Hilton Hotel: Macro Environment, Internal Analysis and Strategy

This report provides a comprehensive strategic analysis of the Hilton Hotel, a major player in the hospitality industry. It begins with an introduction outlining the scope and structure of the report, followed by an analysis of the macro environment, including political, economic, social, technological, environmental, and legal factors (PESTLE analysis) influencing Hilton's operations. The report then delves into the internal environment, assessing Hilton's strengths and weaknesses using frameworks like McKinsey's 7-S model. Porter's Five Forces model is applied to evaluate the competitive landscape and identify strategies for improving competitive edge and market position. The report further explores strategic directions, including mission, vision, values, and the application of Ansoff's Product/Market Growth Matrix to recommend growth platforms and strategies. Finally, a strategic management plan with tangible priorities and objectives is presented, concluding with a summary of the key findings and recommendations. The report emphasizes the importance of strategic planning in the hospitality industry and provides insights into Hilton's approach to achieving its business goals.

Hospitality business
strategy

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
P1 Analyse the impact and influence of the macro environment on a given hospitality
organisation. ..........................................................................................................................3
M1 Critically analyse the hospitality macro environment to determine and inform strategic
management decisions ...........................................................................................................5
P2 Analyse the internal environment and capabilities of a given hospitality organisation. ..5
M2 Critically evaluate the internal environment to assess strengths and weaknesses of an
organisation’s internal capabilities, structure and skill set.....................................................6
P3 Applying Porter’s Five Forces model, evaluate the competitive forces of a given market
sector for a hospitality organisation.......................................................................................6
Devise appropriate strategies to improve competitive edge and market position based on the
outcomes. ...............................................................................................................................7
................................................................................................................................................7
PART 2 ...........................................................................................................................................7
Evaluate the different types of strategic directions available to the organisation. ...............7
Justify and recommend the most appropriate growth platform and strategies through the
application of Ansoff’s Product/Market Growth Matrix. ......................................................8
Devise strategic planning for a given hospitality organisation. This will involve an
explanation of the strategic planning process in your chosen organisation...........................9
Produce a strategic management plan that has tangible and tactical strategic priorities and
objectives .............................................................................................................................11
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
The hospitality is a wide category or department within the services industry that consist
lodging, food and drink services, event planning theme parks and travel and tourism. It
considers hotels and tourism agencies, restaurants and bars (Gürlek, and Koseoglu, , 2021.).
Hospitality has majorly four strategies which hospitality businesses uses which are raising
customer value, building franchise or brand, being a good corporate citizen and achieving
operational excellence. This report is based on hotel Hilton the industry is UK based which was
found in 1919 by Conrad Nicholson Hilton. The company serves services in numerous
countries. The hotel has 584 property across many country with several kinds of rooms. The
report will cover the pestle analysis along with the analysis of internal factors by considering
the selected company. After that apply porters five forces for the evaluation for the competitive
forces. In part B it will explain various kinds of strategic directions to an organisation further it
will suggest or advice most appropriate growth platform for a selected industry by applying
theories and strategies.
MAIN BODY
P1 Analyse the impact and influence of the macro environment on a given hospitality
organisation.
Company have to analyse their external surroundings so that they can determine various
opportunity and threats.
 Political factors – components link to political which makes effect on the activity of
Hilton hotel are global relations, and another political climate which are related to tourist
destination. In order to Hilton hotel improves security calculates so that they can give
services to their guest without any discomfort ( Law, Fong, , Chan, . and Fong, ., 2018)..
 Economic factors – elements like interest rate, inflation and another factors. Hilton hotel
can simply produce high income due to the economy of UK is stable which is positive
components for them.
 Social factors - trends, consumer values, area, attitudes of buyers are consider in this
factors. Hilton pay attentions on the requirements of the guest and their taste. In order to

attracts huge number of audience as they are performing services as per the users. This
provides additional discounts and free hotel stays to some of to constant users.
 Technological factors – it is essential for company to implement quick chnaging
tchnologies so that they can reach out activity in growing manner. Hilton hotel iuses
technology like online booking, payment system and many others. It helps them in
managing the rate of buyers along with the decreasing cost which gives them advanatges
in accurate manner (FB Teixeira,2022. ).
 Environmental factors - the company get impact due to different factors just as climate
and another. Hilton hotel follows various environmental laws and regulations of
respective in which nation they work. This assists them in supporting in managing real
balance in surroundings without facing any issues.
 Legal factors - elements such as industry laws and permits and licenses,users protection
laws and many others. Hilton hotel tries to follows all the laws and gives minimum pays
to their workers so that they can introduce their brand positively.
Swot analysis
this framework helps in analysing the internal factors which is helps in development of
good relations within company as well as with the external factors analysis of Hilton hotel.
Strengths Weaknesses
 The existence of Hilton hotel is
crosswise the world which is their
property as it assist in formation of
brand image.
 Because of this large enlargement it
becomes hard for them to keep
appropriate condition in their company.
Opportunities Threats
 People motion their involvement
towards lavishness hotels which is
large chance for Hilton hotel in
increasing their net income.
 Gain in contest becomes destructive
factor as there are various competitors
such as Merriott, Intercontinental etc.
which impact transaction of Hilton
hotel .

