Hospitality and hospitality management

Hospitality and cordial reception forethoughtThe amaze of this paper is to critically review the nature of cordial reception and cordial reception heed that Hilton planetary adapted. In view of this it is to be expected that comp death whitethorn range from the view at one end of the continuum that this is a dish out of unnecessary nonsense which unless suffices to conf mapping the issues push, to that which sees this exercise as a stimulating and liberating contribution at the opposite. The views expressed in the paper beneathstandably raise just about signifi bathroomt issues and questions which Hilton man datement take aways to be turn to such(prenominal) fully in the incoming tense. The challenge to the conventional wisdom mettlesome gearlights both the identity and parameter issues related to the nature and scope of what should be by rights regarded as hospitality and hospitality centering. This, in turn, poses some fundamental military rank concernin g the nearly appropriate orientation and prior(prenominal)ities for both hospitality and hospitality management research and practice for Hilton.Counted Words 4ccComp both OverviewHilton Worldwide previously cognise as Hilton Hotels Corporation is a prevailing hospitality comp whatever set cosmeawide. The stream formation signifies the companys orbicular occupation reach and strategies the logo denitrifies the hotels cockeyed heritage and set and excellence in service (Hilton Worldwide, 2009).The companys vision is to study the earth with light and warmth of hospitality and the mission is to be the global hospitality company be the first excerption for the guests, employee and owners a the like (Hilton Worldwide, 2009).The values of Hilton existencewide is embosses inside the name itself which beH (hospitality) drop outing groovy hospitality experienceI (integrity) always do the right thingL (leadership) prominent leader in key byplay argonas and communalitie sT (teamwork) succeeder is the combination of teamwork in e truly(prenominal)(prenominal)thing it doesO (ownership) owner of transaction actions and decisionsN (now) forge in terms of urgency and disciplineHilton world-wide consists of 10 brands includes oft than 3ccc hotels in 77 countries as of today and is planning to airfoil 300 in coming days. All of these hotels are either operated by cut off or wholly owned by Hilton. Management body is headed by a chairman and CEO, the company is divided into 4 global regions America, Europe, put East Africa, and Asia Pacific (Hilton Worldwide, 2009).External analyseMacro Environmental (PESTE) Analysis)A PESTE Analysis is an analysis of extraneous macro- environmental federal agent that affects tights patronage. PESTE is an acronym for Political, Economic, Social, Technological and Environmental issues that influences the strategical development of a business. These issues are diametric in different locations and and so business faithfuls whitethorn adopt different strategies in different countries where it ope range to discern the business opportunities as hygienic as threats. This assessment task would determine the worldwide schema of Hilton (King, 1995).PoliticalPolitical m all overs include political science rules, regulations and sound issues under which the devoted essential operate and adhere (Nailon, 1982)(Wood, 1994). The issues discussed are environmental regulation and protection, political stability, corporate and con comeer measureation, framework for contract en blackmailment, intellectual proportion protection, trade regulations, trading furnishs, anti-trust laws, pricing, mandatory employee benefits, industrial safety regulations, ware labeling requirements, competitor regulation etc (Edgar and Umbreit, 1988).The political movement can have definite effectuate on hotel business in UK. For example, if government set a rules under 18 days patrons mustiness be accomp anied with parents or guardians, it may result the decrease of young visitors. Imposing uplifted goods and service levy (GST) or similar taxes would pr unconstipatedt to a greater extent raft to visit the hotel more oft. By loosing these electric potential nodes, Hilton may loose income and may need development products and go to recover losses. Though Hilton assorts are committed to use luxuriously scale safety standards, UK government rules may non give license to operate business due to safety reason (like hill, misfortunate trickery areas) level(p) though there may have choice if business in sit togethering (Middleton, 1983). If the government plans to subsidies some of the service it suffers (e.g. for disabled or of age(p) citizens), the hotel may gain networks as well as sum up services. Thus political actions may have both negative and coercive impact on hotel business (Edgar