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Strategy

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| [Type the document subtitle] | | Hilton Hotel | | | |

Index Hilton Hotel 2 About Hilton Worldwide 3 Mission 3 Vision 3 Objectives 4 Market Position and Services 4 SWOT Analysis of Hilton Hotels 4 Strength 5 Weakness 5 Opportunity 5 Threats 6 Challenges 6 Internal and External Environment 7 PESTLE Analysis 7 Economic Environment 8 Legal Environment 8 Technological Environment 8 Social Environment 9 Political Environment 9 Porter’s five forces model for Hotel Hilton 9 Current strategies 10 Offering Future Strategies 13 Recommendation 15 References 15

Hilton Hotel

From Omaha to Rome there are about 500 Hilton Hotels located in between. Online transactions help in the development of Hilton Hotels. Among all hotels Hilton hotels are unique. In year 1919, in Cisco (Texas) Conrad Hilton bought first hotel. And this Hotel was inaugurated in year 1925 in Dallas which was named ‘Hilton’. In America during year 1943 Hilton hotels grown to first extensive hotels, this was situated for the facilities of industrial customers. Subsequently having huge development in their hotels, the owner of Hilton Hotels i.e. Conrad Hilton grown into the richest person around the whole world. Hilton hotels were operated outside America also. In Puerto Rico in year 1949 Hilton operated his 1st hotel outward of America. In year 1979 Conrad Hilton died and the whole business was owned by Barron Hilton (Hilton’s son). They opened around 500 new hotels in the whole world till year 2000. Organization of the hotels was involved in growth &controlling the hotels, licensing of lodging assets, ownership and in timeshare assets.
Hilton hotels are famous for presenting standard housings facilities even in the newest endpoints of any nation. They are also famous for delivering standard luxurious services and for their great reputation. Hilton Malta assurances to provide top accommodation facilities to their customers, these hotels are using advanced technologies for the comfort of their customers. Hilton hotels are universally famous for their HMBC. The management of both Hilton hotels and Port of San Diego are making strategies to build a word class hotel consisting about 1200 rooms next to the SDCC near beachfront. These hotels have designed their hotel premise and rooms in such a way keeping in view about all basic and essential needs of a consumer. These hotels are using advance technologies of keeping the records of their all customers; they are taking help of OnQ method. Hilton Hotels are famous in the whole world and suggests wide of 2700 standard hotels in America, Europe, Australia, Africa and United Kingdom. When the two famous person John Lennon and Yoko Ono played the song ‘In for Peace’ room no. 902 of Amsterdam Hilton hotel becomes well known.

About Hilton Worldwide

Hilton Worldwide is foremost universal generosity corporation, across the accommodation region from providing deluxe hotel facilities, average valued hotels and helps to lengthy-stay groups. Hilton Worldwide is continuously contributing best comforts, accommodations, facilities and significance to the vacation tourists and business sector since 90 years. The corporation is always loyal in their dealings. Their trademark includes at least 3400 hotels located in the 75 nations. Some of these hotels are Hilton, Home2 Suites and Homewood Suites by Hilton, Hilton Garden Inn, Hilton Grand Vacations, Hampton Suits and Inn, Waldorf Astoria Resorts and Hotels, Embassy Suites Hotels, Conrad Resorts and Doubletree hotels. The corporation organizes standard visitor’s prize program for the respect of Hilton.
Mission

The duty of Hilton Hotel is to develop into the frontrunner generosity field. Providing their employees reliable and featured training is very serious to this job. To solve all these types of troubles they had created Hilton University. Hilton University uses an online system which is available to all workers of Hilton.
Following are some programs which are contained in the duty of Hilton. 1) Improve the name of trademarks 2) Improve the knowledge about visitors 3) Take care of natural atmosphere 4) Involve all the workers 5) Help the society 6) Developing working efficiency 7) Support the business 8) Develop the design of infrastructure
Vision

The dream of Hilton Hotel is to become deluxe hotels for the sensitive tourists and forming the world where every person is happy. Hilton always provided their customer deluxe and standard quality services. Hilton has created very high reputation by running their activities through fashionable approach. Hilton always provides distinctive skill to their sensitive tourists. Hilton offers accommodation services to all i.e. to their customers and to their employees because they think that it is the actual luxury in the today’s life.
Objectives

