Business Health Check Report: Hilton Hotel Objectives and Strategies

This report provides a comprehensive business health check of Hilton Hotel, a leading brand in the hospitality sector. It begins with an introduction to business health checks and then analyzes Hilton's objectives, including both short-term and long-term goals, framed within the SMART framework. The report then examines internal and external factors affecting Hilton's business operations, utilizing PESTLE and Porter's Five Forces models to assess the political, economic, social, technological, legal, and environmental influences, as well as competitive forces. A SWOT analysis is also included to assess strengths, weaknesses, opportunities, and threats. The report further explores potential improvements to Hilton's business organization and operations, applying Ansoff's Matrix to identify growth strategies such as market penetration, market development, product development, and diversification. The report concludes with an examination of business effectiveness and a discussion of Hilton's strategies to maintain its position in the competitive hospitality industry. References are included at the end.

Business Health Check

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK1.............................................................................................................................................1
1.1 Analysis of objectives of business........................................................................................1
1.2 Factors affecting business organisation................................................................................2
1.3 Potential improvements to business organisation or operation.............................................6
TASK2.............................................................................................................................................7
2.1 Examination of effectiveness of the business.......................................................................7
2.2 Develop plans to improve the business, justify their value...................................................8
TASK3.............................................................................................................................................9
3.1 Evaluate current skills of management and staff..................................................................9
3.2 Devise and justify plans for the development of skills for management and staff...............9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
.......................................................................................................................................................12

INTRODUCTION
Business health check means to analyse business operations that whether managers are
able to perform business operations in effective way or not. Business perform operations to
achieve targets but there are some factors which affects business operations in adverse so, there
is requirement of check in business operations (Chapman, 2012). There are possibilities that due
to change in working style, it is essential to make strategies which are competent to market.
There is use of various changes which are effective and significant for organisational growth. It
is essential to appoint official personnel which helps to make organisational status strong. This
report is based on Hotel Hilton which is one of the best brand in hospitality sector. In this report,
there is discussion about focus of business, development of plan for business, evaluation and
development of skills of managers and staff.
TASK1
1.1 Analysis of objectives of business
Hilton is the hotel which has global brand recognition which provide full- furnished hotel
services including resort services, dinning facilities, bar facilities, accommodation, transport
facility etc. according to demand of customer. This is largest hotel brand in hotel industry. This
association ahs target of both business and leisure travellers, etc. These hotels provide services
for picking and droping customers from Airport. This hotel chain was started on 31 May, 1919
by Conrad Hilton. This hotel has around 570b hotels. Hotel Hilton has headquarter in Virginia,
United State. Hotel Hilton has around 163000 employees. It operates their buiness in 5284
locations. In 1919, Conrad Hilton purchase 40 room Mobley hotel in Cisco, Texas. In 1925, they
firstly used named Hilton for Hotels. In 1943, Hilton purchased Roosevelt Hotel and plaza Hotel
in New York. They come with concept of television in hotel rooms. In 1954, they acquired Satler
Company for $111 million. In 2006, Hilton Hotel owned two independent hotel outside US. In
2009, Hilton opened Canada's tallest hotel of 58 stories. In 2013, they constructed hotel of
around 300 rooms. In Burma (Colman and Dave, 2013). In 2016, Hilton N’Djamena opened in
Chad. It was the brand's first property in the country and the 100th country Hilton began
operations in worldwide. In 2018, Hotel Hilton opened first hotel in Bangladesh and Serbia.
Short term objective- Hilton Hotel's short term objective is to reduce waste by 20% and
reserve water up-to 10% within 1 year.

