Business Health Check Report for Hilton Hotels and Resorts

This report provides a comprehensive business health check for Hilton Hotels and Resorts. It begins with an introduction to the importance of business health checks and then details Hilton's objectives, including profitability, customer satisfaction, and market share growth. The report analyzes internal and external factors influencing the company, utilizing SWOT, PESTLE, and Porter's Five Forces models to assess strengths, weaknesses, opportunities, and threats. Key weaknesses identified include over-dependence on the US market and high financial debts. The report proposes improvements, such as business expansion and debt management strategies, and suggests plans for developing the skills of both staff and management to enhance organizational performance. The report references various academic sources to support its analysis.

Business Health Check

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Different objectives of business.......................................................................................1
1.2 Factors that can influence impact on business.................................................................3
1.3 Potential improvements to the business organization......................................................6
TASK 2............................................................................................................................................7
2.1 Effectiveness of business..................................................................................................7
2.2 Business plan to improve organization.............................................................................8
TASK 3............................................................................................................................................9
3.1 Skills and abilities of management as well as staff members..........................................9
3.2 Devise plans for developing skills of personal and management.....................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Most of the individuals are aware about personal health check because it provides them
various benefits regarding their health. But people do not give importance to business health
check which results in financial losses and organizational problems. So, it is highly significant
for managers to analyse each and every aspect of their company so that they can identify
business problems and find out appropriate solutions for them. Health check of organization can
be done by internal as well as external person. They analyse organizational performance by
setting some standards or by creating benchmarks of similar enterprises (Trompenaars and
Hampden-Turner, 2011). In the present scenario, many online diagnostic tools have been
developed which help a lot in business health check. This project report is based on Hilton
Hotels and Resorts which is operating in the hospitality industry. In this report, different
objectives of business and some environmental factors have been explained which can influence
impact on company. Along with this, effectiveness of organization has been evaluated and some
new plans has also been developed to improve the organizational performance. At last, existing
skills of men and staff members have been demonstrated and also, some programs have been
devised to develop those skills.
TASK 1
1.1 Different objectives of business
By evaluating business health, company can determine its areas of strength, weakness
and improvement which can help it in enhancing its future growth and development. It is highly
important for managers to address organizational weaknesses otherwise they can not sustain and
grow their company for long time period. Hilton hotels is one of the leading hospitality company
which is established by Conard Hilton. At present this organisation have approx around 570
branches in 85 countries. All of its hotels are franchised, owned and managed to different
independent operators by Hilton. This company establishes its branches near by the city centres,
airports, convention centres and highly popular vacation destinations. It is known as world's
largest hotel brand as it have string customer base as compare to other hotel organizations
(Simmons and Becker-Olsen, 2013). This organization attracts a huge number of people by
providing them exclusive offers, discounts and comforts like keyless entry, Wi-Fi, digital check-
in and it also provide option to its clients to choose room of their own choice. IT team of this
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organisation have created Hilton Honors app through which people can get enough information
about its facilities, available discounts and also can execute booking process. Hilton Hotels and
Resorts has also nominated with various achievements and rewards due to its excellent services.
This company makes various efforts to accomplish its predetermined smart objectives, which are
follows as under:
 High profitability and productivity: Every enterprise established to gain financial profit.
Cited company also have the motive to enhance its profits. By providing excellent
services to customers it can increase its profitability as well as productivity (Lehman, J.
and Stanley, 2011).
 Customer safety and security: Hilton Hotel have the responsibility to take care of its
clients and also consider their health issues. Company should give core importance to its
food system because it is most important part of hospitality industry. People like to stay
in that hotel which provides them healthy and tasty food.
 Organizational growth and development: This is the main objective of mentioned
organisation. It wants to reach at higher level of success and growth which can be
possible only by satisfying customer needs and demands. By improving employee skills
and abilities it can also enhance organizational growth and development.
 Employee and Customer satisfaction: Workers are considered as most expensive capital
of organization whereas customers are those person who helps business enterprise in
increasing their financial profit. So, it is huge responsibility of Hilton Hotels to provide
better facilities to its workers as well as clients so that their needs will be satisfied.