M1 Critically analyse the hospitality macro environment to determine and inform strategic
management decisions
This is refers to the set of situation that exists in the economy as a whole rather than in
particulars section in area. In basic, the macro environment consider trends in the GDP ,
inflation and many others . This is closely connected to the basic business cycle as opposing to
the performance of an respective business sector.
P2 Analyse the internal environment and capabilities of a given hospitality organisation.
Company have to determine their capability and weak points so that they can improve
plans which can support them to catch good opportunity.
Mckinsey 7's
structure - the method which company follows in order to manage their total features and
operations is referred as structure. Hilton hotel follows proper accountability in their
relationships and implements chain of command so that they can manage coordination in their
company.
Strategy - the business plan which is organised by management which have to be
implemented by them so that they can attain their objectives. Hilton hotel improves their plans so
that they can finish their mission and vision in effective manner.
System - the technological system and another factors connected to business which
manages proper work flow is known as system. Hilton hotels can simply formulate their plans
and decisions which presents appropriate system.
Skills - the ability of an industry which helps employees in order to attain their aim.
Hilton hotel hire professionals and skilled workforce who can manage critical operations in
nest possible ways.
Style - Hilton hotel follow code of conduct ans this introduce proper dedication in their
activity. It helps them in managing needed communication which is the best suitable
management style for activity.
Staff – particulars who are responsible for enacting activity human resources and talent
management is included in staff. Hilton hotel hire diversified workers so that they can get
advantages in an effective ways.

Shared values - the base of company which considers aims, sight, operation and belief
must be focused. Hilton hotel wants to serve their targeted gathering which needs appropriate
business plan (Elkhwesky, Z., 2022.).
M2 Critically evaluate the internal environment to assess strengths and weaknesses of an
organisation’s internal capabilities, structure and skill set.
P3 Applying Porter’s Five Forces model, evaluate the competitive forces of a given market
sector for a hospitality organisation.
With the aim of determination the forces which are seen in the market, business apply
porter five forces . In below it is explained with description.
 Competition in the industry - the capability of competitors in the industry possess power
to undercut the company. Hug amount of rivals become competitors for industry as it
impacts their revenue system. In Hilton hotel they have introduced their global existence
in an accurate manner which do not effect on power of challengers.
 Capability of new comers - this force must be analysed by company as it impacts their
activity. This in industry is low as Hilton is extremely famous across the globe as they
give high quality services (Damnjanović, Lončarić, and Dlačić, 2020).
 Power of providers - the value of inputs can be impact the power of suppliers due to
they give different raw material and tools. Some providers can raise the reliability of
company which can impact their income producer.
 Power of buyers - the ability of buyers to bargain with company regarding values can
make complexity for an industry. Hilton have honest base of customers as they maintain
healthy relation with them.
 Threat of substitutes - There are huge number of customers in this service industry
which serves relatively similar and options of hotels . Hilton hotels manage appropriate
standard in their services and offer option for users.

Devise appropriate strategies to improve competitive edge and market position based on the
outcomes.
PART 2
Evaluate the different types of strategic directions available to the organisation.
The activities or structure which company take for their operations are known as
strategic directions. Hilton hotel can attain their goals and aims as it gives navigation to
business which is a positive factors. There are different kinds of strategic directions which are as
follows.
Mission : the aim and purpose for presence of an industry is listed in their missions
which act as a mentor for an industry. The mission of Hilton Hotel is to give Hotel experience
and enable unsurpassed to their targeted audience. They concentrate on adding values in the
living of the users.
Culture : The behaviour and attitude within an business presents the culture of an
industry. This plays an important role in designing the strategic direction of an industry. Hilton
hotel manages highly positive operations culture as they organise all the questions and issues
of customers in an accurate manner.
Vision : the expectations of company which they want to finish in their upcoming
journey is listed in their aims. Hilton hotel wants to become premiere given by hotels and
developed vacations experiences via the globe.
Values : the basic values of an organisatio n are their values which can also be explained
as their operations. The base values of Hilton advices they constantly put people first. Some of
their other values are embracing modification, offering the world, acting with integrity and
pursuing excellence.
Ideology - This analysis how an industry can themselves with their respective
employees, industry users and guests. Hilton contains good relationship with all person so that
they can have stability in market for long term.

