A Business Health Check Report for Hilton Hotels: UK Market Analysis

This report provides a comprehensive business health check of Hilton Hotels, examining its performance within the UK market. The analysis begins with an overview of Hilton's goals and objectives, followed by an exploration of the factors influencing its business environment, including political, economic, social, technological, legal, and environmental (PESTLE) factors, as well as an assessment using Porter's Five Forces model. The report also incorporates a SWOT analysis to evaluate internal strengths and weaknesses alongside external opportunities and threats. Furthermore, it applies Ansoff's growth matrix to identify potential growth strategies. The report then assesses Hilton's business effectiveness, focusing on areas such as products, services, marketing, sales, finance, staffing, and business image. Finally, it outlines plans for business improvement, covering executive summaries, marketing strategies, financial management, staffing considerations, and monitoring processes. The report concludes with an evaluation of the current skills of management and staff, emphasizing the importance of communication and other key skills for success.

BUSINESS HEALTH CHECK

Table of Contents
INTRODUCTION...........................................................................................................................4
LO 1 ................................................................................................................................................4
1.1 Analyzing the goals and objectives of Hilton Hotels.......................................................4
1.2 Explaining factors which affect the business environment of Hilton Hotels...................5
1.3 Ansoff's Growth Matrix of Hilton Hotels.........................................................................9
LO2................................................................................................................................................11
2.1 Effectiveness of Hilton...................................................................................................11
2.2 Plans to improve the business.........................................................................................11
LO3................................................................................................................................................12
3.1 Current skill of management and staff...........................................................................12
3.2 Plan for the development of skills in staff and management..........................................13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

Illustration Index
Illustration 1: PESTLE Analysis......................................................................................................7
Illustration 2: Porter's Five Force Model.........................................................................................8
Illustration 3: SWOT Analysis.......................................................................................................10
Illustration 4: Ansoff's Growth Matrix..........................................................................................11

INTRODUCTION
Business health check is a process which is used to analyze overall performance of the
organization operating in their target market. It helps them to understand their management
system more to do respective change according to the requirements. This also helps to track
progress of organization from time to time. This report will focus on Hilton Hotels Company
which is a leading hospitality industry in UK and study its business environment which includes
internal as well as external factors which affect them by performing PESTLE and SWOT
analysis with carrying out the assessment of Porter’s 5 Forces Model on organization. It will also
focus on effectiveness of business and evaluating current skills of management and staff of
organization.
LO 1
1.1 Analyzing the goals and objectives of Hilton Hotels
Hilton Hotels Corporation, is an American multinational hospitality company that
manages and franchises a broad portfolio of hotels and resorts worldwide. It was founded
by Conrad Hilton in 1919, which is now led by Christopher J. Nassetta.
Hilton Hotels has various number of aim and objectives to achieve in the future to
increase their business in UK. They try to provide better services to their customers which they
can enjoy while staying in their property. Some other objectives of Hilton Hotels are as follows:
 Provide variety of options in rooms to choose from for their customers.
 Hilton Hotels wants to grow its business to other countries and withstand pressure from
their competitors.
Some SMART objectives of organization which they are planning to achieve in the
upcoming years are as follows:
 There aim is to increase overall growth by 90% at the end of fiscal year. This will help
the company to increase their sales in UK.
 They are trying to introduce new hotels and resort with fine class facilities for their
customers in the next five years which can help them to attract more customers as it will
be cheaper in pricing context (Joshi and et.al., 2015).
 They are planning to expand their business in various countries which according to them
will be very beneficial for the company.

1.2 Explaining factors which affect the business environment of Hilton Hotels
There are various factors which affects business environment of organization in target
industry. These factors can be internal as well as external which can affect its functions. External
or macro environmental factors can be identified by PESTLE analysis or by implementing
Porter’s 5 forces model in the system. By SWOT analysis, company can evaluate their internal or
micro environmental factors.
 PESTLE analysis of Hilton Hotels: Hilton Hotels has been in the news frequently. It is
the fastest growing organization. However, it still continues to grow. Here is the PESTLE
analysis of Hilton Hotels (Campanotti, B. and et.al., 2016).
Political Factors Economic Factors
 Political climate in tourist destinations.
 International relations, increased
tensions with countries due to tourist
attacks develops new problems and
terrorist’s numbers
 High exchange rate in USA
 Slow economic growth also affects its
business.
Social Factors Technological Factors
 Number of travelers has increased and
the average spend has also increased.
 There is a huge effect of Cultural
change which is effecting their resort
type/branding (Carraher, 2018).
 There is a great impact by the
introduction of Airbnb services which
is an online retail services of rooms
provided to tourists.
Legal Factors Environmental Factors
 Status of Airbnb services.
 Airbnb hosts do not have to pay any
lodging taxes.
 Increase minimum wage.
 Climate change is a big factor.
 Long term increase of electricity costs
due to changing to Eco and enviro
friendly alternative power

