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Swot and Pestel Analysis of Hilton Hotel

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Added on  2021/02/19

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Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Examine the objectives of the business............................................................................1
1.2 Factors that effect upon the business................................................................................2
1.3 Determine potential developments to the business organisation and operations.............5
M1.Analyse how the objectives of their chosen organisation meet the ‘SMART’ criteria of
organisational objectives........................................................................................................6
D1. analyse how the elements of Ansoff’s Growth Matrix have contributed to improvements
to their chosen organisation....................................................................................................6
TASK 2............................................................................................................................................7
2.1 Effectiveness of the business............................................................................................7
2.2 Develop plans to improve the business and justification of their value...........................8
M2 Evaluate how the effectiveness of areas of business can contribute to organisational
growth.....................................................................................................................................9
D2 Critically analyse how plans developed can lead to an improvement in the business. . .10
TASK 3..........................................................................................................................................10
3.1 Evaluate present skills of employees and management.................................................10
3.2 Justify and devise plans for the improvement of skills for management and staff........11
M3 Analyse effect current experience, skills and abilities of management and staff may have
on the business......................................................................................................................12
D3 Critically evaluate various methods that can be used to develop the skills of management
and staff of their chosen organisation...................................................................................13
CONCLUSION..............................................................................................................................13
RECOMMENDATIONS...............................................................................................................13
REFERENECES............................................................................................................................15
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INTRODUCTION
Hospitality industry includes various area of services sector that involves
accommodation, travelling, and many more. This is accountable for facilitating food, services
and accommodation into several places such as in hotels, resorts etc. This industry is leading
rapidly within market that aids country to enhance its profitability (Arntz-Gray, 2016). There are
many services that are involved in this industry for its guests, visitors and so on. For this report
the chosen company is Hilton Hotel which is a international brands of full services and resorts.
Its headquarters is in McLean, Virginia, US. The purpose of this report is to examine objectives,
vision and mission of selected firm. The external as well as internal factors effects have
explained with the aids of models and theories. Apart from this, the potential improvements to
business enterprise or operation are explained. Effectiveness of business and plans are develop to
improve enterprise and justification about their value. Justification of plans for the improvements
of skills for employees and management are also mentioned in this report.
TASK 1
1.1 Examine the objectives of the business
Hilton is the fastest growing multinational hospitality firm that facilitate effective
services to their guests. It was established by Canrad Hilton in year 1919 having headquarters in
Virginia, United States. This firm is an international brand that facilitate full services into resorts
as well as hotels in all over world and operates in approx. 85 countries. In year 1927, they opens
their first hotel with AC and cold water running in guest rooms. Thereafter in 1947, it become
the first hotel that install TV into their guest rooms as well as in 1959, they introduce their first
airport hotel and pioneers airport hotel concepts. In year 1973, they started the reservation
services utilising compute technology. A new dining concepts is launched Herb N' Kitchen in
2013 now they has approx 540 Hilton hotels and resorts running into 78 countries on 6
continents.
Objectives: Short- term objective: “To facilitate effective hospitality services by enhancing the
standard through personnel interchange as well as aids into hotel staffing”.
Long-term objective: “To minimise consumption of energy from direct operations as
well as decrease output of waste and water”.
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Mission:
“To become most hospitable firm in entire world through developing heartfelt experience
for visitors as well as facilitate standard quality services for keeping good positive image”.
Vision:
“To deliver extraordinary experiences to all visitors all time in order to accomplish the
Earth with lights as well as warmth of hospitality services”.
1.2 Factors that effect upon the business
Hilton Company has to deal with several environmental external as well as internal
factors. These factors have negative and positive effect upon respective firm services. For
analysing their external environment, PESTEL model is applied (Brown and et.al, 2014). This is
an strategic analytical tool that aids firm in finding possible impact of macro environment upon
Hilton longer profitability as well as growth.