Principles - All the upcoming policies of an industry just as rules and regulations are their
principles. Hilton hotel can simply structure appropriate decisions which helps them in attiniing
of their goals and aims.
Grand strategy - Long term policy which consist tools and approaches are included as
grand strategies. Hilton hotel secure their organisational patents, copyrights and ensure they
follow all the governmental rules and regulations so that they can live in hospitality industry in
effective ways (Carlbäck, 2022.).
Potters's generic strategies
In order to accomplish with their rivals, Hilton hotel utilise this framework. The position of
their organisation presents the actual ratio of their accountability. More discussion is listed in
below:
 Cost leadership : as per the business can set their cost as lower as possible so that they
can have benefits of competing with another company. Hilton can use various just as
prosperity technology, economics of ratio, preferential access to tools and sources and
many others.
 Differentiation - in this company can consider innovative ideas which makes their
services and goods specific. Hilton hotel can influence huge number of guests by
varying their luxury offers from another industry.
 Focus - it advices that company have to concentrate on the specific sections of the
society. It consider two considerations which are cost focus and differentiation focus.
Hilton hotel practices to considers mixture of cost and differentiation so that they can
become the leader within their company.
Justify and recommend the most appropriate growth platform and strategies through the
application of Ansoff’s Product/Market Growth Matrix.
Company have to mainly concentrate on managing the services. It able them in attaining
good growth exposure in an effective and efficient mode. Hilton hotel uses Ansoff matrix
framework which is straightforward approach for giving growth and success to an industry. This
can be discussed as listed in below :

 Market penetration : It advices that company can sell and serve their present goods to
the existing market with the objective of growing the share of their market. The image
of Hilton hotel is highly positive among their buyers which help in catching huge
market share without investing more finance.
 Product development : the development of new goods and services reaches by a
business for their existing target market is advices through this components. Hilton
hotel consist creative thoughts while giving services which develops interest of their
buyers (Boella, and Goss-Turner, 2019) .
 Market development : moving into new market with company with new services give
them a better opportunity. Hilton hotel international explore new areas so that they can
grow their business in accurate mode.
 Diversification - This plans suggest that company can serve completely new goods and
services in new geographical area . This is majorly implemented by new beginners due
to Hilton has already access huge marketplace in all across the world.
It is suggested that Hilton Hotel can implement product development and market development
strategies. It becomes advantageous for them to raise and expand their operations to great
expansion without any issues.
Devise strategic planning for a given hospitality organisation. This will involve an explanation of
the strategic planning process in your chosen organisation.
Strategic planning process is used by company in order to develop the plans so that they
can attain their long term goals and aims. The strategic planning process which Hilton uses in
their business activity.
Determine strategic position : It is the base of all the business functions which must be
reach out in an industry. It includes all the internal and external factors so that they can get
actual views of their position. Hilton hotel swot analysis in order to analyse their internal factors
which is listed in below :
Strength
 Hilton hotel have strong customer base
which helps them in good
sustainability.
Weaknesses
 Emerging of new competitors who give
substitutes becomes risk for the
company.

Opportunity
 Hilton hotel have huge number of
opportunity for expanding their
business in new areas.
Threat
 Emerging of new competitors which
give substitutes becomes threat for
Hilton hotel.
Pestle Analysis
It is used by Hilton hotel in order to analyse their external factors which are listed in below
:
 Political factors - Hilton hotel operates their business in mostly nations which are
politically stable. Some of them are Ukraine, new Zealand and many more . This helps
them in reaching out systematic operations.
 Economic factors – Variation in the currency of nation in which company performs
business impact their growth. The luxury services which are given by Hilton which is as
per the demands of the nations.
 Social factors - Hilton aims to concentrate on the lifestyle and trends of their users
which outcome in developed revenue generation. They make the services as per the
preferences and demands of buyers which helps in finishing of goals.
 Technological factors : Use of developed technology by Hilton hotel help them in
growing their services. This further helps in gaining different competitive benefits.
 Legal factors – Hilton hotel structured their policies as per the rules and regulations of
the governing bodies. They can easily neglect challenges and risk which develops their
productivity.
 Environmental factors – Operations of Hilton Hotel are reaching out in appropriate
manner so that they can contribute towards the growth of surroundings. They
implements some of the company social responsibility constantly.
Prioritise aims - After the analysis of position of company it is needed to determine the
objectives. Hilton have to concentrate on their mission, vision, aims and goals so that they can
commerce appropriate operations .
Develop a plan : Execution of plans is necessary in accurate ways as it is responsible in
success and growth of company. Hilton uses key performance indicator so that they can
analysis the factors connected to business.

Execute and manage plan : implementation of strategy is essential in accurate ways as it
is responsible in success and growth of an industry. Hilton uses key performance indicator so
that they can analysis the components link to business.
Revise and review the plans : It is the last level which gives chance to company for
analysing mistakes and errors. Hilton implements the modification which are positive so that
they can add success in long run (Aksoy,and et.,al., 2022).
Produce a strategic management plan that has tangible and tactical strategic priorities and
objectives
CONCLUSION
It is concluded from above report that hospitality industry requires amount of strategies
for their survival. It focuses on different resources used in hospitality business and link to
financial resources, tools, human resources and many more. This report consist regards impact
of macro components in an organisation and analysis of internal factors with the help of model.
The rivalry benefits is determined so that they can computer with challengers. Various kinds of
strategic directions a re evaluated with the assistance of appropriate framework. Describe
appropriate growth strategies for an organisation and explain strategic planning process.

REFERENCES
Books and Journals
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