Business Health Check: Hilton Hotel - Literature review Example

Business Health Check: Hilton Hotel Background information Hilton Hotel was founded by Conrad Hilton in the year, 1919, and he established the first Hilton hotel in Cisco Texas. Today, the Hilton establishment has expanded its hospitality business across the globe. The Hotel is among the leading names in the hospitality industry today. Further, the Hilton Hotel offers a wide range of services to travellers from around the globe. As a global brand, Hilton Hotel emphasises innovation as a strategy to remain competitive in the hospitality industry. The products and services from the Hotel are geared towards meeting the needs of savvy global travellers. Today, Hilton h-Hotel boasts of over 500 hotels and resorts that include in more than eighty countries around the world that include, for example, Hilton Hotel in the United Kingdom. Having existed for over 95 years, Hilton Hotel is the most preferred avenue, for instance, by developers, travellers and corporate partners (Huckestein & Duboff, 1999). P1: Mission, Vision and Objectives of Hilton Hotels According to Strauss and Karyn (2005), the mission of the Hotel involves filling the earth with the light and warmth that hospitality can provide. On the other hand, the vision of the Hotel involves being the dominant hospitality company worldwide. Further the objectives of the Hotel include: • To enhance the experience of guests who visit Hilton Hotel • To engage workers of Hilton Hotel • To improve the operational efficiency of the Hilton Hotel • To improve the building designs of the Hilton Hotel • To strengthen Hilton Hotels’ partnership with key stakeholders in the hospitality industry • To serve various communities where Hilton Hotels have established their business • To maintain an emphasis on protecting the global environment • To enrich the Hotel’s brand name worldwide In terms of considering the Hotel’s mission, the hospitality industry today is competitive and attracting customers depends on how the Hotel can market itself. As such, improving the experience of customers as emphasised by the mission of Hilton Hotel is necessary to retain customers who visit the Hotel from different regions around the world. On the other hand, its vision involves being a leader in the hospitality industry. However, this will depend on the business strategy that the Hotel establishes in the competitive business environment. Today, the number of world class hotels has increased, and Hilton Hotel faces stiff competition that requires the development of a differentiation strategy. As such, the Hotel needs to come up with unique products and services to ensure it remains competitive in the hospitality industry (Li et al. 2013). With regard to the objectives of the Hilton Hotel, enhancing the experience of the guests would require a focus on services that meets the needs of today’s global travellers. Improving the experience of travellers who visit the Hotel will require the company to focus on the current demands of the hospitality industry. This requires the Hilton Hotel to consider reviewing its strategic plans on a frequent basis since the hospitality business continues to change from time to time (Chen et al., 2011). Conversely, engaging workers of the company is important to ensure that their concerns are addressed amicably. As such, the Hotel can benefit from an improved employee involvement. In addition, engaging workers of the company also ensures that the management understands their needs and makes changes to ensure that the operations of the Hotel are not impacted by a negative attitude from the workers, for instance. In a world class hotel such as the Hilton Hotel, operational efficiency is critical in ensuring that the Hotel retain is customers. Most of the customers visiting a five-star hotel like Hilton Hotel are more particular regarding the services they need. As such, it is important for the management and employees of the Hotel to be more adept with the needs of their savvy travellers, for instance. This will ensure that the Hotel maintains its position as the best destination for savvy travellers. A focus on operational efficiency also ensures that the Hotel does not incur losses (Eisen, 2006). On another note, the hospitality industry is about improving the experience of customers that range, for instance, from tourists and business personalities who spend their time in the five- star hotels either for leisure or for business purposes. In this regard, most of these customers are fascinated by the attraction that the five-star hotels can offer. As such, the Hilton hotel has endeavoured to draw more customers by improving the design of the Hotel’s building. In essence, the aesthetic value that is provided by the design of the Hotel’s building can act as a source of attraction to prospective customers in the hospitality industry (Eisen, 2006). Strengthening the partnership with key stakeholders in the hospitality industry is also necessary to ensure the Hotel maintains its competitive advantage in the hospitality industry. The key stakeholders in this sense may include, for instance, the government, shareholders, tours and travelling operators, venture capitalists and financial institutions. As a global brand, it is necessary for the management of Hilton Hotel to establish a working relationship with the government in the regions that the Hotel has established its business. This ensures that the Hotel is not affected in its operations as a result of interference by government officials who may have their vested interests. Further, the government is also responsible for issuing trading license and as such, a working relationship between the government and the Hilton Hotel plays a role in ensuring that there are no unnecessary demands that can impact negatively on the Hotel’s business in different regions where it has set up its business (Popescu et al. 2013). On another note, the shareholders are the owners of the business, and their involvement can improve or impede the success of the Hilton Hotel. In this regard, the board of directors and the top management of the Hilton Hotel need to ensure that there is transparency in terms of how they deal with the shareholders of the Hotel. Tours and travelling operators on their part