Organisational Strategy Report: Analysis of Hilton Hotel's Strategy

This consultancy report provides a comprehensive analysis of Hilton Hotel's organisational strategy, focusing on marketing and strategic management. It begins with an overview of the Hilton brand, its market position, and service offerings. The report delves into critical marketing concepts such as the 7Ps of marketing and communication mix, illustrating their application within Hilton. A significant portion of the report is dedicated to strategic analysis, including the application of PESTLE analysis to understand the external environment and the identification of Hilton's competitive advantages. The report evaluates Hilton's marketing and strategic options within a complex environment, offering insights into how the company can maximize sales and profits. The analysis covers a broad range of topics, from product and pricing strategies to promotion and distribution channels, providing a holistic view of Hilton's strategic approach. The report concludes with a summary of key findings and recommendations for future strategic development.

CONSULTANCY
REPORT ON
ORGANISATIONAL
STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Overview of Hilton Hotel:...........................................................................................................1
Critical knowledge of marketing and strategy along with analysis of marketing theories .........1
Distribute analytical tools of strategic and marketing management in respect to external and
internal environment of firms and evaluate and develop their strategic and marketing options
of complex environment .............................................................................................................5
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Organisational strategy is plan that inform how firm needs to acquire their goals and
mission and allocate resources for several business activities like stock, marketing and
infrastructure (Bayo-Moriones, Galdon-Sanchez and Martinez-de-Morentin, 2020). It is
important for organisation because it can creates a vision and path for entire enterprises and all
people within that firm have a clear goals and objectives are follow their direction of the
organisation. The purpose of organisational strategy to sets a how firm incline to employ its
various resources which include skills and knowledge of its people as well as financial and
substantial assets in respect to archive their goals and objectives. Selected organisation is Hilton
is a worldwide brand of hotels and it was founded by Conrad Hilton as of 31st may, 1919 and it is
flagship brand of American multinational hospitality industry. The aim of this report is to focus
on marketing strategy to improve and maximise their sales and profits. Various topics are
covered in this report which are named as critical knowledge of marketing strategy and
understanding procedures of marketing and strategic analysis, discuss analytical tools for
strategic and marketing management.
MAIN BODY
Overview of Hilton Hotel:
Hilton hotel is one of largest hotel in UK and they target business and relaxation traveller
also in major cities, locations and city centres all over the world (Bryson, 2018). Hilton hotels
and resorts includes 61 properties that they are owned and members who directly booked their
Hilton hotels they have an exclusive discounts and offers such as free Wi-Fi facility , keyless
entry and their capability to use mobile choose their particular rooms as per customer choice.
The number of locations of this hotels are 581.
Critical knowledge of marketing and strategy along with analysis of marketing theories
Marketing is a activity to promote the various products and services with target audiences
of a particular brand and buying or selling of goods and services. It includes advertising,
personal selling, sales promotion and face to face interaction with customers (Cheng and Liu,
2017). There are 7P's of marketing are product, price, place, promotion, people, process and
physical evidence. Marketing strategies is a long term game plan for firm to achieve their goals
and objectives for a sustainable competitive advantage. It contains a firm value proposition, data
1

on target customer demographics and other high level of various elements. Marketing theories is
based on sales of a firm are maximize and it must be able to firm position its products or services
in marketplace. Customer can believe their specific product or services that they ned for a
particular benefit. For this assessment, various marketing theories are involved with context to
Hilton are as mentioned below are:
MARKETING MIX OF HILTON:
Marketing mix is the action to promote their brand value in marketplace and it is essential
part for marketing that helps to understand with what type of product or services they can offer
and how they can create a plan to successful product offering (Dey, Sharma and Pandey, 2019).
With relation to Hilton, it is helpful for firm because they can use to promote their brand product
or services.
Product/Services: It can be a tangible or intangible object and refers to what firm
produces for customers whether it is products or services that meets the customer objectives.
With relation to Hilton, it can provides various hospitality services across world like luxury
hotels chains, focused on services includes meeting, wedding and special services for customers
like foods and beverages, swimming pools and gift shops.
Price: It is the only element that generated revenue of firm in marketing mix and it is
significant that price right not only cover various costs but also generate profit. Product should
always representing a good value for money. In case of Hilton hotel, they are adopting various
pricing strategies in businesses such as economy pricing involves selling products of basic
features and offers a high quality products and service in respect to increase their market share in
marketplace. The price of single room is 5000 to 35000 per night and varies with value added
services like Wi-Fi, parking, food an many more.
Place: This is the place where customer can purchases and their product and transfers of
goods from one place to another. It might be a physical store or online or via websites and these
decision of marketing mix involves in distribution chains and transport facility to provide
product from end users. With context to Hilton, it represent in globally 103 nations with more
than 5100 properties and aim of distribution strategy can be specified of making available
products or services to customers. Hilton hotel choose their surrounding in well chosen manner
which adds more experience to customers.
2

