Business Health Check Report for Hilton Hotel: Analysis and Plans

This report provides a comprehensive business health check of Hilton Hotel, a global hospitality brand. It begins by analyzing the company's objectives, including its mission, vision, and both short-term and long-term goals. The report then delves into the factors impacting the business, utilizing PESTLE, Porter's Five Forces, and SWOT analyses to evaluate the external and internal environments. The PESTLE analysis examines political, social, economic, technological, legal, and environmental factors. The report identifies potential improvements, including the application of Ansoff's Growth Matrix to develop market penetration, market development, and product development strategies. The report also reviews the effectiveness of the business, develops plans to improve it, and evaluates the current skills of management and staff, proposing skill development plans. The ultimate goal is to provide insights that can contribute to Hilton Hotel's organizational growth and sustained success in the competitive hospitality market.

Business Health
Check

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Analyse the objectives of the business..................................................................................1
1.2 Explain factors that impact on the business..........................................................................2
1.3 Determine potential improvements to the business organisation and/or operation..............5
M1 How the objectives of organisation meet the ‘SMART’ criteria of organisational
objectives.....................................................................................................................................6
D1 Analyse how the elements of Ansoff’s Growth Matrix have contributed to improvements
in organisation.............................................................................................................................6
TASK 2............................................................................................................................................6
2.1 Review the effectiveness of the business..............................................................................6
2.2 Develop plans to improve the business, justifying their value..............................................7
M2 Evaluate how the effectiveness of areas of the business stipulated can contribute to
organisational growth..................................................................................................................8
D2 Critically analyse how the plans developed and can lead to an improvement in the
business.......................................................................................................................................9
TASK 3............................................................................................................................................9
3.1 Evaluate the current skills of management and staff...........................................................9
3.2 Devise and justify plans for the development of skills for management and staff.............11
M3 To analyse the effect current experience, skills and abilities of management and staff may
have on business........................................................................................................................13
D3 To critically evaluate the various methods that can be used to develop the skills of
management and staff...............................................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15
.......................................................................................................................................................15

INTRODUCTION
Business health check is refers to the quantitative and measurable classification in which
company evaluate their strength and weakness. Mainly, it includes various models and theories
which used by organisation to effectively analyse their internal and external factors and its
impact on its performance as well. It may improve the chances of attaining sustainability in
Marketa place for longer period of time. In addition of this, the main purpose of healthy
business is to determine how make a healthy business and also includes a way with the aim of
improving the business activities (Zanko and Dawson, 2012). By using this, manager of the
company can easily take appropriate decision that may contribute in gaining competitive
advantage from rivals at market place. Current research is based on Hilton hotel, is a global
brand that offer full services hotel and resorts in over the world. It is brand of American
multinational company founded by Conrad Hilton in 1919. Company has 586 hotels and resort
properties along with around 215263 room in 85 countries. Report is going to discussed about
determining clear objectives and different factors that put their direct impact on the business
activities. Along with this, potential improvements is also includes in this project that help
business and operation to make effective performance. Furthermore, develops plans for
improving all the business activities and also evaluate the current skills of management and staff
is also mentioned in this project.
TASK 1
1.1 Analyse the objectives of the business
The selected business is Hilton hotel that operate their business in hospitality industry
with the aim of accomplishing their positive image at market place. Hilton hotel is American
multinational company that serve their business in world wide and offer full services hotels and
resorts to large number of customers for capturing larger market share. This was founded in 1919
by Conrad Hilton. Along with this, company has 586 hotels in over the world that help them in
increasing their profitability level. Mainly, hotel is targeted both business and leisure travellers
along with locations in major city centers. By this customers are easily attracted towards the
company and its services as well.
Mission: The main mission of Hilton hotel is to become a first choice of guest by
includes values within their activities and services as well. It help business organisation provide
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better experience to its customers for making them satisfied (Rodriguez, Peterson and Krishnan,
2012).
Vision: The vision of Hilton hotel is to fill the earth along with light and warmth of
hospitality. In this, company ensure to provide quality services to its clients in order to make
them happy. This will contribute in making a leading company at market place.
Scope: This term is related with the services like food and beverages, travel and
transportation, accommodation and many more which offered by different business organization
to sustain in market place. In context of this, scope of Hilton hotel is to serve different services of
hotel and resort that includes entertainment, food and beverage services to its clients according to
their demands. This will contribute in increasing profitability level of the company at market and
at the same time also make competitive brand image as well.
Objectives: It is important for every business organisation to set clear objectives because
it provide right direction to company in which they perform their task accordingly. The main
objective of Hilton hotel is to become a leading company by selling different room services,
meals to its customers for increasing their profitability by 15%. It is kind of long term objectives.
