Business Health Check Report: Analysis of Hilton Hotel's Performance

This report provides a comprehensive business health check of the Hilton Hotel, a leading multinational hospitality company. It begins by analyzing Hilton's objectives, mission, and vision, followed by an examination of internal and external factors impacting the business using the PESTEL and SWOT models. The report explores potential improvements to the organization and its operations, including market penetration and development strategies based on Ansoff's Growth Matrix. It also reviews the effectiveness of the business, proposes plans for improvement, and evaluates the current skills of management and staff, suggesting plans for their development. The analysis covers both short-term and long-term objectives, considering political, economic, social, technological, environmental, and legal factors. The report concludes with recommendations for Hilton to enhance its market position and achieve its objectives, including the importance of adapting to changing customer preferences and leveraging new technologies.

Business Health Check

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Analyse objectives of the business........................................................................................3
1.2 Explain factors that impact on business...............................................................................4
1.3 Determine potential improvements to business organisation and/or operation....................6
M1 Analyse how objectives of chosen organisation meet the ‘SMART’ criteria of
organisational objectives.............................................................................................................7
D1 Analyse how elements of Ansoff’s Growth Matrix have contributed to improvements to
their chosen organisation.............................................................................................................8
TASK 2............................................................................................................................................8
2.1 Review the effectiveness of business....................................................................................8
2.2 Develop plans to improve the business, justifying their value..............................................9
M2 Evaluate how the effectiveness of areas of business can contribute to organisational
growth.......................................................................................................................................11
D2 Critically analyse how plans developed can lead to an improvement in the business........11
TASK 3..........................................................................................................................................11
3.1 Evaluate current skills of management and staff................................................................11
3.2 Devise and justify plans for the development of skills for management and staff............12
M3 Analyse effect current experience, skills and abilities of management and staff may have
on the business..........................................................................................................................14
D3 Critically evaluate various methods that can be used to develop the skills of management
and staff of their chosen organisation.......................................................................................14
CONCLUSION..............................................................................................................................14
RECOMMENDATIONS...............................................................................................................15
REFERENCES..............................................................................................................................16
.......................................................................................................................................................17

INTRODUCTION
Hospitality sector is defined as category of different field of service industry which
includes food and drink, lodging, accommodation, transportation, travelling and others
(Abdelhak, Grostick and Hanken, 2014). This is liable for providing accommodation and food
services in different places like resorts, hotels, amusement parks and others. It is the fast growing
sector in market which help nations to increase their economic and profits. There are various
services which are included in this sector for their users, visitors and guests (Arntz-Gray, 2016).
The organisation chosen for given assignment is Hilton Hotel which was founded in 1919 at
United States. It provide full service of resorts and hotel in effective manner to their users and
customers. This has 586 hotels having 215263 room in 85 countries which crosses 6 continents.
This is largest hotel brand in world which has targeted both leisure travellers and business in
different locations. The main aim of this report is to analyse objectives, mission and vision of
chosen organisation. The internal and external factors impact has discussed with help of theories
and model. For improving impact, potential improvement should be done. It also highlights
effectiveness of business and plans for improving it. The management and staff skills are
explained along with their impact on business.
TASK 1
1.1 Analyse objectives of the business
Hilton is a leading multinational hospitality company with best service provider in
industry. This company was founded by Canrad Hilton in 1919 and its headquarters are located
in Virginia, US. This company is a global brand which provide full services in hotels and resorts
worldwide with more than 4,500 hotels, resorts.
Objective- The short term objectives of Hilton is to provide best hospitality services by
raising the standard through interchange of personnel and assistance in staffing of hotels. The
long term objective of Hilton is to reduce energy consumption from direct operations by 20%
and reduce output of waste and water.
Mission- Hilton company mission is to be become most hospitable company in world by
creating heartfelt experience to its guest and provide high quality services in order to keep high
positive impact.

