Business Environment Analysis and Hilton Hotel Report - Semester 1

This report provides a comprehensive analysis of the business environment, focusing on the Hilton Hotel. It begins by defining the business environment and its impact on organizations, then explores different types of organizations, including public, private (Hilton Hotel), and voluntary sectors. The report delves into the size and scope of these organizational types, comparing their structures and functions. It examines the interrelationships between organizational functions and their contribution to achieving objectives within the Hilton Hotel group, highlighting the significance of departmental coordination. Furthermore, the report assesses the impact of the macro business environment on business operations through a PESTLE analysis. It also conducts a SWOT analysis to identify the internal strengths and weaknesses of Hilton Hotel, as well as external opportunities and threats. The report concludes by summarizing the interrelation of strengths and weaknesses with external macro factors, providing a holistic view of Hilton Hotel's position within the business environment.

BUSINESS AND BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
P1. Types and purposes of organisations with legal structures...................................................3
Wellcome Trust:..........................................................................................................................5
P2. Size and scope of different types of Organisation................................................................6
LO 2.................................................................................................................................................8
P3 Describe interrelationship between different organisational functions and how it connect to
achievement of objective and organisational structure. .............................................................8
LO 3...............................................................................................................................................10
P4 Assess the pros and cons of impact on macro business environment upon business
operation, support with the help of suitable example. ............................................................10
P5 Identify the strengths and weaknesses of the organisation conduct it internally and
externally with the help of example..........................................................................................12
P 6 Interrelation of strength and weakness with external macro factors...................................14
CONCLUSION..............................................................................................................................15
REFERENCES .............................................................................................................................17

INTRODUCTION
Business environment is collection of internal factors as well as external factors which
includes employees, customers, demand, supply, customers needs, management and clients that
affects the working of a business. Change in the technologies and new innovations also affects
the environment of business. Company need to survive in the market through adapting the
changes as soon as possible (Camillus, 2016). It is an essential aspect of business as it presents
the opportunities and threats in the market. It benefits the company by adapting changes easily,
identifying useful resources and helps in improving performance. Present study is based on
Hilton Hotel. It is a global brand providing major services in hotels and resorts under the flagship
brand of American multinational hospitality company Hilton. This project comprises of types of
organisations with their size, legal structure and classification. Advantages and disadvantages of
organisational functions with the impact that they can have upon organisational structure is to be
study. It consist of SWOT analysis on Hotel Hilton to identify the strengths and weaknesses of
the organisation. It also have a PESTLE analysis to identify the positive and negative impact the
macro environment has upon the business operation on Hotel Hilton.
LO 1
P1. Types and purposes of organisations with legal structures
The idea to put things together to form a logical order for a group of people to work
together for achieving a common objective. The reason behind long survival of organisation is
that people working together achieves more than a person who is working alone. There are
majorly three types of organisation public sector, private sector and voluntary sector (Rajala,
Westerlund and Lampikoski, 2016).
PUBLIC SECTOR
Definition:
Public sector organisations consist of organisations, agencies, enterprises and entities that
serves public programs and services controlled and funded by government and public. There are
four types of public sector organisations national, international, regional and local. International
are multi state entities and partnerships, national is an independent state, regional is a state within
a national state, local is a municipal level body as a city level (Kelman And et.al., 2016).
BBC – British Broadcasting Company:

BBC is a public sector organisation, which is a British public broadcaster. It is located at
Broadcasting house, London. It is the largest broadcasting organisation in the world with over
20,950 staff in total from which 16,672 are in public sector broadcasting. BBC is being
established under a Royal charter which operates under a agreement with the Secretary of state
for digital, sport, media and culture.
Purpose:
BBC's major purpose is to mission values and public purposes, which is to act in public
interest by serving all the audiences through the provision of the distinctive, high quality and
impartial outputs and services which inform, entertain and educate. Public sector organisations
basic purpose is to provide services like public goods and government services which includes
police, military, public education. It also emphasis on health care and for the people working
with the government itself (Hassim and Shamsudin, 2015).
Legal Structure:
Public sector organisations are separate from personal finances of the members. A public
sector organisation should have minimum of two shareholders. Minimum number of shares
issued to public should be valued to £50,000 or prescribed equivalent in euros before trading.
PRIVATE SECTOR
Definition:
Organisation operated for profit by any person, corporation, partnerships, agency or
association. Private sector includes all those organisations which are not being operated or
owned by government with the aim of profit. Private foundation is charitable organisation which
does not qualify as public charity. Private foundations derive their charity from private sources,
these cannot approach to public (Jonker and Stegeman, 2017).
Hilton Hotel:
Hilton hotel is a private sector organisation. It is a global brand working under the
flagship of brand of American multinational hospitality company. Hotel Hilton is one of the
largest hotel brands in the world. Hilton targeted both at business and leisure travellers with
location in major cities. They organises guest loyalty programs and plays a vital role in
hospitality industry.

