Strategic Management Report: Hilton Hotels and Resorts Analysis

This report presents a strategic management analysis of Hilton Hotels, focusing on its internal and external environments. It begins with an executive summary and introduction, outlining the existing vision and mission statements and proposing new ones. The report analyzes external opportunities and threats, develops a detailed PESTLE analysis, and constructs a competitive profile matrix to assess Hilton's market position relative to competitors. Internal strengths and weaknesses are examined, and internal and external factor evaluation matrices are developed. The report recommends objectives, strategies, and compares them to the company's actual strategies. Various strategic matrices, including BCG, SPACE, and IE matrices, are applied to identify strategic positions and survival in the market. The report concludes with recommendations on how to implement the strategies, expected results, and strategic review and evaluation procedures. The analysis considers Hilton London as a case study and aims to formulate an effective strategic plan for business diversification, particularly in Sudan, considering pricing and promotional strategies.

Strategic Management

EXECUTIVE SUMMARY
This assignment is based on the internal and external analysis of a business organisation that
are related to the formulation of strategic management plan. As it is required to implementing the
appropriate plans in order to analyse the PESTLE as well as SWOT analysis to evaluate the
situations of marketplace environment. Also use some definite kind of matrix such as BCG,
SPACE, IE matrix etc. in order to identify and analyse the strategic position and survival in the
market. This report is based on the Hilton worldwide consider as a leading hotel organisation in a
hospitality industry as it has 4661 hotels and 764748 rooms that are spreads across 102 countries.
The is the fastest growing hospitality businesses in the entire world as being a first choice of
guests. In this formulate a effective strategic plan in order to diversify their businesses in Sudan
at affordable pricing strategy. Also recommend to use effective promotional strategies to achieve
organisational objectives, vision, mission as well as goals and receive or evaluation procedures.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................1
1) Existing vision and mission statement...............................................................................1
2) Develop new vision and mission for an organisation........................................................1
3.a) Analyse the external opportunities and threats................................................................2
3.b) Develop a PESTLE analysis...........................................................................................2
4) Make a competitive profile matrix.....................................................................................5
5) Prepare an external factor evaluation matrix.....................................................................6
6) Examine the internal strengths and weaknesses.................................................................7
7) Develop an internal factor evaluation matrix.....................................................................8
8) Recommend objectives and strategies and compared to actual strategy that are planned by
company...............................................................................................................................10
9) Apply some matrix...........................................................................................................11
10) Specify that how recommendations applied in an organisation and what results can expect.
..............................................................................................................................................13
11) Recommend strategic review and evaluation procedure................................................14
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Strategic management refers to the continuous planning, organising, monitoring and
evaluating all the required things which an organisation wants to meet the objectives of a
business (Rothaermel, 2017). Dynamic changes in business environment need to formulate
effective strategies in order to constantly assess their performance and attain success. It is related
to the management field as it includes formulation and implementation of their initiatives that are
taken by the company's top manager on the behalf of firm owner. This is totally based on the
assessment of internal as well as external environmental factors in which a business operates
their operations effectively. Strategic management helps in facilitates clear directions to the
company that includes objectives, plans, policies, resources etc. in order to deal with the
competitive workplace and take competitive advantages in dynamic market conditions. In this
report Hilton hotel & resort is chosen which is an international brand of American multinational
hospitality company as a full-service hotels and resorts. It was founded in 1919 in Virginia, U.S.
but in this report, Hilton London is considered to study the several concepts which was founded
in 1963 in London, United Kingdom. Under this report discussed about the company's existing
vision, mission statement and also develop new vision and mission to manage their operations.
Although, study about the internal strengths and weaknesses and external opportunities and
threats as well as conduct PESTLE analysis. Also, analyse several models and matrix such as
competitive profile matrix, external factor evaluation, internal factor evaluation, SWOT, BCG,
SPACE as well as IE in an appropriate manner. In addition, identify the whole management like
finance, marketing, R&D etc. issues and recommend appropriate strategies to overcome that as
well as process effective review and evaluation of strategies.
1) Existing vision and mission statement.
 Vision statement: To make full the world with light and warmness of hospitality by
serving extraordinary experiences at every time to each guest at all hotels.
 Mission statement: By maintaining a heartfelt experience for their guest, purposeful
opportunities for staff, high worth for owners as well as a positive effect in community.
2) Develop new vision and mission for an organisation.
