Hilton Hotels: Strategic Management Report - Stakeholder, SWOT, PESTLE

This report provides a comprehensive strategic analysis of Hilton Hotels & Resorts, examining its mission and objectives. The report delves into stakeholder analysis, identifying key groups and their significance, including owners, management, employees, customers, suppliers, government, local communities, investors, affiliates, and travel agents. It then utilizes a PESTLE analysis to assess the political, economic, social, technological, environmental, and legal factors impacting the company. A SWOT analysis is also conducted, outlining Hilton's strengths, weaknesses, opportunities, and threats. The report concludes with recommendations for Hilton to enhance its strategic approach, emphasizing stakeholder prioritization and market analysis to improve its competitive position and achieve its goals in the hospitality industry. The analysis highlights areas for improvement, such as network expansion and talent acquisition, to mitigate weaknesses and threats.

STRATEGIC HOSPITALITY
MANAGEMENT
Word Count 1923
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ABSTRACT
This report gives an introduction to mission and objectives of Hilton and the strategies that are
used by them in order to achieve them. Different form of analysis such as stakeholder, SWOT
and Pestle has been highlighted in order to make necessary changes in the services of hospitality
as per the needs and wants of customers. The main purpose of organization is to make and adapt
changes as per recent trends so that they can maintain consistency in achieving success.
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Contents
INTRODUCTION................................................................................................................................2
Mission.............................................................................................................................................3
Stakeholders - a power/interest matrix which identifies the organization’s ten key stakeholders/
.........................................................................................................................................................3
Stakeholder groups with an explanation of their significance to the organization including........3
Pestle Analysis.................................................................................................................................5
SWOT Analysis...........................................................................................................................7
CONCLUSION.................................................................................................................................10
REFERENCES............................................................................................................................10
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INTRODUCTION
Strategic management is the ongoing planning, monitoring, analysis and assessment of all
necessities an organization needs to meet its goals and objectives (Iyer and Jarvis, 2019).
Changes in business environments will require organizations to constantly assess their strategies
for success. Hilton Hotels & Resorts is a global brand of full-service hotels and resorts and the
flagship brand of American multinational hospitality company Hilton. The original company was
founded by Conrad Hilton. This report highlights issues such as mission of the company, its
stakeholders expectations and both SWOT and pestle analysis. This report will provide
explanation of perception of stakeholders of business.
Mission
To be the most hospitable company in the world – by creating heartfelt experiences for Guests,
meaningful opportunities for Team Members, high value for Owners and a positive impact in our
Communities. It aims to be the best in the segment of hospitality in the world as they are creating
experiences that must be felt by guests and their experiences for them can be improved. They
want to provide opportunities for their employees and members in team which are meaningful
and have some value for owners which help them to leave a mark which is remembered by the
communities they are serving to (Noone, Enz and Glassmire, 2017).
Purpose of this mission is to make sure they are accomplishing two of their most
important things and that is to serve best in the field of hospitality and leave positivity in their
surroundings. The way of achieving it turns out to be with by offering high level of customer
service. They believe that with this they can set the meaning for their brand. With this statement
company is clear about their culture as well as rest of areas such as their competitive position,
CSR, products and services.
Stakeholders - a power/interest matrix which identifies
the organization’s ten key stakeholders/
Stakeholder groups with an explanation of their
significance to the organization including
Stakeholders Their significance Needs and expectations
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Owners These are the people who own and
manage the operations of Hilton.
They get a chance to operate Hilton
by complying with methods such as
franchise, referral group and
partners (Poddubnaya, 2019).
Their need is to get as much
return as possible on the
investment they have made and
dividend if possible.
Management These are the departments such as
HR, IT that helps in operating the
work of their areas with efficiency.
Needs and expectations of them
are to get proper allocation of
funds and budget so that their
work is not disrupted.
Employees They follow all the guidelines and
rules provided to them so that task
can be completed their way.
To get decent packages and
better work environment.
Customers They are their key stakeholders for
whom Hilton is working on
optimum level as they help them
generate their revenue.
To get the best services possible
as per the money they have spent
on it.
Suppliers All the raw materials required to
stock up and maintain the inventory
of Hilton are done with dealing of
goods by suppliers.
To get orders and its payment on
time with better relationship with
each other.
Government All the decisions related with taxes
and political control is taken by
them.
