Conrad Hilton as an Entrepreneur - Case Study Example

?Company Profile: Conrad Hilton Introduction The Hilton hotel chain is one of the most famous hotels and resorts the world over. Without doubt, the Hilton Hotels brand is among the largest hotel brands in the globe. The hotel chain offers a wide variety of services related the hospitality industry under the flagship brand of Hilton Worldwide. Established by Conrad Hilton in 1919 (Woopidoo n.d., par. 1), there are currently more than 3750 hotels branded Hilton Hotel and Resort across the six continents (Hilton Management Services, par. 1). The hotels are established in at least 85 countries and are either managed or owned by Hilton Worldwide, or franchised to third parties (Hilton Management Services, par. 1). In 2010, Hilton WorldWide earned well over $13 billion from it various activities (Hilton Management Services, par. 1). This paper discusses the Hilton Hotels brand with an aim of establishing a clear profile of the business. Conrad Hilton as an Entrepreneur An entrepreneur is a person who innovates or introduces new things with an aim of making a profit. Many analysts agree that many entrepreneurs share certain common characteristics. For one, entrepreneurs are disciplined. In this respect, they make strategies and define ways through which to achieve their goals. Yet again, entrepreneurs are open minded and see business opportunities where others see hurdles. This trait is seen in Hilton’s life when he buys his first hotel after realising that the hotel has great potential going by his experience; he had tried to book a room in the Mobley Hotel in vain for the high demand at the time (woopidoo n.d., par. 6). They are also ready to take risks as they focus on the goals that they have set. One important characteristic of successful entrepreneurs is that they are self starters. In connection to this characteristic, the entrepreneurs believe in the fact that if something ought to be done, it is they that must initiate action. In other words, they are proactive and will go at great length to ensure that they succeed without seeking the approval of other people. Hilton is seen to be a self starter in many occasions. Without seeking anyone’s approval, he established a bank and bought his first hotel and worked his way to success. Hilton as an entrepreneur was keen to analyse the business environment before making important decisions. Before the First World War, Hilton had raised 3,000 USD of which he established a bank (woopidoo n.d., par. 8). When the country entered the war, he decided to sell the bank considering the possible negative impacts of the war on the business. Hilton, an American entrepreneur, was a hard working person going by his accomplishments. During his younger days, Conrad helped his father in his business endeavours. At the tender age of 21, Hilton was already confidently managing his father’s store and enjoying a share of the profits (woopidoo n.d., par. 4). In spite of the fact that he was earning a lot of cash for himself, he felt that he needed to be autonomous. Later, he established and managed his own businesses before venturing into the hotel industry. Many of the hotels and resorts that form Hilton Worldwide’s portfolio were bought by Hilton in his lifetime. Some of the hotels that he bought include the Mobley Hotel and the Statler Hotel chain (Hilton, 1957, p. 17) Marketing Strategies Used By the Organisation The success of Hilton Hotels brand is a product of several factors. For one, the company’s marketing strategy is unique in many ways and has seen the organization expand and reach greater heights. In 2005, the Hilton Hotel Corporation emerged winner of the Best Customer Focus award - an award given by the UK National Business Award. From this achievement, it is worth noting the amount of focus that the brand puts on customer satisfaction. According to Mike Ashton, a senior Officer of the company, the philosophy of equilibrium greatly impacts how the organization operates and how it relates with customers. In a bid to improve its offerings to customers and for the sake of differentiation, the company engages in constant product development. Some of the products that the company has developed in the same respect include a novel family breakfast experience and children’s club and entertainment (Dabney 1950, p.24). The family experience includes a buffet table for children and personalised farewell and welcome, among other unique experiences (Dabney 1950, p.24). Closely related to the introduction of innovative products is Hilton’s focus on customer satisfaction. Fully aware that one factor that determines whether or not a customer will return for more service in the hotel is their level of satisfaction with previous experience, the organization goes to great lengths to ensure that the customer’s every experience is above board (Articles Base n.d., par. 4) . The fact that many dignitaries including high commissioners, ministers, presidents, CEOs and prominent business people from various places around the world always tend to prefer the Hilton hotels as a place for their accommodation hints to the fact that they get satisfaction whenever they visit the hotels (Dabney 1950, p.24). Marketing Mix The Hilton Hotel brand offers a wide variety of services to a diverse customer base. The hotel network operates under eight different names: Hilton Garden Inn, Hilton Grand Vacations Company, Embassy Suites Hotels, Homewood Suites by Hilton, Doubletree, Hampton Hotels, Conrad Hotels, and Hilton Brand (Big Business Stories 2011, par 