Business Environment Analysis Report: Hilton Hotel's Challenges

This report provides a comprehensive analysis of the business environment surrounding the Hilton Hotel. It begins by defining the business environment and its impact on organizational sustainability and productivity. The report delves into the key macro issues, including political, economic, social, technological, legal, and environmental factors, using the PESTEL framework to assess their impact. It then examines the micro-level factors, such as suppliers, customers, competitors, media, and intermediaries, and their influence on the hotel's operations. The report also highlights the challenges faced during the research process, including difficulties in finding appropriate materials, unclear guidelines, and meeting deadlines. The conclusion summarizes the key findings and emphasizes the significance of both internal and external environmental factors in shaping the success of the Hilton Hotel. The report includes references to books, journals, and online resources used in the analysis.

BUSINESS
ENVIRONMENT

INTRODUCTION
Business environment is the outside forces of the environment which affect an organisation
and the organisation depend on it for its sustainability and productivity. The forces which
constitute a business environment are: suppliers: competitors, government, media and
more. These factors have effect on the business even though they are outside the business
organisation. This report is based on the key issues occurring in business environment of
Hilton hotel. It is the largest hotel brand in the world and was founded on 31st May 1991. It
includes macro and micro issues in the business environment and the challenges faced while
carrying out these tasks.
TASK
Key macro issues in the business environment
A macro environment is an environment as a whole, it does not include a particular region
or area. It includes trends in gross domestic product, inflation, employment, spending, fiscal
policy and monetary policy. The key macro issues of Hilton hotel are discussed with a
strategic tool PESTEL.
Political Factors
Remaining stable in the political environment is the key to success of any organisation and is
implemented on hotel industry as well and should manage with the political issues from all
over the world. The main impact of these issues is on the travellers and tourist who visits
the country. It is the issue of consideration for the people who visits northern countries as
they have delicate political conditions. Reduction in number of tourists in UK is due to
danger of terrorism in the country and this place is known for the extremist religious
organisation of accommodation with adverse impact of Hilton hotel’s performance in the
market. The chances of UK to exit European unions (an issue raised by the British PM David
Cameron on several occasions may also have inverse impact on the revenues of the Hilton
Hotel that lead to decrease in the tourist in the nation.
Economic Factors
UK is a developed country and its economy is also highly developed which provides a
platform to enhance the productivity of the organisation. National macro environmental
factors, events and conditions are the major factors which affect the business of the Hilton
hotel. For example, during the Olympic games the rooms of hotels were fulled and as soon
as the Olympic games were over the rooms were vacant. So the situations were totally
different on the scenarios. The extension of expected and real economic growth in the
United Kingdom has a impact on Hilton Hotel. Moreover the rate of GDP exchange rate
against different countries and inflation rate has also had an impact on the performance of
the Hilton hotel.
Social Factors

UK is one of the most favourite destination for tourist and shopping lovers and is popular
among international visitors. The broad range of social factors such as emerging trends in
customer tastes and preferences, consumer demographic variables, the impact of role
models in decision making of customer and growth rate of population had a great impact on
Hilton Hotel. The family pattern changing continuously with the values associated of the
single people may also effect the performance of the Hilton hotel.
Technological Factors
The development of overall infrastructure relating to catering has great impact on Hilton
hotel performance. Increasing number of internet users has a great impact on performance
of Hilton hotel as it is easy for people to book hotels or rooms with easy steps through
internet. Social Medias have also increased the number of hotels and customers.
Legal Factors
Legal factors which has a great impact on Hilton Hotel’s performance which include UK
jurisdiction that affect the hospitality industries in a positive or negative manner. Consumer
protection, employment laws in UK, nature of competitive regulation and risk of military
invasion in the country has affected the Hilton hotel directly.
Environmental Factors
There are many activities in the hotel which not only created pollution but also affected
animals and environment. The factors like increased cost of revenue , climatic conditions
and many more has affected the performance of the Hilton hotel.
Potential Impact at micro level
Micro environment factors includes factors of resource availability and uses that impact the
individual as well as the business. The micro economic factors that affect the business of the
hotel are discussed .
Suppliers
Maintaining healthy and strong relationship with the supplier is essential as it affects the
reputation, goodwill , productivity and profit of the business. Hilton supply management
team has find out partnerships that has helped them to produce sustainable products. They
purchase most of the products from the suppliers of the local area. They have over 90 and
more suppliers and their success depends on the support system of the local markets and
the quality and quantity they supply. Hilton developed a purchasing policy to motivate or
encourage the suppliers to maintain their sustainability.
Customers
Satisfying its customer are the basic motive for a business to earn profit and increase its
productivity .If the the customer is not satisfied with the products and services of the
business the business have a sure shut down within a short duration of time.Hilton carries
out various activities to attract customers or to satisfy the customers such as family fun

