External/Internal Factors

Hilton Hotels Corporation is recognized around the world as a preeminent hospitality company, offering customers the finest accommodations, services, amenities, and value for business and pleasure. The success of this company is attributed to excellent management standards.

There are factors that impact the planning function of its management. Rapid change invokes a stimulus-response theory. After the 9/11 tragedy, the hospitality industry suffered a hit following a decrease in airline travel. Externally, decline in business drives the company to undertake cost-cutting measures. Jobs have to be eliminated, and employees are set up to multi-task to increase productivity. Contracts with suppliers have to be reassessed to achieve the most economical cost.

Globalization has proven to keep Hilton as a major industry competitor. A global strategic alliance with Hilton International brings customers a single, seamless Hilton system of 2,000 more hotels in more than 50 counties throughout the world. This impacts planning because standards have to be set world wide to ensure quality service throughout. Financial and competitive performance, along with internal and external customer satisfaction/loyalty measures, is tracked to align the efforts of team members system-wide.

Technology is a significant factor in management planning. It has provided tools for continuous improvement process to implement operational service and product improvement. Sophisticated computer systems have paved the way for effective networking and consequently decreasing personnel costs. Further technology has developed product enhancement, thereby providing better convenience for customers in many aspects. Convenience is an automatic selling factor. Customers always appreciate convenience and comfort. Card keys have replaced metal keys. Reservations made electronically have been embraced by customers, matching their fast paced lifestyles. In another light, through the networking technology, information is shared system-wide, allowing for better performance tracking and more efficient problem solving skills.

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