Hilton Foods Group

Business Environment

10/22/2020

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Executive Summary

This report was aimed to examine in detail the Governance and the structure of Hilton Foods

group an organization dealing in the food sector. The history of the organization and he

management structure also discussed in this report. This report discussed how the Hilton Foods

can survive in the current environment and importance of the PESTEL analysis for the Hilton

Foods Group in regarding environment and its impact on the businesses. And the details

Environmental PESTEL analysis has been conducted in this report to highlight the important

elements and factor that may affect the environment and the business of Hilton Food Group.
 Table of Contents

Executive Summary.........................................................................................................................1

Task 1...............................................................................................................................................4

Hilton Food Group Plc.....................................................................................................................4

History.........................................................................................................................................4

Overview......................................................................................................................................4

Governance..................................................................................................................................5

Structure.......................................................................................................................................5

Task 2:.............................................................................................................................................8

PESTEL analysis.........................................................................................................................8

Political Factors:......................................................................................................................8

Economic Factors....................................................................................................................9

Social Factors...........................................................................................................................9

Technological Factors:.............................................................................................................9

Environmental Factors...........................................................................................................10

Legal Factors.............................................................................................................................10
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Task 3:...........................................................................................................................................11

Political factors impact the Hilton Food Group Plc...............................................................12

Economic Factors that Impact Hilton Food Group Plc.........................................................12

Social Factors that Impact Hilton Food Group Plc................................................................13

Technological Factors that Impact Hilton Food Group Plc...................................................13

Environmental Factors that Impact Hilton Food Group Plc..................................................14

Legal Factors that Impact Hilton Food Group Plc.................................................................14

Conclusions....................................................................................................................................16

References......................................................................................................................................17
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Task 1

Governance and Structure of The Hilton Food Group Plc

Hilton Food Group Plc

History

Hilton set up and operated a central lamb and beef meat packaging plant in Huntingdon in 1994.

Hilton's company was founded in 1994. This has expanded over the past 25 years and we have

also acquired a manufacturing plant in the Netherlands, new factories have developed in a further

4 countries in Europe, joint venture deals have been signed with Portugal and Australia and a

fish processor has been acquired.

For Hilton consumers, each Hilton packaging plant is run on a dedicated basis. Business strategy

Hilton has been tailored to please consumers in each particular indigenous requirement.

Overview

A meat packing company, Hilton Food Group plc (Hilton). The company products cover roasted

joints, wraps, baked steaks, rashers, cuts, tacos, pizzas, breads with garlic, nuggets, burgers and

sticks. The company also sells its products. Fertility and marinated foods like fish, salmon and

creams are also offered.

Hilton provides the multinational grocery retailers Tesco, Albert Heijn, ICA, Ahold, Rimi,

Woolworths, Damaraland Coop, lamb and beef packing facilities. t is active in Central Europe,

United Kingdom, Sweden, Netherlands, Ireland, New Zealand, Australia, Denmark, Poland,

Portugal, and the Netherlands and. Hilton is located in the Cambridge shire of Huntingdon, UK.
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Governance

Hilton 's environmental strategy is endorsed by the Board from above and is key to Hilton's

development and progress. Our corporate model incorporates support for our retail partners in

meeting their CSR goals. The plan was established by the CSR team (headed by the Chief

Quality Manager, the CSR Manager). Our CEO and the executive management panel were

revised and evolves towards our own responsibilities and to the objectives of our clients every

six months, reviewing the main committee.

Hilton is in a planning phase, consistent with the Climate working group – Financial Statements

Relevant to the "TCFD" system, to include a comprehensive assessment of risk and potential for

climate change. In order to educate our partnership with vendors and consumers, we now map

climatic effects on the rest of our supply chain in order to reduce risk and maximize

opportunities.

We approach the full effect of our packaging and product decisions on the life cycle and endorse

technologies that can change step by step at scale. The CSR and the risk assessment departments

collaborate to incorporate the challenges and benefits of climate change into a larger corporate

policy. See our new Climate Change Divulgation Initiative "CDP" for more knowledge.

Structure

The Group is Structured as a holding corporation with 17 branches. In the UK, the Netherlands,

the Republic of Ireland, Denmark, Poland, Sweden and Australia there have been tenth

commercial subsidiaries; all such companies must be required, by local regulation, to perform
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statutory audits. The four temporary holding companies in the UK are expected to perform

mandatory audits.

All are headquartered in the UK. PwC network providers audit all these organizations. The seven

other companies are either sleeping or new business and have not been deemed relevant by the

Community, while some balance-sheets and transactions have been subject to strict procedures.

The Group also has a 50 % stake in joint-venture firms based in Australia, Germany, the UK and

the Netherlands, in contrast to these seventeen organizations. Unique audit protocols were

extended to the joint projects.