Porter's Five Forces Model of Hilton Hotels: This model is useful to understand
organization's current position in the industry which can help them to improve their services
provided to their clients.
1. Bargaining Power of Buyers: In this method, customers play an important role as they
can lead to lower the prices of their products or they have power to increase costs by
adding features, services and quantity. In this situation where sellers have too much
power over buyers, opportunities can emerge for others. Hilton Hotels can face costs
switches for upgrading their higher quality or performance outputs, for example: rooms
availability, restaurants, etc (Hilton Hotels PESTEL Analysis: great impact of political
factors, 2018).
2. Bargaining Power of Suppliers: It is the most significant force which affects Hilton
Hotels services in UK. There are so many substitutes in hotels which are available in
market which can play a great threat to organization. To compete with this, they have
Illustration 1: PESTLE Analysis
(Source: What is a PESTLE Analysis and how can it help?, 2015)

managed their rates in such a way which can be easily affordable by their customers
(Davis and et.al., 2018).
3. Threats of new entrants: This can be a great threat for organization as new companies
operating in the same industry are delivering their services at an affordable cost for their
customers. Hilton Hotels has to come up with new strategies to overcome this issue.
4. Threats of substitute: There are so many companies which are operating in the same
industry and deliver services which can act as a barrier for them. There are so many other
factors also like pricing, quality, availability, etc.
5. Rivalry among existing competitors: As Hilton Hotels is operating in different
countries so, it has so many rivalry competitors. For this, they have to come up with new
ideas like sharing rooms in which customers can share rooms if they want (Newton,
2014).
SWOT Analysis of Hilton Hotels: This method is used to analyze the strengths and
weaknesses of company and helps to evaluate opportunities and threats available in the market.
Illustration 2: Porter's Five Force Model
(Source: Porter’s Five Forces and Payments Innovation,
2018)

Strengths Weaknesses
 It is a well-recognized brand.
 They have so many options available in
rooms.
 They have cashless payment system.
 They provide additional services to
their customers, like bars and pubs.
 There prices are slightly high.
 There are privacy concerns.
 The idea can be easily taken over by
others. Nothing will prevent
competition from presenting the same
product.
Opportunities Threats
 It can exploit new and big markets in
countries like India where these
services are inconvenient and
expensive.
 There are so many other hotels also
which can be replaced by Hilton for
example, Marriott Hotels (SHTAL and
et.al., 2018).
Illustration 3: SWOT Analysis
(Source: Hilton Hotels SWOT Analysis and Creative Brief, 2016)

1.3 Ansoff's Growth Matrix of Hilton Hotels
Ansoff's growth matrix method helps to understand their existing marketing strategies
and manages to plan according to their current position for the organization. With the help of this
process, Hilton Hotels can identify their growth opportunities based on market research. Ansoff
method identifies 4 growth strategies of the organization (Bonelli, 2017). These are as follows:
1. Market Penetration : Market penetration is a process which is used to deliver their
existing services into existing markets. Hilton Hotels engages in market penetration
through applying various sales and promotions techniques for their customers. These can
include discount offers ob selected services such as prices of their rooms.
2. Market development : Market development is a strategy which helps to find new
markets for their existing services. Company is currently operates more than 570 hotels
worldwide which helps them to have a huge amount of customers (Grant, 2016).
3. Product development : This method involves developing of new products to provide to
the existing markets for their consumers. Currently Hilton Hotels is providing a wide
range of services, which includes, swimming pool, gymnasium, games room, etc.
4. Diversification : Diversification is a process which involves developing new services in
new markets. It will help them increase their customer rate. This strategy is very risky to
implement (Blockeel and et.al., 2016).
Illustration 4: Ansoff's Growth Matrix
Source : (Hilton Hotels Ansoff Matrix, 2018)

LO2
2.1 Effectiveness of Hilton
Business effectiveness mainly focus on some important business issues such as risk
power, how to increase revenue, how to controlling on cost etc. to improve the performance
power of a company and to achieve all the objective and goals of a company business try to
increase its efficiency. Hilton also increases its effectiveness in some particular areas which are
mention below:
Products and services: Hilton provide online booking service to those who want
accommodation facilities. It provides the best food service, park facility, bars and spa (Schramm,
2018). It increases its services by means of providing flat 20 percent discount to some VIP
customers.
Marketing: it follows seven P's of marketing in order to increase its efficiency. It always
provides new offer such as discount offers. These exciting surprise tactics help in marketing and
in workplace this practices help to generate positive image in front of its customers.
Sales: it's always keep attention for customer's need and organize online loyalty programs which
help it to boost customer retention. Customers also feel proud when Hilton provide special room
service and food facilities to VIP customers
Finance: Hilton is quite financially strong because it has a brand image in UK and people feel
more comfort when they stay in this hotel (Shepley and et.al., 2017).
Staffing: It always tries to increase the efficiency of its staff. It wants to create friendly
environment with its customers and offer different types of accommodation faculties and make
its customers feel proud while having such a high standard of room services.
Business Image: Hilton has a brand image in UK and it always tries to increase its image in
front of its rivals by offering different and special offers on its booking and conducting loyalty
programs will help to attract special and VIP's customers (Hamoudi and et.al., 2018).
Record Keeping: Hilton is not maintained its record because it offers online service and all the
bookings are done through software system that is why it has poor record keeping. Only few
bookings are save in its software only.
2.2 Plans to improve the business
To plan a business, it consists many steps which are mention below:

Executive Summary: Hilton is a hotel that provide various facility such as accommodation,
customer service, provide food on demand and transportation facility. Its main purpose is to
serve for customer and provide them best facilities by keep their demands and needs in mind
(Kobayashi, 2018).
Description: Hilton offer online services to its customers which help to increase its efficiency
because almost half of the world is depended on social sites and they enjoy the facilities which
offer by Hilton.
Marketing strategies: the hotel always try to offer new strategies in order to attract more
number of customers such as offer provide discount vouchers and flat 20 percent off to special
VIP customers and many more.
Financial Management system: This are most important factors which should be analyzes
before planning because finance is the only thing which affect entire system of a business.
Staffing: All the people who work with a company should have strong communication skill and
be honest towards their work because it helps to create good image for a company as well as for
staff also (Schramm, 2018).
Monitoring: strong monitoring power will help to develop good business plan. To analyzes
about their rivals so that it will help what extra things are needed to add on a company for more
effectiveness.
LO3
3.1 Current skill of management and staff
Staff and management should have three basic skills for performing well in company that
are mention below:
Communication: A strong communication skill always help to attract number of people. A good
speaker is influence its visitors. Company like Hilton, all the management staff as well as sales
man should have strong communication power (Datta and et.al., 2018).
Technical skill: people who work in Hilton should be skilled in some particular task because no
one is skilled in every type of work. Each person or employee have their own special skill which
help to overtake a particular task.
Operational Skills: it is an ability which help to transfer data into resultant services. Operational
skills help to operate in some special task so that an employee have an opportunity to prove
himself in some particular task (Train and Develop staff,2018).

Leadership quality: housekeeping staff should have strong leadership quality because it will
help to make positive attitude in front of its customers and be confident on their work.
Strong managerial Skill: staff should have to know how to manage their own work this is
called managerial skill. A strong managerial skill will help to keep employee in right direction
and complete its task on right time at right place (Kazieva, Khanova and Kayasheva, 2018).
Hilton hire skilled person for its vacant position. It wants to make good relation with their
staff and due to this the company try to hire those special labors who are perfect in some special
task. The current skill of its staff and management are quite impressive and have good
communication skill as it help to attract number of customers. Whenever the company hire new
employees they first train them in order to test the efficiency of a person then the owner allot
them work as per their efficiency. Overall the skill's management and its staff is help to improve
the performance of a company and to achieve its targets and goal.
3.2 Plan for the development of skills in staff and management
To improve the existing skills of management and staff, it is necessary to develop a plan.
Whenever a new employee is join a company, firstly analyzes its performance level and its
efficiency to do a work. The staff should be smart in communication and if they do not then
organize seminars and training session for their strong communication skill because it the best
way to attract more number of customers. Management team should measure the ability of every
employee because it will help to make strong coordination between whole staff and upper
authority (Shepley and et.al., 2017). After it, take proper feedback about the seminars and
training sessions. If still authority find something missing then again conduct training for
individual. Management staff of Hilton should be confident on their task and it they are not then
particular period should be decided for their training time after that they will come to give proper
service to their customers. Hire some supervisors in order to monitor the performance of all the
staff and to take care them. A strong training session will help to develop good leadership
qualities among them and through this plan, upper management authority can easily develop
strong skills in their staff and team management.
CONCLUSION
By summing up above report it is concluded that business health check up affect the
performance of Hilton. It helps to understand the deep meaning of business and its objectives
which meet the smart criteria. From above report, it is also concluded that there are many

internal and external factors which affect the business growth and development. The report
shows different improvement operations which help to run Hilton more effectively. It also
presents strength and weakness of Hilton and how Ansoff's growth matrix will help to achieve its
target. It also shows its financial position and review the effectiveness of different areas such as
product or services, marketing and sales etc. It also presents plans to improve the effectiveness of
hotel and help to gain more profit and generate revenue. The report shows the current skill of
management and staff and developing new plan in order to develop more skills in the
management team.

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