Political factor: It is refers as the success key of firm as Hilton has resorts and hotels
within several nations as well as required to deal with all political situations into world.
Political factors involves political stability, taxation policies, legal framework for
contract enforcement and so on. Firm has to examine various kinds of political
environment that may effect operations and risk of business from political factors which
influences guest into that country. As there is some changes into taxation policies the
respective firm have to comply that which impact their business operations.
Economic factor: This is the factors that consider to GDP growth of country or adverse
movement of currency upon nation. Hilton has to undertake these factors before making
any decisions regarding their activities. Firm has to measure the factors of external
environment like foreign exchange rate, inflation rate of nation that ascertain investment
needs and demands into economy. Respective firm has to consider economic factors in
order to have competitive advantage through facilitating several and effective quality of
services in compare to their rivals. Labour cost as well as personnel skill level into
economy of nation will also has effect on whole Hilton Hotel performance.
Social factor: This involves social belief, culture, behaviours of individuals towards
hospitality sector which has effect upon Hilton profit. These macro environments involve
people cultures and social conventions in that society (Chen and Wang, 2016). Whole
these factors have optimistic and pessimistic effect upon business operations. Society

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where individuals interest is moving towards travelling can leads towards firm's
profitability. As this is an opportunity for firm to facilitate standard quality services to
visitors or guest as well as grab the attention of many consumers towards hotel which
enhance their operations effectively.
Technology factor: Now a days, all firms are concentrating upon obtaining and utilising
advanced technology for their enterprises. Hilton can also offer their services through
utilising updated technology for developing consumer satisfaction. This particular factor
involves new trends of technology that aids in facilitating more effective services to
clients (Crane and et .al., 2019). Respective firm have to apply advanced technology into
restaurants and rooms for attracting consumers. Technology utilise by Hilton rivals will
effect firm as more advanced technology are utilised into competitors services which
impact their business negatively.
Environmental factor: It involves whole those factors which influence through
environment. Hilton has their hotels in several nations and various markets. Thus, firms
have to comply several rules and deal with various environmental norms that impact the
organisational profit. External environment like climate change, environmental
regulations, pollutions etc. are all considered as environmental factors. Respective firm
have to undertake all these factors as it is taking resources from surroundings so this is
the accountabilities of firm to do not harm natural resources.
Legal factor: It refers to regulation and laws that are set up through government and
legal authorities of country. This involves customer protection law, health and safety law,
anti- trust law and so on. Hilton required to comply all these regulations of nations where
they are functioning. Firm has to examine that legislation of nation will facilitate
appropriate protection to workers as well as operation of the business. As legislation are
changing they have to follow all that laws which impact their business operations.
For analysing the internal factors of Hilton organisation SWOT analysis is performed.
SWOT is considered as the strengths, weaknesses, opportunities and threats of firm
(Ghanbarzadeh and et. al., 2014).
Strengths: Hilton is growing fastly in their sector that has high brand recognition. Their
hotels are utilising advanced technology that aids them to develop consumers experience
with regular up-gradation of business procedures and employees. It facilitates several
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effectual consumer schemes for retaining them and it leads towards enhancement of
consumer’s loyalty of Hilton Group. Moreover, it has several variety of room chain with
high level of services and technology integration into hotel rooms.
Weaknesses: Hilton has limited market share rather than having effective brand and huge
portfolio of their brands. Its less market share are their weakness. Various political and
legal factors impact whole business profit as this is allocated into different nations so sit
has to deal with whole norms, policies etc. of many nations (Hodson, 2014). Thus,
respective company operation gets affected because of government regulations and
political parties instability can also affect them negatively.
Opportunities: Firm can utilise advantage of advance technology in their business
functions as creation within Hilton services will aids to grab the attention of consumers
towards organisation as well as satisfy the requirements of customers. This is an
opportunity for respective firm to attract more guests into emerging marketplace.
Organisation can use several digital sources for service promotion in more innovative
manner with the help of many online sites.
