Business Environment Assignment: Hilton Food Group PLC Report

This report provides a comprehensive analysis of Hilton Food Group PLC, a food packaging business. It begins by examining the company's governance structure, including its history, operations, and board of directors, highlighting its divisional organizational structure. The report then emphasizes the importance of PESTEL analysis for understanding the external environment, detailing how it helps businesses adapt to market conditions, identify trends, and assess various factors like political, economic, social, technological, legal, and environmental influences. The core of the report applies the PESTEL framework to Hilton Food Group PLC, exploring the impact of political factors (e.g., tax rates, government stability), economic factors (e.g., labor costs, exchange rates), and social factors (e.g., consumer trends) on the company's operations and strategic decisions. The analysis also considers technological, environmental, and legal factors, providing a holistic view of the challenges and opportunities facing Hilton Food Group PLC in the food packaging industry. The report concludes by summarizing key findings and insights regarding the company's strategic positioning and its ability to adapt to a changing business environment.

Report

Table of Contents
INTRODUCTION...........................................................................................................................2
MAIN BODY...................................................................................................................................2
Task 1 ..............................................................................................................................................2
Examine how your chosen company is governed and structured................................................2
..........................................................................................................................................................4
Task 2 ..............................................................................................................................................4
Evaluate the importance of carrying out PESTEL analysis for an organisation..........................4
Task 3 ..............................................................................................................................................6
Use the PESTEL framework to analyse the external environment of your chosen company. ...6
CONCLUSION................................................................................................................................8
REFERENCE...................................................................................................................................9
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INTRODUCTION
For any organisation and businesses, environment matters a lot as it uses to analyse the
needs and wants of customers who are living in a industry and bring the changes in their
products and services so that they can satisfy the customers. To manage activities and
performance it is important for management to analysis the external and internal environment so
that new policies and planning can be formulated accordingly (Christodoulou and Cullinane,
2019). Business environment is the total or collection of internal and external factors such as
employees, customers, suppliers, management and clients which are important for all to run a
business and know how these factors affects a business. If all factors are organised and managed
properly then it will be an opportunity for organisation to run their business and attain the higher
profitability. The aim of business entity is to earn higher profitability by satisfying maximum
number of customers through delivering better quality of products and services. These factors are
essential for all business concern as it affects the function of company and states how it works
that has directly and indirectly. This report is based on Hilton Food Group PLC that is a type of
food packaging business, offering variety of food and beverages packaging services to customers
in changing environment. This attracts the large number of customers by managing all activities
and functions. This report covers govern and structure, importance of carrying out PESTLE
analysis for an organisation and uses of PESTLE framework to analyse external environment
which supports to run a business.
MAIN BODY
Task 1
Examine how your chosen company is governed and structured
Hilton Food Group PLC is food packaging businesses that is based on providing better
design of food packaging services which provide the safety to customers. This organization is
managing all activities and functions in a organised form that helps to maintain the higher
productivity and profitability.
History and operation: This organisation was established in the year 1994 for the
purpose of operating a beef and lamb central meat packaging facility in Huntingdon. The aim of
organisation is to provide the better quality and design of food packaging services in changing
environment which can help to attracts the large number of customers and attain the higher
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profitability. The reason behind establishment of organisation is to see that customers are facing
the problem in packaging as their products are damaging in transit and creating the problem for
the them which creates the problem them to getting the packing food. So that, employer of such
food business has decided to establish and operate a business in market which can help to operate
a business and maintain the higher profitability (History and structure of Hilton Food Group
PLC. 2020).
How organisation has governed: The incorporation of Hilton Food Group PLC is UK
based retail meat packing company that governed in to three segment: Western Europe, Central
Europe, and Central costs and other. The Western Europe segment covers its businesses in the
United Kingdom, Ireland, Holland, Sweden and Denmark. In Central Europe, its meat packing
business, based at Tychy in Poland, supplies customers across Central Europe, from Hungary to
the Baltics. Number of employees are 4,944 and revenues are $2 Billion approximately.