 Employee motivation: For better growth and development, it is very much important for
business managers to motivate their subordinates so that they will contribute more in
achieved desired goals and objectives of company.
 Increase market share: This company wants to expand its business in all over the world
so that it can have large market share. In present time, Hilton enterpise wants to increase
its market-share by 15% within next year.
 Marketing: It is that function of organization which helps in making effective market
strategies so that company can attract a huge number of customers. Also it helps in
building strong corporate image in market place. Cited organisation gives core attention
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to its merchandising section so that it can promote and advertise its product/services in
most effective and systematic manner (Bartolini and et. al., 2011).
 Change management: Modifications are the part of business enterprise. It is highly
essential for mangers to make their decisions to consider environmental factors otherwise
they can exist in market place for long time period. Company can cope up with market
changes by following change management process. By taking help of this concept,
enterprise can resolve its all work related problems and difficulties.
Moreover, above mentioned goals and objectives are set according to the SMART objectives
Concept so that they can be easily measures and achieved.
1.2 Factors that can influence impact on business
Mangers should make important business decisions before analysing some internal as
well as external factors of environment because, they can influence positive has well as negative
impact on organizational growth and performance. Mainly there are two types of factors which
are micro environmental forces and macro environmental forces. Internal components can be
control be business enterprise but external components are uncontrollable in nature because they
are managed by government only (Yuan, 2013). For internal analysis, Hilton Hotels can take
help of SWOT matrix which is follows as under:
Strengths:
 This company have comprehensive property portfolio. It have approx 14 highly popular
brands such as Waldorf Astoria hotels and Resorts, Canopy by Hilton, Hampton by
Hilton and many more.
 This organisation have strong customer base because it provides world class hospitality
services.
 It is highly popular for its luxurious services, long history and experience.
 Also, it have strong corporate image in domestic as well as international markets.
Weaknesses:
 This biggest weakness of Hilton Hotels is that it have strong presence in only US market
which makes it poor image in other countries.
 Currently, this enterprise is suffering from high level of financial debts.
 It is considered as less effective hospitality company in Asia because it have limited
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presence in Asia pacific region.
 Also, it have huge size which minimises its flexibility level. Because of high complex
business environment it can not give importance to its management teams which are
most important part of Hilton Hotels and Resorts ( Dobbs, 2014).
Opportunities:
 By doing business expansion this enterprise can lead to high growth and development.
 This organisation can increase its market share as well as profitability by undertaking or
venturing into mid level and affordable hotels companies.
Threats:
 Continuously increment in terrorism activities is becoming biggest threat for Hilton
hotels.
 Due to harmful modifications in macroeconomic environment, Buying behaviour of
customers are rapidly changing which is also affecting organizational growth of
enterprise.
Hence, these are some most important internal factors which should be considered by
business mangers of Hilton Hotels otherwise they can not accomplish their desired goals and
objectives. Apart form this, they should also analyse macro environmental factors which can be
done by PESTLE analysis. With the help of this concept, organization can identify favourable
and adverse effects of external forces which can affect organizational revenue and substantial
growth prospects.
Political factors: This enterprise have face various problems due to political issues. Non-
European and Non-US nations rejected a huge number of visa application which will results in
nullification of hotels booking.
Economic factors: Downturn in economic condition are continuously declining tourism and also
affecting hospitality company by decreasing its financial profit and turnover. Less expensive
accommodations are getting visitor's attention which have become biggest threat for Hilton
Hotels. But due to recession, hospitality industry get advantage to target guests.
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Social factors: Hilton Hotels and Resorts is world's well known brand, its popularity can help it
in attracting a huge number of individuals. Also, this company contributes in charitable trust
which builds its strong corporate image in all over the world (Zalengera and et.al., 2014).
Technological factors: Due to technology advancement, Hilton hotel have become able to
provide online booking service. Now customers can easily get appropriate information about
company and also can give their reviews. It always stay connected with its clients on Facebook,
twitter and other social media channels.
Legal factors: There are many rules and regulations which are developed by government to
control hospitality industry. Hilton Hotel should make future plans and strategies as per legal
considerations otherwise it can suffer from huge financial crises.