Our key guidelines were: – releasing the structured group monitoring guidelines setting out our

criteria for component auditors and our system audit risk assessment; – holding preparation

meetings among all component auditors among agree on these criteria, address the System audit

risk and recognize all of the auditors of the component; – high-level review of the community

involvement team's financial records to detect suspicious expenditures or balances for

consideration with the auditors; – the group management holds component clearance discussions

between the auditors and the local administration; and – the audit decisions signed are that the

financial data is component help.

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The party with a legislative audit opinion that is not certified in the Netherlands is the only major

part. This analysis involved reviewing its work on three main risk areas: I the monitoring of

inspections; ii) the risk of income identification fraud; and iii) complicated consumer

agreements. The auditor visited the group's workpiece to analysis the working papers that

reinforce its judgement on PwC UK. The Community Collaboration Partner also visited the PwC
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aspect and local management teams in Danish and Sweden as part of the group preparation

procedures.

Task 2:

Importance of carrying a PESTEL analysis for an organization

PESTEL analysis

A PESTLE analysis is a framework to analyze the key factors (Political, Economic, Sociological,

Technological, Legal and Environmental) influencing an organization from the outside. It offers

people professionals insight into the external factors impacting their organization. The analysis is

flexible, so organizations can use it in a range of different scenarios. People professionals and

senior managers can use the results to guide strategic decision-making.

The PESTEL for an organization is the six external influences’ audit and the detail of such six

elements is given below:

Political Factors:

Both of these are how the effort to sustain in the

environment and to what extent. It may include:

government policies; political stability and

uncertainty on the markets abroad; external trading

policies; taxation; labor law; environmental

legislation; trade controls. Political considerations also change the way an organization operates.
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Businesses must be able to comply and change their communications strategy in compliance

with existing and planned future regulations.

Economic Factors

Economic conditions have an enormous effect on how and how profitably a company conducts

business. Factors include – global activity, rates of interest, exchange rates, inflation, household

and industrial disposable income, etc. The macro and micro economic factors can be further

separated into those factors. In every individual economy, economic and financial dynamics

address demand management. The key tools they need for these micro-economic variables are

government interest rate regulation, tax structure, and government spending, which all deal with

the way people spend their money. This has a major influence in particular on B2C

organizations.

Social Factors

The areas which include the common beliefs and attitudes of the community are also recognized

as social and cultural factors. These considerations include demographic increase, spread of age,

health literacy, attitudes towards jobs, etc. You also have the trend and conviction in the social

media and the promotion and innovation in social technologies. These influences are especially

interesting because they specifically influence how advertisers perceive and lead consumers.

Technological Factors:
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Any organization understands how quickly the technology transforms the face of the industry

and how it affects the way business goods or services are sold. In this day and era, software

creation and cell telephone are used to treat industry as a product and a way to control industry.

Technological aspects have three different impacts on marketing and its administration, such as

new forms of product and service creation, new means of distribution of products and services

and new methods of interacting with target audiences

Environmental Factors

In the past ten years or so, these aspects have just come to the fore. They have become relevant

because of the growing shortage of raw materials, the emissions target that business is being

carried out as a moral and sustainable organization, environmental impact targets set by the

authorities. These are only some of the advertisers facing the challenge. Consumers are

constantly demanding the goods they purchase come from a renewable source, ethically and

where possible.

Legal Factors

Judicial considerations include: protection and wellbeing, fair opportunities, standards of

coverage, customer rights and law, product identification and the quality of goods. It is obvious

that firms need to know what is and what is not legal to excel in trading. When an entity works

abroad, it becomes a very difficult region, since every nation has its own rules and regulations. It

is also wise to conduct market research such that you do your diligence to ensure that you do not

breach laws until you launch your company or conduct your business.
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This above is a description of each criteria, which demonstrates clearly that the empirical

approach of PESTEL is a very valuable instrument for establishing the steps that enterprise must

take in order to conduct business in the chosen sector in order to stay juridically accountable and

making sure that the corporation is able to be competitive in current economic conditions.

All those factors which impact the business are important to analyze, if the organization conducts

a comprehensive PESTEL inspection then the business should swot analysis Is a framework as it

is important to integrate a SWOT analysis for PESTEL and if businesses are a cautious business

and are diligent regarding business operations it is important to take into consideration the value

of a PESTEL.

Task 3:

PESTEL framework to analyses the external environment of the Hilton Food Group

If the Hilton Food Group does an overall PESTEL analysis the organization can evaluate all the

variables that have an effect on the business is necessary to analyze, even if the business is a

proactive enterprise even vigilant in terms of business processes it is important to understand the

importance of a PESTEL. This is an essential approach as it is important to integrate a SWOT

analysis with PESTEL.