 Vision: To be identifiable in the world by their high standards of services quality and to
be accordant in publicity of excellency, freshness as well as future development.
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 Mission: To transcend guest requirement along with inspire and encourage their
employees in order to achieve the effective and excellent financial outcomes.
3.a) Analyse the external opportunities and threats.
Opportunities refers to a chance to grow and learn many new things in order to explore
them and try to do better. It helps in identifying the potential growth and improvement for
businesses (Ansoff, 2018). Whereas, threats are considered as a cause of damage an organisation,
process as well as products or services. There are several opportunities in the market of
hospitality sector that helps in growing their businesses appropriately in international market but
some obstacles also that creates road blockages to grab the opportunities on time. In the context
of Hilton, London there are many opportunities and threats which effects through the external
environment that are considered as follows:
Opportunities Threats
 The company have opportunity to
manage relationships that helps in
better relations with their customers
and understand their needs
appropriately.
 To develop a good ground in the
marketplace by innovate in customer
services in order to increase customer
base
 Use of digital technology as well as
latest techniques facilitates Hilton to
gain a high potential in market and take
a competitive advantage.
 Various international brands enter in
the market with their strong and well-
established brands creates some kind of
threat for Hilton while grabbing an
opportunity.
 Some of the countries have economical
as well as political turbulence that
creates obstacles to enter in that country
as a service provider.
 Competition is aggressive or high in the
market as it possesses a big challenge
to a company in term of increasing the
customer base and revenue.
3.b) Develop a PESTLE analysis.
This is concerned with the research of external business environment that influence the
internal capabilities and structure of a company like Hilton in which they operate their
operational activities (Noe, 2017). It is necessary for designing and implementing effective
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strategies for future in order to that a company requires to use PESTEL analysis to assess and
identify the market conditions. It can be considered as follows: Political factor: This is concerned with the political policies and processes that are
undertaken by the country's government which includes political stability governmental
legislation and rules. For example: Digital economy act, 2010 and new immigration
policies etc. act and policies of UK which are granted by the government for hospitality
sector of that country. UK's political condition are stable and highly strong as it provides
many opportunities for Hilton's to grow their service businesses within the marketplace.
Due to the Brexit deal between UK and Europe, trade wars, instability as well as terrorist
attacks may create a kind of sustainability threat for the company. Hilton should
formulate appropriate strategies to maintain their service quality and facilities in order to
satisfy the requirements of customers and provide valuable experience to them in adverse
situations.
 Economic factor: It involves the various forces such as taxation, interest, savings and
foreign exchange rates. Currently a high competition in UK's market as a budget hotel as
many of the business provides similar services in-fact at a low price that impacts on the
Hilton business. As it can be said that the rising price of Hilton hotels services have given
rise to the demand of their excellent and valuable services that will leads as an
opportunity for the company to gain a customer satisfaction. Also, when Olympics held
in London 2012 effects the country's economic situations in several way and prove
beneficial for the hospitality businesses as it increases the occupancy rate. In addition,
increase in tourism spending in UK after the recession in sterling value against the Euro
and Dollar impacts positively on UK's hotel industry (David, 2019). Social factor: Changes in taste, preferences, beliefs, attitudes as well as customers
lifestyle includes in the social factors. As the change in time consumers become
environmental concern more as as they need hygienic hotels and superior service quality
that creates some kind of threat on the society. Currently Hilton have an opportunity to
take benefits of increasing demand for providing sustainable services to their customers.
However, several hotels present in the market which offers same kind of services it will
creates competition and it considered as a biggest threat for Hilton. A hotel should adopt
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innovative strategies to manage their customer’s expectations and satisfied them
effectively. Technological factor: This is concern with the automation and up-gradation in existing
technologies that are required to handle the market changes and circumstances. Hilton
need to focused on technological factors as it includes software's, Wi-Fi facility as well as
security concern. Customers are considered safe and secure hotel and it also helps in
decreasing the efforts and enhance outcomes. Now a days, most of the people chose
technologically upgraded hotels because it is a most important way for gaining users
satisfactions (Perera, 2017). Legal factor: These forces includes the several laws and legislations that are required to
operates businesses in a specific location. In the context of Hilton, a hotel may possess
health and safety laws, security, anti discrimination laws, employment laws etc. In UK
hotel has to follow some rules that positively impacts on hotel industry as people get
attracted towards the leisure based places that are legally owned and facilitates secure
services. The current wars do not impact on the hotel industry as it may results in changes
in legislations. At that time a government also becomes more flexible and allow to
consider society firstly.