Following are some goals of Hilton hotels which cover whole business strategies. 1) Expanding the business at higher level 2) How crucial the association and peoples toward the business 3) To have stable growth and development 4) Explanation of Hilton Trademark
Market Position and Services

Hilton hotels are frontrunner in the field of gaming and hotel business in the US. Hilton is unique and famous in the whole US and in the whole world. In the year 1999 Hilton makes a huge development by obtaining Doubletree hotels, Homewood Suites, Hampton Suites & Inn, Embassy Suites Hotels and Promus Hotel Corporation. Hilton Hotels are so developed that they are known in the whole word and is one of the best popular hotel business. Through gaining around 2006 Hilton International, Hilton has grown up to universal power by having at least 2800 hotels in about 80 nation of the world.
SWOT Analysis of Hilton Hotels

In the word ‘SWOT’, ‘S’ means Strength, ‘W’ means Weakness, ‘O’ means Opportunity and ‘T’ means Threats. SWOT study is a strategic tool. It includes identifying the goals of the business project and recognizing the external and internal issues that are positive and negative for attaining those goals.
The main objective of SWOT study is to recognize the external and internal issues which will help the business for attaining the overall goal.
Strength

1) Hilton Hotel Corporation is well expanded in the whole industry with the hotels in the great finish, trade and middle-valued programs in commodity mix. 2) HHC is well known association and business frontrunner in the field of gamming, generosity and guesthouses. 3) Hilton Hotel Corporation also holds strong combination structures such as possessing the corporations that produces its equipment and has capitalized in online booking travel businesses.
Weakness

1) Hilton Hotel Corporation might be in danger during time of recession in the whole world and on world-wide disasters that will limit the universal tourism like in case of major terrorist attack or bird-flu etc. 2) Hilton Hotel Corporation might be in danger tin case of employee’s walkouts and crash down on unrecognized employees in the United States.
Opportunity

1) Hilton Hotel Corporation must provide collection of unique and specific facilities to their high class visitors and high breakers likewise in Spas that focus in individual facilities, Marriage preparations & accommodations and Individual instructors. 2) Hilton Hotel Corporation must look to enlarge and keen on going to obtain a voyage line. 3) Hilton Hotel Corporation must watch and control on what is presently organized with the help of hired assets by the workers of the company. 4) Gaming actions would discharge guideline. 5) Take benefit of developing markets, particularly with commercial class and middle-valued markets

Threats

1) Hilton Hotel Corporation should be cautious not to strain its determinations to combine gaming and entertainment 2) Special effects in gaming sector and delay in credits will reduce the profit of the company. 3) 11th September was the date of major disappointment in the hotel businesses. A related incident cans consequence in some other disappointment.
Through understanding regional and national styles of the business, Hilton Hotel Corporation can take help of benefits of occasions that will empower the development while recognizing dangers that could affect the success and profitability. Progression in the field of generosity and hotel business will contains a constant attention on worldwide growth, gaming and taking help of all mass media to encourage their produces to possible consumers. One optional policy for Hilton hotels is to stress on the significance of their hotels, containing casino and gaming places. As Vegas has paid lots of money to fascinate tourists through adding children’s fascinations in addition by including old-fashioned nightclubs and discos for adult people. Arcade games are present in all most every Hotel. Still, some of the hotels have decorative game zones, arcades and day-care axes projected for the tourists and traveling with children. Hilton wants to confirm that they are correct in their theory of parents wandering with their children. However the attention can quiet be on great moneys that are thrown in the nightclubs and casinos by the tourists. The Hotels should have services accessible by them to fascinate the travelers to stop for more time in their hotels. As there are very larger demands for hotels and people get very few time periods to enjoy their holidays with their families, so considering all this Hilton hotels should take more and more advantage during this period.
Challenges

Hilton hotels are facing very large challenge about their “Esprit” policy. Hilton hotels think that their line executives have a vast job in knowing the principle of “Esprit”. Making a true education philosophy through the whole association is also one of the important contests for Hilton. 1) The hotel businesses are affected by lower request for resorts and hotels by the people belonging to lower income groups. This is because these people have very limited money to devote on their holidays and if there is increase in transportation cost or some other costs, then these people will be left with lesser amount to spend on further facilities. 2) During financial crises and at time of down market there is huge effect on every business. For instance Hilton hotel’s clients are usually business tourists and people from high-income groups, so there will be high effect on turnover of the hotel businesses during this time. 3) Definite actions, like eruption of infectious diseases, battles and actions of violence have undecorated effect on response from consumer sections. Through actions like eruption of Severe Acute Respiratory Syndrome, attack of Afghanistan, tsunami and 9/11 are some happening which have harmful impact on the hotel Industry.

