Business Environment MOD003353: Hilton Food Group Plc Report

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This report provides a comprehensive analysis of Hilton Food Group Plc, examining its formation, corporate structure, and governance. It evaluates the company's divisional organizational structure and its advantages in terms of sales, decision-making, and expansion. The report also delves into the essential requirements and benefits of PESTLE analysis for understanding the external business environment, including political, economic, social, and technological factors. Furthermore, it assesses the impact of these external factors on Hilton Food Group Plc, highlighting both positive and negative influences. The report concludes by emphasizing the importance of adapting to changes in the external environment and the significance of PESTLE analysis, particularly for new ventures, in achieving sustainable market positions. This assignment showcases the application of business environment theories to a real-world case study.
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Economic
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Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Evaluation of formation & corporation structure of Hilton Food Group Plc 700......................1
TASK 2............................................................................................................................................3
Essential requirement of PESTLE..............................................................................................3
TASK 3............................................................................................................................................4
CONCLUSION................................................................................................................................6
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INTRODUCTION
Economic is field of study which is essential part of business environment. To understand
this concept , Hilton Food Group Plc has been taken. This organization has been established it
the aim of enhancing business market of Hilton in food and packaging sector. This report is
prepared to define importance of organization strutter, governance of and structure follow by
Hilton Food Group Plc to fulfil their business objective. It also includes importance and
essential requirement of PESTLE technology in context with Hilton Food Group Plc so they
can achieve their goal and able to maintain long term sustain business position within the
market.
TASK 1
Evaluation of formation & corporation structure of Hilton Food Group Plc 700
Business corporations are registered in systemic manner. Hilton is one of the most
famous brand name in world economy. It spread its market by establishing new subsidiaries.
Hilton Food Group Plc is part of Hilton organization. Headquarter of this corporation, is at
Huntingdon. This organization dealing in food packaging business. Hilton due to their quality of
food packaging services able to establish strong image in market. Thus since its inauguration in
1994, the corporation is able to spread, its market in various Europe as well as outside the
continent countries. At present time they share their products from more then 30 countries.
It is registered as public limited company they since its staring days, by using acquisition
and merging business strategies, spread their market share. It mostly connected with Australia
and Netherlands as most of their trade business run in these countries (Gürkan and Tükeltürk,
2017).
Due to registered as public organization, Hilton Food Group Plc have get all the benefits which
public company have, They easily transfer share, deal with any issue have large source of
financial capital.
Since 1994 to 2020, organization deal with Russian, Duct, Australia, Companies and
Indian companies. From past fer years its market growth in India also.
They follow financial governance rules. Thus they company or deal with every norms of
corporation governance. Main motive of Hilton Food Group Plc is to maintain their sustainable
within the market economy by utilizing all the resource and fulfil obligation of ethical and
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moral values. They focus on providing best quality of food packing material so customer get
fresh and healthy food. Management department of Hilton build strategies that they are not
comprise regarding quality material of their products & services.
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Organization structure: The whole organization is run trade activities and managerial
function on the basis of their relevant organization structure. Manager build structure which
define all their relevant role , responsibilities of each department or personal/ .
while taking decision Regarding which organization structure manager is best for corporation.
Manager have many options, since the development of managerial concept, line organization
able structure, division in matrix and functional organizational structure all arr types which
manager serve for choosing structure. Generally management department service those structure
which suitable and easily circulate role and responsibilities , of each hierarchy structure member.
Hilton Food is subsidiary or branch of Hilton , it also spread its branches in various countries.
Manager of Hilton Plc decided that hey need to use division organization structure
through which they distribute and circulate relevant responsibility within the organization.
Divisional organization structure: In this system of hierarchy head management
department, distribute responsibility the basis of division. Manager consider, division as
geography or product vice or functional wise divisional. This structure help in distributing
redeposition in systematic manner (Arabi, 2016).
Hilton use this structure for implementation with their organization due to following
reasons.
Increment in sales: Divisional organization structure useful in enhancing sales . As all
the department a has other own separate working basis thus they have right to formulate
strategies and important which useful in getting business profits.
Help in decision: Heads department used this type of organization al structure method
in taking essential or relevant business decisions. Management department have all the relevant
information regarding each division on the basis of that they take decision for expansion of
business.
Easy for expansion: By systematic organization each business activities. Managers able
to understand business situation and on the basis of that they formulate strategies which useful in
expansion of business market.
Issue related with conflicts: Hilton Food Plc use division structure as by applying this relevant
organization structure change regarding conflict arise due to culture diversity or internal conflict
has been decline .
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Hilton Food Plc appoint director, chief executive director, in this organization they have 2
women directo5r which work as independent d director, there also have audit committee and
team of company secretory for running business in effective manner.
TASK 2
Essential requirement of PESTLE
Since development of theories regarding management , many researchers use or
apply relevant technique ans strategies for analysing business environment. Managers use
various marting technique through which they analysis condition of business environment.
