Business Activities of Hilton Hotel and McDonald's: Industry Report

This report provides a comprehensive analysis of the contemporary hospitality industry, with a specific focus on the business activities of Hilton Hotel and McDonald's. It begins by defining the hospitality industry, its scope, and its core purpose of serving guests and creating lasting experiences. The report then delves into the current scope, structure, and size of the industry, followed by an examination of anticipated skill requirements and both internal and external factors influencing its operation. A significant portion of the report is dedicated to a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis for both Hilton and McDonald's, providing insights into their competitive positioning. Furthermore, the report explores the impact of various factors, including political, economic, social, technological, legal, and environmental considerations. The report concludes by identifying current and potential trends shaping the hospitality industry, such as digitalized guest experiences, booming global tourism, and technological advancements, offering a forward-looking perspective on the sector's development and evolution.

CONTEMPORARY
HOSPITALITY INDUSTRY

INTRODUCTION
 Hospitality industry defined as broader category within the service sector that inclusive of
lodging, event planning, transportation, theme park and cruise line etc. Henceforth, the main
purpose of hospitality industry is to serve guest effectively and to deliver them lasting
experience.
 It is the sector that mainly focuses on ideas of luxury, experience, enjoyment for the necessities
and essentials. Therefore, it is concerned with the services relates with customer satisfaction and
leisure.
 The present report is based on business activities of Hotel Hilton, UK. This is global brand that
provides full service of hotel and resort and brand of American multinational hospitality
company.
 Furthermore, report will cover the activities as current scope, structure and size of hospitality
industry, anticipated skills requirements, Internal and external factor that affect the working of
hospitality industry. Lastly, potential and current trends will be defined that are affecting the
development of hospitality industry.

Description on factor that impacts on development of hospitality industry.
 Political factor-
 Hilton - This component is mainly concerned with changes in laws, polices and actual cost that affects the working of the industry. Henceforth,
changes in labour law and taxes have directly impact over the working practices of entity. Additionally, it may rise to price of commodities.
 McDonald' -As the company is operation across the boundaries in more than 100 countries so the government of the different countries have
different political exposure. The company has to follow the rules and regulation related to health and hygiene regarding the food product. the
government of various countries are more pressuring the companies like McD because of the increasing consumption of the fast food as these
foods are considered unhealthy. These foods are causes of obesity, high cholesterol and cardiovascular difficulties. Because of this factor, the
companies will be facing loss in their profits.
 Economic-
 Hilton - It is the factor that is concerned with taxation rate which can affect the prices within the entity. Thus, components as inflation,
economic growth, interest rate and exchange rates affect the working of the enterprise at the huge aspect. Thus, changes in economic policies
impacts the overall working of the entity.
 McDonald - Operating worldwide, company want to take various decision regarding the operation of the company. McD has to decide from
where they have to import the raw material as the tax rates are different in different countries. The company has to look after the various
economic factor including the tariff on import material, foreign corporation tax, the unemployment rate and the varies interest rate factors.

 Social
 It is the factor that is concerned with changes in perception and trends within the
market. Henceforth, it is crucial for entity to analyse the changes in test and
preference of customer within the market. By brining up technical advancement, the
entity can undergo with having innovation that can help to bring out better and
attractive services. Thus, hotel Hilton can able to perform their role effectively, if the
changes can be done in better and efficient mode.
 This factor evolve around the trend in the country. The company sales performance
evolves around the lifestyle of the consumer. Nowadays people are more moving
towards the sophisticated fare as hamburgers and French fries are not among the
favourite list. So the company has to move according to change in the trend.
 Technological
 It is the factor that concerned with change in working style of the enterprise. In
highly competitive world, it is crucial to come up with the innovation that can attract
the customers and enhance the competitive advantage. With help of updating the
technological performance, the entity can carry out the progressive results.
 technology plays an important role in increasing the productivity and management in
McDonald's with minimum wastage of resources. It helps in the scheduling,
forecasting and easy payment for customers. Technology improves the quality of
work in the company by reducing cost and technology advancement.