Websites: Website:www.hiltonfoodgroupplc.com
Board of Directors:
Robert Watson OBE is the Executive Chairman who was a board member of the
Livestock Meat Commission (LMC) from 1995 to 1999, and Food For Britain (FFB) from 1997
to 2003. Robert is Chairman of the Nomination Committee.
Philip Heffer is Chief Executive Officer who is responsible for all Hilton's businesses
with major customers.
Agus Porter is the Non Executive director who manages the food processing and
packaging facilities effectively.
Structure: For organisation it is important to have good structure and design which can
help to attracts the number of customers and shareholders who can help to make investment in
higher amount and supports to increase the organisational productivity and profitability. In other
words, organisational structure is a system that highlighted how all activities and functions are
directed for the purpose of attaining goals and objectives. Hilton Food Group PLC is food
packaging organisation that is following the Divisional organisational structure in the changing
environment which provides the higher productivity and profitability by influencing number of
customers and attain the higher brand image. In this structure, the management has sectioned
each department as Hilton Meats Holland, Operation, manufacturing, packaging, marketing,
financing, distribution and others which helps to attracts the large number of customers. This
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become easy for management to operate and organise all activities in relation to food packing
which deliver better quality of services and attain the great customer values.
This structure allows more autonomy between employer and employees that helps to
control over all performance and manage the all activities in changing environment. Moreover,
this reduces the conflicts and develop higher performance (Achinas and et.al., 2019).
Organisation structure of Hilton Food Group PLC
Sources: History and structure of Hilton Food Group PLC, 2020
Task 2
Evaluate the importance of carrying out PESTEL analysis for an organisation
In business environment, there are many factors which can be arise while running a
business, so it is important for all business concern to analyse the external environment and
activities which are important to consider while running a business. For analysing the external
environment PESTLE analysis is highly important for any organisation that mainly used as broad
fact finding activity that helps to establish external factors in relation to industry analysis that
could impacts on decision making. These factors arises from the out side the organisation which
create the challenge for business and determined that how these are affecting the businesses. It is
obvious true that external factors cannot be control but by measuring them future strategies can
be formulated that might be overcome the negative impacts. As PESTLE stands for political,
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social, economical, technological, legal and environmental which are highly important for
carrying out the business and going to establish a new business.
According to Tran (2019), it is highly beneficial to conduct PESTLE analysis when
someone is going to starting up their own business that can help to analyse them what is going on
in environment and is their business will success or not. On the other side, in already established
business it gives a strong indication on the impact of criterion that how their business depending
on industry and what problem can be arises while operation.
Importance of PESTLE Analysis in Hilton group are -
 In every organisation PESTLE analysis is very important to sustain in the market.
Company needs to understand the market condition of country in which they will operate
their business. In this PESTLE analysis, study of external environment of respective
country has to be done before planning or implementation of strategies. Hilton group
dealing with food an hotel industry in different countries so they also need to identify
external environment of respective countries (Đurđević and Milić, 2020).
 Hilton group is famous multinational company and its surviving in market because of its
analysis, as this company is delivering food hotel services which differ from place to
place and depends on the taste and preferences of costumer, so to understand their needs
and accordingly providing the goods and services is necessary for their business growth.
 In hotel and food industry trends and demand are changing so rapidly and to match them
require extensive research, so this analysis helps in identify the needs and ways to find
out the way to overcome this. Many companies fails sometime to find out the demand
and trend in market which result in failure in the business (Ward, 2020).
 In PESTLE analysis, company able to define various factors which going to affect them
like, political environment has its own importance and its mandatory to study political
condition of that country in which they want to operate their business. In legal factor
company has to study about the law and legal policies of that countries otherwise they
will face problem regarding legal formalities because every country has their different
laws and regulation (Tilman, 2020).
