In the sheer globalised market of the global hospitality and tourism industry, the importance of strategic management is evident to allow an organisation for obtaining sustainable competitive advantage. Hotel Hilton is chosen for this particular assignment to elucidate the issues faced in the strategic management along with recommendations to redeem the problems. This assignment will be dealt from the point of view of myself as a CEO to cater the actions to deal with the problems along with future solutions to make betterment of strategic management. In addition to that, the idea of creating strategies for a particular business organization also can help the organisation to identify various sprint as well as weakness and opportunities of the organization for creating sustainable policy and risk management strategies to avoid any problems in future. This assignment tries to reach its ambition to understanding the internal and external environment analysis of the chosen organization along with the development of the business strategy.
History of the organization and its strategic development
Hilton Hotel is a brand in an international platform that provides full-service hospitality management in almost 86 countries and 6 continents all by the famous American multinational organization name Hilton. This particular organization related to hospitality management has provided a benchmark for the hospitality management industry because of its proficiency. This particular hotel has various franchises across countries. The branch of this hotel was established in Sydney also in 1968. This part of the organization has provided various strategic inventions to attain market sustainability in the soil of Australia (Birkinshaw, 2016). The strategic development of this organization includes various opportunities such as cost-effective production, best customer service policy and different room available for different people in the budget. The importance of strategic development initiated by the particular organization is their multicultural employment policy that emphasizes more on the experience of the employees rather than the degree.
The organization having been started in the year of 1919 by Conrad Hilton has further been able to focus on their growth in the consecutive years. By adapting to certain innovative approaches to products. They have further been able to develop their service quality and other additional amenities. This has further helped them to become one of the most stylish and forward-thinking global leaders lying within the hospitality sector till this date. With the first opening of the hotel in the year of 1927, Hilton had been the first hotel to have cold running water and air conditioning within their public rooms (Wood& Brotherton, 2018). With the growing years, they have further been able to install other amenities thereby introducing the first multi-hotel reservation system. This has helped them to develop a strong brand reputation of their own thereby growing their services and expanding to different countries with about 100 countries as noted in the year 2016.
The internal-external environmental analysis of the organization
The internal and external environmental analysis of the organization can be done through swot and pestle analysis.
· Strong brand development
· Digitalization to improve the experiences of the consumer
· Better imply management
· The company further comes with several technical innovations which have helped them to develop a higher brand recognition thereby placing a top priority for them.
· They have further been able to set up a global presence and a strong brand portfolio thereby following certain professional standards of their own.
· The company has been able to develop an excellent customer support program followed by the incorporation of a cross-selling technique to improve its operations further.
· Limited share available in the market
· Problems in the operational factors due to governmental legislation (Noeet al., 2017)
· They also have a very weak financial performance which has greatly affected the company at large in the different countries
· It often becomes quite difficult for them to find a high quality of employee working within which tends to disrupt their overall service quality
· The employees working within require the need to obtain an extra form of training so as to serve the western guests thoroughly in which they majorly lag behind
· Various opportunity for developing countries.
· Digitalization and use of artificial intelligence in operation
· There lay various tourist who includes both foreigners and the domestic travelers to opt for availing Hilton’s service due to their high reputation
· The constant changes within the Chinese customer behavior have added to the company advantage and increased the scope of growth
· The development of Shanghai World Expo 2010 had been a major support for the company to bloom followed by the year-around conferences and events held within
· Various competitors in the market
· Stagnant nature of business growth
· Economic issues as well as political turmoil in various countries
· The increasing competition from the foreign and Chinese hotel chains have posed as a major threat and barrier on the way of the growth of the company
· There has been noted a global economic downturn within which has automatically raised the budget of hotels thereby reducing the customer base for them.
· Political instability and the importance of lodging industries in the growth of countries economy
· Various government legislation for the protection of intellectual property and trade policies
· The political situation present within Northern Ireland and other parts of the UK have posed as a major threat for the company in their progress
· Acts of terrorism and similar threats have resulted in the growing susceptibility of the hotel thereby pushing their operations downward
· Various differentiation in the exchange rates and the stability of the host country (Kotleret al., 2017)
· Educational policy and its reformation to help employee management
· With major economic growth within areas of the UK, Hilton has been able to experience certain progress and growth (Sigala, Christou&Gretzel, 2014).
· The changes within the GBP and other major currencies resulted due to inflation have greatly affected the company’s economic stability
· More importance provided to the demographics of the country as per the level of population
· generous attitudes towards sustainable development and corporate social responsibility
· the existing values of the society have greatly allowed the company to improve its operations and focus on the different family patterns that may attract new clients
· The growing role and use of social media have placed a major focus on the company’s promotion and advertisement thereby attracting a large set of customers globally and improving their hospitality fame
· Digitalization of the inter-functioning process of the organization
· An encrypted and individual communication system for the protection of data
· Several technological breakthroughs are responsible to cater to the industry’s growth
· The growing technical integration and use of the internet has helped the company to diversify and expand its business to various countries
· Customers have found great help in booking the hotel and obtain other facilities by the effective use of internet
· Proper Maintenance of Government trade policy
· Maintenance of various tariff policies issued by the Australian government
· The various country rules and regulations have greatly changed the company’s operations and failure to comply with those has also resulted in certain negative results to them
· The company has strictly adopted the consumer protection rules and regulations with that of other employee code of conduct so as to ensure that their operations and reputation are duly maintained (Evans, Fox& Johnson, 2015)
· The company has adapted to certain migration rules and regulations which again lays a major impact on the foreign-based customers.
