Strategic Analysis of Hilton Hotel: Enterprise and Innovation Report

This report provides a comprehensive strategic analysis of Hilton Hotel, examining its internal resources and capabilities through the 7-S framework to establish a competitive edge in the market. It delves into the key drivers within the external environment that influence entrepreneurial activities, encompassing political, economic, social, technological, legal, and environmental factors. Furthermore, the report evaluates the impact of Porter's Five Forces on the organization's profitability, assessing the threats of new entrants, bargaining power of suppliers and buyers, the threat of substitute products, and the intensity of competitive rivalry. The analysis highlights the importance of strategic planning, innovation, and entrepreneurial approaches for Hilton Hotel to maintain a strong position in the global hospitality industry, considering various market dynamics and competitive pressures. The report concludes by emphasizing the significance of adapting to external changes and leveraging internal strengths for sustained success.

Strategy enterprise and
innovation

Contents
INTRODUCTION...........................................................................................................................3
Internal resource and capability for formulate a competitive-edge in market........................3
Key drivers of external environment that impacts on entrepreneurial activities....................5
Porter’s five forces to evaluate its impact on profitability of organisation............................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
The term strategic, entrepreneurship and innovation is explicated as a process that
includes tools, techniques and methods to understand micro and macro environment of
organisation. Innovation is understand as a process which identify and demonstrate both market
and technological opportunities for improving market share at local as well as international level.
Strategy and entrepreneurship is recognised as a process that organise and arrange multiple
sources of innovation for performing organisation work in dynamic and uncertain environment.
This report is written from perspective of Hotel Hilton and it is a global brand that offers
accommodation, transportation and cleaning services to satisfy needs and wants of customers in
an appropriate manner (Aksoy and et. al., 2019). Along with this hotel is well-known for their
brand and services in different geographical areas. Moreover, this report highlights on internal
resources and capabilities for accomplishing a competitive-edge in market. Different aspects that
relates with external environment and the evaluation of entrepreneurial activities to analyse
external environment will also understand by this report. In the last, Porter’s five force
framework and its impact on entrepreneurial activities and profits of organisation is focused in
the upcoming report.
Internal resource and capability for formulate a competitive-edge in market.
From the year 1980, 7-S framework is an effective toolkit for the successful business
owners and top managers. It supports authorities to perform and manage their work with
exception to accomplish organisation objectives with competitive-edge in market. Further, this
framework is divided into two perspectives that include hard element and soft element. The 7-S
model from the perspective of Hilton Hotel is discussed as below:
HARD Element
 Strategy- Business strategy of Hotel Hilton is classified as a service differentiation and
the major point which is included according to Hilton Hotel includes high quality of
services and it aids management to perform work with more efficiency. In simple terms,
use of technology is the base of Hotel Hilton strategy and it is used to complete all work
with advanced facility that leads management to perform work with better hotel
experience (De Massis, Di Minin and Frattini, 2015). So value based customer

experience provides competitive edge to Hilton hotel for managing their work effectively
in market.
 Structure- The organisational structure of Hilton Hotel is established in hierarchical
because of the huge and massive size of business. From the recent years, organisation
comprises themselves with thirteen different brands and it serves more than 140 million
guests within the year 2015. It leads management to divide organisation division into
three different aspects that are management, ownership and franchise time share (Frezatti
and et. al., 2015). So structure of organisation aids management to complete all work in a
systematic manner. Therefore, structure support organisation for managing work at a
large level by completing task as per goals and objectives of business.
 System- The term Hilton Hotel manage it operations and functions with systematic
approach. It results organisation offer wide range of system such as customer’s
reservation system, employee performance evaluation etc. There are different task
performed which make extent to manage work with adoption of wide-system. Moreover,
Hilton Hotel simplifies the company-wide system to manage and complete organisation
work as per relevant process system to manage all work towards Hilton goals and
objectives. In context of Hilton hotel system simplify relevant issue to manage work with
organisation structure in proper manner.
 Style- It represents the methods and areas which is used to manage all task by analysing
perspective to interact with authorities for performing company activities according to
values. This result it is easy for organisation to manage work by style of Hilton hotel. In
context of company leader style define the method of managing work with performance
of top level.
 Staff- Elements are concerned that is used to complete work for managing task that offer
workforce and employee’s to perform all task and objectives as per areas. The
organisation staff to manage and recruit persons to gain rewards from organisation. This
leads in managing work according to company task. It also relates with performance of
task as per company operations. Moreover, staffs provide better results by arranging
strategy according to organisation and employee’s requirement. It also improve staff
motivation that aids to perform their role with more efficiency.