Threat: Hilton has several threats from consumers changing tastes as this will directly
impact operation and profit of business. Clients are generally seeking to extent new
things for its experiences so this is very essential for organisation to facilitate innovative
offerings to consumers. Major changes into external factors can effect negatively upon
respective hotels operations. They has threats from ethics regarding problems within
internal environment of firm. Strategies applied through competitors are harmful affect
on organisation.
Porter's five forces:
This is considered as the analytical structure which is established through Michael Porters
in year 1979. it describe five forces which shape whole extent of competition within sector
(Honnekeri and et.al., 2016). All forces are mentioned below: Rivalry among existing company: Within premium segment hotel sector is fierce. Hilton
Company competes with Marriott, Westin and another premium segment hotel chains
into international market area. As an outcomes of massive investment within several
aspects of service provision within last some years.
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Bargaining power of supplier: Hilton bargaining power of suppliers is low as they buy
approx 4000 suppliers in all over world. Also because of their lack of uniqueness of
goods or services supplied. Also, the significance of order volume for their supplier is
paramount as well as there is not any switching cost for them in many circumstances. Bargaining power of customers: This tends to be high when there is more number of
hotel and rivals. Thus, this based upon location, few areas only has single hotel as well as
some has more than 15 within one places. This means that if there are many hotels rivals
in tourist hotspot then bargaining power of consumers will be high as clients are capable
to perform comparison. Also, hotel will utilise various kinds of advertisement, promotion
and many to grab the attention of more clients. Threats of substitute’s products or services: Within hotel sector threat of substitute
products or services is not important (Kim, Park and Park, 2016). Direct substitutes for
leaving into Hilton Company involve individuals staying into their friends homes.
However, arrangement of all these options may be time taking as well as related with
huge hassle deal. Hotel sector is faced technology-fuelled indirect substitution like video
conferencing, thus this kinds of communication can obviate the requirements to travel to
other area and stay into hotel.
Threats of new entrants: The high rated hotel in country such as 3 stars, 4 stars etc. in
hotel sector is fundamentally dominated through some rivals like sunway, hilton and
another global hotel firm, thus for new entrants which want to enter into luxury hotel
market will be very tough as that may required huge funds, initial investment as well as
develop image of the hotel against that high rated hotel.
1.3 Determine potential developments to the business organisation and operations
This is very significance for Hilton Hotel to so improvement into their business function
for attainment of objectives. For this, they required to find out effective strategies to formulate
appropriate decisions within enterprise to sustain and gain profitability. Respective firm adopts
the Ansoff's Growth Matrix strategy for potential improvement that are mentioned below:
Market penetration: Herein, firm concentrate on gaining more profitability through
offering similar products or services into present market place. Market penetration
considered as that strategies in which enterprise looks to attain growth with utilisation of

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existent products into present market for obtaining more market share within present
place.
Market development: For this, firm required to explore their services within new
marketplace. Herein, Hilton organisation can make strategies that aids company to enter
into new market with same services. Through this strategies, organisation can target new
clients.
Product Development: Herein, firm required to create new services into existent
marketplace (Laws, 2015). Respective company have change as well as upgrade their
services as per the consumers requirements.
Diversification: Herein, Hilton firm will concentrate upon facilitating new services into
new market. Diversification is considered as entering into new market with new services
or products for enhancing organisational profitability and sales. For particular strategies,
respective company will facilitate new services fro satisfying consumers requirements
into new marketplace.
Hilton Company can utilise market penetration strategy as well as concentrate upon off
erring into existing marketplace with existent goods and services. Organisation is offering huge
range of services to consumers but they do not has knowledge regarding this. They have to
develop their market strategies for attracting more number of clients towards their business. For
it firm may utilise various kinds of marketing as well as promotional tools.
M1.Analyse how the objectives of their chosen organisation meet the ‘SMART’ criteria of
organisational objectives.
