Hilton Hotel UK: A Supply Chain and Value Chain Analysis

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Extended Business Project
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Executive Summary
The report highlights both the SWOT and Value Chain analysis of Hilton hotel, UK in
order to analyze both the internal as well as the external factors that affects the all
management related activities of the hotel. In addition to this, the study also focuses on
market competitiveness by analysing the Supply Chain Management of the Hilton hotel,
UK. A number of recommendations have also been proposed for improving the future
prospects of the Hilton hotel.
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Table of Contents
Introduction...................................................................................................................... 4
Company Overview..........................................................................................................4
Competitive Advantage....................................................................................................5
I. SWOT Analysis..........................................................................................................5
II. Value Chain.............................................................................................................. 8
Analyze the market competitiveness (Supply Chain Management)...............................10
Recommendations......................................................................................................... 13
Conclusion..................................................................................................................... 13
References.....................................................................................................................14
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Introduction
Business, in a global market, needs a proper analysis of both the internal as well as
external environment of the organisation, for strategizing and forming active
management policies for the functioning of the firm (Bell et al., 2018). Hotel Hilton is one
of the most renowned hotels in the UK that operates in room accommodation and foods
services to consumers. The present report highlights the SWOT and Value Chain
analysis in order to investigate both the internal as well as the external factors that
influence both the internal and external activities of the hotel. In addition to this, the
study also focuses on market competitiveness by evaluating the Supply Chain
Management of the Hilton hotel, UK.
Company Overview
Hilton hotel and restaurants, commonly known as Hilton hotels is one of the most
popular hotels in the UK. Conrad Hilton established the company in 31st. May 1919
(Hilton.com, 2019). In the present time, there are 586 branches in 85 different countries.
The main motto of the Hilton hotel is to offer best-quality rooms and services with
various locations in major countries, such as city centres, near docks and airports,
gatherings, and different renowned tourist spots across the globe. Values of Hilton
include H (Hospitality), I (Integrity), L (Leadership), T (Teamwork), and O (Ownership, N
(Now) The Company, Hilton opened its first hotel in 1927 with 24*7 running water and
AC in the public rooms. After that, in 1947 the company Hilton provide television in the
rooms. After completing a long journey, in 2016, Hilton finally expands its services in
more than 100 countries across the globe.
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Competitive Advantage
I. SWOT Analysis
SWOT is an acronym that stands for strengths, weaknesses, opportunities and
strengths. It is an advanced procedure for evaluating the production of the company,
conflict, opportunity, and business quality (Gupta and Mishra, 2016). The SWOT
analysis also helps the Hilton hotel, UK to make necessary decisions. The SWOT
analysis of Hilton hotel is discussed below:
Strengths
● Great practice and a broad range
of the business
● Efficient consumer recognition
plans
● Great feature collection
● Stable as well as efficient
management technique by
Christopher Nassetta
● By using advanced technology
Hilton offers the best quality
services to the consumers
Weaknesses
● Completely dependent on other
markets
● Debts level is comparatively high
● Market share is very small but the
large brand portfolio
● Very high market size but the
flexibility is low
Opportunities
● More International business
development
● Development of necessary
Threats
● Multiple threats because of
unstable political condition and
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connections
● Concentrating on the research and
development department
● Practising appearance as a
medium level budget hotel division
terrorism
● Conflicting changes in the
macroeconomic environment
● Various issues related to the ethics
in Hilton hotel
● Lack of key expertise and key
employees
Table1: SWOT Analysis
(Source: Created by the learner)
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Strengths
● One of the most popular hotels in the UK, Hilton includes 13 different brands
such as Hilton Hotels and Resorts, Waldorf Astoria, Conrad, Double Tree,
Embassy Suites and others. Moreover, Hilton served more than 135 million
customers for more than 100 different nations in 2015.
● Moreover, the hotel, Hilton provides greatest consumer support systems in the
business known as Hilton Honors program. Apart from that, there is a huge
advantages offered by Hilton hotel incorporates different discounted rates, digital
check-ins, for public help offer free internet access, late check-out counts and
many more. These benefits are very acknowledged by consumers and because
of these reasons Hilton is able to make more than 50 million members across the
globe.
● Additionally, the hotel, Hilton owns more than 4500 properties around the world.
Large business control is an important strength from the business view.
Operational costs are reduced by the property ownership.
Weaknesses
● As Hilton hotel completely depends on the other market for that reason the
company is not able to expand its business alone
● Hilton hotel having a low market share, because the services offered by the
company are low. Due to low market share, the number of shareholders and
brand image are also low.