They expect that Hilton must
follow the guidelines provided
by them and file for their tax on
time.
Local community They want extra efforts from
company which can be in any
manner so that they can spread
positivity for them.
To participate in activities such
as CSR (Magnini, Crotts and
Calvert, 2020).
Investors These are the individuals from
whom companies such as Hilton
They want assured return on the
money they have invested.
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take money in order to get funds so
that they can expand their business.
Affiliates These are the sources through
which Hilton market and promote
their brand.
To get their fees on time.
Travel Agents These are the people who market
and promote the brand of company
as they influence consumers to stay
at this place.
Travel agents demand a specific
percentage on the referrals and
business they provide to hotels.
Stakeholder Power Interest Matrix
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Pestle Analysis
PESTEL Factors affecting stakeholders Stakeholders
Political Government takes the decisions
for businesses which they have to
follow as at the time of Covid-19
they have restricted travel which
has affected their business. Due
to brexit the rate of taxes has been
increased and Hilton has lost
many benefits such as supply of
This has affected government
as well as owners of business
because the flow of money has
reduced which is making it
difficult for business and that is
why no taxes are being charged
to them.
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goods at less rates because now
they have to take on different
routes.
Economic These factors are concerned with
financial aspects such as rate of
growth, GDP etc (Sheehan, Grant
and Garavan, 2018). Due to
covid-19 management is facing
many difficulties as the demand
for their services has decreased
which is incurring losses as
people are restricted to travel at
this time.
Although they are not able to
get funds from investors
because they are not sure at
this period of time they will get
substantial return, ever the
business of travel agents has
been affected which is why
they have not been able to
generate any customers.
Social These factors are concerned with
beliefs, values and religion
followed by people.
Customers and local
communities are satisfied by
the decision of Hilton to
participate in the aspect of
CSR.
Technological More options to book, better
productivity of employees, able to
keep up with suppliers (Le and
Phi, 2021).
Due to this suppliers,
employees and customers are
satisfied because their needs
and demands are getting
satisfied and complexity of
work is getting reduced for
employees.
Environmental To participate in activities such as
CSR and contribute more to
preserve the aspects of
environment.
If they don’t participate in this
aspect, then they won’t get the
support of their community.
Legal It is necessary that they follow all
the legislations and guidelines
Until they follow all the legal
measures government will take
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provided to them. no legal action against them.
SWOT Analysis
Strength-
Brand acknowledgement-
As they work in many countries
awareness of their brand is very high in a
positive manner (Horner, 2017).
Interesting administrations and items
quality-
Hilton is known for the performance
of their management as because of them they
are able to work with ideas that are innovative
and keep the culture creative.
Development in Asian Continent-
They have been successful in
establishing their business in Asian markets
which is helping them to serve more
customers and generate more profit.
Solid provider’s relationship
Relationship of customers is started up
by the group where they assess their
preferences of all their customers and analyse
the rate of their delivery as per their
preferences. This way they maintain
Weakness-
Not developed network-
Their network turns out to be poor
because they do not have sufficient inns in
Europe and N. America which affect their
rating system.
Higher dependency of proprietors-
Companies do not have networks that
are good in lodging that is why they have to
depend on other inn organizations.
Issues in China-
They face many issues in China one
that affects them most is to decide workers
who are good enough for their business. This
is because they work only on the basis of
operational rules.
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relationship with customers (Martins 2018).
Opportunities-
Explore other markets-
Hilton has set up their market in
Australia and being turned up in Australia is a
great advantage for them as it is considered as
one of the greatest economies which is an
opportunity for Hilton to increase their
tourism there (Garrido-Moreno, García-
Morales and Martín-Rojas, 2021).
Relationship Management-
Prepare offices of program to plan
representatives in a more adequate manner as
they believe that with this approach they can
maintain relationship with others and make
sure that needs of customers are being
satisfied. They will even set up their
innovative measures as per the needs of the
company.
Games events-
Hilton tries to sponsor or partner up
with these type of events happening across the
world. This is done so that they can target
their audience and spread awareness for their
services.
Threats-
Exceptional Rivalry-
There is high level of competition in
this segment of business which increases the
challenge for Hilton as it affects their chances
of grasping more revenue and serves more
customers.
New Entrants-
Many of the hotels are making a
decision to change their processes and join
hands with global brands so that they can see
a vast network of business (Büyüközkan,
Feyzioğlu and Havle, 2019).
