course material

1. (Mt) – Implementation plan, Strategic Controls, and Contingency Plans
Environmental Scan Peaches Boland August 12, 2019 STR/581 Environmental scanning:
Environmental Scanning •The monitoring, assessing, and distribution of information from
the internal and external environment to key individuals within an organization or a
corporation (Babatunde & Adebisi, 2012) It includes •SWOT and •PESTLE analysis Creating
Value and Sustaining Competitive Advantage • Hilton creates value and competitive
professional staffs Providing quality services Effective inbound logistics Provision of high-
end hotels, full services, and budget friendly hotels Guest loyalty programs Hilton’s External
and General Environment P • Political Factors E • Economic factors S • Social factors T •
Technological factors L • Legal factors E • Environmental factors Political and Economic
factors Political factors Economic factors The United States experiences political stability
The political environment is very friendly and conducive The United States is among the
powerful economic stable nation globally. There is high level of business outsourcing
thereby speeding the economic development Increased investment in industries (Edwards,
2018) Social and the environmental Factors Fastest growing population in the USA and
globally The government emphasizes on recycling The need to be environmentally friendly
Legal and Technological factors Legal • Increase of minimum wage to $7.25 per hour •
Consumer protection regulations Technological factors • The use of the latest technology to
provide value to the customers. This includes: • The use of online payment methods, check-
in service, smartphone payments apps among others Opportunities and threats, which are
part of Hilton’s external environment include: Opportunities and Threats Opportunities
Innovation in client’s services Digitalizing and effective utilization of technology Threats
Competition Expanding in high potential global markets Hilton’s Industry Operating
Environment Threats of substitute services and products High Hilton’s Industry Operating
Environment Rivalry among existing firms High The threat to new entry Low Negotiatin g
power of Hilton’s vendors Low Negotiatio n power of customers High References •
Babatunde, B. O., & Adebisi, A. O. (2012). Strategic Environmental Scanning and
Organization Performance in a Competitive Business Environment. Economic Insights
Trends & Challenges, 64(1), 24–34. Retrieved from
http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=82669487&site=ehost-
live • Edwards, J. (2018). Mastering Strategic Management: 1st Canadian Edition. Retrieved
from https://opentextbc.ca/strategicmanagement/chapter/evaluating-the-general-
environment/ • Prasad, A., & Warrier, L. (2016). Mr. Porter and the New World of

2. Increasing Returns to Scale. Journal Of Management Research (09725814), 16(1), 3-15.. •
Rice, J. F. (2010). Adaptation Of Porter’s Five Forces Model To Risk Management. Defense
AR Journal, 17(3), 375-388. • The World Fact Book. (2019). North America: United States.
Retrieved from https://www.cia.gov/library/publications/the-world-
factbook/geos/us.html Strategic Evaluation: Hilton Worldwide Peaches Boland STR/581
the efficiency of a given strategy in attaining the company’s goals as well as taking
company’s strategic choice Business Level Strategies Business-level strategy is defined as a
variation in a company characteristics crucial to competitive failure or success within a
certain industry (Nandakumar, Ghobadian, & O’Regan, 2010) Business level strategies
details actions taken by an organization to Offer value to clients Acquire a competitive gain
four types of business- -level strategy should be
differentiation Differentiation is a strategy under which a company focuses on developing
and marketing distinct services and products for disparate client segments. Potential
businesslevel strategies should include In this case, Hilton Worldwide should use service
differentiation as its business level strategy Offering unique and quality services Therefore,
the company should differentiate its services by Maintaining an exemplary level of
standards Incorporating information technology in its various aspects of service provision
taken by an organization to acquire a competitive gain by managing and choosing a mix of
businesses competing in various pr
penetration Market development Product development Potential corporate strategies
categories like luxury hotel brands, full-
penetration- The corporation penetrates the market through advertising Global Level
adopts both differentiation and diversification strategies o Differentiation strategy will o
Enable the company to reach a wider market segment and offer a competitive gain through
provision of quality and high standard services and luxury stay suites o Diversification will
o Allow Hilton Worldwide to earn high profits particularly in profitable nations, with high
end- –7: Strategy
Evaluation and Control. Retrieved from
https://pdfs.semanticscholar.org/da79/9ee94187ea187
Hitt, M. A., Ireland, D., & Hoskisson, R. E. (2013). Strategic Managment (11th ed.). Retrieved
from
https://phoenix.vitalsource.com/#/books/9781305217188/cfi/6/2!/4/14/42/2/2/2/6@
tegy : How to Grow a Business by Diversifying