Purpose:
Hotel Hilton's purpose is to fill earth with light and warmth of hospitality. There key
purpose is to be the first choice by the guests and team members. By the values being showed by
Hotel Hilton. Hotel Hilton is very much passionate to deliver a exceptional guest experience.
Hotel Hilton moves with a basic purpose of doing the right thing all the times (Rudnicka, 2016).
Legal Structure:
Private organisation is a type of joint stock company which is incorporated business
where the business has its own separate legal entity from owners. Private sector organisation
cannot accept deposits from public as it is a separate entity, it has to be financed privately as it
works on independent management. Non transferability of shares of a private sector organisation
and liability is limited up to a level(Legal structure: the basics, 2018.).
VOLUNTARY SECTOR
Definition:
Voluntary sector is comprised of those organisations whose purpose are to benefits and
enrich society without any profit as a motive and with a little government involvement or no
involvement of government. Voluntary sector is not like a private sector organisation as it does
not involve profit making, if the profit is being generated then it is invested back into the
community or organisation back (Goldman and Bounds, 2015).
Wellcome Trust:
Wellcome trust is Voluntary organisation based in London. Wellcome trust was
established in 1936 to fund the research to improve health of animals and humans. It funds the
biomedical researches also which supports the public understandings of science. Wellcome trust
endowment was £25.9 billion in the year 2018 which makes it the fourth wealthiest foundation
in the world.
Purpose:
The main purpose of Wellcome trust is to achieve extraordinary improvements of health
by supporting the brightest minds. Wellcome trust works in addition to fund biomedical research
which supports the public understandings of science (Wu, 2018).

Legal Structure:
There are majorly three main legal structures used by voluntary sectors which is an
unincorporated association, a company and a trust limited by guarantee. The structure is ideal for
a small group with memberships, low incomes and short term goals. Voluntary organisation
cannot acquire property or intend to employee staff.
P2. Size and scope of different types of Organisation
BASIS PUBLIC SECTOR
(BBC)
PRIVATE SECTOR
(Hotel Hilton)
VOLUNTARY
SECTOR
(Welcome Trust)
Company Information BBC (British
Broadcasting
corporation) is as type
of public sector
organisation which is
the worlds oldest
national broadcasting
organisation. The total
number of staff
working as part time,
flexible and fixed
contract staff is 35,402
(Riesener and et.al.,
2019). This shows that
the it is a huge
organisation dealing
with huge number of
clients. BBC operates
several number of
wholly owned
commercial divisions
like BBC Studios,
Hilton Hotel is a type
of private organisation
which deals in
hospitality services. It
haves 586 hotels
worldwide which
shows the connectivity
of the group. Its 5869
hotels were having
215,263 rooms in 85
countries and
territories across 6
continents. These
includes 66 properties
which are owned and
leased with 20,264
rooms, where as 276
are managed with
119,594 rooms, 244
hotels are franchised
with 75,765 rooms.
Wellcome Trust is a
type of voluntary
organisation which
was established in
1936 to fund the
research to improve
health of humans and
animals. In addition, it
is funding biomedical
research it supports the
public understandings
of science. The trust
has been described by
the financial times as
UK's largest provider
of non-government
funding for the
purpose of scientific
research, which was
one of the largest
provider in the world.

