Strategic Management Analysis of Hilton Hotels: A Comprehensive Report

This report provides a comprehensive strategic management analysis of the Hilton Hotel. It begins with an abstract and introduction to the importance of strategic planning in the competitive hospitality industry. The main body delves into Hilton's mission, objectives, and stakeholder analysis, using...Read More

STRATEGIC
HOSPITALITY
MANAGEMENT

ABSTRACT
This report is undertaken to analyse the management of the Hilton Hotel. In order to build
a strategy and bring strategic management into the workplace, this report aims to analyse the
stakeholders in terms of their power and interest so that action can be taken accordingly. Further
for analysing the internal and external environment, PESTEL and SWOT analysis shall be done
so that its impact is identified and strategies can be made accordingly. The stakeholder analysis
will help in communicating with them in order to work according to their will and the PESTEL
and SWOT will help in adopting the changing needs of the environment so that the hotel can
survive in the competitive world.

Table of Contents
ABSTRACT.....................................................................................................................................2
INTRODUCTION ..........................................................................................................................4
MAIN BODY...................................................................................................................................4
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Strategic management is nowadays very important due to increase in competitiveness in
the market. Planning is very vital for the survival of any company due to dynamic environment
around the globe. With changes emerging from different areas, there is a need of constant
strategy to cope up with the situations. The organisations nowadays thinks one step ahead to
fight the competition so that their stability is not in danger. The competition in the hospitality
industry has been increased due to exposure given to tourism. There is head to head competition
in certain segments of market in hotels (Konovalova and et. al., 2018). There are two aspects
which results in rise of competition in hospitality industry, that is, technology adaptation and
continuous change in customers profile. The respectable organisation chosen for this report is
Hilton Hotels and Resorts, which is global brand. It was founded by Conrad Hilton in 1919.
There are now 584 Hilton Hotels across the world. This report will cover the objectives and
mission of Hilton Hotels together with stakeholder analysis and External environment analysis.
Further it will deal in SWOT analysis of the Hilton Hotel to know its internal and external
capability.
MAIN BODY
Identifies the organisation’s mission and/or objectives
Hilton Hotel is a private multinational company and is one of the largest and fastest
growing hotel brand across the globe. It is world's most famous hospitality brand which it has
achieved on the basis of its service quality and luxury. The mission statement of the company
focuses mainly in providing the best customer service and high positive impact on hospitality
and also expresses the vision of the company. The statement is very generic as it includes all
guests, team members and owners. It guides the managers in taking important decisions as it
includes opportunities for team workers, values to owners and providing positive impact on the
communities.
The main objectives of the Hilton Hotel includes the following which helps the hotel to survive
in the competitive market and lead to success and growth. The main purpose of Hilton hotel is to
earn profit by providing services like room, meals, etc. the company also aims to expand the

business by maximising the customers and sale (Sheehan and et. al., 2018). The objectives are
as follows--
 To encourage workforce to attain positive business outcomes.
 To develop the system of employee motivation within the organisation.
 To expand the business in different locations of the world.
 To develop commercial infrastructure by reducing the carbon footprints.
 To work towards development of renewable energy as a source of power supply for its
operation.
Stakeholder analysis with power/interest grid
The stakeholders are the integral part of the organisation. They are affected by the
functioning of the business so a better communication with them benefits the company as they
are able to understand the functions of the business. A stakeholder analysis is a process in which
the key personnel of the company who are involved in a project are grouped according to their
power and interest. This analysis helps in identifying the important stakeholders and try to
resolve their issues as early as possible. The power/interest grid helps in analysing the
stakeholders of Hilton hotel. There are two types of stakeholders in Hilton hotel, that is, internal
which includes owners, shareholders and employees whereas external stakeholders include
customers, government, suppliers, community, trade associations, creditors and media.
The power/interest grid allows to allocate the stakeholders into a position which helps in
showing what actions need to be taken against them. There are 4 positions under this grid-
Stakeholder Position in Power/Interest
Grid
Significance to Organisation
Owners High power and high interest The owners are the key
personnel and are highly
engaged in the business. They
make the most of the efforts to
successfully run the company.
They are to be managed
closely.
Employees Low power high interest They have low power in the

