Analysis of Hilton Hotel's Business Environment and Stakeholders

This report provides a comprehensive analysis of the business environment surrounding Hilton Hotel. It begins by exploring the different types of organizations and their purposes, with a specific focus on how Hilton, as a private entity, operates within the hospitality industry. The report then delves into Hilton's stakeholders, including shareholders, management, employees, banks, creditors, suppliers, customers, local communities, and trade unions, evaluating how the hotel meets their respective objectives and responsibilities through consumer and employment legislation. The report also examines the impact of economic systems, fiscal and monetary policies, competition policy, and global factors on Hilton's operations, and how market forces shape the organization's responses. Furthermore, the report investigates pricing decisions, market structures, and the influence of business and cultural environments on Hilton's behavior. Finally, the significance of international trade and the impact of EU policies on UK businesses, particularly Hilton, are assessed.

BUSINESS
ENVIRONMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
EXECUTIVE SUMMARY.............................................................................................................4
TASK 1............................................................................................................................................4
1.1 Purpose of different types of organization.......................................................................4
1.2 Hilton hotel meeting objectives of its different stakeholders...........................................6
1.3 Responsibilities of an organization and strategies employed to meet them.....................8
CONCLUSION................................................................................................................................9
TASK 2............................................................................................................................................9
2.1 Allocation of resources by the economic system...........................................................10
2.2 Impact of fiscal and monetary policies on business organizations.................................11
2.3 Evaluating impact of competition policy and other regulatory mechanisms on activities of
Hilton hotel...........................................................................................................................12
CONCLUSION..............................................................................................................................13
TASK 3..........................................................................................................................................13
3.1 Determination of pricing and output decisions through different market structure.......14
3.2 The way in which market forces shape organizational responses..................................15
3.3 The business and cultural environment shape behaviour of Hilton hotel......................16
CONCLUSION..............................................................................................................................17
TASK 4..........................................................................................................................................17
4.1 The significance of international trade to UK business organizations...........................18
4.2 The impact of global factors on UK business organizations..........................................19
4.3 Impact of policies of European Union on UK business organizations...........................20
CONCLUSION..............................................................................................................................22
REFERENCES..............................................................................................................................23

ILLUSTRATION INDEX
Illustration 1: Different stakeholders of Hilton hotel......................................................................6

INTRODUCTION
In today's modern world, management focuses on identifying and analysing business
environment of the company so that effective polices can be framed. The main objective of
organizations is to increase their productivity and performance in the market which ultimately
result in profit maximisation. Business environment depicts different internal and external
sources of organization that influence business activities directly and indirectly. In order to attain
set goals and objectives of the company various decisions are require to be taken. For which
management make proper evaluation of internal and external sources of business enterprises.
The study of business environment provides appropriate knowledge about macro and micro
factors of the company (Brueckner and et.al., 2013). Along with this, they are able to determine
current position of business entity in the market. Further, with proper planning of policies
organization will be able to attain greater monetary benefits.
In order to examine significance of business environment for an organization business
operations of Hilton hotel are taken into consideration. It is the largest international chain of
hotels and resorts headquartered in Tysons Corner, Virginia. The concerned business
organization operates in 78 countries across six continents. It is essential to monitor macro and
micro factors of organization in order to frame efficient policies for the company.
EXECUTIVE SUMMARY
Present report demonstrates the crucial aspects of different sort of organizations. It has
therefore articulated some distinct measures as per the distinguished nature of firms. It is
fundamentally based upon the scenario of Hilton Hotel to define the major responsibility of their
crucial stakeholders in terms of timely meeting their organizational policies and strategies of
work. Hilton hotel is a private business enterprise that aims at increasing profitability and
acquiring customer loyalty in the market. The organisation is involved in meetings needs and
expectations of its different stakeholder like shareholders, employees, suppliers and customers.
They adopt fair trade practices, customer legislation and employee legislation in order to perform
their responsibilities in favour of stakeholders.