BBC world news,
BBC Studioworks.
Mission BBC's mission is to act
in the public interest
with serving the
audience through
provision of
distinctive, impartial
and high quality
output and services
that educate, inform
and entertain.
The mission aimed by
Hotel Hilton is to fill
the earth with light and
warmth of hospitality
by being the first
choice of guests and
team members
(Genovese and
Tvinnereim, 2018).
The mission of the
organisation is to help
the human beings by
improving there health
through funding the
researches on
improving human and
animal health.
Objective BBC has aimed
mainly at quality and
distinctiveness while
serving all audiences.
The service provided
by the organisation
should be value for
money. Openness and
transparency to be
provided to
consumers.
The main objective of
Hotel Hilton is to
promote the hotel
industry and to protect
lawful rights of
members. It also aims
at raising the standards
of hospitality service
by interchanging of
personnel, assistance
in staffing of hotels.
The aim of Wellcome
trust is to achieve
extraordinary
improvements in
health by supporting
the brightest minds.
The trust is supporting
with its full of
potential to achieve its
objectives.
Market Size As per BBC's annual
report, total income
generated in year
2013-14 was £5.066
billion.
Hilton Hotels annual
revenue for 2018 was
$8.90 Billion which
was a 9.53% increase
from 2017.
Organisation with an
endowment of £25.9
billion in 2018, it was
the fourth wealthiest
charitable foundation
of the world.

Legal Structure Minimum value of
shares issued to public
must be £50,000.
Public sector
organisation are
separate from personal
finances of the
members. There must
be at-least two
shareholders to start a
public sector
organisation (Levina,
2015).
Private sector
organisation cannot
accept deposits from
public, it has to be
financed privately as it
works on independent
management. Shares
of a private
organisation are non
transferable. Limited
liability of the
organisation.
Voluntary organisation
is an incorporated
association, trust and a
company limited by
guarantee. It cannot
acquire any kind of
property and not
allowed to employ
staff.
LO 2
P3 Describe interrelationship between different organisational functions and how it connect to
achievement of objective and organisational structure.
To achievement the objective of Hilton hotel group the working of different departments
in synchronisation and systematic manner plays vital role in success of Hilton hotel. The success
of organisation depends on the interrelation of different organisational functions with each other
functions. All the department coordination and collaboration helps to make strong team and work
towards the achievement of organisational goal. Hilton hotel follows tall organisational structure;
information gets exchanged between departments easily but has some barriers. There is different
levels and lower level employees cannot coordinate with higher authorities easily which
improves relationship between them and people retain in the firm for longer duration.

Figure 1: structure of Hilton hotel
(Source: Organizational chart Hilton Hotels & Resorts Corporation - Hilton Hotels Resorts,
2019)
The different relation of organisational functions will be discussed as follows:
MARKETING DEPARTMENT relates to PRODUCTION DEPARTMENT: The role of
marketing department is to collect information of services provided by Hilton hotels from its
customers about quality of food, room services, affordable prices, any facilities that is not
available to its customers. In return product department customises its services with the given
information by the marketing department (Shinnar and Siméon, 2016).
With collected information product department knows about quality of services to be provided
with improvisation in services to its customers. The survey made by marketing department helps
production department to provide all the facilities which it lacks behind and try to full fill by
production department in Hilton hotel. The objective of Hilton hotel to provide highly
competitive prices to its customers and give discounts in off season sale for 35% off can be
achieved. The tall structure which is followed by the organisation helps to increase the flow of
information from higher authority to lower authority with flexibility it follows the flat

organisational structure. By this way marketing unit can inform to production department and
overall production ability of company can be improved.
HUMAN RESOURCE DEPARTMENT relates to RESEARCH AND DEVELOPMENT
DEPARTMENT: HRM department helps to increase the accuracy in employees of any
department in the Hilton hotels. HRM department provides training, recruitment, performance
appraisals to employee of department increases the efficiency of employees it helps to full fill the
requirement of the R&D department (Camillus, 2016).
Research and development in Hilton hotel focuses on providing better facility to customer by
searching innovative ideas, luxury comforts, hotel trips, checking quality of services and
controlling the product. In Research and development department the overall performance of the
organisation are seen. HRM department helps to increase the performance of the employees and
in return research and development department grows when the employees are able to provide
what the R&D department of Hilton hotels needed. The objective of Hilton hotel by 2020 is to
hire more than 20000 veteran in the hotel and target is to create urban innovative trends in the
hotels.
To open its hotel in Dubai and expand its branch in other countries with introduction of
innovative ideas by employee in Hilton hotels. The tall structure of the company is more
communicative from HRM to R&D department it helps to increase the productivity from
employees and in return the better performance by employees helps to increase overall
performance by organisation (Goldman and Bounds, 2015).
FINANCE DEPARTMENT relates to HRM DEPARTMENT: finance department focuses on the
finance that is given to HRM department for employee and it engagement in the Hilton hotels the
finance has direct relationship with employee when finance provided to HRM is for employee
the morale of employee also decreases vice versa happens when finance for employee is more it
automatically boosts the morale of employee. HRM department focuses on the improvement in
performance of employee with the help of finance department.
As HR manger makes strategic goals for employee to qualify personnel investments for
employees. Both HRM and finance department work as a business partner in an organisation it
helps to understand human resorce and the business with proper perspective. HRM departments
learns to collect data from the employee and reports it to finance department.

