Hilton Group: Organisational Development, Challenges, and SWOT

This report provides an overview of the Hilton Group's organizational development, focusing on the challenges and opportunities it faces in the competitive hospitality market. The report begins with an introduction to organizational development and its importance for business performance, followed by a discussion of the problems and challenges encountered by the Hilton Group, including the growth of Airbnb, concerns about cleanliness, and the adoption of virtual and augmented reality technologies. A SWOT analysis is then presented, detailing the company's strengths, weaknesses, opportunities, and threats. The report concludes with recommendations for the Hilton Group to improve its performance and adapt to the changing market landscape. Key recommendations include increasing flexibility, focusing on customer satisfaction, and expanding its presence in key markets.

Organisational Development

Table of Contents
OVERVIEW....................................................................................................................................1
Problems and challenges faced by Hilton group.........................................................................1
SWOT analysis done for hotel Hilton Group..............................................................................3
CONCLUSION................................................................................................................................4
RECOMMENDATION...................................................................................................................4
REFERENCES................................................................................................................................5

OVERVIEW
Organizational development is a body of practice and knowledge which helps to enrich
individual development and organizational performance. In other words it can be said that it is
the best and effective techniques to bring change in the entire business instead of focusing
attention on the individuals. Development of organization is important as it use human resources
at optimum level to raise the productivity in the work place. It affect every aspect of the
business which directly helps to take efficient decision. Hilton group is a leading flagship brand
of American multinational hospitality company. This organization was founded by Conrad
Hilton around 99 years ago on may 31, 1919 (Birkinshaw, 2016).
The type of the business is private and it's headquarter is in McLean, Virginia. Number of
locations is around 570+ hotels across the globe. Hilton is serving it's services worldwide and is
trying it's level best to meet the emerging needs of the customers. The parent company is Hilton
worldwide. To reach out to the firm it's websites is www. hilton.com . If the members of the
Hilton group book the rooms directly from their own websites they give exclusive discounts and
amities like, digital check in, free Wi-Fi, allowed to use mobile app to choose specific rooms and
keyless entry. This directly helps the business to bind customers with their services for longer
time duration. In the year 2018, this group opened the first four star hotel in Serbia, Belgrade.
This report includes problems and challenges faced by the Hiltion group while retaining
customers for longer time duration. SWOT analysis helps the business to study their own
strengths and weaknesses so, that improvement can be done at the initial stage. Whereas, threats
and opportunities helps the firm to discover new and innovative idea in the market. All this uplift
the business associates to retain in the cut throat environment for longer time duration (Gillespie
and Reader, 2016).
Problems and challenges faced by Hilton group
Every small and big organization faces various challenges and problems while competing
with the competitors in the global market. This problems and challenges give birth to new
creative ideas, thoughts or plan so that through this business can be explored more, profit can be
maximized, customers can be retained etc. Here, Hilton group is also facing distinguished open
problem and challenges in the cut throat market which are explained as follows:
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Growth of Airbnd: Growth of Airbnd across the globe is a major problems faced by the
hotel industry as it has caused customers to expect more of personalized experience. This is
creating massive disruption within hotel industry as In UK the prices of the rooms of Airbnd is
40% cheaper which is emerging problems and challenges to the Hilton group in the coming
years. It can be seen that less than a decade, Airbnd has is now an estimate of $30 billion in the
market which is creating troubles for the Hilton to attract customers for the services for longer
duration (Problems and challenges faced by the company, 2016). Airbnd is operating in 191
countries and has million of customers following the business on Instagram which is a emerging
problem in the market to capture market ratio as well as to a tough competitor. Hilton needs to
figure out alternative plans to retain customers as well as to bit the upcoming Airbnd problem
and challenges in the international market (Roberts, 2018).
Cleanliness: Customers are more health conscious in the era of 21st century so,
cleanliness is the first and priority for every hotel industry. Many times it has been seen that
customers are not satisfied with the cleanlinesses and hygiene food. Many times un -hygenic
food is served as well as dirty rooms are allotted due to which customers switch to some other
organization to satisfy the needs. If the first impression in the hotel is not good and pleasant
regarding, food, facilities, transportation, booking etc. then customers does not prefer to visit
again. If the quality of the food and rooms are not up to mark it's very difficult to retain
customers with the firm.
VR(Virtual reality) and AR(Augmented reality): VR (Virtual reality) has been
restricted to the entertainment, health care and gaming as it requires experimental budgets to
carry forward this activities. Many firms are running of low financial budgets are not able to
compete with the experimental budgets. It can be seen that Hotel Marriott is embracing VR
technology in its organization to retain consumers as well as to maximize profits for expansion.
This are the emerging challenges and problems faced by the Hilton group in the current market