and Umbreit, 1988) (Hilton Worldwide, 2009).EconomicEconomic portions positivel y set up hospitality business. It determines how easy or difficult to sustain in a business a immense with capital, comprise, demand, monetary policy, unemployment rates, exchange rates of foreign currencies, tax on exchanges (Wood, 1994). When economic appendage is high, consumers income level raises thus demand for hospitality will growth too. Since the recent economic recession started, hospitality business was hit givingly and it is yet to recover from the losses incurred. Increase of rates would prevent hotelier to attempt for alternative choices (e.g. budget hotel or even home stopover). In UK, hotel accommodation prices are extremely high than any other countries somewhat the world. Consumers income level didnt rise up much and they knock off the stringent budget allocation for daily needs. Very few plurality will cover spending holidays in luxurious hotels if they dont afford to. A higher(prenominal) income or wages will allow domestic traveler to get high phratr y hospitality in high class hotels (King, 1995).SocialSocial factors are income level, demographics, geographies, life style, education, weather, gardening and fashions (Wood, 1994). Social factors can be both opportunities and threats for a hospitality business (Lewis, 1988). Different age or sex of people would require different services (Slattery, 1983). older people demand is not similar to young people. Business people will prove to have more work related facilities (e.g. internet, word-painting conference) while holiday makers would seek more natural touch (e.g. garden, fishing) (Burgess, 1982). cultural differences are a major play in hospitality business. spot local people like crowd and gossip, tourist would seek for change intensity and silent place as they plan holiday. Season is likewise an of the essence(p) factor (Middleton, 1983). Year end and holiday season are eyeshade sentence for hotel business while therere not much crowd during work days or off-peak s eason. Most travelers are affected by bad weather and usually dont think for leisure during extreme either checker peculiarly in winter season (Edgar and Umbreit, 1988).TechnologicalThis is the century of engineering science enhancement. So does business. Aggressive development of technological factors brought rapid growth for hotel business (Slattery, 1983). The factors may include spend on technological research government effort focus assiduity based engine room, mod-fashioned invention and their impacts, communicating alternatives, speed of technology transfer, cost of usage, rate of technological diffusion. New technology could prove a useful input in hospitality business but it has to established with purchase and installment cost along with genteelness to employees (King, 1995).Hiltons business will most(prenominal)ly depend on technological factors. Customers from about the world is now able to evaluate the products and services provided by Hilton through with(pre dicate) the respective websites, compare prices, seek advice and even can reserve a facility as early as one year prior to arrival. Hilton group itself placed much effort to keep the website simple and exploiter friendly so that visitor will not feel hindrance to find any available information. Any latest service or products can reach to millions of clients through the website or communications (Reuland, Choudry, and Fagel, 1985). Providing details of every facilities Hilton placed itself to the top choice of any search engines. Traveler from any part of the world can communicate in real condemnation with Hilton representative and made their choices, payments etc (Burgess, 1982).Besides for in-hotel node, Hilton offers state-of-the art high speed wireless, picture communications, and teleconferencing, to keep guests always in touch with outside world. These services standard a bug thumbs up since it was premised and continuously keep enhancing technology to stay onward in b usiness (Edgar and Umbreit, 1988).EnvironmentalEnvironmental factors have been carryed meaning(a) factors for large cheeks which particularly operated worldwide (Wood, 1994). This factor includes environmental accountability, improvement of cognitive operation towards sustainable time to come, guest and team commitment to environments, reuse and recycle materials etc (Khan and Olsen, 1988).Hilton hotels recognizes their responsibility by embracing environmental mission includes all members under its group to focus on brawn water efficiency, CO2 reduction, waste management, re newbornable energy. It take environment friendly initiatives which will impact guests positively, influence use of resources in harmony with nature by promoting the use of best environment sociable practices, supports local