Promotion: Various tools are identified in this activities for firm ans it is a way to
interact with customers for many ways which are named as advertising, public relations, personal
selling and sales promotion (Durie and Andualem, 2018). In case of Hilton hotel, it is well
known brand in hospitality industry in UK. It has focused on exclusive services and provide
customer satisfaction and target customers. They have collaborated with many enterprises and
multinational firms with payment banks, different restaurants food providers and more results for
reaching in Hilton hotels which is among promotional strategies for group.
People: It involved those people who are supply goods and services from one place to
another and various staff members. They interact with customers talking their enquiries , orders
and complaints on social media. Having a right people with right attitude is very important as
much part of firms offering various products or services. With relation to Hilton, target audiences
directly related to enterprises and it depend only on loyal customers and future markets. The
loyalty is maintain for services, qualified staff.
Process: Various systems and processes that deliver their services to customers, each and
every steps are determined and to be done in minimises their cost on part. Understanding their
steps journey from end user for making and online enquiring to request information and making
purchase. In case of Hilton, the flow of services, process for customers in Hilton group is
agreeable and due to reliable process they maintain their supply chain management that transfer
of goods from one place to another.
Physical evidence: This term consist that everything customers see when interacting
with enterprise their interior design how staff member should well dressed and their layout. It
affects quality expectations and perceptions to asses their satisfaction with services. In case of
Hilton, when it comes to talking about hotel it is famous hotel in UK and the group has tied up
with many hotel booking chains and websites to reach their evidence in market. With many
variety of locations and kinds of services Hilton carry a lot of weight for everything in market.
COMMUNICATION MIX:
It is a tool that used to communicate or interact with customers that could be through
advertising, social media, direct marketing and website (Fosić, Trusić and Šebalj, 2017). It is
aimed only for creating awareness about their product or services but also pursue their customer
experiences. It is a specific methods that are used to promote their firm or its targeted customers.
In case of Hilton, it is important for business to communicate various customers to talk about
3

specific product or services. It is used this mix for advertising, selling their product and direct
marketing communication with potential customers.
Advertising: It is most essential element of communication mix which includes all those
messages that a business pays to deliver through a medium to reach their target customers. With
context to Hilton, to increase their sales for product or services and maximise their profits and
plays a vital role at different stages as their increase in awareness of product or service and
generate leads for a sales force.
Personal Selling: It means door to door selling to customers in which one person
convince other person to buying a product or service. It is a method by which salesman uses his
skills to convince that person for all his abilities and skills. Personal selling is effective for buyer
needs, preferences and tastes without feel pressured for customers. With relation to Hilton, most
of firms used personal selling because it is easy to interact customers and buying their product or
services is so easily. They sell their product with full of confidence, attitude and appearance.
Direct marketing: This term consists of direct communication with potential customers
and is a form of advertising that target specific business or firm to generate new enterprises and
increase their profile an firm or products. In case of Hilton, firm used this marketing to interact
directly with customers related to their product or service. Direct marketing campaign will help
to build their relationships with customers and test their request to product or services.
Public relations: It is a important communication procedures with customers that build
mutual relationship between firms and customers. With relation to Hilton, firms use this tool for
communication mix for press releases, conference, various community programs and
announcement related to any product or service campaign.
Strategic analysis of Hilton:
The brand targets their customers who enjoy their living style as per their own choices
and firm charges their premium price for these customers for product or services in which
perceive a relevant qualification (George and Schillebeeckx, 2018) (Huebner, 2018). Their
competitive advantage are for specifically to differentiate their products or services on basis of
quality, prices and higher standard are to be maintained with several aspects of service provision.
Hospitality sector is one of main source of competitive advantages can be sustain through short
term and long term perspectives. Many of competitive advantages of Hilton hotels are as
follows:
4