Environmental factor: All businesses are operating within the environmental interest in order to
gain recognition from users, government as well as legal bodies. Weather changes impacts on the
hospitality industry as taxes are applied to avail environmentally friendly services. Mainly flood,
heavy rains and Strom effect hotel business as it is essential in monsoon season especially. The
company Hilton has to measures effectively and make appropriate control over it on time
(Domingues, 2018). The hotel management requires to teach measures to their employees in
order to deal with the complex and immediate situations at their workplace.
From the above analysis it shown that it considered as a most important tool or
mechanism to analyse the impacts of external factors. All hotels need to be understood all factors
and make strategic policies for effective management. As the customers are more attracted
towards the safety, security, hygienic services which gives more satisfaction and increase the
demand of a specific hotel. As maintain a customer relationship facilitates an opportunity to
Hilton in order to increase customer base and deal with complex issues of their users.
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4) Make a competitive profile matrix.
Every organisation has unique strengths and weaknesses such as one might have cost
leadership as effective supply chain superior, other might be best service quality, customer base
etc. In order to know the strategic positions in the market as compared to their competitors
Competitive Profile Matrix is suitable as it shows clear direction and position in the marketplace
with respects of specific aspects (Kara, 2018). There are mainly four components of CPM which
a company Hilton can use to analyse the success that are considered as follows: Critical success factor: These are the key attributes that shows the success indicator of a
company in the specific industry. These factors are different according to the industry and
made up of internal as well as external factors. It includes management competency,
customer service, product range, location, cost base, technological innovation etc. Weight: This is required for each critical success aspects that are needs to be allocate
within a range of 0.1 to 1.0 in which lower value shows that this factor is not significant
in the business success whereas higher rating display that it is more important factor for
determining the success of an organisation. The sum of all individual weights in CPM
must be 1 in total and the weights implies the significance of industry success. Rating: It shows a company's well points in which they doing well as it is used as a
rating scale which includes a range of 1 to 4 according to their effectiveness and success
parameters. In that 1 is the major weakness, 2 is the minor weakness, 3 is the minor
strengths and 4 is the major strengths and compared it to their competitors.
 Score: It defines as a final step of completing competitive profile matrix as it adds value
of all success factors for each player. The company who has a highest total score then it
places a strongest position at marketplace (Martinez, 2017).
The CPM of Hilton Hotel is done below and compared with its main two
competitors such as Marriott and Accor:
Competitive profile matrix (CPM)
Marriott
International
Hilton Hotel Accor
International
Critical success factor Weight Rating Score Rating Score Rating Score
Advertisement 0.09 1 0.09 1 0.09 1 0.09
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Financial position 0.17 4 0.68 4 0.68 3 0.51
Global expansion 0.13 4 0.52 4 0.52 2 0.26
Market share 0.17 4 0.68 3 0.51 3 0.68
Management 0.13 2 0.52 4 0.52 4 0.26
Product quality 0.13 4 0.52 4 0.52 2 0.52
Customer services 0.09 4 0.36 4 0.36 4 0.36
Price competitive 0.09 1 0.09 2 0.09 3 0.09
Total score 1 - 3.46 - 3.29 - 2.77
Analysis: It has been shown that from the above Competitive Profile Matrix that market
share and financial position shows the high success factor in hotel industry. The Hilton Hotel
doing well within the several areas such as financial position, global expansion, management,
product quality and customer services. There is need of improvement in following areas like
advertisement, market shares and price competitiveness. This is visible on the basis of
competitors advantages in those areas.
5) Prepare an external factor evaluation matrix.
This is considered as a strategic management tool that are used to determine the external
environment as political, social, legal, cultural as well as competitive information’s (TAKACS,
2017). External factor evaluation indicates that the company is able or not in order to take a
competitive advantage related to their existing market opportunities along with facing threats
also. In addition, this will help in designing and implementing the business strategies and
policies on the basic of their current market positions (EFE Matrix, 2019). Hilton Hotel can
conduct external factor evaluation matrix for analysing the actual score in the market and further
formulate effective and strategic plan in order to lead in the market positions as compared to its
competitors. There are several elements through which external environment is analysed that are
as follows: Key factors of external environment: It involves the external factors only such as
opportunities and threats of Hilton Hotel.