Long term objective- Long term objective of Hotel Hilton is to advance renewable energy
as a source of power for working style within next 3years. Behind this aim is not to reduce its
carbon wastage but to create commercial infrastructure for powering hotels and corporate
offices.
These objectives can be under stood more clearly with concept of SMART objectives
(Dennis Jr, 2011).
S- Specific: Above mentioned objectives are specific which helps to perform business
operations in specific manner. As managers are thinking to reduce wastage and consumer water,
thee are specific objectives.
M- Measurable: Above mentioned objectives can be measured as it is easy to make
measure wastage and conserve water. In long terms goals, to reduce amount of carbon exhale by
equipments of organisation through proper maintenance..
A- Achievable: These targets are achievable and it is easy to perform business operations
in better way. There is requirement of awareness among workers.
R- Realistic: This objectives are realistic for performing business operations. As these
objectives helps to perform business operations to secure environment. These objectives are
realistic for achieving targets.
T- Time bound: This is essential to have some time for achieving targets. It is essential to
make changes in working style. Short term targets of Hotel Hilton has to be achieved in 1 year,
while long term in 3 years.
1.2 Factors affecting business organisation
Hotel industry has various factors that affects its operations. It is essential to analyse
them and undertaken actions to improve working style. Hotel Hilton has good image in industry,
so it is essential to work according to demand of consumer. It is tough to maintain good image.
So to maintain goodwill, it is essential to alter business policies (Fink, 2012). There is effect on
business operations through internal as well as external factors., in internal factors, parties related
to business are included such as workers, management team etc. while in case of external factors
parties which are indirectly related to business are included such as cultural differences,
environmental changes etc.
To analyse external factors, PESTLE and Porter's five forces model are used by managers
of Hilton. These are not in control of managers of Hotel Hilton but it is essential to alter policies

so organisational operations can be performed in appropriate way.. Porter's five forces model
helps to provide knowledge about growth prospects.
PESTLE ANALYSIS
Political Due to change in political party managers of Hotel Hilton has to
come with concept of lobbying. This helps them to deliver
hospitality activities in better way (Fisman and et. al., 2012).
Economical Hotel has seasonal and off- seasonal time. e.g. occupancy in
Olympics is more. While this situations gets reversed at the time of
completion of Olympics. This affects sales and profits of Hotel
Hilton. There is economic crises for association. This affects
economic condition of country too.
Social There is difference in culture, religion of customers who are visiting
Hotel Hilton. So it is essential to analyse them and take actions
according to demand of customer. Consistent services can not be
provided to all customers.
Technological As Hotel Hilton has good name in market, so it is essential to make
changes in their technology. This helps to improve working style
and reduce wastage. As managers of Hotel Hilton is thinking to
reduce wastage and conserve energy hence there must be use of
solar heaters.
Legal Legal factors affects business operations of Hotel Hilton. Due to
change in jurisdiction of UK, managers of Hotel Hilton has to alter
business plans and procedures. There is Visa restriction for Hotel
Hilton in various countries.
Environmental Environment is the component which has to be protected. It is
essential to make changes in working style, so environment can be
protected (Ikeda and et. al., 2011). There must be conservation of
resources and more emphasise has to be given on renewable
resources. There is difference in demand of Hotel Hilton's
consumers as per change in climatic factor, so this must be kept in

mind by administrator.
PORTER'S FIVE FORCES MODEL
To analysis external factors which affect business, managers of Hotel Hilton use Porter's
Five Forces model. There are some positive as well as negative aspects which helps to perform
business operations in effective and efficient manner (Jordan and Vazzana, 2012).
(Source: Hilton Porter’s Five Forces Analysis, 2018)
Bargaining power of suppliers- Bargaining power of suppliers of Hotel Hilton is low. As
managers of this association purchases from around 4000 supplier situated in various parts of
world. Switching cost of suppliers are low, so there are less possibilities of diversity in suppliers.
Threat of substitute- This factor is not significant for hotel industry. As there is
competition in hotel industry, so people may prefer to avail services from other brands. At the
same time people may prefer to stay at relatives homes (Kitchin and Dodge, 2011).
Illustration 1: Hilton Porter’s Five Forces Analysis

