing the market opportunities by
entering into different region. This aids in boosting the sale of the company. Through this,
growth is attained to company at global level. However, UK businesses faces issue of

protectionism as well in certain market as government confines certain business sector for local
players only.
4.2 The impact of global factors on UK business organizations
Global factors are those factors which directly affect the external environment of the
organizations, the main global factors that affect the organizations are as follows:
Political factors, economic factors, social and technological factors.
International political scenario
In which government controls the all rules and regulations of the firm, political factors
include tax policy, labour law, environmental law and trade policies imposed by organizational
such as WTO and European Commission (Carroll and Buchholtz, 2014). In the context of Hilton
hotel if the government increase the taxes price then it affects the firm's cost of services. Various
principles like competition policy plays crucial role in determining Hilton hotel business
operations. The main aim of competition policy is to make market work better and contribute
towards improved efficency. These government policies focuses on preventing and reducing
abuse of monopoly power. It is responsible to monitor and inquire organiations enrolled in
engagaing prohibited practices.
Global financial conditions
Economic factors include economic growth, interest rate and exchange rate, in the
context of mentioned firm, it affects the overall condition of this or it can effect on global level,
if the firm wants to expand their business throughout the world then they have to provide better
facilities or supervise to the customers. With the change in exchange rate, profitability of
company gets hampered and hence it affects overall operation of company also. When value of
UK cuurency rises in global market it attracts attention of global investors and cusomers have to
pay more to accommodate servioces of Hilton hotel. It will ultimately ncrease profit margin of
cited organisation.Further, recession in market also leads to decline in sale from which overall
efficiency of business gets affected. Recently, global recession during 2007-11 had great impact
over local firms. The purchasing power of customer was reduced and they prefered to save
money. With response to it local firms were not able to acquire their cost of production and faced
higer financial loss.
Emerging markets

Social factors include the cultural aspects, population growth rate and age distribution of
emerging markets like Brazil, Russia, India and China which affect the UK business
organizations, these factors affect the firm like if the customers are belongs to another country
then the firm have to facilitate them by providing lingual operator (Dweck, 2013). Emerging
market has high potential for growth and hence same is focused by company for boosting the
profit margin. BRIC is an association of four developing and emerging nations in the worldthat
are Brazil, Russia, India and China. As these are developing nations they have larger scope of
expansion in coming future. On the counterpart, UK and other developed economy are at
stagnant positio here growth rate has become stable. In addition, low cost labour is another factor
responsible for thrreating business in UK and other developed economy.
Technological influences
Technological factors include E- business, online marketing or digital marketing and for
this firm it also affects the business rivalry because in the present most of firm use these
technologies for stable in the market and the mentioned firm also use these technologies so that
they can provide better facilities to its worldwide customers. The concerned organization is
interested in adopting the latest and advanced technology so that better customer relations can be
established in the market. Database management system is a crucial technological development
occurred in morden economy. Hilton hotel should adopt it so that they are able to acess
information related to customers and employees. Their valuable feedbacks and suggestions will
help the hotel group to improve its hospitality services.
Workforce Skills
With global factor, company is able to hire competent and skilled staff from varied countries.
Taxation regimes
UK government offers leverage in tax for initial years which certainly helps in sustaining in an
effectual manner.
International Competitiveness
Through global operation, company is able to attain international competitiveness and it
eventually boosts the profitability of company.
4.3 Impact of policies of European Union on UK business organizations
There are various business organizations conducting business operations in European
Union. It is considered as single largest market in the world that includes various European

nations to undertake international business. It provides various benefits such as reduced or
abolished selling tax and freedom for other restrictive fiscal measures and policies. EU polices
have ushered liberalization of policies so that products that were prohibited from being traded are
now available in this section of market (Gani, 2011). There are various policies framed by
concerned organization to undertake business transactions successfully which are described
below: Employment policy: According to employment policy framed by EU, resulted in
increased employment opportunities for natives of United Kingdom. Inclination of
liberalisation policy has resulted in larger number of investment from multinational
companies in UK market. Recently, EU has launched new scheme for unemployed
population i.e., 'The New Deal.' through these people are provided opportunity to develop
their skills for various government funded and sponsored employment programs. As a
result of which Hotel Hilton too has to consider such applicable inclusions into its
existing procedures of recruiting employees. Regional policy: The organization has lead emphasise on developing regional areas of
group members especially UK. EU provides funds to avail support of high
unemployment and social deprivation undertaking in concerned business market. It helps
to develop business not only at international level but regional parts too. EU polices
provide motivation to small business enterprises in expanding their market operations to
national level. Hotel Hilton has significantly enlarged their services into a diversified
form by together generating more number of employment opportunities for the
prospective candidates at its expanded arenas of business. Inflation policy: Economic scenario plays crucial part in smooth functioning of
international market. The Monetary Policy Committee monitors inflation in UK economy
so investors feel secured and confident about their investments. It helps to acquire larger
benefits in market area and helps business entities to work according recent market trends
and patterns. These policies play crucial role in ascertaining greater benefits to the
company. Inflation policy together affects the economic decisions of firms where Hilton
Hotel with a similar perception of being influenced by it mandates an essential function
of primarily scrutinizing such upcoming changes into their prevalent markets.

 International policy: EU formulates various laws and policies which give boost to
international trade in its member countries (Jahansoozi, 2016). There is valuable
contribution from concerned union to plan and execute polices which are in favour of UK
business enterprises. The government promote trade and encourages sales of British
goods abroad and discourage commodities from other nations. Hilton Hotel is utilizing
such effective governmental policy where they are operating with an ease of globally
trading their goods and services.
Involvement of EU polices has resulted in increased GDP and economic growth of
United Kingdom. Several big business houses are interested in investing their capital in UK
market to acquire higher profitability and brand image in the market. It is with global
functionality of Hilton Hotel where it is successfully leading their path with an international
expansion of their business operations.
CONCLUSION
The above report makes detailed analysis of Hilton hotel organization to frame plans and
policies in its favour. It is a private business enterprise with profit maximisation objective and
establishing brand image in international market. Management identifies potential stakeholders
of the company and execute strategies in their favour. It prepares plans and policies in favour of
stakeholders like management, employees, shareholders, suppliers, creditors and customers. The
report determines different economic structures like command economy, free market economy
and mixed market economy. Further, Hilton hotel reflects great influence through fiscal and
monetary policies along with competition policy. The report highlights behaviour of different
business organizations in their own market environment. It aids in the assessment of certain
formulations of international trade in the UK business organizations. In addition to it, impact of
different European Union polices on UK's business organizations. Thus, recommendation to
Hilton Hotel in this regard is to make an optimum utilization of their available resources. This
relates to make a considerable expansion of services into their respective field but with a
significantly reliable approach of functioning with all mandate reflections of the predefined
policies of government.

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