environment policies (Middleton, 1983).As of present days, Hilton promised to reduce energy outgo, CO2 emissions and waste output by 20% and water consumption by 10%. These steps fr ontwards will place the degraded in lead position and will increase spirit by means.Industry Dynamic (Porters 5 Force) AnalysisPorters model determines the competitiveness of an organization using the five different forces and shows how the forces are related. To develop business strategies effectively, organizations must understand and act in response to those forces. (Porter, 1985) challenger Among Existing Competitors warlike rivalry analysis is one of the key areas that business must consider to determine business strategy that firm must adopt and carry out continuously over time (Wood, 1994) (Porter, 1985). The hotel business now days are very much competitive. With millions of tourist travels every year, luxurious hotel is the first choice for most tourists. Having numerous competitors in market place (e.g. inter continental, best western) the contestation betwixt players are intense (Burgess, 1982). For example, British consumers are give tongue to to having higher buy ing powers thus will seek for high end luxuries. That whole shebang behind the reason why companies constantly compete for better products and gentle prices. In order to be leader is luxurious market, Hilton has to offer uncomparable offers (E.g Park and fly with up to 8 days airport parking, supreme spa journey with six senses spa in London). This force is in promote of Hilton. bane of New EntrantsThreat of new entrants may consider the ease of new entry, competitive advantages, place and positions, clients, government support etc (Porter, 1985). To open a new luxurious hotel by other firm in UK would be quite difficult since there are huge regulations and rules enforce by governments. UK government chooses to advise the existing hotels to improve their business quite than consider letting bring new competitors. Besides, consumer now days doesnt seek much luxurious hotel rather they would prefer budget hotel. Thus new entry to comfy hotel business is not deep (Nailon, 1982) . This force is in favor of Hilton.Threat of Substitute Product and ServicesThis force is said to have much influence in Hilton business strategy in recent years. There force includes factors such as product for product substation, need, facilities, budget etc (Reuland, Choudry, and Fagel, 1985)(Porter, 1985). Hilton not only requires looking after new entrants as threat but also substituted product and service as a major threat. When there is matter of hospitality, its consumers choice what they chose to take. For example, a water bottle in Hiltons caf may cost few more pounds which is cheap dependable the opposite side grocery shop. A lavishness spa may cost few hundreds of pounds which may be proven cheapest for similar smorgasbord in other dedicated spa shops. For one night stopper, hind end packers and Hilton doesnt have any special prices which usually find their way in budget hotel. These type of consumers seems to be become a huge cadence at the end as budget hotel is b ooming every where around the world. Hilton came up with idea of including a theme park in hotels without considering that some areas may already have amusement park which provide same(p) services as they plan often in cheap price. This force is against Hilton (Burgess, 1982).Bargaining Power of BuyersThis force consists of high income, large service provider, low transmutation cost etc (Porter, 1985). Before economic recession, consumers were having high incomes and seek more luxuries. As there are choices available in the market, Hilton has to react very quickly to retain customer intention to be their choice of providing world class hospitality in possible lowest price (Lewis, 1988). Todays buyers are most dynamic and well motivated requires more concentration on their needs . Hilton would have to avoid what they think about customer instead they should identify what consumers think about Hilton. Consumers will definitely seek most affordable having all facilities they required and so, hospitality firms have to struggle of adopts the new trends, lifestyle as quickly as possible to offer their allegiant customers (Slattery, 1983). This force is against Hilton.Bargaining power of suppliersThis force may include switching cost, high purchase cost etc (Porter, 1985). Raw material suppliers play an strategic role in firms business growth (Tideman, 1983). A foodstuff supplier may not offer todays price tomorrow due of add together shortage (Middleton, 1983). Thus to offer catering to guest, Hilton has to purchase the same stuffs in higher prices which will be sum of large amounts of money (Burgess, 1982). If this particular(a) money is to be imposed on guests, this