PESTLE is one of them. It is most relevant or reliable business measurement technique which is
used by manager to recognize effect of certainty factors . At the present5 time it is require by
organizations that using this methodology they are able to understand each situation and
condition of market elements.
There Wil be various type of methodologists which organization can use to interpret and
understand their relevant market condition, but since the development of PESTLE, it consider as
most useful strategy for scan business environment . And each business entity wherever it was
small or large business organization . They consider it as best environment scanning technique.
Following are the benefits an organization have when they divide to choose this scanning
techniques (ZHANG, Shisheng, and Yijun, 2019).
Reduce risk probability: By applying PESTLE, business corporations able to control
relevant factors which may become causes of arsing risk in future business chances. They by
analysis legal, economical, environment essential factors managers understand main business
activities or source which may become reason of loss. After analysis all the essential activities
business able to change relevant policies and on the basis of that they reduce risk probability.
Find competitive business strategies of rival industries: By using this statement manager
able to understand and analysis their competitor management strategies which've they use or
apply,y ion selling marketing strategies. This will useful for organization to find out all the
essential factor that useful in establish or build strong position. Manager on the basis of that ,
they formulate strategies though which they attention competitive business advantage.
Cost benefit: Manage only invest their time , they don't need to hire expertise, or use software.
PESTLE. Without using or applying this concept in while making essential marketing strategies.
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It is really difficult to properly utilize resource, this technique help in define and analysis those
business activities in which by investment , manager able to control their cost of running
business activities.
They have all the relevant and sufficient information of each business activities through which
organization able to understand and formulate marking strategies and business place for
fulfilling their object by minimizing cost of incur using business transaction.
Business growth: PESTLE help in defining all their condition and positive as well as negative
impact arise on the organization of al marketing, rival industries, government, media, and
foreign countries policies. .Manager after identifying all the essential data regarding these facto
formulate policies which help in fulfilling and compliance with each policy . It is essential for
organization to apply and implement those business policies which reliable and work in
systematic manner. Manager implement and work in ethical manner and spread market in are
which useful in their growth and spreading marketing share, all theses activities help in
development and maintain strong position within market (Menes, 2019).
Importance for new venture: PESTLE environment scanning technique play vital role for
organization which is newly set up. Organization making their norm and business policies on the
basis of understand every element effect. As success of business entity depend on how
effectively they able to work in accordance with external environment.
PESTLE is beneficial for organization as by applying this method , manager understand all the
relevant meaning and essential elements through which organization attain strong position.
TASK 3
Assessment of external environment of Hilton Food Group Plc by using PESTLE
method .Hilton Food Group Plc's management department use this methodologists in order to
understand relevant of each factor related with outside the atmosphere of the organization. There
are various elements which directly or indirectly business. In the basis of finding out and
collection of business record , manager understand effect of each business factor. Hilton Food
Group Plc. play vital role in earning and increasing revenue rate of the the head organization.
They have various subsidiaries on the basis of that manager make effective business strategies
and polices. Thus help in attain businesses goals. Ea Business organization need for running
effectively business activities in market really this organization to adopt theses strategies as each
factor like m politic,,legal environment, ethical social have their own benefits and negative
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impact. It is not reliable they if organization socio-political condition are benefice or in their
favour that other factor like technological or socio-political in possibility way. Every factor has
its wont term and condition and chance which may be in favour or no favourable condition.
Following are the analysis of
external factor by using PESTLE methodology
Political: It includes all the relevant policies , make by government. Which effect growth rate of
organization. Monetary, fiscal , policies are included in it.
Positive impact: Britain government reduce rigidity regarding business policies thus now it
become easy for Hilton Food Group Plc to expand their market.
Negative impact: UK already face marketing recession period to maintain money supply
they increase inter or loan rate, which adversely impact on business investment plans of Hilton
Food Group Plc as they not able to invest in any other sector due to high rate of interest.
Economical: Theses consider those essential of vital elements which effect market
demand & supply factors. Economical factor are related with fiscal polices, intern rate,.
Positive impact: At present time even UK use fiscal policy market demand in other
foreign countries has been increase thus Hilton Food Group Plc able to attain high rate of
profits.
Negative impact: After Brixit agreement and Corona pandemic, UK face heigh rate of
recession period thus complexities s regarding running business is getting too high as Hilton
Food Group Plc not able to run business in effect manner.
Social: Theses are also of conciser as essential or yield factor. It relates with relation of
an organization with their family, friends, employee. And other social groups. Positive retain
become reason of success of Hilton Food Group Plc , following are impact
Positive Hilton Food Group Plc build positive connection with social groups by using them
quantitative product and service. Thus bran image is high as compare to its rival industry. This is
the reason, Hilton odes not need to invest in proportion technique as it already has strong brand
image within social groups.
