Report Plan
Abstract
The proper analysis of both micro and macro environmental factors of a business is important since it keeps any particular organization ahead of its competitors as well as ensures operations are stable. The environmental analysis provides the business framework upon which the organization relies for its strategic plan. It is important that companies keep in touch with various environmental changes that take place so as to improve the sustainability of their operations. The hospitality industry is among the sectors that face frequent changes in the environmental factors thereby triggering the need for global companies such as Hilton Hotels and Resorts to accurately analyze such factors and understand their impacts of its operations. Hilton has over the years managed to expand its business to other segments and successfully maintained sustainable profits in such segments due to its ability to take into consideration various macro and micro environmental forces. The report, therefore, discusses the macro and micro environmental factors affecting Hilton Hotel & Resorts and provides a recommendation on how the company improves its operations.
1. Introduction
The environmental analysis provides the business framework upon which the organization relies for its strategic plans. With the frequent changes in the hospitality industry and the fact that there are new entrants willing to invest considerable amounts of financial resources to compete with others, it is important that Hilton considers having an accurate analysis of its environmental factors and how they affect business operations. The report, therefore, provides in-depth analysis of both macro and micro environmental factors and provides recommendations on how to best react to that factors.
Hilton Hotels and Resorts is a global brand with over 4500 hotels in more than 100 nations which makes it among the largest competitors in the hospitality industry. Founded in 1919, the company has grown and expanded beyond borders where its branches include Conrad Hotels and Resorts, Embassy Suites, Hilton Garden Inn, Waldorf Astoria Hotels and Resorts amongst others. Among the products and services offered include; Food and beverages, guest rooms and property operations with the target market being high-end consumers who are in a position to pay for superior products and services. The vision of Hilton Worldwide is ‘To fill the earth with the light and warmth of hospitality through exceptional experience at every hotel, for every guest and every time’. The mission is ‘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 on the communities’.
2.1.1 Social, environmental factors
Hilton ensures that its products and services are in the position to fulfill the needs and expectations of different segments depending on the culture of the territories. To boost the way it respondents to consumer needs, Hilton has made significant steps in promoting effective corporate responsibility programs that aim at improving the welfare of communities.
2.1.2 Economic factor
Economic forces such as inflation, changes in bank rates and unemployment are all important factors that affect Hilton’s operations. The company has to cope with an economic challenge such as recession to ensure its operations are not brought down. However, the company has managed to improve the economy of the nations in which it operates in through tackling poverty and unemployment.
2.1.3 Technological factors
Technology is fast changing thereby putting pressure on firms in the hospitality industry to adopt latest trends if they want to compete effectively. There is increasing the need to enhance customer convenience and flexibility in the way they book rooms and pay for them. There is also increasing use of improved room services such as faster internet access which Hilton has made significant steps in implementing.
2.1.4 Political factors
Constantly changing legislations and the fact that every country has its own business laws makes it necessary for Hilton to understand such procedures. The company has to identify ways to comply with various legislations such as tax rules to avoid being on the wrong side of the law. In addition, political instabilities in some nations interfere with the business operations hence the need to consider operating in territories that are not prone to political turmoil.
2.1.5 Environmental factors
The hospitality sectors are among the industries that are under pressure to reduce pollution. Hotels are contributing to carbon emission which poses major global problems. However, Hilton has made significant efforts regarding decreasing its carbon footprints as well as opting for eco-friendly sources of energy to protect the ecosystem.
3. Micro environmental factors
3.1.1 Suppliers
Maintaining good relationships with suppliers is important in enhancing longterm success of a business. Hilton’s major focus is to develop and maintain strategic partnerships that ensure effective purchasing policies and the need for suppliers to deliver quality products at all time.
3.1.2 Customers
Customers in the hospitality industry would always wish to be associated with firms that offer quality products and services including fun packages and facilities for those who seek leisure, business travel purposes or tourism. The company has therefore made significant steps in delivering a variety of products and services that satisfy different needs of consumers.
3.1.3. Competitors
Competition is stiff in the hospitality industry with firms such as Intercontinental Hotel making it ideal for Hilton to continue building its brand in more segments. However, the threat of new entrants is low hence the need for Hilton to consider value-adding approaches such as loyalty programs, high quality and unique product and services that convince customers to establish a long-term relationship with the company.
3.1.4 The media and public
Hilton depends on its website to pass information to the public. Through the use of pictorial contents, the company creates the impression of how elegant their rooms and services are as well as the steps it makes in its corporate social responsibility programs to improve the lives of communities. The company also involves the press in sharing information about its CSR strategies thereby improving its brand visibility.
4. Conclusion
Hilton Worldwide has made significant steps in promoting brand visibility through its corporate social responsibility products and its ability to offer superior and unique products and services. The company has managed to cope with both micro and macro environmental forces that affect its operations hence the reasons why it has managed to expand rapidly into other segments across the globe.
5. Recommendations
Hilton Worldwide needs to take advantage of the new information technology trends such as the use of social media for marketing since the company relies mostly on its website. It is also important for the company to continue research on the how cultural trends affect its plans to expand so as to ensure it successfully penetrates new markets.
References
Hilton Hotel & Resorts. (2016). Hilton Hotel & Resorts: A Global Presence. London: Hilton Hotel & Resorts.
Hilton Worldwide. (2016). Hilton Worldwide: Our Approach. London: Hilton Worldwide.
Lacap, J. (2014). Competitiveness and Sustainability of the Hotel Industry: The Case of Hotels in Pampanga. Business Management and Strategy, 115-125.
