Analysis of Business Environment Factors: Hilton Food Group Report

This report provides a comprehensive analysis of the business environment of Hilton Food Group. It begins with an introduction to the concept of the business environment and its influence on a company's operations. The report then delves into the governance and structure of Hilton Food Group, including its founding, leadership, and market position. The core of the report focuses on the application of the PESTLE framework to analyze the external environment, examining political, economic, social, technological, legal, and environmental factors affecting the company. Each factor is thoroughly examined with real-world examples, highlighting its impact on Hilton Food Group. The report emphasizes the importance of PESTLE analysis in strategic decision-making, risk mitigation, and competitive advantage. The analysis considers the food industry's competitive landscape, the impact of Brexit, and the changing consumer expectations. The conclusion summarizes the key findings, reinforcing the importance of understanding the external environment for sustained business success. References are included to support the analysis.

BUSINESS ENVIRONMENT

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Chosen company is governed and structure................................................................................3
TASK 2............................................................................................................................................4
Importance of PESTLE analysis..................................................................................................4
TASK 3............................................................................................................................................5
PESTLE framework to analyse the external environment..........................................................5
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
The internal and external factors which are influencing a business are known as business
environment. Businesses in the market have to be sure about the measures they are taking after
analysing and evaluating the external and internal factors. Hilton food group is a public type of
business which was from the food industry. The company is having a net income of £35.2
million as of 2019. It is having its headquarters in Huntingdon, United Kingdom. The report is
going to consist of the external factors and the importance of analysing these factors so that the
business can operate in the market effectively and efficiently.
TASK 1
Chosen company is governed and structure
Hilton food group was founded in 1994 and the chairman of the company is Robert
Watson and CEO Philip Heffer. The company is in the prime list of London stock exchange
which is a great standard and reputation which the company has got for them in the market. The
company is having a transparent functioning and structure of the organisation so that there is a
trust and loyalty which the organisation can provide to its employees and customers (Pratistha,
2016). It is very important for the organisation to follow the government rules and regulations
which have to be implemented so that there is going to be a smooth functioning which would be
present. The company is following the right methods and planned structure which is making the
organisation be able to compete with the competitors in the market. Hilton Food group has been
able to make the right decisions for themselves by gaining experience in the market and that is a
very important factor for the organization to have because with experience there are a lot of
measures which the company will be able to take effectively.
Hilton food group is having a strong structure for them to be able to operate and compete
with the competitors in the market. There are a lot of editions which the company has taken up
over the 25 years in the market so that they can make the satisfaction of the customers and make
the organisation be able to have a higher business value. The leaders and managers of Hilton
food group are well trained and knowledgeable to make the right decisions at the right time

which is helping the company to be able to achieve the targets and goals (Safar and et.al., 2018).
In the food and retailing industry there is already a lot of developed large companies which are
present and for Hilton food group it is going to be very difficult to be able to make a place and
have a large market share. The company will have to segment and target the right customers to
be able to have a strong base for themselves in the market. Though the company is having a lot
of competition in the market therefore it is very important for the company to be able to make the
right decisions which come with experience and skills which are developed over time. With time
there is a lot of knowledge as well which is going to be present in the management therefore
better decisions will be able to take place in the company.
TASK 2
Importance of PESTLE analysis
There are a lot of external factors which are going to influence the working of an
organisation which is going to be discussed through a framework named PESTLE which stands
for political, economic, social, technological, legal and environmental factors. Businesses in the
market need to analyse these factors so that they will be able to operate in the market effectively
and efficiently which is very important in an industry which is developing rapidly (Strydom and
Rudansky-Kloppers, 2016). There is a growth in the food industry in respect to the competition
therefore Hilton food group will have to take measures which are going to help the business be
able to develop and expand themselves in the market.
There is a lot of data which can be collected when the company analyses the market
effectively that is going to reduce the risk and increase the competitive advantage. The
companies in the market making a higher profit and have a strong portfolio which can be
achieved when there is a better analysis done by the company so that there would be a better
direction which can be provided to them. There are a lot of decisions which can be taken after
using this framework helping the organisation to be able to have a better performance and gain
higher reputation and brand image in market (Saura, Palos-Sanchez and Correia, 2019). There is
already a lot of competition in the market therefore it is very important for the organization to
make sure that they are taking the right measures and strategies in the market to be able to

compete in the market effectively. There are a lot of threats, strengths, opportunities and
weaknesses which can be understood well with this analyses and make the organization be able
to develop and have higher performance which is going to be present for the company for a
higher performance. There are values, beliefs, etc which have to be followed but for that the
company must be able to understand them effectively so that there is going to be higher
performance which would be present.
TASK 3
PESTLE framework to analyse the external environment
There are a lot of changes which are taking place in the market due to which the
organisation must be able to effectively analyse the factors to take the right decisions for them.
There are two factors which are going to influence the functioning of a business which are
internal and external. The following report is going to discuss the external environment of Hilton
food group so that there is a better understanding and the decisions and measures the
organisation can take for the further growth in the market (Kumar and Pradhan, 2016).
 Political factors
There are a lot of laws and regulations which of the input by the government which the
organizations must follow so that they can have a smooth functioning and higher reputation in
the market. Hilton food group has always followed these laws so that they can make the
customers and the employees of the organisation are satisfied with the products and services
which the company is coming up with (Bereznoy, 2017). There is a stability which is observed in
the political power due to which there are not many changes which are taking place in the
policies and the trade policies and laws are still remaining the same. There are labour laws which
Hilton food group will have to follow for the employees to be satisfied and giving in their
personal best. After Brexit there are a lot of trade restrictions which the company has had to face
in the market and making the profitability and operations be affected. That is a lot of corruption
as well which is taking place in the market there for Hilton food group will have to be more
careful and make the right decisions accordingly. The company has also been following the