scenario.
Many of the top brands in hotel industry are experimenting the VR technologies in their
business to bit the other competitors in the market (Wu and Chu, 2015). All this are indirectly
raising the cost of production as well the prices are tremendously increasing of the services due
to which customers re looking for other alternative which is big problem to hold them back. This
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modern technology is a open challenges and problems for Hilton Group which needs to be
overcome in the coming years to expand business in the international market.
SWOT analysis done for hotel Hilton Group
SWOT(strengths, weaknesses, opportunities and threat) is done to find out the inner
strengths and weakness so that they can be overcomed or can be used for efficient and effective
productive outcomes. By doing SWOT companies turn out others loop holes as their
opportunities in the market and is able to capture huge market brand as well is able to create
brand image. It also alert the firm with the upcoming threat prevailing in the cut throat
competitive world. Hilton group strengths,weaknesses, opportunities as well as threat are
discussed below:
Strengths: Strengths of Hilton group has helped the firm to flourish in the competitive market.
Here, are some of the core strengths of the organization which are discussed below:
Brand acknowledgement: Hilton group is able to create a positive sign of the brand
image in the international market. Business is serving it's services across the globe due to which
strong brand acknowledgement is created as well as they have effective consumers retention
schemes which leads to achieve goals on time. Business is having high level of service
customatisation and modern technology integration which is directly helping the business
associates to be a tough competition for the other business (Mellor, 2015).
Spreading business across Asian continent: Hilton is spreading it's business across
Asian continents which is helping to strengths the foundation by increasing customer base and
revenue.
Solid provider's relationship: Hilton group keep a record of the demand or preferences
of every customers and every time when visit the hotel, firm serves them the same offerings as
the earlier. Due to which emotionally attachment as well as satisfaction can be given to the
customers.
Weaknesses: Ever coin has two faces one head and the other tale same here, company has
strengths as well as weaknesses which are discussed below:
Not much developed network: Hilton group is not having adequate number of inn
network in North America and Europe so that lavish five star inns working can be done there.
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Lack of flexibility: Hilton is less flexible in it's working as it has large size operations. Due to
vast working scenario it's very difficult for the business to be frequently flexible to dynamic
changes every now and then.
Opportunities: By continuous research and development Hilton is able to search out certain
opportunities for growth in the coming years which can be discussed as below:
Australian market can be interesting place for explore: As Australia has turned into
the world's biggest economy expansing hotel business in this country will be great opportunities
in the coming years. It will help the business to flourish in the market.
Establishing presence in the mid level budget hotel sector: Hilton is creating it'd
image in the mid level hotels so that more brand recognition can be done in the eyes of the
customer. Which will leads to more profit maximization for future growth (Erasmus and Van,
2015).
Threats: As Hilton is a leading firm across the globe so the threat is from the existing
competitors in the market who has able to capture huge market ratio. Another threat bis the
tremendous change in the macro environment climate due to which customers exceptions are
raising day by day.
CONCLUSION
From the above discussion it can be concluded that organization development is essential
for better productive results. SWOT analysis is done to figure out the strengths as well as to work
on the weaknesses lacking behind. It also opens the door of opportunities in the market due to
which more expansion can be done and analysis the threat in the coming year. It also through
light on the problems and challenges faced by the firm (Bolden,2016).
RECOMMENDATION
There are certain recommendations which company should do to raise productivity in the
market which are follows:
 Organization should be more flexible in it's functioning to meet the targeted goals as well
as to be competitions for other.
 Firm should focus more on neatnesses and customers emotions so, that they can bind
them with their services.
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 Business associates should search out the Inn network in Europe and North America to
grab the opportunities at the earliest.
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REFERENCES
Books and journals
Bolden, R. (2016). Leadership, management and organisational development. In Gower
handbook of leadership and management development (pp. 143-158). Routledge.
Erasmus, B. J., Grobler, A., & Van Niekerk, M. (2015). Employee retention in a higher
education institution: An organisational development perspective. Progressio, 37(2),
33-63.
Mellor, R. B. (2015). Modelling the value of external networks for knowledge realisation,
innovation, organisational development and efficiency in SMEs. International Journal
of Knowledge-Based Development, 6(1), 3-14.
Wu, Y. K., & Chu, N. F. (2015). Introduction of the transtheoretical model and organisational
development theory in weight management: A narrative review. Obesity research &
clinical practice. 9(3). 203-213.
Roberts, J. (2018). Multinational business service firms: development of multinational
organization structures in the UK business service sector. Routledge.
Gillespie, A., & Reader, T. W. (2016). The Healthcare Complaints Analysis Tool: development
and reliability testing of a method for service monitoring and organisational
learning. BMJ Qual Saf. 25(12). 937-946.
Birkinshaw, J. (2016). Multinational corporate evolution and subsidiary development. Springer.
Online
Problems and challenges faced by the company. 2016. [Online] Available
through:<https://www.sitevisibility.co.uk/blog/2016/09/08/top-3-challenges-facing-
hotel-companies-2016/#grefl>./
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