The organization chosen for the study “Strategic Human Resources Planning for Hilton Hotel” is Hilton hotel in the USA which one of the world’s leading hotels in the country. SWOT analysis of the company provides an in-depth analysis of the company’s business structures and operations…
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It helps to identify the problems and issues which impacts on the organization and determine its competitive position in the industry. Strengths The strength of the company lies in its vast international presence. The main presence of the company is felt in Europe and USA. However, its operations are spread across almost all nations including China, India, Japan, Germany etc. One of the main strengths of the hotel is that it is well diversified in terms of the services it offers. Its services range from high-end services to middle and low-end product mix (Hilton Hotels and Resorts, 2011). Moreover, it also possesses the additional strength of having solid integration features, such as having ownership of companies which manufactures products and furniture for the company or even invests in its online travel reservation enterprises (Hilton Hotels and Resorts, 2011). Weaknesses The hotel was greatly impacted by the economic and financial downturn. It remains highly vulnerable to the downturn happening in the global economy or other catastrophes which could limit its global operations. The financial downturn was one of the main reasons why Hilton Hotels was caused to move headquarters to the D. C. Area with the aim to cut down costs. This has also resulted in high employee turnovers in the organization (Rosenwald, 2009). The Hilton hotel in the USA can also be vulnerable to the worker’s strikes and cracking down on the undocumented workers in the country. This is because the majority of the holdings of the organization are based in the US. Opportunities The quick technology changes and changing landscape has been enhancing demands for hotels in the world. Consumer demands rise having to push forth for the growth of hotels which appears as a favorable opportunity for the organization to explore. According to the Smith Travel Research (STR), the USA hotels are projected to see an increase in the performance indicators in terms of occupancy and average daily rates. Occupancy rates were projected to be 58.5% in 2011 while average daily rates are projected to be increased from 4.2% to the US $102.21. The following figure would reflect the occupancy rates and the ADR rate increases since 2004 till 2011 (Travel Media Group, 2011). Figure 1: Occupancy Rates, 2004-2011 (Source: Travel Media Group, 2011) Figure 2: ADR (Source: Travel Media Group, 2011) With the growth of the emerging markets the company could its resources to tap them. This is especially applicable to the business class and the middle prices markets in the hotel industry. Moreover, there has been an increase in attractiveness of features like spas, gaming activities, games for kids and various other features. Apart from that consumers also look for the eco-friendly atmosphere which Hilton hotels could incorporate in order to add to unique features (Travel Media Group, 2011). Threats There is tremendous competition in the hotel industry with the entry of new firms in both the USA and also other nations. This could be a matter of a threat to the company and it would have to strengthen its base to fight against this competition. Also, the changing tastes of consumers can be a challenge before the organization. There would also be diversity among competitors in terms of price strategies, product differentiation strategies, service management etc.
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