Business Health Check Report: Hilton Hotel Performance Analysis

This report provides a comprehensive business health check of the Hilton Hotel, a leading hospitality organization. It begins with an introduction outlining the competitive landscape and the importance of strategic analysis, followed by a SMART objective analysis, identifying specific, measurable, achievable, realistic, and timely goals. The report then examines external factors impacting the business, including political, social, economic, environmental, and legal considerations. A SWOT analysis highlights the hotel's strengths, weaknesses, opportunities, and threats, while a Porter Five Forces analysis assesses the competitive forces within the industry. The report also discusses potential improvements using the Ansoff Growth Matrix, covering market penetration, product development, market development, and diversification strategies. The report concludes by evaluating the effectiveness of the business across various areas such as product and service quality, marketing, finance, staffing, and brand image, and it also provides a business plan outlining the hotel's aims and organizational financial management system.

BUSINESS HEALTH
CHECK

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
1.1 SMART objective.............................................................................................................1
1.2 Factors that impact the business.......................................................................................1
1.3 Determination of potential improvement to the business organisation and operation.....4
2.1 The effectiveness of the business.....................................................................................5
2.2 Business planning.............................................................................................................6
LO 3.................................................................................................................................................7
3.1 The current skills of management and staff.....................................................................7
3.2 Justification of plans for the development of skills for management and staff................8
REFERENCES..............................................................................................................................10

INTRODUCTION
In the present time there is huge competition in the business environment. It is very
important for company to analyse the business environment and its associated factors so as it can
develop its own business strategy and practice. There are various models such as PESTLE,
SWOT, porter five force through which company can identify and assess the condition of
business. The current report provides the detail knowledge and understanding about the Hilton
hotel company and its capability and strength.
LO 1
1.1 SMART objective
Hilton hotel is one of the famous hospitality organisation which serves various
accommodation services and facilities to its customers. It operates its business in the 26 nations.
The major objective of Hilton hotel is to deliver high quality of product and services to its
customer and develop impressive brand image in the market. It has vision is to deliver the
excellent experience to customer (Barney and Hesterly, 2015). Furthermore, it wanted to become
number one hospitality organisation in the world and earn maximum profitability and market
share in the competitive business environment. Following are SMART objective of Hilton hotel-
 Specific- The major objective of Hilton hotel is to profit maximisation and earn
maximum market share by deliver high quality of product and services in the market. It
desires to become number one hospitality organisation in the workd.
 Measurable- Company have objective is to increase 25% revenue in every year and
develop strong brand image in the market (Doeksen and Symes, 2015).
 Achievable- It has to develop strong brand image in the market and earn the competitive
advantages.
 Realistic- It vision is to deliver high quality of services and products to its customers.
 Timely- It has to achieve it's all target and aims in the one year.
1.2 Factors that impact the business
Business external environment comprise with some outer segments that is political,
lawful, social, cultural, technological, economical, environmental so forth. With a specific end
goal to get by in focused condition, organization need to think about every one of these
components. By direct successful examination of all these skilled organization can comprehend
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the criteria of business survival in the nation (Yorio, Willmer and Moore, 2015). With regards to
Hilton hotel, there are different outside ecological variables which may generally impact the
business exercises and elements of Hilton hotel. Different elements of External condition are as
per the following-
Political factor-In this factor incorporates administrative guidelines, control, implicit rules, tax
collection arrangements and so on. Hilton hotel need to consider this factor at the season of
business task in the nation. Government obstruction in charge strategies, business law, exchange
control, tax law and confinement may to a great extent influence the exercises of Hilton hotel
(Gonzalez-Padron, Hult and Ferrell, 2016). The major political segment consider EU Roaming
control that reason to conquer change for cell phone use abroad by 70% and expanding level of
customer rights inside Europe.
Social and social factor-This is the significant outside factor which may to a great extent
influence the Hilton hotel. In this incorporates customer decision, inclinations, taste, culture,
district and so on. Organization need to consider customer inclination at the season of creation. A
greater amount of the customer in the present time are more well-being conscious so Hilton hotel
need to center this worry when it delivers Hilton hotel portable.
Economical factor-This factor incorporates monetary state of the nation. Staggering expense of
building and keeping up system can influence the task of Hilton hotel. The costs of media
transmission administrations will set by the retreat and expansion rate of the nation.
Environmental factor-This factor incorporates the common assets, for example, climate, water,
atmosphere and so forth. Hilton hotel have sorted out a handset reusing action that move
purchasers to discard hand set and extras in a protected and mindful path by promoting their
arrival programs (Grünig and Kühn, 2015). Notwithstanding this Hilton hotel works an
extraordinary impression of 27 Hilton hotel establishment work to convey social venture
programs.
Legal factor- In this factor incorporates business law, customer rights, creation law and work
rights. Hilton hotel worried about the offer of merchandise act 1974 under which all products and
enterprises created by Hilton hotel must serve the coveted advantages to customers.