Vision- Its vision is to deliver exceptional experience to every guest every time to fill the
earth with lights and warmth of hospitality services.
1.2 Explain factors that impact on business
This organisation have to deal with various internal and external factors of environment
(Brown and et. al., 2014). These factors have positive and negative impact on Hilton company
services. In order to analyses macro environment of Hilton, PESTEL model is used. It can serve
company as strategic analytical tool which helps in identifying potential effect of external
environment on Hilton long term growth and profits.
Political factor- This factor can be consider as a key of success of company as Hilton
company have hotels and resorts in many countries and business needs to cope up with each and
every political situations in the world. Political factors of Hilton consist of political stability,
legal framework for contract enforcement, intellectual property protection, taxation policies,
trade regulation etc. these factors can influence number of visitors to hotels both tourists and
business travellers in that country. Company have to analyse different types of political
environment which can have impact on business functions and risk from political environment
that influence customers in that nation.
Economical factor- This factor refers to GDP growth of a nation or adverse currency
movements on country. Hilton have to consider these factors before taking any business
decision related to its operations. Company have to evaluate factor of macro environment such as
inflation rate, interest rates, foreign exchange rate and economic cycle of country which
determine aggregates demand and requirement of investment in economy. Hilton have to
consider economical factors to have competitive advantage by providing different and better
quality services that its competitors. Skill level of workforce and cost of labour in economy of
country will also have impact on overall functioning of Hilton hotels.
Social factor- Social factors includes society culture and attitude or belief of people
towards hospitality industry will also have impact on Hilton company profitability. These micro
environment consist of demographics or skill level of population, educational level, cultures,
social conventions, environmental consciousness in particular society (Chadwick and et. al.,
2012). All these factor can have positive as well as negative impact on business functioning.
Society where people interest is shifting towards travelling can leads to profitable for company

as it is an opportunity for company to provide high quality services to guest and attract more
customers to hotel.
Technological factor- In today's world of fast and innovation technology, every
company is focusing on getting and using updated technology for its business. Hilton can also
provide its services by using new and innovative technology for improving customer satisfaction.
Technological factors includes new trends in technology which helps in providing more
qualitative services to customers. Hilton hotels and resorts should use updates technology in its
rooms and restaurant to attract customers and ease of customers. Technology used by Hilton
competitors will also have impact on company as more modified technology used in competitors
offering will have negative impact on business.
Environmental factor- Environment in which company is operating its hotels and resort
will have direct impact on its survival and growth (Chang and et. al., 2016). Hilton company
have its hotels and resorts in various counties and different market. So companies have to operate
in different norms and deal with different environmental standards which effect profitability of
company. Macro environment such as weather, climate change, environment laws and
regulation, pollution, endangered species waste management are refers to environmental factors.
Hilton company should consider all these factors as company is taking resources from
environment so it is responsibilities of company to not harm natural resources and maintain
environmental in good conditions.
Legal factor- This factor is consider as all laws and regulations set by government as
well as legal authorities of nations and society (Ghaddar and et. al., 2012). It includes anti-trust
law, discrimination law, consumer protection law, employment law, health and safety law etc.
Hilton needs to follow all these laws of country in which they are operating. Company have to
analyse and evaluate that law to particular country will provide proper protection to employees
and business operation as well as company is also responsible for maintaining security of guest
and customers in hotel and resorts.
In order to analyse internal factors of Hilton group company SWOT analysis is used.
SWOT refers to strengths, weakness, opportunities and threats of company.
Strength- Hilton hotels is leading in its industry which have high brand recognition. Its
hotels and resorts are using new and innovative technology which help creating and improving
customers experience with constant upgrade of business process and staff. It serve customers

