Strategic Planning for Hotel Hilton: Growth and Expansion (LT6018GN)

This report provides a detailed analysis of strategic planning within the hospitality industry, focusing on Hotel Hilton as a case study. It covers the strategic management process, including goal setting, strategic formulation, implementation, and monitoring, and applies Porter's five forces to evaluate Hilton's business strategy. Furthermore, the report uses PESTLE and SWOT analyses to identify competitive advantages and explores strategic options for Hilton, such as franchising, management contracts, joint ventures, and mergers and acquisitions. The study concludes by emphasizing the importance of strategic management in achieving growth and maintaining a competitive edge within the hospitality sector. Desklib offers a wide range of similar solved assignments and resources for students.

Strategic planning for the hospitality industry

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
LO 1.................................................................................................................................................3
1.Strategic Management Process ................................................................................................3
2. Porter's five force for the evaluation of the business strategy ................................................4
LO 2.................................................................................................................................................5
P3 Pestle and Swot analysis to formulate the competitive advantage:.......................................5
LO3..................................................................................................................................................7
P4 Strategic Options for Hotel Hilton..........................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Strategic Management refer to the development of the strategy for the development of the
increased performance in the organization, which can help in the growth and expansion of the
Industry. There are many sources which can help in strategic development which can eventually
increase the performance of the firm.
Hilton Hotel is a multinational hospitality industry which manages and franchise a broad
portfolio of group of hotels which are established worldwide. It was founded by Conrad Hilton in
year 1919. its headquarter is in Tyson Corner,Virginia, US. It has 5757 location around the world
with the net revenue generation of $8.90 billion.
This study will include the various strategy management, evaluation of business strategy,
ways of competitive advantage and strategies of expansion.
MAIN BODY
LO 1
1.Strategic Management Process
Strategic Management Process carried out on the Hotel Hilton consists of the various strategic
management techniques which is implied on Hotel Hilton for the strategic improve which can be
used to evaluate the change in the business strategies which can help in the improvement of the
Hilton. Strategic management process consists of five steps of strategical management which are
goal setting, strategic formulation, strategic implementation and strategy Monitoring.
Goal Setting-
For the strategic development of the Hotel Hilton, aims are identified which can evaluate the
goal setting which can increase the growth and development of the firm. This process start with
the definition of setting a short and a lone term objective which can help in the development of
the firm. This steps clarify the vision which can help in achieving the objectives of the Hotel.
Goal setting is achieved by evaluation of the macro and micro environment which can help in the
development of the Hotel Hilton. Which thrives the performance in the right direction, with the
help of collecting, scrutinizing and providing the information for the development of the strategic
process(Altinay, Paraskevas and Jang, 2015).
Strategic Formulation-

Information can be collected by evaluation of the macro environment which can help in the
development of the strategies which can be evaluated with the help of the evaluation carried out
for the developing the strategies which can help Hotel Hilton in the developing the strategies
which can improve the performance of the firm this is carried out by the evaluation of all the
sectors of Hilton which can help in the all round development of the firm. This heps in
developing the sustainable entity for the business of the firm which can help in the generation of
the strategies. This is carried out with the evaluation of the strengths and weaknesses of the firm
which can help in evaluating the key factors of the firm(Belias and et.al., 2017).
Strategic Implementation-
Strategies so developed by the above evaluation can be used for the development of the Hotel
Hilton which can help the organization of grow and evolve as a firm minimising the effect of the
competition, the analysis of the competition is done to minimise the target produce which helps
in eliminating the competition of the industry. Identifying the areas in which the growth are
carried out which consists of the evaluation and the strategies where the growth is decreased
which can be evaluated and the areas of improvement must be carried out.
Strategy Monitoring-
The strategy which is developed is now monitored with the help of the managers which focuses
on the record keeping and evaluating the performance of the firm. The strategical increment are
defined which helps in the development of the firm. The evaluation carried out increased focus
on the weaker sections of the Hotel and helps them to grow.
2. Porter's five force for the evaluation of the business strategy
For the evaluating the business for the Hotel Hilton porter's five force is evaluated which can
help in the development of the firm in relation of the increment brought up by the Hotel which is
evaluated by:
Threat of New Entrance-
This is carried out by the evaluation of the external environment which can help in the evaluation
of the threats carried out by the new entrance which can eventually decrease the growth of the
Hotel Hilton(Elbanna, 2016). As there is a fall of the sales which can decrease the growth of the
firm. This decrease the growth rate of Hotel Hilton in the market which can effect on the cost
benefits for the Hotel Hilton. This thereat can weakens the company position and the market