Bargaining power of buyer- As there is difference in demand of customers so it is
essential, to make strategies which attracts customers. When managers profit services as per
satisfaction of customers, this helps them to work profitably in long run.
Threat of new entrances- There is threat of new changes happening in hospitality
industry. It is essential to make changes which is effective and signifiant for growth. There is
requirement of changes in services. Innovation helps to attract new customers to avail services
and this helps to increase profitability.
Rivalry among existing firms- As there is competition in Hotel industry. Hilton has many
competitors such as Marriott, Britannia, etc. So policies has to be framed according to
competitor's this helps to provide satisfaction to customer (Porter and Tanner, 2012).
SWOT ANALYSIS
SWOT analysis helps in analysing internal factors of business operations. This helps to
make changes in factors of business so there is smoothness in working style. SWOT analysis of
Hotel Hilton is as under-
Illustration 2: SWOT Analysis
(Source: SWOT Analysis, 2018)
Strength
 Top level personnel of Hotel Hilton has
Weakness
 Hotel Hilton has wide debts which

much experience so they can perform
business operations in appropriate
manner.
 Hotel Hilton has good policies for
maintain long term relations with
customers. They have wide range of property
which is effective and signifiant for
providing customer satisfaction
(Royne, Levy and Martinez, 2011).
affects business financial positions
(Scherpa and Schirmer, International
Business Machines Corp, 2014).
 Manager of Hotel Hilton are less
flexible towards market changes.
Opportunities
 Business expansion is one of the best
opportunity for Hotel Hilton.
 They must focus on research and
development. Manager must give more focus on
strategic alliance.
Threat
 Lack of security equipments.
 Negative alterations in macroeconomic
climate.
 Lack of ethical working style.
1.3 Potential improvements to business organisation or operation
Hilton has good image in industry, managers has to make strategies through which they
can perform business operations in effective manner. In hospitality industry changes are taking
place very frequently, so it is appropriate for alter policies. Managers of Hotel Hilton use
Ansoff's Matrix which provide knowledge about growth prospects of business. There is use of
strategies which helps to improve areas of growth.
Market penetration- Market penetration means to launch existing product among
existing people. This is done to increase sales of organisation. When some increment is done in
services so market penetration is done (Slade and et. al., 2014).
Market development- In market development existing services are served to new people.
This can be done by Hotel Hilton when they open new outlet at some location. This helps to
increase profits of company and manger must focus on improving quality of services.

Product development- Hotel Hilton come with various new services such as children's
menu, cribs facility, etc. This helps to give satisfaction to customers. In Hotel sector, it is
essential to come with services.
Business Diversification- Business diversification means to launch something which is
not related to existing business. In this new services is launched by managers of Hotel Hilton in
society.
Elements of Ansoff's matrix is effective as it helps to provide knowledge about change in
working style. Market penetration and product development are two factors which helps to make
strategies which helps to attain growth and development to Hotel Hilton. In Hotel there are
varieties of customer having different demand, so manger has to motivate subordinates for
analysing demand and then provide services (Sutton and et. al., 2012).
TASK2
2.1 Examination of effectiveness of the business
Business effectiveness means to perform business operations in appropriate way, which
helps to give correct and fair information to stakeholders. It is essential to perform business
operations in proper way through which helps to make good image in society. Hotel Hilton is
one of the best brand in terms of Hospitality, so manager has to make strategies according to
market trends. As per change in external environment, managers has to alter business policies
which helps to achieve targets on time. Managers has to review business operations performed
by subordinates. Some areas where examination is effective are as under-
Products/ services: Hotel Hilton deals in service sector, it is essential to view business
operations through which effectiveness can be achieved. As per demand of customer, it is
essential that manager has to alter services. As there is difference in demand of family and
students having educational tour, so it is essential to alter services.
Marketing: marketing is the department which helps to perform business operations in
appropriate way. As Hotel Hilton launch something new as their services, it must be marketed
among society through marketing department. This has direct impact on sales of Hotel, so top
level managers of Hotel Hilton has to keep eyes on marketing techniques (Urbanos-Garrido and
Lopez-Valcarcel, 2015).