TASK 1
1.1 Purpose of different types of organization
In a market structure there are various business entity operating and managing their
operations. They avail wide range of goods and services in the market so that needs and demands
of customers can be attained properly. Various plans and policies are executed by management
of companies to ensure larger benefits (Dweck, 2013). It can be assumed that organizations are
set up on basis on certain motives or purpose. There are different types organizational
classification made on basis of their purpose which is as follows: Public limited company: These types of enterprises are framed in partnership of
government authorities and public existing in the country. The purpose of Public Sector
Company is to increase its market share and satisfy demands of their concerned
stakeholders. They are interested to invest capital in expanding their market operations.
Although, these enterprises also follows the principle of stabilizing market risks for their
shareholders. The goals and objectives are achieved through effective management
decisions of public sector company (Eales-White, 2014). The public sector company
refers to those organizations that provide various government services in the society. It
avails services like military, police, infrastructure, public education and health care.
British Airways and TESCO are appropriate examples of public limited company. Private limited company: Another type of organization is private sector which is
operated and managed by individuals or group of people. The main objective or purpose
of companies is to maximize their profit margins. In order to achieve their mission of
profitability they often make use of extensive marketing and promotional methods. Hilton
hotel is a private sector company operating in hospitality industry for quiet long period.
Nowadays, they are also liable to follow corporate social responsibility towards the
society. Cooperatives: It is yet another type of organization which is formulated through
cooperative efforts of individuals. They enjoy most of the rights and responsibilities that
an individual possess, here corporation can enter into contracts, loan and borrow money.
They also own assets and pay taxes to government. The main objective of corporations is
to benefit it s members in monetary term (Gani, 2011). They provide services to its

members so that collective interest can be initiated. Edinburgh student housing co-
operative society is an appropriate example for cooperative societies.
 Non-profit organizations: As the name suggest these organizations are established to
provide services to the society. Their mission and vision is to make people aware about
various issues taking place in market whether it is related to politics, economy, culture or
environment. Non-profit organizations work with an objective to satisfy ethical needs of
consumers and society. One of the popular non profit organizations in UK is Cancer care.
Hilton hotel is a private business enterprise, its vision is to acquire higher profitability in
the market and it aims to build brand image among customers. Further, mission of company is to
fill the earth with warmth hospitality. It aim is to be the prominent global hospitality organization
and also to become first choice for guest and business clients. It value is comprises of hospitality,
integrity, leadership, teamwork, ownership and now. Beside this, Hilton enjoys a market share of
9.6 % in UK which certainly helps in boosting overall profitability of company. Additionally,
revenue of cited organization in 2015 is 11.27 billion US dollar with that of 10.5 billion US
dollar in 2014. Further, it enjoys 11.71% of return on invested capital which aids the company to
make the operations effective in order to offer quality services. It also enjoys high customer
satisfaction by offering quality hospitality to customer of varied nature.
1.2 Hilton hotel meeting objectives of its different stakeholders
One of the biggest international hotel chain providing flagship of full service hotels and
resorts is Hilton hotel. It is operating in international boundaries either by owing, managing and
franchise's it through independent operators worldwide (Joardar, Kostova and Wu, 2014). The
company is responsible towards its stakeholders who directly or indirectly get affect or make
effect on business operations of Hilton hotel. As the management take decisions on various fields
of operations, it ultimately makes great influence over its stakeholders. Hilton hotel is always
liable to meet objectives of different stakeholders which is as follows:

Illustration 1: Different stakeholders of Hilton hotel
(Source: Leon and Garcia, 2011)
 Shareholders: According to stakeholder model, shareholders are first element for Hilton
hotel. They are responsible to invest capital in concerned business entity so that business
transactions can be executed smoothly. In return, the company is liable to avail higher
monetary benefits i.e., increasing profit margin or revenue of Hilton hotel (Nandi, 2010).
However, conflict of expectation usually arises between ownership and control.
Shareholders being the owner expects for high dividend whereas management, who is
responsible for controlling the business seeks for investing the earned profit in business
again. Management and employees: These are essential internal stakeholders for concerned
business entity. Managers are responsible to frame plans and policies for the organization
while employees are responsible to execute them effectively. Hilton hotel needs to
provide higher salary benefit along with healthy and safe working environment so that
desired output can be attained from them.
 Banks and creditors: The financial institutions like banks plays crucial role in availing
funds to Hilton hotel (Timmers, 2012). While creditors also plays similar role as
stakeholder of the company. The concerned business entity is liable to pay loan
instalments and interest on time to its creditors and bank. Hilton hotel acquire banking
and financial facilities mainly from HSBC and Standard Chartered. Suppliers: Hilton hotel provides hospitality services which require good flow of raw
materials like housekeeping tools and equipments. Here, the suppliers act as crucial
stakeholder for the company and Hilton hotel provides credit worthiness to them in
return.