The objective set up through firm is to minimise consumption of energy from direct
functions as well as decrease useless output and water. It can be attained through facilitating
effective training to its employees for minimisation of water at Hilton. For waste minimisation,
they have to facilitate training programme to understand the effect of polluted surroundings to
their health. Thus, for attaining SMART aspects of company's objectives task are to be done step
by step in order to accomplish the target effectually. To meet business objective, they have to
develop in SMART manner.
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D1. analyse how the elements of Ansoff’s Growth Matrix have contributed to improvements to
their chosen organisation
The Ansoff's Growth matrix components aids into development of Hilton that can
facilitate various advantage to it. Within market penetration, Hilton can facilitates present
products or services into existing n appropriate manner. In context of product development
component, respective firm can introduce more services for existing market for accomplishing
their needs in effective way. For enhancing market share and profitability, Hilton company
required to enter into new market with existent product or services that is known as market
development. In respect of diversification strategy, they may enter into new market with new
services in which it can add on customisation features for all services. Thus, in this manner,
Ansoff's growth matrix can contribute towards Hilton company development efficaciously.
TASK 2
2.1 Effectiveness of the business
Effectiveness of business is considered as the efficaciousness of firm for attainment of
objectives. This means that company have to generate effectual production without any damages
as well as wastage. Effectualness into business is the quality level by which procedures is
performed for better performance of business (Moskvitch, 2015). It is also refers as business
capability for generating results with less time, materials, resources and so on. In this business
effectiveness means that people who are working into company are performing with more
efforts. This is accountability of manager to review business effectualness in appropriate way so
that set objectives can be attained effectively. There are several place that aids Hilton Hotel to
get knowledge regarding business effectiveness have been accomplished or not. Few areas that
involves into effectiveness of business are mentioned below:
Product/services: For business effectiveness, this is accountability of Hilton company to
facilitate standard quality of services to its guests. The products may be in respects of
effective room quality, WiFi facility, appropriate bedding and many more. Likewise,
service involves on time delivery of food at room, proper cleaning and so on. This is
essential for hospitality sector to facilitate standard quality services to its guest for
effective functioning of business.
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Finances: This area is considered as the life blood of Hilton company in which
appropriate allocation of finances is done for whole sections so that task can be
performed effectually. Respective firm finance manager required to allocate funds into
sales, marketing etc. for their business effectiveness. In case company is performing its
activities appropriately then they can simply attain its objectives.
Staffing: They are accountable for attainment of objectives. For developing business
effectiveness, Hilton Company has to recruit proficient employees for its firm to carry out
task appropriately. They have to facilitate the training for developing its weaknesses.
Moreover, they have to motivate in context of rewards, appraisals and so on in order to
retain them for long time.
Sales: It is the significance areas of Hilton firm to enhance sales as well as profitability.
These are several responsibility of sales manager to operate into business like appropriate
market research, promotions, services and many more (Philbin and Kennedy, 2014). To
make them effectual, requirements have to be accomplished through analysing
marketplace. The market research can aid them to understand their consumers as well as
its wants.
Marketing: This is the most essential area of service sector that aids in developing
relations with its customers for effectual results. For making business more effective, this
is the accountability of Hilton hotel to perform appropriate marketing of its firm. They
have to concentrate upon developing relations with guests as well as satisfying its needs
in appropriate way and avail services. Thus, with assistance of these areas respective
company can achieve its objective efficaciously.
2.2 Develop plans to improve the business and justification of their value.
Business planning is considered as the written document that is developed for facilitating
relevant as well as sufficient data regarding new or existent company. This explains marketing
and sales strategy, forecasted profit and loss statement, financial background and nature of the
business. It is considered as the upcoming road mapping of all firm that aids in facilitating
guidance to them in order to attain goals. This plan of the business includes various element like
overview of the industry, competitive as well as market analysis, operating, management and
financial plan. All firm need business planning for performing its activities. Hilton hotel have to
develop plans on several areas of its company as well as direct manager, staff to comply that.