organisation but are highly
interested in the working of the
business because they only
work hard to achieve
organisational goals. They
have to be regularly informed
about everything.
Shareholders High power high interest They are the main investors of
the company and have high
interest in the functions of
business. They have high
influence on the company and
keeps a check on the working
of the hotel (D’Annunzio-
Green, 2018).
Suppliers Low power low interest They are least interested in the
working of the company. They
also have no power to interfere
in the industry.
Customers High power low interest They are main asset of the
Hilton hotel. They have high
power in the business because
their influence is much high.
The success of the industry
depends upon their customer
satisfaction.
Government Low power high interest The government has less
power in the business but are
interested in the functioning of
industry to check the unfair

practices and expect regular
tax from the hotel.
Media Low power low interest They are the external part of
the business. They have low
power and interest in the
business but regularly monitor
the functions of the company.
Community Low power low interest They have no interest an
power in the company. They
are interested in the nature of
the business.
Trade association Low power high interest They have no power but have
high interest as they keep a
check on companies to protect
the rights of the employees
from exploitation.
Pestle analysis of Hilton Hotel
The pestle analysis shows the impact of external environment on the company. There are
many macro environment factors that affects the functioning of the hospitality industry. The
macro factors are - Political- This factor influence the hotel industry as the government is authorised to
decide on the tourism. The number of business travellers and tourists who visit the
country are both governed directly and indirectly by government. So Hilton hotel requires
political stability for its successful running. Economic- The global and economic crisis affects the running of hotel industry as the
financial crisis results in hotel sales down which directly affects the business. The
inflation lowers the purchasing power of the customers which affects the business of
Hilton hotels. The fluctuation in foreign exchange rate also affects the tourism industry
which impacts hotel the most.

 Social- The society's culture helps in understanding the customer of a particular market,
so the attitude and beliefs of population plays an important role in understanding the
customers (Konovalova and et. al., 2018). The education, employment, entrepreneurial
spirit all affects the working of the hotel industry because Hilton hotel believes in provide
luxury service which can only be afforded by educated and employed people. Technological- It plays a vital role in the performance of Hilton hotel as it focuses on use
of renewable energy as a source of power supply. This technology helps the Hilton hotel
in protecting the environment. The use of technology like online bookings for rooms or
dining table helps the customers in availing the services effectively. So a technological
breakdown or internet can affect the working of the industry (Koseoglu, Law, and Dogan,
2018). Legal- Any changes in the jurisdiction or laws of UK may affect the Hilton hotel in direct
or indirect ways. Any restriction in obtaining visa of UK affects the travel and tourism
industry which indirectly affects the Hilton hotel because their maximum customers are
tourist.
 Environmental- The hotel industry affects the environment when there is tourism
attraction in any country. The Hilton hotel releases some amount of carbon emissions
which results in global warning. So Hilton hotels are getting strict regulations in
operating in UK due to disturbance to environment.
SWOT analysis
SWOT analysis stands for internal capabilities and external environment. It includes
strength, weakness, opportunities and threats of the business in their planning. The SWOT
analysis of Hilton hotel provides
STRENGTH
 The wide scope of expansion due to
business operation in different
countries.
 Customer loyalty schemes which
attract more customers.
 Technological integration which results
in high customer satisfaction.
WEAKNESS
 Revenue generation from Asia Pacific
countries is limited.
 High debts.

OPPORTUNITY
 More expansion in international
market.
 Focus on research and development for
more customer satisfaction
THREAT
 Political instability.
 regular changes in macro environment.
 Increase in competition
Critical evaluation of SWOT analysis
The strength and weakness of the Hilton hotel are the internal capabilities of the industry
to fight the competitiveness of the market and allows the company to focus on providing better
services to its customers (Poddubnaya, 2019). As the mission statement of the company also
provides for customer satisfaction. The opportunities and threats are the external factors that
affect the business. The critical evaluation of SWOT analysis of Hilton hotel is as follows-
Strengths
 The main strength of Hilton Hotel is its large scope of expansion. The company is
operating at global level which benefits the hotel from different economy and increases
the chances of further growth.
 The Hilton hotel focuses in attracting the customers by various schemes like discount
coupons, free WIFI, flexible check in and out timings, etc. which helps in retaining the
customers for long run. The use of new technology helps the Hilton hotel to provide customer efficient services
like digital keys, service of selecting the room etc. which helps in attracting the customers
and also helps in fighting competition.
Weakness
 The Hilton hotel have major revenue generation from USA and UK which makes the
hotel over dependent on the these market and not other markets like Asia Pacific. This
may result in shutdown of hotel in these parts of the countries. The company has a high level of debt which makes it the weakness for hotel industry.
This high debt can become a major threat to the hotel in near future.
Opportunities