would result Hilton loosing business. Besides, switching to another supplier would be a difficult choice too (Edgar and Umbreit, 1988). For example, Hilton has hire a transportation Company to ferry its guest everywhere they go. Considering, high demand of transportation business offers high pri ce, Hilton has to pay high prices than habitual to retain transportation facilities in operation. This force is not in favor of Hilton (Khan and Olsen, 1988).From the above analysis of Hiltons 5 forces analysis, the diagram below will provide a summary of the firms overall industry analysis.Porters 5 force analysis talks about the external forces applicable to the outside of business. Todays business is much more vast and robust requiring dynamic approaches which should be an integration of different approaches rather than depends on a single analysis (Porter, 1985). Internal factor analysis requires much analysis as external. Designing, visioning and learning approaches should be considered when an industry analysis is done. Porters 5 forces are lack of these factors. (Jones, 1996)Bargaining Power of Buyers(-)Threat of Substitute Products and Services(-)Bargaining Power of Buyers(-)Threat of New Entrants(+)Rivalry among existing competitors(+)External Factor Evaluation (EFE) Matri xExternal factor evaluation a strategic tool used for analyze the contemporary business strategy. External factors consider the opportunities and threats that a business or firm may verbalism. These factors are fast related to PESTE analysis.Developing EFE ground substance is chiefly easy in mathematical term. The first step is to gather external factors for opportunities and threats. Next, assign weight to each factor. The weight should be between 1 to 100 (0 means the factor has no value, 1 is most prestigious and 100 means most critical). All weights at the end must be sum to 100. Then, rate of factors is necessary. Rate indicates how responsive the firm is towards the factors military rank usually be done between 1 to 4 (1 = low response 2= below average, 3= above average, 4 = luxuriant response). Next, multiply each factor weight its ratings resulting weighted score. Lastly, thorough sum of all weighted score will determine the EFE of the firm.For Hiltons Worldwide we ight unit Rating Weighted ScoreThreatsEconomic recession 20% 4 0.80Government Tax 10% 2 0.20Low cost hospitality 15% 4 0.60Price change of raw materials 8% 2 0.16OpportunitiesStrategic location 10% 1 0.10High hospitality in low price 7% 2 0.14Awarding loyal customer 15% 2 0.30Associate with other business 15% 3 0.45Total weighted score 100% 2.75The weighted score 2.75 indicates that Hilton has the high ability to response to external factors (value below 2.50 indicates lower response).Internal AuditValue Chain ActivitiesInternal Quality of ServiceTo sustain in this high competitive market Hilton has to maintain strict internal gauge of service (Lewis, 1988). Employees are trained in preparation center to face any kind of difficulty to see the harmony in hospitality business. Up to date information are distributed in a molybdenum when new decision are made (Burgess, 1982).Employee SatisfactionProper mental attitude of employer towards the employee in Hilton has been recognized a s one of the important factors of company growth which is reflected in their high flavour of services to customers. All employees are closely monitored to ensure they dont feel trouble in both on and off-duty (Edgar and Umbreit, 1988).Employee faithfulnessHilton has always come up with the issue to retain their talented hosts to serve guests. Employee has been attached extensive facilities and almost 95% employees are proven to be loyal to Hilton groups. Reallocation of task brought diversification to employees and influence them grow their race in first class hospitality business (Edgar and Umbreit, 1988).External quality of ServiceHilton is said to be one of to best strategic partner other companies would love be part of. From airlines to travel agencies, Hilton has maintained a good chin of network to reach to any part of the world virtually (Hilton Worldwide, 2009).Customer SatisfactionConsumers in hospitality business seek high quality personnel and dedicated guest services (Tideman, 1983). Since adopting high range hospitality strategy, Hiltons focus always has been in its superior client service. From Beijing to Sydney, From New York to Paris, consumer satisfaction has been always taken care of provided with culture and life style mix (Khan and Olsen, 1988).Customer LoyaltyThe company also manages the world-class guest reward program HHonors. HHonors branding enables their hospitality brands to pull ahead build their distinguishing identities and the strong value proposition of the HHonors program through customer loyalty (Pfeifer, 1983). Customer loyalty is yet to get the desired outputs since it is not too long it was representd (Edgar and Umbreit, 1988).Higher IncomeSo thus, having values in hand, Hilton has no way to slip from business. It has been growing over time. Despite having hard time during recent economic recession, Hiltons business is said to be growing further up with expansion plan to build up to 300 hotels worldwide (Burgess, 1982 ).Internal Factor Evaluation (IFI)Internal factors consider the strength and helplessness that a business or firm may face.Developing IFE matrix is similar to EFE matrix that has been done is page 7. The first step is to gather external factors for opportunities and threats. Next, assign weight to each factor. The weight should be between 1 to 100 (0 means the factor has no value, 1 is most influential and 100 means most critical). All weights at the end must be sum to 100. Then, rate of factors is necessary. Rate indicates how responsive the firm is towards the factors Rating usually be done between 1 to 4 (1 = major weakness 2= minor weakness, 3= minor strength, 4 = major strength). Next, multiply each factor weight its ratings resulting weighted score. Lastly, total sum of all weighted score will determine the IFE of the firm.For Hiltons WorldwideWeight Rating Weighted ScoreStrengthGood reputation 17% 4 0.68Large hotel chain 20% 3 0.60Well-built management team 16% 3 0.48Wide ra nge of services 14% 2 0.28WeaknessNot for all consumer 10% 1 0.10 dear(predicate) 10 % 1 0.10Poor customer service 8% 2 0.16Slow growth in change of demand 5% 2 0.10Total weighted score 100% 2.50The weighted score 2.5 indicates that Hilton has the plebeian response to internal factors.Strategic Plan for Next 3 ageTOWS MatrixStrength-Opportunities StrategiesHilton hotels have a good reputation in hospitality business and a large amount of customer chain. Introducing low cost packages for travelers will means a true hospitality to the existing customer as well as for new customers (Slattery, 1983). Hiltons wide range of services may be available to people of all income level (Edgar and Umbreit, 1988).Strength-Threat Strategies keep back the talented and well managed employees for a smoother business in future could be proven vital (Pfeifer, 1983). Hilton should ways perform task variation, and frequent conversation will all employees to prevent dispute. Employee may be shifted to planetary chains to gain experience so that they would be loyal to the firm (Burgess, 1982).Weakness-Opportunity StrategiesHigh hospitality in low price is definitely a go ahead step Hilton could adopt to overcome its weakness (King, 1995). now that, market is been volatile, Hilton may consider leaving high scale profit to high range of customer levels to make its facilities open to all customers (Pfeifer, 1983). For example, golf game course facility should be opened to all hotel guests not only for guest who additionally buy the facility. Hilton may not loose much amount of money but it would be proven a customer oriented approach (Jones, 1996).Weakness-Threats StrategiesPoor customer service has been shouted long as major drawbacks for Hilton hotels. Sometimes customer has been given something that is not communicate for and has been charged for that said services (Middleton, 1983). Price structure very often is not described to customer before offering thus it brings confusion . In hotel customer services is very crucial to maintain in very high level at always and customer must get the price focus than anything else (Lewis, 1988) (Reuland, Choudry, and Fagel, 1985).SMART Objectives (Specific, mensural, realizable, Relevant, Time-framed)SMART objectives refer to an acronym for five measures of well business growth plan. Often these measures are used to define firms objectives and future goals and evaluation of growth plan.Specific (What to do? For who? With whom)Any growth strategy should be specific and sealed. Confusion on goals will bring forked results which may prove fatal for a hospitality business like Hiltons. Well specified business goals, responsible resources, affected peoples, impact on the firms business should be well defined in this stage (Burgess, 1982).Measurable (Is measurable? How to measure?)Of course, once the growth plan and objectives are specified, a certain quantity or quality must be assign to determine the success or failur e of the process (Pfeifer, 1983). As an example, for future expansion, Hilton plans to open 300 new hotels in near years. 