 Customers: Guests and visitors enact as crucial stakeholders for cited business entity. As
customers are responsible to evaluate performance of the company in market Hilton hotel
need to meet their objectives (Yu and Ramanathan, 2012). It should provide comfortable
and luxurious hospitality services to its guests. Local community: Society or local community also play crucial role in business
operations of Hilton hotel. The organization should fulfil its corporate social
responsibility so that local community are benefited. It should provide greater
employment opportunities to people for their growth and development.
 Trade unions: These are considered as internal stakeholders of Hilton hotel. It simply
refers to group or organization of employees that come together to achieve common goals
such as protecting workers in the concerned business entity.
Based on stakeholder analysis, following is the power interest matrix with the perspective of
Hilton Hotel.
Figure 1: Power Influence Matrix
(Source: Self Attempted)
According to above mentioned figure, Hilton Hotel priortise various stakeholders and
provide them authority to particpate in its activities. Now, below are mentioned four parameters
for role of stakeholders:

 Keep satisfied: It includes stakeholders that have high power and less intrest in hotel
gorups activities. Government and customers are inclusded in it and organisation needs to
keep them satisfied. Manage closely: This parameter includes employees and shareholder that posses high
power and high intrest in orgasnisational activities. They should be managed closely for
their active involvement. Monitor: Stakeholders that have low power and less intrest in cited hotel group activities
are included in this parameter. Suppliers should be monitored proerly to receive constant
flow of inventroies.
 Keep informed: Here those stakeholders are included that have low power and high
intrest in the organisational activities. Society is included in this type of parameter.
1.3 Responsibilities of an organization and strategies employed to meet them
Every business enterprise works with certain code of conduct in order to implement its
roles and responsibilities effectively. Management and staff members of Hilton hotel prepares
various strategies to perform these duties in favour of company and different stakeholders
(Jahansoozi, 2016). It helps to derive better outcome as each individual is completely aware
about his job role in the company. It is a private business firm and focuses on profit
maximisation and generating higher revenue. In order to attain these objectives Hilton hotel
focuses on accomplishing various roles and responsibilities favourable for its efficient working.
Some of these duties are specified below: Consumer legislation: According to this principle, the company is responsible to make
avail comfortable and luxurious facilities to its guests (Carroll and Buchholtz, 2014). It
should ensure that Consumer Rights Act is implemented effectively in concerned
business organization. They will be responsible to protect customers from violation of
their rights. Adoption of consumer protection laws will avail fair trade practices,
competition and accurate information about marketplace. Employment legislation: Hilton hotel hire skilled and qualified human resources in order
to avail effective hospitality services in international market. Employment relations
provide wide range of contractual rights for employees that are entitled for national
minimum wage, healthy working condition and protection against unfair dismissal at

work. During recruitment and selection process, HR manager of Hilton hotel adopts
Equal Employment Act that provides equal opportunities to candidates and helps in
presenting their abilities. It avoids the situation of discrimination that is taking place
among applicants on various grounds. Fair trade practises: Company is also responsible to perform trade practices in effective
and efficient manner (Joardar, Kostova and Wu, 2014). Government authorities have
framed various rules and regulations that help to monitor merger and acquisition
activities authentically. The major objective behind it is to avoid situation of establishing
monopoly market by Hilton hotel.
 Environmental and ethical issues: In order to follow corporate social responsibility
Hilton hotel take various effective measures. It provides great concern towards
environmental and ethical issues for the company. They make sure that hospitality
services do not add up to pollution and global warming in the environment (Floyd and
McManus, 2015). All these responsibilities help to acquire better results for concerned
business entity.
CONCLUSION
The above portion is to ascertain the major business objectives of Hilton Hotel which has
together regarded as a prior existence of its stakeholders into it. Hilton Hotel is hereby regarded
as a private hospitality firm that is mainly operating into the enthusiastic arena of hotel industry
with its requisite dynamic intervention.
TASK 2
EXECUTIVE SUMMARY
There are different types of economic systems existing in the market such as command
economy, free market economy and mixed market economy. The government authorities and
market forces decide optimum allocation of resources to produce the goods and services. Hilton
Hotel is greatly influenced by any change in fiscal and monetary policies of UK. In addition to
this, for obtaining a competitive edge in the market with ethical framework, concerned hotel
entity follows competitive policies and other regulatory mechanism.