SWOT ANALYSIS of Hilton hotel
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Strength- Hilton hotel have extensive foundation and its capacity to set up crosswise over
numerous nations. Hilton hotel has brought its image into the current brands of its controlled
system and hold the web benefit of existing brand in every nation (Chen, Delmas and Lieberman,
2015).
Weakness- Exploring innovation requires more innovative work and infrastructural cost. In extra
to this partnership isn't that much adaptable which comes to changing to elective advances if the
fundamental framework won't bolster it.
Opportunity-Opportunity is to expand deals by magnificent incentive in the market. Opportunity
is to anticipated that would wind up one of the significant portable or media transmission item
which will quicker and brilliant information transmission, for example, videophones, versatile
web at broadband speed (Houdet, Trommetter and Weber, 2012).
Threat- Continues change in customers decision and inclinations identified with cell phone is
real risk for media transmission industry. Changing innovation and advancement is another real
test for Hilton hotel.
Porter Five force Analysis
 The bargaining power of suppliers- In the hospitality industry, companies buy their
raw material from the numerous suppliers. As in the hospitality field, powerful supplier
use their negotiating power to extract higher prices (Jaber and et.al., 2015). The
bargaining power of supplier is strong because due to the cost leader, Hilton hotel
operates with margin greater than its competitors which in turn allows them to absorb
price increase from its suppliers easier than its competitors.
 The bargaining power of buyers- As in the hospitality industry there are lots of
organisation which serves the hospitality services and products to its customers. Thus,
Hilton hotel have several competitors in the market so it can be said that bargaining
power of buyer is strong because they have lots of options to purchase the services and
commodity from the other hospitality brand (Kernbach, Eppler and Bresciani,2015). If
company modify its cost of product and services then customer can easily switch their
brand.
 Threat from rivalry- As Hilton hotel have strong position in the market but there are
several other organisation in the hospitality industry which serves the same product and
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services as Hilton hotel serves. Thus, it can be said that threat from competitor is high of
Hilton hotel company.
 The threat of new entry- As per the research it has been found that Hilton hotel have
third position in the hospitality industry. It serves the high quality of hospitality services
in the market. If any new organisation in the same sector enters in the market then they
have to invest large amount of capital. Thus, it can be said that threats of new entrants is
weak of the Hilton hotel.
 The threat of substitutes- The threat of substitute for Hilton hotel company is low as
cited venture focuses on the cost leadership strategy. As it delivers the high quality of
product and services in the high prices that makes difficult for a comparable substitute to
be produced at a lower rate by their excellent use of economies of scale.
1.3 Determination of potential improvement to the business organisation and operation
As per the above discussion it has been analysed and assessed that Hilton hotel is one of
the most leading hospitality organisation which have third position in the world. It serves the
high quality of product and services in the market due to which it has strong brand image. Hilton
hotel have aim is to earn maximum profitability and become number one hospitality organisation
in the world. It desires to earn maximum revenue and market share. For address this objective, it
requires making necessary improvements within the business enterprises and operation. With
help of Ansoff Growth matrix, company can improve its position and develop the possible
improvement options- Market penetration- In this concept, organisation sell its existing product and services in
the existing market. Hilton hotel uses this marketing strategy in order to enhance its
current profitability and market share (Leitner, Meissner and Martyna-David, 2015). In
this strategy, company can maintain stability in the market by sell its existing product and
services in the existing market. Product development- In this concept, corporation produces new product and services in
the existing market to gain effective benefits. With help of this strategy, corporation can
develop effective brand image in the market and earn maximum profitability in the
competitive market. It helps to company in serves new and innovative product and
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services to its customers through which it can develop impressive brand image in the
existing market. Market development- In this aspect company launches the existing product and services
in the new market. This strategy helps to company in developing effective competitive
advantage and brand image.
 Diversification- This is one of the impressive strategy for Hilton hotel by which it can
develop effective competitive advantage and also develop effective brand image in the
market (Liu,2015). In this aspect, corporation launches the new product and services in
the new market. It also helps to company in increasing profitability and market share
because with help of this strategy corporation can gain maximum revenue in the
competitive business environment.
LO 2
2.1 The effectiveness of the business
As per the above discussion it has been analysed that Hilton hotel serves the high quality
of product and services regarding hospitality. In addition to this, company have main aim is to
earn maximum profitability and market share. Following are some effectiveness of Hilton hotel
business- Product and service- As Hilton hotel delivers high quality of product and services to its
customers. It provides online service and support to its customers. Hilton hotel have
effective product and services through which it has developed strong brand image in the
market. Marketing- Hilton hotel conducts market research for identify actual needs and wants of
customers and delivers product and services accordingly. Hilton hotel uses the social
media and other online channel for initiate marketing and advertisement activities for its
business and product and services (Mathur, Mathur and Kenyon, 2012). It has created its
own mobile application and company web page on the internet through which it can
promote and advertise its product and services to its customer and attract large numbers
of customers. Finance- Hilton hotel have strong financial position as per the other hospitality
organisation in the market. In the financial department of the organisation, financial
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manager uses several effective software and application that assists to carry out financial
activities and functions. Staffing- Under this section includes recruitment and selection, training and
development, reward system within the corporation. Hilton hotel have skilled and
qualified labour and workers who effectively contributes within the company for achieve
its determined objective and success.