with best and experience staff which helps in building strong as well as positive relationship with
guests. Hilton hotels provide various effective customers schemes to retain them and his leads to
successful increase in loyal customers of Hilton group. This company have varied variety of
room chain with high level of services customatisation and technological integration is rooms of
hotels.
Weakness- This company have little or limited market share in-spite of having good
brand and large portfolio of its brands (Goins and Pye, 2013). This company is one of the leading
and best services provider in hospitality industry but it has less market share which is a weakness
for Hilton. Different legal and political factors affect overall profitability of business as it is
located in many countries so it have to deal with all rule, regulation and policies of different
countries. So operations of Hilton are affect dues to government policies and instability of
political parties also have negative impact on company.
Opportunity- Company can use advantage of new and innovative technology in its
business operations as innovation in Hilton services will help in attracting customers towards
company and satisfaction needs of guests. It is an opportunity for Hilton group company to
attract high potential customers in emerging market. Company can various digital sources of
promotion of services in more creative way with the use of social media and other online sites.
Hilton can also introduce new affordable section for middle level customer.
Threat- Hilton company have various threats from change in taste of customers as it will
directly effect business profitability and operation. Customers are always looking to explore new
things for their experience so it is very important for company to provide new offering to
customers (Hyppönen, Hämäläinen and Reponen, 2015). Drastic changes in macroeconomic
factors can have negative impact on Hilton hotels functioning and operations. Hotels also have
threat from Terrorism and ethics related issues in internal environment of company. Strategies
used by competition of Hilton hotels can have harmful impact on company.
1.3 Determine potential improvements to business organisation and/or operation
It is refers to framework of different strategies which Hilton company can use in its
decision making. These strategies will help business to identify best suitable strategies for
organisation growth, improvement and profitability. Different strategies for Hilton group is
mention below.

Market penetration- In this strategy company focus on getting more profits by servicing
same products and services in current market area (Laws, 2015). Market penetration refers to
those strategies where business seeks to achieve growth with use of existing products in existing
market in order to attain more market share in current area.
Market development- For market development company needs to expand its services
into new market area. In this strategies Hilton company can develop strategy which helps
organisation to enter into new market area with existing product and services. By this strategies
company can target new customers
Product development- In product developing company needs to develop new and
innovative products to service in existing market area. Hilton should updates and modify its
products and services according to needs and requirement of customers.
Diversification- In this strategies Hilton company will focus on providing new products
and services to new market place. Diversification refers to move into new market area with new
products and services in order to increase sales and profits of company. For this strategies Hilton
will introduce new and creative products to satisfy needs and requirement of customers of new
market (Lehto and et. al., 2012).
Hilton should use market penetration strategy and focus on serving existing market area
with current product and service. Company is already offering wide range of offering to
customers but customer does not have knowledge about it. Hilton should improve its marketing
strategies to attract more customers towards business. For this company can use different type of
marketing and promotion tools.
M1 Analyse how objectives of chosen organisation meet the ‘SMART’ criteria of organisational
objectives
The objectives set by organisation is to reduce energy consumption from direct
operations by 20% and reduce output of waste and water. This can be achieved by providing
proper training and development to their staff for reduction of water at respective organisation.
For waste reduction, they should be provided training session for knowing impact of pollute
environment to our health and society. Therefore, in order to achieve SMART criteria of
organisational objectives work should be performed in step format so that set target can be
achieved effectively and efficiently. For meeting objectives of business, it should be made in
SMART way.