Changes in macro-environmental conditions will have an immediate effect on other foodservice

players, and not just on Hilton Food Group Plc. The Porters' Five Forces that form the strategy

and competitive landscape will influence the macro-environment variables. It may influence the

competitive edge of individual companies or the overall degree of competitiveness of the

consumer goods sector.

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The study by PESTEL offers more insight on the operational problems facing the Hilton Food

Group Plc in a dominant, non-competitive macro environment. E.g., a strong growth curve could

be highly lucrative for an industry, but if placed in an uncertain political climate, it would do

Hilton Food Group Plc little good. Repsol has a similar situation to do with the Spanish oil giant.

It began operations with above average profitability in Argentina and produced good returns in

five to seven years. Later, however, the left-wing state expropriated the company. In the end,

therefore, the ten-year benefit did not materialize.

Political factors impact the Hilton Food Group Plc

The factors that influence the long-term viability of Hilton Food Group Plc in a given country or

sector play an important part in deciding policy factors. Hilton Food Group Plc trades in over a

dozen countries in Food and Beverage and is subject to numerous forms of political and system

threats. In a competitive food & drink market in different countries, success is accomplished by

diversifying systemic uncertainties of the political climate. Before joining or participating in a

certain sector, Hilton Food Group Plc should thoroughly examine the following considerations.

 Stability in the politics of the country and importance of country’s Food & Beverage

sector.

 Military invasion risk

 Contract enforcement legal framework

 Intellectual protection of the property

 Consumer goods related Tariffs and trade regulations

 Trading Partners with favors

 Laws for Food and Beverages of Anti-trust

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Economic Factors that Impact Hilton Food Group Plc

Factors such as Saving-rate, inflation, Exchange rate, and interest-rating in the Macro-

environment assess total demand and aggregate spending in the economy. The strategic edge of

the company is influenced by micro-environmental considerations such as competition

requirements. In order to anticipate the rising trajectories of not only the market but also the

company's market, Hilton Food Group Plc will use the national economic elements (for instance

rate of growth, the inflation and economic measures such as development of the foodservice

industry, demand, etc.). Economic conditions to be addressed by Hilton Food Group Plc during

PESTEL analysis:

 Rates of Interest

 Rates of Inflation

 Rate of Unemployment

 Rate of Economic growth

 Dictionary income

Social Factors that Impact Hilton Food Group Plc

The history of people and the role things are done shape the culture in the setting of an entity.

Shared convictions and perceptions of the public play a crucial role in how Hilton Food Group

Plc's advertisers perceive a particular business client and how they build a marketing strategy for

customers in the foodservice industry. Social considerations for PESTEL research should be

analyzed by the management of Hilton Food Group Plc-

 Interests of leisure
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 Attitudes including Environmental consciousness and Health etc.

 Culture of the market including the Role of gender, Social conventions etc.

 Society’s nature and the spirit regarding entrepreneur

Technological Factors that Impact Hilton Food Group Plc

In both markets, technology increasingly disrupts diverse industries. This is a good example of

the foodservice industry like the Hilton Food group. Not only technical market research but the

pace at which technology disrupts this market should be carried out by a company. Sluggish

speed gives more time, while rapid speeds can give a small amount of time to cope and make

money. The study of technologies requires knowing the implications-

 Technological diffusion rate

 Hilton Food Groups Plc’s competitor’s recent technological development

 Impact of innovative technology on the products offering

 Cost structure’s impact on the food and beverages industry

Environmental Factors that Impact Hilton Food Group Plc

The Hilton food group should closely determine the environmental requirements needed to

compete in these markets before joining new markets or starting the new product. A management

should evaluate some of the environmental considerations in advance:

 The weather

 Environmental pollution related laws

 Management of waste in the sector of consumer goods

 Recycling
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 Regulations relating to the Water and Air in the Food and Beverages industry

Legal Factors that Impact Hilton Food Group Plc

The regulatory system and institutions in many countries are not strong enough to secure an

organization’s property rights. Before accessing these markets, a business can closely assess, as

this will lead to theft of the secret sauce of the corporation. Some of the legal considerations to

consider by the management of Hilton Food Group Plc when entering a new market are:

 Protection of the data

 Law regarding safety and the health

 Laws regarding employment

 E-commerce and protection of the consumer

 Laws regarding Discrimination

 Laws regarding Intellectual property, patents, and the copyrights

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Conclusions

This report was aimed to analyze the Hilton Food Group’s business and impact of environmental

factors and element that can affect the business of Hilton Food group externally. The detail of

Hilton Food group showed that the company is a private company having multiple products to

offer in the market. The importance of the PESTEL analysis indicated that in order to gain the

sustainable success in the market Hilton food group should focus on the environmental factor

that may affect its business and service.

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References