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Value Chain Analysis of Hilton Hotels

Hilton Hotels Corporation, a company that emerged during the 1950s with the acquisition and subsequent restoration of old hotels such as Steven in Chicago and the Plaza in New York. They are the pioneer in the development of growth strategies based on leasing contracts. At the early years this massive brick-and-stone edifice billed itself as the largest hotel in the world. Today the Hilton still runs like a small city, with numerous restaurants and shops and a steady stream of conventioneers.

Its colorful history includes visits by Queen Elizabeth, Emperor Hirohito and all presidents since the year it was built. For over a decade, Hilton Hotel has been an increasing interest in the use of supply chain method to improve performance across the entire business enterprise. And the names under this giant hotel chains are Hilton, Hampton Inn, Doubletree, Embassy Suites Hotels, Homewood Suites, Waldorf Astoria, Hilton Garden Inn, Conrad, and Hilton Grand Vacations.

Westin Hotels were considered as the core competencies of Hilton Hotel, it is also the oldest hotel management company in North America. Its chain of hotels is Sheraton, Four Points, St. Regis and a lot more. Striving to be recognized in their finest collection of hotels and resorts, offering an experience of enduring value using superior service, supported with a deeply instilled ethic of personal service. Supply chain management has become a standard part of the business and many firms now have a functional supply chain group.

In addition to individual companies, numerous industries have recognized the importance of supply chain integration. Initiatives that aim at getting multiple companies to work together toward a more streamlined and efficient supply chain have been developed. Chain Analysis: Hilton Hotels is one of the biggest hotels chain in the industry, the widespread interest in chain management has led to innovative ways to re-engineer the chain new software solutions to help companies plan and operate their chain and new business models and services for existing and new players in the hotel chain.

Real-Time Enterprise deployments will also have a dramatic impact on creation and maintenance of networks of suppliers and customers similar to the effect of Hilton’s transformation of hotel chains. They have come to dominate both the hotel and restaurant and stories of business best practices. Not only is it the world’s largest company in revenue at over $350 billion in 2006 and the employer of one of every twenty retail workers in the United States, but case studies of how the company does everything from hiring to inventory management to negotiation to implementation can be regularly found in books and magazines.

Hilton Corporation may be inclined to provide the shareholders with a more attractive alternative, but may need some additional time to formulate and present that option. The threat is that shareholders might choose the inadequate tender offer only because the superior option has not yet been presented. The overall level of economic capital required by a company will depend with the Hilton financial strength. The more creditworthy the company wants to be, the more capital it will have no hold against a given level of risk.

Through using the milieu to conspire the nature of the demand for each of their creation and its chain priorities, managers can determine whether the process the company uses for supplying services is well matched to the outcome type: a well-organized process for efficient service and an approachable process for revolutionary results. Companies that have either an innovative goal with an efficient strategic goal with a reactive analysis be inclined to be the ones with troubles.

Hilton provides a business partnership that offers a full range of support services including site location, store design and construction, ample training, marketing, business management, and a highly efficient food supply and distribution service. A specialist will assist with recruiting and training new staff, marketing, product control, pricing and other operational areas The interactive process visible to the consumer constitutes the service. However the operations process with which the consumer interacts has to be supported by an invisible process.

Although one of the most used operations management techniques is flowcharting, it is used to analyze and manage complex production processes since it involves the identification of flows, stocks costs and bottlenecks. The flowcharting of service operations can also serve a number of purposes. Conclusion: For Hilton strategic alternatives that were mentioned above, the strategic choice that is most highly acceptable is the third alternative, since the first alternative have already been instigated in the past years, and based on the state of the company nowadays, when its service strategy is superb and highly manageable.

As it increases productivity by making use of what the external environment offers the company. Hilton Hotels are designed to facilitate the close coordination and investment in transaction specific assets that vertical integration permits, with the high powered incentives, flexibility and cooperation between strategically dissimilar businesses that market contracts make possible.

Reference:

Cournoyer, N. G. , Morris, K. L. & Marshall, A. G. (1998). Hotel, Restaurant and Travel Law: A Preventive Approach. Clifton Park, NY. Thomson Delmar Learning. p. 87 Cunill, O. M. (2006). The Growth Strategies of Hotel Chains: Best Business Practices by Leading Companies. Binghamton, NY. The Haworth Press. p. 15 Pal, N & Rangaswamy, A. (2003). The Power of One: Gaining Business Value from Personalization Technologies. Victoria, BC. Trafford Publishing. p. 41 Nijssen, E. J. & Frambach R. T. (2000) Creating Customer Value through Strategic Marketing Planning: New York, NY. Springer. p. 125

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