play an important role in ensuring that the Hilton Hotel keeps getting customers from different destinations around the world. Their role in this regard is to assist the Hotel in terms of providing travellers with important information regarding different hotels or destinations that they can make their reservations. As such, establishing a working alliance with tours and travelling operators is critical in ensuring that the Hotel gets more customers and thus increasing its profits (Maxwell & Gordon, 2002). In addition, the Hilton Hotel also needs the assistance of venture capitalists or financial institutions to help it expand its business to other destination. Also, in today’s business world, corporate social responsibility has become part and parcel of organisation’s business strategy. As such, it is necessary for the Hilton Hotel to involve itself in CSR as a way of enhancing its reputation in different regions that it operates. This may involve, for example, serving the communities in different regions that it operates. For example, the company can engage in CRS by funding community projects aimed at improving the lives of the community members. Engaging in an environmental initiative also plays an important role in terms of improving the reputation of the Hilton Hotel. On the other hand, promoting the Hilton Hotel brand globally will require a focus on improved service delivery to attract more customers to the Hilton Hotel (Maxwell et al. 2004). P2: PESTEL analysis of the Hilton hotel Political factors In the hospitality industry, politics is an influencing factor in the establishment of businesses in different locations around the globe. For instance, the government can have an influence on the business of Hilton Hotel in terms of the trade tariffs or tax policies that they implement. In some regions, the government imposes hefty tariffs or charge higher taxes on foreign businesses, and this tends to drive away foreign investment. In this regard, the operation of Hilton Hotel globally is dependent on the policies implemented by different countries that can either favour or deter foreign investment. On the other hand, political instability is another factor that can impact negatively on the Hotel’s operations in different parts of the globe. In some region, the Hotel has run into heavy losses due to political instability (Harrington et al. 2014). Economic factors The economic downturn of 2008 impacted negatively on profits of the Hotel due to the reduced number of customers or travellers visiting the Hotel. In addition, the economic crisis also forced the Hotel to retrench some of its workers to cut down additional expenses. On another note, in times of high inflation rate, the consumer spending tends to decline, and this also affects the hospitality industry in terms of the number of visitors they receive. To some extent, difficult economic situations have led to the closure of hotels in the hospitality industry as a result of incurring more debts or due to lack of investment opportunities. While Hilton Hotel survived the economic crisis of 2008, it was forced to cut down some of its services and also downsize its staff members (Harrington et al. 2014). Social factors The Hilton Hotel mainly attracts customers with a higher social-economic standing. Consequently, the common citizen is unlikely to afford the cost of services offered by the Hilton Hotel. However, a focus on a certain class in the society can be detrimental to the Hotel in the sense that the Hotel does not spread its risks. Spreading risks in this sense require the Hotel to not only focus on customers with a higher status in the society but also the ordinary customer with money to spend in the hospitality sector. On the same note, the danger of only focusing on one type of customer is that when that customer other service sectors, the Hotel may run out of business in the long-run. As such, it is important for the Hotel to embrace diversity in terms of the type of customers that they target (Singal, 2014). Technological factors In the 21st century, technology has become part and parcel of improving efficiency in a competitive business environment. As such, the Hotel needs to embrace the use of technology to improve service delivery to its customers (Quinn, 2012). Environmental factors Due to the heightened campaign against environmental degradation, most firms have taken initiatives to promote environmental sustainability. In this sense, the reputation of the Hotel can improve by engaging in initiatives aimed at protecting the environment. Many customers visiting the five-star hotels around the world are becoming increasingly aware regarding the need to protect the environment. As a result, Hilton Hotel stands a chance of attracting more customers by engaging in programmes that advocates for environmental sustainability (Solnet et al. 2015). Legal factors There are various laws in different countries that can affect the operations of the Hilton Hotel. For example, labour laws differ from one country to another. As such, it is often a challenge for the Hotel to revise its labour laws in different countries that it operates (Solnet et al., 2015). P3: Potential improvements for Hilton Hotel Prior to expanding its business across borders, the management of the Hotel needs to consider the political climate in those countries. For example, they need to take into consideration whether the government policies in those countries can affect their business. In addition, political stability in various countries that Hilton intends to set up a business is important to consider since venturing into a volatile region can have an impact on the Hotel’s profits. Dealing with economic crisis requires the hotel to spread its risk by investing in other sectors. The hospitality sector is often affected by high inflation rates that often have a ripple effect on consumer spending. On the other hand, the Hotel should diversify its services also to cater for the ordinary customer (Eisen, 2006). Over the years, the services offered at the Hotel are unaffordable to the ordinary citizens and mainly aims at customers with higher standing in the society. However, with the constantly changing business environment, it is necessary for the Hotel to expand its services to the common citizen. This will