This type of objective can be attained by providing best quality services to its clients by
analysing their requirement. Furthermore, the short term objective of company is to increase
sales at market place. This will help in inviting number of customers towards its offerings. For
attaining the same, company is responsible for effectively execute their business activities and
also analyse actual demand of the customers. It may increase the profitability level of the
company at market place.
1.2 Explain factors that impact on the business
Business health check is an effective tool that provide support to manager in taking right
decision. Mainly it is related with evaluation of internal and external factors that impact on the
organizational activities in positive and negative manner. If company execute their activities in
effective and healthy manner that they reduce the chances of arising issues and also sustain in
market for longer period of time. For better understanding, there are some internal and external
factors which evaluate by Manager of Hilton hotel:
PESTLE analysis
 Political: In hospitality industry, clients are comes from different countries that impact
on the business because every nation has their specific government rules and regulations.
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This is the reason that Hilton hotel face issues (Walker, 2014). For this company needs to
formulate standard rules and policies that help them in improving their performance
level.
 Social: It is related with the customers taste and preferences that put direct impact on
products and services of the company (Heerde And et al, 2013). In this, Hilton hotel
needs to analyse customers demand and provide them better differentiated option to attain
their satisfaction. By this company easily attain competitive edge from its rivals.
 Economic: As Hilton hotel offer services to business class customers and travellers. Due
to inflation in UK economy may reduce the purchasing power of clients that negatively
impact on the profitability level. Thus, it is crucial for company to offer their services as
per customers requirement so that maximum satisfaction can be achieved.
 Technological: In hospitality industry, advance technology may affect the overall
performance. In this context, Hilton hotel use advance technologies within their business
which may help in attracting customers attention. Wi-Fi facilities, check-in machine and
many more that help company to improve their performance at market place.
 Legal: It is important for hotel to follow all the rules and regulation because change in
these are directly affect the working activities of the company. In this regards, legal
factors are related with health and safety laws of customers and employees which must be
follow by company at the time of serving their services. If hotel fail in following all these
laws then it negatively impact on profitability level of the firm.
 Environmental: Due to adverse climatic condition and weather, transportation services
get negatively affected which may create issue in-front of clients. This will reduce the
profitability level of the company at ,market place.
Porter's five forces model
 Threat of new entrants: Hilton hotel offer different services like food and beverages,
accommodation and so on that serve to the customers. Thus, new entrants required huge
amount of fund for operating their business. This is the main reason that there is low risk
of new entrants.
 Bargaining power of Suppliers: This is relatively low because hotel has skilled
personnel and staff. As company easily recruit talent workers in which they easily supply
their services to the customers at market place (Lussier, 2011).
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 Bargaining Power of Customers: In this, number of customers are there in market and
their bargaining power is also high because they looking for quality products on
affordable price (Saaty and Vargas, 2013). If they get better option than they can switch
the company and its services. Thus, Hilton hotel serve quality products to its customers at
lower cost. This will improve the profitability level.
 Threat of substitute products: In hospitality industry, there is high threat substitute
products as best products are available in the market place that capture customers
attention. For this, Hilton hotel needs to offer unique services to customers so that keep
happy and retain in the company for longer period of time.
 Intensity of Competition: In market place, competition is high as number of companies
like Thomas cook and many more are operate in the same field. This may create high
competition for Hilton hotel. Thus, it is important for offer differentiated products to its
customers to attain competitive advantage.
SWOT analysis
Strength Weaknesses
 High brand recognition is the major
strength of the company that make
them popular brand image.
 Innovation in technology is also
increase customers experience that may
aid in improving their performance at
market place.
 Employee retention is also strong that
create positive brand image.
 Hilton hotel is highly depend in other
properties.
 Due to different government policies
and parameters operations are largely
affected.
Opportunities Threats
 Company tries to develop innovation
within the customers services in order
to keep customers happy and satisfied.
 Implementing digital concept and
technology help in attaining success at
 Economical issues in the different
countries is the major threat for the
company.
 High competition level may reduce
company performance at market place.
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market.
1.3 Determine potential improvements to the business organisation and/or operation
Improvement is necessary within the company to improve their performance. This is
possible after analysing internal and external business environment. By this, Hilton hotel can
improve their performance also sustain in market place for longer period of time. Along with
this, it is significant for manager of the company to analyse the actual performance at market
place to gain competitive advantage from its rivals (Lencioni, 2012). This is positively impact on
the brand image of the firm. For attaining the same, Hilton hotel use Ansoff Growth Matrix to
determine appropriate options for improvement within the company:
Ansoff Growth Matrix
It is consider as a strategic tool that help in proving framework to senior manager to
effectively implement appropriate strategies in order to enhance organization growth. Mainly, it
includes four strategies which can be used by company as per analysing the organizational
situation. These can be understood by following points:
 Market Penetration Strategies: It is an effective growth strategy in which the main
ficus of company is to offer existing products on the existing market for enhancing their
market share. With the assistance of this strategy company can attain success by adopting
competitive pricing strategies. By this company use different advertising and sales
promotion to invite large number of customers towards its services. This will aid in
maximising profitability level of the company at market place.