Negative: Social groups preference exchanges with time thus organization not trust
them and build polices regarding their choice. After this pandemic the entire social groups
specially youth change their preference. Which become result of changing business policies of
Hilton Food Group Plc .
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Technological: Theses consider all the factor which is related whit technologies , it
consider infrastructure business, using of software, internet revolution, devices. Use of
technology is symbol of success and financial capability of business organization. Following are
the impact of theses environment elements on Hilton Food Group Plc
Positive impact: Hilton Food Group Plc by using effective digital marketing technologies, they
promote their target market customer. They mainly focus on youth customers through which
they can easily spread market shares. Social media, help in build positive goodwill and they
provides online serve which useful in cost cutting for them
Negative impact: Due to use of advance technological factors competitive market in
market is getting too high. As well as case regarding cyber issue, increase. Rival industries use
social media in negative way they spread controversial news about the organization which
reduce its position in market.
Legal factor:It define or includes those business policies which influence or directly impact on
legals business policies of the organization. They consider strategies or business policies made
for providing compensation,benefit regarding retirement, consumer protection, law regarding
companies provision, these incudes in legal business rights. Following are the implementation
on Hilton Food Group Plc (Nuttall, 2020).
Positive impact: This organization is run their business in international market , thus it is really
essential for them fulfilling all the relevant legal law and business policies. By considering legal
business policies and all their regulation, this organization fulfil ethical governance norm Thus
they have benefit and right to easy work in proper manner by fulfilling legal requirement. They
don't have fear regarding cyber issue or using their person right by other companies as with
regard legal constitution they abler to sue case on other company.
Negative impact: Organization need top follow an typical or rigid legal law policies. Hilton
Food Group Plc deal their business most of from European countries thus it become topic for the
organization to follow rule of national as well an international law standard. Manager get
confused thus they pay penalties due to negligence of legal laws.
Environment factors: Business is build yp with natural resource exchequer and every element is
reliable and connect with natural be relevant factors.. It includes a mountains, natural climate
costing, resource mining element . Following are the impact of these factors on Hilton Food
Group Plc
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Positive impact: Hilton Food Group Plc is deal with running business in retail sector,
they trade food packaging products. It is help business organization that they can get all these
essential materiel or serve though which they can manufacture their food packaging material .
Thus organization is situated in UK, which is famous for tourist facilities thus rate of
market and revenue is higher tourist attract towards nature beauty of the this country. These
useful in increasing business growth (Wang, 2018).
Negative impact: Impact of Corona virus has been totally change the entire structure ,
and game plan of organization. It is really hard for Hilton Food Group Plc to spread their market
in other countries. They need to change their business policies and suffers freon high rate of
organization loss.
CONCLUSION
From the above analysis it has been identified that business is not independent unit it is
depend and build by different environment factors. Every organisation need to build strategy
regarding their organization structure. By formulating organization structure manage able to
distribute right and responsibility to each member who work for the organization. Manager for
understanding effect of each external factor apply PESTLE environment technique through
which they can understand impact of each business element and on the basis of that they formate
effect business strategies for achieve predetermine goal.
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REFRENCES
From books and journal
Gürkan, G. Ç. and Tükeltürk, Ş. A., 2017. Strategies for innovative organization structure:
Innovative culture and open innovation. In Global Business Strategies in Crisis (pp.
185-199). Springer, Cham.
Arabi, Y. M., Phua, J., Koh, Y., Du, B., Faruq, M.O., Nishimura, M., Fang, W.F., Gomersall, C.,
Al Rahma, H.N., Tamim, H. and Al-Dorzi, H.M., 2016. Structure, organization, and
delivery of critical care in Asian ICUs. Critical care medicine, 44(10), pp.e940-e948.
ZHANG, J., Shisheng, L.I. and Yijun, S.U.N., 2019. Pestle needling at Yāoyángguān-Bāzhèn
points for intractable lumbodynia after lumbar disc herniation surgery: A randomized
controlled trial. World Journal of Acupuncture-Moxibustion, 29(3), pp.194-199.
Menes, O. R., 2019. Ars Poetica, and: Rasp, Spoon, and Pestle. Southern Review, 55(1), pp.16-
17.
Nuttall, R., 2020. Review of Francis Beaumont’s The Knight of the Burning Pestle (Directed by
Declan Donnellan for Cheek by Jowl and the Moscow Pushkin Drama Theatre) at the
Barbican, London, 5 June 2019. Shakespeare, 16(1), pp.103-105.
Wang, J., Zhang, M., Wang, F., Luo, Y., Wang, Y., Liu, R., Zou, Y., Gong, W. and Xiao, Y.,
2018. Effects on vibration perception threshold and the quality of life in the patients of
high-risk diabetic foot treated with the pestle needling therapy. Zhongguo Zhen jiu=
Chinese Acupuncture & Moxibustion, 38(12) pp.1255-1260.
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