3. Successfully. London: Kogan Page. Retrieved from
http://search.ebscohost.com/login.aspx?direct=true&db=nlebk&AN=295344&site=ehost-
-level strategy and
performance: The moderating effects of environment and structure. Management Decision,
48(6), 907- -F. (2015). Product differentiation design under sequential
consumer choice process. International Journal of Production Research, 53(8), 2342–2364.
Worldwide hotels from 2013 to 2018, by geographical region. Retrieved from
https://www.statista.com/statistics/297754/number-of-hilton-worldwide-hotels-by-
geographical-region/ VALUES AND STRATEGY HILTON WORLDWIDE Peaches Boland
SKR/571 August 5, 2019 Introduction o Corporate Values ✓These are fundamental beliefs
that form a business behavior and offers the guiding principles used to govern a company
internal affair and association with the clients. o Corporate Strategy ✓This is the direction
that a company takes with an aim to accomplish long term business success. ✓This includes
a business focus on the need to adapt and anticipate any form of changes that may occur in
a business environment. Company Background o Hilton Worldwide ✓Is a conglomerate
American hospitality enterprise that govern and franchise a broad portfolio of hotel and
resorts. ✓The company was formerly Hilton Hotels Corporation established in May 1919 by
Conrad Hilton. ✓The company headquarters are in McLean, Virginia U.S. Hilton’s Strategic
Process Components Goal setting Evaluation and control Components of Strategy
Management Strategy implementation Strategy formulation Analysis How the Component
Work to Create Value o In the process of creating value, Hilton worldwide utilize the
strategic administration component to enhance ✓Setting clear visions and missions ✓
Perform analysis prior to the formulation of the organizational value strategy ✓Formulate
strategy based on the analysis findings ✓Allocating enough resources to promote strategy
execution ✓Delivering quality products that create value to the consumers Hilton’s Mission
and Vision o Mission ✓“To become the first choice for the guests, team members, and
owners alike and values, which are hospitality, integrity, leadership, teamwork, and
ownership.” o Vision ✓“Is to fill the earth with the light and warmth of hospitality.” Hilton’s
Motivation, Innovation and People o Motivation ✓Creating an environment that improves
collaboration, engagement and focuses on creating value for the consumers. o Innovation ✓
Focus on delivering unique and world-class hospitality services o People ✓Upholding a
brand’s standing and value that deliver a globally recognized hospitality experience. Role of
Ethics in Hilton’s Strategy o Hilton Ethics ✓The company ethics are enshrined in the code of
conduct that stimulates the corporate strategy. o Role of Ethics in Hilton’s Strategy ✓Laying
out rules for employee behavior ✓Provides the foundation for a preemptive ✓Promote
consistency in the behavior. Role CSR in Hilton’s Strategy o Corporate Responsibility ✓
Support growth and launch of worldwide industry goals “for youth, water, carbon and
human right, Anti-trafficking training across all brands, Support non-profit organization”. o
Role of CSR ✓Increased workers loyalty and retention ✓Increase customer loyalty ✓
Increased reputation and brand image How Ethics and CSR Direct their Strategy o Ethics
and CSR direct Hilton’s strategy by ✓Aligning the company’s strategy with the overall goals
and objective ✓Recognize issue that matter to the consumers ✓Promote the realization of