ensure that the hotel has a variety of customers from different social standings and thus increasing profits as a result of taking advantage of economies of scale (Eisen, 2006). Technology wise, the Hotel can improve service delivery by embracing the use of technology in its key operations such as booking of clients or advertising itself using digital platforms such as the internet. The top management can also improve their communication with employees in different regions around the globe by relying on technology. With regard to legal factors, the hotel needs to consider the laws in different countries that they intend to establish their business. For instance, labour laws tend to vary from country to country. As such, it is important for the hotel to consider setting up their business in countries where the labour laws are almost similar to avoid the challenges involved in adapting to new laws (Solnet et al. 2015). P4: SWOT analysis of Hilton Hotel Strengths Hilton Hotel is a global leader in the hospitality industry and can take advantage of its position in the industry to attract more customers. In addition, being a leader in the hospitality industry plays a role in ensuring that the hotel maintains a competitive advantage in different regions around the world where it has established its business (Noriega & Lim, 2011). Weaknesses The Hotel only focuses on certain types of customers, and this can affect their business in case these customers shift to competitors. Further, the Hotel only invests in the hospitality sector thus lacking an ideal strategy for spreading risks. The hospitality industry is also unstable, and this requires the Hotel to look for other business opportunities that can ensure it remains stable (Solnet et al. 2015). Opportunities There are numerous opportunities for the Hilton Hotel to expand its services globally due to the increasing number of travellers. As a result of globalisation, more travellers are increasingly relying on the hospitality industry. As a result, Hilton Hotel can take advantage of its economies of scale to establish itself in different hospitality markets around the world (Noriega & Lim, 2011). Threats While Hilton Hotel has existed for many years, it is currently facing the threat of new entrants. As a result of globalisation, more international Hotels are being established across the globe and thus creating a stiff competition in the hospitality industry. As such, it is important for the Hilton Hotel to develop a differentiation strategy that will ensure it remains competitive in the hospitality sector (Solnet et al. 2015). P5: Improving customer relationship management at the Hilton Hotel As a global brand that serves customers from different parts around the world, adapting to the changing needs of customers is necessary for the Hilton Hotel to remain competitive in the hospitality industry. On this note, it is important for the hotel to focus on improving its CRM. This involves, for example, improving its interactions with prospective customers. The hospitality industry mainly focuses on luring customers to the various travel destinations around the world. As a result, it requires the key players such as the hotels to come up with strategies that can improve customers’ experiences. Over the years, the needs of customers visiting the five -star hotels such as the Hilton Hotel has changed significantly. This also means that the Hotels have to adapt to the changes in the hospitality industry. Improving CRM of the hotel requires the management to focus on ensuring the development of an efficient and effective customer care procedures. This will be critical in ensuring that the Hotel not only retains its loyal customers but also increase its customer base (Skaates & Seppanen, 2005). In today’s world, technology is vital to improving service delivery. In this regard, since the Hilton Hotel attend to customers from different regions around the world; the use of technology can play an important role in improving its services and also attracting more travellers to the Hotels. For example, customers in the hospitality industry today are technologically savvy and rely more on the various technological platforms for their daily activities. On this note, the Hotel can use the internet to improve the services it offers to prospective customers. This may include, taking advantage of the internet to advertise the available services. The internet can also be used by the Hotel to fast track bookings or reservations for prospective customers intending to stay in the Hotel. While the traditional modes of advertising appear expensive, the hotel can minimise expenses related to advertising by taking advantage of various media platforms that have emerged as a result of technological advancement. For example, it is cheaper for the Hotel to attract more customers using the social media platforms than the print and electronic media such as the magazines and television where the cost of advertising is relatively high (Quinn, 2012). On the other hand, it is also important for the Hotel to diversify its customer base. Most of the five-star hotels in different regions around the world are often associated with affluent customers. However, as a strategy to generate more profits, the Hilton Hotel can introduce services that target the middle-income earners who are attracted to the five-star hotels. Further, most of the five-star hotels tend to face challenges in terms of surviving in the hospitality industry because of the high costs that their services attract. However, diversifying their services also to target the middle-class earner can help to improve profits and ensure that the hotels remain stable in the hospitality sector. In this sense, the Hilton Hotel need to have both high cost and low-cost services to ensure that it attracts both customers from the social divide (Singal, 2014). Conversely, improving customer experience in the digital era requires automation of various services offered by the Hotel. For instance, customers are more interested in accessing services that suit their convenience rather having to deal with a tedious process to access the intended service. For instance, the Hilton Hotel can attract more millennial customers by providing most of its services online. In this way, techno-savvy customers