● The market size of the Hilton hotel is high but the flexibility is low, for that reason,
oftentimes the company fails to provide best-quality services
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Opportunities
● Hilton hotel tries to expand its market across the globe which helps the hotel
develop its business
● Hilton hotel use different as well as advanced development techniques to
improve its brand recognition
● For more productivity, provide the best quality services, and try to accomplish the
consumer’s meet, Hilton hotel tries to focus on the research and development
cell
Threats
● One of the most important threats in the present time on the Hilton hotel is
unstable political condition and various terrorist acts
● The macroeconomic environment of the Hilton hotel changing rapidly
● Due to improper communication or the communication gap, the Hilton hotel
encounters different ethical issues in Hilton hotels such as integrity,
trustworthiness, loyalty and others
● As there is not an expert employer and employees within the hotel, for that
reason the company encounters a different issue at the time of handling the
customers.
II. Value Chain
The term value chain analysis can be defined as the methods where the company is
able to recognize both the basic as well as the secondary movements that incorporate
value to its ultimate product and then examine these activities in order to minimize the
overall costs (Donovan et al., 2015). There are generally two types of value chain
analysis is manufacture oriented and service oriented. In the case of the Hilton hotel,
the value chain analysis can be defined as the process of recognising the competing
advantage. Primary value chain activities in the case of Hilton include the following:
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● Inbound logistics: For any organisation, inbound logistics refers to food, interior
design, drink, and motor service (Mittal and Krejci, 2015). For example, in the
food section of the Hilton, it is the duty of the food department to deliver the foods
to the customer's correctly, the duty of the catering department is to collect all the
order and send it to the chefs for preparation of the foods.
● Operations: Operations stage includes the operation executive of the hotel that
converts the goods and services into the offerings of the clients (Barreto et al.,
2017). Example: for serving the visitors in a proper way, the management team
of Hilton hotel used to clean the rooms and the floors of the hotels properly after
checking out the past consumers.
● Outbound logistics: This particular stage deals with the presentation of
customer service (Christopher, 2016). Outbound logistics includes physical and
intangible products. For example, the rooms and service that is provided by the
Hilton hotel, the UK must fulfil the needs of the customers.
● Marketing and sales: In the marketing and sales stage different marketing as
well as promotional strategies that are applied to the company (Fill and Turnbull,
2016). In the case of Hilton hotel, UK the hotel applied basic operations to fulfil
the basic needs of the clients.
● Services: This stage consists of various services such as service after sales,
consumer support, proper training, and complaints of the consumers. All the
requests that are generated from the clients or all the complaints of the
consumers are controlled and managed instantly and after providing all solutions.
After solving all the glitches that are encountered by the clients, hotel Hilton
stores all the data in their own database for their future reference.
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Analyze the market competitiveness (Supply Chain Management)
The term supply chain management or commonly known as SCM can be defined as the
collection of different business processes from the end user, originating from the initial
supplier who provides products, services and data that incorporates purpose for the
consumers. There are different types of supply chain management such as raw supply
chain, self-monitored supply chain, outsourced supply chain, extended supply chain,
internal supply chain and others. Moreover, the main objectives of the supply chain are,
minimized the time, enhance the visibility of the pipeline, both system and service
orientation, decrease the cost of the warehousing, enhance both the services and
quality of the products and others. In the case of Hilton hotel, UK the main function of
the supply chain management is discussed below:
● Make a diversity program for the suppliers
● Maintain long-term communication and relationship with the suppliers
● Provide a proper education program for the suppliers
Apart from that, there are various approaches that are followed by the Hilton hotel, UK
in order to maintain the supply chain management are:
Strategic approach
According to the supply chain manager of Hilton hotel, Bill Kornegay,” We are focused
on developing and executing on programs and policies that serve the interests of
properties and guests”. Here the term strategic approach refers to recognize the basic
demands of the consumers by using advanced techniques. After getting the feedback
from the consumers, Hilton, UK try to solve those problems, in order to satisfy the needs
of the consumers. The strategic approach includes customer analysis, materials
management, transportation and others.
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Project oversight
The term project oversight can be defined as the set of policies and a set of rules in
order to manage and enhance project supervision (Larson and Gray, 2017).
The main objectives of the project oversight are to secure projects to accomplish the
requirements of Hilton hotel for ideas, measures, accountability, effective work
allocation of the resources and others.
Apart from that, the main objectives of the project oversight of the Hilton hotel are to
support the project manager in order to control and manage the overall work operations.
Oversights activities perform in the Hilton hotel include the following:
● Selection of the project
● Management of the portfolio of the Hilton hotel
● Check the main objectives of the Hilton hotel
● Different issues occurred by the project manager of Hilton hotel at the time of
performing different organisational operations
● By using balance scoreboard evaluate the review progress that is associated
with the strategic priorities
Support and logistics
The project management services of Hilton hotel also include the following:
● The competitive proposal method for different project details, including expert
project designers.
● Project status, the budget provided at frequent intervals
● Broad experience, including focused-service hotels, luxury properties and large
resort projects
● Ideal room decoration experience
● Assistance with project designer contacts
● Product Improvement Planning
● Rates incorporation
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