4. the corporate bottom line Reference List Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2015).
Strategic management competitiveness & globalization (11th ed.). Retrieved from The
University of Phoenix eBook Collection database Keinert, C. (2008). Corporate Social
Responsibility As an International Strategy. Heidelberg: Physica. Williams, K. (2009).
Strategic Management. New York, N.Y: DK. INTERNAL ENVIRONMENTAL ANALYSIS
HILTON WORLDWIDE PEACHES BOLAND SKR/581 AUGUST 19, 2019 INTRODUCTION •
For a company to succeed in its strategy, realistic evaluation of both internal resources and
capabilities should be a high priority. • The internal analysis involves identifying the
strengths and weaknesses and creating means to build on the strengths and overcome the
weaknesses. • Unlike external environmental analysis, which aims to identify opportunities
and threats, internal environment analysis seeks to identify the strengths and weakness in
the firm. • “By analyzing its internal organization, a firm determines what it can do.
Matching what a firm can do (a function of its resources, capabilities, and core competencies
in the internal organization) with what it might do (a function of opportunities and threats
in the external environment) is a process that yields insights the firm requires to select its
strategies.” (Hitt, Ireland, & Hoskisson, 2013, ) INTERNAL ENVIRONMENT • Hilton
Worldwide is one of the leading hospitality organizations today. • The company has several
strengths that not only help in managing its market share but also help the company in new
market penetration. • Promotes training and learning programs that are meant to improve
employee skills. • The company has a great customer relationship. • A strong brand
portfolio • Excellent marketing strategies for its products. • The company is faced by
weaknesses that have affected its performance. INT E RNA L E NV IRONM E NT CONT.’ • A
strategy is based on making choices, and in such case, the company can improve on the
weaknesses.. • High inventory compared to the competitors. • Financial planning is not
done efficiently. • High attrition rate as compared to its competitors. • The company only
merges with companies that have a similar culture. E S S E NT IA L S T RE NGT H S A ND W E
A KNE S S E S S treng ths • high customer satisfaction • training and learning programs for
its employees, and • top marketing strategies for its products. • Resources are crucial
components of an organization’s competitive advantage. Wea knesses • High inventory
compared to the competitors. • Financial planning is not done efficiently. • The company is
driven by quality, innovation, and success. • The company has trained and competent staff
that has driven the company’s success. A S S E S S M E NT OF THE ORGA NIZAT ION’S RE S
OU RCE S • The company has modern equipment, facilities, and approaches on how to
manage their business. • Efficient services such as high internet speed connections and
systems for data management hence promoting security for the customers. • Customers can
assess packages through online platforms, thus saving time and money. • Through the use of
a competency model in operation strategy development, the company has been able to meet
its strategic goals and earned higher profits. • However, the company need to adopt
operational strategies to reduce operating costs and streamline processes. IM P ORTA NT
INT E RNA L E NV IRONM E NTA L FACTORS • The most important internal environmental
factors of the analysis are the strengths, which include; • strategies for marketing the
products, • customer satisfaction (Ishizaka et al., 2019). • training and development
programs, and • a strong brand portfolio. E X T E RNA L E NV IRONM E NT S • The

5. opportunities include a low inflation rate which will create stability in the market, •
Opening new markets due to an agreement with the government,. • an increase of online
customers which will open new sales for the company, and • stable cash to enable the
company makes more investments. COM P E T ITOR A NA LYS IS • The company is
experiencing competition in the hospitality industry. • Major competitors are Hyatt, Marriot
International, and Choice Hotels (Bruner & Vakharia, 2017). • Hyatt is one of Hilton’s
primary competitor. • The company makes a revenue of -52.83% of Hilton’s income. •
Marriott is another top competitor which generates $29.4B more income than Hilton. • The
other top competitor is Choice Hotels, which produces $9.7B more revenue
https://www.hilton.com/en/corporate/ The structure of the organization is hierarchical
because of the immense business size. S T RU CT U RE OF H ILTON WORL DW IDE A ND T H
E INF L U E NCE T H IS H A S ON IT S P E RF ORM A NCE In 2015 the company comprised of
13 brands serving 140 million guests. The company’s structure determines the
responsibilities of each department and provides adequate services to the customers
without confusion. T H E ORGA NIZAT ION’S COM P E T IT IV E P OS IT ION A ND T H E P OS
S IB IL IT IE S • Hilton has a total of 169, 000 employees, and among the top competitors, the
company is in the second position https://www.hilton.com/en/corporate/. • This indicates
that the company can grow and be competitive in the future if it maintains the same spirit,
improve on the strengths, and then develop strategies that promote growth (Krupskyi et al.,
2019). REFERENCES • Bruner, R. F., & Vakharia, S. (2017). The Hilton-ITT Wars. Darden
Business Publishing Cases. • Ishizaka, A., Quintano, A., Labib, A., & Apostolakis, A. (2019). Do
five-star hotel managers know their customers’ priorities? An AHP-Prioritised scorecard
study. EuroMed Journal of Business. • Hilton International Holding LLC Website:
https://www.hilton.com/en/corporate/ • Hitt, M. A., Ireland, D., & Hoskisson, R. E. (2013).
Strategic Managment (11th ed.). Retrieved from
https://phoenix.vitalsource.com/#/books/9781305217188/cfi/6/2!/4/14/42/2/2/2/6@
0:1 00. • Krupskyi, O. P., Dzhusov, O., Meshko, N., Britchenko, I., & Prytykin, A. (2019). Key
sources when formulating competitive advantages for hotel chains. Turizam: međunarodni
znanstveno-stručni časopis, 67(1), 34-46.