Environmental factors: Cited organisation have faced very tough situation because of Iceland's
Volcanic Ash. Due to this, many of flights were delay and airports were close.
Moreover, Porter's five forces model also helpful in identifying factors which can
influence impact on business enterprise and its operations. Different forces are follows as under:
(Source: Jurevicious, 2013)
Threat of new entrants: According to Porter's model, every organization should determine
market type in which it wants to enter. New entities face many problems due to lack of finance.
Also, they can not get customer's trust easily.
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Illustration 1: Porter's five forces

Bargaining power of suppliers: Supplier are the person who supplies raw material to company
so that it can produce its products or services. Strong bargaining power of suppliers can increase
prices of raw materials.
Bargaining power of buyers: In modern world, all organizations are becoming customer
oriented because without fulfilling customer's needs and demands no organisation can increase
its financial profit. Client needs high quality goods/services on affordable prices. Producing high
quality products/services means high operational and production cost which can not be covered
by implementing premium pricing policy. So, Hilton Hotel should select that pricing policy by
which they can provide their services at affordable prices and also can cover their operational
cost.
Threat of substitutes: In modern time, many new hotel company which are giving tough
competition to Hilton Hotels and Resorts. They provides luxurious hospitality services at low
prices which is decreasing customer line of cited company.
Rivalry among existing competitors: In now days, hospitality industry is growing very well
which is attracting many entrepreneurs. In present time, there are many competitors of Hilton
Hotel which have become major challenge for this company.
1.3 Potential improvements to the business organization
Every organization suffer from various business problems and situations. At the time of
adverse situation, mangers should find possible solutions to overcome those difficulties. Hilton
Hotel is facing various organizational problems which are follows as under:
Over-dependence on US market: To make presence in all over the world, cited organisation
should expand its business in other countries. By entering into Asian and Russian market it can
get rid from this problem (Choi and Zhang, 2011).
Limited presence in Asia pacific Region: By focusing more on India, Hong Kong, Indonesia and
Singapore Hilton Hotel can become market leader in hospitality industry. By expanding in these
countries cited organization can get potential opportunities.
High financial debts: Hilton Hotel have long term debt of around 9,821 million but this
company can remove its debts by paying its cash dividend. Also, it can make its capital structure
strong by generating high profit.
Huge size: Mentioned organisation have such huge size which creates more complex
environment within work place. By hiring more skilled employees it can manage its each and
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every activity of hotel. This can result in more flexible organizational structure (Lhannaoui,
Kabbaj and Bakkoury, 2013).
Apart form this, Hilton Hotel can also take help of The Ansoff Matrix. It helps in
determining growth opportunities. It includes four strategies by which Hilton Hotels can have
substantial growth. These are follows as under: Market penetration: According to this, company should provide effective services to
their customers so that it can build long time values for them. For this organization can
improve and develop its order procedure. Market development: In this, company should attract new customer which can be
possible by entering into new geographical locations or in new countries. By expanding
business, organization can build strong customer base. Product development: Hilton Hotel can enhance its growth by providing new and
excellent services to its customers (Taylor, 2012).
 Diversification: It is known as most risk strategy because in this organization sell its new
goods ore services in brand new market place. Hilton Hotels should take this step before
consulting with expert persons.
TASK 2
2.1 Effectiveness of business
Effectiveness can be defined as capability through which organization can accomplish its
desired goals and objectives, also can produce favourable outcomes. In other words, it is results
of manger's and employee's efforts. If company will give core attention to effectiveness the it can
produce high quality products and services. All this can be possible if different departments of
organization will work effectively. Some of the most important functional areas of Hilton Hotel
are follows as under:
Production section: This department deals with suppliers and converts raw material into final
products or services. It helps in producing effective services which can provide high satisfaction
to customers (Cameron and et. al., 2011).
Marketing department: Promotion and advertising are the major activities of merchandising
section. Effective promotion and advertisement of organizational services can result in large
customer base.
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Sales department: This section helps in generating financial profit. People of this department
ensures that goods and services of company are effective enough to generate financial profit.