Increasing Salaries-
In order to satisfy employees Hilton
has to work with this measure and they have
to increase the salaries of employees as many
of the economies demand high wages in order
to maintain simple lifestyle which is
interlinked with their satisfaction. This has
increased the cost of training and hiring them
too.
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Procurement of neighbourhood inns-
Hilton has the option to acquire chains
of hotels that are local so that they can reduce
the competition and increase the base of
customers.
Evaluation from SWOT analysis
It is clear that Hilton is a renowned name across the globe because of the services they
offer to their customers and the way their management work with new and innovative measures
has helped them to maintain their relationship with others. This is helping them to work as per
the mission set by them which is showing that they are making progress. They have a lot more
areas in which they can excel and improve such as find out the viability of other markets and
make an entrance there, buying out the local businesses etc. this way they are making sure only
their name is spread across the audience.
In order to deal with their weakness and threats they need to make sure that they find out
ways to improve their network as that way they will be able to reduce the dependency on others
and work as sole proprietor in every department which will give them the full control. In order to
reduce threats they need to get talented and potential candidates who can help them to reduce
their competition (Adeyinka-Ojo, 2018).
Recommendations
In order to achieve success it is necessary that Hilton prioritize the needs of their
stakeholders first and divides them on the basis of that so that they can achieve optimum level of
satisfaction from them. It will help them to make sure that they are giving focus to everyone of
their needs and working as per their expectations. From the Pestle analysis it can be easily
concluded that there are different factors which affects the needs of stakeholders and in order to
make sure that they serve up in the right area it is important that they work up as per their
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guidelines so that they can have the support of stakeholders. It is important to conduct SWOT
analysis of market so that they can have the insights and whereabouts of the market, this way
company can work as per the analysis and improvements that they need to make in order to
improve their position as per the competition of market. It is necessary that they make sure to
analyze each area especially their weakness and threats so that they can remove them and beat
out the forces of market as well as their competition which is affecting their growth.
CONCLUSION
From the above studies it has been concluded that Hilton needs to make improvement in
such areas as they need to increase the salaries of some employees so that they are satisfied with
the work assigned to them and company can retain them for a long period of time. In the long
term this will save them a lot of money. It is important that they invest in areas such as training,
research and development so that they can achieve their goals and objectives and keep on
working with new approach so that needs of guests are satisfied. It is important to maintain
relationship with them and keep them updated about their new deals and offers so that they can
attract them into buying out their services.
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REFERENCES
Books and Journal
Adeyinka-Ojo, S., (2018). A strategic framework for analysing employability skills deficits in
rural hospitality and tourism destinations. Tourism Management Perspectives, 27, pp.47-
54.
Büyüközkan, G., Feyzioğlu, O. and Havle, C.A., (2019). Intuitionistic fuzzy AHP based strategic
analysis of service quality in digital hospitality industry. IFAC-PapersOnLine, 52(13),
pp.1687-1692.
Garrido-Moreno, A., García-Morales, V.J. and Martín-Rojas, R., (2021). Going beyond the
curve: Strategic measures to recover hotel activity in times of COVID-19. International
Journal of Hospitality Management, p.102928.
Horner, S. ed., (2017). Talent management in hospitality and tourism. Oxford: Goodfellow
Publishers Limited.
Le, D. and Phi, G., (2021). Strategic responses of the hotel sector to COVID-19: Toward a
refined pandemic crisis management framework. International Journal of Hospitality
Management, 94, p.102808.
Magnini, V.P., Crotts, J.C. and Calvert, E., (2020). The increased importance of competitor
benchmarking as a strategic management tool during COVID-19 recovery. International
Hospitality Review.
Martins, M., (2018). Tourism planning and tourismphobia: An analysis of the strategic tourism
plan of Barcelona 2010–2015. Journal of Tourism, Heritage & Services Marketing
(JTHSM), 4(1), pp.3-7.
Noone, B.M., Enz, C.A. and Glassmire, J., (2017). Total hotel revenue management: A strategic
profit perspective.
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).
Sheehan, M., Grant, K. and Garavan, T., (2018). Strategic talent management. Worldwide
Hospitality and Tourism Themes.
Iyer, G.R. and Jarvis, L., 2019. CSR adoption in the multinational hospitality context: A review
of representative research and avenues for future research. International Journal of Contemporary
Hospitality Management.
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