 In economical factor company require to know about demand and supply, inflation rate,
interest rate of that country as they have to formulate their strategies and policies
accordingly. Every company has their different economical condition and situation and
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its mandatory for company to study that because it play important role in progres of
company. Growth of any company is depending on the how well they are functioning in
the the market, meeting the demands of costumer and competing with its competitors that
depend on the situation of company (Masih and et.al., 2019).
Task 3
Use the PESTEL framework to analyse the external environment of your chosen company.
The environment is submission of internal and external environment that are important to
consider for any organisation whether small and large as it helps to understand how macro
factors are affecting the business and decision making. This can be create the challenge for
organisation how to deal with issues which are pertaining in environment so PESTLE analysis of
Hilton Food Group has been conducted below:
PESTEL Analysis: It is a basically a strategic management tool used to identify,
analyse, organise and monitor key external factors that can have an impact on an organisation
now and in future. The framework examine opportunity and threats due to Political, Economical,
Social, Technological, Environmental and Legal Factor to inform Planning and Decision
making. PESTEL Analysis helps a team to understand the organisation market and business
position better and plan accordingly and conduct market research for existing and new market.
Lets discuss the External Macro Factors Faced by Hilton Food Group PLC Company:-
Political Factor :-As the many company operates worldwide, global political greatly
effect the performance of Hilton Food Group PLC company. These includes tax rates, act of
litigation and stability of country it operates in. Due to ongoing financial instability in the world
many government encourage companies to create jobs for domestic population. After Brexit in
UK tax rates has been reduced which has impacted positively on chosen organisation. As Hilton
Food Group PLC can operate its business and expand more with the government support that
shows positive factors. Oppositely, instability in government can create the challenge for
organisation to run and operate the business (Syahchari and Maulana, 2020).
Economic Factor :- It includes labour cost, exchange rates, inflation, exchange rates,
growth rate, unemployment rates etc. These factors are the main points to consider for Hilton
Food Group PLC as they are most likely to leverage cost, demand, price and profit. Therefore
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company should be aware of any changes in policies which can affect the companies financial
position. It is important to mention that in spite of growing business internationally, company
still depends on UK market where it holds share of around 30% that are the negative impacts.
Internationalization and Diversification have been two successfully strategies pursued by the
company over the year. Due to decline in disposable and household income, Hilton Food Group
PLC has shifted most of its focus into advertising its value of brands rather than on luxury
services (Strzelczyk and Chłąd, 2019).
Social Factor :- Due to social changes, as trends indicates customers have moved
towards bulk food packaging, changing in lifestyle and one stop shopping that affected the
business. Hilton Food Group PLC has increased the number of food packaging services as it
understand the customers demand and their lifestyle which affected positively. The type of goods
and services History and structure of Hilton Food Group PLC. 2020 demanding by consumers is
mostly influenced by their attitudes and beliefs which in turn influenced by social conditioning.
Because now a days customers became more about health issues due to COVID -19 which
there demand for food constantly decreasing that might be affected business negatively. Hilton
Food Group PLC adapting these changes by accommodating the demand for organic products.
Technological Factor :-The advancement in technology has bought various opportunity
for various industries. The two most recognisable includes, one online shopping with home
delivery. Secondly self service checkout points have provided convenience and ease to
customers, which in turn reduce to labour cost. Due to COVID- 19, management of Hilton Food
Group PLC has brought some innovation such as proper sanitized food packaging, delivery etc.
that make safety and healthy to people, thus this impacts positively (Sidwall Thygesen and
Ljunggren, 2020).
Environmental Factor:- With increase in pressure to reduce environmental issues and
adopt ways to operation to increase society benefit. Hilton Food Group PLCis reducing the use
of carbon footprint and also reduces the waste produced in the stores and also increases social
conscience in the customers. This factor might be support to chosen organisation in establishing
and operating their business in challenging environment which helps to attain the higher
productivity and profitability in changing environment. This organisation also contribute in
Corporate social responsibility, and social welfare by following minimum wastages which helps
to attain the higher productivity (Kinross and et.al., 2020).