Finance department: This section makes plans and organise organizational capital. Also, it
helps in keeping financial records which can be needed while estimating future budget.
Human resource management: This section increase organisational effectiveness by recruiting
high skilled employees. If Hilton will have skilled workers then it can provide better services to
its customers.
2.2 Business plan to improve organization
Every organization make its business plans which is considered as blueprint of company.
It helps in determining organisational goals, objectives, marketing strategies, sales and
availability of finance. Business plan of Hilton Hotel covers all important aspects which are
marketing, sales, productivity and product's quality. At the time of organisational planning,
managers gives core attention to sales and market strategies because without them organization
can not promote and advertise its different products/services. On the other side sales department
helps in ensuring that produced goods and services are according to the customer's demands and
can generate enough profit for company (Fernández-Guerrero, Revuelto-Taboada and Simón-
Moya, 2012). All business enterprises wants to increase their productivity and quality so that
they can attract a huge number of customers. Hilton Hotels implements various procedures and
strategies so that it can provide quality services, this can lead company to high level of
profitability and productivity.
Moreover, estimating financial budget is also important part of business planning. To
operate organizational activities and practices, business manager requires enough amount of
capital. There are different sources of finance such as angel investors, venture capital and so on.
Hilton Hotels distributes the power to each and every employee so that they will perform their
task in most effective manner. After making complete business plan, cited organization take
help of competitive measures through which they can control and monitor actual performance of
organization. Before making any business plan, it is high important for organization to conduct
market research so that it can produce its products and services as per they requirements of
customer.
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TASK 3
3.1 Skills and abilities of management as well as staff members
Technical skills: It includes those abilities which helps business manager in performing
mathematical, scientific and engineering related roles and responsibilities. In simple words, it
helps leaders in performing technical tasks. All these skills are required for those employees
which are engaged in IT department.
Operational skills: Operations manger have to lead and motivate employee so that they
contribute more organizational growth. Also, he have to take important decision related to
company.
Managerial skills: The managerial skills are planning, organising, directing and controlling.
Without these abilities no manger can lead organization to high level of success. These skills are
required for management department (Boyles, 2012).
It is very much important to monitor skills and abilities of staff members and
management department. They can be determine by evaluating quality of their work, by
checking their attitudes and reviewing individual's performance. Hilton Hotels have high skilled
employees and management team which operate organizational activities and practices in most
effective manner. Skills and abilities of its personal influence a positive impact on business
performance of cited company.
3.2 Devise plans for developing skills of personal and management
As business plan of Hilton Hotel requires those employees and management team who
have high skills and abilities. Existing personal of cited company have not that mush effective
competencies. To achieve different objectives of business plan company needs to provide
training and development programs so that staff members and manager can improve their
existing skills and abilities. For developing future skills of employees and management team
managers should conduct a training and development programs in which first of all they evaluate
current skills and abilities of staff members, then evaluate that which skills are required to meet
future needs. Hilton Hotels comes under hospitality industry so it requires those employees who
have grate communications skills. This is the main aspect on which this industry is based. For
developing such skills, managers should engage workers in seminars and meetings where they
can interact with new people and can improve their communication skills (Wilton, 2012). By
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following this procedure, cited company can attract a huge number of customers because soft
spoken people can take attention of other persons. So, by developing future skills and abilities of
employee organization can lead to high level of success and growth.
CONCLUSION
By evaluating this project report, it has been concluded that business health check plays
a significant role in organization. As, it gives detailed information about annual turnover,
sales/marketing functions, quality of goods, productivity, customer and employee satisfaction.
Most of the time, people like to check their company by their own instead of consulting with any
consultant or any external expert. A complete business health check covers each and every
aspect of company and also, it looks at the organizational structure as well as operations. This
project report is based on Hilton Hotel which deals in providing hospitality services. In this
report, various business objectives, environmental factors and areas of organizational
improvements has been evaluated so that managers can have substantial growth in company.
Along with this, business plans has been developed to improve the performance of enterprise. At
last, skills of management and staff members have been determined so that their existing skills
and abilities can be improved and developed.
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