· Initiatives regarding waste management and conservation of natural resources
· Educational programs and seminars to acknowledge the importance of sustainable development
· The changing weather conditions have brought about several major changes within the company
· The company has ensured that they are able to understand the customer type based on the situation so as to avoid any type of potential damage within their brand image
· They have further complied with certain environmental pollution rules so as to cater to a stronger business
· The impacts of natural disasters place a major impact on the company's operations within the various countries.
The development of functional strategies depends on three factors in the case of this hotel. The notion of functional Strategies for the Hilton Hotel depends on priorities, the operational model depends on fit for purpose activities and the execution of the available resources for the organization. The notion of priority in the case of functional strategy evaluates the incorporation of differentiating the functioning process and capabilities of the organization, detecting the necessities to deal with the competition in the industry and find out the organizational strength to deal with the capabilities for attaining market sustainability through prior improvement (Theriou, 2015). Being a part of the company, I have notedseveral issues in terms of incorporating their functional strategies in terms of effective resource allocation and coming up with the inefficiencies in their overall operating expenses. This has greatly affected their challenges in terms of meeting the developmental operations within. I have also identified several issues in terms of their corporate strategies which have also affected their communication and price level optimization. To cope up with the company, I believe the company needs to adopt various efforts so as to improve its strategic management.
The biggest aspect of international strategy for this organization is that the Hilton Hotel of Australia has cut off all the ties with various organizations to reduce the impact of acquisitions and mergers policies in the hospitality and Hotel industry (Broman &Robèrt, 2017). With the major risks turning up for the organization in terms of maintaining an independentidentity within the market, there has turned up various issuesrelating to that of the effectiveutilisation of resources, managing the information, raising their capabilities and coping up with the various internalrisks, all of which pose a majorthreatforthe company. To cope up with these challenges, I have taken an active part in Hilton to grow theirdevelopment of internationalstrategic alliances so as to maintain an effective relationship with other businesses thereby bringing forward with the development of resourcestrategies.The biggest part of the international strategy remains on the maintenance of service differentiation and hence the policy of merger and acquisition does not match the notion of providing extra differential services to the customers which can be specified in comparison to other hotels and hospitality organizations. Apart from that Hilton Hotel Australia has previously marked with the Marriott International and Hotel of Starwood which created a legal contract with this organization in exchange of 1.1 million hotel rooms.
In the case of leadership and Entrepreneurship this particular organization emphasizes on the notion of maintaining a proper communication and relationship between the employees and manager so that the employees can come and directly communicate with the team leader in terms of any problems and the team leader can directly associate manager for providing better solution in terms of risk management. Ineffective chances of the growth of mismanagement of failure to carry out with an effective leadership had also raised a higher chance for the company to implement the strategic goals within, which Hilton has thoughtfully taken into account.
The organizational structure of the Hilton Hotel is based on hierarchy because of the huge size of the organization that comprises almost fourteen brands and services 140 million customers from 2005. While working within the company, I have experienced certain challenges in the process of applying the concept of corporate governance within which has greatly affected its operations. This mostly arises from the performance evaluation of the directors along with the failure to focus on effective risk management within. To cope up with these major issues within, Hilton has developed certain effective practices that would be able to focus on each department within the company thereby maintain an effective executive and stakeholder management and relationship within.
This particular organizational structure is based on divisional management of organizational structure and follows various separate divisions to manage the functioning process of the hotel. Hilton Hotel Sydney has separate divisions such as the division of ownership to manage the stakeholders the time sharedvision which comprises almost forty-seven properties of 8,000 units. Also, the financial department and human resource management are kept separate to provide prominent emphasizes to both the departments for attaining improvement in the performance (Ansoffet al., 2018). There are separate managers who take care of each the departments to govern the entire policy of the organization and team leaders are selected for individual teams to take care of the performances of the individual employees. The theory of corporate governance in the case of Hilton Hotel also emphasizes the maintenance of Corporate ethics such as nonviolence organizational environment and nonracial and nonpartial gender discrimination in the organization.
It is concluded with the above assessment is that development strategy is important for any organization to govern its policy and attend market sustainability through improvement. Through the case study of Hilton Hotel Australia, it is concluded that strategic development helps the organization to not only maintain proper synchronization in the functioning process but also create more revenue for market sustainability.
· This organization needs to more customer policy social media marketing
· This hotel needs to incorporate more strategies in the Human Resource Department for prominent employment
· The organization also needs to maintain a proper organizational policy which combines the trade legislation for transparent trade policy
· Hilton further needs to develop certain engineering-based operations within so as to develop effective solutions to real-time reporting and tracking of each work thereby growing the overall performance of the staff.
Ansoff, H. I., Kipley, D., Lewis, A. O., Helm-Stevens, R., & Ansoff, R. (2018). Implanting strategic
Birkinshaw, J. (2016). Multinational corporate evolution and subsidiary development. Springer.
Broman, G. I., &Robèrt, K. H. (2017). A framework for strategic sustainable development. Journal of
Cleaner Production, 140, 17-31.
David, F. R., & David, F. R. (2016). Strategic management: A competitive advantage approach,
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Pearson,Durand, R., Grant, R. M., & Madsen, T. L. (2017). The expanding domain of strategic
management research and the quest for integration. Strategic Management Journal, 38(1), 4-16.
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