Strong financial company: In worldwide, Hilton can generated $9.14 billion in financial
year of 2017 and their revenue $841 in fourth quarter and $1264 million for full year. The brand
returned a total $1.1 billion capital to shareholders in a year of 2017.
Renowned brands: Hilton brand and brand recognition are most necessary player in
hospitality sector and successful in making of trust build among its customers. It improves
various technical innovations and improve their customer experience for raise their business. It
enhance employee retention and display their brand presence around 540 hotels in over 789
nations
The mission statement was no that clear much and executable and their objectives are to
be guide for marketing planning (Huebner, 2018). For entire marketing their decision procedures
which they are using in performance of marketing and marketing competency audit. Various
marketing resources are allocated optimally to prime market portion and marketing mix like
product, price place, promotion and many more.
Distribute analytical tools of strategic and marketing management in respect to external and
internal environment of firms and evaluate and develop their strategic and marketing
options of complex environment
PESTLE analysis of Hilton:
it is a tool for framework that used to analyse macro environmental factors which is used
for marketers and monitors various impact on enterprises. Pestle stand for: Political, economic,
social, technological, legal and environmental. In case of Hilton, it is helpful for firm because
they help tom identify external factors that have directly impact firm decisions and possible to
maximise their opportunities and minimise their threats
Political factor: These factors determine and influence the government taxation and
their rules and regulation various laws are identified. It includes tax policy, tariffs, political
stability, government rules and regulation. Within Hilton, it can determine or identify
government certain factors related to economy that can impact on firm and their long term
performance.
Economic factors: These type of factor can affect economic factors in country which are
named as interest rates, exchange rates, inflation or deflation and disposable income
(Mothersbaugh, Hawkin and Kleiser, 2019). These factors can determinants to an economy
performance like how economy can changes their long term effect and how directly affect the
5

economy inflation through various purposes. In context to Hilton, it can affect various trends in
economy and helps to accomplish various goals and objectives. It has commonly affect firms as
behaviour of consumer, interests rates and overall economic conditions of enterprise.
Social factor: It focus on exploratory effect on potential consumer whether it is related to
buying trends, lifestyle of an individual and determine how social factors cab affect consumer for
purchasing. With relation to Hilton, it can affect their attitudes, opinions and beliefs of a person
so it can directly impact on products and hoe much revenue are earned. It is affected on quality
to make an flourishing choices, afford stress and housing part.
Technological factor: it is said to be new technology or innovation are to be developed
and affect firm operations. It includes research and development, incentives of employees and
new technology can developed. In case of Hilton, it is only used to analyse data and meaningful
information about innovation and any new technologies has been developed to take a correct
decisions. More and more focus on firm strategies and customers will prove their effectiveness
of an enterprise.
Legal factor: It includes various factors that can impact government rules and
regulations which are named as taxation, intellectual property, unfair practices, trade restriction
and so on. Within Hilton, it can determine if any illegal circumstances in firms for selling a
illegal product and affect mechanisms through which firm inventory are controlled or
communicate with customers.
Environmental factor: These factors can affect surrounding of environment in economy
whether it is changes in climate conditions,weather or natural resources. It include laws for
disposal, protection laws, safety and security law, climate change, recycling waste or carbon
footprint. In case of Hilton, environmental factor will directly impact on long term aspects of
enterprises, sustainability changes and growth of business can also affected. Even if it is internal
or external factors environment.
SWOT analysis of Hilton
It is a technique that a person or firm used to identify their strength, weakness,
opportunities and threats (Mowat, 2018). They can be applied and analyse to used at
organisational level and determine how closely a enterprise are aligned and how well they
complete a project to a particular time.
6