2.1 Allocation of resources by the economic system
There are three types of market economic systems which are given below:
 Command economy: The first type of economic system is command economy in which
government controls the all economic activity for example government decide that who
owns the businesses, who buys and sells to whom and who takes the decisions regarding
the business (Manral, 2010). In command economy government only responsible for all
results in this economy, government decide the price of product transportation cost,
labour cost and other required decisions of the company and one other thing which is
included in it is the company follow all the rules and regulations which is made for the
company. The major advantage of command economy is that here, resources are
mobilized quickly and effectively on a large scale. It effectively protects the valuable
resources of country. However, such economic system gives rise to situation of black
marketing where goods and services are offered with illegal practices with high price.
North Korea adopts the characteristics of command economy.
 Free market economy : Free market economy refers to consumer based economy in
which market forces makes the decision about decide whom to buy, for whom they work
and producers produce that products which the consumers have willing to pay and one
another thing in this type of economy is, if people want to invest their capital and start a
business or company then they have right to do so if this company produce marker then
they have right to set prices and there are is no government interference in economic
activities (Oberholster, 2010). There is high competition in the market which leads to
increased efficiency of firms. However, it also increases the rate of corruption in the
market economy. Canada is an example of free market economy.
 Mixed market economy: It is the integral part of economic process in which both above
economy are combined where neither the government nor the business maintains the
economy alone, there are combination of both economy's policies and systems. In this
context, UK is the mixed economy wherein Hilton hotel function. Here, government of
UK controls the policies of public transportation and other policies which have direct
impact upon the citizens of country (Beger, 2015). Whereas, hotel has the right to make
the decision on the basis of demand and supply forces. For example, the owner of Hilton

hotel have the rights to set prices of all services which is provided by the hotel like room
facility, play ground for kids, laundry and many more. Thus, the given system works for
the benefits of both public and private sector.
2.2 Impact of fiscal and monetary policies on business organizations
Fiscal policy refers to government's decision regarding taxation polices and purchasing
power of customers. It is a means through which government adjust its spending level and tax
rates to smoothly run an economy (Hin Li, 2012). While, monetary policy is the process by
which monetary authority for country controls supply of money by its control over interest rates
to maintain price stability and achieve high economic growth. The fiscal and monetary policies
have great influence over Hilton economic strategies, which can be understood from below
factors: Change in interest rate: The rate at which financial institutions provide loans to business
organization like Hilton hotel have great influence over monetary policy. When
government increases interest rate on loans the concerned business enterprise is not able
to invest in new ventures (Kryzanowski, 2016.). In addition, the consumption power of
guests and visitors reduces due to increased interest rate. The potential customers are
interested to save funds rather than expanding it in other activities. Due to this,
profitability of Hilton hotel reduces. Change in exchange rate: It refers to rate at which one currency is exchanged with
another. It is considered as an essential element of monetary policy so that currencies can
be exchanged properly. When pound is appreciated in international market Hilton hotel is
able to conduct effectively business operations in other countries. The management is
able to acquire higher monetary benefits because it gets opportunity to expand market
operations in other countries as well. Change in tax rate: The taxation policies formulated by UK government have adverse
impact on functioning of Hilton hotel. It is considered as percentage at which concerned
business enterprise are taxed on their concerned income (Oberholster, 2010). When tax
rate reduced by 1% from the year starting 1st April 2016 to 19%, Hilton is able to save
considerable amount which certainly boost the profitability of company. Change in government spending: The government consumption, investment and transfer
payments are refereed as government spending. According to this parameter, when these