The report is based on Hilton Food Group Plc which is a leading specialist international food packaging business that supplying different food items to the global level of retailers and is located in England. It servesa variety of services and food facilities to their guests and focuses on properly satisfying their needs and demands. The main purpose of this assignment is to describe the history of the hotel and its potential facilities and services. The report discusses the significance and use of PESTEL for the business concern and how this will help reach with desired goals and targets. All the factors of this analysis assist in identifying the major issues which impacted the business operations and its functions.
Overview of the Hilton Food Group Plc
Hilton Food Group Plc is a leading specialist multinational food packing business that delivering major global retailers from the state of the art facilities. Hilton’s business was developed in the year 1994and regulates beef and lamb central meat packing services in Huntingdon, England (Hiltonfoodgroupplc, 2020). Hilton has grown quickly in the large market area and currently, it has six factories all over Europe along with two joint ventures in which products are sold in supermarkets across the 14 Europeannations and Australia (Abdoh, et. al., 2016). Currently, Hilton announced and introduced it will buildnew services in the areas of New Zealand for Woolworths and attained Seachill, which is a leading chilled UK fish processor. Every Hilton’s packing plants are regulated and operated on a dedicated basis for the hotel customers. Hilton’s business model has adopted to reach local needs along with customers in a country. The board ofdirectorsof the Hilton isRobert Watson OBE and Philip Heffer who are managing and maintain whole business services in a better manner. The Blackstone Group held around 45.8% of stakeholdersin the company (Bertozzi, et. al., 2016). It is important for the hotel is to focus on managing and maintaining business operations to deal with potential guests. Hilton hotel has responsible staff members who are performing their tasks and duties to achievingdesired goals and objectives.
Hilton Food Group Plc organizational structure can be described as divisional and the business which servesthe best facilities to their customers. Along with this, the organizational chart of Hilton Food Group Plc also described as below:
Figure 1: Hilton Organisational structure, 2020
(Source: Hilton Organisational structure, 2020)
Evaluate the importance of PESTEL analysis for a business organization. Why is it important for organizations to carry out PESTEL analysis?
PESTEL analysis can assist every business owner in recognizing the important changes and alterations in the political, economic, social, technological, legal, and environmental factors. This will helps a company in managing strategic planning to expand its business operations and its functions. It is mainly used as finding activities and risks which may create a negative influence on the business functions and its operations. Besides, it also assists Hilton Food Group Plc to develop the external factors which could directly impact decision formulate within an organization (Bicknell, et. al., 2020). Through the evaluation of such external factors, it is possible to increase chances and reduces the issues to the company. PESTEL analysis assists employees and team members to evaluate the hotel’s market and understand the business’s current position in the large marketplace. It also conducts market research in the new and existing market area. It assists in determining major factors that can impact the business success and development level.
Such analysis also helps Hilton to screen the whole market and easily identifiesitscustomers’ needs or preferences in a better manner. According to this, they can modify and change their business services and operations. If Hilton Food Group Plc uses this Pestel analysis for evaluating market conditions then this is an effective method for understanding their potential customers’ requirements. The most important thing about this analysis is that it makes it easy to understand the factors which affect the business environment (Brito, et. al., 2017). Such analysis also helps the hotel to get ready for the possible risks that arise from time to time as of external factors. This is also helpful in analyzing major threats and issues that may affect hotel operations and its activities.
The main reason for Hilton Food Group Plc to carry out PESTEL analysis is that it helps in understanding and evaluating what external factors may impact the company and how such factors create threats and opportunities to the business. Pestel analysis can be used to evaluate the external environment risk which developsa negative impact on the Hilton operations and its functions. It is a strategic planning tool that can be used to minimizing the business issues and threats within an organization (Düerkop, et. al., 2017). In the case of Hilton, they need to understand their customers’ needs and want as per their requirements they require to develop services and deliver them that assist in fulfilling their desires in a better way. With the assistance of examining the political, economic, social, technological, legal, and environmental factors, the hotel can easily achieveimportantbenefits. Along with this, it is essential for the firm is to focus on carrying out this analysis which helpsto reach set goals and targets. It is the management technique in which a hotel can assess major external factors that influences its business operations and became more competitive in the whole market area (Fern Fort, 2020). It is analyzed that Pestel analysis helps in encouraging and motivating the company to develop strategic planning and provide the required data properly. It is such a tool thatis used incollaborateswith the information such as the internal abilities of a Hilton by this they can attain the attention of potential guests towards their services like accommodation, lodging, transportation, etc.
Political factors–It is analyzed that political stability is the common necessity to gain success in the context of the industry. In the hospitality sector, political factors can directly influence the visitors’ volume for both business travellers and tourists to a nation. Hilton Food Group Plcactively engagesin lobbying to be capable to impact some political forces on the business operations (Mak, et. al., 2019). With the help of the below graph, it is seen that company has spent around 1.5 million during the previous four years for lobbying motives.
Figure 2: Annual lobbying budget of Hilton hotel, 2020
(Source: Annual lobbying budget of Hilton hotel, 2020)
The Hilton Food Group Plc of a nation is mainly dependent on tourism and thereby on the government regulations or laws of the country. Due to this reason, when the government is more open towards tourism laws then the hospitality sector needs to pay a large amount of taxes as well. However,a huge world is free for visitors and this hotel industry is facing an enormousexplosion (Marketingtutor, 2019). The Hilton Food Group Plc needs to analyze the environment which may affect their business in different ways such as changes in government laws, the efficiency of the current government, alteration of policies, existing legal framework, and political attitude towards the economy. For this, Hilton requires to understand the major impact which can create bad influences on the business functions or its activities. It is analyzed that changes in political factors can directly affect the business strategy such as stability of the political system that can affect the appeal of a specific local market. Besides this, government activities influence the economic environment.