foreign trade policies which is making the company be able to expand effectively in the market
and have higher profitability margins. The company will have to make decisions according to the
political factors so that they will be able to have a better performance in the market and the
company will be able to develop themselves in the market (Timčenko and et.al., 2017).
 Economic factors
Stability in the economic factor of Hilton food group has been always present which is
making the company have a very good competitive advantage in the market. There is a decrease
in the unemployment rate in the country which is making the pricing of Hilton food group
increase. GDP of UK is being worked upon by the government which is a great advantage to get
a competitive pricing for the company and be able to have higher economic factor which is going
to be invested in the future development of the company. The exchange rate and currency value
is also going to affect the pricing from country to country of the products of Hilton food group. It
is very important for the company to know the inflation rates to be able to have a good interest
rates on the products and services which is going to make the company have a higher profit
ability (Berman and Dalzell-Payne, 2018). Company needs to kind for the customers of the
country only then they will be able to have cost friendly measures and be able to focus on the
quality of the products and services which is going to be very beneficial for the organization in
order to be able to operate effectively in the market. Customers are not going to be satisfied with
high interest rates and inflation in the country is going to not support the organization as well
therefore it is important for the company to be able to make the right decisions in the
organization.
 Social factors
The customer's Expectations and means are increasing rapidly in the market which is a great
advantage for Hilton food group. The company will have to get in the changes according to the
demands and services which are expected by the customers and making the brand value increase
in the market. Hilton food group is having a strong portfolio for themselves in the market which
is making them have a smooth functioning and be able to expand in different country which is
impacting the economic factor positively. The lifestyle and attitude of the customers in UK is
changing and developing therefore the products and services of the organisation will have to be

moulded and improved upon so that they will be able to match the standards of the customers
(Fogarassy, Horvath and Magda, 2017). Safety and security of the customers is very important
day for maintaining the hygiene and environment of the operational level has to be maintained
which is going to make the quality of the products in Hilton food group improve. The culture,
religion, beliefs, values, etc are different from one place to another therefore it is very important
to understand this factor and improve the products accordingly which is going to make the brand
in which improve in the market and also be able to have higher profitability.
 Technological factors
There is a lot of investment which is required in the research and development activities in
Hilton food group so that they will be able to match the Expectations and demands of the
customers. There are a lot of changes which have come in and Technology will be able to make
the company function effectively and efficiently in the market. There is a requirement of a lot of
Innovation and new ideas to be able to generate in Hilton food group in order to compete with
the competitors which are increasing rapidly. The employees of the organisation will have to be
trained and developed according to the technology which is coming in the employees are never
in favour of changes for getting in the changes slowly would be beneficial for the company
(Reeves, Levin and Ueda, 2016). Hilton food group will have to have automation in the
productivity and operation level so that they will be able to fulfil a larger market share and
impact the organisation brand value positively. The customers of the organisation need to have a
transparency so that they are aware of the changes which the company is making to gain the
loyalty and trust and make the company be able to develop effectively and efficiently.
 Legal factors
There are a lot of discriminations which are present in an organisation for the employees and
that are creating a healthier environment affecting the productivity and operations. Hilton food
group is trying to monitor and control this factor in order to make the employees be satisfied
which is going to make them give in their personal best to the organisation. There are a lot of
flaws for employees and customer protection which the government has put out and they must be
followed by the company's to be able to gain the trust and loyalty. It is important for the
organisation to have transparency with the customer about the changes and measures which the

organisation is taking for the products and services which are being delivered to them. And for
the employees it is important for the organisation to give the right wages according to the effort
and work they are putting in for the organisation to achieve the targets and goals (Camilleri,
2017). There are a lot of copyrights and patent laws which Hilton food group has taken for the
products and services in order to be able to compete with the competitors and have a unique
identity in the market. Since Hilton put group is belonging from the food industry it is important
for them to follow the health and safety laws effectively so that they can gain a larger market
share and a larger market customer base making the company have higher profitability margins.
 Environmental factors
There are a lot of environmental changes which are required in the organisation since the
government is also taking measures towards those organisations which are not being able to
follow the environmental factors. Climate change is a factor which needs to be controlled by the
industries since they are impacting this factor the most therefore Hilton has been taking measures
in order to have a higher brand value. There is going to be effective support which the industry
and Organisation is going to receive when they are following all the laws and regulations which
are being put out. The company has taken measures to have a zero carbon footprint and also
dispose of their wastage effectively so that there is no harm on the environment. Industries have
the most harmful outlet from the factory which is not good for the customers and is being taken
care bye by Hilton food group so that they can gain the trust and loyalty of the customers.
Controlling the climate is also going to make the organisation the able to deliver the products and
services on time which is going to have a higher brand value and image in the market making the
portfolio much stronger for the organisation to be able to expand themselves globally (Aithal,
2017).
CONCLUSION
From the above report it can be concluded that a business must analyse and understand
the external factors which can affect the business and its functioning. All the industries are
having an increase in the competition therefore it is very important to take the right measures and
the right method to be used by the organisation to achieve the targets and goals which have been

set. Company needs to understand the factors which would influence the working and
performance of the organization so that there is going to be higher performance which is going to
be present.

REFERENCES
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