value which implement the diverse effect on the company. This will lead to the change in the
price rise and marketing strategy which can help in the maintaining the growth of the firm.
Threat of substitutes-
There are many substitutes which are available in the industry which can affect the growth rate
of Hilton. These substitutes can affect the economy of the hotel decreasing the growth of the firm
these substitutes can be eliminated by the change in the marketing and the change in product
delivery strategies which can be carried out by the change in technological update which can
resist power to go anywhere and the customer base is maintained which can help the firm to
grow decreasing the effect of substitutes. Hotel Hilton can take advantage of new firms by
increasing the ways to hold the customers by collaboration and attaining the customers of smaller
firm which can help in the decreasing the threat of substitutes.
Bargaining power of customers-
the powers of customers can be minimised concentrating on the evaluation of the products which
can help to decrease the power of customers. As a customers needs lowest price, Hilton must
strategies to develop a strategy which can help in the growth of the firm. This can be carried out
by buyer concentration of firms by decreasing the ratio of customers feedbacks and satisfying
customers with the facilitates provided. There must be many channels of the in-source which can
balanced ratio of the customers which can be satisfied(Konovalova and et.al., 2018).
Bargaining Power of Suppliers-
there must be many suppliers with Hotel Hilton which can help in the channelising and
eliminating the ways which are threat to the Hotel there must always be an alternative of suppers
which can help in minimising the threats of suppliers. There must be a strong hold on the
distribution channel which can minimise the effect of the firm.
Competitive rivals-
By the strategic development of the firm there are various processes which can give rise to the
providing the safety from the rivals which can help in the development of the Hilton strategies
are developed which can help in keeping up the various rivals out of reach.
LO 2
P3 Pestle and Swot analysis to formulate the competitive advantage:
Pestle Analysis

Political- In hotel industry various political factors can influence the number of visitors in the
country which affects the hotel in direct manner. Various norms set up by the government can
affect the performance of the firm.
Economical- various national and international standards can help the firm which can affect the
economy of Hotel Hilton which can help in generating the economy of the Hotel Hilton.
Economy can be generated by the inflow of the customers by the market evaluation and
strategical formulation.
Social- with the various social factors like demographic skills which can help in the development
of the social culture. Class culture, hierarchy and power must be evaluated to increase the
performance of the firm,as management of the firm is set up and the growth is
traced(Lordkipanidze, 2018).
Technological- there are many technological updates which can help in the development of the
firm which can be carried out by the technical advancement of the firm. Many of the services
offered by Hilton is now upgraded with technology. Technology has changed the value chain
strategy of Hotel Hilton and the work management is improved.
Environmental- better environmental conditions for the Hilton has ungraded the sales and the
weather conditions attracts more tourists and visitor which has increased the growth of Hotel
Hilton.
Legal- change in the legal factors has affected Hotel Hilton as there are many laws which are
upgraded like health and safety law, data protection law which improves the safety and stay of
the customers.
SWOT Analysis:
Strength-
 there is a vast scope of business.
 Various effective schemes to bind customers.
 Higher level of service with the technological integrations.
Weakness-
 Over-dependency of local market.
 More level of debts
 lesser flexibility due to bigger size.
Opportunities-

 international market expansion
 focus on technology which can thrive more customers.
 Formulation of strategies for development.
Threats-
 Impact of Brexit.
 Issues related to ethics.
 Loss of talent and valuable workers due to Brexit.
LO3
P4 Strategic Options for Hotel Hilton
For the development and expansion of the hotel Hilton there are many ways which can improve
the strategies for Hotel Hilton this can be carried out by development of strategies which can
help in the development with many of the tools for the Hotel Hilton. These can be carried out by:
Franchising- Hilton Hotel can franchise its ventures which can help in attaining the international
market which can help in the growth and development of the firm. This can increase the growth
of the firm. with the franchise Hilton can gain a popularity in the market and help in the
expansion of the profits.
Management Contracts-
this is the contract carried out for the development of the strategies which can help in the better
control of the enterprise by contracting the segments of the firm this can be franchising the
segments of Hotel Hilton(Solnet, Kralj and Baum, 2015).
Joint Ventures-
This can be carried out by Hilton which can help in the sharing the profits and losses which can
help in development of the firm. This can help in rapid expansion and coverage of the large
market.
Mergers and Acquisitions-
this can help Hotel Hilton in elaboration of a stronger customer base by providing the name of a
Hilton to the existing firm which are smaller in size which can help in the development of the
firm. With merging customer base can be improved. This can help in the strategic formulation
and gaining large market with the help of mergers.

CONCLUSION
This studies carried out evaluates the growth and development of hotel Hilton by strategic
management process, which is carried out to evaluate the strategies which are built with the aim
to develop the management planning with the need of the change in management. Evaluation of
business strategies are carried out to develop the strategical tool to keep out the rivals. Pestle and
swot analysis is carried out for the development of the micro and macro environment which can
evaluate various factors. Various options for the further expansion is carried out for the
generation of growth opportunities.

REFERENCES
Books and Journals
Altinay, L., Paraskevas, A. and Jang, S.S., 2015. Planning research in hospitality and tourism.
Routledge.
Belias, D and et.al., 2017. Human resource management, strategic leadership development and
the Greek tourism sector. In Tourism, Culture and Heritage in a Smart Economy(pp.
189-205). Springer. Cham.
Elbanna, S., 2016. Managers' autonomy, strategic control, organizational politics and strategic
planning effectiveness: An empirical investigation into missing links in the hotel
sector. Tourism Management. 52. pp.210-220.
Konovalova, E.E 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.
Lordkipanidze, R., 2018. The Strongest Key to Global Hospitality.
Solnet, D., Kralj, A. and Baum, T., 2015. 360 degrees of pressure: The changing role of the HR
professional in the hospitality industry. Journal of Hospitality & Tourism
Research. 39(2). pp.271-292.