Business Environment: Types, Analysis, and Hilton Company Review

This report provides a comprehensive analysis of the business environment, encompassing different organizational types—public, private, and voluntary—and their legal structures. It examines the relationship between organizational functions, structure, and objectives, using the Hilton company as a case study. The report delves into the positive and negative impacts of the macro environment through SWOT and PESTLE analyses, evaluating Hilton's internal strengths and weaknesses in relation to these external factors. Key areas include the National Health Service, Hilton Hotels, and the Youth Hostel Association, exploring their business objectives, vision, mission, products, services, size, and scope. The analysis also covers marketing, finance, HR, and operations within the context of the business environment.

Business And The
Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1: Different Types and Purposes of an organisation and their legal purposes .........................1
P2: Size, Scope and Range of different types of organizations .................................................2
TASK 2............................................................................................................................................5
P3) Study the relationship between various organizational functions and link it with
organizational structure and objectives. .....................................................................................5
TASK 3............................................................................................................................................6
P4) Examine the Positive and negative side of the macro environment with examples on firm.
.....................................................................................................................................................6
TASK 4............................................................................................................................................8
P5) Conduct internal and external analysis on Hilton company also find strengths and
weakness of it. ............................................................................................................................8
P6) Explain how are strengths and weakness of Hilton company are interrelated with the
macro factor. ..............................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business Environment comprises of all the external and internal factors that can effect the
workings of an organisation. There is a relationship between external and internal factors of
business environment which suggests that one can have impact on other. It is crucial to
understand relationship between these factors and an organisation in order to know the future of
an organisation. Business Environment includes three different types of organisations Public,
Private and Voluntary Organisation. This report will carry their vision, mission, purpose and
legal structure. Other than that, positive and negative influences carrying out in the macro
environment that have an impact on the organisation will be studied through SWOT and
PESTLE analysis (Goss, 2015).
TASK 1
P1: Different Types and Purposes of an organisation and their legal purposes
Business Environment carry out three different types of organisation. These are:
Public Organisation refers to organisations whose ownership lies in the hands of general
public. These organisations are taken care by government bodies and the profit generated from
these organisations goes for welfare, growth and development of people.
Legal Structure of Public Organisation consist of three stages, namely, state government,
local government and central government. Every decision has been distinguished according to
these stages. Public Organisations working under which government body, seeks the necessary
help from the respective body.
Private Organisations
Private Organisations refers to organisations whose purpose of existence is to maximise
their profits. These organisation is mostly owned by a sole proprietor who manage to do their
business in order to earn more, but, the main difference is that these organisations operate on
large scale and sole proprietor may work on a small scale (Crane and Matten, 2016).
Legal Structure of these organisations defines them as a separate legal entities A
shareholder of private organisation cannot sell their share without the permission of other
shareholders. All these organisation need to carry private limited behind their name.
Voluntary Organisations
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These organisations refers to the businesses whose main purpose of existence is to
provide a better living to the people, then, to earn profits. These organisations are established to
protect the child rights and stop exploitation. These organisation survives on funds received from
various sources.
Legal Structure of these organisations defined by the law in the constitution and is
governed through a special constitution. These organisations enjoy a special tax benefits and is
tagged as a charity by others.
P2: Size, Scope and Range of different types of organizations
For the context of this research, the following types of organisations are chosen:
Public National Health Service
Private Hilton Hotel
Voluntary Youth Hostel Association
National Health Service
National Health Service is a health department in United Kingdom which provides health
care facilities to the people for free of costs till a certain point. It was established in 1948 after
the world war II to serve as a major social reform. The organization structure of NHS if followed
by:
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Minister for Health
(Accountable to Parliament)
Department
of Health
Strategic
Health Authorities
Primary Care Trusts Secondary NHS Trusts
Community Health Services
Hospitals
(Acute Trusts)
GPs Foundation
Trusts
Ambulances
Dentists Opticians
Pharmacists Mental Health
Arm’s Length
Bodies (Quangos)