packages, wedding ceremonies and many more. That is the reason there customers are
people who would be seeking places for fun, travelling or business purposes or treasure.
Competitors
A business can get successful and can achieve higher profits or maintain its sustainbilty if it
has a competitive advantage over other competitors in the market . Hilton has carried a very
popular fame and brand in the market which make it difficult for the small or normal firms or
enterprises to enter and compete with them in the market. For competing with hotel they must
have a significant level of capital and knowledge of the brand. This makes the threats of new
entrants in the market low. Hilton give some programmes for the visitors which guarantees
their next time visits such as visitors can earn points which are redeemed and earn rewards
like air tickets, rental cars, cruises and more.
Media Publics
Social medias help the business to expand themselves worldwide and be popular with its
brand name in the market. Hilton created a site that is Hilton site for people to assess and
visitors to post their content with pictures. This site is also beneficial in visualising rooms of
the hotel. It also engage media concerning the hotel all over the world for example “Annual
corporate responsibility report”. They have done reduction in the consumption of water by
the 10% due to this reason they are popular among the media. They have also save a quarterly
dollar which makes them popular and created a good reputation of them in the market.
Intermediaries
Intermediaries are the major force that is determined by the business like Hilton in the
market. Intermediaries are the link between the manufacturer and the supplier. Manu
business try to avoid intermediaries. Most of the people don’t have the knowledge of the real
manufacturer or producer of the goods and buy directly from the company itself. But in
context of Hilton hotel it buys the product from the place physical distribution or the original
distributer of the product and then move to the stock to various origins and destination. This
process is essential to motivate and support companies and communities of the local area.
Challenges faced while carrying out the task
Research
Finding the appropriate matter for the project was a bit difficult as the topic was bit difficult
to understand. The guidelines of the project were not clear which made it difficult to find the
content. It was a bit difficult to find the relevant content according to the topic. Having the
right topic is just not enough for successful completion of the project choosing the right
methodology is also a must while carrying out a project or a task. Without the proper
methodology the project cannot be move forward. To overcome this issue , the best way is
use the technology and go through as much articles and information an individual can go to
do the research. Understand the topic well and try to relate it with the data being provided. Be
clear with knowledge one must have while searching for the information. Try to keep the
basics of the topic or research clear. Draw on details about the question as to what is the
question all about and what essentials heads or subpoints are to given in the questions. Stay
focused to the point in which the question is being asked. Try to take help from other people
for the research process or understanding the question if it is not cleared.

Meeting Deadline
As the research part took time it was a bit difficult for meeting the deadline of the project. For
project mangers, completing the task on time is very important as project done on time and
goals achieved efficiently are the secret for successful completion of the project. Mismatched
content and unachievable objectives are totally a waste of time. Therefore while doing a
project one must plan the project accordingly and try to understand the delivered status of the
project so that one must have the enough time to deliver the project on deadline. For
overcoming this issue, one must not involved in decisions, communication and tasks which
don,t need any input at all. Don’t try to distract onself and be focused towards the work.
Make utilize of the time by doing things that is relevant and can produce some productivity.
Work hard but don’t create or indulge into extra activities or work unnecessarily.
Conclusion
It is the effect of all internal and external factors of environment which influence the
business. This report the issue of the business environment on the Hilton Hotel. Hilton is a
very popular brand of the hospitality industry in the world which served the worldwide areas.
We can conclude the key macro level issues that are significant for the Hilton hotel an the
potential impact of micro level factors to the hotel. Lastly it described the problems faced
while doing the task.

REFERENCE
Books and Journals
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environment: Knowledge management 2014and knowledge management technology.
Elsevier.
Wetherly, P., 2014. The business environment: themes and issues in a globalizing world.
Oxford University Press.
Hair Jr, J. F. and et. al., 2015. Essentials of business research methods. Routledge.
Apăvăloaie, E. I., 2014. The impact of the internet on the business environment. Procedia
Economics and finance. 15. pp.951-958.
Deasy, S., and et. al., 2016. Controlling use of a business environment on a mobile device.
U.S. Patent 9,247,042.
Savrul, M., Incekara, A. and Sener, S., 2014. The potential of e-commerce for SMEs in a
globalizing business environment. Procedia-Social and Behavioral Sciences. 150. pp.35-45.
Smith, B., 2016. Nature and Geography: Tragic Voids within Marketing Textbooks and the
External Business Environment. In Global Perspectives on Contemporary Marketing
Education (pp. 47-64). IGI Global.
Deasy, S., and et. al., 2015. User interface for controlling use of a business environment on a
mobile device. U.S. Patent 8,954,050.
Cohen, B. and Kietzmann, J., 2014. Ride on! Mobility business models for the sharing
economy. Organization & Environment. 27(3). pp.279-296.
Andersson, U., Forsgren, M. and Holm, U., 2015. Balancing subsidiary influence in the
federative MNC: A business network view. In Knowledge, Networks and Power (pp. 393-
420). Palgrave Macmillan, London.
Online
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