8; Articles Base n.d., par. 1). The hotels offer accommodation services (through its over 355,000 truly luxurious rooms), wedding and social services, food and drinks, conference facilities, spa and fitness facilities. The price charged by an organization for its goods or services determine its profit and therefore its survival. In the case of the Hilton hotels, the prices charged for the products that the hotels offer are relatively high considering the high quality of services on offer and to differentiate itself as a brand for the upper class (Oppenheimer 2007, p. 54). Given that the Hotel Chain serves customers with diverse cultural backgrounds, it relies on regional marketing teams to ensure that the business remains relevant in different jurisdictions. The Hilton Hotels mainly targets the rich. In this respect, the hotels are normally established in upmarket areas or town centres where they can easily be accessed by their clients. The hotels are usually marketed online through corporate websites as well as online adverts. In addition, the hotels are usually advertised on radio, television, and print media. The company also engages in several public relation endeavours such as through newsletters, press releases, and special events planning. The Hilton Hotels are normally resident in buildings that are designed to offer maximum luxury and comfort. The rooms are spacious and provide great views of the outside environment. The Hotels commonly employ well trained and experienced professionals to offer different services. The staff undergo continuous training to ensure that they are up to date with good practice and market trends (Lamberg 2011, par. 3). Its processes are standardised to a great extent to ensure that the level of quality is maintained across the hotels that form the chain. Hilton Hotels Organizational Culture Being an organization that includes several hotels operating in different markets and offering different products through different departments, the company has a very unique organizational culture. The Hilton Worldwide believes that every one of its hotels needs to reflect the local culture and heritage (Hilton Worldwide n.d., par. 1). In this respect, the company encourages a culture that celebrates culture and promotes cultural exchange. The different departments and professionals all work for a common goal. The Hilton Hotels also encourages continuous and consistent training of its staff to ensure that the quality of its services remains high and standardised. Hilton Hotels: Employee Motivation The Hilton Hotel brand boasts of having over 350 years of experience and is served by a highly motivated team of experts (Hilton Management Services par 1). Currently, the Hilton Worldwide relies on more than 700 professionals to offer its unique services to customers. The organization has to keep its employees well motivated to ensure that it remains a success story. In fact, the hotels is a good place to work. The employees are insured against many risks including accident and sickness and enjoy health schemes in addition to these (Oppenheimer 2007, p. 14). Furthermore, the employees enjoy scholarships and travel plans sponsored by the Hilton Hotels. The employees are also well compensated compared to many of their peers working in other similar organizations (RAJUL, 2009, par. 4). By ensuring that the workers of the company are well motivated, the company enjoys employee loyalty and thus low turnout that may result from poaching by other companies. The company thus enjoys quality services from experienced and well trained staff which helps the company maintain its reputation as a high class business and by extension its profitability. Conclusion The Hilton Hotels have a rich history and are known internationally for their great and diverse services. Established in 1919 by Conrad Hilton, the hotel chain has grown over time, thanks to the skills and personal characters of the founder who had no formal training in business. The Hotel chain mainly targets the rich and has a corporate culture that encourages continuous training, continuous improvement and celebrates culture. References Articles Base n.d., Strategic human resources management at the Hilton hotels, viewed 31 April, 2013 Big Business Stories, 2011, Hilton Hotels History, viewed 31 April, 2013 http://www.bigbusinessstories.com/2011/01/hilton-hotels-history.html Dabney, T. 1950, The Man Who Bought the Waldorf: The Life of Conrad N. Hilton, Duell Sloan & Pearce, New York. Hilton C. 1957, Be My Guest, Prentice Hall Press, New York. Hilton Worldwide (n.d.) Celebrating cultures is at our core, viewed 31 April, 2013 http://www.hiltonworldwide.com/corporate-responsibility/celebrating-cultures/ Hilton Worldwide 2013, Globally motivated. Individually focused, viewed 31 April, 2013 http://www.hiltonworldwide.com/development/performance-advantage/hilton-worldwide-sales/ http://hiltongardeninncarlsbad.com/media-center/article/motivating-staff-to-stay-put-and-stay-happy http://www.articlesbase.com/branding-articles/hilton-hotels-2213782.html Lamberg E. 2011, Motivating Staff To Stay Put And Stay Happy, viewed 31 April, 2013 Oppenheimer, J. 2007, House of Hilton: From Conrad to Paris: A Drama of Wealth, Power, and Privilege, Three Rivers Press, New York. RAJUL 2009, How top London hotels train and retain staff, viewed 31 April, 2013 http://londonhotelsinsight.com/2009/07/31/how-top-london-hotels-train-motivate-and-retain-staff/ Woopidoo (n.d.) Conrad Hilton Biography, viewed 31 April, 2013 http://www.woopidoo.com/biography/conrad-hilton/ Read More