Strategic Human Resources Planning - Research Paper Example

Organizational Expansion Organizational Expansion From scholarly research, it is evident that the race for expansion has been initiated by liberalization and internationalization that has grown extensively. This has increased the enthusiasm for firms to trap new market segments. Though organizational expansion is unpredictable, it is also inevitable. In fact, as Mognetti (2002) puts it, liberalized market segments are the focus of many firm eventually pronouncing the organizations global existence and enhancement of customer base.

This paper will discuss in depth the financial implication to Hilton Hotel after it puts into consideration organizational expansion. Corporate expansion is an issue that aims as wining a larger market share with the aim of increasing sales and hence more profit. Though to many business organizations corporate expansion is aimed at making more profit, it is not always the case. It is an act of risk taking with speculations that objectives will be achieved. When the expected outcome is not realized, the organization gets a big loss.

This is the reason why Ericson (2007) depicts that despite the fact that corporate expansion is a fundamental form of strategic variation for business entities, it is the least understood outcome in the business sector, in which incentives, and constraints abound. For Hilton Hotel to achieve organizational expansion successfully, several financial actions must be taken. Obviously, in expanding into new markets, one of the main reasons is to beat growing competition. This means that proper planning must be factored in.

Since the main objective of corporate expansion is to typically bettering existing corporate performance through increased profitability, enhancing business growth, and increasing the chances of survival in the market, several financial actions must be taken. To begin with, the organization must have evaluated the potential clients thus must establish land where the infrastructures will be build. The amount expected to set up a hotel is notably high. For high-class hotels like Hilton, the amount of money required is relatively high.

This is because the organization is aimed at accommodating high-class people meaning that expensive materials are required. When the Hotel is already established, it must be equipped and the necessities put in place. These include food and accommodation facilities. In such a case, money will be crucial to ensure that the standards of Hilton Hotel are maintained. This aspect comes in as a form of production where by more finances are set aside to provide more and better facilities and services to clients.

For a newly established site, these facilities should be exemplarily good to ensure that the hotel beats the prevailing competition in the new market (Ericson, 2007). In addition, on establishing a new branch, more personnel (labor) is required. This means that recruitment will start from top management though it is advisable that managers are promoted from existing branches to ensure that things work out normally. Recruitment requires finances to oversee the whole process and reward the employed personnel accordingly.

On establishing a new Hotel, proper promotion through adverts is inevitable. This will help in making the new Hotel location known to potential clients and increase the possibility of visiting the place. To beat the market competition, advertisement and promotion should be done extensively since it will play a significant role in winning a large market share. This as well requires finances (Mognetti, 2002). The issue of organizational expansion is inseparable with not only Hilton Hotel, but also any organization whose success is the main objective.

In case Hilton Hotel overlooks the aspect of expansion, there are additional costs as consequences of the decision. Without expansion, competition cannot be won thus it is difficult to win the confidence of clients. The outcome is loss and the organization might get to a shut down point.In recapitulation and conclusion, the success of Hilton Hotel, and any other financial entity will be influenced by the corporate expansion. However, as brought to light in this paper, corporate expansion is an issue that has long-term benefits to the organization, but has financial implication.

This essay thus confirms the fact that nearly every problem or issue confronting an organization has a financial or budgetary impact.ReferencesMognetti, J. F. (2002). Organic growth: cost-effective business expansion from within. New York: John Wiley & Sons. Ericson, M. (2007). Business growth: activities, themes and voices. Cheltenham: Edward Elgar Publishing.