Report: Business Environment Analysis for Hilton Hotel Operations

This report provides a comprehensive analysis of the business environment of the Hilton Hotel. It begins with an introduction defining the key factors influencing business operations, both internal and external. The report then delves into the application of the value chain model within the hospitality industry, specifically focusing on Hilton. It examines the various stages of the value chain, from raw materials and intermediate goods to manufacturing, marketing, and services, highlighting how these elements contribute to the hotel's competitive advantage. The internal environment of the organization is also assessed, including primary activities like inbound logistics, operations, outbound logistics, marketing, and service, as well as supporting activities such as procurement, infrastructure, technological development, and human resource management. The report further reflects on the usefulness of the value chain model, discussing its merits, such as competitive advantage and customer value, while also acknowledging its limitations, such as potential loss of vision and challenges in creating efficiency. The analysis concludes that the value chain model is a valuable tool for improving business operations in the hospitality sector, enhancing product and service quality, and increasing customer satisfaction.

BUSINESS ENVIRONMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
1.Value chain model of Hospitality industry...............................................................................4
2. Business familiar and operates in U.K.....................................................................................5
3. Internal environment of organization.......................................................................................5
4.Reflection on usefulness of value chain....................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business environment refers to Micro and Macro factors which affects the working
operations of organization. These factors influences the various practices and policies of the
organisation. Employees, customer, supplier, government, social and markets trends are termed
as internal and external factors of the business. This report determine business environment of
the Hilton hotel which is the largest American company of hospitality business. The headquarter
of the Hilton is at the Virginia U.S. This file involves value chain model which help to developed
the products & services to increase sales of the business. This file also evaluates the value chain
model on the basis of industry. There is the reflection which determine the effectiveness of this
model in the hospitality company.
1.Value chain model of Hospitality industry.
Hospitality industry of U.K. is one of the leading industry all over the world and help in
growth of their overall nation to increase effectiveness of their services. Help in development of
organization to improve capabilities of their products to engage as many as customers with their
services (Storey, 2016). Value chain model help industry to analyse potential of their products &
services.
Raw materials:
Hospitality industry need to analyse availability of raw materials in their company to
develop plan according to demand of their business. Raw materials help in overall improvement
of their organization. Company require bad sheets, require perishable products, need to have
drink and other refreshments that have ability to satisfy customers wants. Industries need to have
laundry services, housekeeping department and kitchen equipment like stainless steel,
refrigerator for overall development of their industry (Doh, McGuire and Ozaki, 2015). Room
services equipment and skilled employees that have effectiveness of their organization. Security
need to be effective so that customers feel safe in an hotel environment. Growing industry
infrastructure help to get attention of customers with organizations products and services.
Intermediate goods:
Industry needs intermediate goods that their customers are able to consume effectively
for overall development of organization to attract large number of customers with their business.
Need flour, wheat that help industry to develop and prepare a final product.
Research and development:

Industry develops research to analyse their customers to know capabilities of their
products & services. Research help to innovate new products and services that help to bring large
number of customers. It supports in overall improvement of industry.
Manufacturing:
Industry need to manufacture products like furniture, appliances, utensils and equipment
that have ability to prepare products and services for company to attract customers (Holden,
2016). Hospitality sector need to develop services and products like furniture and appliances that
have ability to satisfy their customers.
Marketing and sales:
Industry need to develop effective marketing of their brand and services to attract high
level of customers with their organization. Marketing help them to develop their presence in
minds of their customers and improve potential of industry. Help to develop relation with their
customers. Need to provide training to their staff that help in development of organization at an
extreme level. Products & services. Require dairy shop, or milk for development of sweets in
their organization. Industry need to analyse availability of those goods that help in development
of final products which have ability to satisfy their customers wants. Require sugar for overall
development of new products that help company to satisfy their customers wants and develop
capability of their product (Bocken, Rana and Short, 2015). Need flour, wheat that help industry
to develop and prepare a final product.
2. Business familiar and operates in U.K.
Hilton is an already established brand and provide effective products & services that help
them to engage large number of customers with their services. Hotel is founded by Conrad
Hilton they have 586 hotels in around 85 countries. Their quality products help them to get
number of customers with their products. Hilton is worldwide established brand and have
effective products and services (Makarova and Polyanin, 2015). Value chain analysis help Hilton
to know business activities and to create a competitive advantage. Hilton operates business all
over the world & need to develop effective utilization of all available resources in
organizations . Require to develop competitive advantage with adequate use of value chain
model and need to make resources effective that achieve their goals on time. Value chain help to
segment their activities for smooth working of their organization.