2.3 TOWS Matrix
After introduction of SWOT analysis, one major problem persisted. It was not able to come up with adequate strategies applicable to the business. So some changes were made and another strategy named as TOWS matrix. In this, it compared the four traits i.e. strength, weakness, opportunity and threats in order to make some proper strategies for the group. Following TOWS matrix is made for the Hilton group-

| | Internal Factors | | | Strengths (S) | Weakness (W) | External Factors | Opportunities (O) | Location based competitive advantage | Prospect of franchising | | Threats (T) | Efficient HRM | Eco friendly hospitality |

Table 2: TOWS Matrix

Location based competitive advantage
Hilton hotels provide unique meeting, business and holiday services in all the main Airports, convention and City Centre. This is supplemented through the constant devotion to great morals of facility and classes– an obligation which will be identified via customers and therefore will raise the residence amount in the Hilton Hotel.

Efficient Human resource Management
Hilton hotel had revealed high importance in the growth of trained employees. Hilton hotel organizes and implemented various techniques, alertness program and teaching program to increase the standard of facility provided by their workers. It is fact that skilled and effective employees will helps in increasing the profit for the company and confirms consumer’s happiness.
Eco-friendly hospitality
The present styles of hospitality have improved to great level. Tourists and customers are looking for ecological hotel which can allow innovative market section for the Hilton Hotel. If Hilton hotel accepts the ecological hospitality approaches, then are capable to decrease their functioning expenditure and can attain economy of balance.
Prospect of Franchising
Hilton hotel are now gradually depending on the franchisee-based exemplary for development. This method allows the business to make incomes without acquiring any supplementary expenditure on buying of hotels and real estate. This policy additionally allows the business to focus on their determinations to construct their own strong trademark in place of purchasing real estate. Through learning local and national business drifts, Hilton Hotel is capable of earnings benefits of chances that will allow development though recognizing dangers which might affect productivity. Development in both hospitality and hotel business will contain a constant attention on taking help of all mass media, international growth and gaming to encourage the sale of their produces to every possible customer. Through operating their economic policies along with the operative facility of efficient employees, Hilton Hotel will be capable to reinforce their situation at the international level of hotel business.

3. Evaluation of strategic options
The task of finding adequate strategic plans for the Hilton group has been performed. There have been found four strategies for the group. Many types of analysis like SWOT, pestle, porter’s model etc were properly used to make some proper strategies for the group. Now the turn of next and another important step has come. It is evaluation of strategies under some set criteria i.e. suitability, acceptability and feasibility. * Suitability- This checks the appropriateness of the option for the company. The option must cover all the major issues of the group business. If it is not doing so, it means that it doesn’t suit the business actually. * Acceptability- It links to the financial results produced by the option. If the predictable results are agreed upon by the shareholders and other stakeholders, we can say that the option is acceptable, otherwise not. * Feasibility- It checks the implementation of the option. The company must possess adequate resources to implement the option in reality in a proper manner. Otherwise, the option is not feasible.
The group wants to become no. 1 in deluxe hotels all over the world. For this, they will have to attract more and more customers towards them. First strategy, i.e. location based competitive advantage will help in opening more hotels and attracting the residents towards them. Next option is to improve within the organization. Third option eco friendly hospitality is also going to attract new customers due to the eco friendly pattern of the hotels. Last option is to manage the ways to handle the hotels operation.
So overall, it can be concluded that the first and third option suits the business in a better way. They will be tested under the criteria in the following part- 1. Location based competitive advantage 2. Eco friendly hospitality 1.1 Suitability
Suitability as told earlier tells us that the option suits the business operation and the situations as well. The objectives and aims of the group must be achieved by implementing the strategy. The option suiting the conditions of working of the business is the best one. In this case, it can be seen that the objective of the group is to increase the business. Both the options will help in increasing the customers but first option seems to be easy and less risky way. It will help in making use of already built goodwill in the particular locations of the group. On the second hand, the second option will also lead to attract customers due to the care shown for the society by the hospitality but first option better suits.