 Market development: This type of growth strategy is also appropriate in which
company focus on selling existing products into new market for making brand image
more popular. It is an effective option through which business can increase their market
share and also invite more and more consumers. It may contribute in establishing their
competitive brand image at new market.
 Product development: In this growth strategy, the main aim of company is to introduce
new products into existing market. This type of strategy is required new and innovative
services that help in inviting customers in market place (Simoneaux and Stroud, 2011).
For this proper research and development is appropriate that may aid in understanding
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customers needs and wants. After this, Hilton hotel serve their services accordingly to
attain customers satisfaction.
 Diversification: This strategy is totally different from other one in which company
introduce new products in the new market. It is quite riskiest strategy in which firm tries
to meet customers needs by providing them quality services as per their requirements.
From all these strategies, Hilton hotel can select market development strategy in which
company sell existing products into new market with the aim of grabbing opportunities to
established their competitive brand image. By this more and more customers get attracted
towards its offerings which may aid in increasing profitability level at market place.
M1 How the objectives of organisation meet the ‘SMART’ criteria of organisational objectives
For meeting organisational objectives, it is important for company to make their products
more effective and quality base. In this, Hilton hotel serve quality products and services to its
customers to effectively analyse their demands (Wheelen and et.al., 2017). The objective of
Hilton hotel is measurable in term in which company wants to increase their profitability by
15%. It help in inviting more and more customers towards the company services. This objective
can be attained in upcoming 2 years. By satisfying customers requirement by providing them
values company can easily make their image more competitive and famous as well. It
automatically raise the profitability at market place.
D1 Analyse how the elements of Ansoff’s Growth Matrix have contributed to improvements in
organisation
It is important for company to implement improvement as per continuous basis to make
keep overall performance more effective and positive as well. In this regards, Hilton hotel use
Ansoff matrix that help in proving strategic option to improve the business activities. For this,
company select market development strategy in which company offer existing products into new
market with the aim of attracting customers towards its offerings. This will directly contribute in
attaining higher success at market place. Furthermore, this type of Matrix also provide better
strategic direction through which Hilton hotel can easily implement appropriate strategies to
accomplished their competitive brand image.
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TASK 2
2.1 Review the effectiveness of the business
For attaining success at market, it is important for business to includes effectiveness
within the activities and function as well. Mainly, it is related with level of quality products
provide to customers to fulfil their needs and wants (Cadle, Paul and Turner, 2014). Along with
this, effectiveness is also includes in task and activities that may leads in attaining achievement
within the organisation. In context of this, company also responsible for review the effectiveness
to effectively evaluate the actual performance at market place. For this, Hilton hotel includes
different function to review the effectiveness are below:
Product and service: Hilton includes hotel and resort services, food and beverage that are
related with customers demand and requirement as well. In this, company review and analyse its
products and services to determine necessary changes (Porter and Lee, 2013). With the help of
this, company improve their product line and provide satisfactory services to its large number of
customers in order to meet their satisfaction. This will contribute in enhancing the
competitiveness of the organisation at market place.
Marketing: This function is related with promoting company products and services to
keep customers aware bout its offerings. Along with this, it is also related with the promotional
strategies that used by company to increase awareness at market place. Thus, Hilton hotel needs
to implement effective promotional strategies that help in making brand image of the company
more competitive by offering satisfied products customers as per their requirements.
Finance: This function is also play a significant role as it consider as a backbone of the
business organisation to effectively run their activities. In this regards, Hilton hotel provide
proper and adequate fund to make quality products for satisfying customers needs as per their
preferences. As Hilton hotel has effective finance function that help in serving quality and
innovative services to the customers in order to attain their higher satisfaction.
Business image: It is one of the important function of organisation to sustain in
competitive environment. In this, company is responsible to keeping their brand image strong
and sustain in market. This is beneficial in inviting more and more customers towards Hilton
hotel services. In context of this, company has renowned image in UK market that may assist in
keeping customers base strong.