 Skills- This are the abilities, potential and capabilities which is required by employees
for performing their work in a competitive manner. It also include competencies and
capabilities that reinforce company strategy and structure to manage all task in an
organised manner. Hotel Hilton engages professional individuals for managing work
according that is related with decided strategy and structure to complete work as per
company goals.
 Shared value- The values of organisation is a crucial aspect for organisation and it leads
management to accomplish more success by marking values (Hilton and et. al., 2014).
Hilton Hotel implements similar value among all departments to perform work according
to values that marked employees to accomplish and obtain results and outputs from
business action and initiatives.
Key drivers of external environment that impacts on entrepreneurial activities
Political Factors- The major political variables that could influence Hilton are the risk of
psychological warfare, global relations and the political atmosphere in well-known traveller
objections. The greatest danger here is a psychological oppressor assault or a military clash that
could disturb global air travel or scare individuals from voyaging. So it impact on activities of
Hilton Hotel to perform work with high security that increase in cost of business.
Economic Factors- The major financial components that will influence Hotel Hilton
business are the easing back of monetary development in China and the progressing financial
strife in Europe. Such occasions as the securities exchange breakdown in China and the
compulsion emergency in Europe have significantly decreased people's purchasing power and
their capacity to travel. The greatest impact of this is the tightening of business travel, which
creates difficulties for Hilton Hotel to earn similar profits (Yang, 2014).
Social and Cultural Factors- Social variables make the future look generally excellent for
Hilton Hotel in light of the fact that the quantity of individuals that wanted to travel globally
expanded by 13% somewhere in the range of middle class is increased. All the more critically,
the sum explorers wanted to spend away from home expanded from a normal range to high range
it implies that entrepreneurial activity need to be completed more in cash for performing task as
per social factor (Oppel and et. al., 2014). Example- needs of customer are fulfilled on immediate
basis as they are rich in monetary resources so switching power is easy for customers.

Technology Factors- Innovation could affect the business as online rental administrations,
for example, Airbnb, which lets private people lease rooms or homes straightforwardly to
explorers. Therefore, activities and action of entrepreneurs is focused to use technology for
attracting more number of visitor. One significant potential danger Hilton stances to customary
inn organizations is its hosts can keep away from costs, for example, inn assessments and fire
guidelines, which implies they have a lot of lower working expenses. It empower Hilton hotel to
manage their activities in an accurate manner.
Legal Factors- The major lawful factor that will affect Hotel Hilton activities in future
business is the status of administrations of other competitive organisation. Experts in urban areas
as assorted Europe, New Orleans and Barcelona have fined the tourism sector and its hosts for
disregarding drafting laws, inn guidelines and wellbeing and security guidelines to perform
organisational work as per decided laws. Thus, activities are impacted because it is complex to
follow all legal laws.
Environmental Factors- As of now, the major natural factor that could upset Hotel Hilton
business is fuel costs. Falling oil costs could prompt decreased travel expenses and more interest
for lodgings. Clearly, a likely danger to Hilton business would be any abrupt expansion in fuel
costs, especially for the carriers (Presch and et. al., 2020). A potential long drag ecological effect
on respective hotel could incorporate expanded power costs made by entrepreneurial to check
ozone harming substances by restricting the consuming of factors such as power and waste of
water from entrepreneurial action of Hilton.
Porter’s five forces to evaluate its impact on profitability of organisation
Porter five forces is defined as a strategic management tool and it aids the organisation to
determine the competitive landscape on industry basis. Each force is used by planners to
understand profits of organisation among the industry. All of them are discussed from
perspective of Hilton is discussed as below:
 Threat of new entrants- Economic of scale is complex to achieve in the hospitality
industry. So it is easy for those organisations that produce capacity of completing work
by implementing cost advantage techniques as large production reduce cost for business.
So it makes a weaker point for new organisation to enter into hospitality industry easily.
Moreover, capital requirement to enter into hotel is adequate so it is easy to manage all
work with more efficiency. It results that profitability of organisation is not impacted