The main head of NHS is ministery of health and the flow of hierarchy at NHS is
followed like this:
Business Objective: The objective of NHS in organizational functions includes providing
benefits, support, education and ensure welfare of patients and staff.
Vision & Mission: To provide clinical advice and leadership to support decision making,
encourage innovation and reduce variation in health services to promote healthy life.
Products and Services: NHS provide all type of healthcare facilities ranging from
emergency care to military hospitals, dentist ward to Alzheimer's ward and various other
facilities.
Size and Scope: NHS carries more than 60,000 employees in their staff ranging from
various doctors, physicians, nurses, dentists and many more. The Scope of NHS states that the
overall provide better healthcare facilities and meet up with the needs of people.
Stakeholders of NHS include Academy of Healthcare Science, National School of
Healthcare Science, North West Healthcare Science Network and Academic Health Science
Networks (Hunter and Constance, 2016)
Hilton Hotel(Private)
Hilton is American multinational hospitality company founded by Conrad Hilton around
99 years ago. It's headquarter is in McLean, Virginia and is spread business across 570 +hotels
globally. The organizational structure of Hilton is followed by this:
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(Source: Hilton's organizational structure, 2018)
Business objectives: The objective is to enrich customers experience on travelling by
their branded partners like, Hilton Conrad hotels (Hilton's organizational structure, 2018).
Vision and Mission: Hilton's vision is to enrich earth with light and warmth of
hospitality Whereas, mission is to serve best services with innovative ideas, success and quality
so that generation after generation it can be the leading organization across the globe.
Product and services: It's main focus it to provide all services in hotels like, clean
rooms, healthy food, transportation facilities etc. so that customers can be retained back.
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Illustration 1: Hilton's organizational structure

Size and scope: Currently it has 570+hotels across the globe and is searching ways to
spread networks in Europe to grab the opportunities at the earliest.
Youth Hostel Association(Voluntary)
The Youth hostels association is a charitable organization providing youth hostel
accommodations in England and Wales. Founded in the year 1930 and it's head quarter is in
Matlock.
Business objectives: It's objective is to deliver a sustainable network of world class
hostels across the globe.
Mission and vision: The mission of the association is to motivate young people to widen
up the horizons through new experience and discovery. While the vision is to reach to one
million people every year by 2020 and to enhance the lives of young people.
Product and services: To inspire the young youth by achieving more through funding
and partnership. As well as developing world class teams across nations (Jenkins and
Williamson, 2015).
Size and scope: There are 1500 staff working in the organization to meet it's goals. Firm
is trying to raise it's employees so that better services can be given to the youth to widen their
horizon.
TASK 2
P3) Study the relationship between various organizational functions and link it with
organizational structure and objectives.
The term organizational function can be explained as set of objectives carried out within
a department or within area of business. The most common functions carried out in an firm are
marketing, human resource, operations etc. There are four functions of business are, planning,
organizing, leading and controlling which has helped the firm to run smoothly in the global
market. Organizational structure includes rules policies etc. to regulate the outlined activities to
meet the set goals. Hilton company to survive in the competitive world plan out certain
organizational functions so, that smooth functioning can be done. Here, they are explained and
are linked with the structure and objectives of the organization which are as follows:
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Marketing and Finance department: Planning in systematic order about the customers
needs will help the Hilton firm to meet the desired goals on time as well as expansion can be
done. Marketing and finance smooth functioning will help the firm for better outcomes.
HR and Production production: Arranging all the resources in a effective manner will
help the Hilton firm to retain effective employees for longer time duration as well as set gaols
can be achieved to set another standards.
HR and Finance department: Hilton is motivating it's employees on continuous basis
so that set standards can be meet and profits can be maximized from customers. To be a leading
firm continuous research and development on customers preferences need to be done to survive
in the cut throat market.
` Operations and marketing department: Controlling the firm activities in a effective
manner will help the firm to run the business smoothly in the global market. Hiltion is
controlling all the activities of the business in the initial stage to avoid error in the near future.
Which creates a positive sign in the eyes of the customers and turned out to be loyal customers
(Niemann-Struweg, 2014).
TASK 3
P4) Examine the Positive and negative side of the macro environment with examples on firm.
Macro environment can be explained as composition of all the outside factors like,
political, legal, environmental etc. that impact the smooth functioning of the business at a large
scale.
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(Source: Macro environment factors, 2018)
Political Factor: Tremendous change in the government bodies like, taxes, trade,
practices, codes and duties firm Hilton is affected in it's expansion process. Examples: Hygiene
and cleanness in food is mandatory in hotel industry. It is the policies framed by the law and if
violation is done huge penalties is charged. If the policies are well maintained it adds value to the
business in the long run in the eyes of the customers (Macro environment factor, 2018).
Social factor: To sustain in the society and to attract customers Hilton firm needs to
contribute to the society's well-being. If this are not performed it creates a negative sign in the
eyes of the customers and firm is not able to maximize profit for it's research and development.
Example: Organization can contribute little amount of profits for the education of the
people in the rural area.
Technology factor: Modern technology like online booking facilities has attracted the
customers towards Hilton firm which leads to profit maximization and expansion of business is
possible in the cut throat market. If modern tools are not used then it's not possible for the
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Illustration 2: Macro environment factors