 Business image- Hilton hotel have effective brand image in the market as it have third
position in the competitive business environment.
2.2 Business planning
Business plan
Aim
Hilton hotel have aim is to earn the maximum profitability and market share within the
competitive business environment in the hospitality industry. As there is a large numbers of
competitors but it has third position in the business environment. Company aim is to become
numbers onehospitality organisation in the world.
Organisational financial management system- A financial management system is the
methodology and software that organisation uses to oversee and govern its income, expense and
assets with the objective of maximise profitability and sustainability. Hilton hotel is using
excellent system of financial management that helps to company in managing its financial
performance in the market.
Roles and responsibility of staff and management-Staff and administration assumes
exceptionally urgent part on the grounds that without them, designer and developer can not take
any sort of choice identified with exercises and future activity. In such case, administration can
utilize his compelling administrative expertise (Mitchell and et.al., 2016). Administration can
build up an appropriate arranging about the new choice identified with business exercises and
capacity. Administration can build up a systems and arranging about the future projects and
speak with staff part. They can build up a timetable for day by day exercises and pass on with
junior director at customary premise. While they take the wide level choice identified with
venture, they can direct a gathering either by meeting or by up close and personal. With the
assistance of powerful correspondence and motivation expertise, director can without much of a
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stretch depict the anticipating business exercises to create and manufacturer of association. In the
case of Hilton hotel company, its manager is going to develop a planning for earn maximum
profitability and market share. For achieve this objective, staff and management have great roles
and responsibility regarding business.
Performance monitoring-
It is vital for Hilton hotel to screen and control the planned advertising design. Following
procedures will use by refered to wander
Spending examination-This strategy helps in breaking down the budgetary execution of
business undertaking.
Opportune report-This report help to Hilton hotel in investigating the prattle amongst real and
expected after effect of exercises
LO 3
3.1 The current skills of management and staff
Management is a procedure of overseeing and planning the exercises and things in such
way so as decided results can accomplish inside a particular time and in addition accessible
assets. This procedure comprise with arranging, arranging, controlling and guiding assets
keeping in mind the end goal to achieve objective. With regards to business association, keeping
in mind the end goal to oversee business exercises and lead legitimate administration, trough
assume an exceptionally significant part. Employees plays a very crucial role within the
organisation by which entire functions and activities can carried out. In the absence of employees
company can not operate its business activities and also can not achieve business objective
(Bahadir, Bharadwaj and Srivastava, 2015). In addition to this entire management also plays a
very crucial role within the business enterprise by which corporation carries its various functions
and activities. Following are some management skills-
Technical skill- This is very essential skill that helps to business unit in solve technical issue and
problems. With help of this skill, manager and employees can operate the business activities by
use of techniques and equipments.
Operational skill- This skill and ability among the staff member helps to corporation in carry out
operational works. Operational skill and ability assist to manager and employees in establish the
target and conduct each activities of business in systematic manner.
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Managerial skill- This skill required in the every employees as well as manager within the
organisation. With help of this skill, employees and manager can effectively carries out the
business activities and achieve determined objective (Anton, 2015). With help of this skill and
ability, manager can take the decision of business.
As per the research it has been found that in the Hilton hotel, there is a weak current skill of
management and staff members. Due to which Hilton hotel is facing issue regarding poor
operational performance.
3.2 Justification of plans for the development of skills for management and staff
In order to improve the management skill, Hilton hotel has to focus on the plan of
development skill for management staff and management. Following are systematic planning for
the development of skills for management and staff- Outline the goal- In this stage, Hilton hotel focuses on the requirement for improvement
in the management skill and ability. It identifies the actual objective and goal of
improvement in the management skill of management and staff member. Assess the current situation- In this stage, company identify the current situation of the
organisation so as it can develop a systematic planning for management skill (Amran,
Ooi and Devi, 2015). Acknowledge current strength- In this stage company identify the current strategnth. As
Hilton hotel have skilled workforce and employees which contributes effectively top
meet the goal of business. Identify weakness- It has major weakness is that it required more strong and excellent
operational, technical and management skill because it has fewer numbers of staff and
members. Create action plan- In this stage it develops action planning under which it will focus on
the training and development option (Adar and et.al.,2016). Company will organise
training and development program and also organise personality development class so as
its staff member and management can improve their management skill
 Monitor and checking-In this phase company monitor the performance of staff member.
CONCLUSION
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From this entire report it has been concluded that major objective of Hilton hotel is to
profit maximisation and earn maximum market share by deliver high quality of product and
services in the market. Hilton hotel have extensive foundation and its capacity to set up
crosswise over numerous nations. Hilton hotel has brought its image into the current brands of its
controlled system and hold the web benefit of existing brand in every nation. Government
obstruction in charge strategies, business law, exchange control, tax law and confinement may to
a great extent influence the exercises of Hilton hotel.
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