because threat of new entrants is at low. Further, standardised products and services is
manufactured at large level so this is easy to manage and control cost of organisation.
 Bargaining power of supplier- The number of supplier within industry under which
Hilton hotel operates is compared as per buyer. It also refers that suppliers is less
controlled over price (Välikangas and Gibbert, 2015). Therefore, bargaining power of
supplier is weak and another reason states Hilton Hotel easily switch towards other
supplier. It makes complexity for supplier to deliver work according to industry
perspective. Moreover, Supplier power is managed according to credible perspective so
this is also easy to manage and perform work as per profit.
 Bargaining power of buyer- Number of supplier among industry in which Hilton hotel
operates is a lot perspective of buyers. This is because buyers are main asset so
organisation selects the way to manage and control value added services. So better
services are not available among all hotels. It results that buyer does not have more
power to bargain. Hilton Hotel charge premium price from customers. Therefore, profits
is retained at same level but to manage them properly management also offer good
quality of products for satisfying individuals needs properly.
 Threat of substitute products- The number of substitutes refers to products and services
that are manufactured among industry in which Hilton Hotel operates. Along with this
the number of substitute products is earned at low profit earning industries. It means that
there is no maximum profit is earned by industry substitute because of low quality
(Wallace, Brown and Hilton, 2014). But the number of substitute products is more and in
bulk so force is at moderate level so to manage profits at same level Hilton management
input more efforts.
 Competition among organisation- Number of competitors among industry under which
Hotel Hilton operates are too low specifically with same standards. It means that
organisation among industry does not make moves as per silence. So it makes rival firms
weaker to earn profits. This is also used for managing work task that capture market
share for engaging hotels with stronger force among industry. Fixed cost is high among
industry so disruptions manage and define rival with weaker force to complete task with
regulations. So profits are impacted because high value service is added to manage top
position in market which is a costly factor for organisation.

CONCLUSION
With the analyses of above report it is concluded by management that strategy,
innovation and entrepreneurship are an important pillar of organisation. 7-S framework or model
plays an important role for organisation and it leads management to manage and complete their
work according to strengths as it lead company to perform work according to competitive-edge
in market. PESTLE model is also analysed and this leads organisation to perform their work as
per external environment conditions. Further, to analyse and understand organisation position
within the market Porter’s five force framework is also included for analysing profits of business
by managing all entrepreneurial activities as per decided goals and objectives.

REFERENCES
Books and Journals
Aksoy, L and et. al., 2019. Social innovation in service: a conceptual framework and research
agenda. Journal of Service Management.
De Massis, A., Di Minin, A. and Frattini, F., 2015. Family-driven innovation: Resolving the
paradox in family firms. California Management Review, 58(1), pp.5-19.
Frezatti, F and et. al., 2015. The structure of artefacts of management control in the innovation
process: does exist association with the strategic profile?. Brazilian Business
Review, 12(1), pp.128-153.
Hilton, R and et. al., 2014. Information, support and training needs of relatives of people with
aphasia: Evidence from the literature. Aphasiology, 28(7), pp.797-822.
Oppel, S and et. al., 2014. Assessing population viability while accounting for demographic and
environmental uncertainty. Ecology, 95(7), pp.1809-1818.
Presch, G and et. al., 2020. 3 The World Health Innovation Summit (WHIS) platform for
sustainable development. Intellectual capital in the digital economy.
Purba, J.T., 2015. Strategic Innovation through Technology Readiness and Acceptance in
Implementing ICT for Corporate Sustainability.
Välikangas, L. and Gibbert, M., 2015. Strategic innovation: The definitive guide to outlier
strategies. FT Press.
Wallace, L.M., Brown, K.E. and Hilton, S., 2014. Planning for, implementing and assessing the
impact of health promotion and behaviour change interventions: a way forward for
health psychologists. Health psychology review, 8(1), pp.8-33.
Yang, X., 2014. Different choice of strategic innovation among companies in China
market. Journal of Science and Technology Policy Management.