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 Weights: It is taken from 0 to 1 as 0 shows less important for a business and higher value
shows high importance of this factor. Rating: It should be between 1 to 4 as it shows an effectiveness of business strategies like
1 is poor, 2 is below average, 3 is above average and 4 is high level.
 Score: Multiply all weights with rating to calculate a weighted score for all factors.
The EFE matrix of Hilton's are as follows which shows the rating as per their
opportunities and threats availability in hospitality industry or hotel sector:
External factor evaluation matrix
Weight Rating Score
Opportunities
Manage customer relationship 0.11 3 0.33
Digital technology developmental 0.19 1 0.19
Innovative customer services 0.24 2 0.48
Threats
Strong brands in the marketplace 0.2 4 0.8
Political and economic influences 0.14 2 0.28
High level of competition 0.12 3 0.36
Total score 1 - 2.44
Form the above external factor evaluation matrix it shows that the total weighted score of
Hilton is 2.44 as it indicates that it has slightly less than average ability to responds on external
factors.
6) Examine the internal strengths and weaknesses.
Internal environment of an organisation is related to the several components that are
available inside businesses and effects the company's decisions, activities as well as choices
(Capps, 2019). Every business has specific strengths and weaknesses which shows their strong
and weak areas in order to enhance their strengths by removing weaknesses. Strong point shows
that the tasks which can do well by Hilton such as proficiency, knowledge, talents, resources as
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well as their image. Although, weaknesses refer to that features of a business that leads in
negative outcomes as they do not perform well. This will affect the company's working
performance and result in productivity and profitability level (Betancourt-Guerrero, 2018). The
strengths and weaknesses of Hilton are described as follows:
Strengths Weaknesses
 High brand recognition of Hilton is a
major strength as it presents I many
countries across the world wide.
 Skilled and talented workforce is their
strengths as it is successfully developed
through training and development
programmes.
 The company works with dedicated
department of customer relationship
management that helps in gaining a
high level of customers satisfaction and
maintain potential users also.
 Technical innovation is a strength of
the company as it improves customer
experience as well as regularly update
business processes.
 The company lacks in spending
research and development activity as
compared to its competitors that results
in unable to compete with their leading
player of markets with respect of
innovation.
 High rate of attrition in employees and
more expenses on their training and
development mechanism leads in weak
areas.
 Financial planning is not appropriate as
they have high level of debts.
 It is less flexibility in their operations
as it deals in large size of business
which leads in taking ineffective
decisions.
7) Develop an internal factor evaluation matrix.
This tool is considered as a strategic management plan as it is used to analyse the
company's internal environment as well as to reveal their strengths and weaknesses. This will
help Hilton to analyse the strong areas and enhance them in order to reduce the weaknesses and
it shows the sustainability ratio of an organisation as well as long term survival in the market of
hotel industry (IFE Matrix, 2019). In order to remove their weaknesses a company formulate
effective strategies to convert them in strong areas and takes those advantages as compared to its
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competitors which are leads in market environment. The determinates of Internal factor
evaluation matrix with respect of Hilton Hotel are as follows: Key factors of internal environment: It refers to that aspects which are present inside the
business operations and under the control of management that includes internal strengths
and weaknesses of Hilton Hotel. Weights: This is considered as a weight of 0 to 1 as it shows the weightage of their
factors like strengths and weaknesses. In this the lowest value shows the less or no
importance but highest point display high significance of factors. Rating: It is related to the scale of measuring a company performance and their strong
and weak points which are poor or good. As it shows a ranking between 1 to 4 as per the
importance of their strengths and negative impacts of weak points in market place. As 1
display poor, 2 shows below average rate, 3 consider as an above average measure and
last 4 is good rating system.
 Score: It is calculated on the basis of weights and ratings as respective weights are
multiplied with their ratings in order to know about the actual score points.
Internal factor evaluation matrix of Hilton Hotel with respect of their strengths and
weaknesses are as follows:
Internal factor evaluation matrix
Weights Rating Score
Strengths
High brand recognition 0.11 3 0.33
Talented and skilled workforce 0.09 1 0.09
Customer relationship management department 0.24 4 0.96
Technical innovation 0.1 2 0.02
Weaknesses
Less spends on research & development activity 0.17 3 0.51
High attrition rate of employees 0.03 4 0.12
Ineffective financial planning 0.14 2 0.28
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