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The various areas in which respective firm required to formulate business planning are
mentioned below:
Planning marketing: Hilton Hotel has to develop plans for marketing in which they
should concentrate upon building relation with guests as well as satisfying them in
effective way. In case market is planned in appropriate way then it can attain its
objectives. Moreover, they have to examine the market first and its needs as well as
develop plans consequently. Thus, market requirements have to be undertakes while
developing plans.
Sales and productivity: It is significant by which Hilton Hotel can gain profitability and
income into competitive marketplace. They need to produce high quality goods and
services in their business for increasing sales and productivity. They should focus on
requirement of consumer and produce accordingly.
Planning Organisation’s Financial Management System: It is regarded as significant
part of business plan which means to allocate and divided resources into each and every
department for achievement of business results. Hilton Hotel need to focus on financial
management system so that there would not be any frauds, errors and others.
Planning the roles and responsibilities of staff and management: Hilton Hotel
requires both staff and management for proceeding activities, operations and functions of
business in proper systematic manner. In order to plan management and staff, their
responsibilities, roles and duties need to be identified and assigned properly so that they
can carry work of organisation. This includes assisting, checking, guiding and others.
Planning Performance Monitoring: This is the important business plan where
performance of staff and management of Hilton hotel should be evaluated. This can be
done through help of tools and techniques such as feedback form, 360 degree, appraisal,
and management by objectives and others. Therefore, this can helps in better result
achievement and improving staff as well as management for better performance.
M2 Evaluate how the effectiveness of areas of business can contribute to organisational growth
The effectualness of various area like marketing, sales, products or services, staffing and
many more can aids into growth of the company. As product or services are considered as USP
of firm that can allow customers to understand their products appropriately (Rudin and et.al.,
2014). Marketing assists in getting knowledge regarding several activities that are performed
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through enterprise as well as staffing aids them to develop effective relations with its guest and
customers. Thus, all these areas can aids to understand more about firm as well as its offerings
that leads towards organisational growth in context of income and profitability.
D2 Critically analyse how plans developed can lead to an improvement in the business
There are several planning that required to be performed through business like sales,
staffing, marketing, performance monitoring and many more. It is the planning that develops
both negative as well as positive effect to enterprise. In case planner examine requirement of
market appropriately as well as formulate planning undertaking its needs then they can simply
develop their business and attain its objectives. Likewise, if planning is done without examining
firm and its operations then they make development into business. Thus, for improving
enterprise, this is significance to formulate plan effectually.
TASK 3
3.1 Evaluate present skills of employees and management
Skill is classified as capacity and ability for performing activities in systematic and
sustained manner through efforts for carrying out in efficient, efficient and smooth manner. In
order to work in hospitality sector, different skills are required by individuals who are described
below:
Technical Skills: This is defined as knowledge and abilities which is required for
performing particular work. This skill is practical in nature and possessing information
about mathematical, scientific task, mechanical and technology. The examples of such
skills are mechanical, programming and software tools.
Operational Skills: This is defined as skills which are required by organisation for
managing their planned and unplanned tasks. It includes structure making skills, policy
deployment, daily operations management and others.
Managerial Skills: This type of skill is held by management of organisation for
managing various work and activities in an effective and efficient manner. The example
of such skills is planning, organising, directing, staffing, controlling, decision making,
problem solving and communication.
The different current skills required for management and staff of Hilton Hotel is as follows:
Management Skills: This includes:
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Planning: The management of Hilton Hotel requires planning skills in order to plan
various activities and work of business in systematic manner so that goal and
objectives can be achieved.
Organising: There are various activities and work which need to be planned by
management to grab various opportunities in market. With help of planning it can be
possible.
Staff Skills
Problem Solving: While running business in competitive market, various issues and
problems arise in business which needs to be solved through problem solving skills.