ROBUSTNESS OF OPTIONS AGAINST STRATEGIC CHOICES – SUITABILITY

Strategic Option | Suitability in term of : | | Environment | Capability | Cultural fit | Location based competitive advantage | Using the favorable environment already set for the business in particular locations | Requirement of huge resources to build up new hotels | Will help in making use of the set cultures | Eco friendly hospitality | Showing concern for the environment and the society | More capital required than the first option. | Different types of cultures |

Table 3: Robustness of Options against strategic choices – Suitability

3.2 Acceptability
This option relates to the financial results, ratios and profitability of the business of the group. If the expected results of the option are desired, it can be said that the option is acceptable. Actually, it is the choice of stakeholders of the organization. So this option depends upon the stakeholders’ point of view. If in their point of view, the option is acceptable, then the discussion ends. Stakeholders include shareholders, government, creditors, employees, management etc.
In this case, first option is more chances to produce desired results than the second option. In second option, it is the risk that the customers won’t like the new style but the first option is going to exploit the already set goodwill to take advantage. So, first option is better acceptable to the stakeholders than the first option.

ROBUSTNESS OF OPTIONS AGAINST STRATEGIC CHOICES – ACCEPTABILITY

Criteria | Location based competitive advantage | Eco friendly hospitality | Return | | | Increase profitability | Increase profitability due to use of favorable conditions in new hotels | Incremental profits due to increase in no. of customers. | Cost benefit | Requirement of high capital | Going to incur a large cost due to change in style or pattern | Real Options | Increasing market share in set locations | Expand the customer base | Risks | | | Financial ratios | Increase in profits | Increase in profits |

Table 4: Robustness of Options against strategic choices - Acceptability

3.3 Feasibility
This is another criterion made to check the implementation of the option. Let us assume that the option is suitable as well as acceptable to the company. Now if the company doesn’t possess adequate funds to implement the strategy, what is the use of that. So the option must be capable of being implemented.
In the current case, the group is a well built hotel group and stood at a great rank in the hospitality industry. So there is no problem of resources but the second option will require huge funds as compared to the first option.
ROBUSTNESS OF OPTIONS AGAINST STRATEGIC CHOICES – FEASIBILITY

Criteria | Location based competitive advantage | Eco friendly hospitality | Financial feasibility | | | Resource deployment | | |
Table 5: Robustness of Options against strategic choices - Feasibility
EVALUATION OF RISKS IN STRATEGIC IMPLEMENTATION
As is clear from above discussion, we have chosen two strategic options out of all which are: location based competitive advantage and eco friendly hospitality. We also performed a suitability, acceptability and feasibility analysis for the two. But in order to decide which one is the best we need to take into consideration the risks which are associated with these options. It is required in order to know whether the benefits we are expecting by adopting a particular strategy are sufficient enough to overcome the risks which we will be facing in case we apply that particular strategy in business. If the risks associated are too high the strategy may not work as per expectation.
Location Based Strategic Advantage:
Under this strategic option HHC will be required to open more hotels and expand its network to all major cities, airports and convention. It will have to face the following risks: * Risk of terrorist attacks like that of world trade centre attack. * Huge capital outflow will be required so if the strategy does not produce desired results there will be a loss of capital. * It may be really tough to give competition to the already well established players in the non business class since Hilton has mainly operated in business class.
Eco Friendly Hospitality:
Under this strategic option HHC needs to follow more eco friendly methods of providing services and be careful about wastage of resources and harming the environment. Following risks can be there: * In order to be more nature friendly HHC might have to change its ways of providing facilities which might not be acceptable to customers who feel that the services do not match the high charges. * Maintaining the same quality for which HHC is well known may not be possible. * HHC may not be able to compete well with its competitors.
Recommendation