business to meet the emerging needs of the customers. Example: Hilton is using online websites
for booking rooms so, the functioning as well as the software need to well known by the team to
provide satisfactory services to the customers. Else customer switch to some other sites to fulfil
it's demand Noe and et. al., 2017).
Economical factor: It includes, taxes rate, interest rates etc. all this affect the business
productivity ratio at a large scale. To be successful in the market business associates needs to
follow all the policies so that no government interference is there and can generate huge profits.
TASK 4
P5) Conduct internal and external analysis on Hilton company also find strengths and weakness
of it.
In an organization internal and external analysis is done to better understand the
environment scenario so that smooth functioning of the business can be carried out in the
competitive world. Analysing the internal and external helps the firm to better understand it's
own strengths as well as weaknesses and motivates the organization to work on the loop holes to
make it as a opportunities in the near future. The weaknesses of the Hilton company is explained
as follows:
Not much developed network: Hilton is lacking behind because of insufficient inn
networks in North America and Europe due to which firm is not able to connect with the lavish
five star hotels working there (Schaltegger and Hansen, 2016)
Issues In china: As the Chinese are reliant on operational rules to perform the services to
the customers. But Hinton's lodgings in china face is the way that cutting edges workers are
inconvenient in deciding.
Here are some of the weakness of the business which the firm is trying to overcome in
the near future to flourish in the market.
Strengths of Hilton company: Strengths are the core competency of the business which
help the business to maximize profit by productive outcomes in the market. Here, are some of the
strengths of the company which are discussed below:
Interesting administrations: The administration of Hilton is famous across the globe for
it's unique ways to retain it's loyal customers with the service (Paul and Cadle, 2014).
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Solid relationship building: Hilton keeps on priority the preferences of the customers
and keep a record of it while offering the service. Every time they offer the same type of
facilities according to the candidates needs and satisfy them accordingly. It helped to create
emotional bonding with the customers as well as raised market value.
Opportunities: Hiltion has great opportunities in Europe in the coming years. To spread
business in north America will be worth in the coming years if the customers are satisfied.
Threat: As it is leading firm the only threat is the existing five star lavish companies holding
customers in Europe and North America.
P6) Explain how are strengths and weakness of Hilton company are interrelated with the macro
factor.
Macro environment includes, political, social, legal etc. which creates a great impact on
the functioning of the business in the society. The strengths and weaknesses are interrelated with
macro environment are explained below:
Political factor: It includes government norms, rules and regulations the strength of the
Hilton firm is interesting administration if the governing bodies makes changes in it's policies
then whole company policies needs to be changed. If the export and import policies are reduced
then expansion chances are more for the business across the globe. This is the way both are
interrelated with each other.
Social factor: Social factor includes free education, free services, donations, charity etc.
given for the development of the community. The weakness is the issues took place in china if
good relations can be developed with the Chinese people then it can be resolves and smooth
functioning of firm can take place. Whereas, taking care of the society's needs and preferences
will help the firm to remain in the cut throat market for longer time duration Oriesek and
Schwarz, 2016).
CONCLUSION
From the above it can be concluded that the purpose, size, scope and legal structure of
three types of organizations, public, private and voluntary are explained accordingly.
Additionally, similarities can be seen between different organizational functions as well as how
they are linked with objectives and structure of the firm (Storey, 2016.) . Report also focus on the
strength and weaknesses of the company and how they are interrelated with macro factors.
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REFERENCES
Books and Journals
Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
Goss, D., 2015. Small Business and Society (Routledge Revivals). Routledge.
Hunter, I., Saunders, J. and Constance, S., 2016. HR business partners. Routledge.
Jenkins, W. and Williamson, D., 2015. Strategic management and business analysis. Routledge.
Niemann-Struweg, I., 2014. An integrated communication implementation model for the post-
2000 business environment. Public Relations Review. 40(2). pp.184-192.
Noe, R. A. and et. al., 2017. Human resource management: Gaining a competitive advantage.
New York, NY: McGraw-Hill Education.
Oriesek, D. F. and Schwarz, J. O., 2016. Business wargaming: securing corporate value.
Routledge.
Paul, D., Yeates, D. and Cadle, J. eds., 2014. Business analysis. BCS, The Chartered Institute for
IT.
Schaltegger, S., Lüdeke-Freund, F. and Hansen, E. G., 2016. Business models for sustainability:
A co-evolutionary analysis of sustainable entrepreneurship, innovation, and transformation.
Organization & Environment. 29(3). pp.264-289.
Storey, D. J., 2016. Understanding the small business sector. Routledge.
Online:
Macro environment factor. 2018. Impact of Employee Motivation. [Online] Available through:<
https://businessjargons.com/marketing-environment.html>./
Hilton's organizational structure. 2018. Impact of Employee Motivation. [Online] Available
through:<https://www.melbournepolytechnic.edu.au/explore-melbourne-polytechnic/
about-melbourne-polytechnic/organisational-chart/
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