D1 Analyse how elements of Ansoff’s Growth Matrix have contributed to improvements to their
chosen organisation
The elements of Ansoff's Growth matrix helps in improvement to Hilton Hotel which can
provide lots of benefits to it. In market penetration, Hilton Hotel can provide existing products
and services in existing market in better style. In case of product development element,
respective organisation can add more new products for existing market to fulfils their
requirement in proper manner. In order to increase and enhance market share and profit, Hilton
Hotel need to enter into new market with same existing products which is called market
development. In case of diversification strategy, they can come in new market with new products
where they can add features of customisation for every products and services. Therefore, in this
way, Ansoff's Growth Matrix can contribute to improvement of Hilton Hotel in effectual manner.
TASK 2
2.1 Review the effectiveness of business
Business effectiveness is defined as efficiency of organisation for achievement of goals
and objectives. It means organisation has produce effective production without any waste and
damage. Effectiveness in business is the level of quality through which process or activities is
carried out for higher business performance (What is Effectiveness, 2019). This is also regarded
as capacity of business for producing desired outcomes with minimum time, cost, material and
human resources. Here, effectiveness of business means individual working in organisation
doing well with high efforts. It is responsibility of manager to review effectiveness of business in
proper manner so that set goal and objective can be achieved in better way. There are different
areas which help Hilton Hotel to know that effectiveness of business has been achieved or not.
Some of areas which are included in effectiveness of business are as follows:
Product/Services- In order to business effectiveness, it is responsibility of Hilton Hotel
to provide high quality of products and service to their visitors, guests and users. The product can
be related with good quality of room, facility of Wi-Fi, cleaning and laundry, food, proper
bedding and other (Lencioni, 2012). Similarly, service includes timely delivery of food at room,
parking and others. It is very important for hotel industry to provide high quality products and
service to their users for running business effectively and efficiently.

Marketing- It is the most important area of service industry which helps in building
relationship with their consumers for effective outcome. In order to make business effective, it is
responsibility of Hilton Hotel to do proper marketing of their organisation. They should focus on
creating relationship with visitors and satisfying their requirement in proper manner so that they
can come again and avail services. Therefore, with help of this areas, respective organisation can
accomplish their goal and objectives in proper manner.
Sales- This is the essential area of Hilton Hotel in order to increase profit and sales.
There are various role of sales manager to perform in business such as proper market research,
advertising, promotions, sales correspondence, service, packaging and others. In order to make
effective, need and requirement should be fulfilled by analysing market. The market research can
help to know more about consumers and their demand (Lundén and et. al., 2014).
Finances- This area is the life blood of Hilton Hotel where proper allocation of funds is
performed for all department and section so that work can be carried out effectively and
efficiently. The finance manager of respective organisation need to allocate money in sales,
promotion, marketing, staffing and others for effectiveness of business. If firm in running their
work and activities in effective and efficient manner then they can easily achieve their goals and
objectives.
Staffing- They are overall responsible for achievement of goals and objectives. In order
to create effectiveness in business, Hilton Hotel should hire skilled and capable staff for their
organisation for carrying work and activities effectively. They should be provided with training
and development for enhancing and improving their weaknesses. They should be encouraged and
motivated in terms of incentives, bonus, rewards so that they get attached to organisation and
work for longer period of time.
2.2 Develop plans to improve the business, justifying their value
Business planning is defined as written document which is designed in order to provide
sufficient and accurate information about existing or new firm. It describes business nature,
marketing and sales strategy, financial background and projected profit and loss statement
(Business Plan, 2019). This is regarded as future road map of any organisation which helps in
providing direction to them for achievement of goal and objectives. This business plan consists
of different components such as: industry overview, market and competitive analysis,
management, operating and financial plan. Every organisation require business planning for