So a lot has been discussed now about the strategic options available with HHC, their pros and cons and impact on HHC’s business. After carrying out this detailed analysis it seems quite clear that the best strategic option for Hilton hotels is to go for location based strategic advantage. Hilton hotels are widely located and are spread up in all major areas. But it mainly operates for business class people. So there is a wide scope for Hilton hotels to expand its customer base by also entering into other than business segment. It can use its reputation which is there among business travelers in order to attract the other classes of customers. This will make Hilton hotels a commonly known brand. Hilton hotel is a well known brand in US. It is present worldwide but it is not that popular throughout the word because of its restricted area of providing services to business class only. In today’s world where tourism industry is rapidly growing and people are spending their leisure time in travelling there is a big scope in going for this strategy. Hilton can take this competitive advantage of its presence in all areas and leave behind its competitors. Hilton hotel should focus more on providing services in main Airports, convention and City Centre. Hilton hotel has to reinforce their situation at the international level of hotel business. Hilton hotel should put more emphasis in training the employees and the workforce. Since there is a difference in the kind of service to be provided for business class people and leisure travelers the employees also need to be trained differently. Hilton hotel should also emphasis on hiring employees from diverse culture because only then it will be able to take advantage of it’s widely spread hotel chain. Hilton hotel should put more focus on CSR. This is always a recommendation for every business since social responsibility is an equally important aspect of every business. A business which takes good care of this aspect always leads ahead of others. So this is also required that the Hilton hotels always remain active in the corporate social responsibility area.

Strategic Planning – Implementation

It can be clearly seen from the above discussion that a detailed analysis of the existing and the desired situation of the business have to be done in order to come out with a strategy which properly suits the business needs. But merely doing a theoretical analysis is not sufficient if the practical implementation of the strategy is not correct so implementing the strategy in the right way is a must to get the desired results from the strategy. In order to implement the above chosen strategy the following steps need to be taken: 1. Step 1: The first step is to form a team of experts who will work towards implementing the strategy. This team should contain a balance of all those experts in respective fields who are required for the purpose. 2. Step 2: Another team should also be formed especially for field work and survey should be conducted to know in which areas Hilton is well established and where the same is required. 3. Step 3: in order to reach the goal it is required that both the teams work in proper sync. 4. Step 4: A cost benefit analysis should be done so as to check that the benefits which the business will get after implementing the strategy are sufficient enough to cover the costs and deriving a profit. 5. Step 5: In this step it is to be made sure that the resources required for strategy implementation are available with business or can be made available without any problem. 6. Step 6: The next step is to verify at a comprehensive level the overall impact of implementing the strategy in all expected circumstances. It means the strategy should be implemented in such a way that it is beneficial in all situations and not just in the present situations. This is because business is very dynamic and what prevails today may not be the same tomorrow. 7. Step 7: The last step is to make sure that the strategy is not left unattended after implementation. Periodic revision is required to keep the strategy up to date. Only then it can be said that the strategy has been implemented properly.
So this was the strategy implementation process. The strategic planning is completed only when we reach a proper strategic option for the business and implement it successfully.…...

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...Confirming Pages PART 1 SA M PL E C H AP TE R Concepts and Techniques for Crafting and Executing Strategy tho29503_ch01_001-017.indd 1 12/10/12 4:52 PM Confirming Pages WHAT IS STRATEGY AND WHY IS IT IMPORTANT? AP Learning Objectives TE R CHAPTER 1 Learn what we mean by a company’s strategy. LO 2 Grasp the concept of a sustainable competitive advantage. LO 3 Develop an awareness of the four most basic strategic approaches for winning a sustainable competitive advantage. LO 4 Understand that a company’s strategy tends to evolve over time because of changing circumstances and ongoing management efforts to improve the company’s strategy. LO 5 Learn why it is important for a company to have a viable business model that outlines the company’s customer value proposition and its profit formula. LO 6 Learn the three tests of a winning strategy. M PL E C H LO 1 SA Strategy means making clear-cut choices about how to compete. Jack Welch  – Former CEO of General Electric If your firm’s strategy can be applied to any other firm, you don’t have a very good one. David J. Collis and Michael G. Rukstad  – Consultants and professors One must have strategies to execute dreams. Azim Premji  – CEO Wipro Technologies and one of the world’s richest people tho29503_ch01_001-017.indd 2 12/10/12 4:52 PM AP Many factors enter into a full explanation of a company’s performance, of course. Some come from the external environment; others are internal to the......