 The main opportunity for Hilton hotel may be the expansion to new global markets. The
brand image of the company will help in growth of the business in other countries too. The Hilton hotel should focus more on research and development to provide better
services to its customers. Due to increase in the competition, the hotel must continuously
engage itself in researching further ways of attracting customers. Better customer
satisfaction results in customer retention. This will help in fulfilling the vision of the
company, that is, attracting guests.
Threats
 The major threat to the Hilton hotel is political instability. The strictness in laws by the
government in controlling the tourism directly or indirectly affects the running of the
hotel industry. So political stability is necessary for smooth functioning of business.
 Changes in macro environment factors like economic, legal, social etc. affects the
business because their influence on the company affects the hotel industry. Any
fluctuation in foreign exchange, inflation, interest rate may result in financial crisis to the
hotel.
 With rise in the competition level, Hilton is facing the major threat from its competitors.
Are all hotels provide similar service to the customers so it becomes difficult for Hilton
hotel to retain its customers (Okumus and et. al., 2019).
Critical evaluation-
In order to overcome the threats, the company must work on grabbing the opportunities
which are prevailing in the market so that the threat of competition and political instability does
not harm the company. The opportunities like global expansion will help in battling the
competition. In order to overcome the weaknesses, the company utilise its strength of new
technology and loyal customers so that its weakness of large debts can be solved.

CONCLUSION
It is concluded from the above report that an effective strategy is important for the
survival of any company. The hospitality industry has a major competition in the market due to
which it needs an effective planning for the successful running of the business. Due to flexibility
provided to tourism sector, the hotel industry started to grow. Hilton hotel is one of the largest
hotel in the world. Its mission states the clear objectives of company which focuses on its guest,
owners and employees. The hotel has many stakeholders which have their influence in the
working for the business so their analysis help the industries to work effectively by
communicating with them as required according to their power and interest in the company.
Further it is concluded that Hilton hotel is affected by many external factors which have a great
influence on them due to its changing environment. At last it is provided that the internal
capabilities of the hotel differentiate it from other competitors which allows the hotel in further
growth and expansion but the external factors sometimes becomes hurdle for the company to
capture the market from competitors.

REFERENCES
Books and Journals
Konovalova and et. al., 2018. Forming approaches to strategic management and development of
tourism and hospitality industry in the regions. Journal of Environmental Management
& Tourism. 9(2 (26)). pp.241-247.
Sheehan and et. al., 2018. Strategic talent management: A macro and micro analysis of current
issues in hospitality and tourism. Worldwide Hospitality and Tourism Themes. 10(1).
pp.28-41.
Köseoglu and et. al., 2019. Evolution of strategic management research lines in hospitality and
tourism. Journal of Hospitality Marketing & Management. 28(6). pp.690-710.\
Koseoglu, M.A., Law, R. and Dogan, I.C., 2018. Exploring the social structure of strategic
management research with a hospitality industry focus. International Journal of
Contemporary Hospitality Management.
Okumus and et. al., 2019. Strategic management research in hospitality and tourism: a
perspective article. Tourism Review.
Poddubnaya, N.V., 2019. Corporate culture as an effective instrument of strategic development
of tourism and hospitality enterprises. In Актуальные проблемы развития сервиса и
туризма (pp. 133-135).
D’Annunzio-Green, N., 2018. Conclusion: is talent management a strategic priority in the
hospitality sector? Worldwide Hospitality and Tourism Themes.
Konovalova and et. al., 2018. Methodological approaches to development strategies for the
tourism and hospitality industry enterprises. International Journal of Engineering and
Technology (UAE). 7(4.38) pp.277-280.