Strength: These are the things that determine firm strength are particularly well and
determine how they differentiate with competitors.
Weakness: Each and every firm has its own weakness that is to prevent for accomplish
their goals and objectives and they might be an unnecessarily finances, improper to target
customers and do not provide a clear service to their audiences.
Opportunities: It may be a positive beginning for something to happened and they
usually arise depending upon situation of enterprise. It determine various new opportunities for
target customers such as new product can be developed and change their marketing campaign to
interact with customer and it is easy for customer they can purchase their product on these
websites.
Threats: It define negatively affect form business from outside which are named as
shortage of recruits or supply chain. Many obstacles they have faces in firm for selling their
product or market requirements.
Strength
 Performance management: Hilton
group has high performance
management because they have high
brand value and appraisal system which
gives best hospitality operation in
speaking.
 Brand image: A strong brand value
and reputation create a well known
portfolio with various awards.
 Effective cash flow: Hilton has better
cash flow management because they
provide their resources in hand to
expand their new projects (Scherer
2017)
Weakness
 Developed network issues: There is
not much enough number of networks
as compare to other competitors with
different lavish five star hotels working
there.
 Days inventory is high: As compare to
competitors their inventory level is high
to making and increasing more and
more capital in firm so that they can
impact long term growth of Hilton.
Opportunities
 Development of new product: Hilton
developed new products and launching
Threats
 Competitors: Hilton hotels major
competitors are Accor S.A, Hongkong
7

new features for customers and there
are huge chances rather than other
rivalry.
 Marketing campaign: new marketing
campaign is 'stop clicking around' so
that customer now can directly get the
booking is based on this sites and
lowest prices instead of Expedia or
booking. Com
 New customer from online channels:
Finished previous few years fir can
invested large sum of money in online
level for opening their new sales of
Hilton group. And next few years they
can leverage by possibility for
determine their customer better and
serving their needs which is using data
analytics.
shanghai hotels and so on.
 New entrants: if new entrant enter into
a market there is a conflict between
many other hotels because they have
own reasons, issues and new
technologies are developed.
 Increasing salaries: This has led
problems with employee satisfaction
related to salary compensation,
incentives in their work. It has results
into raising their employee salary
which is further adds to cost of new
staff and their training part.
Strategic and Marketing options of Hilton hotels are as under:
Strategic options means creative of action bound effect to extraneous situations that a firm faced.
It can take advantage of various factors for long term like trends, opportunities and threats of a
enterprise and outside global.
Hilton hotel consist of Growth strategy has been shifted from a vertical incorporated
hospitality sector (Van Wynen, 2020). It will see their income to generate and grow as it as a
new hotel in an industry or if any existing hotel can improve tier sales and revenue then there is
higher rates and it is easier to add new hotels as compare to existing hotels. It is a major
responsibility in world franchisor to produce compelling their activities for advertising and
marketing.
Distribution strategy means they can distribute their products or services from various
places or outside world like import and export of goods and services. Hilton hotels expand their
8

franchising system and reach their franchise based on operability which is moderate of new
properties are expand or operated by Hilton. Sometimes they extent their franchise rooms are
developed and strategy of franchising is very popular in hospitality industry and many of players
in this industry does not need any support or overhead expenses of these properties.
Hilton hotels include marketing options such as STP analysis which means firm choose their
individual services and positions to appeal their aim to complete in best achievable manner.
Market Segmentation: It is all about to identify common attribute groups in marketplace
and divide the market into different groups using these segment activity (Venai and Midgley,
2019). With relation to Hilton, it is a way to choose right organization related to trade its
products or services in respect to request to plan and desires of such customers in an convenient
way. It conducted a various segments which are named as demographic, geographic and psycho
graphic segmentation.
Hilton geographic segmentation focus on a constructing various hotels and locations for
target audiences. Demographic segmentation includes a set of variables such as gender, income,
stage, age and lifestyle of an individual.
Targeting: Once their completed their market segmentation, they determine those
segments or parts are the most likely generated desired conversions. It depends on particular
target customers and determine which group can focus on marketing activity. In case of Hilton
hotel, they can identify each and every customer group target those market where customer are
high and most interested in product or services which has impact high profitability and a low cost
with size, reachability to customers and profitability.
Positioning: This is the final stage of STP analysis because they need to consider
various opportunities that will impact to needs and want in market that their product can be
fulfilled. In this, they can use those vision where position of their product and develop a unique
selling proposition (Zéman and Bogdan, 2019). With reference to Hilton hotel, they can
understand what customer preferences and taste, their acknowledge, defend USP and most
important thing is they can set their product according to target customer preference. There are
lot of firms can develop their product and set to its position that is similar to them.
9