3. Internal environment of organization.
Internal environment help in expansion of business and to improve effectiveness of their
brand. Internal environment of Hotel help in developing smooth working of their people in an
organization. Internal environment maintains effectiveness of organization and work towards
increasing profit for hotel Hilton. Need to improve and establish business for organization at a
high level (Boone, 2019). Need to maintain and improve effectiveness of their organization
goals. Internal environment helps in improving efficiency of products & services. Internal
environment help in development of business in minds of customers.
Primary activities
Primary activities are one of the most important activities that help Hilton to achieve
competitive advantage and work adequately towards overall success of their company.
Inbound logistics: Hilton need to maintain inventory and raw materials of their
organization to develop capabilities of their company and work towards achievement of their
organization goals. It helps to store products and sold them to customers after manufacturing
those products and services. Due to effective relation with suppliers of raw materials help Hilton
to establish their organizations products and services (Gaur and Jasmin, 2017). It helps in smooth
working of their business. Hotels supply chain management help have a potential to engage
suppliers and to reach their suppliers easily. Need to develop their warehousing and delivery
department to improve capabilities of their products and innovate new features in their
organization. .
Operations: Hilton operates all over the world with help their quality services and
products. Different segments help them to operate smoothly in different countries like ownership
segment in which Hilton itself own or lease hotel. Franchise segment in which hotel properties
are owned by someone else and Hilton manages their business in those countries.
Outbound logistics: Companies trained employees and staff have skills to deliver
finished products to their customers to promoter overall capabilities of their products. Need to
develop transportation services that help in development and effectiveness of organization
products & services. Hotel provide transportation facilities to their customers.
Marketing and sales: Marketing by professionals of hotel help them to attract large
customers with their organizations products and facilities. Help to engage large number of
customers that have ability to improve effectiveness of organizations products & services. It help

company to earn revenues and develop effectiveness of organization services. Marketing help
them to improve profitability of their business.
Service: Quality service help Hilton to develop competitive advantage for organizations
products (Antikainen and Valkokari, 2016). Customer timely services help them to satisfy their
wants and desires. Customer service help to engage group of people with their products &
services.
Supporting activities:
Hilton uses effectiveness of their secondary activities to develop their organizations
primary activities. Supporting activities help in achievement of their organizations goals.
Procurement: Hotel need skilled employees that fits to their organization strategy and
help to achieve their goals. Managing employees effectively help in development of their
business and work towards accomplishment of their organization goals (Zakaria, Hashim and
Ahmad, 2016). Hiring effective employees help hotel to develop their marketing and operations
department.
Infrastructure: Improved infrastructure help organization to fulfil their goals &
objectives and require improving competency of their products. Infrastructure help hotel to
maintain working in organization. For effective infrastructure hotel need to analyse their legal
and administrative services.
Technological development: Technological development help Hilton to prepare new
products and services with use of techniques that have ability to establish business at a high
level. Need to use equipments and resources that help to reach their aim and objectives and
improve effectiveness of their business. Procurement means utilization of all available resources
help in accomplishment of organization goal. Hilton need to find effective resources according to
quality that help them to achieve their objective (Boyd, and et.al., 2017). Need to choose
effective suppliers for resources that help them in developing capabilities of hotel Hilton.
Human resource management: Hotel needs skilled employees that fits to their
organization strategy and help to achieve their goals. Managing employees effectively help in
expansion of their business and work towards attaining their organization goals & objectives.
Hiring effective employees help hotel to develop their marketing and operations department.
Infrastructure: Improved infrastructure help organization to achieve their vision and
mission and require improving potential of their products. Infrastructure help hotel to maintain

working in organization. For effective infrastructure hotel need to analyse their legal and
administrative services.
4.Reflection on usefulness of value chain.
Value chain help Hotel Hilton to develop capabilities of their services and to get attention
of customers towards their products that help in accomplishment of organization objectives.
Model help to earn competitive advantage over competitors and to establish business in market.
Value chain help to provide value to products and services of company. Identify different
activities and make an efficient use of those activities for development of their organization.
Value chain help in development of business environment to improve competency of their
services. Chain help Hilton to innovate technological up gradation in their services to satisfy
customers wants and desires. Help to get effective & skilled employees that have ability to
satisfy their customers wants and desires and help them to engage effectively towards
organization.
Merits:
Competitive advantage: Help hotel Hilton to earn competitive advantage over hotels by
reducing prices and developing their products at a large scale. Competitive advantage help to
make a unique image in market for their customers.
Customer value: It focuses on delivering valuable products to their customers that help them to
satisfy their customers effectively at an extreme level (Oriesek and Schwarz, 2016). Help
company to provide quality services to gain overall advantage for business.
SWOT analysis: Value chain help Hilton to analyse their strength and develop guidelines for
their organizations weakness that help them to be effective in near future and maintain proper
resources towards their organizations goals. It help them to get deep understanding of their
organization abilities.
Help to get skills employees: Due to effective human resource management help Hilton to
innovate and improve potential of their products and facilities. Help to hire skilled employees
who have abilities to develop their business.
Limitations
Lost of vision:Due to activities of organization are broken down into segments it effects vision
of hotel to attain their goals & objectives. Overall vision of company need to be effective that

help them to accomplish their aim and objectives (Teece, 2018). Vision make organization to
fulfil their objectives and improve capabilities of their services.
Faces problem while creating efficiency: Hilton faces problem while implementing value chain
model in their business to create efficiency for their products & services that help them to attract
large number of buyers with their products. Chain is not able to link all activities of their
organization towards their development.
CONCLUSION
From the above study it can be concluded that value chain models helps to run the
operations of business in the most effective manner by improving the quality of the products &
services. Development of new products and services in the hospitality industry gain lots of
advantages of the competition and increases the larger share of customer base. By organising the
market research the business could identify the need and wants of their customer to increase the
sales and profits. The performance of the employees are improves with the help of the value
chain model.

REFERENCES
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