will have the opportunity of accessing the services of the Hotel at their own convenience. On the other hand, the Hotel will also improve efficiency by cutting down on the extra costs involved in providing various services to their prospective customers. Improving customer’s experience also requires the Hotel to understand the needs of different customers. This is because; the Hotel attracts customers from different cultural background. Consequently, the services provided by the hotel also need to emphasise on cultural sensitivity (Singal, 2014). P6: The current skills of the management and staff of Hilton hotel As a result of operating in a global context, the management at the Hilton Hotel is required to possess the skills of international managers. Other than dealing with a diversified group of staff, the management also deals with customers from different cultural backgrounds and also from different regions around the world. In this regard, the current skills of the management at Hilton include effective communication skills because they are dealing with staff and customers from different cultural background (Watson et al. 2007). In essence, effective communication skills improve the coordination of work between the management and their junior staff. On the other hand, effective communication also ensures that the services provided to the customers resonate with their needs. Further, the management also needs to understand different languages used around the world in order to serve their customers adequately. As a manager involved with the operations of the Hilton Hotel, a necessary skill or quality involves being able to learn and adapt fast. This is because the hospitality industry continues to experience rapid changes and require a manager who can lead the hotels they manage to realise a successful future. The current management at the Hilton Hotel also needs to possess innovative skills that are needed to develop a differentiation strategy. In addition, the Hotel management also has vast experience undertaking managerial role at the international level. This skill is necessary to help the management deal with change management process necessary to improve the delivery of service at the Hotel. Further, the management at the Hotel employs efficient and effective leadership skills. The leadership that the management provides at the Hotel is necessary to help other staff members to improve their attitude towards work. For instance, the management at the Hotel maintains a focus on a democratic style of leadership that enables other staff members to be part of the Hotel’s decision-making process (Watson et al. 2007). On the other hand, the skills of other staff members at the Hotel other than the management involve flexibility in terms of adapting to new changes in the hospitality industry. The staff at the Hotel also possesses skills and experience required to work in the hospitality sector. Almost all of the staff at Hilton Hotel are highly trained to meet the needs of international customers. Further, the staff at the Hilton Hotel has also embraced the use of technology to enhance service delivery. Other skills that the staff at the Hilton hotel possess is an understanding of the major foreign languages used in the hospitality industry. This ensures that they serve customers appropriately as a result of understanding what they need through the use of effective communication skills. Similar to the management of the Hotel, the staff are also adept with the dynamics in the hospitality sector and are more flexible in terms of adapting to the constant changes in the industry which allows the Hotel to maintain its competitive advantage (Benavides-Chicon & Ortega, 2014). P: 7 Training and development process of the management and staff of the Hilton Hotel’s Kitchen department In the hospitality sector, a key contributor to the survival of a hotel is the accommodation they provide. In this regard, one of the major components of accommodation is the food served to customers. Since Hilton Hotel serves both local and international customers, the understanding of, for example, cuisine or delicacies from different regions around the world is necessary to meet the demands of a diversified group of customers who are served on a daily basis by the Hotel’s kitchen department. In order to improve efficiency, it is important for the Hotel management to provide in-service training to the kitchen staff as a way of enhancing their skills (Kavita & Sharma, 2011). For example, the kitchen manager needs to attend training that can improve their leadership skills and the understanding of different menus around the world that resonates with a diversified group of customers. In essence, improving leadership skills of the kitchen manager is necessary to ensure that the manager understands the need of other staff members. Further, learning and understanding how to lead effectively will enable the kitchen manager to improve the performance of the staff and also ensure the Hotel retain skilled and experienced staff in the kitchen department. On the other hand, training of the staff members in the kitchen department contributes to talent development necessary to improve the services they provide to the Hotel’s customers (Huang & Lin, 2011). Conclusion The hospitality industry is competitive, and various hotels in the industry need to develop business strategies that will ensure they survive the stiff competition. As a global brand, the Hilton Hotel has managed to maintain its leading position globally by constantly reviewing its strategies to ensure they match the current changes in the hotel industry. Some of the strategies that the Hotel use to assess its competitiveness in the hospitality industry involves, for example, conducting a PESTEL and SWOT analysis to identify weaknesses or gaps that need to be addressed. In essence, the future success of the Hotel depends on developing unique services that will ensure it counters competition from other upcoming international hotels. References Benavides-Chicon, C., & Ortega, B., 2014.The impact of quality management on productivity in the hospitality sector. International Journal of Hospitality Management, 42(3), 165-173. Chen, Y., Wang, W.C., & Chu, Y.C., 2011. 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