CONTI….
 Legal- It is the factor that is concerned with legislation requirements that may bring
systematic performance within the enterprise. Different legislative policies and safety
compliances aids to bring out the systematic working practices. To maintain the legal
environment is crucial for the growth of hospitality industry. Therefore, legal and secure
services aids to conduct the working practices systematically.
 McDonald's has to follow the rules and regulation of different countries such as there
employment law, labour law corporate law and various tax requirement. If the country
doesn't follow all the laws of the respective country, the survival turned out to be
difficult in the economy.
 Environmental factors- Today, consumers are more aware in protecting there
environment. The company has to look after the packaging policy of products.
McDonald's has change the polystyrene packaging of product in favour of paper-based
packaging as to save the interest of the consumer.

Undertaking SWOT analysis for hospitality business.
 Strength- Hilton
 The one of the core advantage of hospitality industry is that it cannot get changed in sector. Thus, this is industry that can
attract the people towards the working practices. It is the industry that has wide impact over the growth of economic
development. Hospitality industry has its international identity in the global market. Therefore, hospitality industry is
labour intensive and also close to the customers. It is the entity that handles the changes relatively easy.
 Strength- McDonald's
 Successful coming out with the new items like salads, Angus burgers, smoothies and the variety of coffees in expanding
the menu choices. The company is operating all over the world, which means company is not only dependent on one
currency or economy. McDonald's has been identified as most recognizable brand. The company is operating as world
largest food chain as it provides the culture diversity in their food products.

 Weakness- Hilton
 In this sector, the one of the core dependency on tourist is to be
highly sensitive to the political events and this is having seasonal
dependency. This is perceived to be low status sector. Thus, the one
of the core disadvantage to this sector is that it has low status of
employment sector. Therefore, low barrier sector and failures
pressing profit margins. This is considered as one of the low sector
employment that affects the working of the enterprise.
 Weakness- McDonald's
 it is very difficult foe the companies to find out the prime location
for the development of golden arches as the countries are saturated
with restaurant and cultural challenges. The jobs in McDonald's are
mainly the low skill and low pay. So the employee don't take there
job seriously which leads to the poor performance. this increases
training cost and high turnover.

CONTI….
 Opportunities- Technology and social media plays the crucial role and this also aids to enhance the working of
the enterprise. Thus, increasing number of the tourist aids to enhance the economic development within the
country.
 McDonald's has the better opportunity for the expansion of the business in China and the major part of Asia. The
company has the opportunity to upgrade there menu board with its premium product in some of there prime
location.

 Threats- It is one of the great threat in the industry and this may lead to affect the
quality of services within the enterprise. Thus, present market is competitive as
seasonal changes affects the working of the entity in the crucial aspect. Henceforth, it
can be stated that periodic investment in technology can reduce the profit margin of
the enterprise. It is one of the tool that can affect the working practices of the entity
at the huge context.
 McDonald's the government is many countries are targeting the fast food industry as
they are considered as harmful for the citizens. Competition from the competitors in
rolling out new product such as the starbucks coffee or Jamba smoothies.

Analysis for SWOT
It is one of the systematic approach that
also helps in providing younger
entrepreneur an opportunity to start up
their Hilton at the small scale. Hence, it
plays core role in order to perform the
high operation activities at the national
and international level.

Analysis for SWOT
This is tool that aids to analyse the various
opportunities and threats that affect the
working of the enterprise. Therefore, SWOT
will aid to strengthen the policy formulation
and also prevent the McDonald's from the
consequences.

Supply demand
 Hereby, hospitality industry defined as broader category that includes the
food and drink, event planning, theme parks etc. The present report us
based on the business activities of Hotel, Hilton UK.
 business activities as current scope that aids to promote business activities
systematically, report has structure and size of hospitality industry,
included skills requirements to staff that could help to undertake the
working of hospitality effectively.
 Lastly, potential trends towards the hospitality industry has been defined to
enhance the growth of the enterprise.