The staff of respective organisation should have such skills for current and future
problems of business.
Decision Making: There are various decisions which should be taken by staff to
achieve set goal and objectives. The decision making can be related with complaints,
issues of visitors and others.
3.2 Justify and devise plans for the improvement of skills for management and staff
In order to run organisation in competitive market, both management and staff should
focus on their skill improvement in order to achieve goal and objectives of business. Therefore,
plan has been prepared by Hilton Hotel in order to improve existing skills of management and
staff which is given below:
Learning
Objectives
Target
Proficiency
Development Opportunities Time
Scale
Planning 10 This can be developed by organisation through
planning various activities and functions of
business. They can read books, journals and
critiques for making better. They should be very
creative thinking and considering both past and
future perspective for planning any activities and
functions in business.
30 to 45
days
Organising 10 For organising skill, there are various books and
magazine available in market for users which can be
45 to 55
days

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learned by management. The manager should
organise each and every activities in proper manner
so that they can develop such skills in business to
get positive outcomes.
Problem Solving 10 This is the most important skill which is required by
staff in order to solve arise problem in organisation.
In order to improve such skill they can go through
books and take advice from senior and manager so
that they can come out with arise issue and
problems.
60 to 90
days
Decision
Making
10 In order to improve decision making skills of staff
they should be included at the time of decision
making in organisation. They can watch and learn
from their superior for taking effective decisions
which can provide benefits to both staff and
organisation.
75 to 90
days
Time
Management
10 Each and every activity should be performed on
time basis. This skill can be improved by
organisation through assigning work on time period.
This helps staff to perform given activities on
stipulated time. Therefore, they can also go through
time management books and manage their work for
each operations.
30 to 50
days
M3 Analyse effect current experience, skills and abilities of management and staff may have on
the business
With the capabilities, skills and experiences possessed through management of Hilton
Company that aids business in attainment of goals. The experience can assists them to do task in
more effective way. Likewise, management capabilities and skills can direct them as well as aids
to resolve any problems that rise within business. The employees have to play several roles and
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accountabilities that can assists them to obtain experiences through performing similar work
repeatedly and maximise capabilities and skills for another organisational activities. Thus, both
facilitate optimistic outcomes to enterprise for attaining the objectives of the business.
D3 Critically evaluate various methods that can be used to develop the skills of management and
staff of their chosen organisation
There are several methods that can be utilise by Hilton Hotel for improving their
management and employees skills which involves training, mentoring etc. with the assistance of
training, they can maximise its present skills as well as develop upcoming ability that is needed
into business. It has to be facilitated on regular basis for effective results so that objectives can
attain appropriately. Likewise, this training can drives to enhance stress for employees as well as
management due to performing into regular basis. This needs more time that can develop issues
while handling another management and staff work within company.
CONCLUSION
As per the above report, it has been concluded that hospitality industry is the leading into
market. This is very essential for firm to set goals for attainment of objectives. To get knowledge
regarding the external as well as internal influences upon business, SWOT and PESTEL analysis
has been performed. It can aid to understand the several factors for effective development. This
is significance for company to perform continuous improvement into its operations for existent
market. In order to make business effectiveness, many places have to be developed like finances,
products or services, staffing and so on. The respective firm have to develop business plan to
improve activities for accomplishing objectives. For operating the management activities both
employees as well as manager needs skills like decision making, communication etc into
hospitality industry.
RECOMMENDATIONS
For improving business and their activities and operations, there are some recommendations
that are provided to Hilton Hotel for better results. They are described below:
It is recommended to respective organisation to follow regulation and rules while serving
their consumers, guests, users in proper manner for enhancing goodwill and brand value
in market.
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It is recommended to do proper market research analysis for fulfilment of consumers
requirements.
Therefore these recommendations can help business to achieve their set goal and
objectives in competitive market. This can help to increase sustainability, productivity
and profitability.

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