300 is a measurable amount. So then, if the actual success rate is only 200 hotels, it can be said that, the plan didnt succeed fully (Khan and Olsen, 1988).Achievable (Can it be done within the resource available?)Future growth depends upon many aspects specially political, economical and social aspects. If a sudden increase of raw material price, construction of 300 hotels may not be possible within the said budget. Re- calculation might predict a lower scale of growth size (Jones, 1996).Relevant (Does this step lead to expected outcome?)Once achievable measurement are defined, Hilton must consider whether getting 300 more hotels would be viable specially consider the recent economic downturn. In some places, consumer may not afford to get Hiltons service especially poor developed where touristry sectors are not blooming, possible action a high scale hotel m ay not provide desired output (Edgar and Umbreit, 1988).Time-Framed (How much time need to get the objectives done?)Time is a very important factor for any objectives to be proven very profitable or even failure. Timely decision and timely implementation is the crucial mixture of time-frame (Pfeifer, 1983). For any growth strategy, Hilton must choose the right time to go ahead and put a hold when the time is not right (Taylor and Edgar, 1996). When demand competition is high, Hilton may offer lower price for customers which may includes queer packages for a limited time (Khan and Olsen, 1988).4.3 Ansoffs growth and Contingency MatrixThe Ansoff Growth matrix is a strategic counselor tool that helps businesses decides their strategies for growth. Ansoffs product/market growth matrix discuss about the strategies on which the business deliver new or present-day(prenominal) products in new or authoritative markets (Tideman, 1983). Overall output of Ansoff product/market matrix is se ts of strategies that set the direction for the business growth. These are described belowhttp//strategyiseverywhere.files.wordpress.com/2007/12/ansoff_matrix.pngMarket shrewdnessMarket penetration is a general name of selling current products into current markets. Hilton should continuously introduce new products and service to customers to leap ahead (Jones, 1996) (Reuland, Choudry, and Fagel, 1985). Since the hotels most incomes come from hospitality facility, reshape of current products will ensure market growth and increase of demands by existing customers (Burgess, 1982). Market penetration for Hilton will be focused on the central markets that it is very old(prenominal) with, competitors are known, customer needs are defined and returns are potential (King, 1995).Market developmentMarket development tells about the distribution of current products in new market. With its existing facilities, the hotel may introduce private hospitality for the customers who love face-to-fac e luxury (Taylor and Edgar, 1996). A possible example could be provide terrace houses for high end customers with dedicated services (e.g. personal driver, personal chef etc). (Lewis, 1988)Product developmentProduct development is the name given to a growth strategy where a business aims to introduce new products into existing markets (Reuland, Choudry, and Fagel, 1985). Customer lifestyle has been changed dramatically in recent years so does demands (Jones, 1996). New generation customers wants champagne instead of coffee. Thus opening of new products with unique style will remind the customers that Hilton cares what customer wants (Edgar and Umbreit, 1988).variegationDistribution of new products in new markets is risky. Only in certain aspects large organization does adopt this. However, it can be proven a major milestone in firms business if diversity has been done and succeed. self-importance service kiosk is a new service recently introduce in Hilton hotels (Burgess, 1982). Mos t consumers still prefer to use traditional over the counter facilities to get the process done manually or pick up special request (Taylor and Edgar, 1996). New expansion business should not introduce directly this self service facility. First customer should have provided training or information about the usage of system in new market. Else, this step would be proven as a disappointment (Jones, 1996). resultantHilton International, the worlds best known hotel brand, has triumphed at the prestigious UK National Business Awards for a second year by winning the coveted Broadsystem Customer guidance Award 2005. The judges awarded Hilton Best Customer Focus for demonstrating it has the customer at the heart of its business and deploys and manages its resources to most effectively meet the needs of its customer base.Creative market agency, campaign works, has supported Hiltons new brand strategy. The next phase saw the development of innovative internal and external marketing tools t hat communicated and delivered the brand strategy throughout the organization and to the customer. The strategy led to outstanding success for Hilton International with significant commercial returns. However, like any other company, Hilton still has room to improve further (Burgess, 1982).