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Legal Factors:- Government polices and legislations also affect the Hilton Food Group
PLC Company. For example Food packing and labelling standard is following by chosen
organisation that impacted positively on organisational business. The organisation can operate its
business in changing environment by following all food packing regulation and employment acts
which can help to run a business and increase profitability (Sofronjuk, 2019).
Therefore, from the above analysis it has explained that in environment there are many
factors exists that have mighty negative impacts that should be consider while operation and
managing the activities in changing environment. If organisation is able to conduct the external
analysis then it will be opportunity to develop the business and maintain the good performance in
future period (Qumbisa, 2019). Hilton Food Group PLC uses pestle analysis for the purpose of
knowing business situation which is running currently that helps to formulate plans and
strategies in changing environment and maintain good performance.
CONCLUSION
From the above report it can be concluded that organisational structure is important for
managing all activities and functions which can help to divide the work between employees who
are working and manage the performance. A business is managing by managers, shareholders,
customers, suppliers, distributors and others who are playing important role and delivering better
quality of products as well as services. PESTLE analysis is important for starting and running a
business continuously which states how external factors are influencing the businesses and how
they can be create challenges in future. This can help to operate a business and attain the higher
productivity by managing all activities and function effectively.
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REFERENCE
Books and Journal
Christodoulou, A. and Cullinane, K., 2019. Identifying the Main Opportunities and Challenges
from the Implementation of a Port Energy Management System: A SWOT/PESTLE
Analysis. Sustainability. 11(21). p.6046.
Achinas, S., and et.al., 2019. A PESTLE Analysis of Biofuels Energy Industry in
Europe. Sustainability. 11(21). p.5981.
Đurđević, Z. and Milić, N., 2020. The importance of analytical work in countering contemporary
forms of crime in the context of EU integration. Bezbednost, Beograd. 62(1). pp.84-102.
Ward, D., 2020. The Perceived Importance of the Changing Political Environment on SME
Market Entry: New Zealand SMEs Entering the United States (Doctoral dissertation,
Auckland University of Technology).
Tran, D. A., 2019. New Product development: An analysis of two small and medium enterprises
in Vietnam.
Tilman, D., 2020. Plant Strategies and the Dynamics and Structure of Plant Communities.(MPB-
26), Volume 26 (Vol. 102). Princeton University Press.
Masih, J., and et.al., 2019. Market Capturing and Business Expansion Strategy for Gluten-Free
Foods in India and USA Using PESTEL Model. Agricultural Sciences. 10(02). p.202.
Syahchari, D. H. and Maulana, Y., 2020, April. Strategic planning for developing coffee as a
tourist attraction in Rural Area (Case study: Campakamulya Village, Bandung, West
Java, Indonesia). In IOP Conference Series: Earth and Environmental Science (Vol.
452, No. 1, p. 012078). IOP Publishing.
Strzelczyk, M. and Chłąd, M., 2019. Use of pestel analysis for assessing the situation of polish
transport enterprises (part II). Organizacja i Zarządzanie: kwartalnik naukowy.
Sidwall Thygesen, G. and Ljunggren, G., 2020. Exploring the implementation of an Inclusive
Short Food Supply Chain.
Kinross, A. D., and et.al., 2020. Comparison of Accelerated Solvent Extraction (ASE) and
Energized Dispersive Guided Extraction (EDGE) for the analysis of pesticides in
leaves. Journal of Chromatography A. 1627. p.461414.
Sofronjuk, T., 2019. Comparison of automated KingFisher Flex™ purification system and
manual GMO™ Extraction Kit in DNA extraction from food samples in the NGS Food
Authenticity workflow.
Qumbisa, N. D., 2019. Indigenising instant noodles: an interface of traditional amaranthus
leaves and wheat for improved food and nutrition security (Doctoral dissertation).
Online
About Hilton Food Group PLC. 2020. [Online]. Available through:
<https://en.wikipedia.org/wiki/Hilton_Food_Group>
History and structure of Hilton Food Group PLC. 2020. [Online]. Available through:
<http://www.hiltonfoodgroupplc.com/about-us/history>
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