Sales: Sales in Hotel means occupancy rate in hotel. There is over occupancy in hotel
Hilton at time of occupancy. So to check business health, when sales can be checked with the
help of sales department. There must be proper record keeping to sales which gives correct
information about Hotel Hilton.
Finances and Record keeping: Finance department works in order to jeep proper inflow
and outflow of finance. It is essential to make policies which provides knowledge about profits
of Hotel Hilton. Book keeping means proper recording of business. Managers of Hotel Hilton
must appoint expert which keeps proper record. This helps to know effectiveness of business
operations.
Staffing: Staffing means to select candidates for various posts in Hotel Hilton. There are
many outlets of Hilton, so it is essential to make policies through which changes best candidate
can be placed at post. As changes are taking place in business environment, so manager has to
select personnel which are ready to accept changes (West and Dawson, 2012). This helps to
increase effectiveness of Hotel.
Business image: Hotel Hilton has good brand image in hospitality industry. It is essential
to select approaches which are effective for organisational growth. It is necessary to maintain
brand image which helps to make good and long term relations with customers.
2.2 Develop plans to improve the business, justify their value
Plans helps to provide justification to business activities. Top level managers of Hotel
Hilton are farming plans and convey it to customers through which short and long term
objectives can be achieved. Business plan of Hotel Hilton are as under-
Business description- Firstly objectives have to be conveyed by managers of Hotel
Hilton to subordinates. This helps to make strategies according to objectives. Managers of Hilton
wants to use renewable energy, so activities has to performed accordingly.
Market Analysis- Market analysis is done by top level managers of Hotel Hilton. In this
managers analyse sources through which set targets can be achieved. This is time consuming
process (Chapman, 2012).
Market/ sales techniques- Sales is essential component which helps Hotel Hilton to make
long run in industry. When managers are thinking to reduce wastage, then there must be use of
equipments and this must be conveyed to consumers also.

Staffing requirement- Staff is required to attain objectives. There must be some
equipments through which use of renewable energy is more and activities are performed as per
target.
Funding requirement- To make use of new techniques, there is requirement of funds
such as water conservation machines, solar coolers, etc. This planning is done by top level
managers of Hotel Hilton.
Monitoring and controlling- At last monitoring is requirement. In this analysis is done
whether activities are done in appropriate way or not. In case of negative results, corrective
actions must be taken.
Above mentioned plan is fruitful for achieving targets. Through this managers of Hotel
Hilton are able be conserve 5% of energy (Colman and Dave, 2013).
TASK3
3.1 Evaluate current skills of management and staff
Skills of workers plays vital role in achieving targets. It is essential to make strategies
which are effective and efficient for market growth. There are various skills which helps to
perform business operations in appropriate way.
Technical skills: Technical skills is required to provide electric services, engineering,
etc. in Hotel Hilton. These skills are used to resolve small day to day problems. These skills has
to trained on regularly basis due to change in working.
Operational skills: This is effective for bridging gap between top level and lower level
managers. In these skills communication, leadership, motivation skills are used. It is effective for
making operations done in appropriate way (Dennis Jr, 2011).
Managerial skills: Mangers mare included in these skills. It is essential to come with
approaches which are effective and efficient for organisational activities. In these skills analysis
of market regularly, quick decision making, team framing, etc. are include.
So from the above discussion it is clear that all the skills plays vital role in running
business organisation. It is effective for making changes in roles and responsibilities of workers.
3.2 Devise and justify plans for the development of skills for management and staff
Following is the development plan for management and staff:
Skills Technique of Time required Main target

improvement
Strategies
development
(management)
Online sources, books,
journals, etc. are
effective sources for
developing strategies
by managers of Hotel
Hilton.
3 months As there are many
situations which are
essential for achieving
short and long term
goals.
Adaptable to change Employees can learn
to be flexible through
seminars, conference
and motivation of top
level managers.
Continuous process Hotel Hilton is able to
serve better services
and employees will
become calm and cool
while dealing with
changes.
Above mentioned skills are essential for growth of association. Managers of Hotel Hilton
has to come with approaches which are effective and efficient for growth of association. There is
requirement of motivation to employees by managers (Fink, 2012). Hotel Hilton must organise
learning and training programmes for workers.
CONCLUSION
From the above discussion it is clear that there is requirement of some measures which
provides knowledge about correctness of business activities. It is effective for growth and
development of association. Ansoff's Matrix helps to make strategies according to areas where
expansion is possible. PESTLE analysis helps to deal with external factors of business
operations. Planning is essential as it helps to make changes in business policies through which
targets in appropriate way. There is requirement of polishing skills tom perform business
operations in appropriate way.