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...The Grand Strategy of the United States by R.D. Hooker, Jr. INSS Strategic Monograph Institute for National Strategic Studies National Defense University The Grand Strategy of the United States R.D. Hooker, Jr. INSS Strategic Monograph National Defense University Press Washington, D.C. October 2014 Opinions, conclusions, and recommendations expressed or implied within are solely those of the contributors and do not necessarily represent the views of the Defense Department or any other agency of the Federal Government. Cleared for public release; distribution unlimited. Portions of this work may be quoted or reprinted without permission, provided that a standard source credit line is included. NDU Press would appreciate a courtesy copy of reprints or reviews. Cover: President Barack Obama and Vice President Joe Biden meet with members of the National Security Council in the Situation Room of the White House hours before his national address, September 10, 2014 (The White House/Pete Souza) First printing, October 2014 Contents The Roots of American Grand Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 A Century Like No Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 The Ends of Grand Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 The Means of Grand Strategy. . . . . . . . . . . . . . . . . . . . . . . . . ...

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...Knowledge Objectives * central concepts in competitive strategy * strategy frameworks for internal and external analysis * key issues in competitive strategy formation and implementation Skill objectives * ability to apply the concepts and theoretical frameworks to real-life business cases * ability to analyse the sources of firm's competitive advantage * ability to understand how to sustain the competitive advantage over time * ability to analyse the industry structure and evolution, and appraise its influence on profitability * ability to understand how to develop firm's resources and capabilities LEARNING OUTCOMES By the end of this course, students will have developed a more complex and nuanced view of competitive strategy. In particular students will be able to: * decode the complexity of firms' internal and external environments in terms of the strategic concepts and frameworks * analyse and appraise firm's strategic positioning, resources and industry structure * recognise key challenges in strategic analysis, strategy formation and implementation * critically evaluate the implications of strategic decisions on firm boundaries, future opportunities, and competition The group presentations are available for anyone to watch. The link is: * www2.warwick.ac.uk/fac/soc/wbs/central/elearning/projects/strategy_analysis_and_practice * The password is: SAP What is Strategy? The choice of a future for the company......

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...Executing IP Strategy with ICM Process Implementation By Bruce Story, Senior Advisor, ipCapital Group Introduction: Background from Dow While leading Intellectual Capital Management (ICM) in the Plastics Business at The Dow Chemical Company, I witnessed the value of having a business-aligned IP strategy, implemented early in the development of a new technology platform. The difference between leaving IP development to the ad hoc process dependent on the initiative of the inventor and using IP strategy to guide R&D and new business development can be immense. The high performance elastomers business platform developed at Dow in the last decade is worth over a billion dollars. With the increasingly global competitive environment, this never would have been sustained without the implementation of an IP strategy that took into account the business strategy, competitors’ patenting strategies, the product value chain, and providing a closecoupling of actionable IP strategy to the R&D staff. Previously, as is common in many companies, the IP strategy was basically a legal strategy for obtaining patents. Dow’s attorneys were very good at getting patents granted. However, the disclosing of inventions was left to the initiative of the inventors who were often too busy with their projects to document their inventions. The “Inventor-of-the–Year” Award went to the inventor who received the most U.S. patents in the previous year. Quantity was being rewarded rather than IP...

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...IT Strategies? A Study on how organizations describe their IT Strategies. Masters Thesis in Business Administration (FED 006) Author Stephen Rupia Lyabandi Executive Summary Title: Do organizations have IT Strategies? A Study on how organizations describe their IT Strategies. Author: Stephen Rupia Lyabandi Tutor: Anders Hederstierna Problem: The research problem of this study is lack of insight on how organizations describe their IT strategies in relation to other strategies. IT strategy continues to be a major challenge for Information Technology intensive organizations and managers. Over the last two decades, the way researchers on information systems have viewed and analyzed IT strategy in organizational systems has not significantly been modified. Recent studies show that one of the main problems is that the concept of IT strategy has been around for nearly two decades and although many organizations have been using it, the meaning and reference of the idea remains elusive. Those who have attempted to define it have not reached an agreement. Purpose: The purpose of this study is to define the problem and explore whether organizations have IT strategies, and how these are describe in relation to other strategies. This research study also investigates how these organizations incorporate IT components into their strategies.......

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