carrying out their operations and activities. Hilton Hotel should make planning on various areas
of their organisation and guide manager, employees to follow it. The different areas where
respective organisation need to make business planning are as follows:
Planning Marketing- Hilton Hotel should make planning for marketing where they
should focus on creation of relationship with visitors and satisfying them in proper manner. If
market is planned in proper manner then they can achieve their goal and objectives. They should
analyse market first and their requirement and make planning accordingly. Therefore, need and
demand of market should be considered while formulating plans (Philbin and Kennedy, 2014).
Sales and Productivity- This is the important through which Hilton Hotel can earn profit
and revenue in competitive market. For planning of sales and productivity, the planner should
firstly focus on quality of products and service which they will provide to consumers. This also
include requirement of consumers for buying of products. Therefore, if both quality and
requirement is fulfilled then sales and productivity can be high with best planning.
Planning the Organisation's Financial Management System- It is life blood of
organisation which requires expertise to plan financial statement and budgeting of organisation.
The finance manager of Hilton Hotel need to make planning in such a way that each and every
department and section should get required funds for carrying out their activities so that goal and
objectives can be achieved.
Planning the Roles and Responsibilities of Staff and Management- The organisation
require both staff and management for running their business and activities in proper and
effective manner. While making planning for staff and management, their roles and
responsibilities should be allocated properly so that they can work in effective manner. There are
various roles and responsibilities of staff and management such as guiding, checking, assisting
and others.
Planning Performance Monitoring- There are various tools such as feedback, 360
degree appraisal, management and objectives which should be used by Hilton Hotel for
measuring performance of their employees and staff (Porter and Tanner, 2012). While doing
planning for performance monitoring such tools and techniques should be included so that
overall performance can be evaluated and accordingly training and development can be
provided.

M2 Evaluate how the effectiveness of areas of business can contribute to organisational growth
The effectiveness of different areas such as product, service, marketing, sales, staffing
and others can help for growth of business. As product and service are regarded as Unique
Selling Proposition (USP) of organisation which can let user to know about goods. Marketing
helps in knowing about various activities performed by business and staffing can helps to build
relationship with their users and guests. Therefore, these areas can help consumers to know more
about organisation and their product and services which leads to organisation growth in terms of
profits and revenues.
D2 Critically analyse how plans developed can lead to an improvement in the business
There are various planning which need to be made by business such as marketing, sales,
productivity, organisational financial management systems, performance monitoring and others.
This planning create both positive and negative impact to business. If planner analyse need and
demand of market properly and make planning considering their requirements then they can
easily improve business and achieve their goal and objectives. Similarly, if planning is made
without analysing organisation and their activities then they make improvement in business.
Therefore, in order to improve business, it is very essential to make planning very effectively and
efficiently.
TASK 3
3.1 Evaluate current skills of management and staff
Skill is defined as capacity and ability through which systematic, sustained and deliberate
efforts for adaptively and smoothly carrying out task (Robson and et. al., 2017). This is to carry
out work for determined results within given energy or time. There are various skills required in
service industry which are as follows:
Technical Skills- These are defined as knowledge and abilities which are needed for
performing particular tasks. This type of skills is practical in nature and related to information
technology, mechanical, scientific and mathematical task. The examples of technical skills are
knowledge of programming language, mechanical tools and equipments (Saaty and Vargas,
2013).
Operational Skills- It is called operational leadership skills which shows interactive
delivery model that allows leaders for developing practical solutions to challenging situations

faced by working environment whether planned or unplanned period of change. It includes
organisational structure making skills, policy deployment, daily operation management and
others.
Managerial Skills- This is defined as skills which is required within manager of
organisation. There are various skills which are needed for manager such as planning,
organising, staffing, directing, leading, controlling, communicating, decision making and
problem solving (Thorat and Neuman, 2012). The manager are overall responsible for carrying
out various activities of business for making success and growth of firm.
The different current skills required for management and staff are described below:
Decision Making- This skills is required for management and their manager of Hilton
Hotel in order to make best decisions for given task. There are various decisions which should be
taken and made by high level authority in order to accomplish and attain goal and objectives of
business. It should be made analysing past and future requirement so that if any changes occur
then it can easily adopt it.
Problem Solving- The management of Hilton Hotel should be able to encounter
problems at work place and provide accurate solution for result achievement. This skills is
required for manager who is managing business and its activities and operation so that goal and
objectives can be accomplish.
Time Management- This skill is required for staffs working in Hilton Hotel because
there are various work which should be performed by them on given time period. They need to
manage their time for each and every work which are assigned to them in effective and efficient
manner.
Communication Skills- For communication with customers, visitors, guests, the working
staff at Hilton Hotel requires good communication skills for achievement of goal and objectives
of business. This can help them to understand their guests need in proper way and fulfils their
requirements (Tong, Song and Zhu, 2013).
3.2 Devise and justify plans for the development of skills for management and staff
In order to run business in effective and efficient manner, there are various skills which
are required for management and staff of business. This can help them to perform various
activities in proper way so that goal and objectives can be achieved. The outline plan for
development of future skills of management and staff at Hilton Hotel are as follows:

Learning
Objectives
Target
Proficiency
Development Opportunities Time
Scale
Planning Skill 10 There are various planning which need to be made
in organisation by management. For this, planning
skill is required by manager to plan all activities and
work in proper and effective manner. The important
plan should be at top list and less at down level.
60 to 75
days
Risk
Management
10 Organisation is operating their business in
competitive market which is full of risk. In order to
avoid those risk, management requires such skills to
work efficiently in business. They should make plan
for future risk in present by analysing market and
their requirement.
75 to 90
days
Teamwork
Management
10 This skill is very important for staff as each and
every employees work together for achievement of
goals and objectives. They possess teamwork
management skill in order to work with their
colleagues and subordinates. This helps in providing
effective outcome for assigned work and use of
ideas from different person in accomplishment of
given task.
30 to 45
days
Self
Management
10 This skill means managing of work and activities
assigned to staff by themselves in appropriate
manner. It is future skills which is needed in staff
for carrying out various work and activities. There
are assigned with different work should be
manageable by themselves for achievement of goals
and objectives of business.
20 to 45
days

M3 Analyse effect current experience, skills and abilities of management and staff may have on
the business
With the experience, skill and abilities possessed by management of Hilton Hotel can
assist business in achievement of goal and objectives. The experience can help them to perform
work in more better manner (Uronen and et. al., 2017). Similarly, skills and abilities of
management can guide them and help to solve any issue arise in business. The staff has to
perform various role and responsibilities which can help them to gain experience by doing same
work again and again and enhances skills and abilities for other activities of organisation.
Therefore, these both provide positive results to business for accomplishing and attaining
business goals.
D3 Critically evaluate various methods that can be used to develop the skills of management and
staff of their chosen organisation
There are various methods which can be used by Hilton Hotel for developing skills of
management and staff that includes mentoring, coaching and training. With help of training they
can enhance their current skill and improve future competence which is required in business
(West and Dawson, 2012). This should be provided on frequent basis for better outcome so that
goal and objectives can be accomplished effectively and efficiently. Similarly, this training can
leads to increase stress for staff and management because of conducting on frequent basis. It
requires lots of time which can create problems in managing other work of management and staff
in organisation.
CONCLUSION
From above report, it can be summarised that hospitality sector is the largest growing
industry in market. It is very important for organisation to set objectives for achievement and
accomplishment of goal. In order to know about internal and external influence on business,
PESTLE and SWOT analysis has been done. This can help to know about various factors for
better improvement. It is very important for organisation to do continuous improvement in their
activities and operation for existing in market. For making business effectiveness, various areas
should be improved such as marketing, sales, staffing and others. The respective organisation
should make business plan for improving operation in order to achieve goals and objectives. In

order to be run management activities and business, both manager and staff are required skills
such as communication, decision making and others in hospitality sector.
RECOMMENDATIONS
There are some recommendations which are provided to respective organisation for better
achievement of goals and objectives. They should follows proper rules and regulation of
hospitality sector in order to provide goods and services to consumers, visitors, users and other
which helps in creating brand image and goodwill of business in market. It is also recommended
to organisation to analyse market properly in order to know about changes need and demand of
consumers so that they can implement it in their business for sustaining and growing in
competitive market. It is also recommended to organisation to modify their products and services
for providing to their services users according to their requirement. This can create value for
business to avail same hotel and its services. Therefore, these all provided recommendation can
help to increase profits, sustainability and growth in competitive market.

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