Economic factors–In this factor, economic changes can affect the whole hospitality industry. A huge part of this sector is collectedfrom luxury hotels. Various factorsaffectindividual abilities to pay forlavishness hotels such as inflations, recessions, and other economic fallouts. The hospitality industry is cyclical which referred that its business is mainly dependingon the nation’s economic development and growth level. An increasing economy enables people to spend the amount on optionalitems that involve air travel so that the hotel income ishigh at the time of economic growth and lower during the reduction of economic rate.It is important for the Hilton hotel is to focus on the economic environment which affected their business operational activities.It is examined that foreign exchange rates are anothereconomic factor thatdirectly affects the capability of international visitors to developedhotel facilities (Meshel, 2020). The more developing nations should focus on increasing their budget to welcome a large number of foreign travellers and expand their economic growth rate. At the time, when the businesses are affected by the changes in the economy then the hotel sector is one which is most vulnerable to their influence. Hilton Food Group Plc concentrates on improving the income and profits by attaining growth and success level.It is also observed that this hotel also changes its providing and services to the guest based on the location or place. As guests will appreciate the offerings customized to them that will motivate them to visit again in the future time.
Social factors–It is that factor which is mainly affected the Hilton functioning by changing the preferences and choices of customers in the market place. This is analyzed that the currentage group has demonstrateda strong tendency towards travelling. It is fuelled by social media networks in which people are capable to replace their knowledge and develop peer pressure to visitors. It is increasing the expensescapabilities which make sure that high-class people can easily use the hotel services and they can afford expensive facilities.This tendency can help in growing and increasing in the future which can lead to enhance the demand for hotel services among travellers (Nandonde, 2019). Hilton mainly focuses on accepting different class of people which ensure them regarding they serve better services. Hilton also provides discounts and other offeringsthat attract the lower class to the hotel and by the offerings they can easily afford luxurious stays as well. The social factors can affect the customers’ attitude, behaviour, opinions, thoughts, and interests according to this Hilton hotel requires to develop their services and changes in accommodations facilities. During the peak time, most of the hotel rooms are full or charge high price due to this customersneed to purchase a high rate of the room. Apart from this, if the Hilton developsan app where people can book their room then this will save their time and cost to visit a different hotel. Customers also want cheaper rooms then Hilton should develop certain few serviceadded room for middle-class people who want to stay in such a hotel and satisfying their requirements.
Technological factors –The technology has becomefriendlier and updated in the current time. A large number of hotels are fitted CCTV cameras for the security purpose of their guests and make them realize their guests more comfortably.Various other technological facilitiesthat are founded in the hotel are lifts, intercoms, Wi-Fi, etc.This is that factor which majorly affects the Hilton Food Group Plc operations and its functions. Hilton requires adopting new technology and updatesits existing technology which helps them in smoothly run their business functions (Naz, et. al., 2015). It is essential for the hotel is to focus on using the latest equipment through which they can easily gain the attention of customers and maintain records or information related to people’s visits and their details. The Hiltonusesan online booking system which helps in increasing booking rates and goodwillin a large market area. With the assistance of technology, international customers also book their rooms in advance with the touch of a single button. It helps in examine and analyzing necessary information regarding the hotel services quickly. Visitors can also share their feedback and responses about their experiences in the Hilton Food Group Plc and by this,they can improve their services for future guests (Pestleanalysis, 2019). Such factors can affect the business such as reduces costs, improve facilities, increase operational efficiency, and gain customer experience.By this, both the businesses and customers are attaining advantages from better communication, guest service system, and easy reservations. When the Hilton provides all such facilities then this will positively influence the external environment of business.
Environmental factors–In this, it is analyzed that different markets have various laws or environmental standards that can affect the profitability of the company in such markets. Due to the heavy ice, most of the flights are cancelled and delayed which can impact the hotel operations. On the other hand, Hilton Food Group Plc developsand provides environmentally friendly products or services which do not affect negative influences on their functions and regulations. Hilton is being under the pressure by both the environmental workers and the government to make sure of a minimum carbon footprint (Pirnar, 2019). Hilton moves towards using recyclable items to answer the climate disaster.This factor affects the whole environment whether the hotel usesa harmful substance or not. Hilton focuses on reduces wastage of items and by this, they can fulfil their duty to the environment.
Legal factors–This is such a factor that directly or indirectly affected the hotel industry growth. The legal environment of a nation is crucial to the development of the hospitality sector. It is analyzed that every country has different rules and regulations so it is important for the hotel is to adopt such nation laws where they operate their business otherwise they do not smoothly regulate their functions. Various higher authoritiesare providing tax deductions to the hotel sector to enhance their economy (Ulubeyli, et. al., 2018). There are compliances that all the hotels require to accomplish in a proper manner such as health and safety law among others. Hilton became strict in terms of recognition before enabling a guest to use their services. Hilton also works by adopting all the legal frameworks and regulations that are made by the government.
It is concluded that the PESTEL analysis of the Hilton provides a clear understanding of how the hotel operated and perform work at the international level. The hotel industry is facing a huge boom and such trends are expected to increase in the upcoming era. All the factors help in identifying major affected on the business by the external environment effectively.
According to the above-described report, it is concluded that Hilton Food Group Plc is one of the international food packing business supplying major foreign retailers and also provide different and best services to their guests who are come from domestic and international places. For analyzing the external market situation, the hotel conducts PESTEL analysis which helps in identifying major threats and issues that may impact the whole business operations. There are various factors which can build negative influences on the hotel functions and activities. PESTEL forces assist in evaluating the major influences of the environment on the Hilton hotel functionsand also discuss how these factors impact the hotel operations effectively.
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