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2.2 Develop plans to improve the business, justifying their value
Business plan is play a vital role in organisation as it provide clear direction to the
manager of the company to attaining goals in systematic manner. For attaining the same, it is
crucial for company to develop effective plan and strategies that may support them improving
the chances of accomplishing strategic objectives (Laws, 2015). By implementing as well as
formulating proper plan, management of Hilton hotel may improve their productiveness and at
the same time also reduce any kid of errors. Along with this, plan is related with the better
functioning analysing of internal and external environment of hotel industry. For making brand
image more productive, Hilton hotel is responsible for developing plan after analysing of current
trends and past changes within the market (Porter and Tanner, 2012). After this, management of
Hilton hotel can be easily compete their competitors and also enhance their standard
performance at competitive market. Mainly, Hilton hotel develop plan and strategies for
increasing their sales and profitability at market place. In this context, there are some ways used
by company for improving:
Executive summary: This business plan is related to the Hilton hotel in which company
tries to improve their performance by serving quality services. By this they improve their
profitability level at market place. This plan includes different aspect that make it more effective.
All these can be understood by following points:
Vision: The main vision of company is to be a favourite brand in customers mind by
providing the satisfied services.
Mission: The main mission is to serve best quality products by making continuous
improvement. This will improve satisfaction of customers at market.
Objectives: To offer differentiated products in enhancing overall sales by 15%.
Financial management system: Under this, manager of hotel make plan and strategies
for managing the fund within their organisation to save time and cost of the company. By using
this plan, manager easily maintain adequate find that may aid in reducing unnecessary wastage.
This will contribute in accomplishing competitive image.
Performance monitoring: It is also a important step of improving business in which
manager of Hilton hotel monitor employees performance as per continuous basis to evaluate
their productivity level. By this they can easily make an effective plan to enhance their
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weaknesses at workplace. Thus, performance monitoring plan help workers to do their best for
attaining their set goals.
Market analysis: Understanding market trends and changes is important for company to
increase their sales and profitability. In this Hilton hotel needs to analyse as well as evaluate the
trends which currently present in the market place. By this company can easily make all the
necessary changes within their activities and working structure as well. By this all the objectives
and goals can be achieved effectively.
Roles and responsibilities of management: In hotel, every person is responsible to
understand their job related roles and responsibilities to effectively perform their task activities at
workplace. By this, growth of the company can be increased. Along with this, all the job and
responsibilities of should be allotted as per employees skills and capabilities. This may help in
improving workers performance and at the same time also reduce errors in the working activities.
M2 Evaluate how the effectiveness of areas of the business stipulated can contribute to
organisational growth
Within the business organisation, effectiveness in its activities and products and services
is most important as it support in improving the customers experience. In Hilton hotel,
effectiveness is determine in different organizational function like marketing department,
company products and services, finance department and many more that help in creating positive
image of the company at external business environment (Heerde And et al, 2013). In this context,
finance department includes effectiveness by including sufficient and adequate fund that help in
making quality products for its customers. It help in enhancing the brand image and market share
as well in competitive market place. Along with this, marketing department also includes
effectiveness that may contribute in promoting products of the company in-front customers in
order to make them aware. It positively impact on the productivity and growth of the company
by sustaining them in market place for long period of time.
D2 Critically analyse how the plans developed and can lead to an improvement in the business
Improvement is crucial within the organization make necessary changes to develop
growth level. For this, company develop effective plan and strategies that help in providing
guidance to operate business activities in systematic way. It help manager of Hilton hotel at the
time of taking right and logical decision for making image of the company sustain as well as
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competitive at market place. This is possible by developing an effective plan that support
business to compete their competitors at market place.
TASK 3
3.1 Evaluate the current skills of management and staff
Human resource management is play a significant role in business organisation to
manage workers activities at workplace. Along with this, it is also related hiring, staffing,
directing, selecting and many more that help employees to capable to perform their task
activities. In this context, Hilton hotel aims to become famous and competitive brand for offering
quality values by effectively managing and directing human resource at workplace (Fotiadis,
Vassiliadis and Piper, 2014). As there are some skills which required by management and staff
within the organization:
Managerial skills: Planning: Under this, Hilton hotel make an effective plan to manage the employees at
workplace. Mainly it is related with the gathering determining and analysing the workers
requirement that help them in effectively executing their working activities. Organising: In this manager of Hilton hotel allot work to employees as per their
capabilities to accomplishing their target. In this context, it is also important for making
workers productive so that they easily manage their activities at workplace. Directing: Manager of Hilton hotel to provide proper guidance to workers to make them
productive and able to execute their task activities at workplace. This will improve the
chances of attaining positive outcomes.
 Controlling: Under this, Hilton hotel manager compare the performance of the workers
with others and set target. By this actual performance can be effectively analysed and
also improve accordingly.
Operational skills: Communication skill: Operational manager is responsible for know about how to
communicate with workers and customers as well. By this manager of Hilton hotel easily
provide them quality services in order to keep them satisfied. This will improve the
chances of enhancing overall sales and profitability level as well.
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