The objective of the Hilton hotels is to increase the performance of employee by providing
incentives, bonus, perks to motivate them to work hard and increase their moral. The structure of
Hilton hotel is tall in which the flow from finance to HRM and reverse of it helps to take
organisation towards its success. In Hilton hotels the proper channel of communication is
followed to which helps the HRM department to get connected with employee and finance
department keeps collaboration from time to time with the HRM department (Riesener and et.al.,
2019).
LO 3
P4 Assess the pros and cons of impact on macro business environment upon business operation,
support with the help of suitable example.
Hilton hotels faces operating challenges other than competition in macro environment
which can be assessed with the help of PESTLE analysis.
POLITICAL FACTOR: Hilton hotel is worldwide famous hotel the operating of the hotel is
more than twelve countries. The political factor in different countries are not similar the positive
and negative impact to Hilton hotels. The taxation in country impact negatively on the hotel
working economy as the hotel taxes are charged very high in some countries which causes the
hotel to get services at higher rates and decreases its customer attraction towards the Hilton
hotel . Positive impact to the hotel is that if government introduces the free trade policy for the
hotel can increases its export import easily which helps the hotel to grow faster and increases its
ability to earn more profit (Wu, 2018).
ECONOMIC FACTOR: At macro level the factor which influence business are as inflation rate
in the country, saving rates, foreign exchange rate, etc. The pros of one of these factor on the
Hilton hotel is presence of skilled level of work force in the country. Skilled worker helps the
hotel to provide innovative and creative view in the working style of the Hilton hotels. The
skilled workers are essential and human capital to the company which will increases the profit of
the company in less time. The negative impact to the hotel for skilled work force will be the
demand to pay higher salary for the talented workers. Which will impact the Hilton groups to
hire talented and skilled work force from other country which will delay in taking decision
regarding recruitment from other place and company had to provide special incentives to the
employee hired from other country (Genovese and Tvinnereim, 2018).

SOCIAL FACTOR: The social factor deals with the society beliefs and their attitude play an
important role in marketing of Hilton hotels. One of the factor can be considered is education
level in the country. The negative impact of the education on the Hilton hotels can be, if the
society is less literate the people are not attracted towards the luxury life they will not spend the
money on the hotels. The positive impact of education can be if the people are highly literate
they will automatically increase the standard of the society which will impact positive attitude of
people toward the Hilton hotels (Rudnicka, 2016).
TECHNOLOGICAL FACTOR: In the era of technological advancement taking faster in the 21st
century the changes have great impact on the development of the Hilton hotel and groups. One of
the factor in technological changes can be increase in demand of advancement in technology
with the dynamic environment competitor are moving toward the advancement. The pros for this
factor can be due to increase in the competition of adopting best and highly advance technology
the Hilton hotel will also adopt changes in its technology and will improve the technology to
attract the customers and the revenue will be increases. The negative impact of technology
adopted by the competitor will lead to increase the budget for up-gradation in technology due to
this the company has to invest huge amount on the technology (Camillus, 2016).
ENVIRONMENTAL FACTOR: Hilton hotel should carefully know the environmental factor of
the place where the has been established. The factor can be recycling of the waste materials. The
pros for Hilton hotels will be that the recycling of the waste material can be used again by the
hotel and it can make the use of resource with the fullest form and to optimum utilisation of
material which will increase the efficiency of the hotel. The cons for the Hilton hotel will be that
it will increase the expenses of recycling which will cause the hotel to invest its time, money and
labour to control the recycling unit.
LEGAL FACTOR: The legal framework are important for the Hilton hotel to look on while
entering in business framework the property rights of organisation should be carefully analysed.
The impact of one of these factor can be the consumer protection law and e-commerce. The
negative impact consumer protection act will be the company has to design the infrastructure
according to the needs of the consumer which will increase the cost for the company to maintain
the according to the customers (Rudnicka, 2016). The pros for consumer law and e-commerce
can be that if consumer gets satisfaction from the facilities being provided it will increase the
customer to get attracted towards the hotel.